HUTCHISON TELECOMMUNICATIONS (AUSTRALIA) 2001-02-27 ASX-SIGNAL-G HOMEX - Sydney +++++++++++++++++++++++++ PRELIMINARY FINAL REPORT (Not Equity Accounted) Name of entity Hutchison Telecommunications (Australia) Limited ACN, ARBN or ARSN Half Preliminary Financial Year ended yearly final ('current period') (tick) (tick) 003 677 227 X 31/12/2000 FOR ANNOUNCEMENT TO THE MARKET AUD000 Sales (or equivalent operating) revenue (item 1.1) up 23% to 404,652 Abnormal items after tax attributable to members (item 2.5) loss of - Operating profit (loss) after tax (before amortisation of goodwill) attributable to members (item 1.26) down (4,122)% to (92,499) Operating profit (loss) after tax attributable to members(item 1.10) down (4,122)% to (92,499) Extraordinary items after tax attributable to members (item 1.13) gain/loss of - Operating profit (loss) and extraordinary items after tax attributable to members (item 1.16) down (4,122)% to (92,499) Dividends (distributions) Amount per Franked amount security per security at 36% tax Final dividend(Preliminary final report only - item 15.4); Interim Dividend(Half yearly report only - item 15.6) Nil c Nil c Previous corresponding period (Preliminary final report - item 15.5; half yearly report - item 15.7) Nil c Nil c Record date for determining entitlements to the dividend, (in the case of a trust, distribution) (see item 15.2) N/A Brief explanation of omission of directional and percentage changes to profit in accordance with Note 1 and short details of any bonus or cash issue or other item(s) of importance not previously released to the market: - MORE TO FOLLOW HUTCHISON TELECOMMUNICATIONS (AUSTRALIA) 2001-02-27 ASX-SIGNAL-G HOMEX - Sydney +++++++++++++++++++++++++ REVIEW OF OPERATIONS The key achievements in the 12 month period to 31 December 2000 have been the launch of the Orange One CDMA network, crystallisation of the company's wirefree data strategy, significant increase in the awareness of the Orange brand and continued strong growth in Hutchison's mobile resale business. Following announcement in 1999 of its plans to build and operate its first cellular network, based on CDMA technology, Hutchison has worked closely with its technology partner, Samsung Electronics Co Limited (Samsung) in the rollout of this network. By June 2000, this network was substantially complete and the full service, Orange One, became commercially available. Using the world's first application of LocalZone technology, pioneered by Hutchison and Samsung, Orange One integrates home and mobile telephony on one mobile handset. This service is designed to address the growing need for second and third telephone lines in Hutchison's licence areas in and around Sydney and Melbourne, targeting both residential and small to medium sized business users. During 2000, Hutchison refined its plans to develop a high speed data and voice services business which it expects to launch towards the end of 2002 or in early 2003. The company has undertaken significant work in identifying the technology which will be available and the opportunities to provide customers with a range of innovative services and products. In March 2000, Hutchison acquired licences for 15 MHz of 1800 MHz spectrum in Sydney and Melbourne and 10 MHz of the same spectrum in Brisbane, Adelaide and Perth for $671 million. As a result, Hutchison will build a third generation (3G) W-CDMA UMTS wirefree data and voice services network using these 1800MHz spectrum licences. In June 2000, Hutchison completed a $702 million rights issue, using the proceeds to repay short term financing for the 1800 MHz spectrum licences, which were paid for in May 2000. Support for the rights issue was particularly encouraging with shareholders subscribing for 84.8% of their entitlements, despite sharemarket volatility in the telecommunications sector. Following the allotment of new shares, Hutchison Whampoa Limited's holding increased to 58% while Leanrose Pty Limited remained the second largest shareholder with 12.5%. The remaining 29.5% of shares are publicly held. In December 2000, Hutchison replaced its existing $222 million financing facility with a 364 day, $420 million facility. The new facility was provided by four of Hutchison's existing relationship banks - ABN AMRO Bank, The Chase Manhattan Bank, Citibank and WestLB. Unlike the prior arrangement, the new facility did not require a guarantee from Hutchison's parent company, Hutchison Whampoa Limited. This facility will be used to fund payment of the balance due on the Samsung contract for the Orange One network and for the continued development of the company's business, including initial costs associated with the establishment of Hutchison's 3G project. The balance of