Hutchison Telecommunications Hong Kong Holdings Limited · HKEX:215
Hutchison Telecommunications Hong Kong — FY2021 Earnings Presentation
32 slides from Hutchison Telecommunications Hong Kong's earnings presentation, 2022
Slide 1: 2021 Annual Results Presentation
2021 Annual Results Presentation
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: Agenda
Agenda Result Highlights Business Review & Development Financial Review Sustainability Outlook QR Code for the Group’s Financial Results
Slide 4: Result Highlights
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Slide 5: Highlights: Financial Results
Highlights : Financial Results EBIT Final Revenue EBITDA Dividend $1,477m $132m $5,385m -12% YoY -67% YoY 5.21cents +18% YoY flat vs LY EPS Full Year Profit $4m 0.08 Dividend -99% YoY cents 27.29 cents -99% YoY +264% YoY 5
Slide 6: Service Performance: Steady Growth in Local Services
Service Performance : Steady Growth in Local Services • Local service revenue grew 2%, of which corporate solutions revenue Service Service grew by 35% Revenue EBITDA • Roaming revenue slashed by 29%, $3,241m $1,415m reflecting the full year impact of travel -1% YoY -14% YoY restrictions • Healthy S
Slide 7: Business Review & Development
Business Review & Development
Slide 8: Diversify Development to keep resilient under the COVID-19 Crisis
Diversify Development to keep resilient under the COVID-19 Crisis Best Best Digitised Network Distribution Prepaid 3.OneWorld 3Business Provision of non-telecom Optimise network coverage Increase both online and services through co- and connectivity with Digitised prepaid platform Build up portfolio
Slide 9: Best Network: Passion in Network Excellence
Best Network : Passion in Network Excellence Completed 2.1 GHz 5G refarm across all networks Operates a significant amount of 1,300 3.5GHz 5G “golden spectrum” band base stations 5G Efficient spectrum utilisation to optimise customer experience and reliability • 5G coverage reached 99%* • 5G site lo
Slide 10: Hotspot: Building on Customer Demand and Relevance to 5G Applications
Hotspot : Building on Customer Demand and Relevance to 5G Applications • Hotspot district across 18 districts • To educate customer to adopt 5G services • Optimise location to customer relevance 10
Slide 11: Best Distribution: Best Customer Convenience
Best Distribution : Best Customer Convenience Strategic partnership to expanding distribution network Total POS : 500+ 11
Slide 12: Digitised Prepaid
Digitised Prepaid Customers Mobile (Launched in Apr 2021) Number +275% YoY Portability Lifestyle Campaign 2020 2021 Revenue Real-name +1,187% YoY Registration Online + Offline 2020 2021 subscribe ANYTIME ANYWHERE Renewal Ratio +47%-pts YoY 72% 25% 2020 2021 12
Slide 13: 5G Broadband
5G Broadband • Own Dedicated 5G Broadband Line • Dual Locations (Home/Office) • Unlimited Speed • Change Locations Available • No landlines • Activate in minutes • Full Range of 5G Router • On-Site Testing 13
Slide 14: 3.One World: 5G Connected Together
3.One World : 5G Connected Together 5G LIVE NFT Art Show ORBSTELLAR by XCEPT 5G LIVE NFT / ArtTech Digital Art Fair Universe in a Flower Art Space @Tsz Shan Monastery @3Supreme 14
Slide 15: 3.One World: Customer Engagement
3.One World : Customer Engagement Encourage Vaccination MoneyBack Rewards “LeaveHomeSafe” with HKJC Elderly Care Workshops Free Data Entitlement 15
Slide 16: 3Business
3Business Construction 5G BIM Solution Subsidy Scheme for Encouraging Early Art Property Deployment of 5G 5G 4K Broadcasting 5G Smart Robot + AI Cloud 3Business one-stop support Solution Revenue Education Textile & Clothing +35% YoY Smart Classroom 5G 4K Video Conferencing Leads industry in developi
Slide 17: 3Education: Interactive Teaching and Learning Solutions
