Slide 1: Annual Results 2009 Corporation Presentation
Annual Results 2009 Corporation Presentation V.01
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Comba Telecom Systems Holdings Limited (the “Company’) for reference only. The information contained in this presentation has not been independently verified. The Company does not make any representation, warranty or undertaking, whether express or i
Slide 3: Agenda
Agenda Financial Overview Business Overview Financial Highlights Financial Review Customer Review Business Review Market Outlook 3
Slide 4: Financial Overview
Financial Overview For the year ended 31 December 2009 Revenue 75.8% Gross profit margin 0.4% points Operating profit margin 6.4% points Net profit margin 3.7% points Return on average equity 12.6% points Positive operating cashflow: HK$485M (2009) v. HK$215M (2008) 4
Slide 5: Business Overview
Business Overview For the year ended 31 December 2009 Strong revenue growth from all customers 1. China Mobile 31.4% 2. China Unicom 248.3% 3. China Telecom 189.0% 4. International Customers & Core Equipment Manufacturers 32.8% Strong revenue growth from all product segments 1. Wireless Access (DMS
Slide 6: Financial Highlights
Financial Highlights Financial Results Dividend and Bonus Share Financial Position Key Financial Indicators
Slide 7: Financial Results
Financial Results For the year ended 31 December HK$’000 2009 2008 Change Revenue 4,439,991 2,525,895 + 75.8% Gross profit 1,681,923 946,034 + 77.8% Gross profit margin 37.9% 37.5% + 0.4% pts Operating profit 765,331 273,387 + 179.9% Operating profit margin 17.2% 10.8% + 6.4% pts Tax 142,291 27,493
Slide 8: Dividend and Bonus Share
Dividend and Bonus Share For the year ended 31 December 2009 2008 Change Paid interim dividend per share (HK cents) 6.0 - N/A Proposed final dividend per share (HK cents) 8.0 7.0 +14.3% Proposed special dividend per share (HK cents) 4.0 - N/A Total dividends (HK cents) 18.0 7.0 +157.1% Issued bonus
Slide 9: Financial Position
Financial Position As at 31 December HK$’000 2009 2008 Change Net cash 706,780 416,922 +69.5% Net current assets 2,337,037 1,501,532 +55.6% Total assets 5,725,107 3,452,397 +65.8% Total liabilities 3,131,992 1,463,390 +114.0% Net assets 2,536,342 1,974,539 +28.5% NAV per share (HK$) 2.38 1.93 (resta
Slide 10: Key Financial Indicators
Key Financial Indicators For the year ended 31 December 2009 2008 Change Inventory turnover days 176 209 (33) A/R turnover days 139 171 (32) A/P turnover days 179 170 +9 Gross gearing ratio 7.7% 1.5% +6.2% pts Dividend payout ratio * 33% 26% +7% pts Return on average equity 25% 12.4% +12.6% pts * Ca
Slide 11: Financial Review
Financial Review Revenue Breakdown by Customers Revenue Breakdown by Businesses Profit & Margin Cost Structure
Slide 12: Revenue Breakdown by Customers
Revenue Breakdown by Customers For the year ended 31 December 2009 China Unicom 248.3% 27.5% China Mobile China Telecom 41.9% 31.4% 189.0% 8.1% International Customers & Others Core Equipment Manufacturers 14.5% 8.0% 134.6% 32.8% = YOY change Strong Growth in PRC Customers 12
Slide 13: Revenue Breakdown by Businesses
Revenue Breakdown by Businesses For the year ended 31 December 2009 Wireless Enhancement 31.0% 37.7% Services 26.4% 113.1% Antennas & Subsystems 32.1% Wireless Access (DMS & WLAN) 10.5% 68.9% 252.3% = YOY change Remarkable Growth in Wireless Access (DMS & WLAN) Strong Growth in Services 13
Slide 14: Profit & Margin
Profit & Margin For the year ended 31 December Gross Profit 77.8% Net Profit 148.1% (HK$M) (HK$M) 600 564.5 2,000 1,681.9 500 1,600 400 1,200 946.0 300 227.5 800 681.3 191.6 12.7% 200 38.5% 37.9% 10.8% 9.0% 37.5% 400 100 0 0 2007 2008 2009 2007 2008 2009 Gross Profit Margin Net Profit Margin Stable
