Ck Hutchison Holdings Ltd · HKEX:1
Ck Hutchison — H1 2016 Earnings Presentation
32 slides from Ck Hutchison's earnings presentation, Aug 11, 2016
Slide 1: 2016 Interim Results Operations Analysis
[i Feil All nc TSE A PR A | CK HUTCHISON HOLDINGS LIMITED ‘Stock code: 1 2016 Interim Results Operations Analysis - (Incorporated in the Cayman Islands with limited liability)
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 2016, and of
Slide 3: Performance in 1H 2016
Performance in 1H 2016 Change vs Change in 1H 2015 local 1H 2016 Pro forma (1) currency Total Revenue (2) HK$180.5 billion -8% -5% Reported EBITDA (2) HK$44.3 billion -4% Flat Reported EBIT (2) HK$29.5 billion -4% Flat Recurring Earnings (3) HK$15.2 billion +2% +6% Reported Earnings (4) HK$14.9 bill
Slide 4: Business & Geographical Diversification
Business & Geographical Diversification 1H 2016 Total Revenue: HK$ 180,511 million Decrease 8% in reported currency (Decrease 5% in local currencies) By Geographical Location By Division 4
Slide 5: Business & Geographical Diversification
Business & Geographical Diversification 1H 2016 Reported EBITDA: HK$ 44,256 million Decrease 4% in reported currency (Flat in local currencies) By Geographical Location By Division 5
Slide 6: Business & Geographical Diversification
Business & Geographical Diversification Reported EBITDA EBITDA change: -4% HK$ millions Local currency growth: Flat -1% +2% +9% -29% +12% -13% +216% +4% +204% 646 +9% 46,201 837 ( 360 ) 714 46,165 (121 ) -6% -2% ( 199 ) ( 1,810 ) ( 1,616 ) -13% -33% 44,256 1H 2015 Ports & Retail Infrastructure Husky
Slide 7: Business & Geographical Diversification
Business & Geographical Diversification 1H 2016 Reported EBIT: HK$ 29,469 million Decrease 4% in reported currency (Flat in local currencies) By Geographical Location By Division 7
Slide 8: Business & Geographical Diversification
Business & Geographical Diversification Reported EBIT EBIT change: -4% HK$ millions Local currency growth: Flat -4% +2% +8% -42% +13% -30% +203% +191% +3% +10% 786 304 486 30,800 30,677 ( 389 ) ( 115 ) ( 412 ) ( 232 ) -9% -30% ( 1,636 ) -2% -40% 29,469 1H 2015 Ports & Retail Infrastructure Husky 3 G
Slide 9: European Contribution
European Contribution EBITDA and EBIT Total EBITDA(1): HK$44.3 billion UK Europe (ex-UK) Total EBIT(1): HK$29.5 billion UK Europe (ex-UK) Note (1): EBITDA and EBIT excludes (i) non-controlling interests’ share of results of HPH Trust and (ii) profits on disposal of investments & others. Note (2): Al
Slide 10: European Contribution
European Contribution UK Focus Ports • Over 90% of containerised cargo is gateway traffic Total EBITDA(1): HK$44.3 billion • Approximately 90% of containerised cargo relates to non-European trade • Currently 15 out of 17 Asia-North Europe loops call at UK port and this trend is expected to continue
Slide 11: European Contribution
European Contribution UK Focus Cash & Cash Equivalent: HK$162.7 billion Gross Debt: HK$332.1 billion Net Debt: HK$169.4 billion GBP 6% Others HK$10.3bn Others Others HKD 5% HKD 3% 9% -8% 6% RMB RMB 1% GBP 21% -5% GBP 35% EURO 19% HK$70.5bn HK$60.1bn HKD HK$30.3bn 19% USD 34% RMB USD 6% 37% EURO 30%
Slide 12: Ports and Related Services
