Nera Telecommunications Ltd · SGX:N01
Nera Telecommunications — H1 2019 Earnings Presentation
14 slides from Nera Telecommunications's earnings presentation, Aug 14, 2019
Slide 1: Q2/1H 2019 Results Presentation
Q2/1H 2019 RESULTS PRESENTATION 14 August 2019
Slide 2: Financial Highlights
FINANCIAL HIGHLIGHTS 2 NERA
Slide 3: Key Financial Highlights: Revenue
KEY FINANCIAL HIGHLIGHTS Revenue Revenue Contribution By Customer Segment Wireless Infrastructure Network (WIN) (S$’m) Network Infrastructure (NI) 1H 2019 89.0 1H 2018 70.2 15.1% 30.0 21.3 13.4% 12.0% 47.4 15.1% 72.9% 16.6 33.3 71.5% 59.0 9.7 48.9 30.8 23.6 Service Provider GTU Enterprise 1H 2018 1H
Slide 4: Key Financial Highlights: Total Order In-Take
KEY FINANCIAL HIGHLIGHTS Total Order In-Take Total Order In-Take By Customer Segment NI (S$’m) WIN 1H 2019 97.9 1H 2018 11.2% 78.3 29.2% 28.6 27.1% 11.2% 21.2 47.1 35.7% 53.1% 16.9% 40.5 71.9% 70.8% 72.9% 30.0% 14.2 69.3 31.6% 12.8 57.1 70.0% 33.1 68.4% 27.7 Service Provider GTU Enterprise 1H 2018 1
Slide 5: Key Financial Highlights: Revenue (By Nature)
KEY FINANCIAL HIGHLIGHTS Revenue (By Nature) Breakdown (By Nature) (S$’m) 56.9 1H 2019 42.7 1H 2018 32.1 27.5 28.4 39.1% 60.9% 36.1% 19.0 63.9% 17.0 16.3 Equipment 1H 2018 1H 2019 Q2 2018 Q2 2019 Services & Maintenance Equipment Services & Maintenance Encouraging customers to take on services & main
Slide 6: Key Financial Highlights: Gross Profit/Gross Profit Margin
KEY FINANCIAL HIGHLIGHTS Gross Profit/Gross Profit Margin (S$’m) • Lower gross profit YOY mainly due to 30.9% 26.1% lower revenue 24.5% 24.1% • Gross profit margin improved YOY with higher services revenue 21.5 18.3 11.6 10.3 1H 2018 1H 2019 Q2 2018 Q2 2019 Improved gross profit margins due to enhan
Slide 7: Key Financial Highlights: Profit Before Tax and Net Profit
KEY FINANCIAL HIGHLIGHTS Profit Before Tax Net Profit (S$’m) (S$’m) 6.19 4.85 4.07 3.95 3.11 2.69 2.25 1.29 1H 2018 1H 2019 Q2 2018 Q2 2019 1H 2018 1H 2019 Q2 2018 Q2 2019 • The decrease in profit before tax (“PBT”) was attributable to lower gross profit in tandem with lower revenue, and partially o
Slide 8: Financial Position
FINANCIAL POSITION Change Change S$’m Q2 2019 Q2 2018 1H 2019 1H 2018 (%) (%) Revenue 33.34 47.41 (29.7) 70.18 89.01 (21.2) Gross Profit 10.31 11.59 (11.1) 18.33 21.47 (14.6) Gross Profit Margin (%) 30.9 24.5 6.4 pt 26.1 24.1 2.0 pt Total Operating Expenses 8.02 7.72 3.9 14.32 15.42 (7.1) Net Profit
Slide 9: Financial Position
FINANCIAL POSITION S$’m 30 June 2019 31 December 2018 Current Assets 149.46 152.38 Current Liabilities 89.93 91.52 Net Current Assets 59.53 60.86 Total Assets 158.95 158.50 Total Liabilities 94.34 91.83 Total Borrowings 11.90 5.50 Cash and Bank Balances 12.36 21.56 Net Cash 0.46 16.06 NAV/Share (SGD
Slide 10: Outlook & Strategies
ee cote she RL, see: ar MSbaces [eH inal OUTLOOK & STRATEGIES NERA 10
Slide 11: Outlook – Identified Business Verticals
OUTLOOK – IDENTIFIED BUSINESS VERTICALS >US$ 365.3B 16.1 % Cybersecurity Cybersecurity spending CAGR (2026F) (2017 - 2026F) US$ 274.3B 13.2 % Data Analytics Global big data and business analytics solutions CAGR (2022F) (2018 - 2022F) >US$ 16.9B 48.7 % Network Automation Market CAGR (2016 - 2022F) Au
Slide 12: Outlook – Cybersecurity
OUTLOOK – CYBERSECURITY DEMAND DRIVERS NERATEL GAINING TRACTION • Increased frequency of cyberattacks • Profitable cybersecurity business with • Rising internet penetration and healthy margins proliferation of smart devices and advent • Capitalising on current customer base – of advanced technology
Slide 13: Key Strategies
KEY STRATEGIES Capitalise Optimise Customer Reap Synergies Enhance Product Digitisation Wave for Inorganic Growth Base Across Businesses Mix New Growth Areas • Cybersecurity: • Reduce reliance on • Upsell/Cross sell • Bolster recurring • Keep a look out for secure digital Service Providers products
Slide 14: Thank You
Q2/1H 2019 RESULTS PRESENTATION THANK YOU
Nera Telecommunications — H1 2019 Earnings Presentation on 6ix