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1 August 2011
Hutchison Telecommunications Hong Kong Holdings Limited (Stock Code: 215)
2011 Interim Results
1
DisclaimerThese 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 management’sbeliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates and projections, and youshould not place undue reliance on them. Forward-looking statements speak only as of the date they are made, and HTHKH undertake noobligation to update publicly any of them in light of new information or future events. Forward-looking statements involve inherent risks,uncertainties and assumptions. HTHKH caution you that if these risks or uncertainties ever materialize or the assumptions prove incorrect, or ifa number of important factors occur or do not occur, HTHKH actual results may differ materially from those expressed or implied in anyforward-looking statement.
While non-generally accepted accounting principles (GAAP) measures such as EBITDA (earnings before interest, taxation, depreciation andamortization) are often used by companies as an indicator of operating performance, they are not expressly permitted measures under theGAAP or the International Financial Reporting Standards (IFRS) and may not be comparable to similarly titled measures for other companies.Accordingly, such non-GAAP measures should not be considered as an alternative to operating income as an indicator of the operatingperformance of HTHKH, and its subsidiaries or as an alternative to cash flows from operating activities as a measure of liquidity. The use ofnon-GAAP measures is provided solely to enhance the overall understanding of the current financial performance of HTHKH, and itssubsidiaries. Additionally, because HTHKH has historically reported certain non-GAAP results to investors, HTHKH considers the inclusion ofnon-GAAP measures provides consistency in its financial reporting.
Business Performance
HighlightsHoH Growth
� HK$ 6,018m 41%
� HK$ 682m 25%
Consolidated turnover
� HK$ 494m 37%
� 5.16 HK cents 55%
� HK$ 1,243m 16%Consolidated EBITDA
Consolidated EBIT
Net profit 1
Interim dividend per share
3
1 Net profit attributable to shareholders
Turnover
Handset revenue
Service revenue
FMIC and one off revenue
Other FL revenue1 Excluding FMIC and one off revenue4
1,630 1,653
2,3312,521
2,679
316 310
1,874
0
1,000
2,000
3,000
09 1H 10 1H 11 1H
HK
$ m
2,3312,521
2,679
0
3,500
7,000
09 1H 10 1H 11 1HH
K$ m 4,097 4,283
6,018
1,594
44
0
1,000
2,000
09 1H 10 1H 11 1H
HK
$ m
1,623 1,630 1,653
Consolidated turnover
Mobile business turnover Fixed-line business turnover
Mobile
6
AMPS CDMA
GSM 900
Dual-band
GPRS
WCDMAUMTS
HSDPATurbo 3G
IS95B
1G Analogue
2.5G Packet Data
3G
2G Digital
3.5G
GSM 1800
2004FIRST in HK
3G/UMTS network
1998Asia’s FIRST
Dualband
GSM/PCS
network
2000FIRST in HK
CDMA IS95B
(64Kbps)
2002FIRST in Asia
Blackberry
1995World’s
FIRST
CDMA network
2005FIRST in HK
3G coverage in
MTR and tunnels
2006FIRST in HK
HSDPA network
1983 1998 2000 20041995 200920062002 2005 2007 20081988
1984HTCL
AMPS network
4G
LTE
2010
20103ree Broadband 2008
FIRST in
Greater China
iPhone 3G
2009FIRST in HK and
Macau
iPhone 3GS
ACQUIREDLTE spectrum
Setting the trend of mobile development
77Actual Forecast
Traffic Proportion in 3G Network
0%
20%
40%
60%
80%
100%
06' 07' 08' 09' 10' 11' 12' 13'
Data Usage (Gbyte)
New Data Era
