Hutchison Telecom Announces 2009 Interim Results

HONG KONG -

Key Highlights: — Group total mobile customers grew 36.5 % year-on-year to approximately 11.6 million — Substantial increase of customer base in Indonesia to 6.4 million — Very positive GSM launch in Vietnam with customer acquisitions of 624,000 — Operating profit at HK$499 million, including one-time gains of HK$236 million — Spin-off of Hong Kong and Macau operations released value for shareholders Financial Results Highlights: Six months ended 30 June 2008 2009 HK$ HK$ millions millions Turnover 7,991 6,411 Operating profit 1,859 499 Profit /(Loss) for the period from continuing operations 1,684 (221) Profit from discontinued operations 279 196 Profit/ (Loss) for the period 1,963 (25) Profit/ (Loss) attributable to equity holders of the Company 1,165 (285) Basic earnings/(loss) per share attributable to equity holders of the Company HK$0.24 HK$(0.06)

Hutchison Telecommunications International Limited (’Hutchison Telecom’; ‘the Group’; ‘the Company’; SEHK:2332; NYSE: HTX) today announced the financial results for the six months ended 30 June 2009 and quarterly key performance indicators (’KPIs’) for the second quarter of 2009. The Group reported good progress in the emerging markets and continued to deliver sound underlying performance both operationally and financially in a challenging macro environment.

The Group’s total customer base increased 36.5% to approximately 11.6 million on a like-for-like basis compared with last year, with the net gain mostly contributed by the Indonesian operation. The Israeli operation maintained its 3G customer growth momentum which drove the 3G customer base to over 1.1 million. The Group’s operation in Vietnam successfully launched GSM service under the brand name Vietnamobile and started the second quarter with very positive customer acquisitions of approximately 624,000. The Group’s strategy of accelerated network rollout produced results during the period. The Indonesian operation launched service in Kalimantan and Sulawesi and continued to deepen the network coverage in Java and Sumatra. The Vietnamese operation increased the number of base stations on-air to approximately 1,500 and is on track to take it to 3,000 by the end of the year.

The Group successfully spun off its Hong Kong and Macau operations in May 2009 to release value for shareholders. The combined share price of the two listed companies was over 50% higher than that of the share price of Hutchison Telecom on the day of the spin-off announcement.

Financially, the Group’s first half results were adversely impacted by the depreciation of the New Israeli Shekel (’NIS’) against the Hong Kong Dollar (’HKD’). Turnover decreased 19.8% to HK$6,411 million compared to HK$7,991 million in the same period last year. Excluding the impact of weaker NIS, the decrease in underlying turnover was 8.2% reflecting primarily the impact of the economic downturn. Earnings Before Interest, Tax, Depreciation and Amortisation (’EBITDA’) decreased 38.9% to HK$1,117 million compared to HK$1,829 million in the same period last year. Excluding the foreign exchange impact of NIS, EBITDA for the period decreased 20.4%. This was mainly due to the ongoing network rollout in Indonesia that almost double the on-air base stations compared to last June. The loss attributable to equity holders of the Company for the period was HK$285 million.

Dennis Lui, Chief Executive Officer of Hutchison Telecom, said: “We are pleased to see a sound half year with strong growth in customers and accelerated network rollout in the Company’s key operations of Indonesia and Vietnam. In face of the challenging economic conditions in the markets during the period, we continued to improve operational efficiencies and reduce costs. The Group also successfully released value for shareholders with the spin-off of its Hong Kong and Macau operations.”

“We are optimistic that the momentum in Indonesia and Vietnam will carry into the remainder of 2009 and the measures taken in Sri Lanka to strengthen its competitive position will produce an improved performance in the second half,” said Mr Lui.

Review of Operations

Indonesia — Customer base grew to 6.4 million, more than double on a yearly basis — Turnover increased 48.7% to HK$223 million — Accelerated network expansion with over 7,300 sites and services launched in Kalimantan and Sulawesi The Group’s Indonesian operation PT. Hutchison CP Telecommunications (’HCPT’) continued to expand its network footprint in the first half of 2009, along with substantial growth in customers. Against fierce competition the customer base grew 101% on a yearly basis to 6.4 million with a record 1.1 million net additions during the quarter. HCPT expanded its population coverage to approximately 70%, covering Kalimantan and Sulawesi and with services launched in new major cities. The operation is on track to increase its network to 9,000 base stations on-air with a population coverage of over 75% by the end of 2009. HCPT’s turnover for the first half of 2009 increased 48.7% to HK$223 million. However, as the network expanded so the network operating costs became higher. Its Loss Before Interest, Taxation, Depreciation and Amortisation (’LBITDA’) for the first six months of 2009 increased to HK$764 million, compared to HK$348 million in the same period last year. HCPT reported stable KPIs compared with the previous quarter. Prepaid Average Revenue Per User (’ARPU’) increased modestly to IDR10,316 from IDR9,963 in the previous quarter. During the first half year, as a result of the reduction in promotional on-net minutes offered, blended Minutes of Use (’MOU’) stood at 55 minutes, same as the previous quarter. Blended churn remained high at 24.9%.

Source: Hutchison Telecommunications International Limited