Ports and Related Services 1H 2016(1) 1H 2015(1) Change % Change % HK$ millions HK$ millions in local currency Total Revenue 16,142 17,308 -7% -2% EBITDA 5,744 6,104 -6% -1% EBIT 3,722 4,111 -9% -4% Throughput 40.0 million TEU 41.5 million TEU -4% NA Total Revenue EBITDA Throughput declined by 4%
Slide 13: Ports and Related Services
Ports and Related Services EBITDA(1) Change HK$ millions EBITDA change: -6% Local currency change: -1% 93 6 56 (43) 6,104 (181) (291) 5,744 (2) 1H 2015 HPH Trust Europe Mainland China Asia, Australia Corporate costs Foreign currency 1H 2016 and other and others (3) & other port translation impact Ho
Slide 14: Ports and Related Services
Ports and Related Services European Operations EBITDA EBIT Throughput UK UK UK Europe (ex-UK) Europe (ex-UK) Europe (ex-UK) 14
Slide 15: Retail
Retail 1H 2016 1H 2015 Change % Change % HK$ millions HK$ millions in local currency Total Revenue 73,413 74,926 -2% +1% EBITDA 6,562 6,683 -2% +2% EBIT 5,338 5,453 -2% +2% Store Numbers 12,657 11,780 +7% NA Total Revenue 1H 2016 1H2015 Change % in Change % Total Revenue HK$ millions HK$ millions lo
Slide 16: Retail
Retail EBITDA 1H 2016 1H 2015 (-2% in reported currency) 1H 2016 1H 2015 Change % in EBITDA EBITDA EBITDA Change % By Subdivision HK$ millions HK$ millions local currency Margin % Margin % 6% H&B China 2,349 22% 2,382 21% -1% +4% 13% H&B Asia(1) 909 8% 940 8% -3% +4% 36% H&B China & Asia Subtotal 3,
Slide 17: Retail
Retail EBITDA Change HK$ millions EBITDA change: -2% Local currency growth: +2% 88 154 34 (220) 87 6,683 (264 ) 6,562 1H 2015 Health & Beauty Health & Beauty Health & Beauty Health & Beauty Other Retail (2) Foreign currency 1H 2016 China Asia (1) Western Europe Eastern Europe (1) translation impact
Slide 18: Retail
Retail European Operations EBITDA EBIT Store Numbers, Total Sales Growth % & Comparable Store Sales Growth % UK UK UK Europe (ex-UK) Europe (ex-UK) Europe (ex-UK) 18
Slide 19: Infrastructure
Infrastructure 1H 2016 1H 2015(1) Change % Change % HK$ millions HK$ millions in local currency Total Revenue 27,221 27,690 -2% +3% EBITDA 16,691 16,045 +4% +9% EBIT 12,291 11,987 +3% +8% Note (1): 1H 2015 pro forma results assumed that the Reorganisation was effective on 1 January 2015. Earnings pe
Slide 20: Infrastructure
Infrastructure European Operations EBITDA EBIT Major Investments UK • UK Power Network Holdings (Regulated) • Northumbrian Water Group (Regulated) • Northern Gas Networks (Regulated) • Wales & West Utilities (Regulated) • UK Rails UK UK Europe (ex-UK) • Dutch Enviro Energy • Portugal Renewable Energ
Slide 21: Energy
Energy 1H 2016 1H 2015(1) Change % Change % HK$ millions HK$ millions in local currency Total Revenue 13,392 21,101 -37% -32% EBITDA 3,686 5,496 -33% -29% EBIT 612 1,024 -40% -42% Average Production 328.6 mboe/day 346.4 mboe/day -5% NA Note (1): 1H 2015 pro forma results assumed that the Reorganisat
Slide 22: Energy
Energy Average production decreased 5% to 328.6 mboe/day in 1H 2016, mainly due to Average Production lower natural gas and natural gas liquids sales from the Liwan Gas Project, partly mboe/day offset by the continued strong performance from the thermal projects and the 400.0 359.6 ongoing ramp up
Slide 23: Telecommunications - 3 Group Europe
