Slide 1: Taiwan Mobile Co., Ltd. 2Q15 Results Summary
Taiwan Mobile Co., Ltd. 2Q15 Results Summary July 30, 2015 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
Business Overview 3
Slide 4: Continuous 4G Business Expansion
Continuous 4G Business Expansion 4G Postpaid Penetration Rate Mobile Service Revenue1 Mobile Postpaid ARPU1 +2% YoY Unit: NT$m Unit: NT$ +3% YoY +0.2% YoY +0.3% YoY 1. Based on IFRS – Residual Value Method, i.e. excluding revenue adjustments under the current bundle sales accounting policy 4
Slide 5: Steady Growth in the CATV Business
Steady Growth in the CATV Business Sub base 2Q15 ARPU YoY growth Analogue TV 1% $493 Cable Internet 6% $545 DTV 22% $133 Blended ARPU * $812 +2% YoY * Calculation based on total cable TV revenue excluding content agency revenue
Slide 6: Retail Business
Retail Business momo 2Q15 2Q14 YoY (Unit: NT$bn) Total Revenue 6.20 5.62 10% - Online Shopping 4.10 3.52 16% - TV Home Shopping & Others 2.10 2.10 0% EBITDA 0.30 0.40 -24% EBITDA margin 4.9% 7.1% -2.2ppts 6
Slide 7: Financial Overview
Financial Overview 7
Slide 8: Results Summary
Results Summary 2Q15 NT$mn 1H15 % of 2Q Amount QoQ YoY Forecast Revenue 28,327 -5% 5% 93% 58,044 Cost (19,056) -9% 10% 91% (40,036) Operating expense (4,323) -2% 3% 90% (8,719) Operating income 4,948 14% -8% 102% 9,289 Net non-oper. (117) -40% -41% 17% (312) items Income before tax 4,831 17% -7% 116
Slide 9: Performance by Business
Performance by Business Revenue EBITDA NT$bn Telecom CATV momo Total Telecom CATV momo Total 2Q15 20.48 1.63 6.20 28.33 7.05 0.89 0.30 8.31 % of 72% 6% 22% 100% 85% 11% 4% 100% total 2Q15 4% 3% 10% 5% 3% 4% -24% 2% YoY 1Q15 6% 3% 11% 7% -4% 3% 4% -2% YoY Note: The combined total of telecom, CATV and
Slide 10: Balance Sheet Analysis
Balance Sheet Analysis NT$bn 2Q15 1Q15 2Q14 2Q15 1Q15 2Q14 Total Assets 156.51 157.23 143.08 Liabilities 98.53 87.10 89.72 Current Assets 32.15 33.29 26.81 Current Liabilities 69.51 56.12 55.39 - Cash & Cash Equivalents 8.79 8.22 6.00 - ST Debts 31.25 30.99 15.88 - Accounts Receivable 15.28 15.03 14
Slide 11: Cash Flow Analysis
Cash Flow Analysis NT$bn 2Q15 1Q15 2Q14 Operating Cash Flow 5.44 5.38 6.68 Investing Cash Flow (2.30) (6.68) (4.79) Financing Cash Flow (2.56) 1.62 (4.07) NT$bn 2Q15 1Q15 2Q14 Cash CAPEX 3.57 3.29 4.78 Free Cash Flow 1.87 2.09 1.90 11
Slide 12: Event Updates
Event Updates 12
Slide 13: Event Updates: 2.6GHz Spectrum Auction
Event Updates 2.6GHz Spectrum Auction NCC scheduled a 2.5 / 2.6GHz spectrum auction in mid-to-late October 2015 to release a total bandwidth of 190MHz split into four paired and two unpaired spectrum blocks with an aggregate reserve price of NT$14.4bn. TWM’s board today (July 30, 2015) resolved to p
Slide 14: Event Updates: THSR Buyback and New Mobile Rate Plans
Event Updates THSR to Buy Back Its Preferred Shares Taiwan High Speed Rail (THSR) announced on July 6, 2015 to buy back and cancel its issued preferred shares. Accordingly, TCC Investment, TWM’s 100%-owned subsidiary, expects to receive NT$500mn from its investment in THSR at cost. New Mobile Rate P
Slide 15: Event Updates: Awards and Recognition
Event Updates Awards and Recognition − Ranked within top 5 percent of listed companies in the first Corporate Governance Evaluation conducted jointly by the Taiwan Stock Exchange and Taipei Exchange (GreTai Securities Market) − Received the “Corporate Social Responsibility Award” in the category of
Slide 16: Key Message
Key Message Deeper 4G penetration has enabled us to record a historical high postpaid ARPU and consolidated EBITDA. Should tiered-pricing be implemented, it will pave the way for a brighter industry outlook. We expect the growth momentum to continue and endeavor to deliver stronger shareholder value
Slide 17: Q&A
Q&A 17