中国电信XXXX年中期业绩推介材料

ChinaTelecomCorporationLimited25August2010|“forward-lookingstatements”withinthemeaningofSection27AoftheU.S.SecuritiesActof1933(asamended)andSection21EoftheU.S.SecuritiesExchangeActof1934(asamended).Suchforward-lookingstatementsaresubjecttoknownandunknownrisks,uncertaintiesandotherfactors,whichmaycausetheactualperformance,financialconditionorresultsofoperationsofChinaTelecomCorporationLimited(the“Company”)tobemateriallydifferentfromfutureperformance,financialconditionorresultsofoperationsimpliedbysuchforward-lookingstatements.Inaddition,wedonotintendtoupdatetheseforward-lookingstatements.Furtherinformationregardingtheserisks,uncertaintiesandotherfactorsisincludedintheCompany’smostrecentAnnualReportonForm20-FfiledwiththeU.S.SecuritiesandExchangeCommission(the“SEC”)andintheCompany’sotherfilingswiththeSEC.3Mr.WangXiaochuChairman&CEOMadamWuAndiExecutiveVicePresident&CFOMr.ShangBingPresident&COOManagementTeamManagementTeam4OverviewBusinessReviewFinancialPerformanceAgendaAgendaOverviewOverview6HighlightsHighlightsEffectiveintegratedoperationdrivingremarkableearningsrecoveryTostrengthendifferentiationdevelopmentleveraging“MobileInternet”tocreatemorevalueAccelerateproactivebroadbanddeploymenttostrengthennetworkedgeMobilebusinessgrowingrapidlywithwirelinebusinessstructurefurtheroptimized7AdjustedResults1H20091H2010ChangeOperatingRevenue(RMBMil)102,554107,5524.9%EBITDA(RMBMil)43,33945,7595.6%EBITDAMargin42.3%42.5%0.2ppNetProfit(RMBMil)8,4128,8114.7%EPS(RMB)0.1040.1094.7%FreeCashFlow(RMBMil)19,65218,591-5.4%2009.122010.6ChangeAccessLinesinServices(Mil)188.56181.07-7.49MobileSubs(Mil)56.0974.5218.43WirelineBroadbandSubs(Mil)53.4658.334.87Note:Unlessotherwisestatedinthispresentation1.Allfinancialdataareunaudited&adjustedtoexcludeUpfrontConnectionFees2.EBITDAwascalculatedbeforeCDMANetworkLeasingFees(1H2009:RMB3,583mil;1H2010:RMB6,365mil)toenhancecomparability3.NetProfitrepresentsprofitattributabletoequityholdersoftheCompany4.FreeCashFlow=EBITDA-CDMANetworkLeasingFees-CAPEX-IncomeTaxExpensesSolidResultsSolidResults8RemarkableEarningsRecoveryRemarkableEarningsRecoveryNetProfitProfitableScaleDevelopment1H20091H20102H2009
Leveragedifferentiatededgeofintegratedoperationofmobile,wireline&Internettorampupmobilebusinessexpansion&continuousoverallrevenuegrowth
Tiltingresourcestowardshighgrowth&highreturnbusinessestoachieveprofitablescaledevelopment
Scalebenefitgainingmomentum&drivingremarkableearningsrecovery
Toincreaseproactiveinitiativesin2H2010tofurtherexpandscale&strengthenlong-termsustainablebusinessdevelopmentRMBMil8,8114,8598,4129+0.1pp+4.9pp+3.8pp-7.9pp107,552102,554104-8,1453,947-864WirelineVoiceMobileDataWirelineDataWirelineOthers1H2010MobileVoiceOverallRevenue+4.9%RMBMil5,0514,905MobileOthers+4.8pp-0.8pp1H2009RevenueGrowthDriversRevenueGrowthDrivers10RapidMobileExpansionwithRobustQualityRapidMobileExpansionwithRobustQualitySubscribersServiceRevenueHighlightsMil2009.62009.122010.62008.12RMBMil1H20092H20091H2010MobileSubMarketShare
Mobilesubbaseexpandingrapidly:1H2010netadd18.43mil
Revenue&subbasegrowingintandemwithrelativelystableARPU:1H2010RMB58.1vsFY2009RMB59.5
MobileDatagrowingrapidly:MobileData/MobileRevenue34.5%
Invigoratedterminalsupplychain:~700modelsofCDMAhandsetsinsupply(including1003Ghandsetmodels)
Opendistributionchannelachievingscale:Point-of-salesreached560k(4xvs2009.1)(includingGOME,Suning,D.Phone…)22,77017,18912,81439.2856.099.5%7.7%5.8%27.914.5%74.5211OptimizingOptimizingWirelineWirelineBusinessStructuretoBusinessStructuretoProactivelyAlleviateRiskProactivelyAlleviateRiskProactivelyAlleviatingRiskOptimizedWirelineBusinessStructure1H20091H2010WirelineVoiceRevenueWirelineNon-VoiceRevenue/TotalWirelineRevenueWirelineNon-VoiceRevenueRMBMil-19.8%8.9%1H20091H2010PASRevenueRMBMil-56.5%6,5672,8591H20091H20103,3842,541WithprogressivecancellationofInter-districtCallTariff,thisportionofrevenuewillbecomeIntra-districtCallRevenue41,06045,49232,91549,54382,45886,55260.1%52.6%-24.9%Inter-districtCallRevenueRMBMil12AccelerateProactiveBroadbandDeploymentAccelerateProactiveBroadbandDeploymenttoStrengthenNetworkEdgetoStrengthenNetworkEdgeCAPEXSpeedUpBroadbandDevelopment38,04244,000RMBMil20092010E17,91817,03339,000OriginalBudgetAdjusted2010Budget1HCAPEX20M+70%byend2011closetofullcoveragebyend2012EnhanceCoreCompetence
2010extraCAPEX:RMB5bil2011extraCAPEX:~RMB10bil(Adjusted2011provisionalCAPEXbudget(≈RMB50bil)tobedeterminedinearly2011withregardtothelatestbusinessdevelopment)
Totalbroadbandnetaddtargetfor2010&201120mil(i.e.3milextra)
Toenhancecorporatevalue:Netrevenuefromextrabroadbandnetadd(lessrelevantcashexpense)IncrementaldepreciationofextraCAPEX
Enhancecorecompetence:Customeraccessbandwidthcapability(Coverageincities)13Drivingcorporate&customersDrivingcorporate&customers’’valuevalueFullServicesIntegratedOperationGainingFullServicesIntegratedOperationGainingMom