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TWM — Interim / Quarterly Report 2020
Aug 4, 2020
52277_rns_2020-08-04_43960b0e-36a6-47a3-9e02-9fae6cf43f46.pdf
Interim / Quarterly Report
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Taiwan Mobile Co., Ltd.
2Q20 Results Summary
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Disclaimer
The information contained in this presentation, including all forwardis to without whether as a looking information, subject change notice, 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 No or presentation. representation 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.
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2Q20 Operational Highlights
Soft Demand for Readying for 5G Robust e-commerce High-end Handsets Launch Performance at momo
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104% Achievement Ratio for 2Q20 Net Income
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Versatility in Telecom Business
2Q20 results
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Double Play bundles Mobile Data Fixed Broadband
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+NT$46 YoY handset bundle plan tariff of new sign-ups
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+40% YoY IoT connections
+35% YoY ICT/IoT/Cloud service revenue
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Resilience in Pay-TV Business
2Q20 Basic TV Subscribers
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('000) Subscribers YoY
TFNM 551 -1.3%
Top 4 MSO 3,501 -2.1%
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Source: Market intelligence
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Source: Market intelligence
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D&A
(NT$mn)
264
YoY
177 -33%
2Q19 3Q19 4Q19 1Q20 2Q20
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EBIT
(NT$mn)
YoY
564 +7%
529
2Q19 3Q19 4Q19 1Q20 2Q20
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momo – the Growth Engine
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Satellite E-commerce Total E-commerce Average
Warehouses (#) Transaction (#) Ticket Size (NT$)
2Q19 2Q20 2Q19 2Q20 2Q19 2Q20
8 17 4.9m 6.8m $2,095 $2,118
+9 YoY +39.5% YoY +1.1% YoY
Total Revenue EBIT
YoY
(NT$m) (NT$m)
+34%
15,834
YoY
1,375 -12%
Total 11,815 +31%
461
1,554
351
-13%
Others
14,459 +41%
E-commerce 10,261
+57%
2Q19 2Q20 2Q19 2Q20
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2Q19
2Q20
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Performance by Business
| NT$bn | Revenue | EBIT |
|---|---|---|
| Telecom CATV momo Total1 |
Telecom CATV momo Total1 |
|
| 2Q20 | 14.36 1.54 15.83 31.34 |
3.04 0.56 0.46 4.13 |
| % of total |
46% 5% 51% 100% |
73% 14% 11% 100% |
| 2Q20 YoY |
-12% 0% 34% 6% |
-11% 7% 31% -4% |
| 1Q20 YoY |
-6% -1% 29% 7% |
2% 10% 24% 6% |
- The sum of each account of telecom, CATV and momo does not equal to the consolidated total number due to other revenue and inter company eliminations.
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Results Summary
| NT$bn | 2Q20 | 2Q20 | 2Q20 | 1H20 | 1H20 | 1H20 |
|---|---|---|---|---|---|---|
| Amount | YoY | % of 2Q guidance |
Amount | YoY | % of full year guidance |
|
| Revenues 31.34 6% 99% 63.19 6% 47% |
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| Cash Cost & Expense (23.63) 12% 99% (47.38) 11% 46% |
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| Operating Income 4.13 -4% 100% 8.61 1% 55% |
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| Non-op. Income (Exp.) (0.00) -95% 2% (0.16) -35% 16% |
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| Pre-tax Income 4.13 -2% 107% 8.46 2% 57% |
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| Net Income 3.05 -5% 104% 6.36 1% 57% |
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| EPS1 (NT$) 1.08 -7% 104% 2.26 -1% 57% |
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| EBITDA 7.71 -8% 99% 15.81 -6% 50% |
- EPS is based on share count of 2.811bn.
