China Tower Corp. Ltd. Class H · HKEX:788
China Tower Corp. Ltd. Class H — China Tower Corp Ltd H — FY2023 Earnings Presentation
34 slides from China Tower Corp. Ltd. Class H's earnings presentation, Mar 18, 2024
Slide 1: 2023 Annual Results
2023 Annual Results 18 March 2024
Slide 2: Management
Management Mr. Zhang Zhiyong Executive Director and Chairman Mr. Gao Chunlei Executive Director Mr. Hu Shaofeng Chief Accountant
Slide 3: Content
Content 01 02 03 Overall Operational Financial Performance Performance Performance
Slide 4: 01 Overall Performance
01 Overall Performance Zhang Zhiyong Executive Director and Chairman
Slide 5: Highlights
Highlights Sound operational performance， 01 achieved double-digit growth of 11% Supported by multiple pillars, Two Wings business’ 02 revenue increased to 12.2% of the total operating revenue Smart Tower serving digital governance, 217,000 03 “telecommunication towers’’ upgraded to “digital towers”
Slide 6: Key results: revenue, EBITDA, operating cash flow, tenants
RMB94,009 million RMB63,551 million RMB32,840 million Operating Revenue EBITDA* Operating Cash Flow 2.0% 1.1% 49.6% RMB9,750 million 3.658 million 1.79 tenants/site Profit attributable to the Owners of the Company Tenants Tower Tenancy Ratio 11.0% 2.1% 2.9% Note: EBITDA is calculated by operating pr
Slide 7: Deepened "One Core and Two Wings" Strategy
Deepened "One Core and Two Wings" Strategy Two Wings business Operating revenue (RMB million) (RMB million) 11,497 +6.0% 29.1% 8,904 97,723 92,170 94,009 2.0% 2022 2023 0.2% Revenue structure 0.4% 9.7% 12.2% 90.1% 87.4% 2022 2023 2023 on comparable basis* 2022 2023 TSP business Two Wings business Ot
Slide 8: Further Consolidation of TSP Business' Leading Position
Further Consolidation of TSP Business’ Leading Position TSP business revenue (RMB million) Number of 5G base station demand1 • Took up all new construction +3.4% (Thousand) 586 demand: completed approximately 586,000 5G construction demand in 535 2023， increased 9.5% year on year, cumulative number
Slide 9: Smart Tower Business Achieved Rapid Growth
Smart Tower Business Achieved Rapid Growth Smart Tower business revenue (RMB million) 7,283 Platform Data 27.7% • Established the foundation for “Unified Nationwide • Transformed from single-source video data Network” platform, realized distributed deployment and access to multi-source data access 5
Slide 10: Energy Business Continued to Foster Competitive Advantages
Energy Business Continued to Foster Competitive Advantages Energy business revenue Continued to optimize products and Acclerated platform upgrade (RMB million) consolidate product advantages and ensured stable support • Accelerated platform iteration and • Optimized and upgraded battery upgrade, con
Slide 11: Strengthened Technological Innovation Capabilities
Strengthened Technological Innovation Capabilities Continued to forge core capabilities in Deepened reform of technological technological innovation innovation systems and mechanisms Target the forefront of Serve the main battlefields Built "four-in-one" world technology of the economy innovation sy
Slide 12: Enhanced Operation and Management Capabilities
Enhanced Operation and Management Capabilities Enhanced digital Enhanced reform and operation capabilities innovation capabilities ⚫ Carried out “intelligent operation and ⚫ Deepened the tenure system and contract maintenance” and deepened the“one-code-for- management，strengthened incentives system
Slide 13: Consistent Increase in Dividend Payout Ratio
Consistent Increase in Dividend Payout Ratio The Board recommends a final dividend of RMB0.03739 per share (before tax) in 2023 EPS DPS (RMB Yuan) (RMB Yuan) 0.0558 Payout ratio* 75% 72% 0.0503 10.9% 0.03739 15.7% 0.03232 2022 2023 2022 2023 Note：Dividend payout amount/distributable net profit for t
Slide 14: Actively Implemented ESG Concepts
Actively Implemented ESG Concepts Environment Social Governance Effectively implemented the Fully support emergency Continued to improve corporate concept of green sharing communications governance mechanism ⚫ Reduced redundant investment construction in the industry ⚫ Completed emergency communicat
Slide 15: High-quality Development with the Support of Strategy
High-quality Development with the Support of Strategy Deepening implementation of Accelerating the upgrade of Accelerating green and low- “Cyberpower” strategy “digitalization” carbon transformation The “Digital China”,“ Beautiful China”and rural Continues to push forward the“dual carbon” Policies o
Slide 16: 02 Operational Performance
02 Operational Performance Gao Chunlei Executive Director
Slide 17: Key Operational Indicators
Key Operational Indicators Indicators 2022 2023 Change Change On comparable basis* Operating Revenue (RMB million) 92,170 94,009 2.0% 6.0% TSP Business 83,031 82,163 -1.0% 3.4% Smart Tower Business 5,704 7,283 27.7% Energy Business 3,200 4,214 31.7% Number of Tower Tenants (thousand) 3,583 3,658 2.1
Slide 18: Supported by Multiple Pillars, Sustainable Development Capability Continued to Grow
Supported by Multiple Pillars, Sustainable Development Capability Continued to Grow RMB million 1.7pp 1.4pp 1.7pp 1.1pp 0.1pp +6.0% 114 97,723 1,579 1,014 1,313 92,170 1,533 TSP business Two Wings business 51.2% 46.7% 2022 Tower DAS Smart Tower Energy Others 2023 business business business business
Slide 19: Tower Business Maintained Steady Growth
Tower Business Maintained Steady Growth Revenue from Tower business (RMB million) Accelerated the construction and delivery of tower sites, and +2.0% improved investment efficiency Continued to improve tower site selection, construction and delivery 77,204 2.8% 75,023 78,737 capabilities to fully me
Slide 20: DAS Business Continued Rapid Growth
DAS Business Continued Rapid Growth Enhanced resource coordination capabilities Revenue from DAS business (RMB million) 22.5% 7,140 Tapped into the sharing 5,827 potential of existing DAS Strengthened professional service capabilities 2022 2023 20
Slide 21: Development of Smart Tower Business is Gaining Momentum
Development of Smart Tower Business is Gaining Momentum “Relied on the rich resources and platforms from its mid-to high-point positions and edges in algorithms to serve the society with digital governance” Tower Monitoring Tower Sharing Business Revenue Business Revenue 64.9% 35.1% 4,727 million 2,
Slide 22: Development of Smart Tower Business is Gaining Momentum (Cont.)
