Far Eastone Telecommunications Co., Ltd. · TWSE:4904
Far Eastone Telecommunications — Q4 2023 Earnings Presentation
20 slides from Far Eastone Telecommunications's earnings presentation, Feb 22, 2024
Slide 1: 2023 4Q Investor Update
4904 (TWSE) 2023 4Q Investor Update Chee Ching, President Sharon Lin, CFO & Gary Lai, IR Far EasTone Telecom
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements. These forward-looking statements are subject to risks, uncertainties and assumptions, some of which are beyond our control. Actual results may differ materially from those expressed or implied by these forward-looking statements. Beca
Slide 3: Agenda
FET 2023 4Q and Full Year Performance Overview AGENDA 2024 Priorities & Guidance 2023 Dividend Proposal 2
Slide 4: 2023 4Q: FET-APT Merger Completed
2023 4Q: FET-APT Merger Completed 21 months… 2022 Feb 2023 Jan 2023 July 2023 3Q 2023 Oct 2023 Dec 15 FET officially Received the Received the Started Filed with signed a approval from approval from network Taiwan Stock FET/APT Merger merger National Fair Trade consolidation Exchange to list officia
Slide 5: 2023 4Q and Full Year Financial Performance
2023 4Q and Full Year Financial Performance Solid YoY growth across all lines and profit growth leads industry! Item Unit: NT$bn, except for 4Q 2023 4Q 2022 YoY% FY2023 FY2022 YoY% EPS Total Revenue 26.47 24.37 +8.6% 93.69 89.15 +5.1% EBITDA 8.15 7.88 +3.3% 32.08 30.79 +4.2% Net Income 2.84 2.55 +11
Slide 6: 2023 4Q Financial Performance Highlight
2023 4Q Financial Performance Highlight Total Revenue EBITDA Net Income NT$bn 3.3% 8.6% NT$bn YoY NT$bn 11.4% YoY YoY record high 26.5 8.08 8.15 EPS $0.85 24.4 21.9 20.7 22.2 22.3 21.7 23.2 7.88 7.94 7.91 2.75 2.77 2.83 2.84 7.64 7.70 2.55 7.57 2.33 2.31 2.42 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2
Slide 7: 2023 4Q Financial Metrics
2023 4Q Financial Metrics Net Debt and Net Debt-to-EBITDA slightly increased post-merger Free Cash Flow continued to be strong 2023 Capex Spent: NT$8.15bn, 9% below the guidance of $9.0bn Item As of As of Unit: NT$bn, unless otherwise stated 4Q 2022 4Q 2023 Net Debt 52.31 55.88 Net Debt to EBITDA(x)
Slide 8: 2023 marked a seven-year high for FET
Y23 marked a seven-year high for FET Total Revenue (NT$bn) Net Income (NT$bn) 92.1 93.7 89.2 10.9 11.2 86.6 85.3 83.9 9.6 79.5 9.4 9.1 8.7 8.4 2023 2017 2018 2019 2020 2021 2022 2023 2017 2018 2019 2020 2021 2022 2023 2023 EBITDA (NT$bn) EPS (NT$) 32.1 3.33 3.42 30.8 29.2 2.88 2.80 2.95 28.2 27.6 28
Slide 9: Mobile Core – 5G continues to drive growth momentum
Mobile Core – 5G continues to drive growth momentum Mobile Service Revenue #Postpaid customers 5G Penetration > 37+% NT$bn (K) 40+% ▲2.9% ▲4.1% 6,834 before 55.0 ▲1.4% YoY Merger 50.1 YoY 48.4 YoY 49.8 51.9 5,274 5,350 5,407 5,449 5,459 47.7 32% 37% 22% 0% 0% 6% 2018 2019 2020 2021 2022 2023 2023 20
Slide 10: New Economy – Growth and Margin Improvement
New Economy – Growth and Margin Improvement New Economy Revenue & Margin New Economy Revenue Breakdown New Economy business grows steadily, New Economy Growth Highlight: contributing ~20% to total revenue. Smart ICT with FET Home-Grown New Economy margin rose 8.7% YoY, Solutions due to FET’s optim
Slide 11: 2023 Business Highlight
2023 Business Highlight Continued strong ICT demand drives enterprise revenue, seized major wins across 4 main areas: Sustainable Smart City Smart Healthcare ✓ Home-grown solutions including ✓ Expanding 5G Telemedicine for Rural smart EMS for a port company Chronic Care, including Outlying ✓ Taipei
Slide 12: 2023 Business Highlight - continued
2023 Business Highlight - continued FET friDay video ranked #3 by Nielsen Research in Taiwan’s OTTs view share, beat Disney+ and all other local OTTs, while earned OTT Platform Usage Champion title from Taiwan Creative Content Agency. friDay also pioneered 'OpenAI Recommended Playlist’ in its App. F
Slide 13: 2023 Major Honors and ESG Recognitions
2023 Major Honors and ESG Recognitions Dow Jones Sustainability Indices (DJSI) - World Index ranked 1st & Emerging Markets Index 2nd in the world Executive Yuan - National Sustainable Development Award ESG TCSA - Taiwan‘s Top 10 Sustainability Role Model & Sustainability Action Awards CommonWealth -
Slide 14: Agenda
FET 2023 4Q and Full Year Performance Overview AGENDA 2024 Priorities & Guidance 2023 Dividend Proposal 13
Slide 15: 2024 Priorities
2024 Priorities Accelerate network migration (merger and 3G sunset) to achieve network cost savings Accelerate APT user migration to maximize merger synergies (upsell, cross-sell, and monthly fees uplift) Keep up the Mobile Growth Momentum in 2024 with 5G penetration target set at 45% by EoY Expand
Slide 16: 2024 Consolidated Financial Forecast
2024 Consolidated Financial Forecast Item 2024 2023 Result YoY% Unit: NT$bn, except for EPS Guidance Total Revenue 104.92 93.69 +12.0% EBITDA 35.66 32.08 +11.2% Net Income 11.20 11.19 +0.1% EPS (NT$)(1) $3.11 $3.10(1) +0.1% Note: (1) EPS for 2023 and 2024E are based on the year-end common shares out
Slide 17: 2024 Capex Guidance
2024 Capex Guidance Maintain Capex Level Post-Merger Capex (NT$bn) 12.1 10.9 9.9 0.8(1) 8.1 0.8(1) 8.1 7.3 2020 2021 2022 2023 2024E Note: (1) 0.8bn to be carried over from 2023 16
Slide 18: Agenda
FET 2023 4Q and Full Year Performance Overview AGENDA 2024 Priorities & Guidance 2023 Dividend Proposal 17
Slide 19: Proposed 2023 Dividend Distribution
Proposed 2023 Dividend Distribution Maintain Stable Dividend Policy Dividend Per Share (NT$) 105% 5.00 4.50 Payout 4.00 (2) 3.25 3.25 (1) 3.50 3.25 2.95 3.25 3.10 3.25 EPS 3.00 2.68 2.56 2.80 2.50 2.00 DPS 1.50 1.00 0.50 0.00 2019 2020 2021 2022 2023 Note: (1) 2023 EPS of $3.10 is based on the year-
Slide 20: Q & A For Further Information
Q&A For Further Information, Websites email http://corporate.fetnet.net Investor Relations http://www.fetnet.net IR@fareastone.com.tw 19
Far EasTone Telecommunications — Q4 2023 Earnings Presentation on 6ix