Taiwan Mobile Co., Ltd. · TWSE:3045
Taiwan Mobile — Q4 2009 Earnings Presentation
14 slides from Taiwan Mobile's earnings presentation, Jan 28, 2010
Slide 1: Taiwan Mobile Co., Ltd. 4Q09 Results Summary
Taiwan Mobile Co., Ltd. 4Q09 Results Summary Harvey Chang - CEO January 28, 2010
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: Outline
Outline 4Q results summary – 4Q P&L – 4Q divisional performance – 4Q mobile operational analysis – Balance sheet and cash flow analysis 1Q10 forecast Event update Key message 3
Slide 4: Result Summary
Result Summary Unit: NT$m 4Q 4Q Execution 2009 Execution Actual Forecast % Actual % Operating revenue 16,880 17,519 96% 68,470 99% Cost (8,062) (8,272) 97% (33,195) 102% Marketing expense (2,478) (2,823) 88% (10,057) 90% G&A expense (1,162) (1,335) 87% (4,770) 90% Operating income 5,177 5,088 102% 2
Slide 5: 4Q Divisional Performance
4Q Divisional Performance YoY YoY YoY Conso- YoY NT$bn CBG HBG1 EBG Chg. Chg. Chg. lidated Chg. Revenue 13.27 -2% 1.37 23% 2.26 -6% 16.88 0% EBITDA 6.18 2% 0.65 22% 0.58 34% 7.43 6% EBITDA 46.6% 1.7pps 47.4% -0.5pps 25.4% 7.6pps 44.0% 2.5pps % Note: 1. HBG numbers included content business from 2009
Slide 6: Wireless Peer Comparison
Wireless Peer Comparison Subs CHT FET TWM Total (K) 4Q09 9,261* 6,240 6,409 21,911 4Q08 8,947 6,245 6,270 21,463 4Q YoY 3.5% -0.1% 2.2% 2.1% *: CHT’s 4Q09 number is an estimate, assuming Dec. net adds equal to Nov. Mobile EBITDA Margin Unit: NT$m 43.5% 43.7% TWM 42.6% 42.6% 44% 9,000 42.0% FET 41.6%
Slide 7: VAS and 3G
VAS and 3G CHT FET TWM NT$m % of % of % of VAS1 VAS VAS service rev. service rev. service rev. 4Q09 2,260 12.7% 1,942 14.4% 1,842 13.4% 4Q08 1,809 10.2% 1,865 13.2% 1,489 10.7% 4Q YoY 25% 4% 24% 3Q YoY 19% 9% 28% 1. CHT Dec. VAS revenue is an estimate. 3G post-paid Main VAS drivers 4Q09 3G Service 4
Slide 8: Cash Flow Analysis
Cash Flow Analysis NT$bn 2009 4Q09 3Q09 4Q08 Operating Cash Flow 23.95 8.06 4.92 7.95 Investing Cash Flow (6.75) (1.86) (1.13) (2.21) Financing Cash Flow (18.07) (6.00) (7.49) (5.62) Cash CAPEX (6.67) (1.83) (1.25) (1.91) Free Cash Flow 17.28 6.23 3.67 6.05 8
Slide 9: Balance Sheet Analysis
Balance Sheet Analysis NT$bn 4Q09 3Q09 4Q09 3Q09 Total Assets 85.90 87.07 Liabilities 33.82 38.46 Current Assets 11.60 11.91 Current Liabilities 24.76 27.16 - Cash & Cash Equivalents 3.00 2.81 - ST Debts 7.60 11.30 - Available-for-Sale Financial Assets 0.18 0.17 - Other Current Liabilities 17.16 15.
Slide 10: 1Q10 Forecast
1Q10 Forecast NT$bn 1Q10 QoQ YoY Revenue 17.03 1% 1% EBITDA 7.00 -6% -1% EBITDA Margin 41.1% -2.9pps -0.6pps Operating Income 4.74 -8% -3% Assets Write-off (0.28) -3% -41% Pre-Tax Income 4.49 -7% 3% Tax Expense (0.90) -31% -18% Net Income 3.59 2% 10% EPS (NT$)1 1.20 3% 9% Note: 1. EPS is based on 2.
Slide 11: Event update
Event update Kbro Acquisition – Taiwan Fair Trade Commission (FTC), on December 2, 2009, issued conditional approval for TWM’s acquisition of Kbro. Carlyle is still awaiting MOEA’s Investment Commission (IC) approval. Regulations – Local governments approved the same monthly fee cap for CATV analog
Slide 12: Event update – Cont'd
Event update – Cont’d Awards – Received “Environmental Protection Award” from the Environmental Protection Administration, Executive Yuan; the first awardee from the service industry – Awarded “The Top Service Awards 2009” from Next Magazine for the second consecutive year New Products and Services
Slide 13: Key message
Key message We were able to meet the 2009 guidance through expense discipline. With a firmer outlook on the economic front for 2010, we still expect to face stiff challenges from regulatory interventions. Approval for the acquisition of Carlyle’s cable assets is still pending. Before receipt of the
Slide 14: Q&A
Q&A 14