#1中国移动 China Mobile 2023 Interim Results Integrated Innovation of Information and Energy C=≥[E+I+f<E×I)! 2023.8.10 中国移动有限公司 China Mobile Limited www.chinamobileltd.com - 1000 600 - - 100 10 - NO BUY - -O 00#2Disclaimer This document does not constitute an offer or invitation to purchase or subscribe for any securities or relevant derivatives of China Mobile Limited (the "Company") or the rendering of any investment advice, and no part thereof shall be relied upon or taken as the basis of any contract, commitment or investment decision relating to such securities or relevant derivatives, and this document does not constitute a recommendation in respect of the securities or relevant derivatives of the Company. In addition, the forward-looking statements contained in this document relating to the Company's future plans, development strategies and other matters do not constitute, and should not be construed as, commitments by the Company. Investors are advised to pay attention to the investment risks. Unless otherwise stated, the financial data contained in this document have been prepared in accordance with International Financial Reporting Standards ("IFRS"). For detailed financial statements of the Company prepared in accordance with IFRS, please refer to the Company's disclosure document published on the website of The Stock Exchange of Hong Kong Limited. 中国移动 China Mobile 2#3Management Present > Mr. YANG Jie Executive Director & Chairman > Mr. DONG Xin Executive Director & CEO > Mr. Ll Pizheng Executive Director > Mr. ZHAO Dachun Vice President Mr. LI Ronghua Executive Director & CFO 中国移动 China Mobile 3#4Agenda 01 02 03 Overall Results Operating Performance Financial Performance 中国移动 China Mobile 4#501 Overall Results Mr. YANG Jie Executive Director & Chairman 中国移动 China Mobile 5#6Performance Highlights 1 Favourable business performance 中国移动 China Mobile 2 Remarkable results in business transformation 3 Strong promotion of the "Two New Elements" 4 Ongoing in-depth reforms and innovation 5 Steady increase in dividend payment 6 Committed to becoming world-class 6#7Key Performance Indicators (RMB Mil) 1H2022 1H2023 Change YoY Operating revenue 496,934 530,719 6.8% of which: telecommunications 426,417 452,238 6.1% service revenue EBITDA 173,912 183,457 5.5% EBITDA margin 35.0% 34.6% -0.4pp Net profit 70,275 76,173 8.4% Net profit margin Basic earnings per share (RMB) Note: Unless otherwise specified, 14.1% 14.4% 0.3pp 3.29 3.56 8.2% 1. Telecommunications service revenue = operating revenue - revenue from sales of products and others; revenue from sales of products and others mainly comprises sales of terminal products such as handsets 2. EBITDA = profit from operations + depreciation and amortisation; net profit refers to profit attributable to equity shareholders of the Company 中国移动 China Mobile 7#8Favourable Business Performance Revenue maintained favourable growth Profitability continued to grow Growth in net profit Growth in operating revenue +6.8% 8.0% 7.7% Growth in service revenue +6.1% +8.4% Overall strength excelled in performance Revenue size 中国移动 China Mobile Customer base Network scale 2021 2022 1H2023 Ranked first amongst global operators Growth in CHBN revenue (%) 1H2023 CHBN markets grew across-the-board Net profit as % of service revenue Remained at a high level with persistent growth 16.8% Innovation capability Brand value 16.5% +18.4 +14.6 15.0% +9.3 Profitability Market capitalisation +1.3 C-"Customer" H-"Home" B-"Business" N-"New" market market market market 1H2021 1H2022 1H2023 Leading position amongst global operators 8#9Remarkable Results in Business Transformation Continued to optimise revenue structure HBN as % of service revenue Notable value contribution from the "second curve" Digital transformation revenue (RMB Bil) +11.3pp over past three years 1H2023 42.7% +2.7pp Rapid growth in new businesses Benefit product to C to H revenue Smart home value-added business revenue 23.0% 21.4% to B DICT to N Digital content 24.9% 12.5% 79.7 39.2% 1H2021 132.6 110.8 Contribution to incremental service revenue +19.6% 1H2022 1H2023 Digital transformation revenue as % of service revenue +3.7pp 29.3% 25.6% 21.2% 2021 2022 1H2023 84.1% 中国移动 China Mobile Note: Digital