Ck Hutchison Holdings Ltd · HKEX:1

Ck Hutchison — H1 2019 Earnings Presentation

49 slides from Ck Hutchison's earnings presentation, Aug 1, 2019

  1. Slide 1: 2019 Interim Results Operations Analysis

    Alla = Ho BHAT AS Ss DINGS LIMITED 2 f) 1 Interim Results Operations Analysis

  2. Slide 2: 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 securities o

  3. Slide 3: Agenda

    CKHH 1H 2019 CK Hutchison Group Telecom Holdings Results

  4. Slide 4: 1H 2019 Results Highlights

  5. Slide 5: 1H Results Highlights

    Revenue # EBITDA # EBIT # $217.1bn $54.0bn $34.2bn - 3% - 2% - 3% (+2% in local currencies) (+3% in local currencies) (+2% in local currencies) 1H Results Highlights Net Earnings # * EPS * DPS (Post-IFRS 16) $18.2bn $0.87 $4.75 + 1% flat + 2% 2019 (+6% in local currencies) * Net earnings represent p

  6. Slide 6: EBITDA

    EBITDA EBITDA Change by Division $54.0bn HK$ m -2% 1,047 4,341 409 ( 27 ) ( 215 ) 56,866 490 (+3% in local currencies) 55,350 ( 2,878 ) 53,988 ( 3,554 ) ( 975 ) 1H 2018 Ports & Retail Infrastructure Husky 3 Group HTHKH HAT F&I 1H 2019 Foreign 1H 2019 Related Energy Europe and Underlying currency EBI

  7. Slide 7: Operating FCF

    Operating FCF Operating FCF by Core Business $27.9bn + 6% HK$ m Port & Related Services Retail 26,775 33,203 Operating FCF Infrastructure Energy Telecommunications Finance and Investments & Others 9,836 4,859 (9,226) (9,615) Net Debt (1,074) (504) Net debt (2) as at 30 June 2019 HK$212,455m Net debt

  8. Slide 8: Financial Profile

    Operating FCF by division Financial Profile EBITDA – Co & Subsidiaries 4,733 6,830 3,558 - 16,297 628 724 433 33,203 EBITDA – Share of Asso. & JVs 1,717 1,352 10,798 4,713 - 35 - 2,170 20,785 Dividends from Asso. & JVs 775 814 2,466 586 - - - 218 4,859 Capex 811 954 113 - 6,320 154 1,105 158 9,615 I

  9. Slide 9: Ports & Related Services

    TEUs EBITDA Growth HK$ m 11.3 m +8% in local currencies • Assets: 16.1 m (-1%) Ports & Related Services US$12.2bn (+8%) 42.1m 18 226 349 6,695 ( 245 ) 6.5 m +4% 6,205 (3) (100) 6,450 (-2%) • 288 Berths 8.2 m (+8%) 52 Ports 1H 2018 HPH Trust Mainland Europe Asia, Corporate 1H 2019 Foreign 1H 2019 EBI

  10. Slide 10: Retail

    Store number EBITDA Growth 472 H&B growth: +6% HK$ m in local currencies 600 2,303 • Assets: 3,666 136 18 US$27.3bn 15,213 7,532 92 201 8,579 (397) 8,182 3,221 +5% 5,551 • World’s largest 1H 2018 H&B H&B H&B H&B Other 1H 2019 Foreign 1H 2019 EBITDA China Asia Western Eastern Retail & Underlying curr

  11. Slide 11: Retail – H&B China

    H&B China - Store Number H&B China – Sales Growth Loyalty Members & Exclusives Comparable Total Comparable Total 8% Sales Growth Sales Growth# Sales Growth Sales Growth# 16% +8% 34% 3,666 +7% +5.4%* 42% +9% Loyalty members Exclusives sales +2.2% H&B China has presence 64 million 48% Retail– H&B Chin

  12. Slide 12: Infrastructure

    CKI’s reported NPAT (1) Stable Earnings & Dividend Growth HK$ m • Assets: 5,942 5,943 $5,943m US$40.7bn Flat 1H 2018 1H 2019 (1) Post-IFRS16 basis • Largest 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014* 2015 2016 2017 2018 1H 2019 publicly listed CKI’s S&P Credit Earnin

  13. Slide 13: Energy

    Net Earnings (1) Production Husky’s Value Chain Integrated Corridor Offshore • Assets: C$698m 276.8 mboe/day (approx. 70% contribution) (approx. 30% contribution) Flat -7% Upstream (1H 2019) • Production (1H2019): US$8.4bn C$ m • Production: 54mboe/day 223mboe/day • Operating costs • Netback: C$24/b

