1 August 2012
Hutchison Telecommunications Hong Kong Holdings Limited (Stock Code: 215)
2012 Interim Results Presentation
Disclaimer
1
These materials have been prepared by Hutchison Telecommunications Hong Kong Holdings Limited (HTHKH) solely for use at thispresentation and have not been independently verified. No representations or warranties, express or implied, are made as to, and no relianceshould be placed on, the fairness, accuracy, completeness or correctness of the information or opinions presented or contained in thesematerials.
It is not the intention to provide, and you may not rely on these materials as providing, a complete or comprehensive analysis of the financial ortrading positions or prospects of HTHKH. None of HTHKH or any of their respective directors, officers, employees, agents, affiliates, advisersor representatives accepts any liability whatsoever in negligence or otherwise for any loss howsoever arising from any information or opinionspresented or contained in these materials or otherwise arising in connection with these materials. The information presented or contained inthese materials is subject to change without notice and its accuracy is not guaranteed.
These materials are for information purposes only and do not constitute or form part of any invitation or offer to acquire, purchase or subscribefor securities and none of them shall form the basis of or be relied upon in connection with any contract, commitment or investment decision inrelation thereto.
These materials contain forward-looking statements. Statements that are not historical facts, including statements about the beliefs andexpectations of HTHKH, are forward-looking statements. These statements are based on current plans, estimates and projections, and unduereliance should not be placed on them. Forward-looking statements speak only as of the date they are made, and HTHKH has no obligation toupdate any of them publicly in light of new information or future events. Forward-looking statements involve inherent risks, uncertainties andassumptions. HTHKH caution that if these risks or uncertainties ever materialize or the assumptions prove incorrect, or if a number ofimportant factors occur or do not occur, actual results of HTHKH may differ materially from those expressed or implied in any forward-lookingstatement.
While non-generally accepted accounting principles (GAAP) measures such as EBITDA (earnings before interest, taxation, depreciation andamortisation and share of results of jointly controlled entities) are often used by companies as an indicator of operating performance, they arenot expressly permitted measures under the GAAP or the International Financial Reporting Standards (IFRS) and may not be comparable tosimilarly titled measures for other companies. Accordingly, such non-GAAP measures should not be considered as an alternative to operatingincome as an indicator of the operating performance of HTHKH, and its subsidiaries or as an alternative to cash flows from operating activitiesas a measure of liquidity. The use of non-GAAP measures is provided solely to enhance the overall understanding of the current financialperformance of HTHKH, and its subsidiaries. Additionally, because HTHKH has historically reported certain non-GAAP results to investors,HTHKH considers the inclusion of non-GAAP measures provides consistency in its financial reporting.
Business Performance
HighlightsHoH Growth
� HK$ 6,730m
� HK$ 801m
Consolidated turnover
� HK$ 568m
� 6.05 HK cents
� HK$ 1,446mConsolidated EBITDA
Consolidated EBIT
Net profit 1
Interim dividend per share
3
1 Net profit attributable to shareholders
12%
16%
17%
15%
17%
Turnover
1,630 1,653
Consolidated turnover
Mobile business turnover Fixed-line business turnover
4
3,973 4,144 4,221
310
1,874
2,509
0
2,000
4,000
6,000
FY2010 1H FY2011 1H FY2012 1HH
K$ m
FY 20101H
FY 20111H
FY 20121H
2,5212,679 2,732
310
1,874
2,509
0
2,000
4,000
FY2010 1H FY2011 1H FY2012 1H
HK
$ m
Hardware revenue
Service revenue
FY 20101H
FY 20111H
FY 20121H
1,000
1,500
2,000
FY2010 1H FY2011 1H FY2012 1H
HK
$ m
1,6301,653
1,725
FY 20101H
FY 20111H
FY 20121H
Hardware revenue
Service revenue
Mobile
Quality customer base
� >90% postpaid customers under 3G/4G
� Solid customer profile
6
3,642
2,014
All percentages represent compound annual growth rate
* Include HK and Macau
3G & 4G
2G
Total subscribers*
1,275 988 770
1,777 2,365 2,872
0
2,000
4,000
FY2010 1H FY2011 1H FY2012 1H
’000
3,0523,353
FY 20101H
FY 20111H
FY 20121H
443 326 195
1,451 1,642 1,795
0
1,200
2,400
FY2010 1H FY2011 1H FY2012 1H
’000
1,9681,894 1,990
Postpaid subscribers*
FY 20101H
FY 20111H
FY 20121H
Smart device trendsetter
7
1,5191,761
2,014
� Smart device penetration ↑
� Internal upward migration focus
259
Note: Smart devices refer mainly to devices using iPhone OS,
Android and Blackberry based platforms as well as dongle.