transformation revenue includes the revenues from new businesses from the "Customer" market (Mobile Cloud Drive and others); the revenues from smart home value- added businesses from the "Home" market; the revenues from DICT, IoT and dedicated lines businesses from the "Business" market; and the revenue from the "New" market (excluding revenue from international basic business) 9#10中国移动 China Mobile Systematically Built New Information Infrastructure CAPEX (RMB Bil) Ongoing leadership in the development of computing force network Accumulative number of computing force servers for deployment 183.2 185.2 IDC cabinets available for external use Scale of computing capacity 478 k units > 804 kunits 9.4 EFLOPS >91k units A11k units 92.0 81.4 2022 2023E 1H CAPEX 1.4 EFLOPS Breakthrough in CFN brain system: amongst the first batch to pass the autonomous CFN brain intelligence certification by the CAICT Steady progress in network-connected computing force: launched a number of network-connected computing force projects, integrating and managing the computing force of >10 enterprises 5G base stations Comprehensive leadership in "Dual Gigabit" Network Capabilities launched a 944 items AaaS ABILITY AS A SERVICE put into use (accumulative) 1,761 kunits Largest scale 5G network !in the world Including: 578k 700MHz base stations customers served 301k units 393 Mil 66 Mil Households with gigabit 370 Mil 110 Mil • broadband coverage Expanded application of capability middle platform Average number of deployments per month 40.2 Bil times ▲192.3% Value directly generated 1H2023 RMB 10 Bil vs 2022 晶 Big data Revenue RMB 2.56 Bil 56.6% Proactively setting technical standards for Data Lakehouse for the industry, defining key technical elements Forging a next-generation data element circulation infrastructure centred around DSSN, expediting the commercialisation of data elements Note: The statistical method for counting the number of indoor 5G base stations has been adjusted from baseband units to remote radio units 10#11Innovatively Created New Information Service System Connectivity: Strengthening the foundation of development Total number of connections (Bil) 2021 2022 1H2023 Mass market 3.19 2.94 Total connection scale ranked No.1 in the world; number of connections (things) recorded rapid growth 2.26 1.92 1.69 1.20 1.25 1.27 1.06 Computing force: Speeding up the making of "computing force faucets" 中国移动 China Mobile Upcoming launch of customisable, personalised compute force packages for individual needs Introduction of "3+2+1" product system for computing force terminals 2 heavy terminals 3 light terminals Cloud Mobile Phone, Cloud Computer and Mobile Cloud HD Store Computing Force Main Server, Family Computing Force Main Server 1 unified base Enabling computing force integration, management and deployment to support business operations "Business" market Total connections Connections (people) Connections (things) Household Mobile ARPU customer blended ARPU Stable and healthy growth • "Business" market revenue Rapid growth Eastern data Computing and western Creative launch of standard products such computing as Cloud Space and Cloud Desktop • Potential exploration of CFN services network integration Application scenarios Intelligent computing Network-connected computing force based on an outcome-based fee system Strategic positioning for development: [k] Al platform Committed to providing high-quality intelligent services to the general public Al capabilities >370 items in all fields Jiutian Massive Computing for Public Administration Large Model Jiutian Customer Service Large Model Capability: Operating and promoting "Capability Superstore" Machine vision Audio Natural language processing Network intelligence ... Support the digitalisation and integration of various industries D "Industry Video" capability "Mobile Authentication" capability The first in the industry to realise multi-video integration and entire network coverage Established the Internet account ecosystem, and ranked first in the industry by authentication volume Note: Connections (people) include connections from mobile phones and wireline broadband; connections (things) include connections from loT cards, household devices