Ck Hutchison Holdings Ltd · HKEX:1
Ck Hutchison — H1 2020 Earnings Presentation
39 slides from Ck Hutchison's earnings presentation, Aug 6, 2020
Slide 1: 2020 Interim Results Operations Analysis
2020 Interim Results Operations Analysis
Slide 2: 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
Slide 3: 2020 Results Highlights
2020 Results Highlights
Slide 4: Financial Highlights
Financial Highlights Net Revenue (1) EBIT (1) EPS (2) Debt Ratio Net $189.9bn EBITDA (1) $26.7bn (Post-IFRS 16) DPS 25.1% - 12% - 22% Earnings (1)(2) $3.37 1.1%-pt - 29% (-9% in local (-19% in local Y-o-Y currencies) $47.0bn currencies) $13.2bn $0.614 - 13% - 28% - 29% (-10% in local (-25% in local
Slide 5: EBITDA
EBITDA EBITDA EBITDA Change by Division HK$ m $47.0bn ( 688 ) 53,988 8,797 129 -13% ( 2,766 ) ( 930 ) 178 ( 633 ) ( 1,028 ) ( 754 ) (-10% in local currencies) ( 4,418 ) 48,773 ( 1,827 ) 46,946 ( 3,102 ) 1H 2019 Ports & Retail - Retail - Infrastructure Husky Net gains CKHGT Wind Tre - HAT F&I 1H 2020
Slide 6: Operating FCF
Operating FCF Operating FCF Operating FCF by Core Business $19.1bn (1H 2019: $27.9bn) 37% -1% HK$ m 21% 3% 18% 22% 33,203 24,959 4,859 5,006 Port & Related Services Retail (9,615) (10,074) EBITDA of Subsidiaries Dividends from Asso & JVs Infrastructure Energy Telecommunications Finance and Investmen
Slide 7: Financial Profile - Operating FCF by division
Financial Profile - Operating FCF by division EBITDA – Co & Subsidiaries 4,025 3,472 1,686 - 14,900 872 4 24,959 EBITDA – Share of Asso. & JVs 1,514 1,154 12,082 351 21 - 1,170 16,292 Dividends from Asso. & JVs 626 873 2,852 574 - - 81 5,006 Capex 726 628 113 - 6,762 1,787 58 10,074 Investments in A
Slide 8: Financial Profile - Free Cash Flow
Financial Profile - Free Cash Flow Free Cash Flow Free Cash Flow Year-on-Year Change 1H 2020 Operating (1) Free Cash Flow 19,134 $8.9bn Interests and taxes paid ( 5,748 ) +51% HK$ m Working Capital 8,435 869 changes and ( 4,280 ) Others ( 459 ) ( 253 ) ( 612 ) 8,904 Telecom licences 5,907 ( 202 ) 3,
Slide 9: Financial Profile - Debt Maturity Profile and Net Debt
Financial Profile Debt Maturity Profile Net Debt Jun 2020 Dec 2019 Jun 2019 Net debt (1) $205.9bn $202.9bn $212.5bn Net debt to net total capital ratio (1) 25.1% 24.8% 26.2% Credit Ratings 30 Jun 2020 31 Dec 2019 Moody’s A2 (Stable) A2 (Stable) S&P A (Stable) A (Stable) Sufficient to cover 27% of de
Slide 10: Ports & Related Services
Ports & Related Services TEUs EBITDA Growth HK$ m -11% in local currencies 10.3 (-9%) 15.1 (-6%) 38.7m 6,450 ( 43 ) ( 42 ) • Assets: 6.1 -8% ( 276 ) ( 224 ) ( 103 ) (-6%) 5,762 US$11.9bn 7.2 ( 223 ) 5,539 (-12%) 1H 2019 HPH Trust Mainland Europe Asia, Australia Corporate 1H 2020 Foreign 1H 2020 EBIT
Slide 11: Retail
Retail Store number EBITDA Growth 473 • Assets: 2,388 3,951 HK$ m US$27.4bn 15,836 H&B: -44% in local currencies 8,182 • World’s largest +4% ( 1,444 ) 5,649 3,375 international ( 574 ) ( 930 ) 401 ( 219 ) ( 633 ) H&B retailer 4,783 ( 157 ) 4,626 • Operating in EBITDA (1) 25 markets with 1H 2019 H&B
Slide 12: Retail - A Journey to Recovery: H&B China, H&B Asia
Retail - A Journey to Recovery H&B China H&B Asia H&B Operating FCF byChina Core Business -30% (-26% in local currency) -18% (-17% in local currencies) • Store traffic reduction improved from the peak of -87% in February to –26% in June -78% -16% -40% -20% Feb Jun Apr Jun • Sales reduction peaked at
Slide 13: Retail - A Journey to Recovery: H&B Western and Eastern Europe
Retail - A Journey to Recovery H&B Western Europe H&B Eastern Europe Operating H&BFCF by Core Western Business Europe -9% (-5% in local currencies) -9% (-2% in local currencies) • Benelux leading the recovery with sales growth of +5% in local currency in June • Germany has proved resilient in 1H 202
Slide 14: Infrastructure
Infrastructure CKI’s reported NPAT (1) Stable Earnings & Dividend Growth HK$ m • Assets: 5,943 (2) $2,860m US$29.7bn 2,860 (2) -52% 1H 2019 1H 2020 Largest * • CKI’s S&P Credit 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1H 2020 Earnings Per Sh
