Hutchison Telecommunications Hong Kong Holdings Limited · HKEX:215
Hutchison Telecommunications Hong Kong — FY2013 Earnings Presentation
26 slides from Hutchison Telecommunications Hong Kong's earnings presentation, Feb 24, 2014
Slide 1: 2013 Annual Results Presentation
Hutchison Telecommunications Hong Kong Holdings Limited (Stock Code: 215) 2013 Annual Results Presentation 24 February 2014
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 FY 2013 FY 2012 (1) (Restated) HK$ millions HK$ millions Consolidated Turnover 12,777 15,536 -18% Consolidated EBITDA 2,674 3,008 -11% Consolidated EBIT 1,339 1,726 -22% Net Profit(2) 916 1,215 -25% Earnings per share 19.01 HK cents 25.22 HK cents -25% Total Dividend per share 14.25 HK ce
Slide 5: Prospects
Prospects Balanced integrated telecommunications operator, with diversified mobile business in HK and Macau, as well as fixed-line business in Hong Kong EBITDA of mobile/fixed-line business contributed 56%/44% of the overall EBITDA* in 2013, providing steady cash inflow for operations Expect m
Slide 6: Mobile
a WY) (( ® re) > = Mobile
Slide 7: Quality customer base
Quality customer base Total customers* 3G+4G LTE Postpaid customers* Total 3G + 4G LTE: +7% 4,000 3,776 3,771 3,000 61% 70% 58% % 3G+4G LTE postpaid 1,892 1,888 1,892 1,888 customers ’000 ’000 2,000 1,500 1,100 35% 1,151 1,387 1,618 792 737 368 129 45 0 220 2,014 0 0% FY 2012 FY 2013 FY 2012 FY 2013
Slide 8: Mobile KPIs
Mobile KPIs Blended Postpaid Net AMPU(1) Blended Postpaid Gross ARPU(2) 300 300 261 254 HK$ / month HK$ / month 200 180 175 200 100 100 0 0 FY 2012 FY 2013 FY 2012 FY 2013 Blended Postpaid Net ARPU(3) Postpaid Churn 300 10.0% Percentage (%) HK$ / month 216 205 200 5.0% 100 1.9% 1.9% 0 0.0% FY 2012 F
Slide 9: OTT Focus
OTT Focus More focus to offer tailored customer experience Menu Translator 3 Citi Wallet LINE Data Pack 3HK Wi-Fi (with auto-login function) i-Pair 8
Slide 10: Fixed-line
Fixed- “line @ Loic | wtovx LO 0 aw HGC
Slide 11: International & Local Carrier market
International & Local Carrier market 54% Contribution to 2013 fixed-line revenue HGC global reach International service • Horizontal & vertical expansion • Collaboration with new players • Devising new products and services Local backhaul service 10 Local fixed-line coverage
Slide 12: Corporate and business market
Corporate and business market A variety of services suiting differing needs 27% Solid market position Contribution to 2013 fixed-line revenue Market penetration in various sectors 100% 94% 95% 90% 80% 50% 0% HK HK Public Hang Seng Top 10 Government Hospitals1 Index Investment Departments1 Consti
Slide 13: Residential market
Residential market 3HOME BROADBAND Wi-Fi Entertainment 15% Solution hgc on air Multimedia focus Contribution to 2013 fixed-line revenue 12
Slide 14: Data centre business and others
Data centre Expertise business in cloud and others computing Carrier-grade data centre accredited with 4% ISO27001 security certification One-stop IT solution provider One-stop cloud and fibre-optic connectivity service Contribution to 2013 fixed-line revenue Full range of cloud computing se
Slide 15: Financial Overview
Financial Overview
Slide 16: Financial Highlights - Consolidated
Financial Highlights - Consolidated (Restated) FY 2012 FY 2013 HK$m HK$m Turnover 15,536 12,777 -18% EBITDA 3,008 2,674 -11% Consolidated EBITDA margin (%) (EBITDA / service revenue) 35% 31% Depreciation (1,282) (1,335) EBIT 1,726 1,339 -22% Net interest expense (154) (160) Share of results of joint
Slide 17: Turnover
Turnover Consolidated turnover 20,000 35% 36% 31% service revenue(%) EBITDA margin on 15,536 15,000 12,777 24% HK$ millions 6,901 10,000 4,221 12% 5,000 8,635 8,556 0 0% FY 2012 FY 2013 Mobile business turnover Fixed-line business turnover 20,000 38% 40% 6,000 32% 36% 31% 29% service revenue(%) EBIT
Slide 18: Turnover – mobile service revenue
Turnover – mobile service revenue FY 2012 FY 2013 Service revenue: Service revenue: HK$5,482m HK$5,138m Net customer service margin(2): 85% Net customer service margin(2): 87% Roaming Roaming data(1) Data(1) 8% 9% (vs FY12: Roaming Roaming +9%) non-data Local data(1) non-data 16% 17% (vs FY12: -2%)
Slide 19: Turnover - Fixed-line business
Turnover - Fixed-line business FY 2012 FY 2013 Total revenue: Total revenue: HK$3,640m HK$3,880m Others1 4% Others1 6% Residential 15% Residential (vs FY12: +3%) 16% International & International & Local Carrier Local Carrier Corporate 54% Corporate & 54% & Business (vs FY12: +6%) Business 27% 24% (
Slide 20: Key cost items
Key cost items Cost of inventories sold Key cost items 8,000 8,000 +3% 7,495 -39% 7,302 6,508 1,335 18% 1,282 18% HK$ millions HK$ millions 708 10% 800 11% 749 10% 783 10% 3,943 4,000 4,000 65.3% 64.9% 4,563 62% 4,577 61% 65.0% 0 0 FY 2012 FY 2013 FY 2012 FY 2013 (Restated) Depreciation and amortisa
Slide 21: Profitability
Profitability Net profit* Earnings per share 1,500 30 1,215 25.22 19.01 HK$ millions 1,000 916 20 HK cents 500 10 0 0 FY 2012 FY 2013 FY 2012 FY 2013 (Restated) (Restated) * Net profit after non-controlling interests 20
Slide 22: Capex investment
Capex investment Consolidated Capex 2,000 30% 1,604 % to service revenue 1,280 HK$ millions 1,000 19% 15% 13.6% 15% 0 0% FY 2012 FY 2013 Mobile Capex Fixed-line Capex 1,000 30% 800 725 30% 879 % to service revenue % to service revenue 623 657 HK$ millions HK$ millions 20% 500 15% 400 15% 16% 16% 13%
Slide 23: Financial position
Financial position Net debt Net debt/ LTM EBITDA 5,000 40% 2.0 4,362 1.6x Net debt to net total 3,671 3,564 1.4x HK$ millions 1.2x capital % 28% 26% 2,500 24% 20% 1.0 0 0% 0.0 FY 2011 FY 2012 FY 2013 FY 2011 FY 2012 FY 2013 22
Slide 24: Dividend and Liquidity
Dividend and Liquidity EBITDA less CAPEX Dividend per share 1,500 1,404 1,394 20.00 100% 75% 75% HK$ millions 15.00 Payout ratio (%) 1,000 13.03 HK cents 10.00 50% 8.00 6.05 6.25 500 5.00 0 0.00 0% FY 2012 FY 2013 FY 2012 FY 2013 (Restated) Final dividend Interim dividend 23
Slide 25: Q&A
Q&A
Slide 26: Thank You
Thank You
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