Slide 1: Taiwan Mobile Co., Ltd. 2Q11 Results Summary
Taiwan Mobile Co., Ltd. 2Q11 Results Summary July 28, 2011 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
BARK Business Overview
Slide 4: Robust Wireless Data Growth
Robust Wireless Data Growth Mobile Service Revenue YoY Change in 2Q11 Data Business – 2Q11 data NT$: bn CHT FET TWM $986mn Data revenue 3.77 2.95 3.03 % of service 21.7% 21.4% 21.9% revenue F2M pricing change Data revenue $590mn 42% 39% 48% YoY growth mandatory tariff cut $181mn voice 4
Slide 5: Our Smartphone Strategy
Our Smartphone Strategy YTD Contribution comparison 2Q11 new products introduced 1,664 Samsung HTC 755 Galaxy S2 Sensation Post-paid Smartphone HTC Flyer ARPU pay-back period Moto Xoom Price of NT$15,000 Smartphone as % of total handsets sold 52% 30% LG Optimus Black BB 9780 Price of NT$8,999 2Q10 2
Slide 6: CATV Growth Catalysts
CATV Growth Catalysts Sub no. Basic TV 2Q11 YoY ARPU Cable internet Digital TV Subscription growth Subscription 573K subs 147K subs 35K subs Analogue TV 2% 505 Cable internet Cable internet 15% 519 New adds speed mix 30% DTV 107% 171 50% 70% 50% Blended 739, +2% YoY ARPU 2Q10 2Q11 >=10Mbps <10Mbps 6
Slide 7: New Product & Service
New Product & Service Launched three exclusive smartphones in 2Q11: LG Optimus Black, LG P350 and BlackBerry 9780. Launched “Family Hotline” promotion designed to address the more budget-minded subscribers. Subscribers to this plan will receive a free handset and free on-net calls to the family for
Slide 8: Financial Overview
BARK Financial Overview
Slide 9: Result Summary
Result Summary Unit: NT$m 1H11 % of 2Q11 2Q10 YoY Actual Full Year Operating revenue 17,975 17,450 3% 36,197 49% Operating cost (10,358) (9,209) 12% (21,269) 49% Marketing expense (2,321) (2,202) 5% (4,573) 48% G&A expense (1,060) (1,110) -5% (2,138) 45% Operating income 4,236 4,929 -14% 8,217 50% N
Slide 10: Divisional Performance
Divisional Performance Revenue EBITDA NT$bn CBG HBG EBG Total CBG HBG EBG Total 2Q11 14.13 1.47 2.39 17.97 5.17 0.76 0.63 6.58 % of total 79% 8% 13% 100% 78% 12% 10% 100% QoQ -2% 1% -1% -1% 5% 1% 3% 5% YoY 3% 4% 1% 3% -13% 10% 8% -9% 10
Slide 11: Balance Sheet Analysis
Balance Sheet Analysis NT$bn 2Q11 1Q11 2Q11 1Q11 Total Assets 87.16 84.44 Liabilities 41.93 30.25 Current Assets 19.21 15.66 Current Liabilities 32.80 21.16 - Cash & Cash Equivalents 9.87 5.93 - ST Debts 1.03 1.36 - Available-for-Sale Financial Assets 0.21 0.20 - Other Current Liabilities 31.78 19.8
Slide 12: Cash Flow Analysis
Cash Flow Analysis NT$bn 2Q11 1Q11 2Q10 Operating Cash Flow 5.83 6.00 4.68 Investing Cash Flow (1.55) (1.48) (1.48) Financing Cash Flow (0.33) (4.64) (0.31) NT$bn 2Q11 1Q11 2Q10 Cash CAPEX (1.45) (1.28) (1.36) Free Cash Flow 4.38 4.71 3.32 12
Slide 13: Event Update & Key Message
SABA Event Update & Key Message
Slide 14: Event Update
Event Update Capital Reduction Today (July 28), the board approved the capital reduction schedule with a trading suspension period of September 27 to October 12. Shareholders shall receive a cash return of NT$1 per share on October 13. Momo Acquisition On June 30, the Fair Trade Commission approved
Slide 15: Awards
Awards Received the “Corporate Governance Asia Recognition Award” in the Asia- Pacific region by Corporate Governance Asia five years in a row. Ranked 6th in the “Info Tech 100 Taiwan” by Business Next Magazine and also chosen within the “Info Tech 100 Asia”. In addition, received first place in the
Slide 16: Key Message
Key Message Expansion of smartphone take-up has reached 15% of our clientele and successfully alleviated the burden from regulatory interventions. And we expect the trend to continue into second half of this year. Looking ahead, we will reinforce network upgrades to attract more wireless data users
Slide 17: Q&A
Q&A 17