Ck Hutchison Holdings Ltd · HKEX:1
Ck Hutchison — H1 2022 Earnings Presentation
35 slides from Ck Hutchison's earnings presentation, Aug 4, 2022
Slide 1: 2022 Interim Results Operations Analysis
2022 Interim Results Operations Analysis
Slide 2: Disclaimer
Disclaimer 2022 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 s
Slide 3: Solid Foundation accelerating Shareholders Return
CKHH Interim 2022 Solid Foundation accelerating Shareholders Return 50+ countries Diversification 5 continents 4 core businesses Net earnings $19.1bn + 4% & EPS (1) DPS $0.84 + 5% (Post-IFRS 16) $4.98 + 5% Net Debt & $168.4bn Flat vs Dec 2021 Net Debt Ratio (2) 20.5% Pro-forma with UK Tower proceeds
Slide 4: Resilient operational performances delivering stable growth
CKHH Interim 2022 Resilient operational performances delivering stable growth $229.6bn $58.2bn Op FCF (1) Revenue (1) EBITDA (1) $16.0 bn (pre-IFRS 16) +8% (pre-IFRS 16) +5% (pre-IFRS 16) (1H 2021 : $17.7 bn) (+13% in local currencies) (+9% in local currencies) EBIT (1) $34.5bn (pre-IFRS 16) +5% (+9
Slide 5: EBITDA
EBITDA 2022 EBITDA (4) EBITDA Change by Division Post-IFRS 16 Pre-IFRS 16 $70.5bn $58.2bn HK$ m Underlying EBITDA +8% in reported currency +5% ( 12,577 ) +13% in local currencies 5,138 12,281 (+9% in local currencies) 4,912 846 4,742 70,525 68,167 1,499 1,659 ( 2,573 ) ( 231 ) ( 6,273 ) ( 2,323 ) 58
Slide 6: Operating FCF
Operating FCF 2022 Operating FCF Operating FCF by Core Business $16.0bn (1H 2021: $17.7bn) HK$ m 27,650 24,047 5,240 6,177 (14,658) (10,920) EBITDA of Subsidiaries (2) Dividends from Asso & JVs (571) (3,315) Capex Investments in Asso & JVs EBITDA – Share of Telecom licences Asso & JVs 1H 2021 1H 202
Slide 7: Operating FCF by division
Operating FCF by division 2022 (2) EBITDA – Co & Subsidiaries 4,972 4,461 1,781 12,470 (24) 387 24,047 EBITDA – Share of Asso. & JVs 3,301 1,569 13,083 42 2,458 8,606 29,059 Dividends from Asso. & JVs 1,017 836 3,855 - - 469 6,177 Capex 968 780 92 8,883 167 30 10,920 Investments in Asso. & JVs 77 -
Slide 8: Free Cash Flow
Free Cash Flow 2022 Free Cash Flow Free Cash Flow Year-on-Year Change 1H 2022 Operating Free Cash Flow 15,989 HK$ m $6.1bn Interests and ( 5,009 ) taxes paid Working Capital 39,871 changes ( 2,504 ) Underlying Free Cash Flow: +320% Telecom licences ( 138 ) 4,599 (1,140) 3,738 6,066 (2) (38,425) 1,91
Slide 9: Financial Profile
Financial Profile 2022 Debt Maturity Profile Net Debt Jun 2022 Dec 2021 Jun 2021 Net debt (1) $168.4bn $168.2bn $164.3bn Net debt to net total capital ratio (1) 20.5% 20.3% 19.9 % Credit Ratings 30 Jun 2022 31 Dec 2021 Sufficient to cover 95% of debt Moody’s A2 (Stable) A2 (Stable) due in 2024 S&P A
Slide 10: Ports & Related Services
Ports & Related Services 2022 TEUs EBITDA Growth HK$ m +21% in local currencies 11.7 • Assets: 16.1 (flat) US$12.4bn (3) (-2%) 42.4m 479 684 ( 209 ) 6.0 -1% 384 (-12%) 8,273 8,482 • 293 Berths 8.6 (+6%) ( 15 ) ( 33 ) 6,983 52 Ports 26 Countries EBITDA (1) 1H 2021 HPH Trust Mainland China Europe Asia
Slide 11: Retail
Retail 2022 Store number EBITDA Change • Assets: US$27.5bn (3) 422 HK$ m • World’s largest H&B: -1% in local currencies 2,450 4,055 16,244 437 38 international H&B 374 ( 151 ) retailer flat Y-o-Y 6,725 ( 929 ) ( 464 ) 6,494 5,670 3,647 (-1% vs Dec 2021) 6,030 • Operating in 28 markets with 12 retail
Slide 12: Infrastructure