3Education: Interactive Teaching and Learning Solutions AR DIY for Education AI Campus TV Station STEM • DIY and view AR • Machine learning • High speed and reliable 5G • Virtual Reality + multimedia content by mobile network equipped Augmented Reality • Big Data scanning the teaching with professio
Slide 18: Products & Services
Products & Services 5G LIVE UP 3Care Bill-to-3 Entertainment Lifestyle Mobile Security 18
Slide 19: Financial Review
‘Hutchison Telecom LE] Hutchison Tee HE ong kong Hoiaings
Slide 20: Revenue: Building Growth Momentum
Revenue : Building Growth Momentum Local Service Revenue ($m) Represents 92% of service revenue +2% YoY driven by 35% growth in revenue from Corporate Solutions Service Revenue ($m) Revenue 2,917 2,980 2H2021 $1,477m -2% vs 1H 2H 2H -1% YoY $5,385m 2H2021 1H 1H $2,820m 3,285 3,241 2H2021 $1,611m +18
Slide 21: Customers: Solid Customer Base
Customers : Solid Customer Base Prepaid Postpaid 55% 45% of total customer base (2020: 56%) of total customer base (2020: 44%) Decreased by 1%-pt YoY Increased by 1%-pt YoY 3,202k Jun-21 1,810k -2% YoY Jun-21 1,423k Dec-20 3,279k Dec-21 1,760k Dec-21 1,442k Jun-21 3,233k Decreased by 5% YoY Increase
Slide 22: Postpaid ARPU & Churn: ARPU Growth along with Stable Churn
Postpaid ARPU & Churn : ARPU Growth along with Stable Churn Local Gross ARPU Local Net ARPU $178 $180 $159 $153 +1% YoY +4% YoY 2020 2021 2020 2021 Gross ARPU = monthly average spending per postpaid user including handset contribution for bundled plan. Net ARPU = monthly average spending per postpai
Slide 23: Key Cost and Capex: Optimised & Advanced Network
Key Cost and Capex : Cash and bank balances ($m) : Optimised & Advanced Network Healthy Cash Position • Special interim dividend of HK$954 million in Sep 2021 • Settlement of 5G investment and spectrum spending Operating Costs Capex (inc. CACs, staff costs & other opex) (excl. telecommunications lic
Slide 24: Sustainability
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Slide 25: Sustainability: Focusing on what Matters to Stakeholders
Sustainability: Focusing on what Matters to Stakeholders Action on Climate Change Promoting Sustainable Ecosystem 10% YoY Carbon Emission Intensity (1) Sustainability Assessment 2021 Progress: -13% in Tender Review 2% YoY Paper Consumption Encourage Customers to Adopt Sustainable Lifestyle 2
Slide 26: Outlook
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Slide 27: Outlook
Outlook • Continue to optimise our best network as one of leading global network brands • Monetise 5G technology innovation to accelerate enterprise and consumer 5G adoptions • Grow from exciting new opportunities emphasising on 5G Mobile Broadband • Leverage the advantage of the distribution networ
Slide 28: Thank You
U | Hutchison Telecom | | | Hong Kong Holdings Thank You => [QL] Amember of cx Hutson Holdings
Slide 29: Appendix
LE] Hutchison Telecom HE ong kong Hoiaings SS ‘es
Slide 30: Financial Information
Financial Information Appendix HK$ million 2021 2020 Change Revenue 5,385 4,545 +18% Net customer service revenue 3,241 3,285 -1% • Local service revenue 2,980 2,917 +2% • Roaming service revenue 261 368 -29% Hardware and other product revenue 2,144 1,260 +70% • Bundled sales revenue 395 345 +14% •
Slide 31: Financial Information (cont'd)
Financial Information (cont’d) Appendix HK$ million 2021 2020 Change Total margin 2,879 2,895 -1% CACs (529) (481) -10% Less: Bundled sales revenue 395 345 +14% CACs (net of hardware and other product revenue) (134) (136) +1% Operating expenses (1,325) (1,149) -15% Opex as a % of net customer servic
Slide 32: Financial Information (cont'd)
Financial Information (cont’d) Appendix HK$ million 2021 2020 Change EBITDA 1,477 1,672 -12% Depreciation and amortisation (1,345) (1,269) -6% EBIT 132 403 -67% Service EBIT 70 381 -82% Net interest and other finance (costs) / income (40) 47 -185% Profit before taxation 92 450 -80% Taxation (8
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