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CHT Interim / Quarterly Report 2018

Oct 31, 2018

52063_rns_2018-10-31_f1f2bf00-00ac-4549-a8f1-abf2dc71d43c.pdf

Interim / Quarterly Report

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3Q 2018 Operating Results

October 31, 2018

TSE: 2412 NYSE: CHT

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 audit /review work, which could result in significant differences from this preliminary unaudited financial information.

NOTE CONCERNING FORWARD-LOOKING STATEMENTS

This presentation contains forward-looking statements. These statements constitute “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Statements that are not historical facts, including statements about Chunghwa’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Investors are cautioned that actual events and results could differ materially from those statements as a result of a number of factors including, but not limited to the risks outlined in Chunghwa’s filings with the U.S. Securities and Exchange Commission on Forms F-1, F-3, 6-K and 20-F, in each case as amended. The forward-looking statements in this presentation reflect the current belief of Chunghwa as of the date of this presentation and Chunghwa undertakes no obligation to update these forward-looking statements for events or circumstances that occur subsequent to such date, except as required under applicable law.

This presentation is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer or selling security holder and that will contain detailed information about the company and management, as well as financial statements.

SPECIAL NOTE REGARDING NON-GAAP FINANCIAL MEASURES

A body of generally accepted accounting principles is commonly referred to as "GAAP". A non-GAAP financial measure is generally defined by the SEC as one that purports to measure historical or future financial performance, financial position or cash flows but excludes or includes amounts that would not be so adjusted in the most comparable U.S. GAAP measure. We disclose in this report certain non-GAAP financial measures, including EBITDA. EBITDA for any period is defined as consolidated net income (loss) excluding (i) depreciation and amortization, (ii) total net comprehensive financing cost (which is comprised of net interest expense, exchange gain or loss, monetary position gain or loss and other financing costs and derivative transactions), (iii) other expenses, net, (iv) income tax, (v) cumulative effect of change in accounting principle, net of tax and (vi) (income) loss from discontinued operations.

In managing our business we rely on EBITDA as a means of assessing our operating performance. We believe that EBITDA can be useful to facilitate comparisons of operating performance between periods and with other companies because it excludes the effect of (i) depreciation and amortization, which represents a non-cash charge to earnings, (ii) certain financing costs, which are significantly affected by external factors, including interest rates, foreign currency exchange rates and inflation rates, which have little or no bearing on our operating performance, (iii) income tax and tax on assets and statutory employee profit sharing, which is similar to a tax on income and (iv) other expenses or income not related to the operation of the business.

EBITDA is not a measure of financial performance under U.S. GAAP or T-IFRSs. EBITDA should not be considered as an alternate measure of net income or income from operations, as determined on a consolidated basis using amounts derived from statements of operations prepared in accordance with U.S. GAAP or T-IFRSs, as an indicator of operating performance or as cash flows from operating activity or as a measure of liquidity. EBITDA has material limitations that impair its value as a measure of a company's overall profitability since it does not address certain ongoing costs of our business that could significantly affect profitability such as financial expenses and income taxes, depreciation, pension plan reserves or capital expenditures and associated charges. These non-GAAP measures are not in accordance with or an alternative for GAAP financial data, the non-GAAP results should be reviewed together with the GAAP results and are not intended to serve as a substitute for results under GAAP, and may be different from non-GAAP measures used by other companies.

© 2016 Chunghwa Telecom 2

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Business Overview

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Chunghwa Telecom Overview

Strong Market Position[(a)]

Operational Strategies

Domestic Fixed

  • 1 Local

Streamline services and strengthen profitability

  • 93.1% share by subs (10.51mn subs)

  • 84.0% share by minutes

  • 1 DLD

  • 82.9% share by minutes

  • – #1 Broadband access

  • 71.6% share by subs[(b)(c) ] (4.49 mn subs)

  • Mobile – #1 Mobile subscribers

  • 36.4% market share[(d)] (10.53mn subs)

  • – #1 Mobile revenue

Capitalize and remain at the forefront of digital convergence trends

Leverage governments’ new southbound development policy

Broaden corporate governance initiatives

Continue to invest in talent and R&D

  • 37.8% market share[(d)(e)]

Internet – #1 ISP

  • 67.2% share by subs (4.10mn subs)

  • International Fixed

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  • 1 ILD

  • 69.6% share by minutes

Source: Company data, MOTC, and NCC statistics a) Market share as of August 2018

  • b) CHT access circuits were not included c) Excluding PWLAN subscriber numbers d) Includes 3G and 4G

  • e) Revenues are based on T-IFRSs .

