China Telecom Corp. Ltd. Class A · SSE:601728
China Telecom Corp. Ltd. Class A — China Economic Forum 2004, BNP Paribas Peregrine
21 slides from China Telecom Corp. Ltd. Class A's conference presentation, Oct 20, 2004
Slide 1: Presentation at China Economic Forum 2004, BNP Paribas Peregrine
Presentation at China Economic Forum 2004, BNP Paribas Peregrine Mr. Li Ping Executive Vice President of China Telecom 20 October 2004
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements contained in this document may be viewed as “forward- looking statements” within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. Such forward-looking stat
Slide 3: Agenda
Agenda Industry Industry&&Corporate CorporateOverview Overview Business BusinessReview Reviewof ofChina ChinaTelecom Telecom Company CompanyStrategy Strategy 3
Slide 4: Industry & Corporate Overview
Industry Industry & & Corporate Corporate Overview Overview
Slide 5: Strong Economic Growth
Strong Economic Growth GDP (RMB Billion) Disposable Income Per Capita (RMB) 9.7% 5,879 12.0% 4,815 5,359 4,301 1H2003 1H2004 1H2003 1H2004 Source: National Bureau of Statistics, Ministry of Information Industry 5
Slide 6: Sustained and Rapid Industry Growth
Sustained and Rapid Industry Growth Fixed Line Penetration Rates (%) 23.3 22.7 20.3 18.2 Fixed Access Lines in Service (Million) 295.5 302.9 263.3 237.6 1H2003 2H2003 1H2004 Aug2004 Broadband Subs (Thousand) 19,624 17,730 11,150 1H2003 2H2003 1H2004 Aug2004 7,140 1H2003 2H2003 1H2004 Aug2004 6
Slide 7: Excellent Financial Results in 1H2004
Excellent Financial Results in 1H2004 (RMB Million) 10,472 Net Profit 28.1% 28.1% 39,755 EBITDA 10.4% 10.4% 75,981 Revenue 9.8% 9.8% Local Broadband 10.9% 10.9% Subs Subs 50.6% 50.6% 178.5 million 10.9 million Note: (1) Financial results growth rates are on a year-over-year basis. Subscriber growth
Slide 8: Business Review of China Telecom
Business Business Review Review of of China China Telecom Telecom
Slide 9: Growth in Access Lines in Service
Growth in Access Lines in Service Access Lines in Service New Access Lines in Services (Million) (Million) 23.5 178.5 184.5 161.0 17.5 146.9 36.5 40.2 25.6 14.6 17.0 11.0 11.9 13.9 14.1 8.0 9.6 18.4 18.8 17.1 17.7 10.9 6.2 8.6 0.9 2.3 108.1 112.6 113.6 1.4 104.8 0.8 1.6 1.1 0.7 6.0 0.6 5.5 3.3 4.5 1
Slide 10: Growth in Local Telephone Usage
Growth in Local Telephone Usage Local Telephone Usage Realizing Early Results of Usage-based (Pulses in Million) Marketing Initiatives 13.8% 352,935 21.5% 21.0% 30,514 19.3% 230,759 231,748 13.8% 224,357 13.6% 31,770 21,028 38,850 322,421 6.5% 198,989 210,720 185,507 1H2003 2H2003 1H2004 1-3Q2004 20
Slide 11: Wireless Local Access Service
Wireless Local Access Service Wireless Local Access Per Sub Investment Service Subs (Thousand) (RMB per Sub) 40,137 900 36,472 800 25,566 16,968 1H2003 2H2003 1H2004 3Q2004 2003 1H2004 11
Slide 12: Broadband Continues Rapid Growth
Broadband Continues Rapid Growth Broadband Subs ADSL Per Sub Investment (Thousand) (RMB per Sub) 12,552 1,000 -5% 950 10,889 1,663 3,658 7,231 4,613 2,618 10,889 2,202 7,231 4,613 2,411 1H2003 2H2003 1H2004 3Q2004 2003 1H2004 BoP Broadband Subs New Broadband Subs 12
Slide 13: Company Strategy
Company Company Strategy Strategy
Slide 14: Challenges, Management Initiatives, Business Strategies
Challenges Management Initiatives Business Strategies Mobile Substitution Innovative Marketing Not an Integrated Services Provider 14
Slide 15: Management Initiatives
Management Initiatives z Refine channel management and improve channels’ Sales and Marketing execution capability Reengineering z Targeted product bundling marketing and improve brand value z Restructure sales and marketing operations along products, markets and sales dimensions z Comprehensive budg
Slide 16: Business Strategies
Business Strategies Local Telephone • Continue to develop traditional wire-line (including PHS) telephone service and PHS • Leverage integrated services to market service packages • Further channel development, strengthen marketing and preservation of existing customer base • Maintain rapid subscrib
Slide 17: Summary
Summary Realized RealizedVery VerySatisfactory SatisfactoryFinancial FinancialResult ResultThrough Through Continued ContinuedReform ReformandandInnovation Innovation Subscribers Subscribersand andServices ServicesUsage UsageMaintained MaintainedHealthy Healthy Growth Growthinin3Q2004 3Q2004 Strengt
Slide 18: Thank You!
Thank You! For more details, please click onto China Telecom’s corporate website at www.chinatelecom-h.com
Slide 19: Operating Revenue — Appendix I
Operating Revenue — Appendix I (RMB Million) 1H2003 1H2004 % Change Installation Fees 1,301 1,432 10.1% Monthly Fees 13,829 15,023 8.6% Local Usage Fees 22,486 24,072 7.1% Domestic Long Distance 12,693 13,145 3.6% International Long Distance 1,951 1,906 -2.3% Internet 4,355 6,602 51.6% Managed Data
Slide 20: Extract from unaudited consolidated statement of income — Appendix II
Extract from unaudited consolidated statement of income for the 6 months ended 30 June 2004 — Appendix II (RMB Million) 1H2003 1H2004 Operating Revenues 69,182 75,981 Operating Expenses 55,840 59,481 Depreciation and amortization 22,666 23,255 Network operations and support 14,336 13,284 SG&A 6,955
Slide 21: Extract from unaudited consolidated balance sheet — Appendix III
Extract from unaudited consolidated balance sheet at 30 June 2004 — Appendix III (RMB Million) Audited Unaudited at 31 December 2003 at 30 June 2004 Cash and Cash Equivalents 12,721 16,710 Other Current Assets 20,372 22,478 Non-current Assets 370,849 372,524 Total Assets 403,942 411,712 Current Liab
China Telecom — China Economic Forum 2004, BNP Paribas Peregrine on 6ix