Comba Telecom Systems Holdings Limited · HKEX:2342
Comba Telecom Systems — FY2012 Earnings Presentation
30 slides from Comba Telecom Systems's earnings presentation, Mar 25, 2013
Slide 1: 2012 Annual Results Corporate Presentation
2012 Annual Results Corporate Presentation IPPC V1 25 March 2013
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Comba Telecom Systems Holdings Limited (the “Company”) for reference only. The information contained in this presentation has not been independently verified. The Company does not make any representation, warranty or undertaking, whether express or i
Slide 3: Agenda
Agenda Financial Highlights Financial Review Customer Review Business Review Open Forum & Appendix IPPC 25 March 2013 3
Slide 4: Financial Highlights
Financial Highlights Financial Results Exceptional Items Pro-forma Financial Results Financial Position Key Financial Indicators 44
Slide 5: Financial Results
Financial Results For the year ended 31 December For the six months HK$’000 2012 2011 Change ended 30 June 2012 Revenue 6,332,867 6,354,218 (0.3%) 2,591,529 Gross profit 1,615,879 2,326,697 (30.6%) 719,304 Gross profit margin 25.5% 36.6% (11.1 pp) 27.8% Operating (loss)/profit (105,495) 805,919 (113
Slide 6: Exceptional Items
Exceptional Items FY12 FY11 Items Details Remarks HK$Mn 1 Cost of sales ▸ Inventories write-off / write-down 146 27 ▸ Obsolete inventories ▸ 88% of the expenses ▸ 26 million new shares were awarded have been recognized in Awarded to 365 qualified individuals (mainly FY11 & FY12 2 share management, s
Slide 7: Pro-forma Financial Results
Pro-forma Financial Results (Assuming NO exceptional items) For the year ended 31 December For the six months ended HK$’000 2012 2011 Change 30 June 2012 Revenue 6,332,867 6,354,218 (0.3%) 2,591,529 Gross profit margin 27.9% 37.1% (9.2 pp) 27.8% Operating profit / (loss) 133,077 945,995 (85.9%) (78,
Slide 8: Financial Position
Financial Position As at 31 December As at 30 June HK$’000 2012 2011 Change 2012 Net cash / (debt) 9,999 77,243 (87.1%) (812,605) Total assets 10,091,711 9,581,332 5.3% 9,578,597 Total liabilities 6,229,552 5,498,508 13.3% 5,784,688 Net assets 3,805,622 4,014,064 (5.2%) 3,731,779 NAV per share (HK$)
Slide 9: Key Financial Indicators
Key Financial Indicators For the six months For the year ended 31 December ended 30 June 2012 2011 Change 2012 Inventory turnover days 180 188 (8) Days 239 A/R turnover days 259 209 50 days 315 A/P turnover days 242 233 9 days 288 Gross gearing ratio 15.4% 11.7% 3.7 pp 15.9% 9
Slide 10: Financial Review
Financial Review Revenue Breakdown by Customers Revenue Breakdown by Businesses Cost Structure 10 10
Slide 11: Revenue Breakdown by Customers
Revenue Breakdown by Customers For the year ended 31 December 2012 China Unicom 4.3% 22.0% China Mobile China Telecom 52.3% 7.5% 9.1% 7.3% International Customers & 16.3% Core Equipment Manufacturers Others 20.9% 16.0% 2.1% = YOY change Slight decline in the PRC market Satisfactory growth in the ove
Slide 12: Revenue Breakdown by Businesses
Revenue Breakdown by Businesses For the year ended 31 December 2012 Services Wireless Enhancement 30.2% 43.5 % 19.8 % 35.6 % Wireless Access & Antennas & Subsystems Transmission 28.7 % 8.0 % 1.3 % 2.1 % = YOY change Strong growth in Services Decline in Wireless Enhancement due to project delay 12
Slide 13: Cost Structure
Cost Structure For the year ended 31 December As % of Total Revenue = YOY change 30.0% 30% R&D costs 4.1% 28.1% Continuous development of new products 5.9% 25% 5.7% Selling and distribution costs 15.3% Inflation, increase in staff salaries and continuous global expansion of the sales and service
Slide 14: Customer Review
Customer Review Global Customers China Business International Customers & Core Equipment Manufacturers 14
Slide 15: Global Customers
Global Customers Core China Equipment Vendors EMEA APAC Americas 15
