#15G HKT 2023 Interim Results For the six months ended 30 June 2023 2 August 2023 - Hong Kong a PCCW Group member#2Forward Looking Statements This presentation may contain "forward-looking statements" that are not historical in nature. These forward-looking statements, which include, without limitation, statements regarding HKT's future results of operations, financial condition or business prospects, are based on the current beliefs, assumptions, expectations, estimates, and projections of the directors and management of HKT about the business, the industry and the markets in which HKT operates. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond HKT's control and are difficult to predict. Actual results could differ materially from those expressed, implied or forecasted in these forward-looking statements for a variety of factors. HKTⓇ HKT 2023 Interim Results a PCCW Group member 2#3Business Review Susanna Hui Group Managing Director#4Resilient Business Amidst Continued Economic Headwinds Total Revenue Total EBITDA Adjusted Funds Flow 2,103 + 2% YoY 770 311 (US$ Million) +3% YoY + 2.2% YoY 1,955 (US$ Million) Enterprise + 3% YoY (excluding Mobile Product Sales) (US$ Million) Revenue + 10% YoY Mobile Services Revenue + 5% YoY Ⓡ HKT 2023 Interim Distribution of 32.05 HK cents per Share Stapled Unit HKT 2023 Interim Results a PCCW Group member#5Loyal Mobile Customer Base that Values Quality Service 1010 CSL. OSUN csl. MOBILE 3,383 78K YOY 3,263 3,305 1010 Customers Accelerated Growth in + 17K YOY Post-paid Customer Base Despite Competition Improved Post-paid Churn Rate HKT HKT 2023 Interim Results +1% YoY +2% YoY ('000) H1'21 H1'22 H1'23 +2% YoY H1'22 H1'23 Continued expansion of our premium 1010 customer base 0.9% 0.8% Post-paid Exit ARPU Uplift 187 189 from 5G & +1% YoY (HK$) Roaming H1'22 H1'23 Jun'22 Jun'23 a PCCW Group member 5#6Roaming Revenue Rebounds Following Border Reopening Recovery in Roaming Revenue 63% of Pre-COVID levels + 166% YoY H1'19 H1'22 H1'23 9:22 Roaming Consumption Voucher Offer! 5G Data Roaming Pass Package Applicable to Mainland China, Macau, Japan, South Korea, Taiwan, Thailand and more! Enjoy 1GB roaming data per pass No need to change SIM upon arrival $480/20 Passes (valid for up to 12 months) 5G 100 select Destination select Package Checkout Hot Asia Pacific Europe Americas Oth ■ Total roaming revenue in H1'23 more than doubled from H1'22, and reached 63% of pre-COVID levels In June 2023, both number of roamers and consumer outbound roaming revenue surpassed those pre-COVID As a result, total roaming revenue in June 2023 rebounded to ~80% of pre-COVID levels HOT Mainland China HOT Japan Click to check the balance of Data Roaming Pass HKT Ⓡ HKT 2023 Interim Results a PCCW Group member#7Deepening 5G Adoption 5G customers increased to 1.27 million, representing 38% penetration of our post-paid base in July 2023 csl/1010 5G Penetration >45% 26% 32% 35% 38% 5G Penetration 21% 8% 14% 2% to Total 1,270 Post-paid 1,194 Base 1,061 867 680 78 264 454 csl. 5G 1010 5G= 1三周年年度實測 港九新界最潮玩樂地圖 中 2013年 C ALLOCA 九文化區 PCM 10 Prime Locations at HK HKT MNO 1 MNO 2 MNO 3 Download Speed (Mbps) 9 0 1 0 Upload Speed 8 0 1 1 (Mbps) 5G ('000) Jun 2020 Dec 2020 Jun 2021 Dec 2021 Jun 2022 Dec 2022 Jun 2023 Jul 2023 HKT's 5G services outperforms its rivals with superior download and upload speeds Ⓡ HKT HKT 2023 Interim Results a PCCW Group member 7#8Major Network Developments in