the Samsung contract price is due to be paid upon Hutchison's acceptance of the Orange One network in 2001. During 2001, Hutchison will put in place longer term funding which will cover the cost of the 3G project and further development of the business operations. MORE TO FOLLOW HUTCHISON TELECOMMUNICATIONS (AUSTRALIA) 2001-02-27 ASX-SIGNAL-G HOMEX - Sydney +++++++++++++++++++++++++ KEY STATISTICS FOR HUTCHISON'S OPERATIONS AT 31 DECEMBER 2000 As at As at As at Change over 31 Dec 31 Dec 31 Dec past 12 1998 1999 2000 months % Subscriber Numbers Mobile resale (GSM & CDMA) 191,070 250,894 293,925 17% Orange One n/a n/a 74,703 n/a Paging and messaging 90,252 83,538 79,352 -5% Value Added Services (Long Distance & Internet) 7,442 20,337 22,536 11% Total subscribers 288,764 354,769 470,516 33% Financial Data FY 1998 FY 1999 FY 2000 $ million Mobile resale revenue 214.9 284.9 333.7 17% Orange One n/a n/a 22.0 n/a Paging and messaging 41.6 39.5 37.9 -4% Other revenue (inc. Long Distance, Internet) 2.2 5.2 11.1 113% Total revenue 258.7 329.6 404.7 23% Operating expenses -243.4 -317.2 -489.9 54% EBITDA 15.3 12.4 -85.2 -787% EBIT 12.7 5.9 -98.9 -1776% NPAT 12.2 9.0 -92.5 -1128% Abnormal items nil -6.7 nil n/a NPAT & abnormal items 12.2 2.3 -92.5 -4122% OPERATING RESULTS Revenue for the 2000 calendar year increased 23% to $404.7 million driven by a 33% increase in subscriber numbers over the same period. Net Profit After Tax and Abnormal Items fell from a $2.3 million profit in December 1999 to a $92.5 million loss in December 2000 due to costs associated with the early stages of rapid growth in Hutchison's business. These costs included the Orange One network utilisation and operating costs as well as costs associated with acquisition of subscribers, increased staff levels and acceleration of a broad advertising and promotion campaign. MOBILE RESALE Mobile resale services contributed around 82% of revenue for the full year, which was predominantly from the GSM resale business. Hutchison's mobile resale subscriber base recorded strong growth during the period to finish at 293,925 at 31 December 2000. This represents an increase of 17% from 250,894 at 31 December 1999. Importantly, this growth was achieved while maintaining a high annualised average revenue per user (ARPU) of $1,000 (ARPU for the 1999 year was $1009). Although the combination of strong subscriber growth and high ARPU is a key feature of this business, industry trends suggest it will prove to be a challenge to maintain these levels. Average mobile resale minutes of usage remained steady at 163 minutes per subscriber per month, compared to 165 minutes per subscriber per month for the 1999 full year. Mobile resale churn continues to be maintained at about 3% per month. ORANGE ONE Orange One is a world-first service. To ensure its success, Hutchison focused on optimising performance and refining features of the network. Significant work was also undertaken in improving business and customer support systems and competencies prior to the mid-year launch. From its commercial launch date in July 2000 through to 31 December 2000, Orange One services contributed revenue of $22 million representing 10.4% of total revenue for the six-month period. As at 31 December 2000, Hutchison had 74,703 Orange One subscribers. Since its launch, the monthly ARPU for Orange One has continued to increase, reaching $80 in December 2000. Average minutes of usage by Orange One customers for the last six months of 2000 has been 264 minutes per subscriber per month. PAGING AND MASSAGING In line with Hutchison's expectations for this mature product, at 31 December 2000, Hutchison had 79,352 paging and messaging subscribers, down 5% from 83,538 subscribers in the previous corresponding period. Paging and messaging revenue also fell by 4%. VALUE ADDED SERVICES Value Added Services (VAS) are long distance and internet products, sold as a bundled service to enable Hutchison to provide customers with comprehensive communications solutions. In 2000, the number of VAS subscribers grew 11% to 22,536. OPERATING EXPENDITURE The main components of operating expenditure are network cost of sales (NCOS), subscriber acquisition costs (SAC) and staff costs. NCOS primarily includes payments to Cable & Wireless Optus Limited for access to its GSM network, costs associated with operating the paging network and, from 1 June 2000, costs associated with operating the Orange One network. NCOS increased from $163.2 million in 1999 to $234.7 million in 2000. This reflects the costs associated with being a network operator and growth in GSM resale subscribers. SAC primarily include dealer commissions and handset subsidies. SAC, as a percentage of revenue, increased slightly driven