Ck Hutchison Holdings Ltd · HKEX:1
Ck Hutchison — H1 2021 Earnings Presentation
33 slides from Ck Hutchison's earnings presentation, Aug 5, 2021
Slide 1: 2021 Interim Results Operations Analysis
2021 Interim Results Operations Analysis
Slide 2: Disclaimer
Disclaimer 2021 The information, statements and opinions contained in this Presentation and subsequent discussion do not constitute an offer to sell or solicitation of any offer to subscribe for or purchase any securities or other financial instruments or any advice or recommendation in respect of s
Slide 3: 2021 Results Highlights
2021 Results Highlights
Slide 4: Financial Highlights
Financial Highlights 2021 $212.4bn $55.6bn $32.8bn Revenue (1) EBITDA (1) EBIT (1) +12% +18% +23% (+4% in local currencies) (+10% in local currencies) (+15% in local currencies) Net $18.4bn (Post-IFRS 16) EPS (2) $4.75 Earnings (1)(2) +40% (+32% in local currencies) +41% DPS $0.80 Net 19.9% Debt Rat
Slide 5: EBITDA
EBITDA 2021 EBITDA (4) EBITDA Change by Division $55.6bn HK$ m Underlying EBITDA +20% in reported currency +10% in local currencies +18% 6,273 (+10% in local currencies) 3,964 55,590 2,496 1,618 1,148 49,317 ( 566 ) ( 512 ) ( 82 ) 46,946 ( 5,695 ) 41,251 1H 2020 1H 2020 1H 2020 Ports & Retail Infras
Slide 6: Operating FCF
Operating FCF 2021 Operating FCF Operating FCF by Core Business $17.7bn (1H 2020: $19.1bn) HK$ m 24,959 27,650 5,006 5,240 (10,074) (14,658) (757) EBITDA of Subsidiaries (2) Dividends from Asso & JVs (571) Capex Investments in Asso & JVs EBITDA – Share of Telecom licences Asso & JVs (2) 1H 2020 1H 2
Slide 7: Financial Profile - Operating FCF by division
Financial Profile - Operating FCF by division 2021 (2) EBITDA – Co & Subsidiaries 4,389 4,961 1,994 15,812 803 (309) 27,650 EBITDA – Share of Asso. & JVs 2,594 1,764 12,809 24 - 4,476 21,667 Dividends from Asso. & JVs 835 892 3,115 - - 398 5,240 Capex 1,014 880 184 11,455 1,080 45 14,658 Investments
Slide 8: Free Cash Flow
Free Cash Flow 2021 Free Cash Flow Free Cash Flow Year-on-Year Change 1H 2021 Operating Free 17,661 $39.9bn +348% Cash Flow Interests and taxes paid ( 5,932 ) HK$ m Working Capital changes and ( 2,611 ) Others (2) Voluntary licence ( 2,935 ) renewal fee prepayment(3) 39,871 38,425 Underlying change:
Slide 9: Financial Profile
Financial Profile 2021 Debt Maturity Profile Net Debt Jun 2021 Dec 2020 Jun 2020 Net debt (1) $164.3bn $185.3bn $205.9bn Net debt to net total capital ratio (1) 19.9% 22.2% 25.1% Credit Ratings 30 Jun 2021 31 Dec 2020 Moody’s A2 (Stable) A2 (Stable) Sufficient to cover 48% of debt due in 2024 S&P A
Slide 10: Ports & Related Services
Ports & Related Services 2021 TEUs EBITDA Growth HK$ m +21% in local currencies 11.6 • Assets: 16.4 (+13%) 412 296 US$12.2bn (3) (+9%) 42.9m 198 ( 83 ) 375 246 6.8 +11% 6,687 6,983 (+11%) 8.1 5,539 • 288 Berths (+13%) 52 Ports 26 Countries EBITDA (1) 1H 2020 EBITDA HPH Trust Mainland China and Other
Slide 11: Retail
Retail 2021 Store number EBITDA Growth • Assets: US$27.8bn (3) 447 HK$ m • World’s largest H&B growth: +52% in local currencies 2,468 international H&B 4,134 retailer 16,206 494 170 1,039 276 ( 361 ) 481 +2% 6,244 6,725 • Operating in 27 5,670 3,487 4,626 markets with 12 retail brands EBITDA (1) 1H
Slide 12: Infrastructure