H1'23 Enhance Outdoor 5G Coverage 700MHz 深圳市吧 相地郊野公园 3.5GHz 4.9GHz NEW 10 Lam Tsuen Country Park CSL Mobile Limited CAHK ******* Action of engag Best 5G Mobile Network Operator Gold Award 2020-2022 Uplift Indoor 5G Coverage Country P *Wong Leng 3.5G Restrict zone Hong Kong. R ■ Launch of 4x4MIMO 700MHz to boost data speed Hong Kon ■ Dual C-Band M-MIMO base stations for busy areas; doubles speed and capacity Extend Network Coverage Kam Tsin Village Lok Ma Chau Loop Development Tin Ping Estate shopping centre Plover Cove Country Park Tai Mo Shan Cheung Sha Wan Government office Country Park Tai Lam Hong Kong Palace Museum Hong Kong Cultural Centre Hong Kong International Airport (HKG) Arendelle Building Lanta North Country Park Lantau SHong Kong City Hall Country Park HONG KONG SAR Sai Kung West Sha Tin Race Course Inland Revenue Tower Hơng Kong Aberdeen Mariner Club Tai Tam Country Park Two Taikoo Place Shek O Country Park The Hong Kong Country Club Continue to improve indoor 5G coverage in F&B and chain stores with LampSite technology ■ Continue 3.3GHz rollout and target to complete geographic coverage by end 2023 High Band mmWave Trial 2Gbps experience at selected malls mmWave PRRU 28GHz FWA Trial at remote village Villa Lucca Hoi Ha Lam Tsue Country Park Sai Ku Count Skypier Extension ng Kong rnational ort (HKG) Lantau South Country Park Tai Lam Country Park Grand Victoria IL PICCO Discovery Bay Otau North Country upakan Heung Pak Kok San Tsuen Tai Mo Shan Shing Mun Country Park Holborn KONG SAR HONG Hong Kong Kau Sai Chau Lei Yue Mun Ma Wan Village Hong Kong Island C Shek O Country Park ■ 700MHz to enhance deep indoor and rural coverage ■ Continuous enhancements for indoor traffic hotspots Sub3G+C-Band pRRU Ping 8 详细结果 ( SPEEDTEST FMbps ④ 上传 Mbps 2,335 209 112 ○ 抖动 56 1010 /cs/Club Sim 102 1 再次测试 ID 9359168611 44 Started technical trials on mmWave performance and FWA application at selected locations ■ Will deliver significantly higher speeds HKT HKT 2023 Interim Results a PCCW Group member 8#9HKT Connects Outlying Islands with Fibre Network HKT has connected outlying islands (Lamma Island / Cheung Chau / Peng Chau) with newly built submarine cables Enabling 10G fibre services, with 4K Now TV channels Enhanced 5G mobile service coverage with 10G backhaul Peng Chau 潛勁 www HKT Ⓡ HKT 2023 Interim Results Tai Pak Beach SAU KWU LONG 牛牯型 DISCOVERY BAY 二愉景灣 Our Lady of Joy ADD Lantau Island Silvermine Bay Beach 銀碼灣泳灘 MUI WO 梅寫 Lantau South Country Park 郊野公園 ng Wan SHAP LONG KAU TSUEN 干塱舊村 Mui Wo Ferry Pier 【梅寫渡輪碼飯 大白灣 Siu Kau Vi Chau P Chau Hei Ling Chau 喜靈洲 SEA RANCH 澄銀村 Shek Kwu PAK SHE SAN TSUEN 北社新村 CHE ROUND TABE CHAU SECOND VILL GE 『圖東第三村 Chau 石鼓洲 小交易洲口 Submarine Fibre Routes to Outlying Islands Kau Yi Chau Cave 交椅州省演 Sai Wan Swimming Shed Sunshine Island 「周公鳥 Image » 2023 Maxar Technologies Tap & 2008 Toaletries gs 2008 Abbas Cheung Chau BURBER 律 五行石 Reclining Rock CENTRAL Victoria Peak 太平山 中環 Hong Kong POK FU LAM 薄扶林 Cyberport Waterfront Park 數碼港海濱公園 Island PAK KOK SAN TSUEN 北角新村 SHA PO OLD VILLAGE 沙埔舊村 Lo So Shing Beach PICHIC BAY 香籓城泳灘、 ABER EEN 仔 Ap Lei Chau 鴨脷洲 索罟灣 Lamma Island 南丫島 Tung O Wan Sham Wan 東澳灣 深洲 Ocean 香港海 God Lamma Island 網上行 netvigator 光纖覆蓋進駐南丫島 FIBER COVERAGE IS NOW AVAILABLE ON LAMMA ISLAND Your Navigatie NETVIGATOR 2888 0868 EART AVALIKE O 10/cal Shops an Mature 530 KKT 北角新村 Pak Kok San Tsuen a PCCW Group member 6#102500M - The New Normal for HKT Broadband