EXFO : 25 ans de passion et d innovation EXFO en revue Flashback sur la mondialisation Quelques tendances Actions d EXFO Par : Germain Lamonde, Fondateur & PDG 25 octobre 2010 2010 EXFO Inc. All rights reserved. 1
EXFO : Humm? Wireline Wireless Service Assurance #1 Tests optiques #2 Tests Transport & Data #2 Tests portatifs #2 Analyseurs #2 Simulateurs (2G, 3G & 4G) #2 Réseaux IP (proactif & réactif)
Clientèle : opérateurs de réseaux télécom
Parmi le «Top-5» 2000 clients dans 100 pays 1700 employés dans 25 pays 50% Americas, 15% EMEA, 35% APAC 750 en R&D (Canada, Inde, Finlande, É.-U.) 35 nouveaux produits/an, 40% des revenus
Bandwidth Explosion Global IP traffic increasing 4X from 2009-2014, while mobile IP traffic soaring 39X (Cisco) 2010 EXFO Inc. All rights reserved. 5
HD TV Operators increasing network capacity and efficiency, while reducing operating costs Telephony IP Network Convergence Internet Mobile 2010 EXFO Inc. All rights reserved. 6
Croissance $200 050 000 400% $150 050 000 (en 7 ans) $100 050 000 $250M (run rate) $50 050 000 ~12% (EBITDA) 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010
Ingrédients clés Innovation Centré client Stratégique ~ $60M/année + Exécution + Mondiale
AF UN AUTRE GRAND MILLÉSIME + 32% de revenus > 100% de profitabilité
Flashback sur la «mondialisation» Pour ou contre? Compétitivité Formation Volonté de gagner Amérique dominante 2010 EXFO Inc. All rights reserved. 10
Long-Term Strategy Capitalize on bandwidth explosion Focus on convergence of mobile & fixed IP networks Leverage leadership in optical testing Move up the value chain on IP networks Accelerate profitability through globalization & execution 2010 EXFO Inc. All rights reserved. 11
Wealth of Opportunities Wireless Wireless backhaul 4G/LTE Wireline FTTx Carrier Ethernet 40G and 100G Upgrades 2010 EXFO Inc. All rights reserved. 12
Strong Sales Growth and Profitability $250 16.0% 14.0% $200 12.0% 10.0% Sales CAGR: 20.5 % $150 8.0% $100 6.0% 4.0% EBITDA Margin: -1.1% to 12.0% 2.0% In US$ Millions $50 0.0% -2.0% EBITDA Target: 14%-16% 2004 2005 2006 2007 2008 2009 2010 Sales = EBITDA Margin = 2010 EXFO Inc. All rights reserved. 13
Market-Driven Innovation First to introduce FTTH test solutions Worked closely with lead customer Enjoyed 6-12 month lead over peers Market dominance in FTTH market today 2010 EXFO Inc. All rights reserved. 14
Corporate Performance Objectives: Fiscal 2010-2012 Three-Year Goals 1 Results After FY 2010 2 1 Increase revenues by a CAGR of at least 25% 1 Increased revenues by 32.0% 2 Raise gross margin to 65% 2 Raised gross margin to 62.4% 3 Increase EBITDA in dollars by a CAGR of at least 30% 3 Increased EBITDA 3 in dollars by 88.8% 1 Goals were updated following the acquisition of NetHawk in March 2010 and the divestiture of the Life Sciences and Industrial Division in October 2010. 2 Fiscal 2010 results include discontinued operations. 3 EBITDA is defined as net earnings (loss) before interest, income taxes, amortization of property, plant and equipment, amortization of intangible assets, impairment of goodwill and extraordinary gain. 2010 EXFO Inc. All rights reserved.. 15
World s Most ADVANCED & FUTURE-PROOF Platforms IMAGINATION is the ONLY limit. USB-BARCODE READER FTB-ECOSYSTEM Signature capture 2010 EXFO Inc. All rights reserved. 16
INSTRUMENTS + SYSTEMS = SOLUTIONS Unlock hidden value of platforms Solutions focused on reducing Op/Ex FTB-ECOSYSTEM FTB-ECOSYSTEM 2010 EXFO Inc. All rights reserved. 17
2010 EXFO Inc. All rights reserved. 18
Innovation from Partnerships Knowledge Management Asset Management All the pieces of the Jigsaw Process compliance Remote Assistant Test Result Database (TADDS) Workflow (Taskforce) Information access 19 2010 EXFO Inc. All rights reserved. 19
Next-Gen Sales Structure Early to judge but very promising Much stronger FAM & GAM capabilities Slow to fill up some sales positions EMEA Stronger customer focus & feedback Quota assigned properly (Multi Div) Wireline Division Etienne Gagnon OpticBU T&D BU Access BU Wireless Division Hannu Huttunen Analyzers BU Simulators BU GVT Solutions BU Service Assurance Vivian Hudson BrixSolution EXFO Connect Americas Dana Y. NEMs Wireline Wireless EMEA Jon Bradley NEMs Wireline Wireless/SA NEMs Customers Wireline Operators Wireless Operators APAC John Jones China RoAPAC 2010 EXFO Inc. All rights reserved. 20
2010 EXFO Inc. All rights reserved. 21
2010 EXFO Inc. All rights reserved. 22