Hutchison Telecommunications Hong Kong Holdings Limited · HKEX:215

Hutchison Telecommunications Hong Kong — FY2015 Earnings Presentation

27 slides from Hutchison Telecommunications Hong Kong's earnings presentation, Feb 29, 2016

  1. Slide 1: 2015 Annual Results Presentation

    Hutchison Telecommunications Hong Kong Holdings Limited (Stock code: 0215) 2015 Annual Results Presentation 29 February 2016

  2. Slide 2: Disclaimer

    Disclaimer Potential investors and shareholders (the “Potential Investors and Shareholders”) of Hutchison Telecommunications Hong Kong Holdings Limited (“the Company”) are reminded that information contained in this Presentation comprises extracts of operational data and financial information of the

  3. Slide 3: Business Performance

    Business Performance

  4. Slide 4: Highlights

    Highlights 2015 2015 2014 vs HK$ millions HK$ millions 2014 Consolidated Revenue 22,042 16,296 +35% Consolidated EBITDA 2,788 2,679 +4% Consolidated EBIT 1,430 1,358 +5% Net Profit(1) 915 833 +10% Earnings per share (HK cents) 18.99 17.29 +10% Full year Dividend per share (HK cents) 14.20 12.95 +10%

  5. Slide 5: Outlook

    Outlook Mobile business  More customers upgrade to 4G LTE plan  Customer-oriented  Maximise utilisation of existing assets Fixed-line business  One stop solution for corporate customers  Enhance coverage for residential broadband  Cope with increasing OTT and IoT demand Cost  Continued enhanc

  6. Slide 6: Mobile Network Development

    Mobile Network Development Data speed F+T 4CC CA Lab Trial F+T 3CC 256 VoLTE Field Trial QAM F+F 2CC C-RAN Deployed VoWi-Fi MIMO F+T & T+T 2CC Deploying NFV LTE LTE-A 2CC 3CC 4CC 5CC … 5G 5

  7. Slide 7: Fixed-line Product & Service Overview

    Fixed-line Product & Service Overview Application Residential HGC Data Center HKEX PSTN Application Platform HGC HGC Voice HGC Mobile Platform Cloud Connect HGC SDNet/2 3 Broadband HGC HGC Internet Platform Fronthaul GPON WiseNET Core Platform 3 Mobile Site 100G MetroLambda Access 6

  8. Slide 8: United Networks

    United Networks Extensive fibre-optic network Mobile stations supported by 1G in Hong Kong fibre-optic connections 10G-ready home broadband network and 100G optical-fibre connection for carriers The only operator with full Fixed Mobile collection of spectrum bands Extensive global reach and a total

  9. Slide 9: Mobile

    S @ WK ‘Three.comhk 3 8u 1G

  10. Slide 10: Mobile Business

    Mobile Business Mobile revenue Local net customer service revenue margin(1) 3,500 20,000 18,477 3,126 3,130 +46% HK$ millions HK$ millions 12,632 13,556 1,750 10,000 6,822 4,646 4,106 0 1,164 815 0 2014 2015 2014 2015 Standalone hardware revenue Note 1: represents net customer service revenue exclud

  11. Slide 11: Mobile KPIs

    Mobile KPIs Total customers in Hong Kong and Macau Blended local postpaid ARPU and net AMPU 2,200 240 +13% 212 3,197 2,869 +6% +17% 3,031 +18% 188 161 HK$ / month 154 138 ‘000 130 1,100 120 1,537 1,660 1,542 1,547 1,484 1,327 0 0 2H14 1H15 2H15 2014 2015 2014 2015 2014 2015 Local net AMPU Local net

  12. Slide 12: Fixed-line

    VViseNE T CloudConnect WiseNE T \/ uct Cloud At Cloud uct Cloud pctcleni eax Surveillance Audience Analytics Signage Cuee Cloud Out Superhub Auee Cloud Video Conferencing Hosted Exchange Email Service Document Management Service

  13. Slide 13: Fixed-line business

    Fixed-line business Others(1) Others(1) 3% 3% Residential Residential 15% 14% International International and and Corporate Local Carrier Corporate Local Carrier and 54% and 53% Business Business 28% 30% 2014 total revenue 2015 total revenue HK$4,102 million HK$3,973 million 1 “Others” include reven

  14. Slide 14: Corporate and Business Market

    Corporate and Business Market • Overall 3% growth with 4% Corporate and Business revenue increase in data revenue from growing demand of data 1,400 connectivity 1,144 +3% 1,180 256 255 • HK$ millions Solution based offerings 30% including cloud base application 700 and data centre services 888 925 C

