Taiwan Mobile Co., Ltd. · TWSE:3045
Taiwan Mobile — Merger or Acquisition (January 2022)
12 slides from Taiwan Mobile's merger presentation, Jan 3, 2022
Slide 1: Taiwan Star Merging into Taiwan Mobile
Taiwan Star Merging into Taiwan Mobile January 3rd, 2022 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: Transaction Summary
Transaction Summary Issuing c.282M shares to merge Taiwan Star Structure Shareholding Timeline Taiwan Mobile to be Taiwan Star Transaction the surviving shareholders consummation subject company post merger to have to approvals from c.7.4% stake in TWM NCC and FTC 3
Slide 4: Transaction Rationale
Transaction Rationale Greater Scale Enhanced Customer Satisfaction Significant Synergies Earnings Growth Healthy FCF & Financial Flexibility 4
Slide 5: Greater Scale & Customer Satisfaction
Greater Scale & Customer Satisfaction Mobile Subscribers Spectrum/mobile user (MHz/million user) 9.8 10.7 Unit:M 7.1 7.1 Industry 2.1 TWM Post-merger CHT FET APT TWM post merger Source：NCC Statistics as of Oct. 2021 (w/o 040 subscribers) 20 25 30 Mobile MobileService Revenue Service Revenue NT$bn 3.
Slide 6: Source of Synergies
Source of Synergies Business streamlining 20% Network consolidation 49% Customer contribution 31% 6
Slide 7: EBITDA Growth and Gearing
EBITDA Growth and Gearing TWM EBITDA Net Debt Net Debt to EBITDA Increments TWM Telecom Telecom EBITDA Unit: NT$M Increments EBITDA $23bn $26.6bn 7,089 Year 1 2.42 Year 3 2.20 $14.4bn Year 1 Year 2 Year 3 Year to Nov. 2021 telecom EBITDA is NT$22.8bn 7
Slide 8: Post Merger Net Profit
Post Merger Net Profit NT$M TWM Post Merger Unit: NT$M TWM Estimated PostIncrements Merger Estimated Increments Year to Nov. Year 1 Year 2 Year 3 2021 2021 8
Slide 9: Future Focus
Future Focus ➢ Propels future revenue and earnings growth ➢ Cements TWM’s position in the mobile business with ESG fulfillment ➢ Accelerates Taiwan’s 5G service proliferation ➢ Targets total return strategy 9
Slide 10: Thank You
SIBASK Taiwan Mobile
Slide 11: Appendix
Appendix 11
Slide 12: TST's P&L
TST’s P&L NT$M 2019 2020 1H2021 Revenue 13,125 12,874 6,333 EBITDA 3,028 2,966 1,438 D&A 4,840 5,151 2,792 EBIT (1,812) (2,185) (1,354) Non-operating expense (874) (987) (589) Pre-tax loss (2,686) (3,173) (1,943) Pro forma Pre-IFRS 16 EBITDA 639 594 261 12