Ck Hutchison Holdings Ltd · HKEX:1

Ck Hutchison — FY2018 Earnings Presentation

116 slides from Ck Hutchison's earnings presentation, Mar 21, 2019

  1. Slide 1: Disclaimer

    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 s

  2. Slide 2: Agenda

    Agenda Strategic 2018 Ports Focus Retail Update Q&A Overview Results 2

  3. Slide 3: Strategic Overview – 2018 Major Market Developments

    Strategic Overview – 2018 Major Market Developments Brexit and GBP/EUR weakening 5G evolution 5G spectrum ready Auction pending 10% Hong Kong Sweden Major 5G 3% EBITDA(1) 2% UK Italy Austria 2019 2019 spectrum • 27% of CKHH EBITDA derived from UK operations, out of 3% NPAT(1) 3% secured which, over

  4. Slide 4: 2018 Results Highlights

    2018 Results Highlights

  5. Slide 5: 2018 Financial Highlights

    2018 Financial Highlights Revenue EBITDA EBIT $453.2bn $113.6bn $72.9bn + 9% + 9% + 8% (+7% in local currencies) (+7% in local currencies) (+6% in local currencies) Reported Earnings EPS DPS $39.0bn $10.11 $3.17 + 11% + 11% +11% (+9% in local currencies) Note : Revenue, EBITDA and EBIT include the G

  6. Slide 6: EBITDA

    EBITDA EBITDA Division Growth (%) HK$ bn $113.6bn + 7% + 9% + 9% + 9% (+7% in local currencies) + 7% + 35% 3 Group Europe HAT 3 HK * Represents contributions from Finance & Investments and Others + 18% + 84% + 4% (2) Note 1: Asia, Australia & Others includes Panama, Mexico and the Middle East Canada

  7. Slide 7: Operating FCF

    Operating FCF Operating FCF Operating FCF by Core Business $43.1bn 2017: $46.0bn HK$ m 930 6,627 (4,510) 52,511 60,068 19,029 14,519 (23,699) (29,019) Port & Related Services Retail Infrastructure Energy (1,829) (1,068) (617) (4,252) (2,446) EBITDA of Subsidiaries Dividend from Asso & JVs Telecommun

  8. Slide 8: World's leading port network

    World’s leading port network Assets: US$12.2bn Ports • 288 berths, 51 ports, 26 countries • 84.6m twenty-foot equivalent units containers handled in 2018 8

  9. Slide 9: Ports

    Ports EBITDA Growth TEUs 24.3m 52 (+2) Berths 30.7m (+1%) (-1%) 84.6m 133 (+1) 42 (-2) 288 Stable 15.8m 13.8m (-4%) against 61 (-) +1 berth (+3%) 2017 10% 10% Volume 9% EBITDA 34% Mix EBITDA 46% 25% $13,392m Change (in local % 66% 66/34 +7% currencies) (Local / Transhipment) HPH Trust Mainland China

  10. Slide 10: World's largest international H&B retailer

    World’s largest international H&B retailer Assets: US$27.4bn Retail • 14,976 stores in 24 markets with 12 retail brands • 135m loyalty members worldwide 10

  11. Slide 11: Retail

    Retail EBITDA Growth 448 Store H&B growth: +9% H&B HK$ m 2,283 3,608 number Total sales 14,976 $138,987 +10% 3,123 5,514 +6% 12% 17% 21% 50% 14% 4% 28% EBITDA $16,164m H&B EBITDA Change % Loyalty members Exclusives sales 36% 18% +9% (in local 62% 34% currencies) sales participation of total sales Ne

  12. Slide 12: World-class infrastructure investor

    World – class infrastructure investor Assets: US$40.5bn • Operations in 32 countries Infrastructure • 26,000km of water mains • 30,000km of sewers • 11,800MW power generation capacity • 483,500km of power networks • 109,000km of gas networks 12

