Hutchison Telecommunications Hong Kong Holdings Limited · HKEX:215
Hutchison Telecommunications Hong Kong — H1 2020 Earnings Presentation
29 slides from Hutchison Telecommunications Hong Kong's earnings presentation, 2020
Slide 1: 2020 Interim Results Presentation
2020 Interim Results Presentation
Slide 2: Disclaimer
Disclaimer The information, statements and opinions contained in this Presentation and any 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 su
Slide 3: Agenda
Agenda Financial Highlights Financial Review Sustainability Business Review & Development Outlook Appendix 2
Slide 4: 1H 2020 Financial Highlights
1H 2020 Financial Highlights Profit EPS Interim Revenue EBITDA EBIT (post IFRS-16) (post IFRS-16) Dividend $1,982m $559m $143m $146m 3.03 cents 2.28 cents -21% YoY +1% YoY -5% YoY -22% YoY -22% YoY -22% YoY Profit before EPS before interest interest income income forgone forgone -3% YoY -3
Slide 5: Service Performance
Service Performance Demonstrated resilience amidst COVID-19 impacts Roaming revenue declined as the pandemic restricted Service Service Service travelling Revenue EBITDA EBIT Rising demand of corporate $1,664m $556m $140m solutions to support new mode of operations -7% YoY +2% YoY -1% YoY Effe
Slide 6: Financial Review
[1] Hutchison Telecom Hong Kong Holdings BE AcaASss 2B
Slide 7: Revenue
Revenue LOCAL Hardware Revenue 1H 2020 $1,443 m Growth: 16% +1% YoY 1H 2020: 1H 2019 $1,424 m $1,982m Corporate Solutions -21% YoY Local IoT Service +200% Revenue 87% 84% 1H 2019 1H 2020 Roaming 13% ROAMING 1H 2020 $221 m Change: -38% YoY 1H 2019 $358 m 6
Slide 8: Customers
Customers Postpaid Postpaid 44% -2% 1,491k 1,458k YoY 1H 2019 1H 2020 3,309k Prepaid -1% YoY +1% Prepaid 1,837k 1,851k YoY 56% 1H 2019 1H 2020 7
Slide 9: Postpaid Churn & ARPU
Postpaid Churn & ARPU Local Customer Gross 1H 2019 1H 2020 Segmentation ARPU Effective Retention Strategy $173 $175 Deepen Programmes Customer Engagement Postpaid Churn held stable YoY Local 1.4% 1.1% 1.3% 1.1% 1.1% NET 1H 2019 1H 2020 2H 2018 1H 2019 2H 2019 1H 2020 ARPU $143 $150 Gross ARPU
Slide 10: Data Usage: strong data growth in HK
Data Usage: strong data growth in HK +15% +13% YoY Growth +27% 2H 2018 1H 2019 2H 2019 1H 2020 9
Slide 11: Key Costs: stringent controls
Key Costs: stringent controls Process Simplification Reduction Automation Cost Saving Programmes Low-Cost, High Efficiency Operating Environment $1,272 m $1,141 m Digital Transformation 1H 2019 1H 2020 10
Slide 12: Capex: disciplined capital investment
Capex: disciplined capital investment Capex over Service Revenue 5G (1H 2019: 9%) EBITDA less CAPEX (excl. spectrum licences) $349 m $240 m -32% YoY +14% YoY $154 m $105 m $454m 2H 2018 1H 2019 2H 2019 1H 2020 Under Post-IFRS 16 basis, Capex was HK$105m and EBITDA less Capex was HK$673m in 1H 20
Slide 13: Net Cash: healthy cash flow
Net Cash: healthy cash flow HK$ million Acquisition of entire 24.1% interest in key subsidiaries from DOCOMO for US$60 million in May 2019 Distribution of 2018 special interim dividend, 2018 final dividend, and 2019 interim dividend 12
Slide 14: Sustainability
Sustainability
Slide 15: Sustainability
Sustainability Product Employees Responsibility Community Customers “Create long-term value for the Group’s Data stakeholders that HTHKH’s ESG Privacy aligns with the sustainability strategic development priorities and sustainability of Labour the business.” Business Management Environment Partners
Slide 16: Business Review and Development
Business Review and Development
Slide 17: Response to COVID-19
Response to COVID-19 Mass Corporate Employees Community Customers Customers • “Work-from-home • Enhance network capacity • Free consultation on 5G • Free accounts of Zoom arrangement” to ensure reliability technology Classrooms app and free mobile data to primary & • Safe & healthy working • Digital
Slide 18: Launch of 5G
Launch of 5G ➢ First in HK to announce 5G tariff ➢ Pioneer to launch 5G service on 1 April SIM HS Voucher SIM + Standalone 17
Slide 19: 3Care Strategy
3Care Strategy ➢ Care, Commitment and Convenience to our customers and their families ➢ Simple and Flexible service offering 18
Slide 20: Enterprise Solutions
Enterprise Solutions Business 1H 2020 Enterprise Solution Revenue: +200% YoY 19
Slide 21: Outlook
Outlook
Slide 22: 5G initiates business agility
5G initiates business agility SLICING / QoS Environmental IoT Cloudified networks Network QoS for and applications different needs Flexible architecture to cater for use cases of the future 21
Slide 23: Network-as-a-Service
Network-as-a-Service Bespoke SLA, QoS Live Broadcast Network Metered Usage → NaaS What U pay is Mobility WiFi what U use for Event On-Demand Purchasing → What U pay is what U need Greater network flexibility & dynamism for better QoS 22
Slide 24: 5G Live Broadcast
5G Live Broadcast Let Your Ideas Fly Online Tutor Yoga Teacher Grow Your Customer Base Avoid Traditional KOL Busker Business Costs 23
Slide 25: Appendix
~ Hutchison Telecom Hong Kong Holdings ARSAeS SBR C1) an
Slide 26: Financial Information Appendix
Financial Information Appendix HK$ million Pre-IFRS 16 basis Post-IFRS 16 basis 1H 2020 1H 2019 Change 1H 2020 1H 2019 Change Revenue 1,982 2,515 -21% 1,982 2,515 -21% Net customer service revenue 1,664 1,782 -7% 1,664 1,782 -7% • Local service revenue 1,443 1,424 +1% 1,443 1,424 +1% • Roaming servi
Slide 27: Financial Information Appendix
Financial Information Appendix HK$ million Pre-IFRS 16 basis Post-IFRS 16 basis 1H 2020 1H 2019 Change 1H 2020 1H 2019 Change Total margin 1,465 1,626 -10% 1,465 1,626 -10% CACs (258) (371) +30% (234) (343) +32% Less: Bundled sales revenue 149 213 -30% 149 213 -30% CACs (net of hardware revenue) (10
Slide 28: Financial Information Appendix
Financial Information Appendix HK$ million Pre-IFRS 16 basis Post-IFRS 16 basis 1H 2020 1H 2019 Change 1H 2020 1H 2019 Change EBITDA 559 554 +1% 778 787 -1% Depreciation and amortisation (416) (403) -3% (631) (627) -1% EBIT 143 151 -5% 147 160 -8% Service EBIT 140 142 -1% 144 151 -5% Net interest
Slide 29: Thank you
Thank you [V_] Hutchison Telecom Hong Kong Holdings BE AKreASe eR
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