Pccw Limited · HKEX:8
Pccw — Investor Presentation (September 2003)
20 slides from Pccw's investor presentation, Sep 24, 2003
Slide 1: Investors Forum
‘ Investors Forum September 24, 2003
Slide 2: Presenters
PRESENTERS Jack So Deputy Chairman & Group Managing Director OPE STR RATION Alex Arena ATE GIC AL & Executive Director & REV Group Chief Financial Officer IEW 1
Slide 3: PCCW is Focused on Creating Long-Term Value
PCCW is Focused on Creating Long-Term Value 2000 2001 2002 2003 2004 2005 2006 GOALS “A” rating at HKTC Integrate HKTC and Strengthen Substantial deleveraging Capital Structure Dividends Top quartile operating PCCW metrics HKT Restructure “Best In Class” opex and capex Merger Operations
Slide 4: We Have Significantly Strengthened Our Balance Sheet
We Have Significantly Strengthened Our Balance Sheet (US$m) $1,154 $1,000 $956 $450 $481 $54 $385 $456 $250 $1,100 $96 $500 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2031 (See appendix for detailed legend) Debt Profile Recent Events No short-term debt HKTC ratings: Average maturit
Slide 5: Improving Credit Fundamentals
Improving Credit Fundamentals 7.8 Debt/EBITDA(1) 6.5 Net Debt 5.7 5.1 5.6 4.4 (US$ m) 4.1 3.4 3.4 3.4 3.1 2.0 6,000 5,176 5,039 5,000 Adjusted Adjusted 4,430 H1’03(3) H1’03(3) H1’01 H2’01 H1’02 H2’02 H1’03 H1’01 H2’01 H1’02 H2’02 H1’03 901 1319 4,220 4,280 639 4,000 592 3,888 1304 3,000 EBITDA/Inter
Slide 6: Solid Results: Margins Continue to Improve
Solid Results: Margins Continue to Improve Group EBITDA Margin(1) TSS EBITDA Margin 55% 51% 50% 47% 49% 50% 46% 50% 42% 45% 45% 40% 40% 40% H1:01 H2:01 H1:02 H2:02 H1:03 40% 35% 35% 33% Group Operating Costs 30% 500 496 492 453 450 406 409 25% H1:01 H2:01 H1:02 H2:02 H1:03 350 250 H1:01 H2:01 H1:02
Slide 7: Group Cash Flow
Group Cash Flow (US$m) H1’02 H1’03 127 124 57 1 -67 -126 Core Operating Cash Flow* Investment In Cyberport Operating Cash Flow After Investment In Cyberport We Expect Cyberport To Be On Track To Return Cash *Before pre-sales proceeds from Residence Bel-Air received, net of monies applied to construc
Slide 8: 2003 - Operating Strategy
2003 - Operating Strategy Defend Innovate Grow Aggressively defend New generation New products & services market share fixed-line Fixed-line Premium pricing New value propositions Broadband Value differentiation Convergent platforms New products Regulatory initiatives Broadba
Slide 9: Innovate: New Generation Fixed Line Launch
Innovate New Generation Fixed Line Launch….. Fixed Line SMS Personal Assistant Auto Receptionist Our Customers Sign Up for 415,000 Lines in Just 2 Months 8
Slide 10: New Generation Fixed-Line Services Have Dramatically Exceeded All of Our Targets
Innovate New Generation of Fixed-Line Services Have Dramatically Exceeded All of Our Targets New Generation 233,000 Residential Lines Fixed-Line Success Activation rate above 70% Winback up 125% Information popular Over 80% are returning (Lottery, News, Weather) PCCW customers 182,000 Busine
Slide 11: Solid Results: Broadband Growth Has Continued
Solid Results: Broadband Growth Has Continued at Above 10,000 Lines per Month 629 Key Results (‘000) 559 487 460 Market share of new lines greater 424 305 402 385 than 50% 311 231 Premium ARPUs holding and strong Annual customer growth over 20% H1:01 H2:01 H1:02 H2:02 H1:03 Total Broadband Acc
Slide 12: A Totally New Viewing Experience Is Here
A Totally New Viewing Experience Is Here
Slide 13: Natural Progression to Maximize Our Assets
Natural Progression to Maximize Our Assets 480,000 residential Broadband customers today 95% geographic Broadband coverage Award winning customer support 21 retail outlets 12
Slide 14: PCCW Listened: Customer Hot Buttons
PCCW Listened: Customer Hot Buttons Flexible pricing Free channels Free installation Subscription via Wide selection Award winning remote control of content customer service 13
Slide 15: Innovative Technology
Innovative Technology Digital Decoder One Link to the Home World first technology Modem Patent applied for Subscription online View billing on TV TV Protects against piracy Use Internet and NOW Broadband TV simultaneously Home PC HDTV1 & surround sound upgradeable (1)High Definition TV
Slide 16: Compelling Channels and Growing
23 Compelling Channels and Growing Unique family entertainment First time channels in Asia World leading content providers 15
Slide 17: Latest Addition - Sports
Latest Addition - Sports Football • French League • Spanish FA Cup • Italian FA Cup • German FA Cup • UEFA Cup Games Will continue to add quality content and respond to customer needs 16
Slide 18: Flexible Pricing Structure
Flexible Pricing Structure No installation charges Digital Decoder with service Only pay for what you want 1 Free access for Netvigator customers (1) For 12 month term plan 17
Slide 19: Simplicity of Use
Simplicity of Use Subscription • Subscribe on screen • Select channels on screen • Choice of plans • Preview before subscribe 18
Slide 20: PCCW Continues to Set Aggressive Targets
PCCW Continues to Set Aggressive Targets • 20,000 plus subscribers per month • Major new revenue stream Convergent Services • Broadband and Pay TV market to expand • PCCW broadband market New Generation Fixed Line Services share to increase July August A further step in providing an integrated and c