Chunghwa Telecom Co Ltd (CHT) 2024 Q4 法說會逐字稿

Good afternoon, ladies and gentlemen. Welcome to Chunghwa Telecom conference call for the company's fourth-quarter 2024 operating results. (Operator Instructions) And for your information, this conference call is now being broadcasted live over the Internet and webcast replay will be available within an hour after the conference is finished. Please visit CHT IR website, www.cht.com.tw/ir under the IR Calendar section.

女士們、先生們，午安。歡迎出席中華電信2024年第四季營運業績電話會議。（操作員指示）供您參考，本次電話會議現在正在互聯網上現場直播，網絡直播重播將在會議結束後一小時內提供。請造訪 CHT IR 網站 www.cht.com.tw/ir 下的 IR 日曆部分。

And now, I would like to turn the call over to Ms. Angela Tsai, Assistant Vice President of Investor Relations. Thank you. Ms. Tsai, please go ahead.

現在，我想將電話轉給投資者關係助理副總裁 Angela Tsai 女士。謝謝。請蔡小姐發言。

Thank you. I'm Angela Tsai, Assistant Vice President of the Financial Department for Chunghwa Telecom. Welcome to our fourth-quarter 2024 results conference call. Joining me on the call today are our President, Rong-Shy Lin; and our Chief Financial Officer, Audrey Hsu.

謝謝。我是蔡安琪，中華電信財務部協理。歡迎參加我們的 2024 年第四季業績電話會議。今天與我一起參加電話會議的還有我們的總裁 Rong-Shy Lin；以及我們的財務長 Audrey Hsu。

During today's call, management will begin by providing the CEO's -- the rest achievements of our company and our business overview of the fourth quarter followed by a discussion of our segment and the financial results. After we will move on to the question-and-answer portion of the call.

在今天的電話會議上，管理層將首先向執行長介紹公司的其他成就和第四季度的業務概況，然後討論我們的部門和財務表現。之後我們將繼續進行通話的問答部分。

On slide 2, please read our disclaimers and note concerning forward-looking statements. Now without further delay, I will turn the call over to President, Rong-Shy Lin, please go ahead.

在第 2 張投影片中，請閱讀我們有關前瞻性陳述的免責聲明和說明。現在，不再拖延，我將把電話轉給林榮希主席，請您發言。

Thank you, Angela, and hello, everyone. Welcome to our fourth-quarter 2024 results conference call. To begin with, I would like to report our financial performance for year 2024. Thanks to our team's relentless efforts on Chunghwa Telecom's operating income, income before tax and the EPS for 2024 all exceeded the upper end of our forecast, highlighting our strong execution and effective strategic direction.

謝謝你，安吉拉，大家好。歡迎參加我們的 2024 年第四季業績電話會議。首先，我想報告我們 2024 年的財務表現。感謝團隊不懈努力，中華電信營運利益、稅前利益及2024年每股盈餘都超越我們預測的上限，凸顯我們強大的執行力及有效的策略方向。

Revenue-wise, our four-year revenue reached a seven-year high, driven by robust growth across all of our business sectors. Notably, our full-year EPS of TWD4.8 also marked a seven-year high, continuing the strict of five consecutive years of annual growth.

從收入方面來看，由於所有業務部門的強勁成長，我們的四年收入達到了七年來的最高水準。值得一提的是，全年每股收益達4.8元新台幣，創七年來新高，延續五年成長的強勁動能。

This achievement underscore our unwavering commitment to innovation, operational excellence and delivering sustained value for our stakeholders. In collaboration with NTT, we showcased an ultra low latency immersive video show in the fourth quarter via the world's first international network connection powered by our own technology.

這項成就彰顯了我們對創新、卓越營運和為利害關係人提供持續價值的堅定承諾。我們與NTT合作，在第四季度透過世界上第一個由我們自己的技術提供支援的國際網路連線展示了超低延遲沉浸式視訊節目。

We successfully reduced the VR-induced sickness in the exhibition, enabling the new virtual viewing solution. Additionally, our partnership in Open cooperation opens new avenues for global opportunities. Chunghwa Telecom is the only telecom in Taiwan, capable of offering open ran testing has successfully supported Taiwanese vendors in securing funding from the US government for opening development. The collaboration highlights our cutting-edge technological capability and a unique position in accelerating commercialization of the open ran within value chain.

我們成功減少了展覽中因VR而引起的暈動症，實現了新的虛擬觀看解決方案。此外，我們在開放合作方面的夥伴關係為全球機會開闢了新的途徑。中華電信為台灣唯一提供Open RAT測試的電信業者，成功協助台灣廠商取得美國政府開放研發經費。此次合作凸顯了我們的尖端技術能力和在加速價值鏈中開放式商業化方面的獨特地位。

Furthermore, we look forward to utilizing OneWeb and SES satellite resources to roll out commercial services by the first half of 2024, further driving the growth in satellite-related revenue.

