Far Eastone Telecommunications Co., Ltd. · TWSE:4904
Far Eastone Telecommunications — FY2005 Earnings Presentation
12 slides from Far Eastone Telecommunications's earnings presentation, Mar 8, 2006
Slide 1: 2005 Full Year Result Investor Update
4904 (TWSE) 2005 Full Year Result Investor Update Jan Nilsson President March 8, 2006 Disclaimer This presentation contains forward-looking statements. These forward-looking statements are subject to risks, uncertainties and assumptions, some of which are beyond our control. Actual results may diffe
Slide 2: Agenda and 2005 Recap
Agenda I. 2005 Recap and Financial Performance II. Market Outlook and Strategic positioning III. 2006 Q1 Outlook IV. Management Highlights 3 2005 Recap What Have FET Done in 2005 Arcoa Acquisition Prepaid Clamp Down Convergent Billing Project 3G Launch Main Board Listing Mobile Number Portability 20
Slide 3: Subscriber Development and Data Performance
Subscriber Development Continue to improve subscriber mix Prepaid Prepaid //Postpaid PostpaidSubs SubsMix Mix Monthly MonthlyBilling Billing Amount AmountMix Mix From billing and rate plan perspectives, FET managed to shift its customer FET also has improved higher mix in high value segments compare
Slide 4: Fully Consolidated Financial Results 2005
Fully Consolidated Financial 2005 Full Year Result by New Consolidated Entities(1) Item Arcoa (3) KGEx Others Consolidated Unit: NT$ million, except for margins FET+KGT Total Revenue 67,411 4,896 831 214 71,912 Service Revenue 62,470 1,292 831 214 63,531 EBITDA 31,468 -28 34 78 31,604 Service EBITDA
Slide 5: 2005 Result vs. Forecast
Fully Consolidated Financial Achievement 2005 Result vs. 2005 Forecast Item 2005 Achievement 2005(1) Unit: NT$ Million, except for EPS Forecast % Total Revenue 71,912 68,781 104.6% Service Revenue 63,531 64,268 98.9% EBITDA 31,604 32,282 97.9% Service EBITDA Margin % 50.9% 50.0% above 50%+ Pre-tax I
Slide 6: 3G Update and Gross Adds Market
3G Update Satisfactory FET, TWM, CHT all launched in Q3’05 and VIBO launched Dec’05 Coverage Operators pushing for 3G SIM alone program Total 3G Subscriber in the market : 634K Competitive Total # of Handsets sold in the market: 105K (16.6%) Tariff FET 3G ARPU over $1,300 (30% higher than current 2G
Slide 7: Distribution Channels and Market Rate Plan Evolution
Distribution Channels New Landscape in 2006 2005 2005 Year Year End End Operator Operator Outlets Outlets FET will continue to take leading role in strengthening its channel 900 controllability 800 FET + Arcoa stores will reach 770 in 700 644 2006 600 500 258 Arcoa will downsize retail to increase 4
Slide 8: 2006 Strategic Positioning and Brand Image
2006 Strategic Positioning With the convergence of services in the media and telecom industry, FET expands its scope and vision to become ------ A Leading Full Service Provider for Electronic Communication, Information, Entertainment, and Transaction FET continues having its technical base in wirele
Slide 9: Devices and 3G 2006 Strategy
Devices 2006 Plans and Directions Continue to develop ODM handsets for FET data services Develop special CI adjusted devices for new business initiatives Widen product portfolio on accessories and companion products to enhance variety 17 3G 2006 Strategy Do not expect 3G be a rapid uptake, thus appl
Slide 10: 2006 Q1 Consolidated Financial Forecast
Agenda I. 2005 Recap and Financial Performance II. Market Outlook and Strategic positioning III. 2006 Q1 Outlook IV. Management Highlights 19 2006 Q1 Consolidated Financial Forecast 2006 Q1 Forecast vs. 2005 Q1 Actual Item 2006 Q1 2005 Q1 YoY % Unit: NT$ Million, except for EPS Forecast Actual (1) T
Slide 11: 2006 Business Outlook
Outlook 2006 Business Outlook Revenue expect to rise slightly above economic growth, considering risks are: Competitors continues aggressive market moves; Fixed line incoming minutes and ILD usage drops due to VoIP and fixed line competition; Government pressure in lower pricing Data Revenue expect
Slide 12: Management Highlights and Q&A
Management Highlights Summary Continue to Focus on Taiwan and Expand Business Scope along the Entire Value Chain excluding Content Production Move FET towards being an Iconic Brand Continue to Grow Controllability in Distribution Channel while Widening the Product Portfolio in Stores to Preempt the
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