Good afternoon everyone and welcome. We have with us today our President Chee and CFO Sharon.

Both will share updates on and our performance for this quarter. Before we begin, I would like to remind everyone to pay close attention to the safe harbor statement on the first page of the presentation.

Thank you for your attention, and now let's proceed with Chee's presentation. Thank you.

Thank you, Gary. Good afternoon everyone.

Thank you for joining FET's IR call. We have the first quarter financial performance report.

We have a very solid first quarter, I would say, and to sum it up, we continue to set some record highs in this quarter, and then all the KPIs exceeded our guidance. If you look at our revenue, it comes at 2- $27.81 billion, and then the YoY is 6.8%.

Now since we consolidate ETC in January, here is another column here, if not to confuse you. For the restated, for the $26.73 billion, that is if we had ETC from January last year, then we have the apple-for-apple kind of comparison.

With that in the base, and then our YoY growth will be at 4%. Then I'd like to clarify that most of the 4%, not all of it, was really contributed by the organic FET growth, just to make that clear.

Then for the EBITDA, it's at a 3.6%. Since last year we already were using the equity method for the ETC, you see for the net income and the EPS, and it really doesn't make any difference.

Still we overachieve our board target, and come at 14.4%. I think our initial was at a single-digit growth, this was very good.

Next page, please. For the revenue at a 27.81, that is actually our history high for the first quarter.

Then that also marks a 22nd consecutive quarter of the revenue growth. Also, this growth driven by almost every area, I think all the areas contributed.

The steady 5G upgrade, and then the essential service expansion, they all gave us a solid growth. Then the handset sales, for the device, and then also the ICT deliveries.

Then when it comes to EBITDA, we have a $10.08 billion for this quarter. It is a historical high across all quarters, it's just for the quarterly result, it's the highest so far in FET's history.

Then this is due to all business segments have improved their margins YoY, and then so together they contribute to a 6.3% EBITDA growth YoY. For net income, it's a $3.71 billion, and it's a EPS $1.03.

It is also the highest quarterly result for 20 years in 20 years. The net income YoY growth is 14.4%, and we believe that's leading the industry.

Okay. Some financial metrics for your information.

Our net debt and net debt to EBITDA continue to improve, and our free cash flow remains very strong, and our CapEx is in line with our 2026 guidance so far, which is a $9.6 billion. Some breakdown on our business performance.

If you look at on the left-hand side, we have mobile and essential service, and by the way, this view doesn't include ETC. For the mobile and essential service, and that accounted for 52% of our entire revenue last year this quarter, and this year it has increased 2.3%, but because our pie is also increased, and then so overall it only accounted for 50% of the total revenue.

While ICT and fixed business, it has come from 18% and grew 12.8% to 19%, and this part does include the ETC contribution. For merchandise, it has grown very well, 11% to account for 31% of the total revenue in the first quarter this year.

For the mobile and essential services that I mentioned in the previous slide, the steady 4G to 5G upgrades with handset replacement, that really helped, and then also it resulted in a 42% monthly fees uplift for the 5G renewal for the first quarter. Then we have been managed the churns pretty well, and then so continue to hit record low for the postpaid is now come down to the 0.68%.

Then for consumer essential services, we have delivered strong growth, and each of the major area is looking at a double-digit growth. For the fraud prevention service, it is 65% YoY, and our digital entertainment is 22%, and then our insurance agency service has grown 11%.

For ICT and fixed business, for our homegrown products in the smart city and smart health areas, they all show a double-digit, and also security and cloud, they all showed double-digit growth. Overall, there are a 20% overall growth.

Then we do have some delays in some selected SI projects, and then otherwise our revenue would be even higher. They were offset by ETC's consolidation, otherwise this revenue number would be even higher.

Okay. Merchandise, we had a good spring handset launches, and that helped sustain some of the 5G upgrades and also the merchandise sales itself.

All right. Then if we zoom into the mobile business alone, for the first quarter, because we continue to see the upgrades and we perform very well in the NP market.

The mobile service revenue up 3% YoY in the first quarter, it is the 20th consecutive quarter of growth for the mobile service. Our ARPU remains to be number one in the industry, and so is our 5G penetration, which comes at a 48.4%.

