FEBRUARY 20, 2017

EDGEWARE

YEAR END REPORT 2016

2 © EDGEWARE 2015 / CONFIDENTIAL

AGENDA

1.  Q4 in short 2.  About Edgeware and our market 3.  Results 4.  Outlook

3 © EDGEWARE 2015 / CONFIDENTIAL

TODAY’S PRESENTERS

JOACHIM ROOS, CEO

STEEVE FÜHR CFO & HR

4 © EDGEWARE 2015 / CONFIDENTIAL

AGENDA

1.  Q4 in short 2.  About Edgeware and our market 3.  Results 4.  Outlook

5 © EDGEWARE 2015 / CONFIDENTIAL

2016 IN SHORT

SEK 85 M 30,6% SEK

18 M

SEK 252 M 23,9% SEK

34 M FULL YEAR 2016

NET SALES

INCREASE NET SALES

ADJUSTED OPERATING PROFIT

KEY FIGURES Q4

NET MARGIN

21,1%

13,6%

MANY CUSTOMERS CONTRIBUTED

ENTERING AUSTRALIA SALES HIRES ACCELERATED

Q4 IN SHORT IMPORTANT EVENTS

IPO 9 DECEMBER

7 © EDGEWARE 2015 / CONFIDENTIAL

AGENDA

1.  Q4 in short 2.  About Edgeware and our market 3.  Results 4.  Outlook

•  Founded in 2004 •  Enabling distribution of video content over

networks

•  Scalable, high performance and cost-efficient solution

•  Global presence with HQ in Stockholm •  Blue-chip customer base of mobile and cable

operators, broadcasters as well as OTT providers

•  More than 150 customers in 60 countries •  Before the IPO fully owned by Amadeus

Capital Partners, Creandum, Micron Technology, founders, management and employees

•  Listed on Nasdaq Stockholm December, 9 2016 (29 SEK)

ABOUT EDGEWARE

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Hong Kong

Stockholm

TRENDS IN TV AND VIDEO DISTRIBUTION

0

40  000

80  000

120  000

2015 2016E 2017E 2018E 2019E 2020E

Petabytes2

)  per  m

onth

Internet  TV  and  video Other

VIDEO STREAMING IS EXPLODING

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EXISTING STREAMING INFRASTRUCTURE IS INSUFFICIENT

Internet not built to support expected demand

Under-invested infrastructure resulting in

poor quality of service

2014-2019E CAGR

31%

12%

3)

PREDICTED TO BE MORE THAN 80% OF INTERNET TRAFFIC BY 2020

THE EDGEWARE JOURNEY

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NET SALES ADJ EBIT

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

CAGR ‘07-’16

39% SHIFTING TO DIRECT

ENGAGEMENT

BREAKTHROUGH ORDER

DEVELOPMENT OF VALUE PROPOSITION

NEW DIRECT SALES STRATEGY IMPLEMENTED

SCALING WITH PARTNERS AND EXPANDING PRODUCT OFFERING

12 © EDGEWARE 2015 / CONFIDENTIAL

AGENDA

1.  Q4 in short 2.  About Edgeware and our market 3.  Results 4.  Outlook

NET SALES (MSEK) ADJUSTED OPERATING INCOME (MSEK)

Q4 NET SALES AND ADJUSTED OPERATING INCOME

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•  Net Sales increased 31% YoY •  Net Sales increase in local currency 26% YoY •  Stable gross margin 71% (70%)

1 4 0 9 10

3 -5 5

12

-1 5

18

2% 10%

1% 16% 19%

7%

-13%

7% 19%

-1%

9% 21%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2014 2015 2016

Adj Operating Income Adj Operating margin %

30 35 31 52 53 51

36

65 64 51 53

85

69% 74% 73% 72% 72% 66% 68% 70% 73%

66% 68% 71%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2014 2015 2016 Net Sales Gross Margin %

•  Adj Operating Income 21% (7%), (excl IPO costs) •  Sales and Admin costs in line with previous year •  Increased cost for R&D related to consultants

2016 NET SALES AND ADJUSTED OPERATING INCOME

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FULL YEAR 2016

•  Net Sales increased 24% (23% in local currency)

•  Operating expenses for Sales and Admin (excluding IPO costs) in line with 2015

•  R&D expenses increased compared to 2015, mainly related to higher consultancy costs

•  Strong development in EMEA and APAC •  AMERICAS YoY growth impacted by large installation

in Mexico during Q4 2015 •  Service sales growing in line with product sales

148

204 252

13 13 34

72% 69% 70%

9% 7% 14%

2014 2015 2016

Net Sales Adj Operating Income

Gross Margin Adj Operating Margin

2014 2015 2016 16 vs 15 % EMEA 128 136 189 39%AMERICAS 13 55 41 -25%APAC 6 12 22 83%Total Sales 148 204 252 24% Products 119 168 208 24%Services 29 36 44 24%Total Sales 148 204 252 24%

BALANCE SHEET AND CASH FLOW

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•  Strong balance sheet with equity ratio of 76% (50) •  Continued conservative approach to capitalized development costs 14% (19) of gross R&D •  Strong cash position 195 MSEK (21) and no loans or interest bearing debt •  Cash flow from operation 45 MSEK (15)

Dec 2014 Dec 2015 Dec 2016 Total Assets 106 136 310 Intangible Assets 7 13 15 Cash and cash equivalents 17 21 195 Total Equity 60 68 234 Cash flow from Operation 10 15 45

16 © EDGEWARE 2015 / CONFIDENTIAL

AGENDA

1.  Q4 in short 2.  About Edgeware and our market 3.  Results 4.  Outlook

OTTs CHALLENGE ESTABLISHED PAY-TV VALUE CHAIN

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OTTs / Broadcasters

Telecom operators Cable operators CDN as a service providers

Viewers

EDGEWARE’S SOLUTION TARGETS ALL

•  ”TVB surrenders license as it quits Hong Kong pay-TV market” (Rapid TV News)

•  ”Several factors are driving the value proposition for private CDNs” (Frost & Sullivan)

•  ”Top Vendors Increasing Their Lead” (IPTV Market Leader Report) http://marketintelligence.spglobal.com/blog/iptv-market-leader-report-top-vendors-increasing-their-lead

NEWS AND REPORTS IN OUR MARKET

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—

FINANCIAL TARGETS

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TARGET 2016 ACTUAL

Sales growth

Margin

Dividend policy

organic annual net sales growth exceeding 20%

long-term exceeding 15%

No dividend will be paid in the coming years. Edgeware’s cash flow will be used to finance

continued development

23.9 %

13.6 %

LARGEST SHAREHOLDERS LIST OF SHAREHOLDERS NUMBER OF SHARES NUMBER OF SHARES AND VOTES 1. AMADEUS 6,937,205 23.1% 2. CREANDUM 5,635,975 18.8%

3. SWEDBANK ROBUR FUNDS 2,598,720 8.6%

4. GRENSPECIALISTEN 1,724,138 5.7% 5. CATELLA FUNDS 1,431,491 4.8% 6. LMK FORWARD AND FOUNDATION 1,431,491 4.8%

7. OST/VÄST 1,021,462 3.4% 8. AMF SMALL CAP FUND 1,000,000 3.3% 9. CLIENS 560,000 1.9% 10. LUKAS HOLM 518,249 1.7% 11. JOACHIM ROOS 518,226 1.7% 12. KALLE HENRIKSSON 518,226 1.7%

TOTAL 12 LARGEST SHAREHOLDERS 23,895,183 79.5% OTHERS 6,147,825 20.5% TOTAL 30,043,008 100%

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