Hkbn Ltd. · HKEX:1310

Hkbn — H1 FY2024 Earnings Presentation

32 slides from Hkbn's earnings presentation, Apr 26, 2024

Slide 1: Accelerating ICT Leadership
FY24 Interim Results Announcement Accelerating ICT Leadership William Yeung Co-Owner, Executive Vice-chairman & Group CEO Derek Yue Co-Owner & CFO 26 April 2024 *ICT = Information and Communications Technology © HKBN Ltd. 2024. All Rights Reserved.
Slide 2: Disclaimer
Disclaimer These materials have been prepared by HKBN Ltd. (the “Company”) 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, the fairness, accuracy, completeness or
Slide 4: Resilient Performance
Resilient Performance Revenue EBITDA AFF $5,809m $1,151m $124m HoH +17% HoH +5% HoH -69% YoY -13% YoY -4% YoY -66% YoY +9% (if excluding product gross profit) DPS: 15 HK Cents Financials in HK$mn, unless otherwise stated © HKBN Ltd. 2024. All Rights Reserved. 4
Slide 6: Core Business Strengthened
Core Business Strengthened Enterprise Solutions Order Booking Revenue Enterprise Customers Revenue* Backlog $1,883m YoY +20% $4.7b 97k YoY +3% * Excluding international telecommunications services revenue Financials in HK$mn, unless otherwise stated © HKBN Ltd. 2024. All Rights Reserved. 6
Slide 7: Revenue-generating ICT Solutions for Each Market Segment
Revenue-generating ICT Solutions for Each Market Segment Tailored Solutions • Cyber Security • Cloud Large Enterprise • Next Gen Infrastructure • AI Mid-Market SMEs © HKBN Ltd. 2024. All Rights Reserved. 7
Slide 8: Excellent Momentum in the First Months of Operations
Excellent Momentum in the First 7 Months of Operations Industry Bundle Solution 45% 2x ARPU Uptake amongst acquisition & retention of a Single Play Broadband >20,000 Customers © HKBN Ltd. 2024. All Rights Reserved. 8
Slide 9: Revenue-generating Innovative Solutions
Revenue-generating Innovative Solutions FY24 1H FY24 2H Ongoing Development • Cloud Native and Marketplace solutions • Hybrid and Multi-Cloud implementation Multi-Cloud Multi-Cloud & management Solutions Connect Service • Energy-Saving appliances from top vendors, such as CISCO and NetApp • Trade-In
Slide 13: Continuous Upgrade to Higher Bandwidth
Continuous Upgrade to Higher Bandwidth Customer Penetration 585K 594K More to come! 548K 501K 461K 1000M or above FY22 1H FY22 2H FY23 1H FY23 2H FY24 1H 428K 394K 364K ARPU upgrade 332K 305K Below 1000M FY22 1H FY22 2H FY23 1H FY23 2H FY24 1H © HKBN Ltd. 2024. All Rights Reserved. 13
Slide 14: Best Value for Money Local & Travel Mobile Plans
Best Value for Money Local & Travel Mobile Plans 1x1x cxl Chinx Unixom Local 5G Data 20GB 30GB 30GB 10GB APAC 10GB 10GB 10GB 10GB Travel Data (Including 10+ APAC countries & China data) Monthly fee $499 $438 $238 $138 © HKBN Ltd. 2024. All Rights Reserved. 14
Slide 16: Market Leading Innovation
Market Leading Innovation HK’s first fibre-to-the-home 25G 1000Mbps Broadband Service in HK^ broadband Since 2004 June 2024 HK's first 100Mbps Integrated network residential broadband of HKBN, NWT and WTT as low as $298/month *HKBN is the first telecommunications provider in the world to offer compe
Slide 17: Significant Market Potential in Broadband Speed Upgrade
Significant Market Potential in Broadband Speed Upgrade Statistics on Access Lines of Internet Service Subscriptions in Hong Kong Residential - downstream speed Business - downstream speed >1G penetration >1G penetration 67.4% 13.1% * Source: Table 1: Statistics on Access Lines of Internet Service S
Slide 18: High-speed Offerings Market Landscape
High-speed Offerings Market Landscape HXT HXC iCxble CXHK 1000M & below 2000M 2500M 10G 25G *Including 2x1000M multi-use broadband service © HKBN Ltd. 2024. All Rights Reserved. 18
Slide 21: Focus Core Business Revenue Growth
Focus Core Business Revenue Growth Enterprise Solutions* HoH YoY • Core business strengthened. Maintained Total +17% -13% strong growth in ICT Services & SI services 6,707 Residential Solutions 5,809 • Residential service revenue slightly 4,985 decreased and price increase on track 3,162 1,312 2,317
Slide 22: Executed Cost Efficiency Enhancing EBITDA
Executed Cost Efficiency Enhancing EBITDA EBITDA HoH YoY 1,200 1,000 800 EBITDA 600 1,196 1,094 1,151 +5% -4% • Stable performance, YoY decreases mainly 400 impacted by the softer performance of +9% +9% 200 - (if excluding product gross profit) handset and other products. Enhanced FY23 1H FY23 2H FY
Slide 23: Fitter, Leaner, Generating Cash for Growth
Fitter, Leaner, Generating Cash for Growth Financials in HK$mn, unless otherwise stated Operating Expenses* Capital Expenditure Cash From Operation HoH -6% HoH -2% HoH -6% 1,200 YoY -7% 350 YoY -33% 1,200 YoY -13% 300 1,000 1,000 250 800 800 200 600 600 1,151 1,070 946 150 304 1,007 400 940 883 400
Slide 25: Focus Going Forward
Focus Going Forward Leading the Emerging tech trends MVNO & evolution of speed & industry solutions value-added services Ultra-competitive local x roaming mobile offer Cybersecurity Cloud Next gen Online AI medical service Insurance infrastructure © HKBN Ltd. 2024. All Rights Reserved. 25
Slide 27: Accelerating ICT Leadership
FY24 Interim Results Announcement Accelerating ICT Leadership William Yeung Co-Owner, Executive Vice-chairman & Group CEO Derek Yue Co-Owner & CFO 26 April 2024 *ICT = Information and Communications Technology © HKBN Ltd. 2024. All Rights Reserved.
Slide 29: Operational Highlights
Operational Highlights Enterprise Solutions 1H2023 2H2023 1H2024 YoY Changes HoH Changes Commercial building coverage 8,033 8,090 8,120 1% 0% Subscriptions ('000) - Broadband 119 117 110 -8% -6% - Voice 401 388 373 -7% -4% Enterprise customers ('000) 103 101 97 -6% -4% Residential Solutions 1
Slide 30: Consolidated Income Statement
Consolidated Income Statement "YoY "HoH (HK$ million, unless otherwise stated) 1H2023 2H2023 1H2024 Changes" Changes" Enterprise Solutions 2,348 2,477 2,310 -2% -7% Enterprise Solutions related product 1,040 894 952 -8% 6% Residential Solutions 1,197 1,196 1,182 -1% -1% Handset and other product
Slide 31: Consolidated Balance Sheet (Summary)
Consolidated Balance Sheet (Summary) (HK$ million, unless otherwise stated) At 28 February 2023 At 31 August 2023 At 29 February 2024 Non-current assets 16,987 15,315 14,908 Current assets 2,950 2,832 2,595 Current liabilities 3,236 3,112 2,868 Total assets less current liabilities 16,701 15,03
Slide 32: Reconciliation of EBITDA and Adjusted Free Cash Flow
Reconciliation of EBITDA and Adjusted Free Cash Flow (HK$ million, unless otherwise stated) 1H2023 2H2023 1H2024 YoY Changes HoH Changes Profit/(loss)for the period 23 (1,290) 2 -91% -100% Amortisation of customer acquisition and retention costs 139 136 135 -3% -1% Amortisation of intangible asset