  14. Slide 14: Telecommunications - 3 Group Europe

    Net Customer EBITDA Service Revenue HK$ m $33,245m $16,297m (1) +34% in local currencies 4,824 29 32 +16% +27% ( 90 ) ( 121 ) Telecommunications - 17,138 (+23% in local currencies) (+34% in local ( 841 ) 16,297 currencies) 12,797 ( 333 ) KPI Active mobile customers 41.7m -7% 1H 2018 UK Italy Sweden

  15. Slide 15: Telecommunications - Results by Operations

    Results by Operations UK Italy (1) Sweden Denmark Austria Ireland 3 Group Europe (1) In million GBP EURO SEK DKK EURO EURO HK$ 1H 2019 1H 2018 1H 2018 1H 2019 1H 2018 Wind Tre Wind Tre Wind Tre 1H 2019 1H 2018 1H 2019 1H 2018 1H 2019 1H 2018 1H 2019 1H 2018 1H 2019 1H 2018 (100%) (100%) (50%) Total

  16. Slide 16: Telecommunications - Hutchison Asia Telecommunications

    Total Revenue EBITDA HK$ m $4,325m HK$ m 4,325 +118% in local currencies 4,081 + 6% $724m(2) 394 47 Telecommunications - 1H 2018 1H 2019 (+10% in local currencies) (20) (12) 755 (31) +109% 724 (+118% in local KPI currencies) Active mobile customer account 346 45.7m -29% (1) Million 64.2 45.7 1H 2018

  17. Slide 17: Telecommunications - HAT Indonesia

    Total Revenue EBITDA HK$ m 3,734 $3,734m 3,658 +2% $1,008m Telecommunications - 1H 2018 1H 2019 (+5% in local currency) HK$ m +56% +61% in local currency (+61% in local KPI currency) MACC(2) +19% 360 Active mobile customer account 190 15 (171) 1,039 (31) 1,008 30.0m -43% (1) HAT – Indonesia 645 RGS

  18. Slide 18: CK Hutchison Group Telecom Holdings

    CK Hutchison Group Telecom Holdings

  19. Slide 19: 19

    19

  20. Slide 20: CK Hutchison Group Telecom Holdings Highlights

    Geographical Footprint Investment-Grade Rating Innovative Platform Sizable Tower Portfolio - Leading worldwide - Refinance - IT & network - Set to emerge as #4 operator of mobile independently all Wind transformation European telecom infrastructure portfolio telecommunications Tre existing €10bn hig

  21. Slide 21: Strategic Overview

    Strategic Overview Operational Business Financial Focus on contract customers IT Transformation To increase proportion Credit Rating To complete late 2019 of high margin Maintain investment or early 2020 for contract customers grade rating certain countries 5G Ready To complete UK and Ireland IT & n

  22. Slide 22: CK Hutchison Group Telecom

    CK Hutchison Group Telecom 100% 8 53.6mn 28,500 Investment grade geographical owned by CKHH customers European towers rating locations(1) 66.09% 100% 100% 60% 60% 100% 100% HTHKH HK & Macau UK Italy Sweden Denmark Austria Ireland 3.8 million 13.3 million 25.7 million 2.0 million 1.4 million 3.7 mill

  23. Slide 23: CK Hutchison Group Telecom

    CK Hutchison Group Telecom Total Asset (HK$345.0bn) Total Revenue (HK$46.0bn) 28% of CKHH 21% of CKHH Total EBITDA (HK$17.0bn) Total CAPEX (HK$7.5bn) 31% of CKHH 70% of CKHH The numbers represented 1H 2019 operating results under pre-IFRS 16 basis of CK Hutchison Group Telecom’s operating entities (

  24. Slide 24: Group Telecom Holdings preliminary Revenue, EBITDA and EBIT for 1H 2019

    CK Hutchison Group Telecom Holdings preliminary Revenue, EBITDA and EBIT for 1H 2019 Preliminary Pre-IFRS 16 Preliminary Pre-IFRS 16 Preliminary Pre-IFRS 16 # # # combined unaudited results combined unaudited results combined unaudited results for the six months for the six months for the six months

  25. Slide 25: CK Hutchison Networks

    CK Hutchison Networks 25

  26. Slide 26: CK Hutchison Networks – A Leading Telecom Infrastructure Company

    CK Hutchison Networks – A Leading Telecom Infrastructure Company 28.5k sites across Europe, with the option to include a further 9.3k sites in Asia Set to emerge as the 4th largest Tower Co in Europe A wholly owned subsidiary of CK Hutchison Group Telecom anchored by Three CK Hutchison Networks Spec

