GROW BEYOND

Annual Report 2022

GROW BEYOND

At HKBN, we believe our long-term survival and growth hinges on the transformation of our business. Beyond just connectivity alone - and by going outside the box - we're focussed on making our company more agile, diversified, sustainable and anti-fragile against challenges to create a better competitive advantage, better opportunities and better outcomes for our customers, partners, shareholders, communities and society.

To move our business forward, we're putting much greater emphasis on maximising the impact of our suite of solutions, as well as on transforming how customers drive their success in markets across Hong Kong, mainland China and ASEAN.

Dear fellow HKBN Shareholders

Grow Beyond

The global pandemic reshaped our everyday lives - no single person or company was excluded. And as macro headwinds from higher global interest rates, inflationary pressure and currency flux pose even greater pressure, companies are being pushed harder than ever to improve business performance through digital transformation.

At HKBN, we believe our long-term survival and growth hinges on the transformation of our business. Beyond just connectivity alone - and by going outside the box - we're focussed on making our company more agile, diversified, sustainable and anti-fragile against challenges to create a better competitive advantage, better opportunities and better outcomes for our customers, partners, shareholders, communities and society.

To move our business forward, we're putting much greater emphasis on maximising the impact of our suite of solutions, as well as on transforming how customers drive their success in markets across Hong Kong, mainland China and ASEAN.

Dear fellow HKBN Shareholders

Grow Beyond

The global pandemic reshaped our everyday lives - no single person or company was excluded. And as macro headwinds from higher global interest rates, inflationary pressure and currency flux pose even greater pressure, companies are being pushed harder than ever to improve business performance through digital transformation.

Total
Revenue

+1
%
HK$11.63B
FY22
HK$11.46B
FY21

Ebitda

+2
%
HK$2.60B
FY22
HK$2.57B
FY21

AFF

+0
%
HK$1.13B
FY22
HK$1.13B
FY21

Adjusted
Net Profit

+20
%
HK$2.60B
FY22
HK$2.57B
FY21

ENTERPRISE
SOLUTIONS

$6.78B

Revenue

105,000

Enterprise customers

$2,906

Enterprise ARPU

HKBN recurring billing relationship


1 in 2

active companies in Hong Kong

RESIDENTIAL
SOLUTIONS

$2.4B

Revenue

897,000

Broadband subscribers

$184

Residential ARPU

HKBN recurring billing relationship


1 in 3

households in Hong Kong

Make our Home a Better Place to Live

Knowing that our business has a big impact in the regions we operate, this year we reassessed (our previous ESG materiality assessment was conducted in 2019) what matters most to HKBN and our stakeholders through discussions with internal and external parties.

Out of these activities, we redefined our strategy by fully embracing our unique edge as a major technology provider. Instead of driving impact merely from within HKBN, we believe there are greater possibilities that will come from empowering the ESG of our enterprise and residential customers, as well as other stakeholder groups like NGOs and social enterprises in our communities, our suppliers & value chain partners, and more. Fixated on broadening our impacts, we adopted a bold new vision to "Lead as an Innovative ESG Enabler".

HKBN's 3Ts

With our ESG vision outlined, we also streamlined our focus on three Ts: namely Talent Co-Ownership, Technology for Good, and Transforming Business, which govern ten priority ESG topics.

HKBN
ESG
Strategy

Lead as an Innovative ESG Enabler

Talent Co-Ownership

1. Talent interest alignment

2. Talent-obsessed engagement and development

3. Diversity and inclusion

Technology for Good

4. Market-ready ESG solutions

5. Digital inclusion for our communities

Transforming Business

6. Climate action

7. Impactful customer experiences

8. Data privacy and security

9. Reliable and responsible services

10. Win-win-win partnership and value chain

HKBN ESG Strategy

Lead as an Innovative ESG Enabler

Talent Co-Ownership

1. Talent interest alignment

2. Talent-obsessed engagement and development

3. Diversity and inclusion

Technology for Good

4. Market-ready ESG solutions

5. Digital inclusion for our communities

Transforming Business

6. Climate action

7. Impactful customer experiences

8. Data privacy and security

9. Reliable and responsible services

10. Win-win-win partnership and value chain

Our 10 Priorities

FY25 Targets

Talent interest alignment
Achieve at least 88% cumulative success rate in ESG-related special incentive programmes
Talent-obsessed engagement & development
Reach an overall engagement score of 70% favourability in our Talent Engagement Survey
Diversity & inclusion
Enhance female representation in technical roles to 18% or above
Market-ready ESG solutions
Launch new ESG-themed solutions every year
Digital inclusion for our communities
Conduct social impact assessments for all digital inclusion community initiatives
Climate action
Set science-based emissions reduction targets
Impactful customer experiences
Futureproof HKBN's customer services by launching new customer experience initiatives every year
Data privacy & security
Achieve less than 2% phishing assessment average failure rate among Talents
Reliable and responsible services
Reduce affected customer hours from residential network service disruptions by 14% (relative to FY22 baseline)
Win-win-win partnership & value chain
Improve at least 20 SME suppliers' ESG assessment scores