Infrastructure 2021 CKI’s reported NPAT (1) Stable Earnings & Dividend Growth 2.380 2.430 2.460 2.470 2.260 2.150 • Assets: 2.000 HK$ m 1.860 1.660 1.530 1.330 (2) 1.201 1.135 1.100 1.000 $3,011m 0.948 US$29.6bn (3) 0.790 0.715 0.680 0.630 0.600 0.690 3,011 2,860 +5% • Largest 1H 2020 1H 2021 * Earn
Slide 13: Telecommunications - 3 Group Europe
Telecommunications - 3 Group Europe 2021 Total Revenue EBITDA (1) $43,160m +7% HK$ m -5% in local currencies 1,422 (-4% in local currencies) KPI $14,772m ( 437 ) 14 43 Active mobile customers 14,772 38.0m -2% +2% 14,449 14,012 ( 564 ) (4) ( 74 ) ( 77 ) 12-month trailing Net AMPU (-8% in local 13,350
Slide 14: Telecommunications - 3 Group Europe
Telecommunications - 3 Group Europe 2021 (1) (2) UK Italy Sweden (1) Denmark (1) Austria (1) Ireland (1) 3 Group Europe before one-off In million GBP EURO SEK DKK EURO EURO HK$ 1H 2021 1H 2020 1H 2021 1H 2020 1H 2021 1H 2020 1H 2021 1H 2020 1H 2021 1H 2020 1H 2021 1H 2020 1H 2021 1H 2020 Normalised
Slide 15: Telecommunications - CKH Networks
Telecommunications - CKH Networks 2021 Key Updates Total proceed: €10bn (2) Jan 2021 Nov 2020 Completion of Q4 2021 / Q1 2022 Announced sale of Sweden Tower Target completion • €8.6 billion cash and €1.4 billion Cellnex shares(3) CKH Networks(1) to Company disposal of UK Tower • All countries comple
Slide 16: Telecommunications - HAT
Telecommunications - HAT 2021 Total Revenue EBITDA $4,350m -4% (-5% in local currencies) $803m (1) HK$ m -9% in local currencies -8% (-9% in local currencies) KPI 17 20 ( 15 ) 13 ( 104 ) 768 872 803 Active mobile customer account 790 60.4m +24% Data Usage 1H 2020 Indonesia Vietnam Sri Lanka Corporat
Slide 17: Sustainability
Sustainability
Slide 18: Sustainability
Sustainability 2021 2020 Sustainability Report • Ongoing disclosure to showcase Group progress and set goals for continuous improvement. • Leading practice approaches across the Group: Ports: smart port technology Retail: offering more sustainable product Infrastructure: innovations in low carbon te
Slide 19: Q&A
Q&A
Slide 20: Appendix: 2021 Interim Results Operations Review
2021 Interim (to insert Results Operations Review) Appendix
Slide 21: Analyses of Core Business Segments by Geographical Location
CK Hutchison Holdings Limited 2021 Interim Report Analyses of Core Business Segments by Geographical Location Total Revenue for the six months ended 30 June 2021 HK$212,386 million Europe HK$109,138 million 6% 40% 14% 40% 15% 1% Mainland China HK$16,903 million 15% 9% 10% 83% 6% 1% 51 % Hong Kong HK
Slide 22: Operations Highlights - Ports and Related Services
CK Hutchison Holdings Limited 2015 Interim Report 2021 Operations Highlights Ports and Related Services 30 June 2021 30 June 2020 Local currencies HK$ million HK$ million Change change Total Revenue (1) 19,933 16,031 +24% +19% EBITDA (1) (4) 6,983 5,539 +26% +21% EBIT (1) (4) 4,769 3,454 +38% +32% T
Slide 23: Ports throughput increased by 11% to 42.9 million TEU
CK Hutchison Holdings Limited 2015 Interim Report 2021 Throughput increased by 11% to 42.9 million TEU in the first half of 2021, with 62% and 38% local and transhipment volume respectively (1H 2020: 63% and 37% local and transhipment volume respectively). Throughput increased across majority of the
Slide 24: Retail
