4904 (TWSE) 2021 2Q Investor Update - Far EasTone Telecom
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4904 (TWSE) 2021 2Q Investor Update Chee Ching, President Sharon Lin, CFO & Gary Lai, IR Far EasTone Telecom
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.
1
FET 1H Performance
Overview
AGENDA Business Highlights
2H Priorities
2
Taiwan’s Mobile Market
Total Mobile Customers(1) Mobile Service Revenue of Big 3(2)
millions NT$mn, %
29.5 38,343 38,184
29.1 29.1 29.2 29.3 29.4 37,592 37,747 38,037 37,849
1.6% YoY
-1.3%
-3.4%
-5.5% -6.5% -5.5%
1Q20 2Q20 3Q20 4Q20 1Q21 May21 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21
With the market saturated, mobile Big 3 combined mobile service revenue
penetration in Taiwan reached 126% turned around in 2Q21, while FET took
the lead to turn positive in March
Source: (1) Total market mobile customer data from NCC excluding NB-IoT numbers
(2) Mobile service revenue from operators‘ respective factsheet: CHT’s was based on fair-value method while TWM &FET used residual value method. 3
FET Solid 1H Performance
Item 2021 2Q 2021 2Q 2021 1H 2021 1H
Ach. Rate % Ach. Rate %
Unit: NT$ mn, except for EPS Result Guidance Result Guidance
Total Revenue 19,498 19,208 101.5% 40,334 39,393 102.4%
EBITDA 6,987 6,652 105.0% 13,786 13,284 103.8%
Net Income 1,973 1,636 120.6% 3,784 3,283 115.2%
EPS (NT$) 0.61 0.50 120.6% 1.16 1.01 115.2%
Item 2021 1Q 2021 2Q
Unit: NT$ mn, unless otherwise stated
Improving net debt and
Net Debt 63,874 61,520 Net Debt to EBITDA ratio
Net Debt to EBITDA(x)(1) 2.33x 2.24x Free cash flow remains healthy
Free Cash Flow(2) – YTD 3,868 6,620 Capex in-line with guidance
Cash-based Capex – YTD 2,155 5,303
Note: (1) Net Debt to EBITDA in accordance with IFRS 16; (2) Free Cash Flow excluding 5G license fees and in accordance with IFRS 16. 4FET Mobile Service Growth Resumed
Mobile Service Rev and Growth % Postpaid and Blended ARPU
NT$mn, % NT$ Postpaid ARPU 0.5%
Blended ARPU YoY
1.6%
12,078 12,072 713 703 698 704 701 706 YoY
11,876 11,796 11,980 11,933 569
568 560 558 565 563
1.7% YoY
-1.2%
-3.2%
-5.0% -5.7% -5.3%
1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21
FET mobile service revenue turned YoY FET blended ARPU and postpaid ARPU
positive in March and saw 1st quarter resumed growth in March and May,
improvement in 2Q21 respectively
5FET Financial Highlight
Total Revenue and Growth % EBITDA and Growth %
NT$mn NT$mn
22,807
20,836
19,389 18,675 18,630 19,498 7,003 6,885 6,812 6,900 6,799 6,987
7.5% 7.5%
4.4% YoY 1.5% YoY
-2.7% -2.9%
-6.9% -8.6%
-13.0% -6.3% -6.9% -5.3%
1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21
Total Revenue continued to grow YoY EBITDA rebounded 1.5% YoY mainly
driven by better handset sales & ICT attributed to margin improvement and
revenue cost optimization
Source: company data 6 FET 1H Performance
Overview
AGENDA Business Highlights
2H Priorities
7FET Postpaid customer # continues to grow
# of Postpaid Subscribers Postpaid Churn Rate
thousands %
1.3%
YoY
Record
5,407 5,417 5,430 low
5,361 5,361 5,377 1.3% 1.3%
1.1% 1.1%
1.0% 1.0%
1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21
# of postpaid customers continued to Average postpaid subscribers’ churn
grow in 2Q for the 11th consecutive rate continued to hit record-low
quarter @1.0%
8FET 1H 2021 – 5G Update
Approaching > 90% >7500 5G BTS
World-class
900k 5G subs; signed up for deployed; 90%
coverage in all 6
5G
targeting 1mn high rate plan;
major cities ; target performance
by end of >20% Monthly
Fee uplift for 90%+ nation wide 360 Mbps
August
renewals in 4Q 21
9FET New Economy – the growth engine
New Economy Revenue % 2021 1H Major Growth Areas
%
15% 16%
13%
10% Mobile Commerce
8% 37% YoY
5%
12% Revenue
YoY 6% YoY
Media services
Contract value 30% YoY
2016 2017 2018 2019 2020 2021 47% YoY
1H
1H new economy revenue grew 12% YoY; Direct Carrier Billing
exceeded 16% of the total 1H revenue 13% YoY
10Rising Smart ICT demands
Smart Health Smart Government 5G Private Network
Ministry of Health and Various Gov agencies going Demand for Private
Welfare (MoHW) has through Digital Network grew during
budgeted for 5G enabled Transformation pandemic
Telemedicine to be Needs arise from Core Optimized by design to
implemented for all rural communications and IT serve specific needs of a
areas. infrastructure, data broad array of enterprise
MoHW’s Mobile NHI warehousing, data platform, and industry verticals.
card(1) and Electronic to Cloud and Cyber Security Use 5G PN to enable Smart
Health Record trial to System. factory and greatly improve
support use of 5G “AC in Every Classroom”- the productivity for the
Telemedicine service Energy Management System entire production line.
Note: (1) NHI card means National Health Insurance card
11Major Awards Received in 2Q
#1 in Small & Carbon
Midcap Telecom Disclosure CDP Supplier
for Best CEO, Project Engagement
CFO, IR & ESG Grade B Rating A
Top 5% Taiwan Chain Stores &
Corporate The Best Franchise Association
Governance Innovation
Management Angel Award
Companies
for 7 years Silver Award for Best Service
12Support for Our Community
5G & Telemedicine for Help fight off Covid-19 with
Urban residents our IT & Network technology
Enabled telemedicine service in Taipei Provide cloud service for Covid-
(First in urban area) with Far Eastern 19 vaccination registration and
Memorial Hospital and 5 other Hs. reservation system
Set up 5G Covid-19 testing vehicles and Covid-19 Contacts tracing to
vaccination stations for real-time support government solutions
upload of COVID test results
Stabilize network for pandemic Remote Learning for rural
triggered usage surge students & those in need
Network Traffic increased by 30% YoY Donated SIM cards, Tablets,
and Traffic patterns changed wireless routers for rural
Deployed additional 4G network students for Remote learning
capacity for relief
13 FET 1H Performance
Overview
AGENDA Business Highlights
2H Priorities
141
Accelerate 5G coverage and
User penetration
2
Grow total customer value
– FET Mobile Circle
2H
3
Expand ICT business
Priorities through Cross-industry Alliance
4 Control Costs & Smart Capital
5 Enhance Customer Experience
15Q&A
For Further Information,
Websites email
http://corporate.fetnet.net Investor Relations
http://www.fetnet.net IR@fareastone.com.tw
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