Ck Hutchison Holdings Ltd · HKEX:1
Ck Hutchison — H1 2015 Earnings Presentation
35 slides from Ck Hutchison's earnings presentation, Aug 25, 2015
Slide 1: 2015 Interim Results: Operations Analysis
2015 Interim Results Operations Analysis
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, and of certain pro forma financial information of th
Slide 3: CKHH Management Pro Forma Results in 1H 2015
CKHH Management Pro Forma Results in 1H 2015 (Compared to HWL’s results for businesses continued by CKHH) CKHH 1H 2015 Change vs Pro forma(1) HWL 1H 2014 (1) Total Revenue HK$197.0 billion - - Comparable Revenue HK$186.7 billion -5% Change in local currency: +5% - Additional Contributions HK$10.3 bi
Slide 4: Overview of CKHH
Overview of CKHH Contribution of Total Recurring Earnings HK$14.9 billion Additional Contributions: HK$13.5 billon Ports & Related Services +HK$18 million HK$1.4 billion Additional Contributions Infrastructure +HK$1,347 million HK$3.3 billion Property & Hotels Ports & Energy +HK$111 million Related
Slide 5: Business & Geographical Diversification: Total Revenue
Business & Geographical Diversification Total Revenue 1H 2015 Pro forma Total Revenue Contribution: HK$197,019 million By Geographical Location By Division 6% 9% 22% 38% 11% 14% Ports & Related Services Retail Infrastructure Energy Telecommunications Finance & Investments and others 5
Slide 6: Business & Geographical Diversification: Total EBITDA
Business & Geographical Diversification Total EBITDA 1H 2015 Pro forma Total EBITDA: HK$46,165 million By Geographical Location By Division 5% 13% 21% 14% 12% 35% Ports & Related Services Retail Infrastructure Energy Telecommunications Finance & Investments and others 6
Slide 7: Business & Geographical Diversification: Total EBITDA
Business & Geographical Diversification Total EBITDA 1H 2015 Pro forma Total EBITDA 5,041 46,165 (HK$ millions) Comparable EBITDA change: -3% Local currency growth: +6% 547 441 72 42,587 276 1,274 (91) 41,124 (481) (3,501) HWL Ports & Retail Infrastructure Energy 3 Group HTHKH HAT F&I CKHH Additiona
Slide 8: Business & Geographical Diversification: EBITDA – Additional Contributions
Business & Geographical Diversification EBITDA – Additional Contributions 1H 2015 Additional EBITDA Contributions (HK$ millions) 445 46,165 852 9 3,679 41,124 56 CKHH Ports & Infrastructure Energy Telcommunications Finance & CKHH Comparable Related Investments Pro forma EBITDA Services and Others To
Slide 9: Business & Geographical Diversification: Total EBIT
Business & Geographical Diversification Total EBIT 1H 2015 Pro forma Total EBIT: HK$30,677 million By Geographical Location By Division 7% 13% 20% 18% 3% 39% Ports & Related Services Retail Infrastructure Energy Telecommunications Finance & Investments and others 9
Slide 10: Business & Geographical Diversification: Total EBIT
Business & Geographical Diversification Total EBIT 1H 2015 Pro forma Total EBIT (HK$ millions) 3,100 30,677 Comparable EBIT change: +3% Local currency growth: +12% 525 487 117 259 27,577 550 2,642 (354) 26,815 (3,464) HWL Ports & Retail Infrastructure Energy 3 Group HTHKH HAT F&I CKHH Additional CKH
Slide 11: Business & Geographical Diversification: Total EBIT – Additional Contributions
Business & Geographical Diversification Total EBIT – Additional Contributions 1H 2015 Additional EBIT Contributions (HK$ millions) 406 30,677 159 2,517 (12) 27,577 30 CKHH Ports & Infrastructure Energy Telcommunications Finance & CKHH Comparable Related Investments Pro forma EBIT Services and Others
Slide 12: European Contribution: Total Revenue, EBITDA & EBIT
European Contribution Total Revenue, EBITDA & EBIT HWL 1H 2014 (1) Total Revenue: HK$196.7 billion Total EBITDA: HK$42.6 billion Total EBIT: HK$26.8 billion F&I and F&I and F&I and others others others Canada∆ 5% Ports 3% 5% Ports 4% 7% Ports 3% 15% Canada∆ Canada∆ 18% Retail 7% 16% Retail 9% Retail