and industry devices 11#12Continuously Strengthened Sci-tech Innovation Capability Systematic innovation initiatives across "six major areas" 中国移动 China Mobile "Unified Five Rings"" Technology and innovation system Inner ring Major research institutes Outer ring Mid- ring Specialised companies facilitating industry-research collaboration Provincial companies and regional innovation institutes Partnership ring Tertiary institutes and enterprise partners Overseas ring Overseas R&D institutes and international organisations Driving, supporting, and ensuring breakthroughs in technological innovation Maintaining a leading position in the origination of innovative strategies Achieving breakthroughs and advancements in core digital- intelligent technologies 5G-A CFN 6G Basis chips Blockchain Security DSSN Continuously enhancing innovation cooperation ecosystem Leader of the modern industry chain 5G innovation consortium "Joint Innovation Plus" scheme 1 2 Ongoing leadership in cloud and CFN development Further Al innovation and development 3 4 Comprehensive and systematic Promote big data value conversion acceleration of 6G R&D 5 6 Strengthening the capability middle platform with intelligent empowerment Systematically forging security capabilities 12#13Solid Progress in Enterprise Reforms Continuously extended reforms to mechanisms and systems ⚫ Further implemented the "National Technology Company Development Program" and the "Double-hundred Action". China Mobile System Integration Company and Zijin (Jiangsu) Innovation Research Institute have been included in the expanded technology company development program initiated by the SASAC • Launched an initiative to create specialised, premium, unique and new products and capabilities and the first priority teams to join this initiative have completed their selection and training, and were provided with tailored support • Further optimised the operations of our subsidiaries Persistently enhanced the scientific management level Optimised the collaboration mechanism between headquarters, regional companies and specialised teams to ensure coordinated product operations between provincial and specialised companies • Set the benchmark for good customer service by strengthening customer experience-based service quality standards • Promoted the in-depth implementation of the "Compliance Escort Plan", and further incorporated compliance into all aspects of management, operation and services to ensure sustainable and stable corporate operation . Effectively invigorated innovation and creation 中国移动 China Mobile Appointed chief scientists and started the second batch selection of chief experts, built a team of high-performing engineers and strengthened the talent pool of outstanding young technology talent • Persisted in prioritising key tasks, and tailored incentive schemes for different grades and different nature of work • Spearheaded market-oriented reforms for certain key companies and improved the quality and coverage of mid- to long-term incentive schemes through share options, dividends and other forms of incentives Extensively reinforced and broadened the open and collaborative ecosystem Strengthened strategic cooperation to actively establish and deepen extensive strategic partnerships with local governments, enterprises and public institutions Strengthened capital cooperation to support ecosystem growth by providing venture capital in various sectors including Al, Industrial Internet, Internet and information security and visual loT Strengthened ecological cooperation to actively build a new digital- intelligent ecosystem by leveraging our position as an industry leader 13#14Steady Increase in Dividend Payment Dividend per share (HK$) 2.20 10.5% 2.43 1H2022 1H2023 2023 Dividend Policy To create higher returns for our shareholders and share the results of our growth, after giving full consideration to the Company's profitability, cash flow generation and future development needs, the Company has decided to pay HK$2.43 per share¹ for the 2023 interim dividend, representing an increase of 10.5% year-on-year. The profit to be distributed in cash in the full year of 2023 will increase to 70% or above of the profit attributable to equity