Hutchison Telecommunications Hong Kong Holdings Limited · HKEX:215
Hutchison Telecommunications Hong Kong — H1 2012 Earnings Presentation
37 slides from Hutchison Telecommunications Hong Kong's earnings presentation, Aug 1, 2012
Slide 1: 2012 Interim Results Presentation
Hutchison Telecommunications Hong Kong Holdings Limited (Stock Code: 215) 2012 Interim Results Presentation 1 August 2012
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 HoH Growth Consolidated turnover HK$ 6,730m 12% Consolidated EBITDA HK$ 1,446m 16% Consolidated EBIT HK$ 801m 17% Net profit 1 HK$ 568m 15% Interim dividend per share 6.05 HK cents 17% 1 Net profit attributable to shareholders 3
Slide 5: Turnover
Turnover Consolidated turnover 6,000 4,144 4,221 3,973 HK$ m 4,000 2,509 1,874 2,000 Hardware revenue 310 Service revenue 0 FY 2010 FY 2011 FY 2012 FY2010 1H FY2011 1H FY2012 1H 1H 1H 1H Mobile business turnover Fixed-line business turnover 4,000 2,000 2,732 1,725 2,679 1,653 2,521 2,509 1,630 HK$ m
Slide 6: Mobile
Ss Planet 3 sero service station
Slide 7: Quality customer base
Quality customer base >90% postpaid customers under 3G/4G Solid customer profile Total subscribers* Postpaid subscribers* 4,000 3,642 2,400 3,353 1,990 3,052 1,894 1,968 ’000 ’000 2,000 1,777 2,365 2,872 1,200 1,451 1,642 1,795 2,014 1,275 988 770 443 326 0 0 195 FY 20101H FY2010 FY 20111H FY2011 FY
Slide 8: Smart device trendsetter
Smart device trendsetter Smart device penetration ↑ Internal upward migration focus Smart device penetration Smart device ownership 2,400 2,000 58% 60% 1,990 55% 1,967 % to 3G+4G postpaid sub 49% Hong Kong and Macau 1,895 Hong Kong and Macau Smart device Sub 408 47% Postpaid Sub 765 995 995 ’000 30%
Slide 9: ARPU
ARPU Blended postpaid ARPU ↑ 8% Blended Postpaid ARPU* 3G+4G Postpaid ARPU* 300 300 256 HK$ / month 253 HK$ / month 238 245 225 214 222 225 150 150 FY2010 1H FY 2010 FY2011 1H FY 2011 FY2012 FY 20121H FY 20101H FY2010 FY 2011 FY2011 1H FY 2012 FY2012 1H 1H 1H 1H 1H 1H 1H * Include HK and Macau 8
Slide 10: Churn
Churn Low and stable Postpaid Churn* 2.0% 1.8% 1.7% 1.7% Percentage (%) 1.0% 0.0% FY 2010 FY2010 1H FY 20111H FY2011 FY 20121H FY2012 1H 1H 1H * Include HK and Macau 9
Slide 11: Largest amount of available spectrum
Largest amount of available spectrum 2100 1800 3G 2300 34.6MHz 2G LTE TDD-LTE 23.2MHz 30.0MHz Frequency Band Support: 2G + 3G FDD-LTE 900 30.0MHz 2600* Bandwidth: 26.6MHz Total available bandwidth: 144.4MHz * Shared through a JV under Genius Brand Limited 10
Slide 12: Unveil a new 4G era
Unveil a new 4G era • An additional layer on existing 3G network • 4G coverage target to match 3G network by end of 2012 • 1800MHz band re-farm and TDD-LTE 2300MHz band rollout to follow 11
Slide 13: Fixed-line
Fixed-line amsix®* Hong Kong —seweresey BHGC
Slide 14: Reaching out to Asia and beyond
Reaching out to Asia and beyond Global connectivity International platform 13
Slide 15: Well-positioned in local carrier and business markets
Well-positioned in local carrier and business markets Mobile Corporate & Cloud School Backhaul Business computing & • Cloud support • 4G-driven • Finance & Data centre to educational growth government institutions • Collaborate focus with leading ICT specialists • World-class facilities 14
Slide 16: Invest in consumer market
Invest in consumer market • Invest for long term • Competition easing • New broadband offerings 15
Slide 17: Profitability
Profitability
Slide 18: Profitability
Profitability Earnings upsurge by 15% Net profit Earnings per share 800 15 11.79 568 10.25 HK cent 494 10 HK$ m 7.50 400 361 5 0 0 FY 2010 2010 1H FY 2011 2011 1H FY 2012 2012 1H FY 2010 2010 1H FY 2011 2011 1H FY 2012 2012 1H 1H 1H 1H 1H 1H 1H 17
Slide 19: Dividend
Dividend Solid 75% annual payout Dividend per share 10.00 +17% 6.05 HK cents 5.16 5.00 0.00 FY 2011 FY 2012 FY2011 1H FY1H2010 FY2012 FY 1H1H 2011 1 Total dividend per share being sum of interim and final dividend per share 18
Slide 20: Financial Overview
milatzlaters! Overview
Slide 21: Financial Highlights
Financial Highlights FY 2011 FY 2012 1H 1H (HK$m) (HK$m) Turnover 6,018 6,730 Cost of inventories sold (1,792) (2,369) Staff costs (307) (346) Customer acquisition costs (569) (331) Depreciation and amortisation (561) (645) Other operating expenses (2,107) (2,238) Operating profit 682 801 Interest i
