Plover Bay Technologies Ltd. · HKEX:1523
Plover Bay Technologies — H1 2019 Earnings Presentation
17 slides from Plover Bay Technologies's earnings presentation, July 2019
Slide 1: 2019 Interim Results Presentation
Plover Bay Technologies Limited (1523 HK) July 2019 2019 Interim Results Presentation 0
Slide 2: Disclaimer
Disclaimer Plover Bay Technologies Limited is incorporated in the Cayman Islands with limited liability. The information contained in this presentation is intended solely for your personal reference. Such information is subject to change without notice, its accuracy is not guaranteed and it may not
Slide 3: Who We Are?
Who We Are? We are the “Unbreakable Connectivity” Company ▪ Founded in 2006, listed in July 2016 on Stock Exchange of Hong Kong ▪ We develop and market SD-WAN routers and supporting cloud management platform under “Peplink”, “Pepwave” and “InControl 2” ▪ Headquartered in Hong Kong with global engine
Slide 4: What is Software-Defined WAN (SD-WAN)?
What is Software-Defined WAN (SD-WAN)? In general, SD-WAN simplifies branch office networking, enhances business agility and reduces cost associated with network deployment and maintenance ▪ Better network performance – Optimize network traffic based on applications in use, e.g. SaaS productivity ap
Slide 5: Plover Bay's SD-WAN Technologies
Plover Bay’s SD-WAN Technologies Our SD-WAN technology offers more: ▪ SpeedFusion – combine multiple WAN links, from fixed line to mobile to satellite, to form a single resilient and extremely fast data connection ▪ Unbreakable connectivity – When one of the connections fails, other connections seam
Slide 6: Snapshot of the SD-WAN Market
Snapshot of the SD-WAN Market Market CAGR 2017 – 2022 (Source: Gartner 2018) 37% TRADITIONAL W AN SD-W AN TOTAL W AN EDGE MARKET -21% -3% Enterprise market focused Subdivide SD-WAN into: Wired SD-WAN • Enterprise market focused • Limited to fixed location with good infra • Current high growth driven
Slide 7: Wireless SD-WAN: 5G Will Be a Tipping Point
Wireless SD-WAN: 5G Will Be a Tipping Point 5G will create new demand for wireless connectivity Plover Bay’s SpeedFusion technology uses multiple wireless connections to complement 5G Massive Retail IoT the 5G network Public safety Healthcare • SpeedFusion bonding ensures sufficient Autonomous bandw
Slide 8: Our Go-to-market Approach
Our Go-to-market Approach Data Management 7
Slide 9: Business Updates: The Next Step
Business Updates The Next Step ▪ Increase sales and marketing support to channel partners ▪ SpeedFusion Cloud, a pay-per-usage service for unbreakable connectivity which massively simplifies network deployment ▪ Establish partnerships with telecom and mobile operators to build up global presence for
Slide 10: Financial Highlights
Financial Highlights Financial year ended 31 December 1H18 1H19 Change (USD’000) Revenue 19,728 22,025 +11.6% Gross profit 12,449 14,060 +12.9% Other income, Operating expense (6,673) (7,124) +6.8% & Finance cost Profit before tax 5,776 6,936 +20.1% Reported net profit 4,743 5,758 +21.4% Gross profi
Slide 11: Revenue Breakdown
Revenue Breakdown Revenue by product (USD million) Others Software licenses North Asia America 5% Wired 2% Warranty & 4% 18% SD-WAN 13% 2% support svc 21% 15% 25%21% 22.0 Region 1.1 Segment EMEA 0.9 19.7 2H 17.8 5.5 Breakdown Breakdown 3.1 4.2 (Outer ring is 1H19) 22% (Outer ring is 1H19) 24% 59% 12
Slide 12: Gross Profit Margin Breakdown
Gross Profit Margin Breakdown Gross profit by product Segment Gross Profit Margin (USD million) Warranty & support 92.3% services / 89.3% 90.2% 87.3% Software licenses 92.3% 67.1% 67.5% 68.1% Overall 66.4% 14.1 63.8% 12.4 1.1 2H 10.5 0.9 Wired SD- 5.0 63.3% 61.9% 62.6% 0.8 3.7 WAN 58.5% 7.9 2.7 58.1
Slide 13: Operating Expenses Breakdown
Operating Expenses Breakdown For six months ended June 30 USD’000 Percentage of revenue 1H18 1H19 1H18 1H19 Operating expenses: Selling & Distribution 1,058 1,168 5.4% 5.3% Admin expenses 2,166 2,609 11.0% 11.8% R&D expenses 3,511 3,513 17.8% 16.0% Total operating expenses 6,735 7,290 34.1% 33.1% Ot
Slide 14: Net Profit, EPS and Dividend
Net Profit, EPS and Dividend For the six months Net profit 1H18 1H19 ended (USD million) 5.8 4.7 Profit before tax 5,776 6,936 Income tax (1,033) (1,177) Effective tax rate 17.9% 17.0% Net profit 4,743 5,758 1H18 1H19 + Stock option exp. 413 275 Core net profit 5,156 6,034 Dividend declared (HK cent
Slide 15: Strong Free Cash Flow Generation
Strong Free Cash Flow Generation Cash flow statement summary 1H18 1H19 Period ended 30 June (USD’000) Cash flows from operating activities 11,259 8,707 Cash flows used in investing activities (472) (425) Cash flows used in financing activities (5,240) (8,268) Key balance sheet items December 2018 Ju
Slide 16: Appendix: Investment Highlights
Appendix: Investment Highlights Revenue Core net profit 11.4 (USD million) 41.8 (USD million) 37.1 9.5 28.4 6.9 21.9 17.9 4.4 3.7 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 ▪ Develops proprietary technologies that ensure unbreakable connectivity ▪ Majority of manufacturing outsourced to manuf
Slide 17: Q&A
Q&A Enquiries: Christopher Tse Chief Financial Officer Phone: +852 2990 7667 Email: Christophert@ploverbay.com
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