Pccw Limited · HKEX:8

Pccw — SCB Roundtable Luncheon (December 2014)

16 slides from Pccw's conference presentation, Dec 3, 2014

1. Slide 1: Data Center Development Trend in Hong Kong

   Data Center Development Trend in Hong Kong 3-12-2014 Copyright 2013 PCCW Solutions Ltd. All rights reserved.

2. Slide 2: Agenda

   Agenda Overall trend of HK Data Center Development HK as a prime location for data center development Technological trend and the demand for data center HK as a cross-border connector and e-commerce platform Top industrial segments for data center usage in HK Key takeaways 2 Copyright 2013 PCCW Solu

3. Slide 3: Overall trend of HK Data Center Development

   Overall trend of HK Data Center Development • High growth in HK Data Center Market HK data center market is forecasted to grow at a compounded annual growth rate of 15.3%, reaching US$802.6 million in 2019 (Source: Hong Kong To Remain as a Key Data Center Market in Asia Pacific, Frost & Sullivan, 20

4. Slide 4: Hong Kong – Premium Data Center Environment

   Hong Kong – Premium Data Center Environment Index INT’L Ease of Competitive edges of Hong Kong 2013 Energy score Country Band- doing Rank st Cost 1 = 100 width business Ranked 6th overall in Leading position in global APAC 1 100.00 US 3 1 3 2 89.53 UK 21 2 5 3 82.29 SWEDEN 15 10 10 Safest location i

5. Slide 5: Hong Kong – as an ideal regional data center hub

   Hong Kong – as an ideal regional data center hub Advantages for HK to be as a Data Center Hub Political Governmental & Legal Commercial Economic & Solutions • Supportive policy: Digital 21 Strategy • Favorable land policies for ICT ▪ • Free Free trade trade && free free market market • Aims to devel

6. Slide 6: Hong Kong – Mature Legal System (Common Law)

   Hong Kong – Mature Legal System (Common Law) Effective data protection system  The Personal Data (Privacy) Ordinance (PDPO) ensures data protection and safeguards the free flow of personal data to Hong Kong from countries that have already implemented data protection laws without restrictions  Fre

7. Slide 7: Data Center as an Enabler and a Cloud Hub

   Data Center as an Enabler and a Cloud Hub Features: INTERCONNECTION between service providers and end users Cloud Neutral Multiple Cloud Exchange Carrier Neutral Home for end users, cloud service providers and IT service hubs AS AN ENABLER Data center as a tool for business Support Data Center Conne

8. Slide 8: Digital Transformation – as key driver for data center growth

   Digital Transformation – as key driver for data center growth SoLoMo It is all about data generation, driven by (Social Network, technologies for digital transformation, Location, in turn creating higher demand for data Mobility) storage/ data center Cloud • CAGR over 2013-2017: 23.5% Computing (Sou

9. Slide 9: Enabling the cross-border data flows

   Enabling the cross-border data flows Cross-border Data Center Infrastructure & Inter-connectivity Multiple Data Centers in Different Locations Multiple Local & Remote Disaster Recovery Sites Cross-border & Inner China Dedicated & VPN Connection with Resilience World↔ Hong Kong ↔ China • Hong Kong as

10. Slide 10: Application on E-commerce (PRC-HK)

    Application on E-commerce (PRC-HK) Beijing Jiangsu Shanghai Zhejiang Hong Kong Source: paypal Fujian Guangdong 9.6% Beijing 19% Source: ebay 2014 Example of e-commerce in PRC - Total GMV settled through Alipay was RMB 57.1B - Total mobile GMV settled through Alipay was 2012 2016 approximately RMB 24

11. Slide 11: Data Center Growth – User spending by industry (Hong Kong Market)

    Data Center Growth – User spending by industry (Hong Kong Market) Rank Segments Data Center spending Growth rate 1st BFSI US$307M ↑3.76% 2nd CMT US$165M ↑2.48% 3rd Government US$70M ↑2.94% Source: Gartner (July 2014) 2015: Data Center End User Spending Figures (HK) Travel & - Total market size: US$7

12. Slide 12: Perspective of BFSI industry end-users

    Perspective of BFSI industry end-users Trend for BFSI industry • Increasing use of online platform by retail banks • High number of transactions is shifting from branches to online banking • Online Banking investment will get high level of attention – 6.4% growth in 2014, reaching US$10 billion • On

13. Slide 13: Application on E-commerce (PRC-HK-World)

    Application on E-commerce (PRC-HK-World) <Cross-border data flow between PRC-HK-World> HK works as a stepping stone for data in-and-out from China to the world Top 5 Export Destination of Greater China Cross-border ecommerce participants (2013) 76,000,000 Top 5 countries' demand to China (2013) 11bi

14. Slide 14: ITIL model-based Data Center Services

    ITIL model-based Data Center Services Comprehensive service offerings with full IT solution portfolio Applications (Oracle, SAP) Full range of Cloud Service Managed Services (Cloud-Computing) Business Cross Border Disaster Powerb@se Value-added Recovery as a & Network Recovery Data Centre Service Se

15. Slide 15: Key takeaways

    Key takeaways Continuous growth for data center #1 development and competitive edges in Hong Kong Digital transformation driving for data #2 center growth E-commerce as a major driver for data #3 center growth 15 Copyright 2013 PCCW Solutions Ltd. All rights reserved.

16. Slide 16: Copyright 2013 PCCW Solutions Ltd. All rights reserved.

    16 Copyright 2013 PCCW Solutions Ltd. All rights reserved.

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