Asiainfo Technologies Limited · HKEX:1675
Asiainfo Technologies — FY2018 Earnings Presentation
28 slides from Asiainfo Technologies's earnings presentation, March 2019
Slide 1: 2018 Annual Results
(Stock Code: 1675.HK) 2018 Annual Results 2019.3
Slide 2: Disclaimer
Disclaimer This presentation has been prepared based on publicly available information and information provided by AsiaInfo Technologies Limited (the “Company”). The information contained in this presentation has not been independently verified. No representation or warranty expressed or implied is
Slide 3: Managements
Managements Executive Director & Chairman TIAN Suning Executive Director & CEO GAO Nianshu Senior Vice President & CFO HUANG Ying 2
Slide 4: Contents
Contents 1 Overview and Prospects 2 Business Performance 3 Financial Performance 3
Slide 5: Key Operating Highlights
Key Operating Highlights Continuous and Healthy Growth of Revenue 2017 2018 +7.6% +10.9% 214 +35.7% 5,192 4,825 193 38 28 RMB Million Revenue from Number of Telecom Number of Large Software Business* Operator Customers* Enterprise Customers* Continuous and Significant Growth of Benefits +12.7% +29.9
Slide 6: Corporate Profile
Corporate Profile We are the largest software products and related service provider in China, committed to providing telecom operators and other large enterprise customers with software products and related service of business transformation and digitalization. On December 19, 2018, successfully
Slide 7: Development Trend of the Industry We Operate in
Development Trend of the Industry We Operate in With gradual integration of IT, CT and DT development, new technologies such as artificial intelligence, big data, cloud computing, IoT and 5G are becoming key engines driving traditional industries upgrading and the economic transformation. AsiaInfo
Slide 8: 5G, Revolution Based on the Integration Technology and Business Model
5G, Revolution Based on the Integration Technology and Business Model We will actively seize Manufacturing Agriculture Energy & Utilities Retail Financial Services new opportunities created by 5G development Public Transport Automotive Healthcare Media & Entertainment 5G Business Support Software
Slide 9: Contents: Overview and Prospects
Contents 1 Overview and Prospects 2 Business Performance 3 Financial Performance 8
Slide 10: "Three New, Four Abilities" Strategy Producing Prominent Results
“Three New, Four Abilities” Strategy Producing Prominent Results In 2018, guided by the strategy of “Three New, Four Abilities”, AsiaInfo continued a healthy Year-on-Year growth in its revenue and achieved a significant Year-on-Year increase in its adjusted net profit. Three New, Four Abilities Ac
Slide 11: Telecom Software Product and Service Market Maintaining Positive Growth
Telecom Software Product and Service Market Maintaining Positive Growth Revenue from Number of Telecom Operator Retention Rate of Customers Telecom Operator Customers 5.04 214 >99% Billion 8.6 % 10.9% 1 2 3 500+ Actively grasped Actively sourced new Actively explored new business in Professional opp
Slide 12: Rapid Growth in Data-driven Operation Business
Rapid Growth in Data-driven Operation Business Revenue from Data-driven Operating Services Established data-driven innovative laboratories jointly 82.5 97.6% with several telecom operators Million Headquarters and their subsidiaries SaaS Data-driven SaaS Service Serving Segments Scenario Operation S
Slide 13: Making Breakthroughs in the Large Enterprise Customer Market
Making Breakthroughs in the Large Enterprise Customer Market Revenue from Large Enterprise Number of Large Retention rate of Customers Customer Market Enterprise Customers 123 9.1% 38 35.7% >99% Million Industrial Expansion Core products developed for the telecom industry that can be Expanding Enter
Slide 14: Actively Exploring Vertical Industries of IoT Applications
Actively Exploring Vertical Industries of IoT Applications IoT Platform + IoT Industrial Application + IoT Operation 物联网平台＋物联网行业应用＋物联网运营 Fields of Industrial Internet Fields of Internet of Vehicles Fields of Smart Community China Mobile 0.3 million Internet of Vehicles Industrial Internet platform O
Slide 15: Fully Launching R&D on 5G Products
Fully Launching R&D on 5G Products In 2018, our middle office strategy of products began to unlock value, further realizing the intensive R&D of products and enhancing the overall efficiency of R&D and delivery. In addition, the Company continued to increase its efforts in the R&D of 5G products.
