Ck Hutchison Holdings Ltd · HKEX:1

Ck Hutchison — H1 2017 Earnings Presentation

27 slides from Ck Hutchison's earnings presentation, Aug 3, 2017

  1. Slide 1: 2017 Interim Results Operations Analysis

    [i Feil All ac FESR A PR CK HUTCHISON HOLDINGS LIMITED Stock code: 1 2017 Interim Results Operations Analysis (incorporated in the Cayman Islands with limited liability)

  2. Slide 2: Disclaimer

    Disclaimer Potential investors and shareholders of the Company (the “Potential Investors and Shareholders”) are reminded that information contained in this Presentation comprises extracts of operational data and financial information of the Group for the six months period ended 30 June 2017. The inf

  3. Slide 3: 1H 2017 Financial Highlights

    1H 2017 Financial Highlights Total Revenue (1) Reported EBITDA (1) Reported EBIT (1) HK$ billions HK$ billions HK$ billions YOY Change: +5% YOY Change: +2% YOY Change: +2% Local ccy Change: +9% Local ccy Change: +7% Local ccy Change: +7% Recurring Earnings & EPS (2) Reported Earnings & EPS (3) Inter

  4. Slide 4: Business & Geographical Diversification

    Business & Geographical Diversification 1H 2017 Total Revenue : HK$190,053 million Increase 5% in reported currency (Increase 9% in local currencies) By Geographical Location By Division 4

  5. Slide 5: Business & Geographical Diversification

    Business & Geographical Diversification 1H 2017 Reported EBITDA: HK$45,311 million Increase 2% in reported currency (Increase 7% in local currencies) By Geographical Location By Division 5

  6. Slide 6: Business & Geographical Diversification

    Business & Geographical Diversification Reported EBITDA EBITDA growth: +2% HK$ millions Local currencies growth: +7% 1H 2017 5,706 6,527 15,841 4,002 11,255 1,309 256 415 45,311 1H 2016 5,744 6,562 16,691 3,686 8,492 1,316 1,248 517 44,256 Variance (38) (35) (850) 316 2,763 (7) (992) (102) 1,055 % C

  7. Slide 7: European Contribution: UK Focus

    European Contribution UK Focus PORTS TOTAL EBITDA(1): HK$45.3 billion - Modest YOY throughput growth & tariffs in 1H 2017 - World’s largest container ship with 21,000 TEU made its maiden call at Felixstowe in June 2017 RETAIL - The UK businesses achieved 4.2% comparable store sales growth & 17% EBIT

  8. Slide 8: European Contribution: Europe (ex-UK) Focus

    European Contribution Europe (ex-UK) Focus PORTS TOTAL EBITDA(1): HK$45.3 billion - Throughput stable in 1H 2017 as higher volumes at Barcelona fully offset the drop in Rotterdam due to intensified competition in the area - Improved cost efficiencies through reduction in cost per move, while maintai

  9. Slide 9: European Contribution

    European Contribution Cash & Cash Equivalent: HK$157.8 billion Gross Debt(4): HK$327.8 billion Net Debt: HK$170.0 billion Net Assets: HK$558.7 billion Currency Sensitivities 10% depreciation 10% depreciation HK$ billions GBP against HKD(2) EURO against HKD(2) EBITDA 1.4 0.9 Cash & Cash Equivalent 0.

  10. Slide 10: Ports and Related Services

    Ports and Related Services 1H 2017 (1) 1H 2016 (1) % Change in % Change HK$ millions HK$ millions local currencies Total Revenue 16,195 16,142 Flat +3% EBITDA 5,706 5,744 -1% +2% EBIT 3,623 3,722 -3% Flat Throughput 41.1 million TEU 40.0 million TEU +3% NA  Throughput increased by 3% to 41.1 millio

  11. Slide 11: Ports and Related Services

    Ports and Related Services EBITDA(1) Change HK$ millions EBITDA change: -1% Local currency growth: +2% Note (1): EBITDA has been adjusted to exclude non-controlling interests’ share of EBITDA of HPH Trust. Note (2): Asia, Australia and others includes Panama, Mexico and the Middle East. - represents

  12. Slide 12: Retail

    Retail 1H 2017 1H 2016 % Change in % Change HK$ millions HK$ millions local currencies Total Revenue 73,557 73,413 Flat +3% EBITDA 6,527 6,562 -1% +3% EBIT 5,232 5,338 -2% +1% Store Numbers 13,507 12,657 +7% NA Total Retail Store Numbers Total Revenue EBITDA STORE NUMBERS (+7%) (flat in reported cur

  13. Slide 13: Retail

    Retail COMPARABLE STORE SALES HK$ millions TOTAL REVENUE EBITDA (1) GROWTH % % Local Ccy EBITDA EBITDA % Local Ccy 1H 2017 1H 2016 1H 2017 Margin % 1H 2016 1H 2017 1H 2016 Change % Change Margin % Change % Change H&B China 10,615 10,630 - +4% 2,186 21% 2,349 22% -7% -3% -6.2%(2) -8.5% H&B Asia 12,10

  14. Slide 14: Retail

    Retail EBITDA Change HK$ millions EBITDA change: -1% Local currencies growth: +3% Note (1): Other Retail includes PARKnSHOP, Fortress, Watson’s Wine and manufacturing operations for water and beverage businesses. - represents adverse foreign exchange translation impact 14