Slide 16: China Business
China Business Review & Opportunities: Revenues at HK$ 5,168 million Tightened operator CAPEX controls by operators Increased focus on services and solutions to maintain revenues Numerous network optimization and maintenance projects for operators Success in winning major wireless projects: 18th Nat
Slide 17: International Customers & Core Equipment Manufacturers
International Customers & Core Equipment Manufacturers Review & Opportunities: Revenues up by 21% to HK$1,029 million Tougher CAPEX environment: operators are selecting suppliers with strong value proposition Successfully created a local total solutions platform: Major sporting events e.g. 2014 Soch
Slide 18: Business Review
Business Review Wireless Access & Transmission Wireless Enhancement Antenna & Subsystems Services Summary 18
Slide 19: Solutions for all Network Stages
Solutions for all Network Stages In-building Coverage Scenic Areas Stadium/Large Venues (Camouflaged Solutions) Wireless Backhaul Base Station Solutions Rural Area Coverage Subways & Tunnels Urban Area Coverage 19
Slide 20: Solutions for all Network Stages
Solutions for all Network Stages Network Optimization Solutions etc.. In-Building Solutions In-building Coverage Scenic Areas Stadium/Large Venues BTS Antennas (Camouflaged Solutions) Tower Mounted Solutions Small Cell Solutions Outdoor Wireless Enhancement Installation, Wireless Backhaul Commission
Slide 21: Wireless Access & Transmission
Wireless Access & Transmission Review & Opportunities: Revenues increased by 2% to HK$ 506 million Small Cell Solutions (IB-WAS) WLAN WIRELESS ACCESS Solutions (WLAN Solutions + Small Cell Solutions) Directly addresses capacity solutions demand Positive market response to IB-WAS and WLAN Solutions
Slide 22: Wireless Access & Transmission
Wireless Access & Transmission WIRELESS TRANSMISSION (Digital Microwave Systems & Satellite Solutions) Digital Expanded digital microwave solution sales to Microwave Systems international markets around the world Complete backhaul solutions Diversified customer base to include fixed wireless net
Slide 23: Wireless Enhancement
Wireless Enhancement Review & Opportunities: Revenues decreased by 36% to HK$ 1,254 million Tightened CAPEX in China impacted spending on wireless enhancement Active DAS (Med/Large Venue) Remote Radio Units 2013 and beyond LTE high capacity demands for high density areas driving wireless enhancement
Slide 24: Antennas & Subsystems
Antennas & Subsystems Review & Opportunities: Revenues up at 1% to HK$ 1,819 million Recognized one of the top 3 global base station antennas and subsystems vendor* The #1 antenna vendor in China Antennas Volume supply of multi-system combiners to China operators (2G/3G/LTE/WLAN) LTE antenna portfol
Slide 25: Services
Services Network Planning Network Project Consultancy Rollout Network Installation Review & Opportunities: Maintenance & Commissioning Revenues increased by 30% to HK$ 2,754 million Network Network Growth reflecting strategy of solution sales and pure- Optimization Commissioning service plays Servic
Slide 26: Summary
Summary Continuous growth in demands for data and capacity driving global market in 2013 and beyond Smartphone usage creating demand for anytime, anywhere access to data Demand for end-to-end, cost-effective solutions for network rollout and optimization Comba Telecom’s portfolio: IB-WAS: Small Cell
Slide 27: Open Forum
Open Forum 27
Slide 28: Appendix
Appendix ioe] N
Slide 29: Awarded Shares Expenses
Awarded Shares Expenses On 12 April 2011, 26 million new shares were awarded to 365 qualified individuals at the market closing price of HK$9.32. Total expenses of approximately HK$226 million will be charged to the P/L in the 4 years. 1H 2H FY Vesting shares Expenses Vesting shares Expenses Vesti
Slide 30: Thank You
Thank You fo) ia)
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