Nera Telecommunications Ltd · SGX:N01
Nera Telecommunications — Q2 2015 Earnings Presentation
22 slides from Nera Telecommunications's earnings presentation, Aug 6, 2015
Slide 1: Nera Telecommunications Ltd Analyst Briefing
Nera Telecommunications Ltd NERA TELECOMMUNICATIONS LTD ANALYST BRIEFING Samuel Ang Mark Weng Kwai President & CEO Financial Controller 6th Aug 2015 1
Slide 2: Content
Nera Telecommunications Ltd Content • Result analysis : ‒ 2Q FY15 vs 1Q FY15 ‒ 2Q FY15 vs 2Q FY14 ‒ 1H FY15 vs 1H FY14 • Outlook 2
Slide 3: Financial performance summary
Financial performance summary Nera Telecommunications Ltd S$'000 2QFY15 2QFY14 + / (-) % 1HFY15 1HFY14 + / (-) % Turnover 48,415 43,790 10.6% 90,520 84,446 7.2% Gross profit 15,878 14,140 12.3% 29,982 29,677 1.0% Gross profit % 32.8% 32.3% 0.5% 33.1% 35.1% (2.0%) Other operating income 164 289 (43.3
Slide 4: Revenue overview
Revenue overview Nera Telecommunications Ltd 100.0 Y-o-Y = +7.2% S$ m 90.5 Click to edit Master title style 90.0 84.4 80.0 Q-o-Q = +15.0% 70.0 60.0 Y-o-Y = +10.6% 48.4 50.0 43.8 Q-o-Q = +117.7% Q-o-Q = -21.7% Q-o-Q = +17.5% 42.1 40.7 40.0 30.0 Y-o-Y = +7% Y-o-Y = +2.8% Y-o-Y = +31.1% 23.4 20.0 17.8
Slide 5: Revenue – Overall group
Revenue – Overall group Nera Telecommunications Ltd 2Q FY15 Revenue in 2Q FY15 increased 10.6% ($4.6m) y-o-y from $43.8m to $48.4m ‒ Telecom - increased 7.0% ($1.2m) y-o-y from $16.4m to $17.6m ‒ Network Infrastructure - increased 2.8% ($0.5m) y-o-y from $17.8m to $18.3m ‒ Payment Solutions - increa
Slide 6: Revenue – Telecom segment
Revenue – Telecom segment Nera Telecommunications Ltd 25.0 Y-o-Y South East Asia and others Middle East and Africa SEA & others = -9.2% MEA = -21.1% 20.0 Q-o-Q SEA & others = +44.9% 15.2 MEA = +279.6% 15.0 13.7 15.0 Y-o-Y 12.0 SEA & others = +0.3% MEA, = 13.5% 9.5 8.4 10.0 8.1 8.1 7.0 6.8 5.6 5.0 2.