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

Mobile Subs Market Share
Others
14.2%
36.4% CHT
FET 24.6%
24.8%
TWM
----- End of picture text -----

© 2016 Chunghwa Telecom 4

Number One Mobile Services Provider

4G Penetration

Strategy

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

Thousand 4G Subs as % of Total Subs
Highest Subs & Lowest Churn
Thousand
12,000 3.0%
10,000 2.5%
8,000 2.0%
6,000 1.5%
4,000 1.0%
2,000 0.5%
0 0.0%
A-18 M-18 J-18 J-18 A-18 S-18
CHT TWM FET CHT TWM FET
subscriber
Subscribers
Churn rate for postpaid
----- End of picture text -----

Highest Subs & Lowest Churn

Continue to enhance mobile network quality to satisfy customers

Expand IoT services over NB-IoT and Cat-M1 network

Offer diversified rate plans and product portfolio to satisfy customer demands

Strengthen subscriber acquisition and retention initiatives

Promote VAS and new applications Grow enterprise customers revenues

Note : Churn rate for postpaid subscribers

© 2016Chunghwa Telecom 5

Fixed Broadband and Internet Services

Performance

Strategy

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

Broadband Access Revenue
ARPU NT$
NT$ mn 717 716 711 710 703
5,000 4,264 4,253 4,236 4,250 4,225 600
400
2,500
390 372 357 338 320 200
0 0
Q3 17 Q4 17 Q1 18 Q2 18 Q3 18
ADSL Fiber
----- End of picture text -----

Note1 : Broadband ARPU is calculated as access plus ISP Note2 : Revenue is calculated based on T-IFRSs Note3 : Revenue starting from 2018 are calculated in accordance with IFRS 15

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Leverage network capability to offer high-speed upload service Leverage Big Data capability for precision marketing and precision network construction Leverage mobile, broadband and Wi-Fi capabilities to offer seamless internet services

Fixed Broadband Subs

Thousand

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

5,000 4,479 4,467 4,485 4,488 4,500
4,000 1,262 1,282 1,318 1,357 1,395
3,000
2,000 2,288 2,269 2,251 2,217 2,211
1,000
929 916 916 914 894
0
Sep 17 Dec 17 Mar 18 Jun 18 Sep 18
ADSL Fiber (<100M)
Fiber (≧100M)
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Expedite CDN construction and OTT promotion to enhance digital convergence product competitiveness Continue to execute the strategy of encouraging FTTx migration

© 2016Chunghwa Telecom 6

MOD/ IPTV Service

Performance

  • Subscription for Q3 2018 grew 32.3% YoY

Revenue for Q3 2018 grew 37.0% YoY

  • As of 3Q18, accumulated revenue from advertisement grew 76% YoY

  • Subscriber market share (CATV+IPTV) grew to 25.9% in Q2 2018

NT$ mm MOD subscribers and revenue

thousand

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

900 1,911 2,000
850 1,805 1,900
800
1,705 1,800
750 1,602 820 852 1,700
700
700 766 1,600
650
600 1,500
550 1,400
500 1,300
Q4 17 Q1 18 Q2 18 Q3 18
MOD revenue Subs
----- End of picture text -----

Note : Revenue starting from 2018 are calculated in accordance with IFRS 15

Strategy

  • Continue to enrich content, including movies, drama, TV series and cartoons for SVOD

  • Leverage the existing broadband and 4G mobile subscriber base to grow MOD subscribers

  • Carry OTT and 4K service on the platform to make MOD the smart home hub

  • Differentiate products by acquiring sports contents including eSports

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thousand SVOD Subscribers
1,300 1,212
1,154
1,200
1,076
1,100 977
1,000
900
800
700
Q4 17 Q1 18 Q2 18 Q3 18
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thousand

SVOD ： Subscription Video on Demand

© 2016 Chunghwa Telecom 7

Enterprise ICT Initiatives

Performance

Own 80% market share in clean pipe network/information security service and 55% market share in PKI-based identity service

IDC revenue for 3Q18 grew 23.4% YoY As of 3Q18, accumulated IDC revenue grew 25.6% YoY