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| Balance Sheet Analysis NT$bn 2Q20 1Q20 2Q19 Total Assets 177.39 178.73 153.60 Current Assets 30.27 30.69 27.10 - Cash & Cash Equivalents 8.24 9.10 6.77 - Receivable & Contract Assets 13.77 13.49 14.60 - Inventories 3.72 3.77 4.08 - Other Current Assets 4.54 4.32 1.64 Non-current Assets 147.12 148.05 126.51 - Long-term Investment 3.57 3.00 7.36 - Property and Equipment 38.55 38.35 40.74 - Right-of-use Assets 9.21 9.54 9.67 - Concession 66.96 67.66 39.12 - Other Non-current & Contract Assets 28.84 29.50 29.63 2Q20 1Q20 2Q19 Current Ratio 50% 59% 54% Net Debt to Equity 81% 76% 48% Net Debt to EBITDA (x) 1.68 1.81 0.91 ROE1 (annualized) 18% 18% 19% NT$bn Liabilities Current Liabilities - ST Debts - Accounts & Notes Payable - Current Lease Liabilities - Other Current Liabilities Non-current Liabilities - Long-term Borrowings - Non-current Lease Liabilities - Other Non-current Liabilities Shareholders' Equity Paid-in Capital Capital Surplus Legal Reserve Treasury Shares Un-appropriated Earnings Non-controlling Interest Retained Earnings & Others2 |
Balance Sheet Analysis NT$bn 2Q20 1Q20 2Q19 Total Assets 177.39 178.73 153.60 Current Assets 30.27 30.69 27.10 - Cash & Cash Equivalents 8.24 9.10 6.77 - Receivable & Contract Assets 13.77 13.49 14.60 - Inventories 3.72 3.77 4.08 - Other Current Assets 4.54 4.32 1.64 Non-current Assets 147.12 148.05 126.51 - Long-term Investment 3.57 3.00 7.36 - Property and Equipment 38.55 38.35 40.74 - Right-of-use Assets 9.21 9.54 9.67 - Concession 66.96 67.66 39.12 - Other Non-current & Contract Assets 28.84 29.50 29.63 2Q20 1Q20 2Q19 Current Ratio 50% 59% 54% Net Debt to Equity 81% 76% 48% Net Debt to EBITDA (x) 1.68 1.81 0.91 ROE1 (annualized) 18% 18% 19% NT$bn Liabilities Current Liabilities - ST Debts - Accounts & Notes Payable - Current Lease Liabilities - Other Current Liabilities Non-current Liabilities - Long-term Borrowings - Non-current Lease Liabilities - Other Non-current Liabilities Shareholders' Equity Paid-in Capital Capital Surplus Legal Reserve Treasury Shares Un-appropriated Earnings Non-controlling Interest Retained Earnings & Others2 |
Balance Sheet Analysis NT$bn 2Q20 1Q20 2Q19 Total Assets 177.39 178.73 153.60 Current Assets 30.27 30.69 27.10 - Cash & Cash Equivalents 8.24 9.10 6.77 - Receivable & Contract Assets 13.77 13.49 14.60 - Inventories 3.72 3.77 4.08 - Other Current Assets 4.54 4.32 1.64 Non-current Assets 147.12 148.05 126.51 - Long-term Investment 3.57 3.00 7.36 - Property and Equipment 38.55 38.35 40.74 - Right-of-use Assets 9.21 9.54 9.67 - Concession 66.96 67.66 39.12 - Other Non-current & Contract Assets 28.84 29.50 29.63 2Q20 1Q20 2Q19 Current Ratio 50% 59% 54% Net Debt to Equity 81% 76% 48% Net Debt to EBITDA (x) 1.68 1.81 0.91 ROE1 (annualized) 18% 18% 19% NT$bn Liabilities Current Liabilities - ST Debts - Accounts & Notes Payable - Current Lease Liabilities - Other Current Liabilities Non-current Liabilities - Long-term Borrowings - Non-current Lease Liabilities - Other Non-current Liabilities Shareholders' Equity Paid-in Capital Capital Surplus Legal Reserve Treasury Shares Un-appropriated Earnings Non-controlling Interest Retained Earnings & Others2 |
