Apt Satellite Holdings Limited · HKEX:1045

Apt Satellite — H1 2014 Earnings Presentation

23 slides from Apt Satellite's earnings presentation, Aug 25, 2014

1. Slide 1: 2014 Interim Report

   1 2014 Interim Report 25 August 2014

2. Slide 2: Financial Highlights, Operations Review, Business Prospects

   2  Financial Highlights  Operations Review  Business Prospects

3. Slide 3: Financial Highlights

   3  Financial Highlights

4. Slide 4: Interim Results

   4 Interim Results 1H/2013 1H/2014 Increase (HK$ M) (HK$ M) （%） Turnover 559.1 627.9 + 12.3% Profit Attributable to 279.0 260.4 - 6.7% Equity Shareholders

5. Slide 5: Interim Dividend

   5 Interim Dividend The Board has resolved to declare an interim dividend of HK5.00 cents per share for the six months ended 30 June 2014.

6. Slide 6: Turnover Breakdown by Business

   Turnover Breakdown by Business 69% 67% 70% 60% 50% 32% 29% 40% 30% 20% 2% 1% 10% 0% 1H/2013 1H/2014 Broadcasting Telecom Other 6

7. Slide 7: Turnover Breakdown by Region

   41% 45% 37% 40% 29% 35% 26% 25% 30% 23% 25% 20% 9% 10% 15% 10% 5% 0% HK Greater China Southeast Others Asia 2013 2014 7

8. Slide 8: Consolidated Income Statement (1)

   8 Consolidated Income Statement (1) 1H/2013 1H/2014 (HK$M) (HK$M) Turnover 559.1 627.9 Cost of services (183.6) (232.1) Gross profit 375.5 395.8 Other net income 14.0 23.5 Valuation gains on investment property 1.1 0.4 Administrative expenses (48.6) (55.4) Profit from operations 342.0 364.3

9. Slide 9: Consolidated Income Statement (2)

   Consolidated Income Statement (2) 1H/2013 1H/2014 (HK$ M) (HK$ M) Profit from Operations 342.0 364.3 Fair value changes on financial instrument 4.5 (47.2) designated at fair value through profit or loss Finance costs (14.2) (13.5) Profit before taxation 332.3 303.6 Income tax (53.3) (43.2) Profit af

10. Slide 10: Expenses Breakdown

    Expenses Breakdown 74% 77% 80% 70% 60% 50% 40% 20% 18% 30% 20% 6% 5% 10% 0% Cost of Services Admin. Finance costs 1H/2013 1H/2014 10

11. Slide 11: EBITDA Margins

    11 EBITDA Margins 84.8% 77.8% 100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 1H/2013 1H/2014 Note: EBITDA Margin represents earnings before interest income / expenses, other income, taxation, depreciation, amortization and impairment loss as a percentage of turnover.

12. Slide 12: Operations Review

    12 Operations Review

13. Slide 13: Transponder Utilization Rates

    Transponder Utilization Rates 30 June 2013 30 June 2014 APSTAR 5 82.33% 77.7% (APT’s transponders) APSTAR 6 87.24% 91.8% APSTAR 7 75.08% 71.9% APSTAR 9A - 78.5% 13 13

14. Slide 14: APSTAR 5

    14 APSTAR 5  High power geostationary telecommunication satellite based on FS1300 made by SS/L of USA.  Launched in June 2004, positioned at 138⁰E orbital slot  APT keeps 20 C-Band & 9 Ku-Band Transponders  Operation mission life is about 15 years  Maintained high utilization rate with further

15. Slide 15: APSTAR 6

    15 APSTAR 6  High power geostationary telecommunication satellite based on a SpaceBus 4000 C1 platform of Thales Alenia Space  Launched in April 2005, positioned at 134⁰E orbital slot  38 C-band and 12 Ku-band transponders  Operation mission life over 15 years  Maintained high utilization rate

16. Slide 16: APSTAR 7

    16 APSTAR 7  High power geostationary telecommunication satellite based on SpaceBus 4000 C2 platform of Thales Alenia Space  Launched in 31 March 2012 with mission life of 18 years, located at 76.5 ⁰E orbital slot  28 C-band and 28 Ku-band transponders  Ku-band transponders are built with China

17. Slide 17: APSTAR 7B

    17 APSTAR 7B  Based on SpaceBus 4000 C2 platform of Thales Alenia Space with 28 C-band and 23 Ku-band transponders  Transferred to China Satcom  Additional transponder capacities for business growth potential 17

18. Slide 18: APSTAR 9A

    18 APSTAR 9A  Lease certain transponders (mainly C-band transponders) of Chinasat 5A from China Satcom  Located at 142⁰E orbital slot, and was renamed as APSTAR 9A  Develop customer base for APSTAR 9 Satellite  As of 30 June 2014, its utilization was 78.5% 18

19. Slide 19: APSTAR 9 Satellite under Construction

    19 APSTAR 9 Satellite under Construction  China Aerospace DFH-4 platform, to be launched around Q4 of 2015  To be located at 142⁰E orbital slot with 32 C and 14 Ku transponders  Broad coverage for entire Asia and pacific island countries  One of the highest C-band performance in East Asia region

20. Slide 20: Customer Services

    20 Customer Services  Satellite TV Broadcasting Services APT Satellite TV Development Ltd. Satellite TV Service under Non-Domestic Television Programme Licence  Satellite-based Telecommunications Services APT Telecom Services Limited Satellite telecom services under Fixed Carrier Licence  Data Ce

21. Slide 21: Business Prospects

    21 Business Prospects

22. Slide 22: Business Prospects

    22 Business Prospects  Supply of transponders will gradually increase in the Asia Pacific Region, Middle East and African region. The market competition of the satellite industry will become very fierce with price pressure  Transponder utilisation rates of the Group’s satellites will be maintained

23. Slide 23: www.apstar.com

    23 www.apstar.com APT Satellite Group

APT Satellite Holdings — H1 2014 Earnings Presentation on 6ix