Nera Telecommunications Ltd · SGX:N01
Nera Telecommunications — Q1 2018 Earnings Presentation
17 slides from Nera Telecommunications's earnings presentation, May 10, 2018
Slide 1: 1Q2018 Results Presentation
1Q2018 RESULTS PRESENTATION May 10, 2018
Slide 2: Agenda
AGENDA • Financial Highlights • Recent Developments • Outlook & Strategies • Q&A 2
Slide 3: Financial Highlights
Nera Telecommunications Ltd 1Q2018 Results Presentation FINANCIAL HIGHLIGHTS 3
Slide 4: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS Turnover Segmental Turnover Turnover by Geography (S$’m) (S$’m) (S$’m) 44.1 44.1 41.6 41.6 8.7 7.9 13.6 13.3 30.5 28.3 0.6 30.5 28.3 30.5 28.3 35.4 30.5 13.6 13.3 33.7 27.7 8.7 7.3 13.6 13.3 1Q2017 1Q2018 4.9 6.0 Wireless Infrastructure Network (WIN) NI WIN 1Q2017 1Q2018 1Q2
Slide 5: Order In-Take
ORDER IN-TAKE Order In-Take (Segmental) (S$’m) Recent Contracts S$2.2m IP network equipment contract (NI) for major Telco in Singapore – repeat Grade-A 58.7 50.7 customer 1Q2017 1Q2018 Order In-Take (Segmental) S$1.0m first contract awarded by key Malaysian (S$’m) Telco for design, supply, delivery,
Slide 6: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS Gross Profit Turnover (By Nature) Breakdown (By Nature) (S$’m) (S$’m) Equipment 1Q2018 Services & Maintenance 1Q2017 1Q2018 32.0 1Q2017 % 11.3 10.6 68.0 29. 31.2 28.3 % 3% 12.9 13.3 70. 7% Equipment Services & 1Q2017 1Q2018 Maintenance • Gross profit declined in tandem with
Slide 7: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS Profit Before Tax Net Profit (S$’m) (S$’m) 3.6 2.9 2.2 1.7 1Q2017 1Q2018 1Q2017 1Q2018 • Lower profit before tax (“PBT”) due to lower gross • Net profit margin decreased to 4.2% profit and higher other operating expenses from 6.5% over the comparative resulted from higher un
Slide 8: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS S$’m 1Q2018 1Q2017 Change (%) Turnover 41.6 44.1 (5.7) Gross Profit 10.6 11.3 (6.2) Gross Profit Margin (%) 25.5 25.7 (0.2) pt Total Operating Expenses 8.5 8.1 4.9 Net Profit After Tax 1.7 2.9 (39.2) Net Profit Margin (%) 4.2 6.5 (2.3) pt Basic and Fully Diluted EPS (SGD Cen
Slide 9: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS S$’m March 31, 2018 December 31, 2017 Current Assets 155.0 151.7 Current Liabilities 88.0 87.0 Net Current Assets 67.1 64.6 Total Assets 160.5 157.3 Total Liabilities 88.4 87.5 Total Borrowings 10.2 11.3 Cash and Bank Balances 29.4 20.7 Net Cash 19.2 9.4 9
Slide 10: Outlook & Strategies
Nera Telecommunications Ltd 1Q2018 Results Presentation OUTLOOK & STRATEGIES 10
Slide 11: Turnkey Solutions
TURNKEY SOLUTIONS 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 Cloud/ Optical Data Service Providers Network Centre NeraTel Government/ Radios Turnkey Security Transport/Utilities Solution
Slide 12: Clear Positioning
CLEAR POSITIONING 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 of • Competitive certified professionals • Reliable 4 End-t
Slide 13: Outlook – Macro
OUTLOOK – MACRO 8 x 42 % Mobile Data Traffic Global mobile data Global mobile data traffic growth (2017-2023) traffic CAGR (2017-2023) >US$ 1T 7.8 % Cybersecurity Cybersecurity spending Cybersecurity spending (2017-2021) CAGR (2017-2021) Cloud Computing US$ 178B 22 % Cloud computing spending Cloud c
Slide 14: Outlook – Singapore Digital Transformation
OUTLOOK – SINGAPORE DIGITAL OTHER FAVOURABLE 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-enabled solutions • 60% of Singapo
Slide 15: Key Growth Strategies
KEY GROWTH STRATEGIES • Reap synergies from complementary businesses to offer turnkey solutions to clients • Grow recurring Service & Maintenance revenue stream for sustainable long-term growth NETWORK WIRELESS INFRASTRUCTURE INFRASTRUCTURE NETWORK • Network Security • Capitalise on proliferation of
Slide 16: Key Strategic Initiatives
KEY STRATEGIC INITIATIVES Leverage on USPs to grow adjacent business (vertical- integration) Drive organic Expand growth; Explore geographical inorganic growth reach Forward Strategies Drive sales to Grow Solutions grow order in- & Services take revenue Enhance shareholder value 16
Slide 17: Thank You
THANK YOU 1Q2018 RESULTS PRESENTATION
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