Da
ta
Ja
n-0
8
X 100 times
Vo
iceJ
an
-09
Ja
n-1
0
Ja
n-1
1
88
Far sighted capacity planning� Own a large pool of bandwidth
� Increase capacity through- “Re-farming” of 2G spectrum
- Rollout of the newly acquired 900MHz band
- Launch of LTE in late 2011
Frequency Band Bandwidth 2G 3G LTE
900 26.6 MHz
1800 23.2 MHz
2100 34.6 MHz
2600 30.0 MHz*
Total 114.4 MHz** Shared with PCCW through a 50:50 JV under Genius Brand Limited
����
����
����
����
����
����
9
Clear market leadership
� Largest Hong Kong subscriber base in which 3G takes up 68%
� ~50% 3G postpaid subscribers are smartphone and dongle users
3G
2G
Total: + 10%3G: + 22%
HK subscribers
1,5191,761
2,014
Total: + 4%3G: + 9%
1,089 1,202 1,188 1,074 953
1,357 1,428 1,519
1,761 2,014
0
1,000
2,000
3,000
09 1H 09 2H 10 1H 10 2H 11 1H
‘000
2,446 2,6302,707 2,835 2,967
409 407 406 379 312
1,274 1,309 1,3431,407
1,500
0
1,000
2,000
09 1H 09 2H 10 1H 10 2H 11 1H
‘000
1,683 1,716 1,749 1,786 1,812
All percentages represent compound annual growth rate
HK postpaid subscribers
10
ARPU and Churn
� Growing ARPU
� Stable Churn at 1.7%
3G
Blended
HK postpaid ARPU Postpaid Churn
201 211 213225 238
209 218 225 240 251
0
90
180
270
09 1H 09 2H 10 1H 10 2H 11 1H
HK
$ / m
onth
1.8%1.7% 1.7%
1.8%1.7%
1.0%
1.5%
2.0%
09 1H 09 2H 10 1H 10 2H 11 1HPerc
enta
ge (%
)
Fixed-line
12
Local network coverage
� Most extensive fibre optic network in HK
� Circles the world for 25 times
� Connects 1.5m+ homepass
� Offers 1GB broadband services
� Serves 70%+ mobile cell sites in HK
� Close to 4,000 commercial buildings
13
Global network reach
� Asia, US, Europe, Middle East and Africa
� Serving international telecom operators, ISPs and MNCs
� Full range of offerings
Profitability
15
Profitability
� Earnings upsurge
+37%
Net Profit
0
250
500
10 1H 11 1H
HK
$ m
361
494
16
Dividend
� Strong YoY dividend growth
� Target 75% annual payout Dividend per share
0
2
4
6
10 1H 11 1H
HK
cents 3.32
+55%
5.16
Financial Overview
18
Financial Highlights
1H 2010 1H 2011 (HK$m) (HK$m)
Turnover 4,283 6,018 Cost of inventories sold (298) (1,792) Staff costs (314) (307) Depreciation and amortisation (532) (561) Other operating expenses (2,595) (2,676)
Operating profit 544 628 Interest income 2 2 Interest and other finance costs (64) (57) Share of results of jointly controlled entities (21) 1
Profit before taxation 461 628 Taxation (35) (28)
Profit for the period 426 600
Attributable to:Shareholders of the Company 361 494 Non-controlling interests 65 106
426 600
19
Turnover – mobile business
� Steady growth in recurring service revenue and handset sales
Mobile Service Revenue Mobile Handset Revenue
1,500
2,250
3,000
10 1H 10 2H 11 1H
HK
$ m
2,5212,637
2,679
6%
0
500
1,000
1,500
2,000
10 1H 10 2H 11 1H
HK
$ m
310
1,482
1,874
5 times
20
Turnover – mobile service revenue
1 Includes only mobile service revenue
10 1H
Carrier 48%
Corporate & Business
26%
Residential20%
11 1H
Total: HK$2,521m1 Total: HK$2,679m1
� 52% data revenue
Carrier [48]%
Residential[20]%
Others1
[6]%
Corporate &
Business [26]%
Local voice 31%
Roaming – voice 17%
Local data 45%
Total Data: 52%
Local voice
39%
Local data
37%
Roaming - voice 18%
Total Data: 43%
21
Mobile – data growth
� Robust data revenue growth from:
- Smartphone popularity
- Roaming data day pass subscriptions
Local Data Roaming Data
0
700
1,400
10 1H 11 1H
HK
$ m
924
1,202
