Chunghwa Telecom Co., Ltd · TWSE:2412
Chunghwa Telecom — Q3 2009 Earnings Presentation
19 slides from Chunghwa Telecom's earnings presentation, Oct 30, 2009
Slide 1: 3Q 2009 Operating Results
3Q 2009 Operating Results October 30, 2009
Slide 2: Disclaimer
Disclaimer Note Concerning Forward-looking Statements This press release contains forward-looking statements. These statements constitute “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934,
Slide 3: Consistent Shareholder Return
Consistent Shareholder Return Committed to a Strong Return Policy Dividend Yield Capital Management 6 7.7% 7.4% 7.4% 8% • Cash return related to capital 5 7% reduction expected in 1Q10 6% 4 5.8% 5% • Estimated total cash return Cash (NT$) from the 3rd round of capital Yield 4% 3 2 3% reduction is NT
Slide 4: Financials Overview
Financials Overview
Slide 5: Financials: Income Statement Highlights
Financials: Income Statement Highlights ROC GAAP (Consolidated) Jan-Sep Jan-Sep Growth Growth (NT$bn) 2008 2009 Rate Q3 2008 Q3 2009 Rate Revenue 151.86 147.24 (3.0%) 50.94 50.06 (1.7%) EBITDA 75.54 70.57 (6.6%) 24.03 23.16 (3.6%) Operating Profit 46.89 43.23 (7.8%) 14.61 14.19 (2.9%) Net Income 36.
Slide 6: Financials: Business Segment Revenues
Financials: Business Segment Revenues ROC GAAP Jan-Sep Jan-Sep Growth Growth (NT$bn) 2008 2009 Rate Q3 2008 Q3 2009 Rate Domestic Fixed 54.50 52.95 (2.8%) 18.18 17.71 (2.6%) Local 26.05 24.62 (5.5%) 8.71 8.27 (5.0%) DLD 6.43 5.84 (9.3%) 2.15 1.99 (7.4%) Broadband 14.95 14.88 (0.5%) 4.96 4.97 0.1%) M
Slide 7: Financials: Costs & Expenses
Financials: Costs & Expenses ROC GAAP (Consolidated) Jan-Sep Jan-Sep Growth Growth (NT$bn) 2008 2009 Rate Q3 2008 Q3 2009 Rate Operating Costs 84.30 82.94 (1.6%) 29.08 28.67 (1.4%) Operating Expenses 20.67 21.06 1.9% 7.25 7.20 (0.7%) Marketing 15.75 15.94 1.2% 5.56 5.53 (0.5%) General and 2.69 2.80
Slide 8: Financials: Cash Flow Highlights
Financials: Cash Flow Highlights ROC GAAP (Consolidated) Jan-Sep Jan-Sep Growth Growth (NT$bn) 2008 2009 Rate Q3 2008 Q3 2009 Rate Net Cash Flow from 55.91 49.47 (11.5%) 12.58 15.22 20.9% Operating Activities CAPEX 18.33 16.56 (9.7%) 7.02 6.26 (10.8%) Free Cash Flow 37.58 32.91 (12.4%) 5.56 8.96 61.
Slide 9: Q4 2009 Forecast
Q4 2009 Forecast ROC GAAP (Parent Company Only) Growth Growth (NT$bn) 2008 2009E Rate Q4 2008 Q4 2009E Rate Revenue 186.78 182.73 (2.2%) 46.72 46.13 (1.3%) EBITDA 95.13 90.09 (5.3%) 20.89 20.84 (0.3%) Operating Profit 57.16 54.04 (5.5%) 11.42 11.89 4.1% Net Income 45.01 42.49 (5.6%) 8.49 9.31 9.6% E
Slide 10: Effective and Efficient Capital Expenditures
Effective and Efficient Capital Expenditures Capital Expenditure (NT$bn) • Future investments continue to 35 focus on core businesses and on 30 30.1 migrating mobile and data 25 25.1 customers to higher revenue platforms Capex (NT$bn) 20 18.3 16.6 – 3G / 3.5G / LTE 15 – IP-based NGN 10 – FTTx 5 0 20
Slide 11: Business Overview
Business Overview
Slide 12: Chunghwa Telecom Overview
Chunghwa Telecom Overview Market Leader in Mobile Communication, Internet & Data and Fixed-line Services Integrated Services Provider Revenue Breakdown with Dominant Market Positions • Mobile – #1 Mobile subscribers Mobile – 34.5% market share(a) (9.18mm subs) 43.9% Internet – #1 Mobile revenue – 33
Slide 13: Taiwan's Leading Broadband & Internet Service Provider
Taiwan’s Leading Broadband & Internet Service Provider Broadband Subscribers Strategies Thousand • Provide even higher speed FTTx 4,305 4,322 4,311 4,310 4,302 4,305 service 16.9% 17.0% 17.3% 17.4% 17.4% 17.1% • Migrate ADSL subs to FTTx to offer quality network service and increase 13.2% 12.0% 11.2
Slide 14: Number One Mobile Provider
Number One Mobile Provider Mobile Subscribers Strategies Thousand • Maintain mobile leadership by 10000 8,779 8,870 8,947 8,978 9,039 9,083 9,130 9,182 retaining users, minimizing churn rate, enhancing user experiences, and increasing user loyalties via 8000 segmentation strategy 4852 4776 4693 5125
Slide 15: Smartphone Driving Network Usage
Smartphone Driving Network Usage • Providing world-class devices to Mobile ARPU enhance user experiences and build loyalty NT$ 1,520 – Ex: iPhone 3G/3Gs, Android phone (HTC 1,600 1,400 23% magic / Hero), WM (HTC, Garmin-Asus, 1,200 Samsung), Sony Ericsson music 1,000 657 handset, Nokia camera handse
Slide 16: Meeting Customer Demand for Convergence
Meeting Customer Demand for Convergence MOD/IPTV Subscribers Content and Service Updates Thousand HUT • Channels 800,000 50% ―78 SD channels and 3 HD channels on line. 676,029 686,097 700,000 660,421667,892 ―10~15 new channels are under negotiation. 13.1% 590,729 • VOD 600,000 508,302 30% ―Over 9,00
Slide 17: Outlook
Outlook
Slide 18: Mid-term Corporate Strategy
Mid-term Corporate Strategy • Enhance competitive positioning via segmented targeting and differentiated services to maximize user experiences and loyalties • Focus on ICT related services to better serve corporate clients • Strengthen advanced network capability to facilitate business growth and tr
Slide 19: Q&A
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