2013 Annual Report 24 March 2014

Agenda Financial Highlights Operations Review Business Prospects

Financial Highlights

Annual Results (1)

Profit Attributable to Equity Shareholders Annual Results (2) 2013 (HK$ M) 2012 Turnover 1,138.1 900.6 Profit Attributable to Equity Shareholders 545.5 354.4

Turnover Breakdown by Business

Turnover Breakdown by Region 7

Consolidated Income Statement (1) 2013 (HK$’000) 2012 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

Consolidated Income Statement (2) 2013 (HK$’000) 2012 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

EBITDA Margins 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

Assets & Liabilities 2013 (HK$ Million) 2012 Total Assets 5,546 5,028 Total Liabilities 1,970 1,941 (As at 31 December)

Gearing

Cash 2013 (HK$ Million) 2012 Free cash 1,549 729 Pledged deposits 16 57 (As at 31 December)

Capital Commitment 2013 (HK$’000) 2012 Contracted for * 1,653,799 14,091 Authorised but not contracted for - 4,740 18,831 (As at 31 December) * including APSTAR 9 Satellite contract

Operations Review

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%

Satellite under Construction – APSTAR 9 China Aerospace DFH-4 platform, to be launched around Q4 of 2015 Located at 142⁰E orbital slot with 32 C and 14 Ku transponders 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

APSTAR 9A Lease certain transponders of Chinasat 5A from China Satcom Located at 142⁰E orbital slot, and was renamed as APSTAR 9A Develop customer base for APSTAR 9 Satellite

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 ⁰E orbital slot 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

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

APSTAR 6 High power geostationary telecommunication satellite based on a SpaceBus 4000 C1 platform of Thales Alenia Space Launched in April 2005, positioned at 134⁰E orbital slot 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

APSTAR 5 High power geostationary telecommunication satellite based on FS1300 made by SS/L of USA Launched in June 2004, positioned at 138⁰E orbital slot 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

Customer Services 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.

Business Prospects

Business Prospects 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

TT&C www.apstar.com APT Satellite Holdings Limited Satellite Control