Slides
Page 1
G 中華 電信 Chunghwa Telecom 2Q 2026 Operating Results August 5 , 2026
Page 2
© Chunghwa Telecom 2 Disclaimer STATEMENT REGARDING UNAUDITED FINANCIAL INFORMATION The unaudited financial information under T-IFRSs in this presentation is preliminary and subject to adjustments and modifications. Adjustments and modifications to the financial statements may be identified during the course of the audit /review work, which could result in significant differences from this preliminary unaudited financial information. NOTE CONCERNING FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements. These statements constitute “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Statements that are not historical facts, including statements about Chunghwa’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Investors are cautioned that actual events and results could differ materially from those statements as a result of a number of factors including, but not limited to the risks outlined in Chunghwa’s filings with the U.S. Securities and Exchange Commission on Forms F-1, F-3, 6-K and 20-F, in each case as amended. The forward-looking statements in this presentation reflect the current belief of Chunghwa as of the date of this presentation and Chunghwa undertakes no obligation to update these forward-looking statements for events or circumstances that occur subsequent to such date, except as required under applicable law. This presentation is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer or selling security holder and that will contain detailed information about the company and management, as well as financial statements. SPECIAL NOTE REGARDING NON-GAAP FINANCIAL MEASURES A body of generally accepted accounting principles is commonly referred to as "GAAP". A non-GAAP financial measure is generally defined by the SEC as one that purports to measure historical or future financial performance, financial position or cash flows but excludes or includes amounts that would not be so adjusted in the most comparable U.S. GAAP measure. We disclose in this report certain non-GAAP financial measures, including EBITDA. EBITDA for any period is defined as consolidated net income (loss) excluding (i) depreciation and amortization, (ii) total net comprehensive financing cost (which is comprised of net interest expense, exchange gain or loss, monetary position gain or loss and other financing costs and derivative transactions), (iii) other expenses, net, (iv) income tax, (v) cumulative effect of change in accounting principle, net of tax and (vi) (income) loss from discontinued operations. In managing our business we rely on EBITDA as a means of assessing our operating performance. We believe that EBITDA can be useful to facilitate comparisons of operating performance between periods and with other companies because it excludes the effect of (i) depreciation and amortization, which represents a non-cash charge to earnings, (ii) certain financing costs, which are significantly affected by external factors, including interest rates, foreign currency exchange rates and inflation rates, which have little or no bearing on our operating performance, (iii) income tax and tax on assets and statutory employee profit sharing, which is similar to a tax on income and (iv) other expenses or income not related to the operation of the business. EBITDA is not a measure of financial performance under U.S. GAAP or T-IFRSs. EBITDA should not be considered as an alternate measure of net income or income from operations, as determined on a consolidated basis using amounts derived from statements of operations prepared in accordance with U.S. GAAP or T-IFRSs, as an indicator of operating performance or as cash flows from operating activity or as a measure of liquidity. EBITDA has material limitations that impair its value as a measure of a company's overall profitability since it does not address certain ongoing costs of our business that could significantly affect profitability such as financial expenses and income taxes, depreciation, pension plan reserves or capital expenditures and associated charges. These non-GAAP measures are not in accordance with or an alternative for GAAP financial data, the non-GAAP results should be reviewed together with the GAAP results and are not intended to serve as a substitute for results under GAAP, and may be different from non-GAAP measures used by other companies.
