Hutchison Telecommunications Hong Kong Holdings Limited · HKEX:215

Hutchison Telecommunications Hong Kong — H1 2016 Earnings Presentation

28 slides from Hutchison Telecommunications Hong Kong's earnings presentation, Aug 2, 2016

  1. Slide 1: Hutchison Telecommunications Hong Kong Holdings 2016 Interim Results Presentation

    Hutchison Telecommunications Hong Kong Holdings Limited (Stock code: 215) 2016 Interim Results Presentation 2 August 2016

  2. Slide 2: Disclaimer

    Disclaimer Potential investors and shareholders (the “Potential Investors and Shareholders”) of Hutchison Telecommunications Hong Kong Holdings Limited (“the Company”) are reminded that information contained in this Presentation comprises extracts of operational data and financial information of the

  3. Slide 3: Business Performance

    Business Performance

  4. Slide 4: Highlights

    Highlights For the For the For the 1H 2016 1H 2016 six months ended six months ended six months ended vs vs 30 June 2016 31 December 2015 30 June 2015 2H 2015 1H 2015 HK$ million HK$ million HK$ million change change Consolidated revenue 5,324 11,022 11,020 -52% -52% Consolidated service revenue 3,8

  5. Slide 5: Outlook

    Outlook Customer value  Enhanced caring customer services Data usage  Bundled telecommunications services  Expand OTT and IoT offerings  Meet increasing data demand Travellers  Expand variety of roaming packages Commercial and carrier  Package with advanced technology market  One-stop solutio

  6. Slide 6: Customer service focus

    Customer service focus 2015 36 International 20 Customer Relationship Excellence 2016 1H Award Company of the year for Contact Center + People Development Innovation & Program of the Year Over-the-Top Leadership- Asia Smiling Enterprise Smiling Staff Innovation in B2B Outstanding Award Innovation in

  7. Slide 7: Extensive Wi-Fi network

    Extensive Wi-Fi network • 20,000 + hotspots • 1Gbps optical fibre backhaul facility • Customer oriented, facilitate infotainment access • Further B2B and B2C opportunities 6

  8. Slide 8: Multi-play operator with self-owned infrastructure

    Multi-play operator with self-owned infrastructure 7

  9. Slide 9: Extensive roaming packages

    Extensive roaming packages • Extensive roaming packages in Europe and Asia • 3LikeHome package offers data sharing within 3 Group European countries • Hassel free arrangement and avoid bill shock • Expand customer reach to different segments United Kingdom Austria Ireland Denmark Hong Kong Italy Swe

  10. Slide 10: Mobile

    GS | Mobile © @ @®

  11. Slide 11: Mobile Business

    Mobile Business Mobile local service revenue(1) Mobile hardware revenue 10,000 2,000 1,644 1,631 HK$ millions 1,612 7,150 7,221 HK$ millions 5,000 1,000 6,734 6,822 1,499 294 416 399 1,205 0 0 1H 2015 2H 2015 1H 2016 1H 2015 2H 2015 1H 2016 Standalone hardware revenue Bundled hardware revenue Mobile

  12. Slide 12: Mobile KPIs

    Mobile KPIs Total customers in Hong Kong and Macau Postpaid Churn 4,000 1H 2015 2H 2015 1H 2016 +2% 0.0% 2,869 +6% 3,031 3,078 Percentage (%) 1,481 1,484 2,000 1,542 1.1% 1.3% 1,327 1,547 1,597 1.6% 0 1.9% 1H 2015 2H 2015 1H 2016 2.2% Prepaid Postpaid Blended Data usage(1) Blended local postpaid ARP

  13. Slide 13: Fixed-line

    Fixed-line

  14. Slide 14: Fixed-line business

    Fixed-line business 1H 2015 2H 2015 1H 2016 Total revenue: Total revenue: Total revenue: HK1,984 million HK1,989 million HK2,067 million Others(1) Others(1) Others(1) 3% 3% 3% Residential Residential Residential 14% 15% 12% International International and International and Corporate Local and Corpor

  15. Slide 15: Corporate and Business Market

    31%(1) Corporate and Business Market • 10% yoy growth Corporate and Business revenue 800 • Penetrations to new 581 +3% 599 +6% 637 HK$ millions market segments 126 129 121 400 • Value-added business 470 516 solution provider 455 0 1H 2015 2H 2015 1H 2016 Voice and IDD revenue Data revenue Note 1: Co

