fy2011 results briefing -...
TRANSCRIPT
FY2011 RESULTS BRIEFING
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FINANCIAL HIGHLIGHTS
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4Q11 Financial Highlights (YoY)
Revenue 12.6% US$101.7million
US$53.1million
Netprofit US$6.9million
Infrastructureenablinggroupsales
52.5%Digitalmediagroup
salesUS$48.2million
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‐8.4%
‐14.9%
FY11 Financial Highlights (YoY)
Revenue 24.1% US$335.7million
12.3% US$190.2million
11.5%Netprofit US$18.5million
17.3% US$72.4million
Infrastructureenablinggroupsales
42.6%Digitalmediagroup
salesUS$143.0million
Orderbook
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Revenue by Business Segments
164.8
25.4
113.1
29.9
2.5
FY11 Revenue (US$'m)
Infrastructure Solutions
Managed Services
Digital Media Solutions
Multimedia Software
New Media Services
Infrastructure Enabling56.7% of sales
Digital Media42.6% of Sales
New Media 0.7% of sales
149.2
20.2
78.2
22.1
0.9
FY10 Revenue (US$'m)
Infrastructure Solutions
Managed Services
Digital Media Solutions
Multimedia Software
New Media Services
Infrastructure Enabling62.6% of Sales
Digital Media37.1% of Sales
New Media 0.3% of sales
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Revenue by Geographical Segments
231.5
104.2
FY11 Revenue (US$'m)
China
Outside China
China69.0% of sales
Outside China31.0% of Sales
China76.6% of sales
Outside China23.4% of Sales
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Gross Profit & Margin TrendUS$’ million %
Stable margins as we balance market expansion from Digital Media andInfrastructure segments with high value contributions from Managed Servicesand Multimedia Software segments.
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Net Profit & Margin Trend
US$’ million %
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Healthy Cash PositionCategory FY11
US$ ‘000FY10
US$ ‘000
Net cash generated from (used in) operations
**(2,639) (24,828)
Net cash used in investing activities
(28,223) (50,003)
Net cash (used in) generated from financing activities
(2,693) 5,152
Cash at end of period 46,162 80,022
Net Cash 30,233 62,388
Structured deposits (Principal guaranteed, interest bearing) 35,337 33,289
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** Promissory note of US$3,826K discounted with bank as at 31 Dec 11 could not be utilized to offset AR. There was no “non‐recourse” term with bank.
Financial Highlights31 Dec 2011 31 Dec 2010
Turnover Ratio (days)
Inventory Turnover 15 16
Receivables Turnover 238/264 227 / 263
Payables Turnover 34 31
Cash Conversion Cycle 219/244 213 / 249
Return (%)
Return on Equity (%) 5.1% 4.5%
Return on Assets (%) 4.3% 3.9%
Liquidity Ratio (%)
Net Gearing (%) Net Cash Net Cash
Current Ratio (%) 536.6% 605.6%
** Total Collections for year :‐ US$288.3M (US$143.4M for FY2010 AR – 73.3% and US$144.9M for FY2011 Revenue –43.17%)
BUSINESS HIGHLIGHTSInfrastructure Enabling
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Gartner Forecasts 5% Annual Growthfor Global IT Spending till 2015
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Worldwide annual IT spending to grow by 3.7% to $3.8 trillion for 2012
More challenging macro-economic conditions may affect IT capital spending
IT spending may still be allocated to Cloud Computing, Network Security and IT Services
Forrester Expects Public Cloud to Reach Nearly $160 Billion by 2020
e=Forrester estimates. Source: Forrester Research
Total cloud market CAGR: 25%
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Focus to build expertise and skill sets as Cloud Enabler
Capitalize on strength in network security and software services to address enterprise market across Asia
Infrastructure Enabling Developments
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Specific team to target MNCs with total integrated solution and geographical coverage
Create more differentiated security & IT services
Contemplate selective geographical expansion
BUSINESS HIGHLIGHTSDigital Media Solutions
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China Network Convergence
CATV Market
Digital Cable Subscribers
Interactive Cable Subscribers
CATV Operators’ VAS Revenue
To reach 231M by 2015 (CAGR of 3.2%)
113M to 217M by 2015 (CAGR of 16%)
8.9M to 49M by 2015 (CAGR of 51.3%)
15M to 52M by 2016 (CAGR of 28.9%)
FMBC is already providing the push in CATV and IPTV
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Vision CEP – FMBC with a Difference
Vision TA –Targeted Behavioral Ad System
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Digital Media Developments ‐ CATV
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Capitalize on market leadership in CATV market to position Vision CEP and Vision TA as differentiated VAS for CATV operators
Continue in the on‐going migration from analog to digital subscribers roll‐out
Explore revenue-share model instead of pure license sales model
Digital Media Developments ‐ IPTV
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Position Vision CEP as VAS in IPTV market
Create service operation model with operators through differentiated VAS
Leverage on Cisco’s hardware to penetrate into market
BUSINESS HIGHLIGHTSNew Media Services
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DMX Mobile Solutions
DMX Mobile Solution Business
Enterprise Customers
D‐Smart SaaS Platform1. Mobile Point of Sale (POS)2. Warehouse Management System (WMS)
3. Mobile LBS & Workforce Management System
4. Mobile OA/SFA/CRM5. Mobile Device Management
6. Mobile File Sharing
Personal Subscribers
1. Security Navi Service2. Mobile Applications & Contents‐ Games‐ eBooks‐ Themes and Wallpapers‐ Fitness Management‐ etc.
