Taiwan Mobile Co., Ltd. · TWSE:3045
Taiwan Mobile — Q2 2010 Earnings Presentation
13 slides from Taiwan Mobile's earnings presentation, Jul 27, 2010
Slide 1: Taiwan Mobile Co., Ltd. 2Q10 Results Summary
Taiwan Mobile Co., Ltd. 2Q10 Results Summary Harvey Chang - CEO July 27, 2010
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: Outline
Outline 2Q results summary – 2Q P&L – 2Q divisional performance – 2Q mobile operational analysis – Balance sheet and cash flow analysis 3Q10 forecast Event update Key message 3
Slide 4: Result Summary
Result Summary Unit: NT$m 2Q10 2Q09 2Q10 Execution YoY Actual Actual Forecast % Operating revenue 17,450 17,347 1% 16,880 103% Cost (9,209) (8,444) 9% (9,280) 99% Marketing expense (2,202) (2,425) -9% (2,178) 101% G&A expense (1,110) (1,277) -13% (1,201) 92% Operating income 4,929 5,200 -5% 4,222 11
Slide 5: 2Q Divisional Performance
2Q Divisional Performance YoY YoY YoY Conso- YoY NT$bn CBG HBG EBG Chg. Chg. Chg. lidated Chg. Revenue 13.67 2% 1.42 7% 2.38 -1% 17.45 1% EBITDA 5.93 -5% 0.70 12% 0.57 10% 7.22 -2% EBITDA 43.4% -2.9pps 49.1% 2.3pps 24.1% 2.4pps 41.4% -1.3pps % 5
Slide 6: Wireless Peer Comparison
Wireless Peer Comparison Mobile ARPU 800 724 722 735 731 704 711 670 713 712 700 703 700 655 643 642 648 TWM 600 FET CHT 500 2Q09 3Q09 4Q09 1Q10 2Q10 CHT FET TWM Mobile EBITDA 43.5% 42.6% 43.7% 9,000 44% 40.3% 40.2% 40% TWM 7,000 39.0% 40.5% 39.5% 39.5% 36% FET 5,000 34.9% 32% 3,000 28% 2Q09 3Q09 4Q
Slide 7: VAS and 3G
VAS and 3G CHT FET TWM NT$m % of % of % of VAS VAS VAS service rev. service rev. service rev. 2Q10 2,654 14.5% 2,127 15.9% 2,045 15.0% 2Q09 2,020 11.4% 1,937 14.1% 1,653 12.0% 2Q YoY 31% 10% 24% 1Q YoY 24% 4% 16% 3G post-paid Main VAS drivers 2Q10 3G Service 2Q10 YoY Growth 3,657K 3G SIM number 2 Mo
Slide 8: Cash Flow Analysis
Cash Flow Analysis NT$bn 2Q10 1Q10 2Q09 Operating Cash Flow 4.68 7.90 4.05 Investing Cash Flow (1.48) (1.49) (2.10) Financing Cash Flow (0.31) (6.45) (0.16) Cash CAPEX (1.36) (1.46) (2.09) Free Cash Flow 3.32 6.44 1.95 8
Slide 9: Balance Sheet Analysis
Balance Sheet Analysis NT$bn 2Q10 1Q10 2Q10 1Q10 Total Assets 86.38 84.43 Liabilities 42.33 28.74 Current Assets 14.63 11.49 Current Liabilities 33.27 19.68 - Cash & Cash Equivalents 5.86 2.96 - ST Debts 0.85 1.15 - Available-for-Sale Financial Assets 0.17 0.17 - Other Current Liabilities 32.42 18.5
Slide 10: 3Q10 Forecast
3Q10 Forecast NT$bn 3Q10 QoQ YoY Revenue 17.46 0% 1% EBITDA 6.81 -6% -8% EBITDA Margin 39.0% -2.3pps -3.8pps Operating Income 4.53 -8% -13% Assets Write-off (0.29) -64% -39% Pre-Tax Income 4.30 3% -8% Tax Expense (0.73) -9% -38% Net Income 3.57 6% 2% EPS (NT$)1 1.19 6% 1% 1. EPS is based on 2.99bn s
Slide 11: Event update
Event update M&A – Due to indirect government ownership, TWM's agreement signed with Carlyle failed to be approved by the regulatory authority. The agreement expired at the end of June. Awards – Received the “Corporate Governance Asia Recognition Award” in the Asia-Pacific region by Corporate Govern
Slide 12: Key message
Key message Due to indirect state ownership, our attempt to acquire Carlyle’s cable assets could not be consummated. The agreement expired on 6/30. TWM will re-evaluate the opportunities when the law is revised. 12
Slide 13: Q&A
Q&A 13