Taiwan Mobile Co., Ltd. · TWSE:3045
Taiwan Mobile — 4Q23 Earnings Presentation
19 slides from Taiwan Mobile's earnings presentation, Feb 21, 2024
Slide 1: Taiwan Mobile Co., Ltd. 4Q23 Results Summary
Taiwan Mobile Co., Ltd. 4Q23 Results Summary February 21, 2024 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. (or hereafter the “Company”) undertakes no obligation to update o
Slide 3: Business Overview
Business Overview 3
Slide 4: 2023 Highlights
2023 Highlights Solid top-line expansions across all 3 core sectors Mobile Service Revenue E-commerce Home Broadband Subs +8% YoY +7% YoY +4% YoY Consolidated EBITDA +4% YoY Net income +11% YoY Note: Financial numbers on this page include preliminary unaudited numbers and management accounts. 4
Slide 5: Mobile – Growth Engine #1
Mobile – Growth Engine #1 4Q23 results Smartphone ARPU Mobile Service Revenue Monthly fee uplift from renewals 703 14.12 bn +48% 4G to 5G 682 671 +10% Overall - 0% 4G to 4G 2021 2022 2023 4Q19 4Q20 4Q21 4Q22 4Q23 4Q22 4Q23 5G Penetration of Smartphone User Base Unique bundles momobile Double Play Di
Slide 6: momo – Growth Engine #2
momo – Growth Engine #2 Revenue EBITDA (NT$mn) YoY (NT$mn) YoY Total 103,436 109,243 +6% 5,393 5,593 +4% Others E-commerce 105,136 +7% +8% 98,607 5,085 4,699 2022 2023 2022 2023 Main + Satellite E-commerce E-commerce Total Transaction (#) EBITDA Margin 0.08 Warehouses (#) 15.00% -0.12 +7.2% -0.32 59
Slide 7: Broadband – Growth Engine #3
Broadband – Growth Engine #3 Cable Broadband Subscriber 4Q23 Penetration Rate (TFNM+Double Play) YoY 69.2% +55% 58.5% 60.2% ≥300Mbps 49.6% <300Mbps Top 4 Top 4 TFNM MSO TFNM MSO 4Q22 4Q23 DTV Broadband Source: Market intelligence Source: Market intelligence CATV Revenue CATV EBITDA (NT$mn) (NT$mn) 1
Slide 8: Financial Overview
Financial Overview 8
Slide 9: Performance by Business
Performance by Business Revenue EBITDA NT$bn Telecom momo CATV Total1 Telecom momo CATV Total1 4Q23 20.63 32.84 1.57 53.60 6.90 1.70 0.73 9.45 % of 38% 61% 3% 100% 73% 18% 8% 100% total 4Q23 12% 3% -6% 6% 11% 5% -1% 9% YoY 2023 71.49 109.24 6.26 183.35 26.79 5.59 2.97 35.79 % of 39% 60% 3% 100% 75%
Slide 10: Results Summary
Results Summary 4Q23 2023 NT$bn Amount QoQ YoY Amount YoY Revenues 53.60 24% 6% 183.35 6% Cash Cost & Expense (44.15) 28% 5% (147.56) 7% Operating Income 4.48 4% 4% 17.54 4% Non-op. Income (Exp.) 0.46 nm nm (0.07) -90% Pre-tax Income 4.93 19% 28% 17.47 8% Net Income 3.59 22% 45% 12.27 11% EPS (NT$)
Slide 11: Balance Sheet Analysis
Balance Sheet Analysis NT$bn 4Q23 3Q23 4Q22 NT$bn 4Q23 3Q23 4Q22 Total Assets 242.96 187.56 193.07 Liabilities 149.58 118.97 120.22 Current Assets 44.16 37.95 41.44 Current Liabilities 75.73 60.56 69.57 - Cash & Cash Equivalents 13.24 11.02 14.93 - ST Debts 35.05 27.02 33.42 - Receivable & Contract
Slide 12: Cash Flow Analysis
Cash Flow Analysis NT$bn 4Q23 4Q22 2023 2022 Operating 7.69 8.20 29.06 29.58 Investing 0.51 (2.06) (7.07) (11.63) Financing (6.14) (3.00) (23.67) (18.41) NT$bn 4Q23 4Q22 2023 2022 Pre-IFRS 16 Operating1 6.45 7.18 24.53 25.37 Cash CAPEX (1.43) (1.79) (8.10) (9.63) Free Cash Flow 5.01 5.39 16.43 15.74
Slide 13: Event Updates
Event Updates 13
Slide 14: 2023 Earnings Distribution
2023 Earnings Distribution On February 21st, Taiwan Mobile’s Board approved the proposal to distribute NT$13bn in cash dividends, translating to c.4.4% yield to shareholders. Dividend per share is NT$4.3 on 3.025bn shares, excluding treasury shares held by 100%-owned subsidiaries. 14
Slide 15: 2024 Guidance
2024 Guidance Consolidated revenue: up 12~14% YoY Telecom-related revenues: up 18~20% YoY E-commerce, new technology services and other revenue: up 9~11% YoY Consolidated EBITDA: up 11~13% YoY Gross profit margin: between 18% and 20% Operating profit margin: between 7% and 9% Group capex: NT$8.55bn
Slide 16: Awards and ESG Recognitions
Awards and ESG Recognitions Sustainable Taiwanese Service Carbon Businesses Award Management Top 10 for 9 years in a row Award Highest ranked telecom operator DJSI World Index 7 awards received For 7 years in a row Ranked top 3 in the telecom industry DJSI Emerging Markets Index National Sustainable
Slide 17: Key Message
Key Message Taiwan Mobile delivered strong top-line and EBITDA growth in our core telecom business throughout 2023, underscored by the successful completion of the T Star merger. Now, as the clear #2 player with a robust 10 million user base, we are poised to maximize shareholder value. Our strategi
Slide 18: Taiwan Mobile
SIBARK Taiwan Mobile 18
Slide 19: Appendix: TWM – TST Merger
Appendix: TWM – TST Merger • The merger with T Star was effective on December 1, 2023. • Approximately 204mn new shares were issued, bringing total outstanding shares to 3,723mn (including 699mn treasury shares which are excluded from EPS calculation and dividend distribution). Combined Sub 6GHz Spe