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Far EasTone "Innovation, Transformation, Restructure; For Now/Tomorrow";Accelerate Growth Potential of New Business Ventures; Far EasTone Tops the Telecom Industry for 7 Consecutive Years with Dividend Payout Ratio of 113%

Far EasTone (TAIEX: 4904) held the 2018 Annual Shareholders' Meeting today (June 14). Douglas Hsu, Chairman of Far EasTone, led the management team to present FET's performance in 2017 and its strategic planning to the shareholders. In addition, election results of eight Directors and three Independent Directors were also announced. The three elected Independent Directors are Professor Lawrence Lau Juen-yee ((Hong Kong economist, Academician of Academia Sinica, and the former Vice-Chancellor of the Chinese University of Hong Kong) Professor Chung Laung Liu (former President of National Tsing Hua University), who are re-elected as Independent Directors. Dr. Tim Pan (Senior Director of Microsoft Research Asia) is newly elected as Independent Director. They will participate in the operation of FET Board of Directors. Thanks to Dr. Pan’s expertise and extensive research in AI (artificial intelligence), FET is able to expand the horizons of Taiwan's telecommunication technology. Overall, FET has continued to deliver solid business performance, and has topped the telecommunications industry for 7 consecutive years with a dividend payout ratio of 113%.

Far EasTone undergoes vigorous transformation with stable growth across new ventures; State-of-the-art, industry-leading  smart IoT; Meticulous arrangement of AI utilization to reach into enterprise digital transformation markets
In comparison to 2017 figures, FET's revenue of new ventures is expected to grow by 47% in 2018, which accounts for 12% of total revenue. At the end of last year, FET established the country's first IoT Biosphere and ignited the growth momentum of IoT. Nearly 300 upstream and downstream software partners have participated in the testing of NB-IoT to date, making it the largest IoT Biosphere in the country.  Meanwhile, FET has taken various proactive measures to become the nation's leading provider in many IoT ventures. These include the acquisition of 3 million exclusive IoT numbers, conducting independent research on IoT position tracking service "Plover Advance Tracking Solution", providing nationwide coverage of NB-IoT network (service area covers the territory of Taiwan and outlying islands including Kinmen, Matsu, Penghu, and Green Island), offering NB-IoT experience program and billing plans, and also providing testimonies of successful NB-IoT transitions. In the future, FET will continue to expand and strengthen relevant applications of IoT, Big Data, Cloud, Information Security, and AI, in order to create a comprehensive digital lifestyle through the introduction of diversified digital content products and services.

FET Chairman Douglas Hsu stated that, "The world is changing so quickly. To avoid elimination, companies must use their own competitive advantages to transform and reshape the world's technological trends.  FET has identified the importance and future potential of AI and has become the only Taiwanese cooperative telecommunications provider of the Microsoft AI Research and Development Center. FET is also the only telecommunications provider invited to attend the Microsoft Asia Research Institute Innovation Forum. We endeavor to fulfill the needs of AI applications in various industries through Microsoft's AI technology and research breakthroughs. In the future, we will strive to integrate corporate resources for sustainable development and AI applications in different industries, such as manufacturing, healthcare, retail and smart city, and also extend to the actual application domain of even more enterprises in order to achieve global integration. We shall demonstrate Taiwan's strength in telecommunications technology, lead the local industry into international integration and create opportunities in the blue ocean!"

Measured the fastest 4G speed in Taiwan by SpeedTest; Continued leadership in network quality; Seize the opportunities in 5G and the application of Big Data, AI and IoT
According to the 2017 SpeedTest market reports, FET offers the fastest 4G network speed in Taiwan and is the fastest mobile network provider in the country. In order to provide consumers with the best 4G network service, LTE-Advanced 4x4 MIMO technology was launched in the 20 largest commercial districts in Q4 of last year. The introduction of this new technology has elevated network speed to 800Mbps, which puts us one step closer to becoming LTE advanced network service provider with 1Gbps download speed. With the integration of 2100MHz, we will launch 4CA Gigabit LTE network service this year and continue to strive to provide the best network usage experience to our users! In addition, FET leads the industry by becoming the first company to establish a "5G Laboratory" and invest vigorously in the planning and technological development of 5G network. Intensive testing will be conducted on 5G experimental network this year. It is expected that experimental spectrum for 3.5GHz will be applied for by the end of year to conduct a series of integration tests on the actual field, including wireless access, core network visualization and industrial applications. At the same time, FET will focus on the application and development of Big Data, AI and IoT. We endeavor to achieve self-driving areas by cooperating with government-driven smart cities, or to further demonstrate 5G application services through smart transportation or smart cities.  In line with government-driving smart cities, we endeavor to achieve self-driving areas

