Slide 1: 2Q 2016 Operating Results
2Q 2016 Operating Results July 28, 2016 TSE: 2412 NYSE: CHT
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
Slide 3: Business Overview
Business Overview
Slide 4: Chunghwa Telecom Overview
Chunghwa Telecom Overview Strong Market Position (a) Mobile Performance Domestic Fixed – #1 Local Accumulating 5.7 million 4G • 93.7% share by subs (11.07mn subs) subscribers by the end of June 2016 • 85.3% share by minutes – #1 DLD The Big 4G plan begins to see up- • 82.6% share by minutes selling
Slide 5: Number One Mobile Services Provider
Number One Mobile Services Provider Performance Mobile Broadband Spectrum Advantage-3CA Strategy Rolling out 2.6G service in March to offer Having the largest 130MHz mobile best QoE to 4G customers broadband spectrum Raising threshold for unlimited data plans Offering a faster peak speed via 3CA： to
Slide 6: Fixed Broadband and Internet Services
Fixed Broadband and Internet Services Performance Strategy Leveraging network capability to offer high- Broadband Access Revenue NT$ mn 710 714 721 720 712 ARPU NT$ speed upload service 5,000 4,135 4,194 4,289 4,277 4,210 Leveraging Big Data capability for precision 600 marketing and precision netwo
Slide 7: MOD/ IPTV Service
MOD/ IPTV Service Performance Strategy Subscriber market share (CATV+IPTV) Continuing to enrich content, including movies, YoY remained at around 20.4% in Q1 drama, TV series for SVOD 2016 Enhancing both MOD and OTT user interfaces Household TV Usage rate increased to Leveraging the existing broadba
Slide 8: Enterprise ICT Initiatives
Enterprise ICT Initiatives Performance Strategy Leveraging our advantage on network Information security and cloud service infrastructure, IDC, CDN, etc. to expand revenue increased 55% YoY in H1 ICT business 2016 Launching highest-rated cloud IDC to Personal Cloud (Hami+) subscribers further explor
Slide 9: Financials Overview
Financials Overview
Slide 10: Financials: Income Statement Highlights
Financials: Income Statement Highlights Consolidated Growth Growth (NT$bn) Q2 2016 Q2 2015 % H1 2016 H1 2015 % Revenues 56.20 56.92 (1.3) 113.14 113.39 (0.2) Operating Costs and 43.31 43.71 (0.9) 86.46 88.37 (2.2) Expenses Income from 12.88 13.20 (2.4) 26.66 24.98 6.7 Operations Net Income2 11.06 11
Slide 11: Financials: Business Segment Revenues
Financials: Business Segment Revenues Growth Growth (NT$bn) Q2 2016 Q2 2015 H1 2016 H1 2015 % % Domestic Fixed 18.41 17.76 3.7 36.21 35.30 2.6 Local 8.01 8.50 (5.7) 15.97 16.85 (5.2) DLD 0.73 0.80 (7.8) 1.45 1.56 (7.3) Broadband Access 4.70 4.79 (1.8) 9.53 9.66 (1.3) MOD 0.57 0.73 (21.5) 1.16 1.39 (
Slide 12: Financials: Costs & Expenses
Financials: Costs & Expenses Consolidated Growth Growth (NT$bn) Q2 2016 Q2 2015 % H1 2016 H1 2015 % Operating Costs 35.25 35.71 (1.3) 70.36 72.41 (2.8) Operating Expenses 8.06 8.00 0.8 16.10 15.96 0.9 Marketing 6.01 6.03 (0.3) 12.01 12.01 0.0 General and Administrative 1.10 1.10 (0.1) 2.25 2.25 0.2
Slide 13: Cash Flow & EBITDA Margin
Cash Flow & EBITDA Margin Consolidated Growth Growth (NT$bn) Q2 2016 Q2 2015 % H1 2016 H1 2015 % Net Cash Flow from 13.41 18.13 (26.0) 19.90 29.92 (33.5) Operating Activities CapEx 3.43 4.79 (28.3) 6.82 10.32 (33.9) Free Cash Flow 9.98 13.34 (25.2) 13.08 19.60 (33.3) Cash and Cash Equivalents at the
Slide 14: Operating Results vs. Forecast
Operating Results vs. Forecast Consolidated Q2 2016 Q2 2016 Achieving 1H 2016 1H 2016 Achieving (NT$bn) (A) （E） % (A) (E) % Revenues 56.20 56.54 99.4 113.14 112.71 100.4 Operating Costs and 43.31 44.23 97.9 86.46 88.91 97.3 Expenses Income from 12.88 12.30 104.6 26.66 23.80 112.0 Operations Net Inco
Slide 15: Effective and Efficient Capital Expenditure
Effective and Efficient Capital Expenditure Capital Expenditure Budgeted capex for 2016: NT$30.6 NT$ bn bn 50 Continue to focus on core 45 16.0% 20% businesses for future investments 14.4% 10.8% 13.1% – 4G 40 36.4 9.1% 0.6 32.6 6.0% 10% – FTTx 35 1.6 30.6 – Service Platforms Capex as % of Revenue 4.
Slide 16: Q&A
Q&A