apt satellite holdings limited stock code: (1045) 2014 annual results

APT Satellite Holdings Limited Stock code: (1045)

2014 Annual Results

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Table of Contents

1. Financial Highlights

2. Satellite Fleet

3. Business Prospects

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FINANCIAL HIGHLIGHTS2014 Annual Results

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Financial Highlights

• Turnover increased by 9.6% to HK$1,247.5 million in 2014

• EBITDA increased by 7.4% to HK957.4 million in 2014

• Profit attributable to equity shareholders declined by 6.9% to HK$508.0 million in 2014

• Excluding the impact of unrealized fair value losses on financial instrument, adjusted profit after taxation increased by 8.3% to HK$553.6 million in 2014

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Annual Results

2012 2013 20140

200

400

600

800

1000

1200

1400

900.6

1138.1

1247.5

TurnoverHK$ million

+ 9.6%

2012 2013 20140

100

200

300

400

500

600

354.4

545.5508

Profit Attributable to Equity Shareholders

HK$ million

- 6.9%

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Consolidated Statement of Profit or Loss

(HK$ million) 2013 2014 % Change

Turnover 1,138.1 1,247.5 9.6%

Cost of Services (408.1) (467.7) 14.6%

Gross Profit 730.0 779.8 6.8%

Other Net Income 43.1 27.7 (35.7%)

Valuation Gain on Investment Property 1.6 0.3 (75.1%)

Administrative Expenses (133.6) (118.4) (11.4%)

Profit from operations 641.1 689.4 7.6%

Fair Value Changes on Financial Instruments 34.5 (45.6) -

Financial Costs (27.9) (25.1) (10.0%)

Profit Before Taxation 647.7 618.7 (4.5%)

Income Tax (102.2) (110.7) 8.5%

Profit Attributable to Equity Shareholders 545.5 508.0 (6.9%)

Basic & Diluted Earnings per share (HK$ cents) 87.7 cents 81.7cents (6.9%)

Turnover Breakdown

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32%

67%

1%

Broadcasting TelecomOthers

Broadcasting

Telecom

Others10%

22%

43%

25%

Hong Kong Greater ChinaSoutheast Asia Others

Greater China

Others

Hong Kong

Southeast Asia

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Expenses

(HK$ million) 2013 2014 % Change

Turnover 1,138.1 1,247.5 9.6%

Cost of Services (408.1) (467.7) 14.6%

% of Turnover 35.9% 37.5% -

Administrative Expenses (133.6) (118.4) (11.4%)

% of Turnover 11.7% 9.5% -

Financial Costs （ 27.9） (25.1) (10.0%)

% of Turnover 2.5% 2.0% -

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2013(HK$ million)

2014(HK$ million)

Total Assets 5,546.3 6,564.3

Total Liabilities 1,969.9 2,554.8

Free Cash 1,548.6 1,616.7

Pledged Deposits 15.5 11.1

Contracted for 1,653.8 593.2

Authorised but not contracted for - -

1,653.8 593.2

Assets & Liabilities

Cash

Capital Commitment

Asset & Liabilities

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Key Financial Metrics

EBITDA MarginEBITDA

2012 2013 20140%

20%

40%

60%

80%

100%

80% 78% 77%

EBITDA Margin

2012 2013 20140

200

400

600

800

1000

1200

721.5

891.3957.4

EBITDA

(HK$ million)

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Key Financial Metrics

2012 2013 20140%

20%

40%

60%

80%

100%

63%55% 64%

39% 36% 39%

Debt-equity ratio Debt-ratio

Gearing

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SATELLITE FLEET

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Satellite Fleet

153 available transponders (as of Dec 2014)• Our footprint covers 75% of world’s population

• APSTAR 9 is under construction and will be launched in Q4 2015.

• Replacement project of APSTAR 5 will kick off in Mid 2015.