by intensified competition. The remaining operating expenditure (excluding depreciation and amortisation) increased from $154 million in 1999 to $255.2 million in 2000. This increase was driven largely by increases in staff costs and other operating expenses to support growth in the business. Bad debt for the year was 2.4% of revenue. CAPITAL EXPENDITURE Capital expenditure for the full year was $744.8 million, of which $35.3 million was expended on the Orange One business. $687.5 million was for costs associated with Hutchison's purchase of 1800 MHz spectrum licences and the commencement of the 3G project. $22 million was invested in supporting growth in the existing business. Total investment in the CDMA network as at 31 December 2000 was $179.9 million, comprising spectrum licence costs of $72.2 million, a $19.8 million deposit paid to Samsung, $30.2 million of assets associated with the network and $57.7 million of capitalised development costs. Payment of the balance of the contract price to Samsung will occur in 2001. Orange One development costs ceased being capitalised on 1 June 2000 when the full Orange One service became available to existing customers. As at 31 December 2000, Hutchison had $220.3 million of capital expenditure commitments which includes payment of the balance of the contract price to Samsung. This amount also includes significant expenditure on IT systems, including a replacement billing system and an accounting and business support platform to provide the foundation for further growth. GST The implementation of Goods and Services Tax compliance from 1 July 2000 was successfully achieved. OUTLOOK Going forward, the key impacts on the business will be the 3G project and continued rollout of the Orange One business plan. Potential changes in the telecommunications industry in Australia which may also impact the business include: * Growth in lower usage and prepaid mobile customers; * Continued pressure on tariffs; * Domestic industry rationalisation; * Continued growth in Internet and data usage; and * The strategic review by Cable & Wireless Optus of its businesses. The company is exploring opportunities to expedite the 3G project in line with Hutchison Whampoa Limited's international focus on 3G technologies. Hutchison is committed to being successful in delivering 3G services and will benefit from its relationship with Hutchison Whampoa Limited, which provides access to leading edge technology and content and application development initiatives. The company will participate in the Australian auction of 2.1GHz spectrum licences, expected to commence in mid March 2001, as such licences, at a reasonable price, will present an opportunity for Hutchison to expand its planned 3G network. DIRECTORS The following persons were directors of Hutchison Telecommunications (Australia) Limited during the whole of the year and up to the date of this report: Canning F N Fok Ting Y Chan Barry Roberts-Thomson Justin H Gardener Khoo Chek Ngee Holger Kluge Frank J Sixt ROUNDING OF AMOUNTS TO NEAREST THOUSAND DOLLARS The company is of a kind referred to in Class Order 98/0100 issued by the Australian Securities and Investments Commission, relating to the "rounding off" of amounts in the directors' report and financial report. Amounts in the directors' report and financial report have been rounded off to the nearest thousand dollars in accordance with that Class Order. This report is made in accordance with a resolution of the directors. B Roberts-Thomson DIRECTOR MORE TO FOLLOW HUTCHISON TELECOMMUNICATIONS (AUSTRALIA) 2001-02-27 ASX-SIGNAL-G HOMEX - Sydney +++++++++++++++++++++++++ (Not Equity Accounted) CONSOLIDATED PROFIT AND LOSS ACCOUNT (These figures are NOT equity accounted) CURRENT PREVIOUS PERIOD CORRESPONDING PERIOD AUD000 AUD000 1.1 Sales (or equivalent operating) revenue 404,652 329,611 1.2 Other revenue 6,530 3,509 1.3 Total revenue 411,182 333,120 1.4 Operating profit (loss) before abnormal items and tax (92,499) 9,017 1.5 Abnormal items before tax (detail in item 2.4) - (6,739) 1.6 Operating profit (loss) before tax (items 1.4 + 1.5) (92,499) 2,278 1.7 Less tax - - 1.8 Operating profit (loss) after tax but before outside equity interests (92,499) 2,278 1.9 Less outside equity interests - - 1.10 Operating profit (loss) after tax attributable to members (92,499) 2,278 1.11 Extraordinary items after tax (detail in item 2.6) - - 1.12 Less outside equity interests - - 1.13 Extraordinary items after tax attributable to members - - 1.14 Total operating profit (loss) and extraordinary items after tax (items 1.8 + 1.11) (92,499) 2,278 1.15 Operating profit (loss) and extraordinary items after tax attributable to outside equity interests (items 1.9 + 1.12) - - 1.16 