#1((CO)) ④ 中国电信 CHINA TELECOM 5 2022 Interim Results China Telecom Corporation Limited 16 August 2022 www.chinatelecom-h.com#2Forward-Looking Statements ④ 中国电信 CHINA TELECOM The development strategies, future business plans, prospects and other forward-looking statements in this document do not constitute commitment by China Telecom Corporation Limited (the "Company") to investors. Such forward-looking statements are subject to known and unknown risks, uncertainties and other factors, which may cause the actual performance, financial condition or results of operations of the Company to be materially different from any future performance, financial condition or results of operations implied by such forward-looking statements. In addition, we do not intend to update these forward-looking statements. Investors are advised to pay attention to investment risks. 2022 Interim Results | 2#3Presented by Mr. Ke Ruiwen Executive Director, Chairman & CEO Mr. Shao Guanglu Executive Director, President & COO Mr. Liu Guiqing Executive Director & EVP Mr. Tang Ke Executive Director & EVP Mr. Xia Bing EVP Mr. Li Yinghui EVP & CFO 中国电信 CHINA TELECOM 2022 Interim Results | 3#4Overview Mr. Ke Ruiwen, Executive Director, Chairman & CEO Business Review & Financial Performance ④ 中国电信 CHINA TELECOM#5Summary of Highlights 中国电信 CHINA TELECOM High-quality development achieved new results with revenue and profit maintained double-digit growth 1 2 Fundamental businesses grew steadily while Industrial Digitalisation demonstrated strong momentum 3 e-Surfing undertakes to co-develop national cloud and maintains leadership in empowering thousands of industries 4 Iteration and upgrade in cloud-network integration with sci-tech innovation promotes development UT Further deepen corporate reform and steadily expand ecological cooperation 5 6 Interim dividend declared for the first time and continue to enhance shareholders' returns 7 Fully implement Cloudification and Digital Transformation to build a world-class enterprise 2022 Interim Results | 5#6Double-digit Revenue and Net Profit Growths with Profitability Continuously Increased RMB Mil Operating Revenues Incl.: Service Revenues EBITDA Net Profit Comparable Net Profit Interim DPS (RMB) 中国电信 CHINA TELECOM 1H2021 1H2022 Change 219,237 242,319 10.5% 203,502 221,384 8.8% 66,348 69,848 5.3% 17,743 18,291 3.1% 16,327 18,291 12.0% 0.12 Note: 1. Service Revenues = Operating Revenues (1H2021: RMB219,237Mil; 1H2022: RMB242,319Mil) - Sales of Mobile Terminals (1H2021: RMB10,367 Mil; 1H2022: RMB14,736Mil) - Sales of Wireline Equipment (1H2021: RMB3,677Mil; 1H2022: RMB4,099 Mil) - Other Non-service Revenues (1H2021: RMB1,691 Mil; 1H2022: RMB2,100Mil) 2. 3. 4. = EBITDA Operating Revenues - Operating Expenses + Depreciation & Amortisation Net Profit represents profit attributable to equity holders of the Company; Comparable Net Profit represents net profit excluding the one-off after-tax gain from the disposal of subsidiaries of RMB1,416Mil in 2021 Unless otherwise specified, all % and percentage point (p.p.) changes in this presentation are either 1H2022 vs 1H2021, or 2022.6.30 vs 2021.6.30; all figures are based on International Financial Reporting Standards ("IFRSS") 2022 Interim Results | 6#7High-quality Development Achieved Prominent Results 4 中国电信 CHINA TELECOM Note: 1. 2. Revenue growth remained robust Operating revenues +10.5% Maintained double-digit growth Service revenues 48.8% Above industry average Profitability further enhanced Comparable net profit +12.0% Maintained double-digit growth Surpassed revenue growth Industry-leading customer service Telecom user satisfaction Industry No. 1 Telecom user complaint rate Industry-lowest Industry's service revenue in 1H2022 increased by 8.5%, calculated based on figures reported by the three Hong Kong-listed Chinese telcos Source of telecom user satisfaction and complaint rate information: MIIT 2022 Interim Results | 7#8Fundamental Revenues Increased Steadily while Industrial Digitalisation Grew Rapidly 4 中国电信 CHINA TELECOM RMB Mil Mobile Communications Service Revenue 93,342 +6.0% Revenues increased across-the-board Wireline and Smart Family Service Revenue Industrial Digitalisation Revenue 98,956 58,932 57,350 59,871 49,531 +4.4% +19.0% 1H2021 1H2022 1H2021 1H2022 1H2021 1H2022 Growth Drivers Well-balanced Initial New Momentum RMB Mil Driving service revenues growth +4.3p.p. +4.0p.p. e-Surfing Cloud Security Service 28,082 5,014 +100.8% +43.2% 3,501 13,987 As a % of incremental service revenues 49.3% 45.5% Industrial Digitalisation Fundamental Businesses Note: 1. 