Yvonne Li President
4904 (TWSE)
2017 3Q Investor Update
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Disclaimer
This presentation contains forward-looking statements. These forward-looking
statements are subject to risks, uncertainties and assumptions, some of which are
beyond our control. Actual results may differ materially from those expressed or
implied by these forward-looking statements. Because of these risks, uncertainties and
assumptions, the forward-looking events and circumstances discussed in this
presentation might not occur in the way we expect, or at all. You should not place
undue reliance on any forward-looking information.
In preparing the information herein, FET have relied upon and assumed, without
independent verification, the accuracy and completeness of all information available
from public sources or which was provided to FET or which was otherwise reviewed by
FET. Neither FET nor its advisors have made any representation or warranty as to the
accuracy or completeness of such information and nor do they assume any
undertaking to supplement such information as further information becomes available
or in light of changing circumstances. None of FET, nor any of their respective
affiliates, advisers or representatives shall have any liability whatsoever (in negligence
or otherwise) for any loss howsoever arising from any use of this presentation or its
contents or otherwise arising in connection with this presentation. Neither this
presentation nor any of its contents may be reproduced to a third party without the
prior written consent of FET.
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Agenda
I. Market Overview
II. 2017 3Q Performance
III. Business Update
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Mobile Market in Taiwan Market Dynamic
6.0 4.2 2.4 1.0 0.4 0.0
22.7 24.823.5
16.8
10.57.4
3.4
11.6
18.121.4
2012 2013 2014 2015 2016 17-
Aug
2G 3G 4G
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Highest Postpaid APRU (1-3Q17) Total Mobile Subs in Taiwan(1)
Leading EBITDA YoY Growth (1-3Q17)
Source: (1) NCC website
29.4 29.3 28.9 29.0 28.7 878
595850
TWM FET CHT
-3.7%-2.8%
TWM FET CHT
#1
$878
#1
+1.0%
28.75
Unit: mn
74%
26%
NCC>>統計資料>>通訊類>>行動通信業務>>行動通信業務客戶統計數(ODT)
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Agenda
I. Market Overview
II. 2017 3Q Performance
III. Business Update
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Operational Performance Leading 4G Adoption
4G 21.7%
78.3%
Postpaid Subscriber Breakdown FET: The Fastest 4G Adoption(1)
(1) FET 4G Adoption means 4G postpaid penetration among big 3 operators
FET’s total subscribers: 7,225k
4G Commercial Launch
#1
78%
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3Q16 4Q16 1Q17 2Q17 3Q17
Leading Postpaid ARPU (NT$) % of Postpaid Customer Using Data
#1
$878
Operational Performance Still the Highest APRU in the Market
87%
55%
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Financial Performance Strive for Profitability
7,524 7,2627,2427,1886,362
32.3% 32.0%33.0%
26.4%
31.9%
3Q16 4Q16 1Q17 2Q17 3Q17
3,207
2,8542,9172,836
2,180
3Q16 4Q16 1Q17 2Q17 3Q17
EBITDA (NT$mn) and Margin % Net Income (NT$mn)
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Consolidated Financial Result 3Q17 & 1-3Q17 Result vs. Guidance
Item
Unit: NT$ mn, except
for EPS
3Q17
Result YoY %
Achieve-
ment %
1-3Q17
Result YoY %
Achieve-
ment %
▶Total Revenue 22,865 1.9% 98.4% 67,281 4.2% 97.7%
▶Service Revenue 17,055 4.6% 97.7% 51,403 4.3% 99.0%
▶EBITDA 7,262 3.5% 100.2% 21,692 1.0% 100.3%
▶Net Income 2,854 11.0% 100.3% 8,607 6.6% 100.4%
▶EPS(1) $0.88 11.0% 100.3% $2.64 6.6% 100.4%
Source: Company Data (1) EPS was based on current outstanding shares of 3,258,501K
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As of 3Q17 As of 2Q17
Consolidated Financial Result 3Q17 Financial Stats
Cash & Cash Equivalents
Available-for-Sale Financial Assets &
Derivatives
Total Borrowing
Net Debt(1)
Shareholders’ Equity
Net Debt to EBITDA (x)
Free Cash Flow – YTD(2)
Cash-based Capex – YTD
EPS(NT$) – YTD
(NT$ mm unless otherwise stated)
7,254
632
33,569
25,683
68,181
0.92x
14,081
6,523
$2.64
(1) Net Debt= Total Borrowing – (Cash and Cash Equivalent +Available-for-Sale Financial Assets & Derivatives )
(2) Free Cash Flow = Operating Cash flow- acquisition of fixed-asset & intangible asset
13,095
617
33,259
19,547
65,303
0.69x
8,406
4,547
$1.77
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Agenda
I. Market Overview
II. 2017 3Q Performance
III. Business Update
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2017 3Q Honors and Achievements
Won #1 Top Service Award 2017 - Telecommunications from Next Magazine for 5 consecutive years
Honored with the best practice of Direct Carrier Billing from Google
Garnered the "2017 Top CSP (Cloud Solution Provider) Direct Partner" Award by Microsoft
1st operator to obtain
NCC’s approval for 040
IoT gateway numbers for
IoT device connections
using NB-IoT technology
Demonstrated advanced
progresses in 5G lab via
LAA (Licensed-Assisted
Access) technology and
Mobile Edge Computing
solutions
Shortlisted “The
Innovation Award-
Operator” for the World
Communication Awards
2017
Established green energy
alliances with the electric
scooter maker ‘Gogoro’
to build the first solar cell
exchange station in
Taiwan
Technology Services Innovation
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iPhone Update Positive to ARPU
88%
Sep-16 Sep-17
92%
17% 20%
24%
33%
3Q14 3Q15 3Q16 3Q17
% of active iPhones accounts 1/3 of total smartphones.
% of new iPhone takers subscribe rate plan $999 and above
is increasing vs. a year ago.
% of active iOS
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% of iPhone takers signed up $999+
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Q & A
Websites email
Investor Relations
[email protected] http://corporate.fetnet.net
http://www.fetnet.net
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