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    Pre130314 Pre130314 Presentation Transcript

    • 1
    • 22012 Annual ResultsChina Mobile Limited14 March 2013
    • 3Mr. XI Guohua Executive Director & ChairmanMr. LI Yue Executive Director & CEOMr. XUE Taohai Executive Director, Vice President & CFOManagement PresentMr. SHA Yuejia Executive Director & Vice PresidentMr. LIU Aili Executive Director & Vice President
    • 4Overall Results for 2012Operating Performance for 2012Financial Results for 2012123Agenda
    • 5Overall Results for 20121Agenda
    • 6HighlightsCustomer Scale AdvantageMaintained, Voice BusinessFoundation SolidCustomers over 700 millionVoice usage up 7.8%Overcame Difficulties andChallenges, Growth ofOperating Performance StableOperating revenue up 6.1%Net profit margin at 23.1%Fast Data BusinessDevelopment, Data TrafficDrove Revenue GrowthData services revenue roseto 29.7% of total revenueWireless data trafficrevenue up 53.6%Sustainable and HealthyDevelopment to CreateShareholder Value2012 full year dividendHK$3.411 per share2013 planned dividendpayout ratio 43%3G Development Satisfactory,TD-LTE Progress Accelerated3G customers nearly88 million, networkutilization up 10.8pptTD-LTE technologyperformance fully validated,customer experiencerecognized
    • 7Stable Growth in Operating PerformanceOperating Revenue (RMB Billion) 527.999 560.413 6.1%EBITDA (RMB Billion) 251.025 253.646 1.0%EBITDA Margin 47.5% 45.3% -2.2pptNet Profit (RMB Billion) 125.870 129.274 2.7%Net Profit Margin 23.8% 23.1% -0.7pptBasic Earnings per Share (RMB) 6.27 6.43 2.6%2011 Change2012
    • 8ChallengesDiminishing growth intraditional mobilecommunications market aspenetration risesIntensifying competitionamongst operators,particularly for existingbusinessICT transformationhighlights Internetbusiness substitutionOpportunitiesNew industrialization,informatization, urbanizationand agricultural modernizationwiden prospects ofinformation servicesSmartphone proliferationbrings space of developmentfor data traffic and informationservicesThe World recalibrating tonext generation mobilecommunications with fullsupport of TD-LTE fromgovernmentFare Challenges andCapture Opportunities
    • 9Strengthen Execution of StrategiesStrengthen TeamingStrengthen Marketing CapabilitiesStrengthen management ofexisting businessDrive data traffic operationsExcel in corporate customermanagementBoost device salesEnhance marketing supportUnleash potential, besting 2GAccurate 3G build-out in linewith demandExtend TD-LTE throughupgrade and new-buildsDivert traffic with refinedWLAN managementStrengthen infrastructureresource buildingManagement: Overall qualityand leadershipStaff: Professionalism andexecutionDrive cost savings andefficiencyEstablish soundmanagement systemPromote best practicesReinforce synergiesEnhance Network Capabilities Enhance ManagementFour-NetworkCo-ordination,Full Service andMobile InternetStrategy
    • 10Satisfactory 3G DevelopmentCustomer Base ExpandingSignificant Enhancement of Device CompetitivenessTotal of 280,000 base stations with65,000 newly built, achieved coverage incounty-level and above cities and somevillages and towns, contiguous coveragein large and medium-sized citiesNetwork utilization up by 10.8pptSteady Enhancement ofNetwork CapabilityMainstream models with equitable debut of schedule, qualityand price as competing standards; price competitivenesssurfaced in mid to low-end productsIncreasing diversity of models spanning high, mid and low-end;launched 242 TD devices and 138 smartphonesDevice supply chain continued to thrive. Mainstream chipset and device manufacturers involved in R&Dof TD products. Chipset manufacturing technology, power consumption and product quality etc. equitablewith that of competing standardsTD handset sales exceeded 56 million across channels,smartphones took up over 60%Net additional 3G customers over36 million to reach a total of nearly88 millionAround half of TD handset customerson smartphones