Service Ultra High Speed XGS PON Technology Multi-use Broadband Full Home Coverage 2.5G (2500M) 5G (5000M) 10G (10000M) 2 x 1000M 4 x 1000M 1000M + FTTR Wi-Fi 6E 5G Home Internet City-wide coverage and Symmetrical ultra high uplink and downlink speeds Seamless upgrade to 10G without field visit Enable new applications Dedicated downstream bandwidth and Individual public IP address Multiple Internet uses With Fiber-to-the-Room (FTTR), Wi-Fi 6E and 5G Home Internet options High quality network Home Studio social media KOL Metaverse VR/AR Home Office Entertainment Reliable Internet Access 8K ULTRA HD 8K Video 7 Gaming Smart Home Cloud Applications Wi-Fi 7 is set to be launched by 2024 with throughput of up to 46Gbps Advanced Connectivity HKTⓇ HKT 2023 Interim Results a PCCW Group member 10#11Robust Demand Continued for High-Speed, Reliable Home Broadband Services 網上行 ® netvigator HKT Premier LIKE100 Continued Upgrades to FTTH Encouraging Uptake of 2500M ('000) Upgrade Service +1% YoY 1,097 133 964 1,107 121 網上行 netvigator 2500M 986 +2% YoY VDSL FTTH H1'22 H1'23 Your Navigation NETVIGATOR 1,464 1,468 + 4K YOY Further Consumer Broadband Net Adds ('000) H1'22 H1'23 HKT HKT 2023 Interim Results Stable Churn Despite Competition and Emigration Asian Telecom Awards 2023 Asian Telecom Awards 2023 HKT "Broadband Telecom Company of the Year - Hong Kong" and "Infrastructure Initiative of the Year - Hong Kong" awards received at Asian Telecom Awards 2023 339 345 Expanding 24% Uptake of Home Wi-Fi ('000) +2% YoY Penetration of Home Wi-Fi Solutions H1'22 H1'23 Solutions networ BLOW AWAY YOUR WI-FI WOES WITH OUR ON-SITE PROS Eliminate hassle and blind spots Plan the optimal Wi-Fi solution 24-hour hat support Apply now 6-month service fee waiver The world's latest WI-FI GE standard cam 2500M F- Tess Avbrowse andapenler speed ASUS ZenWIFI Pro FTTX a PCCW Group member 11#12Smart HKT Home Solutions Further Enhance Quality of Living Smart Living Home Solutions Smart Living™ by HKT Pre-installing Smart Living home solutions in new residential properties Secured 41 new residential projects, up 20% YoY Further collaboration with group of leading developers & campuses including China Resources Land and The University of Hong Kong Repeat project engagement with key local developers: Henderson Land, Wheelock, Chinachem and Sino Land Smart Charge EV Home Charging Solutions Smart Charge currently offers EV home charging solutions across 32 large-scale residential estates in Hong Kong Further expanding its diverse and reasonably priced offerings to resolve the pain points of EV owners in Hong Kong and champion green transport EV Charger Rental Service ➤ New Ceiling-mounted Charging Solution PANO HARBOUR HKTⓇ HKT 2023 Interim Results 香港大學 THE UNIVERSITY OF HONG KONG RFID Tag 「無線射頻認證 RFID Reader 無線射頻閱讀器 New ceiling-mounted charging cable 全新懸掛式充電延長線 Smart Charge by HKT and CLP a PCCW Group member 12#13Content Aggregator Now TV Strengthens Line-up with Latest Array of Sports & Entertainment Home of Sports ■ Continue to enrich the value of its unrivalled sports proposition 4K DIGEN SPORTS NEW CARS. NEW SEASON.NEW HOME. 4K THE OAMINONSHIPS 2023 WIMBLEDON JULY 3-16 SEASON STARTS NOW! SPOTV court mach Premier League JEFA LALIGA CHAMPIONS EUROPA WTA LEAGUE TOUR ****** ATP TOUR SPOTV ΦΡΕΝ SUMMER SERIES 6 Clubs 5 Cities. 