1Q05 Results. Des Althorp, co-chairman Giang Phung, CEO. (Bloomberg: DMX; Reuters: DMXT.SI)

Transcription

1 1Q05 Results Des Althorp, co-chairman Giang Phung, CEO (Bloomberg: DMX; Reuters: DMXT.SI)

2 Agenda Financial Results Operational Review Multimedia Strategy Des Althorp Giang Phung Des Althorp Giang Phung Q&A

3 Financial Results Des Althorp, co-chairman

4 1Q05 Results 1Q05 1Q04 Change (US$M) (US$M) Revenue % Gross Profit % Operating Profit % EBITDA % Profit before tax % Profit after tax % 1Q05 1Q04 Change Earnings per shares (US cents) %

5 Operating Ratios Improved Margins % of Revenue 1Q05 1Q04 Gross Margin 30% 30% Operating Margin 13% 11% Net Margin 12% 10%

6 Healthy Balance Sheet (US$M) 31/03/05 31/12/04 Fixed assets Intangible asset Inventory Account receivables Cash & cash equivalent* Shareholders equity * Plus pledged bank deposits DSO reduced by 2 days to 175

7 Cashflow 31/03/05 31/03/04 (US$M) (US$M) Operating 0.9 (2.0) Investing (3.9) 0.0 Financing 0.8 (3.5) Closing Generated approx. US$1m cash

8 Revenue by Geography Stronger % contribution from Malaysia SE Asia 17% NE Asia 83%

9 Revenue by Business Fixed Media 15% Mobile Media 9% Infrastructure 76%

10 Highlights of this Result Healthy Growth Cash Flow Positive (Operations) US$0.9M DSO improved by 2 days Revenue Growth 58% Gross Profit Growth 57% Operating Profit Growth 77% Net Profit Growth 94% Earnings per share growth 59%

11 Operational Review Giang Phung, CEO

12 Country Update China HK Steady growth DI business, new breakthrough contract in Transportation New strategic contract in DFM with CCN (Hainan) DM: China Mobile in three new provinces Lots of small DI security projects Developing digital fixed media business Malaysia Strong revenue contribution and order book Broadband deployment increases

13 Recent contract win Malaysia Telco Guangzhou MRT China Cable Network US$6.2M US$1.6M not disclose-able

14 Infrastructure Customers: Telco China Telecom Fujian China Telecom Ningbo China Telecom Zheijiang China Telecom Hubei China Telecom Shunde China Telecom Hunan China Telecom Guangdong China Telecom Anhui China Telecom Shaanxi China Telecom Jiangsu China Telecom Guangxi China Telecom Shanghai China Telecom Jiangxi China Telecom Xinjiang China Telecom Sichuan China Telecom Henan China Telecom Wenzhou China Telecom Guizhou China Netcom Fujian China Netcom Gansu China Netcom Qinghai China Netcom Zhejiang China Netcom Heilongjiang China Netcom Hangzhou China Unicom Beijing PCCW Diyixian Hutchison G.C CSL Hong Kong icare Hong Kong Hong Kong Broadband China Motion Telecom 4 Telcos in Malaysia

15 Infrastructure Customers: Enterprise Bank of China (Guangdong, Guangxi) Agriculture Bank (Wuhan, Jiangsu, Fujian, Hubei) ICBC Bank (Shanghai, Tianjin) China Construction Bank (Henan) Bank of Communications China Customs Huang Pu Customs China Southern Airlines Daqing Oil (China) Pingan Insurance Guangzhou University China Northern Airlines Beijing TV University Beijing Electronics University Zheijiang University China Tax authority China Power Henan Power Shangdong Water Suzhou Police Xian Aerospace Huaxia Bank Guangzhou MRT Kuohua Life United Asia Finance China Merchant Bank Wing Heng Bank Prudential Assurance Eagle Star Insurance Bank of East Asia Honeywell Hewlett Packard Automated System Limited China Light & Power Federal Express Jardine Office System Hospital Authority of HK HK Police HK Census HK ITSD HK Vocational Training Council HK Baptist University Government of HKSAR MTRC Corp (HK) Aviva Insurance Storm ISP Klang Valley Highway HK Post

16 Fixed Media Customers Shanghai WebTV Suzhou CATV CDB China CATV (Sichuan) Xinhua News Agency Macau Satellite CCN (Hainan) SARFT

17 Mobile Media Customers China Mobile Beijing China Mobile Henan China Mobile Hubei China Mobile Sichuan China Mobile Chongqing China Mobile Guangdong China Mobile Fujian China Telecom Guangdong China Mobile Anhui China Mobile Guangxi China Mobile Jiangsu

18 Market Update Digital Infrastructure Increase in Broadband service roll-out Broadband service termination IP/MPLS Challenge on management and security of IP network Monitor and analyze IP network traffic Locate the illegal service operators Security solution to protect their backbone network VoIP market has a strong uptrend Enterprises use VoIP internally Telcos provide hosted VoIP service to major accounts Telco migrates VoIP into NGN

19 Market Update (2) Digital Fixed Media PRC government understands positive impact of digitization of CATV on national economy Clear strategy and time-table Actively initiate and support trials of digitization Allow non-catv companies and foreign investment to participate State development bank: RMB5B, 2 years for network integration Facilitates the need of network integration and content exchange HK PCCW announcement New HDTV service based on IP at 8Mbps by year end