  13. Slide 13: Infrastructure

    Infrastructure HK$ m CKI’s reported NPAT Stable Earnings & $10,443m Dividend Growth +2% “Excluding a few one-off items in 2017, the 2018 profit contribution from CKI’s underlying businesses reported 13% profit growth” CKI’s S&P Credit Net Debt Ratio Rating 16.5% A/Stable 1.1%-pts HK$ m EBITDA Earnin

  14. Slide 14: One of Canada's largest integrated energy companies

    One of Canada’s largest integrated energy companies Assets: US$8.2bn • 299,200 boe per day Energy • Liwan natural gas fields in the South China Sea have produced total sales volumes of more than 13.9bcm since its first gas in 2014 • 2,200km pipelines • 356mbbl per day refining & upgrading capacity 1

  15. Slide 15: Energy

    Energy Production Net Earnings Husky’s Value Proposition 299.2mboe/day C$1,457m -7% 42% from low cost thermal production at 2018 upstream +85% below C$11.50/bbl (FY 2018) operating cost at circa. C$ m 2017 37% 2018 42% US$10.8/boe 1,457 322.9 58% 299.2 16% from fixed-price mboe/day mboe/day 786 63%

  16. Slide 16: Global mobile telecom operator

    Global mobile telecom operator Assets: US$46.4bn Telecommunications • Servicing 112.8m customers in 11 countries • Over 36,000 number of own tower sites • Acquired over 480 MHz of 3.4-3.9 GHz 5G licences in 5 countries 16

  17. Slide 17: Telecommunications - 3 Group Europe

    Telecommunications - 3 Group Europe Net Customer Service Revenue EBITDA $61,813m $28,761m + 10% + 18% (+7% in local currencies) (+14% in local currencies) KPI Active mobile customers 42.9m -4% EBITDA Change % (in local 12-month trailing currencies) Net AMPU €11.88 -8% Data Usage EBITDA 3,013 pb/ yr

  18. Slide 18: Telecommunications - HAT

    Telecommunications - HAT Total Revenue EBITDA HK$ m $8,220m $1,028m +7% +84% Indonesia Focus HK$ m 7,314 7,049 Revenue 2017 2018 Active mobile customers 32.1m -49% (1) EBITDA Change (in local RGS ARPU currencies) US$2.63 +36% Data Usage 1,865.3 pb/ yr +83% Note 1: Reduction primarily due to governme

  19. Slide 19: WIND TRE - 100% CKHH Subsidiary from September 2018

    WIND TRE - 100% CKHH Subsidiary from September 2018 EBITDA Synergies €' m 970 4 months’ results: 3% 270 Interest savings 100% achieved accretive contribution to CKHH EBITDA 210 Target Capex synergies by 2021 490 Opex 67%(1) achieved FY 2017 FY 2018 1 EBITDA Incremental EBITDA (1) Annual run rate as

  20. Slide 20: Ports Focus

    {LI Ports Focus

  21. Slide 21: The World's Leading Port Network

    THE WORLD’s LEADING PORT NETWORK 1

  22. Slide 22: Our Journey, Portfolio, Smart Network, Future

    HUTCHISON PORTS OUR JOURNEY OUR PORTFOLIO OUR SMART NETWORK OUR FUTURE

  23. Slide 23: Our Journey

    OUR JOURNEY

  24. Slide 24: Our Portfolio

    OUR PORTFOLIO

  25. Slide 25: Our Global Network

    OUR GLOBAL NETWORK BELGIUM HONG KONG SAR MAINLAND CHINA S.KOREA UNITED KINGDOM WILLEBROEK KWAI TSING XIAMEN BUSAN MEXICO FELIXSTOWE YANTIAN TUEN MUN NANHAI GWANGYANG VERACRUZ HARWICH GERMANY SHANGHAI THAMESPORT DUISBURG NINGBO JIANGMEN MANZANILLO NETHERLANDS POLAND HUIZHOU ENSENADA ROTTERDAM GDYNIA