  15. Slide 15: International and Local Carrier Market

    International and Local Carrier Market • 5% drop in total revenue, due to International and local carrier revenue 14% drop in low margin voice but 4% growth in data 1,500 1,151 1,192 • International service leveraging 1,062 HK$ millions 914 submarine cable facilities 53% 750 • Local backhaul service

  16. Slide 16: Residential Market

    Residential Market • 7% decrease due to competitive pricing in certain segments • Continue to capture fast-speed market share 14% • 1GB FTTH in offer plus with infotainment focus • Plan to increase homepass to >2m by 2017 (>80% coverage) Contribution to fixed-line revenue 15

  17. Slide 17: Financial Overview

    Financial Overview

  18. Slide 18: Financial Highlights - Consolidated

    Financial Highlights - Consolidated 2015 2014 Favourable/ HK$ millions HK$ millions (Unfavourable) Revenue 22,042 16,296 +35% EBITDA 2,788 2,679 +4% EBITDA margin % (EBITDA / service revenue) 36% 32% +4% EBIT 1,430 1,358 +5% Profit before taxation 1,293 1,168 +11% Taxation (216) (205) -5% Profit for

  19. Slide 19: Mobile business

    Mobile business 2015 2014 Favourable/ HK$ millions HK$ millions Unfavourable Total revenue 18,477 12,632 +46% - Net customer service revenue 4,106 4,646 -12% - Hardware revenue 14,371 7,986 +80% - Bundled sales revenue 815 1,164 -30% - Standalone handset sales revenue 13,556 6,822 +99% Net customer

  20. Slide 20: Fixed-line business

    Fixed-line business 2015 2014 Favourable/ HK$ millions HK$ millions (Unfavourable) Revenue 3,973 4,102 -3% Total CACs and Operating expenses (2,699) (2,795) +3% Total CACs and Opex as a % of revenue 68% 68% - EBITDA 1,274 1,307 -3% EBITDA margin % 32% 32% - Depreciation and amortisation (697) (701)

  21. Slide 21: Key cost items

    Key cost items Cost of inventories sold Key cost items 15,000 14,063 8,000 7,225 -9% 6,549 1,321 18% HK$ millions HK$ millions 1,358 21% 678 9% +82% 734 10% 384 6% 7,713 830 13% 7,500 4,000 4,492 63% 3,977 60% 0 65.0% 0 2014 2015 2014 2015 Depreciation and amortisation Staff costs Customer acquisiti

  22. Slide 22: EBITDA/EBIT Margin

    EBITDA/EBIT Margin Consolidated EBITDA Consolidated EBIT 4,000 36% 36% 3,000 20% 32% 19% 32% 29% 16% 2,788 15% 2,679 HK$ millions 308 13% HK$ millions 273 1,358 1,430 2,000 18% 1,500 10% 273 308 2,406 2,480 1,085 1,122 0 0% 2014 2015 0 0% 2014 2015 Service EBITDA EBITDA margin Service EBIT EBIT marg

  23. Slide 23: Capex investment

    Capex investment Consolidated Capex 1,500 30% 1,198 % to service 1,059 revenue HK$ millions 750 15% 14% 13% 0 0% 2014 2015 Mobile Capex Fixed-line Capex 800 20% 800 30% 664 % to service % to service 574 revenue 534 revenue HK$ millions 485 HK$ millions 400 14% 14% 10% 400 15% 13% 12% 0 0% 0 0% 2014

  24. Slide 24: Financial position

    Financial position Net debt Net debt/ LTM EBITDA 5,000 40% 2.0 Net debt to net total 3,593 HK$ millions 1.3 capital % 2,810 2,941 1.1 1.0 2,500 23% 20% 1.0 19% 20% 0 0% 0.0 As at As at As at As at As at As at 31 Dec 2014 30 Jun 2015 31 Dec 2015 31 Dec 2014 30 Jun 2015 31 Dec 2015 Net debt to net tot

  25. Slide 25: Liquidity and Dividend

    Liquidity and Dividend EBITDA less CAPEX Dividend per share 2,000 20.00 +17% 1,729 1,481 +10% 14.20 HK$ millions 12.95 HK cents 1,000 10.00 0 0.00 2014 2015 2014 2015 24

  26. Slide 26: Q&A

    Q&A

  27. Slide 27: Thank You

    Thank You

Hutchison Telecommunications Hong Kong Holdings — FY2015 Earnings Presentation on 6ix