ADTRAN Overview

ADTRAN Company Confidential® Adtran, Inc. 2013 All rights reserved 1

ADTRAN Overview

Kevin MorganDirector – Marketing Communications



Corporate Overview


ADTRAN Competencies

Innovative and Responsive Engineering

Customer Partnership Model

Integrated World Class Supply Chain

Industry-Leading Financial Performance


ADTRAN Leadership

Leadership in focused industry and standards organizations◦ Board of Directors◦ Policy chair positions◦ Technical chair positions◦ Editors◦ Contributors


ADTRAN’s Global Offices


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


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


ADTRAN – Complete Connectivity

Business & Residential Customers

Exchange

Provider’s Access Infrastructure


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


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


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


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


2008 Active Broadband Accounts

These 48 accounts represent 6% of the Rural LECs and 22.9% of access lines


2013 Active Broadband Accounts

These 209 accounts represent 28% of the Rural LECs and 57% of access lines


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)


17

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



Documents

ADTRAN Overview