Chunghwa Telecom Co., Ltd. (NYSE:CHT) Q3 2020 Earnings Conference Call October 30, 2020 3:00 AM ET Company Participants Angela Tsai - Senior Manager, Investor Relations Vincent Chen - Senior Executive Vice President and Chief Financial Officer Shui Kuo - President and Director Conference Call Participants Neale Anderson - HSBC Jack Hsu - SinoPac Securities Sara Wang - Morgan Stanley Kang Ma - Fidelity Ryan Chen - UBS Eddie Liu - Citi Operator Good afternoon, ladies and gentlemen. Welcome to Chunghwa Telecom ...

Financial Data and Key Metrics Changes - Total revenues decreased by 4.6% year-over-year in Q2 2020, while operating costs decreased by 6.6% [16] - Income from operations increased by 3%, and net income remained the same year-over-year [16] - EBITDA margin increased to 40.5% from 38.1% in the same period of 2019 [16] Business Line Data and Key Metrics Changes - Mobile service revenue experienced a small decrease quarter-over-quarter, primarily due to efforts to guide subscribers to adopt higher-priced plans [9] - Broadband migration to 300 megabits per second increased more than 30% year-over-year, with at Home WiFi subscriptions increasing 120% year-over-year [6][7] - IPTV and multi-platform services maintained over 2.08 million subscribers, with MOD revenue increasing 2.1% year-over-year [12] - ICT project revenue increased by 3.8% year-over-year, driven by large project revenue recognition [13] Market Data and Key Metrics Changes - The company saw growth in fixed broadband, cloud, and ICT services due to increased demand from remote work and study [8] - Digital channel assets and transactions increased by 92% year-over-year [8] - International mobile enrollment revenue continued to be affected by ongoing lockdowns [8] Company Strategy and Development Direction - The company launched its 5G service on June 30, 2020, aiming to innovate and provide services beyond standard offerings [6] - Plans to acquire more than one million 5G subscribers over the next year, leveraging its large enterprise customer base [9][10] - Focus on enhancing ICT training revenue contribution to stabilize overall performance [14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of COVID-19 on overall business but noted resilience in core business areas [8] - The company expects the mobile competition to remain stable, with no significant changes observed in the quarter [23] - Management remains optimistic about the potential for ARPU uplift as 5G adoption increases [26] Other Important Information - Cash flow from operating activities decreased by TWD 2.78 billion or 17.5% compared to the same period of 2019 [17] - The company plans to budget TWD 30.7 billion for CapEx in 2020, focusing on 5G-related expenditures [18] Q&A Session Summary Question: Cost outlook related to 5G launch - Management indicated that marketing expenses will increase as 5G services are promoted, but they will also look to offset costs [20][21] Question: Update on mobile competition - Management noted that competition remains stable, with no significant changes in pricing observed [23] Question: ARPU increase for 5G plans - Management confirmed that they are seeing an uplift in ARPU for customers adopting 5G plans [25] Question: CapEx outlook for 2021 - Management indicated that CapEx will likely increase due to the expansion of base stations, but specific figures were not disclosed [28][30] Question: Initial adoption rate of 5G plans - Management did not disclose specific numbers regarding the initial adoption rate of 5G subscribers [31] Question: Reason for net profit exceeding expectations - Management attributed the higher-than-expected net profit to a decrease in low-margin revenue, which helped improve margins [34][36] Question: Comparison of payments between new 5G subscribers and original payments - Management confirmed that they see an uplift in payments from new 5G subscribers compared to their previous 4G plans [42] Question: Impact of competition on MOD business - Management acknowledged that the MOD subscriber base has remained stable, but competition from OTT services has had some impact [43]