Slide 13: European Contribution: Comparable Revenue, EBITDA & EBIT
European Contribution Comparable Revenue, EBITDA & EBIT Comparable Revenue(1) - European growth by division (%) 16% 9% 6% 3% -2% -3% -10% -13% Ports Retail Infrastructure 3 Group Europe Reported currency Local currency Comparable EBITDA(1) - European growth Comparable EBIT(1) - European growth by di
Slide 14: Ports and Related Services
Ports and Related Services 1H 2015(2) 1H 2014(2) Change % Change % HK$ millions HK$ millions in local currency Comparable Revenue(1) 17,190 17,270 - +7% Comparable EBITDA(1) 6,048 5,607 +8% +14% Comparable EBIT(1) 4,081 3,531 +16% +22% Throughput 41.5 million TEU 39.6 million TEU +5% NA Management P
Slide 15: Ports and Related Services
Ports and Related Services Comparable Revenue (0%) Comparable EBITDA (+8%) Outlook By Subdivision By Subdivision An increase of 3 berths is expected in 2H 2015 from new 3% 8% 2% 11% berths commencing operations in Barcelona, Spain (2) and Felixstowe, the UK (1). With global trade conditions rema
Slide 16: Ports and Related Services: EBITDA Growth
Ports and Related Services EBITDA Growth 1H 2015 Pro Forma Total EBITDA(1) (HK$ millions) Comparable EBITDA growth: +8% Local currency growth: +14% 535 14 56 6,104 6,048 (366) 69 248 5,607 (59) HWL HPH Trust Europe Mainland China Asia, Australia Corporate costs Foreign CKHH Additional CKHH Pro forma
Slide 17: Retail
Retail 1H 2015(1) 1H 2014(1) Change % Change % HK$ millions HK$ millions in local currency Total Revenue 74,926 77,398 -3% +6% Total EBITDA 6,683 6,611 +1% +11% Total EBIT 5,453 5,336 +2% +12% Total Store Numbers 11,780 10,812 +9% NA Total Retail Store Numbers (+9%) Change % Total Revenue (-3%) Tota
Slide 18: Retail: EBITDA by segment
Retail EBITDA by segment Change % 1H 2015 EBITDA 1H 2014 EBITDA Total EBITDA (+1%) EBITDA Change % in local HK$ millions Margin % HK$ millions Margin % currency By Subdivision Health & Beauty China 2,382 21% 1,974 20% +21% +21% Health & Beauty Asia 901 9% 870 8% +4% +7% 9% Health & Beauty China & As
Slide 19: Retail: EBITDA Growth
Retail EBITDA Growth 1H 2015 Total EBITDA (HK$ millions) EBITDA growth: +1% Local currency growth: +11% 172 290 (205) 65 418 6,683 6,611 (668) HWL Health & Beauty Health & Beauty Health & Beauty Health & Beauty Other Retail (2) Foreign Currency CKHH Total EBITDA China Asia Western Europe Eastern Eur
Slide 20: Infrastructure
Infrastructure 1H 2015(1) 1H 2014(1) Change % HK$ millions HK$ millions Comparable Revenue 22,232 22,264 - Comparable EBITDA 12,366 11,819 +5% Comparable EBIT 9,470 8,945 +6% Management Pro Forma basis: Cheung Kong Infrastructure (“CKI”) 1H 2015 1H 2014 CKI’s announced earnings for 1H 2015 of HK$5
Slide 21: Energy
Energy 1H 2015(1) 1H 2014(1) Change % Change % HK$ millions HK$ millions in local currency Comparable Revenue 17,829 28,660 -38% -30% Comparable EBITDA 4,644 8,145 -43% -36% Comparable EBIT 865 4,329 -80% -77% Production 346.4 mboe/day 329.8 mboe/day +5% NA Management Pro Forma basis: 1H 2015 1H 201
Slide 22: Energy: Key Projects / Milestones
Energy Key Projects / Milestones Average Production i. Sunrise Energy Project (Husky Energy’s working interest: 50%) mboe/day First oil at Phase 1 of the Sunrise Energy Project was achieved in March 400.0 359.6 356.0 2015. Production is expected to ramp up around the end of 2016 333.6 341.1 336.9
Slide 23: Telecommunications – 3 Group Europe
Telecommunications – 3 Group Europe Management Pro Forma basis: 1H 2015(1) 1H 2014(1) Change % in Overall 3 Group Europe operations reported improved underlying HK$ millions HK$ millions Change % local currency EBITDA performances, a 40% increase in local currencies compared to Total Revenue 30,57
Slide 24: Telecommunications – 3 Group Europe: EBITDA Growth