此外，我們期待利用OneWeb和SES衛星資源在2024年上半年推出商業服務，進一步推動衛星相關收入的成長。

Lastly, I would like to highlight that in the fourth quarter, we once again maintained our position in 2024, Dow Jones Sustainability World index and emerging market index, we also received the highest arm from the ESG corporate and represents the only Taiwanese telecom included in the Newsweek world's most trustworthy companies 2024 list.

最後，我想強調的是，在第四季度，我們再次保持了2024 年道瓊斯可持續發展世界指數和新興市場指數中的地位，我們還獲得了ESG 企業的最高評級，並且是唯一一家被納入的台灣電信公司《新聞週刊》2024年全球最值得信賴的公司名單。

This rationalization reaffirmed our commitment to sustainability and leadership in the responsible business growth. Looking ahead -- looking ahead into 2024, Chunghwa Telecom is confident in maintaining its leading position across all key benchmark in our industry. Now, let's move on to the business overview of the fourth quarter of 2024.

這項合理化措施再次堅定了我們對永續發展以及負責任的業務成長領導地位的承諾。展望未來－展望2024年，中華電信有信心在產業所有關鍵基準上保持領先地位。現在，讓我們來看看2024年第四季的業務概況。

Please turn to page 5 to review our leading position in Taiwan's mobile market. Based on the statistics from Taiwan's telecom regulator of November, our overall subscriber shares of Taiwan's mobile market reached 37.9% achieving its 11th consecutive quarter-over-quarter increase.

請翻到第5頁回顧我們在台灣行動市場的領先地位。依據台灣電信管理機構11月統計，本公司於台灣行動市場整體用戶佔有率達37.9%，連續11季季成長。

We are happy to see ongoing subscriber growth. Even more excitingly, our 5G subscriber share surpassed our mobile subscriber share, reaching 38.8% and maintaining our position as an industry leader. We are glad to see our year-over-year growth of the postpaid subscribers increased 0.2 million with a significant growth of 0.7 million in 5G postpaid subscribers.

我們很高興看到用戶數量持續成長。更令人興奮的是，我們的5G用戶份額首次超過行動用戶份額，達到38.8%，並持續保持行業領先地位。我們很高興地看到，我們的後付費用戶年增了 20 萬，其中 5G 後付費用戶顯著增加了 70 萬。

Additionally, our revenue share maintained the highest in the industry at 40.3%, consistently outperforming our subscriber share and reflecting our strong and healthy growth. According to the financial disclosure of domestic industry players, we also learned that from January 2024, our quarterly subscriber net adds outperformed peers for every quarter throughout this year. Along with our steady 5G penetration, our mobile service revenue recorded a 1.7% year-over-year increase in the fourth quarter and a 3% year-over-year growth of the full year of 2024.

此外，我們的收入份額維持行業最高水平，為40.3%，持續超過我們的用戶份額，反映出我們強勁而健康的成長。我們也從國內產業廠商的財務揭露中了解到，自2024年1月起，我們全年每季的季度用戶淨增量都優於同業。隨著5G普及率的穩定提升，我們的行動服務營收在第四季年增1.7%，2024年全年較去年同期成長3%。

In the fourth quarter, we are pleased to see the average monthly fee uplifted from 5G migration, showing a 45% increase, maintaining its healthy momentum.

第四季度，我們高興地看到平均月費因5G遷移而上漲，增幅達到45%，保持了健康的勢頭。

Let's move on to slide 6 for an update of our outperforming fixed broadband business. In the fourth quarter, our cross tier upgrade promotion package continued to be well received as more than 70% of the package adopters, choose service offering of 300 megabits per second and above, including the highest speed offering of 1 gigabit per second. As a result, on a year-over-year basis, the number of subscribers with speeds of 300 megabits per second and above, increased by 17%, maintaining its double-digit growth and our subscriber net adds of 1 gigabit per second service doubled, which is encouraging.

讓我們轉到第 6 張投影片，了解我們表現優異的固定寬頻業務的最新情況。第四季度，我們的跨層升級促銷套餐繼續受到好評，超過 70% 的套餐採用者選擇每秒 300 兆比特及以上的服務，包括最高速度每秒 1 千兆比特的服務。因此，與去年同期相比，300兆位元每秒及以上速度的用戶數量增加了17%，維持了兩位數的成長，1千兆位元每秒服務的用戶淨增數翻了一番，這是令人鼓舞的。

Given the success, our total number of fixed broadband subscribers also saw an increase in the fourth quarter. Thanks to our successful speed upgrade strategy, our fixed broadband revenue and the ARPU continued to increase by 2.9% and 1.7% a year, respectively, and we are confident that this growth will persist.

鑑於這一成功，我們的固定寬頻用戶總數在第四季度也實現了成長。由於我們成功的速度升級策略，我們的固定寬頻收入和ARPU每年分別持續成長2.9％和1.7％，我們有信心這種成長將持續下去。

Now, let's get a closer look at the performance of our business group. Page 8 presents our CBG's performance. In the fourth quarter, the total CBG revenue increased by 2.2% year-over-year, driven by the increase of mobile service revenue, resulting from 5G migration and the subscriber growth along with the increased fixed broadband revenue owing to the successful speed upgrade strategy.