  26. Slide 26: Largest terminals by throughput

    YANTIAN, CHINA HONG KONG, CHINA ROTTERDAM, THE NETHERLANDS 13.2 MILLION TEU 10.6 MILLION TEU 7 MILLION TEU FELIXSTOWE, THE UNITED KINGDOM LAEM CHABANG, THAILAND MEXICO 3.8 MILLION TEU 3 MILLION TEU 3 MILLION TEU

  27. Slide 27: Yantian, China

    YANTIAN, CHINA 13.2 MILLION TEU

  28. Slide 28: Laem Chabang, Thailand

    LAEM CHABANG, THAILAND 3 MILLION TEU

  29. Slide 29: Mexico

    VERACRUZ LÁZARO CÁRDENAS MANZANILLO MEXICO 3 MILLION TEU HIDALGO ENSENADA

  30. Slide 30: Strong and Balanced Geographical Portfolio

    STRONG AND BALANCED GEOGRAPHICAL PORTFOLIO 6.6 5.1 THE AMERICAS MIDDLE EAST & AFRICA 24.3 HPH TRUST 18.9 NORTH & SOUTHEAST ASIA 2018 (incl. AUSTRALIA) THROUGHPUT (million TEU) 13.8 CHINA 15.8 EUROPE

  31. Slide 31: Strong and Balanced Customer Support

    STRONG AND BALANCED CUSTOMER SUPPORT OUR TOP 10 CUSTOMERS ACCOUNT FOR 77% TOP SHIPPING LINES TOP 10 CUSTOMERS BY FLEET CAPACITY DEPLOYED CMA CGM 15% OF OUR TOTAL COSCO / OOCL THROUGHPUT 23% EVERGREEN Others HAPAG-LLOYD 12% HMM THESE MAERSK GROUP 3% CUSTOMERS MSC ACCOUNT FOR 3% 81% ONE 4% 11% PIL 5%

  32. Slide 32: Global Account Management

    GLOBAL ACCOUNT MANAGEMENT ADDRESSING THE NEEDS OF OUR CUSTOMERS ENGAGING PROACTIVELY WITH SHIPPING LINE DECISION-MAKERS UNDERSTANDING FIRST-HAND MARKET INTELLIGENCE DEVELOPING STRATEGIC RELATIONSHIPS

  33. Slide 33: Transformation

    TRANSFORMATION INVESTING IN TECHNOLOGY AND NEW OPPORTUNITIES MAXIMISING COST EFFICIENCY

  34. Slide 34: Our Smart Network

    OUR SMART NETWORK

  35. Slide 35: Transforming Our Business with Our Smart Network Strategy

    TRANSFORMING OUR BUSINESS WITH OUR SMART NETWORK STRATEGY 01 02 03 04 STANDARDISATION AUTOMATION DIGITISATION ORGANISATION

  36. Slide 36: Standardisation of Our Systems

    01 STANDARISATION OF OUR SYSTEMS

  37. Slide 37: Streamlining Our Cross-Network Operations

    nGen: PROPRIETARY OPERATING SYSTEM STREAMLINING OUR CROSS-NETWORK OPERATIONS

  38. Slide 38: nGen: Standardisation Roadmap to the Future

    nGen: STANDARDISATION ROADMAP TO THE FUTURE 2003 2005 2006 2008 2009 2010 2012 2013 2016 2018

  39. Slide 39: nGen: Standardisation Roadmap to the Future

    nGen: STANDARDISATON ROADMAP TO THE FUTURE TAKING US FROM 55% OF THROUGHPUT HANDLED BY nGen IN 2019 TO 70% 2019 2020 2021 2022 BY 2022

  40. Slide 40: Benefits of nGen

    BENEFITS OF nGen AT LEAST PROPRIETARY SYSTEM 20 (US$62 MILLION) % TAILOR-MADE TO OUR OPERATIONS NEW FUNCTIONALITIES CAN BE ROLLED OUT 5 YEARS SAVINGS IN EFFICIENTLY TO COSTS VS. USING OUR TERMINALS "OFF-THE-SHELF" SOFTWARE

