Hkbn Ltd. · HKEX:1310
Hkbn — FY2019 Earnings Presentation
40 slides from Hkbn's earnings presentation, Oct 24, 2019
Slide 1: HKBN Ltd.
HKBN Ltd. 1310 2019 8 31 2019 8 31 29% 45% 30% 51.08 17.09 7.50 45% 15 WTT Holding Corp WTT 2.30 2.32 15 WTT 12.47 6% 29% 69% 9% 7% 69% 23.24 2019 4 30 WTT WTT 17% 16.19 9% 24.73 ARPU 2018 176 5% 2019 185 36 2018 30 70 25% 2018 56 1
Slide 2: Acquisitions: Y5Zone, ICG, WTT, JOS
2013 Y5Zone 1 2016 2 2018 ICG 3 2019 WTT 4 2019 JOS 5 2015 20 50 ICT III Plus 2019 9 64 1.4% 29 45% 7 11% WTT 16 25% 5 8% Y5Zone 3 5% ICG 4 6% 64 100% III Plus 3% 2019 2021 2.53 3.03 2018 0.57 III Plus 2019 2021 2
Slide 3: III Plus and share price performance
220 6 3% III Plus II 700 III Plus 100 pain/GAIN pain/GAIN pain/ GAINpain pain/GAIN 330 JO S 200 - WTT - WTT +80.6% 180 MV NO 160 OT T 69.1% 140 120 +11.5% 100 80 60 2016 2017 2018 2019 2015 3 2019 10 FactSet 201 9 10 23 1 20153 12 100 2 3 3
Slide 4: JOS acquisition and prior acquisitions
JOS Mark Lunt JOS Eric Or JOS Stanley Chiu pain/GAIN 1. 2013 Y5Zone Limited Y5Zone 2. 2016 3 31 Concord Ideas Ltd. Simple Click Investments Limited 3. 2018 5 8 HKBN Enterprise Solutions Cloud Services Limited I Consulting Group Limited ICG 4. 2019 4 30 Metropolitan Light Company Limited MLCL WTT Hol
Slide 5: Financial results summary
1 2019 8 31 2018 8 31 5,107,637 3,948,952 +29% 2,472,707 2,278,241 +9% 2,324,329 1,379,183 +69% 310,601 291,528 +7% 214,527 396,897 -46% 1 2 538,175 575,423 -6% 1 3 1,709,348 1,179,588 +45% 1 4 33.5% 29.9% +3.6 1 5 750,170 578,499 +30% 1 2 214,527 396,897 -46% 283,776 129,627 >100% (45,599) (20,164)
Slide 6: Operating metrics and ARPU
2 2019 8 31 2018 8 31 2,360 2,297 +3% 878 860 +2% 500 500 -0% 6 35.8% 36.1% -0.3 21.9% 21.8% +0.1 7 0.9% 1.1% -0.2 ARPU8 185 176 +5% 277 265 +5% 133 137 -3% 144 128 +13% ARPU 11 148 147 +1% 12 312 321 -3% 1,019 1,017 +0% 7.2 2.4 >100% 116 57 >100% 454 140 >100% 6 36.5% 19.2% +17.3 25.3% 7.7% +17.6 1
Slide 7: Notes
(1) (2) (3) (4) (5) II (6) 2019 6 2016 1 2016 11 (7) 100% 7
Slide 8: ARPU definitions
(8) ARPU IDD ARPU ARPU ARPU (9) 100% (10) ARPU IDD 2019 8 31 ARPU WTT 2019 8 31 2019 8 31 WTT ARPU 2019 8 ARPU 2,356 (11) ARPU IDD ARPU ARPU ARPU (12) ARPU IDD ARPU ARPU ARPU (13) IDD 8
Slide 9: WTT, ICT and ARPU business review
2019 8 31 2019 4 30 WTT ICT ARPU WTT 29% 45% 30% 51.0817.09 7.50 2019 WTT 69% 23.24 WTT 17% 16.19 103,000 ARPU 1,510 1,742 WTT ICT 9% 24.73 ARPU 2019 8 31 50% ARPU 2018 176 5% 2019 185 2019 6 30 36% Over-the-top OTT OTT OTT 7% 3.11 47% 18.34 WTT 59% 15.45 OTT 31% 16.30 WTT 21.17 29% 27.35 WTT 126% 2
Slide 10: WTT integration and results
