Slide 1: FY21 Annual Results Presentation for 12 months ended 31 August 2021
FY21 Annual Results Presentation for 12 months ended 31 August 2021 Presented by William Yeung, Co-Owner & Executive Vice-chairman NiQ Lai, Co-Owner & Group Chief Executive Officer 28 October 2021
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: NiQ Lai
NiQ Lai Co-Owner & Group Chief Executive Officer 3
Slide 4: Emerging Stronger & Transformed
Emerging Stronger & Transformed • In Residential Solutions, we are the exclusive broadband partner for Disney+ in Hong Kong… this will be a game changer. • In Enterprise Solutions, we are making progress with the integration of JOS into 1-HKBN. • Co-Ownership 4, will allow top-up and rollover of Co-
Slide 5: Resilient Performance with Steady Growth
Resilient Performance with Steady Growth Excluding ESS Pass-through of $85m, DPS would be 82 HK Cents, YoY +9% Service Revenue EBITDA AFF $7,431m $2,569m $1,132m YoY +4% YoY +3% YoY +2% DPS: 76.5 HK Cents YoY +2% 5
Slide 6: Consecutive Dividend Growth Since 2015 IPO
Consecutive Dividend Growth Since 2015 IPO For >870 Co-Owners, This is our Families’ AFF FY21: 76.5 DPS FY20: 75 DPS +2% YoY FY19: 70 DPS +7% YoY +25% YoY 82* FY18: 56 DPS 80* +24% YoY FY17: 45 DPS +13% YoY CAGR 14% FY16: 40 DPS (15%*) 75 76.5 70 56 40 45 # The dividend policy of the Company is to p
Slide 7: Business Growth amid Recovering Market
Business Growth amid Recovering Market 7.6k 107k $3,036 $4,966m Enterprise Commercial Enterprise Enterprise Service Solutions Buildings Customers ARPU Revenue +3% +2% +3% +5% 2.5m 886k $190 $2,465m Residential Homes Broadband Residential Service Solutions Passed Subscriptions ARPU # Revenue +2% +0%
Slide 8: Sustaining Growth in EBITDA & AFF
Sustaining Growth in EBITDA & AFF Financials in HK$mn, unless otherwise stated Revenue EBITDA AFF +21% 11,464 +85% +47% +3% 9,453 +2% 4,033 +53% +76% 2,298 >100% 5,108 311 2,505 2,569 7,431 1,132 7,156 +4% 1,114 1,709 4,797 +49% 750 FY19 FY20 FY21 FY19 FY20 FY21 FY19 FY20 FY21 Product Services - JOS
Slide 9: Fitter and Leaner for Growth
Fitter and Leaner for Growth Financials in HK$mn, unless otherwise stated Operating Expenses* 2,110 1,984 397 370 645 630 1,068 984 FY20 FY21 Talent Cost G&A Marketing cost Opex to Revenue Ratio: 22.3% 17.3% Total Full-time Permanent Talents: 5,929 5,218 (-12%) *Operating Expenses excluded Depreciat
Slide 10: Manageable Debt Profile
Manageable Debt Profile Net Leverage Ratio# • Successfully refinanced ~$11 billion of debt with improved terms and 4.6x headroom • Average remaining life increased from 2.3 years as of Aug-20 to 4.3 years as of Aug-21. Average Finance Cost 2.6% # The Group has entered into facility agreements with v
Slide 11: William Yeung
William Yeung Co-Owner & Executive Vice-chairman 11
Slide 12: Enterprise Solutions: Successful Integration and READY to Take Off
Enterprise Solutions: Successful Integration and READY to Take Off Transformed for Growth One-stop Premier Strategic Industry Experts ICT Solutions Partnerships Skin-in-the-Game 12
Slide 13: Enterprise Solutions: Industry Focus x Specialist Kitchen
Enterprise Solutions: Industry Focus x Specialist Kitchen Elite Sales Team with Industry Focus ACCOUNT MGT Banking & Public Hotel and Other SME Carrier Finance Sector University Sectors Full Suite of Integrated Solutions supported by Kitchen KITCHEN ICT kitchen, SI kitchen, Connectivity kitchen (pro
Slide 14: HKBN's Transformation into Full-suite Solutions Provider
HKBN’s Transformation into Full-suite Solutions Provider ICT Solutions Connectivity An international An organization Leading banking & A HK-based luxury hotel brand promoting trade and financial services provider A leading digital hub food, beverage and business in Hong Kong in Hong Kong in Hong Kon
Slide 15: Endorsements from Cisco, Microsoft HK and PwC
Endorsements from Cisco, Microsoft HK and PwC Embed Cisco and Microsoft video 15