Smart device penetration
3G and 4G smart device
3G non-smart device
2G
444 325 195
1,043 877
800
408765 995
0
1,200
2,400
FY2010 1H FY2011 1H FY2011 1H
Hong K
ong a
nd M
acau
Postp
aid
Sub
’000
1,8951,967
1,990
FY 20101H
FY 20121H
FY 20111H
30%
49%
58%
0%
30%
60%
28%
47%
55%
0%
30%
60%
0
1,000
2,000
FY2010 1H FY2011 2H FY2012 1H
% to
3G
+4G
postp
aid
sub
Hong K
ong a
nd M
acau
Sm
art d
evic
e S
ub
’000
Smart device ownership
FY 20101H
FY 20121H
FY 20111H
HK only
HK + Macau
408
765
995
Blended Postpaid ARPU*
214
238
256
150
225
300
FY2010 1H FY2011 1H FY2012 1H
HK
$ / m
onth
FY 20101H
FY 20111H
FY 20121H
ARPU
� Blended postpaid ARPU ↑ 8%
8
3G+4G Postpaid ARPU*
222
245253
150
225
300
FY2010 1H FY2011 1H FY2012 1H
HK
$ / m
onth
FY 20101H
FY 20111H
FY 20121H
* Include HK and Macau
Churn
� Low and stable
9
Postpaid Churn*
1.7% 1.7%1.8%
0.0%
1.0%
2.0%
FY2010 1H FY2011 1H FY2012 1H
Perc
enta
ge (%
)
FY 20101H
FY 20111H
FY 20121H
* Include HK and Macau
10
Largest amount of available spectrum
2100
900
1800
2600*
2300
Frequency Band
Total available bandwidth: 144.4MHz* Shared through a JV under Genius Brand Limited
Support: 2G + 3GBandwidth: 26.6MHz
2G LTE23.2MHz
3G34.6MHz
TDD-LTE30.0MHz
FDD-LTE30.0MHz
11
• An additional layer on existing 3G network
• 4G coverage target to match 3G network by end of 2012
• 1800MHz band re-farm and TDD-LTE 2300MHz band rollout to follow
Unveil a new 4G era
Fixed-line
13
Reaching out to Asia and beyond
� Global connectivity
� International platform
14
Well-positioned in local carrier and business markets
Mobile Backhaul
• 4G-driven growth
Corporate & Business
• Finance & government focus
Cloud computing & Data centre
• Collaborate with leading ICT specialists
• World-class facilities
School
• Cloud support to educational institutions
15
Invest in consumer market
• Invest for long term
• Competition easing
• New broadband offerings
Profitability
Profitability
17
� Earnings upsurge by 15%
361
494
568
0
400
800
2010 1H 2011 1H 2012 1H
HK
$ m
FY 20101H
FY 20111H
FY 20121H
Net profit
7.50
10.25
11.79
0
5
10
15
2010 1H 2011 1H 2012 1HH
K c
ent
FY 20101H
FY 20111H
FY 20121H
Earnings per share
5.16
6.05
0.00
5.00
10.00
FY2011 1H FY2012 1H
HK
cents
FY 2011FY 2010
Dividend
18
� Solid 75% annual payout
+17%
Dividend per share
1 Total dividend per share being sum of interim and final dividend per share
FY 20111H
FY 20121H
Financial Overview
20
Financial Highlights
FY 2011 FY 20121H 1H
(HK$m) (HK$m)Turnover 6,018 6,730 Cost of inventories sold (1,792) (2,369) Staff costs (307) (346) Customer acquisition costs (569) (331) Depreciation and amortisation (561) (645) Other operating expenses (2,107) (2,238)
Operating profit 682 801 Interest income 2 5 Interest and other finance costs (57) (77) Share of results of jointly controlled entities 1 (2)
