Hutchison Telecommunications (Australia) Ltd
Hutchison Telecommunications (Australia) — H1 2002 Earnings Presentation
23 slides from Hutchison Telecommunications (Australia)'s earnings presentation, Aug 12, 2002
Slide 1: Kevin Russell, Chief Executive Officer, 12 August 2002
Kevin Russell Chief Executive Officer 12 August 2002 1
Slide 2: On target for 2G EBITDA positive in Q4 2002
• On target to be 2G EBITDA positive in Q4 2002 • Results underpinned by marked improvement in key operating measures • On track for 3G launch in Q1 2003 2
Slide 3: Half year financial results summary
Adjusted(*) Half year Half year Half year $Million 30 June 2001 31 Dec 2001 30 Jun 2002 Orange Mobile 41.3 83.0 93.9 Revenue Total Operating 212.5 206.1 112.8 Revenue Operating -275.2 -243.5 -135.0 Expenses EBITDA(**) 2G -77.5 -35.4 -16.2 3G - - -4.9 NPAT -76.3 -60.7 -72.7 (*) Restated to reflect th
Slide 4: On track for EBITDA positive in Q4 2002
1st half 2001 2nd half 2001 1st half 2002 ($16.2m) ($35.4m) ($77.5m) On track for EBITDA positive in Q4 2002 4
Slide 5: Customer numbers rising – 100% post-paid growth
240,110 • 192,526 47,584 • 129,523 63,003 • 1st half 2001 2nd half 2001 1st half 2002 Customer numbers rising – 100% post-paid growth 5
Slide 6: Strong improvement in customer loyalty
4.7% 3.6% 2.3% 1st half 2001 2nd half 2001 1st half 2002 Strong improvement in customer loyalty Churn represents the average monthly churn of the Orange Mobile subscriber base for the period 6
Slide 7: Significant reduction in acquisition costs
$445 $250 $195 1st half 2001 2nd half 2001 1st half 2002 Significant reduction in acquisition costs SAC represents the average direct costs, including commissions and handset subsidies (before capitalisation) associated with acquiring each new subscriber for the period 7
Slide 8: Ongoing improvement in network use margins
Local Zone 250 Mobility 225 166 206 172 99 44 53 67 1st half 2001 2nd half 2001 1st half 2002 Ongoing improvement in network use margins Minutes usage per customer represents the monthly average number of outbound minutes of usage per Orange Mobile post paid subscriber for the period 8
Slide 9: ARPUs remain relatively stable
$65 $61 $62 1st half 2001 2nd half 2001 1st half 2002 ARPUs remain relatively stable ARPU represents the monthly average revenue per Orange Mobile post paid subscriber for the period. Prior period ARPUs restated to include all customer call credits 9
Slide 10: Ongoing improvement in outgoing tariffs
3 % Up 3 24 cents 20 cents 18 cents 1st half 2001 2nd half 2001 1st half 2002 Ongoing improvement in outgoing tariffs 10
Slide 11: Ongoing gains in network profit margin
70% 65.0% 60 55.5% 50 40.2% 40 30 20 10 0 1st half 2001 2nd half 2001 1st half 2002 Ongoing gains in network profit margin 11
Slide 12: Sales channel mix and connects per RPOP
1st half 2001 1st half 2002 Contract 8.9% Dealer Commercial 11.7% 29.6% Contract 45.9% Dealer 25.0% 54.3% 11.0% Direct 13.5% Direct Commercial 48 Monthly average number of connects per RPOP 9.2 Average number of • • • RPOP 400 • 144 1st half 2001 1st half 2002 12
Slide 13: Ongoing reductions to employee numbers
1585 1050 789 30 Jun 2001 31 Dec 2001 30 Jun 2002 Ongoing reductions to employee numbers 13
Slide 14: Strong improvement in key operating areas
• EBITDA loss halved – second consecutive half • Churn rate halved • Subscriber acquisition costs halved • Employee numbers halved • Dramatic improvement in network usage profile Strong improvement in key operating areas 14
Slide 15: Progressing towards 3G launch Q1 2003
• Progressing towards launch Q1 2003 • Australian launch to follow UK, Italy, Hong Kong • Technical implementation on track • Phased rollout – Sydney, Melbourne and Brisbane phase one 15
Slide 16: Sydney Launch Coverage
Sydney Launch Coverage
Slide 17: Melbourne Launch Coverage
Melbourne Launch Coverage a NY) Melbourne H3GA Coverage ME 3G coverage Vodafone Roaming BB Hutchison BB Telecoms 17
Slide 18: Brisbane Launch Coverage
Brisbane Launch Coverage \ Brisbane H3GA Coverage BR 36 Coverage Vodafone Roaming BB Hutchison BB Telecoms 18
Slide 19: Network site acquisition and construction progress
• 90% of sites acquired • 75% of sites under construction • Construction scheduled to conclude Q4 2002 • 2G and 2.5G roaming agreement in place • GSM international roaming services Approximately 70% population with 3G coverage in our launch licence areas 19
Slide 20: Technical build continuing to track
• Ericsson and Motorola deliveries tracking to launch • Installation of 3G trial network • Testing prototype 3G devices • Global co-operation to fast track testing • Implementation of 45 discreet platforms • Handsets – dual mode, still and video camera, GPS, PDA, video streaming and MPEG3 functional
Slide 21: Peak funding requirement of up to $3 billion
Peak funding requirement of up to $3 billion • $600 million raised via rights issue • $400 million equity committed by TCNZ • Up to $2 billion of peak funding required 21
Slide 22: Summary of key operating improvements and targets
• Significant continued improvement in key operating areas • On target to be 2G EBITDA positive in Q4 2002 • On track for 3G launch in Q1 2003 22
Slide 23: Hutchison Telecoms
MM Hutchison BH Telecoms Telecommunications operations of Hutchison Whampoa Limited 23
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