Chunghwa Telecom Co., Ltd · TWSE:2412

Chunghwa Telecom — Q3 2019 Earnings Presentation

16 slides from Chunghwa Telecom's earnings presentation, Oct 30, 2019

  1. Slide 1: 3Q 2019 Operating Results

    3Q 2019 Operating Results October 30, 2019 © Chunghwa Telecom TSE: 2412 NYSE: CHT

  2. 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

  3. Slide 3: Business Overview

    Business Overview © Chunghwa Telecom

  4. Slide 4: Chunghwa Telecom Overview

    Chunghwa Telecom Overview Strong Market Position (a) Operational Strategies Domestic Fixed Streamline services and strengthen – #1 Local profitability • 92.7% share by subs (10.25 mn subs) Capitalize and remain at the forefront of digital • 83.7% share by minutes – #1 DLD convergence trends • 82.1%

  5. Slide 5: Number One Mobile Services Provider

    Number One Mobile Services Provider Mobile Service Revenue Strategy Billion 18 0% Expand IoT services over NB-IoT 16 -2% 14 and Cat-M1 network (before IFRS 15 adoption) -4% 12 -6% Offer diversified rate plans and revenue 10 YoY growth rate -8% 8 6 -10% product portfolio to satisfy customer -12% 4 de

  6. Slide 6: Fixed Broadband and Internet Services

    Fixed Broadband and Internet Services Performance Strategy Broadband Access Revenue Leverage network capability to offer ARPU NT$ NT$ mn 703 707 702 705 703 high-speed upload service 5,000 4,225 4,267 4,201 4,231 4,192 600 Leverage Big Data capability for 400 2,500 200 precision marketing and precis

  7. Slide 7: MOD/ IPTV Service

    MOD/ IPTV Service Performance Strategy Continue to enrich content, including Subscription for 3Q 2019 grew 9.4% YoY movies, drama and TV series for SVOD Revenue for 3Q 2019 grew 5.9% YoY Leverage the existing broadband and 4G Revenue from advertisement for 3Q 2019 mobile subscriber base to grow MOD

  8. Slide 8: Enterprise ICT Initiatives

    Enterprise ICT Initiatives Performance Strategy Obtain Advanced Metering Leverage our advantage on network Infrastructure (AMI) project from infrastructure, IDC, CDN, ect. to expand Taipower to establish more than 250 ICT business thousand NB-IoT metering Deploy nationwide NB-IoT/Cat M1 dual connect

  9. Slide 9: Financials Overview

    Financials Overview © Chunghwa Telecom

  10. Slide 10: Financials: Income Statement Highlights

    Financials: Income Statement Highlights Consolidated Growth Jan-Sep Jan-Sep Growth (NT$bn) Q3 2019 Q3 2018 % 2019 2018 % Revenues 50.85 52.70 (3.5) 152.29 160.00 (4.8) Operating Costs and 40.81 42.28 (3.5) 121.54 126.49 (3.9) Expenses Income from 10.02 10.42 (3.9) 30.72 33.41 (8.1) Operations Net In

  11. Slide 11: Financials: Business Segment Revenues

    Financials: Business Segment Revenues Growth Jan-Sep Jan-Sep Growth (NT$bn) Q3 2019 Q3 2018 % 2019 2018 % Domestic Fixed 15.63 16.46 (5.1) 47.34 48.62 (2.6) Local 6.45 6.89 (6.3) 19.42 20.84 (6.8) DLD 0.55 0.61 (9.3) 1.66 1.84 (9.9) Broadband Access 4.46 4.55 (1.8) 13.47 13.73 (1.9) MOD 0.90 0.85 6.

  12. Slide 12: Financials: Costs & Expenses

    Financials: Costs & Expenses Consolidated Growth Jan-Sep Jan-Sep Growth (NT$bn) Q3 2019 Q3 2018 % 2019 2018 % Operating Costs 33.02 34.43 (4.1) 98.77 102.07 (3.2) Operating Expenses 7.79 7.85 (0.7) 22.77 24.42 (6.7) Marketing 5.59 5.81 (3.7) 16.38 18.17 (9.9) General and Administrative 1.12 1.09 2.6

  13. Slide 13: Financials: Cash Flow

    Financials: Cash Flow Consolidated Growth Jan-Sep Jan-Sep Growth (NT$bn) Q3 2019 Q3 2018 % 2019 2018 % Net Cash Flow from 19.68 21.76 (9.6) 48.85 46.21 5.7 Operating Activities CapEx 6.04 8.13 (25.7) 16.36 19.35 (15.5) Free Cash Flow 13.64 13.63 0.1 32.49 26.86 21.0 Cash and Cash Equivalents at the

  14. Slide 14: Operating Results vs. Forecast

    Operating Results vs. Forecast Consolidated Jan-Sep Q3 2019 Q3 2019 Achieving 2019 Achieving (NT$bn) (A) （ E） % 2019 (E) % (A) Revenues 50.85 54.26 ~ 54.85 92.7 ~ 93.7 152.29 220.56 ~ 222.91 68.3 ~ 69.0 Operating Costs and 40.81 43.37 ~ 43.42 94.0 ~ 94.1 121.54 177.84 ~ 178.25 68.2 ~ 68.3 Expenses I

  15. Slide 15: Effective and Efficient Capital Expenditure

    Effective and Efficient Capital Expenditure Capital Expenditure Budgeted capex for 2019: NT$29.0 bn NT$ bn Continue to focus on core businesses for future investments 50 – FTTx 20% 45 13.2% 13.1% 12.1% – 4G 11.9% 10.7% 40 10.2% 10% – IDC/ Cloud 35 29.0 – Service Platforms 28.6 Capex as % of Revenue

  16. Slide 16: Q&A

    Q&A © Chunghwa Telecom ee

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