Chee Ching, President

Sharon Lin, CFO

Far EasTone Telecom

4904 (TWSE)2020 4Q 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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I. FET 2020 Operational Performance

II. FET 2020 4Q Financial Performance

III. 2021 Guidance

IV. 2020 Dividend Distribution

Agenda

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Mobile Market in Taiwan

29.2 29.3 29.3 29.2 29.1 29.1 29.2 29.3

1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20

Total Mobile Customers in Taiwan(1)

Source: (1) Total market mobile customer data from NCC excluding NB-IoT numbers(2) Effective MNP (Mobile Number Portability) customer data from NCC

subs (mn) subs (K)

Total MNP Customers(2)

746 663

583 531 558 570

482 575

1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20

iPhone12

5G launch

Saturated Mobile Service Market Number Porting Market still cold

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419 545 565

653 704

Blended Postpaid

FETTWMCHTn/a

5,300 5,326 5,341 5,350 5,361 5,361 5,377 5,407

1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20

1.5% 1.4% 1.5% 1.4% 1.3% 1.3% 1.1% 1.1%

FET Mobile Service PerformanceFET Postpaid customers grew for 9 consecutive quarters

FET Postpaid Subscribers

Record low

subs (K)

(%)

1.1%YoY

Source: (1) Operator’s ARPU (average revenue per user) from its respective factsheet. CHT’s blended ARPU was based on fair-value method while TWM &FET used residual value method.

NT$

1.0%Jan21

FET Postpaid Churn Rate

Big 3 ARPU(1) in 4Q20

5

272.2 351.5

Taiwan Average FET

260.01 315.45

Taiwan Median FET

FET 4Q20 5G Update

Source: (1) Data source from Opensignal in 4Q 2020 published on Feb. 3, 2021

FET

5G Download Speed (MBps)

FET

5G adoption continues to be strong, 95% of 5G customers signed up for rate plan>=$999

Average Monthly Fee for renewal customers has shown more than 15% uplift

4600+ 5G NRs deployed covering 61% of population island wide; target 90%+ coverage by EoY 2021

Taiwan ranked 3rd worldwide in 5G download speed(1)

FET ranked #1 in Taiwan, as per Opensignal & Speedtest (Ookla)

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Consumer Digital Services Enterprise ICT grew 17% YoY

Media services

FET 2020 New Economy PerformanceNew Economy grew 13% YoY under COVID-19

Mobile Commerce

+23% YoY +68% YoYCloud Service

+57% YoY

+34% YoY+29% YoYTelemedicineSecurity

IoT+15% YoY

Direct Carrier Billing

+11% YoY Up 20%

friDay Video monthly active users

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FET 2020 Awards and Recognitions -1

Dow Jones Sustainability World Index (DJSI) recognitions

8 Taiwan Corporate Sustainability Awards and The Most Prestigious Sustainability Awards – Top 10 Domestic Corporate

CSR Role Model Award by Global View magazine

Ranked Top 5% Corporate Governance Evaluation by Taiwan Stock Exchange

2020 BSI Sustainability Resilience Award

ESGAwards

InnovationAwards

Smart City Innovation Application Award for AIoT platform on Public Housing from Taipei City Government

Cloud IoT Innovation Award- Excellent Application Award for Sewage Cloud IoT Smart Monitoring System from CIAT(1)

Note: (1) CIAT - Cloud Computing and IoT Association in Taiwan

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9 Customer Service Excellence Awards held by Telecom Association

Best Service in Taiwan – 9 years in a row by Commercial Times

2020 Customer Service Excellence Award from TCCDA(1)

FET 2020 Awards and Recognitions -2

ServiceAwards

Enterprise MajorWins

5G mmWave Private Network with Mediatek, the world's leading 5G modem design company

