DeClout Limited Corporate & Business Update 5 March 2018 - - PowerPoint PPT Presentation
DeClout Limited Corporate & Business Update 5 March 2018 - - PowerPoint PPT Presentation
DeClout Limited Corporate & Business Update 5 March 2018 Disclaimer This presentation does not constitute, or form any part of any offer for sale or subscription of, or solicitation of any offer to buy or subscribe for, any securities in
This presentation does not constitute, or form any part of any offer for sale or subscription of, or solicitation of any offer to buy or subscribe for, any securities in DeClout Limited (“DeClout”) in Singapore or any other jurisdiction nor shall it or any part of it form the basis of, or be relied on in connection with, any investment decision, contract or commitment whatsoever in this or any jurisdiction. This presentation may contain forward-looking statements that involve assumptions, risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. You are cautioned not to place undue reliance on these forward-looking statements, if any, which are based on the current view of management on future events. The information contained in this presentation has not been independently verified. No representation or warranty expressed or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Neither DeClout or any of its affiliates, advisers or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising, whether directly or indirectly, from any use, reliance or distribution of this presentation or its contents or otherwise arising in connection with this presentation. The past performance of DeClout is not indicative of the future performance of DeClout. The value of shares in DeClout (“Shares”) and the income derived from them may fall as well as rise. Shares are not obligations of, deposits in, or guaranteed by, DeClout or any of its affiliates. An investment in Shares is subject to investment risks, including the possible loss of the principal amount invested. This presentation has been prepared by the Company and its contents have been reviewed by the Company’s sponsor, SAC Capital Private Limited (“Sponsor”), for compliance with the relevant rules of the Singapore Exchange Securities Trading Limited (“SGX-ST”). The Sponsor has not independently verified the contents of this presentation. This presentation has not been examined or approved by the SGX-ST and the SGX-ST assumes no responsibility for the contents of this presentation, including the correctness of any of the statements or opinions made, or reports contained in this presentation The contact person for the Sponsor is Ms. Lee Khai Yinn (Tel: (65) 6532 3829) at 1 Robinson Road, #21-02 AIA Tower, Singapore 048542.
Disclaimer
Presentation Overview
- 1. Corporate Overview
- 2. FY2017 Financial Analysis
- 3. Key Objectives
- 4. Strategic Initiatives
- 5. Group Outlook
Corporate Overview
Who We Are
Global Builder of Next Generation Companies
1 2 3 4
IDENTIFY INCUBATE SCALE HARVEST
Identify disruptive trends to create new growth platforms Build and incubate businesses that are either aggregators, enablers or eco-system builders Scale to be global
- r regional
champions Harvest our businesses in 3 to 5 years
Our Eco-System
IT Infrastructure Sales and Services Vertical Domain Clouds
AGGREGATOR PLATFORM
BEAQON
ICT PLATFORM
Telco, Network Infrastructure and Security
AGGREGATOR PLATFORM
PROCURRI
AGGREGATOR PLATFORM
Data Centre Equipment and Lifecycle Services
vCARGO CLOUD
E-LOGISTICS & E-TRADE PLATFORM
Trade Facilitation, Cargo Community, e-Commerce
Accelerator
Incubation and Fund Raising Facilitation
Fintech, Cyber Security, Smart Logistics and Data Analytics
DECLOUT INVESTMENTS
FY2017 Financial Analysis
FY2017 Financial Analysis
- FY2017 saw an absence of fresh “harvests” and recorded a S$16.4m
net loss attributable to owners of the company
- A one-off S$4.9 million downward adjustment for total consideration
received for the divestment of Acclivis
- Corous360 recorded S$5.0 million losses and restructuring of Corous360
led to lower revenues and one-off charges of S$6.6m
- DeClout’s share of losses in Procurri recorded a negative swing of
S$3.9m from FY2016 to FY2017
- Excluding total write-offs, non-recurring losses and gains of $11.5m, the
Group would have recorded operational losses of $4.9m instead
One-off downward adjustment from sale of Acclivis
(4.9) (4.9) (6.6)
Corous360
- ne-off restructuring-
related costs
S$16.4m
losses attributable to owners of the company
S$4.9m share of
- perational losses
S$11.5m one-off losses
Breakdown of
FY2017 Losses Attributable to Owners of the Company
(1.3) 3.5 (1.1) (1)
Corporate
Total (4.9) (5.0)
Breakdown of
Share of Operational Profit/(Losses) ‘million
Key Objectives
Strategic Direction Post-FY2017
Strengthen foundation and accelerate corporate recovery through existing portfolio companies Shareholder value may be better enhanced in future “harvests”; through possible in-specie distribution to shareholders, corporate actions or recycling capital to incubate more portfolio companies Seeding future growth