  16. Slide 16: International and Local Carrier Market

    54%(1) International and Local Carrier Market • Growing data demand International and local carrier revenue 800 • Benefits from OTT and 632 601 591 IoT HK$ millions 451 463 479 400 0 1H 2015 2H 2015 1H 2016 International and local data revenue IDD revenue Note 1: Contribution to fixed-line revenue 1

  17. Slide 17: Residential Market

    12%(1) Residential Market • 4% HoH decrease in revenue due to keen competition • Multi-play infotainment player • 1GB FTTH in offer • Over 20,000 Wi-Fi hotspots Note 1: Contribution to fixed-line revenue 16

  18. Slide 18: Financial Overview

    Financial Overview

  19. Slide 19: Financial Highlights - Consolidated

    Financial Highlights - Consolidated For the For the For the 1H 2016 1H 2016 six months ended six months ended six months ended vs vs 30 June 2016 31 December 2015 30 June 2015 2H 2015 1H 2015 HK$ million HK$ million HK$ million change change Consolidated revenue 5,324 11,022 11,020 -52% -52% Consoli

  20. Slide 20: Mobile business

    Mobile business For the For the For the 1H 2016 1H 2016 six months ended six months ended six months ended vs vs 30 June 2016 31 December 2015 30 June 2015 2H 2015 1H 2015 HK$ million HK$ million HK$ million change change Total revenue 3,472 9,235 9,242 -62% -62% -- Net customer Hardware service rev

  21. Slide 21: Fixed-line business

    Fixed-line business For the For the For the 1H 2016 1H 2016 six months ended six months ended six months ended vs vs 30 June 2016 31 December 2015 30 June 2015 2H 2015 1H 2015 HK$ million HK$ million HK$ million change change Revenue 2,067 1,989 1,984 +4% +4% Total CACs and Operating expenses (1,420

  22. Slide 22: Key cost items

    Key cost items Cost of inventories sold Key cost items 10,000 4,000 +1% - 3,256 3,293 3,290 6,975 +2% 7,088 HK$ millions HK$ millions -79% 20% 667 21% 691 21% 697 6% 187 6% 197 6% 201 12% 386 13% 444 14% 446 5,000 2,000 1,478 62% 2,016 60% 1,961 59% 1,946 0 65.0% 0 1H 2015 2H 2015 1H 2016 1H 2015 2H

  23. Slide 23: EBITDA/EBIT Margin

    EBITDA/EBIT Margin Consolidated EBITDA Consolidated EBIT 2,200 40% 2,200 30% 38% 35% 33% 33% 32% 32% 20% 1,456 HK$ millions 1,332 HK$ millions 175 1,253 20 130 16% 15% 17% 1,100 20% 1,100 15% 13% 14% 789 1,281 641 1,202 1,233 175 556 130 20 614 511 536 0 0% 0 0% 1H 2015 2H 2015 1H 2016 1H 2015 2H 20

  24. Slide 24: Capex investment

    Capex investment Consolidated Capex 1,000 30% % to service 706 revenue HK$ millions 500 19% 429 15% 353 11% 9% 0 0% 1H 2015 2H 2015 1H 2016 Mobile Capex Fixed-line Capex 500 26% 320 292 20% 414 % to service % to service 231 revenue revenue HK$ millions 193 HK$ millions 21% 15% 250 198 13% 160 10% 16

  25. Slide 25: Financial position

    Financial position Net debt Net debt/ LTM EBITDA 5,000 40% 2.0 Net debt to net total capital % HK$ millions 2,810 2,941 2,605 1.0 1.1 1.0 2,500 20% 1.0 19% 20% 18% 0 0% 0.0 As at As at As at As at As at As at 30 Jun 2015 31 Dec 2015 30 Jun 2016 30 Jun 2015 31 Dec 2015 30 Jun 2016 Net debt to net tot

  26. Slide 26: Liquidity and Dividend

    Liquidity and Dividend EBITDA less CAPEX Interim dividend per share 1,500 8.00 1,103 -43% 5.20 -23% HK$ millions +32% 824 HK cents 4.00 750 4.00 626 0 0.00 1H 2015 2H 2015 1H 2016 1H 2015 1H 2016 25

  27. Slide 27: Q&A

    Q&A

  28. Slide 28: Thank You

    Thank You

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