Then in terms of the postpaid churn, I mentioned earlier just now, it is now at 0.68%. Some consumer service highlights.

For the mobile plans, I have challenged my team, how can we kind of go beyond these $499, $599, $799 kind of a price menu. Can we give some more TA-focused, target segment-focused pricing, and then though it's really taken into account that the target segment's needs or demands.

Last year we have done this for 50+, and this year the newest campaign is for the youth group, and we have the youth campaign. Then that would attract hopefully more of the younger users and give them more flexible 5G data with spend-to-earn lifestyle rewards.

This is also our effort to try to kind of educate our users: you don't always have to go with the unlimited plan, right? You really can plan for your usage, and even if you exceed that, you have plenty of ways to easily get the bandwidth that you need.

Okay. Then we also launched our 5G FWA home entertainment bundle service.

This is using the 5G as a fixed wireless access, and then we bundled with entertainment packages. For the first month, it's just since its launch, it actually has been received very well, and we have several stores they are out of stock on the hardware needed for it.

It's looking pretty good. Then we also launched a new service, and then it's called Taste Taiwan.

It's a new app. It's a one-stop dining service integrating the search, the booking, dining reviews, and also some coupons, or certificates that you can buy online, and that get some discounts.

Then so this is our plan to get more high-frequency kind of service that we can provide, and then also enrich our digital platform offering. This just launched a month or so, and we started kind of doing more promotion and marketing, and then so far we are pleased with the reception so far.

Okay. Then for the insurance agency, this area continues to be doing very well, and then the product managers also very aggressive.

Not only we do continue to do well with our device insurance, and then we have some other insurance programs that we offered, like our travel insurance, and then that further enhanced covering family and statutory infectious diseases. This actually was found quite helpful, and then the users found that kind of peace of mind.

Then so it actually helped lift the ARPU by 79%. Okay.

Our telemarketing sales has also gone very well, and then combining with our DCB, it's a direct carrier billing, and which really helped conversion of these telemarketing calls. Then also the renewal rate has increased to 88%, and it's a record high and it actually reached a record high mobile insurance revenue.

This area continues to do very well and continues to expand. For entertainment, for our video deliver very solid growth, and then in the first quarter for the paid subscribers has gone up by 27% YoY, is the revenue, about 22% YoY growth.

Live entertainment expanded with successful concerts. We have several concerts actually planned for later year, too.

Then, I'm not really into this, but then my team apparently knows what they are doing, all these events have been very popular, and the tickets are sold quickly. Okay.

Our FET Guardian Network, it has driven 65% YoY revenue growth, and also a big increase in terms of the paid subscribers that we see for the first quarter. Okay.

Then changing to the enterprise side, the business highlights. For the smart ICT area, the smart city, several of our homegrown products are getting traction, and then for the connected traffic intersection, this is a AIoT kind of solution, has been deployed more than 1,300 intersections in Taipei already, and then another 1,000 is already planned for the southern city.

Then we also have air quality monitoring solution that's deployed for three counties or cities in the first quarter alone. Also for the smart pole solution, that is actually government has a smart pole expansion initiative going on, and that's what we are kind of eyeing, and then we are targeting that.

This is a solution we co-created with the subsidiary InSynerger that we invested and acquired last year, okay, or this year, we completed. [Gary Lai: Jan.

1st] Okay. All right.

Then the smart energy management solution that we have deployed for 20+ university campuses. For smart health, we are expanding our Cloud HIS solution with the AI-enabled capabilities.

This will be done through some strategic investment, and it will drive validated and scalable long-term growth. We are very excited about this.

The same kind of solution can also apply to hospitals as well. This is more than the Cloud HIS area that it can be applied.

Both our FET telemedicine platform and also the FET Cloud HIS solutions have received ISO 27701 and ISO 22301 certifications. Then for the digital transformation area, our Microsoft LSP program actually doing very well.

For the first quarter, the business revenue has grown 51% YoY. It is really boosted by, I would say, first of all, the interest in AI, right?

It was definitely there. Then my team's ability through this professional service to help the interested companies to really help them with the AI adoption, and then also endorsing the Microsoft solutions, that definitely helped.

