Investor Day Presentation, Sept 2012

Analyst & Investor Day

September 19, 2012 Martinsried/Munich, Germany

© 2012 ADVA Optical Networking. All rights reserved. Confidential. 2 2

Disclaimer

FORWARD-LOOKING STATEMENTS

This presentation contains forward-looking statements with words such as “believes”, “anticipates” and “expects” to describe expected revenues and earnings, anticipated demand for optical networking solutions, internal estimates and liquidity. These forward-looking statements involve a number of unknown risks, uncertainties and other factors that could cause actual results to differ materially. Unknown risks, uncertainties and other factors are discussed in the ‘risk report’ section of ADVA Optical Networking’s annual report 2011.

CONSOLIDATED PRO FORMA FINANCIAL RESULTS

ADVA Optical Networking provides consolidated pro forma financial results in this presentation solely as supplemental financial information to help investors and the financial community make meaningful comparisons of ADVA Optical Networking’s operating results from one financial period to another. ADVA Optical Networking believes that these pro forma consolidated financial results are helpful because they exclude non-cash charges related to the stock option programs and amortization and impairment of goodwill and acquisition-related intangible assets, which are not reflective of the company’s operating results for the period presented. This pro forma information is not prepared in accordance with IFRS and should not be considered a substitute for historical information presented in accordance with IFRS.


Agenda

• 02:00pm – 03:30pm: Brian Protiva – CEO

• 03:30pm – 03:45pm: Coffee Break/Q&A

• 03:45pm – 04:30pm: Product Demo

• 04:30pm – 04:45pm: Coffee Break

• 04:45pm – 05:45pm: Jaswir Singh – CFO & COO

• 05:45pm – 06:00pm: Coffee Break/Q&A

• 07:30pm – 09:30pm: Dinner – Vorstand, all attendees


Brian Protiva, CEO

September, 2012

ADVA Optical Networking The Best of Both Worlds


Our Environment


Brian Protiva

CEO

Jaswir Singh

CFO & COO

Christoph Glingener

CTO

Christian Unterberger

CSMO

Executive Team

Technology innovation Revenue growth Operational execution Key responsibility:

Experienced and stable leadership team

Quality Management

Human Resources


Crisis? What Crisis?

The global boundary conditions will remain difficult for some time

$122,100,000,000,000 US unfunded liabilities

by Dec 31, 2012

Euro Crisis China's economy has grown at its slowest pace in three years


The Telecom Market

Profitable growth is a challenge

Regulation

Competition

Globalization New Services

Differentiation

Profitability


The State Of Our Industry

Partly cloudy. But: the network is the foundation for all

Components

Enterprises

Consumer Devices

Cloud Services

Content Service Providers

Systems

Carriers


?

What Does It Take To Win?

Speed to outperform Str

ength

to innovate

• Innovation

• Speed

• Trusted Partner


ADVA Optical Networking

Growth Data 2008 – 2012F

Market

0%

20%

40%

60%

80%

100%

120%

140%

2008 2009 2010 2011 2012F

LH WDM

Metro WDM

EAD

CAGR: 4.2%

CAGR: 12%

Consistent multi-year performance


“Our mission is to be the trusted partner for

innovative Optical+Ethernet transport solutions

that ADVANCE next-generation networks for

data, storage, voice and video services.”

ADVA Optical Networking Today

Your trusted partner for speed and innovation

Our History

• 18 years of innovation

Our Performance

• 19% revenue CAGR since 1995, 12% in the last 4 years

Our Innovation Strength • 570 engineers at year-end 2011,

up 15% per year on average over the last 4 years

Our US Focus

• 38% revenue today; target 50% by 2015


Global Presence

Richardson Atlanta Munich Meiningen Berlin Singapore Shenzhen

Headquarter

Office

Representative


Strength To Innovate For Growth Markets


Growth Is In Mobility

Mobility

Mobile communication has become a way of life

Mobile Mobile Broadband Fixed Broadband

Subscri

bers

(billions)

0

1

2

3

4

5

6

7

08 09 10 11 12 13 14 15

http://www.infonetics.com/


What Matters?