Page 3
© Chunghwa Telecom 3 Recent Strategic Achievements Strong financial growth momentum surpassing expectations ✓ Revenue, operating income, net income and EPS in 2Q26 and 1H26 all exceeded the high-ends of guidance ✓ Revenue climbed to a record high for any second quarter since 2010 ✓ ICT revenue reached its highest second-quarter level since 2021 Leading with integrity to drive net-zero transformation ✓ Ranked the highest “A-List” from CDP supplier engagement assessment ✓ Awarded as “Best Issuer for Sustainable Finance” & “Best Sustainability Bond” by The Asset Triple A Sustainable Finance Awards ✓ Honored among the TOP 5% of TWSE-listed companies for corporate governance ✓ Driving SBTi Targets: Reduced Scope 1 and Scope 2 emissions by 24.5% in 2025 (vs. 2020 baseline), and Scope 3 emissions by 10.8% (vs. 2021 baseline) Scaling up AIDCs to enhance AI related revenues ✓ Our Lunping campus AIDC commenced operations, with an ultimate capacity of up to 36 MW upon full build-out ✓ Built a new AIDC in Taichung with dedicated capacity for Taiwan Stock Exchange and other financial customers AAA Hub Positioning in the AI era, with expanding investment in IOWN ✓ AAA Hub: Assurance of our Sea-Land-Sky network resilience, All-Photonics Network advantage, and AI Hub position in Asia Pacific ✓ Partnered with global investors to establish the “IOWN AI Fund” to expand IOWN ecosystem and support cutting-edge AI technologies Enhancing the Group’s AI strength ✓ CHPT launched factory construction to meet growing AI semiconductor testing demand ✓ CLPT began trading on the Emerging Stock Exchange, with opportunities in AI supply chain FINANCIAL HIGHLIGHT AI OPPORTUNITIES ESG INITIATIVE 財務亮點 財務成長動能強勁且超越預期 ✓ 第二季及上半年營收、營業淨利、淨利及 EPS 均超越財測高標 ✓ 營收攀2010年以來同期歷史高點 ✓ ICT營收創2021年同期以來同期新高 Pre-6G智慧應用新機會 全方位AI布局驅動規模化成長 ✓ 攜手NTT及國際策略夥伴成立「IOWN AI 科技基金」，聚焦全光網路、分散式運算及 AI應用等IOWN相關前瞻技術之投資 ✓ 崙坪IDC落成將打造AI時代的數位核心，並預計興建支援高頻交易之新資料中心，展現 在金融領域的商業模式成功複製 ✓ 結合全光網路、AI基礎設施資源及海地星空布局，發展為亞太AAA樞紐 ✓ 受惠於AI 價值鏈市場浪潮，子公司精測與立鼎之佈局持續擴充集團版圖 永續成就 以誠信治理驅動淨零轉型 ✓ 榮獲CDP供應商議合評估最高等級A-List ✓ 榮獲《The Asset》2026 Triple A永續金融「永續金融最佳發行人」與「最佳可持續發 展債券」雙料大獎 ✓ 榮獲臺灣證交所公司治理評鑑「上市公司排名前5%」最高榮譽 ✓ SBTi減量目標推動：2025年範疇一、二碳排放量較基準年(2020)減量24.5%，範疇三 較基準年(2021)減量10.8% ➢ Q2營業收入創歷史同期新高(99年起)；H1營業收入創歷 史同期新高(99年起) ➢ Q2淨利(稅後純利)創10年來同期新高(105年起)；H1淨利 (稅後純利)創10年來同期新高(105年起) ➢ Q2 EPS創10年來同期新高(105年起) ；H1 EPS創10年 來同期新高(105年起) ➢ Q2營業利益創14年來同期新高(101年起)；H1營業利益 創10年來同期新高(105年起) ➢ Q2稅前利益創15年來同期歷史新高(100年起)；H1稅前 利益創10年來同期歷史新高(105年起) ➢ Q2 EBITDA創16年來同期歷史同期新高(98年起)；H1 EBITDA創歷史同期新高(98年起) XXX坪 樓地板面積 容量XX~XX KW PUE值 XX~XX 氣冷及液冷設計 Airflow大於XXX CFM/KW 樓板載重XXX kg/m2 耐震設計:
Page 4
© Chunghwa Telecom 4 Business Overview
Page 5
© Chunghwa Telecom 5 Mobile Market Leadership(a) a) Source: Company data ,NCC statistics. Revenues： Apr. 2026 to Jun. 2026. Subscribers：as of Jun. 2026. Revenues definition from NCC. b) Source: Company data as of Jun. 2026. based on smartphone user. C) Source: Company data. Consolidated Mobile Service Revenue (Including IoT) Business Overview Mobile Service YoY +3.2% Above industrial average Revenue & ARPU Growth 4G ➔ 5G monthly fee uplift ▲36% 5G penetration (smartphone users)(b) 48.8% • Market Share Outperforms Peers Across All Metrics • Revenue Share Exceeds Subscriber Share 090 Postpaid Churn Rate 0.36% Value Creation CHT 39.4% 39.8% 41.2% 5G Subscribers Mobile Subscribers Mobile Revenues CHT Peer 1 Peer 2 17.06 17.31 17.68 17.70 17.60 2Q25 3Q25 4Q25 1Q26 2Q26 Mobile Services Revenue(c) $ in billion 556 562 572 573 569 2Q25 3Q25 4Q25 1Q26 2Q26 090 Postpaid ARPU $ NT 090 Postpaid ARPU Roaming Revenues YoY +19% YoY + NT$13
Page 6
© Chunghwa Telecom 6 Fixed Broadband ARPU Growth Higher-Speed Adoption Uptrend Note : (a) Revenue is calculated based on T-IFRSs Fixed Broadband Revenue (a) YoY + 3.3% / 0.38bn Fixed Broadband ARPU YoY + 2.4% / NT$20 300 Mbps+ Subs YoY + 14.2% / 230k 1G+ Subs YoY + 61% 11.59 11.68 11.88 11.81 11.97 2Q25 3Q25 4Q25 1Q26 2Q26 Fixed Broadband Revenue $ in billion 4,439 4,447 4,449 4,453 4,466 2Q25 3Q25 4Q25 1Q26 2Q26 Fixed Broadband Subscriber (thousand) Business Overview Fixed Broadband Service 2Q25 3Q25 4Q25 1Q26 2Q26 Fixed Broadband ARPU $ NT 37% 38% 39% 40% 42% 2Q25 3Q25 4Q25 1Q26 2Q26 300 Mbps+ Subscriber %
Page 7
© Chunghwa Telecom 7 2Q25 3Q25 4Q25 1Q26 2Q26 July Consumer Application Services 2Q26 Highlights Multiple-Play Package IPTV(MOD) + OTT(Hami Video) Consumer Digital Services • Fixed-Broadband + Mobile + Wi-Fi Service package subscriptions grew for the 18th consecutive quarter, YoY +14% • Wi-Fi penetration among fixed broadband subscribers reached 57% • Innovative Datatainment technology drove a 24% increase in average per-match total views versus the previous FIFA World Cup • OTT revenue YoY +20%, driven by FIFA World Cup enthusiasm • Consumer Cybersecurity subscriptions maintained above 1 million, YoY+11% 2Q25 3Q25 4Q25 1Q26 2Q26 • DCB transacting users YoY +5% Multiple-Play Package Subscribers YoY +14% 2Q25 3Q25 4Q25 1Q26 2Q26 Consumer Cybersecurity Subscriptions YoY +11% Video Subscribers >3 M
Page 8
© Chunghwa Telecom 8 IDC YoY +14% 2Q25 3Q25 4Q25 1Q26 2Q26 ICT Revenue ICT Quarterly recurring revenue(QRR) Big Data YoY +167% Enterprise ICT Performance 2Q26 Highlights Group Enterprise ICT Revenue Growth Enterprise ICT Application Revenues Highlights ICT Recurring Revenue YoY +9% Group Enterprise ICT Revenue YoY +32% YoY + 34% Cybersecurity (b) 2025 1H26 • 1H26 ICT contract value has already matched the full year total amount of 2025 • ICT contract value YoY+30% in the second quarter, with contract wins of: ✓ AIDC projects along with growing AI infrastructure demand ✓ Flagship Taipower energy storage projects ✓ Multiple smart surveillance projects for correctional institutions ✓ Cloud encryption sharding service projects for key financial institutions, the first telco in Taiwan to offer the services 1H26 ICT Contract Value Growth 1H26 2025 1H25 2Q25 2Q26 1H26 Order Intake YoY +80% 2Q25 2Q26 1H Order Intake YoY +80% 2Q Order Intake YoY +30% 2Q26 Order Intake YoY +30% 2025 1H26
Page 9
