Chunghwa Telecom Co., Ltd · TWSE:2412

Chunghwa Telecom — Q2 2020 Earnings Presentation

18 slides from Chunghwa Telecom's earnings presentation, Jul 30, 2020

  1. Slide 1: 2Q 2020 Operating Results

    2Q 2020 Operating Results Jul 30, 2020 1 © Chunghwa Telecom

  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 3 © Chunghwa Telecom

  4. Slide 4: Mobile and broadband customer growth highlights

    + Mobile Increased adoption of higher price plans Always Broadband Connected Fixed Home Wi-Fi Broadband (Mesh) 300Mbps ↑ Customers Home Wi-Fi Customers YoY 81.4% YoY 120% 4 © Chunghwa Telecom

  5. Slide 5: Subscribers: #1 Mobile Services Provider

    #1 Mobile Services Provider #1 Mobile Revenue (a)(b) #1 Mobile Subscribers (c) Other, CHT 15.0% CHT, 38.2% FET, 36.9% Other 24.1% TWM, Source: Company data, MOTC and NCC statistics Note : 24.0% a) Market share as of May 2020 b) Revenues are based on T-IFRSs c) 040 subscribers included Lowest Decline

  6. Slide 6: 5G Services & Solution

    5G Services & Solution 5G Services & Solution Massive Connectivity (mMTC) Smart Meter Management System Smart Inspection Low Latency (URLLC) Transportation Smart EMS/Telecare Solutions Smart video streaming application 5G Private network AR Enterprise Ultra-High Speed Application Hami VR/VR-XRSPACE

  7. Slide 7: 5G Deployment Plan

    5G Deployment Plan >8,500 base stations >4,000 base stations >2,000 base stations 5G base stations Full coverage in Nationwide in all 22 cities as major cities and coverage 5G launch transportation lines expansion 3.5GHz & 2.1GHz 3.5GHz & 2.1GHz 3.5GHz & 2.1GHz 5G+4G 4CA 5G+4G 4CA 5G+4G 5CA 2020/6/3

  8. Slide 8: Fixed Broadband Service

    Fixed Broadband Service Broadband Revenue Fixed Broadband Subs ARPU( NT$) Fiber ≥ 300M 705 703 713 715 722 8,000 700 YoY 81.4% 7,000 600 4,455 4,434 4,405 4,388 4,375 6,000 5,269 5,225 5,286 5,305 5,356 500 5,000 34% 35% 36% 37% 38% 400 4,000 4,511 4,461 4,515 4,499 4,530 300 3,000 48% 47% 46% 45% 4

  9. Slide 9: MOD/ IPTV Service

    MOD/ IPTV Service (Thousand) 1,200 2,100 1,600 1,100 2,082 2,090 2,082 2,086 2,085 2,050 1,400 1,338 1,347 1,327 1,328 1,264 2,000 1,000 1,200 896 902 921 912 915 1,950 900 1,900 1,000 1,850 800 800 1,800 600 700 1,750 1,700 400 600 1,650 200 500 1,600 0 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q2 19 Q3 19 Q4

  10. Slide 10: ICT Business

    ICT Business YoY 4.2% YoY 6.8% YoY 3.7% Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 YoY 15.8% 10 © Chunghwa Telecom

  11. Slide 11: Financials Overview

    Financials Overview 11 © Chunghwa Telecom

  12. Slide 12: Financials: Income Statement Highlights

    Financials: Income Statement Highlights Consolidated Growth Growth (NT$bn) Q2 2020 Q2 2019 % H1 2020 H1 2019 % Revenues 47.81 50.11 (4.6) 95.96 101.44 (5.4) Operating Costs and 37.19 39.80 (6.6) 74.81 80.72 (7.3) Expenses Income from 10.61 10.30 3.0 21.14 20.71 2.1 Operations Net Income2 8.57 8.57 -

  13. Slide 13: Financials: Business Segment Revenues

    Financials: Business Segment Revenues Growth Growth (NT$bn) Q2 2020 Q2 2019 H1 2020 H1 2019 % % Domestic Fixed 15.69 15.88 (1.2) 30.38 31.64 (4.0) Local 6.15 6.46 (4.9) 12.26 12.88 (4.8) DLD 0.52 0.56 (7.8) 1.02 1.11 (8.0) Broadband Access 4.53 4.51 0.4 9.03 9.01 0.3 MOD 0.92 0.90 2.2 1.83 1.78 2.6

  14. Slide 14: Financials: Costs & Expenses

    Financials: Costs & Expenses Consolidated Growth Growth (NT$bn) Q2 2020 Q2 2019 % H1 2020 H1 2019 % Operating Costs 29.80 32.27 (7.6) 60.19 65.75 (8.5) Operating Expenses 7.39 7.53 (2.0) 14.62 14.97 (2.4) Marketing 5.28 5.44 (3.0) 10.35 10.78 (4.0) General and Administrative 1.15 1.14 0.6 2.37 2.31

  15. Slide 15: Financials: Cash Flow

    Financials: Cash Flow Consolidated Growth Growth (NT$bn) Q2 2020 Q2 2019 % H1 2020 H1 2019 % Net Cash Flow from 13.17 15.95 (17.5) 26.48 29.17 (9.2) Operating Activities CapEx 5.52 5.82 (5.3) 9.24 10.31 (10.4) Free Cash Flow 7.65 10.13 (24.5) 17.24 18.86 (8.6) Cash and Cash Equivalents at the end of

  16. Slide 16: Operating Results vs. Forecast

    Operating Results vs. Forecast Consolidated Q2 2020 Q2 2020 Achieving H1 2020 2020 Achieving (NT$bn) (A) （E） % (A) (E) % Revenues 47.81 50.30 ~ 50.58 94.5 ~ 95.0 95.96 214.10 ~ 215.29 44.6 ~ 44.8 Operating Costs and 37.19 40.22 ~ 40.30 92.3 ~ 92.5 78.41 175.51 ~ 175.83 42.5 ~ 42.6 Expenses Income fr

  17. Slide 17: Effective and Efficient Capital Expenditure

    Effective and Efficient Capital Expenditure Capital Expenditure Budgeted capex for 2020: NT$30.7 bn NT$ bn Continue to focus on core businesses for future investments 50 20% – FTTx 45 11.9% 13.2% 11.7% 14.3% – 4G 40 10.2% 9.6% 10% – 5G 35 30.7 – IDC/ Cloud Capex as % of Revenue 28.6 1.9 0% 26.9 – Se

  18. Slide 18: Q&A

    me DHeE CChunghwaTelecom Q&A Chunghwa Telecom

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