Slide 1: FY22 Annual Results Presentation
FY22 Annual Results Presentation for 12 months ended 31 August 2022 William Yeung Co-Owner & Executive Vice-chairman William Ho Co-Owner-to-be & Chief Executive Officer - Enterprise Solutions Almira Chan Co-Owner, Chief Strategy Officer and Acting Chief Financial Officer 27 October 2022
Slide 2: Disclaimer
Disclaimer These materials have been prepared by HKBN Ltd. (the “Company”) solely for use at this presentation and have not been independently verified. No representations or warranties, express or implied, are made as to, and no reliance should be placed on, the fairness, accuracy, completeness or
Slide 3: William Yeung
William Yeung Co-Owner and Executive Vice-chairman 3
Slide 4: Grow Core Business
Grow Core Business • Enterprise - Fixed Telecom Network Services with System Integrator edge • Residential - Infinite-play with 5G 4
Slide 5: Stable Organic Growth
Stable Organic Growth Revenue EBITDA AFF $11,626m $2,609m $1,133m YoY +1% YoY +2% YoY +0% (Organic growth +6%*) FY DPS: 60 HK Cents with Payout Ratio 78%# Financials in HK$mn, unless otherwise stated # The dividend policy of the Company is to pay dividends in an amount of not less than 75% of the Ad
Slide 6: Sustainable Organic Growth
Sustainable Organic Growth Revenue EBITDA AFF YoY +1% (Organic growth +6%*) YoY +2% YoY +0% 11,464 11,626 9,454 2,569 2,609 2,505 1,133 1,114 1,132 FY20 FY21 FY22 FY20 FY21 FY22 FY20 FY21 FY22 Financials in HK$mn, unless otherwise stated * Total revenue growth at 6% excluded the impact of the Dispos
Slide 7: Business Resilience amid Challenging Market
Business Resilience amid Challenging Market 8.0k 105k* $2,864* Enterprise Commercial Enterprise Enterprise Solutions Buildings Customers ARPU YoY +6% YoY -1% YoY +1% 2.5m 897k $184 Residential Homes Broadband Residential Solutions Passed Subscriptions ARPU YoY +2% YoY +11k YoY -3% * Enterprise custo
Slide 8: Solid Revenue Growth
Solid Revenue Growth Financials in HK$mn, unless otherwise stated YoY +1% (Organic growth +6%*) Product 11,424 11,626 • Product increase driven by significant growth in Enterprise Solutions related product revenue 4,033 4,765 and end-user devices sales 2,465 Residential Service 2,433 • Residential s
Slide 9: Fitter and Leaner for Growth
Fitter and Leaner for Growth Financials in HK$mn, unless otherwise stated Operating Expenses* Capital Expenditure 1,984 1,899 590 539 FY21 FY22 FY21 FY22 Opex to Capex to Revenue Ratio: 17.3% 16.3% Revenue Ratio: 5.1% 4.6% * Operating Expenses excluded Depreciation, Amortisation of intangible assets
Slide 10: Manageable Debt Profile
Manageable Debt Profile Undrawn Revolving Net Leverage Ratio# Avg. Finance Cost Facilities 4.6x 2.7% $1.7bn (FY21: 4.6x) (FY21: 2.6%) (FY21: $1.4bn) • Average remaining life decreased from 4.3 years as of Aug 21 to 3.3 years as of Aug 22 # The Group has entered into facility agreements with various
Slide 11: Our ESG Highlights
Our ESG Highlights Board-level ESG Committee Industry-First Achievements 1 No. 1 in Telco industry Pioneer in HK for Since 2020 2021 and 2022 SASB Telco standards 1 Disclaimer:https://reg.hkbn.net/WwwCMS/upload/pdf/en/2021_mscidisclaimer.pdf 11
Slide 12: Growth since IPO
Growth since IPO Revenue CAGR 26% 11,464 11,626 9,453 3,949 5,108 2,341 2,784 3,232 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 EBITDA CAGR 15% 2,505 2,569 2,609 1,709 979 1,006 1,041 1,180 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Financials in HK$mn, unless otherwise stated # The Company acquired New Wo
Slide 13: William Ho
William Ho Co-Owner-to-be & Chief Executive Officer - Enterprise Solutions 13
Slide 14: FTNS and SI business solid performance
FTNS and SI business solid performance Mainland China and ASEAN momentum JOS Synergies New ES leadership team
