Hutchison Telecommunications Hong Kong Holdings Limited · HKEX:215
Hutchison Telecommunications Hong Kong — FY2012 Earnings Presentation
36 slides from Hutchison Telecommunications Hong Kong's earnings presentation, Mar 19, 2013
Slide 1: 2012 Annual Results Presentation
Hutchison Telecommunications Hong Kong Holdings Limited (Stock Code: 215) 2012 Annual Results Presentation 19 March 2013
Slide 2: Disclaimer
Disclaimer These materials have been prepared by Hutchison Telecommunications Hong Kong Holdings Limited (HTHKH) 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, th
Slide 3: Business Performance
Business Performance
Slide 4: Highlights
Highlights Consolidated Consolidated Consolidated Final Dividend Net Profit1 Turnover EBITDA EBIT per share2 13.03 FY 2012 15,536m 3,020m 1,738m 1,227m HK cents 16% 16% 21% 20% 22% 10.70 FY 2011 13,407m 2,611m 1,432m 1,020m HK cents All in Hong Kong Dollars 1 Net profit attributable to shareholders
Slide 5: Turnover
Turnover Consolidated turnover 10,000 8,468 8,635 6,901 HK$ m 6,000 4,939 Hardware revenue Service revenue 2,000 FY2011 FY2012 Mobile business turnover Fixed-line business turnover 8,000 4,000 6,901 3,640 3,403 HK$ m HK$ m 6,000 5,467 5,482 4,939 1,630 1,653 3,000 4,000 2,000 2,000 FY2011 FY2012 FY2
Slide 6: Mobile
Smart Service Station ~ ee WhatsApp RAL —HRBRAER ! 3 Super Safe
Slide 7: Quality customer base
Quality customer base 94% postpaid customers under 3G+4G Total customers* Postpaid customers* 3G+4G : + 25% 3G+4G : + 9% 4,000 3,505 3,776 2,400 1,998 2,021 ’000 ’000 2,614 3,279 2,000 1,200 1,739 1,892 2,014 891 497 259 129 0 0 FY2011 FY2012 FY2011 FY2012 3G + 4G 2G All percentages represent comp
Slide 8: Smart device trendsetter
Smart device trendsetter Smart device penetration ↑ Full spectrum of customers for ongoing upward migration Smart device penetration Smart device ownership 60% 55% % to 3G+4G postpaid customers 2,400 2,000 60% 2,021 58% 1,998 Smart device Customers Hong Kong and Macau Hong Kong and Macau 53% Pos
Slide 9: ARPU
ARPU Cultivating a high-yield customer base Blended Postpaid ARPU* Hong Kong Postpaid ARPU* 300 300 +7% +8% 261 264 HK$ / month HK$ / month 244 244 225 225 150 150 FY2011 FY2012 FY2011 FY2012 * Include 2G, 3G and 4G customers 8
Slide 10: Churn
Churn Low and stable Postpaid Churn* 2.0% 1.9% 1.7% Percentage (%) 1.0% 0.0% FY2011 FY2012 * Include HK and Macau 9
Slide 11: Unveil a new 4G LTE era
Unveil a new 4G LTE era • Running on 1800MHz and 2600MHz bands • Enhance data transmission and customer experience • Stimulate further smart device penetration 10
Slide 12: Enhanced customer experience
Enhanced customer experience Tailored customer services Unique applications 3 Super Safe. 11
Slide 13: Fixed-line
Fixed-line
Slide 14: International & Local Carrier market
International & Local Carrier market Globally connected and recognised Expanding to emerging market 4G LTE driven demand 13
Slide 15: Corporate and SME market
Corporate and SME market Full range offerings including cloud computing services Established market share in various segments 14
Slide 16: Expertise in cloud computing
Data centre Expertise business in cloud computing One-stop solution provider Collaboration with industry giants One-stop IT solution provider Full range of cloud computing services Collaboration with industry giants 15
Slide 17: Residential market
Residential market High speed broadband service Wide array of innovative applications > 1.6 million homepass 16
Slide 18: Profitability
Profitability
Slide 19: Profitability
Profitability Earnings upsurge by 20% Net profit* Earnings per share 1,500 30 1,227 25.46 1,020 21.17 HK cents 1,000 HK$ millions 15 500 0 0 FY 2011 FY 2012 FY 2011 FY 2012 * Net profit after non-controlling interest 18
Slide 20: Dividend