HKBN — H1 FY2024 Earnings Presentation on 6ix

Hkbn — H1 FY2024 Earnings Presentation

Slide 1: Accelerating ICT Leadership

Slide 2: Disclaimer

Slide 3: Overview

Slide 4: Resilient Performance

Slide 5: Enterprise Solutions

Slide 6: Core Business Strengthened

Slide 7: Revenue-generating ICT Solutions for Each Market Segment

Slide 8: Excellent Momentum in the First Months of Operations

Slide 9: Revenue-generating Innovative Solutions

Slide 10: Residential Solutions

Slide 11: Solid Performance

Slide 12: Increasing ARPU to Drive EBITDA Growth

Slide 13: Continuous Upgrade to Higher Bandwidth

Slide 14: Best Value for Money Local & Travel Mobile Plans

Slide 15: Network Enhancement

Slide 16: Market Leading Innovation

Slide 17: Significant Market Potential in Broadband Speed Upgrade

Slide 18: High-speed Offerings Market Landscape

Slide 19: Strategic Alliance with Nokia

Slide 20: Financials

Slide 21: Focus Core Business Revenue Growth

Slide 22: Executed Cost Efficiency Enhancing EBITDA

Slide 23: Fitter, Leaner, Generating Cash for Growth

Slide 24: Outlook

Slide 25: Focus Going Forward

Slide 26: Q&A

Slide 27: Accelerating ICT Leadership

Slide 28: Appendix

Slide 29: Operational Highlights

Slide 30: Consolidated Income Statement

Slide 31: Consolidated Balance Sheet (Summary)

Slide 32: Reconciliation of EBITDA and Adjusted Free Cash Flow