Infrastructure 2022 CKI’s reported NPAT (1) Stable Earnings & Dividend Growth 2.380 2.500 2.470 2.430 2.260 2.460 2.150 2.000 1.860 1.660 HK$ m • Assets: 1.530 1.330 4,409 $4,409m 1.201 1.135 1.100 1.000 3,011 0.948 0.790 (2) 0.715 US$29.4bn (3) 0.700 1H 2021 1H 2022 +46% * • Largest CKI’s S&P Credi
Slide 13: Telecommunications – 3 Group Europe
Telecommunications – 3 Group Europe 2022 Total Revenue EBITDA (2) HK$ m $39,407m -9% -11% in local currencies 95 (-1% in local currencies) ( 574 ) 93 108 $11,689m ( 1,764 ) ( 10 ) ( 34 ) ( 997 ) KPI -21% 14,772 14,198 (-14% in local 12,686 11,689 Active mobile customers Net AMPU (1) currencies) 39.2
Slide 14: Telecommunications – 3 Group Europe
Telecommunications – 3 Group Europe 2022 UK (1) Sweden Denmark Austria Ireland (1) (2) Italy 3 Group Europe before one-off In million GBP EURO SEK DKK EURO EURO HK$ 1H 2022 1H 2021 1H 2022 1H 2021 1H 2022 1H 2021 1H 2022 1H 2021 1H 2022 1H 2021 1H 2022 1H 2021 1H 2022 1H 2021 Normalised Tower assets
Slide 15: Telecommunications – CKH Networks: Key Milestones, Use of Proceeds
Telecommunications – CKH Networks 2022 Key Milestones Disposal Summary Jan 2021 Nov 2020 Announced sale of Completion of Sweden Tower 2H 2022 • Total proceeds: €10bn CKH Networks to Cellnex Company disposal (proceeds received: €0.8bn) UK Tower assets disposal €8.6 billion cash Dec 2020 Jun 2021 Co
Slide 16: Telecommunications – Indosat Ooredoo Hutchison
Telecommunications – Indosat Ooredoo Hutchison 2022 Total Active Customer Base 96.2m Highly accretive transaction for the Group on 44.3m +51.9m both profit and value generation customers Y-o-Y H3I 1H 2021 IOH 1H 2022 Enhance Profitability with over 200+% growth and (pre-merger) (post-merger) 1,000+
Slide 17: 2022 Sustainability
2022 Sustainability
Slide 18: Sustainability Focus Areas
Sustainability Focus Areas 2022 Group focus areas and achievements ESG rating improvements: MSCI upgrade from B to BBB in May 2022; Sustainalytics upgrade from High risk (38.7) to Medium risk (29.2) and now ranked 9th of 112 conglomerates globally Release of the 2021 Sustainability Report (May 2
Slide 19: 2022 Outlook
2022 Outlook
Slide 20: Outlook for 2H 2022
Outlook for 2H 2022 Solid Earnings Telecom in-market consolidation / network sharing are the main focus Continue share buybacks after the completion of the UK tower assets disposal Slow recovery of H&B China sales but pandemic continues to cause uncertainty Continue to benefit from diversity of busi
Slide 21: Q&A
Q&A
Slide 22: 2022 Interim Results Appendix
2022 Interim Results Appendix
Slide 23: Analyses of Core Business Segments by Geographical Location
CK Hutchison Holdings Limited 2022 Interim Report Analyses of Core Business Segments by Geographical Location Total Revenue for the six months ended 30 June 2022 HK$229,616 million Europe HK$107,397 million 6% 43% 14% 37% 20% Mainland China HK$17,760 million 20% 10% 26% 67% 6% 1% 1% 47% Hong Kong HK
Slide 24: Operations Highlights
CK Hutchison Holdings Limited 2022 Interim Report Operations Highlights Ports and Related Services 30 June 2022 30 June 2021 Local currencies HK$ million HK$ million Change change Total Revenue (1) 22,651 19,933 +14% +18% EBITDA (1) (4) 8,273 6,983 +18% +21% EBIT (1) (4) 6,042 4,769 +27% +30% Throug
Slide 25: Ports throughput decreased marginally by 1% to 42.4 million TEU
CK Hutchison Holdings Limited 2022 Interim Report Throughput decreased marginally by 1% to 42.4 million TEU in the first half of 2022, with 64% and 36% local and transhipment volume respectively (1H 2021: 62% and 38% local and transhipment volume respectively). The largest reduction in throughput wa
