Chunghwa Telecom February Revenue NT$ 17.93 billion

Chunghwa Telecom announced its unaudited consolidated operating results for February 2023. In February, the unaudited consolidated revenue increased by 8.3% year over year to NT$ 17.93 billion. Operating income decreased by 1.7% year over year to NT$ 3.91 billion and income before tax increased by 2.1% year over year to NT$ 4.01 billion. Net income attributable to stockholders of the parent company increased by 2.2% year over year to NT$ 3.15 billion and EBITDA decreased by 0.3% year over year to NT$ 7.21 billion, while EPS increased by NT$ 0.01 year over year to NT$0.41. Chunghwa Telecom highlighted that revenues of three business groups all increased year over year due to stable growth momentum driven by popular product and service offerings provided to consumers, enterprise customers and international customers.

In February, ICT project revenue doubled on year-over-year basis due to the revenue recognition of large projects. IDC, cloud and cybersecurity revenues reached a double-digit growth year over year. In addition, mobile application revenue including 5G private network also doubled propelled by strong demand and growth momentum.

Mobile service revenue maintained its upward trend with a 5.6% year-over-year increase and reached a 23-month consecutive growth, mainly due to the increasing subscriber number of 5G service and postpaid SIMs as well as an increase of international roaming revenue driven by the recovery of international business travels and tourism. Mobile post-paid ARPU (Average Revenue Per User) increased by 3.1% year over year with a 23-month consecutive growth trend. Sales revenue enjoyed a year-over-year double-digit growth rate, mainly thanks to the relatively more stable handset supply to allow higher iPhone sales compared to the same period of last year.

Fixed broadband business demonstrated growth trajectory as well. Overall broadband access revenue and data communications revenue continued to increase owing to our successful high-speed promotion package (速在有禮) that continued to incentivize subscribers to adopt higher speed, which further enhanced ARPU with a 1.2% year-over-year increase, achieving a 26-month consecutive growth since 2021.

As of February 2023, the accumulated unaudited consolidated revenue was NT$ 35.70 billion. Operating income was NT$ 8.07 billion. Income before tax was NT$ 8.13 billion, while EPS was NT$ 0.83. The aforementioned financial indicators all exceeded guidance largely.

(in NT$ billion)

	2023		2022		YoY %
	Feb.	Jan.- Feb.	Nov.	Jan.- Feb.	Nov.	Jan.- Feb.
Revenue	17.93	35.70	16.55	33.97	8.3	5.1
Operating costs and expenses	14.02	27.63	12.57	26.01	11.5	6.2
Other income and expense (Note1)	0.00	0.00	0.00	0.00	-	-
Operating income	3.91	8.07	3.98	7.96	-1.7	1.3
Income before tax	4.01	8.13	3.93	7.99	2.1	1.7
Net income attributable to stockholders of the parent	3.15	6.41	3.08	6.24	2.2	2.8
EBITDA	7.21	14.64	7.23	14.43	-0.3	1.5
EPS(NT$)	0.41	0.83	0.40	0.80	2.2	2.8

Note 1: "Other income and expenses" includes gains (losses) on disposal of property, plant and equipment (PP&E) and investment property, and impairment loss on PP&E and investment property.

Note 2: The calculation of growth rates is based on NT$ thousand.

NOTE CONCERNING FORWARD-LOOKING STATEMENTS

This press release 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 press release reflect the current belief of Chunghwa as of the date of this press release 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 press release 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.

NON-GAAP FINANCIAL MEASURES

To supplement the Company's consolidated financial statements presented in accordance with International Financial Reporting Standardspursuant to the requirements of the Financial Supervisory Commission, or T-IFRSs, Chunghwa Telecomalso providesEBITDA, which is a "non-GAAP financial measure". EBITDA 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 income, net, (iv) income tax, (v) (income) loss from discontinued operations.

In managing the Company'sbusiness, Chunghwa Telecomrelieson EBITDA as a means of assessing itsoperating performance 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 (iv) other expenses or income not related to the operation of the business.

CAUTIONS ON USE OF NON-GAAP FINANCIAL MEASURES

In addition to theconsolidated financial results prepared under T-IFRSs, Chunghwa Telecomalso provide non-GAAP financial measures, including "EBITDA". The Companybelievesthat the non-GAAP financial measures provide investors with another method for assessing its operating results in a manner that is focused on the performance of its ongoing operations.

Chunghwa Telecom'smanagement believes investors will benefit from greater transparency in referring to these non-GAAP financial measures when assessing the Company's operating results, as well as when forecasting and analyzing future periods. However, the Companyrecognizesthat:

• these non-GAAP financial measures are limited in their usefulness and should be considered only as a supplement to the Company'sT-IFRSsfinancial measures;
• these non-GAAP financial measures should not be considered in isolation from, or as a substitute for, the Company'sT-IFRSsfinancial measures;
• these non-GAAP financial measures should not be considered to be superior to the Company'sT-IFRSsfinancial measures; and
• these non-GAAP financial measures were not prepared in accordance with T-IFRSsand investors should not assume that the non-GAAP financial measures presented in this earnings release were prepared under a comprehensive set of rules or principle.

Further, these non-GAAP financial measures may be unique to Chunghwa Telecom, as they may be different from non-GAAP financial measures used by other companies. As such, this presentation of non-GAAP financial measures may not enhance the comparability of the Company'sresults to the results of other companies. Readers are cautioned not to view non-GAAP results as a substitute for results under T-IFRSs, or as being comparable to results reported or forecasted by other companies.

About Chunghwa Telecom

Chunghwa Telecom (TAIEX 2412, NYSE: CHT) ("Chunghwa" or "the Company") is Taiwan's largest integrated telecommunications services company that provides fixed-line, mobile, broadband, and internet services. The Company also provides information and communication technology services to corporate customers with its big data, information security, cloud computing and IDC capabilities, and is expanding its business into innovative technology services such as IoT, AI, etc. Chunghwa has been actively and continuously implemented environmental, social and governance (ESG) initiatives with the goal to achieve sustainability and has won numerous international and domestic awards and recognitions for its ESG commitments and best practices. For more information, please visit our website at www.cht.com.tw

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