Chunghwa Telecom Co., Ltd · TWSE:2412

Chunghwa Telecom — Q4 2021 Earnings Presentation

20 slides from Chunghwa Telecom's earnings presentation, Jan 26, 2022

  1. Slide 1: 4Q 2021 Operating Results

    4Q 2021 Operating Results Jan. 26, 2022 1 © Chunghwa Telecom

  2. Slide 2: Disclaimer

    Disclaimer STATEMENT REGARDING UNAUDITED FINANCIAL INFORMATION The unaudited financial information under T-IFRSs in this presentation is preliminary and subject to adjustments and modifications. Adjustments and modifications to the financial statements may be identified during the course of the audi

  3. Slide 3: "Rise on Together, 2021" strategic transformation

    “Rise on Together, 2021” strategic transformation 3 years of consecutive growth in EBITDA Margin, Net Income and EPS IDC Revenue CAGR 5% Mobile Service Revenue Turn around Core Emerging Business Cloud Revenue CAGR 5% Business Broadband Revenue CAGR 2% ICT Gross Profit CAGR 17% Mobile Churn Rate 1.52

  4. Slide 4: Organizational transformation

    Organizational transformation Customer Centric Business Groups  Consumer, Enterprise and Focus on • Consumer International Business Groups business • Enterprise develop businesses under the customer-centric spirit competitiveness • International Technology Groups  Network Technology Group, • Netwo

  5. Slide 5: Business Overview

    Business Overview 5 © Chunghwa Telecom

  6. Slide 6: Home Wi-Fi, broadband and mobile services

    Home Wi-Fi Devices Penetration rate YoY 167% ≈ 20% Home Wi-Fi Mobile (Mesh) Always Broadband Connected Fixed Broadband MOD 300Mbps ↑ Customers ARPU and revenue YoY 45% 6 © Chunghwa Telecom

  7. Slide 7: Mobile Services: Subscribers and Market Share

    #1 Mobile Services Provider #1 Mobile Revenue (a)(b)(c) #1 Mobile Subscribers (c) Other, CHT 16.0% CHT, 38.9% FET, 36.1% Other 23.9% Source: Company data, MOTC and NCC statistics TWM, Note : a) Market share as of Nov. 2021 24.0% b) Revenues are based on T-IFRSs c) Excluding IoT SIMs Better Performan

  8. Slide 8: Fixed Broadband Service

    Fixed Broadband Service Broadband Revenue Fixed Broadband Subs Continued ARPU growth for 9 consecutive quarters Fiber ≥ 300M 742 749 755 ARPU( NT$) YoY 45 % 8,000 733 734 800 7,000 700 4,348 4,339 4,358 4,363 4,354 6,000 5,416 5,456 5,535 5,640 5,650 600 10% 11% 12% 14% 15% 5,000 500 30% 30% 31% 31%

  9. Slide 9: MOD/ IPTV Service

    MOD/ IPTV Service Packaging SVODs ALL PASS to enhance SVOD revenue 259 4,000 1000 260 256 3,500 947 925 900 250 915 906 904 911 921 800 246 3,000 700 238 240 240 2,500 2,085 2,080 2,069 2,065 2,068 2,067 2,061 600 232 2,000 500 1,500 400 220 300 1,000 200 500 100 - 0 200 2Q20 3Q20 4Q20 1Q21 2Q21 3Q2

  10. Slide 10: ICT Business

    ICT Business YoY 15.9% YoY 22.1% 雲端 4Q20 1Q21 2Q21 3Q21 4Q21 cloud services YoY 3.3% Excluding large project impact YoY 4Q20 20.2% Large projects revenue YoY 1.7% Cyber Security Note: Excludes impact of large projects 4Q20 1Q21 2Q21 3Q21 4Q21 10 © Chunghwa Telecom

  11. Slide 11: Financials Overview

    Financials Overview 11 © Chunghwa Telecom

  12. Slide 12: Financials: Income Statement Highlights

    Financials: Income Statement Highlights Consolidated Growth Growth (NT$bn) Q4 2021 Q4 2020 % 2021 2020 % Revenues 59.89 59.48 0.7 210.48 207.61 1.4 Operating Costs and 48.42 50.30 ( 3.7) 165.18 166.84 (1.0) Expenses Income from 11.10 10.50 5.8 44.93 42.36 6.1 Operations Net Income2 8.63 8.21 5.1 35.

