Chunghwa Telecom Co., Ltd · TWSE:2412
Chunghwa Telecom — Q4 2014 Earnings Presentation
18 slides from Chunghwa Telecom's earnings presentation, Feb 16, 2015
Slide 1: Q4 2014 Operating Results
Q4 2014 Operating Results February 16, 2015 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 grow – #1 Local • 94.3% share by subs (11.37 mn subs) • 85.1% share by minutes 37.5% 37.1% – #1 DLD • 80.5% share by minutes 37.0% – #1 Broadband access 36.5% • 76.7% share by sub
Slide 5: Number One Mobile Services Provider
Number One Mobile Services Provider Performance VAS Performance Strategy Focusing on 4G service promotion NT$ mn 47.3% and mobile internet subscriber 43.9% 45.6% 39.7% 42.6% expansion Mobile VAS Revenue % 1,046 8,000 1,012 40% Promoting VAS and new VAS revenue 998 1,040 30% applications 1,077 6,000
Slide 6: 4G Mobile Service
4G Mobile Service Performance 2014 Target 2015 Accumulating 1.33mn 4G Reaching 40% subscriber share subscribers by the end of 2014 Expecting population coverage to Re-farming 900MHz frequency reach 99% for the whole country by band from 2G to 4G the end of 2015 Introducing carrier aggregation (CA) t
Slide 7: Fixed Broadband and Internet Services
Fixed Broadband and Internet Services Performance Strategy Leveraging network capability to offer high- Broadband Access Revenue NT$ mn 708 707 698 701 709 ARPU NT$ speed upload service Optimizing broadband networks quality to 5,000 3,923 3,956 3,886 3,978 4,074 600 increase customer satisfaction 40
Slide 8: MOD/ IPTV Service
MOD/ IPTV Service Performance Strategy Revenue increased by 12.4% YoY for Continuing to enrich local contents Q4 2014 and VOD programs Subscriber market share (CATV+IPTV) Optimizing MOD cost structure YoY grew from 19.7% to 20.5% in Q3 Leveraging the existing broadband 2014 subscriber base to grow M
Slide 9: Enterprise ICT Initiatives
Enterprise ICT Initiatives Performance Strategy Information security and cloud service Leveraging our advantage on network revenue doubled YoY in Q4 2014 infrastructure, IDC, CDN, etc. to expand ICT business Personal Cloud (Hami+) subscribers accumulated to 2.7 million Offering ICT total solutions b
Slide 10: Financials Overview
Financials Overview
Slide 11: Financials: Income Statement Highlights
Financials: Income Statement Highlights Consolidated Growth Growth (NT$bn) Q4 2013 Q4 2014 % 2013 2014 % Revenues 58.80 59.63 1.4 227.98 226.61 (0.6) Operating Costs and 47.69 50.89 6.7 180.36 182.44 1.1 Expenses Other Income and 0.10 0.66 557.4 0.06 0.63 967.8 Expenses Income from 11.21 9.40 (16.1)
Slide 12: Financials: Business Segment Revenues
Financials: Business Segment Revenues Growth Growth (NT$bn) Q4 2013 Q4 2014 2013 2014 % % Domestic Fixed 19.30 19.60 1.6% 73.50 72.06 -2.0% Local 9.23 8.72 -5.6% 37.82 35.60 -5.9% DLD 0.85 0.81 -5.4% 3.46 3.31 -4.6% Broadband Access 4.83 4.84 0.0% 19.11 19.12 0.0% MOD 0.62 0.70 12.4% 2.22 2.57 15.8%
Slide 13: Financials: Costs & Expenses
Financials: Costs & Expenses Consolidated Growth Growth (NT$bn) Q4 2013 Q4 2014 % 2013 2014 % Operating Costs 38.78 41.89 8.0 147.36 148.38 0.7 Operating Expenses 8.91 9.00 1.1 33.00 34.06 3.2 Marketing 6.84 6.86 0.4 25.16 26.14 3.9 General and Administrative 1.09 1.25 14.7 4.19 4.42 5.3 R&D Expense
Slide 14: Cash Flow & EBITDA Margin
Cash Flow & EBITDA Margin Consolidated Growth Growth (NT$bn) Q4 2013 Q4 2014 % 2013 2014 % Net Cash Flow from 30.28 28.94 (4.5) 75.29 71.38 (5.2) Operating Activities CapEx 13.07 11.59 (11.4) 36.38 32.56 (10.5) Free Cash Flow 17.21 17.35 0.8 38.91 38.82 (0.2) Cash and Cash Equivalents at the end of
Slide 15: 2014 Operating Results vs. 2014 Forecast
2014 Operating Results vs. 2014 Forecast Consolidated Achieving Achieving (NT$bn) Q4 2014(A) Q4 2014（E） % 2014 (A) 2014 (E) % Revenues 59.63 58.58 101.8 226.61 228.23 99.3 Operating Costs and 50.89 49.03 103.8 182.44 184.70 98.8 Expenses Income from 9.40 9.55 98.4 44.80 43.53 102.9 Operations Net In
Slide 16: 2015 Forecast
2015 Forecast Consolidated Growth (NT$bn) 2014 2015(E) % Revenues 226.61 231.09 2.0% Operating Costs and Expenses 182.44 185.92 1.9% Other Income and Expenses 0.63 (0.12) (120.0%) Income from Operations 44.80 45.05 0.5% Net Income 38.62 37.50 (2.9%) EPS 4.98 4.83 (2.9%) EBITDA 78.92 80.02 1.4% EBITD
Slide 17: Effective and Efficient Capital Expenditure
Effective and Efficient Capital Expenditure Capital Expenditure NT$ bn Actual capex for 2014: NT$32.6 bn – 18.8% less of the budgeted capex 36.4 Budgeted capex for 2015: NT$30.7 bn 33.3 32.56 50 30.7 22.2% Continue to focus on core businesses 19.4% 45 15.0% 16.0% 14.4% 13.3% 20% for future investmen
Slide 18: Q&A
Q&A