  41. Slide 41: Automation of Our Operations

    02 AUTOMATION OF OUR OPERATIONS

  42. Slide 42: Setting the Standard for Effective Automation

    SETTING THE STANDARD FOR EFFECTIVE AUTOMATION ECT ROTTERDAM 50 CELEBRATING THE FIRST AUTOMATED 150 50 YEARS OF THE FIRST TERMINAL IN CONTAINER PORT IN THE WORLD TO HANDLE INNOVATION THE WORLD MORE THAN 150M TEU

  43. Slide 43: Our Experience Expedites Our Adoption of Remote Control Operation

    OUR EXPERIENCE EXPEDITES OUR ADOPTION OF REMOTE CONTROL OPERATION

  44. Slide 44: Introducing More Remote-Controlled Quay Cranes

    INTRODUCING MORE REMOTE-CONTROLLED QUAY CRANES 2018 2019 24 QC 48 QC 6 PORTS 9 PORTS

  45. Slide 45: Introducing More Remote-Controlled Gantry Cranes

    INTRODUCING MORE REMOTE-CONTROLLED GANTRY CRANES 2018 2019 39 RTGC 76 RTGC 2 PORTS 5 PORTS

  46. Slide 46: Remote-Controlled vs. Conventional

    REMOTE-CONTROLLED VS. CONVENTIONAL (ONE TYPICAL BERTH) IMPROVED COST SAVINGS EFFICIENCY 4 THIS REPRESENTS QC 15% 17% A SMALL PERCENTAGE OF OUR EXISTING EQUIPMENT PLENTY OF ROOM TO REDUCE COST 12 AS WE ENTER RTGC 15% 60% THE REPLACEMENT CYCLE

  47. Slide 47: Improved Health, Safety and Welfare

    IMPROVED HEALTH, SAFETY AND WELFARE

  48. Slide 48: Committed to Pursue Operational / Cost Efficiency

    WE ARE COMMITTED TO PURSUE OPERATIONAL / COST EFFICIENCY

  49. Slide 49: Capitalising on Learnings: Full Automation

    CAPITALISING ON LEARNINGS FULL AUTOMATION CASE STUDY IN SWEDEN: WE ARE DEPLOYING UNMANNED STRADDLE CARRIERS IN 2022 WE COLLABORATE WITH CRANE MANUFACTURERS WITH SAVINGS OF 20% IN CAPEX STOCKHOLM, SWEDEN

  50. Slide 50: Digitising Our Business

    03 DIGITISING OUR BUSINESS

  51. Slide 51: Digital Connections

    PROSEDUR RANSAKS/ IMPORT SPPB KIOSK Sad

  52. Slide 52: Landside Digitalisation Roadmap

    LANDSIDE DIGITALISATION ROADMAP CLOUD APPLICATION ROC WORKFLOW PRODUCT ENGINE ROLLOUT SOP SOFTWARE GENERALIZATION ROBOT UI + UX BLUEPRINT 2018 2019 2020 2021 2022+

