Ck Hutchison Holdings Ltd · HKEX:1
Ck Hutchison — FY2016 Earnings Presentation
35 slides from Ck Hutchison's earnings presentation, 2017
Slide 1: 2016 Annual Results Operations Analysis
2016 Annual Results Operations Analysis
Slide 2: Disclaimer
Disclaimer Potential investors and shareholders of the Company (the “Potential Investors and Shareholders”) are reminded that information contained in this Presentation comprises extracts of operational data and financial information of the Group for the year ended 31 December 2016, and of certain c
Slide 3: Performance in 2016
Performance in 2016 Change Change in vs 2015 local 2016 Pro forma (1) currency Total Revenue (2) HK$372.7 billion -6% -2% Reported EBITDA (2) HK$92.0 billion - +6% Reported EBIT (2) HK$62.4 billion +1% +7% Recurring Earnings (3) HK$33.3 billion +4% +11% Reported Earnings (4) HK$33.0 billion +6% Recu
Slide 4: Business & Geographical Diversification
Business & Geographical Diversification 2016 Total Revenue : HK$372,686 million Decrease 6% in reported currency (Decrease 2% in local currencies) By Geographical Location By Division 6%* 9% 22% 41% 8% 14% 4
Slide 5: Business & Geographical Diversification
Business & Geographical Diversification 2016 Reported EBITDA: HK$91,980 million Flat in reported currency (Increase 6% in local currencies) By Geographical Location By Division 2%* 13% 25% 16% 10% 34% 5
Slide 6: Business & Geographical Diversification
Business & Geographical Diversification Reported EBITDA EBITDA growth: Flat Local currency growth: +6% HK$ millions 1,124 2,649 97,337 ( 634 ) ( 304 ) 1,615 109 474 211 ( 5,357 ) 92,093 91,980 2015 Ports & Retail Infrastructure Husky 3 Group HTHKH HAT F&I Foreign 2016 Pro forma(1) Related Energy Eur
Slide 7: Business & Geographical Diversification
Business & Geographical Diversification 2016 Reported EBIT: HK$62,414 million Increase 1% in reported currency (Increase 7% in local currencies) By Geographical Location By Division 2%* 12% 26% 19% 5% 36% 7
Slide 8: Business & Geographical Diversification
Business & Geographical Diversification Reported EBIT EBIT growth: +1% Local currency growth: +7% HK$ millions 960 1,959 66,349 ( 664 ) ( 371 ) 1,182 789 387 28 ( 3,935 ) 62,079 62,414 2015 Ports & Retail Infrastructure Husky 3 Group HTHKH HAT F&I Foreign 2016 Pro forma (1) Related Energy Europe and
Slide 9: European Contribution
European Contribution EBITDA and EBIT Total EBITDA(1): HK$92.0 billion UK Europe (ex-UK) Total EBIT(1): HK$62.4 billion UK Europe (ex-UK) Note (1): EBITDA and EBIT excludes (i) non-controlling interests’ share of results of HPH Trust and (ii) profits on disposal of investments & others. Note (2): Al
Slide 10: European Contribution
European Contribution UK Focus Total EBITDA(1): HK$92.0 billion Ports • Over 90% of containerised cargo is gateway traffic • Approximately 90% of containerised cargo relates to non-European trade • Currently 14 out of 16 Asia-North Europe loops call at UK port and this trend is expected to continue
Slide 11: European Contribution
European Contribution UK Focus GBP Currency Sensitivity 10% depreciation against HKD(2) HK$ billion EBITDA 3.1 Cash & Cash Equivalent 1.0 Gross Debt 6.5 Net Debt 5.5 Net Assets 11.8 Gross Debt / Annualised EBITDA (times) Flat Net Debt Ratio (%-point) 0.3% Note (1): All percentages in the pie charts
Slide 12: European Contribution
European Contribution Europe (ex-UK) Focus Ports Total EBITDA(1): HK$92.0 billion • Rotterdam in Netherlands is the busiest port in Europe and is the 12th busiest port in the world • Majority of the containerised cargo traffic are gateway traffic with Asia and the Americas • BEST at Barcelona, a sem
Slide 13: European Contribution
