Chunghwa Telecom Co., Ltd · TWSE:2412

Chunghwa Telecom — Q2 2015 Earnings Presentation

16 slides from Chunghwa Telecom's earnings presentation, Jul 30, 2015

  1. Slide 1: 2Q 2015 Operating Results

    2Q 2015 Operating Results July 30, 2015 TSE: 2412 NYSE: CHT

  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: Business Overview

    Business Overview

  4. Slide 4: Chunghwa Telecom Overview

    Chunghwa Telecom Overview Strong Market Position (a) Mobile Performance Domestic Fixed Mobile market shares continued to grow – #1 Local • 94.2% share by subs (11.29 mn subs) 39.0% • 85.7% share by minutes 38.1% – #1 DLD 38.0% • 82.4% share by minutes – #1 Broadband access 37.0% 36.2% • 76.3% share

  5. Slide 5: Number One Mobile Services Provider

    Number One Mobile Services Provider VAS Performance Performance Strategy Focusing on 4G service promotion NT$ mn 48.4% 48.5% and mobile internet subscriber 45.6% 47.3% 43.9% expansion 941 VAS as %of Mobile 953 Service Revenue 40% 1,046 Further upgrading mid-to-low tier VAS revenue 8,000 1,012 998 30

  6. Slide 6: Fixed Broadband and Internet Services

    Fixed Broadband and Internet Services Performance Strategy Leveraging network capability to offer high- Broadband Access Revenue NT$ mn 698 701 709 713 711 ARPU NT$ speed upload service Optimizing broadband networks quality to 5,000 3,886 3,978 4,074 4,136 4,135 600 increase customer satisfaction 40

  7. Slide 7: MOD/ IPTV Service

    MOD/ IPTV Service Performance Strategy Revenue increased by 18.7% YoY for Continuing to enrich local contents Q2 2015 and VOD programs Subscriber market share (CATV+IPTV) Optimizing MOD cost structure YoY grew from 20.1% to 20.4% in Q1 Leveraging the existing broadband 2015 subscriber base to grow M

  8. Slide 8: Enterprise ICT Initiatives

    Enterprise ICT Initiatives Performance Strategy Information security and cloud service Leveraging our advantage on network revenue doubled YoY in 1H 2015 infrastructure, IDC, CDN, etc. to expand ICT business Personal Cloud (Hami+) subscribers was 2.9 million till June 2015 Offering ICT total solutio

  9. Slide 9: Financials Overview

    Financials Overview

  10. Slide 10: Financials: Income Statement Highlights

    Financials: Income Statement Highlights Consolidated Growth Growth (NT$bn) Q2 2014 Q2 2015 % 1H 2014 1H 2015 % Revenues 55.78 56.92 2.0 110.83 113.39 2.3 Operating Costs and 43.44 43.71 0.6 86.58 88.37 2.1 Expenses Income from 12.33 13.17 6.8 24.23 24.95 3.0 Operations Net Income2 10.58 11.13 5.1 20

  11. Slide 11: Financials: Business Segment Revenues

    Financials: Business Segment Revenues Growth Growth (NT$bn) Q2 2014 Q2 2015 1H 2014 1H 2015 % % Domestic Fixed 17.23 17.76 3.1% 34.38 35.30 2.7% Local 9.00 8.50 -5.6% 17.90 16.85 -5.9% DLD 0.84 0.80 -5.4% 1.66 1.56 -5.6% Broadband Access 4.70 4.79 2.0% 9.52 9.66 1.5% MOD 0.62 0.73 18.7% 1.22 1.39 14

  12. Slide 12: Financials: Costs & Expenses

    Financials: Costs & Expenses Consolidated Growth Growth (NT$bn) Q2 2014 Q2 2015 % 1H 2014 1H 2015 % Operating Costs 35.02 35.71 2.0 70.04 72.41 3.4 Operating Expenses 8.42 8.00 (5.1) 16.54 15.96 (3.6) Marketing 6.43 6.03 (6.2) 12.59 12.01 (4.6) General and Administrative 1.08 1.10 2.0 2.16 2.25 3.9

  13. Slide 13: Cash Flow & EBITDA Margin

    Cash Flow & EBITDA Margin Consolidated Growth Growth (NT$bn) Q2 2014 Q2 2015 % 1H 2014 1H 2015 % Net Cash Flow from 14.42 18.20 26.2 24.03 29.98 24.8 Operating Activities CapEx 7.32 4.79 (34.6) 13.09 10.32 (21.2) Free Cash Flow 7.10 13.41 88.8 10.94 19.66 79.7 Cash and Cash Equivalents at the end of

  14. Slide 14: Operating Results vs. Forecast

    Operating Results vs. Forecast Consolidated Q2 2015 Q2 2015 Achieving 1H 2015 1H 2015 Achieving (NT$bn) (A) （E） % (A) (E) % Revenues 56.92 55.45 102.7 113.39 111.05 102.1 Operating Costs and 43.71 43.38 100.8 88.37 87.66 100.8 Expenses Income from 13.17 12.07 109.1 24.95 23.34 106.9 Operations Net I

  15. Slide 15: Effective and Efficient Capital Expenditure

    Effective and Efficient Capital Expenditure Capital Expenditure Budgeted capex for 2015: NT$30.7 bn NT$ bn Continue to focus on core businesses 50 for future investments – 4G 20% 45 15.0% 16.0% 14.4% 13.3% 11.8% 40 36.4 9.1% 10% – FTTx 33.3 0.6 32.6 35 1.6 30.7 – Service Platforms Capex as % of Reve

  16. Slide 16: Q&A

    Q&A

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