Hutchison Telecommunications (Australia) Ltd
Hutchison Telecommunications (Australia) — FY2006 Earnings Presentation
17 slides from Hutchison Telecommunications (Australia)'s earnings presentation, Feb 27, 2007
Slide 1: ASX cover letter: Annual Results Presentation
HME Hutchison Hutchison Telecommunications rT 1 (Australia) Limited Telecoms ABN 15 003 677 227 A members of the Hutchison Telecommunications Group Building A, 207 Pacific Highway St Leonards NSW 2065 Tel: (02) 9964 4846 Fax: (02) $864 4868 www. hutchisan com.au Companies Announcements Office Austra
Slide 2: 2006 Full Year Results
Hutchison Telecommunications (Australia) Limited 2006 Full Year Results Nigel Dews Chief Executive Officer 27‘ February 2007 me Hutchison Ew Telecoms Tem cations qperstigns of Gil)
Slide 3: Operational Highlights
Operational Highlights * Positive EBITDA of $30.2 million for the period, a turnaround of $195.8 million from 2005 * Average monthly margin for 3 increased from $28.7 million in 2005 to $53.3 million in 2006 * Over 1.2 million 3 customers, an increase of 90.4% — 1.1 million of whom are postpaid * Se
Slide 4: Financials
($million) Service revenue 3 service revenue Accounting EBITDA (loss) Underlying NPAT (loss) Impact of CDMA network closure Reported NPAT (loss) CAPEX Financials Full Year to 31 Dec 06 Full Year to 31 Dec 05 924.9 848.9 758.2 482.9 30.2 (165.6) (451.5) (547.3) (307.9) - (759.4) (547.3) (203.8) (207.
Slide 5: Mobile Customer Base
Mobile Customer Base (Mobile Customers '000) ‘4,099 post-paid (88.3%) 412 2003 2004 2005 2006 Step change in scale for 3 @& Hutchison @@ Telecoms 4
Slide 6: Service Revenue
Service Revenue ($million) 925 758 —% 2c i 3 523 241 2003 2004 2005 2006 76% increase in 3 service revenue @ Hutchison @@ Telecoms 5
Slide 7: Margin and ARPU
Margin and ARPU $70 $67 $67 $49 % ARPU $48 j | Margin 2003 2004 2005 2006 Margins supported by strong contribution from non-voice services 8 Hutchison i Telecoms 6
Slide 8: Non-voice strength
Non-voice strength {4 sms $19 122 3G services os $17 $13 2004 2005 2006 2006 Excl CDMA customers * 56% of base generating billable content events, compared to 53% in 2005 * 930,000 monthly subscription services at 31 December 2006, up from 521,000 at 31 December 2005 * 92.5m content events vs 49.4m
Slide 9: Running Operating Expenditure
Running Operating Expenditure ($million) 762 145 692 @ Other @ Adv & Promotion f Employee Benefits Expense Net Handset Costs f Direct Telecommunication 2004 2005 2006 Scalable cost base 8 Hutchison Telecoms 8
Slide 10: Customer Acquisition Costs
3 Customer Acquisition Costs $416 2005 2006 3 Hutchison i Telecoms 9
Slide 11: CAPEX
CAPEX ($million) 307 2004 2005 2006 CAPEX stable 3 Hutchison i Telecoms 10
Slide 12: What to Expect in 2007
What to Expect in 2007 * Exit with positive operating cashflow * Capital structure optimised « 3G market growth will accelerate « HSDPA upgrade in line with device roadmap * Significant innovation in mobile broadband services Well positioned for growth with improved financial performance i Hutchison
Slide 13: Hutchison
3 Hutchison i Telecoms
Slide 14: Chief Executive's Address: introduction and highlights
Hutchison Telecommunications (Australia) Limited 2006 Full Year Results 27 February 2007 Chief Executive’s Address Slide 1 — introduction During this call | will take you through the financial results for Hutchison Telecoms for the twelve months to 31 December 2006, and provide some direction for 20
Slide 15: Chief Executive's Address: Financials
Overall we are very pleased with the underlying operating results for the Company and there is significant momentum being carried into 2007. Slide 3 — Financials Service revenue growth of 22% reflects the increase in the customer base and, importantly includes the 76% growth in 3 services revenue dr
Slide 16: Chief Executive's Address: Margin and ARPU
Slide 6 — Margin and ARPU Blended average monthly margin per customer increased from $48 in 2005 to $49 in 2006. Total monthly ARPU was stable at $67, despite the decrease in mobile interconnect rates from 18 cents to 15 cents effective 1° January 2006. Slide 7 — Continued Strength in 3 Non-voice 3
Slide 17: Chief Executive's Address: Customer Acquisition Costs
Slide 9 — 3 Customer Acquisition Costs The cost of acquisition (CAC) for each new 3 customer fell significantly from $402 in 2005 to $274 in 2006. The decline is due to falling handset prices and lower distribution costs. As handset manufacturers continue to produce handsets with improved features a
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