Balance Sheet Analysis NT$bn 2Q20 1Q20 2Q19 Total Assets 177.39 178.73 153.60 Current Assets 30.27 30.69 27.10 - Cash & Cash Equivalents 8.24 9.10 6.77 - Receivable & Contract Assets 13.77 13.49 14.60 - Inventories 3.72 3.77 4.08 - Other Current Assets 4.54 4.32 1.64 Non-current Assets 147.12 148.05 126.51 - Long-term Investment 3.57 3.00 7.36 - Property and Equipment 38.55 38.35 40.74 - Right-of-use Assets 9.21 9.54 9.67 - Concession 66.96 67.66 39.12 - Other Non-current & Contract Assets 28.84 29.50 29.63 2Q20 1Q20 2Q19 Current Ratio 50% 59% 54% Net Debt to Equity 81% 76% 48% Net Debt to EBITDA (x) 1.68 1.81 0.91 ROE1 (annualized) 18% 18% 19% NT$bn Liabilities Current Liabilities - ST Debts - Accounts & Notes Payable - Current Lease Liabilities - Other Current Liabilities Non-current Liabilities - Long-term Borrowings - Non-current Lease Liabilities - Other Non-current Liabilities Shareholders' Equity Paid-in Capital Capital Surplus Legal Reserve Treasury Shares Un-appropriated Earnings Non-controlling Interest Retained Earnings & Others2 |
Balance Sheet Analysis NT$bn 2Q20 1Q20 2Q19 Total Assets 177.39 178.73 153.60 Current Assets 30.27 30.69 27.10 - Cash & Cash Equivalents 8.24 9.10 6.77 - Receivable & Contract Assets 13.77 13.49 14.60 - Inventories 3.72 3.77 4.08 - Other Current Assets 4.54 4.32 1.64 Non-current Assets 147.12 148.05 126.51 - Long-term Investment 3.57 3.00 7.36 - Property and Equipment 38.55 38.35 40.74 - Right-of-use Assets 9.21 9.54 9.67 - Concession 66.96 67.66 39.12 - Other Non-current & Contract Assets 28.84 29.50 29.63 2Q20 1Q20 2Q19 Current Ratio 50% 59% 54% Net Debt to Equity 81% 76% 48% Net Debt to EBITDA (x) 1.68 1.81 0.91 ROE1 (annualized) 18% 18% 19% NT$bn Liabilities Current Liabilities - ST Debts - Accounts & Notes Payable - Current Lease Liabilities - Other Current Liabilities Non-current Liabilities - Long-term Borrowings - Non-current Lease Liabilities - Other Non-current Liabilities Shareholders' Equity Paid-in Capital Capital Surplus Legal Reserve Treasury Shares Un-appropriated Earnings Non-controlling Interest Retained Earnings & Others2 |
Balance Sheet Analysis NT$bn 2Q20 1Q20 2Q19 Total Assets 177.39 178.73 153.60 Current Assets 30.27 30.69 27.10 - Cash & Cash Equivalents 8.24 9.10 6.77 - Receivable & Contract Assets 13.77 13.49 14.60 - Inventories 3.72 3.77 4.08 - Other Current Assets 4.54 4.32 1.64 Non-current Assets 147.12 148.05 126.51 - Long-term Investment 3.57 3.00 7.36 - Property and Equipment 38.55 38.35 40.74 - Right-of-use Assets 9.21 9.54 9.67 - Concession 66.96 67.66 39.12 - Other Non-current & Contract Assets 28.84 29.50 29.63 2Q20 1Q20 2Q19 Current Ratio 50% 59% 54% Net Debt to Equity 81% 76% 48% Net Debt to EBITDA (x) 1.68 1.81 0.91 ROE1 (annualized) 18% 18% 19% NT$bn Liabilities Current Liabilities - ST Debts - Accounts & Notes Payable - Current Lease Liabilities - Other Current Liabilities Non-current Liabilities - Long-term Borrowings - Non-current Lease Liabilities - Other Non-current Liabilities Shareholders' Equity Paid-in Capital Capital Surplus Legal Reserve Treasury Shares Un-appropriated Earnings Non-controlling Interest Retained Earnings & Others2 |
Balance Sheet Analysis NT$bn 2Q20 1Q20 2Q19 Total Assets 177.39 178.73 153.60 Current Assets 30.27 30.69 27.10 - Cash & Cash Equivalents 8.24 9.10 6.77 - Receivable & Contract Assets 13.77 13.49 14.60 - Inventories 3.72 3.77 4.08 - Other Current Assets 4.54 4.32 1.64 Non-current Assets 147.12 148.05 126.51 - Long-term Investment 3.57 3.00 7.36 - Property and Equipment 38.55 38.35 40.74 - Right-of-use Assets 9.21 9.54 9.67 - Concession 66.96 67.66 39.12 - Other Non-current & Contract Assets 28.84 29.50 29.63 2Q20 1Q20 2Q19 Current Ratio 50% 59% 54% Net Debt to Equity 81% 76% 48% Net Debt to EBITDA (x) 1.68 1.81 0.91 ROE1 (annualized) 18% 18% 19% NT$bn Liabilities Current Liabilities - ST Debts - Accounts & Notes Payable - Current Lease Liabilities - Other Current Liabilities Non-current Liabilities - Long-term Borrowings - Non-current Lease Liabilities - Other Non-current Liabilities Shareholders' Equity Paid-in Capital Capital Surplus Legal Reserve Treasury Shares Un-appropriated Earnings Non-controlling Interest Retained Earnings & Others2 |