現在，讓我們仔細看看我們業務集團的表現。第 8 頁展示了我們的 CBG 的表現。第四季度，CBG 總營收年增 2.2%，主要得益於 5G 遷移和用戶成長帶來的行動服務收入增加，以及成功的提速策略帶來的固定寬頻收入增加。

In addition, sales revenue rose year-over-year mainly due to the stronger smartphone sales. Our CBG's income before tax grew TWD077 billion year-over-year, primarily due to the strong performance of our core business and a onetime impairment loss recognized in the fourth quarter of 2023.

此外，銷售收入年增主要由於智慧型手機銷售強勁。我們 CBG 的稅前收入年增了 0.77 億新台幣，主要得益於我們核心業務的強勁表現以及 2023 年第四季確認的一次性減損損失。

Slide 9 further illustrates our consumer business group highlights. In the fourth quarter, our multiple play packages with service offering of mobile, fixed broadband and WiFi altogether, continued to deliver outstanding year-over-year growth of 57%. This success is attributable to the strength of our quality networks and the effectiveness of our reward point strategy.

幻燈片 9 進一步展示了我們的消費者業務集團的亮點。第四季度，我們涵蓋行動、固定寬頻和WiFi等服務的多項套餐持續實現年成長57%的優異成績。這項成功歸功於我們優質網絡的實力和獎勵積分策略的有效性。

In the fourth quarter, we were extremely proud to see that Taiwan won the World Baseball Softball confederations premium for the first time. This remarkable event following the popular Olympic games in the third quarter, further boosted our video service subscription, which reached a record high with 15.2% year-over-year increase, with particular growth from our OTT brand, Hami Video. Revenue from both subscription and advertisement on the platform continue to grow as well, and we are committed to maintain the positive momentum by consistently investing in the popular content going forward.

第四季，我們非常自豪的看到台灣首次贏得世界棒壘球聯合會的冠軍。這一重大事件是繼第三季度火爆的奧運會之後舉行的，進一步推動了我們的視頻服務訂閱量同比增長15.2%，創歷史新高，其中我們的OTT品牌哈米視頻的增長尤為顯著。該平台的訂閱和廣告收入也在持續成長，我們致力於透過持續投資熱門內容來保持積極的勢頭。

In addition, our consumer cybersecurity subscription also surged by at 22 years over years in the fourth quarter, steadily increasing its revenue contribution as expected. Thanks to our ongoing effort in the business mentioned we have reached a milestone of 3 million subscriber service as the -- as of December 2024, including around 2 million Wi-Fi device subscription, more than 1 million subscription of Hami videos and the consumer cybersecurity services we are optimistic with the continued growth in the coming year.

此外，我們的消費者網路安全訂閱量在第四季也較去年同期成長了22%，其營收貢獻如預期般穩定增加。由於我們在上述業務上的持續努力，截至 2024 年 12 月，我們已達到 300 萬用戶的里程碑，其中包括約 200 萬 Wi-Fi 設備訂閱、超過 100 萬的哈密視頻訂閱和消費者網絡安全我們對未來一年服務的持續成長充滿信心。

Please turn to slide 10 for an overview of our Enterprise business group performance. In the fourth quarter, EBG's total revenue increased by 10.2% year-over-year primarily driven by a robust 24.1% year-over-year growth in ICT business revenue. Major growth drivers such as IDC, cloud and cybersecurity services delivered a strong performance and demonstrated around 50% year-over-year growth fueled by both projects and recurring revenue.

請翻到第 10 張投影片來了解我們企業業務集團績效的概況。第四季，EBG總營收年增10.2%，主要得益於ICT業務營收年增24.1%。IDC、雲端和網路安全服務等主要成長動力表現強勁，在專案和經常性收入的推動下，年增約 50%。

Despite the ongoing 5G migration and the fixed broadband speed upgrades, which continued to positively contribute to related service revenue the decline in mobile voice revenue and fixed voice revenue resulted in relatively flat year-over-year performance in our EBG core business. This, in turn, contributed to a decline in EBG's income before tax on a year-over-year basis.

儘管正在進行的5G遷移和固定寬頻速度升級繼續對相關服務收入產生積極貢獻，但行動語音收入和固定語音收入的下降導致我們的EBG核心業務同比業績相對持平。這反過來又導致 EBG 的稅前收入年減。

Slide 11 illustrates our enterprise business highlights. We are excited to report the strong performance of our ICT emerging business in the fourth quarter with its revenue increased by 24% -- 33% year-over-year. The growth was driven by strong performance across our major pillars and the recurring revenue growth from all service offering.

幻燈片 11 展示了我們的企業業務亮點。我們很高興地報告，我們的ICT新興業務在第四季度表現強勁，其營收年增24％至33％。成長的動力來自於我們主要支柱的強勁表現以及所有服務產品的經常性收入成長。

For our IDC, cloud and cybersecurity business, we saw a year-over-year revenue increase of 62%, 46% and 56%, respectively. For IDC business, we were happy to see revenue contribution from several large projects completed for the high-tech companies in Taiwan as well as the successful construction of the first overseas AIDC in for our enterprise customer.

