Asiainfo Technologies Limited · HKEX:1675
Asiainfo Technologies — Investor Presentation (October 2009)
25 slides from Asiainfo Technologies's investor presentation, October 2009
Slide 1: A Leading Provider of Telecom Software and IT Security Solutions in China
A Leading Provider of Telecom Software and IT Security Solutions in China Corporate Presentation for Investors NASDAQ:ASIA
Slide 2: Safe Harbor
Safe Harbor The information contained in this presentation is as of December 31, 2008. AsiaInfo assumes no obligation to update any forward-looking statements contained in this presentation as a result of new information or future events or developments. This presentation contains forward-looking in
Slide 3: Company Business Overview
Company Business Overview IT Security Telecom Software Solutions Products & Services • Acquired in 2004 • Core growth driver • High growth market • Comprehensive product portfolio with leading market position in China • Net revenue grows 40% YOY in 2008 • High industry barriers to entry and strong p
Slide 4: Company Overview
Company Overview ¾ Founded in 1993 in the U.S. History ¾ Moved Operations to China in 1995 ¾ First Chinese technology company to list on NASDAQ in 2000 ¾ Telecommunications: 3 large telecommunications carriers Key Customers ¾ IT security: SMEs & governmental agencies in China Headquarters ¾ Headquar
Slide 5: Investment Highlights
Investment Highlights } Robust Growth in the Telecom Market Sparked by Industry Restructuring and 3G } Leading Market Share and 15-year Operating History in China's Telecom Industry } World-class Products and Services with Established Track Record } Healthy Financial Position to Support Disciplined
Slide 6: Telecom Software and Solutions
Telecom Software and Solutions Core competency in telecom software solutions ¾ Billing Business Operation ¾ Customer Relationship Management (CRM) Convergence Support System (BOSS) ¾ Partnership Relationship Communications Management (PRM) ¾ Data warehousing platform Business Intelligence Wireless ¾
Slide 7: Market Leader of China Telecom Software
Market Leader of China Telecom Software 1/2+ 50 Million 5 Billion 5,000M+ CDRs are processed every day by Asiainfo systems Total Asiainfo Asiainfo system support 50M 1 out of every 2 China telecom users WLAN/Broadband customers all over are served by Asiainfo systems the country 5,000 TB 29 Million
Slide 8: Established Market Leadership
Established Market Leadership } Market leader in China’s Business Operation Support System (BOSS) - Approximately 30% market share with deployment in 11 provinces for China Mobile, 9 for China Unicom and 5 for China Telecom subsidiaries - Deployed China’s largest two BOSS systems in Zhejiang and Hen
Slide 9: Telecom Macro Environment
Telecom Macro Environment Industry Macro Growth Drivers Telecom IT Service & Software Spending } China telecom industry restructuring - Restructuring should introduce more competition and drive overall telecom IT (US$ bn) 3.4 spending .1% R:15 - Carriers will launch more data application G CA projec
Slide 10: China's Telecom Subscriber Growth
China’s Telecom Subscriber Growth China’s Telecom Subscriber Growth Million Subscribers CAGR 700 17.6% 600 500 400 300 33.4% 200 100 32.8% 0 2004 2005 2006 2007 2008 Mobile Internet Broadband Source: China Ministry of Industry and Information Technology } Rapid growth of telecom subscribers is drivi
Slide 11: Comprehensive Solution and Service Capability
Comprehensive Solution and Service Capability Operators’ Business Challenges AsiaInfo’s Solutions and Services } Business Operation Consulting based on customer insight - Process consulting service Intensive Market Competition - Collaborative market campaign management service } Customer Contact Out
Slide 12: Market Leader with Extensive Industry Expertise
Market Leader with Extensive Industry Expertise Unique Characteristics of Challenges AsiaInfo’s Proposition China Telecom Industry } Developing country with huge } 40m+subs per province with } Efficient and flexible IT number of subscribers relatively lower IT investment solutions with China budget