Balance Sheet Analysis NT$bn 2Q20 1Q20 2Q19 Total Assets 177.39 178.73 153.60 Current Assets 30.27 30.69 27.10 - Cash & Cash Equivalents 8.24 9.10 6.77 - Receivable & Contract Assets 13.77 13.49 14.60 - Inventories 3.72 3.77 4.08 - Other Current Assets 4.54 4.32 1.64 Non-current Assets 147.12 148.05 126.51 - Long-term Investment 3.57 3.00 7.36 - Property and Equipment 38.55 38.35 40.74 - Right-of-use Assets 9.21 9.54 9.67 - Concession 66.96 67.66 39.12 - Other Non-current & Contract Assets 28.84 29.50 29.63 2Q20 1Q20 2Q19 Current Ratio 50% 59% 54% Net Debt to Equity 81% 76% 48% Net Debt to EBITDA (x) 1.68 1.81 0.91 ROE1 (annualized) 18% 18% 19% NT$bn Liabilities Current Liabilities - ST Debts - Accounts & Notes Payable - Current Lease Liabilities - Other Current Liabilities Non-current Liabilities - Long-term Borrowings - Non-current Lease Liabilities - Other Non-current Liabilities Shareholders' Equity Paid-in Capital Capital Surplus Legal Reserve Treasury Shares Un-appropriated Earnings Non-controlling Interest Retained Earnings & Others2 |
Balance Sheet Analysis NT$bn 2Q20 1Q20 2Q19 Total Assets 177.39 178.73 153.60 Current Assets 30.27 30.69 27.10 - Cash & Cash Equivalents 8.24 9.10 6.77 - Receivable & Contract Assets 13.77 13.49 14.60 - Inventories 3.72 3.77 4.08 - Other Current Assets 4.54 4.32 1.64 Non-current Assets 147.12 148.05 126.51 - Long-term Investment 3.57 3.00 7.36 - Property and Equipment 38.55 38.35 40.74 - Right-of-use Assets 9.21 9.54 9.67 - Concession 66.96 67.66 39.12 - Other Non-current & Contract Assets 28.84 29.50 29.63 2Q20 1Q20 2Q19 Current Ratio 50% 59% 54% Net Debt to Equity 81% 76% 48% Net Debt to EBITDA (x) 1.68 1.81 0.91 ROE1 (annualized) 18% 18% 19% NT$bn Liabilities Current Liabilities - ST Debts - Accounts & Notes Payable - Current Lease Liabilities - Other Current Liabilities Non-current Liabilities - Long-term Borrowings - Non-current Lease Liabilities - Other Non-current Liabilities Shareholders' Equity Paid-in Capital Capital Surplus Legal Reserve Treasury Shares Un-appropriated Earnings Non-controlling Interest Retained Earnings & Others2 |
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|---|---|---|---|---|---|---|---|---|---|
NT$bn |
2Q20 1Q20 2Q19 |
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| Liabilities | 110.89 | 102.56 | 89.18 | ||||||
| Current Liabilities | 60.18 | 51.60 | 49.76 | ||||||
| - ST Debts | 21.69 | 26.63 | 8.70 | ||||||
| - Accounts & Notes Payable | 8.35 | 7.70 | 7.14 | ||||||
| - Current Lease Liabilities | 3.53 | 3.58 | 3.42 | ||||||
| - Other Current Liabilities | 26.61 | 13.69 | 30.50 | ||||||
| Non-current Liabilities | 50.71 | 50.96 | 39.42 | ||||||
| - Long-term Borrowings | 40.37 | 40.42 | 28.73 | ||||||
| - Non-current Lease Liabilities | 5.68 | 5.93 | 6.19 | ||||||
| - Other Non-current Liabilities | 4.66 | 4.61 | 4.50 | ||||||
| Shareholders' Equity | 66.50 | 76.18 | 64.42 | ||||||
| Paid-in Capital | 35.09 | 35.09 | 34.68 | ||||||
| Capital Surplus | 18.68 | 20.28 | 16.65 | ||||||
| Legal Reserve | 30.17 | 28.92 | 28.92 | ||||||