  53. Slide 53: Organisation

    04 ORGANISATION

  54. Slide 54: Our Business Is Supported by a Global Team of Experts

    OUR BUSINESS IS SUPPORTED BY A GLOBAL TEAM OF EXPERTS

  55. Slide 55: Centralisation of Support Services

    CENTRALISATION OF SUPPORT SERVICES REGIONAL OPERATIONS CENTRE: KARACHI AUTOMATION SOLUTIONS DEVELOPMENT

  56. Slide 56: Our Future

    OUR FUTURE

  57. Slide 57: Unlocking Investments for the Future

    UNLOCKING INVESTMENTS FOR THE FUTURE

  58. Slide 58: Staying Ahead in the Industry

    STAYING AHEAD IN THE INDUSTRY DATA FLOWS BLOCKCHAIN CAPABILITIES

  59. Slide 59: Investing in AI Technology

    MORE INNOVATIONS: INVESTING IN AI TECHNOLOGY TO DEPLOY IN OUR OPERATIONS SUCH AS AUTONOMOUS TRUCKING

  60. Slide 60: Activating Self-Driving Mode

    i. : , =ah i Activating Self-Driving,.Mode

  61. Slide 61: We Continue to Lead in Our Industry and Deliver Results

    WE CONTINUE TO LEAD IN OUR INDUSTRY AND DELIVER RESULTS 42

  62. Slide 62: Thank You

    THANK YOU v4 HUTCHISONPORTS

  63. Slide 63: Retail Update

    (GLI Retail update

  64. Slide 64: Connect with Customers

    CONNECT a BOSE Se ees Wine ri A member of CK Hutchison Holdings

  65. Slide 65: Retail Brands, Markets, Stores

    12 RETAIL BRANDS 25 MARKETS 15,000 RETAIL STORES 4,500 CITIES

  66. Slide 66: Speed of Expansion

    SPEED OF EXPANSION FURTHER STRENGTHEN OUR 1,235 NEW STORES IN 2018 CUSTOMER CONNECTIVITY 1NEW STORE EVERY 7HOURS

  67. Slide 67: ASW Customer Connectivity

    ASW CUSTOMER CONNECTIVITY Websites Products 888M Loyalty Members Visits per 250K year 135M Shoppers Digitized 15,000 5.2B Social STORES Customer per year Media Fans Service Specialists Mobile App 64M 140,000 23M Downloads

  68. Slide 68: Connect with Customers

    CONNECT WITH CUSTOMERS Connect Connect Connect Connect With Brands With Members With Data With Technology

  69. Slide 69: Connect with Customers

    CONNECT WITH CUSTOMERS Connect Connect Connect Connect With Brands With Members With Data With Technology

  70. Slide 70: Continue to Deliver Strong Category Growth

    CONTINUE TO DELIVER STRONG CATEGORY GROWTH SKINCARE HEALTH & WELLBEING COSMETICS PERSONAL CARE Source: Company Data . Nielsen Market Data 2018 *TW, HK, TH, MY, SG, PH, ID / ** TW, TH, MY, SG, HK

  71. Slide 71: Exclusives

    EXCLUSIVES 34% EXCLUSIVES SALES 420 Exclusive Brands

  72. Slide 72: L'Oréal x ASW

    L’Oréal’s x ASW A.S. Watson and L’Oréal’s Modiface create #ColourMe, a virtual try-on service exclusive for Watsons Asia mobile apps, providing shoppers virtually try-on experience for 300 makeup products including lipsticks, mascara, eyeshadow, brow colouring and foundation.

  73. Slide 73: Amorepacific x ASW

    Amorepacific x ASW A.S. Watson’s K-Beauty category is experiencing 50% CAGR sales growth since 2015, and +122% in Europe last year. A.S. Watson and Amorepacific signed strategic co-operation agreement in Feb 2019 to bring more K-Beauty brands to our customers in Asia and Europe.

  74. Slide 74: Unilever x ASW

    Unilever x ASW Unilever’s first Korean skincare brand AHC launched exclusively in 7 markets of Watsons - Malaysia, Singapore, Thailand, Philippines & Indonesia; and exclusive SKUs for Watsons China and Taiwan.

