Yvonne Li President

4904 (TWSE)

2017 3Q Investor Update

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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

FET. Neither FET nor its advisors have made any representation or warranty as to the

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

undertaking to supplement such information as further information becomes available

or in light of changing circumstances. None of FET, nor any of their respective

affiliates, advisers or representatives shall have any liability whatsoever (in negligence

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

contents or otherwise arising in connection with this presentation. Neither this

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

I. Market Overview

II. 2017 3Q Performance

III. Business Update

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Mobile Market in Taiwan Market Dynamic

6.0 4.2 2.4 1.0 0.4 0.0

22.7 24.823.5

16.8

10.57.4

3.4

11.6

18.121.4

2012 2013 2014 2015 2016 17-

Aug

2G 3G 4G

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Highest Postpaid APRU (1-3Q17) Total Mobile Subs in Taiwan(1)

Leading EBITDA YoY Growth (1-3Q17)

Source: (1) NCC website

29.4 29.3 28.9 29.0 28.7 878

595850

TWM FET CHT

-3.7%-2.8%

TWM FET CHT

#1

$878

#1

+1.0%

28.75

Unit: mn

74%

26%

NCC>>統計資料>>通訊類>>行動通信業務>>行動通信業務客戶統計數(ODT)

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Agenda

I. Market Overview

II. 2017 3Q Performance

III. Business Update

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Operational Performance Leading 4G Adoption

4G 21.7%

78.3%

Postpaid Subscriber Breakdown FET: The Fastest 4G Adoption(1)

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

FET’s total subscribers: 7,225k

4G Commercial Launch

#1

78%

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3Q16 4Q16 1Q17 2Q17 3Q17

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

#1

$878

Operational Performance Still the Highest APRU in the Market

87%

55%

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Financial Performance Strive for Profitability

7,524 7,2627,2427,1886,362

32.3% 32.0%33.0%

26.4%

31.9%

3Q16 4Q16 1Q17 2Q17 3Q17

3,207

2,8542,9172,836

2,180

3Q16 4Q16 1Q17 2Q17 3Q17

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

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Consolidated Financial Result 3Q17 & 1-3Q17 Result vs. Guidance

Item

Unit: NT$ mn, except

for EPS

3Q17

Result YoY %

Achieve-

ment %

1-3Q17

Result YoY %

Achieve-

ment %

▶Total Revenue 22,865 1.9% 98.4% 67,281 4.2% 97.7%

▶Service Revenue 17,055 4.6% 97.7% 51,403 4.3% 99.0%

▶EBITDA 7,262 3.5% 100.2% 21,692 1.0% 100.3%

▶Net Income 2,854 11.0% 100.3% 8,607 6.6% 100.4%

▶EPS(1) $0.88 11.0% 100.3% $2.64 6.6% 100.4%

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

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As of 3Q17 As of 2Q17

Consolidated Financial Result 3Q17 Financial Stats

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)

7,254

632

33,569

25,683

68,181

0.92x

14,081

6,523

$2.64

(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

13,095

617

33,259

19,547

65,303

0.69x

8,406

4,547

$1.77

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Agenda

I. Market Overview

II. 2017 3Q Performance

III. Business Update

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2017 3Q Honors and Achievements

Won #1 Top Service Award 2017 - Telecommunications from Next Magazine for 5 consecutive years

Honored with the best practice of Direct Carrier Billing from Google

Garnered the "2017 Top CSP (Cloud Solution Provider) Direct Partner" Award by Microsoft

1st operator to obtain

NCC’s approval for 040

IoT gateway numbers for

IoT device connections

using NB-IoT technology

Demonstrated advanced

progresses in 5G lab via

LAA (Licensed-Assisted

Access) technology and

Mobile Edge Computing

solutions

Shortlisted “The

Innovation Award-

Operator” for the World

Communication Awards

2017

Established green energy

alliances with the electric

scooter maker ‘Gogoro’

to build the first solar cell

exchange station in

Taiwan

Technology Services Innovation

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iPhone Update Positive to ARPU

88%

Sep-16 Sep-17

92%

17% 20%

24%

33%

3Q14 3Q15 3Q16 3Q17

% of active iPhones accounts 1/3 of total smartphones.

% of new iPhone takers subscribe rate plan $999 and above

is increasing vs. a year ago.

% of active iOS

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% of iPhone takers signed up $999+

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Q & A

Websites email

Investor Relations

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

http://www.fetnet.net

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