shareholders of the Company² for that year. The Company will strive to create more value for shareholders Note: 1. Dividends on A shares, which amount to RMB2.2247 per share, will be paid in RMB at an exchange rate of HK$1 to RMB0.915500, calculated on the basis of the average of the mid-prices of HK$ to RMB as announced by the People's Bank of China during the one week prior to the date of declaration of dividend by the Board 2. The basis of profit distribution of the Company is the profit attributable to equity shareholders under IFRS 中国移动 China Mobile 14#15Continuous Improvement in ESG Management • Continuously enhanced corporate governance Further optimised governance mechanisms Adhered to the board member diversity policy, fully leveraging the experience and expertise of INEDS Continuously enhanced compliance management capabilities Continued to implement compliance management that matches our corporate governance and business transformation, appointed a Chief Compliance Officer and ensured the continuing improvement of our compliance management system Continuously strengthened risk and internal control management system • Enhanced our supervision over key business areas by stepping up risk prevention and mitigation to enhance our strength in risk detection and risk management Proactively fulfilled social responsibilities Successfully Implemented tasks in emergency communications and network security Ensured communications for occasions such as major events, emergency rescues and disaster relief Built a secure and clean cyberspace Furthered digital-intelligent village revitalisation plan Furthered digital-intelligent village revitalisation plan to empower the modernisation and intelligent transformation of agriculture and of rural areas Supported coordinated regional development Centring around new regional infrastructure, integrated information service supply and new sci-tech innovation capabilities, seized the benefits of digital economy and helped improve the capabilities of high-quality development Persistently promoted green development 中国移动 China Mobile Practised green and low-carbon operations Continuously promoted the green and low- carbon development of telecom base stations and data centres throughout their life cycle • Actively introduced clean energy and gradually reduced consumption of traditional energy resources Fully promoted the building of green culture and carried out a wide range of charity activities related to environmental protection Supported energy conservation and environmental protection in society • Built a green supply chain, developed green procurement standards and implemented paperless procurement and green logistics systems Leveraged information technology to reduce carbon emissions and promoted the application of information technology to prevent and control pollution Reduction in carbon emissions across society through the empowerment of information technology 165 Mil tons China Mobile ranked 1st on China Media Group's list of "Top 100 ESG pioneers amongst listed companies in China" 15#16Committed to Becoming World-class Building a world-class "Powerhouse" to a high standard Firmly adhere to and creatively implement the "1-2-2-5" strategy Consistently anchoring the position of being "a world-class information services and sci-tech innovation enterprise" Strategic approaches to building a "Powerhouse" to a high standard Excellent Products Speeding up "two changes" Paths and directions for building the "Powerhouse" to a high standard Prominent [R] Brand Leading Innovation Collectively foster "two elements" Key levers for building the "Powerhouse" to a high standard Modern Governance Proactively unleash "five benefits" Critical leverages for building the "Powerhouse" to a high standard Quantity: scale leadership Quality: effectiveness and efficiency leadership New Information Infrastructure 5G CFN Capability Middle Platform Innovation Reforms Ecosystem benefits benefits benefits Short-to-mid- term results Mid-to-long term value New Information Service System Connectivity + Computing force + Capability Customer recognition benefits Talent benefits growth Accelerate the development of a new innovation-driven growth model and promote scientific