  75. Slide 75: Connect with Customers

    CONNECT WITH CUSTOMERS Connect Connect Connect Connect With Brands With Members With Data With Technology

  76. Slide 76: Continue to Build Strong Customer Loyalty

    CONTINUE TO BUILD STRONG CUSTOMER LOYALTY The world’s largest active retail loyalty member base + 135 M LOYALTY MEMBERS 62% Sales Participation

  77. Slide 77: Young Customer Segments Delivered Exceptional Growth

    YOUNG CUSTOMER SEGMENTS DELIVERED EXCEPTIONAL GROWTH Asia (excluding China) United Kingdom Total Member Category Sales Growth +19% +11% +13% +14% +13% +7% Category Sales Growth from ≤ 35 +23% +14% +13% +21% +22% +9% % of 55% 48% 59% 52% 48% Customers 39% aged ≤ 35 Skincare Health Cosmetics Skincare

  78. Slide 78: Special Focus to Build VIP Segment

    SPECIAL FOCUS TO BUILD VIP SEGMENT 4% of Members contributes 25% of Member Sales Spend up to 8x vs average member

  79. Slide 79: Rewards

    ay 4 wards . ; >=

  80. Slide 80: Customer Experience Is the New Advertising Department

    We launched globally the A.S. Watson Customer Love Score to further strengthen the customer engagement. We receive 500,000+ direct feedback from customers every month. Customer experience is the new advertising department …

  81. Slide 81: Connect with Customers

    CONNECT WITH CUSTOMERS Connect Connect Connect Connect With Brands With Members With Data With Technology

  82. Slide 82: Shiseido x ASW

    Shiseido x ASW Co-creation in new category A.S. Watson co-creates with Shiseido to build derm skin exclusive products under the brand d-program (d プログラム) through use of customer insights and survey on purchase intention. Exclusive for Watsons China and Thailand, exclusive SKUs for Taiwan.

  83. Slide 83: Unilever x ASW

    Unilever x ASW in new brand launch Collaborated with Unilever to use ASW customer insights to identify younger customer segment for TRESemmé brand launch exclusively in Watsons China. Also co-created targeted digital promotions that delivered sales 128% compared to the average week for the brand.

  84. Slide 84: Beiersdorf x ASW

    Beiersdorf x ASW in recruiting new customer segment Collaborate with Beiersdorf to identify and recruit younger customer segment for Nivea shower products using A.S. Watson’s customer insights. We also surveyed them to understand purchase drivers including scents and promotion mechanics, results of

  85. Slide 85: Revolution x ASW

    Revolution x ASW to create new product range Use of ASW’s customer insights to identify white spot for Revolution. A new bath and body range was created and social media influencer @SophDoesNails was used to promote the exclusive launch at Superdrug UK. Revolution is also exclusive for 6 other marke

  86. Slide 86: Jeffree Star x ASW

    Jeffree Star x ASW in new market entry Use of A.S. Watson’s customer insights to support exclusive launch of startup brand Jefree Star Cosmetics in ICI PARIS XL Netherlands and Belgium. 31+M Social Media Followers Predictive modelling was used to identify and communicate with members who had a high

  87. Slide 87: Connect with Customers

    CONNECT WITH CUSTOMERS Connect Connect Connect Connect With Brands With Members With Data With Technology

  88. Slide 88: Digital Experience

    DIGITAL EXPERIENCE Skin Analyser

  89. Slide 89: O+O Health Services

    O+O HEALTH SERVICES Customer Journey … • Customer orders online • Doctor reviews order and authorizes prescription • Prescription electronically transmitted to central dispensing • Customer receives order at home or picks up at 795 Superdrug stores Services to be launched … • Video Consultation with

  90. Slide 90: Return the test by post

    Return the test by post

  91. Slide 91: Endless Aisle

    DIGITAL EXPERIENCE ENDLESS AISLE SMALL STORE FORMAT O+O Experience extends assortment offers and further improves customer convenience.

