CHT — Interim / Quarterly Report 2021

Jan 26, 2022

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4Q 2021 Operating Results

Jan. 26, 2022

1

Disclaimer

STATEMENT REGARDING UNAUDITED FINANCIAL INFORMATION

The unaudited financial information under T-IFRSs in this presentation is preliminary and subject to adjustments and modifications. Adjustments and modifications to the financial statements may be identified during the course of the audit /review work, which could result in significant differences from this preliminary unaudited financial information.

NOTE CONCERNING FORWARD-LOOKING STATEMENTS

This presentation contains forward-looking statements. These statements constitute “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Statements that are not historical facts, including statements about Chunghwa’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Investors are cautioned that actual events and results could differ materially from those statements as a result of a number of factors including, but not limited to the risks outlined in Chunghwa’s filings with the U.S. Securities and Exchange Commission on Forms F-1, F-3, 6-K and 20-F, in each case as amended. The forward-looking statements in this presentation reflect the current belief of Chunghwa as of the date of this presentation and Chunghwa undertakes no obligation to update these forward-looking statements for events or circumstances that occur subsequent to such date, except as required under applicable law.

This presentation is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer or selling security holder and that will contain detailed information about the company and management, as well as financial statements.

SPECIAL NOTE REGARDING NON-GAAP FINANCIAL MEASURES

A body of generally accepted accounting principles is commonly referred to as "GAAP". A non-GAAP financial measure is generally defined by the SEC as one that purports to measure historical or future financial performance, financial position or cash flows but excludes or includes amounts that would not be so adjusted in the most comparable U.S. GAAP measure. We disclose in this report certain non-GAAP financial measures, including EBITDA. EBITDA for any period is defined as consolidated net income (loss) excluding (i) depreciation and amortization, (ii) total net comprehensive financing cost (which is comprised of net interest expense, exchange gain or loss, monetary position gain or loss and other financing costs and derivative transactions), (iii) other expenses, net, (iv) income tax, (v) cumulative effect of change in accounting principle, net of tax and (vi) (income) loss from discontinued operations.

In managing our business we rely on EBITDA as a means of assessing our operating performance. We believe that EBITDA can be useful to facilitate comparisons of operating performance between periods and with other companies because it excludes the effect of (i) depreciation and amortization, which represents a non-cash charge to earnings, (ii) certain financing costs, which are significantly affected by external factors, including interest rates, foreign currency exchange rates and inflation rates, which have little or no bearing on our operating performance, (iii) income tax and tax on assets and statutory employee profit sharing, which is similar to a tax on income and (iv) other expenses or income not related to the operation of the business.

EBITDA is not a measure of financial performance under U.S. GAAP or T-IFRSs. EBITDA should not be considered as an alternate measure of net income or income from operations, as determined on a consolidated basis using amounts derived from statements of operations prepared in accordance with U.S. GAAP or T-IFRSs, as an indicator of operating performance or as cash flows from operating activity or as a measure of liquidity. EBITDA has material limitations that impair its value as a measure of a company's overall profitability since it does not address certain ongoing costs of our business that could significantly affect profitability such as financial expenses and income taxes, depreciation, pension plan reserves or capital expenditures and associated charges. These non-GAAP measures are not in accordance with or an alternative for GAAP financial data, the non-GAAP results should be reviewed together with the GAAP results and are not intended to serve as a substitute for results under GAAP, and may be different from non-GAAP measures used by other companies.

2

“Rise on Together, 2021” strategic transformation

3 years of consecutive growth in

EBITDA Margin, Net Income and EPS

IDC Revenue CAGR 5% Mobile Service Revenue Core Turn around Emerging Cloud Revenue CAGR 5% Business Business Broadband Revenue CAGR 2% ICT Gross Profit CAGR 17% Mobile Churn Rate 1.52% (2019) 0.79% Backbone Network. Customer-centric Value Creation, 100% SDN ready commenced in 2019 FTTH Coverage 88% (2021 vs. 2019) Cost Core Revenue Per Head 6% NPS (eShop)+24.9 Optimization Competency (2021 vs.2019) Profit Per Head 15% NPS (Store)+11

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+ #1[Recognized by] NCC, Speedtest, & OpenSignal

3

Organizational transformation

Customer Centric

Business Groups

• Consumer

• • Enterprise

• International

 Consumer, Enterprise and Focus on International Business Groups business develop businesses under the competitiveness customer-centric spirit