2. 1H2021 1H2022 1H2021 1H2022 The Industrial Digitalisation revenue growth of 1H2021 and 1H2022, and its % to service revenues in 1H2020 and 1H2021 on this page, p. 24 and p. 30 are calculated by excluding the Internet Finance revenue figure of E-surfing Pay Co., Ltd. (which was disposed of in April 2021), in which RMB634 million was deducted from Industrial Digitalisation revenue and service revenues in 1H2020 and RMB582 million deducted from that in 1H2021 respectively Fundamental businesses refer to Mobile Communications Service and Wireline and Smart Family Service 2022 Interim Results | 8#9Core technologies independent and controllable Continue to Establish e-Surfing Cloud's Core Competitiveness to Co-develop National Cloud 天翼云 State Cloud • • 中国电信 CHINA TELECOM Network resource capability further enhanced Formed 2+4+31+X layered resource layout: Strengthen the computing power construction of hubs/nodes of integrated national big data centre and construct cloud-network integrated infrastructure Deploy localised full-product capability pool in 31 provinces: "One-City-One-Pool of Cloud Resources" covering >160 cities; deploy edge cloud at >800 nodes • To become the initiator of original cloud computing technologies Deploy independent and controllable e-Surfing Cloud operating system CloudOS4.0: Leverage unified technology stack to achieve full stack product innovation from ultra-massive, multiple availability zones (AZS) large-scale public clouds to polymorphic hybrid cloud services Breakthroughs in two fundamental softwares: Achieve independent and self-control of the core technologies of cloud server operating system CTyunOS and cloud native database TeleDB and fully commercialised Construct software-hardware coordinated next generation computing structure: Proprietary DPU achieved e-Surfing Cloud hardware acceleration, developed P4 programmable gateway, scale commercialisation of deep-customisable server Achieve multiple chip architectures in a single cloud: e-Surfing Cloud fully compatible with mainstream domestic chips and SaaS services Co-develop National Cloud and lead future with intelligence Technology ecology >500 Application ecology >1,500 technology partners application partners 天翼云+ Channel ecology >3,000 channel partners Service ecology >500 MSP partners • Fully upgrade eco-cooperation Broadest range Best value Best service Farthest growth Fully upgrade e-Surfing Cloud ecosystem on technology, application, channel and service; implemented "Cloud Creation", "Cloud Aggregation" and other cooperation programs • Established Cloud Computing Community with leading companies in the industry 2022 Interim Results | 9#10e-Surfing Cloud Boasts Industry-leading Market Influence RMB Mil All-out efforts to serve digital government, rural revitalisation and other areas to support digitalisation transformation of economy and society Revenue maintained doubling 中国电信 CHINA TELECOM Brand influence and market position further enhanced Public cloud market share substantially increased +109.3% 13,987 1H2021 1H2022 revenue Surpassed 2021 +101.9% 27,903 +100.8% 28,082 laaS market share laaS+PaaS market share +1.5p.p. +1.4p.p. 2021 1H2022 PRC gov't admin. public cloud No. 1 Dedicated cloud service market No.1 Note: Cloud market share information came from Public Cloud Market Data Tracking, 202201, Dedicated Cloud Service Market Share Report, 2021H2 and PRC Smart City Data Tracking Report by IDC 2022 Interim Results | 10#11Deepen Cloud-network Integration to Further Strengthen Digital Information Infrastructure High-speed and ubiquitous Aerial-ground in one Cloud-network integrated Intelligent and agile Cloud-network integration 3.0 Integration of multiple elements: DC+network+computing power+cloud+ Big Data/Al+security+greenness Cloud-network integration 2.0 Network adaptive to cloud, integration and endowment Cloud-network integration 1.0 Cloud-network coordination, capability consolidation End-to-end security system IDC cluster AD Big Data/Al Big Data Deep learning Alalgorithm Almodel framework • Cloud hosting Cloud storage Container Cloud computing Cloud- network Database operating CPU CPU GPU FPGA ASIC Computing power system Cloud All-fibre interconnected network IDC cluster Edge DC Edge DC New metropolitan network ☐☐ "8" Satellite 5G Gbps