  92. Slide 92: More 13,000+ Stores Offer Click & Collect

    MORE 13,000+ STORES OFFER CLICK & COLLECT CLICK & COLLECT 20-30% BUY MORE Here is your order ready for pick up … do you want to try this new product ? Ready in 30 mins @ Watsons China

  93. Slide 93: A.S. Watson Digital Awards

    A.S. Watson Watsons China Best Flagship Store on JD.com Top Fans Store on JD.com Digital Awards Watsons Taiwan 2018 Yahoo! Supermall – Super Golden Store 2018 Kruidvat Netherlands Best Online Drugstore in the Netherlands ICI PARIS XL Netherlands Best Webshop Award Watsons Hong Kong 2018 Top 10 Quali

  94. Slide 94: Transforming People Strategy

    TRANSFORMING PEOPLE STRATEGY AS PART OF THE DIGITAL TRANSFORMATION 70% 70% Gen Y/Z Store Staff Gen Y/Z Customers

  95. Slide 95: Refreshed Employer Branding to attract young talents

    Refreshed Employer Branding to attract young talents

  96. Slide 96: Reverse Mentoring to Improve Organisational Agility

    I’m I’m mentee mentor Reverse Mentoring to Improve Organisational Agility Digital natives of Generation Y and Z share with senior executives young consumers’ habits and social media trends

  97. Slide 97: With Digital Transformation, Building Customer Connectivity

    WITH DIGITAL TRANSFORMATION… BEFORE DIGITAL TRANSFORMATION… WE BUILT A NETWORK OF STORES WE ARE BUILDING CUSTOMER CONNECTIVITY THROUGH O+O INTEGRATED PLATFORM

  98. Slide 98: IGi| PARIS XL

    IGi| PARIS XL wotsons BE

  99. Slide 99: Q&A

    Q&A

  100. Slide 100: 2018 Annual Results - Appendix

    2018 Annual Results - Appendix

  101. Slide 101: Business & Geographical Diversification

    Business & Geographical Diversification Total Revenue: HK$453,230 million By Division By Geographical Location 2

  102. Slide 102: Business & Geographical Diversification

    Business & Geographical Diversification Total EBITDA: HK$113,580 million By Division By Geographical Location 3

  103. Slide 103: Business & Geographical Diversification

    Business & Geographical Diversification Total EBITDA EBITDA growth: +9% HK$ million Local currencies growth: +7% +7%/+7% +9%/+7% +7%/+5% +35%/+34% +18%/+14% +4%/+4% -100%/-100% +84%/+106% -7%/-5% Note (1): F&I and Others includes listed companies (Hutchison China Meditech, Tom Group, CK Life Science

  104. Slide 104: Business & Geographical Diversification

    Business & Geographical Diversification Total EBIT: HK$72,885 million By Division By Geographical Location 5

  105. Slide 105: Business & Geographical Diversification

    Business & Geographical Diversification Total EBIT EBIT growth: +8% HK$ million Local currencies growth: +6% +6%/+7% +8%/+6% +3%/- +112%/+113% +7%/+3% +24%/+24% -100%/-100% +42%/+77% -24%/-21% Note (1): F&I and Others includes listed companies (Hutchison China Meditech, Tom Group, CK Life Sciences,

  106. Slide 106: Financial Profile

    Financial Profile Liquid Assets by Type Debt Maturity Profile at 31 Dec 2018 – Principal Only (1) (4) Currency Sensitivities as at 31 December 2018 HK$ billion 10% 10% depreciation depreciation GBP against EURO against HKD (3) HKD (3) EBITDA 3.1 2.7 NPAT 1.2 1.0 Cash & Cash Equivalent 0.5 1.3 Gross

  107. Slide 107: Financial Profile

    Financial Profile Operating FCF by division HK$ million EBITDA – Co & Subsid 9,683 12,874 11,234 - 22,787 1,298 1,028 1,164 60,068 EBITDA – Asso. & JVs 3,709 3,290 24,188 12,106 5,974 73 - 3,979 53,319 Dividends from Asso. & JVs 1,946 1,255 10,043 667 - - - 608 14,519 Capex 3,910 3,454 6,060 - 12,33

