Hutchison Telecommunications Hong Kong Holdings Limited · HKEX:215
Hutchison Telecommunications Hong Kong — FY2009 Earnings Presentation
25 slides from Hutchison Telecommunications Hong Kong's earnings presentation, Mar 8, 2010
Slide 1: 2009 Annual Results Presentation
SEHK: 215 2009 Annual Results Presentation 8 March 2010
Slide 2: Disclaimer
Disclaimer These materials have been prepared by Hutchison Telecommunications Hong Kong Holdings Limited (HTHKH) 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, th
Slide 3: Business Performance
Business Performance Ll] Hutchison Telecom BBM Hong Kong Holdings
Slide 4: Highlights
Highlights 1 Consolidated turnover grew 4% to HK$8,449 million 2 Mobile data revenue grew over 50% and operating profit increased by 97% to HK$483 million 3 Fixed-line carrier market reported strong growth and operating profit increased by 10% to HK$398 million 4 Profit attributable to equity holder
Slide 5: Turnover
1 Turnover Consolidated turnover w th 4% gro 9,000 8,124 8,449 6,000 HK$ mm 3,000 0 FY08 FY09 Mobile business turnover Fixed– Fixed–line business turnover w th 3% gro w th 6% gro 6,000 5,395 5,578 4,000 3,221 3,035 3,000 4,000 HK$ mm HK$ mm 2,000 2,000 1,000 0 0 FY08 FY09 FY08 FY09 4
Slide 6: Mobile - customers
2 Mobile - customers Total customers Postpaid customers 10%↑ 4% ↑ Total:20%↑ Total: 2%↑ 3G: 3G: 1 3,000 2,962 2,000 1,792 1,862 2,702 ' 000 '000 1,605 2,000 1,340 1,245 1,396 1,000 1,000 0 0 FY08 FY09 3G FY08 FY09 2G 5
Slide 7: Mobile - KPIs
2 Mobile - KPIs Postpaid ARPU Improving postpaid ARPU and 250 209 213 202 211 churn under softened economy 200 HK$ / month 150 100 50 0 '08 1H '08 2H '09 1H '09 2H Postpaid churn 2.0% 1.8% 1.9% 1.7% 1.6% Percentage (%) 1.5% 1.0% 0.5% 0.0% '08 1H '08 2H '09 1H '09 2H 6
Slide 8: Fixed-line - key revenue drivers
3 Fixed- Fixed-line - key revenue drivers Carrier Revenue Focused and well-executed 2,000 18% Growth growth strategy 1,523 1,500 1,291 (HK$ mm) 1,000 500 0 FY08 FY09 Corporate & Business Revenues 1,000 7% Growth 839 784 (HK$ mm) 500 0 FY08 FY09 7
Slide 9: Profit attributable to equity holders and EPS
4 Profit attributable to equity holders and EPS Profit attributable to equity holders Double earnings 500 %↑ 468 103 400 HK$ mm 300 230 200 100 0 FY08 FY09 Earnings per Share 12 9.72 10 8 HK cents 6 4.78 4 2 0 FY08 FY09 8
Slide 10: Delivering value to equity holders
5 Delivering value to equity holders Solid cash flows and businesses growth strong consolidated results and operational cash flows sound financial position and adequate pool of internal resources Recommended 2009 final dividend: 6.16 HK cents or HK$297 million in total With inclusion of interim divi
Slide 11: Financial Overview
Financial Overview Ll] Hutchison Telecom BBM Hong Kong Holdings
Slide 12: Financial Highlights
Financial Highlights FY09 FY08 (HK$m) (HK$m) Turnover 8,449 8,124 4% Growth Cost of inventories sold (756) (698) Staff costs (644) (630) Depreciation and amortisation (1,288) (1,390) Other operating expenses (4,974) (4,898) Operating profit 787 508 Interest income 4 17 Interest and other finance cos
