Hutchison Telecommunications Hong Kong Holdings Limited · HKEX:215

Hutchison Telecommunications Hong Kong — H1 2013 Earnings Presentation

31 slides from Hutchison Telecommunications Hong Kong's earnings presentation, Jul 31, 2013

  1. Slide 1: 2013 Interim Results Presentation

    Hutchison Telecommunications Hong Kong Holdings Limited (Stock Code: 215) 2013 Interim Results Presentation 31 July 2013

  2. Slide 2: Disclaimer

    Disclaimer These materials have been prepared by Hutchison Telecommunications Hong Kong Holdings Limited (HTHKH) solely for use at this presentation and have not been independently verified. No representations or warranties, express or implied, are made as to, and no reliance should be placed on, th

  3. Slide 3: Business Performance

    Business Performance

  4. Slide 4: Highlights

    Highlights 2013 1H 2012 1H (Restated) HK$ millions HK$ millions Consolidated Turnover 6,149 6,730 -9% Consolidated EBITDA 1,471 1,440 +2% Consolidated EBIT 820 795 +3% Net Profit1 572 562 +2% Earnings per share 11.87 HK cents 11.66 HK cents +2% Interim Dividend per share 6.25 HK cents 6.05 HK cents

  5. Slide 5: Turnover

    Turnover Consolidated turnover 6,000 4,144 4,221 4,335 4,000 HK$ m 2,509 1,874 1,814 2,000 Hardware revenue Service revenue 0 FY 2011 FY 2012 FY 2013 FY 2011 1H FY 2012 1H FY 2013 1H 1H 1H 1H Mobile business turnover Fixed-line business turnover 4,000 2,000 1,927 2,732 1,725 2,679 2,509 2,638 1,653

  6. Slide 6: Mobile

    a WO) Ce) > 2 poHeIed Mobile

  7. Slide 7: Quality customer base

    Quality customer base Total subscribers* 3G+4G LTE Postpaid subscribers* 4,000 3,784 3,600 70% 3,642 3,353 % 3G+4G LTE postpaid 61% 55% customers 47% 1,926 ’000 ’000 2,365 2,872 1,795 2,000 3,413 1,800 1,642 35% 2,014 765 995 1,172 988 770 877 800 754 371 0 0 0% FYFY 2011 2011 1H FYFY 2012 2012 1H F

  8. Slide 8: ARPU

    ARPU  Steady growing ARPU Blended Postpaid Gross ARPU* 300 256 258 HK$ / month 238 225 150 FY2011 FY 20111H FYFY 2012 2012 1H FYFY 2013 2013 1H 1H 1H 1H * Include HK and Macau 7

  9. Slide 9: Churn

    Churn  Low and stable Postpaid Churn* 1.9% 2.0% 1.8% Percentage (%) 1.0% 0.0% FYFY2012 20121H FYFY 2013 2013 1H 1H 1H * Include HK and Macau 8

  10. Slide 10: Fixed-line

    Fixed-line

  11. Slide 11: International & Local Carrier market

    International & Local Carrier market 55% Contribution to fixed-line revenue HGC global reach  International service • International Private Leased Circuit (IPLC) • Global Ethernet Private Line (GEPL) • Internet Protocol Virtual Private Network (IPVPN)  Local data service • Metro Ethernet • DWDM Lo

  12. Slide 12: Corporate and SME market

    Corporate and SME market  Solid market position 26% Contribution to fixed-line revenue Market penetration in various sectors 100% 94% 95% 90% 90% 80% 80% 60% 40% 20% 0% HK HK Public Hang Seng Top 10 Top 10 Government Hospitals1 Index Investment HK licensed Departments1 Constituents1 Banks (by Banks

  13. Slide 13: Residential market

    Residential market 16%  70% HK homepass  Launched 1G FTTB in 2010  Full range home entertainment offerings Contribution to fixed-line revenue  Home cloud 12

  14. Slide 14: Data centre business and others

    Data centre Expertise business in cloud and others computing  Expanding tier 3+ grade data centre facilities 3%  Teaming  up withITindustry One-stop solutionleaders to deliver provider one-stop solution Contribution to fixed-line revenue  Full range of cloud computing services  Joint Venture wi

  15. Slide 15: Financial Overview

    Financial Overview

  16. Slide 16: Financial Highlights

    Financial Highlights (Restated) FY2012 1H FY2013 1H HK$m HK$m Turnover 6,730 6,149 -9% Cost of inventories sold (2,369) (1,668) Staff costs (352) (373) Customer acquisition costs (331) (364) Other operating expenses (2,238) (2,273) EBITDA 1,440 1,471 +2% Depreciation and amortisation (645) (651) EBI

  17. Slide 17: Turnover – mobile business

    Turnover – mobile business Mobile service revenue Mobile hardware revenue 3,000 3,000 2,732 2,509 2,679 2,638 2,000 1,874 1,814 HK$ millions HK$ millions 2,250 1,000 1,500 0 FYFY 2011 2011 1H FY 2012 FY 2012 1H FY 2013 FY 2013 1H FYFY 2011 2011 1H FYFY 2012 2012 1H FYFY2013 20131H 1H 1H 1H 1H 1H 1H

