Yvonne Li President 4904 (TWSE) 2010 3Q Investor Update 2010 3Q Investor Update 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.
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Yvonne LiPresident
4904 (TWSE)
2010 3Q Investor Update2010 3Q Investor Update
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.
3
AgendaAgenda
I.I. Market OverviewMarket Overview
II.II. 2010 3Q Performance and 2010 3Q Performance and
Business UpdateBusiness Update
III.III. Strategic DirectionStrategic Direction
4
(NT$mn)
52,026
18,229 17,845
6,063 6,332
53,348
0
20,000
40,000
60,000
80,000
100,000
3Q-09 3Q-10
Mobile Local Calls Int'l Calls
� Total Telecom Market Revenue increased slightly ����1.6% YoY with
Source: Company Data; * Non-voice Service includes smartphone related non-voice plans and datacard, broadband, GPS related products
Mobile NonMobile Non--Voice PerformanceVoice PerformanceUptake of NonUptake of Non--Voice Service SubscribersVoice Service Subscribers
16.5%14.9%
15.8%
10%
12%
14%
16%
18%
FET TWM CHT
2010 3Q Non-Voice % of Service Rev2010 3Q Non-Voice % of Service Rev
#1: FET keeps the leading position
NT$ mn
1,9352,288
13.9%16.5%
1,000
1,500
2,000
2,500
3Q-09 3Q-100%5%10%15%20%
Non-Voice Rev Non-Voice % of Service Rev
Non-Voice%
FET Mobile Non-Voice Growth FET Mobile Non-Voice Growth
����18%
10
32%
32% 36%51% 55% 61% 63% 66% 68%
34%64% 49% 47% 45% 39% 37%
68%
53%
0%
20%
40%
60%
80%
100%
Y2004
Y2005
Y2006
Y2007
Y2008
Y2009
1Q'1
0
2Q'1
0
3Q'1
0
Non-SMS rev % to data rev SMS rev % to data rev
Mobile NonMobile Non--Voice PerformanceVoice PerformanceMain Growth Driver from NonMain Growth Driver from Non--SMS ServicesSMS Services
SMS % of Non-Voice RevSMS % of Non-Voice Rev Non-SMS Rev Breakdown in 3Q’10Non-SMS Rev Breakdown in 3Q’10
Non-SMS portion getting bigger
Source: Company data
15.0% 12.3%3.4% 2.2% 2.1%
65.3%
0%
20%
40%
60%
80%
Wireless
Broadband
+
transmission
Mobile
Advrtising
Music e-commerce Social
Ntwrking
Entertainmt
Major growths from:� Wireless broadband + Transmission
(����59%YoY)� Entertainment (���� 58%YoY)
11
Consolidated Financial AchievementConsolidated Financial Achievement2010 YTD vs. 2010 Annual 2010 YTD vs. 2010 Annual FF’’cstcst
Source: FET consolidated financials,. FET & NCIC P&L have been consolidated since Aug 17, 2010(1) EPS was based on current outstanding shares of 3,258,501K