TWM — Interim / Quarterly Report 2021

Aug 5, 2021

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Taiwan Mobile Co., Ltd.
2Q21 Results Summary
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Disclaimer

The information contained in this presentation, including all forwardis to without whether as a looking information, subject change notice, result of new information, future events or otherwise, and Taiwan Mobile Co., Ltd. (the “Company”) undertakes no obligation to update or revise the information contained in this No or presentation. representation warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is the information intended to be a complete statement of the Company, markets or developments referred to in this presentation.

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2Q21 Highlights

Telecom EBITDA Robust e-commerce turned YoY positive momentum

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Solid revenue growth despite WFH

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Consolidated +10% EBITDA YoY 2Q21

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5G Mobile Business – Growth Engine #1

2Q21 results

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Service Adoption

Postpaid Penetration

Differentiated Bundles

Double & momobile Play

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5G Upselling Smartphone Postpaid ARPU turned YoY positive

Postpaid Churn

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1.18%
0.96%
0.85%
0.77%
2019 2020 1Q21 2Q21
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momo – Growth Engine #2

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Revenue EBITDA
YoY
YoY
(NT$m) (NT$m)
+41%
+103%
-2%
+19%
Total
Others
+45%
+129%
E-commerce
Satellite E-commerce E-commerce
Warehouses (#) Total Transaction (#) 15.0% Profitability
23 +48% EBITDA 10.0% 5.5%
+6 YoY YoY Mar gi 5.0% n 3.5%
2Q21 2Q21 0.0% 2Q20 2Q21
-5.0%
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Broadband – Growth Engine #3

2Q21 Basic TV Subscribers

2Q21 Penetration Rate

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('000) Subscribers YoY
TFNM 542 -1.7%
Top 4 MSO 3,409 -2.6%
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Source: Market intelligence

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53.4%
50.2%
44.6%
41.2%
Top 4
Top 4
TFNM MSO TFNM MSO
DTV BB
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Source: Market intelligence

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Revenue
(NT$mn) YoY
+1%
Total
Broadband +12%
Pay-TV &
-3%
Others
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EBITDA
(NT$mn) YoY
-1%
++1212.3%
+7%
+7%
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Accelerated Transformation amid COVID-19

May 2021 Level 3 Alert

Post-pandemic

Change of Working Style

Hybrid Workplace

Work From Home

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Back office and Northern Taiwan customer service >90%

Store Traffic

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Decreased initially but Stabilized in June

New Work Model

• WFH to continue

• Shared Workspace

• Virtual Channels

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Performance by Business

NT$bn	Revenue	EBITDA
	Telecom CATV momo Total1	Telecom CATV momo Total1
2Q21	15.06 1.55 22.26 38.42	6.28 0.73 1.34 8.49
% of total	39% 4% 58% 100%	74% 9% 16% 100%
2Q21 YoY	4.9% 0.5% 40.6% 22.6%	1.5% -1.1% 103.0% 10.1%
1Q21 YoY	1.8% 0.6% 21.6% 10.9%	-9.1% -0.4% 42.6% -3.1%

1. The sum of each account of telecom, CATV and momo does not equal to the consolidated total number due to other revenue and inter company eliminations.

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Results Summary

NT$bn	2Q21	2Q21	2Q21
	Amount	QoQ	YoY
Revenues 38.42 9% 23%
Cash Cost & Expense (29.93) 9% 27%
Operating Income 4.26 17% 3%
Non-op. Income (Exp.) (0.14) nm 2741%
Pre-tax Income 4.12 13% 0%
Net Income 2.84 0% -7%
EPS1 (NT$) 1.01 0% -6%
EBITDA 8.49 8% 10%