  27. Slide 27: Telecom Infrastructure Reorganisation Structure

    Telecom Infrastructure Reorganisation Structure Pre CK Hutchison Networks Reorganisation Post CK Hutchison Networks Reorganisation CKHH CKHH 100% 100% CK Hutchison Group CK Hutchison Group Telecom Telecom 66.09% 100% 100% 60% 60% 100% 100% 66.09% 100% / 60% 100% HTHKH UK Sweden Denmark Austria Irela

  28. Slide 28: Scope of Tower Infrastructure to be Included

    Scope of Tower Infrastructure to be Included The below diagram illustrates which assets will be transferred to or included in CK Hutchison Networks and which assets will remain with the MNO operations Scope of Services Performed by Illustrative Tower / Mast Site CK Hutchison Networks Panel Antennas

  29. Slide 29: Global Telecom Infrastructure Portfolio

    Global Telecom Infrastructure Portfolio Sites and Tenancy Ratios by Country 1,200 7,300 (1) (1.1x) (4) Potential to add 9.3k sites across Asia (5) N/A 6,200 (2) (1.3x) (3,4) 1,100 (1.2x) (4) 4,600 (1.2x) (4) 8,100 (1.2x) (4) Note: (1) Telecom Infrastructure of approx. 7,300 sites, primarily managed

  30. Slide 30: Networks will Hold One of the Largest Portfolios in Europe

    CK Hutchison Networks will Hold One of the Largest Portfolios in Europe ILLUSTRATIVE TOWER PORTFOLIO TRANSACTIONS 4 ILLUSTRATIVE LEASE RATE / SITE 5 (000 sites)1 51 SELECT TRANSACTIONS IMPLIED VALUE / SITE High End (2015) EUR350k / Site Urban 37 Average EUR27.5k p.a. EUR250k / Site 30 29 Low End Rur

  31. Slide 31: Key Project Timeline

    Key Project Timeline 31

  32. Slide 32: Key Strategic Focus

    Key Strategic Focus Q4 2019 – early 2020 2020 Q3 2019 UK & Ireland Scandinavia, Wind Tre Completion of Austria & HK Completion of IT & network Small Remaining network & IT transformation & 5G spectrum Operations auctions transformation continuation of 5G rollout Milestones Aug 2019 Deal Announcement

  33. Slide 33: Appendix

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  34. Slide 34: Appendix

    iz) S =) A) © a 1m Appendix Inter 2019

  35. Slide 35: Analyses of Core Business Segments by Geographical Location

    CK Hutchison Holdings Limited 2019 Interim Report Analyses of Core Business Segments by Geographical Location Total Revenue for the six months ended 30 June 2019 HK$217,062 million Europe HK$104,206 million 5% 39% 14% 42% Canada r 11% Mainland China HK$19,488 million 8%* 8% Asia, Australia Europe 9%

  36. Slide 36: Operations Highlights – Ports and Related Services

    CK Hutchison Holdings Limited 2015 Interim Report 2019 Operations Highlights Ports and Related Services 30 June 2019 30 June 2018 Local currencies HK$ million HK$ million Change change Total Revenue (1) 17,550 17,591 — +5% EBITDA (1) (4) 6,450 6,205 +4% +8% EBIT (1) (4) 4,250 3,864 +10% +14% Through

  37. Slide 37: Ports throughput increased by 4% to 42.1 million TEU

    CK Hutchison Holdings Limited 2015 Interim Report 2019 Throughput increased by 4% to 42.1 million TEU in the first half of 2019, with 65% and 35% local and transhipment volume respectively (1H 2018: same). Throughput improvements primarily coming from Klang in Malaysia due to strong transhipment vol

  38. Slide 38: Retail

    CK Hutchison Holdings Limited 2015 Interim Report 2019 Retail 30 June 2019 30 June 2018 Local currencies HK$ million HK$ million Change change Total Revenue 83,161 83,874 -1% +4% EBITDA (5) 8,182 7,532 +9% +14% EBIT (5) 6,590 5,992 +10% +15% Store Numbers 15,213 14,432 +5% Net Store Comparable Store