Continuous distribution of dividends and excellent corporate governance; Corporate social responsibility is highly recognized; Targeting global integration and trends in sustainability
Thanks to the tireless efforts of FET staff, total revenues in 2017 reached NT$92.07 billion, and EBITDA (earnings before interest, taxes, depreciation and amortization) and net income amounted to NT$28.17 billion and NT$10.86 billion, respectively. The EPS stands at NT$3.33, representing an earning achievement rate of 101% per share. Keeping with its dividend payout policy, FET paid $3.75 in cash dividend per share this year, representing a dividend payout ratio of 113%, the highest in the industry and seventh consecutive year that the ratio has exceeded 100%.

Yvonne Li, General Manager of FET, noted that, "Corporate social responsibility has always been a vital basis for FET to promote organizational change. FET has always adhered to the brand spirit of ‘Closing the Distance’ by actively promoting sustainable strategies and capitalizing on the core strength of information and communication technology. In the next three years, 5G Sustainability will be taken as the core of development as we attend to environmental, social and economic issues actively with the aim of global integration and sustainable development. In the face of cross-boundary, cross-border and cross-domain challenges, FET will vigorously transform into an even more agile organization. We will continue to innovate and create new business models by transforming technology into applications. A long-term and solid talent nurturing plan will be established through comprehensive welfare system, all-round professional development training and a transparent communication channel.  Promote internal consensus and stimulate team cohesion, so that the entire team can pursue sustainable growth hand in hand. Create higher shareholder value in order to achieve our vision: FET Connects and Enriches Life."

In the past year, FET was highly recognized for its sustainable development and won the Model Award presented by Global Views Monthly. 2017 Taiwan Corporate Sustainability Awards also presented FET with seven honorable awards, including Top 50 Corporate Sustainability Award, Growth through Innovation Award, Creativity in Communications Award, Social Inclusion Award, Transparency and Integrity Award, Supply Chain Leadership Award, and Taiwan Top 50 Corporate Sustainability Report Award. In 2017, FET was selected as an index component of the Dow Jones Sustainability Indices (DJSI) - Emerging Market, a leading benchmark for sustainability initiatives. Given its efforts in energy conservation, FET was the only company in the telecommunications industry that won the Industry Energy Saving Benchmark Award presented by the Ministry of Economic Affairs. In addition, FET also won the Social Inclusion Award at the Gold Eagle Micro-movie Festival, and the CSR Social Education Award presented by the Cannes Lions International Festival of Creativity.  FET was also recognized internationally for its corporate governance. Hong Kong-based FinanceAsia magazine presented FET with awards for Best Managed Company, Best Investor Relations, Best Corporate Social Responsibility, Best CFO and Best CEO. Also, FET was listed among the top 5% best governed companies by the magazine for 3 consecutive years. All these awards are testimony to FET's excellent corporate governance track record.

Outstanding and attentive service winning customer hearts and awards
FET considers its customers as family, and its ability to anticipate customer needs has consistently allowed it to outperform in a highly competitive market.  Through its efforts and dedication in 360 degree store service, FET has been honored with the Gold Medal presented by Commercial Times' Service Assessment for customer service for six consecutive years. The Company has also received Grand Prize in the "14th Best Service Award" hosted by Next Magazine for the telecommunications sector. FET has won the Five-Star Service Awards for five consecutive years. The incredible dedication of FET staff and outstanding customer service were also recognized by the Taiwan Chain Stores and Franchise Association. 12 of our store managers garnered the Excellent Store-Manager of the Year Award and 3 store managers received the distinctive Outstanding Store-Manager of the Year Award.  FET also garnered international accolade, including 7 awards in the Asia Pacific Customer Relationship Excellence Award. Moreover, FET also became the first Taiwan corporate to win the highest form of recognition of "Best Customer Relationship Excellence Award".  FET strongly believes that customer satisfaction can be achieved by responding earnestly to the needs of each customer. In the future, FET will continue to provide amazing, outstanding and heart-warming services by going an extra mile for our customers!