fibre network Dedicated lines Green and low-carbon Green and low-carbon development ④ 中国电信 & CHINA TELECOM Secure and controllable Technology-led, to enhance the capability of independence and self-control of core technologies CloudOS4.0, security core platform, Al algorithm, quantum, controller... Cloud-network integrated, to promote in-depth integration of computing power and network 2+4+31+X+0, DC/Cloud/Al coordinated deployment • Network reconstitution, "north-south + east- west" data traffic flow Intrinsic security, to construct end-to-end prevention system for critical infrastructure Security capability pool, Security brain, Cloud Dam Intelligent & agile, to perform customer-centric integrated cloud-network channeling • Cloud-network operating system, cloud-led network, network-led cloud... Green & low-carbon, to establish a new sustainable development model Green DC, green computing power, green network, green energy... 2022 Interim Results |11#12Focus on Future to Optimise CAPEX and Further Enhance Cloud-network Integration Capabilities CAPEX and proportions RMB Mil 2022 CAPEX plan RMB93.0Bil 27,005 Industrial Digitalisation 中国电信 CHINA TELECOM Build intelligent integrated digital information infrastructure Computing 41,655 Power Computing power +81k servers, reached 3.1EFLOPS "One-City-One-Pool of Cloud Resources" covering >160 cities IDC +19k cabinets •2H2022: Investment remains focused on IDC, cloud resources, ICT and other Industrial Digitalisation capabilities 1H2021 49.3p.p. 4/5G 2.5p.p. Broadband & Internet 1.8p.p. Operating systems & Infrastructure 5.0p.p. 1H2022 Note: Increments of infrastructure in the table on the right are vs 2021.12 5G +180k BTS Network 870k BTS in use, >990k by year-end Gbps/fibre network +1.17Mil Gbps ports, reached 5.12Mil +8.60Mil fibre ports, reached 320Mil Expedite "dual Gbps" network layout and continue to expand fibre network coverage Security core platform 32 secured datacentres Security capabilities pool 113 nodes Security · Established two-tier security core platform • • Anti-DDoS capability covers nationwide with cleaning capacity +1Tbps to 5.5Tbps . Security capabilities pool covers 31 provinces . Al energy-saving solution achieved full coverage to endow power-saving of 5G and facility rooms Greenness • Expedite retirement of low power efficiency facilities and old and obsolete facility room revamp and upgrade 2022 Interim Results | 12#13Co-building and Co-sharing Further Deepened 5G coverage orderly enhanced 5G BTS in use 870k +180k • Year-end target: >990k 5G to cover all cities, counties and key villages/towns Note: Increments of infrastructure are vs 2021.12 4 中国电信 CHINA TELECOM . 4G network co-sharing further deepened Co-shared 4G BTS 870k +210k • Step up 4/5G coordination by consolidating and co-sharing 4G BTS in mid/low traffic areas • 2022: to focus on expediting promotion of indoor 4G co-sharing, and plan to complete the integration of one 4G network with China Unicom within 3 years for quality enhancement, quantity reduction and efficiency increase Cumulative CAPEX savings RMB240Bil, annualised OPEX savings >RMB20Bil 2022 Interim Results | 13#14Substantial Progress in Sci-tech Innovation to Bolster Core Competitiveness ④ 中国电信 CHINA TELECOM Sci-tech innovation elements promptly assembled with substantial progress in problem-tackling efforts in key core technologies China Telecom was awarded with "Enterprises with Outstanding Contribution to Sci-tech Innovation" for 2019-2021 by SASAC 0 Tailor-made software development, integration delivery D SaaS PaaS • . • Accelerated adoption of applications IT platform: 100% cloud-migrated, proprietary ratio 48.9p.p. Business platform: >30Mil devices carried and connected for Internet of Video Things, ~80Mil devices carried and connected for Internet of Things Problem-tackling of core technologies Cloud: Cloud OS4.0 commercial used, integrated software/hardware products launched, e.g. proprietary servers "Zijin series", exchanges, DPU, etc., industry-leading cloud computer, cloud storage, CDN • Network: Scale deployment of proprietary all-fibre network and IP network controller, pioneer in completing three-layer decoupling of 5G core network Security: Security products, e.g. proprietary e-Surfing Security Brain, Quantum-encrypted Calls, etc., Al: First proprietary Al cloud camera launched, certain algorithms industry-leading, e.g. "Kitchen Monitoring", etc. Initiator of original cloud computing technologies Increased R&D initiatives RMB5.7Bil +54.8% Grew proprietary R&D achievements 74 items on achievement list in 1H2022, 43.1x R Note: 1. 