Slide 1: Taiwan Mobile Co., Ltd. 4Q18 Results Summary
Taiwan Mobile Co., Ltd. 4Q18 Results Summary January 31, 2019 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
m)) &35X |X | Business Overview
Slide 4: Increase in Free Cash Flows
Increase in Free Cash Flows 2018 Telecom Service Revenue 2018 Telecom EBITDA -8% YoY -8% YoY +3% YoY -5% YoY Reported Pre-IFRS Reported Pre-IFRS Operating Cash Flow (NT$bn) Free Cash Flow (NT$bn) 30.3 29.8 20.5 21.3 2017 2018 2017 2018 4
Slide 5: Cross-Selling Supporting Growth
Cross-Selling Supporting Growth Video Streaming Fixed Broadband Subs ‘18 Performance MAU Revenue (K) doubled +c.20% YoY +6% YoY Video viewed 215 228 quadrupled 2017 2018 Enterprise Business – The Bright Spot ‘18 Revenue Growth +8% +14% +94% YoY YoY YoY Cloud IoT ICT 5
Slide 6: momo – Crown Jewel
momo – Crown Jewel Total Revenue Total EBITDA (NT$bn) (NT$bn) +26% YoY +15% YoY 42.02 1.74 1.52 33.24 12.39 0.47 0.54 9.94 4Q17 4Q18 2017 2018 4Q17 4Q18 2017 2018 B2C e-commerce B2C e-commerce Average ticket size # of Transaction +24% YoY 2,205 +8% YoY 17.7 2,110 14.3 2,006 1,945 4.3 5.2 4Q17 4Q18 2
Slide 7: Financial Overview
m)) & 35K S X | Financial Overview
Slide 8: Performance by Business
Performance by Business Revenue EBITDA NT$bn Telecom CATV momo Total1 Telecom CATV momo Total1 4Q18 17.50 1.57 12.39 31.57 6.14 0.78 0.54 7.62 % of 55% 5% 39% 100% 81% 10% 7% 100% total 4Q18 -13% 1% 25% -1% -5% 5% 15% -2% YoY 4Q18 YoY (Pre-IFRS 15) 2% 3% 2018 70.03 6.34 42.02 118.73 26.19 3.19 1.74
Slide 9: Results Summary
Results Summary 4Q18 2018 NT$bn % of Full % of 4Q Amount YoY Amount YoY year guidance guidance Revenues 31.57 -1% 98% 118.73 1% 96% Operating Costs (23.16) 0% 99% (84.32) 4% 96% Operating (4.14) -5% 93% (16.25) -2% 93% Expenses Operating Income 4.27 -1% 94% 18.16 -5% 101% Non-op. Income (0.10) -91%
Slide 10: Balance Sheet Analysis
Balance Sheet Analysis NT$bn 4Q18 3Q18 4Q17 NT$bn 4Q18 3Q18 4Q17 Total Assets 147.67 147.45 154.52 Liabilities 79.67 82.97 89.01 Current Assets 29.07 26.97 32.35 Current Liabilities 41.88 40.48 56.48 - Cash & Cash Equivalents 7.50 5.94 6.63 - ST Debts 18.57 17.59 30.86 - Receivable & Contract Assets
Slide 11: Cash Flow Analysis
Cash Flow Analysis NT$bn 4Q18 3Q18 4Q17 2018 2017 Operating 7.31 7.00 7.99 29.78 30.32 Investing (2.01) (1.08) (9.70) (5.53) (17.67) Financing (3.74) (7.60) 2.37 (23.38) (13.72) NT$bn 4Q18 3Q18 4Q17 2018 2017 Cash CAPEX1 (1.87) (2.18) (2.24) (8.49) (9.80) Free Cash Flow1 5.44 4.82 5.74 21.28 20.52 1
Slide 12: 2019 Guidance & Event Updates
2019 Guidance & Event Updates 12
Slide 13: 2019 Guidance
2019 Guidance NT$bn 2019F 2018A YoY Revenues 124.53 118.73 5% EBITDA 33.41 31.72 5% D&A (16.39) (13.56) 21% Operating Income 17.02 18.16 -6% Non-op. (Expense) (0.71) (0.47) 50% Pre-tax Income 16.31 17.69 -8% Net Income 12.33 13.64 -10% EPS1 (NT$) 4.50 5.01 -10% NT$bn 2019F 2018A YoY Total Capex (6.4
Slide 14: Event Updates
Event Updates The Board resolved to participate in establishing LINE Bank, an online-only bank, with investment amount of NT$500M (5% stake). Obtained Prime rating by ISS-oekom, the first company received in the telecommunication industry in Taiwan. Received the internationally renowned Swiss SGS Qu
Slide 15: Key Message
Key Message With strong footholds in e-commerce and OTT services plus leveraging expanding residential broadband user base on content bundling, Taiwan Mobile is better positioned than other telcos in Taiwan. The growing cloud, AIoT, and ICT businesses, coupled with capex downtrend, will support TWM’
Slide 16: Q&A
Q&A 16