Slide 1: 3Q19 Results Summary
Taiwan Mobile Co., Ltd. 3Q19 Results Summary November 8, 2019 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
a) S455 XS X | Business Overview
Slide 4: Stabilization in Telecom Market
Stabilization in Telecom Market Telecom Revenue YoY 3Q18 4Q18 1Q19 2Q19 3Q19 2.0% TWM -5.4% -4.9% -1.2% Telecom Market -7.0% -9.5% -6.1% -10.3% -11.7% -13.5% 3Q19 Spectrum Yield 3Q19 Telecom EBIT YoY (Mobile Service Revenue/Spectrum Amortization) IFRS Pre-IFRS CHT TWM FET -2% 19.3x -4% 16.8x 17.6x 1
Slide 5: Versatility
Versatility 3Q19 results +33% YoY # of iPhone bundle plan +118% YoY +44% YoY # of non-handset bundle plan IoT connectivities over NT$999 Collaboration with +146% YoY pay-TV and momo ICT, Cloud & IoT service revenue 5
Slide 6: Resilience in Pay-TV Business
Resilience in Pay-TV Business 3Q19 Basic TV Subscribers 3Q19 Penetration Rate DTV Broadband (‘000) Subscribers YoY(%) TFNM 556 -2.5% 49.9% 45.9% 42.6% 42.7% Kbro 1,139 -3.1% 26.9% 28.0% 31.6% CNS 1,126 -3.8% 12.3% TBC 734 -3.1% DTV BB Top 4 MSO 3,555 -3.2% TFNM Kbro CNS TBC Pre-IFRS 16 D&A EBIT (NT$
Slide 7: momo's Dominance in B2C Market
momo’s Dominance in B2C Market E-commerce platform net income comparison (NT$mn) 708 1601 1H18 1H19 569 276 224 218 192 33 30 25 73 1H18 1H19 (113) (54) (210) (521) momo EHS Books.com. KuoBrothers friday Ruten PChome PCstore (795) Co., Ltd. Note1: one-time investment tax credit Note2: 3Q19 financial
Slide 8: Financial Overview
a) ABsSXKSX | Financial Overview
Slide 9: Performance by Business
Performance by Business Revenue Pre-IFRS16 EBITDA NT$bn Telecom CATV momo Total1 Telecom CATV momo Total1 3Q19 17.18 1.52 12.37 30.83 6.03 0.76 0.42 7.31 % of 56% 5% 40% 100% 82% 10% 6% 100% total 3Q19 2% -4% 26% 9% -4% -5% 26% -4% YoY 2Q19 -5% -3% 23% 4% -12% -3% 8% -11% YoY 3Q19 YoY (Reported) 9%
Slide 10: Results Summary
Results Summary 3Q19 1~3Q19 NT$bn % of full % of 3Q Amount YoY Amount YoY year guidance guidance Revenues 30.83 9% 100% 90.31 4% 73% Operating Costs (22.69) 12% 102% (65.86) 8% 73% Operating Expenses (3.86) -2% 93% (11.62) -4% 69% Operating Income 4.28 2% 99% 12.83 -8% 75% Non-op. Income (0.02) -70%
Slide 11: Balance Sheet Analysis
Balance Sheet Analysis NT$bn 3Q19 2Q19 3Q18 NT$bn 3Q19 2Q19 3Q18 Total Assets 158.83 153.60 147.45 Liabilities 89.43 89.18 82.97 Current Assets 34.23 27.10 26.97 Current Liabilities 52.66 49.76 40.48 - Cash & Cash Equivalents 13.02 6.77 5.94 - ST Debts 21.67 8.70 17.59 - Receivable & Contract Assets
Slide 12: Cash Flow Analysis
Cash Flow Analysis NT$bn 1~3Q19 YoY 3Q19 2Q19 3Q18 Operating 27.34 22% 11.83 7.07 7.00 Investing (5.49) 56% (2.03) (1.37) (1.08) Financing (16.32) -17% (3.54) (6.76) (7.60) NT$bn 1~3Q19 YoY 3Q19 2Q19 3Q18 Pre-IFRS 16 Operating1 24.42 9% 10.83 6.12 7.00 Cash CAPEX2 (5.52) -17% (2.12) (1.38) (2.18) Fr
Slide 13: Event Updates
(| @38XX | Event updates 13
Slide 14: 5G Spectrum Auction
5G Spectrum Auction Timeline: Auction starts on Dec 10th 2019 and concludes early Jan 2020 First stage – Quantity bidding Supplementary bidding round for leftover spectrum1 Second stage2 – Location bidding if needed Frequency Available Bidding Cap per Reserve Rollout Obligation License Band Bandwidt
Slide 15: CAPEX Update; Awards and Recognition
CAPEX Update momo’s BOD approved an additional capex of NT$0.63bn to purchase a parcel of land for its South Distribution Center. TWM’s FY19 consolidated capex guidance has been increased to NT$7.1bn accordingly. Awards and Recognition Selected for the 2019 “Dow Jones Sustainability World Indices” (
Slide 16: Key Message
Key Message Margin disciplines have contributed to our operating income growth in third quarter 2019. Free cash flow stability provides good visibility to shareholder returns. Looking ahead, efforts to extend our business value chains would be a long-term growth driver for Taiwan Mobile, besides sat
Slide 17: Q&A
Q&A 17