Taiwan Mobile Co., Ltd. · TWSE:3045
Taiwan Mobile — Q3 2014 Earnings Presentation
19 slides from Taiwan Mobile's earnings presentation, Oct 31, 2014
Slide 1: Taiwan Mobile Co., Ltd. 3Q14 Results Summary
Taiwan Mobile Co., Ltd. 3Q14 Results Summary October 31, 2014 1
Slide 2: Disclaimer
Disclaimer The information contained in this presentation, including all forward- looking information, is subject to change without notice, whether as a result of new information, future events or otherwise, and Taiwan Mobile Co., Ltd. (the “Company”) undertakes no obligation to update or revise the
Slide 3: Business Overview
Business Overview 3
Slide 4: Largest LTE Spectrum Holdings
Largest LTE Spectrum Holdings Post TWM’s 5MHz spectrum acquisition from Ambit Available LTE spectrum1 Total LTE spectrum acquired Unit: MHz Unit: MHz 25 25 20 52 15 5 Note 1: Prior to the expiration and/or the early return of other existing 2G/3G spectrum if any in the future 2: Subject to NCC’s app
Slide 5: Mobile Operating Performance
Mobile Operating Performance Mobile Service Revenue* VAS Revenue* Unit: NT$mn Unit: NT$mn * Based on IFRS – Residual Value Method, i.e. excluding revenue adjustments under the current bundle sales accounting policy. 5
Slide 6: Our Smartphone Strategy
Our Smartphone Strategy Mobile data adoption rate 700 LTE Enabled Phones iPhone 6, iPhone6 Plus 2 Butterfly 2, M8, E8, One mini 6 2, Desire 816, Desire 610 Note 4, S5, Note 3, Note 3 5 Neo, Core Lite Z3, Z3 Compact, Z2a, C3 4 Mobile broadband revenue 18% YoY Amazing X1, X2, X3 3 Unit: NT$mn M810, M5
Slide 7: Steady CATV Business
Steady CATV Business Sub base 3Q14 ARPU YoY growth Analogue TV 1% $493 Cable Internet 4% $546 DTV 45% $133 Blended ARPU * $801 +2% YoY * Calculation based on total cable TV revenue excluding content agency revenue
Slide 8: Growing Online Shopping Business
Growing Online Shopping Business momo 3Q14 3Q13 YoY (Unit: NT$bn) Total Revenue 6.28 5.12 23% - Online Shopping 3.99 2.89 38% - TV Home Shopping & Others 2.29 2.23 3% EBITDA 0.46 0.22 113% EBITDA margin 7.3% 4.2% Note: momo announced the sale of its cosmetics stores and department store operations o
Slide 9: Financial Overview
Financial Overview 9
Slide 10: Performance by Business
Performance by Business Revenue EBITDA NT$bn Telecom CATV momo Total Telecom CATV momo Total 3Q14 19.87 1.60 6.28 27.77 6.73 0.86 0.46 8.10 % of 71% 6% 23% 100% 83% 11% 6% 100% total 3Q14 -3% 2% 23% 3% -4% 5% 113% 1% YoY 2Q14 -2% 2% 15% 1% 2% 3% 43% 4% YoY Note: The combined total of telecom, CATV a
Slide 11: Results Summary
Results Summary as % of 1-3Q NT$mn 3Q14 YoY 3Q14 2014 Guidance Revenue 27,768 3% 98% 82,430 Cost (18,319) 6% 96% (53,642) Operating expenses (4,362) 1% 98% (13,197) Operating income 5,086 -8% 108% 15,591 Net non-operating items (547) 89% 88% (778) Income before tax 4,540 -14% 111% 14,813 Net income
Slide 12: Balance Sheet Analysis
Balance Sheet Analysis NT$bn 3Q14 2Q14 3Q13 3Q14 2Q14 3Q13 Total Assets 146.66 143.08 109.35 Liabilities 89.39 89.70 54.49 Current Assets 28.71 26.81 28.86 Current Liabilities 55.14 55.39 35.41 - Cash & Cash Equivalents 6.99 6.00 7.79 - ST Debts 28.17 15.88 12.73 - Accounts Receivable 14.77 14.33 14
Slide 13: Cash Flow Analysis
Cash Flow Analysis NT$bn 3Q14 2Q14 3Q13 Operating Cash Flow 7.59 6.68 5.89 Investing Cash Flow (3.66) (4.79) (2.53) Financing Cash Flow (2.94) (4.07) (6.85) NT$bn 3Q14 2Q14 3Q13 Cash CAPEX (3.59) (4.78) (2.63) Free Cash Flow 4.00 1.90 3.26 13
Slide 14: 4Q14 Guidance & Board Resolutions
4Q14 Guidance & Board Resolutions 14
Slide 15: 4Q14 Guidance
4Q14 Guidance NT$bn 4Q14F 4Q13 YoY 2014F Revenue 30.28 28.41 7% 112.71 EBITDA 7.13 7.61 -6% 31.17 D&A Expense (3.23) (2.56) 26% (11.67) Operating Income 3.90 5.05 -23% 19.50 Non-operating Expense (0.56) (0.62) -9% (1.34) Net Income 2.90 3.55 -18% 14.86 EPS (NT$) 1.06 1.32 -20% 5.51 15
Slide 16: Board Resolution
Board Resolution Capex Guidance Revision The board today (October 31, 2014) approved an additional NT$0.5bn capex budget for 2014 mainly to take the lead in the 4G network roll-out. Thus, 2014 capex is revised to be NT$16bn: NT$10.7bn for mobile, NT$1.7bn for fixed- line, NT$1bn for cable TV, and NT
Slide 17: Event Updates
Event Updates Awards and Recognition − TWM was selected as a member of the Dow Jones Sustainability Indices’ Emerging Markets Index for the third year in a row (2012~2014). − TWM’s cloud internet data center (IDC) was nominated as a finalist of the “Innovation in the Mega-Data Center” award by Datac
Slide 18: Key Message
Key Message With the acquisition of 5MHz on the 700MHz frequency band from Ambit, TWM will have the largest 4G spectrum of 35MHz, including in particular, the biggest contiguous spectrum of 20MHz on the 700MHz band, leading TWM to be best positioned to provide the fastest 4G service to the consumers
Slide 19: Q&A
Q&A 19