Taiwan Mobile Co., Ltd. — Earnings Release 2015

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Press Release

May 8, 2015

TWM announced April consolidated revenue of NT$9.47bn. EBITDA was NT$2.76bn with an operating income of NT$1.67bn and net income of NT$1.29bn. EPS was NT$0.48. For the first four months of 2015, TWM reported a consolidated revenue of NT$39.19bn, an EBITDA of NT$10.35bn, an operating income of NT$6.01bn and a net income of NT$5.11bn. EPS for the first four months was NT$1.88.

Rosie Yu, Chief Financial Officer and Spokesperson of TWM, stated that, in April, as a result of continual increases in the number of 4G subscribers, postpaid ARPU grew 2% YoY. Moreover, increases in mobile service revenue as well as effective control on costs and expenses enabled consolidated EBITDA to grow 4% compared to the same period last year. Overall, cumulative net income for the first four months reached 37% of the full-year guidance.

Taiwan Mobile Consolidated Results (Unaudited)

Note 1: Derived from deducting handset sales revenue from the total revenue

IR contact:

Shirley Chu Rosie Yu Senior Director of Investor Relations Chief Financial Officer and Spokesperson Tel: 8862-6636-3159 Tel: 8862-6638-3909 Email: [email protected] Email: [email protected] 13F, No.88, Yan Chang Rd., Xinyi Dist. Taipei City 110, Taiwan

Taiwan Mobile Co., Ltd.

1Q15 Results Summary April 30, 2015

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The information contained in this presentation, including all forwardlooking information, is subject to change without notice, whether as a result of new information, future events or otherwise, and Taiwan Mobile Co., Ltd. (the “Company”) undertakes no obligation to update or revise the information contained in this No or presentation. representation warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is the information intended to be a complete statement of the Company, markets or developments referred to in this presentation.

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Business Overview

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Mobile Service Revenue[1]

4G User Penetration Rate

• 4G postpaid user number as % of postpaid

• Based on IFRS – Residual Value Method, i.e. excluding revenue adjustments under the current bundle sales accounting policy

installed base

Unit: NT$mn +0.2% YoY

Note 1: Adjusting for a higher base of mobile game revenue in 1Q14, our mobile service revenue would have grown 1% YoY in 1Q15.

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• Calculation based on total cable TV revenue excluding content agency revenue

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Financial Overview

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Note: The combined total of telecom, CATV and momo does not equal the consolidated total of each account due to other revenue and minor adjustments / eliminations.

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• Including accumulated profits and other equity items

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Event Updates

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2014 Earnings Distribution

TWM’s board meeting today (April 30, 2015) approved a proposal to distribute NT$15.24bn in cash dividends, translating into a 102% payout to shareholders. Dividend per share is NT$5.6 on 2.72bn shares, excluding treasury shares held by 100%-owned subsidiaries.

Regulatory Update

With FET’s early return of part of its 2G spectrum approved by the NCC on March 25, 2015, TWM will have another 5MHz x 2 spectrum on 1800MHz for LTE use according to the Mobile Broadband Regulation. As such, TWM will utilize CA (Carrier Aggregation) technology on its current total available spectrum of 30MHz x 2 (20MHz x 2 and 10MHz x 2 on the 700 and 1800 frequency bands, respectively) and provide 210Mbps theoretical download speed, the fastest among peers.

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Awards and Recognition

• Received honors in the categories of Taiwan’s Best Managed Public

• Companies, Best Corporate Governance, Best Investor Relations and Best Committed to Paying Good Dividends in FinanceAsia magazine’s 2015 Asia’s Best Companies Poll.

• TWM’s 4G download speed ranked No. 1 in speed tests independently

• conducted by both Apple Daily and Next Magazine* .

• Outperformed peers by delivering the fastest 3G download speed in 12 counties/cities out of 22 total according to the results of an NCC speed test announced on March 4, 2015.

• TWM’s 3G/4G network won highest customer satisfaction in a survey conducted by Insightxplorer Market Research.

• For details, refer to the Apple Daily’s report dated on March 2, 2015 and Next Magazine’s report dated on October 23, 2014.

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Taiwan Mobile is committed to enhancing shareholder returns, evidenced by the board’s resolution to maintain a stable DPS in 2015. Steady expansions in the 4G revenue streams will continue to absorb the high 4G start-up costs. The saw a in EBITDA company sequential improvement in 1Q15. Nonetheless, the speed of profitability enhancement will hinge on when the industry will have a structural change in 4G pricing.

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Q & A

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