Hutchison Telecommunications Hong Kong Holdings Limited · HKEX:215

Hutchison Telecommunications Hong Kong — H1 2014 Earnings Presentation

28 slides from Hutchison Telecommunications Hong Kong's earnings presentation, Jul 30, 2014

  1. Slide 1: 2014 Interim Results Presentation

    Hutchison Telecommunications Hong Kong Holdings Limited (Stock Code: 215) 2014 Interim Results Presentation 30 July 2014

  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 2014 2013 2014 1H 1H 1H vs 2013 1H HK$ millions HK$ millions Consolidated Turnover 6,227 6,149 +1% Consolidated EBITDA 1,181 1,471 -20% Consolidated EBIT 527 820 -36% Profit before tax 444 739 -40% Net Profit(1) 323 572 -44% 6.70 11.87 Earnings per Share -44% HK cents HK cents 4.25 6.25 I

  5. Slide 5: Highlights

    Highlights 2014 2013 2014 1H 1H 2H vs 2013 2H HK$ millions HK$ millions Consolidated Turnover 6,227 6,628 -6% Consolidated EBITDA 1,181 1,203 -2% Consolidated EBIT 527 519 +2% Profit before tax 444 428 +4% Net Profit(1) 323 344 -6% 6.70 Earnings per Share N/A N/A HK cents 4.25 Interim Dividend per S

  6. Slide 6: Prospects

    Prospects  Balanced integrated telecommunications operators demonstrated resilience amid a volatile mobile business environment  Mobile business  Increasingly more rational market, recently seen some price recovery and this trend is expected to continue  Anticipated launch of new exciting smart

  7. Slide 7: Mobile

    Mobile

  8. Slide 8: Quality customer base

    Quality customer base Total customers* 3G+4G LTE Postpaid customers* 2014 1H vs 2013 1H: -5% 2014 1H vs 2013 1H: -7% 4,000 3,784 3,771 3,588 4,000 61% 61% 62% 70% % 3G+4G postpaid customers 1,926 1,888 1,799 ’000 ’000 2,000 1,926 1,888 35% 2,000 1,799 1,172 1,151 1,116 1,487 1,618 1,561 65 754 737 6

  9. Slide 9: Mobile KPIs

    Mobile KPIs Blended Postpaid Gross ARPU(1) Blended Postpaid Net ARPU(2) 2014 1H vs 2013 1H: -4% 2014 1H vs 2013 1H: -5% 300 258 250 300 247 HK$ / month 208 201 197 HK$ / month 200 200 100 100 0 0 FY 2013 2013 1H FY 2013 2013 2H FY 2014 2014 1H 2013 2013 2014 FY 2013 1H 1H FY 2013 2H 2H FY 2014 1H 1H

  10. Slide 10: Differentiation focus

    Differentiation focus  Customer-oriented initiatives  Exclusive offers on the way 3Meter Voice over Long-Term-Evolution 3 Citi Wallet Magisto DayDayCook One single daily roaming charge for same-day cross-EU country travel 9

  11. Slide 11: Fixed-line

    Fixed-line MetONEDX Cutt Cloud Block Storage

  12. Slide 12: International & Local Carrier market

    International & Local Carrier market 54% Contribution to fixed-line revenue HGC global reach HGC global reach HGC global reach  International service • Carriers’ carrier in Asia  Local backhaul service • Key market player to offer capacity 11 Local fixed-line coverage

  13. Slide 13: Corporate and business market

    Corporate and business market  One-stop provider with full range of 28% comprehensive solution based services  Serving mainly government authorities, Contribution to fixed-line revenue corporate, retail, SME and education sectors 12

  14. Slide 14: Residential market

    Residential market  Full array of multimedia offerings 15%  1Gbps Fibre-to-the-Home offering in service Contribution to fixed-line revenue 13

  15. Slide 15: Data centre business and others

    Data centre business and others  Geographically dispersed data centres 3%  Graded tier-3 or higher with ISO 27001 security certification  Inauguration of Kwai Chung data centre Contribution to fixed-line revenue  50/50 JV with Cheung Kong Holding Kwai Chung Shatin Wong Chuk Hang 14

  16. Slide 16: Financial Overview

    Financial Overview

  17. Slide 17: Financial Highlights - Consolidated

    Financial Highlights - Consolidated 2014 1H vs 2014 1H 2013 1H 2013 1H HK$m HK$m Turnover 6,227 6,149 +1% EBITDA 1,181 1,471 Consolidated EBITDA margin (%) (EBITDA / service revenue) 29% 34% Depreciation and amortisation (654) (651) EBIT 527 820 -36% Net interest expense (71) (77) Share of results o