  13. Slide 13: Financials: Business Segment Revenues

    Financials: Business Segment Revenues (NT$bn) Q4 2021 Q4 2020 Growth % 2021 2020 Growth% Domestic Fixed 18.12 20.24 (10.4) 64.78 69.47 (6.7) Local 5.86 6.04 (3.0) 23.76 24.46 (2.8) DLD 0.48 0.49 (1.4) 1.94 2.02 (3.7) Broadband Access 4.71 4.58 2.9 18.60 18.14 2.5 MOD 0.93 0.90 2.3 3.71 3.64 1.9 ICT

  14. Slide 14: Financials: Costs & Expenses

    Financials: Costs & Expenses Consolidated Growth Growth (NT$bn) Q4 2021 Q4 2020 % 2021 2020 % Operating Costs 40.11 42.33 (5.2) 135.11 137.03 (1.4) Operating Expenses 8.31 7.97 4.2 30.07 29.81 0.9 Marketing 5.84 5.51 6.0 21.09 20.96 0.6 General and Administrative 1.49 1.49 (0.4) 5.29 5.00 5.8 R&D Ex

  15. Slide 15: Financials: Cash Flow

    Financials: Cash Flow Consolidated Growth Growth (NT$bn) Q4 2021 Q4 2020 % 2021 2020 % Net Cash Flow from 26.89 27.55 (2.4) 74.86 74.46 0.5 Operating Activities CapEx 12.30 9.48 29.7 35.33 23.51 50.3 Free Cash Flow 14.59 18.07 (19.3) 39.53 50.95 (22.4) Cash and Cash Equivalents at the end of period

  16. Slide 16: Operating Results vs. Forecast

    Operating Results vs. Forecast Consolidated Q4 2021 Q4 2021 Achieving 2021 2021 Achieving (NT$bn) (A) （E） % (A) (E) % Revenues 59.89 59.07~59.32 101.0~101.4 210.48 209.26~209.72 100.4~100.6 Operating Costs and 48.42 48.05~48.10 100.7~100.8 165.18 167.58~167.66 98.5~98.6 Expenses Income from Operatio

  17. Slide 17: 2022 Forecast

    2022 Forecast Consolidated Growth (NT$bn) 2022（E） 2021 % Revenues 212.80~214.00 210.48 1.1~1.7 Operating Costs and Expenses 168.42~168.81 165.18 2.0~2.2 Income from Operations 44.55~46.08 44.93 -0.8~2.6 Net Income2 34.11~36.04 35.75 -4.6~0.8 EPS 4.40~4.65 4.61 -4.6~0.8 EBITDA 82.91~84.44 83.33 -0.5~

  18. Slide 18: Effective and Efficient Capital Expenditure

    Effective and Efficient Capital Expenditure Capital Expenditure NT$ Budgeted CapEx for 2022- NT$36.8 bn bn  Mobile - NT$14.5 bn 20% 50  Non-mobile –NT$ 22.3 bn 17.2% 16.8% 40 36.8 35.3 Continue to focus on core businesses 13.2% 11.3% 1.8 CapEx as % of Revenue 28.6 11.6% 0.5 for future investments

  19. Slide 19: Awards and Recognition

    Awards and Recognition • Best 5G Service Provider in Taiwan  Winner of Speedtest “Fastest 5G ” and “Fastest Mobile Network” in Taiwan in Q3-Q4 2021  Winner of Opensignal “5G Download Speed” and “Fastest 5G Upload Speed,” as well as “5G Game Experience,” “5G Video Experience,” and “5G Voice App Exp

  20. Slide 20: Q&A

    me DHeE CChunghwaTelecom Q&A Chunghwa Telecom

Chunghwa Telecom — Q4 2021 Earnings Presentation on 6ix