Nera Telecommunications Ltd · SGX:N01
Nera Telecommunications — FY2017 Earnings Presentation
19 slides from Nera Telecommunications's earnings presentation, Feb 27, 2018
Slide 1: FY2017 Results Presentation
NERA TELECOMMUNICATIONS LTD FY2017 Results Presentation February 27, 2018
Slide 2: Agenda
AGENDA Nera Telecommunications Ltd • Financial Highlights (Continuing Operations) • Recent Developments • Outlook & Strategies • Q&A 2
Slide 3: Financial Highlights
FINANCIAL HIGHLIGHTS NERA
Slide 4: Key Financial Highlights: Turnover and Order In-Take
KEY FINANCIAL HIGHLIGHTS Continuing Operations Nera Telecommunications Ltd Turnover Segmental Turnover Order In-Take (S$’m) (S$’m) (S$’m) 196.2 164.9 74.1 62.2 122.1 59.6 102.7 124.0 49.6 110.2 122.1 74.1 23.7 102.7 62.2 75.0 72.1 18.3 31.3 35.9 4Q 2016 4Q 2017 FY2016 FY2017 NI WIN NI WIN Wireless I
Slide 5: Key Financial Highlights: Gross Profit and Turnover Breakdown
KEY FINANCIAL HIGHLIGHTS Continuing Operations Nera Telecommunications Ltd Gross Profit Turnover (By Nature) Breakdown (By Nature) Equipment (S$’m) (S$’m) Services & FY2017 Maintenance FY2016 FY2017 31.5% FY2016 49.0 68.5% 42.2 134.4 34.6% 105.9 59.0 61.8 65.4% 12.6 13.9 Equipment Services & 4Q 2016
Slide 6: Key Financial Highlights: Profit Before Tax and Net Profit
KEY FINANCIAL HIGHLIGHTS Continuing Operations Nera Telecommunications Ltd Profit Before Tax (S$’m) 14 • 148.3% growth for FY2017 profit before 12 tax (“PBT”) 10 ̶ Higher gross profit 8 ̶ Lower operating expenses 6 13.0 ̶ PBT margin rose to 6.6% in FY2017 4 compared to 3.2% in FY2016 2 5.2 3.0 0 0.9
Slide 7: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS Nera Telecommunications Ltd Continuing Operations Change Change S$’m 4Q 2017 4Q 2016 FY2017 FY2016 (%) (%) Turnover 59.6 49.6 20.2 196.2 164.9 19.0 Gross Profit 13.9 12.6 11.0 49.0 42.2 16.1 Gross Profit Margin (%) 23.4 25.3 (1.9) pt 25.0 25.6 (0.6) pt Total Operating Expens
Slide 8: Key Financial Highlights: Balance Sheet
KEY FINANCIAL HIGHLIGHTS Nera Telecommunications Ltd Continuing Operations S$’m December 31, 2017 December 31, 2016 Current Assets 151.7 137.6 Current Liabilities 87.1 69.8 Net Current Assets 64.6 67.8 Total Assets 157.3 143.2 Total Liabilities 87.5 76.9 Total Borrowings 11.3 9.6 Cash and Bank Balan
Slide 9: Key Financial Highlights: Turnover by Region
KEY FINANCIAL HIGHLIGHTS Turnover By Region Nera Telecommunications Ltd Turnover by Geography (S$’m) • In FY 2017, WIN segment turnover Southeast Asia & Others Middle East & Africa increased by 19.1% Y-o-Y ̶ Middle East and Africa region increased by 196.2 66.9% Y-o-Y 164.9 ̶ SEA and others region d
Slide 10: Recent Developments
RECENT DEVELOPMENTS NERA
Slide 11: Recent Contract Wins
RECENT DEVELOPMENTS Recent Contract Wins Nera Telecommunications Ltd NI WIN Order In-Take: S$124m Order In-Take: S$72.1m Feb’18: S$2.2m IP network equipment contract for major Aug’17: S$7.9m Transmission Equipment contract from Telco in Singapore – repeat Grade A customer North African operators for
Slide 12: Outlook & Strategies
OUTLOOK & STRATEGIES NERA
Slide 13: Turnkey Solutions
TURNKEY SOLUTIONS Nera Telecommunications Ltd We are a global solution provider and we provide technological solutions to ease our customers’ pain points, help them transform, and grow their business IP Optical Cloud/ Service Providers Network Data Centre NeraTel Radios Turnkey Security Government/
Slide 14: Clear Positioning
CLEAR POSITIONING Nera Telecommunications Ltd What Makes NeraTel Different What This Means For Customers 1 Global Footprint • Value Creation • Peace of Mind 2 4 decades of established track record • Complex solutions delivered accurately 3 One of region’s largest team • Competitive of certified prof
Slide 15: Outlook – Macro
OUTLOOK – MACRO Nera Telecommunications Ltd 8 x 42 % Global mobile data Global mobile data Mobile Data Traffic traffic growth (2017-2023) traffic CAGR (2017-2023) >US$ 1T 7.8 % Cybersecurity spending Cybersecurity spending Cybersecurity (2017-2021) CAGR (2017-2021) US$ 178B 22 % Cloud Computing Clou
Slide 16: Outlook – Singapore
OUTLOOK – SINGAPORE Nera Telecommunications Ltd OTHER FAVOURABLE DIGITAL DEVELOPMENTS TRANSFORMATION Government-led initiative to • Government grants to help firms develop digital capabilities (e.g. harness infocomm technologies, SMEs Go Digital Programme) networks and big data to create tech-enable
Slide 17: Key Growth Strategies
KEY GROWTH STRATEGIES Nera Telecommunications Ltd • Reap synergies from complementary businesses to offer turnkey solutions to clients • Grow recurring Service & Maintenance revenue stream for sustainable long- term growth Wireless Infrastructure Network Infrastructure Network • Network Security • C
Slide 18: Key Strategic Initiatives
KEY STRATEGIC INITIATIVES Nera Telecommunications Ltd Leverage on USPs to grow adjacent business (vertical- integration) Drive organic Expand growth; Explore geographical inorganic reach growth Forward Strategies Grow Drive sales to Solutions & grow order in- Services take revenue Enhance shareholde
Slide 19: Thank You
Nera Telecommunications Ltd NERA TELECOMMUNICATIONS LTD THANK YOU 19
Nera Telecommunications — FY2017 Earnings Presentation on 6ix