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    Neale Anderson • HSBC

    Neale Anderson's questions to Chunghwa Telecom Co Ltd (CHT) leadership

    Neale Anderson's questions to Chunghwa Telecom Co Ltd (CHT) leadership • Q2 2024

    Question

    Neale Anderson inquired about Chunghwa Telecom's potential M&A strategy mentioned in the presentation, asking for more details on the specific sectors, business areas, and geographic regions the company is targeting.

    Answer

    Chief Financial Officer Vincent Chen responded that the company's M&A focus is primarily on its three ICT pillars: AIoT, IDC/cloud, and cybersecurity. However, he noted they remain open-minded to any opportunities that could enhance their core business. Geographically, while options are open, Mr. Chen highlighted a particular interest in overseas targets for its CHT Security subsidiary to expand its international footprint.

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    Neale Anderson's questions to Chunghwa Telecom Co Ltd (CHT) leadership • Q2 2024

    Question

    Neale Anderson of HSBC inquired about Chunghwa Telecom's potential M&A strategy, asking for details on target sectors and geographic focus.

    Answer

    CFO Vincent Y.S. Chen responded that the company is focused on its three ICT pillars—AIoT, IDC/Cloud, and Cybersecurity—but remains open to other areas that enhance its core business. While open to targets in any country, he noted a particular interest in overseas expansion for its CHT Security subsidiary.

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    Neale Anderson's questions to Chunghwa Telecom Co Ltd (CHT) leadership • Q1 2024

    Question

    Neale Anderson of HSBC inquired about the absolute revenue contribution and growth potential of Chunghwa Telecom's emerging enterprise applications, specifically asking for a ranking of the largest segments. He also sought clarity on the revenue and margin trends within the competitive data center (IDC) and cloud businesses.

    Answer

    CFO Vincent Y.S. Chen explained that while detailed figures are not disclosed, for Q1, the largest enterprise application by revenue was IDC, followed by cybersecurity and AIoT. He highlighted that IDC's recurring revenue grew nearly 8% YoY. Chen emphasized CHT's competitive advantage comes from offering integrated services, allowing them to take a holistic view of profitability, unlike pure-play competitors, and positioning them as the market leader in Taiwan.

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    Neale Anderson's questions to Chunghwa Telecom Co Ltd (CHT) leadership • Q1 2024

    Question

    Neale Anderson of HSBC inquired about the absolute revenue contribution and growth potential of Chunghwa Telecom's emerging enterprise applications, specifically asking for the largest business area. He also sought clarity on the revenue and margin trends within the competitive data center (IDC) and cloud segments.

    Answer

    CFO Vincent Y.S. Chen explained that while detailed figures are not disclosed, for Q1, IDC was the largest contributor to emerging application revenue, followed by cybersecurity and AIoT. Regarding the data center business, Chen highlighted a focus on recurring revenue, which grew nearly 8% YoY, and stressed that Chunghwa Telecom evaluates profitability holistically by bundling services, which helps it maintain a competitive lead over rivals.

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