2. Cloud-network integration • Initiator of fundamental researches . Innovation platform: To make "National Research Centre for Cloud-network Infrastructure Security" the industry benchmark Joint laboratory: Jointly commenced >40 research projects with leading universities and scientific research institutions Network ΑΙ Security Quantum • Patent: Accredited with National Patent Silver Award, +1,128 new patents in 1H, 4145% Developed R&D team No. of R&D personnel 446% vs year beginning Introduced leading talents Established >10 academician leading technology advisory expert committees Introduced >70 industry leading talents "R-D-O"="Research - Development - Operation" R&D initiatives include expensed R&D initiatives and capitalised R&D initiatives 2022 Interim Results | 14#15Solidify Security Foundation and Strengthen Capabilities to re Endow Customers Continue to enhance security products and servicing capabilities 2B e-Surfing Security Brain, Cloud Dam (anti-DDoS) Graded Protection Assistant, Quantum-encrypted Calls, Internet Fraud Prevention 8 RMB Mil CHINA TELECOM Cloud Dam: Billion-grade security product 847 Brain e-Surfing Security DDoS Protection Graded Protection Website Assistant security Telecom Digital Shield 2C & 2H e-Surfing Anti-harassment, Security Butler, etc. Reliable Communications e-Surfing Webcam Anti-fraud Radar 528 +60.4% 1H2021 1H2022 Tech capability breakthrough Deep threat inspection Al technologies + security Security capabilities strengthened Established national security core platform Security capabilities pool covers 108 cities Operating system enhanced HQ-province-city three-tier 24-7 operation Critical infrastructure protection demonstration project Personnel system strengthened Security principles penetrate operation and management Step up professional talent nurturing 2022 Interim Results | 15#16Deepen Corporate Reform Focusing on Customer's Digitalisation Demand 中国电信 CHINA TELECOM Focusing on customer's digitalisation demand, promote enterprise service reform with cloudification-as-the-core Sales Operation Delivery Demand 883 Cloud-network operating system Channeling 2B/2H/2C Cloud Core Platform Customer One-click respond Integrated system Implementation/delivery Integrated system Eco- CCS system partners Accelerate enterprise service reform Establish 13 industry business groups (BGS), 12 industrial research institutes, >4,000 fundamental capabilities available Establish cloud core platform With cloud-as-the-core, streamline key business processes, gather professional talents, offer integrated support and overall delivery planning Deepen professional company reforms Cloud company, Security company, loT company shortlisted as "Sci-tech Reform Demonstration Enterprises"; established professional companies for medical and healthcare and digital villages Strengthen integration team 135 localised integration companies, team with >20k personnel, formed DICT professional team covering cities and villages Expand cooperation ecology In-depth cooperation along upstream and downstream of industry chain, accelerate joint innovation of technology capabilities, break through business and scene boundaries Note: CCS refers to China Communications Services Corporation Limited 2022 Interim Results | 16#17Proactively Implement Social Responsibilities "1248" Green development Infrastructure power-saving measures led GHG emission to • Green and low-carbon development model Overall energy consumption per unit of information flow >15% >3 Mil tons PRC's first 100% clean energy-powered datacentre PUE <1.2 Reward society and care for employees Reward society Provide aids to dedicated areas for • effective support to rural revitalisation; inject intelligence to and endow Digital Village development Provide aids to alleviate difficulties for SMEs and boost market vitality Care for employees Step up caring for employees and facilitate mutual growth of employees and the Company • • • • • 中国电信 CHINA TELECOM Support epidemic prevention Implemented further reduction of average tariff of SME broadband and leased lines by 10% vs last year Offered anti-epidemic informatisation products, such as e-Surfing Cloud Broadcasting, Cloud Conferencing, Cloud Computer, cloud SaaS application, Incoming Call Info Display, etc. Provided integrated