我們的IDC、雲端和網路安全業務的收入分別年增62%、46%和56%。IDC業務方面，我們很高興地看到為台灣高科技公司完成的數個大型專案為公司帶來了收入貢獻，同時為企業客戶成功建立了國內首個海外AIDC。

Additionally, higher-margin rates and the new IDC in operation also contributed to recurring revenue ensuring the group maintained a stable consolidated IDC market share in Taiwan at more than 50%. Also, in fourth quarter, our cybersecurity business achieved its consecutive quarter of year-over-year growth, including subsidiary contributions.

此外，較高的利潤率及新IDC的投入營運也為經常性收入做出了貢獻，確保集團在台灣的綜合IDC市場份額保持穩定在50%以上。此外，在第四季度，我們的網路安全業務連續一個季度實現同比增長，包括子公司的貢獻。

For the fourth quarter, we are proud to report that the successful development of Taiwan first 5G unmanned vehicle solution for smart harbor inspection, this solution are capable of operating across land, sea and sky. In every robot to handle post transportation, unmanned vehicles to clean marine pollution and drone to rescue in water. We expect to further expand this application into other sectors, including firefighting, coast petroling, forest ecosystem protection, et cetera.

第四季，我們很榮幸地宣布成功研發台灣首個應用於智慧港巡檢的5G無人車解決方案，可實現陸海空全方位作業。在每個崗位上，都有機器人負責運輸，有無人駕駛船負責清理海洋污染，還有無人機負責水上救援。我們希望進一步將此應用擴展到其他領域，包括消防、海岸防衛隊、森林生態系統保護等等。

Lastly, we remain optimistic about AI-driven opportunities this year. We have leveraged generative AI technology to deliver projects in smart government and health care sectors, enhancing efficiency and reducing manpower cost through for troubleshooting and information retrieval.

最後，我們仍然對今年人工智慧驅動的機會持樂觀態度。我們利用生成式人工智慧技術在智慧政府和醫療保健領域開展項目，透過故障排除和資訊檢索提高效率並降低人力成本。

Additionally, we are utilizing AI medical assistance to generate medical summarize and reduce paperwork and we believe that more generative AI application will emerge to create opportunities in the future. Slide 12 illustrates our international business group performance. In the fourth quarter, IBG's total revenue dipped slightly by 2.3% mainly due to the decline in international voice revenue. However, as our robust business grew and its demand continued to increase IBG'S income before tax increased year-over-year.

此外，我們正在利用人工智慧醫療援助來產生醫療摘要並減少文書工作，我們相信未來將會出現更多的生成性人工智慧應用來創造機會。幻燈片 12 展示了我們國際業務集團的業績。第四季，IBG總營收小幅下滑2.3%，主要由於國際語音收入下降。然而，隨著我們業務的強勁成長及其需求的持續增加，IBG的稅前收入逐年增加。

As we continue to expand our IBG business to capture the increasing demand -- in the fourth quarter, we agreed to close the contract with a well-known global hyperscale hyperscale. This agreement secures capacity in our under construction IBG for the higher scale and ensures the long-term stable revenue generation of Chunghwa Telecom.

隨著我們繼續擴大我們的 IBG 業務以滿足不斷增長的需求——在第四季度，我們同意與知名的全球超大規模資料中心簽訂合約。此協議將確保中華電信興建中的IBG能有更大規模的容量，確保中華電信長期穩定的營收。

Additionally, our overseas subsidiaries has achieved a remarkable business success worldwide in 2024. By providing our ICT solution to high-tech companies in Japan and the United States as well as providing ICT total solution to the PCB industry in Southeast Asia and providing our exceptional capabilities.

此外，我們的海外子公司在2024年在全球範圍內取得了令人矚目的業務成功。透過向日本、美國的高科技公司提供我們的ICT解決方案以及向東南亞的PCB產業提供ICT整體解決方案並提供我們卓越的能力。

More excitingly, our CapEx allocation in undersea cables has also yielded positive results. Although the SDG tool and the, international submarine cable is still awaiting completion.

更令人興奮的是，我們在海底電纜的資本支出分配也取得了積極的成果。儘管永續發展目標工具和國際海底電纜仍有待完成。

Currently, 80% of the capacity we invested in, was sold in the fourth quarter of 2024. This is expected to bring revenue in the second half of this year, reflecting strong demand for the international bandwidth and with the success of our investment strategy. Now I would like to turn the call to Audrey for our financial highlights.

目前，我們投資的80%產能已於2024年第四季售出。預計這將在今年下半年帶來收入，反映出對國際頻寬的強勁需求以及我們投資策略的成功。現在我想請奧黛麗介紹一下我們的財務亮點。

Okay. Thank you, President Lin. Good afternoon, everyone. It's my pleasure to present an overview of our financial performance for the fourth quarter of 2024 and share our financial guidance for 2025.