Financial Data and Key Metrics Changes - In Q1 2020, total revenues decreased by 6.2% year-over-year, while operating costs and expenses decreased by 8.1% [12][13] - Income from operations increased by 1.2%, and net income decreased by 0.4% year-over-year [12] - EBITDA margin increased to 40.19% from 37.33% in the same period of 2019 [12] Business Line Data and Key Metrics Changes - Mobile revenue and subscriber market share grew to 38.3% and 37.2%, respectively, providing a solid foundation for the upcoming 5G service launch [6] - Broadband business saw ARPU growth, with subscribers migrating to higher speed services; users on plans with speeds of 100 Mbps or higher increased by 11.4% year-over-year [9] - IPTV MOD platform maintained over 2.08 million subscribers, with revenue increasing by 2.9% year-over-year [10] - ICT revenue decreased year-over-year due to a higher baseline in Q1 2019, but streaming revenue contribution increased [7][11] Market Data and Key Metrics Changes - The COVID-19 pandemic impacted enterprise business and international roaming revenue due to social distancing and lockdowns [5] - Increased demand for cloud services and enterprise conferencing was noted, indicating potential growth opportunities [5] Company Strategy and Development Direction - The company aims to leverage its leading spectrum resources and ICT technology to respond to future competition and business development [5] - Focus on migrating subscribers to higher speed services and enhancing content offerings for IPTV to maintain growth trajectory [10] Management's Comments on Operating Environment and Future Outlook - Management expects mobile service revenue to decline in 2020 due to limited initial 5G subscriber adoption [53] - The company anticipates that most ICT revenue will be recognized in the second half of 2020, with a focus on improving margins through in-house solutions [11][19] Other Important Information - The company is budgeting capex of TWD 30.7 billion for 2020, focusing on growing and emerging businesses [15] - Cash and cash equivalents decreased by TWD 20.64 billion or 55.4% compared to the same period of 2019, mainly due to 5G frequency spectrum auction payments [14] Q&A Session Summary Question: What percentage of service revenue is made up of roaming revenue? - Management indicated that while the percentage is not high, international roaming revenue has been impacted due to lockdowns [16] Question: Are there plans to reduce costs in the retail distribution channel? - The company aims to enhance customer experience through digital shops, which may involve cost adjustments [17] Question: How does ICT profitability compare to traditional telecom business? - ICT profitability is generally lower than traditional telecom, but efforts are being made to improve margins through in-house solutions [19][24] Question: Will the company be ready to launch 5G by Q3 2020? - Management confirmed that the 5G service launch is still scheduled for Q3 2020, with no changes due to the pandemic [41] Question: What are the goals for 5G subscribers by the end of 2020 and 2021? - Specific subscriber goals for 2020 were not provided, but management expects limited initial adoption [28] Question: Why is there a decline in operating costs and marketing expenses? - The decline is attributed to lower-than-expected revenue, particularly in ICT, leading to reduced costs [31][32] Question: Is the handset sales business generating negative margins? - Handset sales typically have negative margins due to subsidies, impacting overall profitability [54][56]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F (Mark One) ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 or ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 or ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 19 ...

Financial Data and Key Metrics Changes - In Q4 2019, total revenues decreased by 0.5% year-over-year, while operating costs and expenses decreased by 0.6% [15] - Income from operations decreased by 2.4%, and net income decreased by 7.3% year-over-year [15] - EBITDA margin increased by 120 basis points to 34% from 32.8% in the same period of 2018 [15] Business Line Data and Key Metrics Changes - Mobile revenue and subscriber growth increased by 36.5% and 37.9% respectively, providing a solid foundation for 5G deployment [6] - Broadband business experienced a slight subscriber loss, but ARPU increased by 8% year-over-year due to migration to higher-speed services [10] - IPTV/MOD platform subscribers reached 2.08 million, with revenue growing by 10.6% year-over-year [11] - ICT revenue increased year-over-year due to new business deployments and project management capabilities [8] Market Data and Key Metrics Changes - The number of broadband subscribers decreased slightly year-over-year, but higher-speed service subscriptions increased significantly [10] - The number of users on plans with speeds of 100 Mbps or higher increased by 11.3% to 1.58 million [10] - The company plans to leverage popular events like the Tokyo Olympic Games to boost IPTV revenue [12] Company Strategy and Development Direction - The company intends to focus on 5G service launch in Q3 2020 and maintain strategies to migrate customers to higher-speed services [6][11] - Plans to enhance ICT project margins and expand in-house developed services, including cloud services and big data analysis [13] - The company is budgeting TWD30.7 billion for CapEx in 2020, primarily for 5G network deployment [18] Management Comments on Operating Environment and Future Outlook - Management acknowledged ongoing mobile Internet substitution and cable competition impacting broadband business [6] - The company expects a slight decline in ARPU in the first half of 2020 due to continued competition in the 4G market [36] - Future revenue growth is anticipated from enterprise ICT business and 5G service rollout [17] Other Important Information - The first phase of the 5G spectrum auction concluded with prices exceeding expectations, leading to a focus on 5G service launch [6] - The company plans to maintain a flexible approach to network sharing and collaboration with peers in the 5G era [52] Q&A Session Summary Question: Why did the auction pricing get so high? - Management refrained from commenting on the auction pricing dynamics [19] Question: Can you provide more guidance on the cost increase? - The increase in costs is primarily due to ICT project revenue requiring comparable costs [21] Question: What is the expected impact on margins from ICT projects? - Some government-related projects may have lower margins, but overall, the company expects to maintain profitability [23] Question: How much of the mobile CapEx is for 5G rollout? - Over 70% of the TWD9.8 billion mobile CapEx will be allocated to 5G network deployment [27] Question: What is the expected ARPU trend going into 2020? - A slight decline in ARPU is expected in the first half of 2020, with potential improvement post-5G rollout [36] Question: What is the timeline for 5G commercialization? - The company plans to deploy 5G services in the beginning of Q3 2020 [50] Question: How will the CapEx levels look beyond 2020? - CapEx for 2021 is expected to be similar to 2020, but no comments were made beyond that [50]

Chunghwa Telecom Co Ltd (NYSE:CHT) Q2 2019 Results Conference Call July 31, 2019 3:00 AM ET Company Participants Angela Tsai - Director of Investor Relations Harrison Kuo - President and Chief Financial Officer Fufu Shen - Assistant Vice President of Public Affairs Department Conference Call Participants Billy Lee - Credit Suisse Jack Hsu - Sinopac Security Neale Anderson - HSBC Amber Lee - Yuanta Operator Good afternoon, ladies and gentlemen. Welcome to Chunghwa Telecom Conference Call for the Company’s Se ...