9 Matches July 23-31 FIFA WOMEN'S WORLD CUP 2023™ 20 JUL-20 AUG THE 151ST OPEN Y THE Exclusive & Express ■ Latest Chinese, Asian and Hollywood Blockbuster Movies 毒舌大狀 EXCLUSIVE Comprehensive VIDEO EXPRESS SURITY CONSCIENTE now RENT NOW viu High Quality Drama Series, Award-Winning Variety Entertainment, 教場 EXCLUSIVE OKOJO now 爆谷 星影台 爆谷台 now ON DEMAND O 殺神4 JOHNWICK THE SUPER MARIO BROS MOVIE ・スーパーマンブラザーズ・ now Enlarged Customer Base OPEN WET Snow HBOGO Captured new customer base from market consolidation, particularly in the commercial segment Further penetration into top-tier hotels with tourism recovering 21 TICKET PARADISE HBO HBO HBO HITS HBO CINEMAX family ignature HBO GO MOVIE MOVIE >viu HBO GO now studia nowtrue Peppa Pig 星級戰爭歲月 MY GRANDPARENTS WAR VIU ORIGINAL F HERO 國模範的士Ⅱ AND THAT A NEW CHAPTER OF„Orion City SEASON 1 第一 「雙語版] Fun & Learn Kids >viu studio now nowtrue FIRST BBC BBC earth Discovery programmes HKT HKT 2023 Interim Results 雙語廣播(粵/英) NEW EPISODE LEARN DREAMWORKS tvN now jelli AXA Lifetime w Watch n Learn ('000) 1,428 1,378 +4% YoY H1'22 H1'23 a PCCW Group member 13#145G Continues to Fuel Digital Transformation for Enterprises 5G Applications Expanding to More Industries and Customers Enterprise HKT Solutions 2022 Smart Retail 2 2023 First in HK New Industry New Industry Smart Healthcare Smart Campus Smart Property Smart Construction 5G Private Network to provide a reliable & secure connectivity to support smart healthcare applications: Remote consultation VR for healthcare training 1. 2. 3. Al robotics Smart Healthcare 4. Cloud picture archiving system Real-time asset tracking 5. • Benefits: Fully secure, flexible and expandable network for critical healthcare applications 5G Smart App and lot to enable users seamlessly control various facilities: 1. Remote laundry service booking 2. Remote food ordering 3. Access real-time information (e.g. temperature, humidity, air quality) Benefits: Deliver digital hostel experience for students and meet ESG objectives 5G Smart Property to elevate guest experience: 1. Self check-in kiosk 2. Central room control 3. IPTV and connected videos 4. Full Wi-Fi coverage 5. Mobile app for housekeeping Benefits: Elevate hotel guest experience and improve staff productivity due to manpower shortage with high speed 5G network Ⓡ HKT HKT 2023 Interim Results a PCCW Group member 14#15Integrated Solutions to Spur Growth in Enterprise Segment Digital Transformation Solutions integrating Connectivity, Cloud Computing and Cybersecurity to Al-Powered Industry Solutions and Enterprise Managed Services Enterprise HKT Solutions Industry Applications Integrated Digital Transformation Finance Insurance Retail Construction Healthcare Government Artificial Intelligence AI- Generative Solutions ΑΙ ((5))) IOT Internet of Things Ad Connected Audio-Visual Modern Workplace Solution Omni-channel Al Contact Centre ESG Solution Robotics AR/VR Solution Enterprise Managed Services Transformation Enablers Global & Cross- border Networks Local Fibre, Mobile & Wi-Fi Connectivity Multi-Cloud Platforms Enterprise Infrastructure Cybersecurity HKT Ⓡ HKT 2023 Interim Results a PCCW Group member 15#16Enterprise Increasing Digital Transformation Demand in GBA as Borders Reopen HKT Solutions Integrated Solutions and Enterprise Managed Services to capture opportunities in GBA • China Business Achieved 21% YoY Growth with Strong Momentum Companies expanding from HK to China • China-based companies going out to HK and beyond Growing opportunities to support Macau's gaming and