WTT 1.6% 21.30 1.17 121% 2.59 WTT 1.03 9,200 3% 9,500 9 2019 2018 15% 15% 3.97 46% 2.15 6% 5.38 2018 5,900 2019 1,200 30% 7.50 WTT 15 2.41 WTT JOS 2015 OTT WTT 2021 8 31 3.00 10
Slide 11: III Plus, WTT and financing
III PlusWTT ARPU 4 20% 2019 8 31 6.632018 8 31 3.73 97.12 2018 8 31 39.00 90.492018 8 3135.27 WTT 2019 6.70 52.32 2019 8 31 1.3 2018 8 313.8 4.2 2018 8 313.0 6.70 52.32 2019 8 31 2018 8 31 2019 8 31 2.00 2018 8 312.00 2019 8 31 2018 8 31 2020 5 29 1.8 26.35 2.26% 9 11
Slide 12: WTT acquisition terms
2019 8 31 2018 8 31 2019 8 31 800 2018 8 31 700 1983 7.80 1.00 2018 8 7 MLCL TPG Wireman, L.P. TPG Wireman Twin Holding Ltd Twin Holding MLCL TPG Wireman Twin Holding WTT Holding Corp 5,489,756,860 (i)3,548,819,204 (ii)1,940,937,656 WTT 2019 4 30 WTT (i) TPG Wireman Twin Holding 152,966,345 (ii) 1,9
Slide 13: JTH and JOS transaction
2019 8 23 JTH JTH Jardine OneSolution Holdings (C.I.) Limited Adura Hong Kong Limited Adura Cyber Security Services Pte Ltd 5,000 3.922Jardine Technology Holdings LimitedJTH MLCL JTH 2019 8 23 2019 8 31 2019 8 31 4,1312018 8 312,981 14 2015 2 212017 12 15 2019 8 19 II III III Plus II II 2015 2 21 7
Slide 14: Share option and award schemes
II (i) 2015 3 12 10% (ii) 10% II II II II 5,666,666 0.56% II 2019 8 31 330 7% II 2019 8 31 1 24 1 30 2 26 7 20 2019 8 31 2018 2019 9 1 8 31 2020 2021 2022 2015 11 20 158,567 3,239 – – 3,239 – – – – 2016 6 20 194,556 97,278 – – 97,278 – – – – 2016 6 20 134,241 67,121 – – 67,121 – – – – 2016 6 20 1,75
Slide 15: III Plus scheme
III 2017 12 15 III III 2017 11 2 2017 11 16 (i) WTT WTT (ii) 2019 6 21 III III III Plus III Plus III Plus 2019 8 19 III III Plus 2019 2020 2021 2019 2020 2021 2.53 2019 2020 2021 3.03 1.33 2021 2021 3.03 III Plus CSI III Plus 4,000,000 III Plus 4,000,000 5,320,000 15
Slide 16: III Plus share awards
III Plus 2019 6 21 2019 7 29 2019 8 31 1,000 III Plus 24% III Plus 2019 12 12 20192019 2019 12 23 2019 8 31 36 2019 2020 1 6 90% 100% WTT WTT WTT 60,235,996 2019 8 31 36 167,322,212 2020 1 6 2019 2019 2019 12 9 2019 12 12 2019 2019 12 6 4 30 183 17 1712 1716 2019 12 19 2019 12 23 2019 12 18 4 30 183
Slide 17: A.5.1
2019 8 31 2019 8 31 2019 8 31 2019 8 31 2019 8 31 2019 8 31 14 A.5.1 17
Slide 18: Board and publication notice
10 2019 8 31 (www.hkexnews.hk) (www.hkbnltd.net) 2019 8 31 Bradley Jay HORWITZ 2019 10 24 Bradley Jay HORWITZ SBS JP Deborah Keiko ORIDA Zubin Jamshed IRANI 18
Slide 19: Consolidated income statement
2019 8 31 2019 2018 8 31 8 31 4 5,107,637 3,948,952 5(a) 29,926 22,315 (1,834,054) (1,247,031) 5(b) (2,734,600) (2,116,987) 5(d) (259,271) (117,288) (276) (693) 5 309,362 489,268 6 (94,835) (92,371) 214,527 396,897 7 19.4 39.6 7 18.4 39.6 2018 9 1 15 9 2.1 19