European Contribution Europe (ex-UK) Focus EURO Currency Sensitivity 10% depreciation against HKD(2) HK$ billion EBITDA 1.5 Cash & Cash Equivalent 1.2 Gross Debt 8.0 Net Debt 6.8 Net Assets 2.2 Gross Debt / Annualised EBITDA (times) Flat Net Debt Ratio (%-point) 0.7% Note (1): All percentages in the
Slide 14: Ports and Related Services
Ports and Related Services 2016(1) 2015(1) Change % Change % HK$ millions HK$ millions in local currency Total Revenue 32,184 34,009 -5% - EBITDA 11,639 11,964 -3% +2% EBIT 7,567 7,957 -5% - Throughput 81.4 million TEU 83.8 million TEU -3% NA Throughput declined by 3% to 81.4 million TEU in 2016,
Slide 15: Ports and Related Services
Ports and Related Services EBITDA(1) Change HK$ millions EBITDA change: -3% Local currency growth: +2% 208 12,175 57 14 (46) (22) 11,964 (536) 11,639 2015(2) HPH Trust Europe Mainland China Asia, Australia Corporate costs Foreign currency 2016 and other and others (3) & other port translation impact
Slide 16: Ports and Related Services
Ports and Related Services European Operations EBITDA EBIT Throughput YOY Change: -2% 12 10 TEU 'million 8 6 4.3 4.2 YOY Change: -9% YOY Change: -9% 4 1,600 Local Ccy Growth: +3% 1,200 Local Ccy Growth: +4% 2 1,000 0 HK$ million 2015 2016 1,200 HK$ million UK 800 1,397 800 1,269 600 400 400 2015 Und
Slide 17: Retail
Retail 2016 2015 Change % Change % HK$ millions HK$ millions in local currency Total Revenue 151,502 151,903 - +3% EBITDA 14,567 14,838 -2% +3% EBIT 12,059 12,328 -2% +3% Store Numbers 13,331 12,400 +8% NA Total Revenue 2016 2015 Change % in Change % HK$ millions HK$ millions local currency H&B Chin
Slide 18: Retail
Retail 2016 2015 2016 2015 Change % in EBITDA EBITDA EBITDA Change % HK$ millions HK$ millions local currency Margin % Margin % H&B China 4,556 22% 4,756 22% -4% +1% H&B Asia(1) 2,009 8% 1,936 9% +4% +8% H&B China & Asia Subtotal 6,565 15% 6,692 15% -2% +3% H&B Western Europe 5,372 9% 5,277 9% +2% +
Slide 19: Retail
Retail EBITDA Change HK$ millions EBITDA change: -2% Local currency growth: +3% 243 413 15,312 (384) 146 56 14,838 (745) 14,567 2015 Health & Beauty Health & Beauty Health & Beauty Health & Beauty Other Retail (2) Foreign currency 2016 China Asia (1) Western Europe Eastern Europe (1) translation imp
Slide 20: Retail
Retail EBITDA EBIT European Operations Store Numbers, Total Sales Growth % & Comparable Store Sales Growth % Total sales growth % in +6.4% +10.3% local ccy Store Number Growth: +2% 1,600 6.9% 7.0% 1,396 1,430 6.0% 1,400 YOY Growth: +6% YOY Growth: +12% 5.0% 2,500 Local Ccy Growth: +23% 2,500 Local C
Slide 21: Infrastructure
Infrastructure 2016 2015(1) Change % Change % HK$ millions HK$ millions in local currency Total Revenue 53,211 55,762 -5% +3% EBITDA 31,128 32,291 -4% +5% EBIT 22,162 23,477 -6% +3% Note (1): 2015 pro forma results assumed that the Reorganisation was effective on 1 January 2015. CKI announced prof
Slide 22: Infrastructure
Infrastructure European Operations EBITDA EBIT Major Investments UK • UK Power Network Holdings (Regulated) • Northumbrian Water Group (Regulated) • Northern Gas Networks (Regulated) • Wales & West Utilities (Regulated) • UK Rails UK UK Europe (ex-UK) • Dutch Enviro Energy • Portugal Renewable Energ
Slide 23: Energy
Energy 2016 2015(1) Change % Change % HK$ millions HK$ millions in local currency Total Revenue 30,467 40,029 -24% -22% EBITDA 9,284 9,375 -1% +1% EBIT 3,429 2,229 +54% +53% Average Production 321.2 mboe/day 345.7 mboe/day -7% NA Note (1): 2015 pro forma results assumed that the Reorganisation was e
Slide 24: Energy
Energy Average production decreased 7% to 321.2 mboe/day in 2016, mainly due to lower natural gas and natural gas liquids sales from the Liwan Gas Project and from the Western Canadian dispositions, partly offset by the strong performances from the heavy oil thermal projects and the ramp-up of the