    • 11IndustrializationImproved commercial maturity of networkequipment ready to satisfy requirements ofvarious use casesLaunched multi-mode, multi-frequencypre-commercial chipsets, mass productionof 28nm chipset within this yearLaunched multi-mode, multi-frequencydevices including dongles, MiFi, CPE andhandsets, diversity to enrich in the yearInternationalizationGTI membership of 51 operators and44 vendors14 commercial networks and 63 trialnetworks world-wideLaunched integrated TD-LTE/LTE FDDnetwork in Hong KongNetwork Build-outIn 2012, extended scale trial in 15 citieswith approximately 20,000 base stations,networks achieved pre-commercialstandard in Hangzhou, Guangzhou andShenzhenBuild >200,000 base stations in 2013,networks commercial-readyBeijingShanghaiHangzhouNanjingChengduShenzhenShenyangFuzhouXiamenQingdaoTianjinNingboWuxiWenzhouGuangzhouAccelerated Progress in TD-LTEDevelopment
    • 12Strengthen Infrastructure ResourcePublic InternetBroadbandAccess NetworkPromoted IDCconstruction andintroduced hotspotresourcesDrove content cachingand distributed systemapplicationsOn-net traffic reached75%, significantlyreduced carriage costsAimed for quality anddifferentiation, focusedon target markets,emphasized value andreturnFocused on developingfiber broadband accessfor corporate customers,cumulative corporateleased IP-VPN linesreached 781,000Explored wirelessbroadband accessmodelsMetropolitanArea NetworkOptimally ahead incapability andcoverage ofmetropolitan areanetwork resourceFocused on enhancingaccess in key areasand for key customersAdded 74,000 km ofmetropolitan areapipes and 855,000 kmof optical fiber cables
    • 13Forward-looking Investment PlanningCAPEX CAPEX StructureForward-Looking Investment Planning for Long-Term Development Focusing on ReturnPursue Four-Network Co-ordination strategyto achieve balanced development in networkcapabilitiesSteadily promote basic resource constructionto enhance transmission network capabilityDevelop mobile Internet and Internet of Thingsto foster new growth driversDrive build-out of support system and bases(centers of excellence) for centralization(RMB Billion)127.4190.22012 2013 Budget2G/WLAN/Core networkTD-LTE52%Mobile communicationsnetworksBuildings &infrastructureSupport systemsTransmission BusinessdevelopmentOthers3%8%28%44%11%6%2%6%31%42%13%6%2012 2013 Budget
    • 14Strive to Create Value for Shareholders
    • 152012年运营表现2 Operating Performance for 20122Agenda
    • 16Innovation to Drive Sustainableand Healthy Development“Customers, Our Priority;Quality Service, Our Principle”“Quality is the Lifeline of aCommunications Company”Continued to promotenetwork innovationResolved technical issuesassociated with Four-Network Co-ordinationInduced accelerateddevelopment of TD-LTEAccelerated businessinnovationMobile Internet and Internetof Things applicationsexpanding“Wireless City” customersreached 70 millionLaunched featured productssuch as location-basedservices and “Lingxi”Intensive Enhancement ofManagementBasic service continuouslyenhancedCustomer satisfaction aheadof peers at 77.62%Complaint rate lowest inindustryConsumer rights protectedPromoted transparentspending, filtered harmfulmessages and malicioussoftwareTransformed self-ownedchannelsEnhanced sales outlet,hotline and portalfunctionalitiesProportion of businessprocessed throughe-channels reached 78%Voice quality maintainedleading position2G call drop rate 0.48%,successful call connectionrate 99.26%3G call drop rate 0.29%,successful call connectionrate 98.9%Business qualitycontinued to improveSignificant improvement inon-net Internet traffic anddelay of web page displaySupport quality steadilyenhancedSuccessful businessordering up to 99.78%Enhanced Quality, Improved Services andFurther Promoted Innovation
