Hutchison Telecommunications Hong Kong Holdings Limited · HKEX:215
Hutchison Telecommunications Hong Kong — H1 2009 Earnings Presentation
28 slides from Hutchison Telecommunications Hong Kong's earnings presentation, Aug 12, 2009
Slide 1: 2009 Interim Results
SEHK: 215 2009 Interim Results 12 August 2009
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
Slide 3: Business Performance
Business Performance Ll] Hutchison Telecom BBM Hong Kong Holdings
Slide 4: Highlights
Highlights 1 Consolidated turnover up by 8% to HK$4,097 million 2 The largest 3G HK mobile operator and the first operator offers iPhone 3G and 3GS service 3 Carrier, Corporate and Business revenues of fixed-line business achieved strong growth 4 Profit attributable to equity holders grew by 4% to H
Slide 5: Turnover
1 Turnover Consolidated turnover w th 8% gro 4,097 4,000 3,783 3,000 HK$ mm 2,000 1,000 0 '08 1H '09 1H Mobile business turnover Fixed – line business turnover ro wth w th 3,000 10% g 2,000 7% gro 2,647 2,413 1,623 1,516 2,000 HK$ mm HK$ mm 1,000 1,000 0 0 '08 1H '09 1H '08 1H '09 1H 4
Slide 6: Mobile - customers
2 Mobile - customers Total customers Postpaid customers w th w th T o tal gro th T o tal growth 7% 3G grow 6% 3G gro 18% 17% 3,000 2,596 2,775 2,000 1,828 1,721 '000 '000 2,000 1,000 1,000 1,324 1,442 1,127 1,222 0 0 '08 1H '09 1H '08 1H '09 1H 3G 2G 3G 2G 5
Slide 7: Mobile – handset subscription
2 Mobile – handset subscription 69% data centric devices Data ARPU driven Others 31 % iPhones and other smartphones 54% Dongles 15 % Based on July 2009 operational data 6
Slide 8: Mobile - iPhone customers
2 Mobile - iPhone customers over 50% port in ~ 2 - 3 times 3G ARPU ~90% high tariff plans Based on June 2009 operational data 7
Slide 9: Mobile - KPIs
2 Mobile - KPIs Postpaid ARPU Stable postpaid ARPU and Churn 250 209 213 202 under softened economy 200 HK$ / month 150 100 50 0 '08 1H '08 2H '09 1H Postpaid Churn 2.0% 1.8% 1.8% 1.7% Percentage (%) 1.5% 1.0% 0.5% 0.0% '08 1H '08 2H '09 1H 8
Slide 10: Fixed-line - key revenue drivers
3 Fixed- Fixed-line - key revenue drivers Carrier Business Revenues Focused and well-executed growth strategy 19% Growth (HK$ mm) Strong growth 648 773 '08 1H '09 1H Corporate & Business Markets Revenues 10% Growth (HK$ mm) 381 418 '08 1H '09 1H 9
Slide 11: Profit attributable to equity holders and EPS
4 Profit attributable to equity holders and EPS Profit attributable to shareholders Achieving 4% growth under 300 247 256 financial turmoil 200 HK$ mm Delivering value 100 0 '08 1H '09 1H Earnings per Share 6 5.32 5.13 5 4 HK cents 3 2 1 0 '08 1H '09 1H 10
Slide 12: Deliver value to equity holders
5 Deliver value to equity holders Stable and sustainable dividends while maintaining efficient capital structure and sufficiency of funding Supported by strong and stable operational cash flows In line with overall objective of maximizing long term shareholder value 2009 interim dividend: HK$54 mill
Slide 13: Financial Overview
Financial Overview Ll] Hutchison Telecom BBM Hong Kong Holdings
Slide 14: Financial Highlights
Financial Highlights '09 1H '08 1H (HK$m) (HK$m) Turnover 4,097 3,783 8% Growth Cost of inventories sold (279) (138) Staff costs (310) (296) Depreciation and amortisation (650) (688) Other operating expenses (2,459) (2,243) Operating profit 399 418 Interest income - 9 Interest and other finance cost
Slide 15: Turnover – mobile business
Turnover – mobile business Data revenue 68% data revenue growth th grow (HK$ mm) 68% 664 394 Turnover analysis by segments '08 1H '09 1H Total: HK$2,647m Total: HK$2,413m Others Others 13% 7% Voice Roaming 41% Roaming Voice 21% 25% 52% Data Data 25% 16% ’09 1H ’08 1H 14