© Chunghwa Telecom 9 Revenues about Network Resilience Satellite Revenue YoY +14% IPLC Revenue YoY +8% International Performance 2Q26 Highlights Global Market Highlights International Contract Wins： ✓ Obtained follow-on opportunities from AI supply chain and ICT projects across the U.S., Japan, and Southeast Asia ✓ Satellite-related contract wins exceeded NT$200 million in the first half, reflecting growing demand for resilient connectivity solutions Global Expansion Highlights： ✓ U.S. revenue surged 1157% YoY , driven by large-scale AI supply chain projects in Texas ✓ Revenue in SEA market doubled YoY , supported by ongoing construction ICT projects in Singapore and Vietnam ✓ Undersea cable revenues from SJC2 and Apricot continued to contribute to IPLC revenue growth 結合海地星空、全光網路及AI基礎設施資 源，發展為亞太3A樞紐(AAA Hub, Assurance、All-Optical、AI Hub)。兼具韌 性保障、極致傳輸、算力核心。 持續推動衛星共同供應契約與企業衛 星備援商機，累積至Q2簽約金額超過 2億元 International Subsidiaries Revenue YoY +242% SEA Market Revenues YoY +100% U.S. Market Revenues YoY +1157% 2Q25 3Q25 4Q25 1Q26 2Q26 International Subsidiary Revenue
Page 10
© Chunghwa Telecom 10 Business Groups 2Q26 Financial Summary Note : (a) The calculation of growth rate is based on actual amount. (b) IBG’s other revenue includes mobile services and sales revenues Consumer Business Group • CBG’s revenue YoY +4.8% supported by robust growth of core business and strong sales momentum • Sales revenue YoY +13.4% due to increased iPhone demands • Income before tax YoY + 3.6% 14.57 14.98 10.73 10.79 8.11 9.20 0.67 0.76 0 8 16 24 32 40 2Q25 2Q26 Mobile Service Fixed-line Services Sales Others 35.73 (Billion) 34.07 Enterprise Business Group • EBG’s revenue YoY +3.7% as ICT business revenue YoY +12.3% • EBG’s mobile revenue YoY +4.1% driven by 5G migration and enterprise projects • Income before tax YoY +2.1% 2.36 2.46 8.38 8.55 6.99 7.85 1.25 0.83 0 5 10 15 20 25 2Q25 2Q26 Mobile Services Fixed-line Services ICT Business Others (Billion) 19.6818.98 1.21 1.29 0.83 2.46 0.15 0.18 0 2 4 6 2Q25 2Q26 Fixed-line Services ICT Business Others International Business Group • IBG’s revenue YoY +78.9% as international leased circuits, ICT and mobile services revenue increased • IBG’s ICT revenues YoY+194.5%, contributed from AI supply-chain projects • Income before tax YoY +30.8% (Billion) 2.20 3.93 (b)
Page 11
© Chunghwa Telecom 11 Financial Overview
Page 12
© Chunghwa Telecom 12 Note: 1. Financials are prepared in accordance with T-IFRSs. Figures for 2026 are unaudited. 2. Net income attributable to owners of the parent. 3. EBITDA is defined as consolidated net income excluding (i) depreciation and amortization, (ii) certain financing costs, (iii) other expenses or income not related to the operation of the business, (iv) income tax, (v) (income) loss from discontinued operations. 4. The calculation of growth rates is based on NT$mn. (NT$bn) Q2 2026 Q2 2025 Growth % H1 2026 H1 2025 Growth % Revenue 61.36 56.73 8.2 121.35 112.54 7.8 Operating Costs and Expenses 48.10 44.19 8.9 94.99 87.47 8.6 Income from Operations 13.26 12.54 5.7 26.36 25.07 5.2 Income before Tax 13.95 13.13 6.3 27.13 25.83 5.0 Net Income2 10.64 10.17 4.7 20.75 19.97 3.9 EPS 1.38 1.31 4.7 2.68 2.57 3.9 EBITDA3 23.52 22.58 4.1 46.82 45.11 3.8 EBITDA Margin (%) 38.32 39.80 38.58 40.09 Income Statement Highlights
Page 13
© Chunghwa Telecom 13 Note: 1. Financials are prepared in accordance with T-IFRSs. Figures for 2026 are unaudited. 2. The calculation of growth rates is based on NT$mn. 3. Debt includes short-term and long-term liabilities. The debt ratio is defined as the ratio of total debt to total assets. 4. Net Debt includes short-term loans + short-term bills payable + current portion of long-term loans+ long-term loans + bonds payable – cash and cash equivalents. Note: 1. 惠請協助以”Net Debt” ，EBITDA以年化計算。 2. Financial Template：Net Debt計算項目為：短期借款+ 應付短期票券+一年內到期之長期借款+長期借款+應付公 司債-現金及約當現金 (NT$bn) 2026.6.30 2025.12.31 Growth % 2025.6.30 Growth % Total Assets 553.77 535.87 3.3 544.48 1.7 Cash & Cash Equivalents 42.03 36.94 13.8 35.03 20.0 Inventories 17.60 13.18 33.6 11.95 47.3 Other current monetary assets 39.40 23.47 67.9 39.73 -0.8 Property, plant and equipment 280.29 288.16 -2.7 285.04 -1.7 Other assets 174.45 174.12 0.2 172.73 1.0 Total Liabilities 171.69 135.08 27.1 164.86 4.1 Contract liabilities 30.13 27.86 8.1 23.43 28.6 Bonds payabIe 24.93 25.18 -1.0 30.50 -18.3 Dividends PayabIe 40.34 - - 38.79 4.0 Other liabilities 76.29 82.04 -7.0 72.14 5.8 Total Equity 382.08 400.79 -4.7 379.62 0.7 Current Ratio (%) 122.30 148.68 -17.8 115.29 6.1 Debt Ratio (%) 3 31.00 25.21 23.0 30.28 2.4 Net Debt / EBITDA (%) 4 0 0 - 0 - Balance Sheet Highlights
Page 14
© Chunghwa Telecom 14 Note: 1. Financials are prepared in accordance with T-IFRSs. Figures for 2026 are unaudited. 2. Numbers or percentages are on cash basis. 3. Free cash flow is calculated by subtracting CapEx from Net Cash Flows from Operating Activities. (NT$bn) H1 2026 H1 2025 Growth % Cash Flows from Operating Activities 31.74 29.28 8.4% Capital Expenditures2 9.85 11.49 -14.3% Mobile2 2.90 3.19 -9.0% Non-Mobile2 6.95 8.30 -16.3% Free Cash Flow3 21.89 17.79 23.1% Cash Flow Summary
Page 15
© Chunghwa Telecom 15 Note: 1. Financials are prepared in accordance with T-IFRSs. Figures for 2026 are unaudited. 2. Net income attributable to owners of the parent. 3. EBITDA is defined as consolidated net income excluding (i) depreciation and amortization, (ii) certain financing costs, (iii) other expenses or income not related to the operation of the business, (iv) income tax, (v) (income) loss from discontinued operations. (NT$bn) Q2 2026 (A) Q2 2026 (E) Achieving % H1 2026 (A) H1 2026 (E) Achieving % Revenue 61.36 57.64~57.79 106.2～106.5 121.35 113.92~114.23 106.2～106.5 Operating Costs and Expenses 48.10 46.08~46.23 104.1～104.4 94.99 90.81~91.11 104.3～104.6 Income from Operations 13.26 11.56~11.56 114.7～114.7 26.36 23.11~23.12 114.0～114.1 Net Income2 10.64 9.23~9.25 115.1～115.3 20.75 18.22~18.26 113.6～113.9 EPS 1.38 1.19~1.19 115.1～115.3 2.68 2.35~2.35 113.6～113.9 EBITDA3 23.52 21.93~21.93 107.2～107.2 46.82 43.78~43.79 106.9～106.9 EBITDA Margin (%) 38.32 37.95~38.04 38.58 38.34~38.43 Operating Results vs. Forecasts
Page 16
© Chunghwa Telecom 16 Q & A