Taiwan Mobile Co., Ltd. · TWSE:3045
Taiwan Mobile — Q2 2009 Earnings Presentation
14 slides from Taiwan Mobile's earnings presentation, Jul 30, 2009
Slide 1: Taiwan Mobile Co., Ltd. 2Q09 Results Summary
Taiwan Mobile Co., Ltd. 2Q09 Results Summary Harvey Chang - CEO July 30, 2009
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 3Q09 forecast Event update Key message 3
Slide 4: Result Summary
Result Summary Unit: NT$m 2Q Actual 2Q Forecast Execution % Operating revenue 17,347 17,299 100% Cost (8,442) (8,049) 105% Marketing expense (2,425) (2,771) 88% G&A expense (1,280) (1,325) 97% Operating income 5,200 5,153 101% Net non-oper. items (392) (428) 92% Income before tax 4,808 4,725 102% Ne
Slide 5: 2Q Divisional Performance
2Q Divisional Performance YoY YoY YoY Conso- YoY NT$bn CBG EBG HBG Chg. Chg. Chg. lidated Chg. Revenue 13.45 -3% 2.40 -3% 1.34 22% 17.35 -1% EBITDA 6.22 -6% 0.52 8% 0.62 15% 7.40 -4% D&A 1.92 7% 0.10 109% 0.13 -5% 2.20 8% EBIT 4.30 -11% 0.42 -4% 0.49 22% 5.20 -9% EBITDA % 46.2% -1.6pps 21.9% 2.3pps
Slide 6: Wireless Peer Comparison
Wireless Peer Comparison Subs CHT FET TWM Total (K) 2Q09 9,012* 6,267 6,390 21,668 2Q08 8,779 6,223 6,223 21,225 2Q YoY 2.7% 0.7% 2.7% 2.1% *: CHT is based on May number. 50.0% Mobile EBITDA Margin TWM 45.0% 43.5% 45.5% 45.1% 42.0% 42.6% 42.2% 42.4% 40.0% 41.6% 40.5% 39.0% 35.0% FET 30.0% 2Q08 3Q08
Slide 7: VAS and 3G
VAS and 3G CHT FET TWM NT$m % of % of % of VAS1 VAS VAS service rev. service rev. service rev. 2Q09 2,004 11.3% 1,937 14.1% 1,653 12.0% 2Q08 1,683 9.3% 1,736 12.0% 1,309 9.0% 2Q YoY 19% 12% 26% 1Q YoY 19% 8% 22% 1. CHT June VAS revenue is an estimate. 3G post-paid Main VAS drivers 2Q09 3G Service 2Q
Slide 8: Balance Sheet Analysis
Balance Sheet Analysis NT$bn 2Q09 1Q09 2Q09 1Q09 Total Assets 91.88 90.99 Liabilities 47.26 36.51 Current Assets 15.70 13.11 Current Liabilities 38.24 27.56 - Cash & Cash Equivalents 6.50 4.73 - ST Debts 7.50 8.00 - Available-for-Sale Financial Assets 0.32 0.22 - Other Current Liabilities 30.74 19.5
Slide 9: Cash Flow Analysis
Cash Flow Analysis NT$bn 2Q09 1Q09 2Q08 Operating Cash Flow1 4.05 6.92 6.40 Investing Cash Flow (2.10) (1.66) (1.62) Financing Cash Flow (0.16) (4.41) (9.39) Cash CAPEX (2.09) (1.50) (1.44) Free Cash Flow 1.95 5.42 4.96 Note 1: Inclusive of cashflow for cash managements. 9
Slide 10: 3Q09 Forecast
3Q09 Forecast NT$bn 3Q09 QoQ YoY Revenue 17.57 1% 0% EBITDA 7.36 -1% -4% EBITDA Margin 41.87% -0.77pps -1.58pps Operating Income 5.09 -2% -8% Assets Write-off (0.39) 1% 104% Pre-Tax Income 4.64 -3% -14% Tax Expense (1.16) -3% -14% Net Income 3.48 -3% -14% EPS (NT$)1 1.17 -3% -14% Note: 1. EPS is bas
Slide 11: Event update
Event update Regulatory and industry updates – The Taiwan’s authority has not yet approved the China Mobile - FET deal at this stage. – CHT has agreed to lower the price of IP peering, effective from January 2009. – The cabinet proposed a Company Act revision, by lowering the threshold of dividend d
Slide 12: Event update - cont'd
Event update - cont’d Award and recognition – Ranked sixth in the “Info tech 100 Taiwan” by Business Next Magazine and U.S. Business Week, ahead of telecom rivals – Received, for the sixth year in a row, the “Gold Trusted Brand” by Reader’s Digest 12
Slide 13: Key message
Key message With on-going economic recovery, Taiwan Mobile’s revenue is expected to stabilize. Continuous growth in mobile value-added service, driven largely by data cards, and expanding HBG business, particularly in cable broadband and content aggregation, together with discipline over spending is
Slide 14: Q&A
Q&A 14