好的。謝謝林校長。大家下午好。我很高興概述我們 2024 年第四季的財務表現並分享我們 2025 年的財務指引。

Let's turn to page 14, which highlights our income statement. For the fourth quarter of 2024, revenue exceeded $55 billion. This represents a 5.6% increase compared to the same quarter last year. This growth was primarily driven by significant expansion in our ICT business.

我們翻到第 14 頁，這一頁重點介紹了我們的損益表。2024 年第四季，營收超過 550 億美元。與去年同期相比，成長了 5.6%。這一成長主要得益於我們 ICT 業務的大幅擴張。

Income from operations and net income increased by 11.5% and 9%, respectively. Additionally, earnings per share for the quarter reached 1.16, marking the highest fourth quarter EPS in 9 years.

營業收入和淨收入分別成長11.5%和9%。此外，本季每股收益達到1.16，創下9年來第四季的最高每股收益。

Let's now move to the columns for the full year of 2024 as we shift our focus from quarterly to annual performance. For the entire year, revenue increased by 3.1% compared to 2023, driven by sustained strong performance across ICT, mobile and broadband services.

現在讓我們轉到 2024 年全年的專欄，將重點從季度業績轉移到年度業績。就全年而言，由於 ICT、行動和寬頻服務持續強勁的表現，收入較 2023 年增長了 3.1%。

Income from operations and net income increased by 1.1% and 0.8%, respectively, highlighting the steady growth of our core and ICT business. Earnings per share for the whole year reached 4.8%, while the EBITDA margin remained stable at 37.6%. This solid performance reflects the resilience and strength of our operations.

營業收入和淨收入分別成長1.1%和0.8%，核心業務和ICT業務穩定成長。全年每股盈餘達4.8%，EBITDA利潤率維持穩定在37.6%。這一穩健的表現體現了我們營運的韌性和實力。

Now let's move on to page 15 to review the balance sheet highlights. As at the end of 2024, total asset increased by 2% compared to 2023. The increase was largely attributable to the growth of our cash, other current monetary asset and long-term investments. Also, property planning equipment decreased primarily because the addition of new assets were less than a depreciation recognized.

現在讓我們翻到第15頁回顧一下資產負債表的重點。截至2024年底，總資產較2023年成長2%。成長主要歸因於我們的現金、其他流動貨幣資產和長期投資的成長。此外，財產規劃設備的減少主要是因為新資產的增加低於確認的折舊。

The total liability increased by 5.7% relative to the year-end of 2023 primarily due to the increase in accounts payable and contract liabilities. Additionally, the ratio remained stable and net debt over EBITDA remained at 0. A low debt level not only underscores our company's commitment to fiscal responsibility, but also enhances our resilience against economic uncertainties. So taken together, these metrics demonstrate the robustness and stability of our balance sheet.

總負債較2023年底增加5.7%，主要由於應付帳款和合約負債增加。此外，比率維持穩定，淨負債與 EBITDA 比率仍為 0。低債務水準不僅凸顯了我們公司對財政責任的承諾，也增強了我們抵禦經濟不確定性的能力。綜合起來，這些指標顯示了我們的資產負債表的穩健性和穩定性。

Now, let's turn to page 15, which provides the summary of our cash flow. Cash flows from operating activities increased by 6.2% year over year, primarily due to the increase in accounts payable and contract liabilities between 2024 and 2023. Capital expenditure for the year 2024 was TWD28.82 billion reflecting a 6.2% year-over-year decline and achieving 15% savings compared to the budgeted amount announced in our 2024 forecast. The reduction is part of our approach to optimize capital allocation.

現在，我們翻到第 15 頁，這一頁提供了我們的現金流量摘要。經營活動產生的現金流量年增6.2%，主要由於2024年至2023年期間應付帳款和合約負債的增加。2024 年資本支出為 288.2 億新台幣，年減 6.2%，與我們在 2024 年預測中公佈的預算金額相比節省了 15%。減資是我們優化資本配置方法的一部分。

Also result, free cash flow increased by 14.9% year on year, highlighting the strength of our operating efficiency and disciplined financial management. The robust free cash flow enhances our financial flexibility. This enable us to pursue strategic growth opportunities while reinforce our long-term sustainability. Okay. Earlier, I was comparing our results relative to last year.

結果，自由現金流年增了 14.9％，突顯了我們的營運效率和嚴格的財務管理的優勢。強勁的自由現金流增強了我們的財務靈活性。這使我們能夠追求策略成長機會，同時增強我們的長期永續性。好的。之前，我正在將我們的結果與去年進行比較。

Now, I'm shifting focus to compare our 2024 performance relative to our forecast. On page 17, you will see the table summarize our operating performance relative to our forecast. During the fourth quarter of 2024, revenue exceeded our targets. Key performance measures, including income from operations, net income and EPS were all in line with our forecast. The performance was supported by ongoing efforts to streamline operations and control costs. Store network construction activity also results in depreciation expense coming in below expectations.