Operating profit (loss) and extraordinary items after tax attributable to members (items 1.10 + 1.13) (92,499) 2,278 1.17 Retained profits (accumulated losses) at beginning of financial period (37,478) (39,756) 1.18 If change in accounting policy as set out in clause 11 of AASB 1018 Profit and Loss Accounts, adjustments as required by that clause(include brief (description) - - 1.19 Aggregate of amounts transferred from reserves - - 1.20 Total available for appropriation (129,977) (37,478) 1.21 Dividends provided for or paid - - 1.22 Aggregate of amounts transferred to reserves - - 1.23 Retained profits (accumulated losses) at end of financial period (129,977) (37,478) There is no income tax expense, as there are tax losses as at 31/12/2000. The directors' estimate of the potential future income tax benefit as at 31/12/2000, in respect of tax losses not brought to account is $41,871,225. PROFIT RESTATED TO EXCLUDE Current Previous AMORTISATION OF GOODWILL Period Corresponding Period AUD000 AUD000 1.24 Operating profit(loss) after tax before outside equity interests (items 1.8) and amortisation of goodwill (92,499) 2,278 1.25 Less (plus) outside equity interests - - 1.26 Operating profit(loss) after tax (before amortisation of goodwill) attributable to members (92,499) 2,278 INTANGIBLE, ABNORMAL AND EXTRAORDINARY ITEMS Consolidated - current period Before Related Related Amount tax tax outside (after equity tax) interests attributable to members AUD000 AUD000 AUD000 AUD000 2.1 Amortisation of goodwill - - - - 2.2 Amortisation of other intangibles 5,807 - - 5,807 2.3 Total amortisation of intangibles 5,807 - - 5,807 2.4 Abnormal items - - - - 2.5 Total abnormal items - - - - 2.6 Extraordinary items - - - - 2.7 Total extraordinary items - - - - COMPARISON OF HALF YEAR PROFITS Current Previous (Preliminary final statement only) year year AUD000 AUD000 3.1 Consolidated operating profit (loss) after tax attributable to members reported for the 1st half year (item 1.10 in the half yearly report) (22,275) (6,838) 3.2 Consolidated operating profit (loss) after tax attributable to members for the 2nd half year (70,224) 9,116 CONSOLIDATED BALANCE SHEET (See note 5) At end of As in last As in last current annual half yearly period report report AUD000 AUD000 AUD000 CURRENT ASSETS 4.1 Cash 48,307 140,102 811,226 4.2 Receivables 67,934 46,694 55,503 4.3 Investments - - - 4.4 Inventories 10,210 3,764 2,755 4.5 Other (provide details if material) Network deposit paid 19,842 19,842 19,842 Spectrum licence bidding deposit - 8,086 - Prepayments & Other 5,931 5,326 7,676 4.6 Total current assets 152,224 223,814 897,002 NON-CURRENT ASSETS 4.7 Receivables - - - 4.12 Other property, plant and equipment (net) 61,804 33,903 37,823 4.13 Intangibles (net) 806,713 104,752 808,564 4.14 Other (provide details if material) - - - 4.15 Total non-current assets 868,517 138,655 846,387 4.16 Total assets 1,020,741 362,469 1,743,389 CURRENT LIABILITIES 4.17 Accounts payable 89,039 50,393 88,031 4.18 Borrowings 15,235 - 670,000 4.19 Provisions 5,005 3,459 4,012 4.20 Other (provide details if material) Deposits 15 32 30 Unearned Income 9,298 7,915 9,686 4.21 Total current liabilities 118,592 61,799 771,759 NON-CURRENT LIABILITIES 4.23 Borrowings - - - 4.24 Provisions 882 556 741 4.26 Total non-current liabilities 882 556 741 4.27 Total liabilities 119,474 62,355 772,500 4.28 Net assets 901,267 300,114 970,889 EQUITY 4.29 Capital 1,031,244 337,592 1,030,642 4.30 Reserves - - - 4.31 Retained profits (accumulated losses) (129,977) (37,478) (59,753) 4.32 Equity attributable to members of the parent entity 901,267 300,114 970,889 4.33 Outside equity interests in controlled entities - - - 4.34 Total equity 901,267 300,114 970,889 4.35 Preference capital and related premium included as part of 4.32 - - - EXPLORATION AND EVALUATION EXPENDITURE CAPITALISED To be completed only by entities with mining interests if amounts are material. Include all expenditure incurred regardless of whether written off directly against profit. Current Previous period corresponding period AUD000 AUD000 5.1 Opening balance N/A N/A 5.2 Expenditure incurred during current period - - 5.3 Expenditure written off during current period - - 5.4 Acquisitions, disposals, revaluation increments, etc. - - 5.5 Expenditure transferred to Development Properties - - 5.6 Closing balance as shown in the consolidated balance sheet (item 4.10) - - DEVELOPMENT PROPERTIES (To be completed only by entities with mining interests if amounts are material) Current Previous period corresponding period AUD000 AUD000 6.1 Opening balance N/A N/A 6.2 Expenditure incurred during current period - - 6.3 Expenditure transferred from exploration and evaluation - - 6.4 Expenditure