Slide 15: Energy
Energy Net Loss (1) Production Preserving Value, Positioned For the Future • Assets: C$(2,009)m 272.7 mboe/day Business resilience US$7.1bn C$ m -388% -1% • Strong balance sheet and ample liquidity • 2020 capital cut ~50% to C$1.7bn 698 • Approx. C$150mn cost efficiencies identified to date • Listed
Slide 16: Telecommunications - 3 Group Europe
Telecommunications - 3 Group Europe Total Revenue EBITDA $40,524m HK$ m -7% -7% in local currencies (-3% in local currencies) $14,449m 428 KPI -11% 16,297 Active mobile customers (-7% in local ( 837 ) 77 currencies) 52 16 80 38.7m -7% ( 1,028 ) 15,085 12-month trailing Net AMPU ( 636 ) 14,449 €11.24
Slide 17: Telecommunications - CKHGT
Telecommunications - CKHGT UK Italy Sweden Denmark Austria Ireland 3 Group Europe In million GBP EURO SEK DKK EURO EURO HK$ 1H 2020 1H 2019 1H 2020 1H 2019 1H 2020 1H 2019 1H 2020 1H 2019 1H 2020 1H 2019 1H 2020 1H 2019 1H 2020 1H 2019 Total Revenue 1,116 1,167 2,324 2,398 3,249 3,238 1,127 1,054 41
Slide 18: Telecommunications - CKH Networks
Telecommunications - CKH Networks Project Timeline Key Highlights July 2020 Towers Completion of Reorganisation and 29,100 CKHN operational Tenancy Ratio 1.2x Geographical Presence June 2020 March 2021 Senior management Pro forma FY2020 teams appointed – CEO results overseeing local teams Pro Forma
Slide 19: Telecommunications - HAT
Telecommunications - HAT Total Revenue EBITDA $4,521m + 5% HK$ m (+8% in local currencies) $872m (1) +25% in local currencies +20% 23 35 KPI (+25% in local 197 902 ( 30 ) 872 currencies) 724 ( 77 ) Active mobile customer account 48.8m +7% Data Usage 1H 2019 Indonesia Vietnam Sri Lanka Corporate 1H 2
Slide 20: Towards Better Growth and a Sustainable Future
(ld fo TOWARDS BETTER GROWTH AND A SUSTAINABLE \ FUTURE
Slide 21: Towards Better Growth and a Sustainable Future
Towards Better GROWTH and a Sustainable FUTURE Inaugural sustainability report Improving CDP reporting kicking off with CKHGT Disclosure Next Actions: Seeking stakeholder feedback for continuous improvement to disclosure Board-level Sustainability Committee established Strengthening Sustai
Slide 22: Material Sustainability Issues by Division
Material Sustainability Issues by Division Anti-Corruption Product Responsibility Data Privacy Supply Chain Management Labour Management Occupational Health and Safety Community Engagement Greenhouse Gas (GHG) Emissions Waste Management Opportunities in Clean Technology Land Use and Reclamation Envi
Slide 23: Q&A
{—> O&A
Slide 24: 2020 Interim Results Appendix
2020 Interim Results Appendix
Slide 25: Analyses of Core Business Segments by Geographical Location
Analyses of Core Business Segments by Geographical Location Total Revenue for the six months ended 30 June 2020 HK$189,942 million Europe HK$97,294 million 5% 38% 15% 42% Canada (3) 8% Mainland China HK$14,932 million 7% (1) 8% Asia, Australia 10% 74% 6% 9% 1% & Others (2) 16% Hong Kong HK$18,710 mi
Slide 26: Operations Highlights - Ports and Related Services
CK Hutchison Holdings Limited 2015 Interim Report 2020 Operations Highlights Ports and Related Services 30 June 2020 30 June 2019 Local currencies HK$ million HK$ million Change change Total Revenue (1) 16,031 17,550 -9% -4% EBITDA (1) (4) 5,539 6,450 -14% -11% EBIT (1) (4) 3,454 4,250 -19% -15% Thr
Slide 27: Ports and Related Services commentary
CK Hutchison Holdings Limited 2015 Interim Report 2020 Throughput decreased by 8% to 38.7 million TEU in the first half of 2020, with 63% and 37% local and transhipment volume respectively (1H 2019: 65% and 35% local and transhipment volume respectively). Throughput decline across majority of the po
Slide 28: Retail
CK Hutchison Holdings Limited 2020 2015 Interim Report Retail 30 June 2020 30 June 2019 Local currencies HK$ million HK$ million Change change Total Revenue 73,627 83,161 -11% -9% EBITDA (1) 4,626 8,182 -43% -42% EBIT (1) 2,970 6,590 -55% -53% Store Numbers 15,836 15,213 +4% Net Store Comparable Sto
