Ck Hutchison Holdings Ltd · HKEX:1
Ck Hutchison — Merger or Acquisition (June 2023)
11 slides from Ck Hutchison's merger presentation, Jun 15, 2023
Slide 1: Combination of Three UK and Vodafone UK
Combination of Three UK and Vodafone UK Building the UK’s Digital Future
Slide 2: Disclaimer
Disclaimer 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 such s
Slide 3: Key highlights
Key highlights Great for customers, great for the country, great for competition Building the UK’s digital future CKHH/CKHGT Vodafone Group • Creating a best-in-class 5G network for coverage and Great for reliability in the UK 1 customers • From day one, customers will get coverage in more places, w
Slide 4: Key highlights (cont'd)
Key highlights (cont’d) Creating value for shareholders Unlocking significant synergies for shareholders NPV(1) Run-rate(2) CKHH/CKHGT Vodafone Group (£bn) (£m) • Optimised combined network operational spending Network • Capex savings driven by network consolidation Three UK Vodafone UK • Consolidat
Slide 5: Transaction overview
Transaction overview Creating the third network operator of scale in the UK MergeCo Overview MergeCo Governance MergeCo Completion • 49% CKHGT / 51% Vodafone- • MergeCo net debt of c.£6bn at • Completion expected before the owned MergeCo closing and medium term net debt end of 2024, subject to regul
Slide 6: FY23E Financial overview
FY23E Financial overview Enhanced profitability and cash flow generation Revenue EBITDA(1) OpFCF(2) (£bn, Mar-23 YE) (£bn, Mar-23 YE) (£bn, Mar-23 YE) 10 +0.5 5 26.6% 20.7% 48.3% +0.6 17.7% +0.8 0 Three UK + Run-rate MergeCo Three UK + Run-rate MergeCo Three UK + Run-rate MergeCo (3) (3) (3) Vodafon
Slide 7: MergeCo Vision: For customers
MergeCo Vision: For customers Transforming the customer experience with best-in-class network 1 For customers From Day 1 In the future Transform customer experience Best-in-class network, closing the rural divide in the UK Population coverage Digital Innovation At least 7 million customers will bene
Slide 8: MergeCo Vision: For the country
MergeCo Vision: For the country Turbocharging growth, employment and digital innovation 2 For the country Increased investment £11bn Up to £5bn per year(1) in UK c.8-12k new jobs(2) economic benefit To be invested over the next 10 years in Derived economic benefits to the UK Created in the wider eco
Slide 9: MergeCo Vision: For competition
MergeCo Vision: For competition More network, retail and broadband competition 3 For competition: creation of a third operator with scale More network investment More retail mobile competition Standalone 3 UK & V UK today: sub-scale operators Better ability to compete • Market-leading network qualit
Slide 10: Closing remarks
Closing remarks Transaction both enhances the UK telecoms market and aligns with CK Hutchison’s strategic ambitions Creating a third scaled operator with the best-in-class network to challenge the two largest operators Creating benefits for the customer, for the country, and for competition Signific
Slide 11: Q&A
Q&A
CK Hutchison Holdings — Merger or Acquisition (June 2023) on 6ix