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Strategy

Leverage our advantage on network infrastructure, IDC, CDN, ect. to expand ICT business

Leverage nationwide NB-IoT/Cat M1 dual network to provide high-efficiency and quality IoT service via our IoT Platform

Launch highest-rated cloud IDC to further explore business opportunities in finance, ISP and ICP/OTT industries Offer ICT total solutions by integrating our capabilities on cloud, information security, big data analysis, IoT, AI, block chain and customization

Cooperate with partners to develop an ecosystem to provide IoT services across various industries

© 2016 Chunghwa Telecom 8

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Financials Overview

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Financials: Income Statement Highlights

Consolidated
Q3 2018
(Upon the
adoption of
IFRS 15)
Q3 2017
(Before the
adoption of
IFRS 15)
Growth
%
Jan-Sep
2018
(Upon the
adoption of
IFRS 15)
Jan-Sep
2017
(Before the
adoption of
IFRS 15)
Growth
%
52.71
56.42
(6.6)
160.00
166.63
(4.0)
42.28
43.99
(3.9)
126.49
130.33
(2.9)
10.42
12.42
(16.1)
33.41
36.27
(7.9)
8.50
10.15
(16.2)
27.09
30.19
(10.3)
16.55
18.61
-
17.36
18.68
-
1.10
1.31
(16.2)
3.49
3.89
(10.3)
18.38
20.22
(9.1)
57.31
60.18
(4.8)
34.87
35.84
-
35.82
36.11
-		 Consolidated
Q3 2018
(Upon the
adoption of
IFRS 15)
Q3 2017
(Before the
adoption of
IFRS 15)
Growth
%
Jan-Sep
2018
(Upon the
adoption of
IFRS 15)
Jan-Sep
2017
(Before the
adoption of
IFRS 15)
Growth
%
52.71
56.42
(6.6)
160.00
166.63
(4.0)
42.28
43.99
(3.9)
126.49
130.33
(2.9)
10.42
12.42
(16.1)
33.41
36.27
(7.9)
8.50
10.15
(16.2)
27.09
30.19
(10.3)
16.55
18.61
-
17.36
18.68
-
1.10
1.31
(16.2)
3.49
3.89
(10.3)
18.38
20.22
(9.1)
57.31
60.18
(4.8)
34.87
35.84
-
35.82
36.11
-		 Consolidated
Q3 2018
(Upon the
adoption of
IFRS 15)
Q3 2017
(Before the
adoption of
IFRS 15)
Growth
%
Jan-Sep
2018
(Upon the
adoption of
IFRS 15)
Jan-Sep
2017
(Before the
adoption of
IFRS 15)
Growth
%
52.71
56.42
(6.6)
160.00
166.63
(4.0)
42.28
43.99
(3.9)
126.49
130.33
(2.9)
10.42
12.42
(16.1)
33.41
36.27
(7.9)
8.50
10.15
(16.2)
27.09
30.19
(10.3)
16.55
18.61
-
17.36
18.68
-
1.10
1.31
(16.2)
3.49
3.89
(10.3)
18.38
20.22
(9.1)
57.31
60.18
(4.8)
34.87
35.84
-
35.82
36.11
-		 Consolidated
Q3 2018
(Upon the
adoption of
IFRS 15)
Q3 2017
(Before the
adoption of
IFRS 15)
Growth
%
Jan-Sep
2018
(Upon the
adoption of
IFRS 15)
Jan-Sep
2017
(Before the
adoption of
IFRS 15)
Growth
%
52.71
56.42
(6.6)
160.00
166.63
(4.0)
42.28
43.99
(3.9)
126.49
130.33
(2.9)
10.42
12.42
(16.1)
33.41
36.27
(7.9)
8.50
10.15
(16.2)
27.09
30.19
(10.3)
16.55
18.61
-
17.36
18.68
-
1.10
1.31
(16.2)
3.49
3.89
(10.3)
18.38
20.22
(9.1)
57.31
60.18
(4.8)
34.87
35.84
-
35.82
36.11
-		 Consolidated
Q3 2018
(Upon the
adoption of
IFRS 15)
Q3 2017
(Before the
adoption of
IFRS 15)
Growth
%
Jan-Sep
2018
(Upon the
adoption of
IFRS 15)
Jan-Sep
2017
(Before the
adoption of
IFRS 15)
Growth
%
52.71
56.42
(6.6)
160.00
166.63
(4.0)
42.28
43.99
(3.9)
126.49
130.33
(2.9)
10.42
12.42
(16.1)
33.41
36.27
(7.9)
8.50
10.15
(16.2)
27.09
30.19
(10.3)
16.55
18.61
-
17.36
18.68
-
1.10
1.31
(16.2)
3.49
3.89
(10.3)
18.38
20.22
(9.1)
57.31
60.18
(4.8)
34.87
35.84
-
35.82
36.11
-		 Consolidated
Q3 2018
(Upon the
adoption of
IFRS 15)
Q3 2017
(Before the
adoption of
IFRS 15)
Growth
%
Jan-Sep
2018
(Upon the
adoption of
IFRS 15)
Jan-Sep
2017
(Before the
adoption of
IFRS 15)
Growth
%
52.71
56.42
(6.6)
160.00
166.63
(4.0)
42.28
43.99
(3.9)
126.49
130.33
(2.9)
10.42
12.42
(16.1)
33.41
36.27
(7.9)
8.50
10.15
(16.2)
27.09
30.19
(10.3)
16.55
18.61
-
17.36
18.68
-
1.10
1.31
(16.2)
3.49
3.89
(10.3)
18.38
20.22
(9.1)
57.31
60.18
(4.8)
34.87
35.84
-
35.82
36.11
-
(NT$bn) Q3 2018
(Upon the
adoption of
IFRS 15)		 Q3 2017
(Before the
adoption of
IFRS 15)		 Growth
%		 Jan-Sep
2018
(Upon the
adoption of
IFRS 15)		 Jan-Sep
2017
(Before the
adoption of
IFRS 15)		 Growth
%
Revenues 52.71 56.42 (6.6) 160.00 166.63 (4.0)
Operating Costs and
Expenses		 42.28 43.99 (3.9) 126.49 130.33 (2.9)
Income from
Operations		 10.42 12.42 (16.1) 33.41 36.27 (7.9)
Net Income2 8.50 10.15 (16.2) 27.09 30.19 (10.3)
Net Income Margin3
(%)		 16.55 18.61 - 17.36 18.68 -
EPS 1.10 1.31 (16.2) 3.49 3.89 (10.3)
EBITDA 18.38 20.22 (9.1) 57.31 60.18 (4.8)
EBITDA Margin (%) 34.87 35.84 - 35.82 36.11 -