Slide 29: Retail results by region
CK Hutchison Holdings Limited 2020 2015 Interim Report Total Revenue Total EBITDA (1) Local Local 30 June 30 June currencies 30 June EBITDA 30 June EBITDA currencies HK$ million 2020 % 2019 % Change change 2020 % Margin 2019 % Margin Change change H&B China 8,805 12% 12,512 15% -30% -26% 927 20% 11%
Slide 30: Infrastructure
CK Hutchison Holdings Limited 2015 Interim Report 2020 Infrastructure 30 June 2020 30 June 2019 Local currencies HK$ million HK$ million Change change Total Revenue (1) 25,181 25,625 -2% +3% – CKI 24,714 24,945 -1% +4% – Co-owned infrastructure assets 467 680 -31% -28% EBITDA (1) (2) 13,768 14,356 -
Slide 31: Husky Energy
CK Hutchison Holdings Limited 2020 2015 Interim Report Husky Energy 30 June 2020 30 June 2019 Local currencies HK$ million HK$ million Change change Total Revenue 14,884 23,465 -37% -35% (LBITDA) / EBITDA (1) (2,751) 4,713 -158% -160% - Underlying 351 4,713 -93% -94% - One-off impairment charge (2)
Slide 32: Latest Capital Guidance and Financial Strategic Plan
CK Hutchison Holdings Limited 2020 2015 Interim Report Husky reported a 1% decrease of average production in the first half of 2020, from 276,800 barrels of oil equivalent per day (“boe/day”) in first half of 2019 to 272,700 boe/day in first half of 2020, primarily due to: - Lower production from In
Slide 33: CKH Group Telecom
CK Hutchison Holdings Limited 2015 Interim Report 2020 CKH Group Telecom 30 June 2020 30 June 2019 Local currencies 30 June 2020 30 June 2019 In million HK$ HK$ Change change EURO EURO Total Revenue 42,702 46,199 -8% -4% 5,021 5,209 Total Margin 30,494 31,672 -4% — 3,586 3,570 Total CACs (7,326) (8,
Slide 34: CKH Group Telecom - Results by operations
CK Hutchison Holdings Limited CK Hutchison Holdings Limited 2015 Interim Report 2020 2020 2015 Interim Report CKH Group Telecom - Results by operations UK Italy (5) Sweden Denmark Austria Ireland 3 Group Europe HTHKH Corporate and Others CKHGT CKHGT In million GBP EURO SEK DKK EURO EURO HK$ HK$ HK$
Slide 35: CKH Group Telecom - Key Business Indicators
CK Hutchison Holdings Limited 2015 Interim Report 2020 CKH Group Telecom (continued) Key Business Indicators Registered Customer Base Registered Customers at Registered Customer Growth (%) from Registered Customer Growth (%) from 30 June 2020 (’000) 31 December 2019 to 30 June 2020 30 June 2019 to 3
Slide 36: ARPU and Net ARPU
CK Hutchison Holdings Limited 2015 Interim Report 2020 12-month Trailing Average Revenue per Active User (“ARPU”) (12) to 30 June 2020 % Variance Blended compared to Non-contract Contract Total 30 June 2019 United Kingdom £4.53 £23.21 £17.77 -3% Italy €10.57 €11.53 €11.00 +1% Sweden SEK117.46 SEK335
Slide 37: CKH Group Telecom (continued)
CK Hutchison Holdings Limited 2015 Interim Report 2020 CKH Group Telecom (continued) United Kingdom EBITDA and EBIT decreased by 25% and 50% in local currency respectively compared to the same period last year, mainly due to lower margin driven by regulatory changes in the UK and within EU since 201
Slide 38: Hutchison Asia Telecommunications
CK Hutchison Holdings Limited 2015 Interim Report 2020 Hutchison Asia Telecommunications 30 June 2020 30 June 2019 Local currencies HK$ million HK$ million Change change Total Revenue 4,521 4,325 +5% +8% - Indonesia 3,952 3,734 +6% +10% - Vietnam 363 329 +10% +12% - Sri Lanka 206 262 -21% -17% EBITD
Slide 39: Finance & Investments and Others
CK Hutchison Holdings Limited 2015 Interim Report 2020 Finance & Investments and Others 30 June 2020 30 June 2019 (1) Local currencies HK$ million HK$ million Change change Total Revenue 12,996 16,737 -22% -18% EBITDA (2) 9,971 2,054 +385% +392% - Underlying 1,174 2,054 -43% -37% - Non-recurring ite
CK Hutchison Holdings — H1 2020 Earnings Presentation on 6ix