Talent Co-Ownership

At HKBN, our Talents are the driving force behind everything we do. To lead (rather than follow) in Purpose and over-achieve our ESG goals, we need Talents to bring their full passion, commitment and alignment. And so, every day we make sure that Talents feel fully supported by our unique culture, and have all the right tools, development opportunities and incentives to succeed together with HKBN.

Talent interest alignment

Our FY22 Progress:

We are exploring more ESG-related special incentive programmes that encourage Talents to pursue breakthrough business proposals.

Talent-obsessed engagement & development

Our FY22 Progress:

How we enable LIFE-work priority and Talent health and wellness:
  • Shortened 7-hour work-day, 17-day public holiday entitlements, and monthly half-day off Friday
  • ISO 45001-certified occupational health and safety system
  • Provided "Traditional Chinese Doctor Mobile Clinic" and stress level wellness at our offices
How we enhance Talent engagement and communication:
  • Talent engagement survey
  • 4 engagement sessions with our Executive Vice-chairman
  • 14 focus group sessions with our Management Committee
How we develop Talents at different levels:
  • 1-HKBN Academy provides structured training programmes, e-learning and best practices
  • Be a Pioneer programme cultivates Talents into management roles
  • Be a People's Leader programme equips supervisory Talents with leadership skills
  • Average 17 hours of training for each Talent

Diversity & inclusion

Our FY22 Progress:

26%

managerial-level Talents are female

12.5%

of female representation in technical roles

Technology for Good

This year, we’re fully embracing our role as an ESG enabler for our enterprise and residential customers, NGOs and social enterprises in our communities, our suppliers & value chain partners. Plus, by harnessing our competitive advantage in tech & telecommunications, we continue to bridge the digital divide within our communities through promoting and educating on digital literacy, cyber wellness, as well as by removing the barriers for digital access.

Market-ready ESG solutions

Our FY22 Progress:

  • Commenced research on new ESG-themed solutions
  • Launched Secured Business Broadband Bundle with Cisco to strengthen customer cybersecurity
  • IoT & robotic solutions for retail & F&B customers during the pandemic

Digital inclusion for our communities

Our FY22 Progress:

Commenced research to measure digital inclusion initiative effectiveness
Empowered 31 social profit organisations on IT management skills and cybersecurity by providing free IT consultations and workshops
Launched Cyber Wellness In The Dark for youths with Dialogue in the Dark Foundation
Workshops to help seniors stay connected digitally
464 hours volunteered for community good

Transforming Business

Making progress starts from transforming HKBN into a better company – not just in a few areas, but in every area. From our environmental impact, data privacy or the way we solve customer complaints, to cybersecurity, customer experiences, and how we deliver fast and reliable connectivity to customers, improvements in our business and operations ensures that our impacts go further.

Climate action

Our FY22 Progress:

  • Started ISO 14001 certification process for our Enterprise Solutions and JOS operations
  • "Something from Nothing" project total accumulated savings at 8,728,522 kWh electricity and HK$3.4 million* in electric utility cost since 2016
* After sharing a fraction of energy cost savings as payment to our financier.

Reliable and responsible services

Our FY22 Progress:

100% Core Network availability and >99.99% Access Network availability for customers

Pre-emptively completed

582 on-site maintenance visits to enhance resilience against possible failure

Fibre network reached over

2.5
million homes

and

8,000
commercial buildings and facilities

in Hong Kong

Impactful customer experiences

Our FY22 Progress:

  • Customer self-service tools reduced monthly maintenance orders by 38%
  • Over 88% average answer rate across all our customer service channels
  • Over 48,950 hours of products, sales, marketing and quality improvement trainings provided to our Talents
  • Received 5,836 complimentary notes in FY22

Data privacy & security

Our FY22 Progress:

  • 2.2% phishing assessment average failure rate among Talents (vs a benchmark of 5.8% in organisations with 1,000+ employees)
ISO
27001

certification for HKBNES and HKBN JOS data centres and Security Operation Centre

0

data breaches

in FY22

Win-win-win partnership & value chain

Our FY22 Progress:

  • Added ESG scoring criteria to our Vendor Maintenance Portal
  • Performed gap analysis for improvement of sustainable procurement standards
  • 94% of suppliers sourced locally within our operating locations
© HKBN Ltd. 2022. All Rights Reserved.