non-gaming economy development Leverage digital solutions to cater for fast expansion needs Retail SD-WAN, IPLS, Systems Integration Premium Internet, Wi-Fi Cybersecurity Connected AV Enterprise Managed Services Cloud Banking & Insurance Biopharmaceutical Automobile Ⓡ HKT HKT 2023 Interim Results Gaming & Entertainment China Awards & Accolades • • Guangdong- Hong Kong-Macao Greater Bay Area "GBA Enterprise Awards 2022" by Hong Kong Business "High and New Technology Enterprise" by Beijing Municipal Government 2022 Top-10 SD-WAN & SASE Outstanding Application Awards by SDNLAB a PCCW Group member 16#17Al-enabled, Personalised Digital Services to Club Members The Club's Strategy: Focus on Lifestyle Spending with Breadth of Local & International Experience The Club Membership CLUB TRAVEL 3.78M 3.63M +4% YoY H1'22 H1'23 CLUB Sim Merchant HKT Services agoda E-COMMERCE & TRAVEL CLUB TOP GO FINTECH CLUB HKTFlexi PayLater@ mox citi CLUB, HKT Lifestyle Spending on The Club +8% YoY Travel Insurance R HKT H122 H1’23 HKT 2023 Interim Results Shopping (excl. handsets) CLUB SHOPPING ℗ Chope CLUB CARE HEALTHTECH FWD drgo TRAVEL DINING & EXPERIENCE LIFESTYLE WELLNESS Money Hero 体健Ⓡ Smart Health SMART GADGETS a PCCW Group member 17#18Scaling for Web 2.0, Ready for Web 3.0 ◉ HKT Financial Services Financial Services continue steady growth for both B2B & B2C while strengthening its loyalty ecosystem ■ HKT is selected as part of a consortium participating in HKMA's e-HKD Pilot Programme Merchants HKT Services HKT | Merchant Services Comprehensive e-payment solution targeting local SMEs Foster digital economy, drive adoption and lower costs for SME with special rate 8,000+ subscriptions to our merchant payment solutions as at June 2023, increase of 20% YoY Consumers HKT S TOPGO Growing transactions with a solid base of young & tech-savvy segment Accounts expanded to 3.71M as at June 2023, an increase of 5% YoY With the positive impact of CVS, non-CVS spending rose by 9% YoY Leveraging extensive MasterCard UnionPay UnionPay and FPS networks to enable travel across China and international destinations, travel-related transactions more than doubled YoY Beginning structural integration of Financial Services offerings into The Club's ecosystem: Introduced Club Points features TOP.GO Merchant Introduced Club Mini Shop within Tap & Go to strength loyalty and shopping proposition into Smart POS HKT Services CLUB HKTⓇ | HKT 2023 Interim Results a PCCW Group member 18#19Leading and Innovative MedTech Platform in Hong Kong Telemedicine drgo 您的全方位「家庭醫生」 科妥照顧一家大阳 中國 ES 5884 Increasing Consultations as Telemedicine Gains Acceptance With the pandemic having accelerated the popularisation of healthtech, market demand for DrGo telemedicine platform has maintained its steady growth 371K registered users as at June 2023, an increase of 12% YoY >70% YoY growth in the number of completed video consultations in H1'23 130+ doctors/healthcare professionals from 16 medical consultation service partners drgo Extend healthcare services from online to offline offering vaccination and medical checkup packages >160% YoY growth in GMV in H1'23 Comprehensive Comprehensive Services & Features to Enhance User Well-being Service Portfolio Diverse range of telemedicine services 預約視像診症 星期一至日 及公眾假期如常服務 登記 WA AVE FibriCheck My Health M-lendar Walk-to-Earn HKT Ⓡ HKT 2023 Interim Results drgo General Practice General Practice Chinese Medicine