Ck Hutchison Holdings Ltd · HKEX:1
Ck Hutchison — FY2020 Earnings Presentation
26 slides from Ck Hutchison's earnings presentation, Mar 18, 2021
Slide 1: 2020 Annual Results Operations Analysis
2020 Annual Results Operations Analysis
Slide 2: Disclaimer
Disclaimer The information, statements and opinions contained in this Presentation and 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 such s
Slide 3: 2020 Results Highlights
2020 Results Highlights
Slide 4: 2020 Financial Highlights
2020 Financial Highlights Revenue (1) EBITDA (1) EBIT (1) $403.8bn $96.9bn $53.9bn -8% -13% -24% (-8% in local currencies) (-13% in local currencies) (-24% in local currencies) Net Earnings (1) (2) EPS (2) DPS Net Debt Ratio (Post-IFRS 16) $29.0 bn $7.56 $2.314 22.2% -27% -27% -27% 2.6% -pt (-28% in
Slide 5: 2020 EBITDA
2020 EBITDA (4) EBITDA EBITDA Change by Division $96.9bn HK$ m 5,983 -13% 112,068 ( 6,885 ) ( 2,491 ) ( 1,861 ) ( 633 ) 578 (-13% in local currencies) 111,166 ( 7,216 ) 26,688 105,183 ( 3,384 ) ( 133 ) ( 861 ) 96,944 95,165 ( 24,909 ) 2019 Chi-med Husky- 2019 Ports & Retail Retail - Infrastructure H
Slide 6: 2020 Operating FCF
2020 Operating FCF Operating FCF Operating FCF by Core Business $39.8bn (2019: $50.1bn) HK$ m 70,257 59,322 9,097 10,241 (885) (833) (28,356) (28,909) EBITDA of Subsidiaries (2) Dividends from Asso & JVs Capex Investments in Asso & JVs EBITDA – Share of Telecom licences Asso & JVs (2) 2019 2020 (1)
Slide 7: Operating FCF by division
Operating FCF by division HK$ mn EBITDA – Co & Subsidiaries 7,672 11,108 3,574 - 31,896 2,034 3,038 59,322 EBITDA – Share of Asso. & JVs 3,242 3,289 25,492 1,906 61 - 1,853 35,843 Dividends from Asso. & JVs 1,543 1,301 6,676 633 - - 88 10,241 Capex 1,712 1,947 205 - 20,863 4,003 179 28,909 Investmen
Slide 8: Free Cash Flow
Free Cash Flow Free Cash Flow Free Cash Flow Year-on-Year Change $48.7bn 2020 Operating Free 39,821 Cash Flow(1) Interests and taxes paid ( 10,733 ) HK$ m +208% 20,767 Working Capital changes and ( 443 ) Others 48,733 +29% Telecom licences ( 679 ) underlying growth 607 822 9,019 52 2020 Underlying F
Slide 9: 2020 Financial Profile
2020 Financial Profile Debt Maturity Profile Net Debt Dec 2020 Jun 2020 Dec 2019 Net debt (1) $185.3bn $205.9bn $202.9bn Net debt to net total capital ratio (1) 22.2% 25.1% 24.8% Credit Ratings 31 Dec 2020 31 Dec 2019 Sufficient to cover 67% of debt due in 2023 Moody’s A2 (Stable) A2 (Stable) S&P A
Slide 10: Ports & Related Services
Ports & Related Services TEUs EBITDA Change 23.7 (+1%) • Assets: 31.3 US$11.9bn (3) (-5%) 83.7m HK$ m -17% in local currencies 13.5 -3% (flat) 38 15.2 (-6%) • 283 Berths 13,405 ( 275 ) ( 231 ) 52 Ports ( 1,313 ) 26 Countries EBITDA (1) ( 474 ) 11,150 ( 236 ) 10,914 10% 12% • 83.7m TEUs 8% $10,914m 2
Slide 11: Ports & Related Services
Ports & Related Services Monthly Throughput Change (YoY) HPH Trust • Strong volume recovery of +30% in 2H 2020 compared to 1H 2020, HPH Trust particularly in Yantian (+50%) 20% • Throughput in 2H 2020 exceeded the same period in 2019 by 10% 0% -20% Mainland China & Other Hong Kong Mainland China & O
Slide 12: Retail
Retail • Assets: US$28.1bn (4) Store number EBITDA Growth 468 • World’s largest 2,450 4,115 HK$ m international H&B retailer 16,167 H&B FY 2020: -20% (1H: -44%; 2H: +0.3%) in local currencies +2% ( 633 ) • Operating in 27 markets 5,665 3,469 16,891 16,258 161 1,123 ( 1,774 ) with 12 retail brands (
Slide 13: Retail – Strong Recovery
Retail – Strong Recovery H&B China H&B Asia H&B China FY sales: -19% in local currency FY sales: -16% in local currencies • Sales reduction peaked at -78% in February and 1H sales: -26% 2H sales: -11% 1H sales: -17% 2H sales: -14% narrowed to -11% in 2H 2020, better than store traffic reduction whic