Slide 13: Competitive Advantages
Competitive Advantages Brand Local Sector Access to R&D Name Knowledge Knowledge Capital AsiaInfo Global Players Chinese Local Players Weak Strong 13
Slide 14: China IT Security Market Outlook
China IT Security Market Outlook } Increasing awareness of IT security China IT Security Market Size and Growth Rate issues - Will drive adoption of products, software and services US$ Million = 29% R - China governmental agencies are CAG 2,837 major drivers of spending growth 3,000 2 E – 201 7 2,50
Slide 15: IT Security Products and Services
IT Security Products and Services } Range of firewall, VPN and UTM appliances and support services Super V series Firewall products } Network Gap products to drive additional growth Power V series Firewall products } Branded as “Lenovo” Smart V series Firewall products } Direct sales focused on larg
Slide 16: Our Growth Strategy
Our Growth Strategy Focus core competence in China’s fast-growing telecom industry Provide a comprehensive offering, from system Expand revenue from implementation, recurring services maintenance services to high-value consulting Increase market share Grow revenue from BI through additional solution
Slide 17: Financial Highlights
2 ASiaINFO Financial Highlights
Slide 18: Financial Highlights
Financial Highlights Full Year 2008 3Q 2009 } Net Revenue (Non-GAAP) Up 38% YoY Up 42% YoY } Operating Income Up 51% YoY Up 93% YoY } Net Income (Non-GAAP)(1) Up 45% YoY Up 72% YoY } Operating Cash Flow $31.6 million $9.5 million } Total Cash Position(2) $213.3 million $235.8 million (1) Net Income
Slide 19: Consistent Growth in Net Revenue (Non-GAAP)
Consistent Growth in Net Revenue (Non-GAAP) US$ Million R = 36% G 200 e venue CA are R 00 8 Softw 159 2 150 2004 – 12% 115 100 87 15% 75 63 17% 88% 25% 50 34% 85% 83% 75% 66% 0 2004 2005 2006 2007 2008 Services & third-party hardware revenue net of third party hardware costs Software products and so
Slide 20: Operating Leverage
Operating Leverage Operating Margin of Net Revenue (Non-GAAP)* 20% 10% 0% -10% 1Q ** 2Q 3Q 4Q FY** 2006 -3.8% 0.9% 4.2% 5.6% 2.2% 2007 3.1% 4.5% 10.6% 14.3% 8.8% 2008 8.7% 10.3% 12.4% 15.2% 12.1% 2009 13.0% 12.0% 16.8% * Operating margin of net revenue (Non-GAAP) is calculated by dividing operating
Slide 21: Quarterly Results
Quarterly Results Net Revenue (Non-GAAP) Basic and EPS (Non-GAAP)(1) US$ US$ Million 0.35 70 60.1 0.30 53.4 60 51 0.25 47.7 50 42.7 35.1 0.20 34.4 40 30.7 29.6 26.6 0.15 23.5 30 0.10 20 0.05 10 0.00 0 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 1Q 2Q 3Q 4Q Basic EPS Non-GAAP EPS 2007 2008
Slide 22: Total Net Cash Position and Cash Flow
Total Net Cash Position and Cash Flow Strong Total Cash Position and Operating Cash flow US$ Million 250 215.0 213.3 200 166.7 163.1 148.7 150 100 50 35.8 27.9 31.6 18.3 12.4 0 2004 2005 2006 2007 2008 Total cash position including cash & cash equivalents, restricted cash and short-term investments
Slide 23: Thank you!
Thank you! Investor Relations Contact: Sheryl Zhang Email: [email protected] Tel: (8610) 8216 6039 23
Slide 24: Appendix A: Explanation of Net Revenue (Non-GAAP)
Appendix A: Explanation of Net Revenue (Non-GAAP) Net Revenue (Non-GAAP) Referred to in Slide Entitled “Quarterly Results-Net Revenue (Non-GAAP)” Net revenue (Non-GAAP) represents total revenue net of hardware costs that are passed through to our customers. We believe total revenues net of hardware
Slide 25: Appendix B: Explanation of Non-GAAP EPS
Appendix B: Explanation of Non-GAAP EPS EPS (Non-GAAP) Referred to in Slide Entitled “Quarterly Results- Non-GAAP EPS” EPS (Non-GAAP) is calculated based on net income (Non-GAAP). Net income (Non-GAAP), a non-GAAP measure, excludes certain expenses and income, such as share-based compensation expens
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