4904 (TWSE) Q Investor Update. Disclaimer. Yvonne Li President

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1 1 494 (TWSE) 214 1Q Investor Update Yvonne Li President 2 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.

2 2 Agenda 3 I. Market Overview II Q Performance III. Business Update Taiwan Mobile Market Market Dynamic 4 Market Update For 1Q 214, despite negative Impact from MTR, FET continued growing with Mobile Service Rev up 2.4% YoY Mobile Data Rev up 21.3% YoY Overall mobile competitive landscape remains quite stable Mobile Service Rev Share Change (1Q14 vs. 1Q13) APT+VIBO 9.9% 8.5% (1Q13)(1Q14) CHT 34.3%34.3% (1Q13)(1Q14) 1% 5% % 2% 1% EBITDA Growth (1Q14 vs. 1Q13) 9.1% 3.4% 5.2% FET TWM CHT Net Income Growth (1Q14 vs. 1Q13) 11.8% 1.9% 7.3% TWM 28.1%29.1% (1Q13) (1Q14) FET 27.7% (1Q13) (1Q14) 28.% % -1% Source: Mobile service revenues of FET, CHT, TWM, APT from company s factsheet, Vibo s from Taiwan M.O.P.S. reported revenue deduct estimated equipment revenue. Y213 market share % has been restated. FET TWM CHT

3 3 Agenda 5 I. Market Overview II Q Performance III. Business Update Operational Performance Increasing Subs 6 9, 8, 7, 6, 4, 3, 2, 1, (') Total Subscribers continue to grow for 47 consecutive months 6,694 6,777 6,884 6,945 6,99 7,69 7,154 7,217 7,281 1,53 1,528 1,543 1,553 1,553 1,565 1,571 1,576 1,583 5,19 5,249 5,341 5,392 5,437 5,54 5,583 5,641 5,698 1Q12 2Q12 3Q12 4Q12 Postpaid Prepaid 4% YoY 22% 78%

4 4 Operational Performance MOU and ARPU 7 Postpaid Minutes of Use (1) FET s Postpaid ARPU Million Minutes 45 3,745 3,796 3, , %YoY 3,54 NT$ 1-1.7%YoY Source: Company Data (1) MOU has been adjusted by MVNO's usage starting Y214 and re-state Y213 Financial Performance Top Lines continue growing 8 Consolidated Revenue Mobile Service Revenue ($mn) 3.5%YoY 2 23,36 22,864 22,86 22,1 22, % 2, YoY 17,344 17,719 18,4 18,47 17, , ($mn) 2, 15,69 15, , 2.4%YoY 15,581 15,723 15,432 Total Revenue Service Revenue

5 5 Financial Performance Profitability Increasing Further 9 Consolidated EBITDA Net Income (1) ($mn) 8, 7, 6, 4, 3, 2, 6,142 6,525 6,741 1Q14 vs.1q13 1Q14 vs. 1Q13 9% YoY ($mn) 12% YoY 3,5 3,132 3,187 3,11 6,698 6,191 3, 2,783 2,727 2,5 2, 1,5 1, 5 Source: Company Data (1) 213 Net Income was restated due to accounting policy change for Investment Property Mobile Data Performance Accelerated Mobile Data Growth 1 FET Mobile Data Growth Data Service (1) Subscriber Growth NT$ mn 1, 7,5 2,5 36.3% 5, % 5, % 6,3 4.4% 42.9% 6,358 6,626 Mobile Data Rev 1Q14 vs. 1Q13 21% YoY Data % 5% (k subs) 3,5 4% 3, 2,555 3% 2,5 2, 2% 1,5 1% 1, % Mobile Data % of Service Rev Source: Company Data (1) Data Service includes smartphone related data rate plans and datacard, broadband, GPS related products 5 1Q14 vs. 1Q13 29% YoY 2,729 2,922 3,111 58% of postpaid subs 3,296

6 6 Consolidated Financial Achievement Actual vs. Forecast 11 Item Unit: NT$ mn, except for EPS 1Q14 Actual 1Q13 Actual YoY % 1Q14 Forecast Achievement % Total Revenue 22,864 22,86 4% 23,59 99% Service Revenue 17,719 17,344 2% 17,735 1% EBITDA 6,698 6,142 9% 6,527 13% Net Income (1) 3,11 2,783 12% 2,874 18% EPS $.95 $.85 12% $.88 18% Source: Company Data (1) 213 Net Income and EPS were restated due to accounting policy change for Investment Property Consolidated Financial 1Q14 Financial Stats 12 (NT$ mm unless otherwise stated) Cash & Cash Equivalents Available-for-Sale Financial Assets & Derivatives Total Borrowing Net Cash (Net Debt) (1) Shareholders Equity Debt/Capitalization Ratio Gross (%) Net (%) Free Cashflows YTD (2) Cash-based Capex YTD EPS(NT$) YTD (3) As of 1Q14 8, ,247 (13,183) 77, % 13.2% 4,21 3,196 $.95 As of 4Q13 4, ,389 (17,437) 74, % 18.% 11,389 1,513 $3.63 (1) Net Cash = Cash and Cash Equivalent +Available-for-Sale Financial Assets & Derivatives +Debt investments with no active market Total Borrowing (2) Free Cashflows = Operating Cash flow- acquisition of fixed-asset & intangible asset (3) 213 EPS was restated due to accounting policy change for Investment Property

7 7 Agenda 13 I. Market Overview II Q Performance III. Business Update Smart Device Statistics Strong Data Growth driven by Smart Devices Uptake 14 Some Statistics Smart devices (smartphones + tablets ) accounted 95% of total new devices sold in 1Q14 75% Smartphone Penetration* (%) Room to grow, as the true penetration is only 51% 51% of our postpaid subscribers are actually holding smartphones and signing up data rate plans 5% 25% % 51% 47% 44% 41% 37% Smartphone takers w/ data plans Note: * smartphone penetration means ios, Andriod & WM8 smartphone users with data rate plan as % of total postpaid subs excluding data only subs

8 8 214 Q1 Awards and Recognitions The 4th Asian Excellence Recognition Awards 214 from Corporate Governance Asia Magazine Asia s Best CEO Asia s Best CFO Best Investor Relations Company Best Investor Relations Officer 214 Corporate Social Responsibility Award: Expert in Electricity Saving from Global Views Monthly Broadband Speed Enhancement in Remote Area Award from NCC Laurelled Premium Award in Power Brand from Manager Today For Further Information: Websites Q & A Investor Relations IR@fareastone.com.tw