Strategic Initiatives
Four Strategic Initiatives
Sharpen Focus of Competencies; Consolidate and Strengthen Foundation Capitalise on Existing Data Opportunities to Expand Revenue Streams Accelerate DeClout Investments and Identify Complementary Opportunities Improve Corporate Cost Efficiencies
01 02 03 04
Strategy #1 Sharpen Focus of Competencies; Consolidate and Strengthen Foundation
Neutral Hosting Services
Triple Play Services
for Mixed Development Buildings
Build Own Lease
we provide
TECHNOLOGY
we invest in
CAPEX
we provide
SERVICES
Capitalise on our existing technology Relieve CAPEX constraints from telecom operators Offers steady source of recurring income
Help facility owners and operators take control and optimise capex:
Security Data Voice Video Cellular WiFi
Building a Strong Foundation Beaqon
Strong order book provides predictable source of income
Order Book
(as at 31 Jan 2018)
S$45 million
Excluding Neutral Hosting Services
3 Increasing security awareness against physical (homeland) and cyber threats 1 ICT convergence create high demand infrastructure deployment 2 IoTis leading to rapid growth in AI 4
Growth drivers
Building a Strong Foundation Beaqon
Favourable future-proof business model which harnesses new technologies and fast-evolving trends
Convergence
- f IT, Voice and
Data
Kentrade Insurance for Kenya
CamelONE deployed as Information Exchange Hub in selected CAREC countries
E-logistics backend for Tasty Singapore in Shanghai Connectivity solution to connect to ASEAN Single Window for Ministry of Commerce in Cambodia Singapore Cambodia China Mauritius Kenya Uganda Rwanda Burundi Tanzania Kazakhstan Azerbaijan Georgia
Import Export
S$113b
GMV1 2017
S$69b S$44b
Total
1
Deployed in 12 countries through CamelONE
2
Fully operational
3
Implemented CamelONE with ADB, USAID, Trademark EAC
Creating Network of Trade Nodes …
11%
- f Singapore’s
total import & export in 2017
Building a Strong Foundation vCargo Cloud
1 GMV - Gross Merchandise Volume
The Digital Silk Road
1
Geographical Locations (Connectivity)
2
Technology
3
Trade Volume (Transaction)
What we are building…
Why the Triangle
- Untapped/under-tapped market
- Aligned with China’s Belt and Road Initiative (OBOR)
- Inter-reinforcing trade relations
1
What we are going after…
GMV (% of Trade)
2
Fee per Transaction
3
Subscription
Building a Strong Foundation vCargo Cloud
Confidence in Procurri CEO Sean Murphy’s leadership and the execution of Procurri’s four strategies to return to profitability DeClout will work closely with Procurri’s management to deliver and unlock value to shareholders of both DeClout and Procurri
Building a Strong Foundation Procurri
Strategy #2 Capitalise on Existing Data Opportunities to Expand Revenue Streams
Capitalise on Existing Data Opportunities to Expand Revenue Stream
Enable data integration and use of new data sets to:
- Offer add-on services to capture and structure data for potential
applications
- Develop Data-as-a-Service revenue models through partnerships
- Build new business opportunities
Data
Digitalisation
Strategy #3 Accelerate DeClout Investments and Identify Complementary Opportunities
Seeding the Future
- DeClout Investments will spearhead efforts to accelerate its investments and
identify complementary opportunities to the Group
- Initiatives may include bolting on new competencies and acquiring talents to
monetise data opportunities
- DeClout Investments will intensify efforts to:
Co-invest with Singapore’s NRF (S$10m), private equity or venture capital firms Aim to make at least two investments in FY2018 Support ICT startups via SPRING Singapore’s Startup SG Accelerator scheme
Strategy #4 Improve Corporate Cost Efficiencies
DeClout will implement additional measures to reduce expenses further:
- Expects FY2018 corporate expenses to decline at least 20%
- Only reinstate compensation upon returning to profitability
Group CEO’s basic salary will be reduced by 40% in FY2018 Total basic salaries including Group CEO, senior mgmt. and managers will be reduced by 20% in FY2018 Right-sizing of certain departments by 1H2018 All staff salaries will be frozen
Cutting Costs Further
Group Outlook
Group Outlook
Beaqon
- FY2018 performance to improve significantly compared to FY2017
- Majority of S$45m order book to be recognised in FY2018
- Maiden contributions from higher-margin recurring income in neutral hosting services
vCargo Cloud
- To deploy CamelONE to at least 4 more countries to a total of 16 countries
- Increase total GMV handled to ~US$233 billion in FY2018
Procurri
- Expects to report a net profit in FY2018, which will contribute positively to DeClout’s
FY2018 performance
DeClout
Expects to reduce losses over the course of the year and return to profitability in FY2018:
- Does not expect significant further losses from Corous360 post-restructuring
- Absence of major impairments and exceptional items
- Further reductions in expenses
Thank You
Ian Lau WeR1 Consultants +65 6737 4844 ianlau@wer1.net Investor Relation Contact: