Yvonne Li President

4904 (TWSE)

2017 1Q Investor Update

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 materially from those expressed or

implied by these forward-looking statements. Because of these risks, uncertainties and

assumptions, the forward-looking events and circumstances discussed in this

presentation might not occur in the way we expect, or at all. You should not place

undue reliance on any forward-looking information.

In preparing the information herein, FET have relied upon and assumed, without

independent verification, the accuracy and completeness of all information available

from public sources or which was provided to FET or which was otherwise reviewed by

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accuracy or completeness of such information and nor do they assume any

undertaking to supplement such information as further information becomes available

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or otherwise) for any loss howsoever arising from any use of this presentation or its

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presentation nor any of its contents may be reproduced to a third party without the

prior written consent of FET.

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Agenda

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I. Market Overview

II. 2017 1Q Performance

III. Business Update

6.04.2

2.4 1.0 0.4 0.3

22.7 24.8

23.5

16.8

10.5 9.4

3.4

11.6

18.1 19.2

2012 2013 2014 2015 2016 1Q17

2G 3G 4G

Mobile Market in Taiwan Market Dynamic

4

Leading in Postpaid APRU (1Q17) Total Mobile Subs in Taiwan(1)

Leading EBITDA YoY Growth (1Q17)

Source: (1) NCC website

29.3 29.0 28.7 861

590

883

FET TWM CHT

0.3%

-10.5%

4.9%

FET TWM CHT

#1

$883

#1

+4.9%

Unit: mn

67%

32%

1%

29.4 28.9 28.8

Agenda

5

I. Market Overview

II. 2017 1Q Performance

III. Business Update

0%

20%

40%

60%

80%

6

Operational Performance Leading 4G Adoption

Prepaid

Postpaid 25%

75%

Subscriber Breakdown

#1

71%

FET: The Fastest 4G Adoption(1)

(1) FET 4G Adoption means 4G postpaid penetration among big 3 operators

FET’s total subscribers: 7,286k 4G Commercial Launch

74%

83%81%

79%77%

1Q16 2Q16 3Q16 4Q16 1Q171Q16 2Q16 3Q16 4Q16 1Q17

Operational Performance ARPU: Remain Leading Position in the Market

7

Leading Postpaid ARPU (NT$) % of Postpaid Customer Using Data

#1

$883

6,852 7,1886,362

7,5247,104

28.8%

32.3%

26.4%

30.8%32.0%

1Q16 2Q16 3Q16 4Q16 1Q17

3,0002,836

2,180

3,2073,005

1Q16 2Q16 3Q16 4Q16 1Q17

Financial Performance Strive for Profitability

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EBITDA (NT$mn) and Margin % Net Income (NT$mn)

Item Unit: NT$ mn, except for

EPS

1Q17

Result

1Q16

Result YoY %

1Q17

Guidance

Achieve-

ment %

▶ Total Revenue 22,480 23,819 5.6% 22,888 98.2%

▶Service Revenue 17,286 17,906 3.5% 17,181 100.6%

▶EBITDA 7,188 6,852 4.9% 7,176 100.2%

▶Net Income 2,836 3,000 5.5% 2,825 100.4%

▶EPS(1) $0.87 $0.92 5.5% $0.87 100.4%

Source: Company Data (1) EPS was based on current outstanding shares of 3,258,501K

Consolidated Financial Result 1Q17 Result vs. Guidance

9

11,169

600

38,385

26,616

71,723

0.96x

17,151

9,924

$3.50

Consolidated Financial 1Q17 Financial Stats

As of 4Q16

Cash & Cash Equivalents

Available-for-Sale Financial Assets &

Derivatives

Total Borrowing

Net Debt(1)

Shareholders’ Equity

Net Debt to EBITDA (x)

Free Cash Flow – YTD(2)

Cash-based Capex – YTD

EPS(NT$) – YTD

(NT$ mm unless otherwise stated)

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(1) Net Debt= Total Borrowing – (Cash and Cash Equivalent +Available-for-Sale Financial Assets & Derivatives )

(2) Free Cash Flow = Operating Cash flow- acquisition of fixed-asset & intangible asset

As of 1Q17

9,733

598

31,828

21,497

74,592

0.76x

5,196

2,341

$0.87

Agenda

11

I. Market Overview

II. 2017 1Q Performance

III. Business Update

Best spectrum portfolio position and moving towards 4CA

Continue to enhance network excellence with prudent investment

Management Highlight Key Message

12

700MHz 700MHz 700MHz

2014 2015 2016 2017

700MHz

1800MHz 1800MHz 1800MHz

2600MHz

(FDD)

2600MHz

(FDD)

2600MHz

(TDD)

2100MHz

(FDD)

700MHz

1800MHz

2600MHz

(FDD)

2018

Strive to create new revenue streams and

growth opportunities

Commit to deliver superior

customer care

Confident to achieve 2017 annual

guidance

Maintain strong free cash

flow position and sustain

dividend policy with

100%+ payout

2017 Q1 Awards and Honors

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Awards Corporate Social Responsibility

2017

► #1 brand campaign -“Connect with

Heart. Spread the Love” from Asia-

Pacific YouTube Ads Leaderboard

Won 2017 FinanceAsia

Best Companies awards:

Best Managed Company

Best at Investor Relations

Best at Corporate Social

Responsibility

Best CEO

Best CFO

Awarded Best Cloud Computing Partner

& Best Customer Promotion by

Microsoft

Certified BS8477 code of practice for

customer service for consecutive three

years

Topped 5% of listed companies for

Corporate Governance Evaluation held

by Taiwan Stock Exchange

Honored 2016 The Most Influential

Brands in Taiwan by BusinessWeekly

Won 2017 CSR Award – Role Model of

Service Industry by Global Views

Monthly

Q & A

Websites email

Investor Relations

IR@fareastone.com.tw http://corporate.fetnet.net

http://www.fetnet.net

For Further Information:

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