informatisation solution to Mobile Cabin Hospitals, and dedicated lines for emergency for nucleic acid testing sites, etc. Enhance governance quality Compliant operation and continue to enhance internal systems to enhance governance quality Voted by investors as "Most Honored Companies in Asia" in the All-Asia- Executive Team Poll by Institutional Investor for 12 straight years Awarded "Gold Award - Excellence in Environmental, Social and Governance" in the poll of "ESG Corporate Awards 2021" by The Asset 2022 Interim Results | 17#18Interim Dividend Declared for the First Time and Proactively Reward Shareholders 4 中国电信 CHINA TELECOM Endeavour to create value and honour the commitment during A-Share Offering The Board resolved to declare interim dividend RMBO.12/share Interim dividend payout ratio 60% Within 3 years after the A Share Offering and Listing, the profit to be distributed by the Company in cash for each year will gradually increase to 70% or above of the profit attributable to equity holders of the Company for that year 2022 Interim Results | 18#19Raising the Sail for the Blue Ocean of Digital Economy and Building a World-class Enterprise Vast growth potential of digital economy PRC's digital economy 4 中国电信 CHINA TELECOM Building a World-class Enterprise Industrial Digitalisation by 2025 (Forecast) by 2025 (Forecast) Total scale % to GDP Market potential CAGR RMB70.2Tril 50.5% RMB7.3Tril 17.3% Customer value Market potential of emerging businesses RMB Bil CAGR +22.6% 88.5 200 Security +24.4% 409 979 +34.0% 1,000 310 ΑΙ Cloud computing 2021 2025 Shareholder value Corporate value Better digital life Industrial digital upgrade Cloud-integrated Al-integrated Security-integrated Green-integrated Cloudification and Digital Transformation Sci-tech innovation Cloud- network integration Digitalised Ecological platforms cooperation Green and secure Systems and mechanisms Note: PRC's digital economy and industrial digitalisation market potential data is extracted from Development Research Center of the State Council, CCID Consulting, GSMA, Oxford Economics, CAICT, MIIT (Statistics Report), McKinsey and Company, IDC, Int'l telcos' websites; industrial digitalisation market potential CAGR is calculated with 2019 as start year 2022 Interim Results | 19#20④ 中国电信 CHINA TELECOM Overview Business Review & Financial Performance Mr. Shao Guanglu, Executive Director, President & COO#21Fundamental Businesses and Industrial Digitalisation: Dual Engines and Mutual Promotion ④ 中国电信 CHINA TELECOM Incremental Service Revenues Breakdown RMB Mil Driving Service +2.8 p.p. +1.2 p.p. +4.3 p.p. +0.5 p.p. +8.8% Revenues Growth 2,521 5,614 203,502 1H2021 928 221,384 8,819 Mobile Communications Wireline and Industrial Digitalisation Others 1H2022 Smart Family 2022 Interim Results | 21#225G and Gbps Broadband Development Accelerated with Subs Scale and Quality Continuously Enhanced Mobile and broadband scale continued favourable growth Mobile subs Broadband subs ④ 中国电信 CHINA TELECOM 5G and Gbps broadband penetration led in industry Gbps broadband penetration Mil Mil 384.22 +11.79 372.43 2021.12 2022.6 5G penetration 175.44 60.3% 11.8% +5.73 +9.9p.p. +4.1p.p. 7.7% 169.71 50.4% 2021.12 2022.6 2021.12 2C & 2H application revenues increased rapidly Application revenues RMB Mil +19.0% 20,984 17,638 Application revenues as a % of fundamental business revenues 13.2% +1.5p.p. 1H2021 1H2022 Note: 1. 5G penetration is based on number of 5G package subs 2 3 4 2. Application revenues refer to mobile application revenue and Smart Family revenue 3. 4. 2022.6 2021.12 Subs value maintained favourable growth 2022.6 Mobile ARPU Broadband blended ARPU (RMB) (RMB) 45.7 46.0 46.8 47.2 1H2021 1H2022 1H2021 1H2022 Mobile ARPU Monthly Average of Mobile Service Revenues/Average Number of Mobile Subs Broadband blended ARPU = Monthly Average of Revenues from Broadband Access, e-Surfing HD and Smart Family Applications and Services / Average Broadband Subs 2022 Interim Results | 22#23Expedite Product Innovation and Promotion of Digitalised Products Achieved Initial Results ④ 中国电信 CHINA TELECOM Accelerated development of standardised digital products Cloud Computer +81% Security Butler Al Vision +175% Cloud- integrated +59% 2C/2H: cloud package, cloud replay... 2B: cloud computer, cloud conferencing... Al- integrated • • 2C/2H: Al Time-lapse service, Al safeguarding (e.g. abnormalities recognition such as falling down, etc.), Al intrusion defense, Al abnormal patrolling... 