Slide 20: Consolidated statement of comprehensive income
2019 8 31 2019 2018 8 31 8 31 214,527 396,897 (6,198) (4,718) 208,329 392,179 2018 9 1 15 9 2.1 20
Slide 21: Consolidated statement of financial position (assets)
2019 8 31 2019 2018 8 31 8 31 8,788,319 1,801,393 4,638,643 1,453,588 4,341,590 2,293,950 222,041 – 598,030 – 4,740 – 9,429 8,095 32,105 64,950 18,634,897 5,621,976 29,168 32,704 9 557,439 247,210 240,894 292,646 241,717 – 15,093 8,544 662,816 373,293 1,747,127 954,397 10 365,976 138,918 907,317 461
Slide 22: Consolidated statement of financial position (equity and liabilities)
2019 8 31 2019 2018 8 31 8 31 143,600 201,266 187,690 – – 79,371 15,795 24,819 1,131,440 408,218 28,278 28,236 50,146 15,643 4,454,253 3,873,716 5,169,137 – 11,180,339 4,631,269 7,456,561 1,036,912 11(a) 132 101 7,456,429 1,036,811 7,456,561 1,036,912 2018 9 1 15 9 2.1 2.2 2018 8 31 22
Slide 23: Notes: basis of preparation
1 2019 8 31 2.1 9 15 22 15 9 15 9 2.1(a) 2.1(b) (a) 15 15 15 18 11 15 23
Slide 24: Note 2.1 accounting policies
2.1 (a) 15 2018 9 1 11 18 15 2018 9 1 2018 9 1 15 433,755 (65,499) 2018 9 1 368,256 a. 15 15 15 2018 9 1 24
Slide 25: Note 2.1 (a) continued
2.1 (a) 15 b. (i) (ii) 15 2018 9 1 433,755,000 65,499,000 368,256,000 c. 15 15 2018 9 1 (i) 150,949,000 (ii) 98,653,000 (iii) 79,371,000 25
Slide 26: Note 2.1 (b)
2.1 (b) 9 9 39 2018 9 1 9 2018 9 1 39 (i) 9 39 9 9 9 15 2.1(a) (i) 150,949,000 2018 9 1 (ii) 178,024,000 2018 9 1 2018 9 1 9 2018 9 1 (ii) 9 39 39 15 2.1(a) (iii) 9 2018 8 31 39 26
Slide 27: Note 2.2 ICG restatement
2.2 2018 8 31 I Consulting Group Limited ICG ICG 2019 8 31 ICG 2018 8 31 2018 8 31 2017 9 1 2017 9 1 2018 8 31 5,626,776 (4,800) 5,621,976 954,397 – 954,397 (915,318) 7,126 (908,192) (4,628,943) (2,326) (4,631,269) 1,036,912 – 1,036,912 2018 8 31 1,804,904 (3,511) 1,801,393 1,454,877 (1,289) 1,453,5
Slide 28: Revenue by segment
3 8 4 (i) 2019 2018 8 31 8 31 3,535,948 2,823,270 633,176 413,200 627,912 420,954 4,797,036 3,657,424 310,601 291,528 5,107,637 3,948,952 28
Slide 29: Revenue by customer and timing
4 (i) 2019 2018 8 31 8 31 2,472,707 2,278,241 2,324,329 1,379,183 310,601 291,528 5,107,637 3,948,952 10% 2019 2018 8 31 (ii) 2019 8 31 2,999,416,000 12 180 15 121 29
Slide 30: Other income and expenses
5 2019 2018 8 31 8 31 (a) (4,083) (1,641) (3,484) 105 (9,024) (9,024) 1,542 437 (14,877) (12,192) (29,926) (22,315) (b) 373,137 605,149 240,793 – 534,758 425,258 119 (203) 52,759 39,693 5(c) 693,104 489,816 276,355 122,207 75,608 1,757 9,863 18,031 478,104 415,279 2,734,600 2,116,987 (c) 1,137,395 8
Slide 31: Expense details