Technology Groups

• Network Technology

• • Data Communications • Telecommunication Laboratories

• Network Technology Group, Focus on

• Data Communications Group and Telecommunication technology Laboratories serve to competitiveness support business development

Headquarters

• Headquarters maximize Focus on functions of devising strategies strategic and resource allocation competitiveness

4

Business Overview

5

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Penetration rate
Home Wi-Fi Devices
YoY 167% ≈ 20%
Home
Mobile
Wi-Fi
(Mesh)
Always
Broadband
Connected
Fixed
Broadband MOD
300Mbps ↑ Customers ARPU and revenue
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300Mbps ↑ Customers YoY 45%

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#1 Mobile Services Provider

#1 Mobile Revenue[(a)(b)(c)]

#1 Mobile Subscribers[(c)]

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Other,
16.0%
CHT CHT,
38.9% 36.1%
FET,
Other
23.9%
Source: Company data, MOTC and NCC statistics TWM,
Note : 24.0%
a) Market share as of Nov. 2021
b) Revenues are based on T-IFRSs
c) Excluding IoT SIMs
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a) Market share as of Nov. 2021
b) Revenues are based on T-IFRSs
c) Excluding IoT SIMs
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Better Performance in Mobile Service Revenue

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(Billion)
18 6%
16
4%
14
12 2%
10
0%
8
6 -2%
4
-4%
2
0 -6%
4Q20 1Q21 2Q21 3Q21 4Q21
CHT TWM FET CHT TWM FET
revenue
YoY growth rate
(before IFRS 15 adoption)
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Note : For TWM and FET, mobile service revenue is derived from mobile ARPU under Residual Value Method times the average subscriber number.

Highest Subs & Lowest Churn[(d)]

(Thousand)

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14,000 1.40%
12,000 1.20%
10,000 1.00%
8,000 0.80%
6,000 (e) 0.60%
4,000 0.40%
2,000 0.20%
- 0.00%
Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21
CHT TWM FET CHT TWM FET
Subscribers Churn rate
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Note : d)Churn rate for postpaid subscribers e)Excluding the one-time round-trip adjustment of IoT SIMs

7

Fixed Broadband Service

Broadband Revenue

Fixed Broadband Subs

Continued ARPU growth for 9 consecutive quarters

Fiber ≥300M YoY 45 %

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ARPU( NT$)
8,000 733 734 742 749 755 800
7,000 700 4,348 4,339 4,358 4,363 4,354
6,000 5,416 5,456 5,535 5,640 5,650 600 10% 11% 12% 14% 15%
5,000 500 30% 30% 31%
31% 31%
4,000 4,578 4,559 4,631 4,697 4,709 400
3,000 300
2,000 200 43% 42% 41% 40% 39%
1,000 100
17% 17% 16% 15% 15%
0 0
4Q20 1Q21 2Q21 3Q21 4Q21 Dec 20 Mar 21 Jun 21 Sep 21 Dec 21
(NT$ mn) Broadband Access Data Communications ARPU
ADSL Fiber (<100M)
(Thousand)
Note1 : Broadband ARPU is calculated as access plus ISP Fiber (≥100M~<300M) Fiber (≥300M)
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Note1 : Broadband ARPU is calculated as access plus ISP Note2 : Revenue is calculated based on T-IFRSs

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MOD/ IPTV Service

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Packaging SVODs ALL PASS
to enhance SVOD revenue 259
4,000 1000 260 256
900 250
3,500 915 906 904 911 921 947 925 246
800
3,000 240
700 238
240
2,500 600 232
2,085 2,080 2,069 2,065 2,068 2,067 2,061
2,000 500
400
1,500
220
300
1,000
200
500
100
- 0 200
2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21
(Thousand) MOD Subs MOD Revenue (NT$ mn) SVOD revenue (NT$ mn)
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9

ICT Business

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4Q20
Large
projects
revenue
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YoY 15.9%

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15.9%
雲端
4Q20 1Q21 2Q21 3Q21 4Q21
cloud services
Excluding large project impact YoY
20.2%
Cyber Security
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YoY 22.1%

