Pccw Limited · HKEX:8
Pccw — H1 2002 Earnings Presentation
28 slides from Pccw's earnings presentation, Sep 5, 2002
Slide 1: Results for the six months ended June 30, 2002
for the six months ended June 30, 2002
Slide 2: !" # " $ $" " " % & '(()* +, ( -./ $
!" # " $ $" " " % & '(()* +, ( -./ $ $ - " " 0 " " ,$0.", .", ." , .", % .", .", . - $% " " $- ( -1 ( 2 -" - 3 - 4+ / 5 6 ( -1 $ - 7+$/ ( -1 $ - 5 6 7+ / ( -1 $ - $ - 0 0 $ $ " 0 2 7+/ ( -1$ $ - $ - $ 7+/ #3 ,#3 . ( -188 # 3 83" ( 9-"88 $ ( -1$
Slide 3: Overview - Mr. Richard Li, Chairman & Chief Executive
Overview Mr. Richard Li Chairman & Chief Executive
Slide 4: ! (+17.2% y-o-y)
! (+17.2% y-o-y) ! ! !"y-o-y ! # $"y-o-y ! %&' ()* + $"y-o-y ! ' , ()*- ./+"" ! )* 0 , , 1"y-o-y ! 2 #3'2& 4#50 + ! #50 ( 3. 1
Slide 5: Delivering on Promises
Delivering on Promises Progress Achieved Improved Capital Structure Sharpened Efficiencies & Improved Margins Growth in Broadband & Business eSolutions =a PCCW Objectives Unchanged Debt Repayment Program on Track Continue to Improve Free Cash Flow Organic Growth Opportunities to Improve Top Line
Slide 6: Outlook
Outlook ¢ Free cash flow inclusive of Cyberport will rise significantly Se > over the next two years ° PCCW in shape to pay dividend in 24 months Healthy Free Cash Flow Provides Flexibility = PCCW
Slide 7: Executive Director & Group COO
Executive Director & Group COO
Slide 8: Profit Before Exceptional Improved 17% y-o-y
!" 1* # 2%2)3 !" ( EBITDA Margin 35% 33% 40% !"#$%&"! $%&"!!!"' ! '(!%)* *%(+, -. $) ,"/-01!,. - . Profit Before Exceptional Improved 17% y-o-y !" #$%&'( )* *)
Slide 9: # 1* # 2%2)3 !" ( )) ,",,)%( !"%, & ,! /! !*, ("4"
# 1* # 2%2)3 !" ( )) ,",,)%( !"%, & ,! /! !*, ("4" !"%, -. -. -. %! ( &&!4, & ,! /! -. - . - . /*5%4 ("6 !"% -. - . 1% ! " ! # ! $# % &' ( ) # " ' * + ## # *,- #' , - # #
Slide 10: Enhancing customer relationships, differentiating service, improving ARPU
$% ! 6 230 ! % 2 +34 '()*** +4 + + ! + (, 0 +1 22 ! - 5 5 5 enhancing customer relationships " " , , differentiating service " , 9 , improving ARPU " , 9 : % " % 7) 8,, ,%&9 (:; 78 01 43 20 !"', .# #"$%& ' 5 5 5 #( )% * % & ., / #
Slide 11: − ERP - Finance/ Accounting + HR systems − Data centralization & supporting infrastructure
$# & '() %! ( ! '(() ( 9: 78 ! '(() 9: * ! & − ERP - Finance/ Accounting + HR systems − Data centralization & supporting infrastructure + + + ! - ! 56;& !" #
Slide 12: EBITDA Margin Enhanced from 35% to 40% y-o-y
($*+ ! 1* # 2%2)3 !" ( )) ,",,)%( !"%, -"/(1. -. & ,! /! !*, - . - . -. %! ( /" !"%<4%!"6 !"% !"#$%&"! 1 = EBITDA Margin Enhanced from 35% to 40% y-o-y & + ) "", !$$! ( ) " !$$* !-* .((', / 0 (* " ( 1 2
Slide 13: Ongoing Programs for Operational & Productivity Improvements
# (!! & &, " 2 2%2 78 $ % . /, . 0, &## 22 4%!*,, "#,%&=/",, > /* =/", 1 /%,,!*'% +% !"#4%&&/!"(: -./01 , , *, ? !%+ /!""!: +% !"#&&"/"/: $" /*"+!*% #*% !!*' ,",, Ongoing Programs for Operational & Productivity Improvements 3 4
Slide 14: )* %&@%"!(:/%!%((+/%4 ", )* %&, (!,%& ,,%/" !, )* %&, (!,%& /%,%() ',"+ )*
)* %&@%"!(:/%!%((+/%4 ", )* %&, (!,%& ,,%/" !, )* %&, (!,%& /%,%() ',"+ )* %&, (!,%&97A,< ,,%/" !, ;< ! 5' # ' 2= : = 5> # # ?