  • ~~Note:~~

  • Financials are prepared in accordance with T-IFRSs. Figures for 2018 are unaudited.

  • Net income attributable to owners of the parent.

  • Net income margin is based on consolidated net income (including net income attributable to NCI).

  • EBITDA = operating income + Depreciation & Amortization.

  • The calculation of growth rates is based on NT$mn.

© 2016 Chunghwa Telecom 10

Financials: Business Segment Revenues

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

Growth Jan-Sep Jan-Sep Growth
(NT$bn) Q3 2018 Q3 2017
% 2018 2017 %
Domestic Fixed 16.50 17.77 (7.2) 48.74 51.54 (5.4)
----- End of picture text -----

(NT$bn)
Q3 2018		 (NT$bn)
Q3 2018		 Q3 2017 Growth
%		 Jan-Sep
2018		 Jan-Sep
2017		 Growth
%		 Growth
%
Domestic Fixed 16.50 17.77 (7.2) 48.74 **51.54 ** (5.4)
Local 6.89 7.58 (9.1) 20.84 22.39 (6.9)
DLD 0.61 0.68 (10.0) 1.84 2.00 (7.9)
Broadband Access 4.55 4.65 (2.3) 13.73 14.06 (2.4)
MOD 0.85 0.62 37.0 2.44 1.85 31.6
Mobile 23.45 26.96 (13.0) 75.90 80.41 (5.6)
Mobile Voice 5.31 8.10 (34.4) 18.67 24.94 (25.2)
Mobile VAS 9.71 10.91 (11.0) 30.20 32.32 (6.6)
Sales of Mobile Handsets,
and Data Cards		 8.09 7.63 6.1 26.09 22.24 17.3
Internet 7.19 7.20 (0.2) 21.32 21.19 0.6
Data Communications 5.28 5.37 (1.7) 15.82 16.02 (1.2)
Application VAS 1.30 1.27 2.0 3.77 3.47 8.8
International Fixed 4.19 3.17 32.4 10.41 10.00 4.0
ILD 2.39 1.65 44.8 5.47 5.59 (2.1)
Leased line 0.56 0.48 16.2 1.58 1.42 11.1
Others 1.38 1.32 4.5 3.63 3.50 3.9
Total 52.71 56.42 (6.6) 160.00 166.63 (4.0)

Note:

  1. Financials are prepared in accordance with T-IFRSs. Figures for 2018 are unaudited.

  2. The calculation of growth rates is based on NT$ mn.

  3. Businesses shown under each segment are highlighted; therefore, sum of the highlighted revenues is not equal to the total.