Slide 13: Turnover – mobile business
Turnover – mobile business Data revenue 54% data revenue growth 1,500 ↑54% 1,436 933 (HK$ mm) 1,000 500 Turnover analysis by segments 0 FY08 FY09 Total: HK$5,578m Total: HK$5,395m Others Others 16% 15% Voice 38% Roaming Voice Roaming 23% 45% 20% Data Data 17% 26% FY09 FY08 12
Slide 14: Turnover - Fixed-line business
Turnover - Fixed- Fixed-line business Solid growth in Carrier, Corporate & Business markets Total: HK$3,221m Others1 Others1 Total: HK$3,035m 9% 7% Carrier Residential Residential 43% 20% Carrier 22% 47% Corporate & Corporate & Business Business 26% 26% FY09 FY08 1 Others include revenue from interc
Slide 15: Financial Highlights
Financial Highlights FY09 FY08 (HK$m) (HK$m) Turnover 8,449 8,124 Cost of inventories sold (756) (698) Staff costs (644) (630) Depreciation and amortisation (1,288) (1,390) Other operating expenses (4,974) (4,898) Operating profit 787 508 Interest income 4 17 Interest and other finance costs (184) (
Slide 16: Key cost items
Key cost items Cost of inventories sold 800 756 10% 698 600 8.6% 8.9% % to turnover HK$ mm 400 5% 200 0 0% FY08 FY09 Depreciation and amortisation expenses Staff costs 1,500 1,390 20% 800 10% 1,288 630 644 8% 17.1% 15% 600 % to turnover % to turnover 1,000 15.2% 7.8% 7.6% HK$ mm HK$ mm 6% 10% 400 4%
Slide 17: Financial Highlights
Financial Highlights FY09 FY08 (HK$m) (HK$m) Turnover 8,449 8,124 Cost of inventories sold (756) (698) Staff costs (644) (630) Depreciation and amortisation (1,288) (1,390) Other operating expenses (4,974) (4,898) Operating profit 787 508 Interest income 4 17 Interest and other finance costs (184) (
Slide 18: Other operating expenses
Other operating expenses Cost of services provided General, administrative and distribution costs 4,000 3,596 3,535 50% 400 5% 329 327 44.3% 40% 4% 3,000 41.8% 300 % to turnover % to turnover 4.0% 3.9% HK$ mm HK$ mm 30% 3% 2,000 200 20% 2% 1,000 100 10% 1% 0 0% 0 0% FY08 FY09 FY08 FY09 Operating lea
Slide 19: Capex
Capex Revenue driven Capex investment and scheduled network modernisation Capex and % of Turnover 1,200 1,108 15% 1,035 Capex / Revenue (%) 900 13.6% 12.2% 10% HK$ mm 600 5% 300 0 0% FY08 FY09 18
Slide 20: Liquidity
Liquidity Strong FCF to meet future liquidity needs FCF 1,200 ↑31% 1,039 791 800 HK$ mm 400 0 FY08 FY09 19
Slide 21: Managing financial position
Managing financial position Net Debt Leverage ratio = 2 6000 4,948 4,413 4,090 3-year HK$5B bank facilities (HK$ mm) 4000 arranged in Dec 2009 with 2000 more favourable terms 0 FY07 FY08 FY09 Net Debt / LTM EBITDA 5.0 4.0 3.0 2.6 x 2.3 x (x) 2.0 x 2.0 1.0 0.0 FY07 FY08 FY09 20
Slide 22: Outlook
Ll] Hutchison Telecom BBM Hong Kong Holdings Outlook 21
Slide 23: Outlook
Outlook Well positioned to explore and capitalise on opportunities generated by upwardly-spiraling demand for bandwidth and increasing appetite for mobile data services. Bandwidth and Data Solid growth, delivering value 22
Slide 24: Q&A
Ll] Hutchison Telecom BBM Hong Kong Holdings O&A 23
Slide 25: Thank You
Ll] Hutchison Telecom BBM Hong Kong Holdings Thank You 24
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