1

2013 Annual Report

24 March 2014

Agenda

Financial Highlights Operations ReviewBusiness Prospects

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Financial Highlights

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Annual Results (1)

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5

2013

(HK$ M)2012

(HK$ M)

Turnover 1,138.1 900.6

Profit Attributable to

Equity Shareholders545.5 354.4

Annual Results (2)

Turnover Breakdown by Business

6

77

Consolidated Income Statement (1)

2013

(HK$’000)

2012

(HK$’000)

Turnover 1,138,055 900,611

Cost of services (408,075) (372,363)

Gross profit 729,980 528,248

Other net income 43,119 25,515

Valuation gain on investment property 1,568 896

Administrative expenses(133,578) (114,779)

Profit from operations 641,089 439,880

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Consolidated Income Statement (2)2013

(HK$’000)

2012

(HK$’000)

Profit from operations 641,089 439,880

Fair value changes on financial instrument designated at fair value through profit or loss

34,470 (34,211)

Finance costs (27,928) (21,250)

Profit before taxation 647,631 384,419

Income tax (102,160) (29,984)

Profit after taxation 545,471 354,435

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EBITDA Margins

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Note: EBITDA Margin represents earnings before interest income / expenses, other income, taxation, depreciation, amortization, impairment loss and fair value changes on financial instrument as a percentage of turnover.

Net Worth/ Share

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Assets & Liabilities

2013(HK$ Million)

2012(HK$ Million)

Total Assets 5,546 5,028

Total Liabilities 1,970 1,941

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(As at 31 December)

Gearing

13

Cash

2013(HK$ Million)

2012(HK$ Million)

Free cash 1,549 729

Pledged deposits

16 57

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(As at 31 December)

Capital Commitment

15

2013(HK$’000)

2012(HK$’000)

Contracted for * 1,653,799 14,091

Authorised but not contracted for - 4,740

1,653,799 18,831

(As at 31 December)

* including APSTAR 9 Satellite contract

Operations Review

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Transponder Utilization Rates

2012 2013

APSTAR 5

(29 transponders)74.2% 85.5%

APSTAR 6 80.4% 90.9%

APSTAR 7 74.6% 70.4%

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Satellite under Construction – APSTAR 9

China Aerospace DFH-4 platform, to be launched around Q4 of 2015

Located at 142 E orbital slot with 32 C and 14 Ku ⁰transponders

Broad coverage for entire Asia and pacific island countries to meet requirement in broadcasting section for emerging market

One of the highest C-band performance in East Asia region Sophisticated Ku-band coverage in East India Ocean to West

Pacific ocean region, to address increasing demand in maritime and in-flight connectivity

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APSTAR 9A

Lease certain transponders of Chinasat 5A from China Satcom

Located at 142 E orbital slot, ⁰ and was renamed as APSTAR 9A

Develop customer base for APSTAR 9 Satellite

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APSTAR 7 High power geostationary telecommunication satellite

based on SpaceBus 4000 C2 platform of Thales Alenia Space

Launched in 31 March 2012 with mission life of 18.5 years, located at 76.5 E orbital slot⁰

28 C-band and 28 Ku-band transponders

Ku-band transponders are built with China Beam, Middle East and North Africa Beam, African Beam, and Steerable Beam

APT can further expand the satellite capacity and coverage of the Group to above said regions

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APSTAR 7B / Chinasat 12 - Assigned

Based on SpaceBus 4000 C2 platform of Thales Alenia Space with 28 C-band and 23 Ku-band transponders

Transferred to China Satcom

Additional transponder capacities for future business growth potential

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High power geostationary telecommunication satellite based on a SpaceBus 4000 C1 platform of Thales Alenia Space

Launched in April 2005, positioned at 134 E orbital slot⁰

38 C-band and 12 Ku-band transponders

Started commercial operation in June 2005

Operation mission life over 15 years

Maintained high utilization rate with further growth potential

Strong market penetration in Asia Pacific region and China

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APSTAR 6APSTAR 6

High power geostationary telecommunication satellite based on FS1300 made by SS/L of USA

Launched in June 2004, positioned at 138 E orbital slot⁰

APT keeps 20 C-Band & 9 Ku-Band Transponders

The mission life is about 15 years

Maintained high utilization rate with further growth potential

Strong competitive edge in Asia Pacific region

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APSTAR 5APSTAR 5

Satellite TV Broadcasting Services

APT Satellite TV Development Ltd. for Satelite TV Service under Non-Domestic Television Programme Licence

Satellite-based Telecommunications Services

APT Telecom Services Limited for satellite telecom services under Fixed Carrier Licence

Data Centre Services

APT Datamatrix Limited for data centre services in its existing facilities.

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Customer Services

Business Prospects

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Business Prospects

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Supply of transponders will increase rapidly in the Asia Pacific Region, Middle East and African region. The market competition of the satellite industry will become very fierce with price pressure

Transponder utilisation rates of the Group’s satellites will be maintained at a high level and will achieve satisfactory revenue and profit

Various value- added services in TV broadcasting services, telecommunication services and data centre services will boost business growth

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APT Satellite Holdings

Limited

www.apstar.com