Chunghwa Telecom Co., Ltd · TWSE:2412

Chunghwa Telecom — Q4 2023 Earnings Presentation

20 slides from Chunghwa Telecom's earnings presentation, Jan 30, 2024

  1. Slide 1: 4Q 2023 Operating Results

    4Q 2023 Operating Results January 30, 2024 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: Chairman's Message

    Chairman’s Message Strong 2023 results beat all financial guidance metrics ✓ Revenue and profit related performance all exceeded the high-end of full-year guidance ✓ Revenue and EPS hit six-year high with four consecutive years of YoY growth Commands the largest telco position in Taiwan: Market Cap

  4. Slide 4: Business Overview

    Business Overview © Chunghwa Telecom 4

  5. Slide 5: Business Overview: Mobile Service

    Business Overview Mobile Service Mobile Revenue & Subs 090 Postpaid ARPU  4.3% YoY Market Share 11 Consecutive Quarters of Growth Monthly fee uplift Mobile service revenue(a) from 4G YoY ▲ 5.8％ ▲ 49% CHT’s Mobile revenue market share: 40.2% (Billion) 20 533 536 545 553 556 600 CHT 500 39.8% 15 400

  6. Slide 6: Business Overview: Fixed Broadband Service

    Business Overview Fixed Broadband Service ARPU YoY Growth for Higher-Speed Adoption Growth 17 Consecutive Quarters (a) Fixed Broadband Revenue YoY ▲ 2.6％ 300M+ Subs YoY ▲ 32.4% Fixed Broadband ARPU YoY ▲ 1.1％ (Million) (Thousand) 771 766 774 775 780 12,000 4,386 4,381 4,382 4,389 4,403 700 10,000 22

  7. Slide 7: Segment Reporting

    Segment Reporting © Chunghwa Telecom 7

  8. Slide 8: Consumer Business Group (CBG) 4Q23 Financial Summary

    Consumer Business Group (CBG) 4Q23 Financial Summary  Income before tax decreased NT$0.01 billion, or 0.2 % YoY Excluding 3G Telecommunication Equipment Impairment,  3.6% YoY Mobile service revenue of CBG Revenue +5.3% YoY due to 5G migration, continued growth of postpaid +4.4% YoY subs, and roami

  9. Slide 9: Consumer Business Group (CBG) 4Q23 Highlights

    Consumer Business Group (CBG) 4Q23 Highlights Multiple-Play Package IPTV/MOD + OTT Consumer Cyber Security Performance Business Performance Subscriptions Fixed-Broadband + Mobile Largest video platform in Consumer Cyber Security + Wi-Fi Service package Taiwan with subscribers Subscriptions + 18.7 %

  10. Slide 10: Enterprise Business Group (EBG) 4Q23 Financial Summary

    Enterprise Business Group (EBG) 4Q23 Financial Summary  Income before tax decreased NT$0.2 billion, or 6.2% YoY Excluding 3G Telecommunication Equipment Impairment, 4.8% YoY  EBG revenue +2.5% YoY mainly Revenue driven by growth of mobile business, ICT business, and +2.5% YoY sales revenue (Billio

  11. Slide 11: Enterprise Business Group (EBG) 4Q23 Highlights

    Enterprise Business Group (EBG) 4Q23 Highlights Emerging Enterprise Application Established Taiwan‘s most extensive 2.7% YoY  Revenue 5G network slicing verification field in Kaohsiung to support innovative application development, such as smart healthcare and smart transportation Cyber Security AI

  12. Slide 12: International Business Group (IBG) 4Q23 Financial Summary

    International Business Group (IBG) 4Q23 Financial Summary Income before tax increased NT$0.15 billion, or  38.7% YoY Revenue IBG revenue +33.4% YoY mainly driven by ICT and fixed-line service revenue (a) +33.4% YoY ICT business revenue grew YoY mainly (Billion) 2.55 due to growing demands for IDC a

  13. Slide 13: Financial Overview

    Financial Overview © Chunghwa Telecom 13

  14. Slide 14: Income Statement Highlights

    Income Statement Highlights (NT$bn) Q4 2022 Q4 2023 Growth % 2022 2023 Growth % Revenue 59.50 61.86 4.0 216.74 223.20 3.0 Operating Costs and Expenses 48.64 50.77 4.4 170.01 176.21 3.6 Other Income and Expenses2 0.10 - 0.64 -743.1 0.09 -0.64 -783.1 Income from Operations 10.96 10.45 -4.6 46.82 46.35

  15. Slide 15: Balance Sheet Highlights

    Balance Sheet Highlights (NT$bn) 2022.12.31 2023.12.31 Growth % Total Assets 523.20 524.15 0.2 Current Assets 101.90 103.21 1.3 Property, plant and equipment 291.53 292.34 0.3 Intangible Assets 79.19 72.73 -8.2 Long-term Investments 11.67 14.06 20.5 Other Assets 29.12 32.02 10.0 Total Liabilities 12

  16. Slide 16: Cash Flow Summary

    Cash Flow Summary (NT$bn) 2022 2023 Growth % Cash Flows from Operating Activities 75.95 74.56 -1.8% Capital Expenditures2 31.53 30.74 -2.5% Mobile2 13.81 11.15 -19.3% Non-Mobile2 17.72 19.59 10.6% Free Cash Flow3 44.42 43.82 -1.4% Note: 1. Financials are prepared in accordance with T-IFRSs. Figures

  17. Slide 17: Operating Results vs. Forecasts

    Operating Results vs. Forecasts Q4 2023 Q4 2023 Achieving 2023 2023 Achieving (NT$bn) (A) （E） % (A) (E) % Revenue 61.86 62.00~62.43 99.1～99.8 223.20 221.27~222.79 100.2～100.9 Operating Costs 50.78 50.80~50.98 99.6～100.0 176.21 176.58~177.29 99.4～99.8 and Expenses Income from 10.45 11.20~11.68 89.5～9

  18. Slide 18: Financial Forecasts for 2024

    Financial Forecasts for 2024 Consolidated (NT$bn) 2024 (E) 2023 (A) Growth % Revenue 228.54~230.19 223.20 2.4~3.1 Operating Costs and Expenses 183.30~184.27 176.21 4.0~4.6 Income from Operations 45.23~46.50 46.35 -2.4~0.3 Net Income2 35.66~37.20 36.92 -3.4~0.8 EPS 4.60~4.80 4.76 -3.4~0.8 EBITDA 85.6

  19. Slide 19: Awards and ESG Recognitions

    Awards and ESG Recognitions Global recognitions: ✓ Included in DJSI World Index as No.1 among global telcos ✓ Included in DJSI Emerging Markets Index for twelve consecutive years ✓ Received “AA” ESG Rating from MSCI ✓ Reaffirmed by S&P Global with “AA” Ratings: the only telco among global peers to a

  20. Slide 20: Q&A

    Q&A © Chunghwa Telecom 20

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