Slide 1: Taiwan Mobile Co., Ltd. 3Q10 Results Summary
Taiwan Mobile Co., Ltd. 3Q10 Results Summary Harvey Chang - CEO October 28, 2010 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: Result Summary
Result Summary Unit: NT$m 3Q10 3Q09 3Q10 Execution YoY Actual Actual Forecast % Operating revenue 17,711 17,359 2% 17,459 101% Cost (9,818) (8,334) 18% (9,435) 104% Marketing expense (2,282) (2,615) -13% (2,330) 98% G&A expense (1,105) (1,199) -8% (1,169) 95% Operating income 4,506 5,211 -14% 4,525
Slide 4: 3Q Divisional Performance
3Q Divisional Performance YoY YoY YoY Conso- YoY NT$bn CBG HBG EBG Chg. Chg. Chg. lidated Chg. Revenue 13.83 1% 1.43 7% 2.46 4% 17.71 2% EBITDA 5.49 -12% 0.70 12% 0.61 15% 6.82 -8% EBITDA 39.7% -5.8pps 49.0% 2.3pps 24.8% 2.4pps 38.5% -4.3pps % 4
Slide 5: Robust Wireless Data Growth
Robust Wireless Data Growth Unit: NT$m Wireless data revenue ARPU CHT FET TWM 16% (NT$) Y 12% 27% Yo 3Q10 649 721 731 1,743 2,205 3Q09 670 735 731 3Q09 3Q10 YoY -3.2% -1.8% 0% Wireless data revenue % of wireless revenue YTQ wireless data revenue mix SMS, 29% Mobile internet MI, 54% access, 54% Other
Slide 6: Our Smartphone Strategy
Our Smartphone Strategy YTQ mobile ARPU YTQ smartphone mix (NT$) 1,627 Android 715 48% others 52% Blended Smartphone Exclusive models added in 3Q10 Samsung Moto HTC LG Samsung TWM i9000 Backflip Wildfire GT540 Spica T2 6
Slide 7: CATV Growth Catalysts
CATV Growth Catalysts Continuous thrust into enlarging cable broadband penetration New revenue streams from DTV (with 4% penetration currently) 7
Slide 8: Cash Flow Analysis
Cash Flow Analysis NT$bn 3Q10 2Q10 3Q09 Operating Cash Flow 5.78 4.68 4.92 Investing Cash Flow (1.82) (1.48) (1.13) Financing Cash Flow (7.08) (0.31) (7.49) Cash CAPEX (1.97) (1.36) (1.25) Free Cash Flow 3.81 3.32 3.67 8
Slide 9: Balance Sheet Analysis
Balance Sheet Analysis NT$bn 3Q10 2Q10 3Q10 2Q10 Total Assets 82.91 86.38 Liabilities 35.18 42.33 Current Assets 12.00 14.63 Current Liabilities 26.13 33.27 - Cash & Cash Equivalents 2.75 5.86 - ST Debts 8.80 0.85 - Available-for-Sale Financial Assets 0.19 0.17 - Other Current Liabilities 17.33 32.4
Slide 10: 4Q10 Forecast
4Q10 Forecast NT$bn 4Q10 20101 YoY Revenue 17.78 70.03 2% EBITDA 6.38 27.48 -6% EBITDA Margin 35.89% 39.24% -3.54pps Operating Income 4.11 18.33 -10% Assets Write-off (0.18) (1.49) -9% Pre-Tax Income 3.95 17.04 -9% Tax Expense (0.78) (3.24) -32% Net Income 3.17 13.80 -1% EPS (NT$)2 1.06 4.62 -1% 1.
Slide 11: Stable Shareholder Return
Stable Shareholder Return 9.2% 9.5% 8.2% 1 7.5% 7.0% 6.7% 5.2% 1.5%2 Dividend 3 4.5% yield 2007 2008 2009 2010F FCF yield Dividend yield Capital return Note: 1. Based on annualized YTQ FCF. 2. NT$1/share divided by share price on Oct. 27, 2010. 3. Dividend will be decided by the board in early 2011.
Slide 12: Event update: Awards
Event update Awards – Received an “A+” ranking and ranked as one of the top 10 listed companies in “Transparency and Information Disclosure” for the fifth consecutive year. – Awarded for “Excellence in Corporate Social Responsibility” by CommonWealth magazine for the fourth year in a row. – Placed 1
Slide 13: Key message
Key message With succession made internally following Harvey Chang’s resignation as the CEO & President, a smooth transition of management is expected. Enhancing shareholder value remains a priority of TWM. Growth of data revenue continues to be an important initiative for management the coming quar
Slide 14: Q&A
Q&A 14