Slide 26: Retail
CK Hutchison Holdings Limited 2022 Interim Report Retail 30 June 2022 30 June 2021 Local currencies HK$ million HK$ million Change change Total Revenue 84,905 82,621 +3% +9% EBITDA (1) 6,030 6,725 -10% -3% EBIT (1) 4,331 4,939 -12% -4% Store Numbers 16,244 16,206 – Net Change In Store Comparable Sto
Slide 27: Retail Total Revenue and Total EBITDA
CK Hutchison Holdings Limited 2022 Interim Report Total Revenue Total EBITDA (1) Local Local 30 June 30 June currencies 30 June EBITDA 30 June EBITDA currencies HK$ million 2022 % 2021 % Change change 2022 % Margin 2021 % Margin Change change H&B China 9,685 11% 11,599 14% -17% -17% 623 10% 6% 1,546
Slide 28: Infrastructure
CK Hutchison Holdings Limited 2022 Interim Report Infrastructure 30 June 2022 30 June 2021 Local currencies HK$ million HK$ million Change change Total Revenue (1) 27,600 27,798 -1% +4% EBITDA (1) (2) 14,864 14,803 – +6% EBIT (1) (2) 9,851 9,686 +2% +7% CKI Reported Net Profit (under Post-IFRS 16 ba
Slide 29: CK Hutchison Group Telecom
CK Hutchison Holdings Limited 2022 Interim Report CK Hutchison Group Telecom 30 June 2022 30 June 2021 Local currencies 30 June 2022 30 June 2021 In million HK$ HK$ Change change EURO EURO Total Revenue 41,817 45,826 -9% -2% 4,861 4,901 Total Margin 29,695 32,012 -7% – 3,457 3,424 Total CACs (7,244)
Slide 30: CKHGT - Results by operations
CK Hutchison Holdings Limited CK Hutchison Holdings Limited 2022 Interim Report 2022 Interim Report CKHGT - Results by operations 3 Group Europe Corporate and Others UK Italy (6) (7) Sweden Denmark Austria Ireland before one-off (7) (8) HTHKH and one-off (8) CKHGT CKHGT In million GBP EURO SEK DKK E
Slide 31: CK Hutchison Group Telecom (continued): Key Business Indicators
CK Hutchison Holdings Limited 2022 Interim Report CK Hutchison Group Telecom (continued) Key Business Indicators Registered Customer Base Registered Customers at Registered Customer Growth (%) from Registered Customer Growth (%) 30 June 2022 (’000) 31 December 2021 to 30 June 2022 from 30 June 2021
Slide 32: 12-month Trailing ARPU to 30 June 2022
CK Hutchison Holdings Limited 2022 Interim Report 12-month Trailing Average Revenue per Active User (“ARPU”) (15) to 30 June 2022 % Variance Blended compared to Non-contract Contract Total 30 June 2021 United Kingdom £6.40 £21.34 £18.82 +3% Italy (18) €10.14 €12.45 €11.27 -3% Sweden SEK116.14 SEK284
Slide 33: CK Hutchison Group Telecom (continued)
CK Hutchison Holdings Limited 2022 Interim Report CK Hutchison Group Telecom (continued) United Kingdom 3 UK’s EBITDA increased by 4% in local currency compared to the same period last year, mainly driven by strong growth in net customer service margin from both 5% increase in customer base and 2% h
Slide 34: Hutchison Asia Telecommunications
CK Hutchison Holdings Limited 2022 Interim Report Hutchison Asia Telecommunications 30 June 2022 30 June 2021 Local currencies HK$ million HK$ million Change change Total Revenue 5,839 4,350 +34% +36% EBITDA (19) 7,572 803 +843% +846% EBIT (19) 6,047 (76) +8,057% +8,066% Total active customer base (
Slide 35: Finance & Investments and Others
CK Hutchison Holdings Limited 2022 Interim Report Finance & Investments and Others 30 June 2022 30 June 2021 Local currencies HK$ million HK$ million Change change Total Revenue 46,804 31,858 +47% +49% EBITDA (1) 8,993 653 +1277% +1290% - Underlying 8,993 4,167 +116% +118% - One-off item – (3,514) +
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