Pccw Limited · HKEX:8
Pccw — Debt Investor Presentation (November 2002)
16 slides from Pccw's debt investor presentation, November 2002
Slide 1: Salomon Smith Barney Asian Fixed Income Investor Tour
Salomon Smith Barney Asian Fixed Income Investor Tour November 2002
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements as defined in Section 21E of the U.S. Securities Exchange Act of 1934, as amended. These forward-looking statements are not historical facts. Rather, the forward-looking statements are based on the current beliefs, assu
Slide 3: Introduction
Introduction Ÿ Leading IT&T provider in Greater China Ÿ Balance sheet is secure Ÿ Recent upgrade in outlook from S&P Ÿ Core Telecom business continues to generate strong cash flow Ÿ Anticipate acceleration of Group free cash flow generation Ÿ Growth areas of broadband and IT services Ÿ Continue to d
Slide 4: Company Structure
Company Structure Consolidated (1), (2) Cash US$ 1.3 Bn Group Debt US$ 5.5 Bn Value ValueAdded Added TSS TSS Reach Reach Infrastructure Infrastructure Non NonCore Core Services Services Business eSolutions/ IDC 50% Properties Ventures HKTC HKTC Internet Services Cyberport M1 Rated Baa1/BBB Cash (1),
Slide 5: Enhance Business Performance
Enhance Business Performance Broadband Access Lines Top Line 487 Broadband (‘000s) 402 282 305 Ÿ 60% y-o-y growth in broadband access lines Ÿ Retail consumer broadband Internet net adds of 12,000 per month 2000 1H01 2H01 1H02 Ÿ VAS to differentiate services and maintain ARPU SI Revenue (US$ million)
Slide 6: Managed Debt Profile
Managed Debt Profile September 2002 Ÿ 17% y-o-y reduction of total debt at Interim 2002 Total Debt US$5.5 Bn (1), (2) Ÿ First repayment due 2005 (US$million) Ÿ Current weighted average maturity 1,541 1,290 - nearly 7 years Ÿ Committed to further de-leverage in 190 1,000 1,100 641 (2) 450 next 5 year
Slide 7: Expected Cyberport Cash Flow
Expected Cyberport Cash Flow (Volume) Primary Market Transactions (US$ million) 250 + 35,000 150 + 150 + 100 + 30,000 25,000 -54 20,000 -162 -100 to -125 15,000 -307 10,000 5,000 2000 2001 2002F 2003F 2004F 2005F 2006F 2007F - 1996 1997 1998 1999 2000 2001 2002* Annual average: 22,771 units * estima
Slide 8: Outlook
Outlook Ÿ Tough economic environment - anticipate to continue Top Line Ÿ Continue to focus on core telecom and broadband businesses - retention & growth Ÿ Continue focus on SI and Greater China opportunities Ÿ Full year flat to slightly down Ÿ Continue to review operational efficiencies and producti
Slide 9: Q&A
Q&A
Slide 10: Appendix
Appendix
Slide 11: Further Debt Reduction & Improving Credit Fundamentals
Further Debt Reduction & Improving Credit Fundamentals Cash(1) (US$ million) Gross Debt (US$ million) 1,502 6,678 6,138 5,541 1,099 1,111 4,700 4,140 4,115 425 420 324 Jun-01 Dec-01 Jun-02 Jun-01 Dec-01 Jun-02 PCCW Consolidated HKTC (3) Debt/ EBITDA(2) EBITDA/ Interest(4) 7.8 5.8 6.5 5.1 5.7 4.8 3.8
Slide 12: Group Results - Half Year 2002
Group Results - Half Year 2002 (US$ million) Change 1H01 2H01 1H02 1H02 YoY Sequential Revenue 1,450 1,365 1,308 -9.8% -4.2% EBITDA (1) 501 447 530 +5.6% +18.5% EBITDA Margin 35% 33% 40% Operating Profit (1) 336 276 349 +3.9% +26.6% Profit Attributable to Shareholders - Before Exceptional Loss from
Slide 13: Solid Core Revenue
Solid Core Revenue (US$ million) Change 1H02 1H02 1H01 2H01 YoY Sequential TSS (1) 1,280 1,262 1,167 -8.8% -7.5% Business eSolutions (1) 126 122 146 +15.8% +20.2% Infrastructure 92 83 40 -56.9% -51.9% Others (2) 34 26 47 +37.8% +76.6% Eliminations (1) (82) (128) (92) Total Revenue 1,450 1,365 1,308
Slide 14: Improved EBITDA and Operating Profit
Improved EBITDA and Operating Profit (US$ million) Change EBITDA 1H01 2H01 1H02 1H02 YoY Sequential TSS (1) 607 579 575 -5.3% -0.6% Business eSolutions (incl. IDC)(1) 9 (1) 16 +81.2% - Infrastructure 40 33 36 -10.1% +8.9% Others (2) (155) (164) (97) +37.0% +40.6% Total EBITDA(3) 501 447 530 +5.6% +1
Slide 15: Metrics
Metrics TSS Revenue (1) TSS Operating Drivers 6 months period ended 1H 01 2H 01 1H02 1H02 (US$ million) 1H 01 2H 01 1H02 1H02 Local Telephony ('000) Exchange lines in service 3,598 3,489 3,354 Local Telephony Services 497 468 449 Business lines 1,510 1,470 1,419 (Direct Exchange Lines, Residential l
Slide 16: Metrics
Metrics Business eSolutions (incl. IDC) Headcount - as at Jun 2002 1H01 2H01 1H02 1H02 Dec 01 Jun Jun 02 02 Retail business broadband (‘000) TSS 11,366 10,443 26.9 36.4 44.2 Business eSolutions 1,392 1,322 (US$ million) Infrastructure 307 343 Revenue Others (2) 1,518 1,373 SI & eSolutions (1) 67 95