and technological innovation as the "largest growth driver" High intensity of R&D investment Strong ability of sci-tech innovation High proportion of scientific research talents Strong vitality of sci-tech innovation High degree of technology- driven development Strong ecosystem of sci-tech innovation Directions for enhancing enterprise value in 2H2023 中国移动 China Mobile C Accelerate business transformation and upgrade, enhance value-oriented operation effectiveness Develop high-quality products, diversify information service offerings Implement reforms in greater depth, stimulate development momentum and vitality Enhance service quality, cultivate a favourable reputation Strengthen risk safeguards, prevent and mitigate all types of risks 16#1702 Operating Performance Mr. DONG Xin Executive Director & CEO 中国移动 China Mobile 17#18Composition of CHBN Revenues As % of (RMB Mil) Service revenue 1H2023 Change YoY service revenue 452,238 6.1% 100.0% C: "Customer” market revenue 259,398 1.3% 57.3% of which: wireless data traffic 205,896 1.4% 45.5% H: "Home" market revenue 64,946 9.3% 14.4% of which: smart home value-added business revenue 17,286 21.4% 3.8% B: "Business" market revenue 104,386 14.6% 23.1% of which: DICT 60,177 24.9% 13.3% N: "New" market revenue 23,508 18.4% 5.2% of which: international business 10,147 25.9% 2.2% digital content 13,037 12.5% 2.9% 中国移动 China Mobile 18#19"Customer" Market Solid foundation with stable-to-rising growth "Customer" market revenue (RMB Mil) Mobile customers 5G package customers (Mil) Mobile ARPU (RMB/user/month) 255,545 1H2021 0.2% 256,056 1H2022 1.3% 259,398 975 957 +10.38 Mil 614 387 1H2023 2021 Stable and healthy growth in mobile customer value 985 52.2 722 2022 1H2023 1H2021 Accelerate 5G universal adoption Penetration rate of 5G package customers 73.3% Strengthen integrated operation Integration of customer benefits and operation yielded notable results 0.2% 52.3 1H2022 0.2% 52.4 1H2023 Create Digital Superstore Massive digital consumption products 38.85mil Multi-scenario Digital Superstore integrated products Customers using 10.3 pp 326 mil benefit products 5G DOU 23.7 GB Yes. Mowe Holistically developed package, device and network customer bases Introduction of the innovative M-zone Mango Card targeting young customers 十 动感地带管果卡 颈售启动 MINT PENY #AM>> 专量充送促销。 22 ZABU -醫奋 时代有我 光芒万丈 PEROOBISPERINEA Differentiated brand services High-quality membership services 全球通 M ONE 神州行 心级服务 让爱连接 中国移动 China Mobile 19#20"Home" Market Value discovery driving favourable growth "Home" market revenue (RMB Mil) Household broadband customers (Mil) 中国移动 China Mobile Household customer blended ARPU (RMB/user/month) 50,052 18.7% 59,434 9.3% 64,946 Household broadband net-add customers led the industry 244 218 +11.15 Mil 255 41.1 4.6% Stable and healthy growth in household customer value i 43.0 0.7% 43.3 1H2021 1H2022 1H2023 2021 2022 Leadership in broadband services, driven by gigabit broadband Leadership in TV services, driven by content 1H2023 1H2021 1H2022 1H2023 Leadership in IoT, driven by platform Leadership in HDICT, driven by ecosystem Gigabit broadband customers Huge space in gigabit upgrade 移动高清 Penetration 23.7% Mobile HD customers 60.36 Mil rate Gigabit broadband net-add 22.02 Mil Boosted gigabit coverage, scale, applications and user experience Expedited network development strategies and sales model transformation Strengthened TV base, active engagement and conversion to paid services Smart home network deployment customers 50.1% HDICT solution customers 20.88 Mil 201 Mil Total smart home Elderly healthcare Home security customers 40.6 ▲ 8.40 Mil Digital village Smart community 和家亲 Optimised Hejiaqin APP and home loT platform Continuously enriched home hardware connection ecosystem Smart vehicle Home education space 20 20#21"Business" Market Strengthened capabilities with leading growth rate Fruitful results of digital industry transformation driven by 5G 中国移动 China Mobile "Business" market revenue (RMB Mil) 91,070 73,074 14.6% 1H2021 24.6% 5G Smart mining Smart smelting 104,386 5G industry commercial use cases (accumulative) Deployed 60+ mines Covered 27 provinces Collaborated with 16 out of 19 A+ steel companies Smart factories Set up 3,800+ factories SME 80% >25,000 Value of DICT contracts (1H2023) RMB 20.9 Bil 1H2022 1H2023 Smart ports Top ten container ports nationwide fully operational Smart grids Deep collaboration with power generation plants & grids Signed 500+ projects Smart healthcare Partnered with 2 medical institutions pilot programs by 2 ministries/ commissions Corporate customers (Mil) 18.83 23.20 +1.10 Mil 24.30 2021 2022 1H2023 Industry-oriented and scenario-based dedicated networks: 5G dual-domain dedicated network for office 5G reliable dedicated network for production 5G premium dedicated network for park Grid-oriented lightweight dedicated networks: 5G Express Line 5G Direct Line 5G dedicated network revenue RMB 2.51 Bil 69.7% Advance plans for to V /to G new markets to V Cooperation with Top 10 new energy brands in China brands to G Major projects with contract value of over RMB3 million >1,000 projects 21#22"New" Market Increased Contribution with Rapid Growth 中国移动 China Mobile "New" market revenue (RMB Mil) 14,544 36.5% 19,857 18.4% 23,508 International business International / Hong Kong, Macau and Taiwan roaming services covered 264 locations and 5G covered 70 locations, leading the world Continuously enhanced capacity of global network of "Information Highway, Information Station and Information Island" Total international transmission bandwidth 128 Tbps 1H2021 1H2022 1H2023 232 overseas POP points Digital content M MIGU 〇〇古 Video Mobile APP Monthly active users 141% All-out efforts to promote the integrated innovation of digital economy and metaverse Video Connecting Subscribers Tones 30.4% Cloud XR Client applications Monthly active users 24.9% 12,100 non-domestic self-owned IDC cabinets Financial technology Equity investment (RMB Mil) Change 1H2023 YOY Value contribution 产全移 Industrial International 财 chain finance Upstream and downstream partners served Ecosystem formation Synergy creation 10,147 25.9% business Expanding the "family" and "ecosystem" of the modern mobile information industry -600 2 ΑΙ Industrial Internet Digital "and-Wallet" Monthly active customers a Internet and information security 13,037 12.5% content 64.8% Visual loT Hard & core technology Financial technology 22#23Adopted a Product-focused Approach and Continuously Bolstered High-quality Information Service Supply Capabilities Build up product portfolio Commitment to diverse R&D sources and market development Enriched strategic product portfolios with tiers and planning Coordinated product release series to C&H&N 7 products ranked first in the industry by customer scale Mobile Authentication Video Connecting Tones Cloud Games MIGU Read Home Security Big-screen VoD Smart Home Network Deployment 16 products with over 100 Mil customers including 8 products with over 200 Mil customers Well-poised for development 中国移动 China Mobile Computing force services for the general public Mature and well-established computing force product system Al smart application Basic large model + Industry large model Al+ new voice, content media, DICT ŏ Strengthen competitiveness Holistic product portfolio management Full lifecycle management Product management committee to B 5 products with annual revenue of over RMB10 Bil Mobile cloud IDC IoT Dedicated lines Corporate SMS & MMS 12 products with annual revenue of over RMB1 Bil Big data 5G dedicated network CDN AaaS+ capability products New products with digital intelligence capabilities New development empowered by intelligent operation Big data empowerment Streamline circulation of data resource Explore value of data element Closed-loop work mechanism New products Comprehensive collaborative operation Efficient cooperation between headquarters, regional companies and specialised teams Cloud-based computer Cloud space Metaverse 5G new voice Naked-eye 3D Provider + Aggregator + Distributor 23#24中国移动 China Mobile Hotspots 3AZ 3AZ Beijing- Tianjin-Hebei 3AZ Greater Bay Area 3AZ 4 Chengdu and Chongqing Yangtze River Delta Mobile Cloud on Track to Become a "Top-tier Player in the Industry" Mobile cloud revenue (RMB Bil) ⑤ 移动云 Deepen five integrated cloud developments Build cloud infrastructure "4+N+31+X" computing force hierarchical structure Cloud-data N Cloud- intelligence cloud- security