Slide 7: Revenue – Network Infrastructure
Revenue – Network Infrastructure Nera Telecommunications Ltd Y-o-Y = +10.1% Q-o-Q = -21.7% Y-o-Y = +2.8% 2Q FY15 revenue contribution from Network Infrastructure segment decreased 21.7% Q-o-Q but increased 2.8% Y-o-Y. The higher revenue for 2Q FY15 Y-o-Y was mainly due to higher sales of network equ
Slide 8: Revenue – Payment Solutions
Revenue – Payment Solutions Nera Telecommunications Ltd Y-o-Y = +41.9% Q-o-Q = +17.5% Y-o-Y = +31.1% For 2Q FY15, revenue contribution for Payment Solutions segment increased both Q-o-Q and Y-o-Y at 17.5% and 31.1% respectively. For 1H 2015, revenue contribution for Payment Solutions segment increas
Slide 9: Revenue – Breakdown by nature
Revenue– Breakdown by nature Nera Telecommunications Ltd 60.0 54.9 55.3 1HFY14 Equipment revenue Y-o-Y = +0.6% 50.0 35.0% Service, leasing revenue 40.0 Y-o-Y = +19.4% 35.3 65.0% 29.6 30.0 1HFY15 20.0 39.0% 10.0 61.0% - 1HFY14 1HFY15 Equipment revenue Service / Leasing revenue Equipment revenue Servi
Slide 10: Gross Profit, GP Margin
Gross Profit, GP Margin Nera Telecommunications Ltd Gross profit (S$ ’m) GP margin (%) • In 2Q FY15, gross profit margin (“GP margin”) improved 0.5 ppt Y-o-Y from 32.3% to 32.8%. The higher revenue and GP margin resulted in an increase of 12.3% in gross profit Y-O-Y from $14.1m to $15.9m. • Gross pr
Slide 11: Other income, Operating Expenses
Other income, Operating Expenses Nera Telecommunications Ltd Other operating income • The lower other operating income for Q2 2015 and 1H 2015 was mainly due to absence of exchange gain for the respective periods. Distribution and Selling expenses • Distribution and selling expenses increased 6.3% (
Slide 12: Profit after tax
Profit after tax Nera Telecommunications Ltd Y-o-Y = -13.1% Y-o-Y = -33.8% Y-o-Y = +14.3% • PAT for Q2 2015 registered an increase of 14.3% YOY mainly due to higher gross profit and lower taxes, partially offset by lower other operating income, higher operating expenses and exchange loss. • PBT for
Slide 13: Financial Positions
Financial Positions Nera Telecommunications Ltd • Borrowings ‒ As of 30 June 2015, S$10.6m of loan had been drawn. • Warranty provision, approximately S$3.8m • Cash position of S$18.3m as of 30 June 2015 For Q2 2015 and 1H 2015, the decrease in cash and cash equivalents of $6 million was mainly due
Slide 14: Interim Dividend
Interim Dividend Nera Telecommunications Ltd The Board is pleased to recommend an interim dividend as follow : Name of Dividend : Interim (one-tier) Dividend Type : Cash Dividend Amount per Share : 2.5 cents Tax Rate : Tax exempt Date payable : 28 August 2015 14
Slide 15: Outlook
Nera Telecommunications Ltd Outlook 15
Slide 16: Overall Nera Telecommunications
Overall Nera Telecommunications Nera Telecommunications Ltd • The Group’s business comprises two main business segments, namely Telecommunications and Infocommunications. • In 1H 2015, the Group secured Infocomm approximately $125.6 millions in Network Infrastructure order intake, a significant incr
Slide 17: Telecommunications Segment
TELECOMMUNICATIONS SEGMENT Nera Telecommunications Ltd BA : Wireless Infrastructure Networks (“WIN”) • Competition in the wireless infrastructure network market is expected to remain intense as mobile operators continue to demand for lower capex and opex costs, and introduce new revenue streams. • I
Slide 18: Infocomm Business Segment
INFOCOMM BUSINESS SEGMENT Nera Telecommunications Ltd • The Infocomm business segment Infocomm Network Infrastructure comprises two business areas, namely Network Infrastructure and Payment Solutions. • The Group’s Infocomm business segment managed to secure approximately $81.5 million in order in-
Slide 19: Infocomm: Network Infrastructure
Nera Telecommunications Ltd • Competition in the Network Infrastructure business area remains high and very fragmented with local resellers, distributors and system integrators as well as some INFOCOMM global equipment vendors competing in the various market verticals. BA : Network • In 1H 2015, the
Slide 20: Infocomm: Payment Solutions
Nera Telecommunications Ltd INFOCOMM • Competition in the payment industry is very fragmented with many local BA : Payment players offering various payment products and services to banks, financial Solutions institutions and retailers. • In 1H 2015, the Group’s Payment Solutions business area manage
Slide 21: Order in-take summary
Order in-take summary Nera Telecommunications Ltd Y-o-Y = +20.6% Y-o-Y = Y-o-Y = Y-o-Y = +19.6% +12.3% +35.8% 21
Slide 22: www.neratel.com.sg
Nera Telecommunications Ltd www.neratel.com.sg 22
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