Slide 15: Cash Flow Positive After Cyberport Investment
# !! " 1$B - . -. - . 1 ,*&(%C '&%1:'%!",!4! - . Cash Flow Positive After Cyberport Investment # , ! # ' ! '/
Slide 16: Executive Director & Group CFO
Executive Director & Group CFO
Slide 17: No Impact on Cash Flow
!-. /#0#1 ! $ ) ( ) ( 1%4'"+ 7 ( 4 4 4 7D) ' 7D = = = ! ' ( &)*+, ! 3&&45'0.%45*%&" ! /%&45 6& ( 7") ! -,$ & .( ( &)!/, No Impact on Cash Flow " *@ - " - ,- +A ' , !#!
Slide 18: On Current Earnings Trends Positive Equity within 2 years
2 (3 , 0:>%4!, 78 1 99 # $( (&/6 (' $%"'()"! " ,&''4 .&! ' /, /)'" % '' 5("5 8% *6' *6 # &! ") *+0 (12""3 ,&''4 .&! ")5 %! ( ,,!, # +42 '%"'( $( (5 %")""" 9 *: 9 ;: # $%&'(") *+('&$&,( " 8%")""" 9': 9'6: − ' "804A − - "8BA %! ((" '"("!", - . - . # &! -&( "").""/0 !! ' !&( "(" )* *%(+,A 3 "!: -. - .
Slide 19: BB 2C? B
%4 , $(**' 78 BB ! " . 3 204 ! + 4, 2C? B ! % $*'- $$ +04 4 − 5*#8( 7"). &&%' − 5* #8(.<""(&%; !$$! !$$2 !$$# !$$? !$$B !$$C !$$7 !$$: !$$ !$ < !$2 − 5* #'8(.<""(&%6 8(**( − 3"&45'# 7"). && "%&45 6# 7") 0 78 7"&" 23! ?# !:$ ! +567 :$ $$$ $$ B# ! #?$ !22 !?$ !$$! !$$2 !$$# !$$? !$$B !$$C !$$7 !$$: !$
Slide 20: B BC7 B 27 BB
" 78 $ 78 4 BBC7 B27 ??# BB 24 2 +2 ++*+"$"! /&( / 7+ $9 $+ $+9 03 ?7 14 ? 40 #7 2 27 +2 +2 !C !! , +$ +$, +$! , +$ +$, +$! , +$ +$, +$! , +$ +$, +$! ++*+"$"! /&( / 7+ ++*+"$"! /&( / 7+ #, # , ,CD"9 , #! ,' ,-#D"9 # #' + 5> 9' 2" 1 #'
Slide 21: After Cyberport Investment Peaks PCCW's Cash Flow Steps Up Significantly
#,%5&& " 8(**( 78 8)E > ! : .(**; ! #1 & After Cyberport Investment Peaks (2002) PCCW’s Cash Flow Steps Up Significantly
Slide 22: Executive Director & Group COO
Executive Director & Group COO
Slide 23: , $ # , , 1$ # $ ( #, ! - - !
6 , 0 $ # , , 1$ # $ ( #, 2 3 ! - 0 - ! ! ; 0 - ! 3 $ ! - 88> ! $ 0 ! '0 - ?@A 0 >- ! ' 0 2 - ! (-$ = % $ 88
Slide 24: ! ! ( $ B ! ! C $- $ ! 3- - !
! 0 ! ( $ B ! ! C $- $ ! 3- - ! D % % 0 - 0 ! ( B #" # ! @;& 0 ! 3 +$ (-$ / 0 - ! * - ! $ ! ( ! $ ! $ - 0 0
Slide 25: Appendix
Appendix 24
Slide 26: ,# ! +), )$ %$ ,&- &&& &*& ' )&& $ *)* &&& :&
,# ! 78 8 8 9 9 +), )$ %$ ,&- &&& &*& ' )&& $ *)* &&& :& $;!"$$ $" $( ($8 ( < < '" $ "$)"' %& ' (!"$$ $ < < '") ()'""% '&( "$ 9 = &, ,"$($8 ( 1&' ")' $!($")>68&$$",?8&/,"$"!$2$ / &' $ 9 @"$$"/ $%"$&!") ( ' $( *+ 9 9 < < '") (2 )"' (&A&( " 9 9 &A&( " ! 9 9 '") (;!"$$&)( '(&A&( " < < 5 "' (4 ( ' $($ <
Slide 27: & "# !"# "#! "#! "# !"# )*### /0 * ,3,/ ,-./ ,-,1 +
4 & "# !"# "#! "#! 78 "# !"# )*### /0 2 1 1 1 * ,3,/ ,-./ ,-,1 + 0/55 0/,1 ,123 +, - 3 3 3 * 4" 5.6 526 506 + 176 126 1/6 ! "/04 $ ! %( '"#-( $ ! "#$ .&) !,! "/0- $! 1 1 ! ! "#$ % " # &'() ( %& '()! ! ' "*$ $!(# $!! $& & '( +, ! ' "*$ #& %&' %&% +. /&0 /0 /'0 , !#, # ! ## # *,- #' , - # #
Slide 28: & , !9 / ! "(' ,",,'% +' +B )) ,",,)%( !"%, & ,!
4 & , !9 / 99 ! "(' ,",,'% +' +B )) ,",,)%( !"%, & ,! /! !*, )<)%( !"%, %! ( ,",,'% +' + %! ( A,!/ .%&'(9( ;( % F %! ( -. ( !/ (1 .((', " -*