Central areas 42.221 80.5% Cloud-network 23.390 Cloud- edge 1H2023 Note: Mobile Cloud revenue = Industry cloud revenue + cloud revenues from personal cloud, household cloud, etc. 1H2022 Provide cloud-based application services Provincial areas 31 Central cloud Provincial cloud Provincial cloud Dedicated cloud network transmission latency Nationwide <20ms transmission Provincial latency <5ms + |- Public cloud Revenue RMB23.6 Bil Wide-area Wide-area edge cloud edge cloud As a % of Industry cloud revenue 64.5% RMB100 Mil-level products > 20 products 300+ local networks in prefecture-level cities Edge to C&H areas Mobile cloud Mobile major contracts 3,000 Local edge cloud Local edge cloud Local edge cloud contracts X Cloud Drive Monthly active customers 176 Mil Trusted gateway Wireline 5G 4G to B Prefectural transmission latency <1ms + 24 24#25Strive to Achieve 2023 Full-year Targets Major plans for 2H2023 . • Promote innovation and development to a high standard, while enhancing innovative planning and improving the conversion of results Maintain favourable growth in revenue and profit Net addition of 130Mil 5G network customers C Mobile ARPU 中国移动 China Mobile Stable and healthy growth • Build strong infrastructure from a high starting point, while forging unique competitive Household broadband customers Net addition of 18Mil advantages H • Provide services of high value, while Household customer blended ARPU Stable and healthy growth strengthening the supply capacity of information services Corporate customers Net addition of 3 Mil • Advance scientific management with high B efficiency, while striving to enhance effectiveness "Business" market revenue Lasting rapid growth and efficiency N "New" market revenue Rapid growth 25#2603 Financial Performance Mr. LI Ronghua Executive Director & CFO 中国移动 China Mobile 26#27Financial Highlights 中国移动 China Mobile (RMB Mil) 1H2022 1H2023 Change YoY Operating revenue 496,934 530,719 6.8% Telecommunications service revenue 426,417 452,238 6.1% Sales of products and other revenue 70,517 78,481 11.3% Operating expenses 422,486 450,432 6.6% Profit from operations 74,448 80,287 7.8% Interest and other income 8,859 11,373 28.4% Income from investments accounted for 6,195 4,953 -20.0% using the equity method EBITDA 173,912 183,457 5.5% Net profit 70,275 76,173 8.4% 27#28Revenue Growth Overview: Revenue Related to Business Transformation Continued to Increase Breakdown of revenue growth of telecommunications services - by business Breakdown of revenue growth of telecommunications services - by CHBN +0.9pp +0.9pp +4.3pp -0.2pp +0.2pp +6.1% 中国移动 China Mobile +0.8pp +1.3pp +3.1pp +0.9pp +6.1% (RMB Mil) (RMB Mil) 452,238 452,238 -126 -787 879 426,417 426,417 3,651 13,316 3,588 3,897 18,370 5,512 3,342 1H2022 Wireless data traffic Wireline Applications broadband SMS Voice Others 1H2023 1H2022 & information & "Customer" market "Home" market "Business" market "New" market 1H2023 MMS services 28#29Cost Control Overview: Maintained Good Cost Control (RMB Mil) Operating expenses 1H2022 1H2023 Change YoY Major reasons / remarks 422,486 450,432 6.6% 中国移动 China Mobile Network operation and 138,194 143,526 3.9% support expenses Accelerated construction and commissioning of new information infrastructure, and increased investments to support business transformation Depreciation and 99,464 103,170 3.7% amortisation The scale of assets increased due to accelerated network upgrades and business transformation Employee benefit and 63,934 70,433 10.2% related expenses Selling expenses 26,182 26,835 2.5% Cost of products sold 68,900 77,332 12.2% . Continued to adjust and optimise our employee structure; increased efforts on recruitment and training of staff members relating to digital-intelligent businesses Enhanced online sales and service capabilities resulting from accelerated transformation of sales channels; selling expenses as a proportion of revenue continued to decline Sales of mobile terminals grew rapidly Other operating expenses 25,812 29,136 12.9% Continuously developed and strengthened core capabilities; the level of intelligent operation has significantly improved 29 29#30Profit Overview: Continued Improvement in Profitability Net profit (RMB Mil) 