Launch Platform C-band Ku-band Orbital Slot

APSTAR 5 2004 FS1300 38 (20) 16 (9) 138E

APSTAR 6 2005 Spacebus 4000C2 38 12 134E

APSTAR 7 2012 Spacebus 4000C2 28 28 76.5E

APSTAR 9A 1998 A2100A 18 - 142E

APSTAR 9 Q4 2015 DFH-4 32 14 142E

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Satellite Fleet

APSTAR 5

2004FS1300

38 C-band16 Ku-band

APSTAR 6

2005SPACEBUS 4000C2

38 C-band 12 Ku-band

APSTAR 7

2012SPACEBUS 4000C2


[multi-beam connectivity]

APSTAR 9A

1998A2100A

18 C-band

APSTAR 9

Q4 2015DFH-4


Under-construction

76.5E 134E 138E 142E 142E

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Satellite Utilisation

Fierce Market Competition• Supply of traditional transponders & Emerge of high-throughput satellite projects

Overall utilisation remains high• Apstar 9A: Utilisation rate achieved 86.0% as of December 2014 after 12 months of operation

• Overall utilisation rate was 76.8%

Jun-13 Dec-13 Jun-14 Dec-14 change

APSTAR 5 82.33% 85.5% 77.7% 77.4% - 0.3 %

APSTAR 6 87.24% 90.9% 91.8% 85.6% - 6.2%

APSTAR 7 75.08% 70.4% 71.9% 65.8% - 6.1%

APSTAR 9A - - 78.5% 86.0% 7.5%

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New Satellite: APSTAR 9

APSTAR 9 will be launched in Q4 2015• To extend APSTAR satellite coverage in Asia Pacific region

• Mainly serve promising mobility broadband market for maritime and inflight connectivity

• A leader in providing service to China’s maritime broadband market

APSTAR 9 • One of the highest C-band performance in East Asia region, to meet the high demand in

cellular backhaul & other telecom section

• Broad coverage for entire Asia and pacific island countries to meet requirement in broadcasting section for emerging market

• Sophisticated Ku-band coverage in East India Ocean to West Pacific ocean region, to address increasing demand in maritime and in-flight connectivity

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New Satellite: APSTAR 5C

APSTAR 5C

• Kick off in mid 2015

• Keep all existing customers base as replacement satellite at 138 degree East orbital slot

• Build satellite with bigger capacities for future business growth

• Tap the benefit of high-throughput capacity

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BUSINESS PROSPECTS

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Business Prospects

• Because of the increase of supply of transponders in the Asia Pacific Region,

Middle East and African region, the market competition of the satellite industry will

become very fierce with price pressure

• Transponder utilisation rates of the Group will be maintained at a high level and

will continue to achieve satisfactory revenue and profit

• Various value- added services in TV broadcasting services, telecommunication

services and data centre services will help boost business growth.

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Disclaimer

These materials have been prepared by APT Satellite Holdings Limited (“APT”) solely for information use during its presentation.

It may not be reproduced or redistributed to any other person without the permissions from APT. By attending this presentation,

you are agreeing to be bound by the foregoing restrictions.

It is not the intention to provide, and you may not rely on these materials as providing, a complete or comprehensive analysis of

the company’s financial or trading position or prospects. The information and opinions in these materials are provided as at the

date of this presentation and are subject to change without notice. None of the Company nor any of its respective affiliates,

advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from

any use of these materials.

The information in this material contains certain forward-looking statements. These include statements regarding outlook on

future development schedules, business plans and expectations of capital expenditures.

These statements are based on current expectations that involve a number of risks and uncertainties which could cause actual

results to differ from those anticipated by the Company.

The materials and information in the presentations and other documents are for informational purposes only, and are not an offer

or solicitation for the purchases or sale of any securities or financial instruments or to provide any investment service or

investment advice.

APT Satellite Holdings Limited

Dr. Brian Lo

Vice President & Company Secretary

+852 2600 2100

[email protected]

22 Dai Kwai Street, Tai Po Industrial Estate, Tai Po, New Territories, Hong Kong

Apstar 9NEW Capacity in 2H15

apt satellite holdings limited stock code: (1045) 2014 annual results

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