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+ 3 Q 1 9 I N V E S T O R P R E S E N T A T I O N O C T O B E R 2 3 , 2 0 1 9 Safe Harbor Disclosure This presentation contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. The


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3 Q 1 9 I N V E S T O R P R E S E N T A T I O N O C T O B E R 2 3 , 2 0 1 9

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Safe Harbor Disclosure

This presentation contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. The words “anticipate,” “expect,” “believe,” “will,” “may,” “should,” “estimate,” “project,” “outlook,” “forecast” or other similar words are used to identify such forward-looking statements. However, the absence of these words does not mean that the statements are not forward-looking. The forward-looking statements represent NETGEAR, Inc.’s expectations or beliefs concerning future events based on information available at the time such statements were made and include statements regarding: NETGEAR’s ability to pursue its long-term strategies; NETGEAR’s future operating performance and financial condition, expected net revenue, GAAP and non-GAAP operating margins, and GAAP and non-GAAP tax rates; expectations regarding the timing, distribution, sales momentum and market acceptance of recent and anticipated new product introductions that position the Company for growth; expectations regarding NETGEAR's paid subscriber base, registered users and registered app users and their effect on NETGEAR's paid subscriber base; and expectations regarding future market size for certain areas of potential growth. These statements are based on management's current expectations and are subject to certain risks and uncertainties, including the following: future demand for the Company's products and services may be lower than anticipated; consumers may choose not to adopt the Company's new product or service offerings or adopt competing products or services; product performance may be adversely affected by real world operating conditions; the Company may be unsuccessful or experience delays in manufacturing and distributing its new and existing products; telecommunications service providers may choose to slow their deployment of the Company's products or utilize competing products; the Company may be unable to collect receivables as they become due; the Company may fail to manage costs, including the cost of developing new products and manufacturing and distribution of its existing offerings; the Company may fail to successfully continue to effect operating expense savings; changes in the level of NETGEAR's cash resources and the Company's planned usage of such resources, including potential repurchases of the Company’s common stock; changes in the Company's stock price and developments in the business that could increase the Company's cash needs; fluctuations in foreign exchange rates; and the actions and financial health of the Company's customers. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. Further information on potential risk factors that could affect NETGEAR and its business are detailed in the Company's periodic filings with the Securities and Exchange Commission, including, but not limited to, those risks and uncertainties listed in the section entitled “Part II - Item 1A. Risk Factors,” in the Company's quarterly report on Form 10-Q for the fiscal quarter ended June 30, 2019, filed with the Securities and Exchange Commission on August 2, 2019. Given these circumstances, you should not place undue reliance on these forward-looking statements. NETGEAR undertakes no

  • bligation to release publicly any revisions to any forward-looking statements contained herein to reflect events or circumstances after the date hereof or to reflect the occurrence
  • f unanticipated events, except as required by law.

All product and company names herein are or may be trademarks of their respective owners.

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Mission

Be the innovative leader in connecting the world to the Internet.

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Quarterly Revenue of $265.9 million 51% Share in U.S. Retail WiFi Market1 53% Share in U.S. Retail Switch Market2 12 million Registered Users Worldwide 3.6 million Registered App Users Worldwide Continued Roll Out of WiFi 6 Products

3Q19 HIGHLIGHTS

1The NPD Group, Inc., U.S. Retail Tracking Service, Networking Devices: Gateways, Range Extenders, and Routers; Cellular ready technology: exclude 3G, 4G, Dual Band 3G/4G, LTE; Network Connectivity: exclude powerline; based on dollar sales, July - August 2019. 2The NPD Group, Inc., U.S. Retail Tracking Service, Networking Devices, Switches, based on dollar sales, July - August 2019.
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TECHNOLOGY INFLECTIONS CREATE NEW CATEGORIES RECURRING SERVICE REVENUE

S T R A T E G Y F O R G R O W T H

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WiFi 6 Gaming PoE+ Pro AV 10 Gig Content Streaming Mesh 5G

Key Technology Inflections New Categories

Mesh

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… T O A L A R G E A N D E N G A G E D C U S T O ME R C O M MU NI TY Registration + Ongoing Engagement Recurring Revenue

The NETGEAR Evolution

F R O M A L A R G E I N S T A L L E D B A S E W I T H L I M I T E D E N G A G E M E N T …

P A T H T O O P M A R G I N S *

15 15%

*Non-GAAP

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Connected Home Services

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SMB Services

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Connected Home Segment

P R O D U C T S A N D T E C H N O L O G Y

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I N T R O D U C I N G W I F I 6

CAPACITY

Handles up to 4X the devices

RANGE

Up to 50% longer range

SPEED

Up to 40% higher throughput

PERFORMANCE

Improves client battery life

Note: Maximum wireless signal rate derived from IEEE 802.11 specifications. Actual data throughput and wireless coverage will vary and be lowered by network and environmental conditions, including network traffic volume, device limitations, and building construction. NETGEAR makes no representations or warranties about this product’s compatibility with future standards.
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Designed for the Needs of Gamers

N I G H T H A W K P R O G A M I N G

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Source: Newzoo 2018 Global Games Market Report

Gamers worldwide growing to 2.75B by 2021

2.35B

Of gamers purchase hardware to improve their gaming

68%

Driven by the Growth of eSports & Online Gaming

N I G H T H A W K P R O G A M I N G

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O R B I M E S H Unparalleled performance & enhanced security with NETGEAR Armor

“There’s no denying that NETGEAR’s hardware is top of the line. If you need a strong, reliable, fast signal Orbi is worth the money.”

