China Telecom Corp. Ltd. Class A · SSE:601728
China Telecom Corp. Ltd. Class A — 2013 Credit Suisse Asian Investment Conference
18 slides from China Telecom Corp. Ltd. Class A's conference presentation, Mar 21, 2013
Slide 1: 2013 Credit Suisse Asian Investment Conference
2013 Credit Suisse Asian Investment Conference Mr. Yang Jie, President & COO China Telecom Corporation Limited 21 March 2013 | www.chinatelecom‐h.com
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 stat
Slide 3: Highlights
Highlights Robust business development 3G traction fostered mobile optimized revenue structure & scale development & industry‐ drove double‐digit revenue leading mobile revenue growth surpassing industry growth with enhanced average customer value Accelerated fibre deployment to Timely compl
Slide 4: Solid Revenue Growth to Foster Long-term Value Enhancement
Solid Revenue Growth to Foster Long‐term Value Enhancement 2011 2012 Change (restated) Operating Revenue (RMB Mil) 245,068 283,073 15.5% Operating Revenue 231,133 258,316 11.8% (Excl. Mobile Terminal Sales) (RMB Mil) Pre‐leasing fee EBITDA (RMB Mil) 94,371 96,387 2.1% EBITDA Margin 40.8% 37.3% ‐3.5p
Slide 5: Deepened Strategic Transformation to Accelerate Growth Momentum
Deepened Strategic Transformation to Accelerate Growth Momentum Double‐digit revenue growth surpassing Robust full‐services development with industry average increasing mix from growth businesses Growth businesses accounted for 84.7% ( 13.1pp vs 2010) Source: Ministry of Industry and Information Te
Slide 6: Timely Completed Mobile Network Acquisition to Drive Future Profitability
Timely Completed Mobile Network Acquisition to Drive Future Profitability Post acquisition: Leasing fee Expected future leasing fee savings Less: network maintenance & other expenses > incremental mobile network depreciation & Less: depreciation & amortization expenses (Incremental finance charges a
Slide 7: Dividend
Dividend Dividend Per Share The Board of Directors recommends to HKD the shareholders a final dividend of HKD0.085 per share for 2012 0.085 0.085 With due regards to the payment for the mobile network acquisition & shareholders’ cash return, a stable dividend is recommended for 2012 The Company
Slide 8: Revenue Breakdown
Revenue Breakdown 2011 2012 Change RMB Mil (restated) Mobile 82,703 117,826 42.5% Service Revenue 68,248 92,803 36.0% Voice 38,628 49,166 27.3% Data 29,620 43,637 47.3% Others 14,455 25,023 73.1% Wireline 162,365 165,247 1.8% Voice 49,764 43,335 ‐12.9% Data 105,672 114,011 7.9% Internet Access 61,69
Slide 9: Industry-leading Mobile Revenue Growth
Industry‐leading Mobile Revenue Growth Mobile Subs Fully leveraged superior strengths in Mil 53.9 52.4 3G network & services to rapidly 160.62 expand mobile subscriber scale & 27.0% increase customer value 126.47 Fast mobile scale expansion underpinned by peer‐ best 3G network coverage leading in
Slide 10: Rapidly Growing Mobile Data Revenue
Rapidly Growing Mobile Data Revenue Mobile Data Revenue Leverage data traffic operation to promote RMB Mil . 3% rapid mobile data growth 47 (a key revenue growth driver) Key initiatives Strengthened development of both self‐operated & co‐ operated applications Reinforced experienced‐based sell
Slide 11: Resilient Wireline Business
Resilient Wireline Business Wireline Revenue RMB Mil Persistent strategic transformation led to increasing contribution from Wireline Data & others, effectively 165,939 ‐2.2% 1. 8% 165,247 driving wireline revenue growth 162,365 Wireline Data & others as % of wireline revenue: 73.8% (11.5pp vs
Slide 12: Fast Growing Wireline Broadband Service Amid Mounting Competition
Fast Growing Wireline Broadband Service Amid Mounting Competition Wireline Broadband Revenue RMB Mil Leverage network strengths & unmatched 9.8% service quality to enhance customer growth & user experience Benefiting from rapid subscriber growth, broadband revenue maintained strong growth: 9.8% y
Slide 13: Key Financial Information
Key Financial Information 2011 2012 Change RMB Mil (restated) Operating Revenue 245,068 283,073 15.5% Operating Expenses 220,941 261,887 18.5% Depreciation & Amortization 51,233 49,655 ‐3.1% Network Operations & Support 52,925 66,003 24.7% Incl.: Mobile Network Leasing 19,011 25,546 34.4% Personnel
Slide 14: Appropriate Increase in Cost Initiatives to Drive Scale Development
Appropriate Increase in Cost Initiatives to Drive Scale Development Operating Expenses as % of Grasping the scale expansion opportunity Operating Revenue with appropriate increase in cost initiatives 92.5% to promote sustainable growth 90.2% Depreciation & Depreciation & Amortization: 3.4pp (bene
Slide 15: Highly Efficient Investment Boosts Network Strength
Highly Efficient Investment Boosts Network Strength Effectively support rapid business expansion CAPEX & sharpen core competence RMB Mil 75,000 Implement “Broadband China, Fibre Cities” Project 72,525 2012 broadband net add: 13.31 mil Broadband subs of ≥4Mbps: 73% ( 23pp yoy) 2011‐13: Intensi
Slide 16: Resources Allocation Tilting toward High-growth, High-value Businesses & Areas
Resources Allocation Tilting toward High‐growth, High‐value Businesses & Areas CAPEX Structure Reinforced network leadership & supported rapid business growth Strictly controlled investment in traditional wireline business & stepped up investment in growth businesses to enhance network servicing c
Slide 17: Riding on the Momentum to Drive Scale & Value
Riding on the Momentum to Drive Scale & Value Fabulous mobile Internet Fast proliferating smartphones applications adoption Leading edges on fibre Corporate broadband, 3G Value networks & services Leader of Intelligent Pipeline Clear & effective strategy with strong Provider of Integrated execut
Slide 18: Thank You!
Thank You! Institutional Investor 2012 “Grand Prix for Best “Best Managed “Best Managed “Asia’s Most Overall Investor Relations Company Company in Asia Honored in Greater China 2012” in Asia 2012” 2013” Companies 2012” For further information & enquiries, please contact our Investor Relations Depart
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