5G Smart Factory with Delta Electronics and Microsoft Taiwan

5G Telemedicine Service offered in New Taipei, Taitung provinces

Deployed 80K Smart Streetlights at Taoyuan City

Deployed Smart Water Meters for Taipei City

Note: (1) TCCDA - Taiwan Contact Center Development Association

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Agenda

I. FET 2020 Operational Performance

II. FET 2020 4Q Financial Performance

III. 2021 Guidance

IV. 2020 Dividend Distribution

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7,471 7,399 7,191 7,092 7,003 6,885 6,812 6,900

35.9% 36.2%33.7% 33.4%

36.2% 36.9% 36.6%

30.4%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20

5,000

5,500

6,000

6,500

7,000

7,500

8,000

8,500

9,000

20,819 20,425 21,407 21,214 19,389 18,675 18,630

22,807

1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20

EBITDA improved QoQ in 4Q20Total Revenue regained momentum from 5G/handset sales in 4Q20

Quarterly Revenue (in NT$mn)

FET Financial Performance

Source: company data

EBITDA and Margin (in NT$mn & %)

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ItemUnit: NT$ mn, except for EPS

2020 4Q FY2020

Result GuidanceAch. Rate

%Result Guidance

Ach. Rate %

Total Revenue 22,807 24,355 93.6% 79,501 86,759 91.6%

Operating Cost & Expense 20,314 21,708

saved 6.4% 68,463 75,674

saved 9.5%

EBITDA 6,900 7,159 96.4% 27,599 27,699 99.6%

Net Income 1,885 1,869 100.8% 8,354 8,016 104.2%

EPS (NT$) $0.58 $0.57 100.8% $2.56 $2.46 104.2%

2020 4Q & Full Year Results

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2020 4Q Financial Status

As of 2020 4QAs of 2020 3Q

Note: (1) Net Debt to EBITDA in accordance with IFRS 16; (2) Free Cash Flow excluding 5G license fees and in accordance with IFRS 16.

Cash & Cash EquivalentsAvailable-for-sale Financial Assets & Derivatives

Total BorrowingNet Debt

Shareholders’ EquityNet Debt to EBITDA(x)(1)

Free Cash Flow(2) – YTDCash-based Capex – YTD

EPS(NT$) – YTD

(NT$ mn unless otherwise stated)

5,7141,547

74,27367,012

68,2472.43x

15,18910,857

$2.56

4,1311,316

72,94967,502

66,3742.43x

13,9475,639

$1.99

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Agenda

I. FET 2020 Operational Performance

II. FET 2020 4Q Financial Performance

III. 2021 Guidance

IV. 2020 Dividend Distribution

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ItemUnit: NT$mn, except for EPS

FY2021 Guidance

FY2020 Result YoY%

Total Revenue 82,276 79,501 3.5%

Operating Cost & Expense 72,894 68,463 6.5%

EBITDA 27,485 27,599 (0.4%)

Net Income 8,368 8,354 0.2%

EPS $2.57 $2.56 0.2%

2021 Consolidated Financial Forecast

Note: 2020-2021E financials are prepared in accordance with IFRS 15 & 16

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9.9 8.8

7.1 6.2

10.9

14.9

2016 2017 2018 2019 2020 2021E

Source: company data

2021 Capex GuidanceHigher Capex for Peak 5G Deployment

Capex (NT$bn)

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FET

2021

Priorities

Grow Profitable ICT business

Accelerate 5G service adoption1

2

Grow total customer value3

Control Costs & Smart Capital4

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Agenda

I. FET 2020 4Q Operational Performance

II. FET 2020 4Q Financial Performance

III. 2021 Guidance

IV. 2020 Dividend Distribution

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2.68 2.56

3.25 3.25

60%

70%

80%

90%

100%

110%

120%

130%

140%

150%

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

2019 2020

EPS DPSSource: company dataNote: (1) dividend distribution is subject to 2021 AGM’s approval

(1)

Proposed 2020 Dividend DistributionMaintain stable dividend

Dividend per share (NT$)

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Q & AWebsites email

Investor Relations IR@fareastone.com.tw

http://corporate.fetnet.nethttp://www.fetnet.net

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