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

Annual General Meeting 2020

CEO presentation

Annual General Meeting

Crister Fritzson, CEO May 8th, 2020

Agenda

2019 in brief Q1 results First reflections Q&A

2

2019 in brief

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Reduced cost base Improved transparency,

• incl. segment reporting

Divestment of Sye to Amazon Increased focus on the core Media Networks business Accelerated development efforts Adopted an open standards strategy Launched cloud-based solution Nimbra Edge Increased focus on recurring revenue

Remote production case: Enterprise live production

4

• Produce and distribute live corporate

events seamlessly across the world

• Leverage Internet- and cloud-based media

transport

• Tangible advantages:

Cost savings Quality and consistency

• f productions

Mountain View, CA Media operations team Sunnyvale HQ, CA Video production studios New York City, NY Video editorial team Dublin, Ireland EMEA HQ

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

6 |

Easy to use and install

Click control, simple cloud implementation

Reduce cost

Lower cost vs. alternatives (e.g. satellite) Optimize cloud cost (use own or public cloud)

Open

Any hardware and supporting open transport standards (e.g. RIST, SRT and Zixi)

Cost control

Unique, pay-per- usage price model

Nimbra

A recognized brand for best in class transport Reuse of existing infrastructure

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

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Aperi acquisition

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• 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

• ffering
• 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

Capital re-distribution

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• 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 30th, 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

Agenda

2019 in brief Q1 results First reflections Q&A

11

My first reflections

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• 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

Very strong customer base

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Next steps in the Net Insight journey

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Phase 1: Set internal foundation and direction Phase 2: Grow share and reach full potential in core markets Phase 3: Expand and grow in adjacent market segments

• Structure and processes
• Growth strategy
• Vision and Purpose
• Culture
• Commercial excellence
• Strengthen and complement the product portfolio
• Grow share-of-wallet with existing customers
• Win new customers in core segments
• Develop business models
• Grow the open cloud solution (Nimbra Edge)
• Grow new application areas (e.g. enterprise

solutions)

• Partner program (resellers and strategic partners)
• Evaluate and prioritize adjacent market segments
• Expand solutions offering to existing customers
• Partner program (resellers and strategic partners)
• Targeted M&A

DRAFT Time Impact

Agenda

2019 in brief Q1 results First reflections Q&A

15

Q&A

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CEO presentation

Annual General Meeting

Crister Fritzson, CEO May 8th, 2020