Slide 1: 2017 Results Summary
Taiwan Mobile Co., Ltd. 2017 Results Summary February 1, 2018 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
Taiwan Mobile @eexex Business Overview
Slide 4: Telecom Business – Out from the Pack
Telecom Business – Out from the Pack 2017 Mobile Service Revenue1&2 YoY Change 2017 Spectrum Yield3 NT$mn/MHz 626 CHT FET TWM 474 391 -3.8% -3.6% -4.4% CHT FET TWM 2017 Telecom EBIT2 YoY Change 2017 EPS NT$ 3.7% 5.01 5.21 3.33 CHT FET TWM -2.9% -5.4% CHT FET TWM 1. Based on Residual Value Method, i.
Slide 5: CATV Growth Catalysts
CATV Growth Catalysts 2017 Subscriber Number High Speed as % of Basic TV Cable Broadband Subscription 581K +0.4K YoY Digital TV Cable Broadband 224K 215K +25K YoY +12K YoY D&A Trend OTT Subscribers 900 through Cable Channel (K) 600 300 - 2017 2018F 5
Slide 6: momo E-commerce - Stellar Growth
momo E-commerce - Stellar Growth E-commerce Revenue E-commerce EBITDA (NT$bn) (NT$bn) E-commerce as % of Total Revenue Mobile Commerce1 as % E-commerce Revenue 1. Mobile commerce means online retail sales made through mobile devices. 6
Slide 7: Financial Overview
Taiwan Mobile @eexex Financial Overview
Slide 8: Performance by Business
Performance by Business Revenue EBITDA NT$bn Telecom CATV momo Total1 Telecom CATV momo Total1 4Q17 20.23 1.56 9.94 31.76 6.45 0.74 0.47 7.78 % of 64% 5% 31% 100% 83% 10% 6% 100% total 4Q17 -5% -4% 30% 4% -6% -12% 39% -5% YoY 2017 77.37 6.39 33.24 117.17 27.52 3.28 1.52 32.78 2017 -5% -2% 18% 0% -4%
Slide 9: Results Summary
Results Summary 4Q17 2017 NT$bn % of % of 4Q Amount YoY Amount YoY full year guidance guidance Revenues 31.76 4% 102% 117.17 0% 99% Costs (23.09) 9% 105% (81.45) 3% 99% Operating Expenses (4.37) -5% 95% (16.63) -7% 92% Operating Income 4.30 -8% 97% 19.09 -5% 103% Non-op. Income (Exp.) (1.12) 226% 45
Slide 10: Balance Sheet Analysis
Balance Sheet Analysis NT$bn 4Q17 3Q17 4Q16 NT$bn 4Q17 3Q17 4Q16 Total Assets 154.52 146.41 151.38 Liabilities 89.01 83.36 85.19 Current Assets 32.35 30.50 34.28 Current Liabilities 56.48 44.54 38.14 - Cash & Cash Equivalents 6.63 5.97 7.70 - ST Debts 30.86 21.86 13.62 - Accounts Receivable 14.68 14
Slide 11: Cash Flow Analysis
Cash Flow Analysis NT$bn 4Q17 3Q17 2017 2016 Operating Cash Flow 7.99 6.98 30.32 31.83 Investing Cash Flow (9.70) (3.43) (17.67) (11.53) Financing Cash Flow 2.37 (3.75) (13.72) (21.17) NT$bn 4Q17 3Q17 2017 2016 Cash CAPEX1 (2.24) (2.46) (9.80) (10.49) Free Cash Flow1 5.74 4.51 20.52 21.34 1: Excludi
Slide 12: 2018 Guidance and Event Updates
2018 Guidance and Event Updates 12
Slide 13: 2018 Guidance
2018 Guidance NT$bn 2018F 2017A YoY Revenues 123.14 117.17 5% EBITDA 32.09 32.78 -2% D&A (14.07) (13.69) 3% Operating Income 18.01 19.09 -6% Non-op. Income (Exp.) (0.58) (1.46) -61% Pre-tax Income 17.44 17.63 -1% Net Income 13.60 14.19 -4% EPS1 (NT$) 5.00 5.21 -4% 1. EPS is based on share counts of
Slide 14: Event Updates
Event Updates Board Resolutions Capex Guidance The board today (February 1st) approved a NT$7.4bn capex for 2018, including NT$4.9bn for mobile, NT$1.4bn for fixed-line, NT$0.8bn for cable TV and NT$0.3bn for momo and other subsidiaries. Straight Bond Issuance To keep a healthy capital structure
Slide 15: Awards and Recognition
Awards and Recognition Taiwan Mobile was the big winner of the 2017 Taiwan Corporate Sustainability Awards, winning nine awards including the highest individual honor, “The Outstanding Corporate Sustainability Professional”, received by Chairman Daniel M. Tsai. Awarded the "Best Consumer Service Inn
Slide 16: Key Message
Key Message Taiwan Mobile is confident in maintaining stable free cash flows despite less-than-satisfactory industry dynamics. Plus, we are better positioned with stronger footholds in e-commerce and OTT services, not to mention advantages in 4G spectrum and infrastructure investments. Sustaining th
Slide 17: Q&A
@ Q&A 17