10:35 am Executive Q & A 11:15 am First Breakout Slot Noon Lunch 1:00 pm Second and Third Breakout Slots 4:00 pm Reception.

Transcription

1 Infinera

2 8:50 am Welcome Michael Capuano, VP Marketing 9:00 am The Opportunity Ahead Tom Fallon, CEO 9:10 am Unleashing Intelligent Transport End-to-End Dave Welch, President and Co-Founder 9:30 am Accelerating the Metro Karl Thedéen, SVP, Head of Metro Business Group 9:50 am What the Network Will Be Dave Welch, President and Co-Founder 10:00 am The Evolution of Service Provider Networks Randy Nicklas, EVP Engineering & CTO, Windstream Nico Fischbach, Director Strategy, Arch. & Innovation, Colt Technology Services 10:35 am Executive Q & A 11:15 am First Breakout Slot Noon Lunch 1:00 pm Second and Third Breakout Slots 4:00 pm Reception Infinera

3 Housekeeping Check List Cellphones off (silent mode) 1 hour 30 mins live recording (doors remain closed) No photos or video allowed Please remain seated For any emergency please see our staff at the exit Bathrooms Wi-Fi access (lobby area) Breakout sessions (down the hall) Infinera

4 Infinera

5 Welcome The Opportunity Ahead Unleashing Intelligent Transport End-to-End Accelerating the Metro What the Network Will Be The Evolution of Service Provider Networks Michael Capuano, VP Marketing Tom Fallon, CEO Dave Welch, President and Co-Founder Karl Thedéen, SVP, Head of Metro Business Group Dave Welch, President and Co-Founder Randy Nicklas, EVP Engineering & CTO, Windstream Nico Fischbach, Director Strategy, Arch. & Innovation, Colt Technology Services Infinera

6 Disclaimers This presentation contains "forward-looking" statements that involve risks, uncertainties and assumptions. If the risks or uncertainties ever materialize or the assumptions prove incorrect, our results may differ materially from those expressed or implied by such forwardlooking statements. All statements other than statements of historical fact could be deemed forward-looking, including, but not limited to, any projections of financial information, including statements about revenue and profitability; any statements regarding industry trends; any statements of the plans, strategies, and objectives of management for future operations; any statements about historical results that may suggest trends for our business; any statements of expectation or belief regarding future events, potential markets or market size, or technology developments. These statements are based on estimates and information available to us at the time of this presentation and are not guarantees of future performance. These risks and uncertainties include, but are not limited to, the risk that Transmode s and Infinera s businesses will not be integrated successfully; the risk that synergies will not be realized or realized to the extent anticipated; the risk that the combined company will not realize on its financing or operating strategies; the risk that litigation could arise; the risk that disruption caused by the combined company would make it difficult to maintain certain strategic relationships; the risks of competitive responses and shifts in the market; delays in the release of new products; continued market acceptance of our products; fluctuations in customer demand; changes in industry trends; and changes in the macroeconomic market. These risks and uncertainties also include those risks and uncertainties discussed in Infinera s most recently filed Quarterly Report on Form 10-Q for the quarter ended June 27, 2015 filed with the SEC, and those risks and uncertainties identified in any subsequent reports filed with the SEC by Infinera. Our SEC filings are available on our website at and the SEC s website at We assume no obligation to, and do not currently intend to, update any such forward-looking statements Infinera

7 The Opportunity Ahead Tom Fallon, CEO October 6, Infinera

8 Good Time To Be In Optical Networking Worldwide Revenues ($ billions) Cloud services begin to dominate Once in a decade transition 10G to 100G $50 $40 $30 Cloud Infrastructure Services Market Layer C: Cloud Services SDN 24% CAGR Private & Hybrid PaaS Networks transforming to Layer C & Layer T architecture $20 $10 $0 67% CAGR Layer T: Intelligent Transport IaaS Source: Synergy Research Group Infinera

9 Great Time To Be In Optical For Infinera End-to-end packet-optical portfolio Consolidating market 3x TAM to $15.3B* Vertical IP ownership Infinera Source: Infonetics Q Market Forecast for 2019

