Far EasTone Telecommunications Co., Ltd. · TWSE:4904
Far EasTone Telecommunications — Q2 2007 Earnings Presentation
15 slides from Far EasTone Telecommunications's earnings presentation, Aug 15, 2007
Slide 1: 2007 2Q Investor Update
4904 (TWSE) 2007 2Q Investor Update Jan Nilsson President August 15, 2007 4:00pm 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 mat
Slide 2: Agenda
Agenda I. 2007 Q2 Business Update II. 2007 Q2 Performance III. 2007 Q3 Forecast IV. Strengthen Cooperation with NCIC V. Management Highlight 3 WiMax License The Winner with the Lowest Bid WiMax License Bidding Result NCC has issued winner list of the six WiMax licenses on July 26, 2007 Among the inc
Slide 3: WiMax License: Full Scope Wireless Multimedia Operator
WiMax License Moving into a Full Scope Wireless Multimedia Operator Speed WiMAX Conference On-line Game IPTV 3G WiFi Mobile SNG E-Learning P2P 2.5G Video Multimedia 2G Call Download WAP SMS Voice Voice Text Image Video Multimedia Video Data Rate Graphic Streaming Plan to launch by the end of 2009 Al
Slide 4: Wireless Home Broadband Solution "FET Big Broadband"
Consumers’ Consumers’ Needs for All Information /Communication At Home and Beyond Anytime, Anywhere & Any Device Cheaper Price Integrated Services (voice, data & internet access) One Bill 7 Wireless Home Broadband Solution “FET Big Broadband” Broadband” Wireless Internet Access All PSTN Calls 1st fo
Slide 5: Seamless Wireless Broadband Access Beyond Traditional Telco
Seamless Wireless Broadband Access Beyond Traditional Telco Service (Content) Places What FET do Community Service “FET Big Broadband” Broadband” such as blog, instant Home (HSPA & WiFi) WiFi) messenger, dating Entertainment such as online In Car or Car portal services Convergence Traveling games an
Slide 6: Business Update: Transport Space and Prepaid MVNO
Transport Space Car Portal Car TV The World’s No. 1 Car Terminal – Navigation More than a Navigator!! Mobile Phone MP3 Notebook Accessories Commercial Bus Transportation Service 11 Business Update Prepaid MVNO Qware Communication Established Got final approval from NCC on July 3 Have soft launched i
Slide 7: Business Update: Capital Reduction
Business Update Capital Reduction Have been approved by FSC and effective on Aug. 10, 2007 Board has also approved the Capital Reduction Record Date on Dec. 31. 2007 Cash Expected to pay in March 2008 13 Agenda I. 2007 Q2 Business Update II. 2007 Q2 Performance III. 2007 Q3 Forecast IV. Strengthen C
Slide 8: Operational Performance
Operational Performance Regaining the Momentum Total Total Mobile Mobile Customer Customer ('000) 7,000 YOY growth +1.4% 6,000 5,941 6,018 6,038 6,050 6,041 6,058 6,059 6,083 6,000 5,902 5,861 5,871 5,971 5,000 4,000 Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- 06 06 06 06 06 06
Slide 9: Consolidated Financial Achievement
3G Help Data Usage Uptake 3G 3G Sub Sub Growth Growth 3G 3G Data Data Card Card Growth Growth (K subs) (subs) 1,200 1,090 20,000 985 15,873 1,000 899 809 15,000 800 728 11,952 648 10,727 585 9,227 600 524 10,000 8,309 447 7,367 406 6,401 363 400 276320 5,000 200 0 0 7 7 7 7 07 07 07 ov 6 D -06 ay 7
Slide 10: 2007 Q2 Financial Stats
Consolidated Financial 2007 2007 Q2 Financial Stats (NT$ mm unless otherwise stated) As of 2006 Q2 As of 2007 Q1 As of 2007 Q2 Cash & Cash Equivalents 11,038 11,263 15,325 Total Borrowing 6,970 3,976 3,955 Net Debt ─ ─ ─ Shareholders’ Equity 68,353 77,673 68,397 Debt/Capitalization(1) Ratio Gross
Slide 11: 2007 Q3 Consolidated Financial Forecast
2007 Q3 Consolidated Financial Forecast 2007 Q3 Forecast vs. 2007 Q2 Actual Item 2007 Q3 2007 Q2 QoQ % Unit: NT$ Million, except for EPS Forecast Actual Service Revenue 15,241 14,605 + 4.4% EBITDA 6,920 6,954 - 0.5% Service EBITDA Margin % 47.0% 48.9% ─ Pre-tax Income 3,695 3,873 - 4.6% EPS(1) $0.76
Slide 12: Proposed Deal Structure
Seamless Wireless Broadband Access Beyond Traditional Telco Service (Content) Places What FET do Community Service “FET Big Broadband” Broadband” such as blog, instant Home (HSPA & WiFi) WiFi) messenger, dating Entertainment such as online In Car or Car portal services Convergence Traveling games an
Slide 13: NCIC Key Financials and Synergies
NCIC Key Financials NT$mn 2004 2005 2006 2007 1H(2) Revenue 6,540 9,036 8,243 4,066 Operating loss (2,240) (1,983) (1,542) (610) Non-operating (1,668) 1,083 (2,161) 1,019 Net Income (1,761) (1,074) (3,356)(1) 322 EPS (NT$) ($0.37) ($0.23) ($0.71) $0.07 Total Asset 43,974 45,129 41,255 41,405(3) Tota
Slide 14: Application Process: Major Tasks in 2007
Application Process Major Tasks in 2007 Approved by Filing to Board Board 1) FTC Meeting’ Meeting’s meeting: Filing to Filing to 2) NCC Approval: Capital MOEA TSEC 3) IC “Share Swap Increase & 4) FSC Record Date” Date” Share Swap Aug 15 Aug-end Nov Nov-end Dec 27 Agenda I. 2007 Q2 Business Update II
Slide 15: Management Highlight and Q&A
Management Highlight High Yield with Building Momentum Capital FET FET Service Service Rev Rev in in 2007 2007 Regular(1) Yield(3) FET + Reduction = Dividend 12%+ $1.92(2) NT$mn 16,000 15,241 15,000 14,458 14,605 Capital Regular(1) Yield(3) TWM + Reduction = 14,000 Dividend 8.6% $2.4 13,000 12,000 C
Far EasTone Telecommunications — Q2 2007 Earnings Presentation on 6ix