Slide 14: Retail – Strong Recovery
Retail – Strong Recovery H&B Western Europe H&B Eastern Europe H&B Western Europe FY sales: -3% in local currencies • Benelux leading the recovery with strong YOY sales growth of FY sales: flat in local currencies 1H sales: -5% 2H sales: -1% 1H sales: -2% 2H sales: +2% +5% in local currency in 2H 20
Slide 15: Infrastructure
Infrastructure CKI’s reported NPAT (1) Stable Earnings & Dividend Growth HK$ m 2.380 2.430 2.460 2.470 2.260 2.150 2.000 1.860 1.660 1.530 $7,320m 1.330 • Assets: 1.201 1.135 1.100 10,506 1.000 0.948 0.790 0.715 0.680 0.630 0.600 US$29.8bn (4) 7,320 (2) -30% 2019 2020 * “Excluding the deferred tax c
Slide 16: Energy
Energy • Assets: Net Loss (2) Merger with Cenovus Energy US$5.0bn (5) C$(10,016)m Integrated portfolio of Benefits from the Merger 2019: C$(1,370)m high-quality assets • Post merger, C$ m Create a resilient integrated energy leader that Top-tier heavy oil assets Cenovus remain (1,370) (2,421) delive
Slide 17: Telecommunications – 3 Group Europe
Telecommunications – 3 Group Europe Total Revenue $85,799m EBITDA (1) -2% (-3% in local currencies) HK$ m KPI flat in local currencies Active mobile customers $31,378m 38.5m -5% 12-month trailing Net AMPU -6% 33,511 140 58 45 41 258 ( 2,363 ) €11.29 +2% (-7% in local ( 287 ) ( 25 ) 31,378 currencies
Slide 18: Telecommunications – 3 Group Europe
Telecommunications – 3 Group Europe UK Italy Sweden Denmark Austria Ireland 3 Group Europe In million GBP EURO SEK DKK EURO EURO HK$ 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 Total Revenue 2,355 2,384 4,656 4,854 6,734 6,757 2,254 2,182 850 867 593 603 85,799 87,516 % cha
Slide 19: Telecommunications – CKH Networks
Telecommunications – CKH Networks Total Consideration Jan 2021 €10bn (2) Nov 2020 Completion of Q4 2021 • €8.6 billion cash and €1.4 billion Cellnex shares(3) Announced sale of Sweden Tower Target completion CKH Networks(1) to Company disposal Of UK Towers • 15 years MSA, extendable for additional 1
Slide 20: Telecommunications – HAT
Telecommunications – HAT Total Revenue EBITDA $9,147m + 2% $2,034m (1) HK$ m -3% in local currencies (+6% in local currencies) -6% 50 39 (-3% in local 308 currencies) ( 77 ) KPI 2,167 ( 453 ) 1,714 2,111 2,034 2,034 Active mobile customer account 57.0m +25% Data Usage 2019 EBITDA Indonesia Vietnam S
Slide 21: ESG
SG Lu
Slide 22: ESG: Supporting our Employees through COVID-19
ESG Supporting our EMPLOYEES through the COVID-19 pandemic • Implemented measures to ensure safe working environments. • Rolled out flexible and hybrid working policies. • Launched employee wellness programmes focusing on managing anxiety, staying active and keeping connected during lockdowns. • Amo
Slide 23: ESG: Supporting our Customers through COVID-19
ESG Supporting our CUSTOMERS through the COVID-19 pandemic • Established rigorous social distancing and safety measures, and expanded online shopping options. • Offered telecommunications customers free data access and calls to healthcare support websites and hotlines. • Supported customers working
Slide 24: ESG: Supporting our Communities through COVID-19
ESG Supporting our COMMUNITIES through the COVID-19 pandemic • Group-wide support to healthcare services: o Donated PPE, hospital beds and ventilators to hospitals. o Assisted the UK vaccine rollout. o Transformed part of a bottled water manufacturing factory in Hong Kong into a safe environment for
Slide 25: << Age
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Slide 26: Annual Results Appendix
2020 Annual Results Appendix (to insert Operations Review)