2B: e-Surfing Cloud Eye Al products, Al customised products (e.g. chef hat/smoking recognition, restricted area warnings)... Security- integrated • 2C/2H: Quantum-encrypted Security Dedicated Lines (Security Brain, Cloud Dam (anti-DDoS), Graded Protection Assistant... • • • Scene-based solutions extensively launched Whole-home Intelligence +163% Smart Community / Digital Village +80%/4176% Internet of Video Things (IoVT) +40% Smart Family: Upgraded Whole-home WiFi and Whole-home intelligence customisation, enriched upgrade with loT products by integrating smoke/gas sensors, etc. Smart Community and Digital Village: Upgraded functionality of community services, public services, grassroots governance, etc. to promote 2C/2H/2B inter-convergent development loVT: Offered integrated and rapid access solution for video dedicated lines/application/cloud demonstrating the differentiation edge of cloud/network/edge/terminal/security coordination and integration; cumulative access devices reached 30.00Mil Note: Growth of no. of subscribers, communities and villages of Cloud Computer, Security Butler, Al Vision, Whole-home intelligence, Smart Community, Digital Village and loVT was compared to 2021.12 2022 Interim Results | 23#24Industrial Digitalisation Maintained Rapid Growth Revenue growth accelerated Industrial Digitalisation revenue RMB Mil 中国电信 CHINA TELECOM Focused efforts to foster future growth drivers Standard cloud/network/security products Security 49,531 417.2% 1H2021 58,932 Smart connectivity OTN Cloud Dedicated Network Cloud Cloud Computer Al Big Data Secure Dedicated Line 2.0 Quantum-encrypted Calls +19.0% 1H2022 Revenue contribution further increased Industrial Digitalisation revenue to service revenues 26.6% 24.4% 22.7% Current capability upgrade Monthly iteration and enhancement Future product incubation Outstanding product selection in different product lines Digital platforms and solutions Efficiently-centralised proprietary platform capabilities significantly enhanced 31 platforms promoted in efficiently-centralised manner nationwide 25 platforms under R&D simultaneously Social governance Smart Community Industrial Internet 30.0% Financial communication Rural poverty alleviation All-for-one tourism... services 1H2020 1H2021 1H2022 2024E Fundamental capability Refined capability output Cloud-network capability Tech. foundation+3 major core platforms Full cloud migration Digital platforms to merge into e-Surfing Cloud 2022 Interim Results | 24#25e-Surfing Cloud Edges Further Enhanced Leading in gov't admin cloud market 4 中国电信 Fast growing PaaS+SaaS revenues CHINA TELECOM Gov't admin cloud now serving in 20 provinces and 156 cities Public cloud revenue +115.2% Private cloud revenue +70.9% laaS revenue +105.0% PaaS+SaaS revenue +149.1% III Gov't admin: "City Brain" of a county Leveraged proprietary Big Data administration platform forming benchmark for market expansion Auto: Dedicated cloud for an automaker Provided full stack capability serving 36 upstream and downstream customers along industry chain Benchmark cases FF Social governance: A Smart Community Integrated all-in-one device iStack with smart applications for unified management of vehicles, pedestrians and security Healthcare: A healthcare community platform Constructed regional Internet of healthcare based on fully proprietary structure to support cloud migration of all services Transportaton/logistics: A private cloud for a highway Achieved data centralisation and co-sharing via proprietary laaS+PaaS cloud customisation Enterprise: A smart finance cloud Supported financial management modernisation by end-to-end public cloud solution 2022 Interim Results | 25#265G 2B Continue to Achieve Favourable Development Customer contracts grew rapidly Newly contracted customised Cumulative 5G 2B industry commercial projects network projects >1,300 £9,000 Focus on 15 industries: Industrial Internet, healthcare, Smart City, transportation & logistics, education, etc. Focus on 5G+ scenes: Industrial vision, production monitoring, remote control, smart factory logistics, etc. Project value further enhanced New contract value yoy growth Overall project gross profit margin >80% *20-30% ④ 中国电信 CHINA TELECOM Benchmark project benefits achieved Industry-leading benchmark 5G+smart aircraft maintenance for an airline company: • PRC's first 5G application for aviation industry covering 14 