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Enterprise Mobility Market Size
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Ovum expects China enterprise mobility revenues to steadily grow, exceeding US$4.1 billion by 2014.
Revenues include services such as SMS, push emails, mobile OA, mobile ERP, mobile CRM and mobile applications for specific industries
Estimated market size of DMX’s target services around US$1 billion
DMX role in Enterprise Mobile Solutions
Smart Devices
D‐Smart SaaS Portal
• Push Notification
• Enterprise Mobile IM
• Enterprise Contact
• Application Management
• Security Management
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D‐Smart Mobile Solutions & ServicesService
D‐Smart POS
D‐Smart WFM
D‐Smart Security
D‐Smart LBS
D‐Smart Handbook
D‐Smart SFA/CRM
Service Description
Secured 2 customers, 2 on
trial
Combination of mobile phone and bar code scanner is a solution that can help the enterprises to build real‐time sales and inventory management system.
Status
1 customer on trial, 1
contemplating
Combining location information with other functions such as text reporting, taking photos can help in managing mobile workforce in a systematic way.
To launch service in Mar
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Mobile Device Management (MDM) solution that secures, monitors, manages and supports mobile devices deployed across the enterprises..
1 customer on trial
Solution that collects location information, driving behavior and security status of the trucks and then report to the servers using communication module..
Launch Q2’12Solution for sharing and distribution of information such as documents, images, audio and video used in the company in smartphones and tablets.
Launch Q2’12Mobile applications include contact information, calendar, meeting scheduler, sales target, customer address, contract management, and etc.
Target Customers
Retail Shops & Department
Stores
Retail, Field Service & Insurance
Mobile Operators & Enterprises
Logistics & Machinery
Education & Other Industries
Any Enterprises
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New Media Developments ‐ Enterprise
Enterprise mobility market
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D-Smart platform - Increase service offerings to enterprises
Employ multi-channel sellingIncrease in direct sales staff to target specific industries including promotion of service to channels for non Japanese enterprises.Leverage on KDDI sales force for Japanese enterprises
New Media Developments ‐ Consumer
Mobile Internet market
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Target China Telecom with child security services (Security NaviServices)
Launch Android applications from KDDI for China Mobile “Mobile Market”
Not high expectation due to current business model
DMX Security Navi Service Platform
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DMX Child Phones
DMX BIN01
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Security Navi Service Update
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DMX Security Navi PlatformDeployed in 2 provinces in China TelecomWill start service operation in March in both provinces
Promotion to local kindergarten and primary school students
DMX CDMA child phone BIN01Passed both the CTA test of MIIT and test in China Telecom Beijing Research InstituteOne of the first batches of child phones certified to be used in trial sites of LBS project of China Telecom “Parent and School Communication Platform”
Security Navi Service Update
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LBS project of CT “Parent and School Communication Platform”7 trial sites starting in March 123 months trial periodTarget subscribers around 20,000 within trial period
FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015
Infrastructure Enabling Digital Media Total
50% of revenue from Digital Media
50% of revenue from Infrastructure Enabling
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Potentialgame‐changer New Media
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5‐Year Growth Outlook
DMX Technologies Group Ltd For more information and media enquiries, please contact:Mr Kelvin ChoiGroup Marketing DirectorTel: (852) 2960 3646Email: [email protected]
Financial PR Pte LtdInvestor Relations ConsultantsGabriel Tan [email protected] Zhang [email protected]: (65) 6438 2990
Question & Answer
Thank you for your time.
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