© 2016 Chunghwa Telecom 11

Financials: Costs & Expenses

Consolidated
Q3 2018
(Upon the
adoption of IFRS
15)
Q3 2017
(Before the
adoption of IFRS
15)
Growth
%
Jan-Sep
2018
(Upon the
adoption of
IFRS 15)
Jan-Sep
2017
(Before the
adoption of
IFRS 15)
Growth
%
34.43
35.66
(3.4)
102.07
105.35
(3.1)
7.85
8.33
(5.9)
24.42
24.98
(2.2)
5.81
6.27
(7.4)
18.17
18.71
(2.8)
1.09
1.12
(2.7)
3.46
3.44
0.5
0.95
0.94
0.6
2.79
2.83
(1.4)
42.28
43.99
(3.9)
126.49
130.33
(2.9)		 Consolidated
Q3 2018
(Upon the
adoption of IFRS
15)
Q3 2017
(Before the
adoption of IFRS
15)
Growth
%
Jan-Sep
2018
(Upon the
adoption of
IFRS 15)
Jan-Sep
2017
(Before the
adoption of
IFRS 15)
Growth
%
34.43
35.66
(3.4)
102.07
105.35
(3.1)
7.85
8.33
(5.9)
24.42
24.98
(2.2)
5.81
6.27
(7.4)
18.17
18.71
(2.8)
1.09
1.12
(2.7)
3.46
3.44
0.5
0.95
0.94
0.6
2.79
2.83
(1.4)
42.28
43.99
(3.9)
126.49
130.33
(2.9)		 Consolidated
Q3 2018
(Upon the
adoption of IFRS
15)
Q3 2017
(Before the
adoption of IFRS
15)
Growth
%
Jan-Sep
2018
(Upon the
adoption of
IFRS 15)
Jan-Sep
2017
(Before the
adoption of
IFRS 15)
Growth
%
34.43
35.66
(3.4)
102.07
105.35
(3.1)
7.85
8.33
(5.9)
24.42
24.98
(2.2)
5.81
6.27
(7.4)
18.17
18.71
(2.8)
1.09
1.12
(2.7)
3.46
3.44
0.5
0.95
0.94
0.6
2.79
2.83
(1.4)
42.28
43.99
(3.9)
126.49
130.33
(2.9)		 Consolidated
Q3 2018
(Upon the
adoption of IFRS
15)
Q3 2017
(Before the
adoption of IFRS
15)
Growth
%
Jan-Sep
2018
(Upon the
adoption of
IFRS 15)
Jan-Sep
2017
(Before the
adoption of
IFRS 15)
Growth
%
34.43
35.66
(3.4)
102.07
105.35
(3.1)
7.85
8.33
(5.9)
24.42
24.98
(2.2)
5.81
6.27
(7.4)
18.17
18.71
(2.8)
1.09
1.12
(2.7)
3.46
3.44
0.5
0.95
0.94
0.6
2.79
2.83
(1.4)
42.28
43.99
(3.9)
126.49
130.33
(2.9)		 Consolidated
Q3 2018
(Upon the
adoption of IFRS
15)
Q3 2017
(Before the
adoption of IFRS
15)
Growth
%
Jan-Sep
2018
(Upon the
adoption of
IFRS 15)
Jan-Sep
2017
(Before the
adoption of
IFRS 15)
Growth
%
34.43
35.66
(3.4)
102.07
105.35
(3.1)
7.85
8.33
(5.9)
24.42
24.98
(2.2)
5.81
6.27
(7.4)
18.17
18.71
(2.8)
1.09
1.12
(2.7)
3.46
3.44
0.5
0.95
0.94
0.6
2.79
2.83
(1.4)
42.28
43.99
(3.9)
126.49
130.33
(2.9)		 Consolidated
Q3 2018
(Upon the
adoption of IFRS
15)
Q3 2017
(Before the
adoption of IFRS
15)
Growth
%
Jan-Sep
2018
(Upon the
adoption of
IFRS 15)
Jan-Sep
2017
(Before the
adoption of
IFRS 15)
Growth
%
34.43
35.66
(3.4)
102.07
105.35
(3.1)
7.85
8.33
(5.9)
24.42
24.98
(2.2)
5.81
6.27
(7.4)
18.17
18.71
(2.8)
1.09
1.12
(2.7)
3.46
3.44
0.5
0.95
0.94
0.6
2.79
2.83
(1.4)
42.28
43.99
(3.9)
126.49
130.33
(2.9)
(NT$bn) Q3 2018
(Upon the
adoption of IFRS
15)
Q3 2017
(Before the
adoption of IFRS
15)		 Growth
%		 Jan-Sep
2018
(Upon the
adoption of
IFRS 15)		 Jan-Sep
2017
(Before the
adoption of
IFRS 15)		 Growth
%
Operating Costs 34.43 35.66 (3.4) 102.07 105.35 (3.1)
Operating Expenses 7.85 8.33 (5.9) 24.42 24.98 (2.2)
Marketing 5.81 6.27 (7.4) 18.17 18.71 (2.8)
General and
Administrative		 1.09 1.12 (2.7) 3.46 3.44 0.5
R&D Expense 0.95 0.94 0.6 2.79 2.83 (1.4)
Total 42.28 43.99 (3.9) 126.49 130.33 (2.9)

