Comba Telecom Systems Holdings Limited · HKEX:2342
Comba Telecom Systems — H1 2015 Earnings Presentation
26 slides from Comba Telecom Systems's earnings presentation, Aug 21, 2015
Slide 1: 2015 Interim Results Corporate Presentation
2015 Interim Results Corporate Presentation IPPC V.01_2015.8.21
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Comba Telecom Systems Holdings Limited (the “Company”) for reference only. The information contained in this presentation has not been independently verified. The Company does not make any representation, warranty or undertaking, whether express or i
Slide 3: Agenda
Agenda Financial Highlights Financial Review Customer Review Business Review Open Forum 3
Slide 4: Financial Highlights
Financial Highlights Financial Results Exceptional Items Proforma Financial Results Financial Position Key Financial Indicators 3-Yr Term Loan Facilities 4
Slide 5: Financial Results
Financial Results For the six months ended 30 June For the year ended HK$’000 2015 2014 Change 31 December 2014 Revenue 3,345,331 3,023,575 10.6% 6,733,214 Gross profit 973,504 851,668 14.3% 1,760,010 Gross profit margin 29.1% 28.2% 0.9 pp 26.1% Operating profit 219,108 135,299 61.9% 263,199 Tax 72,
Slide 6: Exceptional Items
Exceptional Items HK$’000 For the six months ended 30 June For the year Margin Margin ended Items Details 2015 2014 31 Dec Impact Impact 2014 1 Cost of sales Inventories (85,388) GPM▼2.6 pp (14,319) GPM▼0.5 pp (66,739) written-off Impairment of Certain 2 trade overseas (57,719) receivables (16,025)
Slide 7: Proforma Financial Results
Proforma Financial Results (Assuming NO Exceptional Items) For the six months ended 30 June For the year ended HK$’000 2015 2014 Change 31 Dec 2014 Revenue 3,345,331 3,023,575 10.6% 6,733,214 Gross profit 1,058,892 865,987 22.3% 1,826,749 Gross profit margin 31.7% 28.6% 3.1 pp 27.1% Operating profit
Slide 8: Financial Position
Financial Position As at As at 31 HK$’000 As at 30 June 2015 Change 30 June 2014 December 2014 Net (debt) / cash (411,478) (17,113) 2,304.5% (687,514) Total assets 10,061,152 10,136,732 (0.7%) 10,486,904 Total liabilities 6,225,131 6,370,777 (2.3%) 6,764,634 Net assets 3,778,083 3,709,791 1.8% 3,668
Slide 9: Key Financial Indicators
Key Financial Indicators For the year For the six months ended 30 June ended 2015 2014 Change 31 December 2014 Inventory turnover days 162 200 (38) Days 164 A/R turnover days 253 293 (40) Days 244 A/P turnover days 257 323 (66) Days 267 Gross gearing ratio 16.5% 14.8% 1.7 pp 16.3% Dividend payout ra
Slide 10: 3-Yr Term Loan Facilities
3-Yr Term Loan Facilities • Loan facility amount of US$200 million • Fairly low interest rate: LIBOR + ~3% • Use of proceeds: Repayment of the partial existing loans and indebtedness Working capital Business expansion R&D 10
Slide 11: Financial Review
Financial Review Revenue Breakdown by Customers Revenue Breakdown by Businesses Cost Structure 11
Slide 12: Revenue Breakdown by Customers
Revenue Breakdown by Customers For the six months ended 30 June 2015 Revenue (HK$Mn) 4,000 China Mobile 3,345 3,500 China Unicom 22.0% 3,024 116.9% 3,000 596 24.1% 30.8% 685 2,500 787 2,000 596 23.5% 3.8% Others 1,500 372 807 China Telecom 17.8% 160.4% 1,000 32.0% 1,323 500 1,031 International Custo
Slide 13: Revenue Breakdown by Businesses
Revenue Breakdown by Businesses For the six months ended 30 June 2015 Revenue (HK$Mn) Wireless Enhancement 4,000 3.7% 3,345 3,500 Services 17.9% 3,024 3,000 0.7% 952 28.5% 946 2,500 140 2,000 143 49.4% 1,500 4.2% 1,653 Antennas 1,356 & Subsystems 1,000 Wireless Access & Transmission 21.9% 500 579 60
Slide 14: Cost Structure
Cost Structure For the six months ended 30 June = YOY change As % of Total Revenue R&D costs 7.2% 30% 26.2% New product offerings 25.8% Keep abreast of latest technology development 25% 3.5% 3.4% Selling and distribution expenses 8.4% 20% Increased revenue 8.1% 8.0% Administrative expenses 2.7
Slide 15: Customer Review
Customer Review Global Customers China Business International Customers & Core Equipment Manufacturers 15
Slide 16: Global Customers
Global Customers Core China Equipment Vendors EMEA APAC Americas
Slide 17: China Business
China Business Review & Opportunities: Revenues increased 17.5% to HK$ 2,749 million China 4G market flourishing Increase in wallet share of certain operators 2015 and beyond State-driven initiatives to increase penetration of broadband (inc LTE) to urban and rural areas User behavior creating deman
Slide 18: International Customers & Core Equipment Manufacturers
International Customers & Core Equipment Manufacturers Review & Opportunities: Revenues decreased 12.9% to HK$ 596 million International customer revenues flat from 1H 2014 and decrease in OEM sales for same period FOREX affecting purchasing power of customers 2015 and beyond Growth areas include ne
Slide 19: Business Review
Business Review Antenna & Subsystems Wireless Enhancement Wireless Access & Transmission Services Summary 19
Slide 20: Antennas & Subsystems
Antennas & Subsystems Review & Opportunities: Revenues increased 21.9% to HK$ 1,653 million Strong investment on 2G/3G/4G macrocell infrastructure: LTE antenna deployment for China 4G network rollout Antennas International operator demand for antennas and subsystems RF Front Ends 2015 and beyond Com
Slide 21: Wireless Enhancement
Wireless Enhancement Review & Opportunities: Revenues increased 3.7% to HK$ 600 million Strategically diversifying customer base of wireless enhancement equipment to OEM 2015 and beyond Active DAS Long term growth of in-building wireless market (Med/Large Venue) Remote Radio Units Growth in demand f
Slide 22: Wireless Access & Transmission
Wireless Access & Transmission Review & Opportunities: Revenues decreased 2.5% to HK$ 140 million Small Cell Solutions WIRELESS ACCESS WLAN (WLAN Solutions + Small Cell Solutions) Solutions Deployment of 3G and 4G small cell solutions in China Promising outlook for small cell solutions in internatio
Slide 23: Wireless Access & Transmission
Wireless Access & Transmission WIRELESS TRANSMISSION (Digital Microwave Systems & Satellite Solutions) Digital Satisfactory growth for wireless transmission solutions Microwave Systems driven by IP-based networks Development of innovative integrated solutions including small cell backhaul solutions
Slide 24: Services
Services Network Planning Network Project Consultancy Rollout Network Installation Review & Opportunities: Maintenance & Commissioning Revenues increased 0.7% to HK$ 952 million Network Network Key differential element enabling the Comba to supply Optimization Commissioning total solutions Services
Slide 25: Summary & Conclusion
Summary & Conclusion Increasing network capacity demands is the growth driver of the core business: China 4G network rollouts (FDD and TDD) Capacity Enhancement demand for existing and new solutions Continued international growth Network densification & enhancement for mature markets New network bui
Slide 26: Open Forum
Open Forum 26
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