Annual Report 2013 1 SIGNIFICANT EVENTS in 2013

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Annual Report 2013 1 SIGNIFICANT EVENTS in 2013 CONTENTS 1 Corporate Profile 2 Significant Events in 2013 3 Awards 7 Statement from the Chairman 8 Statement from the Group Managing Director 13 Board of Directors 17 Combined Corporate Governance Report 31 Management’s Discussion and Analysis 39 Financial Information 164 Corporate Information CORPORATE PROFILE HKT is Hong Kong’s premier telecommunications service provider. It meets the needs of the Hong Kong public and local and international businesses with a wide range of services including local telephony, local data and broadband, international telecommunications, mobile, and other telecommunications businesses such as customer premises equipment sale, outsourcing, consulting, and contact centers. Together with the highly successful media business of its parent company, PCCW Limited, HKT offers innovative media content and services across the PCCW Group’s unique quadruple-play platforms – fixed-line, broadband Internet access, TV and mobile. Employing approximately 16,300 staff, HKT is headquartered in Hong Kong and maintains a presence in mainland China as well as other parts of the world. The share stapled units of the HKT Trust and HKT Limited are listed on The Stock Exchange of Hong Kong Limited (SEHK: 6823). HKT Trust and HKT Limited annual report 2013 1 SIGNIFICANT EVENTS IN 2013 JANUARY JULY HKT offers a series of industry HKT completes its 4G LTE network A new 3,000 sq. ft. HKT Showcase specific solutions to promote ICT with 1000Mbps optical fibers along at PCCW Tower opens its doors for adoption among SMEs in Hong major MTR lines. commercial customers. Kong. PCCW Global and Vietnam Introduces Hong Kong’s first HKT’s Commercial Customer Posts and Telecommunications 1000Mbps Wi-Fi service at a Services wins the prestigious Group sign a Memorandum of shopping mall in Mongkok. Customer Service Grand Award in Understanding to explore business the 2013 Hong Kong Awards for opportunities in Southeast Asia and The eye3 Smart Communications Industries. beyond. service is coupled with the Samsung GALAXY Tab 3 which NOVEMBER FEBRUARY customers can bring outdoors. 4G LTE network coverage in MTR is The PCCW-HKT Central Signature extended to the East Rail Line and Store featuring a wide range of Launch of HKT Enterprise Cloud, West Rail Line. telecom and lifestyle products and a carrier-grade cloud service services officially opens. providing connected, secure and HKT offers Octopus Mobile world-class services to enterprise SIM cards and mobile service HKT announces its first full financial customers. promotional offers to customers to year results, for the year ended celebrate winning a top marketing December 31, 2012, with increases AUGUST award for its “Ultimate Mobility” in Adjusted Funds Flow and strong HKT announces solid financial campaign. growth in revenue and EBITDA. performance for the six months ended June 30, 2013. Completed the Voice-over- APRIL LTE network trial with a view to Launches “Love & Care” services NETVIGATOR is appointed the launching VoLTE service when the for the elderly which comprise sole broadband service provider handsets are available. health care, and social and in the Government’s “i Learn at emergency support. home” program for underprivileged DECEMBER students. Partners with JETCO and HSBC JUNE to expand NFC mobile payment Leads the local mobile market SEPTEMBER services. with the rollout of SIM-based NFC HKT subsidiary eSmartHealth (Near Field Communication) Limited introduces cloud-based HKT provides free Fiber-to-the- mobile payment service with weight management solutions School broadband and Wi-Fi Hang Seng Bank. with Hong Kong and Tsuen Wan services to 29 primary and Adventist Hospital. secondary schools in a partnership A “Discover Hong Kong Tourism project. SIM Card” is tailor-made for visitors OCTOBER to Hong Kong. HKT cooperates with Octopus HKT reaches an agreement to acquire Cards to launch Hong Kong’s CSL New World Mobility Limited. Enhances the 4G LTE network to first mobile phone SIM card with The transaction is subject to 150Mbps and launches the first Octopus payment functions. approvals by HKT unitholders and 150Mbps-enabled smartphone in PCCW shareholders, as well as Hong Kong. PCCW Global is named the Best regulatory approval. International Wholesale Carrier at HKT becomes the first service the Telecoms World Awards Middle HKT and parent company PCCW provider in the Greater China region East 2013. receive an award for high service to deploy the 802.11ac Wi-Fi hours of volunteer services from network. the Social Welfare Department, the 12th year in a row that the Group has been honored. 