Note:

  1. Financials are prepared in accordance with T-IFRSs. Figures for 2018 are unaudited.

  2. The calculation of growth rates is based on NT$ mn.

© 2016 Chunghwa Telecom 12

Financials: Cash Flow

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

Consolidated
Jan-Sep Jan-Sep
Q3 2018 Q3 2017
Growth 2018 2017 Growth
(Upon the (Before the
(NT$bn) adoption of adoption of % (Upon the (Before the %
IFRS 15) IFRS 15) adoption of IFRS adoption of IFRS
15) 15)
Net Cash Flow from
21.76 19.36 12.4 46.21 45.93 0.6
Operating Activities
CapEx 8.13 6.90 17.9 19.35 16.59 16.6
Free Cash Flow 13.63 12.46 9.4 26.86 29.34 (8.4)
Cash and Cash Equivalents
20.33 25.47 (20.2) 20.33 25.47 (20.2)
at the end of period
----- End of picture text -----

Note:

  1. Financials are prepared in accordance with T-IFRSs. Figures for 2018 are unaudited.

  2. The calculation of growth rates is based on NT$ mn.

  3. Free cash flow is calculated by subtracting CapEx from Net Cash Flows from Operating Activities.

© 2016 Chunghwa Telecom 13

Operating Results vs. Forecast

Consolidated
(NT$bn)
Q3 2018
(A)
Q3 2018
（E）
Achieving
%
Jan-Sep
2018
(A)
2018
(E)
Achieving
%
Revenues
52.71
58.13 ~ 58.42
90.2 ~ 90.7
160.00
231.47 ~ 232.97
68.7 ~ 69.1
Operating
Costs and
Expenses
42.28
45.29 ~ 45.87
92.2 ~ 93.3
126.49
182.07 ~ 184.24
68.7 ~ 69.5
Income
from
Operations
10.42
12.23 ~ 13.10
79.5 ~ 85.2
33.41
47.17 ~ 50.84
65.7 ~ 70.8
Net
Income2
8.5
9.63 ~ 10.34
82.3 ~ 88.3
27.09
37.25 ~ 40.31
67.2 ~ 72.7
EPS
1.10
1.24 ~ 1.33
82.3 ~ 88.3
3.49
4.80 ~
5.20
67.2 ~ 72.7
EBITDA
18.38
20.16 ~ 21.03
87.4 ~ 91.2
57.31
79.11 ~ 82.79
69.2 ~ 72.4
EBITDA
Margin (%)
34.87
34.68 ~ 36.00
-
35.82
34.18 ~ 35.51
-		 Consolidated
(NT$bn)
Q3 2018
(A)
Q3 2018
（E）
Achieving
%
Jan-Sep
2018
(A)
2018
(E)
Achieving
%
Revenues
52.71
58.13 ~ 58.42
90.2 ~ 90.7
160.00
231.47 ~ 232.97
68.7 ~ 69.1
Operating
Costs and
Expenses
42.28
45.29 ~ 45.87
92.2 ~ 93.3
126.49
182.07 ~ 184.24
68.7 ~ 69.5
Income
from
Operations
10.42
12.23 ~ 13.10
79.5 ~ 85.2
33.41
47.17 ~ 50.84
65.7 ~ 70.8
Net
Income2
8.5
9.63 ~ 10.34
82.3 ~ 88.3
27.09
37.25 ~ 40.31
67.2 ~ 72.7
EPS
1.10
1.24 ~ 1.33
82.3 ~ 88.3
3.49
4.80 ~
5.20
67.2 ~ 72.7
EBITDA
18.38
20.16 ~ 21.03
87.4 ~ 91.2
57.31
79.11 ~ 82.79
69.2 ~ 72.4
EBITDA
Margin (%)
34.87
34.68 ~ 36.00
-
35.82
34.18 ~ 35.51
-		 Consolidated
(NT$bn)
Q3 2018
(A)
Q3 2018
（E）
Achieving
%
Jan-Sep
2018
(A)
2018
(E)
Achieving
%
Revenues
52.71
58.13 ~ 58.42
90.2 ~ 90.7
160.00
231.47 ~ 232.97
68.7 ~ 69.1
Operating
Costs and
Expenses
42.28
45.29 ~ 45.87
92.2 ~ 93.3
126.49
182.07 ~ 184.24
68.7 ~ 69.5
Income
from
Operations
10.42
12.23 ~ 13.10
79.5 ~ 85.2
33.41
47.17 ~ 50.84
65.7 ~ 70.8
Net
Income2
8.5
9.63 ~ 10.34
82.3 ~ 88.3
27.09
