Chunghwa Telecom Reports 2013 Guidance

                    Chunghwa Telecom Reports 2013 Guidance

PR Newswire

TAIPEI, Taiwan, Jan. 29, 2013

TAIPEI, Taiwan, Jan. 29, 2013 /PRNewswire/ -- Chunghwa Telecom Co., Ltd.
(TAIEX: 2412, NYSE: CHT) ("Chunghwa" or "the Company") today reported its
guidance for 2013 on a consolidated basis. All figures were prepared in
accordance with Taiwan-International Financial Reporting Standards ("T-IFRSs")
on a consolidated basis.

Dr. Shyue-Ching Lu, Chairman and Chief Executive Officer, stated, "As Taiwan's
largest integrated telecommunications company, we remain focused on our core
goal of maintaining and expanding one of the world's most advanced
telecommunication networks, further enabling Taiwan's next generation of
consumers, businesses, and industries. We will continue the build-out and
expansion of high-speed fiber and mobile broadband networks throughout Taiwan
in order to mitigate the regulation impact and stay ahead of the competition.
Looking ahead at 2013, we believe this strategic focus will enable us to
leverage our key future growth drivers including mobile data,
multimedia-on-demand ('MOD'), information and communication technologies
('ICT') services and cloud services, to continue providing the fastest, most
reliable and secure communications experience available throughout Taiwan as
well as expand customer base for major businesses."

For 2013, total revenue is expected to decrease by NT$2.46 billion, or 1.1%,
to NT$217.82 billion compared to the unaudited consolidated revenue for 2012.
Although the persistent promotion of mobile internet, Fiber broadband and ICT
including cloud services will inject growth momentum of the Company, the less
construction revenue from Light Era, the property development subsidiary, a
continued decline in voice revenue, the NCC-mandated tariff reductions as well
as the mobile interconnection rate reduction will decrease total revenue.

Operating costs and expenses for 2013 are expected to increase by NT$1.49
billion to NT$172.71billion. The promotion and deployment of the Company's
mobile internet and broadband and cloud businesses is expected to result in
higher depreciation and amortization as well as higher maintenance and
material expenses. Electricity expense is expected to increase due to higher
tariffs. Furthermore, the bad debt reversal for 2012 also explained this
year-over-year increase. The increase in the aforementioned expenses offsets
the decrease in mobile interconnection expense due to the rate reduction and
the construction cost decrease from the subsidiary Light Era.

Non-operating income is expected to increase by NT$1.05 billion due to a real
estate impairment charge taken during 2012. Income before income taxes is
expected to be NT$46.15 billion and comprehensive income attributable to
owners of the parent NT$37.59 billion, representing decreases of NT$ 2.9
billion and NT$2.48 billion respectively. Earnings per share are expected to
decrease to NT$4.85, mainly due to lower income from operations.

Capex for 2013 is budgeted to increase by NT$3.89 billion from 2012, to
NT$37.15 billion, primarily related to the fiber broadband, mobile network,
and cloud infrastructure build-outs.

                                                       2012
                                             2013(F)                     YoY
(NT$ billion except EPS)                               (ROC GAAP  change
                                             (T-IFRSs)                   (%)
                                                       unaudited)
Revenue                                      217.82    220.28     (2.46) (1.1)
Operating Costs and Expenses                 172.71    171.22     1.49   0.9
Income from Operations                       45.11     49.06      (3.95) (8.1)
Non-operating Income                         1.04      (0.01)     1.05   -
Income before Income Tax                     46.15     49.05      (2.90) (5.9)
Comprehensive Income attributable to owners  37.59     40.07      (2.48) (6.2)
of the parent (Note)
EPS(NT$)                                     4.85      5.16       (0.31) (6.1)
EBITDA                                       78.22     81.54      (3.32) (4.1)
EBITDA Margin                                35.9%     37.0%
Acquisition of Property, Plant and           37.15     33.26      3.89   11.7
Equipment, Long-term Investments
Note: The figure of 2012 was Net Income attributable to owners of the parent
based on ROC GAAP.

Financial Statements

Financial statements and additional operational data can be found on the
Company's website at http://www.cht.com.tw/en/ir/stockit-ff.html.

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 supplementthe Company'sconsolidated financial statements presented in
accordance with International Financial Reporting Standards, or IFRS, Chunghwa
Telecom also provide EBITDA, 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 managingthe Company'sbusiness,Chunghwa Telecom relies on EBITDA as a
means of assessingits operating 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 tothe consolidated financial results prepared under
IFRS,Chunghwa Telecom also provide non-GAAP financial measures, including
"EBITDA".The Companybelieves that 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's management believes investors will benefit from greater
transparency in referring to these non-GAAP financial measures when assessing
theCompany's operating results, as well as when forecasting and analyzing
future periods. However,the Companyrecognizes that:

  othese non-GAAP financial measures are limited in their usefulness and
    should be considered only as a supplement to the Company's IFRS financial
    measures;
  othese non-GAAP financial measures should not be considered in isolation
    from, or as a substitute for,the Company'sIFRS financial measures;
  othese non-GAAP financial measures should not be considered to be superior
    tothe Company'sIFRS financial measures; and
  othese non-GAAP financial measures were not prepared in accordance with
    IFRS and investors should not assume that the non-GAAP financial measures
    presented in this earnings release were prepared under a comprehensive set
    of rules or principles.

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 ofthe Company'sresults to the results of other
companies. Readers are cautioned not to view non-GAAP results on a stand-alone
basis or as a substitute for results under IFRS, or as being comparable to
results reported or forecasted by other companies.

A reconciliation of each non-GAAP financial measure to the most directly
comparable IFRS financial measure or measures appears at the end of this press
release.

About Chunghwa Telecom

Chunghwa Telecom (TAIEX: 2412, NYSE: CHT) is Taiwan's leading telecom service
provider. The Company provides fixed-line, mobile and Internet and data
services to residential and business customers in Taiwan.

Contact:

Fu-fu Shen
Phone:+886-2-2344-5488
Email: chtir@cht.com.tw

SOURCE Chunghwa Telecom Co., Ltd.

Website: http://www.cht.com.tw
Website: http://www.cht.com.tw/en/ir/stockit-ff.html
 
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