Profit before taxation 628 727 Taxation (28) (23)
Profit for the period 600 704
Attributable to:Shareholders of the Company 494 568 Non-controlling interests 106 136
600 704
Turnover – mobile business
21
� Service revenue sustainable growth
� Hardware revenue benefited from popularity of smart devices
Mobile service revenue Mobile hardware revenue
2,521
2,679 2,732
1,500
2,250
3,000
FY2010 1H FY2011 1H FY2012 1H
HK
$ m
FY 20101H
FY 20111H
FY 20121H
310
1,874
2,509
0
1,000
2,000
3,000
FY2010 1H FY2011 1H FY2012 1H
HK
$ m
FY 20101H
FY 20111H
FY 20121H
Quality customer base
22
1,5191,761
2,014
All percentages represent compound annual growth rate
1,188 953 768
1,519 2,014 2,449
0
2,000
4,000
FY2010 1H FY2011 1H FY2012 1H
’000
2,7072,967 3,217
3G+4G: +22%
HK Total Subscribers
FY 20101H
FY 20111H
FY 20121H
3G & 4G
2G
406 312 193
1,343 1,500 1,638
0
1,200
2,400
FY2010 1H FY2011 1H FY2012 1H
’000
1,8121,749 1,831
3G+4G: +9%
HK Postpaid Subscribers
FY 20101H
FY 20111H
FY 20121H
87 35 2
258 351 423
0
250
500
FY2010 1H FY2011 1H FY2012 1H
’000
386345
425
3G: +21%
Macau Total Subscribers
FY 20101H
FY 20111H
FY 20121H
3G: +11%
37 14 2
108 142 157
0
100
200
FY2010 1H FY2011 1H FY2012 1H
’000
156145 159
Macau Postpaid subscribers
FY 20101H
FY 20111H
FY 20121H
Turnover – mobile service revenue
23
FY 2011 1H
Carrier 48%
Corporate & Business 26%
Residential20%
FY 2012 1H
Total service revenue: HK$2,679m
Total service revenue: HK$2,732m
� 58% data revenue
Carrier [48]%
Residential[20]%
Others1
[6]%
Corporate &
Business [26]%
Local voice 28%
Roaming voice 14%
Roaming data 9%
Local data 49%
Total Data Revenue: 58%
Local voice
31%
Local data
45%
Roaming voice 17%
Total Data Revenue: 52%
Mobile data revenue
24
� Robust roaming data growth
Roaming data
142
189
249
0
150
300
FY2010 1H FY2011 1H FY2012 1H
HK
$ m
Local data
924
1,202
1,342
0
750
1,500
FY2010 1H FY2011 1H FY2012 1H
HK
$ m
FY 20101H
FY 20111H
FY 20121H
FY 20101H
FY 20111H
FY 20121H
+32%+21%
All percentages represent compound annual growth rate
Carrier 53%
Others1
5%
Residential 17%
Corporate & Business
25%
Carrier 51%
Others1
6%
Residential 18%
Corporate & Business 25%
Turnover - Fixed-line business
251 Others include revenue from interconnection charges and data centers
FY 2011 1H
FY 2012 1H
Total revenue: HK$1,653m
Total revenue: HK$1,725m
� Steady growth and cushion against volatility
26
Key cost items
1 Excluding revenue from sale of telecommunications hardware
Cost of inventories sold Staff costs
34.8%
7.6%
1,792
2,871
2,369
29.8%
38.9%35.2%
0%
20%
40%
60%
0
1,500
3,000
FY2011 1H FY2011 2H FY2012 1H
% to
turn
ove
r
HK
$ m
FY 20111H
FY 20112H
FY 20121H
Depreciation and amortisation
561 618 645
13.5% 14.3%15.3%
0%
10%
20%
30%
0
400
800
FY2011 1H FY2011 2H FY2012 1H
% to
turn
ove
r 1
HK
$ m
FY 20111H
FY 20112H
FY 20121H
