Plover Bay Technologies Ltd. · HKEX:1523
Plover Bay Technologies — FY2018 Earnings Presentation
19 slides from Plover Bay Technologies's earnings presentation, February 2019
Slide 1: 2018 Annual Results Presentation
February 2019 Plover Bay Technologies Limited (1523 HK) 2018 Annual Results Presentation 0
Slide 2: Disclaimer
Disclaimer 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 contain all material information concerning Plover Bay Technologies Limited (the “Company”). T
Slide 3: What is SD-WAN?
What is SD-WAN? SD-WAN: Using Software-Defined capabilities to deliver secure, mission critical WAN connections ▪ Increase bandwidth at a lower cost – Use less-expensive broadband or mobile connections to scale up bandwidth, instead of traditional MPLS ▪ Centralized management – Manage and automate
Slide 4: Plover Bay's SD-WAN Technologies
Plover Bay’s SD-WAN Technologies Plover Bay Technologies – Pioneer in Wireless SD-WAN ▪ SpeedFusion – the only company in the market with the capability to combine multiple connectivity, from fixed line to mobile and satellite ▪ Unbreakable Connectivity – When one connection is down, other connectio
Slide 5: Recognized Global SD-WAN Player
Recognized Global SD-WAN Player Our edge vs competitors: Ability to bond multiple wireless links with SpeedFusion Single wireless Multiple Company link wireless links Plover Bay Yes Up to 18x links Cradlepoint Yes Up to 2x links Sierra Wireless Yes Not available Enterprise market focused “Peplink ca
Slide 6: Wired vs Wireless SD-WAN
Wired vs Wireless SD-WAN Wired-SD WAN Wireless SD-WAN Limited to locations with good network Deploy branch network at location infrastructure Currently the low hanging fruit from converting Wireless SD-WAN opens up new possibilities existing enterprise customers from traditional in Transport, Mariti
Slide 7: 5G is the Tipping Point for Wireless SD-WAN
5G is the Tipping Point for Wireless SD-WAN 5G Benefits: Low latency, Extremely fast 5G Challenges: Bound by physical limits • Low latency enables mission critical • Operates at high frequency mmWave = fast applications that require instant but short range & easily blocked by objects feedback, such
Slide 8: Our Go-to-market Approach
Our Go-to-market Approach Data Management 7
Slide 9: Business Updates: Achievements
Business Updates Achievements ▪ Awarded Asia’s Best 200 Best Under A Billion 2018 by Forbes (July 2018) ▪ Recognized in Gartner’s Magic Quadrant for WAN Edge Infrastructure (October 2018) ▪ IC2 cloud management suite registered devices over 160,000 at end-2018 The Next Step ▪ Increase market penetra
Slide 10: Roadmap 2019: High-performance Modular Routers
Business Updates Roadmap 2019: High-performance Modular Routers Made with computing power needed for 5G EPX Available expansion modules - 30Gbps router throughput - US public safety network, FirstNet certified 5G Future 6 slots - One box solution for regional offices interfaces technologies - Rapidl
Slide 11: Roadmap 2019: FusionSIM
Business Updates Roadmap 2019: FusionSIM Game changer for managed service providers ▪ Enables MSPs pool data plans from multiple carriers to create customized data plans for end-customers ▪ Automation policies set to minimize data plan cost, distribute data cap or optimize for the best connectivity
Slide 12: Financial Highlights
Financial Highlights Financial year ended 31 December FY16 FY17 FY18 FY18 vs 17 (USD’000) Revenue 28,358 37,132 41,806 +12.6% Gross profit 17,945 22,975 26,189 +14.0% Operating income 7,950 10,654 12,245 +14.9% Reported net profit 5,240 8,754 10,620 +21.3% Core net profit * 6,900 9,517 11,381 +19.6%
Slide 13: Revenue Breakdown
Revenue Breakdown Revenue by product Software 45.0 (USD million) Licenses Others 41.8 1.8 Warranty & 4% Wired SD- Asia 2% 40.0 37.1 North support svc 3% 20% WAN 15% 3% 35.0 9.5 America 21% 6.7 19% 30.0 28.4 23% 18% 25.0 21.9 5.2 Segment Region 20.0 17.9 3.9 22.3 Breakdown Breakdown 57% 58% 21.4 2.6
Slide 14: Gross Profit Margin Breakdown
Gross Profit Margin Breakdown Segment Gross Profit Margin Gross profit mix Warranty & (USD million) support / 26.2 89.3% 90.2% Software 87.3% Licenses 23.0 1.8 85.1% 92.3% 1.2 17.9 5.9 8.7 1.2 69.8% Wired SD-WAN 67.1% 67.5% 68.1% 12.7 4.5 66.4% 11.0 0.3 0.2 3.4 10.5 10.3 2.2 63.3% Overall 7.1 61.5%
Slide 15: Operating Expenses Breakdown
Operating Expenses Breakdown Year ended 31 Dec USD’000 Percentage of revenue 2016 2017 2018 2016 2017 2018 Operating expenses: Selling & Distribution 1,679 1,636 2,107 6.0% 4.4% 5.0% Admin expenses 3,412 3,958 4,814 12.0% 10.6% 11.5% R&D expenses 4,990 7,189 7,318 17.6% 19.4% 17.6% Total operating e
Slide 16: Net Profit, EPS and Dividend
Net Profit, EPS and Dividend Year ended 31 Dec 2017 2018 Net profit (USD’000) (USD million) 10.6 Net profit 8,753 10,620 8.8 + Stock option exp. 764 761 Core net profit 9,517 11,381 EPS data (US cents) Basic EPS 0.87 1.04 2017 2018 Dividend declared Diluted EPS 0.84 1.00 (USD million) 11.6 Dividend
Slide 17: Strong Free Cash Flow Generation
Strong Free Cash Flow Generation Free Cash Flow 2016 2017 2018 Year ended 31 December (USD’000) Cashflow from operations 4,420 2,809 19,491 Cashflow from investing (808) (1,821) (1,293) (excl. movements in fixed deposits) Free cash flow 3,612 988 18,198 Working capital (USD’000) Trade and other rece
Slide 18: 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 ▪ Engaged in R&D of SD-WAN software and products ▪ Fully outsourced manufacturing to OEMs in Taiwan, China and Hong Kong
Slide 19: Q&A Enquiries: Christopher Tse
Q&A Enquiries: Christopher Tse Chief Financial Officer Phone: +852 2990 7667 Email: Christophert@ploverbay.com
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