Nera Telecommunications Ltd · SGX:N01

Nera Telecommunications — H1 2018 Earnings Presentation

15 slides from Nera Telecommunications's earnings presentation, Aug 8, 2018

  1. Slide 1: 2Q/1H2018 Results Presentation

    2Q/1H2018 RESULTS PRESENTATION Aug 08, 2018

  2. Slide 2: Agenda

    AGENDA • Financial Highlights • Recent Developments • Outlook & Strategies • Q&A 2

  3. Slide 3: Financial Highlights

    Nera Telecommunications Ltd 2Q/1H2018 Results Presentation FINANCIAL HIGHLIGHTS 3

  4. Slide 4: Key Financial Highlights

    KEY FINANCIAL HIGHLIGHTS Turnover Segmental Turnover Turnover by Geography (S$’m) (S$’m) (S$’m) 94.4 94.4 89.0 89.0 20.2 18.1 33.0 59.1 29.9 61.4 1.7 50.3 47.4 61.4 59.1 19.4 16.6 33.0 29.9 74.2 70.9 61.4 59.1 61.4 57.4 33.0 20.4 29.9 16.4 30.9 30.8 12.6 13.5 1H2017 1H2018 2Q2017 2Q2018 NI WIN 1H201

  5. Slide 5: Order In-Take

    ORDER IN-TAKE Order In-Take (S$’m) Recent Contracts Feb 2018: S$2.2m IP network equipment contract (NI) for major Telco in Singapore – repeat Grade-A customer 122.2 97.9 Feb 2018: S$1.0m first contract awarded by key Malaysian Telco for design, supply, delivery, installation, maintenance and managem

  6. Slide 6: Key Financial Highlights

    KEY FINANCIAL HIGHLIGHTS Gross Profit Turnover (By Nature) Breakdown (By Nature) (S$’m) (S$’m) Equipment 1H2018 Services & 1H2017 1H2018 Maintenance 1H2017 36.2% 63.8% 23.1 23.0 28.9% 67.1 56.8 71.1% 11.7 12.4 27.3 32.2 1H2017 1H2018 2Q2017 2Q2018 Equipment Services & Maintenance • Despite lower tur

  7. Slide 7: Key Financial Highlights

    KEY FINANCIAL HIGHLIGHTS Profit Before Tax Net Profit (S$’m) (S$’m) 7.0 4.9 6.2 4.3 3.5 4.0 3.1 1.4 1H2017 1H2018 2Q2017 2Q2018 1H2017 1H2018 2Q2017 2Q2018 • Profit before tax (“PBT”) growth 13.7% in 2Q2018 to $4.0 million compared to $3.5 million in 2Q2017 with higher gross profit booked. Lower PBT

  8. Slide 8: Key Financial Highlights

    KEY FINANCIAL HIGHLIGHTS S$’m 2Q2018 2Q2017 Change (%) 1H2018 1H2017 Change (%) Turnover 47.4 50.3 (5.6) 89.0 94.4 (5.7) Gross Profit 12.4 11.7 5.4 23.0 23.1 (0.3) Gross Profit Margin (%) 26.1 23.4 2.7 pt 25.8 24.4 1.4 pt Total Operating Expenses 8.5 8.4 1.2 17.0 16.5 3.0 Net Profit After Tax 3.1 1.

  9. Slide 9: Key Financial Highlights

    KEY FINANCIAL HIGHLIGHTS S$’m June 30, 2018 December 31, 2017 Current Assets 156.2 151.7 Current Liabilities 93.2 87.0 Net Current Assets 63.0 64.6 Total Assets 161.7 157.3 Total Liabilities 93.6 87.5 Total Borrowings 7.7 11.3 Cash and Bank Balances 19.6 20.7 Net Cash 11.9 9.4 9

  10. Slide 10: Outlook & Strategies

    Nera Telecommunications Ltd 2Q/1H2018 Results Presentation OUTLOOK & STRATEGIES 10

  11. 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

  12. 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 accurately 3 One of region’s largest team of • Competitive certified professionals • Reliable 4 End-t

  13. Slide 13: Outlook – Macro

    OUTLOOK – MACRO 8 x 42 % Mobile Data Traffic Global mobile data Global mobile data traffic growth (2017-2023) traffic CAGR (2017-2023) >US$ 1T 7.8 % Cybersecurity Cybersecurity spending Cybersecurity spending (2017-2021) CAGR (2017-2021) Cloud Computing US$ 178B 22 % Cloud computing spending Cloud c

  14. 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

  15. Slide 15: Thank You

    THANK YOU 2Q/1H2018 RESULTS PRESENTATION

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