  15. Slide 15: Infrastructure

    Infrastructure 1H 2017 1H 2016 % Change in % Change HK$ millions HK$ millions local currency Total Revenue 25,918 27,221 -5% +2% EBITDA 15,841 16,691 -5% +2% EBIT 11,949 12,291 -3% +4% Earnings per Share,  In reported currency, excluding the disposed aircraft leasing business contribution in 1H 201

  16. Slide 16: Energy

    Energy 1H 2017 1H 2016 % Change in % Change HK$ millions HK$ millions local currency Total Revenue 21,184 13,392 +58% +58% EBITDA 4,002 3,686 +9% +9% EBIT 839 612 +37% +37% Average Production 326.7 mboe/day 328.6 mboe/day -1% NA  Husky Energy’s announced a net loss of C$22 million in 1H 2017, a 97%

  17. Slide 17: Energy

    Energy Average Production  Average production marginally decreased by 1% to 326.7 mboe/day in 1H 2017 compared to 1H 2016, mainly due to the sale of selected low margin legacy assets, partly offset by increased production from thermal developments including production ramp up at the Sunrise Energy

  18. Slide 18: Telecommunications - 3 Group Europe

    Telecommunications - 3 Group Europe 1H 2017 1H 2016 % Change in % Change HK$ millions HK$ millions local currency Total Revenue (incl. handset revenue) 33,215 30,165 +10% +17% EBITDA 11,255 8,492 +33% +40% EBIT 7,510 5,410 +39% +46% 3 Group Europe - EBITDA & EBIT 3 Group Europe ‘s  Following the su

  19. Slide 19: Telecommunications - Group Europe

    Telecommunications - 3 Group Europe EBITDA Growth HK$ millions EBITDA growth: +33% Local currencies growth: +40% - represents adverse foreign exchange translation impact 19

  20. Slide 20: Telecommunications - Group Europe

    Telecommunications - 3 Group Europe Results by operations UK (1) Sweden Denmark Austria Ireland 3 Group Europe Italy In millions GBP EURO SEK DKK EURO EURO HK$ 1H 2017 1H 2016 1H 2017 1H 2016 Wind Tre 3 Italia 1H 2017 1H 2016 1H 2017 1H 2016 1H 2017 1H 2016 1H 2017 1H 2016 1H 2017 1H 2016 (50%) (100

  21. Slide 21: Telecommunications - Wind Tre, Italy

    Telecommunications - Wind Tre, Italy Wind Tre Joint Venture (Formed on 5 November 2016) Mobile Customer Market Share as at 30 June 2017 Key Strategic Initiatives 1H 2017 Accretive EBITDA(4) growth from WIND TRE Note (1): Wind Tre registered mobile customers as at 30 June 2017. Fixed customers as at

  22. Slide 22: Customer Base - Mobile businesses

    Telecommunications - 3 Group Europe Customer Base - Mobile businesses Total Registered Customers at 30 June 2017: 52,316k Total Active Customers(1) at 30 June 2017: 45,247k 1% decrease against 31 December 2016 2% decrease against 31 December 2016 Ireland Ireland Austria 6% Austria 5% 7% UK 6% UK Den

  23. Slide 23: Key Business Indicators - Mobile businesses

    Telecommunications - 3 Group Europe Key Business Indicators - Mobile businesses 3 GROUP (3) UK Italy Sweden Denmark Austria Ireland EUROPE AVERAGE (6) Contract £18.80 €16.10 SEK215.24 DKK155.84 €19.54 €22.73 €20.10 12-month Trailing Non-Contract £5.52 €11.09 SEK127.92 DKK99.09 €10.22 €15.42 €10.38 (

  24. Slide 24: Telecommunications - HTHKH & HAT

    Telecommunications - HTHKH & HAT HTHKH 1H 2017 1H 2016 % Change HK$ millions HK$ millions Total Revenue 5,069 5,369 -6% EBITDA 1,309 1,316 -1% EBIT 494 553 -11%  HTHKH announced profit attributable to shareholders of HK$324 million and earnings per share of 6.72 HK cents, a decrease of 10% compared

  25. Slide 25: Telecommunications HTAL, share of VHA

    Telecommunications HTAL, share of VHA  VHA’s customer base increased to approximately 5.7 million (including MVNOs) at 30 June 2017.  Attributable share of EBITDA of A$239 million represented a 16% increase over the same period last year driven by the growth in revenue from its improved contract c

  26. Slide 26: Financial profile

    Financial profile Healthy maturity and liquidity profile Liquid LiquidAssets AssetsbybyCurrency Type Debt(1) Maturity Debt MaturityProfile Profileatat30 30June June2017 2017- –Principal Principalonly Only at 30 June 2017 at 30 June 2017 Liquid LiquidAssets AssetsbybyCurrency Currency atat30 June 201

  27. Slide 27: Financial profile

    Financial profile 1H 2017 EBITDA, Dividends from Associated Companies & JVs less Capex of Company & Subsidiaries and Investments in Associated Companies & JVs by division HK$ millions EBITDA (1) – Co & Subsid 3,966 5,339 5,451 - 6,907 1,277 256 (353) 22,843 EBITDA (1) – Asso. & JVs 1,740 1,188 10,39

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