5 2019 2018 8 31 8 31 (d) 134,909 119,711 103,424 – 8,850 6,833 12,088 (58,531) – 49,275 259,271 117,288 (e) 347,962 172,576 92,783 60,436 343,699 264,681 5,665 2,975 635 325 210 190 3,850 4,620 28,076 25,045 288,782 272,946 31
Slide 32: Income tax and earnings per share
6 2019 2018 8 31 8 31 146,864 104,960 (51) (29) 5,812 5,060 (57,790) (17,620) 94,835 92,371 2019 16.5% 201816.5% 25% 201825% 7 (a) 214,527,000 2018 396,897,000 II 1,106,828,0002018 1,002,116,000 2019 2018 8 31 8 31 9 1 1,005,666 1,005,666 II (5,666) (5,666) II 3,733 2,116 11(a) 103,095 – II 1,106,82
Slide 33: Business combination: WTT
8. a. 2019 8 31 2018 8 7 MLCL TPG Wireman Twin Holding WTT Holding Corp 100% WTT WTT (i) 305,932,690 (ii) 1,940,937,656 WTT 20WTT 2019 4 30 (a) 4,295,295 (b) 2,349,204 6,644,499 342,427 WTT 6,986,926 (a) WTT 14.04 (b) 11.60 WTT 167,322,212 WTT 14.04 WTT 33
Slide 34: WTT acquired assets and liabilities
8. a. 2019 8 31 WTT 2019 4 30 WTT 3,533,017 1,834,490 173,166 23,668 9,425 306,675 88,625 70,571 355,172 (75,890) (494,994) (136,528) (2,703) (13,835) (99,192) (714,499) (36,402) (5,163,193) (342,427) 6,986,926 6,644,499 – (355,172) 2019 8 31 WTT (355,172) 75,608,000 16,181,000 2019 2018 8 31 708,41
Slide 35: Business combination: ICG
8. b. 2018 8 31 2018 5 30 I Consulting Group Limited ICG ICG ICG 10,000,000 ICG 200,000,000 29,649,000 2018 28,236,000 ICG 2018 8 31 2019 8 31 ICG ICG 13,457 235 3,536 2,173 222 499 (3,649) (2,649) (2,792) (2,220) 8,812 29,424 38,236 10,000 28,236 38,236 10,000 (499) 2018 8 31 9,501 35
Slide 36: ICG fair value adjustments
8. b. 2018 8 31 2018 8 31 32,935 29,424 (3,511) 14,746 13,457 (1,289) (2,433) (2,220) 213 (32,823) (28,236) 4,587 2018 8 31 ICG ICG 10,518,000 3,229,000 ICG 2018 8 31 ICG 2017 9 1 ICG 2017 9 1 36
Slide 37: Note 8c
8. c. 2019 8 31 2018 9 26 329,219,000 329,219 329,295 439 631 (132) (1,014) 329,219 329,219 2018 8 31 (32,829) 2019 8 31 296,390 37
Slide 38: Trade and other payables ageing
9 2019 2018 8 31 8 31 30 217,558 117,261 31 60 113,655 52,844 61 90 59,638 25,968 90 166,588 51,137 557,439 247,210 30 10 2019 2018 8 31 8 31 30 124,247 46,123 31 60 46,783 9,786 61 90 35,734 31,038 90 159,212 51,971 365,976 138,918 38
Slide 39: Share capital
11 (a) 2017 9 12018 8 312018 9 1 2019 8 31 3,800,000,000 380 2017 9 12018 8 312018 9 1 1,005,666,000 101 305,933,000 31 2019 8 31 1,311,599,000 132 2019 4 30 WTT 100% 305,932,690 0.0001 2019 4 30 4,295,295,000 (b) (i) 2019 2018 8 31 8 31 34 2018 26 445,944 261,473 36 2018 30 472,176 301,700 918,120
Slide 40: JTH subsequent event
12 2019 8 23 JTH (BVI) Limited JTH JTH 50,000,000 393,500,000Jardine Technology Holdings LimitedJTH MLCL JTH 2019 9 16 MLCL 2022 10% 103% 603,000,000 4,745,610,000 2019 9 25 1,000,000,000 40