Hutchison Telecommunications Hong Kong Holdings Limited · HKEX:215
Hutchison Telecommunications Hong Kong — FY2022 Earnings Presentation
28 slides from Hutchison Telecommunications Hong Kong's earnings presentation, February 2023
Slide 1: 2022 Annual Results Presentation
2022 Annual Results Presentation
Slide 2: Disclaimer
Disclaimer 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 such s
Slide 3: Agenda
Agenda Result Highlights QR Code for the Group’s Financial Results Business Review & Development Financial Review Sustainability Outlook
Slide 4: Result Highlights
Result Highlights
Slide 5: Highlights
Highlights Resilient local service revenue and rebound in roaming service revenue Service Revenue $3,278m Local $2,981m Roaming $297m +1% YoY Service Revenue Flat YoY Service Revenue +14% YoY Encouraging 5G uptake Effective customer retention strategies 5G Penetration 30% Customer Base 3.3m Churn(1)
Slide 6: Business Review & Development
Business Review & Development
Slide 7: Building the Best 5G Network in Hong Kong
Building the Best 5G Network in Hong Kong 2020/21 2022 2023 Build Optimise Operate • Number of 5G base stations increased more than 50% (1) • 5G coverage extended to East Rail Line Cross-Harbour Extension of MTR & Tseung Kwan O-Lam Tin Tunnel and Cross Bay Link • Activated 700 MHz band on 5G • "Net
Slide 8: Building the Best 5G Network in Hong Kong
Building the Best 5G Network in Hong Kong Significantly expanded network capacity and coverage with additional spectrum. Leveraged the 700 MHz band spectrum to enhance deeper network coverage including low-density rural residential areas. Traffic Hotspots Urban Rural Ultra 3500 MHz 5G Capacity Layer
Slide 9: Core Revenue Drivers
Core Revenue Drivers HK Postpaid 5G 5G Broadband Corporate Solutions Outbound Roaming HK Postpaid Revenue Revenue Revenue Penetration +1264% +29% +8% +9%-pt 30% 21% 2021 2022 2021 2022 2021 2022 2021 2022 • Successful 5G upgrade • High potential market • Head start on roaming • Leveraging CKHH Group
Slide 10: 5G Penetration Growth
5G Penetration Growth Strong Growth by outstanding network performance & successful initiatives. In-base 5G Upgrade 5G New Sales +200% >140% 2021 2022 2021 2022 Competitive offers with Various offers with Tactical Showcase of Flagship Handsets HOT products limited offers Strongest (1) 5G network Not
Slide 11: 5G Broadband Uptake
5G Broadband Uptake Strong Growth by outstanding network performance & competitive packages. Active Base Propositions >470% ✓ No Speed Limit ✓ No Landlines ✓ No Installations ✓ All-in-One Package Mass (targets rural area & villages) : ▪ Deep 5G coverage by the 700 MHz ▪ Tactical offers for selected
Slide 12: Roaming Recovery
Roaming Recovery Accelerate roaming business rebound via comprehensive products. Roaming recovery (1) 100% • Travel sharing sessions 50% • Thailand theme event at Retail 2019 2021 2022 Jan-2023 Pre-COVID • All-round offerings for frequent & non-frequent roamers Good Recovery Rate(2) in major destina
Slide 13: Corporate Solutions
Corporate Solutions Exhibits state-of-the-art 5G solutions, creating unprecedented and future-shaping opportunities for enterprises. Synergy with CKHH Group Companies Smart Smart Smart Smart Smart Robotics Office Construction Parking Properties Education Properties Retails Utilities Hospitality Educ
Slide 14: Corporate Solutions – 5G Subsidy Scheme
Corporate Solutions – 5G Subsidy Scheme Deployed 5G solutions to various industries to improve efficiency of operations and quality of service. VR / AR Learning ▪ Content management system ▪ Moveable 5G network Empower Enterprises & Transform Digitally Education Patrol Robot 5G Operation & in risk l
Slide 15: Most Customer Touchpoints
Most Customer Touchpoints Strong Channels to serve well-defined segments 3 Shop All-round services with Mobile experts and 3 DigiLive full range of Device & Accessories Supreme Leverage electronics & gadgets Premium Customer for wide audience by starting Journey & Privileges from 5G Broadband 3HK@Fo
Slide 16: Gear up Retention by Unique Loyalty Programme
Gear up Retention by Unique Loyalty Programme Collaboration with MoneyBack to extend our offerings to include a vast array Postpaid Churn % of awards and benefits redeemable at PARKnSHOP, Watsons, FORTRESS Continuous and 3 Hong Kong stores. 0.4%-pt improvement “Happy Share of 20 Million churn improv
Slide 17: Financial Review
Financial Review
Slide 18: Revenue: Building Growth Momentum
Revenue : Building Growth Momentum Service Revenue ($m) +1% Local Service Flat YoY due to rebound in roaming service revenue Revenue ($m) YoY 61% driven by stabilising market conditions 3,241 3,278 2H2022 67% +10% vs 1H Represents 91% of service revenue 2H 2H Revenue 2,980 2,981 2H2022 +10% vs 1H 1H
Slide 19: Customers: Solid Customer Base
Customers : Solid Customer Base Prepaid Postpaid 55% 45% of total customer base (2021: 55%) of total customer base (2021: 45%) Flat YoY 3,278k Flat YoY 1,760k +2% YoY Dec-21 Dec-21 1,442k Dec-21 3,202k Jun-22 1,538k Jun-22 1,476k Jun-22 3,014k Dec-22 1,808k Dec-22 1,470k Dec-22 3,278k Increased by 3
Slide 20: Customers: Promising Outlook
Customers: Promising Outlook ARPU Postpaid Churn • Pressure from competition and unfavourable economic conditions • Improvement in network and effective customer retention strategies, in 1H 2022 boosting customer engagement and loyalty $171 $168 -2% YoY 1.2% Improved by 2H 2022 0.8% improved by 0.4%
Slide 21: Vigilant Opex Spending and Healthy Cash Position
Vigilant Opex Spending and Healthy Cash Position Operating Expenses -2% YoY Capital Expenditure (excl. telecommunications licences) -43% YoY Healthy Cash(2) Position • Higher network operating costs for 5G • Lower capex as capex on 5G network network expansion and enhancement • Decreased following t
Slide 22: Sustainability
Sustainability
Slide 23: Sustainability: Focusing on what Matters to Stakeholders
Sustainability: Focusing on what Matters to Stakeholders Action on Climate Change Rigorous Governance ↓ >70% 93% Carbon Emission (1) 0 Legal cases regarding corrupt practices Employees received training on Intensity vs 2018 anti-corruption/ethics and integrity Creating Great Places to Work Supportin
Slide 24: Outlook
Outlook
Slide 25: Outlook
Outlook • Providing IoT capability in the era of 5G with enhanced network and additional spectrum • Leveraging customer insight platform to build full understanding of consumer needs to digitally- connect customer experience • Capturing new opportunities with IoT, 5G and AI in data monetisation • Ac
Slide 26: Thank You
Thank You
Slide 27: Appendix
Appendix
Slide 28: Financial Information
Financial Information Appendix HK$ million 2022 2021 Change HK$ million 2022 2021 Change Revenue 4,882 5,385 -9% EBITDA 1,420 1,477 -4% Net customer service revenue 3,278 3,241 +1% Depreciation and amortisation (1,501) (1,345) -12% Hardware and other product revenue 1,604 2,144 -25% (LBIT)/EBIT (8
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