Backhaul with synchronization & timing to support LTE

Service Assurance

Service Intelligence

Timing Excellence

FSP 150

Demarcation Aggregation Service Edge

FSP 150EG-X

FSP 150CC


Mobile Backhaul Innovation

FSP 150

>15 MBH customers, > 900 gateway units shipped


Ethernet Wholesale

Our Ethernet Innovation

The industry’s leading Carrier Ethernet implementation

• Connectivity & Resiliency with accurate HW-based OAM/PM

• Out-of-Service Testing & In-Service Monitoring

• Aggregation for efficient hand off

• Plug&Play installation, Service provisioning & monitoring

The Foundation for Business Ethernet Services 1

Efficient inter-carrier handoff (E-NNI)

2

Enable a seamless transition towards Ethernet

• TDMoE (CES/PWE3) and TDMoE

The solution for wholesale and integrated approaches

• The leading clock recovery / synchronization service with assurance

• Security solutions for mobile backhaul

• Mobile backhaul optimization

• Data and Sync transparent virtual dark fiber backhaul

SONET/SDH Replacement 3

Mobile Backhaul 4


Growth Is In Data Centers

Datacenter traffic will grow by 5 times by 2015 to 5 zettabytes

Data Centers

Q4 06 Q4 07 Q4 08 Q4 09 Q4 10

Total number of objects stored in amazon S3, in billion

2.9 14

40

102

262 Peak requests 200k+

per second


Primary Data Center Backup Data Center

What Matters?

Lowest Latency

Highest Availability

Maximum Security

FSP 3000

Growth, security and resource consumption are primary pain points


Data Center Innovation

FSP 3000

More than 50% of our 10G connectivity sales are now encrypted; 100G metro extremely successful, winning us new business


Our Enterprise Innovation

Enable secure & versatile lowest latency connectivity

• Leading support of Storage / HPC and Ethernet

• Lowest latency on the market

• Unique Security Suite

• Enable Infrastructure as a Service (IaaS)

DC Connectivity (Enterprises, Government) 1

Provide the market leading high capacity DC connectivity solution

• Efficient transport for 1GbE to 100 GbE

• Cost efficient, assured Ethernet DC access

• Enable Infrastructure as a Service (IaaS)

DC Connectivity (Web2.0, Internet eXchanges) 2

Media L1 video networking Utilities Operational networks

Dedicated Solutions 3

Innovative connectivity for institutes, universities, schools

• Scalable and open optical connectivity

Research & Education 4

http://moss.advaoptical.com/marketing/GraphicsPhotos/Stock/shutterstock_1441097.jpg


Growth Is In Cloud Infrastructure

Massive data centers have changed traffic patterns

Exabytes/month Cost of SP equipment change per year

E

xabyte

s/m

onth

(tr

illions)

0

10

20

30

40

50

60

70

2009 2010 2011 2012 2013 2014

Price p

er

port

per

Gbps (

US$k)

$0

$1

$2

$3

$4

$5 OTT Video

Cloud Services

http://www.infonetics.com/


Access Metro Core

What Matters?

Agile optical network with end-to-end SLA assurance is the foundation

Service Management

From Access to Core

Multi-Layer Transport

FSP 3000


Infrastructure Innovation

The agile optical network with end-to-end SLA assurance is the foundation

FSP 3000

“ADVA Optical Networking’s relationship with Juniper provides its entry into the core optical network market and the tier 1 operator market …”

Rick Talbot, Current Analysis, July 2011


Our Infrastructure Innovation

A scalable and transparent FTTx infrastructure solution

• Optimum cost/fiber/energy/rack usage

• Scalable passive and active solutions

• Optojack™ last mile supervision

• Dedicated optical & Ethernet edge gateway solutions

Optical Access and Backhaul 1

Provide the market leading flexible metro solution

• Highly scalable optical layer

• Focus on OTN and POT access and aggregation

• Integrated optical & Ethernet solutions (150/3000)