  18. Slide 18: Financial Highlights - Consolidated

    Financial Highlights - Consolidated 2014 1H vs 2014 1H 2013 2H 2013 2H HK$m HK$m Turnover 6,227 6,628 -6% EBITDA 1,181 1,203 Consolidated EBITDA margin (%) (EBITDA / service revenue) 29% 29% Depreciation and amortisation (654) (684) EBIT 527 519 +2% Net interest expense (71) (83) Share of results of

  19. Slide 19: Turnover

    Turnover Consolidated turnover 34% 2014 1H vs 2013 1H: +1% 10,000 36% 29% 29% service revenue(%) EBITDA margin on 6,628 27% HK$ millions 6,149 6,227 1,814 2,407 2,090 5,000 18% 4,335 4,221 4,137 9% 0 2013 2013 2014 0% FY 2013 1H 1H FY 2013 2H 2H FY 2014 1H 1H Mobile business turnover Fixed-line busi

  20. Slide 20: Turnover – mobile service revenue

    Turnover – mobile service revenue 1H 2013 2H 2013 1H 2014 Service revenue: Service revenue: Service revenue: HK$2,638 million HK$2,500 million HK$2,348 million (vs 1H13: -16%) Roaming Roaming Roaming data data data Roaming 10% 9% 10% Roaming Data(1) Roaming Roaming non-data Local10% Local 16% Local

  21. Slide 21: Turnover - Fixed-line business

    Turnover - Fixed-line business 1H 2013 2H 2013 1H 2014 Total revenue: Total revenue: Total revenue: HK$1,927 million HK$1,953 million HK$2,013 million Others1 Others1 Others1 3% 3% 4% Residential Residential Residential 15% 16% 15% (vs 1H13: 0%) International International International and Local an

  22. Slide 22: Key cost items

    Key cost items Cost of inventories sold Key cost items YoY change: +24% YoY change: -1% 3,000 4,000 3,661 +5% 3,834 -5% 3,640 684 18% 2,275 -9% 651 18% 654 18% HK$ millions HK$ millions +36% 2,060 364 10% 436 11% 347 9% 2,000 1,668 373 10% 410 11% 361 10% 2,000 1,000 65.3% 2,273 62% 2,304 2,278 63%

  23. Slide 23: Profitability

    Profitability Profit before taxation 800 739 2014 1H vs 2013 1H: -40% -42% HK$ millions +4% 444 428 400 0 2013 2013 2014 FY 2013 1H 1H FY 2013 2H 2H FY 2014 1H 1H Net profit* Earnings per share 800 15.00 2014 1H vs 2013 1H: -44% 2014 1H vs 2013 1H: -44% 11.87 572 -40% HK$ millions -40% 10.00 HK cent

  24. Slide 24: Capex investment

    Capex investment Consolidated Capex YoY change: -25% 800 718 30% % to service revenue 562 HK$ millions 420 400 15% 17% 13% 10% 0 0% 20131H FY 2013 20132H FY 2013 FY2014 2014 1H 1H 2H 1H Mobile Capex Fixed-line Capex 500 30% 500 30% YoY change: -33% YoY change: -15% % to service revenue % to service

  25. Slide 25: Financial position

    Financial position Net debt Net debt/ LTM EBITDA 2014 1H vs 2013 1H: -7% 5,000 40% 2.0 4,362 4,058 1.6x 1.6x Net debt to net total 3,794 1.3x HK$ millions capital % 27% 28% 2,500 25% 20% 1.0 0 0% 0.0 FY As 2013 at 1H FY 2013 As at 2H FY As 2014 at 1H FY 2013 As at 1H FY 2013 As at 2H FY 2014 As at 1

  26. Slide 26: Dividend and Liquidity

    Dividend and Liquidity EBITDA less CAPEX Interim dividend per share 2014 1H vs 2013 1H: -16% 2014 1H vs 2013 1H: -32% 1,200 12.00 909 HK$ millions 800 -47% 761 HK cents +57% 6.05 6.25 485 6.00 4.25 400 0 0.00 2013 1H FY 2013 2013 2H FY 2013 2014 1H FY 2014 2012 2013 2014 1H 2H 1H FY 2012 1H 1H FY 20

  27. Slide 27: Q&A

    Q&A

  28. Slide 28: Thank You

    Thank You

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