CK Hutchison : OVERSEAS REGULATORY ANNOUNCEMENT AND INSIDE INFORMATION ANNOUNCEMENT ON THE QUARTERLY TRADING UPDATE FOR CK HUTCHISON GROUP TELECOM HOLDINGS LIMITED

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OVERSEAS REGULATORY ANNOUNCEMENT

AND INSIDE INFORMATION ANNOUNCEMENT

ON THE QUARTERLY TRADING UPDATE FOR

CK HUTCHISON GROUP TELECOM HOLDINGS LIMITED

This announcement is made by CK Hutchison Holdings Limited (the "Company") pursuant to Rules 13.09(2)(a) and 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

The board of directors of the Company would like to draw the attention of its shareholders and potential investors to the appended filing attaching the presentation of 2021 Q1 trading update, which contains certain unaudited financial information in relation to the performance of CK Hutchison Group Telecom Holdings Limited ("CKHGT", an indirect wholly-owned subsidiary of the Company) and its subsidiaries for the quarter ended 31 March 2021. Such filing has been published by CK Hutchison Group Telecom Finance S.A. (a wholly-owned subsidiary of CKHGT) on the website of the Luxembourg Stock Exchange and has also been made available at the website of CKHGT respectively on 6 May 2021.

Shareholders and potential investors of the Company are advised that the financial information of CKHGT and its subsidiaries referenced above is unaudited as of the date of this announcement and is included for reference only, they should not place undue reliance on such financial information and should exercise caution when dealing in the securities of the Company.

By Order of the Board

Edith Shih

Executive Director and Company Secretary

Hong Kong, 6 May 2021

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As at the date of this announcement, the Directors of the Company are:

Executive Directors:	Non-executive Directors:
Mr LI Tzar Kuoi, Victor (Chairman and	Mr CHOW Kun Chee, Roland
Group Co-Managing Director)	Mrs CHOW WOO Mo Fong, Susan
Mr FOK Kin Ning, Canning	Mr LEE Yeh Kwong, Charles
(Group Co-Managing Director)	Mr LEUNG Siu Hon
Mr Frank John SIXT (Group Finance Director	Mr George Colin MAGNUS
and Deputy Managing Director)
Mr IP Tak Chuen, Edmond	Independent Non-executive Directors:
(Deputy Managing Director)	Mr KWOK Tun-li, Stanley
Mr KAM Hing Lam	Mr CHENG Hoi Chuen, Vincent
(Deputy Managing Director)	The Hon Sir Michael David KADOORIE
Mr LAI Kai Ming, Dominic	Ms LEE Wai Mun, Rose
(Deputy Managing Director)	Mr William Elkin MOCATTA
Ms Edith SHIH	(Alternate to The Hon Sir Michael
	David Kadoorie)
	Mr Paul Joseph TIGHE
	Mr WONG Kwai Lam
	Dr WONG Yick-ming, Rosanna

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Trading update

for the quarter ended 31 March 2021

Disclaimer

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 three-month period ended 31 March 2021. 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.

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.

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CK Hutchison Group Telecom

YTD 2021

Active Customer (2)RevenueTotal Margin

41.0mn	€2.5bn	€1.7bn
Y-o-Y 4%	Y-o-Y 2%	Y-o-Y 3%

Contract Churn (3)Capex(4)Net Debt (5)

1.2%	€0.7bn	€5.9bn
Y-o-Y flat	Y-o-Y 114%	Y-o-Y 19%

(1)	Unless otherwise specified, the discussion of the Group's operating results in this presentation is on a Pre-IFRS 16 basis.
(2)	An active customer is a mobile customer that generated revenue from an outgoing call, incoming call or data/content service in the preceding three months.
(3)	Represents monthly average churn of contract customers.
(4)	Capex amount excludes licence costs.
(5)	Total bank and other debts are defined, for the purpose of "Net debt" calculation, as the total principal amount of bank and other debts. Net debt is defined as total bank and other debts less total cash and cash equivalents.	3

CKHGT - 2021 Q1 vs 2020 Q1

Revenue

Total Margin

€ m			€1,705m
2,499	2%	2,461
			€ m
			-3%	( 2 )
			1,763		( 38 )
						( 18 )	1,705
2020 Q1		2021 Q1
Total Margin	2020 Q1	UK	Italy	Others	2021 Q1
€ m
		Total Margin				Total Margin
1,763	3%	1,705
			Total Margin	+1%
			Change %
			(in local currencies)
					-5%
				UK	Italy
2020 Q1		2021 Q1	Total Margin %	90%	80%

UK	Italy	Sweden	Denmark
Austria	Ireland	Hong Kong	Corporate & others	(1) Total margin % represents total margin as a % of total revenue excluding handset revenue.
				4

CKHGT - 2021 Q1 vs 2020 Q4

Revenue

Total Margin

€ m

2,664 8% 2,461

	2020 Q4	2021 Q1
	Total Margin
€ m	1,779	1,705
		4%

2020 Q4

2021 Q1

€1,705m	€ m	9
-4%	1,779
			( 82 )	( 1 )	1,705
	2020 Q4	UK	Italy	Others	2021 Q1
	Total Margin				Total Margin
Total Margin		-1%
Change %
(in local currencies)
			-9%
		UK	Italy
Total Margin %		90%	80%