• Innovative demarcation and passive solutions

• Evolution to Software Defined Optical Networks (SDON)

Metro 2

Agile Core Select and Core Express Solutions

• Scalable, efficient optical layer with self-monitoring

• Optimized OTN solutions

• Industry leading control plane – evolution to Openflow

• Evolution to Software Defined Optical Networks (SDON)

• Packet optical networking via partnership

Core 3



Outlook: SDN And Openflow

• Software Defined Networking (SDN)

• SDN virtualizes the network infrastructure – the natural step beyond virtualization of servers and storage

• Virtualization has appealed to network managers for some time; consequently, SDN is a strategy of substantial global interest.

• OpenFlow

• Has emerged as one of the world’s most popular SDN protocols, particularly among data centers for Web 2.0 companies

• One solution for the control of cloud computing, storage, and networking resources with a single, unified API*

• The Vision

• With a single instruction, the controller can jointly create virtual machines, and reserve computing, networking and storage resources in a virtual slice.

OpenFlow is seen as a native interface for SDN

*Application Programming Interface


Optical Network Elements (NE) w. lean Network Management (NM)

and embedded Control Plane

SW content: medium/low

Network Control

NE Software

NE Hardware

Multi-Layer Operation Today

Individual, proprietary management solutions leading to a non-integrated, costly mode of operation

Packet switch/router Network Element (NE) w comprehensive management & control SW

SW content: high

Network Control

NE Software

NE Hardware

Application


Transport Applications

Constraint-aware agile optical network acting as a large, geographically dispersed switch

with standardized Openflow IF

SW: new opportunities at app layer

Generalized flow forwarding engine with standardized Openflow IF

SW content: medium/low

SDN Changes The Software Content

Higher layer equipment risks commoditization New opportunities for optical networks through additional software content

NE Software

NE Hardware

Network Intelligence

NE Software

NE Hardware

Network Control

Application


SDN Leadership

Scalability, flexibility and automation for ultimate performance

Agile Optical Networking

• Extremely scalable and flexible optical layer

• Forward looking control and management concepts

• Integration with higher network layers (e.g. Juniper)


CTO Organization

Christoph Glingener CTO

Engineering

Network Management

Metro Core

Metro Access

Ethernet Access

System Verification

Test

Advanced Technology

Product Line Management

New Product Introduction

Lifecycle Management

Processes

Thought leadership and innovation


Speed To Be The Trusted Partner For Our Customers


Operators R & E

Our Broad And Loyal Customer Base

Leveraging our speed and innovation to build trust with enterprises, carriers and partners around the globe

Enterprises

http://www.facebook.com/pages/ADVA-Optical-Networking/37630238931

http://twitter.com/ADVAOpticalNews

http://www.arnes.si/en.html

http://www.bc.net/

http://www.spreadnetworks.com/

http://www.ivv.de/web/html/start/

http://www.tamu.edu/


Go-To-Market Strategy

Solutions integration

NMS integration

Long relationships

Regional focus

Vertical segments

Long relationships

e.g.

CUSTOMER

Three-pronged distribution model to flexibly address customer needs

VAR

OEM

DIRECT

http://moss/marketing/GraphicsPhotos/Stock/man_on_cellphone.jpg

http://moss/marketing/GraphicsPhotos/RD/Adva_19.jpg

http://www.gomonews.com/mobile-marketing-and-advertising-round-up/mobile-marketing/


2012 FC

51%30%

19%

55%24%

21%

Revenue by Channel Partner

VAR

Direct

OEM

Good mix between direct and indirect (OEM & VAR partners) business; Strengthening VARs through new partner program

2011

NEW!


Regional Focus

We are leveraging our partner landscape and experience with carrier AND enterprise customers

Grow carrier business further and penetrate additional enterprise verticals

North America

Growth in carrier infrastructure and mobile backhaul; expansion to new enterprise verticals

Europe

From managed services to carrier infrastructure (mobile backhaul, metro + long-haul infrastructure)

APAC

Grow business via regional partners + direct touch sales force into new territories

Emerging Markets


Strategic Sales Initiatives 2.0

Top 10

Named Accts

New

Cust.