Slide 15: Enterprise Solutions Focus
Enterprise Solutions Focus 01 02 03 04 SME Service Beyond Enterprise Mid-Market Provider Hong Kong SI FTNS + SI Mainland China, Retail IDC Partner Alliances especially GBA 5G Solutions Cloud Box Moving+ ASEAN Managed Services Hyperscalers International Carriers
Slide 16: Technology Focus
Technology Focus Protecting valuable Enterprise Enabling core virtual assets Applications business processes Enterprise Security Next Generation Harnessing value from knowledge Infrastructure Cloud Big Data Computing Empowering workplace innovation 16
Slide 17: William Yeung
William Yeung Co-Owner and Executive Vice-chairman 17
Slide 18: Residential Key Figures Highlight
Residential Key Figures Highlight Stable Growth in Broadband Subscriptions Continuous Upgrade to Higher Bandwidth (> 1000M) 886K 897K 50K 30K FY21 FY22 FY21 FY22 Rapid Growth in Entertainment Subscriptions 111K 51K ARPU uplift FY21 FY22 18
Slide 19: Growing Demand of Bandwidth Consumption
Growing Demand for Over 1Gbps Broadband Connectivity +25% Growing Demand of Bandwidth Consumption OTT Streaming 2021 2022 Gamer Study from Home Work from Home Family with Multi-device 19
Slide 20: Looking Forward
Looking Forward 留錢鬥後 Focus on Core Business Strengthen Balance Sheet Preserve Flexibility and Agility 20
Slide 21: Dividend Recommendation
Dividend Recommendation FY DPS: 60 HK Cents • Invest in Growth • Strengthen Balance Sheet • Increase Flexibility # The dividend policy of the Company is to pay dividends in an amount of not less than 75% of the Adjusted Free Cash Flow, take into account the Group’s financial performance, investment
Slide 22: FY22 Annual Results Presentation
FY22 Annual Results Presentation for 12 months ended 31 August 2022 William Yeung Co-Owner & Executive Vice-chairman William Ho Co-Owner-to-be & Chief Executive Officer - Enterprise Solutions Almira Chan Co-Owner, Chief Strategy Officer and Acting Chief Financial Officer 27 October 2022
Slide 23: Appendix
Appendix 23
Slide 24: Operational Highlights – Enterprise Solutions
Operational Highlights – Enterprise Solutions YoY FY21 FY22 Changes Commercial building coverage 7,584 8,006 6% Subscriptions ('000) • Broadband 119 119 0% • Voice 423 413 -2% Market share • Broadband 36.9% 37.0% +0.1pp • Voice 24.9% 24.4% -0.5pp Enterprise customers ('000) 107 105 -2% Broadband chu
Slide 25: Operational Highlights – Residential Solutions
Operational Highlights – Residential Solutions YoY FY21 FY22 Changes Residential homes passed ('000) 2,466 2,513 +2% Subscriptions ('000) • Broadband 886 897 +1% • Voice 474 432 -9% Market share • Broadband 34.2% 34.0% -0.2pp • Voice 22.1% 21.3% -0.8pp Residential customers ('000) 997 976 -2% Broadb
Slide 26: Consolidated Income Statement
Consolidated Income Statement (HK$ million, unless otherwise stated) FY21 FY22 YoY Changes Enterprise Solutions 4,966 4,428 -11% Enterprise Solutions related Product 2,310 2,351 2% Residential Solutions 2,465 2,433 -1% Other product 1,723 2,414 40% Turnover 11,464 11,626 1% Other net income 23 62 >1
Slide 27: Consolidated Balance Sheet (Summary)
Consolidated Balance Sheet (Summary) At 28 February (HK$ million, unless otherwise stated) At 31 August 2021 At 31 August 2022 2022 Non-current assets 18,152 17,687 17,384 Current assets 3,616 3,321 3,043 Current liabilities 3,864 3,517 3,131 Total assets less current liabilities 17,904 17,490 17,29
Slide 28: Reconciliation of EBITDA and Adjusted Free Cash Flow
Reconciliation of EBITDA and Adjusted Free Cash Flow (HK$ million, unless otherwise stated) FY21 FY22 YoY Changes Profit for the year 207 553 >100% Finance costs 481 239 -50% Interest income -2 -3 30% Income tax charge 118 159 34% Depreciation# 1,012 947 -6% Amortisation of intangible assets# 457 41