It helped boost our Microsoft sales and at the same time also help grow our professional service revenue as well. Then one of our own kind of homegrown solutions using the Microsoft AOAI is the Intelligent Angel, which was also exhibited at MWC this year in February, and it has received quite a bit of feedback.

Then a lot of telcos visited the booth at Microsoft, and then they were impressed because they say they heard a lot about AI for the telco, but then they only have heard it, and now they actually seen it, because we had a very detailed deck and then explain what we have done and how we did it. They found it very helpful.

With the similar kind of technology or approach, and then we have this Intelligent Angel used in IT areas. We have also received a lot of interest, and then also the pipeline for the first quarter is already built, is already full.

Okay. Then for the telecom-based SI area, we have secured several large-scale contracts during the first quarter, and it's really strengthen what we have for the mid-term to long-term kind of revenue momentum.

Also, it really re-emphasized or reassure our strategic position in the digital transformation value chain. Then this is not only for the enterprise, but also for government, especially government is very into the government resilience for their infrastructure and also a lot of these smart building for the ESG and all that.

Kind of ride on that trend, it's also helping a lot with our telecom-based area's growth. All together, our first quarter total awarded ICT contract values grew actually 84% YoY.

Okay. We have received some major honors and recognitions that we'd like to share.

For the DJSI, now is called DJBIC, we are ranked number one again among global telecom peers, and this is actually the fifth year that we have received this honor. Then S&P Global Sustainability Yearbook 2025 actually, it should be 2025, is we also ranked in the top 1% for global telecom companies, and it is also number one worldwide with a CSA score of 96.

Okay. Then for the CDP Climate Change, and then we also earned this Leadership A-List recognition, okay.

Then domestically in Taiwan, we ranked in the top 5% by Taiwan Stock Exchange among all the listed companies for Corporate Governance, and it is 12 years in a row among altogether there are seven companies who were able to achieve this 12 years, that's a long time. Okay.

Then for our product as the ISO certification I mentioned already, and then on the side, we also have invested in the movie Bad Boy Park, which actually received the Sundance Jury Award, and we believe it's the first Taiwanese-backed film to achieve this honor. Okay.

For FET's priorities, my IR used to ask me every quarter and I said, "You don't change your priority every quarter." That's why I took out the quarter and it is just our strategic priorities for the year, you don't have to see a change every time I have IR call.

We will continue to maximize our investment and subsidiary synergies. For the ESG solutions penetration, and then especially with the acquisition of InSynerger, okay, and then we do see a lot of synergy there with the products with a big varied deep product line that they have in the ESG area.

Also, our smart health, we definitely are making investment and making strategic investment here. Then in the Cloud HIS area and also how to make the smart hospitals.

This is definitely one area we are excited and then we will accelerate scaling up. Then for the ICT and also cloud business, we already are expanding in the overseas area in Southeast Asia, and in particular just in April, on April 1st, we actually completed the transaction with consolidating Renova for our subsidiary Nextlink.

This is one area how we can kind of use the synergy we have in Southeast Asia through various subsidiaries, and then how to maximize the synergy among them, and then also export our smart city, smart health solutions. We see a lot of going on there that we can really pursue.

Okay. Then we will expand the consumer service ecosystem via FET Mobile Circle.

This Taste Taiwan initiative that we just launched the app, you will probably see more of it in the weeks to come. Also for the Mobile Circle platform, we continue to do more to monetize the platform.

Then just two days ago, we launched the Adroid service that is a gaming platform. Then we help attract our users, and then the users download the game, and then we get a share of our profit.

That, for the first three days, I'm amazed to see how many people actually like to play games. Then so I'm pleased with the results, and then it's a platform it's really kind of realizing what we have always aimed for this platform economy.

I think it's really getting there. Okay.

Then also for AI, right? We want to not only use AI internally where we see a lot of productivity improvement, and then we also want to continue to monetize these AI solutions because not only we have used it internally, and we can help our partners with it.

Then we will because this year we actually quite a bit of CapEx in the network area, as you have seen in my budget when we discussed it in February IR call. To advance our 5G SA network build-out is definitely one major focus for this year, and my network team will be very busy.

