Computer & Technologies Holdings Ltd. · HKEX:46
Computer & Technologies — FY2004 Earnings Presentation
19 slides from Computer & Technologies's earnings presentation, Apr 19, 2005
Slide 1: Briefing Session: Annual Results of Year 2004
Computer And Technologies Holdings Limited Briefing Session: Annual Results of Year 2004 Mr. C S Ng Chairman and CEO Business Highlights
Slide 2: Business transformation to a software and service oriented solutions provider
Business transformation to a software and service oriented solutions provider Strategic partnership with customer with long-term outsourcing service engagement Project Base with Repeated sales of software maintenance income license with IP right plus recurring maintenance income Recurring transactio
Slide 3: Solidifying foundation from business transformation efforts (2)
Solidifying foundation from business transformation efforts (2) Launched Government Electronic Trading Services (GETS) in early 2004 2004 Average daily transaction volume constantly increasing Generated around HK$1.4 million e-Service income in the month of December Page 5 Annual Results 2004
Slide 4: Solidifying foundation from business transformation efforts (4)
Solidifying foundation from business transformation efforts (4) Software license revenue and related maintenance income generated from the Group’s HRMS increased substantially Winning major contracts from large MNCs Annual maintenance income steadily increases over the years (in HK$) Page 7 An
Slide 5: Financial Highlights
Solidifying foundation with strong recurring income Overall profit margin improved from 21.0% to 25.2% Established strong recurring income in multi- multi-year basis which will grow further rapidly in the coming years Without taking into accounts of z Subsequent growth in transaction revenue f
Slide 6: 2004 Financial Highlights Profit and Loss
2004 Financial Highlights Profit and Loss (Compare year-on-year) HK$ (millions) FY 2004 FY 2003 YoY Change Turnover 251.800 362.136 -30.47% Gross Profit 63.543 76.060 -16.46% Gross Profit Margin 0.252 0.210 20.15% Other Revenue 5.472 7.766 -29.54% Gain on deemed disposal of subsidiaries 15.309 N/A N
Slide 7: Financial Highlights - Condensed Cash Flow Statement
Financial Highlights - Condensed Cash Flow Statement (as of December 31, 2004, in HK$ millions) Net cash inflow / (outflow) from operating activitie (32.898) (78.422) Net cash inflow / (outflow) from investing activities 46.088 (50.939) Net cash inflow / (outflow) before financing 13.190 (129.361) a
Slide 8: Financial Highlights - Segmental Analysis
Financial Highlights - Segmental Analysis Year-on-Year Comparison – Reporting Format HK$ (millions) Depreciation, amortization and other operating expenses Segment results 2004 2003 Change 2004 2003 Change Integration Services 0.955 1.728 -44.7% 7.498 5.645 32.8% Solutions Services 3.562 2.424 46.9%
Slide 9: Statistics on Company Performance of 2004
Statistics on Company Performance of 2004 Group Turnover Mix by Industry Sector (Excluding revenue from Distribution Business, IPL and e-Service Fees) Fees) 62.3% 15.1% Government and Public Utilities Financial Services 6.9% Manufacturing Telecommunications 4.8% Transportation 6.6% 4.3% Others 2003
Slide 10: Financial Highlights – Revenue Decreased
Financial Highlights – Revenue Decreased Decrease in revenue Drop in SI revenue z However, improved GP as well as profit contribution Lower revenue recognized from the two large-scale government solution projects compared to 2003 z Major chunk of third-party hardware was delivered last year z
Slide 11: CFI Investment in GO-Business
CFI Investment in GO-Business The Group entered into agreement with China Fund, Inc. (“CFI”) on June 9 for CFI to subscribe for 20% shares of GO- Business for a consideration of HK$23.4 million 80% 20% Transaction completed on June 18, 2004 Recognized an exceptional gain of HK$15 million as de
Slide 12: Looking Forward: Integration Services (1)
Computer And Technologies Holdings Limited Looking Forward Looking Forward Integration Services (1) Consistently strong order momentum from enterprise customers and financial services industry in China Anticipating stable revenue growth from traditional SI business Continuous trend in increasi
Slide 13: Group Performance in 2004: Integration Services (2)
Group Performance in 2004 Integration Services (2) LinBox for Brokers of Shanghai Stock Exchange Integrated solutions to be replicated to all securities brokers in China for integration with information infrastructure of SSE Agreement with SSE to co-market the related solutions Page 25 Annual
Slide 14: Looking Forward: Solution Services (2)
Looking Forward Solution Services (2) Completed the construction phase of the two multi-year solutions outsourcing contracts from HKSAR Government IRIS for Land Registry z System launched for service in February 2005 z Mentioned in the 2005-6 Budget of the HKSAR Government as one of the key init
Slide 15: Looking Forward: Application Services – GO-Business (1)
Looking Forward Application Services – GO-Business (1) Successfully launched the Government Electronic Trading Services (GETS) in the beginning of 2004 Position well as a major G2B e-services provider Platform to Platform to serve serve more than more than 3,000 50,000- government enterprise Pro
Slide 16: Looking Forward: Application Services – GO-Business (3)
Looking Forward Application Services – GO-Business (3) Launched strategic partnership to establish the Largest Number of Trade Declaration Services Locations in Hong Kong To provide Paper-to-Electronic Conversion Services (PCS) centre, other door-to-door pick-up service and drop-in box for trade
Slide 17: Looking Forward: Application Services – IPL Research (1)
Looking Forward Application Services – IPL Research (1) Strong backlog and customer base for HRMS Software Contracts on hand about HK$5 million to be booked in 2005 Steady recurring maintenance and servicing revenue of exceeding HK$6.5 million per year from existing business and customer base
Slide 18: Looking Forward: Application Services – IPL Research (3)
Looking Forward Application Services – IPL Research (3) Expand solutions offerings into CRM and ERP Through partnership with Microsoft To capture growing demand on cost-effective business management systems from the foreign enterprises and joint-venture companies in China Page 35 Annual Result
Slide 19: Questions and Answers Session
Computer And Technologies Holdings Limited Questions and Answers Session
Computer And Technologies Holdings — FY2004 Earnings Presentation on 6ix