ADTRAN Company Confidential ® Adtran, Inc. 2013 All rights reserved 1 ADTRAN Overview Kevin Morgan Director – Marketing Communications
ADTRAN Company Confidential® Adtran, Inc. 2013 All rights reserved 1
ADTRAN Overview
Kevin MorganDirector – Marketing Communications
ADTRAN Company Confidential® Adtran, Inc. 2013 All rights reserved 2
ADTRAN Company Confidential® Adtran, Inc. 2013 All rights reserved 3
Corporate Overview
ADTRAN Company Confidential® Adtran, Inc. 2013 All rights reserved 4
ADTRAN Competencies
Innovative and Responsive Engineering
Customer Partnership Model
Integrated World Class Supply Chain
Industry-Leading Financial Performance
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ADTRAN Leadership
Leadership in focused industry and standards organizations◦ Board of Directors◦ Policy chair positions◦ Technical chair positions◦ Editors◦ Contributors
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ADTRAN’s Global Offices
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ADTRAN Research and Development Centers:• Huntsville, AL• Greifswald, Germany• Berlin, Germany• Munich Germany• Phoenix, AZ• Ottawa, Canada• Boston, MA
Research and Development
Industry:.25 per $1M R&D
ADTRAN:.4 per $1M R&D
Patent Applications per $1M R&D Investment
~ 750 patents and patent applications
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Our People
ADTRAN Employee Retention:• Average Years of Service
2,200 FTEs
Sales
10.1 yrs
11.6yrs
11.3yrs
10.2yrs 9.9
yrs
MarketingQuality
Manufacturing
Engineering
G&A
9.0yrs
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ADTRAN – Complete Connectivity
Business & Residential Customers
Exchange
Provider’s Access Infrastructure
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ADTRAN – Carrier Networks Division
Exchange
Provider’s Access Infrastructure
• Improve service provider access infrastructure
• Increase services for business & residential customers
• ADTRAN Carrier solutions enable:
• Broadband Access• Ethernet Aggregation• Optical Networking• Business Ethernet Services• Business Service Migration• IPTV• VoIP• Mobile Backhaul
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ADTRAN – Enterprise Networks Division
Business Customers
• Innovative communication solutions for Small & Medium Enterprises
• ADTRAN Enterprise solutions enable:• Branch Office Connectivity• Internet Access• Converged Access• LAN Switching• Wireless Access• IP Telephony/VoIP• Unified Communications
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Global Market Share
Enterprise#1 IP Business Gateways (Global)(VoIP Access and SIP Trunking market segment)
#2 Access Routers (North America)
Carrier#2 DSL Aggregation (Global)
Alcatel‐Lucent42%
ADTRAN16%
Huawei14%
Calix8%
ZTE4%
ZyXel4% Other
12%
Source: Infonetics Q1 2014 Report
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Unparalleled Momentum
13
2008 2009 2010 2011 2012 2013
0 17 46 91131 164
59
109
163
243
287
337
North American Carriers deploying ADTRAN Total Access 5000 Broadband Solutions
FTTP - GPON / Active Ethernet
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2008 Active Broadband Accounts
These 48 accounts represent 6% of the Rural LECs and 22.9% of access lines
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2013 Active Broadband Accounts
These 209 accounts represent 28% of the Rural LECs and 57% of access lines
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Financial Stability
Strong Financial Track Record
25 years of Continuous Profitability
~4.8x Free Cash Flow Advantage
(over competitive average)
~2x More Net Cash & Marketable Securities
(as % of Total Assets than competitive average)
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Things to look for this week….
• Continuing Evolution and Solutions for FTTH
• Increasing portfolio for DSL – Vectoring and Bonding FTTN with New OSP Designs
• Expansion of Mobile Backhaul Solutions
• Totally new approach for Network-Edge Packet-Optical Transport
• Unified Communications Platforms
• New Virtual Wireless-LAN solutions and services
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