| Current Ratio | 50% | 59% | Treasury Shares | (29.72) | (29.72) | (29.72) | |||
| Net Debt to Equity | 81% | 76% | Un-appropriated Earnings | 0.00 | 0.49 | 0.49 | |||
| Net Debt to EBITDA (x) | 1.68 | 1.81 |
Non-controlling Interest | 6.02 | 6.40 | 5.86 | |||
| ROE1 (annualized) | 18% | 18% | Retained Earnings & Others2 | 6.24 | 14.71 | 7.53 |
| NT$bn | 2Q20 | 1Q20 | 2Q19 | |||
| Liabilities | 110.89 | 102.56 | 89.18 | |||
| Current Liabilities | 60.18 | 51.60 | 49.76 | |||
| - ST Debts | 21.69 | 26.63 | 8.70 | |||
| - Accounts & Notes Payable | 8.35 | 7.70 | 7.14 | |||
| - Current Lease Liabilities | 3.53 | 3.58 | 3.42 | |||
| - Other Current Liabilities | 26.61 | 13.69 | 30.50 | |||
| Non-current Liabilities | 50.71 | 50.96 | 39.42 | |||
| - Long-term Borrowings | 40.37 | 40.42 | 28.73 | |||
| - Non-current Lease Liabilities | 5.68 | 5.93 | 6.19 | |||
| - Other Non-current Liabilities | 4.66 | 4.61 | 4.50 | |||
| Shareholders' Equity Paid-in Capital |
66.50 35.09 |
76.18 35.09 |
64.42 34.68 |
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| Capital Surplus | 18.68 | 20.28 | 16.65 | |||
| Legal Reserve | 30.17 | 28.92 | 28.92 | |||
| Treasury Shares | (29.72) | (29.72) | (29.72) | |||
| Un-appropriated Earnings | 0.00 | 0.49 | 0.49 | |||
| Non-controlling Interest | 6.02 | 6.40 | 5.86 | |||
| Retained Earnings & Others2 | 6.24 | 14.71 | 7.53 |
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ROE = Accumulated Net Income (Annualized) /Average Shareholders' Equity
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Including accumulated profits and other equity items.
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Cash Flow Analysis
| Cash Flow Analysis | Cash Flow Analysis | Cash Flow Analysis | Cash Flow Analysis |
|---|---|---|---|
| NT$bn 2Q20 1Q20 2Q19 Operating 7.47 9.24 7.07 Investing (1.54) (31.79) (1.37) Financing (6.79) 22.99 (6.76) NT$bn 2Q20 1Q20 2Q19 Pre-IFRS 16 Operating1 6.50 8.21 6.12 Cash CAPEX2 (1.90) (1.65) (1.38) Free Cash Flow2 4.60 6.56 4.73 |
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| Pre-IFRS 16 Operating1 | 6.50 | 8.21 |
6.12 |
| Cash CAPEX2 | (1.90) | (1.65) | (1.38) |
| Free Cash Flow2 | 4.60 | 6.56 |
4.73 |
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“Lease expenses” previously under operating activities was reclassified into financing cash flow and investing cash flow (to a lesser extent) in accordance with IFRS 16 in 2019.
-
Excluding 5G License Fees
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Events, Awards and Recognition
TWM launched commercial 5G services on July 1st, 2020. Honored with the 2020 “Annual CSR Survey – Telecom Service Industry” award and “Eco-friendly” award from Global Views Monthly.
Ranked among the top 5% of listed companies in the “Corporate Governance Evaluation” conducted by the Taiwan Stock Exchange and Taipei Exchange, for the sixth year in a row.
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Key Message
Taiwan’s big 3 mobile operators have entered the new era with restrained pricing and a consensus on 5G unlimited data plans starting from NT$1,399 a month. As 5G iPhone and the likes arrive alongside continuous network build-out, we expect 5G service adoptions to accelerate, and hence, increase bundle sales of high-end phones for our telecom business. At the same time, we expect momo to continue to thrive in this new normal and its investments into logistics should give it increasing advantage over its peers.
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