Slide 22: Turnover – mobile business
Turnover – mobile business Service revenue sustainable growth Hardware revenue benefited from popularity of smart devices Mobile service revenue Mobile hardware revenue 3,000 3,000 2,732 2,509 2,679 2,521 2,000 1,874 HK$ m HK$ m 2,250 1,000 310 1,500 0 FY 20101H FY2010 FY 2011 FY2011 1H FY 2012 FY20
Slide 23: Quality customer base
Quality customer base HK Total Subscribers HK Postpaid Subscribers 3G+4G: +22% 3G+4G: +9% 4,000 2,400 2,967 3,217 2,707 1,749 1,812 1,831 ’000 ’000 2,000 1,519 2,014 2,449 1,200 1,343 1,500 1,638 1,188 953 768 406 0 312 193 0 FY 2010 FY2010 1H FY 2011 FY2011 1H FY 2012 FY2012 1H FY 20101H FY2010 FY
Slide 24: Turnover – mobile service revenue
Turnover – mobile service revenue 58% data revenue Total service revenue: Total service revenue: HK$2,679m HK$2,732m Local voice Local voice 28% Others1 [6]% 31% Roaming voice Roaming voice 14% 17% Residential Residential Roaming 20% data Carrier [20]% Carrier 48% 9% Local data [48]% Local data Corp
Slide 25: Mobile data revenue
Mobile data revenue Robust roaming data growth Local data Roaming data +21% +32% 1,500 1,342 300 1,202 249 924 189 HK$ m HK$ m 142 750 150 0 0 FY 2010 FY2010 1H FY 2011 FY2011 1H FY 2012 FY2012 1H FY 2010 FY2010 1H FY 2011 FY2011 1H FY 20121H FY2012 1H 1H 1H 1H 1H 1H All percentages represent compou
Slide 26: Turnover - Fixed-line business
Turnover - Fixed-line business Steady growth and cushion against volatility Total revenue: Total revenue: HK$1,653m HK$1,725m Others1 Others1 5% 6% Residential Residential 17% 18% Carrier Carrier 51% 53% Corporate Corporate & & Business Business 25% 25% FY 2011 FY 2012 1H 1H 1 Others include revenue
Slide 27: Key cost items
Key cost items Cost of inventories sold Staff costs 3,000 2,871 60% 500 15% 2,369 % to turnover 346 % to turnover1 339 40% 307 HK$ m 1,792 10% 38.9% HK$ m 1,500 35.2% 250 7.8% 8.2% 29.8% 7.4% 20% 5% 34.8% 0 0% 0 0% FY 20111H FY2011 FY 2011 2H FY2011 FY 2012 1H FY2012 FY 2011 FY2011 1H FY 2011 FY2011
Slide 28: Other operating expenses
Other operating expenses Cautious and well-controlled Other operating expenses 3,000 100.0% 2,224 2,238 2,107 % to turnover1 HK$ m 1,500 65.3% 64.9% 50.0% 50.8% 51.4% 53.0% 65.0% 0 0.0% FY 20111H FY2011 FY 20112H FY2011 FY 20121H FY2012 1H 2H 1H 1 Excluding revenue from sale of telecommunications ha
Slide 29: Capex investment
Capex investment Capex and % of service revenue Selective 800 24% - 2G refarm and TDD-LTE % to service revenue 567 - FTTH homepass 488 464 16% HK$ m 400 13.4% 13.6% 12.3% 11.2% 8% 0 0% FY2010 FY 20101H FY2011 1H FY 2011 FY2012 FY 20121H 1H 1H 1H Capex and % of service revenue (Mobile) Capex and % of
Slide 30: Liquidity
Liquidity Strong FCF before spectrum acquisition Free cashflow (FCF) 1 1,200 1,084 HK$ m 862 803 600 0 FY 2010 FY2010 1H FY 2011 FY2011 1H FY 2012 FY2012 1H 1H 1H 1H 1 Free cashflow being cashflow from operating activities less cashflow used in investing activities before payment of spectrum utilisa
Slide 31: Strong financial position
Strong financial position Net debt Leverage ratio = 1.3 6,000 Gearing ratio = 33% 4,000 3,709 3,671 3,551 HK$ m Refinancing completed 2,000 - HK$5.5b facility matured in 0 FY2011 1H FY 2011 FY2011 2H FY 2011 FY2012 FY 2012 1H June 2015 1H 2H 1H Net debt/ LTM EBITDA 3.0 2.0 1.6x 1.4x 1.3x 1.0 0.0 FY
Slide 32: Outlook
Outlook
Slide 33: Connect to the Future
Connect to the Future
Slide 34: Mobile
Mobile Mobile Market Leadership • Well-positioned in data era • Internal upward migration • Smart device penetration Network Excellence • Selective investment • 4G network expansion • 2G spectrum re-farm Customer Focus • Diversified and exclusive contents and applications • Innovative initiatives -
Slide 35: Fixed-line
Fixed-line Carrier & International Market • Strengthen ties with international carriers • Build international interconnection platforms • 4G stimulates further mobile backhaul demand Corporate & Business Market • Partner with prominent ICT leaders • Data centre and cloud computing focus Residential
Slide 36: Q&A
Q&A
Slide 37: Thank You
Thank You
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