YoY 3.3%

YoY 1.7%

4Q20 1Q21 2Q21 3Q21 4Q21

Note: Excludes impact of large projects

10

Financials Overview

11

Financials: Income Statement Highlights

	Consolidated	Consolidated	Consolidated	Consolidated	Consolidated	Consolidated
(NT$bn)	Q4 2021	Q4 2020	Growth %	2021	2020	Growth %
Revenues	59.89	59.48	0.7	210.48	207.61	1.4
Operating Costs and Expenses	48.42	50.30	( 3.7)	165.18	166.84	(1.0)
Income from Operations	11.10	10.50	5.8	44.93	42.36	6.1
Net Income2	8.63	8.21	5.1	35.75	33.41	7.0
EPS	1.11	1.06	5.1	4.61	4.31	7.0
EBITDA	20.86	19.90	4.8	83.33	78.71	5.9
EBITDA Margin (%)	34.82	33.45		39.59	37.91

Note:

1. Financials are prepared in accordance with T-IFRSs. Figures for 2021 are unaudited.

2. Net income attributable to owners of the parent.

3. EBITDA = operating income + Depreciation & Amortization.

4. The calculation of growth rates is based on NT$mn.

12

Financials: Business Segment Revenues

(NT$bn) Q4 2021	(NT$bn) Q4 2021	Q4 2020	Growth %	2021	2020	Growth%
Domestic Fixed	18.12	20.24	(10.4)	64.78	69.47	(6.7)
Local	5.86	6.04	(3.0)	23.76	24.46	(2.8)
DLD	0.48	0.49	(1.4)	1.94	2.02	(3.7)
Broadband Access	4.71	4.58	2.9	18.60	18.14	2.5
MOD	0.93	0.90	2.3	3.71	3.64	1.9
ICT and Other Services	5.01	7.11	(29.6)	12.36	16.94	(27.0)
Mobile	27.20	24.96	9.0	95.25	90.23	5.6
Mobile Service Revenue	14.82	14.21	4.3	58.05	56.72	2.3
Sales of Mobile Handsets and Wearable Devices	11.52	10.30	11.9	35.41	32.11	10.3
ICT and Other Services	0.86	0.45	90.0	1.79	1.39	28.2
Internet	9.39	9.72	(3.4)	33.08	32.12	3.0
Data Communications	5.65	**5.42 **	4.3	22.28	21.45	3.9
Application VAS	2.88	3.54	(18.7)	8.39	8.33	0.7
Services Provided to the government	0.85	0.76	12.7	2.41	2.34	3.0
International Fixed	2.64	2.14	23.7	9.10	8.70	4.6
ILD	0.51	0.55	(8.7)	2.15	2.48	(13.0)
Leased line	0.58	0.55	5.1	2.21	2.17	1.9
ICT and Other Services	0.73	0.24	203.3	1.41	0.89	58.4
Others	2.54	2.43	4.4	8.27	7.10	16.5
Total	59.89	59.48	0.7	210.48	207.61	1.4

Note:

1. Financials are prepared in accordance with T(IFRSs. Figures for 2021 are unaudited.

2. The calculation of growth rates is based on NT$ mn.

3. Businesses shown under each segment are highlighted; therefore, sum of the highlighted revenues is not equal to the total.

13

Financials: Costs & Expenses

	Consolidated	Consolidated	Consolidated	Consolidated	Consolidated	Consolidated
(NT$bn)	Q4 2021	Q4 2020	Growth %	2021	2020	Growth %
Operating Costs	40.11	42.33	(5.2)	135.11	137.03	(1.4)
Operating Expenses	8.31	7.97	4.2	30.07	29.81	0.9
Marketing	5.84	5.51	6.0	21.09	20.96	0.6
General and Administrative	1.49	1.49	(0.4)	5.29	5.00	5.8
R&D Expense	0.98	0.97	1.2	3.69	3.85	(4.2)
Total	48.42	50.30	(3.7)	165.18	166.84	(1.0)

Note:

1. Financials are prepared in accordance with T-IFRSs. Figures for 2021 are unaudited.

2. The calculation of growth rates is based on NT$ mn.

14

Financials: Cash Flow

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Consolidated
Growth Growth
(NT$bn) Q4 2021 Q4 2020 2021 2020
% %
Net Cash Flow from
26.89 27.55 (2.4) 74.86 74.46 0.5
Operating Activities
CapEx 12.30 9.48 29.7 35.33 23.51 50.3
Free Cash Flow 14.59 18.07 (19.3) 39.53 50.95 (22.4)
Cash and Cash Equivalents
39.82 30.42 30.9 39.82 30.42 30.9
at the end of period
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Note:

