Chunghwa Telecom Co., Ltd · TWSE:2412
Chunghwa Telecom — Q1 2017 Earnings Presentation
18 slides from Chunghwa Telecom's earnings presentation, Apr 27, 2017
Slide 1: 1Q 2017 Operating Results
1Q 2017 Operating Results April 27, 2017 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) Operational Strategies Domestic Fixed Streamline services and strengthen – #1 Local profitability • 93.5% share by subs (10.90mn subs) • 86.3% share by minutes Capitalize and remain at the forefront of digital – #1 DLD convergence trends • 84.9% s
Slide 5: Number One Mobile Services Provider
Number One Mobile Services Provider Mobile Internet Adoption Strategy Mobile Internet Subs as % of Postpaid Subs Offer new 4G plans for mid-to-low Thousand 76.6% and mid-to-higher tier customers, 7,000 74.8% 80% 72.3% raising threshold for unlimited data subscriber 6,000 69.4% 75% 67.0% 5,000 6,661
Slide 6: Fixed Broadband and Internet Services
Fixed Broadband and Internet Services Performance Strategy Broadband Access Revenue Leverage network capability to offer high- NT$ mn 720 712 716 718 721 ARPU NT$ speed upload service 5,000 4,277 4,210 4,278 4,289 4,307 Leverage Big Data capability for precision 600 marketing and precision network c
Slide 7: MOD/ IPTV Service
MOD/ IPTV Service Performance Strategy Subscriber market share (CATV+IPTV) Introduce popular local channels to provide multiple channel package options YoY remained at around 20.4% in Q4 2016 Lead to launch MOD 4K trial service in March Continue to enrich content, including movies, Household TV Usag
Slide 8: Enterprise ICT Initiatives
Enterprise ICT Initiatives Performance Strategy IoT service revenue totaled NT$0.87 Leverage our advantage on network bn in 1Q 2017, a 14% increase YoY infrastructure, IDC, CDN, etc. to expand Acquired several significant ICT ICT business projects in 1Q 2017 with contract amount totaling NT$2.55bn L
Slide 9: Financials Overview
Financials Overview
Slide 10: Financials: Income Statement Highlights
Financials: Income Statement Highlights Consolidated Growth Growth (NT$bn) Q1 2017 Q1 2016 % 2016 2015 % Revenues 54.53 56.94 (4.2) 230.00 231.79 (0.8) Operating Costs and 42.99 43.15 (0.4) 181.39 181.33 0.0 Expenses Income from 11.53 13.78 (16.3) 48.11 50.36 (4.5) Operations Net Income2 9.61 11.67
Slide 11: Financials: Business Segment Revenues
Financials: Business Segment Revenues Growth Growth (NT$bn) Q1 2017 Q1 2016 2016 2015 % % Domestic Fixed 16.78 17.73 (5.4) 72.51 72.25 0.4 Local 7.39 7.96 (7.2) 31.65 33.57 (5.7) DLD 0.65 0.72 (8.8) 2.88 3.12 (7.6) Broadband Access 4.73 4.83 (2.0) 19.03 19.34 (1.6) MOD 0.61 0.58 4.8 2.36 2.49 (5.5)
Slide 12: Financials: Costs & Expenses
Financials: Costs & Expenses Consolidated Growth Growth (NT$bn) Q1 2017 Q1 2016 % 2016 2015 % Operating Costs 34.64 35.10 (1.3) 147.55 148.13 (0.4) Operating Expenses 8.35 8.05 3.7 33.84 33.20 1.9 Marketing 6.34 6.00 5.8 25.52 25.07 1.8 General and Administrative 1.09 1.15 (5.2) 4.54 4.51 0.5 R&D Ex
Slide 13: Cash Flow & EBITDA Margin
Cash Flow & EBITDA Margin Consolidated Growth Growth (NT$bn) Q1 2017 Q1 2016 % 2016 2015 % Net Cash Flow from 10.65 6.49 64.1 64.95 76.33 (14.9) Operating Activities CapEx 4.61 3.39 36.0 23.52 25.08 (6.2) Free Cash Flow 6.04 3.10 94.8 41.43 51.25 (19.2) Cash and Cash Equivalents at the end of period
Slide 14: Operating Results vs. Forecast
Operating Results vs. Forecast Consolidated Q1 2017 Q1 2017 Achieving 2017 Achieving (NT$bn) (A) （E） % (E) % Revenues 54.53 54.66 99.8 231.16 23.6 Operating Costs and 42.99 43.98 97.8 186.45 23.1 Expenses Income from Operations 11.53 10.68 108.0 44.66 25.8 Net Income2 9.61 8.93 107.5 36.89 26.0 EPS
Slide 15: Effective and Efficient Capital Expenditure
Effective and Efficient Capital Expenditure Capital Expenditure Budgeted capex for 2017: NT$30.3 bn NT$ bn Continue to focus on core businesses 50 for future investments 45 20% – FTTx 14.4% 40 10.8% 10.2% 13.1% – 4G 8.5% – Service Platforms 10% 32.6 5.9% 35 30.3 – IDC/ Cloud Capex as % of Revenue 0.
Slide 16: Reference
Reference
Slide 17: Regulatory Update (2017/4/1~2020/3/31)
Regulatory Update (2017/4/1~2020/3/31) Years Target Business Applicable Services X factor in Formula : △CPI - X effect Broadband access monthly fee 1. The three year (exclude FTTH、FTTB、ADSL and tariff reduction 1 3.19% plan is applicable >100Mpbs service) from April 1. 2017 to March 31, 2020 and a
Slide 18: Q&A
Q&A