70,275 3.29 1H2022 76,173 8.4% EBITDA (RMB Mil) 183,457 173,912 5.5% 3.56 40.8% 1H2023 Basic earnings per share (RMB) 35.0% 1H2022 EBITDA margin 40.6% 34.6% 1H2023 EBITDA /telecommunications service revenue 中国移动 China Mobile 30#31Cash Flow Overview: Healthy and Abundant Net cash generated from operating activities (RMB Mil) Free cash flow (RMB Mil) 9.0% 160,525 147,272 1H2022 1H2023 55,225 1H2022 43.3% 79,112 1H2023 Note: Free cash flow = net cash generated from operating activities - capital expenditure incurred 中国移动 China Mobile 31#32Capital Structure Overview: Maintained Stable and Healthy (RMB Mil) Shareholder's equity Interest-bearing debt Total book capitalisation Liabilities-to-assets ratio Cash & bank deposits 2022.12.31 2023.06.30 1,297,348 1,332,768 1,297,348 32.8% 269,370 S&P, Moody's: Corporate credit ratings are equivalent to China sovereign ratings 1,332,768 32.9% 281,442 中国移动 China Mobile 32#33Persist in Seeking Progress While Maintaining Stability, Promote High-quality Development Strengthen quality and efficiency improvement measures Increase revenue, control costs, exploit and tap into potential growth drivers and raise efficiency Deepen cost reduction through centralised and technological approaches Maintain good growth momentum Strengthen systematic management Classification by policies, hierarchical management and intelligent management and control Precise allocation of resources to drive sustained value growth Continue to improve scientific management standard 中国移动 China Mobile Strengthen risk prevention & control Continuously improve risk prevention and control mechanism Enhance the capability of centralised, digital and intelligent risk management and control Ensure stable and healthy operations Strengthen lean management Comprehensively improve the efficiency of management, resources, assets and capital Build a solid foundation for core competitiveness 33#34Q & A For more information, please contact: Investor Relations Department: [email protected] Or visit the Company's website: www.chinamobileltd.com 微信搜一搜 Q 中国移动投资者关系#35Extracts from Unaudited Consolidated Statement of Comprehensive Income for the Six Months Ended 30 June 2023 - Appendix I 中国移动 China Mobile (RMB Mil) 1H2022 1H2023 (RMB Mil) 1H2022 1H2023 Operating revenue 496,934 530,719 Selling expenses 26,182 26,835 Revenue from 426,417 452,238 telecommunications services Cost of products sold 68,900 77,332 of which: Voice services 38,706 37,919 Other operating expenses 25,812 29,136 SMS & MMS 16,278 16,152 Wireless data traffic 208,192 211,780 Profit from operations 74,448 80,287 Wireline broadband 54,168 58,065 Other gains 3,076 4,003 Applications and 97,988 116,358 information services Interest and other income 8,859 11,373 Others 11,085 11,964 Finance costs (1,229) (1,938) Revenue from sales of products Income from investments accounted 70,517 78,481 6,195 4,953 and others for using the equity method Taxation (21,012) (22,439) Operating expenses 422,486 450,432 Network operation and support 138,194 143,526 expenses Profit for the period 70,337 76,239 Depreciation and amortisation 99,464 103,170 Equity shareholders of the Company 70,275 76,173 Employee benefit and related 63,934 70,433 Non-controlling interests 62 66 expenses 35#36Extracts from Unaudited Consolidated Balance Sheet as at 30 June 2023 - Appendix II 中国移动 China Mobile (RMB Mil) Current assets 2022.12.31 2023.06.30 456,371 509,501 Non-current assets 1,479,167 1,482,095 Total assets 1,935,538 1,991,596 Current liabilities 533,337 557,910 Non-current liabilities 100,778 96,801 Total liabilities 634,115 654,711 Total equity 1,301,423 1,336,885 36#37Operating Data - Appendix III Unit 1H2022 1H2023 Customers Mil 969.85 985.39 Mobile service revenue RMB Mil 300,322 305,630 ARPU RMB 52.3 52.4 Mobile service Handset data traffic GB Bil 68.28 79.61 Handset data traffic DOU GB 13.5 15.5 MOU Minutes 254 247 Network customers Mil 262.64 393.26 Of which: 5G ARPU RMB 85.0 81.1 Handset data traffic DOU GB 21.5 23.7 Customers Mil 256.06 286.40 Wireline broadband service Wireline broadband service revenue RMB Mil 54,168 58,065 Customers Mil 230.34 254.85 Of which: Household broadband Household customer blended ARPU RMB 43.0 43.3 中国移动 China Mobile 37