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Computime
Corporate Presentation Stock code: 320
December 2018
By attending this presentation, or by reading the presentation materials, you agree to be bound by the following limitations:
The information in this presentation has been prepared by representatives of Computime Group Ltd. (the “Company”) for use at investor presentations by the
Company.
No representation or warranty, express 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 herein. Neither the Company nor any of the Company’s advisors or representatives shall have any responsibility or liability
whatsoever (for negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with
this presentation. The information set out herein may be subject to updating, completion, revision, verification and amendment and such information may change
materially.
This presentation is based on the economic, regulatory, market and other conditions as in effect on the date hereof. It should be understood that subsequent
developments may affect the information contained in this presentation, which neither the Company nor its advisors or representatives are under an obligation to
update, revise or affirm.
The information communicated in this presentation contains certain statements that are or may be forward looking. These statements typically contain words
such as "will", "expects" and "anticipates" and words of similar import. By their nature forward looking statements involve risk and uncertainty because they
relate to events and depend on circumstances that will occur in the future. Any investment in securities issued by the Company will also involve certain risks.
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Against the background of these uncertainties, readers should not rely on these forward-looking statements. The Company assumes no responsibility to update
forward-looking statements or to adapt them to future events or developments.
This presentation and the information contained herein do not constitute or form part of any offer for sale or subscription of or solicitation or invitation of any offer
to buy or subscribe for any securities of the Company. The securities of the Company have not been and will not be registered under the U.S. Securities Act of
1933, as amended (the "Securities Act"), and may not be offered, sold or delivered within the United States absent registration under or an applicable exemption
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This presentation and the information contained herein are being furnished to you solely for your information and may not be reproduced or redistributed to any
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No invitation is made by this presentation or the information contained herein to enter into, or offer to enter into, any agreement to purchase, acquire, dispose of,
subscribe for or underwrite any securities or structured products, and no offer is made of any shares in or debentures of a company for purchase or subscription,
except as permitted under the laws of Hong Kong.
Who We Are
A success Hong Kong story in transforming from traditional
manufacturing into a global technology enterprise
4
Opens 1st factory in
Guangzhou, China
Opens offices in Europe
& Japan
Listed on
Hong Kong Stock
Exchange
(Stock code: 320)
40th Anniversary
1980 1982 2000 2004 2006 2014 1974
Wins Bloomberg “Listed
Enterprises of the Year” &
Economic Digest “HK
Outstanding Enterprises”
awards
2018
Launches SALUS
Controls Expands into US
Founded in Hong
Kong
2017
Wins Gold at HK ICT
Awards & Technological
Achievement Award at
HKAI; Relocates to
Science Park
Computime | Corporate Presentation | December 2018
Factory-centric
• OEM
• Commodity
• Cost focus
Technology-driven
• Connected solutions
• Branded products
• CMS with smart
enhancement
Strong
Corporate
Foundation
6
Competitive Advantage
Long track
record of quality
and reliability
Continuous innovation
through superb R&D and
engineering capabilities
Extensive
multi-channel global
distribution network
Strong
manufacturing
heritage with full
scope testing
expertise
Experienced
management
team with
diversified
expertise
Computime | Corporate Presentation | December 2018
7
Over 40+ years of track record has earned us…