現在，我將重點轉移到比較我們 2024 年的表現與我們的預測。在第 17 頁，您將看到表格總結了我們的相對於預測的營運績效。2024 年第四季度，營收超過了我們的目標。營業收入、淨收入和每股盈餘等關鍵績效指標均符合我們的預測。這一業績得益於持續精簡營運和控製成本的努力。門市網路建設活動也導致折舊費用低於預期。

Moving to the column for the full year, revenue in 2024, aligned with our forecast. In addition, income from operations, net income and EPS all surpassed our guidance. This better-than-expected results were primarily driven by the steady growth of our core business and enhance profitability of our ICT segment.

前往全年專欄，2024 年的收入與我們的預測一致。此外，營業收入、淨收入和每股盈餘均超出我們的預期。優於預期的業績主要得益於我們核心業務的穩定成長和ICT部門獲利能力的增強。

This concludes our review of the financial results for the fourth quarter and the full year of 2024. Finally, I would like to provide our forecast for 2025.

這是我們對 2024 年第四季和全年財務表現的回顧。最後，我想提供我們對 2025 年的預測。

Moving on to slide 18, please refer to our guidance for 2025. Looking ahead, we anticipate total revenue for 2025 to grow by 1.2% to 1.6% compared to 2024. The growth is expected to be driven by strong growth momentum in our core business, supported by the success of our 5G service and broadband speed upgrade promotions, which are boosting our subscriber numbers and ARPU.

繼續第 18 張投影片，請參閱我們對 2025 年的指導。展望未來，我們預計 2025 年的總營收將比 2024 年成長 1.2% 至 1.6%。預計成長將主要得益於我們核心業務的強勁成長勢頭，以及我們 5G 服務和寬頻速度升級推廣的成功，這些推廣將提高我們的用戶數量和 ARPU。

Additionally, ICT business is also expected to contribute to revenue growth as we continue to see digital transformation opportunities in the market. For operating costs and expenses, we are -- expect it to rise by 2.4%, reverting our continued investment in talent, including enhancement to employee benefits, an ongoing infrastructure that support future business development in core and emerging business and also higher electricity costs stemming from rate adjustment, which would also trade up operation and maintenance aspects. Given these projections, we expect our EPS to be in the range between 4.62 and 4.82.

此外，隨著我們繼續看到市場上的數位轉型機會，ICT 業務也有望促進收入成長。對於營運成本和費用，我們預計它將成長 2.4%，恢復我們對人才的持續投資，包括提高員工福利、支援核心和新興業務未來業務發展的持續基礎設施，以及因電力成本上漲而導致的費率調整也會對營運和維護方面產生影響。根據這些預測，我們預計每股收益將在 4.62 至 4.82 之間。

In terms of CapEx, we have budgeted TWD32.36 billion for 2025. Our mobile-related CapEx is expected to decline by 13.3% year-on-year. This continues a four-year consecutive down trend since 2021. In contrast, nonmobile-related capital expenditures are expected to increase by 25.2% year over year, driven by investments to support business expansion into AI, Internet data center, the construction of submarine cables and other strategic initiatives. Our capital expenditure strategy focused on maintaining a competitive edge, enhancing network resilience and security and advancing ESG commitments by eliminated energy-intensive equipment. Thank you for your attention. At this time, we would like to open the door for questions.

在資本支出方面，我們為2025年預算了323.6億新台幣。我們的行動相關資本支出預計將年減13.3%。這延續了自 2021 年以來連續四年的下降趨勢。相較之下，非行動相關的資本支出預計將年增25.2%，這得益於支持人工智慧、網路資料中心、海底電纜建設和其他策略性舉措的業務擴展的投資。我們的資本支出策略專注於保持競爭優勢、增強網路彈性和安全性，並透過淘汰能源密集型設備來推動 ESG 承諾。感謝您的關注。現在，我們願意敞開心扉，接受提問。

(Operator Instructions)

（操作員指令）

Okay. We received a question from our platform. Could you please elaborate a bit on how much we are investing in AI and some key initiatives or revenue opportunities this year? As I just mentioned that for the forecast of the CapEx for the nonmobile parts, there is an increase of the CapEx in the AIDC center. We don't disclose the breakdown for our non-CapEx -- mobile CapEx, but we can give you some overview of our company's mission to -- related to AI.

好的。我們收到了來自我們平台的一個問題。您能否詳細說明我們今年在人工智慧方面的投資以及一些關鍵舉措或創收機會？正如我剛才提到的，對於非移動部分的資本支出預測，AIDC中心的資本支出增加。我們不會揭露非資本支出（行動資本支出）的明細，但我們可以向您提供一些與人工智慧相關的公司使命的概述。

We are fully committed to leverage AI to enhance our operations and drive digital transformation for our business. . So the through strategic partnership at innovation, we basically -- we will cover the internal AI application. We will also cover the external that's something that AI infrastructure and platforms give you some examples like AI data center, we launched sovereign AI service optimized cloud resources and integrate AI solution of growth cloud and on-premise environment with a focus on sustainability and intelligence.