Strategic Partnership

Service Business Growth engine Software

Improve margins Ethernet Attack Increase market share

Processes & Efficiency Increase efficiency

Top 10

Glo

bal

account

pro

gra

m

Strategic Sales Initiatives (SSI) drive revenue and lower cost of sales

http://www.juniper.net/us/en/

http://moss.advaoptical.com/marketing/GraphicsPhotos/Business/ADVA_Q2L8032.jpg

http://moss.advaoptical.com/marketing/GraphicsPhotos/End-user/ADVA_Q2L7709.jpg

http://moss.advaoptical.com/marketing/GraphicsPhotos/Business/ADVA_Q2L8125.jpg



SSI: Juniper-ADVA Partnership

PTX5000

OTS1000

MX/T-series

FSP 3000

MX-series

FSP 150

Qfabric

FSP 3000

Efficient, integrated and aligned solutions


SSI: Attacking Ethernet Opportunities

Content distribution

Business applications – ERP, CRM

TelePresence

Online trading

Core banking applications

Broadcasting

PoS and ATM applications

As transport converges on Ethernet, so do services. Leverage Ethernet as growth opportunity and expand into networking solutions.

FSP 150 Family


Marketing Strategy

Awareness and demand creation via efficient multipliers and personal touch

Media

Customers

Partners

Analysts

Live Events

PR & Online

Technical Marketing

Technology

Market

Building a strong community around our brand


Custo

mer

facin

g

Busin

ess s

upport

CSMO Organization

Christian Unterberger CSMO

Applications & Solutions

Management

Marketing

Technical Sales

Customer Operations

Sales Operations

Tools and Processes

APAC

British Telecom

Europe

Emerging Markets

North America

Revenue growth – building a community based on trust


Our ADVAntage

ADVA Optical Networking has a unique combination of customer focus and innovation

• World-class engineering team

• Focused on latest technology

• Unconstrained networking

Optical+Ethernet

Innovation

• Responsive team

• Customized delivery

• 24/7 worldwide

Speed for Customers

• High quality

• Operational excellence

• Financial stability

Trusted

Partner


Q&A


3.30pm – 3.45pm Coffee Break


3.45pm – 4.30pm Product Demo




Jaswir Singh CFO & COO


Global Operations


Operations Vision And Structured Project Initiatives

Strategic Initiatives Strategic Focus

1. Exploit ADVA Optical Networking’s growth to achieve accelerated cost reductions in the areas of direct materials, contract manufacturing, freight and distribution cost.

Provide highest quality products at market leading order fulfillment service levels (on time to commit and order lead times) to our customers, while reducing inventory and working capital needs.

1. Integrate processes successively and ways of working across all ADVA sites to increase operational effectiveness.

2. Help standardize manufacturing requirements for our products and consolidate contract manufacturing supplier base.

Motivate, educate and nurture our team to achieve high levels of performance, personal growth and job satisfaction.

Vision

All strategic initiatives driven by operations are aligned with the ADVA Efficiency Engine (AEE)

Operations will be a customer-centric organization that is agile and adaptive

in exceeding expectations and

inspiring confidence of all

stakeholders

Growth & Profitability

Optical+Ethernet Innovation

Operational Excellence

People



Operations

Sites

Meiningen, Germany

Norcross, Georgia,

USA

York, United

Kingdom

Shenzhen, China

Functions

Operations Engineering & Projects

Supply Chain

Manage-ment

S&OP Process and Inventory

EMS Manage-

ment

COO Organization

Finance

Jaswir Singh

CFO & COO


Manufacturing And Distribution Sites With Functions

Headquarter

Operations/Dist

EMS/CM supplier

Europe

Atlanta (27)

York (26)

Flextronics, Timisoara, RO

Shenzhen (12)

Sanmina-SCI, Shenzhen, CN

Meiningen (175)

Munich (4)

Operations Engineering & Projects

Supply Chain Mgmt

S&OP Process and Inventory

EMS Mgmt

USA

China


Finance



Finance

Commercial Management

EMEA North America

APAC

Decision Support

S&M Operations

R&D G&A

Group

Accounting Tax

Investor Relations & Treasury

Legal

Information Technology

Travel Facilities

Business Systems

CFO Organization

Operations

Jaswir Singh

CFO & COO

Internal Audit


CFO Organization Vision

CFO organization has grown into global team that is dynamic,

professional, efficient and scalable

The CFO team enables and influences quality decisions that are in the best interest of ADVA Optical Networking through the provision of timely and relevant business

information to all stakeholders, whilst ensuring all ethical and statutory standards are met.


Annual IFRS Revenues And Pro Forma Profitability

* Growth vs. previous year.

** Pro forma operating income is calculated prior to non-cash charges related to the stock option programs and amortization and impairment of goodwill and acquisition-related intangible assets.

Revenues and Pro Forma Gross Profit

(millions of EUR, % of revenues)

Pro Forma Operating Income**


232.8

100.0 (42.9%)

6.1 (2.6%)

2009

2009

2010

291.7

121.2 (41.6%)

13.3 (4.6%)

2010

310.9

133.5 (42.9%)

2011

2011

17.3 (5.6%)

+7%* +25%*

+7%*

+7%* +25%*

+7%*

+9%* +21%* +10%*

+30%*

+118%*

n.a.*


Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012

Quarterly IFRS Revenues And Pro Forma Profitability Revenues and Pro Forma Gross Profit***


Q2 2011

77.8

29.7** (38.1%) (43.0%)

3.5 (4.5%)

Q3 2011

79.3

30.9** (39.0%) (43.5%)

5.5 (6.9%)

Q4 2011

83.4

33.3** (40.0%) (43.9%)

7.4 (8.9%)

+11%* +2%* +5%*

+17%* +4%* +8%*

+286%*

+56%*

+36%*

32.3** (39.5%) (43.6%)

-3%*

81.7

-2%*

Q1 2012

4.5 (5.5%)

-40%*

Pro Forma Operating Income***


* Growth vs. previous quarter. ** Amortization for capitalized development projects is presented as cost of goods sold from 2012. Prior period information has been adjusted accordingly, by reclassification of amortization from research and development expenses to cost of goods sold. The percentages in red represent pro forma gross margins prior to reclassification. *** Pro forma operating income is calculated prior to non-cash charges related to the stock option programs and amortization and impairment of goodwill and acquisition-related intangible assets.

Q2 2012

35.1** (40.9%) (45.4%)

+9%*

85.9

+5%*

6.8 (8.0%)

+53%*


-5-3-1135791113

IFRS Profitability

EUR million Q2 2011 Q3 2011 Q4 2011 Q1 2011 Q2 2012

Pro Forma Operating Income

3.5

(4.5%)

5.5

(6.9%)

7.4

(8.9%)

4.5

(5.5%)

6.8

(8.0%)

Operating Income 2.4 (3.1%)

4.4 (5.6%)

6.7 (8.0%)

3.5 (4.3%)

5.9 (6.9%)

Net Income 0.8 (1.1%)

9.7 (12.3%)

8.7 (10.4%)

4.0 (5.0%)

5.1 (5.9%)

Diluted EPS in EUR 0.02 0.20 0.18 0.08 0.10

Margins, in % of Revenues

5.9%

6.9%

8.0%

Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012


Cash And Net Liquidity

EUR million Cash & Cash Equivalents

Financial Liabilities and Lease Obligations

Net Liquidity

40.8

69.9

-29.1

All-time high quarter-end cash and net liquidity positions at the end of Q2 2012, demonstrating financial strength and operational flexibility

Q1 2008

-40

-25

-10

5

20

35

50

65

Q2 2008

Q3 2008

Q4 2008

Q1 2009

Q2 2009

Q3 2009

Q4 2009

Q1 2010

Q2 2010

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Q3 2011

Q4 2011

Q1 2012

Q2 2012


4.4

4.6

4.8

5.0

5.2

5.4

5.6

5.8

6.0

40

50

60

70

80

90

100

Working Capital Metrics

Days Sales Outstanding (DSOs)

Days Payable Outstanding (DPOs)* Inventory Turns*

Healthy working capital metrics with DPOs > DSOs

56

5.6

54

* Amortization for capitalized development projects is presented as cost of goods sold from 2012. Prior period information has been adjusted accordingly, by reclassification of amortization from research and development expenses to cost of goods sold. As prior period values for DPOs (defined as average accounts payable / cost of goods sold) and inventory turns (defined as cost of goods sold / average inventories) are affected by this reclassification as well, these values have also been adjusted.

Q1

2008

Q2

2008

Q3

2008

Q4

2008

Q1

2009

Q2

2009

Q3

2009

Q4

2009

Q1

2010

Q2

2010

Q3

2010

Q4

2010

Q1

2011

Q2

2011

Q3

2011

Q4

2011

Q1

2012

Q2

2012


Revenues Per Region

Quarterly Development of Regional Revenues

(millions of EUR, % of total)

EMEA Americas Asia-Pacific

Q2 2011

77.8

5%

32%

63%

Q3 2011

EMEA remains most significant revenue contributor, Q2 2012 revenues impacted by significant investments in carrier infrastructure and enterprise solutions in EMEA and the Americas

79.3

6%

38%

56%

Q4 2011

83.4

2%

29%

69%

Q1 2012

81.7

6%

38%

56%

Q2 2012

85.9

6%

38%

56%


EUR million Q1 2012 Q2 2012

Net cash provided by operating activities 13.6 12.7

Net cash used for investing activities -8.3 -8.6

Net cash provided by (used for) financing activities 1.0 -0.3

Net effect of foreign currency translation -1.4 2.1

Net change in cash and cash equivalents 4.9 5.9

Cash and cash equivalents

at beginning of period 59.1 64.0

at end of period 64.0 69.9

Free cash flow* 11.2 10.6

* Free cash flow = Net cash provided by operating activities ./. capital expenditures for property, plant and equipment, finance leases and intangible assets not related to development activities.

IFRS Consolidated Cash Flow Statement


Financing Financial Liabilities • Maturity structure as of Sep 30, 2012 (E)

Credit Lines • EUR 8 million, unchanged from the end of 2011, with EUR 2 million each

provided by Deutsche Bank, BayernLB, DZBank and Portigon (WestLB) • WestLB line maturing in March 2013, we will seek to replace • All lines undrawn at current

Financial liabilities by maturity (in millions of EUR)

Balance on Sep. 30,

2012E Interest terms (a) 2012

Maturity

2013 after 2013

IKB Deutsche Industriebank

# Bank loans 1.1 Fixed rate, subsidized - 0.3 0.8

2.5 Fixed rate, subsidized - 0.4 2.1

# Bonded loan 14.0 Floating rate, based on 3M EURIBOR

-

14.0

-

Portigon (WestLB) bonded loan

11.4 Floating rate, based on 3M EURIBOR - - 11.4

Total financial liabilities 29.0 - 14.7 14.3

(a) Key covenants: ADVA Optical Networking Group year-end debt/equity ratio ≤ 3 and quarter-end net liquidity ≥ EUR 8 million.

• Depending on 2012 operating cash flow, in early 2013 we will start to seek refinancing for EUR 14 million bonded loan due in Q3 2013


Guidance Q3 2012

• Revenues between EUR 82 million and EUR 87 million

• Pro forma operating margin between 4% and 8% of revenues*

• ADVA Optical Networking will continue to perform detailed quarterly reviews of the expected business development in respect of all intangible assets, including capitalized research and development expenses; these reviews may result in non-cash impairment charges

* Excluding any potential impairment charges.