37.25 ~ 40.31
67.2 ~ 72.7
EPS
1.10
1.24 ~ 1.33
82.3 ~ 88.3
3.49
4.80 ~
5.20
67.2 ~ 72.7
EBITDA
18.38
20.16 ~ 21.03
87.4 ~ 91.2
57.31
79.11 ~ 82.79
69.2 ~ 72.4
EBITDA
Margin (%)
34.87
34.68 ~ 36.00
-
35.82
34.18 ~ 35.51
-		 Consolidated
(NT$bn)
Q3 2018
(A)
Q3 2018
（E）
Achieving
%
Jan-Sep
2018
(A)
2018
(E)
Achieving
%
Revenues
52.71
58.13 ~ 58.42
90.2 ~ 90.7
160.00
231.47 ~ 232.97
68.7 ~ 69.1
Operating
Costs and
Expenses
42.28
45.29 ~ 45.87
92.2 ~ 93.3
126.49
182.07 ~ 184.24
68.7 ~ 69.5
Income
from
Operations
10.42
12.23 ~ 13.10
79.5 ~ 85.2
33.41
47.17 ~ 50.84
65.7 ~ 70.8
Net
Income2
8.5
9.63 ~ 10.34
82.3 ~ 88.3
27.09
37.25 ~ 40.31
67.2 ~ 72.7
EPS
1.10
1.24 ~ 1.33
82.3 ~ 88.3
3.49
4.80 ~
5.20
67.2 ~ 72.7
EBITDA
18.38
20.16 ~ 21.03
87.4 ~ 91.2
57.31
79.11 ~ 82.79
69.2 ~ 72.4
EBITDA
Margin (%)
34.87
34.68 ~ 36.00
-
35.82
34.18 ~ 35.51
-		 Consolidated
(NT$bn)
Q3 2018
(A)
Q3 2018
（E）
Achieving
%
Jan-Sep
2018
(A)
2018
(E)
Achieving
%
Revenues
52.71
58.13 ~ 58.42
90.2 ~ 90.7
160.00
231.47 ~ 232.97
68.7 ~ 69.1
Operating
Costs and
Expenses
42.28
45.29 ~ 45.87
92.2 ~ 93.3
126.49
182.07 ~ 184.24
68.7 ~ 69.5
Income
from
Operations
10.42
12.23 ~ 13.10
79.5 ~ 85.2
33.41
47.17 ~ 50.84
65.7 ~ 70.8
Net
Income2
8.5
9.63 ~ 10.34
82.3 ~ 88.3
27.09
37.25 ~ 40.31
67.2 ~ 72.7
EPS
1.10
1.24 ~ 1.33
82.3 ~ 88.3
3.49
4.80 ~
5.20
67.2 ~ 72.7
EBITDA
18.38
20.16 ~ 21.03
87.4 ~ 91.2
57.31
79.11 ~ 82.79
69.2 ~ 72.4
EBITDA
Margin (%)
34.87
34.68 ~ 36.00
-
35.82
34.18 ~ 35.51
-		 Consolidated
(NT$bn)
Q3 2018
(A)
Q3 2018
（E）
Achieving
%
Jan-Sep
2018
(A)
2018
(E)
Achieving
%
Revenues
52.71
58.13 ~ 58.42
90.2 ~ 90.7
160.00
231.47 ~ 232.97
68.7 ~ 69.1
Operating
Costs and
Expenses
42.28
45.29 ~ 45.87
92.2 ~ 93.3
126.49
182.07 ~ 184.24
68.7 ~ 69.5
Income
from
Operations
10.42
12.23 ~ 13.10
79.5 ~ 85.2
33.41
47.17 ~ 50.84
65.7 ~ 70.8
Net
Income2
8.5
9.63 ~ 10.34
82.3 ~ 88.3
27.09
37.25 ~ 40.31
67.2 ~ 72.7
EPS
1.10
1.24 ~ 1.33
82.3 ~ 88.3
3.49
4.80 ~
5.20
67.2 ~ 72.7
EBITDA
18.38
20.16 ~ 21.03
87.4 ~ 91.2
57.31
79.11 ~ 82.79
69.2 ~ 72.4
EBITDA
Margin (%)
34.87
34.68 ~ 36.00
-
35.82
34.18 ~ 35.51
-
(NT$bn)
Q3 2018
(A)		 Q3 2018
（E）		 Achieving
%		 Jan-Sep
2018
(A)		 2018
(E)		 Achieving
%
Revenues
52.71
58.13 ~ 58.42		 90.2 ~ 90.7 160.00 231.47 ~ 232.97 68.7 ~ 69.1
Operating
Costs and
Expenses
42.28
45.29 ~ 45.87		 92.2 ~ 93.3 126.49 182.07 ~ 184.24 68.7 ~ 69.5
Income
from
Operations
10.42
12.23 ~ 13.10		 79.5 ~ 85.2 33.41 47.17 ~ 50.84 65.7 ~ 70.8
Net
Income2
8.5
9.63 ~ 10.34		 82.3 ~ 88.3 27.09 37.25 ~ 40.31 67.2 ~ 72.7
EPS
1.10
1.24 ~ 1.33		 82.3 ~ 88.3 3.49 4.80 ~
5.20		 67.2 ~ 72.7
EBITDA
18.38
20.16 ~ 21.03		 87.4 ~ 91.2 57.31 79.11 ~ 82.79 69.2 ~ 72.4
EBITDA
Margin (%)
34.87
34.68 ~ 36.00		 - 35.82 34.18 ~ 35.51 -