At the same time, we are also planning for the LEO satellite services. Okay.

Then finally, a reminder for everyone: May 20th is our FET Annual Shareholders Meeting. Okay.

With that, I concluded my presentation, and we welcome your questions.

Hello, this is Charlie from HSBC. Congratulations to your very good results for the first quarter.

I have two questions. My first question is about the ICT segment.

I saw very strong growth for your contract value in the first quarter. I know there are a few segments, but may I know what was the most important driver here?

May you share more color in term of the profitability level or accounts receivable management, etc.? Thank you.

This is for the ICT contract, it's across public sector as well as the industry, but then I think the public sector also has a higher percentage. I think it is driven a lot by this resilience, right?

There are quite a bit of projects kind of centered around this resilience topic. Even with the enterprises or industry, we see the need for moving to the cloud or the build resilience to their current IT infra.

Many of them are in the telecom-based SI and also the smart city area. I think that probably covers it at least 80%.

That's about it. Then you are asking in terms of the margins, I think it is nothing special or different than what we typically have.

We are still talking about 20% or around 20%, yeah. Then of course, those estimates are based on when you have the case and then later on after the actual execution, it fluctuates.

Also, we always set aside some money for the risk management, and then those, of course, if you manage it well, and those will come back and then help even improve the margin more. Those I don't have a one number for you.

Did that answer all your questions, or is there anything I missed?

Please go on, and thank you. It sounded all good.

Maybe I proceed to the second question. My second question about the EBITDA margin, because I knew that the global energy price has been rising.

I wonder if it has any impact on your first quarter EBITDA margin, and how do you project the trend in the second quarter?

Not really in terms of the energy itself, but then we do see the hardware, the servers, the price increased because of the AI, the memories and all that. It did have some impact on some of the projects that for the POs you need to place and then now it takes longer, and we have to renegotiate some of the prices.

I think it will have more impact on the project before we commit, because in some of the cases like we may have clients, including the government, they have started engaging about some project, but then never really signed off on it, and then when you are not signed off on it, and then the cost have gone up. Then kind of have to go around and then again and then talk about what the estimate should be.

We have a little bit of like that, but then in terms of the first quarter, there was no impact as far as I know.

Got you, very clear. Thank you very much.

Sure, thank you, Charlie.

Hi, good afternoon, and thank you for the opportunity. Two questions from my side.

On the 5G standalone network build-out, what is the incremental revenue opportunity that you see, and what's the value that you're bringing to your customers? Second is again on the LEO satellites.

What's the use case that you see with LEO? What's the service that might look like for consumers?

Thank you.

For the 5G SA build-out, part of it is the network evolution, and then from 5G to 6G, our next generation. This SA from NSA to SA is one of the steps you have to go through.

Then on the other hand, right? The SA actually provides additional kind of a differentiated network, differentiated access.

There are more versatile features that we can offer to the users. Of course, they are not going to be free.

[laughter] So that's also an opportunity for the telcos to actually monetize our network a little bit more. Then until it is fully deployed, I don't see the return right away, but then we may have some services that could be offered to pockets of the network or some special venue.

Then in terms of the LEO services, that's also from a communications company per se, and then having these different technology, especially when they are kind of all converge eventually. Just like from the 6G to LEO.

There's definitely something that we don't want to miss out. Then also satellite service would provide another option for resilience, right?

Another like a backup from a data service per se. Then also it contributes to the infra resilience.

Actually last year when we had a typhoon one after another, our southern Taiwan is really very badly damaged. When we lost the power, and then we lost quite a bit of our radio stations, and satellite definitely played a very critical role in restoring these communications capabilities, which now people know you don't take them for granted.

When in these disaster kind of condition, it is very important and critical to stay connected. Satellite service definitely provide big help there.

We will also use it to cover anywhere that we wouldn't be able to cover 100% of the areas. This is definitely something that will improve or further increase our coverage and also resilience for the Taiwanese consumers and enterprises.

Thank you.

Sure, thank you, Ranjan.

if you have any questions that you think of later on, you can always call Gary and Amy. They'll be able to help you.

Thank you everyone to attend our first quarter 2026 investor conference, and see you next quarter. Thank you.

Thank you all, goodbye.