Slide 15: Cost Structure
Cost Structure For the year ended 31 December As % of Total Revenue = YOY change R & D costs 26.3% 30% R&D efforts for strategic products 5.2% 25% Selling and distribution costs 26.0% 3.8% Increased expansion for more customers 20% 7.4% 5.3% Administrative expenses 47.0% 15% Increased administrative
Slide 16: Customer Review
Customer Review Global Customer Base China Business International Customers & Core Equipment Manufacturers
Slide 17: Global Customer Base
Global Customer Base China Core Equipment Vendor EMEA APAC Americas 1717
Slide 18: China Business
China Business Review & Opportunities: Huge growth of 86% to HK$3.8 billion 3G network CapEx and strong 2G demand boosted earnings: 3G network buildouts Network enhancement projects in urban areas 2G network enhancement and extension projects in rural areas and transport networks Continue to leverag
Slide 19: International Customers & Core Equipment Manufacturers
International Customers & Core Equipment Manufacturers Review & Opportunities: Sales to international customers and core equipment manufacturers increased by 33% to HK$643 million International market acceptance of Comba solutions Implementation of a number of large indoor solution projects in Ameri
Slide 20: Business Review
Business Review Wireless Enhancement Antennas & Indoor Subsystems Wireless Access (DMS and WLAN) Services Outdoor
Slide 21: Solutions for all Network Stages
Solutions for all Network Stages In-building Coverage Scenic Areas Stadium/Large Venues (Camouflaged Solutions) Wireless Backhaul (Digital Microwave Solutions) Base Station Solutions Rural Area Coverage Subways & Tunnels Urban Area Coverage 21
Slide 22: Solutions for all Network Stages
Solutions for all Network Stages In-Building Solutions Wireless LAN In-building Coverage Scenic Areas Stadium/Large Venues BTS Antennas (Camouflaged Solutions) Tower Mounted Solutions Network Optimization Solutions etc.. Outdoor Wireless Enhancement Installation commissioning etc. Wireless Backhaul
Slide 23: Wireless Enhancement
Wireless Enhancement INDOOR INDOOR INDOOR OUTDOOR Small Medium Large Venue SOLUTIONS Venue Sized Venue •Optical Repeater Passive •Solar Power Repeater Hybrid Passive / Active •Dynamic Traffic Hybrid Fiber / Multi-Operator / Routing Coax Network RF Repeater Frequency Review & Opportunities: Shifting
Slide 24: Antennas & Subsystems
Antennas & Subsystems Antennas Tower-Top Solutions RF Front Ends Review & Opportunities: Increased 69% to HK$1.4 billion Revenue (HK$’000) 1,424,875 Converting recognition from 1st tier operators to solid revenue Y/Y: opportunities 843,385 +69% Volume orders of 3G antennas in China for network rollo
Slide 25: Wireless Access (DMS and WLAN)
Wireless Access (DMS and WLAN) Review & Opportunities: Remarkable growth of 252% to HK$466 million Revenue Portfolio offering expansion fuelling growth: (HK$’000) 466,050 Wireless LAN solutions IP backhaul solutions for future requirements Y/Y: +252% Cost-effective solutions developed including coup
Slide 26: Services
Services Review & Opportunities: Increase 113% to HK$1.2 billion Revenue Services include maintenance, consultation, commissioning, (HK$’000) 1,171,264 network optimization and project management Recurring maintenance contracts from existing customers Y/Y: 549,611 +113% Successful expansion in both
Slide 27: Market Outlook
Market Outlook Global Outlook
Slide 28: Global Outlook
Global Outlook Eastern Europe 2G & 3G Plays North America China 700Mhz / LTE / Western Europe AWS 2G & 3G 3G enhancement Rural Networks LTE APAC India 2G & 3G Plays 2G/3G New buildouts LTE (certain markets) Rural Networks ME & Africa New buildouts/ CALA enhancements 3G growth GLOBAL WIRELESS CAPEX C
Slide 29: Open Forum
Open Forum