Annual General Meeting 2020 0 Annual General Meeting CEO - PowerPoint PPT Presentation

Annual General Meeting 2020 0

Annual General Meeting CEO presentation Crister Fritzson, CEO May 8 th , 2020

Agenda 2019 in brief Q1 results First reflections Q&A 2

2019 in brief Increased focus on the Adopted an open core Media Networks standards strategy business Accelerated development Launched cloud-based efforts solution Nimbra Edge Increased focus on Improved transparency, recurring revenue incl. segment reporting Divestment of Sye to Reduced cost base Amazon 3

Remote production case: Enterprise live production  Produce and distribute live corporate events seamlessly across the world  Leverage Internet- and cloud-based media transport Dublin, Ireland EMEA HQ  Tangible advantages: Sunnyvale HQ, CA Video production studios New York City, NY Video editorial team Mountain View, CA Media operations team Cost savings Quality and consistency of productions 4

Sye divested to Amazon  Agreement in December 2019 to sell the Sye streaming solution for 350 MSEK - A strong evidence of Net Insight’s ability to develop world-class solutions for video transport  Competencies gained while developing Sye will continue to benefit Net Insight - For example, competencies relating to virtualized software solutions and cloud-based technology 5

Cloud-based solution Nimbra Edge – Customer benefits Easy to use Reduce cost Open Cost control Nimbra and install Click control, Lower cost vs. Any hardware and Unique, pay-per- A recognized simple cloud alternatives (e.g. supporting open usage price brand for best in implementation satellite) transport model class transport Optimize cloud standards Reuse of existing cost (use own or (e.g. RIST, SRT infrastructure public cloud) and Zixi) 6 |

Agenda 2019 in brief Q1 results First reflections Q&A 7

Q1 summary Net sales of 94 (109) MSEK, -13% vs Q1-19  Operating earnings of 8 (-4) MSEK, driven by positive FX impact  Acquisition of product assets from Aperi Corporation  ScheduALL with a positive trend and increasingly run as a  separate unit Positive traction with cloud-based solution Nimbra Edge  - Strategic growth priority - Development progressing as per plan - First deal with large North American customer  Covid-19 having a major impact on the results for the quarter. Actions taken to mitigate the financial effects  Immediate priority to set the internal foundation and direction, followed by accelerated growth in core business 8

Aperi acquisition  In line with the strategy to grow the core Media Networks business, Net Insight acquired the Aperi product portfolio for 13 MSEK - Installed base and relationships with large Tier1 customers like Telstra and Arqiva  The open, all-IP and virtualized portfolio will complement and strengthen the existing offering - Improved ability to compete for more use cases, for both existing and new customers  Strengthen US presence via Aperi’s R&D team and California office  After the close of the quarter, the first smaller Aperi order was received 9

Capital re-distribution  As communicated in the Q4-19 report, our intention was to propose a capital redistribution  As a result of the ongoing Corona pandemic, and per communication in the press release on March 30 th , the Board has not proposed any capital redistribution to this Annual General Meeting  Given the current uncertainty in the market, decisions on the forms and timing of a capital redistribution will be pushed forward in time 10

Agenda 2019 in brief Q1 results First reflections Q&A 11

My first reflections  Strong team with leading tech capabilities  Attractive market fundamentals (post Covid-19) - Positive outlook for live sports - Trends towards quality (Tier1 live sports), and flexibility/cost (lower Tiers) - Favourable trends like remote production and cloud- based transport  Competitive solutions offering - Superior on quality, reliability and operating costs  Key focus to accelerate growth 12

Very strong customer base 13

DRAFT Next steps in the Net Insight journey Phase 3: Expand and grow in adjacent Impact Phase 2: market segments Grow share and reach full potential in core markets Phase 1: Set internal foundation and Evaluate and prioritize adjacent market segments  direction  Expand solutions offering to existing customers  Partner program (resellers and strategic partners) Strengthen and complement the product portfolio  Targeted M&A   Grow share-of-wallet with existing customers Win new customers in core segments   Structure and processes  Develop business models  Growth strategy  Grow the open cloud solution (Nimbra Edge) Vision and Purpose  Grow new application areas (e.g. enterprise   Culture solutions) Commercial excellence  Partner program (resellers and strategic partners)  Time 14

Agenda 2019 in brief Q1 results First reflections Q&A 15

Q&A 16

Annual General Meeting CEO presentation Crister Fritzson, CEO May 8 th , 2020