written off during current period - - 6.5 Acquisitions, disposals, revaluation increments, etc. - - 6.6 Expenditure transferred to mine properties - - 6.7 Closing balance as shown in the consolidated balance sheet (item 4.11) - - CONSOLIDATED STATEMENT OF CASH FLOWS (See note 6) Current Previous period corresponding period AUD000 AUD000 CASH FLOWS RELATED TO OPERATING ACTIVITIES 7.1 Receipts from customers 384,778 318,170 7.2 Payments to suppliers and employees (455,115) (312,906) 7.3 Dividends received 13 17 7.4 Interest and other items of similar nature received 6,511 3,488 7.5 Interest and other costs of finance paid (100) (328) 7.6 Income taxes paid - - 7.7 Other (provide details if material) - - 7.8 Net operating cash flows (69,913) 8,441 CASH FLOWS RELATED TO INVESTING ACTIVITIES 7.9 Payment for purchases of property, plant and equipment (37,022) (28,759) 7.10 Proceeds from sale of property, plant and equipment 5 - 7.15 Other (provide details if material) - Payments for intangibles (28,889) (25,976) - Deposit for 1800MHZ spectrum licence bid - (8,086) - Payment for 1800MHZ spectrum licence (670,863) - - Deposit for construction of CDMA Network - (19,842) 7.16 Net investing cash flows (736,769) (82,663) CASH FLOWS RELATED TO FINANCING ACTIVITIES 7.17 Proceeds from issues of securities (shares, options, etc.) 693,553 322,592 7.18 Proceeds from borrowings - 81,565 7.19 Repayment of borrowings - (191,145) 7.20 Dividends paid - - 7.21 Other (provide details if material) - - - Proceeds from employee share options exercised 99 - 7.22 Net financing cash flows 693,553 213,012 7.23 NET INCREASE (DECREASE) IN CASH HELD (107,030) 138,790 7.24 Cash at beginning of period (see Reconciliation of cash) 140,102 1,312 7.25 Exchange rate adjustments to item 7.24. - - 7.26 Cash at end of period (see Reconciliation of cash) 33,072 140,102 NON-CASH FINANCING AND INVESTING ACTIVITIES Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows are as follows. If an amount is quantified, show comparative amount. Nil RECONCILIATION OF CASH Reconciliation of cash at the end of Current Previous the period (as shown in the consolidated period corresponding statement of cash flows) to the related period items in the accounts is as follows. AUD000 AUD000 8.1 Cash on hand and at bank 8,218 1,881 8.2 Deposits at call - - 8.3 Bank overdraft (15,235) - 8.4 Other (provide details) - Fixed term deposits - 60,081 - Bank Bills 40,089 78,140 8.5 Total cash at end of period (item 7.25) 33,072 140,102 RATIOS Current Previous period corresponding period PROFIT BEFORE ABNORMALS AND TAX/SALES 9.1 Consolidated operating profit (loss) before abnormal items and tax (item 1.4) as a percentage of sales revenue (item 1.1) (22.90) % 2.7 % PROFIT AFTER TAX / EQUITY INTERESTS 9.2 Consolidated operating profit (loss) after tax attributable to members (item 1.10) as a percentage of equity (similarly attributable) at the end of the period (item 4.31) (10.30) % 0.8 % EARNINGS PER SECURITY (EPS) 10.1 Calculation of basic, and fully diluted, EPS in accordance with "AASB 1027: Earnings per Share" (a) Basic EPS (16.00) c 0.6 c (b) Diluted EPS (if materially (15.80) c 0.6 c different from (a)) (c) Weighted average number of number of ordinary shares outstanding during the period used in the calculation of the Basic EPS 578,194,418 352,946,129 NTA BACKING Current Previous (see note 7) period corresponding period 11.1 Net tangible asset backing per ordinary security 14 c 41 c MORE TO FOLLOW HUTCHISON TELECOMMUNICATIONS (AUSTRALIA) 2001-02-27 ASX-SIGNAL-G HOMEX - Sydney +++++++++++++++++++++++++ (Not Equity Accounted) DETAILS OF SPECIFIC RECEIPTS/OUTLAYS, REVENUES/EXPENSES Current Previous period corresponding period AUD000 AUD000 12.1 Interest revenue included in determining item 1.4 6,511 3,488 12.2 Interest revenue included in item 12.1 but not yet received (if material) - - 12.3 Interest expense included in item 1.4 (include all forms of interest, lease finance charges, etc.) 100 328 12.4 Interest costs excluded from item 12.3 and capitalised in asset values (if material) 8,937 1,805 12.5 Outlays (except those arising from the acquisition of an existing business) capitalised in intangibles (if material) 699,752 27,882 12.6 Depreciation and amortisation (excluding amortisation of intangibles) 9,116 6,539 CONTROL GAINED OVER ENTITIES HAVING MATERIAL EFFECT (See note 8) 13.1 Name of entity (or group of entities) N/A 13.2 Consolidated operating profit (loss) and extraordinary items after tax of the entity (or group of entities) since the date in the current period on which control was acquired $ - 13.3 Date from which such profit has been calculated - 13.4 Operating profit (loss) and extraordinary items after tax of the entity (or