    • 17Total Customers(Million)Net Additional Customers9.3%649.57710.3051.21 87.9366.5% 63.9%65.557.4%30.5160.7336.7248.9%45.1%3G2011 2012Net additional market share3G2011 2012Market shareSustained growth in customer base, mid and high-end customer base remained stableCustomers’ accelerated migration to 3G resulted in intensifying competition, marketshare slippedCorporate customers expanded to 3.46 million, of which individual customers took up34.5% of total(Million)Maintained Scale Advantage inCustomer Base
    • 18Stabilized Voice BusinessTotal Voice UsageVoice Services Revenue2011 2012Intensifying substitution by Internet businesses, voice business trending downReinforced operation of existing usage to stabilize voice businessExploited demand for “long-distance calls, roaming, off-peak calling and in-group calling”(RMB Billion)368.0251.1%364.189(Billion Minutes)7.8%2011 20123,887.24,192.3525 512MOU (Minutes)
    • 19Rapid Development of Data ServicesWireless data traffic developedrapidly and became a key driverof revenue growthApplications and informationservices grew fast with featuredbusinesses being launchedSMS and MMS revenue slippeddue to substitution by Internetbusinesses. However, corporateSMS and MMS spruced inpopularityTransformVoiceVoice +data traffic +applicationsData Services Revenue(RMB Billion)2011 201219.4%166.34853.87668.25744.21529.7%139.33048.44044.42846.46226.4%Applications andinformation servicesSMS & MMS Wireless data trafficData services revenue/Total revenue
    • 20Rapid Growth in Wireless Data TrafficImprove quality: Undertook end-to-end quality control targeting critical stages such assuccessful connection and access authenticationEnlarge scale: Targeting handset Internet access, promoted volume sales of smartphonesand spending in featured mobile hotspot businessAdd value: Optimized tariffs, protected value of data traffic, stimulated usage and enhancedreturn on data trafficWireless Data TrafficWireless Data Traffic Revenue(RMB Billion)Wireless data traffic revenue/Total revenueWLAN revenueMobile data traffic revenue20110.73944.42868.2578.4%12.2%1.728201243.68966.52953.6%(Billion MB)WLAN data trafficMobile data traffic20111,039.2749.42012289.8361.4200.4161.0187.6%
    • 21Rigorously Promote New BusinessesMobile InternetMobile Reading Revenue(RMB Million)Mobile Mailbox Revenue(RMB Million)Rapid growth of featured businesses2011 20122011 2012Mobile MarketConsolidated advantages andcapabilities for new featured productsCumulative registered customers270 million, full-year downloadedapplications over 600 millionInternet of ThingsDeveloped low-cost,standardized and open productsICT products such as Home SecurityService, Fleet Management Service and QRCode and remote surveillanceBuilt high quality and centralizeddedicated networkDedicated number anddedicated network unit, unifiedoperations platformInnovativeMarketingEnriched pricingoptions according toproduct life cycleRapid development of Internet of ThingsapplicationsUrban management, smart transportation,industrial control, etc.“M-cloud”, “Lingxi”, voice mailbox andvoice positioning service, etc.Internet of Things UsersMobile Video Revenue57163.9% 936(RMB Million)62774.3% 1,0931,53955.6%2,394Mobile Gaming Revenue55058.0% 869(RMB Million)2011 2012 2011 20122011 2012(Million)13.0572.0%22.45