Telecommunications - 3 Group Europe 1H 2016 1H 2015(1) Change % in HK$ millions HK$ millions Change % local currency Total Revenue 30,165 30,573 -1% +1% EBITDA 8,492 7,778 +9% +12% EBIT 5,410 4,924 +10% +13% Note (1): 1H 2015 pro forma results assumed that the Reorganisation was effective on 1 Janua
Slide 24: Telecommunications - 3 Group Europe
Telecommunications - 3 Group Europe EBITDA Growth HK$ millions EBITDA growth: +9% Local currency growth: +12% 141 39 40 315 (12 ) ( 243 ) 8,492 434 7,778 (1) 1H 2015 3 UK 3 Italy 3 Sweden 3 Denmark 3 Austria 3 Ireland Foreign currency 1H 2016 translation impact Note (1): 1H 2015 pro forma results as
Slide 25: Telecommunications - 3 Group Europe
Telecommunications - 3 Group Europe Results(1) by operations UK Italy Sweden Denmark Austria Ireland 3 Group Europe In millions GBP EURO SEK DKK EURO EURO HK$ 1H 2016 1H 2015 1H 2016 1H 2015 1H 2016 1H 2015 1H 2016 1H 2015 1H 2016 1H 2015 1H 2016 1H 2015 1H 2016 1H 2015 Total Revenue 1,052 1,071 906
Slide 26: Telecommunications - 3 Group Europe
Telecommunications - 3 Group Europe Key Business Indicators Key business indicators for the 3 Group Europe’s businesses are as follows: 3 Group UK Italy Sweden Denmark Austria Ireland Europe Customer Base - Registered Customers at 30 June 2016 ('000) Postpaid 6,171 5,881 1,806 783 2,466 1,173 18,280
Slide 27: Telecommunications - 3 Group Europe
Telecommunications - 3 Group Europe Key Business Indicators Key business indicators for the 3 Group Europe’s businesses are as follows: 3 Group UK Italy Sweden Denmark Austria Ireland Europe Average (1) 12-month Trailing Average Revenue per Active User ("ARPU") to 30 June 2016 Postpaid ARPU (1) £26.
Slide 28: Telecommunications - 3 Group Europe
Telecommunications - 3 Group Europe Key Business Indicators Key business indicators for the 3 Group Europe’s businesses are as follows: 1H 2016 3 Group UK It aly Sw eden Denmark A us t ria Ireland Europe A verage Contract customers as a % of the total registered customer base 57% 56% 87% 64% 65% 41%
Slide 29: Telecommunications - HTHKH & HAT
Telecommunications - HTHKH & HAT HTHKH 1H 2016 1H 2015(1) Change % HK$ millions HK$ millions Total Revenue 5,369 11,058 -51% EBITDA 1,316 1,515 -13% EBIT 553 785 -30% HTHKH announced profit attributable to shareholders of HK$376 million and earnings per share of 7.80 HK cents, a decrease of 26% co
Slide 30: Telecommunications - HTAL, share of VHA
Telecommunications - HTAL, share of VHA HTAL’s announced interim results 1H 2016 1H 2015 Change % A$ millions A$ millions Announced Total Revenue 802 887 -10% Announced Loss Attributable to Shareholders (66) (90) +27% HTAL owns 50% of VHA and announced total revenue of A$802 million, a 10% decreas
Slide 31: Financial profile
Financial profile Healthy maturity and liquidity profile Liquid Assets by Type at 30 June 2016 Debt (1) Maturity Profile at 30 June 2016 - principal only HK$ millions 4% 1% 180,000 162,750 Total Debt(1) (Principal only): 160,000 HK$317,611 million 140,000 120,000 100,000 92,928 80,000 76,879 60,000
Slide 32: Financial profile
Financial profile 1H 2016 EBITDA, Dividends and distributions from Associated Companies & JVs less Capex of Company & Subsidiaries and Investments in Associated Companies & JVs by division HK$ millions Note (1): EBITDA excludes (i) non-controlling interests’ share of results of HPH Trust and (ii) pr
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