Taiwan Mobile Co., Ltd.

1Q18 Results Summary April 30, 2018

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.

Business Overview

1Q18 Mobile Service Revenue[1&2 ] YoY Change

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CHT FET TWM
-4.9% -4.7%
-6.5%
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1Q18 Spectrum Yield[3]

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NT$mn/MHz
149
113
93
CHT FET TWM
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1Q18 Telecom EBITDA[1&2] YoY Change

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4.1%
NA
CHT FET TWM
-1.4%
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1Q18 EPS (IFRS 15)

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NT$ 1.28
1.13
0.75
CHT FET TWM
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Pre-IFRS 15 numbers (aka residual value method)

2. TWM’s numbers excluded domestic roaming.

1Q18 mobile service revenue (under residual value method) divided by the amount of spectrum owned by each telco.

Fixed Broadband Subs (K)

MAU[1] of myVideo (K)

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+6%YoY +73%QoQ
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MAU : monthly active users.

Total Revenue (NT$bn)

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E-commerce as % of Total Revenue

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Total EBITDA (NT$bn)

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Mobile Commerce[1] as % E-commerce Revenue

Mobile commerce : online retail sales made through mobile devices.

Financial Overview

NT$bn	Revenue	EBITDA
	Telecom CATV momo Total1	Telecom CATV momo Total1
1Q18	18.47 1.60 10.18 30.31	6.77 0.81 0.46 8.17
% of total	61% 5% 34% 100%	83% 10% 6% 100%
1Q18 YoY	-6% -1% 34% 5%	-5% -6% 37% -3%
4Q17 YoY	-5% -4% 30% 4%	-6% -12% 39% -5%
	Ex-roaming 1Q18 YoY	0% -6% 37% 1%
	Ex-roaming 1Q18 YoY (Pre-IFRS 15)	4% 4%

The sum of each account of telecom, CATV and momo does not equal to the consolidated total number due to other revenue and minor adjustments / eliminations.

NT$bn	1Q18
	Amount QoQ YoY % of 1Q guidance
Revenues	30.31 -5% 5% 102%
Operating Costs	(21.38) -7% 9% 101%
Operating Expenses	(4.19) -4% 1% 95%
Operating Income	4.74 10% -7% 111%
Non-op. Income (Exp.)	(0.17) -84% 2% 103%
Pre-tax Income	4.56 43% -7% 112%
Net Income	3.48 43% -12% 108%
EPS1 (NT$)	1.28 44% -12% 108%

EBITDA	8.17 5% -3% 106%

EPS is based on share count of 2.722bn.

	NT$bn 1Q18 4Q17 1Q17	NT$bn 1Q18 4Q17 1Q17	NT$bn 1Q18 4Q17 1Q17	NT$bn 1Q18 4Q17 1Q17	NT$bn 1Q18 4Q17 1Q17	NT$bn 1Q18 4Q17 1Q17	NT$bn 1Q18 4Q17 1Q17	NT$bn 1Q18 4Q17 1Q17
	Total Assets	155.27	154.52	148.73	Liabilities	82.76	89.01	78.25
	Current Assets	31.22	32.35	32.58	Current Liabilities	52.14	56.48	31.42
	- Cash & Cash Equivalents	7.66	6.63	7.93	- ST Debts	28.27	30.86	8.26
	- Accounts Receivable	14.24	14.68	14.77	- Other Current Liabilities	23.88	25.62	23.16
	- Inventories	3.98	4.33	3.82	Non-current Liabilities	30.62	32.53	46.83
	- Other Current Assets	5.33	6.71	6.07	- Long-term Borrowings	26.32	28.35	42.81
	Non-current Assets	124.05	122.17	116.15	- Other Non-current Liabilities Shareholders' Equity	4.30 72.51	4.18 65.51	4.02 70.48
	- Long-term Investment	5.88	6.05	5.58
	- Property and Equipment	43.42	44.57	45.00
	- Concession	42.92	43.67	37.20
	- Other Non-current Assets	31.82	27.88	28.37	Paid-in Capital	34.21	34.21	34.21
					Capital Surplus	13.94	13.94	14.99
	1Q18 4Q17 1Q17
					Legal Reserve	26.14	26.14	24.61
	Current Ratio	60%	57%	104%	Treasury Shares	(29.72)	(29.72)	(29.72)
	Net Debt to Equity	65%	80%	61%	Un-appropriated Earnings	0.63	0.63	0.63
10 Net Debt to EBITDA (x) 1.44 1.60 1.32 ROE1 (annualized) 20% 22% 23% 1. ROE = Accumulated Net Income (Annualized) /Average Shareholders' Equity 2. Including accumulated profits and other equity items. Non-controlling Interest 6.07 5.88 5.92 Retained Earnings & Others2 21.25 14.44 19.85
	Net Debt to EBITDA (x)	1.44	1.60	1.32	Non-controlling Interest	6.07	5.88	5.92
	ROE1 (annualized)	20%	22%	23%	Retained Earnings & Others2	21.25	14.44	19.85

ROE = Accumulated Net Income (Annualized) /Average Shareholders' Equity
Including accumulated profits and other equity items.

NT$bn 1Q18 4Q17 1Q17	NT$bn 1Q18 4Q17 1Q17	NT$bn 1Q18 4Q17 1Q17	NT$bn 1Q18 4Q17 1Q17
Operating Cash Flow	7.96	7.99	7.49
Investing Cash Flow	(2.16)	(9.70)	(1.70)
Financing Cash Flow	(4.76)	2.37	(5.56)

NT$bn 1Q18 4Q17 1Q17
Cash CAPEX1	(2.76)	(2.24)	(2.66)
Free Cash Flow1	5.20	5.74	4.83

Excluding 4G License Fees

Event Updates

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2017 Earnings Distribution

On April 27, 2018, TWM’s board meeting approved the proposal to distribute NT$15.2bn in cash dividends, translating into a 107% payout to shareholders. Dividend per share is NT$5.6 on 2.72bn shares, excluding treasury shares held by 100%-owned subsidiaries.

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Straight Bond Issuance

On April 20, 2018, TWM successfully completed the issuance of its 5th unsecured corporate straight bonds with a total amount of NT$15bn , which consist of NT$6bn for the 5-year bond (with a fixed annual rate of 0.848%) and NT$9bn for the 7-year bond (with a fixed annual rate of 1.00%).

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Received the “Silver Class Sustainability Award” in the category of global telecom industry in RobecoSAM’s 2018 Sustainability Yearbook.

Selected as a constituent of the ECPI INDEX CERTIFICATE 2017.

In order to deliver satisfactory returns to our shareholders, sustaining the stability of free cash flow generations and adding differentiation to strengthen our market foothold remain our main focuses.

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AI assistant

Taiwan Mobile Co., Ltd. Interim / Quarterly Report 2018

52277_rns_2018-05-03_a72a6d38-5d76-4b82-8040-0ef0871ed276.pdf