10 Outpacing Other SP Networking Players 90% 80% 70% 60% 50% Revenue Growth: Quarterly Trailing 12-month revenue 82% Cloud Xpress for 100G DCI 2.6X Revenue Growth over CIEN 40% 30% 20% 10% 0% -10% DTN-X for 100G Long-Haul 31% INFN CIEN JNPR CSCO ALU -20% Jun '12 Sep '12 Dec '12 Mar '13 Jun '13 Sep '13 Dec '13 Mar '14 Jun '14 Sep '14 Dec '14 Mar '15 Jun ' Infinera Source: Public financial records; in $USD

11 Infinera Financial Performance 3 years of >20% revenue growth ** GM%: OM%: $ % -9.4% Revenue (in $m) $ % 1.4% $ % 8.3% $880e* 47.0% 12.0% Industry leading revenue growth and profitability Solid Balance Sheet Strong cash position Last 4 quarters Cash Flow**: Cash Flow from Ops = $116 million Free Cash Flow/Revenue = 11% FY12 FY13 FY14 FY Infinera All figures are Non-GAAP. *Incorporates Wall Street consensus as of 9/23/15, consisting of the eight analysts who include Transmode in their estimates (pre-transmode consensus was $832 million) **As of the end of Q2-FY15; does not include Transmode

12 Market Expansion Strategy Multi-Market, Multi-Product LH/SS DTN-X Single Market (2014) DCI Cloud Xpress Metro Today Infinera

13 Right Products, Right Time June 2012 Sept 2014 Oct 2015 LH Portfolio Expansion 100G Metro Entry New Metro Aggregation Portfolio Product 100G LH Core Entry DTN-X P-OTN Platform 100G Cloud Entry Cloud Xpress Datacenter Interconnect Infinera Source: Infinera estimates based on customer and analyst interaction

14 Infinera s Ascending Global Market Position Revenues ($M) $2,500 $2,000 $1,500 Global Metro + LH WDM (2014) Increased opportunities for combined company $1,000 $500 $ Infinera Source: Dell Oro Optical Report Jan 2015

15 Infinera s Ascending N. Am. and EMEA Market Position Millions $1,200 $1,000 $800 NA & EMEA LH & Metro (2014) The company [Infinera] was the fastest growing optical company for 2014 in the west [EMEA and North America combined]. * $600 $400 $200 $ Infinera Source: Dell Oro Optical Report Jan 2015 * IHS Optical Network Hardware: Quarterly Worldwide, Regional, China, Japan, and India Market Share, Size, and Forecasts: 2Q15, August 24, 2015

16 Great Good Time To Be In Optical Networking For Infinera 100G Metro Transition Layer T/ Layer C Cloud 3x TAM Supplier Consolidation Enabling an infinite pool of intelligent bandwidth Infinera

17 Unleashing Intelligent Transport End-to-End Dave Welch, President and Co-Founder October 6, Infinera

18 USD Millions Right Product, Right Time $9,000 $8,000 $7,000 $6,000 $5,000 DTN-X XTC 2013 Forecast shipments 2015 Forecast begin 100G Revised Forecast Scale 500G super-channels Efficient 5 Tb/s OTN switch $4,000 $3,000 $2,000 $1,000 $0 40G Revised Forecast Simple Ease of use Reliable Platform and Networks Infinera Source: Dell Oro Optical Forecast Tables January 2013 vs. January 2015

19 Continued Innovation and Execution Infinera

20 Network Requirements Are Diverse Triple Play Broadband Cable Broadband Business Ethernet Access Multicast CCAP / Remote PHY SLA, Low latency MEF CE2.0 CPRI / OBSAI Metro Aggregation Core Packet Switching OTN Switching 100G Long Haul /Subsea OTN Switching, SMP Coherent, SD-FEC Flexible Grid Super-channels DC Interconnect Rack-and-stack Point-to-point Low latency Super-channels Mobile Front/ Backhaul SyncE / 1588v Infinera