Note:

  1. Financials are prepared in accordance with T-IFRSs. Figures for 2018 are unaudited.

  2. Net income attributable to owners of the parent.

  3. EBITDA = operating income + Depreciation & Amortization.

© 2016 Chunghwa Telecom 14

Effective and Efficient Capital Expenditure

Capital Expenditure

Budgeted capex for 2018: NT$33.1bn

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

NT$ bn
50
20%
45
14.3%
11.9% 12.1%
40 10.8% 10.2% 10.0%
10%
33.1
35
1.4
27.0 1.5 0%
30
25.0 3.3
23.5 1.3
25 0.5 1.6 19.3
0.9
20 4.8 2.7 0.8 1.1 2.8 11.0 16.6 0.7 -10%
1.0 0.8
15 8.6 9.0 9.7 1.3 1.8 -20%
1.6
8.1
10 5.9
15.9 -30%
5 10.2 9.9 11.6
6.8 7.9
0 -40%
2015 2016 2017 2018(E) Jan-Sep 2017 Jan-Sep 2018
Domestic Fixed Mobile Internet International Fixed Others
Capex
Capex as % of Revenue
----- End of picture text -----

Continue to focus on core businesses for future investments

  • FTTx

  • 4G

  • IDC/ Cloud

  • Service Platforms

© 2016 Chunghwa Telecom 15

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Q&A

==> picture [721 x 181] intentionally omitted <==

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