1. Financials are prepared in accordance with T-IFRSs. Figures for 2021 are unaudited.

2. The calculation of growth rates is based on NT$ mn.

3. Free cash flow is calculated by subtracting CapEx from Net Cash Flows from Operating Activities.

15

Operating Results vs. Forecast

Consolidated	Consolidated	Consolidated	Consolidated	Consolidated	Consolidated
(NT$bn) Q4 2021 (A)	Q4 2021 （E）	Achieving %	2021 (A)	2021 (E)	Achieving %
Revenues 59.89 59.07~59.32		101.0~101.4	210.48	209.26~209.72	100.4~100.6
Operating Costs and Expenses 48.42 48.05~48.10		100.7~100.8	165.18	167.58~167.66	98.5~98.6
Income from Operations 11.10 11.20~11.65		95.3~99.1	44.93	41.72~42.51	105.7~107.7
Net Income2 8.63 8.67~9.41		91.7~99.5	35.75	32.60~34.09	104.8~109.7
EPS 1.11 1.12~1.22		91.7~99.5	4.61	4.20~4.40	104.8~109.7
EBITDA 20.85 20.73~21.18		98.5~100.6	83.33	79.90~80.65	103.3~104.3
EBITDA Margin (%) 34.82 35.10~35.70			39.59	38.18~38.46

Note:

1. Financials are prepared in accordance with T-IFRSs. Figures for 2021 are unaudited.

2. Net income attributable to owners of the parent.

3. EBITDA = operating income + Depreciation & Amortization.

16

2022 Forecast

Consolidated	Consolidated	Consolidated
(NT$bn) 2022（E）	2021	Growth %
Revenues 212.80~214.00 210.48		1.1~1.7
Operating Costs and Expenses 168.42~168.81 165.18		2.0~2.2
Income from Operations 44.55~46.08 44.93		-0.8~2.6
Net Income2 34.11~36.04 35.75		-4.6~0.8
EPS 4.40~4.65 4.61		-4.6~0.8
EBITDA 82.91~84.44 83.33		-0.5~1.3
EBITDA Margin (%) 38.96~39.46 39.59

Note :

1. Financials are prepared in accordance with T-IFRSs. Figures for 2021 are unaudited.

2. Net income attributable to owners of the parent.

3. The information therein is predictive and will not necessarily be fully realized in the future, and that reference to the company's significant accounting policy and summary of basic assumptions shall be made for further details.

17

Effective and Efficient Capital Expenditure

Capital Expenditure

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NT$
bn
20%
50
17.2%
16.8%
36.8
40
35.3
13.2%
11.3%
1.8
28.6 11.6% 0.5
2.9
30 1.1
1.3 24.2 23.5 22.3 10%
2.8 1.8 1.0
1.1 0.8
16.8
20 1.4 1.4
10.7
7.8 8.8
10
12.7 12.1 11.5 13.3 14.5
0 0%
2018 2019 2020 2021 2022 (E)
CapEx
CapEx as % of Revenue
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Budgeted CapEx for 2022- NT$36.8 bn

 Mobile - NT$14.5 bn  Non-mobile –NT$ 22.3 bn

Continue to focus on core businesses for future investments in 5G,FTTx, IDC/Cloud and Submarine cable

Note: Numbers or percentages are on cash basis.

18

Awards and Recognition

• Best 5G Service Provider in Taiwan

• Winner of Speedtest “Fastest 5G ” and “Fastest Mobile Network” in Taiwan in Q3-Q4 2021

• Winner of Opensignal “5G Download Speed” and “Fastest 5G Upload Speed,” as well as “5G Game Experience,” “5G Video Experience,” and “5G Voice App Experience”

• Winner of Frost & Sullivan “2021 Taiwan Private 5G Network Customer Value Leadership Award” – the first and the only winner among Taiwan operators

• Acknowledged ESG Practice and Corporate Sustainability

• Awarded by The Asset (HK) with the Jade Award in The Asset ESG Corporate Award 2021

• the only Asian telecom operator to receive the top award

• Awarded by Capital Finance International (UK) with Best Telecom Holding Governance - Asia 2021

• Won multiple categories of 2021 Taiwan Corporate Sustainability Awards by Taiwan Institute for Sustainable Energy

• Won 2021 Global Corporate Sustainability Awards by Taiwan Institute for Sustainable Energy in categories of English Sustainability Reports and Pandemic Response

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Q&A

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