group of entities) for the whole of the previous corresponding period $ - LOSS OF CONTROL OF ENTITIES HAVING MATERIAL EFFECT (See note 8) 14.1 Name of entity (or group of entities) N/A 14.2 Consolidated operating profit (loss) and extraordinary items after tax of the entity (or group of entities) for the current period to the date of loss of control $ - 14.3 Date to which the profit (loss) in item 14.2 has been calculated - 14.4 Consolidated operating profit (loss) and extraordinary items after tax of the entity (or group of entities) while controlled during the whole of the previous corresponding period $ - 14.5 Contribution to consolidated operating profit (loss) and extraordinary items from sale of interest leading to loss of control $ - REPORTS FOR INDUSTRY AND GEOGRAPHICAL SEGMENTS Information on the industry and geographical segments of the entity must be reported for the current period in accordance with AASB 1005: Financial Reporting by Segments. Because of the different structures employed by entities, a pro forma is not provided. Segment information should be completed separately and attached to this statement. However, the following is the presentation adopted in the Appendices to AASB 1005 and indicates which amounts should agree with items included elsewhere in this statement. N/A SEGMENTS Operating Revenue Sales to customers outside the economic entity Inter-segment sales Unallocated revenue Total revenue (consolidated total equal to item 1.3) Segment result (including abnormal items where relevant) Unallocated expenses Consolidated operating profit after tax (before equity accounting) (equal to item 1.8) Segment assets )Comparative data for segment Unallocated assets )assets should be as at the end of Total assets (equal to item 4.16) )the previous corresponding period. DIVIDENDS (in the case of a trust, distributions) 15.1 Date the dividend (distribution) is payable N/A 15.2 Record date to determine entitlements to the dividend (distribution) (ie, on the basis of registrable transfers received up to 5.00pm if securities are not CHESS approved, or security holding balances established by 5.00pm or such later time permitted by SCH Business Rules if securities are CHESS approved) - 15.3 If it is a final dividend, has it been declared (Preliminary final statement only) - AMOUNT PER SECURITY Amount per Franked Amount Amount per security per security security at 36% tax of foreign source dividend (Preliminary final report only) 15.4 Final dividend: Current year Nilc -c -c 15.5 Previous year Nilc -c -c (Half yearly and preliminary final statements) 15.6 Interim dividend: Current year Nilc -c -c 15.7 Previous year Nilc -c -c TOTAL ANNUAL DIVIDEND (DISTRIBUTION) PER SECURITY (Preliminary final statement only) Current Previous year year 15.8 Ordinary securities Nil c Nil c 15.9 Preference securities - c - c TOTAL DIVIDEND (DISTRIBUTION) Current Previous period corresponding AUD000 period AUD000 15.10 Ordinary securities Nil Nil 15.11 Preference securities - - 15.12 Total 0 0 The dividend or distribution plans shown below are in operation. N/A The last date(s) for receipt of election notices for the dividend or distribution plans - Any other disclosures in relation to dividends (distributions) N/A EQUITY ACCOUNTED ASSOCIATED ENTITIES AND OTHER MATERIAL INTERESTS Equity accounting information attributable to the economic entity's share of investments in associated entities must be disclosed in a separate note. See AASB 1016: Disclosure of Information about Investments in Associated Companies. Current Previous Investments in associated entities period corresponding AUD000 period AUD000 16.1 Statutory carrying value of investments in associated entities (SCV) N/A N/A 16.2 Share of associated entities' retained profits and reserves not included in SCV: - - Retained profits - - Reserves - - 16.3 Equity carrying value of investments 0 0 MATERIAL INTERESTS IN ENTITIES WHICH ARE NOT CONTROLLED ENTITIES The economic entity has an interest (that is material to it) in the following entities. Name of entity Percentage of ownership Contribution to operating interest (ordinary profit (loss) and securities, units, etc) extraordinary items held at end of period after tax 17.1 Equity accounted Current Previous Current Previous associated period corresponding period corresponding entities period AUD000 period AUD000 Equity accounted N/A - - - - 17.2 Other material Not equity accounted interests (ie part of item 1.14) N/A - - - - ISSUED AND QUOTED SECURITIES AT END OF CURRENT PERIOD Description includes rate of interest and any redemption or conversion rights together with prices and dates. Category of Number Number Par value Paid-up securities issued quoted (cents) value (cents) 18.1 Preference