provinces • Supports ten thousands of maintenance workers, >2,000 flights, inspection and maintenance efficiency 420% Project revenue 46 times after combining with 5G customised network Driving scale replication Building 5G+ smart medical ecosphere infrastructure for a hospital: Enhanced operating efficiency by building smart scene of managing the hospital's assets • Integrated with e-Surfing Cloud and IDC services to realise integrated development of telecom services • Scale replication of >200 5G+smart hospital projects in aggregate 5G+ smart remote transformation of cranes for a steel company: • Effectively improved customers' working conditions and lowered workers' safety risks • Customers' plant operating efficiency +15% Project revenue of Phase 24*67% vs phase 1 Served >50 customers in steel industry in aggregate 血氧 历史記195 当前 96 2022 Interim Results | 26#27Expedite Infrastructure Construction to Effectively Undertake "East-to-West Computing Resource Transfer" Project Advanced deployment of computing power capability ④ 中国电信 CHINA TELECOM Computing power ⚫3.1 EFLOPS, 41.0 EFLOPS IDC DCI • >700 IDC sites, 487k cabinets, 419k cabinets; utilisatoin rate 72% . Expedite capability development of new hubs: land acquisition and new site construction in Jiangsu, Shanghai, Zhejiang, Anhui, Sichuan, Gansu, etc. • 1H2022 revenue: RMB17.9Bil, 411.1%, revenue scale PRC No. 1 • Strengthened assurance for all-fibre network with 320k km artery of multi-channel optical cable network covering 4 regions + 6 axles +8 hubs • Built industry-leading DCI network: CN2-DCI and OTN for gov't & enterprises connecting 8 major hub nodes and IDCs in major cities nationwide with backbone bandwidth >300Tbps • Inter-hub access latency among 8 major regional hubs *1ms to 15ms . Greenness • Newly-built datacentres PUE<1.3; southern hub PUE<1.25, northern hub PUE<1.2 Commenced energy-saving upgrade of >130 obsolete facility rooms and further propelled obsolete facility retirement Active participation of market-based green electricity trade and expedite introduction of green electricity Note: Increments of infrastructure are vs 2021.12 Hub node ORP Security capability Network security Data security 対 香り 呼伦気鑒 Pl Datacentre Terminal security 9 ONER [春] AM e-Surfing Cloud Server C ***Inner Mongolia Hub Beijing-Tianjin- Hebei Hub Cabinet Datacentre DCI network CN2-DCI Network OTN 6540 Ningxia Hub Gansu Hub R Chengdu Chongqing Hub "Guizhou Hub T Optical cable Yangtze River Delta Hub ALRIC 东 1360 404 Guangdong-Hong Kong- Macau Hub 群島 As 南海诸岛 2022 Interim Results | 27#28Cost Appropriately Contained and Reduced to Support High-quality Development 中国电信 CHINA TELECOM RMB Mil Operating Expenses Incl.: Depreciation & Amortisation 1H2022 Change 219,206 10.7% 46,735 3.6% Network Operations & Support 70,051 9.6% Personnel SG&A 44,618 12.4% 32,026 11.4% Interconnection Charges 6,348 4.8% Cost of Goods Sold • Seized the strategic opportunity of rapid digital economy development and increased initiatives in sci-tech innovation, Industrial Digitalisation and other key areas to enhance resource efficiency • • • Expanded 5G co-build and co-share and 4G network co-share, D&A continued to grow slower than revenue Digitalised operation reduced cost and increased efficiency, network operation related expense grew slower than revenue Seized development opportunity and appropriately increased initiatives in high growth areas, such as Industrial Digitalisation, Smart Family and others Strengthened high-tech talent recruitment • Increased incentives to frontline staff and high-performance teams • Precision sales and marketing resulting stable selling expense as a % of revenue Enhanced core capability, continued to increase R&D initiatives for future growth momentum 18,519 35.4% Significantly increased 5G handset sales volume 2022 Interim Results | 28#29④ 中国电信 Refined Management to Further Enhance Financial Strength + CHINA TELECOM EBITDA RMB Mil 66,348 45.3% 69,848 1H2021 1H2022 Total Debt RMB Mil 32,640 +66.6% 10,896 2021.6 2022.6 Sound capital structure supports healthy corporate development Debt-to-asset ratio 44.6% Corporate credit rating maintained highest AAA Note: 1. Total Debt in the charts above represents interest-bearing debts excluding lease liabilities 2. Credit rating was provided by China Chengxin International Credit Rating Co., Ltd. on the Company's credit rating of related debt in duration in May 2022 2022 Interim Results | 