Taiwan Mobile Co., Ltd. · TWSE:3045
Taiwan Mobile — Q1 2010 Earnings Presentation
15 slides from Taiwan Mobile's earnings presentation, Apr 29, 2010
Slide 1: Taiwan Mobile Co., Ltd. 1Q10 Results Summary
Taiwan Mobile Co., Ltd. 1Q10 Results Summary Harvey Chang - CEO April 29, 2010
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: Outline
Outline 1Q results summary – 1Q P&L – 1Q divisional performance – 1Q mobile operational analysis – Balance sheet and cash flow analysis 2Q10 forecast Event update Key message 3
Slide 4: Result Summary
Result Summary Unit: NT$m 1Q10 1Q09 1Q10 Execution YoY Actual Actual Forecast % Operating revenue 17,085 16,885 1% 17,031 100% Cost (8,803) (8,354) 5% (8,619) 102% Marketing expense (2,332) (2,539) -8% (2,466) 95% G&A expense (1,169) (1,132) 3% (1,208) 97% Operating income 4,780 4,860 -2% 4,738 101%
Slide 5: 1Q Divisional Performance
1Q Divisional Performance YoY YoY YoY Conso- YoY NT$bn CBG HBG EBG Chg. Chg. Chg. lidated Chg. Revenue 13.47 0% 1.39 7% 2.24 -1% 17.08 1% EBITDA 5.88 -3% 0.67 13% 0.51 16% 7.06 0% EBITDA 43.6% -1.0pps 48.5% 2.9pps 22.6% 3.3pps 41.3% -0.4pps % 5
Slide 6: Wireless Peer Comparison
Wireless Peer Comparison Mobile Service Revenue and Mobile ARPU (NT$m) CHT FET TWM Total 1Q10 17,934 13,298 13,497 44,729 1Q09 17,586 13,631 13,622 44,839 1Q YoY 2.0% -2.4% -0.9% -0.2% 4Q YoY 0.5% -4.3% -1.7% -1.7% CHT FET TWM 800 723 720 724 722 735 731 713 712 700 703 700 670 654 655 643 643 TWM 6
Slide 7: VAS and 3G
VAS and 3G CHT FET TWM NT$m % of % of % of VAS1 VAS VAS service rev. service rev. service rev. 1Q10 2,486* 13.9% 1,997 15.0% 1,918 14.2% 1Q09 2,051 11.7% 1,935 14.2% 1,649 12.1% 1Q YoY 21% 3% 16% 4Q YoY 25% 4% 24% 1. CHT Mar. VAS revenue is an estimate. 3G post-paid Main VAS drivers 1Q10 3G Service
Slide 8: Cash Flow Analysis
Cash Flow Analysis NT$bn 1Q10 4Q09 1Q09 Operating Cash Flow 7.90 8.06 6.92 Investing Cash Flow (1.49) (1.86) (1.66) Financing Cash Flow (6.45) (6.00) (4.41) Cash CAPEX (1.46) (1.83) (1.50) Free Cash Flow 6.44 6.23 5.42 8
Slide 9: Balance Sheet Analysis
Balance Sheet Analysis NT$bn 1Q10 4Q09 1Q10 4Q09 Total Assets 84.43 85.90 Liabilities 28.74 33.82 Current Assets 11.49 11.60 Current Liabilities 19.68 24.76 - Cash & Cash Equivalents 2.96 3.00 - ST Debts 1.15 7.60 - Available-for-Sale Financial Assets 0.17 0.18 - Other Current Liabilities 18.53 17.1
Slide 10: 2Q10 Forecast
2Q10 Forecast NT$bn 2Q10 QoQ YoY Revenue 16.88 -1% -3% EBITDA 6.53 -8% -12% EBITDA Margin 38.7% -2.7pps -4.0pps Operating Income 4.22 -12% -19% Assets Write-off (0.35) 19% -8% Pre-Tax Income 3.89 -14% -19% Tax Expense (0.78) -14% -35% Net Income 3.11 -14% -14% EPS (NT$)1 1.04 -14% -14% 1. EPS is bas
Slide 11: Dividend Proposal
Event update Dividend Proposal – TWM’s board meeting approved a proposal to distribute NT$15bn cash dividends to shareholders. Dividend per share is NT$5.03 based on 2,989m shares, which excluded treasury shares held by subsidiaries. 11
Slide 12: Event update – Cont’d
Event update – Cont’d Regulations – NCC approved a bill amendment for easing restriction on state ownership of media companies up to 10% indirect holdings. The draft is under Executive Yuan’s review. – NCC proposed to lift the restriction on cable TV operators branching out to different service area
Slide 13: Key message
Key message Mandatory price cut has phased in to affect our 2Q earnings. SG&A savings are expected to mitigate the impact to an extent. With our stepped-up efforts in data, more resources will be deployed to beef up the take-up rate to ensure growth. We expect to see these efforts pay off for the lo
Slide 14: Awards
Awards Received IR Global Rankings’ (IRGR) 2010 “Best Financial Disclosure Award” in Asia Pacific and Greater China regions, and “Best IR Program Award”, “Best IR Officer Award” and 3rd place for the “IR Website Award” in Taiwan region, placing TWM as the biggest winner of IRGR this year Awarded for
Slide 15: Q&A
Q&A 15