Slide 1: Taiwan Mobile Co., Ltd. 4Q15 Results Summary
Taiwan Mobile Co., Ltd. 4Q15 Results Summary January 29, 2016 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
Business Overview 3
Slide 4: Continuous 4G Business Expansion
Continuous 4G Business Expansion 4G Postpaid Penetration Rate Unit: NT$ +3.7% YoY Unit: NT$mn +10% YoY +3.2% +3% +9% +2.8% -4% +0.3% 1. Based on IFRS – Residual Value Method, i.e. excluding revenue adjustments under the current bundle sales accounting policy 4
Slide 5: Steady Growth in the CATV Business
Steady Growth in the CATV Business (Unit: NT$bn) CATV 4Q15 4Q14 YoY 2015 YoY Total Revenue 1.67 1.61 4% 6.55 3% - Pay-TV related 1.12 1.11 1% 4.46 2% - Cable Internet 0.32 0.31 4% 1.28 5% - Content & Others 0.23 0.20 18% 0.81 6% EBITDA 0.89 0.86 4% 3.56 4% EBITDA Margin 53.5% 53.0% 0.5ppts 54.4% 0.5
Slide 6: Retail Business
Retail Business (Unit: NT$bn) momo 4Q15 QoQ YoY 2015 YoY Total Revenue 6.85 8% 8% 25.64 7% - Online Shopping 4.76 11% 16% 17.22 15% - TV Home Shopping & 2.10 3% -6% 8.42 -6% Others EBITDA 0.28 0% -28% 1.19 -24% EBITDA Margin 4.1% -0.3ppts -2.0ppts 4.6% -1.9ppts 6
Slide 7: Financial Overview
Financial Overview 7
Slide 8: Results Summary
Results Summary As % of 2015 NT$mn 4Q15 YoY YoY Full-year Full-year Guidance Revenue 30,534 1% 116,144 3% 93% Cost (21,556) 0% (79,785) 6% 92% Operating expenses (4,641) 0% (17,591) -1% 90% Operating income 4,337 5% 18,769 -5% 99% Net non-operating items (198) 192% (603) -29% 41% Income before tax 4
Slide 9: Performance by Business
Performance by Business Revenue EBITDA NT$bn Telecom CATV momo Total Telecom CATV momo Total 4Q15 21.93 1.67 6.85 30.53 6.53 0.89 0.28 7.80 % of 72% 5% 22% 100% 84% 11% 4% 100% total 4Q15 -1% 4% 8% 1% 10% 4% -28% 8% YoY 3Q15 -2% 2% 1% -1% 9% 3% -39% 6% YoY Note: The combined total of telecom, CATV a
Slide 10: Balance Sheet Analysis
Balance Sheet Analysis NT$bn 4Q15 3Q15 4Q14 4Q15 3Q15 4Q14 Total Assets 156.09 154.87 153.54 Liabilities 90.79 93.26 87.04 Current Assets 34.16 31.26 32.83 Current Liabilities 59.23 64.81 53.47 - Cash & Cash Equivalents 8.58 7.28 7.90 - ST Debts 35.28 42.37 26.70 - Accounts Receivable 15.70 15.90 15
Slide 11: Cash Flow Analysis
Cash Flow Analysis NT$bn 4Q15 3Q15 2015 2014 Operating Cash Flow 7.74 7.25 25.81 28.34 Investing Cash Flow (1.76) (4.44) (15.18) (19.66) Financing Cash Flow (4.68) (4.33) (9.95) (8.74) NT$bn 4Q15 3Q15 2015 2014 Cash CAPEX 2.80 2.96 12.62 14.70 Free Cash Flow 4.94 4.29 13.19 13.63 11
Slide 12: 2016 Guidance & Event Updates
2016 Guidance & Event Updates 12
Slide 13: 2016 Guidance
2016 Guidance NT$bn 2016F 2015A YoY Revenue 120.60 116.14 4% EBITDA 32.84 32.28 2% D&A Expense (14.32) (13.52) 6% Operating Income 18.52 18.77 -1% Non-operating Expense (1.00) (0.60) 65% Pre-tax Income 17.52 18.17 -4% Net Income 14.01 15.69 -11% EPS1 (NT$) 5.15 5.76 -11% Recurring EPS2 (NT$) 5.15 5.
Slide 14: Event Updates
Event Updates Capex Guidance The board today (January 29, 2016) approved a NT$11.1bn capex for 2016, including NT$6.0bn for mobile, NT$2.2bn for fixed-line, NT$1.3bn for CATV and NT$1.6bn for momo and other subsidiaries. Implications of 2.6GHz Auction Result TWM announced its exit from the 2.6GHz sp
Slide 15: Event Updates
Event Updates Corporate Social Responsibility Awards and Recognition − Received the following four awards from the Taiwan Institute for Sustainable Energy Research for the second consecutive year: “Taiwan’s Top 10 Role Model Company of Sustainability”, the “Integrity and Transparency Award”, the “Ro
Slide 16: Key Message
Key Message An increase in the forecast for telecom EBITDA coupled with over NT$3bn reduction in telecom capex are expected to enhance Taiwan Mobile’s free cash flow generation capability in 2016. With sufficient LTE spectrum holdings and no exposure to 2.6GHz investments, we will have less burden f
Slide 17: Q&A
Q&A 17