20 Market Update (3) Digital Fixed Media Content Providers CCN, SMG, BMG, CDM (CCTV) and CFG are DTV content providers certified by SARFT CDM (CCTV) and SMG are the largest media group in China, they ve obtained license to provide IPTV content Network Operators China Cable Network :The only national grade CATV operation in China,owns nation-wide fiber optic network and 8m end-users China CATV (Beijing Gehua) and China CATV (Shanghai Oriental):Each owns 3 million end-users and will become another 2 nation-wide CATV groups

21 China HK Outlook DFM: More activities with CCN, CDB, CDM and through them other CATV, trial of IP-TV solution DI Traffic analysis and network security projects, some e-gov. activities More activities in China Mobile, and Banking projects Digital Infrastructure project on network security Digital Fixed Media project activities Malaysia Pan-Asia Healthy pipeline, likely to exceed 1H05 budget Expansion in new territories 2Q05 Evaluating strategic technology partner to achieve fast track to market with unique competitive advantage via our Middleware Confident to meet guidance of Double revenue And profits over next two years Expect good result in 2Q05

22 Building Asia s Multimedia World Des Althorp, co-chairman Giang Phung, CEO

23 Digital video is here to stay! Relative Traffic Size Digital Video Data Voice (PSTN) Time Drivers for Digital Video CATV Broadband Mobile MPEG2 IP 3G Source: DMX Technologies Estimates

24 China s Multimedia Structure Legend: CATV: Cable TV Operators DDN: Digital Data Network 3G: Third Generation Mobile DTV: Digital Television IP-TV: Internet Protocol Television DVM: Digital Video Mobile Access DTV Providers Now: 115m analog 2008: 100m digital (Source: SARFT) CDM CATV CCN IP-TV BROAD BAND DDN 40,000Km Fibre Network SARFT BMG 2004: 24m ADSL subs. 2005: 45m ADSL subs. (Source: CCW) 3G SMG DVM CFG 2004: 380m GSM subs. 2008: 170m 3G subs. (source: CCID) Legend: SARFT: State Administration of Radio Film and Television CDM: China DTV Media CCN: China Cable Network BMG: Beijing All Media Group SMG: Shanghai Media Group CFG: China Film Group Media Content Providers

25 DMX Participation in China Multimedia World DTV Metropolitan area networks Broadband remote access Asynchronous Transfer Mode IP/MPLS Network Security systems Network Mgt System IP-TV BROAD BAND DDN DVM Access Providers Integrated Broadcast System Analog to digital conversion Video encoding and decoding MPEG 2 Transport Electronic Program Guide CATV Conditional Access System To protect contents Management, Security Customer care CDM CCN 40,000Km Fibre Network SARFT New Digital Broadcast System BMG 3G SMG MISC Web Portal, CRM IP Network CFG Media Content Providers

26 DMX s Customer Positioning Access Providers DTV China CATV (Suzhou) China WebTV (Shanghai) China CATV (Sichuan) CCN (Hainan) Macau Satellite CATV IP-TV BROAD BAND DDN 40,000Km Fibre Network SARFT 18 x China Telecom subsidiaries China Netcom Fujian China Netcom Gansu China Netcom Qinghai China Netcom Zhejiang China Netcom Heilongjiang China Netcom Hangzhou China Unicom Beijing 3G DVM China Mobile Beijing China Mobile Henan China Mobile Hubei China Mobile Sichuan China Mobile Chongqing China Mobile Guangdong China Mobile Fujian China Telecom Guangdong China Monile Anhui China Mobile Guangxi China Mobile Jiangsu China Digital Broadcast (CDB) China Cable Network (CCN) Xinhua Agency China DTV Media (CDM) CDM CCN BMG SMG CFG Media Content Providers

27 Content is the Key IP-TV Access Providers DTV BROAD BAND DDN DVM CATV 3G 40,000Km Fibre Network CONTENT IS KING SARFT CDM CCN BMG SMG CFG Media Content Providers

28 Addressable Business Segments China ( ) Digital Fixed Media US$3B CATV/Broadband Digital Mobile Media US$1.5B Digital Infrastructure US$2B Source: DMX Technologies, January 2005

29 Product offering for Operator Services Digital Fixed Media Digital Television (CATV) Interactive Television Movies/ DVDs High Definition TV Personal Video Recording Home Network Internet Access Voice over IP Online Games Music Digital Mobile Media Digital Television Interactive Television Home Network Internet Access Online Games Music Instant Messaging Digital Infrastructure IP backbone Metro-area network Broadband remote access Virtual Private Network Voice-over-IP Storage Area Network Network security Network Mgt System

30 DMX Digital Multimedia System Mobile MMC Middleware Digital (CATV) Television Interactive Television Movies/ DVDs High Definition TV Personal Video Recording Home Network Internet Access Voice over IP Online Games Music Digital Multimedia System Broadband HMC Middleware TV HMC: Home Media Centre MMC: Mobile Media Centre Cable & Satellite HMC Middleware

31 Benefits of DMX Multimedia Strategy Homogeneous strategy for DMX (DI,DFM,DMO), push- pull effect Transforming Analog TV Digital TV Driving Bandwidth requirements down via use of new H.264 standard Bridging Cable and Broadband opportunities Providing open architecture Multimedia Services to the operators for provisioning to consumer Enabling operators to provide any content to any providers via common Middleware Software to all providers (Cable/Broadband/Mobile) Enabling content to be in any format via HMC triple standard capability (MPEG2/WM9/H.264)

32 BroadcastAsia June 2005 (Singapore Expo) Mobile Headend Media Server MAX IPTV Headend Camera Multicast Switch Home Media Centre CATV Headend True IP 3G Network 512Kbps 100Mbps 3G Phone

33 Billion Dollar Baby Doubling Revenues and Profits over the next 2 years Q&A