我們全力致力於利用人工智慧來增強我們的營運並推動業務的數位轉型。。因此，透過創新方面的策略合作夥伴關係，我們基本上可以涵蓋內部人工智慧應用。我們還將介紹外部方面，即AI 基礎設施和平台為您提供的一些範例，例如AI 資料中心，我們推出了主權AI 服務優化的雲端資源，並整合了成長雲和內部環境的AI 解決方案，重點關注永續性和智能化。

Also, we also have AI factory. We provide growth cloud solution, including standardized public cloud bundles and resource management. And we also built some fast capabilities, including domain-specific AI digital twins and AI region. So other than that, we may also strengthen our AI capabilities through collaboration with leading academic institution, research centers, cloud providers and NVIDIA to accelerate development and deployment. So this is just to give you some overview of our strategy for the AI in the coming years.

另外我們還有AI工廠。我們提供成長型雲端解決方案，包括標準化的公有雲捆綁和資源管理。而我們也建構了一些快速能力，包括領域特定的AI數位孿生和AI區域。除此之外，我們還可以透過與領先的學術機構、研究中心、雲端供應商和 NVIDIA 的合作來增強我們的人工智慧能力，以加速開發和部署。這只是向您概述我們未來幾年的人工智慧策略。

We have another question. It's about the outlook of the ICT business in 2025, okay? For the ICT business, for -- in 2024, we are glad to see that our ICT revenue has successfully exceeded our full year guidance. And for 2025, we are also focused on the -- our major pillars of the ICT services like the IDC cloud, cybersecurity, 5G private networks, the sectors that we have a great performance in 2024. And -- but what we have to do is that we will focus more on improving our ICT project margin to enhance the overall ICT performance.

我們還有一個問題。這是關於2025年ICT業務的展望，好嗎？對於 ICT 業務，到 2024 年，我們很高興看到我們的 ICT 收入已成功超出我們的全年預期。展望 2025 年，我們還將重點關注 ICT 服務的主要支柱，例如 IDC 雲端、網路安全、5G 專用網絡，這些領域將在 2024 年取得出色表現。但我們要做的是，我們將更加重視提高我們的ICT專案利潤率，以增強整體ICT效能。

In addition, as the recurring revenue percentage continue to increase in the percentage of the total ICT revenue. We think that the increase of recurring revenue will further stabilize our ICT revenues and further increase the overall ICT margin in 2025.

此外，經常性收入在ICT總收入中所佔的比例不斷增加。我們認為經常性收入的增加將進一步穩定我們的ICT收入，並在2025年進一步提高整體ICT利潤率。

Ladies and gentlemen, we are now in Q&A session. (Operator Instructions)

女士們、先生們，我們現在進入問答環節。（操作員指令）

We have one more question from the platform. It's about -- do you have any plans to improve shareholder return like raising the payout?

我們還有一個來自平台的問題。這是關於——您是否有任何計劃來提高股東回報，例如提高股息？

As mentioned before, that maximum shareholder returns is always one of the key objectives of our corporations. As the dividend policy, we are a company that focus very much on the sustainability, keeping a sustained dividend policies always our goal. And dividend policy is subject to the Board of Directors' approval. But I expect that the policy well, based on the -- will be consistent with the previous policy.

如同先前所提到的，最大化股東回報始終是我們公司的主要目標之一。至於股利政策，我們是一家非常注重永續性的公司，而維持持續的股利政策始終是我們的目標。而股利政策須經董事會批准。但我預計，該政策將與先前的政策保持一致。

So as the EPS increase continuously, we may expect that shareholders will receive a continuous increase in dividends following based on our consistent dividend policy. So this is the basic guidance.

因此，隨著每股盈餘的不斷增加，我們可以預期，根據我們一貫的股利政策，股東將獲得持續增加的股利。這是基本的指導。

We have another question is given the non-mobile CapEx is going up by shop, 25% in 2025, can you provide more details about where this CapEx is going including how much is going for AI data centers?

我們還有一個問題是，鑑於非行動資本支出將逐店上漲，到 2025 年將達到 25%，您能否提供有關這些資本支出去向的更多詳細信息，包括用於 AI 數據中心的資金數額？

Thanks for the question. As I mentioned, that we don't disclose the breakdowns of our non-mobile CapEx. The -- but as we mentioned, many of our segments, for the corporation ICT, you can imagine that we will deploy our capital resources based on -- mainly like AIDC Center, the submarine and satellite, et cetera. So just give you -- as you can see that we see the digital transformation opportunities in the market mainly from the AI and also cloud computing and also the cybersecurity. And this is engine, the growth engine for the company.