307 339 346
7.4% 7.8% 8.2%
0%
5%
10%
15%
0
250
500
FY2011 1H FY2011 2H FY2012 1H
% to
turn
ove
r 1
HK
$ m
FY 20111H
FY 20112H
FY 20121H
Customer acquisition costs
569 587
331
13.7% 13.6%
7.8%
0%
10%
20%
30%
0
400
800
FY2011 1H FY2011 2H FY2012 1H
% to
turn
ove
r 1
HK
$ m
FY 20111H
FY 20112H
FY 20121H
27
Other operating expenses
� Cautious and well-controlled
1 Excluding revenue from sale of telecommunications hardware
65.0%
65.3% 64.9%
Other operating expenses
2,107 2,224 2,238
50.8% 51.4% 53.0%
0.0%
50.0%
100.0%
0
1,500
3,000
FY2011 1H FY2011 2H FY2012 1H
% to
turn
ove
r 1
HK
$ m
FY 20111H
FY 20112H
FY 20121H
28
Capex investment
1 Excluding revenue from sale of telecommunications hardware
Capex and % of service revenue (Mobile)
251 259 272
10.0% 9.7% 10.0%
-4%
4%
12%
20%
0
200
400
FY2010 1H FY2011 1H FY2012 1H
% to
servic
e re
venue
HK
$ m
15.5%
� Selective
- 2G refarm and TDD-LTE
- FTTH homepass
13.6%
Capex and % of service revenue
488 464
567
12.3%11.2%
13.4%
0%
8%
16%
24%
0
400
800
FY2010 1H FY2011 1H FY2012 1H
% to
servic
e re
venue
HK
$ m
FY 20101H
FY 20111H
FY 20121H
FY 20101H
FY 20111H
FY 20121H
Capex and % of service revenue (Fixed-line)
238205
295
14.6%12.4%
17.1%
0%
10%
20%
30%
0
200
400
FY2010 1H FY2011 1H FY2012 1H
% to
servic
e re
venue
HK
$ m
FY 20101H
FY 20111H
FY 20121H
Liquidity
29
� Strong FCF before spectrum acquisition
1 Free cashflow being cashflow from operating activities less cashflow
used in investing activities before payment of spectrum utilisation fee
Free cashflow (FCF) 1
862
1,084
803
0
600
1,200
FY2010 1H FY2011 1H FY2012 1H
HK
$ m
FY 20101H
FY 20121H
FY 20111H
Strong financial position
30
� Leverage ratio = 1.3
� Gearing ratio = 33%
� Refinancing completed
- HK$5.5b facility matured in
June 2015
Net debt
Net debt/ LTM EBITDA
3,709 3,671 3,551
0
2,000
4,000
6,000
FY2011 1H FY2011 2H FY2012 1H
HK
$ m
FY 20111H
FY 20112H
FY 20121H
0.0
1.0
2.0
3.0
FY2011 1H FY2011 2H FY2012 1H
1.6x 1.4x
FY 20111H
FY 20112H
FY 20121H
1.3x
Outlook
Connect to the Future
33
• Well-positioned in data era• Internal upward migration• Smart device penetration
Mobile Market
Leadership
Mobile
• Selective investment• 4G network expansion• 2G spectrum re-farm
Network Excellence
• Diversified and exclusive contents and applications• Innovative initiatives - 3iChat, SMS data usage alert• Largest number of retail outlets
Customer Focus
34
• Strengthen ties with international carriers • Build international interconnection platforms• 4G stimulates further mobile backhaul demand
Carrier &International
Market
Fixed-line
• Partner with prominent ICT leaders• Data centre and cloud computing focus
Corporate & Business Market
• Growing FTTH coverage• Increase internal upward migration
Residential Market
Q & A
Thank You
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