  108. Slide 108: Ports and Related Services

    Ports and Related Services 2018 (1) 2017 (1) % Change in % Change HK$ million HK$ million local currencies Total Revenue 35,175 34,146 +3% +3% EBITDA 13,392 12,563 +7% +7% EBIT 8,726 8,219 +6% +7% Throughput 84.6 million TEU 84.7 million TEU - N/A Throughput (million TEU) TOTAL REVENUE ( 1 ) (HK$ mi

  109. Slide 109: Retail

    Retail 2018 2017 % Change in % Change HK$ million HK$ million local currencies Total Revenue 168,991 156,163 +8% +6% EBITDA 16,164 14,798 +9% +7% EBIT 13,078 12,089 +8% +6% Store Numbers 14,976 14,124 +6% N/A S tore Num bers Net S tore Ad d itions 2018 2017 % C hang e 2018 H&B China 3,608 3,271 +10%

  110. Slide 110: Retail

    Retail Comparable Stores Total Revenue Total EBITDA Sales Growth (%)(1) % Local Ccy EBITDA EBITDA % Local Ccy HK$ million 2018 2017 2018 2017 2018 2017 Change % Change Margin % Margin % Change % Change (2) Adjusted Adjusted (2) H&B China 23,855 21,783 +10% +7% 4,557 19% 4,257 20% +7% +4% -1.6% -4.3%

  111. Slide 111: Infrastructure

    Infrastructure 2018 2017 % Change in % Change HK$ million HK$ million local currencies Total Revenue 64,724 57,369 +13% +11% CKI 53,274 46,597 +14% +13% Co-owned infrastructure investments with CKI 11,450 10,772 +6% +1% EBITDA 35,422 33,033 +7% +5%  In reported currency, total revenue, EBITDA and E

  112. Slide 112: Energy

    Energy 2018 2017 % Change in % Change HK$ million HK$ million local currencies Total Revenue 54,251 44,948 +21% +20% EBITDA 12,106 8,992 +35% +34% EBIT 5,742 2,703 +112% +113% Average Production 299.2 mboe/day 322.9 mboe/day -7% N/A Husky Energy Net Earnings (C$ million) 1,457 786 +85% Production Up

  113. Slide 113: Telecommunications – 3 Group Europe

    Telecommunications – 3 Group Europe Results by Operations UK Italy (1) Sweden Denmark Austria Ireland 3 Group Europe (1) In million GBP EURO SEK DKK EURO EURO HK$ FY 2018 FY 2017 FY 2018 FY 2017 Wind Tre Wind Tre FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 (50%/10

  114. Slide 114: Telecommunications – 3 Group Europe

    Telecommunications – 3 Group Europe Customer Base – Mobile business Total Registered Customers Total Active Customers (1) as at 31 December 2018 as at 31 December 2018 % Change against Contract % Change against Customer ’000 Customer ’000 at 31 Dec 2018 at 31 Dec 2018 Non- Contract 30 Jun 2018 31 De

  115. Slide 115: Telecommunications – 3 Group Europe

    Telecommunications – 3 Group Europe Key Business Indicators – Mobile Businesses 3 GROUP UK Italy (4 ) Sweden Denmark Austria Ireland EUROPE AVERAGE (5 ) Contract £17.67 €14.54 SEK223.18 DKK139.00 €18.74 €18.75 €18.41 12-month Trailing Non-Contract £5.00 €10.32 SEK117.26 DKK89.31 €10.63 €15.35 €9.79

  116. Slide 116: Telecommunications – HTHKH & HAT

    Telecommunications – HTHKH & HAT HTHKH 2018 2017 % Change HK$ million HK$ million Total Revenue 7,912 9,685 -18% - Mobile operation – service 3,662 3,831 -4% - Mobile operation – hardware 4,250 2,899 +47% - Discontinued Fixed operation ˗ 2,955 EBITDA 1,371 4,337 -68% - Mobile operation 1,371 1,314 +

CK Hutchison Holdings — FY2018 Earnings Presentation on 6ix