Slide 16: Turnover - Fixed-line business
Turnover - Fixed- Fixed-line business Strong growth in Carrier, Corporate & Business segments Others1 Others1 Total: HK$1,516m Total: HK$1,623m 7% 9% Residential Carrier Business Carrier Business Residential 43% 19% 23% 48% Corporate & Business Corporate & Markets Business 26% Markets 25% ’09 1H ’08
Slide 17: Financial Highlights
Financial Highlights '09 1H '08 1H (HK$m) (HK$m) Turnover 4,097 3,783 Cost of inventories sold (279) (138) Staff costs (310) (296) Depreciation and amortisation (650) (688) Other operating expenses (2,459) (2,243) Operating profit 399 418 Interest income - 9 Interest and other finance costs (73) (10
Slide 18: Key cost items
Key cost items Cost of inventories sold 300 279 10% % to turnover 200 HK$ mm 138 6.8% 5% 100 3.6% 0 0% '08 1H '09 1H Depreciation and amortisation expenses Staff costs 800 20% 310 10% 688 296 650 300 18.2% 8% 600 15% % to turnover % to turnover 15.9% 7.8% 7.6% HK$ mm HK$ mm 200 6% 400 10% 4% 200 5%
Slide 19: Financial Highlights
Financial Highlights '09 1H '08 1H (HK$m) (HK$m) Turnover 4,097 3,783 Cost of inventories sold (279) (138) Staff costs (310) (296) Depreciation and amortisation (650) (688) Other operating expenses (2,459) (2,243) Operating profit 399 418 Interest income - 9 Interest and other finance costs (73) (10
Slide 20: Other operating expenses
Other operating expenses Cost of services provided General, administrative and distribution costs 2,000 1,763 50% 200 5% 172 1,614 160 40% 4.5% 4% 42.7% 43.0% % to turnover % to turnover 3.9% HK$ mm HK$ mm 30% 3% 1,000 100 20% 2% 10% 1% 0 0% 0 0% '08 1H '09 1H '08 1H '09 1H Operating lease rental ex
Slide 21: Change in CAC/CRC Accounting Policy
Change in CAC/CRC Accounting Policy Objectives: align income statement with cash flow statement increase the comparability of performance with other operators within the global industry 20
Slide 22: Estimated financial impact
Estimated financial impact Estimated Before change effect of (HK$m) in a/c policy change Restated Income Statement '1H 08 '1H 08 Turnover 3,783 3,783 Operating profit 421 (3) 418 Profit attributable to equity holders 253 (6) 247 '1H 09 '1H 09 Turnover 4,097 4,097 Operating profit 472 (73) 399 Profit
Slide 23: Capex and liquidity
Capex and liquidity Capex and Capex as % of Revenue Revenue driven Capex 800 737 25% investment Capex / Revenue (%) 560 20% 600 HK$ mm 15% 371 17.0% 400 Scheduled network 13.7% 10% 200 9.8% 5% modernisation and expansion 0 0% '08 1H '08 2H '09 1H Strong FCF to meet future EBITDA-CAPEX EBITDA- liquid
Slide 24: Managing financial position
Managing financial position Net Debt Leverage ratio at 2.5 6,000 4,948 5,000 4,519 4,122 HK$5.2B bank facilities 4,000 HK$ mm 3,000 available 2,000 1,000 0 '08 1H '08 2H '09 1H Net Debt / LTM EBITDA 5.0 4.0 3.0 2.6 x 2.5 x (x) 2.0 x 2.0 1.0 0.0 '08 1H '08 2H '09 1H 23
Slide 25: Outlook
Ll] Hutchison Telecom BBM Hong Kong Holdings Outlook 24
Slide 26: Outlook
Outlook Well positioned to capture global bandwidth demand and mobile data growth Continue to enlarge 3G premium customer base with increasing data usage Focus on growing Carrier, Business and Corporate markets of fixed-line business Improve cost structure leveraged on MIC “Bill and Keep” arrangemen
Slide 27: Q&A
Ll] Hutchison Telecom BBM Hong Kong Holdings O&A 26
Slide 28: Thank You
Ll] Hutchison Telecom BBM Hong Kong Holdings Thank You 27
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