Telecommunications – 3 Group Europe EBITDA Growth 1H 2015 Total EBITDA (HK$ millions) EBITDA growth: +20% Local currency growth: +40% 854 328 129 272 (11) 7,778 1,038 (1,336) 6,504 HWL 3 UK 3 Italy 3 Sweden 3 Denmark 3 Austria 3 Ireland Foreign CKHH Total EBITDA currency Total EBITDA 1H 2014(1) tran
Slide 25: 3 Group Europe: Results by operations
Telecommunications – 3 Group Europe Results by operations 3 Group UK Italy Sweden Denmark Austria Ireland Europe In millions GBP EURO SEK DKK EURO EURO HK$ 1H 2015 1H 2014 1H 2015 1H 2014 1H 2015 1H 2014 1H 2015 1H 2014 1H 2015 1H 2014 1H 2015 1H 2014 1H 2015 1H 2014 Total Revenue 1,071 974 881 815
Slide 26: 3 Group Europe: Key Business Indicators
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 2015 ('000) Postpaid 6,143 5,225 1,705 762 2,479 1,147 17,461
Slide 27: 3 Group Europe: Key Business Indicators
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 12-month Trailing Average Revenue per Active User ("ARPU")(1) to 30 June 2015 Postpaid ARPU(1) £26.74
Slide 28: 3 Group Europe: Key Business Indicators
Telecommunications – 3 Group Europe Key Business Indicators Key business indicators for the 3 Group Europe’s businesses are as follows: 1H 2015 3 Group UK Italy Sw eden Denmark A us t ria Ireland Europe A verage Contract customers as a % of the total registered customer base 59% 51% 87% 66% 67% 44%
Slide 29: Telecommunications – HTHKH
Telecommunications – HTHKH 1H 2015(1) 1H 2014(1) Change % HK$ millions HK$ millions Comparable Revenue 11,020 6,227 +77% Comparable EBITDA 1,506 1,230 +22% Comparable EBIT 797 538 +48% Management Pro Forma basis: HTHKH had a combined active mobile customer base of 1H 2015 1H 2014 approximately 2.9
Slide 30: Telecommunications – HAT & HTAL, Share of VHA
Telecommunications – HAT & HTAL , Share of VHA HAT HAT had an active customer base of approximately 62.6 million with operations in Indonesia, Vietnam and Sri Lanka. Management Pro Forma basis: The Indonesian operation continues to strengthen the operational controls and 1H 2015(1) 1H 2014(1) im
Slide 31: Financial profile: Healthy maturity and liquidity profile
Financial profile Healthy maturity and liquidity profile DebtMaturity Profile at 30 June 2015 – principal only HK$ millions 200,000 180,000 173,855 160,000 140,000 Liquid Assets by Type at 30 June 2015 120,000 100,000 3% 82,904 4% 80,000 72,272 60,000 38,619 40,000 33,154 32,498 31,859 20,000 12,865
Slide 32: Financial profile: EBITDA less Capex by division
Financial profile 1H 2015 Comparable EBITDA , HWL Dividends and distributions from Associates & JVs less HWL’s Capex of Company & Subsidiaries and Investments in Associates & JVs by division (HK$ millions) 41,124 12,366 18,617 28,246 5,739 7,778 6,683 10,576 6,556 6,048 6,123 17,281 1,093 533 5,071
Slide 33: Financial profile: Infrastructure EBITDA less capex & investment
Financial profile Infrastructure 1H 2015 EBITDA less capex & investment CKHH Pro forma basis (HK$ millions) Analysed by: Company & subsidiaries and Associates & JVs Analysed by: Infrastructure & Aircraft leasing 20,814 20,814 6,336 16,045 12,773 10,552 8,335 8,335 434 12,773 1,071 2,842 7,901 6,970
Slide 34: CKHH / Cheung Kong Property Interim Dividend
CKHH / Cheung Kong Property Interim Dividend (in HK$) Ex-CKH Shareholders Ex-HWL Shareholders Growth % : +64.6% (1) Growth % : +8.8% (2) 1.05 1.05 0.35 0.35 0.660 0.7182 0.638 0.2394 0.70 0.70 0.4788 CKH 2014 CKHH / Cheung Kong HWL 2014 CKHH / Cheung Kong CKHH / Cheung Kong Interim Property 2015 Int
Slide 35: FY 2015 Dividend Policy
CKHH / Cheung Kong Property FY 2015 Dividend Policy Subject to respective business results of CKHH and Cheung Kong Property, expected total dividend for 2015 will be more than total dividend for 2014 and the percentage increase will depend on 2015’s final dividend A recap of the 2014 dividends is sh
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