Nera Telecommunications Ltd · SGX:N01
Nera Telecommunications — FY2018 Earnings Presentation
15 slides from Nera Telecommunications's earnings presentation, Mar 1, 2019
Slide 1: FY2018 Results Presentation
FY2018 RESULTS PRESENTATION 1 March 2019
Slide 2: Agenda
AGENDA • Financial Highlights • Recent Developments • Outlook & Strategies • Q&A 2
Slide 3: Financial Highlights
Nera Telecommunications Ltd FY2018 Results Presentation FINANCIAL HIGHLIGHTS 3
Slide 4: Key Financial Highlights: Turnover and Order In-Take
KEY FINANCIAL HIGHLIGHTS Turnover Segmental Turnover Order In-Take (S$’m) (S$’m) (S$’m) 72.8 55.7 121.3 124.0 126.6 111.2 121.3 111.2 72.8 72.1 22.4 55.7 50.8 15.4 35.2 30.4 4Q2017 4Q2018 FY2017 FY2018 NI WIN NI WIN Wireless Infrastructure Network (WIN) FY2017 FY2018 FY2017 FY2018 Network Infrastruc
Slide 5: Key Financial Highlights: Turnover by Geography and Nature
KEY FINANCIAL HIGHLIGHTS Turnover by Geography Turnover (By Nature) Breakdown (By Nature) (S$’m) (S$’m) Southeast Asia & Others Middle East & Africa Equipment Services & FY2017 FY2018 Maintenance 194.1 FY2018 38.0 166.9 19.1 121.3 FY2017 111.2 40.7% 1.0 59.3% 131.3 72.8 156.1 147.8 98.9 55.7 32.4% 1
Slide 6: Key Financial Highlights: Gross Profit
KEY FINANCIAL HIGHLIGHTS Gross Profit (S$’m) • FY2018 gross profit fell 5.1% to S$42.9 million in tandem with lower turnover 23.3% 25.7% 22.8% 17.7% • Gross profit margin increased to 25.7% mainly due to a positive net movement from warranty provision and higher margin projects recognised for the ye
Slide 7: Key Financial Highlights: Profit Before Tax and Net Profit
KEY FINANCIAL HIGHLIGHTS Profit Before Tax (S$’m) • 2.8% decrease for FY2018 profit before tax (“PBT”) o Lower gross profit o Lower other operating income 11.9 11.5 o Partially offset by lower operating expenses 3.1 1.8 4Q2017 4Q2018 FY2017 FY2018 Net Profit (S$’m) • Consistent net profit with FY201
Slide 8: Order In-Take
ORDER IN-TAKE Order In-Take Recent Contracts (S$’m) Feb 2018: S$2.2m IP network equipment contract (NI) for major Telco in Singapore – repeat Grade-A customer 196.1 Feb 2018: S$1.0m first contract awarded by key Malaysian Telco for 177.4 design, supply, delivery, installation, maintenance and manage
Slide 9: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS S$’m 4Q2018 4Q2017 Change (%) FY2018 FY2017 Change (%) Turnover 45.8 57.6 (20.4) 166.9 194.1 (14.0) Gross Profit 10.5 10.2 3.0 42.9 45.2 (5.1) Gross Profit Margin (%) 22.8 17.7 5.1 ppt 25.7 23.3 2.4 ppt Total Operating Expenses 7.4 8.5 (11.9) 31.6 34.0 (7.0) Net Profit After
Slide 10: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS S$’m December 31, 2018 December 31, 2017 Current Assets 153.0 165.8 Current Liabilities 92.2 101.9 Net Current Assets 60.9 63.9 Total Assets 159.1 171.4 Total Liabilities 92.5 102.3 Total Borrowings 5.5 11.3 Cash and Bank Balances 21.6 20.7 Net Cash 16.1 9.4 10
Slide 11: Outlook & Strategies
Nera Telecommunications Ltd FY2018 Results Presentation OUTLOOK & STRATEGIES 11
Slide 12: Outlook – Digitisation
OUTLOOK – DIGITISATION >US$ 248.3B 10.2 % Cybersecurity Cybersecurity spending CAGR (2023F) (2018 - 2023F) US$ 27B 15.1 % Data Analytics Regional big data and business analytics services CAGR (2022F) (2017 - 2022F) >US$ 16.89B 48.7% Network Automation Market CAGR (2016 - 2022F) Automation (2022F) 12
Slide 13: Areas of Focus
AREAS OF FOCUS CAPTURING OPPORTUNITIES ARISING FROM THE DIGITISATION WAVE DIGITISATION • Cybersecurity – protection of personal data; reduces risks of cyber attacks • Data Analytics – Supports a range of business solutions • Automation – Improves operational efficiency 13
Slide 14: Building a Regional Network
BUILDING A REGIONAL NETWORK NeraTel’s Future Network • Focus/deepen penetration MYANMAR (Yangon) within existing markets in ASEAN VIETNAM (Hanoi) • Identified potential new opportunities in Indochina THAILAND (Bangkok) PHILIPPINES (Manila) MALAYSIA (Kuala Lumpur) SINGAPORE Outside of ASEAN INDONESIA
Slide 15: Thank You
THANK YOU FY2018 RESULTS PRESENTATION
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