Practitioner ➤ Speciality (Paediatrics, Family Medicine, Psychiatric and Psychological Services) Dietetic Service Comprehensive free in-app features FibriCheck for atrial fibrillation detection Women's wellness My Health for vital signs monitoring Walk-to-Earn for fitness habit Launch of DrGo private label, Me+ personalised health supplements in late August Chinese Medicine Practitioner Specialty Designated Insurance Plan Other Services $1 a PCCW Group member 19#20Contribute to a Sustainable Future Community Impact Strive and Rise Programme (#Teen) - Support development and upward mobility of underprivileged youth through corporate volunteering and activities, e.g. Now TV, Viu TV and HKT Innovation Lab visits Volunteering hours in H1'23 close to 2,800 hours Climate Change Resilience Sustainability-linked loans: Committed about US$2.7 billion HKT HKT R HKT PCCW Tears now now PCCW #Teena 共明Teen計劃 六 Teen 計數 PCCW PCCW HKT NOW SPORTS HKT 2023 Interim Results HKT Smart City Transformation Launch of Smart Kiosks - Revitalise traditional telephone booths to become one-stop service station - payphone, Wi-Fi, USB chargers, community information, news, weather and transportation updates - for residents and visitors alike The Smart Kiosks also extend the reach of Dementia's Secret Angel to help locate dementia-afflicted missing persons Building omorro HKT Smart Kiosk HKT HKT a PCCW Group member 20 20#21Highlights 1 Unique Quad Play Experience - Only service provider that can offer voice, broadband, mobile and content to individuals, households, enterprises and government bodies 2 Customer-Centric Approach - Continue to invest in technologies, talent and customer support to provide innovative services, gain better customer insight and elevate the overall customer experience 3 Enriched Digital Ecosystem - with digital based activity becoming more prevalent, further enhance our applications, platforms and content to enrich the customer's online and, in the future, virtual experience Smart City Development - Continue to support smart city development in Hong Kong and mainland China by extending 5G applications to new industries and leveraging Al & cloud to drive enterprise digital transformation 5 Expansion into GBA - continuing integration of Hong Kong into the broader GBA market will increase cross border activity and drive future growth in consumer spending as well as demand for enterprise solutions HKT HKT 2023 Interim Results a PCCW Group member 21#22Financial Review Patrick Poon Chief Financial Officer A#23Resilient Financial Performance (US$ Million) Adjusted Funds Flow Revenue Revenue (excluding Mobile Product Sales) EBITDA EBITDA Margin (excluding Mobile Product Sales) Overall EBITDA Margin H1'22 H123 % Change 305 311 + 2.2% 2,071 2,103 +2% 1,906 1,955 +3% 748 770 +3% 39% 39% 36% 37% Profit 245 250 + 2.2% Attributable to Holders of Share Stapled Units HKTⓇ HKT 2023 Interim Results a PCCW Group member 23#24TSS Continued to Demonstrate Business Strength TSS Business Local TSS Revenue Local TSS + 2% YoY 1,022 1,046 1,487 1,498 Total Revenue + 1% YoY Local TSS +2% YoY Local TSS 1,046 Revenue 1,022 526 541 Other local TSS ITS Revenue Total EBITDA +3% YoY Broadband Network Total EBITDA 465 (US$ Million) H1'22 452 H1'23 36% ■Local Data (US$ Million) +2% YoY + 10% YoY ■ ☐ EBITDA Margin 35% Local TSS revenue grew by 2% underpinned by strong growth in local data services Pay TV services delivered