21 Application Specific Solutions SDN and Infinera NMS Triple Play Broadband Access Metro Aggregation Core Long Haul /Subsea DTN-X Family DC Interconnect Cable Broadband Business Ethernet NID EDU Mobile Front/ Backhaul TM-Series TM-102 TG-Series TM-301 TM-3000 New Product XTC-4 FlexILS New Product MTC-9 Photonic Leadership XTC-10 Cloud Xpress TM-Series Infinera

22 Introducing the DTN-X XT Series Scalable Super-channel; ILS integration DTN-X XT-500 Efficient ~1W/Gig, 1Tb/s IO 2RU Shipping this quarter Q4 15 Programmable Instant Bandwidth, SDN enabled Long-Haul Point-to-Point Interconnect Optically Switched (ROADM) Infinera

23 Application Specific Solutions SDN and Infinera NMS Triple Play Broadband Access Metro Aggregation Core Long Haul /Subsea DTN-X Family DC Interconnect Cable Broadband Business Ethernet NID EDU Mobile Front/ Backhaul TM-Series TM-102 TG-Series TM-301 TM-3000 New Product XTC-4 FlexILS XT Series MTC-9 Photonic Leadership XTC-10 Cloud Xpress TM-Series Infinera

24 Introducing the DTN-X XTC-2 and XTC-2E Extending the value of DTN-X opic-100 Right-sized 100G, Low space and power Simple Converged WDM/OTN/Packet FastSMP resiliency XTC-2 XTC-2E XTC-4/10 Programmable Ease of use, SDN enabled Q4 15 Investment Protection: Common Modules, Software Infinera

25 Extending the DTN-X Experience to Lower Capacity Sites E.g. Right-sized DTN-X XTC for smaller cities Seattle Spokane Boise Salt Lake City Las Vegas 100G 100G 100G XTC-2 100G 100G XTC-4 XTC G Super-channels Common Hardware, E2E Network Management and Automation Infinera

26 The DTN-X Family in Action Converged Packet Aggregation & OTN Switched Metro Core 500G Super-channels Pan-European Network XTC G XTC-2 Frankfurt Metro Area, Germany XTC-10 Large LH Core XTC-4 XT-500 Point-to-Point Interconnect Infinera

27 Converged Packet Aggregation & OTN Switched Metro Core Triple Play Broadband Cable Broadband XTC-2 Business Ethernet Value of End-to-End 100G Frankfurt Metro Area, Germany Mobile Front/ Backhaul Packet-Optical Switching Access & Aggregation TM-Series XTC-2 Converged Packet Aggregation & OTN Switched Metro Core XTC G Super-channels 100G Frankfurt Metro Area, Germany Infinera DNA XTC-10 XTC-4 Pan-European 500G Network Super-channels Large LH Core DTN-X Family XTC-4 Pan-European Network XTC-10 Large LH Core XT-500 XTC-10 XT-500 Point-to-Point Interconnect Point-to-Point Interconnect Infinera

28 The Infinera Unified End-to-End Portfolio SDN and Infinera NMS Triple Play Broadband Access Metro Aggregation Core Long Haul /Subsea DTN-X Family DC Interconnect Cable Broadband NID TM-Series XTC-2 XTC-2E XTC-4 XTC-10 Cloud Xpress Business Ethernet EDU TM-102 TM-301 TM-3000 XT Series TM-Series Mobile Front/ Backhaul TG-Series FlexILS MTC-9 Photonic Leadership Infinera

29 Right Tool for the Right Application Innovating to address entire $15B opportunity New XT-Series: High Capacity LH Data Center Interconnect New XTC-2/2E: Packet-OTN Switching for Regional / Metro Core TM-Series: Packet-Optical for Metro Core, Aggregation, Access Infinera

30 Accelerating the Metro Karl Thedéen, SVP Head of Metro Business Group October 6, Infinera

31 Accelerating the Business Triple Play Broadband Cable Broadband Business Ethernet Mobile Front/ Backhaul Access Metro Aggregation New Winning in Metro Core Long Haul /Subsea Grow Winning in Long-Haul New Winning End-to-End DC Interconnect Infinera