Development of Smart Tower Business is Gaining Momentum（Cont.) Enhanced Improved platform construction algorithm capabilities • Deployed provincial nodes in 17 • Complete spatial governance algorithm provinces across the country training tool • Platform-based distributed deployment, • Rich mid- and
Slide 23: Energy Business Grew Bigger and Stronger
Energy Business Grew Bigger and Stronger Revenue from battery exchange business Business scale grew rapidly (RMB million) Battery exchange users Cities deployed 1.145 million 300+ 2,067 14.8% 1,800 Product service capabilities continued to improve Enhanced product system: battery Improved service le
Slide 24: Energy Business Grew Bigger and Stronger (Cont.)
Energy Business Grew Bigger and Stronger (Cont.) Integrated "Four-in-One" Solution Revenue from power backup business Deepened the integrated four-in-one solution of “power (RMB million) backup, power generation, monitoring, and maintenance”, and vigorously promoted standardized power backup product
Slide 25: 03 Financial Performance
03 Financial Performance Hu Shaofeng Chief Accountant
Slide 26: Key Financial Indicators
Key Financial Indicators Change (RMB million) 2022 2023 Change On comparable basis* Operating revenue 92,170 94,009 2.0% 6.0% Operating expenses 78,858 79,507 0.8% Operating profit 13,312 14,502 8.9% EBITDA 62,844 63,551 1.1% Net profit 8,787 9,750 11.0% Operating cash flow 38,927 1,125 -97.1% Geari
Slide 27: Sound Cost Control
Sound Cost Control Operating expenses to （RMB million） 2022 2023 Change revenue ratio Operating expenses 78,858 79,507 0.8% 85.6% 84.6% Depreciation and amortization 49,532 49,049 -1.0% Repairs and maintenance 7,593 7,408 -2.4% Employee benefits and expenses 7,940 8,844 11.4% Site operation and supp
Slide 28: Profitability Continued to Improve
Profitability Continued to Improve Operating profit and EBITDA and EBITDA margin operating profit margin （ RMB million ） （ RMB million） 14,502 63,551 62,844 13,312 8.9% 1.1% 68.2% 67.6% 15.4% 14.4% 2022 2023 2022 2023 Net profit Net profit margin （ RMB million ） 9,750 10.4% 8,787 9.5% 11.0% 0.9pp 20
Slide 29: Effective Allocation of CAPEX
Effective Allocation of CAPEX CAPEX Coordinated deployment of investment direction （RMB million） and actively supported the needs for business 31,715 development and construction capabilities 1,656 26,207 21.0% 4,476 1,638 Closely aligned with operators’ network construction plans, and the demand fo
Slide 30: Cash Flow is Temporarily under Pressure
Cash Flow is Temporarily under Pressure Operating cash flow (RMB million) 21,285 （RMB million） 2022 2023 11,555 1H 2023 2H 2023 Operating cash flow 65,134 32,840 Free cash flow (RMB million) 2,392 Free cash flow 38,927 1,125 -1,267 1H 2023 2H 2023 30
Slide 31: Capital Structure Remained Stable and Healthy
Capital Structure Remained Stable and Healthy Liabilities to assets ratio As at As at (RMB million) 31 December 31 December 2.8PP 39.4% 2022 2023 36.6% Total assets 305,560 326,007 Cash and cash 5,117 3,955 equivalents 2022.12.31 2023.12.31 Total liabilities 111,969 128,313 Gearing ratio 3.7PP 31.4%
Slide 32: Appendix: Extracted from Audited Consolidated Statement of Financial Position
Appendix: Extracted from Audited Consolidated Statement of Financial Position as at 31 December 2023 (RMB million) 2022.12.31 2023.12.31 Total assets 305,560 326,007 Current assets 49,706 78,083 Non-current assets 255,854 247,924 Property, plant and equipment 209,377 201,542 Construction in progress
Slide 33: Contact us
Contact us Tel +852 28114566 / Email ir@chinatowercom.cn www.china-tower.com
Slide 34: Disclaimer
Disclaimer By attending the meeting where this presentation is made, or by The information communicated in this presentation may contain reading the presentation materials, you agree to be bound by the certain statements that are or may be forward-looking. These following limitations: statements typ
China Tower Corp Ltd H — FY2023 Earnings Presentation on 6ix