Hutchison Telecommunications Hong Kong Holdings Limited · HKEX:215

Hutchison Telecommunications Hong Kong — FY2014 Earnings Presentation

28 slides from Hutchison Telecommunications Hong Kong's earnings presentation, Feb 16, 2015

  1. Slide 1: 2014 Annual Results Presentation

    Hutchison Telecommunications Hong Kong Holdings Limited (Stock Code: 215) 2014 Annual Results Presentation 16 February 2015

  2. 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

  3. Slide 3: Business Performance

    Business Performance

  4. Slide 4: Highlights

    Highlights FY2014 FY2013 FY2014 2014 2H 2014 1H 2014 2H HK$ HK$ vs HK$ HK$ vs millions millions FY2013 millions millions 2014 1H Consolidated Turnover 16,296 12,777 +28% 10,069 6,227 +62% Consolidated EBITDA 2,679 2,674 - 1,498 1,181 +27% Consolidated EBIT 1,358 1,339 +1% 831 527 +58% Profit before

  5. Slide 5: Outlook

    Outlook  Balanced integrated telecom operator benefited from mobile and fixed-line contributions  Mobile business  Data centric focus leveraging 4G LTE infrastructure and Wi-Fi hotspot coverage  Gradual improvement in ARPU with growth in 4G LTE customers  Fixed-line business  Increasing demand

  6. Slide 6: Mobile

    SOW es GV RS 1 en Q& Sev

  7. Slide 7: Mobile customers

    2,500 % to 3G+4G LTE postpaid customers ‘000 1,250 1,618 1,888 1,365 1,631 45 29 220 172 0

  8. Slide 8: Mobile KPIs

    Mobile KPIs Blended postpaid ARPU and net AMPU Postpaid Churn 300 250 247 254 3.0% HK$ / month 201 197 205 Percentage (%) 200 182 2.0% 172 173 1.9% 2.0% 100 1.0% 0 0.0% 2013 2014 2014 2013 2014 2014 2013 2014 2014 FY2013 FY 2013 FYFY2014 2014 2013 1H 2013 2H 2014 1H 2H 1H 2H 2H 1H 2H 2H 1H 2H Net AM

  9. Slide 9: Fixed-line

    WiseNE T uct Cloud uct Cloud ute Cloud mciclemPX Surveillance Audience Analytics Signage Fixed-line Cuee Cloud Cutt superhub Cutt cloud Video Conferencing Hosted Exchange Email Service Document Management Service

  10. Slide 10: Fixed-Line Business

    Fixed-Line Business Corporate & Business Market International & Local Carrier Market Residential Market Data Centre Business & Others 9

  11. Slide 11: International & Local Carrier Market

    International & Local Carrier Market 54% contribution to fixed-line revenue  International service Corporate  Local backhaul service & Business Market International & Local Carrier Market Data Centre Business & Residential Market Others 10

  12. Slide 12: Corporate & Business Market

    Corporate & Business Market 28% contribution to fixed-line revenue Corporate  Solution based offerings & Business Market  Serving mainly government International authorities, corporate, retail, & Local Carrier Market SME & education sectors Data Centre Business & Residential Market Others 11

  13. Slide 13: Residential Market

    Residential Market Corporate & Business Market International & Local Carrier Market 15% contribution to fixed-line revenue Residential Market Data Centre Business &  Full array of multimedia services Others  1GB FTTH in offer plus cloud based VAS 12

  14. Slide 14: Data Centre Business & Others

    Data Centre Business & Others Corporate 3% contribution to & Business Market fixed-line revenue International & Local Carrier Market  Geographically dispersed data centres  Graded tier-3 or higher with ISO27001 security Residential Market Data Centre Business & and ISO50001 energy Others managemen

  15. Slide 15: Making Better

    Making Better aw HGC Three.com.hk LU] Hutchison Telecom HEM ong Kong Holdings 14

  16. Slide 16: Better Offer: 4G + Wi-Fi + Broadband

    Better Offer: 4G + Wi-Fi + Broadband Special handsets offers to Home Broadband customers (up to $300 discount or rebate) Mobile Free Wi-Fi Home Broadband Customers Customers Free 1GB Mobile Data upon 1G Home Broadband subscription 15