18.1%

81.9%

Free float

EGORA Group

• ADVA Management

• DWS (D) • Capital (US) • DnB NOR (NOR) • Fidelity (US) • ING (NL) • Pictet (CH) • Polar (UK) • SVM Asset (UK) • Swedbank (S) • DEKA (D) • UBS (CH) • Union Inv. (D) • Baring Asset (UK) • Other inst. inv. • Retail inv.

8.4% 2.9%

Recent Investor Activities Planned Investor Activities

66.4%, below 1.5% each

As of Aug 31, 2012: 47,704,260 shares outstanding

Stockholder Structure Financial Analyst Coverage

Jul-Aug

Last change

Last update

Recommendation/ target price Institution

As of Aug 31, 2012

Arete Buy (€7.50) Mar 3, 11 (€6.70)

Berenberg Buy (€6.50) Jul 19, 12 (€6.50)

Close Brothers Seydler Buy (€6.00) Jul 19, 12 (€6.00)

Deutsche Bank Buy (€6.50) Jul 19, 12 (€6.50)

DZBank Buy (€6.30) Jul 19, 12 (€6.00)

Edison Investment Research n.a. (€6.27) Aug 28, 12 (Initiation)

Hauck & Aufhäuser Buy (€6.20) Jul 3, 12 (€6.20)

LBBW Buy (€6.40) Jul 11, 12 (€6.40)

Silvia Quandt Bank Buy (€7.30) Feb 24, 11 (€4.80)

Ø € 6.31

2.6%

Recommendations in light grey are outdated; outdated target prices have not been included in average target price calculation.

1.6%

Source: LionShare, as of Aug 31, 2012.

Investor Relations Overview (I/II)

Jul 19 • Release of Q2 2012 IFRS financials and guidance for Q3 2012

• Updates to financial analysts

• Institutional investors met in Europe and America: Frankfurt, New York, Boston Oct 23 • Release of Q3 2012 IFRS financials and

guidance for Q4 2012 • Updates to financial analysts

Sep-Oct • Investor roadshows and conferences in Europe and America: London, Munich, Brussels

Sep 19 • Annual Analyst & Investor Day, Munich, Germany


Excludes outdated estimates

Share Price and Trading Volume Development

Share price in €

Trading volume in thousand

Ø daily trading volume (in shares) • 1 month: 103,805 • 6 months: 251,190 • 12 months: 248,091

Sep 1, 2011 – Sep 15, 2012 FWB Xetra data

Share price in EUR • Current (Sep 14) 5.28 • 52 week high 5.59 • 52 week low 3.08

Financial Analyst IFRS Estimates

(x%) = % of revenues As of Sep 15, 2012

Ø analyst estimate

ADVA guidance

FY 2011

Revenues

Pro forma op. inc.

EUR m

82 - 87

3.3 – 7.0 (4% - 8%)

Net income

FY 2012

6.6 (7.6%)

3.9 (4.5%)

Ø analyst estimate Actual

Q3 2012

345.0 (+10.9%)

25.7 (7.4%)

17.7 (5.1%)

Investor Relations Overview (II/II)

FY 2013

Ø analyst estimate

385.4 (+11.7%)

31.0 (8.0%)

19.3 (5.0%)

310.9

17.3 (5.6%)

16.9 (5.4%)

86.6 (0.9%)


In Summary


How we ADd VAlue

ADVA Optical Networking is a thought leader in developing intelligent network infrastructure for high-growth markets

Profitable growth

FOCUS ON

GROWTH MARKETS

Expanding opportunities

THOUGHT

LEADERSHIP

Differentiated technology

OPERATIONAL EXCELLENCE

Loyal

customer


Q&A




7.30pm – 9.30pm: Dinner w/Vorstand

Spatenhaus an der Oper Residenzstrasse 12 80333 Munich [email protected] T. +49 89 290 706 0

Directions:

U 3/6 Marienplatz or Odeonsplatz U 4/5 Odeonsplatz Subway Marienplatz Strassenbahn Nr. 19 Nationaltheater (opera house)

mailto:[email protected]

Thank you Investor Relations

Wolfgang Guessgen t +49 89 89 06 65 940 [email protected] www.advaoptical.com