Skip to main content

AI assistant

Sign in to chat with this filing

The assistant answers questions, extracts KPIs, and summarises risk factors directly from the filing text.

Taiwan Mobile Co., Ltd. Interim / Quarterly Report 2013

Jan 28, 2014

52277_rns_2014-01-28_7c3d3c14-3984-4139-8aaf-6c50502c7490.pdf

Interim / Quarterly Report

Open in viewer

Opens in your device viewer

Taiwan Mobile Co., Ltd.

4Q13 Results Summary January 28, 2014

1

The information contained in this presentation, including all forwardlooking 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 information contained in this presentation. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is the information intended to be a complete statement of the Company, markets or developments referred to in this presentation.

2

Business Overview

3

TWM’s

Peer Comparison

==> picture [695 x 333] intentionally omitted <==

----- Start of picture text -----

Mobile Service Revenue Unit: NT$ ARPU
TWM
FET
Unit: NT$mn
5% YoY
CHT
4Q13 YoY TWM FET CHT
Mobile Service Revenue 5% 3% 6%
Voice Revenue -5% -8% -8%
VAS Revenue 27% 24% 39%
----- End of picture text -----

  • Based on IFRS – Residual Value Method, i.e. excluding revenue adjustments under the current bundle sales accounting policy.

4

Smartphone as % of total handsets sold

Current Exclusive Models Current Exclusive Models Current Exclusive Models
TWM Amazing A1~A7,
A3S, A5C, A6S
10
Grand Duos, Mini, Ace II,
Core, Grand Duos 2
6
One SV, Desire 200,
Desire 500, Desire 300
4
Xperia P, Xperia sola,
Xperia ZR
3
Z10, Q5 2
Lumia 520, Lumia 720 2
L4 II 1
Ascend P6 1
Total 29

==> picture [355 x 181] intentionally omitted <==

Mobile data adoption rate

5

4Q13 Sub base
YoY growth

ARPU
Analogue TV 1% $493
Cable internet 6% $539
DTV 65% $138
Blended ARPU
$792
+2% YoY*
  • Calculation based on total cable TV revenue excluding content agency revenue

6

==> picture [13 x 14] intentionally omitted <==

2GB data pack

Introduced new post-paid data pack for 2GB usage at NT$299 with 90 days usage period, and the ability to reload back up to 2GB at any time.

==> picture [13 x 14] intentionally omitted <==

Cloud IDC

TWM’s green cloud IDC (Internet Data Center) received the ISO 50001 Certification as well as the Uptime Institute Tier III Certification in both the design and construction categories for its stable and efficient energy management.

==> picture [13 x 14] intentionally omitted <==

High speed cable broadband

Launched 120Mbps cable internet services for only NT$888 a month, which includes complete HD channel selections, “Home Play” multi-screen convergence service and “Super MOD” (Multi-media on Demand) service, all for free.

7

Financial Overview

8

NT$bn Revenue Revenue Revenue Revenue Revenue EBITDA EBITDA EBITDA EBITDA EBITDA
CBG EBG HBG momo Total CBG EBG HBG momo Total
2013 71.20 10.73 6.24 21.28 109.14 22.95 3.75 3.28 0.83 30.80
% of
total
65% 10% 6% 19% 100% 75% 12% 11% 3% 100%
YoY 8% 3% 2% 20% 9% 0% 9% 1% 2% 1%

Note: The combined total of CBG, EBG, HBG and momo does not equal the consolidated total of each account due to minor adjustments and eliminations.

9

NT$mn 2013 2013 2013
Amount YoY % of
Forecast
Revenue
Cost
Operating expenses
Operating income
Net non-oper. items
Income before tax
Net income
EPS (NT$)
109,143
9%
97%
(70,033)
14%
96%
(18,315)
6%
97%
20,795
0%
102%
(1,676)
99%
118%
19,119
-4%
101%
15,583
-5%
101%
5.79
-5%
101%
EBITDA
EBITDA margin
30,797
1%
101%
28.22%