securities (description) - - - - 18.2 Changes during current period (a) increases through issues - - - - (b) decreases through returns of capital buybacks, redemptions - - - - 18.3 Ordinary securities 678,625,279 - - - 18.4 Changes during current period (a) increases through issues Rights issue 3 for every 7 shares fully paid 203,571,429 - 345 345 (b) decreases through returns of capital buybacks 53,850 - 184 184 18.5 Convertible debt securities (description and conversion factor) - - - - 18.6 Changes during current period (a) increases through issues - - - - (b) decreases through securities matured, converted - - - - 18.7 Options (description Exercise Expiry and conversion factor) price date (cents) - - - - 18.8 Issued during current period 100,000 - 278 29/08/2005 50,000 - 300 12/11/2005 50,000 - 305 19/11/2005 3,500 - 200 15/08/2002 18.9 Exercised during current period 53,850 - 184 15/08/2002 18.10 Expired during current period 445,000 - - - 53,750 - - - 18.11 Debentures (totals only) - - 18.12 Unsecured notes (totals only) - - COMMENTS BY DIRECTORS Comments on the following matters are required by ASX or, in relation to the half yearly statement, by AASB 1029: Half-Year Accounts and Consolidated Accounts. The comments do not take the place of the directors' report and statement (as required by the Corporations Law) and may be incorporated into the directors' report and statement. For both half yearly and preliminary final reports, if there are no comments in a section, state NIL. If there is insufficient space to comment, attach notes to this report. BASIS OF ACCOUNTS PREPARATION If this report is a half yearly report, it is a general purpose financial report prepared in accordance with the listing rules and AASB 1029: Half-Year Accounts and Consolidated Accounts. It should be read in conjunction with the last annual report and any announcements to the market made by the entity during the period. [Delete if inapplicable.] Material factors affecting the revenues and expenses of the economic entity for the current period Nil A description of each event since the end of the current period which has had a material effect and is not related to matters already reported, with financial effect quantified (if possible) Nil Franking credits available (amount): $ Nil Prospects for paying fully or partly franked dividends for at least the next year Nil Changes in accounting policies since the last annual report are disclosed as follows. Nil ADDITIONAL DISCLOSURE FOR TRUSTS 19.1 Number of units held by the management company or a related party of it N/A 19.2 A statement of the fees and commissions payable to the management company. - Identify: initial service charges - management fees - other fees - ANNUAL MEETING (Preliminary final statement only) The annual meeting will be held as follows: Place The Auditorium Lower Ground Floor Exchange Square 10 Bridge Street Sydney NSW 2000 Date 03/05/2001 Time 2:30pm Approximate date the annual report will be available 02/04/2001 COMPLIANCE STATEMENT 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Law or other standards acceptable to ASX (see note 13). Identify other standards used - 2 This statement, and the financial statements under the Corporations Law (if separate), use the same accounting policies. 3 This statement does give a true and fair view of the matters disclosed (see note 2). 4 This statement is based on financial statements to which one of the following applies. (Tick one) X The financial The financial statements have statements have been audited. been subject to review. The financial The financial statements are in statements have not the process of yet been audited or being audited or reviewed. subject to review. 5 If the audit report or review by the auditor is not attached, details of any qualifications will follow immediately they are available. (Half yearly report only - the audit report or review by the auditor must be attached to this report if the report is to satisfy the requirements of the Corporations Law.) 6 The entity has a formally constituted audit committee. B Roberts-Thompson (DIRECTOR) 27/02/2001 MORE TO FOLLOW HUTCHISON TELECOMMUNICATIONS (AUSTRALIA) 2001-02-27 ASX-SIGNAL-G HOMEX - Sydney +++++++++++++++++++++++++ MEDIA RELEASE STRONG SUBSCRIBER INCREASE FUELS 23% REVENUE GROWTH FOR HUTCHISON SUMMARY Hutchison Telecommunications (Australia) Limited (Hutchison) today reported strong revenue growth of 23% to $404.7 million for the 12 month period to 31 December 2000 driven primarily by a 33% increase in subscriber numbers. The significant increase in operating expenditure consistent with the start-up nature of Hutchison's business led to a net loss for the year of $92.5 million, generated on negative