  17. Slide 17: Financial Overview

    Financial Overview

  18. Slide 18: Financial Highlights - Consolidated

    Financial Highlights - Consolidated FY2014 2014 2H 2014 2013 vs 2014 2H 2014 1H vs HK$m HK$m FY2013 HK$m HK$m 2014 1H Turnover 16,296 12,777 +28% 10,069 6,227 +62% EBITDA 2,679 2,674 - 1,498 1,181 +27% Consolidated EBITDA margin (%) (EBITDA / service revenue) 32% 31% +1% point 36% 29% +7% points Dep

  19. Slide 19: Turnover

    Turnover Consolidated turnover FY2014 vs FY2013: +28% 20,000 31% 32% 33% 16,296 service revenue(%) EBITDA margin on 15,000 12,777 HK$ millions 7,986 22% Hardware revenue 10,000 4,221 Service revenue 11% Service revenue (before elimination) 5,000 8,556 8,310 EBITDA margin on service revenue 0 FY2013

  20. Slide 20: Turnover – mobile service revenue

    Turnover – mobile service revenue FY 2013 FY 2014 Service revenue: Service revenue: HK$5,138 million HK$4,646 million Roaming Roaming data data 9% 9% Roaming Roaming Roaming non-data non-data Data(1) Local 16% Local 17% 10% data data 43% 48% Local Local non-data non-data Residential 27% 31% 20% Tota

  21. Slide 21: Turnover - Fixed-line business

    Turnover - Fixed-line business FY 2013 FY 2014 Total revenue: Total revenue: HK3,880 million HK4,102 million Others1 Others1 3% 4% Residential ResidentialOthers 1 4% 15% 15% International International Internation and and al and Local Carrier Corporate Local Carrier Corporate Local 54% & Business 54

  22. Slide 22: Key cost items

    Key cost items Cost of inventories sold Key cost items 7,713 -4% 8,000 8,000 7,495 7,225 1,335 18% 1,321 18% HK$ millions HK$ millions 800 11% 678 10% +96% 783 10% 734 10% 3,943 4,000 4,000 61% 62% 4,577 4,492 65.3% 0 65.0% FY2013 FY2014 0 FY 2013 FY 2014 FY2013 FY 2013 FY2014 FY 2014 Depreciation a

  23. Slide 23: Profitability

    Profitability Profit before taxation 2,000 1,167 1,168 HK$ millions 1,000 0 FY 2013 FY 2014 Net profit* Earnings per share 1,500 30.00 -9% 19.01 -9% 916 20.00 17.29 1,000 HK cents HK$ millions 833 500 10.00 0 0.00 FY2013 FY 2013 FY2014 FY 2014 FYFY2013 2013 FY2014 FY 2014 * Net profit after tax and

  24. Slide 24: Capex investment

    Capex investment Consolidated Capex 2,000 30% HK$ millions 1,280 % to service 1,198 revenue 1,000 15% 15% 14% 0 0% FY2013 FY 2013 FY2014 FY 2014 Mobile Capex Fixed-line Capex 1,000 30% 800 30% 623 % to service % to service 657 664 534 revenue HK$ millions revenue HK$ millions 500 15% 400 15% 16% 13%

  25. Slide 25: Financial position

    Financial position Net debt Net debt/ LTM EBITDA 5,000 40% 2.0 4,362 Net debt to net total 3,794 1.6x 1.6x 3,593 1.3x HK$ millions capital % 28% 2,500 25% 20% 1.0 23% 0 0% 0.0 As at 2H FY 2013 As at 1H FY 2014 As at 2H FY 2014 As at As at As at 31 Dec 2013 30 June 2014 31 Dec 2014 FY 2013 2H FY 2014

  26. Slide 26: Dividend and Liquidity

    Dividend and Liquidity EBITDA less CAPEX Dividend per share 1,500 20.00 15.00 HK$ millions 1,000 HK cents 761 720 10.00 8.00 8.70 485 500 4.25 5.00 0 0.00 FY 2013 2013 2H FY 2014 2014 1H FY 2014 2014 2H FY 2013 2013 2H FY 2014 2014 1H FY 2014 2014 2H 2H 1H 2H 2H 1H 2H 25

  27. Slide 27: Q&A

    Q&A

  28. Slide 28: Thank You

    Thank You

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