Slide 1: 1Q 2016 Operating Results
1Q 2016 Operating Results April 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 Mobile market shares continued to – #1 Local grow • 93.9% share by subs (11.13 mn subs) • 86.8% share by minutes 38.6% – #1 DLD • 84.4% share by minutes 38.5% 38.1% – #1 Broadband access 37.9% • 75.5% share by sub
Slide 5: Number One Mobile Services Provider
Number One Mobile Services Provider Performance Mobile Broadband Spectrum Advantage-3CA Strategy Having the largest 130MHz mobile Rolling out 2.6G service in March to offer broadband spectrum best QoE to 4G customers 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 Broadband Access Revenue Leveraging network capability to offer high- NT$ mn 713 710 714 721 720 ARPU NT$ speed upload service 5,000 4,136 4,135 4,194 4,289 4,277 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 contents, including YoY remained at around 20.4% in Q4 movies, drama, TV series for SVOD 2015 Enhancing both MOD and OTT user interface Household TV Usage rate increased to Leveraging the existing broadba
Slide 8: Enterprise ICT Initiatives
Enterprise ICT Initiatives Performance Strategy Information security and cloud service Leveraging our advantage on network revenue increased 53% YoY in Q1 infrastructure, IDC, CDN, etc. to expand 2016 ICT business Personal Cloud (Hami+) subscribers Offering ICT total solutions by was 3.1 million til
Slide 9: Financials Overview
Financials Overview
Slide 10: Financials: Income Statement Highlights
Financials: Income Statement Highlights Consolidated Growth Growth (NT$bn) Q1 2016 Q1 2015 % 2015 2014 % Revenues 56.94 56.47 0.8 231.79 226.61 2.3 Operating Costs and 43.15 44.66 (3.4) 181.33 182.44 (0.6) Expenses Income from 13.78 11.79 17.0 50.36 44.80 12.4 Operations Net Income2 11.66 10.42 11.9
Slide 11: Financials: Business Segment Revenues
Financials: Business Segment Revenues Growth Growth (NT$bn) Q1 2016 Q1 2015 2015 2014 % % Domestic Fixed 17.80 17.54 1.5 72.54 72.06 0.7 Local 7.96 8.35 (4.7) 33.57 35.60 (5.7) DLD 0.72 0.77 (6.8) 3.12 3.31 (5.7) Broadband Access 4.83 4.87 (0.7) 19.34 19.12 1.2 MOD 0.58 0.66 (11.8) 2.49 2.57 (3.0) M
Slide 12: Financials: Costs & Expenses
Financials: Costs & Expenses Consolidated Growth Growth (NT$bn) Q1 2016 Q1 2015 % 2015 2014 % Operating Costs 35.11 36.70 (4.3) 148.13 148.38 (0.2) Operating Expenses 8.04 7.96 1.1 33.20 34.06 (2.6) Marketing 5.99 5.98 0.2 25.07 26.14 (4.1) General and Administrative 1.15 1.15 0.5 4.51 4.41 1.9 R&D
Slide 13: Cash Flow & EBITDA Margin
Cash Flow & EBITDA Margin Consolidated Growth Growth (NT$bn) Q1 2016 Q1 2015 % 2015 2014 % Net Cash Flow from 6.49 11.79 (44.9) 76.32 71.38 6.9 Operating Activities CapEx 3.39 5.53 (38.8) 25.08 32.56 (23.0) Free Cash Flow 3.10 6.26 (50.5) 51.24 38.82 32.0 Cash and Cash Equivalents at the end of peri
Slide 14: Operating Results vs. Forecast
Operating Results vs. Forecast Consolidated Q1 2016 Q1 2016 (NT$bn) (A) （E） Achieving % Revenues 56.94 56.17 101.4 Operating Costs and Expenses 43.15 44.67 96.6 Income from Operations 13.78 11.49 119.9 Net Income 11.66 9.68 120.5 EPS 1.50 1.25 120.5 EBITDA 21.92 19.91 110.1 EBITDA Margin (%) 38.49 3
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% 14.4% 20% businesses for future investments 13.1% 40 10.8% 9.8% – 4G 36.4 10% 0.6 32.6 5.9% – FTTx 35 1.6 30.6 – Service Platforms Capex as % of Revenue 4.
Slide 16: Q&A
Q&A