Slide 1: 4Q 2015 Operating Results
4Q 2015 Operating Results January 28, 2016 TSE: 2412 NYSE: CHT
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
Slide 3: Business Overview
Business Overview
Slide 4: Chunghwa Telecom Overview
Chunghwa Telecom Overview Strong Market Position (a) Mobile Performance Domestic Fixed Mobile market shares continued to grow – #1 Local • 94.0% share by subs (11.18 mn subs) 39.0% • 85.7% share by minutes 38.1% – #1 DLD 38.0% • 82.3% share by minutes 37.0% – #1 Broadband access 37.0% 37.2% • 75.9%
Slide 5: Number One Mobile Services Provider
Number One Mobile Services Provider Performance Mobile Broadband Spectrum Advantage-3CA Strategy Having the largest 130MHz mobile Rolling out 2.6G service in 2Q16 at the broadband spectrum earliest to offer best QoE to 4G customers Being able to offer a faster theoretical peak Focusing on 4G service
Slide 6: Fixed Broadband and Internet Services
Fixed Broadband and Internet Services Performance Strategy Broadband Access Revenue Leveraging network capability to offer high- NT$ mn 709 713 710 714 721 ARPU NT$ speed upload service 5,000 4,074 4,136 4,135 4,194 4,289 Leveraging Big Data capability for precision 600 marketing and precision netwo
Slide 7: MOD/ IPTV Service
MOD/ IPTV Service Performance Strategy Subscriber market share (CATV+IPTV) Continuing to enrich contents, including YoY remained at around 20.4% in Q3 movies, drama, TV series for SVOD 2015 Enhancing both MOD and OTT user interface Household TV Usage rate increased to Leveraging the existing broadba
Slide 8: Enterprise ICT Initiatives
Enterprise ICT Initiatives Performance Strategy Information security and cloud service Leveraging our advantage on network revenue increased 23% YoY in 2015 infrastructure, IDC, CDN, etc. to expand ICT business Personal Cloud (Hami+) subscribers was 3 million till Dec. 2015 Offering ICT total soluti
Slide 9: Financials Overview
Financials Overview
Slide 10: Financials: Income Statement Highlights
Financials: Income Statement Highlights Consolidated Growth Growth (NT$bn) Q4 2015 Q4 2014 % 2015 2014 % Revenues 62.22 59.63 4.3 231.79 226.61 2.3 Operating Costs and 50.84 50.89 (0.1) 181.30 182.44 (0.6) Expenses Income from 11.37 9.41 20.8 50.39 44.80 12.5 Operations Net Income2 9.47 8.07 17.3 42
Slide 11: Financials: Business Segment Revenues
Financials: Business Segment Revenues Growth Growth (NT$bn) Q4 2015 Q4 2014 2015 2014 % % Domestic Fixed 19.33 19.60 (1.4%) 72.54 72.06 0.7% Local 8.23 8.72 (5.6%) 33.57 35.60 (5.7%) DLD 0.76 0.81 (6.4%) 3.12 3.31 (5.7%) Broadband Access 4.87 4.84 0.7% 19.34 19.12 1.2% MOD 0.57 0.70 (18.5%) 2.49 2.5
Slide 12: Financials: Costs & Expenses
Financials: Costs & Expenses Consolidated Growth Growth (NT$bn) Q4 2015 Q4 2014 % 2015 2014 % Operating Costs 41.83 41.89 (0.1) 148.13 148.38 (0.2) Operating Expenses 9.01 9.00 - 33.17 34.06 (2.6) Marketing 6.86 6.86 - 25.06 26.14 (4.1) General and Administrative 1.15 1.25 (8.7) 4.50 4.41 1.9 R&D Ex
Slide 13: Cash Flow & EBITDA Margin
Cash Flow & EBITDA Margin Consolidated Growth Growth (NT$bn) Q4 2015 Q4 2014 % 2015 2014 % Net Cash Flow from 28.47 28.94 (1.6) 75.80 71.38 6.2 Operating Activities CapEx 9.61 11.59 (17.1) 25.08 32.56 (23.0) Free Cash Flow 18.86 17.35 8.7 50.72 38.82 30.7 Cash and Cash Equivalents at the end of peri
Slide 14: 2015 Operating Results vs. 2015 Forecast
2015 Operating Results vs. 2015 Forecast Consolidated Q4 2015 Q4 2015 Achieving Achieving (NT$bn) (A) （E） % 2015 (A) 2015 (E) % Revenues 62.22 62.26 99.9 231.79 231.09 100.3 Operating Costs and 50.84 51.94 97.9 181.30 185.92 97.5 Expenses Income from 11.37 10.28 110.6 50.39 45.05 111.9 Operations Ne
Slide 15: 2016 Forecast
2016 Forecast Consolidated Growth (NT$bn) 2015 2016(E) % Revenues 231.79 233.49 0.7 Operating Costs and Expenses 181.30 185.53 2.3 Income from Operations 50.39 47.75 (5.2) Net Income 42.82 39.98 (6.6) EPS 5.52 5.15 (6.6) EBITDA 83.84 82.24 (1.9) EBITDA Margin (%) 36.17 35.22 - Note : 1. Financials a
Slide 16: Effective and Efficient Capital Expenditure
Effective and Efficient Capital Expenditure Capital Expenditure Budgeted capex for 2016: NT$30.6 bn NT$ bn Continue to focus on core businesses for future investments 50 20% – 4G 45 15.0% 16.0% 14.4% 40 10.8% 13.1% – FTTx 36.4 10% 35 33.3 0.6 1.6 32.6 25.0 30.6 – Service Platforms Capex as % of Reve
Slide 17: Q&A
Q&A