CK Hutchison : 2018 Annual Results Presentation (Operations Analysis)

Disclaimer

QR code for Operations Analysis

The information, statements and opinions contained in this Presentation and subsequent discussion do not constitute an offer to sell or solicitation of any offer to subscribe for or purchase any securities or other financial instruments or any advice or recommendation in respect of such securities or other financial instruments.

Potential investors and shareholders of the Company (the "Potential Investors and Shareholders") are reminded that information contained in this Presentation and subsequent discussion comprises extracts of operational data and financial information of the Group for the year ended 31 December 2018. The information included in this Presentation and subsequent discussion, which does not purport to be comprehensive nor render any form of financial or other advice, has been provided by the Group for general information purposes only and certain information has not been independently verified. No representations or warranties, expressed or implied, are made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information, statements or opinions presented or contained in this Presentation and any subsequent discussions or any data which such information generates. Potential Investors and Shareholders should refer to the 2018 Annual Report for the audited results of the Group which are published in accordance with the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

The performance data and the results of operations of the Group contained in this Presentation and subsequent discussion are historical in nature, and past performance is no guarantee of the future results of the Group. Any forward-looking statements and opinions contained in this Presentation and subsequent discussion are based on current plans, beliefs, expectations, estimates and projections at the date the statements are made, and therefore involve risks and uncertainties. There can be no assurance that any of the matters set out in such forward-looking statements are attainable, will actually occur or will be realised or are complete or accurate. Actual results may differ materially from those stated, implied and/or reflected in such forward-looking statements and opinions. The Group, the Directors, officers, employees and agents of the Group assume (a) no obligation to correct, update or supplement the forward-looking statements or opinions contained in this Presentation and subsequent discussion; and (b) no liability in the event that any of the forward-looking statements or opinions do not materialise or turn out to be incorrect.

Potential Investors and Shareholders should exercise caution when investing in or dealing in the securities of the Company.

Agenda

Strategic Overview - 2018 Major Market Developments

Brexit and GBP/EUR weakening

10%

• • 27% of CKHH EBITDA derived from UK operations, out of which, over 60% from Infrastructure (mainly regulated businesses), with the remaining being mass market consumer businesses

• • Limited exposure to inter-European trade

• • Essential basic consumables focused on local consumption

(1) Impact on 2018 Group results

Trade tension

• • Less than 10% of throughput volume are US/China trade

• • Less than 0.5% of CKHH EBITDA(2) from US/China volume

• • Impact mitigated by the shift of volumes to neighbouring ports in Asia.

(2) Based on FY 2018 EBITDA

3% EBITDA(1) 2%

3% NPAT(1) 3%

0.4%-ptNet debt Ratio(1)

1.4%-pt

• • Average cost of debt 2.4%

• • Only 27% floating rate borrowings

  5G evolution

  5G spectrum ready Auction pending UK ItalyAustriaHong Kong 2019 Sweden 2019 IrelandAustralia Denmark 2020

  Major 5G spectrum secured

  Over 36,000 tower assets worldwide with approximately 50% co-locatable

• • 100 bps increase in interest rates will increase average cost of debt by 0.2%

• • Low upstream opex level at US$10.80/boe (C$14.0/boe)

  US$

  Upstream operating cost breakeven

  2018 Average 2018 Average 2018 Average

  WCS WTI Brent

• • Integrated model flexible in capturing margins across the value chain

• • Fixed price contract in Asia accounted for 21% of Husky EBITDA in 2018

10.80

38.46

64.77

70.97

2018 Financial Highlights

Note :Revenue, EBITDA and EBIT include the Group's proportionate share of associated companies and joint ventures' respective items. 2018 EPS is calculated based on CKHH's weighted average number of shares outstanding during the year of 3,857,216,697.