32 Introducing the TM-Series and TG-Series Portfolio Triple Play Broadband Cable Broadband 5W/10G 70W/100G Access 80 x 10GTM-Series in NID13RU Metro Innovative Packet-Optical Long Haul Integration /Subsea Aggregation Core SDN and Infinera NMS DTN-X Family Simple scalable architecture XTC-2 XTC-2E XTC-4 Leading transport performance XTC-10 DC Interconnect < 5 ns Sync E 1588v2 Cloud Xpress Business Ethernet EDU Mobile Front/ Backhaul TM-102 TG-Series TM-301 NID EDU TM-3000 TM-Series FlexILS TM-102 TM-301 TM-3000 XT Series TG-Series MTC-9 TM-Series Photonic Leadership Infinera

33 Metro Networks Are Application-Oriented Cable MSO Evolution Long-Haul DTN-X Family Business Ethernet IP Metro Core/ Regional IP Mobile Evolution Metro Access/ Aggregation Metro/Micro DC TM-Series 100G and Packet-Optical in Metro Infinera

34 Portfolio Ready for 100G Coherent Metro Ramp Ports (Thousands) 400 DEPLOYED 100G TODAY 400 Layer 1 100G Transponder and Muxponder Layer 2 220G Packet Optical Transport Switch % CAGR 100G starting to ramp, rapid acceleration NEW TECHNOLOGIES PIC and FlexCoherent CY12 CY13 CY14 CY15 CY16 CY17 CY18 CY Infinera Source: 2015 IHS 100G Coherent Optical Equip Ports Mkt Fcst

35 Packet Optical Goes Terabit Transport performance Switch on a blade architecture Terabit switching with PT-Fabric Unified edge to core 100G Packet-Optical Networking MPLS-TP CE2.0 Ready for 20,000 chassis New PT-Fabric Ethernet OTN Infinera

36 Cable MSO Evolution TODAY Broadcast TV, VOD and 100M Internet CMTS + VoD + Broadcast K and UHDTV and 500M+ Internet Converged via CCAP, Remote PHY New WDM opportunity Bandwidth Explosion CMTS VOD Packet-Optical Backhaul Deep fiber access CCAP 100G Packet-Optical Backhaul B cast B cast Infinera

37 Service Expansion: Business Ethernet TODAY Transport services Opportunistic Full suite of enterprise services Strategic Layer 1 Layers 1 & Infinera

38 Mobile Evolution TODAY Traditional RAN Widespread 3G/4G Backhaul Cloud-RAN Emerging Fronthaul for LTE-A/5G New WDM opportunity Bandwidth Explosion BBU BBU BBU Mobile Backhaul BBU BBU BBU Mobile Fronthaul BBU Mobile Backhaul Infinera

39 Value of End-to-End Triple Play Broadband Packet-Optical Switching Access & Aggregation Converged Packet Aggregation & OTN Switched Metro Core XTC-10 Cable Broadband XTC-2 100G 500G XT-500 Business Ethernet TM-Series E.g. Frankfurt Metro Area, Germany XTC-10 XTC-4 DTN-X Family Mobile Front/ Backhaul Infinera DNA Infinera

40 Infinera Demo Video

41 Infinera s First Unified Solution: TM-Series + DTN-X XTC Triple Play Broadband Access Management plane interoperability Metro Long Haul /Subsea Aggregation Core DC Interconnect Cable Broadband Infinera DNA Q4 15 Business Ethernet Mobile Front/ Backhaul 100G TM-Series DTN-X XTC Series WDM line-side data plane interoperability Infinera

42 Winning in the Metro Expanded Portfolio with Best in Class Metro and Long Haul solutions Worldwide Brand, 4x Salesforce Significant Increase in Addressable Market Combined engineering base and technology leadership Infinera

43 What the Network Will Be Dave Welch, President and Co-Founder October 6, Infinera

44 Committed to Invest, Right Bets Metro LH, Subsea DCI Application Rich Automated & Programmable More Capacity/Reach Hyper-scale, DevOps Common Technologies Optimized Solutions Increased Share of $15B TAM Infinera

45 Networks Are Transforming Headend / CO Data Center Layer C Cloud Services VNF VNF VNF VNF x86 x86 Network Services Routing Control Routing/Transport SDN Layer T Intelligent Transport SDN SDN Infinera