• Reputation for quality, reliability and innovation
Able to win increasingly strong partnership with customers not relying only on
price-competitiveness
Some of our biggest customers are among the largest global multinational
companies with well-known brands
• Loyal customer base and increasing market penetration
Majority of our customers have been doing business with us for more than 10
years with widened scope of strategic collaboration
Continuous expansion into multi-channel distribution network across the globe
Computime | Corporate Presentation | December 2018
Strong manufacturing heritage with full scope testing
expertise
• Invested in internal reliability labs to perform a comprehensive range of quality
assurance tests across 3 categories (reliability, electromagnetic compatibility, and
safety & regulatory), e.g.:
Temperature &
humidity
Optical microscope
PCB Micro-
sectioning
Stress Thermal shock NEMA chamber Vibration Ionic
contamination
Salt fog EMC immunity
Electrostatic
discharge
Energy Dispersion
Fluorescence X-
Ray Spectrometer
8 Computime | Corporate Presentation | December 2018
9
Experienced management team with diversified expertise
Auyang Ho Founder, Chairman, and Executive
Director
Founded Computime with a vision of
creating a first-class technology company
to explore new markets
King Owyang Chief Executive Officer and Executive
Director
40 years experience in electronics and
semiconductor industries. Global
managerial experience and proven track
record of leading multinational companies
to increased and sustainable growth
Matthew Au Chief Operating Officer
25 years of finance and accounting
experience in multinational US-listed
enterprises
Wai Leung Ha Executive Vice President of
Technologies
30 years experience in engineering,
research and development. Instrumental
in developing the Company’s R&D
capabilities
George Poon Chief Financial Officer
Over 20 years of corporate finance,
commercial and strategic development
experience in leading conglomerates and
multinational listed companies
Computime | Corporate Presentation | December 2018
Technology Core Competencies
Extensive R&D capabilities with unique competitive
advantages in areas of Cloud and Analytics & HVAC
Cloud and Analytics
Radio Frequency
Advanced User
Interface and User
Experience
Advanced Standard Protocol
Home Automation
Heating, Ventilation &
Air Conditioning
(“HVAC”)
11 Computime | Corporate Presentation | December 2018
Definite competitive edge in our cloud and analytics
Intelligent Layer – Machine Learning
Big Data Fault
Detection
Predictive
Maintenance
Energy
Saving
Adaptive Algorithm
Application Layer
• Comprehensive set of intelligent modules enriching our smart solutions
Cloud database
support
12 Computime | Corporate Presentation | December 2018
IoT specific cloud technologies applied in our
smart solutions
13
• Scalable and expandable
• Supporting home automation
rules with distributed rule
engines residing in gateway
• Supporting analytics
• Supporting multiple gateways
Computime | Corporate Presentation | December 2018
Capturing Growth Potentials
15
Computime is well-equipped with strong position to tap
into the IoT industry with huge addressable market size
• Increasing popularity of cloud
technology further fuels advancements in
connected device
• Estimated number of connected IoT
devices1:
2017 2030
27 billion devices
125 billion devices
1) Source: IHS Markit
2) Source: MarketsandMarkets
Increasing Use of Smart Home Devices
• Rapid growth in use of connected
devices, including thermostats, sensors
and alarms to control aspects of living
environment
• Smart home market by 20232
1.5 billion devices
16% CAGR
(2017-2023)
Cloud Capabilities and IoT
Computime | Corporate Presentation | December 2018
Tremendous opportunities in applying IoT technologies
in multiple market segments
16
Smart Energy
Smart Home
Intelligent
Building
Healthcare
Intelligent
Community
Tele Diagnosis
Intelligent
Agriculture
Asset Management
Tracking
Intelligent
Manufacturing Launched and
well-positioned
IoT Unique
competitive
edge in HVAC
control, smart
solutions and
wireless
technologies
Development
in progress
Computime | Corporate Presentation | December 2018
Innovative and award-winning technologies
continuously launched into market
