Far EasTone Telecommunications Co., Ltd. · TWSE:4904

Far EasTone Telecommunications — FY2007 Earnings Presentation

12 slides from Far EasTone Telecommunications's earnings presentation, Feb 27, 2008

  1. Slide 1: 2007 4Q and Full Year Result Investor Update

    4904 (TWSE) 2007 4Q and Full Year Result Investor Update Jan Nilsson Vice Chairman and President February 27, 2008 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 o

  2. Slide 2: Taiwan Wireless Market Overview

    Agenda I. Market Overview II. 2007 Performance and Business Update III. Strategic Direction IV. 2008 Q1 Forecast V. Management Highlight 3 Taiwan Wireless Market Overview Wireless Wireless Market Market Revenue Revenue && Subs Subs Market Market Status Status Service Revenue (NT$mn) Subscribers (mn)

  3. Slide 3: Operational Performance: Subscribers

    Agenda I. Market Overview II. 2007 Performance and Business Update III. Strategic Direction IV. 2008 Q1 Forecast V. Management Highlight 5 Operational Performance Total Subscriber Subscriber Subscriber Growth Growth % % FET FET Mobile Mobile Subscriber Subscriber ('000) FET is regaining the 7,000 (Y

  4. Slide 4: ARPU & MOU; Non-Voice Performance

    Operational Performance ARPU & MOU Post-paid Post-paid APRU APRU Total Total Minutes Minutes of of Usage Usage (Total (Total MOU) MOU) NT$ 976 bn minutes 1,000 959 976 947 956 976 990 940 950 946 2.0 923 894 900 1.6 1.471.411.481.421.451.45 1.42 1.381.431.351.42 1.28 800 1.2 700 0.8 600 0.4 500 0.0

  5. Slide 5: Uptake of 3G; Consolidated Financial

    3G Uptake of 3G and Wireless Broadband Service 3G 3G Sub Sub Growth Growth 3G 3G && HSPA HSPA Data Data Centric Centric Growth Growth (K subs) (subs) 2,000 60,000 56,153 1,800 1,676 55,000 Avg. 5000- 5000-6000 51,311 YoY +220% 1,547 50,000 incremental subs 1,600 1,429 44,275 1,314 45,000 per month 1

  6. Slide 6: 2007 Q4 Financial Stats; Business Update

    Consolidated Financial 2007 2007 Q4 Financial Stats (NT$ mm unless otherwise stated) As of 2007 Q4 As of 2007 Q3 Cash & Cash Equivalents 10,278 6,749 Total Borrowing 3,051 3,925 Net Debt ─ ─ Shareholders’ Equity 80,415 71,714 Debt/Capitalization(1) Ratio  Gross (%) 3.7% 5.2%  Net (%) ─ ─ Free Cash

  7. Slide 7: Enter Personal Communications Market; New Lifestyle in Transportation Space

    Enter Personal Communications Market “Ogo” Ogo” - Young People’ People’s Blackberry Instant Messaging (Windows Live Messenger built- built-in) Ogo mail (POP 3) Browser / RSS Music player (MP3) Basic phone functions (2.5G) Special Detachable clips/hinge e-Dictionary (phase II) Could be music controll

  8. Slide 8: Hybrid MVNO; Prepaid and Postpaid MVNO

    Hybrid Mixes the Best Bits of Postpaid & Prepaid Position as 3G Postpaid rate plan Get a monthly allowance like Postpaid, while top up if it runs out out like Prepaid Product feature: precisely control customer’ customer’s monthly bill Launched in Nov’ Nov’08 and monthly GA reaches 13K Prepaid Domes

  9. Slide 9: Action to the Dynamic Environment

    Agenda I. Market Overview II. 2007 Performance and Business Update III. Strategic Direction IV. 2008 Q1 Forecast V. Management Highlight 17 Action to the Dynamic Environment The External Environment Our Strategic Action Rational market still, but ongoing competitive pressures Comprehensive rate plan

  10. Slide 10: Our Direction in the Battle Field

    Our Direction in the Battle Field Maintain Stable Revenue Share from Traditional Mobile Market and Grow from Internet going Mobile Focus on Enterprise and Home Segments for Usage Expansion and Subscriber Growth Build Geographic Footprint in Content and Media Area Continue to Lead in Transportation a

  11. Slide 11: 2008 Q1 Consolidated Financial Forecast

    2008 Q1 Consolidated Financial Forecast 2008 Q1 Forecast vs. 2007 Q1 & Q4 Item 2008 Q1 2007 Q4 2007 Q1 QoQ% YoY% Unit: NT$ Million, except for EPS Forecast Actual Actual Service Revenue 14,584 14,557 +0.2% 14,458 +0.9% EBITDA 6,440 6,586 - 2.2% 6,679 - 3.6% Service EBITDA Margin % 45.3% 46.7% ─ 47.7

  12. Slide 12: Management Highlight; Q&A

    Management Highlight Key Message Core business continue to be improving Working on integration towards future synergy Continue to focus on new service development with leading position The highest yield among Taiwan telcos Capital Regular Yield FET + Reduction = Dividend 12+% $1.92 23 Q&A For Furthe

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