Taiwan Mobile Co., Ltd. · TWSE:3045
Taiwan Mobile — Q3 2011 Earnings Presentation
16 slides from Taiwan Mobile's earnings presentation, Oct 27, 2011
Slide 1: Taiwan Mobile Co., Ltd. 3Q11 Results Summary
Taiwan Mobile Co., Ltd. 3Q11 Results Summary October 27, 2011 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
BARK Business Overview
Slide 4: Robust Wireless Data Growth
Robust Wireless Data Growth Mobile Service Revenue YoY Change in 3Q11 Data Business – 3Q11 Data NT$: bn CHT FET TWM Data revenue 3.92 3.29 3.34 $1,131mn % of service 21.6% 22.8% 23.2% revenue Data revenue YoY 40% 44% 51% F2M pricing change growth $599mn mandatory tariff cut Voice 4
Slide 5: Our Smartphone Strategy
Our Smartphone Strategy YTD Contribution comparison 3Q11 new products introduced 1,657 764 ASUS Slider HTC EVO 3D Post-paid Smartphone Price of NT$15,000 ARPU pay-back period Smartphone as % of total handsets sold SAM Galaxy SE Ray Nokia 701 S Plus 50% 35% Price of NT$9,000 3Q10 3Q11 TWM myPad P2 SE
Slide 6: CATV Growth Catalysts
CATV Growth Catalysts Sub no. Basic TV 3Q11 YoY ARPU Cable internet Digital TV Subscription growth Subscription 575K subs 152K subs 40K subs Analogue TV 2% 505 Cable internet Cable internet 14% 527 New adds speed mix 20% 47% DTV 86% 167 80% 53% Blended 748, +3% YoY ARPU 3Q10 3Q11 >=10Mbps <10Mbps 6
Slide 7: New Product & Service
New Product & Service For a limited time only, launched “On-net Free Program” for newly subscribed, contract renewal and number portability customers. By bundling unlimited data service with a voice rate plan of $401 or $699, users are entitled to upgrade to try out TWM’s premium 21Mbps internet acc
Slide 8: Financial Overview
BARK Financial Overview
Slide 9: Result Summary
Result Summary Unit: NT$m YTD % of 3Q11 3Q10 YoY Actual Full Year Operating revenue 21,729 17,711 23% 57,926 78% Operating cost (12,570) (9,818) 28% (33,839) 78% Marketing expense (3,050) (2,282) 34% (7,623) 80% G&A expense (965) (1,105) -13% (3,104) 66% Operating income 5,144 4,506 14% 13,360 82% N
Slide 10: Divisional Performance
Divisional Performance Revenue EBITDA NT$bn Momo Momo CBG HBG EBG & Total CBG HBG EBG & Total Others Others 3Q11 14.49 1.50 2.51 3.24 21.73 5.76 0.77 0.83 0.22 7.58 % of 67% 7% 11% 15% 100% 76% 10% 11% 3% 100% Total QoQ 3% 2% 5% NM 21% 11% 1% 33% NM 15% YoY 4% 5% 2% NM 23% 5% 10% 36% NM 11% 10
Slide 11: Balance Sheet Analysis
Balance Sheet Analysis NT$bn 3Q11 2Q11 3Q11 2Q11 Total Assets 93.22 87.16 Liabilities 46.56 41.93 Current Assets 18.85 19.21 Current Liabilities 37.20 32.80 - Cash & Cash Equivalents 7.72 9.87 - ST Debts 14.30 1.03 - Available-for-Sale Financial Assets 0.22 0.21 - Other Current Liabilities 22.90 31.
Slide 12: Cash Flow Analysis
Cash Flow Analysis NT$bn 3Q11 2Q11 3Q10 Operating Cash Flow 5.59 5.83 5.78 Investing Cash Flow (10.91) (1.55) (1.81) Financing Cash Flow 0.84 (0.33) (7.09) NT$bn 3Q11 2Q11 3Q10 Cash CAPEX (2.22) (1.45) (1.97) Free Cash Flow 3.37 4.38 3.81 12
Slide 13: Event Update & Key Message
SABA Event Update & Key Message
Slide 14: Event Update
Event Update Regulatory Update NCC approved a proposal to expand the CATV service areas based on city/county and to open licenses to new entrants. The implementation announcement is expected to be made in the first quarter of next year at the earliest as the details are still under deliberation. Awa
Slide 15: Key Message
Key Message Strong smartphone sales have laid a solid foundation for revenue growth. Increasing subsidies are expected to be offset by a rise in revenues, hence making a positive contribution to EBITDA. However, the timing of the iPhone 4S launch can still have a final defining impact on 4Q results.
Slide 16: Q&A
Q&A 16