Nera Telecommunications Ltd · SGX:N01
Nera Telecommunications — Q3 2018 Earnings Presentation
16 slides from Nera Telecommunications's earnings presentation, Nov 9, 2018
Slide 1: 3Q/9M2018 Results Presentation
3Q/9M2018 RESULTS PRESENTATION November 9, 2018
Slide 2: Agenda
AGENDA • Financial Highlights • Recent Developments • Outlook & Strategies • Q&A 2
Slide 3: Financial Highlights
Nera Telecommunications Ltd 3Q/9M2018 Results Presentation FINANCIAL HIGHLIGHTS 3
Slide 4: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS Turnover Turnover by Geography (S$’m) (S$’m) 136.6 136.6 121.1 121.1 30.3 50.4 80.8 22.2 40.3 86.2 2.2 50.4 42.2 40.3 106.3 98.9 86.2 32.1 86.2 78.6 80.8 30.5 17.4 20.0 10.4 24.8 21.7 19.9 20.3 9M2017 9M2018 3Q2017 3Q2018 9M2017 9M2018 9M2017 9M2018 9M2017 9M2018 NI WIN TOTA
Slide 5: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS Gross Profit Turnover (By Nature) Breakdown (By Nature) (S$’m) (S$’m) Equipment Services & 26.8 28.5 29.6 Maintenance 25.7 9M2017 9M2018 9M2018 9M2017 37.7% 94.0 62.3% 35.1 32.5 75.4 31.2% 42.6 45.7 12.0 9.5 68.8% 9M2017 9M2018 3Q2017 3Q2018 Equipment Services & Maintenance
Slide 6: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS Profit Before Tax (S$’m) • 3Q2018 profit before tax (“PBT”) decreased 24.3% to S$2.3 million while 9M2018 PBT decreased 15.7% to S$8.5 million due mainly to lower gross profit, partially offset by lower operating 10.0 expenses 8.5 3.0 2.3 • 3Q2018 net profit slid 25.4% to S$
Slide 7: Order In-Take
ORDER IN-TAKE Order In-Take Recent Contracts (S$’m) Feb 2018: S$2.2m IP network equipment contract (NI) for major 168.7 Telco in Singapore – repeat Grade-A customer 143.2 Feb 2018: S$1.0m first contract awarded by key Malaysian Telco for 59.8 35.4% 37.6 26.3% design, supply, delivery, installation,
Slide 8: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS S$’m 3Q2018 3Q2017 Change (%) 9M2018 9M2017 Change (%) Turnover 32.1 42.2 (24.0) 121.1 136.6 (11.3) Gross Profit 9.5 12.0 (21.2) 32.5 35.1 (7.4) Gross Profit Margin (%) 29.6 28.5 1.1 ppt 26.8 25.7 1.1 ppt Total Operating Expenses 7.2 9.1 (20.9) 24.2 25.6 (5.5) Net Profit Aft
Slide 9: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS S$’m September 30, 2018 December 31, 2017 Current Assets 141.7 151.6 Current Liabilities 81.6 87.0 Net Current Assets 60.1 64.6 Total Assets 147.5 157.3 Total Liabilities 82.0 87.5 Total Borrowings 6.4 11.3 Cash and Bank Balances 17.9 20.7 Net Cash 11.5 9.4 9
Slide 10: Outlook & Strategies
Nera Telecommunications Ltd 3Q/9M2018 Results Presentation OUTLOOK & STRATEGIES 10
Slide 11: Turnkey Solutions
TURNKEY SOLUTIONS We are a global solution provider and we provide technological solutions to ease our customers’ pain points, help them transform, and grow their business IP Cloud/ Optical Data Service Providers Network Centre NeraTel Government/ Radios Turnkey Security Transport/Utilities Solution
Slide 12: Clear Positioning
CLEAR POSITIONING What Makes NeraTel Different What This Means For Customers 1 Global Footprint • Value Creation • Peace of Mind 2 4 decades of established track record • Complex solutions delivered 3 One of region’s largest team of accurately certified professionals • Competitive 4 End-to-end capab
Slide 13: Outlook – Macro
OUTLOOK – MACRO 8 x 39 % Mobile Data Traffic Global mobile data Global mobile data traffic growth (2017-2023) traffic CAGR (2017-2023) >US$ 124B 12.4 % Cybersecurity Cybersecurity spending Cybersecurity spending YoY growth (2019F) (2018 vs 2019F) Cloud Computing US$ 62.2B 31.1 % Cloud computing spen
Slide 14: Key Growth Strategies
KEY GROWTH STRATEGIES • Reap synergies from complementary businesses to offer turnkey solutions to clients • Grow recurring Service & Maintenance revenue stream for sustainable long-term growth NETWORK WIRELESS INFRASTRUCTURE INFRASTRUCTURE NETWORK • Network Security • Capitalise on proliferation of
Slide 15: Key Strategic Initiatives
KEY STRATEGIC INITIATIVES Leverage on USPs to grow adjacent business (vertical- integration) Drive organic Expand growth; Explore geographical inorganic reach growth Forward Strategies Drive sales to Grow Solutions grow order in- & Services take revenue Enhance shareholder value 15
Slide 16: Thank You
THANK YOU 3Q/9M2018 RESULTS PRESENTATION
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