Chunghwa Telecom Co., Ltd · TWSE:2412

Chunghwa Telecom — Q4 2020 Earnings Presentation

20 slides from Chunghwa Telecom's earnings presentation, Feb 22, 2021

  1. Slide 1: 4Q 2020 Operating Results

    4Q 2020 Operating Results JPMorgan Taiwan CEO-CFO Conference February 22, 2021 Taipei 1 © Chunghwa Telecom

  2. 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

  3. Slide 3: Committed to Improving Shareholder Value

    Committed to Improving Shareholder Value Cash Return NT$ bn 2020 AGM resolved to distribute 45.00 NT$32.8 billion to shareholders 40.00  NT$4.226 per share 35.00 30.00  payout ratio 99.98% 25.00 20.00 38.3 37.2 34.7 15.00 32.8 10.00 5.00 0.00 2017 2018 2019 2020 Note: 1. 1 ADR = 10 common shares 2

  4. Slide 4: Business Overview

    Business Overview 4 © Chunghwa Telecom

  5. Slide 5: Mobile and Broadband Customer Growth

    + Mobile Increased adoption of higher price plans Always Broadband Connected Fixed Home Wi-Fi Broadband (Mesh) 300Mbps ↑ Customers Home Wi-Fi Devices YoY 69% YoY 373% 5 © Chunghwa Telecom

  6. Slide 6: Subscribers: #1 Mobile Services Provider

    #1 Mobile Services Provider #1 Mobile Revenue (a)(b) #1 Mobile Subscribers Other, CHT 15.6% CHT, 38.4% FET, 36.0% Other 24.1% TWM, Source: Company data, MOTC and NCC statistics Note : 24.3% a) Market share as of December 2020 b) Revenues are based on T-IFRSs Better Performance in Mobile Service Reve

  7. Slide 7: Fixed Broadband Service

    Fixed Broadband Service Broadband Revenue Fixed Broadband Subs ARPU( NT$) Fiber ≥ 300M 713 715 722 725 733 8,000 700 YoY 69.0% 7,000 600 4,405 4,388 4,375 4,365 4,348 6,000 5,416 5,286 5,305 5,356 5,370 500 5,000 36% 37% 38% 39% 43% 400 4,000 4,515 4,499 4,530 4,528 4,578 300 3,000 200 46% 45% 45% 4

  8. Slide 8: MOD/ IPTV Service

    MOD/ IPTV Service (Thousand) 1,200 2,100 1,400 1,327 1,328 1,264 1,303 1,300 1,100 2,082 2,086 2,085 2,080 2,069 2,050 2,000 1,200 1,000 921 912 915 906 904 1,950 1,000 900 1,900 800 1,850 800 1,800 600 700 1,750 400 1,700 600 200 1,650 500 1,600 0 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q4 19 Q1 20 Q2 20 Q3

  9. Slide 9: ICT Business

    ICT Business YoY YoY 75.6% 49.9% 雲端 cloud services YoY 28.6% Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 YoY 23.8% Cyber Security 9 © Chunghwa Telecom

  10. Slide 10: Financials Overview

    Financials Overview 10 © Chunghwa Telecom

  11. Slide 11: Financials: Income Statement Highlights

    Financials: Income Statement Highlights Consolidated Growth Growth (NT$bn) Q4 2020 Q4 2019 % 2020 2019 % Revenues 59.48 55.23 7.7 207.61 207.52 0.0 Operating Costs and 50.30 45.20 11.3 166.85 166.74 0.1 Expenses Income from 10.50 9.93 5.7 42.36 40.65 4.2 Operations Net Income2 8.23 7.77 5.8 33.42 32

  12. Slide 12: Financials: Business Segment Revenues

    Financials: Business Segment Revenues (NT$bn) Q4 2020 Q4 2019 Growth % 2020 2019 Growth % Domestic Fixed 20.24 18.36 10.2 69.47 65.59 5.9 Local 6.04 6.27 (3.6) 24.46 25.56 (4.3) DLD 0.49 0.54 (9.5) 2.02 2.20 (8.2) Broadband Access 4.58 4.52 1.4 18.14 17.98 0.9 MOD 0.90 0.92 (1.8) 3.64 3.60 0.9 ICT a

  13. Slide 13: Financials: Costs & Expenses

    Financials: Costs & Expenses Consolidated Growth Growth (NT$bn) Q4 2020 Q4 2019 % 2020 2019 % Operating Costs 42.33 37.18 13.8 137.03 135.95 0.8 Operating Expenses 7.97 8.02 (0.5) 29.82 30.79 (3.2) Marketing 5.50 5.72 (3.7) 20.96 22.09 (5.1) General and Administrative 1.50 1.32 13.3 5.01 4.76 5.3 R&

  14. Slide 14: Financials: Cash Flow

    Financials: Cash Flow Consolidated Growth Growth (NT$bn) Q4 2020 Q4 2019 % 2020 2019 % Net Cash Flow from 27.40 23.58 16.2 74.31 72.43 2.6 Operating Activities CapEx 9.28 7.81 18.9 23.31 24.17 (3.5) Free Cash Flow 18.12 15.77 14.9 51.00 48.26 5.7 Cash and Cash Equivalents at the end of period 30.44

  15. Slide 15: Operating Results vs. Forecast

    Operating Results vs. Forecast Consolidated Q4 2020 Q4 2020 Achieving 2020 2020 Achieving (NT$bn) (A) （E） % (A) (E) % Revenues 59.48 59.42 ~ 59.80 99.5 ~ 100.1 207.61 214.10 ~ 215.29 96.4 ~ 97.0 Operating Costs and 50.31 50.00 ~ 50.06 100.5 ~ 100.6 166.85 175.51 ~ 175.83 94.9 ~ 95.1 Expenses Income

  16. Slide 16: 2021 Forecast

    2021 Forecast Consolidated Growth (NT$bn) 2021（E） 2020 % Revenues 209.26~209.72 207.61 0.8~1.0 Operating Costs and Expenses 167.58~167.66 166.85 0.4~0.5 Income from Operations 41.72~42.51 42.36 -1.5~0.4 Net Income2 32.60~34.09 33.42 -2.5~2.0 EPS 4.20~4.40 4.31 -2.5~2.0 EBITDA 79.90~80.65 78.70 1.5~2

  17. Slide 17: Effective and Efficient Capital Expenditure

    Effective and Efficient Capital Expenditure Capital Expenditure Budgeted capex for 2021: NT$43.1 bn NT$ bn Continue to focus on core businesses 50 20.6% for future investments 20% 45 13.3% 43.1 – 5G 11.9% 11.7% 11.2% 1.7 40 2.2 10% – FTTx 35 8.8 – IDC/ Cloud Capex as % of Revenue 28.6 30 27.0 0% – S

  18. Slide 18: 2021 Strategic Focuses - 5G + Transformation

    2021 Strategic Focuses - 5G + Transformation Accelerate 5G network deployment, assure leading network speed and enhance mobile service revenue Expand 5G enterprise network and strengthen partnership to develop smart applications by leveraging the second phase of Forward-looking Infrastructure Develo

  19. Slide 19: Awards and Recognition

    Awards and Recognition Recognized as Brand of the Year Award at the World Branding Forum for 6th consecutive year Received recognition in corporate governance and sustainability:  Won Platinum Award at the Asset ESG Corporate Awards for 8th consecutive year and only Taiwan-based award winner.  Lis

  20. Slide 20: Q&A

    me DHeE CChunghwaTelecom Q&A Chunghwa Telecom

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