1. EPS is based on share count of 2.814bn in 2Q21

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Balance Sheet Analysis

NT$bn 2Q21 1Q21 2Q20 Total Assets 188.93 185.00 177.39 Current Assets 35.79 31.69 30.27 - Cash & Cash Equivalents 15.75 11.36 8.24 - Receivable & Contract Assets 14.28 13.97 13.77 - Inventories 3.92 4.66 3.72 - Other Current Assets 1.83 1.70 4.54 Non-current Assets 153.14 153.31 147.12 - Long-term Investment 4.61 4.05 3.57 - Property and Equipment 46.36 46.32 38.55 - Right-of-use Assets 9.39 9.42 9.21 - Concession 62.65 63.73 66.96 - Other Non-current & Contract Assets 30.13 29.80 28.84 2Q21 1Q21 2Q20 Current Ratio 52% 57% 50% Net Debt to Equity 78% 76% 81% Net Debt to EBITDA (x) 1.62 1.83 1.68 ROE1 (annualized) 16% 15% 18%	NT$bn 2Q21 1Q21 2Q20 Total Assets 188.93 185.00 177.39 Current Assets 35.79 31.69 30.27 - Cash & Cash Equivalents 15.75 11.36 8.24 - Receivable & Contract Assets 14.28 13.97 13.77 - Inventories 3.92 4.66 3.72 - Other Current Assets 1.83 1.70 4.54 Non-current Assets 153.14 153.31 147.12 - Long-term Investment 4.61 4.05 3.57 - Property and Equipment 46.36 46.32 38.55 - Right-of-use Assets 9.39 9.42 9.21 - Concession 62.65 63.73 66.96 - Other Non-current & Contract Assets 30.13 29.80 28.84 2Q21 1Q21 2Q20 Current Ratio 52% 57% 50% Net Debt to Equity 78% 76% 81% Net Debt to EBITDA (x) 1.62 1.83 1.68 ROE1 (annualized) 16% 15% 18%	NT$bn 2Q21 1Q21 2Q20 Total Assets 188.93 185.00 177.39 Current Assets 35.79 31.69 30.27 - Cash & Cash Equivalents 15.75 11.36 8.24 - Receivable & Contract Assets 14.28 13.97 13.77 - Inventories 3.92 4.66 3.72 - Other Current Assets 1.83 1.70 4.54 Non-current Assets 153.14 153.31 147.12 - Long-term Investment 4.61 4.05 3.57 - Property and Equipment 46.36 46.32 38.55 - Right-of-use Assets 9.39 9.42 9.21 - Concession 62.65 63.73 66.96 - Other Non-current & Contract Assets 30.13 29.80 28.84 2Q21 1Q21 2Q20 Current Ratio 52% 57% 50% Net Debt to Equity 78% 76% 81% Net Debt to EBITDA (x) 1.62 1.83 1.68 ROE1 (annualized) 16% 15% 18%
Current Ratio	52%	57%
Net Debt to Equity	78%	76%
Net Debt to EBITDA (x)	1.62	1.83
ROE1 (annualized)	16%	15%

NT$bn 2Q21 1Q21 2Q20	NT$bn 2Q21 1Q21 2Q20	NT$bn 2Q21 1Q21 2Q20	NT$bn 2Q21 1Q21 2Q20
Liabilities	122.63	109.61	110.89
Current Liabilities	68.35	55.35	60.18
- ST Debts	24.14	25.13	21.69
- Accounts & Notes Payable	11.64	8.48	8.35
- Current Lease Liabilities	3.65	3.64	3.53
- Other Current Liabilities	28.93	18.10	26.61
Non-current Liabilities	54.28	54.26	50.71
- Long-term Borrowings	43.65	43.70	40.37
- Non-current Lease Liabilities	5.77	5.79	5.68
- Other Non-current Liabilities	4.85	4.77	4.66
Shareholders' Equity	66.30	75.39	66.50
Paid-in Capital	35.12	35.12	35.09
Capital Surplus	16.34	18.91	18.68
Legal Reserve	31.50	30.17	30.17
Treasury Shares	(29.72)	(29.72)	(29.72)
Un-appropriated Earnings	0.00	0.00	0.00
Non-controlling Interest	6.77	7.04	6.02
Retained Earnings & Others2	6.28	13.85	6.24

1. ROE = Accumulated Net Income (Annualized) /Average Shareholders' Equity

2. Including accumulated profits and other equity items.

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Cash Flow Analysis

NT$bn 2Q21 1Q21 2Q20	NT$bn 2Q21 1Q21 2Q20	NT$bn 2Q21 1Q21 2Q20	NT$bn 2Q21 1Q21 2Q20
Operating	10.03	6.00	7.47
Investing	(3.40)	(2.33)	(1.54)
Financing	(2.23)	(3.08)	(6.79)
NT$bn 2Q21 1Q21 2Q20
Pre-IFRS 16 Operating1	9.03	4.95	6.50
Cash CAPEX2	(3.39)	(2.93)	(1.90)
Free Cash Flow2	5.65	2.01	4.60

1. “Lease expenses” previously under operating activities was reclassified into financing cash flow and investing cash flow (to a lesser extent) in accordance with IFRS 16 in 2019.

2. Excluding 5G License Fees

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Awards and Recognitions

The first telecom service provider in Taiwan to reach 50% 5G population coverage, certified by the National Communications Commission (NCC). Honored with Global Views Monthly’s “ESG Comprehensive performance – Telecom Industry” award for 3 consecutive years and received the 2021 “Model Award” in the Education Promotion category.

Ranked among the top 5% of listed companies in the “Corporate Governance Evaluation” conducted by the Taiwan Stock Exchange and Taipei Exchange for 7 years in a row. A constituent of Taiwan Index Plus Corporation’s “FTSE4GOOD TIP Taiwan ESG Index” for 4 consecutive years. Ranked Top 10 in the “Greater China Business Sustainable Index” by The Chinese University of Hong Kong (CUHK) Business School’s Centre for Business Sustainability . (CBS) and National Chengchi University (NCCU) College of Commerce Sinyi School

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Key Message

We have weathered through telecom EBITDA compression and restored its YoY growth in 2Q21, while accelerating momo’s EBITDA upswing. This turnaround in our operations shows our strategic resilience amid the pandemic. The societal shift to “everything from home”, where the world increasingly relies on digital connectivity for work, education and more will lay the foundation for our continuous expansions going forward. In this new normal, our accelerated transformation into a regional tech+telco will us for even faster while further group position growth creating longterm value for shareholders.

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