Plover Bay Technologies Ltd. · HKEX:1523
Plover Bay Technologies — Investor Presentation (May 2022)
27 slides from Plover Bay Technologies's investor presentation, May 2022
Slide 1: We Make Connectivity Reliable
We Make Connectivity Reliable May 2022
Slide 2: What is Connectivity?
Expectation ● Connectivity should be simple ● Connectivity should always work ● Connectivity should cost effective ● Connectivity should be there when needed What is Connectivity? Reality ● Existing solutions overcomplicates ● Fixed Lines cannot reach everywhere ● Mobile is not 100% reliable ● Your
Slide 3: Our Vision / Who Are We? / Key Facts
Our Vision We make connectivity reliable, anytime, anywhere Who Are We? Plover Bay Technologies Limited (stock code: 1523 HK) designs Key Facts networking products and technologies that provide reliable access to everyday connectivity needs. ● Revenue (2021): US$74M ● Net profit (2021): US$21M Everyd
Slide 4: Solid Track Record
Solid Track Record Revenue 1 Net Profit and Dividend Growth Through Uncertainties Net Profit 1 Dividend per Share Declared 1 Mid-late 2017 2018 - 2019 Mid 2020 Late 2020 ~ Present Memory chip Increasing global trade Early 2020 Travel restrictions, Semiconductor shortage, shortage tension Covid-19 outb
Slide 5: Market Landscape / Growth Dynamics
Market Landscape / Growth Dynamics Connectivity is needed everywhere ● Decreasing mobile bandwidth cost, increasing enterprise adoption ● Changed habits of Work-from-home / anywhere ● IoT and new kinds of applications ● Number of IoT connections increasing at 19% CAGR¹ ● Mobile data traffic increasing
Slide 6: What We Provide
What We Provide We get you connected anywhere ● SpeedFusion technology is where the magic happens: ○ Seamless failover - when one connection is down, the whole connection keeps running ○ Faster together - Bond multiple bandwidths, enhance downlink and uplink speed ○ WAN agnostic - Combine any of 4G,
Slide 7: Connectivity is full of practical problems
Whether it is 4G, 5G, or other technologies Connectivity is full of practical problems Problem Our solution Fixed network has many last-mile problems We break the loop with fixed + mobile networking ● Single provider in some locations ● Proven reliability using multiple LTE / 5G as additional ● Data
Slide 8: Connectivity is full of practical problems
Whether it is 4G, 5G, or other technologies Connectivity is full of practical problems Problem Our solution Sometimes, mobile is the only choice Industry leading portfolio of LTE/5G routers ● Vehicles, Ships, Remote locations, temporary events ● Same code base, purpose designed for many verticals ●
Slide 9: Markets We Reach
Markets We Reach Retail Finance ● Store network and POS connectivity ● Transactions ● Pop-up stores and events ● Data transmission Maritime IoT & Robotics ● Onboard, sea and port ● Real-time data transmission ● Integration of VSAT and LTE/5G ● Remote locations Public Safety Mobile Healthcare ● Equip
Slide 10: How Different Customers Use Our Products
How Different Customers Use Our Products Fast-food Chain Household fast-food chain in Taiwan rapidly deploys always-on connectivity for digital ordering kiosks, POS systems and in-store cameras. Bank ATMs Canadian multinational bank ensures 24/7 ATM services with always-on connectivity that can be m
Slide 11: Agriculture, Logistics, Broadcasting, Medical Institutions
Agriculture Agricultural corporation in the US uses wireless connectivity and mobility antenna on tractors to transmit live sensor data right from the field to its IoT server, increase farming productivity. Logistics Global logistics company with 200 sites worldwide refreshes its network infrastructu
Slide 12: Factory automation, Yacht, Large Vessel, Maritime Engineering
Factory automation Luxury car brand upgrades its manufacturing sites in the US with mobile connectivity, allowing it to expand its operations to anywhere with ease. It also enhanced the reliability of its operations. Yacht World leading luxury yacht dealer provides a fast and reliable connectivity t
Slide 13: Case Study Highlight
Case Study Highlight Enabling Mobile Office via Network as a Service Background Customer is a corporate shuttle service provider with numerous global tech leaders around the San Francisco Bay Area as their clientele. In late 2020, Customer wished to upgrade its fleet to offer a “mobile office” experience