UK	Italy	Sweden	Denmark	(1) Total margin % represents total margin as a % of total revenue excluding handset revenue.
Austria	Ireland	Hong Kong	Corporate & others	5

Key Financials

£ m	2021 Q1	2020 Q1	% Variance	2020 Q4	% Variance
Total Revenue	581	570	+2%	636	-9%
Total Margin	359	356	+1%	362	-1%
Total Margin (%)	90%	84%	+6%-pts	87%	+3%-pts
Capex	(152)	(98)	55%	(369)	59%
Net ARPU (£)	12.79	12.60	+2%	12.69	+1%
Net AMPU (£)	11.26	10.91	+3%	11.12	+1%
Active customer ('000)	9,307	9,952	-6%	9,706	-4%
Active contract customer ('000)	7,569	7,243	+5%	7,515	+1%
Monthly average contract churn (%)	1.3%	1.4%		1.6%

CKHGT - UK

Results Highlights

• Volatile market landscape with uncertainties caused by the pandemic
• Encouragingly, total margin has been relatively stable year-on- year as well as quarter on quarter
• Total margin % remains strong through retention of higher value customers and contribution from higher margin revenue streams
• Capex increased against Q1 2020 as 3UK progresses to complete IT transformation and 5G rollout plans
• Lower active customer base mainly due to non-contract churn from MVNO competition, encouragingly, the proportion of active contract customers continues to increase (Q1 2021: 81%; Q1 2020: 73%; Q4 2020: 77%), providing stable margin contributions
• Contract churn % reduced in Q1 2021 through strong retention initiatives

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								CKHGT - Italy
	Key Financials					Results Highlights
							•
€ m		2021 Q1	2020 Q1	% Variance	2020 Q4	% Variance	Aggressive competition from Iliad and MVNOs remained high
Total Revenue		1,042	1,110	-6%	1,143	-9%	•	Revenue declined as a result but margin % remained at a healthy
								level of approximately 80% throughout the periods
Total Margin		789	827	-5%	871	-9%
Total Margin (%)		80%	80%	-	81%	-1%-pts	•	Best network with fastest upload and download speed based on
								independent survey, a solid platform for 5G rollout across 2020
								and 2021
Capex		(428)	(136)	215%	(448)	4%	•
							Positive AMPU trend as a result of customer value management
								initiatives and cost control
Net ARPU (€)		11.01	10.83	+2%	11.05	flat	•
Net AMPU (€)		9.41	9.11	+3%	9.40	flat	Intense competition has seen active customer base decline, in
		particular for non-contract customers. The trend has relatively
Active customer ('000)		19,357	20,652	-6%	19,638	-1%		stabilised since Wind Tre launched second brand "Very" Mobile in
Active contract customer ('000)		9,608	9,474	-1%	9,697	-1%		2020 to compete in the prepaid segment
Monthly average contract churn (%)		1.4%	1.3%		1.5%		•	Continuous increase in proportion of active contract customers
								(Q1 2021: 50%; Q1 2020: 46%; Q4 2020: 49%) in a predominantly
								prepaid market
							•	Churn rates were relatively stable across the last twelve months
								compared to the peak 2.4% in 2H 2018

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Total Consideration

€10bn(2)

€8.6 billion cash and €1.4 billion Cellnex shares(3)

15 years MSA, extendable for additional 15 years at Telco's option(4)

Strategic partnership includes a new build-to-suitprogram comprising approximately 6.7k new sites(5)

Estimated full year net impact to EBITDA of approximately €330 million(6)

Approximately €1bn reduction in capex over next 5 years(6)

Use of Cash Proceeds

Optimise capital structure and returns to shareholders through:

 Reduce indebtedness

 Consider on-marketshare buyback programmes

Telecommunications - CKH Networks

	Jan 2021
Nov 2020	Completion of	Q4 2021
Announced sale of	Sweden Tower	Target completion
CKH Networks(1) to	Company disposal	Of UK Towers
Cellnex	(proceeds received: €0.8bn)	disposal

•

•

•

•

•

July 2020

Completion of Reorganisation

Dec 2020

Completion of

Austria, Denmark & Ireland Tower Company disposals (proceeds received: €2.2bn)

June/July 2021

Target completion

Of Italy Tower

Company disposal

•

(1)	•	General corporate purposes
Tower companies holding interests in approximately 25k sites in Austria, Denmark, Ireland, Italy, Sweden and the United Kingdom.
(2)	€9.5bn attributable to CKHGT.
(3)	New Cellnex shares equating to approximately 5% pro forma stake.
(4)	"All or nothing" renewal at the discretion of our European mobile operation in each jurisdiction (except for Austria, where the Master Services Agreement provides for an indefinite term subject to termination rights as agreed).
(5)	Estimated new sites rollout over the relevant period of the BTS program.
(6)	Estimates presented as if CKH Networks had been established on 1 January 2020 and by translating the UK, Sweden and Denmark operations into EUR equivalent for illustrative purposes.	8