    • 22TD-SCDMAGSMTD-LTEWLANAccurate network build-out to realize contiguouscoverage in large and medium-sized cities andto create a premium TD networkBase stations totaled 280,000 with networkutilization at 24%Controlled reasonable resource input,unleashed potential to assure leadership innetwork qualityBase stations over 800,000 with networkutilization at ~71%Adopted refined management to improvecapacity loading and to offload traffic. Customerloyalty enhancedBuilt 3.83 million APs. WLAN amounted to nearlyhalf of total handset data traffic. Traffic diversioneffective. Deployed automatic authenticationsystem, successful authentication ratesignificantly enhancedDetail planning for extended scale trial,actively promoted maturity of TD-LTE supplychainExtended TD-LTE network construction, tobuild >200,000 base stations and to launchcommercial-ready networks this yearEarly Success inFour-Network Co-ordination
    • 23China Mobile Group Device Company Limited(Formerly known as China Mobile GroupTerminal Company Limited)China Mobile International LimitedChina MobileProfessional OperationsProduct competitiveness enhancedMainstream models launched at equitableschedule, quality, price as competing modelsNumber of device models on line comparableto that of competing standards, 242 newmodels launched in the yearOperating results satisfactoryAnnual device sales at over 33 million units,drove volume sales, promoted lean channelstructure, lowered customer spend thresholdPromoted data traffic management, retainedexisting customers, developed newbusinesses and reduced overall operatingcostsBuilt network and platform withlate-mover advantageInternational bandwidth expanded nearly 4 foldin two yearsEstablished Hong Kong Global Network Centerand various operations platformsOffered competitive products andservicesSubstantial reduction in IDD and internationalroaming costsPromoted RMB1/2/3 international roamingzones. Tariffs of 5 routes including the US weredown 52%Professional Operations SystemGradually Established
    • 24Applied energy-efficiencyclassification for majorequipment and greenpackagingEnhance air-conditioningenvironment energyconservation in basestations, cumulativelyapplied xxx,xxx units ofnatural resource coolingPromote smart energy-saving according frequencyloading, with cumulativex.xx million frequencyloading exploredPromote MatureTechnologiesInnovate on Energy-Saving ApplicationsPower consumptionper carrier frequencydown by 5.7%Power consumptionper unit oftelecommunicationstraffic dropped14.6%Saved timber46,400 m3Core Equipment EnergyConservation ClassificationStandards and greenpackagingEnergy conservation in air-conditioning environmentsof base stations, instated>100,000 cumulative basestations with “naturalresource cooling”Smart energy-savingcarrier frequency function,activated 8.4 millioncumulative channelsCompleted new R&D pilotsincluding smart ventilationand high-performanceenvironmentally-friendlybatteriesIntroduced efficient powersupply technology, initiated330,000 switches withhibernate function forredundant modulesInstalled 9,600 new energy(wind and solar) basestationsRemarkable Results in“Energy Conservation & Emissions Reduction”
    • 25Realize Sustainable and Healthy Development
    • 26AgendaFinancial Results for 20123
    • 27Stable Revenue GrowthOperating RevenueTotal CustomersTotal Voice UsageWireless Data Traffic2011 2012710.309.3%(Million)2011 20123,887.2 4,192.37.8%(Billion Minutes)2011 2012361.41,039.2187.6%(Billion MB)649.57(RMB Million)2011 2012527,999560,4136.1%
    • 28EBITDANet ProfitIndustry-leading ProfitabilityEBITDA margin2011 2012Basic EPSNet profit margin2011 2012(RMB Million)125,870 129,2742.7%251,02547.5% 45.3%1.0%253,64623.8% 23.1%20122011(RMB)6.27 6.432.6%(RMB Million)
    • 29Supported strategictransformation of theCompanyProvided a solidfoundation for thesustainable healthydevelopment of theCompanyCreated value forshareholdersStrong Cash Flow ContinuedSound and EfficientCapital ManagementStrong cash flowgeneratingcapabilitySecure fundmanagementCentralized fundallocationHighly centralizedcorporate financingPrudent investmentstrategiesNet Cash Inflow fromOperating Activities2011 201298,208 103,306(RMB Million)(RMB Million)226,756 230,7092011 2012Free Cash Flow