Dividend Solid 75% annual payout Dividend per share Interim Dividend: +17% 15.00 Final Dividend: + 22% 13.03 10.70 10.00 HK cents 6.05 5.16 5.00 0.00 FY 2011 FY 2012 Final dividend Interim dividend 19
Slide 21: Financial Overview
Financial Overview
Slide 22: Financial Highlights
Financial Highlights FY 2011 FY 2012 (HK$m) (HK$m) Turnover 13,407 15,536 +16% Cost of inventories sold (4,663) (6,508) Staff costs (646) (737) Turnover Customer acquisition costs (1,155) (708) Other operating expenses (4,332) (4,563) EBITDA 2,611 3,020 Depreciation and amortisation (1,179) (1,282)
Slide 23: Turnover – mobile business
Turnover – mobile business Continuing smart device penetration Mobile service revenue Mobile hardware revenue 6,000 5,467 5,482 8,000 6,901 4,939 HK$ millions HK$ millions 3,000 4,000 0 0 FY 2011 FY 2012 FY 2011 FY 2012 22
Slide 24: Quality customer base
Quality customer base HK Total Subscribers HK Postpaid Subscribers 3G+4G: +27% 3G+4G: +9% 4,000 2,400 3,088 3,301 1,863 1,840 ’000 ’000 2,000 2,204 2,805 1,200 1,588 1,736 884 496 0 252 127 0 FY 2011 FY 2012 FY 2011 FY 2012 Macau Total Subscribers Macau Postpaid subscribers 3G: +16% 2,014 3G: +4% 1,
Slide 25: Turnover – mobile service revenue
Turnover – mobile service revenue 59% data revenue Total service revenue: Total service revenue: HK$5,467m HK$5,482m Roaming Roaming data data 7% 10% Roaming Roaming voice voice 16% Local data 15% Local data Residential 46% 20% 49% Local voice Local voice 31% 26% Total Data Revenue: 53% FY 2011 To
Slide 26: Mobile data revenue
Mobile data revenue Robust roaming data growth Local data Roaming data +9% +32% 3,000 2,698 600 528 2,488 HK$ millions HK$ millions 400 1,500 300 0 0 FY 2011 FY 2012 FY 2011 FY 2012 25
Slide 27: Turnover - Fixed-line business
Turnover - Fixed-line business Steady growth and cushion against volatility Total revenue: Total revenue: HK$3,403m HK$3,640m Others1 Others1 6% 6% Residential Residential 16% 17% International & International & Local Carrier Local Carrier 52% Corporate 54% Corporate & & Business Business 24% 25%
Slide 28: Key cost items
Key cost items Cautious and well-controlled Cost of inventories sold Key cost items 10,000 10,000 7,312 7,290 HK$ millions HK$ millions 6,508 1,179 16% 1,282 17% 16% 708 10% 4,663 1,155 5,000 5,000 737 10% 646 9% 65.3% 64.9% 4,332 59% 4,563 63% 65.0% 0 0 FY 2011 FY 2012 FY 2011 FY 2012 Depreciatio
Slide 29: Capex investment
Capex investment Capex and % of service revenue Cautious and demand-driven 2,000 30% 1,604 % to service revenue 1,148 20% HK$ m 1,000 19% 13.6% 14% 10% 0 0% FY 2011 FY 2012 Capex and % of service revenue (Mobile) Capex and % of service revenue (Fixed-line) 1,000 30% 1,000 30% 879 % to service reve
Slide 30: Liquidity
Liquidity Strong FCF before spectrum acquisition EBITDA less CAPEX Free cashflow (FCF) 1 1,463 1,416 1,500 1,500 1,375 1,168 HK$ millions HK$ millions 1,075 1,093 1,000 1,000 500 500 0 0 FY 2010 FY 2011 FY 2012 FY 2010 FY 2011 FY 2012 1 Free cashflow being cashflow from operating activities less c
Slide 31: Strong financial position
Strong financial position Leverage ratio = 1.2 Net debt 4,000 3,671 3,564 40% Net debt to net total capital = 24% 3,386 Net debt to net total HK$ millions Refinancing completed capital % 26% 26% 2,000 24% 20% - HK$5.5b facility matured in June 2015 0 0% FY 2010 FY 2011 FY 2012 Net debt/ LTM EB
Slide 32: Outlook
Outlook
Slide 33: Connect to the Future
Connect to the Future
Slide 34: Outlook
Outlook Group Best positioned as an integrated operator in HK Strong financial fundamentals Revenue driven capex spending Mobile Fixed-line Mobile market leadership One-stop solution provider Network Excellence Engaging new overseas carriers and MNCs Customer focus Partner with pro
Slide 35: Q&A
Q&A
Slide 36: Thank You
Thank You
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