10

NT$bn 4Q13
IFRS
3Q13
IFRS
4Q12
IFRS
4Q13
IFRS
3Q13
IFRS
4Q12
IFRS
Total Assets 138.35 109.35 100.39
Liabilities
79.83 54.49 42.75
Current Assets 29.49 28.86 23.77
Current Liabilities
58.61 35.41 29.93
- Cash & Cash Equivalents 7.95 7.79 6.19
- ST Debts
34.00 12.73 7.16
- Accounts Receivable 14.63 14.20 12.13
- Other Current Liabilities
24.60 22.69 22.77
- Inventories 3.78 3.15 2.57
Non-Current Liabilities
21.23 19.08 12.82
- Other Current Assets 3.12 3.72 2.88
- Long-Term Borrowings
16.79 14.79 9.00
Non-current Assets 108.86 80.49 76.62
- Deferred Income Tax Liability
2.60 2.49 2.12
- Long-term Investment 4.19 4.20 3.06
- Other Non-current Liabilities
1.83 1.80 1.70
- Property and Equipment 42.99 42.52 40.74
- Other Non-current Assets 61.69 33.77 32.82
Shareholders' Equity
58.52 54.86 57.64
4Q12
IFRS
- Paid-in Capital
- Capital Surplus
34.21 34.21 34.21
4Q13
IFRS
3Q13
IFRS
12.46 12.43 12.43
Current Ratio 50% 81% 79%
- Legal Reserve
19.26 19.26 18.06
Net Debt to Equity 73% 36% 17%
- Un-appropriated Earnings
6.61 6.61 7.91
Net Debt to EBITDA (x) 1.39 0.65 0.33
- Treasury Shares
(31.08) (31.08) (31.08)
ROE (annualized) 25% 32% 28%
- Retained Earnings & Others*
17.06 13.42 16.10
  • Including accumulated profits, minority interests and other equity items

11

NT$bn 4Q13 3Q13 2013 2012
Operating Cash Flow 7.58 5.93 24.83 25.98
Investing Cash Flow (30.40) (2.57) (42.35) (10.23)
Financing Cash Flow 22.98 (6.86) 19.27 (16.13)
NT$bn 4Q13 3Q13 2013 2012
Cash CAPEX (2.67) (2.67) (11.98) (8.29)
Free Cash Flow 4.91 3.26 12.85 17.69

12

Business Outlook & Event Updates

13

NT$bn 1Q14 1Q13 YoY
Revenue 27.98 26.56 5%
EBITDA 7.46 7.46 0%
Operating Income 4.82 4.99 -3%
Non-operating expense 0.07 0.28 -74%
Net Income 3.91 3.81 3%
EPS (NT$) 1.45 1.42 3%

14

Maintaining EBITDA stability for our telecom operations will be management’s top focus this year. Separately, we expect profit additions from momo and much less non-operating expenses in 2014. Nonetheless, a D&A rise in the wake of the LTE service launch would affect short-term earnings.

15

==> picture [19 x 20] intentionally omitted <==

Capex Guidance

The board today (January 28, 2014) approved a NT$12.8bn capex for 2014, lower than the NT$15.1bn expenditure budget in 2013, due to reductions in 3G expenditure expected to be larger than rises in 4G capex.

==> picture [19 x 20] intentionally omitted <==

Regulatory Update

TWM is one of the first two operators to have received approval from the NCC to apply for the 4G network roll-out.

16

==> picture [19 x 20] intentionally omitted <==

Awards and Recognition

− Received “2013 Taiwan Corporate Sustainability Awards - Excellence in Telecom Sector” as well as “Role Model Award for Community Service and Outreach” from the Taiwan Institute for Sustainable Energy Research. − The Company (comprising of its office buildings, internet data centers, base stations and company stores) achieved the ISO 14064-1 standard for greenhouse gas (GHG) emissions and removals as well as received the ISO 50001 certification for energy management.

− Awarded "2013 Most Prestigious Company in Taiwan" by CommonWealth magazine, ranking No.1 in the telecom sector.

17

==> picture [48 x 46] intentionally omitted <==

==> picture [132 x 137] intentionally omitted <==

Q & A

==> picture [132 x 142] intentionally omitted <==

==> picture [132 x 137] intentionally omitted <==

18