Smart home winning entry
INNOVATION
• First-to-market IoT solution for home
comfort
• Compatible with all major
heating/cooling systems
• Home automation rules through
cloud-based distributed rule engine
BENEFITS
• 25% energy saving
• Predictive maintenance
• Peace of mind
FUNCTIONALITY
• Intuitive app
• Voice control
• Flexibility
MARKET
• Address a fast
growing market of
>US$14b1
QUALITY
• Computime track record
• Internal reliability lab
• UL, FCC, ISO
1) Source: IHS (estimated smart home device revenue in 2017)
17 Computime | Corporate Presentation | December 2018
18
Industry leading hydronic heating system control
leveraging our cloud and analytics capabilities
Hydronic
radiator
Smart thermostatic
radiator valve equipped
with self-learning
optimization
Gateway
Big data analytics on
heating system utilizing
past performance patterns
• Industry leading
performance in
energy efficiency
• Enhanced user comfort
KEY BENEFITS
Computime | Corporate Presentation | December 2018
19
First-to-market industry leading Auto Balancing
Actuator for underfloor heating
Automatically balances and optimizes system
performance, eliminating uneven heating and
increasing comfort and efficiency in the home
UFH Installer
Quick to
install & less
service calls
Property Owner
Efficient
system
optimizing fuel
consumption
Property Resident UFH Manufacturer
Constant
comfortable
temperature
Less user
complaints
Computime | Corporate Presentation | December 2018
20
Contract Manufacturing Services (CMS)
• Focus: Products and total solutions within
IoT space
• Nature: Technology and market-driven,
design intensive, need innovation, fast
moving business decision and agile
execution
• Focus: Driving profitability, key account
management, factory operational efficiencies
and cost savings
• Nature: Cost sensitive, service driven,
attention to details, consistency and
discipline in business execution
Smart Solutions (SS)
Connected Solutions (Non-branded)
SALUS (Branded) • Businesses
Catalysts for growth:
• Expanded into new sales channels (e.g.
insurance companies; utilities companies)
• Wider application of smart technologies into
different market segments (e.g. elderly care;
smart buildings; smart vehicles)
• Large scale projects/products (e.g. large
solution providers)
Catalysts for growth:
• Continuous improvement in productivity and
operating efficiency
• Smart enhancement – adding connected
features to products especially high growth
categories (e.g. health & fitness; medical;
smart home; power tool; POS)
Realigned business into 2 segments to best leverage
core competencies and resources
Computime | Corporate Presentation | December 2018
21
Why Invest in Computime
Strong financial track record
• Net profit 5-year CAGR1: 39.0%
• Net cash position2: HK$40.3 million
Attractive returns and valuation
• Dividend yield3: 9.0%
• Total return since FY13/144: 186.1%
• P/E ratio3: 7.1 2
1
Great growth potentials to be realized
• Well-positioned to capture the IoT trend through expertise in
HVAC control, smart solutions and wireless connectivity
• Expanding into multiple sales channels and industry segments 3
1 FY13/14 – FY17/18 2 As at 30 Sep 2018
3 As at 30 Nov 2018 4 Source: Bloomberg (dividend reinvested, investment period from 2 Apr 2013 to 30 Nov 2018)
Computime | Corporate Presentation | December 2018
Key Financial
Summary
23
Revenue and Net Income
3,868 3,684
3,522
3,164
126 126
98
76
2,814
34
Revenue (HK$ m) Net Profit (HK$ m)
Computime | Corporate Presentation | December 2018
1,912
1,532 54
25
24
Financial Position
Cash and Cash Equivalents (HK$ m)
FY14/15 FY15/16 FY16/17 FY17/18 1HFY18/19
40.8% 36.4%
20.1%
772
640
39.2%
544
730
Debt (HK$ m)
FY14/15 FY15/16 FY16/17 FY17/18 1HFY18/19
265 276
267 251
Computime | Corporate Presentation | December 2018
273 232
25
Dividend and Returns
Dividend Per Share (HK cents) and Payout Ratio
FY13/14 FY14/15 FY15/16 FY16/17 FY17/18
7.5
Dividend Per Share
4.5
2.0
5.8
48.8% 48.9% 49.6% 49.7% 49.8%
Payout Ratio
• Stable payout ratio
~50%
• Dividend yield1
9.0%
• Total return since FY13/142
186.1%
1 As at 30 Nov 2018
2 Source: Bloomberg (dividend reinvested, investment period from 2 Apr 2013 to 30
Nov 2018)
7.5
Computime | Corporate Presentation | December 2018
Thank You
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