謝謝你的提問。正如我所提到的，我們不會揭露非行動資本支出的細目。但正如我們所提到的，對於 ICT 公司來說，我們的許多部門，你可以想像我們將主要基於 AIDC 中心、潛艇和衛星等來部署我們的資本資源。所以正如你所看到的，我們看到市場上的數位轉型機會主要來自人工智慧、雲端運算和網路安全。這就是引擎，公司的成長引擎。

So although that at this moment, that 25% increase is the expectation, but we believe that I just want to remind that our CEO will always want us to try to simplify -- to apply the 80-20 rule to prioritize resources on the most impactful projects, ensuring optimal allocation and maximum returns, we think that the extra spending of this year will probably will decrease if that the 80%, 20% rule to do the right things right, principal continue to be applied, we will streamline our operations, so we probably will save more capital expenditures in the future.

因此，儘管目前預計將成長 25%，但我們相信，我只是想提醒一下，我們的執行長總是希望我們嘗試簡化——應用 80-20 規則，將資源優先用於最重要的方面。力的項目，確保最佳配置和最大回報，我們認為，如果繼續應用80%、20% 的原則，即做正確的事情，今年的額外支出可能會減少，我們將精簡我們的運營，所以我們未來可能會節省更多的資本支出。

(Operator Instructions)

（操作員指令）

We have got another question. In terms of the revenue guidance of TWD1.2 billion to TWD1.6 billion in 2025, could you elaborate more on the growth drivers and breakdown of different segments?

我們還有另一個問題。對於2025年營收12億至16億新台幣的預期，您能否進一步闡述成長動力以及各細分領域的細分情況？

Building on the foundation of our success in 2024, we believe this positions us for a strong future. So in -- I just try to remind you, in 2024, we maintain our leadership in Taiwan's mobile market. We achieved 40% of revenue and growth in 5G postpaid subscription, and we also have a 38.8% of 5G subscriber market share in Taiwan. And also fixed broadband, if you remember our upgrade promotion also provide very highly effective doubling 1G subscriber net adds with over 70% of the doctors choosing 300 mbps and above.

我們相信，在 2024 年取得成功的基礎上，這將為我們帶來強大的未來。所以——我只是想提醒你，到 2024 年，我們將保持在台灣行動市場的領導地位。我們在5G後付費用戶方面實現了40%的收入和成長，並且在台灣擁有38.8%的5G用戶市場份額。還有固定寬頻，如果您還記得的話，我們的升級促銷活動還提供了非常高效的雙倍 1G 用戶淨增加，超過 70％ 的醫生選擇 300 mbps 及以上。

So this strong performance, we believe that we can set a stage for the long-term opportunity and for the 2025. So the growth opportunities we would like to continue this momentum in the mobile industry -- in the mobile. And other than I just share a lot about the ICT opportunity, we still believe that the high growth were coming a lot from through the ICT business segments.

因此，我們相信，憑藉這一強勁表現，我們可以為長期機會和 2025 年奠定基礎。因此，我們希望在行動產業繼續保持這種成長勢頭。除了我剛才分享的許多有關 ICT 機會之外，我們仍然相信高成長很大一部分來自於 ICT 業務部門。

(Operator Instructions)

（操作員指令）

Okay. We have one more question from the platform that it's about our CapEx breakdown. I think for the CapEx or the CapEx budget for 2025ING, as our CFO said, the mobile CapEx continue to decline. And the nonmobile -- for nonmobile parts, we have some increase. That's because that the increase mainly from the fixed line because the fixed line is the backbone to support the mobile and the fixed line services.

好的。我們從平台上也收到了另一個問題，關於我們的資本支出明細。我認為對於 2025ING 的資本支出或資本支出預算，正如我們的財務長所說，行動資本支出將繼續下降。對於非移動部分，我們有一些增長。這是因為成長主要來自固定線路，因為固定線路是支援移動和固定線路服務的骨幹。

And then the IDC and the undersea cable because we see great demand from the market that to require more capacity from the international bandwidth and then we see, as we disclosed from the presentation, you can see that we secure a lot of contracts with the hyperscaler to co-locate in our IDC. As we see the growth opportunities, so we continue to invest in these type of areas.

然後是IDC 和海底電纜，因為我們看到市場對國際頻寬的需求很大，需要更多的容量，然後我們看到，正如我們在演示中所揭露的那樣，你可以看到我們與超大規模企業簽訂了很多合約與我們共同設立 IDC。由於我們看到成長機會，所以我們會繼續在這些領域進行投資。

(Operator Instructions)

（操作員指令）

Thank you, ladies and gentlemen. If there are no further questions, I will turn it back over to President Lin. President Lin, please begin.

謝謝各位，女士們、先生們。如果沒有其他問題的話，我會把發言權交還給林校長。請林主席開始。

Thank you for your participation, and Happy New Year.

感謝您的參與，祝新年快樂。

Thank you, President Lin. And ladies and gentlemen, we thank you for your participation in Chunghwa Telecom conference. There will be a webcast replay within an hour, please visit www.cht.com.tw/ir under the IR Calendar section. You may disconnect now. Thank you again, and goodbye.

謝謝林校長。女士們、先生們，感謝各位朋友參加中華電信大會。一小時內將會有網路直播重播，請造訪 www.cht.com.tw/ir 下的 IR 行事曆部分。您現在可以斷開連線。再次感謝您，再見。