2 HKT Trust and HKT Limited annual report 2013 AWARDS Awards Awardee Scheme Organizer 2013 Hong Kong Awards for Industries Hong Kong Retail • Customer Service Grand Award HKT Management Association AfricaCom Awards 2013 Informa Telecoms & • Best Innovative Service Finalist PCCW Global Media • Best Pan-African Initiative Finalist Best of IT Awards 2012 PC Market • My Favorite Mobile Service Provider Award PCCW-HKT mobile service • My Favorite Home Broadband Service Award NETVIGATOR CAPITAL Best of the Best Executives Award 2013 CAPITAL • Mobile Operator PCCW-HKT mobile service Computerworld HK Awards 2013 Computerworld Hong • Best Data and Telecom Services Provider HKT Kong • Best Corporate Mobile Services Provider PCCW-HKT mobile service Customer Service Excellence Award 2013 Hong Kong Association • Individual Award-Counter Service – Silver Award HKT Customer Service for Customer Service staff member Excellence e-brand awards 2013 e-zone • The Best of Telecommunication Service PCCW-HKT mobile service • The Best of Residential Broadband Service NETVIGATOR East Week Outstanding Corporate Strategy East Week Awards 2013 PCCW-HKT mobile service Enterprise Caring Award Hong Kong Sheng HKT Kung Hui Welfare Council Global Carrier Awards 2013 Capacity Magazine • Best African Wholesale Carrier Finalist PCCW Global • Best Marketing Team Finalist HKMA/TVB Awards for Marketing Excellence 2013 HKMA/TVB • Gold Award PCCW-HKT mobile service’s “Ultimate Mobility Campaign” • Maxim’s Group Citation for Outstanding TV Campaign • Best Presentation Award PCCW-HKT mobile service staff member HKT Trust and HKT Limited annual report 2013 3 AWARDS (CONTINUED) Awards Awardee Scheme Organizer Hong Kong Call Centre Awards 2013 Hong Kong Call Centre • Inbound Contact Centre Team Leader of the Year PCCW Teleservices Association (Southern China) – Bronze staff members • Outbound Contact Centre Team Leader of the Year – Bronze • Inbound Contact Centre Team Leader of the Year (Southern China) – Merit • Inbound Contact Centre Agent of the Year (Southern China) – Merit • Outbound Contact Centre Team Leader of the Year – Merit Hong Kong ICT Awards 2013 OGCIO • Best Green ICT Award (Adoption – Large-scale HKT Enterprises) – Silver Award HK Golden IT Award 2013 HK Golden • Best Telecom Provider – Residential Broadband NETVIGATOR Service Hong Kong IT Brand Awards 2013 Metro Info and The • Excellent Brand of Fibre Broadband and NETVIGATOR Chamber of H.K. Cloud Services Computer Industry Hong Kong Service Awards 2013 East Week • Internet Service Provider NETVIGATOR • Long Distance Call IDD 0060 IT Square Editors’ Choices Sing Tao Daily • Best Managed Security Services HKT Marketing Excellence Awards 2013 Marketing Magazine • Excellence in Launch Marketing (Gold) PCCW-HKT mobile service’s “Ultimate Mobility Campaign” • Excellence in Integrated Marketing (Silver) MEF Global Carrier Ethernet Service Provider Metro Ethernet Forum Awards 2013 (MEF) • Best Global Wholesale Ethernet Service PCCW Global • Best Carrier Ethernet Business Application Finalist • Service Provider of the Year Finalist • Best Marketing Finalist Metro Creative Awards 2013 Metro Daily • The Best Creative Ad PCCW-HKT mobile service’s “Ultimate Service” Mystery Shoppers Programme Hong Kong Retail • Service Category Leader HKT Management Association 4 HKT Trust and HKT Limited annual report 2013 Awards Awardee Scheme Organizer Outstanding Enterprise Awards CAPITAL • Best Fixed-line Service Company HKT Outstanding Corporate Strategy Awards 2013 East Week NETVIGATOR Outstanding QTS Merchant Service Staff Award 2013 Hong Kong Tourism • Gold Award PCCW-HKT Shop Board staff members • Sliver Award PC3 Platinum Brand Election 2013 PC3 Magazine • Mobile Service Category PCCW-HKT mobile service Registrar of the Year 2013 Hong Kong Internet • Best Registrar Award HKT Registration Corporation Limited (HKIRC) RoadShow – Best Loved Brand Awards 2013 Roadshow • Home Broadband Service NETVIGATOR SAMENA Awards 2013 SAMENA • Best Satellite Services in the SAMENA Region PCCW Global Telecommunications Finalist Council Service Partner Occupation Health and safety Award AsiaWorld-Expo Scheme 2012 Management Company • 2nd runner Up – Outstanding Achievement in HKT Health & Safety Performance Service & Courtesy Award 2013 Hong Kong Retail • Electronic & Electrical Appliances/ PCCW-HKT Shop Management Telecommunications Category staff members Association – Junior Frontline Level – Gold Award • The Best Team Performance Award – Silver Award Shared Services and Outsourcing Excellence Shared Services & Awards – Asia Outsourcing Network • Excellence in Customer Service Finalist PCCW Global (SSON) SMB World Awards 2013 SMB World • Best SMB Partner – Technology HKT • Best Business Broadband Service Provider Business NETVIGATOR • Best Corporate Mobile Service Provider PCCW-HKT mobile service Supreme Brand Award 2013 CAPITAL CEO • Supreme Broadband Service Provider NETVIGATOR x CAPITAL ENTREPRENEUR
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