Slide 16: Build Strategic Cooperation to Create Synergy at Business Level
Build Strategic Cooperation to Create Synergy at Business Level 15
Slide 17: Prospect: Driving Continuous Business Growth with One Consolidation, Three Developments
Prospect: Driving Continuous Business Growth with “One Consolidation, Three Developments” The era of commercial application of 5G has already fastened its pace, the Company will seize development opportunity and assist telecom operators in 5G network building and business operation. We will apply
Slide 18: Contents: Financial Performance
Contents 1 Overview and Prospects 2 Business Performance 3 Financial Performance 17
Slide 19: Financial Highlights
Financial Highlights RMB million, unless otherwise indicated 2018 2017 Fluctuation Number of customers Telecom operator customers 214 193 10.9% Large enterprise customers 38 28 35.7% Financial data – continuing operation Revenue 5,211 4,948 5.3% Includes: Revenue from software business 5,192 4,825 7
Slide 20: Long-term Stable and Expanding Customer Base
Long-term Stable and Expanding Customer Base Continuous in-depth Development in Telecom Actively engaging in Large Enterprise Customers Industry Market from Non-Telecom Industry >99% 214 >99% Customer Retention Rate Customer Retention Rate 193 181 38 176 26 28 23 2015 2016 2017 2018 2015 2016 2017 2
Slide 21: Continuous and Healthy Growth of Revenue with Highly Predictable Income
Overall Continuous and Healthy Growth of Revenue with Highly Predictable Income in the Future +7.6% +6.9% +5.6% >12% Increase of new orders in 2018 5,192 4,515 4,825 >5 months Predictability of backlog orders in 2018 2016 2017 2018 RMB million Revenue from Software Business 20 * Backlog orders at th
Slide 22: High Profitability and Continuous Improvement
High Profitability and Continuous Improvement +12.7% +29.9% 1,883 1,883 602 1,670 1,670 464 2017 2018 RMB million 2017 2018 RMB million Gross Profit* Adjusted Net Profit*# +2.3pp +2.2pp 11.6% 36.1% 9.4% 33.8% 2017 2018 2017 2018 Gross Profit Margin (%)* Adjusted Net Profit Margin(%)*# The middle off
Slide 23: Impacts of Non-GAAP Items Will Decrease Year by Year
Impacts of Non-GAAP Items Will Decrease Year by Year To facilitate comparisons of the Company’s overall operating performance from year to year and company to company, certain non-recurring, non-cash or non-operating items, that are not indicative in relation to our operating performance , are exclu
Slide 24: Keeping Control of Costs and Strengthening Strategy-oriented Investments
Keeping Control of Costs and Strengthening Strategy-oriented Investments Cost and Expenses* Cost and Expenses as a Percentage of Revenue (%) +2.1% - 2.7pp 4,564 90.3% 4,468 87.6% 427 + 31.9% 563 8.6% + 2.2pp 10.8% 367 - 22.3% 285 7.4% - 1.9pp 5.5% 404 + 8.7% 439 8.2% + 0.2pp 8.4% R & D expenses Admi
Slide 25: Continuing Cash-generating Capabilities and Sound Cash Flow
Continuing Cash-generating Capabilities and Sound Cash Flow +14.3% +0.9pp -11.9% - 5.7% 184 583 11.2% 162 510 10.3% 61 58 RMB Million 2017 2018 2017 2018 2017 2018 2017 2018 Unit: Day Operating cash flow Operating cash flow as a Turnover days of receivables percentage of revenue (%) Turnover days fo
Slide 26: Thank You
Thank You
Slide 27: Appendix I: Summary of Consolidated Statement of Profit or Loss
Appendix I：Summary of Consolidated Statement of Profit or Loss 2018 2017 YOY YOY% RMB’000 Continuing operations Revenue 5,210,977 4,948,324 262,653 5.3% Include: Revenue from 5,191,963 4,824,879 367,084 7.6% software business Revenue from 19,014 123,445 (104,431) (84.6%) network security business Co
Slide 28: Appendix II: Summary of Consolidated Statement of Financial Position
Appendix II：Summary of Consolidated Statement of Financial Position RMB’000 2018/12/31 2017/12/31 YOY YOY% Total non-current assets 3,229,675 3,314,868 (85,193) (2.6%) Include: Goodwill 1,932,246 1,932,246 - - Amounts due from related parties-long term - 637,489 (637,489) (100.0%) Pledged bank depos