2007 interim results 7 september 2007. agenda financial highlights updates on operations business...

2007 Interim Results

7 September 2007

AgendaAgenda

Financial HighlightsFinancial Highlights

Updates on OperationsUpdates on Operations

Business OutlookBusiness Outlook

Financial Highlights

1H / 2007(HK$ M)

1H / 2006(HK$ M)

Turnover 230.7 208.0

Profit / (Loss)

Attributable to

Equity

Shareholders

5.0 (21.1)

Interim Results

43%50%

7%

27%

69%

4%

0%

20%

40%

60%

80%

100%

1H/2006 1H/2007

BroadcastingTelecomOther

Turnover Breakdown by Business

Turnover Breakdown by Region

55%

37%

11%16%

9% 8%11%

25%

14% 14%

0%

20%

40%

60%

80%

100%

China HK S'pore Indonesia Others

1/H 2006 1H/2007

1H/2007

(HK$ M)

1H/2006

(HK$ M)

Turnover 230.7 208.0

Cost of Services (165.3) (167.5)

Gross Profit 65.4 40.5

Other net income 12.7 9.1

Revaluation gain on investment

property

- 0.1

Administrative Expenses (37.1) (35.4)

Profit from Operations 41.0 14.3

Consolidated Income Statement (1)

1H/2007

(HK$ M)

1H/2006

(HK$ M)

Profit from Operations 41.0 14.3

Finance costs (28.7) (31.0)

Share of results of jointly controlled entities

(0.6) (0.5)

Profit / (Loss) before taxation 11.7 (17.2)

Income tax (7.3) (4.5)

Profit / (Loss) after taxation 4.4 (21.7)

Attributable to:

Equity shareholders of the Company 5.0 (21.1)

Minority interests (0.6) (0.6)

Profit / (Loss) after taxation 4.4 (21.7)

Earnings / (Loss) per share – Basic (HK cents)

1.22 (5.12)

Consolidated Income Statement (2)

Expenses Breakdown

72% 71%

15% 16% 13% 13%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Cost of Services Admin. Exp. Finance Cost

1H/2006

1H/2007

Cost of Service Breakdown

69% 67%

17%15%

7% 6% 7%12%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Depreciation Insurance Licence & OrbitSlot Fees

Satellite-basedTelecom

1H/2006

1H/2007

EBITDA Margins

Note: EBITDA Margin represents earnings before interest income / expenses, other income, taxation, depreciation, amortization, impairment loss and share of results of jointly controlled entities as a percentage of turnover.

53%61%

0%

20%

40%

60%

80%

100%

YE/2006 1H/2007

Asset & Liabilities

Total Assets HK$3,320 million

Total Liabilities HK$1,334 million

Bank borrowings due within one year

HK$187 million

Bank borrowings due after one year

HK$675 million

(As at 30 June 2007)

Gearing

67%

40%

72%

42%

0%

10%

20%

30%

40%

50%

60%

70%

80%

YE/2006 1H/2007

Debt-equity ratio

Debt-ratio

Cash

Free Cash: HK$375 million

Pledged Deposit : HK$77 million

(As at 30 June 2007)

Updates on APT’s OperationsUpdates on APT’s Operations

Singasat Pte Limited 20.33%

China Telecommunications Broadcast Satellite

Corporation

16.26%

CASIL Satellite Holdings Limited 14.95%

China Aerospace Science & Tech. Corporation

8.85%

Kwang Hua Development & Investment Limited

7.40%

67.79%

Principle Shareholders

(including both direct and indirect interests as of 30 June 2007)

Transponder Utilization Rates

As at

30 June 07

APSTAR VI 66%

APSTAR V 67%

SS/L FS1300

Commenced operation in August 2004

APT keeps 23 C & 12 Ku

The mission life is over 15 years

High utilization rates with further increase potential

Provides versatile services including DTH, internet, VSAT services in the region with interconnection to USA.

APSTAR V

APSTAR VI

Alcatel SB4100C1

High-power satellite with 38 C-band and 12 Ku-band

Started commercial operation on June 7, 2005

Operation mission life over 15 years

Significant increased in utilization rate

Strategic Alliance with Intelsat

Signed framework agreement with Intelsat in December 2006

Expand business with combined satellite capacities and ground resources

Provide broadcasting, telecom & uplink services

Satellite TV Broadcasting Platform

APT Satellite TV Development Ltd. (A Subsidiary)APT Satellite TV Development Ltd. (A Subsidiary)

Successfully established a satellite TV uplink and broadcasting services platform for broadcasting services under the Satellite TV Uplink and Downlink Licence of Hong Kong SAR

As at June 30, 2007, the Broadcasting Platform uplinks and broadcasts up to 70 satellite TV channels

APT Telecom Services LimitedAPT Telecom Services Limited （（ a subsidiary)a subsidiary)

Provides VSAT, wholesales voice services, facilities management services and teleport uplink services to Hong Kong and Asian telecom users including satellite operators, telcos, ISPs & wholesale voice players

Provides two-way satellite internet services and teleport uplink services

Satellite-basedSatellite-basedTelecommunications ServiceTelecommunications Service

Data Centre

APT Satellite Telecommunication Ltd., a jointly controlled entity.

Provide Data Centre Business with its Telepark

Total floor area: 16,890 sq. m.

Support broadcasting and telecom services of the Group

Revenue will start in Q4 2007

New Satellites in China Market

Two new satellites launched in mid 2007 Market competition more intense Some satellite TV programs movements o

ccurred APSTAR VI has taken up some new custo

mers and new usages in Ku band As a whole, APT’s revenue is not adversel

y affected by these movements APT continues to pursue both China and

overseas market for growth

Business Outlook

Broadcasting and telecom businesses will grow steadily

Market competition will still be fierce due to supply over demand

Better competitive edges help further increase utilization rates

Continue to expand in overseas market

APT Satellite Holdings Limited

7 September 2007

www.apstar.com