Slide 1: FY24 Annual Results Announcement
FY24 Annual Results Announcement William Yeung Co-Owner, Executive Vice-chairman & Group CEO Derek Yue Co-Owner & CFO 31 October 2024 © HKBN Ltd. 2024. All Rights Reserved.
Slide 2: Disclaimer
Disclaimer These materials have been prepared by HKBN Ltd. (the “Company”) 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, the fairness, accuracy, completeness or
Slide 3: Overview
Overview William Yeung Co-Owner, Executive Vice-chairman & Group CEO
Slide 4: Solid Performance
Solid Performance Revenue EBITDA AFF H2YoY flat* H2YoY +12% H2YoY +27% * YoY -1% YoY +6% YoY -12% *H2YoY revenue at -3% if including handsets. Excluding handsets YoY revenue at -9% if including handsets. Full Year DPS: 31.5 HK Cents Financials in HK$mn, unless otherwise stated 4
Slide 5: Enterprise Solutions
Enterprise Solutions
Slide 6: Strong and Sustainable Growth
Strong and Sustainable Growth Enterprise Solutions Revenue Order Enterprise Revenue* Backlog Booking Customers $3,757m YoY +15% YoY +9% 98k YoY +1% HoH +1% vs Market 5% drop Note * Excluding international telecommunications services Note: According to OFCA reported no. of registered business broadba
Slide 7: Harvesting our ICT Strategy
Harvesting our ICT Strategy Tailored ICT solutions Hybrid and multi-cloud managed solution HKBNES cloud platform • Cybersecurity FY24 cloud business sales • Next Gen Infrastructure Large • Cloud YoY +22% Enterprise • AI Connectivity X ICT bundle Bundle ARPU +20% Mid-Market Customers ~30k (~1/3 of to
Slide 8: Backlog Profitability Significantly Improved
Backlog Profitability Significantly Improved FY24 Backlog $4.8B ICT/SI and Telecom Backlog Growth c.50% Box moving +15% ~60% Of ~40% of total Backlog customers bundled of total Backlog GP ~ 70% GP ~ 15% FY23 Backlog $4.1B 8
Slide 9: Residential Solutions
Residential Solutions
Slide 10: Solid and Sustainable Performance
Solid and Sustainable Performance Residential Solutions Residential Broadband Revenue ARPU Subscriptions $2,344m $182 907k YoY -2% YoY +2% HoH +1% 10
Slide 11: Powering Profitability: Ongoing Strategy to Elevate ARPU
Powering Profitability: Ongoing Strategy to Elevate ARPU New contract ARPU $195 (Acquisition + Retention) $184 $182 Base ARPU $179 $177 $176 FY22 FY23 FY24 11
Slide 12: Increasing ARPH with Stronger Infinite-Play
Increasing ARPH* with Stronger Infinite-Play Roaming Services Insurance & Medical Services 160,000 Global SIMs sold in FY24 HKBN x Bowtie Home insurance Four-In-One Healthcare ONE rate ✓ 5G Local Service Plan Starting at $168/month ✓ Global Travel Data New OTT Coming More Value-added Services to Com
Slide 13: New Service Bundle Partnership
New Service Bundle Partnership $48/month $399up/month Rapid test kit with free home delivery Professional home care services 13
Slide 14: Network Enhancement
Network Enhancement
Slide 15: Market Leading Innovation
Market Leading Innovation HK's first 25Gbps World's first Available now Dual Guarantee World's first 1Gbps broadband service *HKBN is the first telecommunications provider in the world to offer compensation in Hong Kong dollars for the “Fibre Broadband Dual Guarantee”, and the only telecommunication
Slide 16: Significant Market Potential in Broadband Speed Upgrade
Significant Market Potential in Broadband Speed Upgrade >1Gbps >1Gbps penetration penetration 69.8% 14.9% *Source: Table 1: Statistics on Access Lines of Internet Service Subscriptions in Hong Kong (Notes 1 and 2) (ofca.gov.hk) (Office of Communications Authority, 2024) 16
