Chunghwa Telecom Co., Ltd · TWSE:2412
Chunghwa Telecom — Q4 2016 Earnings Presentation
17 slides from Chunghwa Telecom's earnings presentation, Jan 25, 2017
Slide 1: 4Q 2016 Operating Results
4Q 2016 Operating Results January 25, 2017 TSE: 2412 NYSE: CHT
Slide 2: Disclaimer
Disclaimer STATEMENT REGARDING UNAUDITED FINANCIAL INFORMATION The unaudited financial information under T-IFRSs in this presentation is preliminary and subject to adjustments and modifications. Adjustments and modifications to the financial statements may be identified during the course of the audi
Slide 3: Business Overview
Business Overview
Slide 4: Chunghwa Telecom Overview
Chunghwa Telecom Overview Strong Market Position (a) Operational Strategies Domestic Fixed Streamline services and strengthen – #1 Local profitability • 93.5% share by subs (10.96mn subs) • 85.1% share by minutes Capitalize and remain at the forefront of digital – #1 DLD convergence trends • 83.0% s
Slide 5: Number One Mobile Services Provider
Number One Mobile Services Provider Mobile Internet Adoption Strategy Mobile Internet Subs as % of Postpaid Subs Offering new 4G plans for mid-to-low and mid-to-higher tier customers, 7000 72.3% 74.8% 80% 6000 67.0% 69.4% 75% raising threshold for unlimited data 63.2% 70% 5000 6276 6433 6661 6854 65
Slide 6: Fixed Broadband and Internet Services
Fixed Broadband and Internet Services Performance Strategy Leveraging network capability to offer high- Broadband Access Revenue NT$ mn 721 720 712 716 718 ARPU NT$ speed upload service 5,000 4,289 4,277 4,210 4,278 4,289 Leveraging Big Data capability for precision 600 marketing and precision netwo
Slide 7: MOD/ IPTV Service
MOD/ IPTV Service Performance Strategy Subscriber market share (CATV+IPTV) Continuing to enrich content, including movies, YoY remained at around 20.4% in Q3 drama, TV series for SVOD 2016 Enhancing both MOD and OTT user interfaces Household TV Usage rate increased to Leveraging the existing broadba
Slide 8: Enterprise ICT Initiatives
Enterprise ICT Initiatives Performance Strategy Leveraging our advantage on network Information security and cloud service infrastructure, IDC, CDN, etc. to expand revenue increased 42% YoY in 2016 ICT business Personal Cloud (Hami+) subscribers Launching highest-rated cloud IDC to was 3.2 million t
Slide 9: Financials Overview
Financials Overview
Slide 10: Financials: Income Statement Highlights
Financials: Income Statement Highlights Consolidated Growth Growth (NT$bn) Q4 2016 Q4 2015 % 2016 2015 % Revenues 58.35 62.22 (6.2) 230.01 231.79 (0.8) Operating Costs and 47.98 50.86 (5.7) 181.46 181.33 0.1 Expenses Income from 9.90 11.34 (12.7) 48.05 50.36 (4.6) Operations Net Income2 7.72 9.45 (1
Slide 11: Financials: Business Segment Revenues
Financials: Business Segment Revenues Growth Growth (NT$bn) Q4 2016 Q4 2015 2016 2015 % % Domestic Fixed 17.76 19.33 (8.1) 72.78 72.54 0.3 Local 7.74 8.23 (5.9) 31.65 33.57 (5.7) DLD 0.70 0.76 (6.9) 2.88 3.12 (7.6) Broadband Access 4.75 4.87 (2.6) 19.03 19.34 (1.6) MOD 0.61 0.57 6.3 2.36 2.49 (5.5)
Slide 12: Financials: Costs & Expenses
Financials: Costs & Expenses Consolidated Growth Growth (NT$bn) Q4 2016 Q4 2015 % 2016 2015 % Operating Costs 38.69 41.82 (7.5) 147.56 148.13 (0.4) Operating Expenses 9.29 9.04 2.8 33.90 33.20 2.1 Marketing 7.12 6.88 3.6 25.58 25.07 2.0 General and Administrative 1.17 1.16 0.8 4.53 4.51 0.4 R&D Expe
Slide 13: Cash Flow & EBITDA Margin
Cash Flow & EBITDA Margin Consolidated Growth Growth (NT$bn) Q4 2016 Q4 2015 % 2016 2015 % Net Cash Flow from 33.55 28.99 15.7 66.83 76.33 (12.4) Operating Activities CapEx 11.17 9.61 16.2 23.48 25.08 (6.4) Free Cash Flow 22.38 19.38 15.5 43.35 51.25 (15.4) Cash and Cash Equivalents at the end of pe
Slide 14: Operating Results vs. Forecast
Operating Results vs. Forecast Consolidated Q4 2016 Q4 2016 Achieving 2016 2016 Achieving (NT$bn) (A) （E） % (A) (E) % Revenues 58.35 62.74 93.0 230.01 233.49 98.5 Operating Costs and 47.98 51.50 93.2 181.46 185.53 97.8 Expenses Income from 9.90 11.06 89.5 48.05 47.75 100.6 Operations Net Income2 7.7
Slide 15: 2017 Forecast
2017 Forecast Consolidated Growth (NT$bn) 2017（E） 2016 % Revenues 231.16 230.01 0.5 Operating Costs and Expenses 186.46 181.46 2.8 Income from Operations 44.66 48.06 (7.1) Net Income2 36.89 40.03 (7.8) EPS 4.75 5.16 (7.8) EBITDA 77.91 80.53 (3.3) EBITDA Margin (%) 33.70 35.01 - Note : 1. Financials
Slide 16: Effective and Efficient Capital Expenditure
Effective and Efficient Capital Expenditure Capital Expenditure NT$ bn Budgeted capex for 2017: NT$30.3 bn 50 45 16.0% 20% Continue to focus on core businesses 14.4% 10.8% 10.2% 13.1% for future investments 40 36.4 10% – 4G 0.6 35 1.6 32.6 30.3 – FTTx Capex as % of Revenue 4.6 0.9 1.5 0% – Service P
Slide 17: Q&A
Q&A