1 | Infinera Confidential & Proprietary
Jefferies 2013 Global
Technology, Media &
Telecom Conference
Ita Brennan, Chief Financial Officer
May 7, 2013
2 | Infinera Confidential & Proprietary
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 forward-looking
statements. All statements other than statements of historical fact could be deemed forward-
looking, including, but not limited to, any projections of financial information; any statements
about historical results that may suggest trends for our business; any statements of the plans,
strategies, and objectives of management for future operations; any statements of expectation
or belief regarding future events, potential markets or market size, technology developments,
or enforceability of our intellectual property rights; and any statements of assumptions
underlying any of the items mentioned.
These statements are based on estimates and information available to us at the time of this
presentation and are not guarantees of future performance. Actual results could differ
materially from our current expectations as a result of many factors, including but not limited
to: aggressive business tactics by our competitors, our reliance on single-source suppliers, our
ability to protect our intellectual property, claims by others that we infringe their intellectual
property, and our ability to respond to rapid technological changes, and other risks that may
impact our business are set forth in our annual reports on Form 10-K filed with the Securities
and Exchange Commission, as well as subsequent reports filed with or furnished to the
SEC. These reports are available on our website at www.infinera.com and the SEC’s website at
www.sec.gov. We assume no obligation to, and do not currently intend to, update any such
forward-looking statements.
Safe Harbor
3 | Infinera Confidential & Proprietary
Infinera (INFN) At-A-Glance
� Industry Leader• Optical Transport Market Leader
• Vertically Integrated Technology Innovator
• Strong DTN-X Product Traction
• Highly Leverageable Business Model
• Solid Balance Sheet
4 | Infinera Confidential & Proprietary
What Does Infinera Build and Sell?
Digital
Switching
Intelligent
Software
Photonic Integrated Circuits
+ FlexCoherent Processor
Vertically
Integrated
Vertical Integration – Own Key Technologies
Build Systems
Intelligent Transport Network Systems
DTN-XDTNATN
Components enable unique
competitive advantage
5 | Infinera Confidential & Proprietary
Intelligent
Transport
Leading Architectural & Industry Transformation
ScaleMassive
Scale
Converged
Layers
SDN Multi-layer
Network Automation
Integrated
DWDM/OTN/MPLS
1T Super-channels
Automate Transport
w/GMPLS Intelligence
Integrated
DWDM/OTN
500G Super-channels
Competitors
Static / Manual
P2P Pipes
DWDM10G
40G
100G
6 | Infinera Confidential & Proprietary
100G Market Underway
10G Revenues
$6.0
$5.0
$4.0
$3.0
$2.0
$1.0
$0.0
2010 2011 2012 2013 2014 2015 2016 2017
Source: OVUM Fall 2012 “Line Card” Forecast
WD
M L
ine
Ca
rd R
eve
nu
e (
$U
SD b
illi
on
s)
40G Revenues
DTN-X Ships
100G Revenues
7 | Infinera Confidential & Proprietary
Optical Market – What is the Opportunity ?
Source: Dell’Oro O25A-Optical Forecast Tables Jan13
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
$18,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Mil
lio
ns
WDM Metro
WDM LH Terr
Optical Switch
Multiservice Multiplexer
9% CAGR
8% CAGR
12% CAGR
-6% CAGR
$7M
$6M
$3M
$1M
8 | Infinera Confidential & Proprietary
Infinera is WinningDTN-X #1 in 100G LH Port Share Since Market Entry
Source: Dell’Oro 4Q12 Optical Network HW
2,005
1,783
824659
280103
• #1 share since shipping
• In 2 quarters achieved 26%
of all 100G Ports ever sold
9 | Infinera Confidential & Proprietary
DTN-X Traction as of Q1 201327 Customer Commitments in only 3 Quarters
13 in NA 11 in EMEA 3 in APAC
New Existing
9 18
SLTE Metro Core
7 3
Long Haul
17
10 | Infinera Confidential & Proprietary
Actual Target
% of Total Revenue Q1'13 Q2'13-Lo Q2'13-Hi 2013-Lo 2013-Hi
Business
Model
Revenue ($M) $125 $130 $140 $480 $525 100%
Gross Margin 36% 37% 39% 38% 40% 45%
Operating Expense 42% 41% 39% 42% 40% 35%
Research & Development 22%
Sales & Marketing 13%
General & Administration 7%
Operating Income (Loss) -6% -4% 0% -4% 0% 10%
Depreciation & Amortization 5% 5% 5% 5% 5% 5%
Capital Expenditures 4% 4% 4% 5% 5% 5%
Guidance Guidance
Business Model - Proof Points
Mid-term
Business
Model
11 | Infinera Confidential & Proprietary
Summary
� Industry Leader• Technology leader in Intelligent Transport Networks
• Vertically integrated, highly leverageable biz model
• $4B addressable market growing to $11B in 2015+
• 115 customers in 60 countries
• DTN-X 27 customers in 3 quarters of shipping
• # 1 port market share in 100G Long Haul Transport
12 | Infinera Confidential & Proprietary
Thank youwww.infinera.com
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