China Telecom Corp. Ltd. Class A · SSE:601728
China Telecom Corp. Ltd. Class A — CLSA China Forum 2005
22 slides from China Telecom Corp. Ltd. Class A's conference presentation, May 18, 2005
Slide 1: China Telecom Presentation at CLSA China Forum 2005
China Telecom Presentation at CLSA China Forum 2005 Ms. Wu Andi EVP & CFO of China Telecom May 18, 2005 Beijing
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements contained in this document may be viewed as “forward- looking statements” within the meaning of Section 27A of the U.S. Securities Act of 1933 (as amended) and Section 21E of the U.S. Securities Exchange Act of 1934 (as amended). Such forward-looking sta
Slide 3: Agenda
Agenda Overview 1Q2005 Update Outlook 3
Slide 4: Leading fixed-line operator
Leading fixed-line operator 2002: IPO 2003: 1st Acquisition 2004: 2nd Acquisition 4 Provincial Another 6 Provincial Another 10 Provincial Operations Operations Operations Xinjiang Qinghai Ningxia Gansu Shanxi Jiangsu Anhui Sichuan Hubei Shanghai Chongqing Zhejiang Hunan Jiangxi Guizhou Fujian Yunnan
Slide 5: Group Structure
Group Structure China China Telecommunications Telecommunications Corporation Corporation Public Public Other Other33state state shareholders shareholders shareholders shareholders 17.15% 10.76% 100.0% 72.09% Operations Operationsinin China China Telecom Telecom Corporation Corporation Limited Limit
Slide 6: Services
Services Contribution to Services Description total revenue* Local telephone Local access and telephony 53% Long distance DLD, IDD 20% Internet xDSL, Fttx+LAN, WLAN, Dial-up 9% DDN, FR, ATM, X.25 … Data/Leased Line 5% Caller-ID, Telephone information service, VAS 4% System Integration, SMS, Color ri
Slide 7: 2004 Review
2004 Review Continuous growth in subscribers, revenue and net profit EBITDA margin sustained at a relatively high level 2003 2004 Growth Access Lines in Service (Mil) 160.99 186.65 15.9% Broadband Subs (Mil) 7.23 13.84 91.4% Operating Revenue (RMB Mil) 141,782 152,754 7.7% EBITDA (RMB Mil) 69,678 78
Slide 8: 2004 Review (continued)
2004 Review (continued) Local Subs Broadband Subs Million Million CAGR: CAGR:+18.4% +18.4% CAGR: CAGR:+139.6% +139.6% 186.7 161.0 13.8 133.1 7.2 2.4 2002 2003 2004 2002 2003 2004 8
Slide 9: 2004 Review (continued)
2004 Review (continued) Operating Revenue EBITDA RMB Mil RMB Mil CAGR: CAGR:+14.1% +14.1% 78,542 69,678 +7.7% +7.7% 60,354 152,754 141,782 51.4% 49.1% 46.3% 2003 2004 2002 2003 2004 EBITDA Margin 9
Slide 10: Agenda
Agenda Overview 1Q2005 Update Outlook 10
Slide 11: Key Performance Indicator
Key Performance Indicator 1Q2005* Operating Revenue (Ex-connection fees, RMB million) 38,920 Local Subs (Million) 195.102 Net Add of Local Subs (Million) 8.454** Broadband Subs (Million) 15.719 Net Add of Broadband Subs (Million) 1.880 * Unaudited figures ** Benefiting from the seasonal strength and
Slide 12: Sustained Top Line Growth
Sustained Top Line Growth Composition of Local Subs Net Operating Revenue Adds RMB Million 23.4% +6.0% +6.0% 5.6% 4.0% 36,700 38,920 67.0% Residential Enterprise Public PHS 1Q2004 1Q2005 12
Slide 13: Agenda
Agenda Overview 1Q2005 Update Outlook 13
Slide 14: Opportunities and Challenges
Opportunities and Challenges Economic Environment • Sustained and robust economic growth • Speeding up of national economic informatization Strong demand for telecommunications services Customers Competition • Demand for diversified and one-stop • Increasing mobile substitution services • New VAS op
Slide 15: Near Term Development Focus
Near Term Development Focus Product Bundling • Wireline Leverage bundling and and Tariff Packaging packaging to boost usage • Broadband Expand subscriber Targeted marketing, base and extend value chain strengthening sales channel • VAS SMS, color ringtone management • Enterprise Subs Provide total s
Slide 16: Broadband Development
Broadband Development Additional Broadband Subs Leading position maintained with a Million roughly 90% market share* Household 1.89 1.88 broadband penetration < 8%, indicating huge potential 1Q04 1Q05 * Source: MII, China Telecom 16
Slide 17: Broadband Development (Continued)
Broadband Development (Continued) IPTV IPTV Gaming Gaming Education Education Messaging Messaging Community Community … … Applications VNET platform Platforms Billing& Billing&Collection Collection Distribution Distribution Cooperation Cooperation Portal Portal SPs SPs System System Channels Channel
Slide 18: VAS
VAS PHS SMS Usage VAS pool Million pieces PHS PHSColor Color PHS PHSSMS SMS Ring-tone Ring-tone … … +31% +31% Fixed Fixed Color Color Fixed Fixed SMS SMS Ring-tone Ring-tone +24% +24% Caller-ID Caller-ID Telephone Telephone …. 1,206 …. Information Information 923 746 Telephone Telephone Yellow Yello
Slide 19: Improved Key Account Service
Improved Key Account Service E- E- Security Security Chain Chain E-Custom E-Custom Bank Bank MNC MNC Government Government Firm Firm Store Store Solution Solution Solution Solution Solution Solution Solution Solution Solution Solution Solution Solution Tailored Tailored Solutions Solutions Nation Na
Slide 20: Precision Management
Precision Management Strengthen branding and sales channel management to enhance competence Optimize and upgrade network to support business development Strengthen financial management to control costs and CAPEX effectively Persist to improve internal control to reduce risk 20
Slide 21: Extension of value chain
Progressive Strategic Transformation Consumer Contents and Enterprise Applications Applications and Solutions IP VPN System Games, VOD, family Integration, IT informatization Outsourcing Extension of value chain Communication Services (Voice, Data, Media….) Wireline Fixed Mobile Broadband Wireless N
Slide 22: THANK YOU
THANK YOU China Telecom Corporation Limited www.chinatelecom-h.com