earnings before interest and tax (EBIT) of $98.9 million. HIGHLIGHTS * Revenue growth of 23% to $404.7 million. * Total subscriber growth of 33% to 470,516 total subscribers. * Successful launch of the Orange One CDMA network during the year. * Acquisition during the year of spectrum licences in the 1800 MHz band. * Significant increase in awareness of the Orange brand. * Continued strong growth in the Orange mobile resale business. * Strong growth in Orange One business. * Establishment of new financing facility during the year. FINANCIAL RESULTS Total revenue of $404.7 million was underpinned by mobile resale revenue of $333.7 million representing a 17% increase on the previous year. Importantly, this growth was achieved while maintaining a high annual average revenue per user (ARPU) of $1,000 for the mobile resale product. Paging and messaging revenue of $37.9 million was broadly in line with the prior year while revenue from Orange One was $22 million. The company's operating expenses for the year increased approximately 54% to $489.9 million reflecting the costs associated with being a network operator and the start up position of the Orange One business. Hutchison incurred negative earnings before interest, tax, depreciation and amortisation (EBITDA) of $85.2 million and negative EBIT of $98.9 million leading to a net loss after tax of $92.5 million. OTHER DEVELOPMENTS During the 12 month period to 31 December 2000 Hutchison successfully launched its innovative Orange One service. The marketing campaign used the phrase "the home phone that can go mobile" and was designed to raise awareness of the uniqueness of the service. It also addressed the growing need for second and third telephone lines by both residential users and small to medium sized businesses as well as providing cost savings for mobile phone users. Prompted awareness of the Orange brand increased to 82%, and as at 31 December 2000 there were 74,703 Orange One subscribers. Orange One uses the world's first application of LocalZone technology, which was pioneered by Hutchison and its network supplier Samsung Electronics Co Limited. During the year, Hutchison refined its plans to develop a high speed data services business which it expects to launch towards the end of 2002/early 2003. MANAGING DIRECTOR'S COMMENT Commenting on the release of the company's annual results, the Managing Director of Hutchison Telecommunications (Australia) Limited, Mr Barry Roberts-Thomson, said: "We are pleased to have achieved strong revenue growth of 23% during the year fuelled by a one third increase in overall subscriber numbers. Once again mobile resale services underpinned group revenue while our Orange One business is on track for future growth. "Our strategy is to be a leading provider of high speed data services which we believe will drive the next wave of growth in the Australian telecommunications industry. Negotiations with a vendor to construct our high speed data network are well advanced and will enable us to bring third generation (3G) services to the Australian market within two years." "Hutchison in Australia is in a unique position to benefit from the significant resources the Hutchison Whampoa Group globally is investing in 3G, including the development of UMTS W-CDMA technologies for the delivery of unique 3G services. Hutchison will also benefit through the ability to participate in global content purchasing arrangements and the Group's demonstrated track record of consumer understanding," he said. INFORMATION ABOUT HUTCHISON Hutchison Telecommunications (Australia) Limited has over 10 years of involvement in Australian telecommunications and its goal is to be a leading provider of wirefree services. The company listed on the Australian Stock Exchange in August 1999 and is indirectly 58% owned by Hutchison Whampoa Limited, a Hong Kong-based company with operations which include an international telecommunications business operating throughout Europe, Asia, Israel and India. Hutchison launched its own wireless service, using CDMA technology, called Orange One in mid-2000. This world first service is the home phone that can go mobile. It operates on Orange's own purpose-built CDMA network. When you make a call the network knows the location of the handset. Calls are charged at local rates when the caller is at home (called LocalZone) and mobile rates apply when the calls are made outside the LocalZone. The Orange One CDMA network provides coverage to around eight million people in and around Sydney and Melbourne. FOR FURTHER INFORMATION, PLEASE CONTACT: Kim Waft INVESTOR RELATIONS MANAGER Tel: (02) 8902 0554 email: kwatt@orange.net.au Geoff Fowlstone FOWLSTONE COMMUNICATIONS Tel (02) 9955 9899 Mobile 0413 746 949