Slide 25: Telecommunications - 3 Group Europe
Telecommunications - 3 Group Europe 2016 2015(1) Change % in HK$ millions HK$ millions Change % local currency Total Revenue (incl. handset revenue) 62,415 62,799 -1% +5% EBITDA 18,944 17,396 +9% +15% EBIT 12,838 11,664 +10% +17% Following the successful formation of the Italian joint venture, Win
Slide 26: Telecommunications - 3 Group Europe
Telecommunications - 3 Group Europe EBITDA Growth HK$ millions EBITDA growth: +9% Local currency growth: +15% 217 121 20,045 1,793 84 45 ( 1,101 ) 18,944 389 17,396 (1) 2015 UK Italy Sweden Denmark Austria Ireland Foreign currency 2016 translation impact Note (1): 2015 pro forma results assumed he R
Slide 27: Telecommunications - 3 Group Europe
Telecommunications - 3 Group Europe Results by operations UK Italy Sweden Denmark Austria Ireland 3 Group Europe In millions GBP EURO SEK DKK EURO EURO HK$ 2016 2016 2016 (1) (1) (1) (1) (1) (1) (1) 2016 2015 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 (Jan-Oct) (2) (Nov-Dec) (3) Total To
Slide 28: Telecommunications - Wind Tre, Italy
Telecommunications - Wind Tre, Italy Wind Tre Joint Venture (Formation on 5 November 2016) Mobile Customer Market Share (at the end of 2016) 2 months P&L Impact (November & December 2016) Wind Tre Wind Tre CKHH's € millions Mobile combined consolidation CKHH's share customers(1): results (2) of Wind
Slide 29: Telecommunications - 3 Group Europe
Telecommunications - 3 Group Europe Key Business Indicators Key business indicators for the 3 Group Europe’s businesses are as follows: (2) 3 Group UK Italy Sweden Denmark Austria Ireland Europe Customer Base - Registered Customers at 31 December 2016 ('000) Contract 6,436 7,085 1,775 787 2,517 1,20
Slide 30: Telecommunications - 3 Group Europe
Telecommunications - 3 Group Europe Key Business Indicators Key business indicators for the 3 Group Europe’s businesses are as follows: 3 Group (4) UK Italy Sweden Denmark Austria Ireland Europe Average 12-month Trailing Average Revenue per Active User ("ARPU")(1) to 31 December 2016 Contract ARPU (
Slide 31: Telecommunications - 3 Group Europe
Telecommunications - 3 Group Europe Key Business Indicators Key business indicators for the 3 Group Europe’s businesses are as follows: 2016 3 Group UK It aly Sw eden Denmark A us t ria Ireland Europe A verage Contract customers as a % of the total registered customer base 56% 23% 86% 64% 66% 40% 37
Slide 32: Telecommunications - HTHKH & HAT
Telecommunications - HTHKH & HAT HTHKH 2016 2015(1) Change % HK$ millions HK$ millions Total Revenue 12,133 22,122 -45% EBITDA 2,607 2,911 -10% EBIT 1,055 1,426 -26% HTHKH announced profit attributable to shareholders of HK$701 million and earnings per share of 14.55 HK cents, a decrease of 23% co
Slide 33: Telecommunications HTAL, share of VHA
Telecommunications HTAL, share of VHA VHA’s customer base increased to approximately 5.6 million (including MVNOs) at 31 December 2016. HTAL owns 50% of VHA(1) and announced its attributable share of revenue of A$1,673 million, an 8% decrease over last year, driven entirely by the reduction in r
Slide 34: Financial profile
Financial profile Healthy maturity and liquidity profile Liquid Assets by Type Debt (1) Maturity Profile at 31 December 2016 - Principal only at 31 December 2016 Liquid Assets by Currency Denomination Net Debt & Credit Ratings as at 31 December 2016 at 31 December 2016 Net Debt Net debt (2) HK$141,8
Slide 35: Financial profile
Financial profile 2016 EBITDA, Dividends from Associated Companies & JVs less Capex of Company & Subsidiaries and Investments in Associated Companies & JVs by division HK$ millions EBITDA (1) – Co & Subsid 7,705 11,949 11,358 - 17,242 2,543 2,298 231 53,326 EBITDA (1) – Asso. & JVs 3,934 2,618 19,77