46 Building the Best Layer T End to End Programmable and Agile SDN Control and Open APIs DevOps, Rapid service creation/delivery SDN-Virtualized Optical Flexible Granular Control Packet, Digital, Optical Switching Rich applications, efficient networking Packet, OTN, ROADM Switching Scalable Optics Best-in-class right-sized optics Max capacity, minimum space/power/cost Industry s only Large Scale PICs Infinera

47 Long Term Strategy Vertical Expansion Router Market 2% CAGR Expanded Opportunity with SDN-enabled Packet-Optical Solutions Transport Market 9% CAGR Infinera Source: Infonetics 2015 Forecast for

48 Right Products at the Right Time DTN-X XTC-2 & XTC-2E TM-Series 100G DTN-X XTC DTN-X XT-Series Optimized 100G for OTN switched metro Unified Packet-Optical for the Metro Long Haul Point-to- Point Interconnect Unified End-to-End Portfolio Foundation for Layer T Infinera

49 Infinera The Evolution of Service Provider Networks

50 Windstream s Transport Network Randy Nicklas CTO & EVP of Engineering Windstream Communications

51 Windstream Network Overview A national wireline telecommunications service provider serving Enterprise, Consumer and Carrier customers in 48 states. A complete set of network assets 118,000+ route mile fiber optic network Single converged IP/MPLS network Extensive Data Center and Cloud capabilities A full suite of advanced network, cloud and managed services. 51

52 Transport Network Challenges Windstream History 2006 Wireline spin-off of Alltel (ILEC + CLEC) Further ILEC acquisitions CLEC acquisitions in support of a National footprint Total of 9 acquisitions Extreme Network Diversity in all layers (Physical, Transport, Data & Voice) Significant network component overlap Extreme BSS/OSS Diversity One of our largest challenges 2013 forward: Network Rationalization programs IP/MPLS (on-going) Transport (on-going) Voice (on-going) Pick or introduce go-forward platforms/vendors Cap or decommission legacy platforms Focus on operational considerations, service delivery intervals and capital 52

53 Winterstate LH DWDM Network 53

54 Transport Network Goals Single Transport Network to Provision and Operate Towards a programmable network with more API and less human interaction Requires network simplification and realistic expectations/timelines for any chance of success Across all domains: long-haul, regional and metro All-Ethernet metro rationalization and growth a key focus area Metro fiber network expansion & associated access and transport network platform builds in strategic markets underway Increase Winterstate (LH DWDM) capillarity overall and gateway density in strategic markets Drives our interest in Infinera product line expansion/metro Business Group Across all (go-forward) vendors Stove pipe platforms no longer a viable modus operandi Technology driven capital and operational expense efficiencies Infinera as a vendor/platform is our benchmark Easier network planning and operations Infinera as a vendor/platform is our benchmark 54

55 What s next in Metro Nicolas Fischbach Strategy, Architecture and Innovation Director 55

56 56

57 184k+ LDN, metro fibre and subsea & terrestrial leased capacity 29 Carrier neutral Colt owned and / or managed data centres 500+ Network to Network interfaces 23k+ Buildings directly connected 3 Continents 537 Colt-connected data centres 50+ Industry awards 207 Cities connected 86 Countries in which we deliver services to end-user customer sites (On-Net or via partners) 25k+ Customers 5k+ Employees 16 Languages supported by 24/7 customer service 57

58 29 Carrier neutral Colt owned and / or managed data centres 537 Colt-connected data centres Packet Optical 23k+ Buildings directly connected 207 Cities connected Packet This is why Metro is key 58

59 The Long Haul Footprint DTN DTN-X XTC-2 08 October 2015 The Metro Opportunity Pr esentati on ti tl e 59

60 Thank For you your time Colt DCNet 08 October 2015 Pr esentati on ti tl e 60

61 Why our customers choose Colt 61

62 And why we picked 62

63 Our Experience of Infinera In our long haul core network Short Lead Times These capabilities matter to Colt s customers So now we need these advantages in the metro too! 63

64 Thank For you your time 08 October 2015 Pr esentati on ti tl e 64

65 Infinera