Slide 17: Rising Demand for 1Gbps+ Bandwidth
Rising Demand for 1Gbps+ Bandwidth Increased by 8% Increased by 7% *Source: Table 1: Statistics on Access Lines of Internet Service Subscriptions in Hong Kong (Notes 1 and 2) (ofca.gov.hk) (Office of Communications Authority, 17 2024)
Slide 18: High-speed Offerings Market Landscape
High-speed Offerings Market Landscape *Based on data from operators who provide dedicated bandwidth services to both residential and enterprise markets as of 30 Oct 2024. 18
Slide 19: Financials
Financials Derek Yue Co-Owner & Chief Financial Officer
Slide 20: Delivered Strong Financial Performance in H2
Delivered Strong Financial Performance in H2 HK$m Full Year H2 H2’24 • Overall strong performance FY24 YoY H2’24 YoY • EBITDA strong record of % Revenue 10,651 -9% 4,842 -3% of revenue and YoY performance - Enterprise Solutions 4,828 0% 2,518 2% • Profit restored profitable - Enterprise Solutions re
Slide 21: Gain Momentum on ES Transformation & RS Direct Sub.
Gain Momentum on ES Transformation & RS Direct Sub. Enterprise Solutions Residential Solutions • FTNS resilient performance • OTT Infinite Play with strong booking and bundling strategy gained backlog strong growth momentum • ICT/SI maintained strong • Focus on direct growth momentum in both subscri
Slide 22: Sustainable Uplift of Productivity
Sustainable Uplift of Productivity Financials in HK$m, unless otherwise stated Operating Expenses Note Digital Transformation 2,000 YoY -13% Operations automation and digitalisation 1,800 1,600 1,400 1,200 Optimised Delivery 1,000 1,886 800 1,644 Disciplined recognition of backlog 600 to maximise re
Slide 23: Strong Cash Creation Ongoing Commitment To Deleverage
Strong Cash Creation Ongoing Commitment To Deleverage Financials in HK$m, unless otherwise stated Cash From Operation Cash & Equivalents YoY +2% 1,250 YoY +20% Net Leverage 2,400 1,050 Ratio^ 1,900 850 4.93x 1,400 650 2,222 2,274 1,217 900 450 1,017 400 250 (FY24 H1: 5.33x 50 FY23: 5.12x) -100 FY23
Slide 24: Solid Performance
Solid Performance Cashflow Deleveraging EBITDA cash from operation YoY +2% NLR 4.93X YoY +6% cash equiv YoY +20% excluding handsets 26
Slide 25: ESG Updates & Business Outlook
ESG Updates & Business Outlook William Yeung Co-Owner, Executive Vice-chairman & Group CEO
Slide 26: ESG Performance
ESG Performance Highest AAA rating No.1 among HK Telcos Newly validated in Sep for 3 consecutive years for 5 consecutive years Top 14% among Telcos worldwide* AA+ *As of receiving the AAA rating this year. 28
Slide 27: Sustainable Outlook
Sustainable Outlook Growing demand for higher bandwidth Recession resistant Offers bundles at best value for money Worry-free competition 29
Slide 28: Our Strong Leadership
Our Strong Leadership Dr. Denis Yip President & Group Chief Operating Officer Dr. Yip has 30+ years of worldwide leadership experience: • CEO of the Hong Kong Applied Science and Technology Research Institute (ASTRI) • Global Vice President, General Manager of the Asia Pacific Storage Division in IB
Slide 29: Sustainable Growth!
Sustainable Growth! PERFORMANCE DELIVERED
Slide 30: FY24 Annual Results Announcement
FY24 Annual Results Announcement William Yeung Co-Owner, Executive Vice-chairman & Group CEO Derek Yue Co-Owner & CFO 31 October 2024 © HKBN Ltd. 2024. All Rights Reserved.