Slide 1: 4Q10 Results Summary
Taiwan Mobile Co., Ltd. 4Q10 Results Summary January 27, 2011 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: Result Summary
Result Summary Unit: NT$m 4Q10 Execution 2010 YoY YoY Actual % Actual Operating revenue 17,900 6% 101% 70,146 2% Operating cost (10,333) 28% 104% (38,162) 15% Marketing expense (2,344) -5% 91% (9,160) -9% G&A expense (1,132) -3% 98% (4,516) -5% Operating income 4,092 -21% 100% 18,308 -10% Net non-op
Slide 4: Divisional Performance
Divisional Performance Revenue EBITDA NT$bn CBG HBG EBG Total CBG HBG EBG Total 4Q 14.0 1.5 2.4 17.9 5.0 0.7 0.6 6.4 YoY 6% 7% 7% 6% -19% 12% 4% -14% QoQ 2% 2% -2% 1% -9% 3% 1% -7% 2010 55.0 5.7 9.5 70.1 22.3 2.8 2.3 27.5 YoY 2% 7% 2% 2% -10% 12% 11% -6% 4
Slide 5: Robust Wireless Data Growth
Robust Wireless Data Growth Mobile Service Revenue ARPU Comparison - 2010 YoY Change in 2010 724 721 718 710 2009 2010 656 645 data roaming & CHT FET TWM Others mandatory tariff cut Data Business - 2010 voice NT$: bn CHT FET TWM Data revenue 11.05 8.93 8.67 % of service 15% 16% 16% revenue Data rev.
Slide 6: Our Smartphone Strategy
Our Smartphone Strategy Contribution comparison in 2010 Products introduced in 4Q10 ARPU pay-back period 1,635 756 HTC HTC BB Nokia Desire HD HD7 Torch N8 Samsung Post-paid Smartphone Galaxy Tab Price of NT$15,000 Smartphone sales volume Unit: k Moto 449 DEFY Price of NT$8,999 103 SE TWM 2009 2010 X
Slide 7: CATV Growth Catalysts
CATV Growth Catalysts Sub no. 2010 ARPU growth Analogue TV 3% 510 Basic TV Subscription 566,283 subs Digital TV Cable internet 20% 504 Cable internet Subscription 137,299 subs 25,864 subs DTV 258% 187 Blended ARPU 726, +5% YoY 7
Slide 8: Cash Flow Analysis
Cash Flow Analysis NT$bn 4Q10 3Q10 2010 2009 Operating Cash Flow 7.63 5.78 25.99 23.95 Investing Cash Flow (1.53) (1.82) (6.32) (6.75) Financing Cash Flow (2.80) (7.08) (16.63) (18.06) NT$bn 4Q10 3Q10 2010 2009 Cash CAPEX (1.40) (1.97) (6.20) (6.67) Free Cash Flow 6.23 3.81 19.80 17.28 8
Slide 9: Balance Sheet Analysis
Balance Sheet Analysis NT$bn 4Q10 4Q09 4Q10 4Q09 Total Assets 85.48 85.89 Liabilities 34.58 33.80 Current Assets 15.24 11.56 Current Liabilities 23.23 24.75 - Cash & Cash Equivalents 6.05 3.00 - ST Debts 3.70 7.60 - Available-for-Sale Financial Assets 0.20 0.18 - Other Current Liabilities 19.53 17.1
Slide 10: 2011 Forecast
2011 Forecast NT$bn 2011 2010 YoY Revenue 73.96 70.15 5% EBITDA 25.77 27.46 -6% EBITDA Margin 34.85% 39.15% -4.31pps Operating Income 16.29 18.31 -11% Assets Write-off (0.61) (1.47) -58% Pre-Tax Income 15.76 17.10 -8% Tax Expense (2.68) (3.28) -18% Net Income 13.08 13.82 -5% EPS (NT$)1 4.57 4.62 -1%
Slide 11: Event update
Event update 2011 Capex 2011 capex guidance of NT$6.4bn, consisted of NT$4.6bn in mobile, NT$1.2bn in fixed-line, and NT$0.6bn in cable TV operations. Management Change Announced the appointment of George C. Chou as President of TFN, Rosie Yu as CFO of TWM and Steve HS Wang as acting CTO Regulatory
Slide 12: Event update – Cont’d
Event update – Cont’d Awards – Awarded for the fourth time “Best Corporate Governance Award” from Euromoney – Received “Environmental Protection Award” from the Environmental Protection Administration, Executive Yuan, two years in a row – TWM’s “match” mobile internet service was awarded the “Outsta
Slide 13: Key message
Key message Our growth strategy of wireless data starts to pay off in 2011. Regulatory intervention, however, will weigh on our mobile operations this year. But, comparatively, our 21% EBITDA contribution from cable TV and fixed network will mitigate the impact to a certain degree. Our commitment to
Slide 14: Q&A
Q&A 14