Slide 16: Residential: Growth Mode through Ecosystem
Residential: Growth Mode through Ecosystem Exciting New Offers • Disney+ • HOME+ • WiFi 6 Gateway Subscriptions Revenue Stickiness 16
Slide 17: HKBN as Exclusive Broadband Partner for Disney+ in Hong Kong
HKBN as Exclusive Broadband Partner for Disney+ in Hong Kong Disney+ Paid Subscribers 116 million As of 3 Jul 2021 Since Launched on 12 Nov 2019 Source: The Walt Disney Company Quarterly Earning Reports Q3 FY21 https://thewaltdisneycompany.com/app/uploads/2021/08/q3-fy21-earnings.pdf Elinor Shiu, ou
Slide 18: Endorsement from Disney+
Endorsement from Disney+ J 5 » | af | Kerwin Lo A General Manageriof Taiwan and The Walt Disney Company We are thrilled orate with
Slide 19: Disney+ / HKBN Marketing Blitz
Disney+ / HKBN Marketing Blitz Sogo Mega Screen Wan Chai Billboard Cross-Harbour Tunnel Causeway Bay Causeway Bay Billboard MTR Station 19 19
Slide 20: Extraordinary OTT Choices
Extraordinary OTT Choices Amazing GLOBAL + LOCAL entertainment content for Hong Kong consumers Disney+ HKBN Netflix myTV SUPER Versatile choices for everyone & best-value bundle offers 20 20
Slide 21: CO4 Roadmap – Full Speed to GROW
CO4 Roadmap – Full Speed to GROW Co-Ownership 4 KPI 3-year cumulative HK$2.70 to HK$3.01 AFF/Share FY21 AFF/Share FY22 FY23 FY24 HK$0.765 • ICT Solutions Enterprise • Industry Experts • Strategic Partnerships • Subscribers Growth driven by Infinite-play Residential (OTT, HOME+, WiFi 6) 2121
Slide 22: HKBN ESG Roadmap
HKBN ESG Roadmap FY22 FY23 Benchmark Where we are now Drive Goal Setting Global Best Practices • ESG gap identification against global sustainability stardards • Next around of materiality assessment • Improve ESG disclosure & external promotion • ESG KPI Setting ➢ Better engagement (social aspects)
Slide 23: FY21 Annual Results Presentation for 12 months ended 31 August 2021
FY21 Annual Results Presentation for 12 months ended 31 August 2021 Presented by William Yeung, Co-Owner & Executive Vice-chairman NiQ Lai, Co-Owner & Group Chief Executive Officer 28 October 2021
Slide 24: Appendix
Appendix 24
Slide 25: Operational Highlights – Enterprise Solutions
Operational Highlights – Enterprise Solutions YoY FY20 FY21 Changes Commercial building coverage 7,374 7,584 +3% Subscriptions ('000) - Broadband 117 118 +1% - Voice 443 423 -5% Market share - Broadband 36.6% 37.0% +0.4pp - Voice 25.3% 25.0% -0.3pp Enterprise customers ('000) 105 107 +2% Broadband c
Slide 26: Operational Highlights – Residential Solutions
Operational Highlights – Residential Solutions YoY FY20 FY21 Changes Residential homes passed ('000) 2,415 2,466 +2% Subscriptions ('000) - Broadband 886 886 +0% - Voice 498 474 -5% Market share - Broadband 35.0% 34.1% -0.9pp - Voice 22.4% 22.2% -0.2pp Residential customers ('000) 1,019 997 -2% Broa
Slide 27: Consolidated Income Statement
Consolidated Income Statement YoY (HK$ million, unless otherwise stated) FY20 FY21 Changes Enterprise Solutions 4,708 4,966 5% Enterprise Solutions related Product 1,806 2,310 28% Residential Solutions 2,447 2,465 1% Other product 491 1,723 >100% Turnover 9,453 11,464 21% Other net income 26 23 -11%
Slide 28: Consolidated Balance Sheet (Summary)
Consolidated Balance Sheet (Summary) (HK$ million, unless otherwise stated) At 31 August 2020 At 28 February 2021 At 31 August 2021 Non-current assets 19,211 18,624 18,152 Current assets 2,913 3,346 3,616 Current liabilities 4,632 4,439 3,864 Total assets less current liabilities 17,492 17,531 17,90
Slide 29: Reconciliation of EBITDA and Adjusted Free Cash Flow
Reconciliation of EBITDA and Adjusted Free Cash Flow (HK$ million, unless otherwise stated) FY20 FY21 YoY Changes Profit for the year 97 207 114% Finance costs 527 481 -9% Interest income -3 -2 -33% Income tax charge/ (credit) -5 118 <100% Depreciation 974 1,012 4% Amortisation of intangible assets