Slide 14: How We are Different
plover bay technolo gies How We are Different cece ee
Slide 15: The right Mindset makes the difference
Technology is the foundation The right Mindset makes the difference Corporate mindset Our mindset Sales Build a sales organization Leverage global distribution channel Build relationships Build good products Rely on trade exhibits and marketing events (High CAC) Digital marketing & online training (
Slide 16: The Result Speaks for Itself
The Result Speaks for Itself Plover Bay vs Industry Average (2019 - 2021) Industry Average includes quarterly financial data as of 1Q2022 from Sierra Wireless, Digi International, Fortinet, Cisco, VMWare, HP Enterprise, Juniper Networks, Citrix, Palo Alto 16 Networks, Calamp, Inseego and Extreme Netw
Slide 17: Valuation Considerations
Valuation Considerations Market Cap Stock Price Revenue 3-yr EPS 3-yr P/S P/E Ticker Business segment (USD) (USD) CAGR CAGR (Trailing) (Trailing) HKD 3.2B / HKD 2.95 / 1523 HK Enterprise / Industrial USD 410M USD 0.38 21.0% 24.7% 5.6 19.5 DGII Industrial / Enterprise 937M 21.86 10.8% 45.7% 2.3 68.1
Slide 18: 2021 Financial Results
plover bay technolo gies 2021 Financial Results cece ee
Slide 19: Financial Summary
Financial Summary Year ended 31 December Financial period (US $'000) 2017 2018 2019 2020 2021 2021vs 2020 Revenue 37,132 41,806 45,910 52,818 74,128 +40% Gross Profit 22,975 26,189 28,774 30,800 43,155 +40% Operating Expense, Other Income & Finance cost (12,346) (13,976) (14,780) (14,758) (18,428) +2
Slide 20: Revenue by Product Segment
Revenue by Product Segment Product Segment/ Segment Revenue Growth (YoY) Financial Period Growth driver 2020 2021 (%) (US$’000) ● Ramp up of 5G ready products (about 10% of 2021 sales) Wired SD-WAN 9,152 12,463 +36% ● Strong growth in small and medium wired and wireless SD-WAN routers, reflecting Wir
Slide 21: Geographical Breakdown
Geographical Breakdown Geographic Segment/ Segment Revenue Growth (YoY) Financial Period Growth driver 2020 2021 (%) (US$’000) North America 29,563 43,087 +46% ● Broad based growth across most channel partners reflecting strong market demand EMEA 14,492 19,658 +36% ● Broad based growth across most ch
Slide 22: Recurring Revenue
Recurring Revenue Year ended 31 December Drivers of Recurring Revenue Recurring revenue (US$’000) ● New software features (eg. InTouch) to draw in more subscribers 2019 2020 2021 ● New revenue stream from SpeedFusion Connect services, in turn Recurring Sales 12,043 13,458 17,313 driven by installed
Slide 23: Lean Operating Structure
Lean Operating Structure Segment Gross Margin Net Margin vs. Opex/Sales Ratio ● Segment GPM stable increase YoY ● Continued operating leverage: In 2021, OPEX¹ increased 19% ● Overall GPM stayed flat due to product mix skewing towards vs Revenue increased 40% wireless SD-WAN routers 1. OPEX is the tot
Slide 24: Balance Sheet and Cash Flow Summaries
Balance Sheet and Cash Flow Summaries Balance Sheet Summary 2017 2018 2019 2020 2021 (US$"000) Trade and Other Receivables 9,476 6,413 8,245 9,199 13,692 Inventories 11,629 8,372 7,387 12,509 18,622 Trade and Other Payables 2,630 2,274 2,614 4,452 5,626 Contract Liabilities 6,221 8,672 8,891 10,881
Slide 25: Working Capital Summary
Working Capital Summary Working Capital summary 2017 2018 2019 2020 2021 (US$"000) Inventory 11,629 8,372 7,387 12,509 18,622 Raw Materials and 7,464 6,033 5,006 7,939 13,083 Consumables % of Inventory 64% 72% 68% 63% 70% Inventory: Finished Goods 4,165 2,339 2,381 4,570 5,539 ● For 2021, 183 days (
Slide 26: Revenue Recognition of Different Segments
Appendix Revenue Recognition of Different Segments Product Description Revenue Model Segment Non-recurring: 85%1 Wired & Wireless SD-WAN SD-WAN Routers and ● Hardware sales with 1 year embedded warranty Supporting Networking Devices Recurring: 15%1 Warranty and support ● Different tiers of subscript
Slide 27: Thank You
Thank You Disclaimer Plover Bay Technologies Limited is listed on the Hong Kong Stock Exchange (Ticker: 1523 HK). Plover Bay Technologies Limited is incorporated in the Cayman Islands with limited liability. The information contained in this presentation is intended solely for your personal referenc
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