CKCKHutchison Hutchison Holdings Holdings Limited Limited 2015 Interim 2021 Interim Report Report Retail 30 June 2021 30 June 2020 Local currencies HK$ million HK$ million Change change Total Revenue 82,621 73,627 +12% +5% EBITDA (1) 6,725 4,626 +45% +35% EBIT (1) 4,939 2,970 +66% +54% Store Numbers
Slide 25: Retail Total Revenue and Total EBITDA
CKCKHutchison Hutchison Holdings Holdings Limited Limited 2015 Interim 2021 Interim Report Report Total Revenue Total EBITDA (1) Local Local 30 June 30 June currencies 30 June EBITDA 30 June EBITDA currencies HK$ million 2021 % 2020 % Change change 2021 % Margin 2020 % Margin Change change H&B China
Slide 26: Infrastructure
CK Hutchison Holdings Limited 2015 Interim Report 2021 Infrastructure 30 June 2021 30 June 2020 Local currencies HK$ million HK$ million Change change Total Revenue (1) 27,798 25,181 +10% – EBITDA (1) (2) 14,803 13,768 +8% -4% EBIT (1) (2) 9,686 8,989 +8% -4% CKI Reported Net Profit (under Post-IFR
Slide 27: CK Hutchison Group Telecom
CK Hutchison Holdings Limited 2015 Interim Report 2021 CK Hutchison Group Telecom 30 June 2021 30 June 2020 Local currencies 30 June 2021 30 June 2020 In million HK$ HK$ Change change EURO EURO Total Revenue 45,826 42,702 +7% -2% 4,901 5,021 Total Margin 32,012 30,494 +5% -5% 3,424 3,586 Total CACs
Slide 28: CKHGT - Results by operations
CK Hutchison Holdings Limited CK Hutchison Holdings Limited 2015 Interim Report 2021 2021 2015 Interim Report CKHGT - Results by operations 3 Group Europe Corporate and Others UK Italy (6) Sweden (7) Denmark (7) Austria (7) Ireland (7) before one-off (7) (8) HTHKH and one-off (8) CKHGT CKHGT In mill
Slide 29: CK Hutchison Group Telecom (continued) - Customer Base
CK Hutchison Holdings Limited 2015 Interim Report 2021 CK Hutchison Group Telecom (continued) Key Business Indicators Registered Customer Base Registered Customers at Registered Customer Growth (%) from Registered Customer Growth (%) 30 June 2021 (’000) 31 December 2020 to 30 June 2021 from 30 June
Slide 30: 12-month Trailing ARPU
CK Hutchison Holdings Limited 2015 Interim Report 2021 12-month Trailing Average Revenue per Active User (“ARPU”) (13) to 30 June 2021 % Variance Blended compared to Non-contract Contract Total 30 June 2020 United Kingdom £4.97 £21.98 £18.24 +3% Italy (16) €10.62 €12.57 €11.58 -1% Sweden SEK116.54 S
Slide 31: CK Hutchison Group Telecom (continued) - United Kingdom
CK Hutchison Holdings Limited 2015 Interim Report 2021 CK Hutchison Group Telecom (continued) United Kingdom 3 UK’s EBITDA remains flat in local currency compared to the same period last year, mainly driven by improvements in other margins from MVNOs, together with lower costs associated to acquisit
Slide 32: Hutchison Asia Telecommunications
CK Hutchison Holdings Limited 2015 Interim Report 2021 Hutchison Asia Telecommunications 30 June 2021 30 June 2020 Local currencies HK$ million HK$ million Change change Total Revenue 4,350 4,521 -4% -5% - Indonesia 3,757 3,952 -5% -6% - Vietnam 382 363 +5% +3% - Sri Lanka 211 206 +2% +8% EBITDA (17
Slide 33: Finance & Investments and Others
CK Hutchison Holdings Limited 2021 Interim Report Finance & Investments and Others 30 June 2021 (1) 30 June 2020 (1) Local currencies HK$ million HK$ million Change change Total Revenue 31,858 27,880 +14% +10% EBITDA (2) 653 7,220 -91% -93% - Underlying 4,167 1,525 +173% +164% - One-off items (3,514
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