Taiwan Mobile Co., Ltd. · TWSE:3045
Taiwan Mobile — Q2 2014 Earnings Presentation
18 slides from Taiwan Mobile's earnings presentation, Jul 28, 2014
Slide 1: 2Q14 Results Summary
Taiwan Mobile Co., Ltd. 2Q14 Results Summary July 28, 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: Steady Mobile Revenue Growth
Steady Mobile Revenue Growth TWM’s Performance Mobile Service Revenue VAS Revenue Unit: NT$mn Unit: NT$mn 17% YoY 16,299 2% YoY 16,182 16,151 16,043 15,899 2Q13 3Q13 4Q13 1Q14 2Q14 Peer Comparison - ARPU Unit: NT$ 749 762 750 737 731 TWM 731 735 728 714 718 FET 612 623 609 588 591 CHT 2Q13 3Q13 4Q13
Slide 5: Our Smartphone Strategy
Our Smartphone Strategy Smartphone as % of total 700 LTE enabled devices handsets sold Samsung Samsung HTC LG Sony Note 3 S5 M8 G3 Z2a Samsung HTC One HTC HTC ASUS Note 3 Neo Mini 2 Desire 816 Desire 610 PadFone S Mobile data adoption rate Infocus ASUS TWM Amazing TWM Amazing Samsung M511 Zenfone 5
Slide 6: Steady CATV Operation
Steady CATV Operation Sub base 2Q14 ARPU YoY growth Analogue TV 1% $494 Cable Internet 5% $546 DTV 55% $133 Blended ARPU * $796 +2% YoY * Calculation based on total cable TV revenue excluding content agency revenue
Slide 7: Growing Online Shopping Business
Growing Online Shopping Business momo 2Q14 2Q13 YoY (Unit: NT$bn) Total Revenue 5.62 4.89 15% - Online Shopping 3.52 2.66 32% - TV Home Shopping & Other 2.10 2.23 -6% EBITDA 0.39 0.28 43% EBITDA margin 7.0% 5.6% Note: momo announced the sale of its cosmetics stores and department store operations on
Slide 8: Financial Overview
Financial Overview 8
Slide 9: Performance by Business
Performance by Business Revenue EBITDA NT$bn Telecom CATV momo Total Telecom CATV momo Total 2Q14 19.73 1.58 5.62 26.94 6.85 0.86 0.39 8.16 % of 73% 6% 21% 100% 84% 11% 5% 100% total 2Q14 -2% 2% 15% 1% 2% 3% 43% 4% YoY 1Q14 3% 3% 15% 5% 2% 5% 35% 3% YoY Note: The combined total of telecom, CATV and
Slide 10: Results Summary
Results Summary as % of NT$mn 2Q14 YoY 2Q14 1H14 Guidance Revenue 26,936 1% 95% 54,663 Cost (17,333) 3% 92% (35,323) Operating expenses (4,210) -4% 92% (8,835) Operating income 5,394 0% 112% 10,505 Net non-operating items (199) -57% 45% (231) Income before tax 5,195 5% 118% 10,274 Net income 4,137 5
Slide 11: Balance Sheet Analysis
Balance Sheet Analysis NT$bn 2Q14 1Q14 2Q13 2Q14 1Q14 2Q13 Total Assets 143.08 142.93 111.81 Liabilities 89.70 78.51 61.36 Current Assets 26.81 28.54 31.74 Current Liabilities 55.39 49.62 42.31 - Cash & Cash Equivalents 6.00 8.18 11.28 - ST Debts 15.88 25.55 4.77 - Accounts Receivable 14.33 14.15 13
Slide 12: Cash Flow Analysis
Cash Flow Analysis NT$bn 2Q14 1Q14 2Q13 Operating Cash Flow 6.68 6.84 7.42 Investing Cash Flow (4.79) (0.99) (5.12) Financing Cash Flow (4.07) (5.63) 2.90 NT$bn 2Q14 1Q14 2Q13 Cash CAPEX (4.78) (2.27) (2.71) Free Cash Flow 1.90 4.57 4.70 12
Slide 13: 3Q14 Guidance & Board Resolutions
3Q14 Guidance & Board Resolutions 13
Slide 14: 3Q14 Guidance
3Q14 Guidance NT$bn 3Q14F 3Q13 YoY Revenue 28.30 27.08 5% EBITDA 7.89 8.02 -2% Operating Income 4.72 5.54 -15% Non-operating Expense 0.62 0.29 115% Net Income 3.44 4.27 -19% EPS (NT$) 1.28 1.58 -19% 14
Slide 15: Board Resolution
Board Resolution ECB Issuance The board today (July 28, 2014) approved the issuance of a 5-year Euro- Convertible Bond of no more than US$500mn with a zero coupon, zero yield to maturity, conversion premium of 20% to 32.5%, and no conversion price adjustment for dividend yield below 5.8%. Capex Guid
Slide 16: Event Updates
Event Updates Regulatory Update NCC approved TWM and FET returning their respective 5MHz 2G spectrums on the 1800MHz band on July 16, 2014. Accordingly, TWM will be able to launch 1800 LTE service by the end of September. Awards and Recognition − Won the “Trusted Brand Gold Award” by Reader’s Digest
Slide 17: Key Message
Key Message Acceleration in the deployment of the 4G network, growing number and greater variety of LTE devices and the earlier-than-expected availability of the 1800MHz LTE spectrum will propel customers’ migration to 4G services. TWM is best positioned to capture the business upside of the LTE ser
Slide 18: Q&A
Q&A 18