a steady performance with higher commercial subscription revenue particularly from hospitality sector International telecom services experienced lower revenue from wholesale voice business and absence of one-off cable revenues Total EBITDA up 3% driven by further operating efficiencies and ongoing focus on cost initiatives leading to a margin of 36% HKT Ⓡ HKT 2023 Interim Results ☐ H1'22 H1'23 Local data revenue achieved impressive growth of 10% reflecting the accelerated demand for our unique integrated digital transformation solutions across different industries that incorporate 5G applications with smart city solutions in HK and GBA Broadband revenue grew by 2% as demand for our high-speed, reliable fibre network from individuals, households and enterprises continued in the new normal As a result, Local Data Services registered a solid revenue growth of 7% in the first half of 2023 a PCCW Group member 24#25Mobile Benefiting from Gradual Recovery in Roaming Mobile Business 633 637 272 ■Revenue EBITDA (US$ Million) H1'22 H1'23 EBITDA Margin 43% 44% Revenue + 1% YoY Mobile Services Revenue + 5% YoY +2% YoY 459 468 489 281 EBITDA + 3% YoY Roaming & IDD Local Core (US$ Million) H1'21 H1'22 H1'23 Mobile Services EBITDA Margin 58% 58% 58% ■ Mobile services revenue grew 5% in H1'23, underpinned by the gradual recovery in roaming revenue and higher 5G adoption ☐ ■ Mobile business recorded a 5% growth in services revenue to US$489 million Post-paid customer base further expanded to 3.383 million, a net gain of 78,000 or 2% growth year-on-year 5G customer base reached 1.194 million as at end of June 2023, representing 35% of post-paid base Lower Mobile product sales impacted by cautious retail sentiment, lack of new handsets and longer handset replacement cycle HKT HKT 2023 Interim Results across our post-paid base Roaming revenue soared by 166% year-on-year as travel resumed with full border reopening ■ Post-paid exit ARPU up by 1% to HK$189 ■ Mobile services EBITDA rose 4% to US$281 million with margin of 58% a PCCW Group member 25#26Continued Focus on Driving Operating Efficiencies Operating Expenses 281 271 46 44 82 78 - 4% YoY Others Opex savings of 4% in H1'23, with opex to revenue ratio further improving to 12.9% Sustained efficiency gains from mobile network operations including improved cell site architecture enabling network design optimisation Continued focus on improving efficiencies across each of the business lines through digitalising business processes as well as optimising 020 sales channels and retail footprint to drive higher sales efficiency 153 149 (US$ Million) ■Mobile TSS H1'22 H1'23 Opex to Revenue Ratio: 13.5% 12.9% HKT R | HKT 2023 Interim Results a PCCW Group member 26#27Disciplined Capital Investments to Support Business Growth Capex 152 145 - 4% YoY 56 50 88 86 ■Mobile TSS Disciplined capital investments with capex to revenue ratio improving to 6.9%, well within stated guidance Lower Mobile capex reflecting the completion of our territory-wide 5G coverage rollout in 2022, with ongoing capex focusing on capacity upgrades and indoor coverage enhancement TSS capex dropped slightly, with spending mainly to support growing demand for our unique integrated digital transformation solutions including smart city solutions for enterprises (US$ Million) 9 ■ Others H1'22 H1'23 Capex to Revenue 7.3% 6.9% Ratio: HKT R | HKT 2023 Interim Results a PCCW Group member 27#28Adjusted