    • 30Operating Revenue StructureSMS & MMSRevenue7.9% 8.8%Wireless DataTraffic Revenue12.2% 8.4%Applications andInformation ServicesRevenue9.6% 9.2%Data ServicesRevenue29.7% 26.4%2012 20112012Voice services revenue Data services revenueOther operating revenueNote: The above data are expressed as a percentage ofoperating revenue65.7%29.7%4.6%
    • 31Structure of Operating ExpensesNote: The above data are expressed as a percentage of operating revenueOperatingExpensesOthersPersonnelDepreciationInterconnectionLeased LinesSelling Expenses2011 20121.8%4.5%18.0%5.5%24.6%73.1%18.7%4.5%18.4%5.4%23.7%71.3%18.3%1.0%
    • 32Note: Net cash represents cash & bank balances minus total debtHealthy and Solid Capital Structure2012(RMB Million)2011(RMB Million)Credit RatingMoody’sS&PAa3 / Outlook PositiveAA- / Outlook StableShort Term Debt 1,227 1,684Long Term Debt 28,619 28,617Total Debt 29,846 30,301Shareholders’ Equity 723,447 649,064Total Book Capitalization 753,293 679,365Total Debt / Total Book Capitalization 4.0% 4.5%Cash & Bank Deposits 408,321 333,100Net Cash* 378,475 302,799
    • 33Thank You
    • 34Extracts from Audited Consolidated Statement ofComprehensive Income for the year ended 31 December 2012– Appendix IOperating RevenueVoice Services 368,025 364,189Data Services 166,348 139,330Others 26,040 24,480560,413 527,999Operating ExpensesLeased Lines 9,909 5,188Interconnection 25,140 23,533Depreciation 100,848 97,113Personnel 31,256 28,672Selling Expenses 104,906 96,830Other OperatingExpenses137,832 125,364409,891 376,700Profit from Operation 150,522 151,2992012(RMB Million)2011(RMB Million)Profit from Operation(cont’d)150,522 151,299Other Net Income 2,208 2,559Non-operating NetIncome615 571Interest Income 12,661 8,413Finance Costs (390) (565)Share of Profit ofAssociates5,685 4,306Share of Loss of JointlyControlled Entity(1) (1)Taxation (41,919) (40,603)Profit for the Year 129,381 125,979Attributable to:Equity Shareholders ofthe Company129,274 125,870Non-controllingInterests107 109Profit for the Year 129,381 125,9792012(RMB Million)2011(RMB Million)
    • 35Extracts from Audited Consolidated Balance Sheetas at 31 December 2012– Appendix IICurrent Assets 446,593 382,685Non-current Assets 605,516 569,873Total Assets 1,052,109 952,558Current Liabilities (297,796) (273,244)Non-current Liabilities (29,004) (28,895)Total Liabilities (326,800) (302,139)Net Assets 725,309 650,4192012(RMB Million)2011(RMB Million)
    • 36Operating Data– Appendix IIITotal Customers (Million) 710.30 649.57MOU (Minutes) 512 525ARPU (RMB) 68 71Average Voice Services Revenue per Minute (RMB) 0.088 0.094Total Voice Usage (Billion Minutes) 4,192.3 3,887.2Wireless Data Traffic (Billion MB) 1,039.2 361.4Including: Mobile Data Traffic (Billion MB) 289.8 161.0SMS Usage (Billion Message) 744.5 736.1Average Monthly Churn Rate 3.25% 3.21%20112012
    • 37Forward-looking StatementCertain Statements contained in this document may be viewed as “forward-lookingstatement” within the meaning of Section 27A of the U.S. Securities Act of 1993, as amended,and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. Such as forward-looking statements involve known and unknown risks, uncertainties and other factors,which may cause the actual performance, financial condition or results of operations ofChina Mobile Limited (the “Company”) to be materially different from any futureperformance, financial conditions and results of operations implied by such forward-lookingstatements. Further information regarding these risks, un certainties and other factors isincluded in the Company’s most recent Annual Report on Form 20-F filed with the U.S.Securities and Exchange Commission (the “SEC”) and the Company’s other filings with theSEC.