Chunghwa Telecom Co., Ltd · TWSE:2412

Chunghwa Telecom — Q1 2015 Earnings Presentation

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

  1. Slide 1: 1Q 2015 Operating Results

    1Q 2015 Operating Results April 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 (11.33 mn subs) 38.0% • 87.2% share by minutes 37.5% 37.5% – #1 DLD • 84.4% share by minutes 37.0% – #1 Broadband access 37.1% 36.5% 36.1% •

  5. Slide 5: Number One Mobile Services Provider

    Number One Mobile Services Provider Performance VAS Performance Strategy Focusing on 4G service promotion NT$ mn 48.5% and mobile internet subscriber 45.6% 47.3% 42.6% 43.9% expansion 953 VAS as %of Mobile 1,046 Service Revenue 8,000 1,012 40% Promoting VAS and new VAS revenue 998 1,040 30% applicat

  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 707 698 701 709 713 ARPU NT$ speed upload service Optimizing broadband networks quality to 5,000 3,956 3,886 3,978 4,074 4,136 600 increase customer satisfaction 40

  7. Slide 7: MOD/ IPTV Service

    MOD/ IPTV Service Performance Strategy Revenue increased by 10.0% YoY for Continuing to enrich local contents Q1 2015 and VOD programs Subscriber market share (CATV+IPTV) Optimizing MOD cost structure YoY grew from 19.8% to 20.4% in Q4 Leveraging the existing broadband 2014 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 Q1 2015 infrastructure, IDC, CDN, etc. to expand ICT business Personal Cloud (Hami+) subscribers accumulated to 2.8 million Offering ICT total solutions b

  9. Slide 9: Financials Overview

    Financials Overview

  10. Slide 10: Financials: Income Statement Highlights

    Financials: Income Statement Highlights Consolidated Growth Growth (NT$bn) Q1 2014 Q1 2015 % 2013 2014 % Revenues 55.05 56.47 2.6 227.98 226.61 (0.6) Operating Costs and 43.14 44.66 3.5 180.36 182.44 1.1 Expenses Other Income and (0.01) (0.03) (222.2) 0.06 0.63 967.8 Expenses Income from 11.90 11.78

  11. Slide 11: Financials: Business Segment Revenues

    Financials: Business Segment Revenues Growth Growth (NT$bn) Q1 2014 Q1 2015 2013 2014 % % Domestic Fixed 17.15 17.54 2.3 73.50 72.06 (2.0) Local 8.90 8.35 (6.2) 37.82 35.60 (5.9) DLD 0.82 0.77 (5.9) 3.46 3.31 (4.6) Broadband Access 4.82 4.87 0.9 19.11 19.12 0.0 MOD 0.60 0.66 10.0 2.22 2.57 15.8 Mobi

  12. Slide 12: Financials: Costs & Expenses

    Financials: Costs & Expenses Consolidated Growth Growth (NT$bn) Q1 2014 Q1 2015 % 2013 2014 % Operating Costs 35.02 36.70 4.8 147.36 148.38 0.7 Operating Expenses 8.12 7.96 (2.0) 33.00 34.06 3.2 Marketing 6.17 5.98 (3.0) 25.16 26.14 3.9 General and Administrative 1.08 1.14 5.7 4.19 4.42 5.3 R&D Expe

  13. Slide 13: Cash Flow & EBITDA Margin

    Cash Flow & EBITDA Margin Consolidated Growth Growth (NT$bn) Q1 2014 Q1 2015 % 2013 2014 % Net Cash Flow from 9.62 11.79 22.6 75.29 71.38 (5.2) Operating Activities CapEx 5.77 5.53 (4.1) 36.38 32.56 (10.5) Free Cash Flow 3.85 6.26 62.6 38.91 38.82 (0.2) Cash and Cash Equivalents at the end of period

  14. Slide 14: Operating Results vs. Forecast

    Operating Results vs. Forecast Consolidated Achieving Growth (NT$bn) Q1 2015(A) Q1 2015（E） % 2014 (A) 2015 (E) % Revenues 56.47 55.61 101.6 226.61 231.09 2.0 Operating Costs and 44.66 44.27 100.9 182.44 185.92 1.9 Expenses Other Income and (0.03) (0.07) 41.9 0.63 (0.12) (120.0) Expenses Income from

  15. Slide 15: Effective and Efficient Capital Expenditure

    Effective and Efficient Capital Expenditure Capital Expenditure Budgeted capex for 2015: NT$30.7 bn Continue to focus on core businesses NT$ bn 36.4 for future investments 33.3 32.6 – 4G 30.7 – FTTx 50 20% 45 15.0% 16.0% – Service Platforms 14.4% 13.3% 40 10.5% 9.8% 10% 35 0.6 1.6 – IDC/ Cloud Capex

  16. Slide 16: Q&A

    Q&A

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