Nera Telecommunications Ltd · SGX:N01
Nera Telecommunications — H1 2018 Earnings Presentation
15 slides from Nera Telecommunications's earnings presentation, Aug 8, 2018
Slide 1: 2Q/1H2018 Results Presentation
2Q/1H2018 RESULTS PRESENTATION Aug 08, 2018
Slide 2: Agenda
AGENDA • Financial Highlights • Recent Developments • Outlook & Strategies • Q&A 2
Slide 3: Financial Highlights
Nera Telecommunications Ltd 2Q/1H2018 Results Presentation FINANCIAL HIGHLIGHTS 3
Slide 4: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS Turnover Segmental Turnover Turnover by Geography (S$’m) (S$’m) (S$’m) 94.4 94.4 89.0 89.0 20.2 18.1 33.0 59.1 29.9 61.4 1.7 50.3 47.4 61.4 59.1 19.4 16.6 33.0 29.9 74.2 70.9 61.4 59.1 61.4 57.4 33.0 20.4 29.9 16.4 30.9 30.8 12.6 13.5 1H2017 1H2018 2Q2017 2Q2018 NI WIN 1H201
Slide 5: Order In-Take
ORDER IN-TAKE Order In-Take (S$’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$1.0m first contract awarded by key Malaysian Telco for design, supply, delivery, installation, maintenance and managem
Slide 6: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS Gross Profit Turnover (By Nature) Breakdown (By Nature) (S$’m) (S$’m) Equipment 1H2018 Services & 1H2017 1H2018 Maintenance 1H2017 36.2% 63.8% 23.1 23.0 28.9% 67.1 56.8 71.1% 11.7 12.4 27.3 32.2 1H2017 1H2018 2Q2017 2Q2018 Equipment Services & Maintenance • Despite lower tur
Slide 7: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS Profit Before Tax Net Profit (S$’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 $3.5 million in 2Q2017 with higher gross profit booked. Lower PBT
Slide 8: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS S$’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.
Slide 9: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS S$’m June 30, 2018 December 31, 2017 Current Assets 156.2 151.7 Current Liabilities 93.2 87.0 Net Current Assets 63.0 64.6 Total Assets 161.7 157.3 Total Liabilities 93.6 87.5 Total Borrowings 7.7 11.3 Cash and Bank Balances 19.6 20.7 Net Cash 11.9 9.4 9
Slide 10: Outlook & Strategies
Nera Telecommunications Ltd 2Q/1H2018 Results Presentation OUTLOOK & STRATEGIES 10
Slide 11: Turnkey Solutions
TURNKEY SOLUTIONS We are a global solution provider and we provide technological solutions to ease our customers’ pain points, help them transform, and grow their business IP Cloud/ Optical Data Service Providers Network Centre NeraTel Government/ Radios Turnkey Security Transport/Utilities Solution
Slide 12: Clear Positioning
CLEAR POSITIONING What Makes NeraTel Different What This Means For Customers 1 Global Footprint • Value Creation • Peace of Mind 2 4 decades of established track record • Complex solutions delivered accurately 3 One of region’s largest team of • Competitive certified professionals • Reliable 4 End-t
Slide 13: Outlook – Macro
OUTLOOK – MACRO 8 x 42 % Mobile Data Traffic Global mobile data Global mobile data traffic growth (2017-2023) traffic CAGR (2017-2023) >US$ 1T 7.8 % Cybersecurity Cybersecurity spending Cybersecurity spending (2017-2021) CAGR (2017-2021) Cloud Computing US$ 178B 22 % Cloud computing spending Cloud c
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: Thank You
THANK YOU 2Q/1H2018 RESULTS PRESENTATION
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