  39. Slide 39: Retail Total Revenue and EBITDA

    CK Hutchison Holdings Limited 2015 Interim Report 2019 Total Revenue Total EBITDA (5) Local Local 30 June 30 June currencies 30 June EBITDA 30 June EBITDA currencies HK$ million 2019 % 2018 % Change change 2019 % Margin 2018 % Margin Change change H&B China 12,512 15% 12,353 15% +1% +8% 2,412 29% 19

  40. Slide 40: Infrastructure

    CK Hutchison Holdings Limited 2015 Interim Report 2019 Infrastructure 30 June 2019 30 June 2018 Local currencies HK$ million HK$ million Change change Total Revenue (9) 25,625 34,225 -25% -21% – CKI 24,945 27,416 -9% -4% – Co-owned infrastructure assets 680 6,809 -90% -89% EBITDA(9) (10) 14,356 18,9

  41. Slide 41: Husky Energy

    CK Hutchison Holdings Limited 2015 Interim Report 2019 Husky Energy 30 June 2019 30 June 2018 Local currency HK$ million HK$ million Change change Total Revenue 23,465 27,315 -14% -11% EBITDA (12) 4,713 5,877 -20% -17% EBIT (12) 1,787 2,761 -35% -32% Production (mboe/day) 276.8 297.9 -7% Husky’s rep

  42. Slide 42: Husky Energy (continued)

    CK Hutchison Holdings Limited 2015 Interim Report 2019 Husky Energy (continued) 2019 Five-Year Plan Guidance Husky’s 2019 production guidance remains unchanged at 290,000 boe/day to 305,000 boe/day, and capital spending remains on target at C$3.3 billion to C$3.5 billion. Husky continues to explore

  43. Slide 43: 3 Group Europe

    CK Hutchison Holdings Limited 2015 Interim Report 2019 3 Group Europe 30 June 2019 30 June 2018 Local currencies HK$ million HK$ million Change change Total Revenue 43,464 36,124 +20% +27% – Net customer service revenue 33,245 28,551 +16% +23% – Handset revenue 6,694 5,410 +24% – Other revenue 3,525

  44. Slide 44: 3 Group Europe - Results by operations

    CK Hutchison Holdings Limited CK Hutchison Holdings Limited 2015 Interim Report 2019 2019 2015 Interim Report 3 Group Europe - Results by operations UK Italy (18) Sweden Denmark Austria Ireland 3 Group Europe (18) In million GBP EURO SEK DKK EURO EURO HK$ 1H 2019 1H 2018 1H 2018 1H 2019 1H 2018 Wind

  45. Slide 45: 3 Group Europe (continued) Key Business Indicators

    CK Hutchison Holdings Limited 2015 Interim Report 2019 3 Group Europe (continued) Key Business Indicators Registered Customer Base Registered Customers at Registered Customer Growth (%) from Registered Customer Growth (%) from 30 June 2019 (’000) 31 December 2018 to 30 June 2019 30 June 2018 to 30 J

  46. Slide 46: 12-month Trailing Net ARPU and AMPU

    CK Hutchison Holdings Limited 2015 Interim Report 2019 12-month Trailing Net Average Revenue per Active User (“Net ARPU”) (28) to 30 June 2019 % Variance Blended compared to Non-contract Contract Total 30 June 2018 United Kingdom £4.93 £17.30 £13.38 -1% Italy €9.65 €13.16 €10.86 -11% Sweden SEK116.3

  47. Slide 47: 3 Group Europe (continued)

    CK Hutchison Holdings Limited 2015 Interim Report 2019 3 Group Europe (continued) United Kingdom EBITDA and EBIT decreased by 8% and 13% in local currency respectively compared to the same period last year, mainly driven by higher cost incurred for network and IT transformation projects and lower ne

  48. Slide 48: CK Hutchison Group Telecom Holdings and CK Hutchison Networks Holdings

    CK Hutchison Holdings Limited 2015 Interim Report 2019 CK Hutchison Group Telecom Holdings and CK Hutchison Networks Holdings In July 2019, the Group formed a new wholly-owned telecommunication holding company, CK Hutchison Group Telecom Holdings (“CK Hutchison Telecom”), which consolidates the Grou

  49. Slide 49: Hutchison Asia Telecommunications

    CK Hutchison Holdings Limited 2015 Interim Report 2019 Hutchison Asia Telecommunications 30 June 2019 30 June 2018 Local currencies HK$ million HK$ million Change change Total Revenue 4,325 4,081 +6% +10% - Indonesia 3,734 3,658 +2% +5% - Vietnam 329 258 +28% +28% - Sri Lanka 262 165 +59% +81% EBITD

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