Funds Flow (US$ Million) H1’22 H1’23 YOY Better/ (Worse) EBITDA 748 770 3% Less cash outflows in respect of capital expenditures, customer acquisition costs and licence fees: Capital expenditures (146) (138) Customer acquisition costs and licence fees (76) (102) Fulfilment costs (40) (35) Right-of-use ("ROU") assets (88) (87) Adjusted Funds Flow before tax paid, net finance costs paid 398 408 3% and changes in working capital Adjusted for: Net finance costs paid (45) (89) Tax payment (10) (32) Changes in working capital (38) 24 Adjusted Funds Flow for the period 305 311 2.2% Adjusted Funds Flow per Share Stapled Unit (HK cents) 31.36 32.05 Interim Distribution per Share Stapled Unit (HK cents) 31.36 32.05 2.2% HKT Ⓡ HKT 2023 Interim Results a PCCW Group member 28#29Income Statement (US$ Million) H1’22 H123 YOY Better/(Worse) Revenue 2,071 2,103 2% Revenue (excluding Mobile Product Sales) 1,906 1,955 3% Cost of sales (1,042) (1,062) (2)% Opex (281) (271) 4% EBITDA 748 770 3% Depreciation & amortisation expenses (362) (346) Net other gains 1 Net finance costs (80) (118) (48)% Share of results of associates & JVs (5) (8) Profit before income tax 301 299 Income tax (56) (49) 18.5% 16.2% 245 250 2.2% Effective tax rate Profit for the period Attributable to: Holders of Share Stapled Units 245 250 2.2% Non-controlling interests HKT HKT 2023 Interim Results a PCCW Group member 29 29#30Solid Financial Position Investment Grade Credit Ratings (US$ Million) Gross Debt (1) Gross Debt to EBITDA (2) Cash Balance (3) Undrawn Facilities Total (1) Gross debt refers to the principal amount of short-term and long-term borrowings (2) Based on gross debt as at year end divided by EBITDA for the 12-month period (3) Including short-term deposits R HKT HKT 2023 Interim Results As of Dec 2022 5,664 As of Jun 2023 5,784 3.38x 3.41x BBB/Baa2 Investment Grade Rating 271 244 1,854 1,387 2,125 1,631 a PCCW Group member 30#31Debt Maturity Profile Impact of Interest Rate Hike Cushioned by Healthy Mix of Fixed & Floating Rate Debt As of 30 June 2023 Bank Loans Bonds (US$ Million) 580 954 851 750 650 128 500 500 351 300 213 2023 2024 2025 2026 2027 2028 2029 2030 2032 HKTⓇ HKT 2023 Interim Results Current mix of fixed and floating rate debt approx. 55:45 Effective interest rate approx. 3.77% in H1 2023 Average maturity was approx. 4 years a PCCW Group member 31#32Highlights 1 Unique Quad Play Experience - Only service provider that can offer voice, broadband, mobile and content to individuals, households, enterprises and government bodies 2 Customer-Centric Approach - Continue to invest in technologies, talent and customer support to provide innovative services, gain better customer insight and elevate the overall customer experience 3 Enriched Digital Ecosystem - with digital based activity becoming more prevalent, further enhance our applications, platforms and content to enrich the customer's online and, in the future, virtual experience Smart City Development - Continue to support smart city development in Hong Kong and mainland China by extending 5G applications to new industries and leveraging Al & cloud to drive enterprise digital transformation 5 Expansion into GBA - continuing integration of Hong Kong into the broader GBA market will increase cross border activity and drive future growth in consumer spending as well as demand for enterprise solutions HKT HKT 2023 Interim Results a PCCW Group member 32