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A R M O R O N O R B I P L A T F O R M

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M E U R A L

75M

Impressions

Launched Meural Canvas II (21.5” and 27”) at IFA Awarded “Best of IFA” Expanding Retail Placements

“Netgear’s Meural Canvas II is a 27-inch screen to turn your home into a gallery” “Meural’s revamped Canvas II wireless photo frame lets you decorate your wall with priceless works of art”

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Membership

  • Subscription $69.95/year
  • Dynamic access to 30,000+ digital content
  • Exclusive artwork & photography
  • Strong membership attach
  • Marketplace for purchasing and owning content
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CHP Strategy

Up ASP with New Technology Drive New Lifestyle Categories Sell Services

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SMB Segment

P R O D U C T S A N D T E C H N O L O G Y

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2003 2010 2011 2014 2017 2017 2017 2018

First Smart Switch First Lightly Managed Plus Switch First 10G Smart Switch Flexible Mounting Click Switch First App Managed Access Point First Fully Autonomous Cloud Management Switch First DIY WiFi Mesh Solution for Business Pro AV 48/96 10G Switch

History of Innovation in SMB

2019

Half Width 16-port PoE+ ProAV Switch

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Upgraded Technology > 2x ASP …

1Gbps 10Gbps PoE PoE+ 11ac WiFi 6

$203 $1,220

Q4'18

1G 10G

$236 $420

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PoE PoE+

$67 $151 $400

Q4'18

11n 11ac WiFi 6

Smart Switch Port Speed ASPs Smart Switch PoE ASPs NETGEAR SMB Access Point ASPs

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AV transitioning HDBase-T to Ethernet

Source: AVIXA’s Global Industry Outlook and Trends Analysis (IOTA) 2018 report & AV Magazine “All the growth in the world” 2/11/2019 article

$0 $20 $40 $60 $80 $100 $120 $140 $160 $180 200,000 400,000 600,000 800,000 1,000,000 2018 2019 2020 2021 2022 2023

Millions

Interconnect Market Size

HDBASE-T switched ports 1G AVoIP switched ports 10G SDVoE switched ports 1G Switch Market 10G Switch Market 0% 2% 4% 6% 8% 10% 12% $0 $10 $20 $30 $40 $50

Corporate Venues & Events Media & Entertainment Retail Others Education Residential Transportation Government & Military Hospitality Energy Cinema Healthcare

2018 Pro-AV Market by Application Vertical

2018 Market Size ($B) 2018 to 2023 CAGR (%)

Source: SDVoE Alliance market sizing based on FutureSource Consulting’s “HDBase-T in AV signal distribution” and AVIXA’s IOTA reports

Billions Billions Switched ports

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Do-It-Yourself SMB Networks

Instant Mesh Instant WiFi Instant Captive Portal

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Managed Service Providers $15 per year per device DIY $5 per year per device

SCREENSHOT

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SMB Summary

Up ASP with New Technology ProAV, Insight Mesh Insight Services

SCREENSHOT

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Financials

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Quarterly Net Revenue

(Net Revenue, $ Millions)

$274 $245 $255 $269 $289 $249 $231 $266 $0 $50 $100 $150 $200 $250 $300 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19

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Segment Performance

(Net Revenue, $ Millions)

10 20 30 40 50 60 70 80 90 100 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19

S M B

50 100 150 200 250 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19

C O N N E C T E D H O M E

Retail Service Provider

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Regional Performance

(Net Revenue, $ Millions)

10 20 30 40 50 60 70

E M E A

10 20 30 40 50 60 70

A PA C

20 40 60 80 100 120 140 160 180 200

A M E R I C A S

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Operating Margin

(Non-GAAP, % of Revenue)

4.6% 4.3% 4.1% 10.5% 9.4% 9.1% 4.4% 7.8% 0% 2% 4% 6% 8% 10% 12% 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19

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Earnings Per Share

(Non-GAAP, $ per Share)

$0.34 $0.26 $0.29 $0.73 $0.68 $0.60 $0.28 $0.65 $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 $0.80 $0.90 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19

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*

Cash Balance

(Cash, Cash Equivalents and Short-Term Investments, $ Millions)

$330 $386 $356 $342 $274 $213 $218 $172 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19