Slide 1: Taiwan Mobile Co., Ltd. 4Q12 Results Summary
Taiwan Mobile Co., Ltd. 4Q12 Results Summary January 31, 2013 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. (the “Company”) undertakes no obligation to update or revise the
Slide 3: Business Overview
Business Overview 3
Slide 4: Robust Wireless Data Growth
Robust Wireless Data Growth Mobile Service Revenue YoY Chang Unit: NT$mn 4
Slide 5: Our Smartphone Strategy
Our Smartphone Strategy Smartphone as % of total Current exclusive models handsets sold 78% 64% HTC One SV BB Bold 9790 Sony ion 4Q11 4Q12 2012 ARPU comparison Samsung Galaxy Samsung Galaxy Samsung Galaxy SII 16G Ace II Ace $1,350 $785 TWM TWM Post-paid Smartphone Sony Xperia P Amazing A2 Amazing A1
Slide 6: CATV Growth Catalysts
CATV Growth Catalysts Sub no. Basic TV Digital TV Cable Internet 4Q12 YoY ARPU Subscription Subscription growth 170K subs 77K subs 580K subs Analogue TV 1% $501 Cable internet 10% $545 DTV 68% $134 Cable internet subs mix (20M & above) 28% Blended ARPU * $776 +3%YoY 12% * Calculation based on total
Slide 7: New Product & Service
New Product & Service "M+ Messenger“ Developed locally with exclusive stickers and animations, and the first to allow users to purchase gift certificates within the app for local retail stores and send them as gifts, this service now has over 2 million users. “myVideo” Providing the largest film lib
Slide 8: Financial Overview
Financial Overview 8
Slide 9: Result Summary
Result Summary 4Q12 2012 NT$mn Amount YoY Amount YoY Revenue 25,915 11% 98,141 21% Service revenue* 17,996 4% 71,167 4% Cost (17,017) 15% (62,734) 29% Operating expenses (4,492) 2% (17,227) 14% Operating income 4,406 4% 18,180 3% Net non-oper. items (101) -20% (209) -86% Income before tax 4,304 5% 1
Slide 10: Divisional Performance
Divisional Performance Revenue EBITDA NT$bn momo momo CBG EBG HBG & Total CBG EBG HBG & Total Others Others 4Q12 16.41 2.62 1.54 5.34 25.91 4.96 0.93 0.81 0.20 6.90 % of 63% 10% 6% 21% 100% 72% 13% 12% 3% 100% total QoQ 5% 0% 0% 13% 6% -8% 9% 0% 25% -5% YoY 9% 2% 4% 25% 11% 2% 26% 8% -32% 4% 10
Slide 11: Balance Sheet Analysis
Balance Sheet Analysis NT$bn 4Q12 3Q12 4Q11 4Q12 3Q12 4Q11 Total Assets 92.38 90.17 91.79 Liabilities 41.57 42.93 41.73 Current Assets 20.10 17.67 18.13 Current Liabilities 30.75 37.43 36.11 - Cash & Cash Equivalents 7.22 5.74 6.69 - ST Debts 7.16 17.39 13.90 - Available-for-Sale Financial 0.21 0.20
Slide 12: Cash Flow Analysis
Cash Flow Analysis NT$bn 4Q12 3Q12 4Q11 2012 2011 Operating Cash Flow 9.42 5.02 7.74 25.86 25.25 Investing Cash Flow (2.71) (3.08) (1.41) (9.51) (15.44) Financing Cash Flow (5.23) (2.32) (7.36) (15.81) (11.48) NT$bn 4Q12 3Q12 4Q11 2012 2011 Cash CAPEX (2.35) (2.35) (1.38) (8.12) (6.56) Free Cash Flo
Slide 13: 2013 Forecast
2013 Forecast 13
Slide 14: 2013 Forecast
2013 Forecast IFRS (Fair Value) IFRS (Residual Value) NT$bn 2013 2012 YoY 2013 2012 YoY Revenue 112.38 100.42 12% 111.72 98.28 14% - Telecom Service Revenue 61.21 59.21 3% 69.16 64.59 7% - Handset Sales Revenue 21.43 15.59 38% 12.83 8.06 59% Cash Cost1 62.88 52.52 20% SG&A 19.00 17.44 9% EBITDA 30.5
Slide 15: Fair Value vs. Residual Value
Fair Value vs. Residual Value 2013 NT$bn Residual Fair YoY Adjustments YoY Value Value Revenue 111.72 14% 0.66 112.38 12% - Telecom Service Revenue 69.16 7% (7.95) 61.21 3% - Handset Sales Revenue 12.83 59% 8.61 21.43 38% 2012 NT$bn Residual Fair Adjustments YoY Value Value Revenue 98.28 2.15 100.42
Slide 16: Board Resolutions & Key Message
Board Resolutions & Key Message 16
Slide 17: Board Resolutions
Board Resolutions Spin-off To enhance the company’s distribution efficiency, TWM’s board meeting today (January 31) approved to spin off its direct stores and related operations by setting up a 100% owned subsidiary. The resolution is pending AGM’s approval. Accounting policy change To comply with t
Slide 18: Key Message
Key Message In the face of a challenging environment, enhancing operating efficiency to grow our profitability and ensuring better customer satisfaction have become the top priorities for TWM. To this end, the spin-off of the direct stores and setting up of our own in-house mobile device repair & lo
Slide 19: Q&A
Q&A 19
Slide 20: Fair Value vs. Residual Value
Fair Value vs. Residual Value ROC GAAP IFRS Revenue allocation Residual Value Fair Value policy Handset sales $10,000 Handset sales $15,000 50% Handset market price: $20,000 Telecom revenue $20,000 Telecom revenue $15,000 Total revenue $30,000 Total revenue $30,000 50% Telecom revenue: $20,000 First