Chunghwa Telecom Co., Ltd · TWSE:2412
Chunghwa Telecom — Q2 2017 Earnings Presentation
18 slides from Chunghwa Telecom's earnings presentation, Jul 27, 2017
Slide 1: 2Q 2017 Operating Results
2Q 2017 Operating Results July 27, 2017 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) Operational Strategies Domestic Fixed Streamline services and strengthen – #1 Local profitability • 93.4% share by subs (10.85mn subs) • 84.9% share by minutes Capitalize and remain at the forefront of digital – #1 DLD convergence trends • 83.4% s
Slide 5: Number One Mobile Services Provider
Number One Mobile Services Provider Mobile Internet Adoption Strategy Mobile Internet Subs as % of Postpaid Subs Continue raising threshold for Thousand unlimited data usage to move towards tier-pricing and fair usage subscriber policies Re-allocate marketing resource to Note : Subscribers with mobi
Slide 6: Fixed Broadband and Internet Services
Fixed Broadband and Internet Services Performance Strategy Broadband Access Revenue Leverage network capability to offer high- ARPU NT$ speed upload service NT$ mn 712 716 718 721 717 4,210 4,278 4,289 4,307 4,264 Leverage Big Data capability for precision 5,000 600 marketing and precision network c
Slide 7: MOD/ IPTV Service
MOD/ IPTV Service Performance Strategy Subscriber market share (CATV+IPTV) Continue to enrich content, including movies, drama, TV series and cartoons for YoY remained at around 20.4% in Q1 SVOD 2017 Leverage the existing broadband and 4G Household TV Usage rate increased to mobile subscriber base t
Slide 8: Enterprise ICT Initiatives
Enterprise ICT Initiatives Enhancement Strategy Further explore ICT business Leverage our advantage on network opportunity by establishing IoT infrastructure, IDC, CDN, etc. to expand platform to facilitate IoT application ICT business environment Launch highest-rated cloud IDC to Leverage our stren
Slide 9: Financials Overview
Financials Overview
Slide 10: Financials: Income Statement Highlights
Financials: Income Statement Highlights Consolidated Growth Growth (NT$bn) Q2 2017 Q2 2016 % H1 2017 H1 2016 % Revenues 55.67 56.20 (0.9) 110.20 113.14 (2.6) Operating Costs and 43.35 43.31 0.1 86.33 86.46 (0.1) Expenses Income from 12.32 12.88 (4.3) 23.85 26.66 (10.5) Operations Net Income2 10.44 1
Slide 11: Financials: Business Segment Revenues
Financials: Business Segment Revenues Growth Growth (NT$bn) Q2 2017 Q2 2016 H1 2017 H1 2016 % % Domestic Fixed 16.99 18.35 (7.4) 33.76 36.08 (6.4) Local 7.43 8.01 (7.3) 14.81 15.97 (7.2) DLD 0.67 0.73 (8.7) 1.32 1.45 (8.8) Broadband Access 4.67 4.70 (0.7) 9.40 9.53 (1.4) MOD 0.62 0.57 8.0 1.23 1.16
Slide 12: Financials: Costs & Expenses
Financials: Costs & Expenses Consolidated Growth Growth (NT$bn) Q2 2017 Q2 2016 % H1 2017 H1 2016 % Operating Costs 35.08 35.25 (0.5) 69.70 70.36 (0.9) Operating Expenses 8.27 8.06 2.6 16.63 16.10 3.3 Marketing 6.15 6.01 2.4 12.43 12.01 3.6 General and Administrative 1.16 1.10 4.9 2.32 2.25 3.0 R&D
Slide 13: Financials: Cash Flow
Financials: Cash Flow Consolidated Growth Growth (NT$bn) Q2 2017 Q2 2016 % H1 2017 H1 2016 % Net Cash Flow from 15.94 13.41 18.9 26.59 19.90 33.6 Operating Activities CapEx 5.08 3.43 47.9 9.69 6.82 42.1 Free Cash Flow 10.86 9.98 8.9 16.90 13.08 29.2 Cash and Cash Equivalents at the end of period 48.
Slide 14: Operating Results vs. Forecast
Operating Results vs. Forecast Consolidated Q2 2017 Q2 2017 Achieving 1H 2017 1H 2017 Achieving 2017 (NT$bn) (A) （E） % (A) (E) % (E) Revenues 55.67 56.05 99.3 110.20 110.71 99.5 231.16 Operating Costs 43.35 44.77 96.8 86.33 88.74 97.3 186.45 and Expenses Income from 12.32 11.27 109.3 23.85 21.95 108
Slide 15: Effective and Efficient Capital Expenditure
Effective and Efficient Capital Expenditure Capital Expenditure Budgeted capex for 2017: NT$30.3 bn NT$ bn Continue to focus on core businesses 50 for future investments 45 20% – FTTx 14.4% 40 10.8% 10.2% 13.1% – 4G 8.8% – IDC/ Cloud 10% 6.0% 35 32.6 30.3 – Service Platforms Capex as % of Revenue 0.
Slide 16: Reference
Reference
Slide 17: Regulatory Update (2017/4/1~2020/3/31)
Regulatory Update (2017/4/1~2020/3/31) Years Target Business Applicable Services X factor in Formula : △CPI - X effect Broadband access monthly fee 1. The three year (exclude FTTH、FTTB、ADSL and tariff reduction 1 3.19% plan is applicable >100Mpbs service) from April 1. 2017 to March 31, 2020 and a
Slide 18: Q&A
Q&A