Plover Bay Technologies Ltd. · HKEX:1523
Plover Bay Technologies — H1 2022 Earnings Presentation
29 slides from Plover Bay Technologies's earnings presentation, 2022
Slide 1: We Make Connectivity Reliable
We Make Connectivity Reliable Interim Results 2022
Slide 2: 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 for all kinds of connectivity needs. ● Revenue (2021): US$74M ● Net profit (2021): US$21M E
Slide 3: What is Connectivity?
Expectation ● Connectivity should be simple ● Connectivity should always work ● Connectivity should be cost effective ● Connectivity should be there when needed What is Connectivity? Reality ● Existing solutions overcomplicate ● Fixed Lines cannot reach everywhere ● Mobile is not 100% reliable ● You
Slide 4: Solid Track Record
Solid Track Record Net Profit and Dividend Growth Through Uncertainties Revenue 1 5 year CAGR: 21% Net Profit 1 5 year CAGR: 32% 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 shorta
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 / Work-from-anywhere ● IoT and new kinds of applications ● Number of IoT connections increasing at 19% CAGR¹ ● Mobile data traffic
Slide 6: What We Do: Four levels of use cases
What We Do Four levels of use cases ● Mission critical connectivity (e.g. first responders, large enterprise, industrial) ● Essential connectivity (e.g. enterprise, industrial) ● Better connectivity (e.g. small businesses and home offices) ● Wireless connectivity (e.g. remote locations, temporary locat
Slide 7: What We Provide
What We Provide A hardware / software integrated Ecosystem ● 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 - Combi
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 Fixed networks are prone to last-mile problems We break the loop with fixed + mobile networking ● Single provider in some locations ● Proven reliability using multiple LTE / 5G as additional ●
Slide 9: 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 We offer choices with a diverse portfolio of LTE/5G routers ● Vehicles, Ships, Remote locations, temporary events ● Multiple product series purpose-designe
Slide 10: 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 ● Groun
Slide 11: Recent Customer References
Recent Customer References Fast-food Chain Bank ATMs Household fast-food chain in Taiwan rapidly deploys always-on connectivity for Canadian multinational bank ensures 24/7 ATM services with always-on digital ordering kiosks, POS systems and in-store cameras. connectivity that can be managed and tro
Slide 12: Recent Customer References
Recent Customer References Agriculture Logistics An agricultural corporation in the U.S uses wireless connectivity and a mobility Global logistics company with 200 sites worldwide refreshes its network antenna on tractors to transmit live sensor data right from the field to its IoT server, infrastruc
Slide 13: Recent Customer References
Recent Customer References Factory automation Yacht A luxury car brand upgrades its manufacturing sites in the US with mobile World leading luxury yacht dealer provides a fast and reliable connectivity that can connectivity, allowing it to expand its operations to anywhere with ease. It also seamles
Slide 14: Case Study Highlight: Network as a Service
Case Study Highlight Pilot for New Business Model: Network as a Service Background Customer was a corporate shuttle service provider with numerous global tech leaders in the San Francisco Bay Area as their clientele. In late 2020, Customer wished to upgrade its fleet to offer a “mobile office” experien
Slide 15: Case Study Highlight: Bonding Two Starlinks together
Case Study Highlight Bonding Two Starlinks together Background The maritime user used Starlink on a marine vessel for remote work. In remote places, while the Starlink connection is reliable, the user frequently encountered microstutters, packet loss and disconnection during conference calls. To fix
Slide 16: How We are Different
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Slide 17: Where do we stand?
Competitive landscape Where do we stand? Key differentiation ● Bonding of multiple WANs ● On-demand data service (SpeedFusion) (SpeedFusion Connect) ● Diverse range of products ● Zero-touch SIM management (FusionSIM) ● Lower total cost of ownership ● Friendly subscription model w/ no lock-in Plover
Slide 18: The Difference is in the Mindset
How are we different from other competitors? The Difference is in the Mindset Corporate mindset Our mindset Sales Build a sales organization (high fixed cost) Leverage global distribution channel (no fixed cost) Build relationships Focus on designing good products Trade exhibits and marketing events (
Slide 19: 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 19 Networks, Calamp, Inseego and Extreme Netw
Slide 20: 2022 Interim Results
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Slide 21: Financial Summary
Financial Summary Interim period Financial period (US $'000) 1H21 2H21 1H22 Growth (YoY) Revenue 32,751 41,377 40,114 +22% Gross Profit 19,645 23,510 22,345 +14% Operating Expense, Other Income & Finance cost (8,603) (9,825) (10,062) +17% Profit before Tax 11,042 13,685 12,283 +11% Net Profit 9,292 11,
Slide 22: Revenue by Product Segment
Revenue by Product Segment Product Segment/ Segment Revenue Growth (YoY) Financial Period Growth drivers 1H21 1H22 (%) (US$’000) ● Taiwan partial COVID-19 shutdowns in April and May delayed the launch of a key product Wired SD-WAN 5,946 6,562 +10% (new BR1 Mini) towards mid-late June, majority of or
Slide 23: Recurring Revenue
Recurring Revenue YoY Drivers of Recurring Revenue Period ended Recurring revenue Growth ● Deferred revenue growth reflecting strong router sales in past 12 months (US$’000) 1H21 2H21 1H22 % ● New software features (eg. InTouch) to draw in more subscribers ● Total number of subscriptions at 30 June 2
Slide 24: Geographical Breakdown
Geographical Breakdown Geographic Segment/ Segment Revenue Growth (YoY) Financial Period Growth driver 1H21 1H22 (%) (US$’000) ● Broad based growth across channel partners and vertical markets North America 18,106 23,638 +31% ● Continued strong growth in online ecommerce channel ● Strong growth amon
Slide 25: Lean Operating Structure
Lean Operating Structure Segment Gross Margin Net Margin vs. Opex/Sales Ratio ● Overall GPM decreased vs 2021 levels as product mix skews ● US$1.0M foreign exchange translation loss, net was recorded toward lower-margin & volume-driven products in general & admin expenses ● Pricing for certain produ
Slide 26: Balance Sheet and Cash Flow Summaries
Balance Sheet and Cash Flow Summaries Balance Sheet Summary Dec Dec Dec Dec Dec Jun (US$"000) 2017 2018 2019 2020 2021 2022 Trade and Other Receivables 9,476 6,413 8,245 9,199 13,692 13,308 Inventories 11,629 8,372 7,387 12,509 18,622 27,131 Trade and Other Payables 2,630 2,274 2,614 4,453 5,625 5,6
Slide 27: Working Capital Summary
Working Capital Summary Working Capital summary 2017 2018 2019 2020 2021 1H22 (US$"000) Inventories 11,629 8,372 7,387 12,509 18,622 27,131 Inventory: Raw Materials and As at 1H22, 235 days (2021: 183 7,464 6,033 5,006 7,939 13,083 19,180 ● Consumables days) % of Inventories 64% 72% 68% 63% 70% 71%
Slide 28: 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 29: 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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