  18. Slide 18: Quality customer base

    Quality customer base HK Total Subscribers HK Postpaid Subscribers 4,000 3,370 2,400 3,217 1,831 1,834 2,967 1,812 ’000 ’000 2,000 2,014 2,449 3,000 1,200 1,500 1,638 1,770 953 768 64 0 370 312 193 FY 2011 FY 2012 FY 2013 0 FY 2011 1H FY 2012 1H FY 2013 1H FY 2011 FY 2012 FY 2013 1H 1H 1H FY 2011 1H

  19. Slide 19: Turnover – mobile service revenue

    Turnover – mobile service revenue 1H FY 2012 1H FY 2013 Total service revenue: Total service revenue: HK$2,732m HK$2,638m Roaming Roaming data data 8% 10% Roaming Voice Local data Roaming 15% non-data Local data 37% 17% Residential 42% 20% Local Local non-data non-data 40% 31% Total Data Revenue: 45

  20. Slide 20: Mobile data

    Mobile data  Robust roaming data growth Local data Roaming data 1,500 300 +18% 249 +9% 1,114 1,022 211 HK$ millions HK$ millions +49% 853 +20% 142 750 150 0 0 FYFY 2011 2011 1H FYFY 2012 2012 1H FY2013 FY 20131H FYFY 2011 2011 1H FYFY 2012 2012 1H FY 2013 FY2013 1H 1H 1H 1H 1H 1H 1H 19

  21. Slide 21: Turnover - Fixed-line business

    Turnover - Fixed-line business 1H FY 2012 1H FY 2013 Total revenue: Total revenue: HK$1,725m HK$1,927m Others1 3% Others1 5% Residential Residential 16% 17% International & International & Local Carrier Local Carrier Corporate & 53% Corporate 55% Business & Business 25% 26% 1 Others include revenue

  22. Slide 22: Key cost items

    Key cost items  Cautious and well-controlled Cost of inventories sold Key cost items 4,000 4,000 3,661 3,544 3,566 561 16% 645 18% 651 18% HK$ millions HK$ millions 2,369 331 364 10% 569 16% 9% 352 10% 373 10% 1,792 307 9% 2,000 1,668 2,000 65.3% 64.9% 2,107 59% 2,238 63% 2,273 62% 65.0% 0 0 FY 201

  23. Slide 23: Profitability

    Profitability  Earnings on growth track Net profit* Earnings per share 800 15 11.66 11.87 562 572 10.25 494 10 HK cents HK$ millions 400 5 0 0 FY 2011 1H (Restated) FY 2012 1H FY 2013 1H FY 2011 1H (Restated) FY 2012 1H FY 2013 1H FY 2011 FY 2012 FY 2013 FY 2011 FY 2012 FY 2013 1H 1H 1H 1H 1H 1H *

  24. Slide 24: Capex investment

    Capex investment Consolidated Capex  Disciplined and demand-driven 800 30% % to service revenue 567 562 464 HK$ m 400 15% 13.6% 13% 13% 11% 0 0% FY 20111H FY 2011 FY2012 FY 20121H FY2013 FY 20131H 1H 1H 1H Mobile Capex Fixed-line Capex 400 20% 400 30% 326 % to service revenue % to service revenue 2

  25. Slide 25: Liquidity

    Liquidity EBITDA less CAPEX 1,200 873 909 HK$ millions 774 800 400 0 (Restated) FY 2011 1H FY(Restated) 2012 1H FY 2013 1H FY 2011 FY 2012 FY 2013 1H 1H 1H 24

  26. Slide 26: Strong financial position

    Strong financial position  Leverage ratio = 1.3 Net debt 5,000 40%  Net debt to net total capital 4,058 Net debt to net total 3,551 3,564 = 27% HK$ millions capital % 27% 2,500 25% 24% 20% 0 0% FY2012 FY 20121H FYFY 2012 2012 2H FYFY 2013 2013 1H 1H 2H 1H Net debt/ LTM EBITDA 2.0 1.3x 1.3x 1.2x 1.

  27. Slide 27: Dividend

    Dividend  Solid 75% annual payout Dividend per share 8.00 +3% 6.05 6.25 HK cents 4.00 0.00 FY 2012 FY 2013 FY 2012 1H 1H FY 2013 1H 1H 26

  28. Slide 28: Forward

    Forward

  29. Slide 29: Outlook

    Outlook Group  Best positioned as an integrated operator in HK  Solid foundation to foster growth  Disciplined network investment  Increase returns for shareholders Mobile Fixed-line  Embracing technology  Further collaboration with overseas carriers and leading ICT players  Customer focus 

  30. Slide 30: Q&A

    Q&A

  31. Slide 31: Thank You

    Thank You

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