0
100
200
10 1H 11 1H
HK
$ m
142
189+ 30%+ 33%
22
Turnover - Fixed-line business
1 Others include revenue from interconnection charges and data centers
10 1H
Carrier 48%
Corporate & Business
26%
Residential20%
Others1
6%
11 1H
Total: HK$1,630m Total: HK$1,653m
� Strong presence in Carrier and Corporate markets
Carrier [48]%
Residential[20]%
Others1
[6]%
Corporate &
Business [26]%
Carrier 51%
Others1
6%
Residential 18%
Corporate & Business
25%
Carrier 48%
Others1
6%
Residential 20%
Corporate & Business
26%
23
Key cost items
1 Excluding revenue from sale of telecommunications products
Cost of inventories sold
Staff costsDepreciation and amortisation
0%
10%
20%
30%
40%
0
600
1,200
1,800
10 1H 10 2H 11 1H
% to
turn
ove
r
HK
$ m
7.0%
26.4%
29.8%
0%
10%
20%
30%
0
400
800
10 1H 10 2H 11 1H
% to
turn
ove
r 1
HK
$ m
13.4% 13.5% 13.5%
0%
5%
10%
15%
0
250
500
10 1H 10 2H 11 1H
% to
turn
ove
r 1
HK
$ m
298
1,478
1,792
532 555 561
7.9% 8.1%7.4%
314332
307
24
Other operating expenses
� Cautious cost management
� Reduced to below 65% of service revenue
1 Excluding revenue from sale of telecommunications products
65.0%
65.3% 64.9%
Other operating expenses
0%
50%
100%
0
1,500
3,000
10 1H 10 2H 11 1H
% to
turn
ove
r 1
HK
$ m
2,5952,669 2,676
65.3% 64.9% 64.6%
25
Capex investment
1 Excluding revenue from sale of telecommunications products
Capex and % of service revenue (Fixed-line)Capex and % of service revenue (Mobile)
0%
6%
12%
18%
0
200
400
10 1H 10 2H 11 1H
% to
turn
ove
r 1
HK
$ m
10.0% 9.7% 9.7%
0%
8%
16%
24%
32%
40%
0
250
500
10 1H 10 2H 11 1H
% to
turn
ove
r
HK
$ m
Capex and % of service revenue
0%
6%
12%
18%
24%
0
400
800
10 1H 10 2H 11 1H
% to
turn
ove
r 1
HK
$ m
12.3%15.3%
30.0%488
631
464
251 256 259
14.6%
22.6%
12.4%
238
375
205
� Continued investment
� Mainly revenue driven
11.2%
26
Liquidity
� 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
0
400
800
1,200
09 1H 10 1H 11 1H
HK
$ m
462
862
1,084
65.3%
+ 53%2
2 Percentage represents compound annual growth rate
27
Strong financial position
� Leverage ratio = 1.6
� Gearing ratio = 37%
� Undrawn credit facility of
HK$1 billion
Net Debt
Net Debt/ LTM EBITDA
0
2,000
4,000
6,000
10 1H 10 2H 11 1H
HK
$ m
3,529 3,3863,709
0.0
1.0
2.0
3.0
4.0
10 1H 10 2H 11 1H
HK
$ m
1.7x 1.5x 1.6x
Outlook
Outlook
Sustained Growth
Value Creation
30
Mobile
Demand for better quality
Leading mobile market
Enriching user experience
Leading mobile market
- Full range of smartphone offerings ���� stimulate more data usage
- Encourage internal upward migration ���� ARPU uplift
Enriching user experience- New mobile broadband outlets
- Increase VAS and bundled offers promotion
Enhancing network capability
- Increase data capacity by:
i. Re-farm of 2G spectrum
ii. Rollout newly acquired 900MHz band
iii. Launch LTE in late 2011
31
Fixed-line
Customer segmentation
Demand for high performance
# 1 Backhaul market# 1 Banking & finance sector# 1 Public & school sector
Pursuing broadband performance
Extending global reach
#1 Backhaul market
#1 Banking & finance sector
- Maintain market leadership
- Solution-based offerings
Pursuing broadband excellence
- Roll out GPON & GAN
- Increase FTTH coverage and penetration in
residential market
- Cloud computing focus
Extending global reach- Global footprint extended to Asia, EMEA, US,
Africa
- Strengthen cooperation with regional carriers
Q & A
Thank You