29#30Further Promote High-quality Development 4 中国电信 CHINA TELECOM Subs grew ahead of schedule while operating results enhanced steadily 2022 target Mobile subs net add 5G package subs net add Broadband subs net add Comparable Industrial 419.0% Digitalisation revenue Operating revenue +10.5% 43.85Mil 11.79Mil 5.73Mil 15Mil 80Mil 8Mil Strive to maintain 2021 growth rate Strive to achieve double-digit growth Comparable net profit +12.0% Strive to achieve double-digit growth 2022 Interim Results | 30#31A ASA'S OUTSTANDING COMPANIES POLL 2021 ASIAMONEY Overall Most Outstanding Company in Hong Kong Institutional Investor 2022 ASIA (EX-JAPAN) EXECUTIVE TEAM MOST HONORED COMPANY Asia's Most Honored Companies Thank You! For further information & enquiries, please contact our Investor Relations Department at [email protected] or visit www.chinatelecom-h.com Scan QR code to learn more about China Telecom's 5G 2B applications ④ 中国电信 CHINA TELECOM 16TH ASIANESGAARD 2021 Asia's Icon Asia's Icon on Corporate Governance 微信搜一搜 ○ 中国电信投资者关系 2022 Interim Results |31#32Appendix 1 — IFRSS ④ 中国电信 CHINA TELECOM#33Appendix 1.1: Extracted from Unaudited Condensed Consolidated Statement Comprehensive Income for the Six Months Period Ended 30 June 2022 ④ 中国电信 CHINA TELECOM RMB Mil Operating Revenues Service Revenues 1H2021 1H2022 Change RMB Mil 1H2021 1H2022 Change 219,237 242,319 10.5% SG&A 28,740 32,026 11.4% 203,502 221,384 8.8% Mobile Communications Service 93,342 98,956 6.0% Incl.: Selling Expense R&D Expense 23,839 25,967 8.9% 694 982 41.5% Incl. Handset Internet Access 70,541 73,775 4.6% Other Operating Expenses 20,555 25,776 25.4% Wireline and Smart Family Service 57,350 59,871 4.4% Incl.: Interconnection Charges 6,059 6,348 4.8% Cost of Goods Sold 13,682 Incl.: Broadband Access 38,107 40,799 7.1% 18,519 35.4% Smart Family Industrial Digitalisation Operating Profit 21,251 23,113 8.8% 7,174 8,049 12.2% Net Finance Costs (1,079) (30) -97.3% 50,113 58,932 17.6% Investment Income and Others, 3,243 842 -74.0% Incl.: IDC 16,070 17,852 11.1% Share of Profits of Associates and Joint Ventures Profit Before Taxation 23,415 23,925 2.2% Other Service Revenues 2,697 3,625 34.4% Income Tax (5,549) (5,572) 0.4% Sales of Goods and Others 15,735 20,935 33.0% Profit for the Period 17,866 18,353 2.7% Operating Expenses 197,986 219,206 10.7% Depreciation & Amortisation 45,097 46,735 3.6% Equity Holders of the Company Non-controlling Interests 17,743 18,291 3.1% 123 62 -49.6% Network Operations & Support 63,909 70,051 9.6% Incl.: Tower Usage Fee 5,657 5,710 0.9% Personnel 39,685 44,618 12.4% Free Cash Flow 1H2021 1H2022 Change 26,782 14,502 -45.9% Note: 1. Mobile service revenues amounted to RMB104.5Bil, representing an increase of 6.7% year-on-year; wireline service revenues amounted to RMB116.9Bil, representing an increase of 10.7% year-on-year 2. Excluding the impact resulting from the application of IFRS 16, the tower usage fee in 1H2022 was RMB10,225Mil 3. Free Cash Flow = EBITDA - CAPEX - Income Tax Expenses - Depreciation Charge for Right-of-Use Assets Other than Land-Use-Rights (1H2022: RMB8,119Mil) 2022 Interim Results |33#34of Financial Position as at 30 June 2022 Appendix 1.2: Extracted from Unaudited Condensed Consolidated Statement P+1/2 中国电信 CHINA TELECOM RMB Mil 2021.12.31 2022.6.30 Current Assets 127,360 153,091 Non-current Assets Total Assets Current Liabilities 634,874 630,758 762,234 783,849 265,072 287,866 Non-current Liabilities 65,994 61,833 Total Liabilities 331,066 349,699 Total Equity 431,168 434,150 Equity Attributable to Equity Holders of the Company 428,674 431,594 Non-controlling Interests 2,494 2,556 2022 Interim Results | 34#35Appendix 2-CASS ④ 中国电信 CHINA TELECOM#36Appendix 2.1: Extracted from Unaudited Consolidated Income Statement 中国电信 for the Six Months Period Ended 30 June 2022 RMB Mil CHINA TELECOM 1H2021 1H2022 Change Operating Revenues Operating Costs Taxes and Surcharges Selling Expenses General and Administrative Expenses 217,547 240,219 10.4% 149,969 165,716 10.5% 780 785 0.6% 25,578 27,902 9.1% 16,345 17,096 4.6% Research and Development Expenses 1,761 3,254 84.8% Finance Expenses 1,079 30 -97.3% Asset and Credit Impairment Losses (1,730) (2,235) 29.2% Investment Income 3,243 839 -74.1% Gains on Disposal of Assets, Other Income and Gains/(Losses) from Changes in Fair Value 1,643 1,984 20.8% Operating Profit 25,191 26,024 3.3% Net Non-operating Income and Expenses (1,776) (2,099) 18.2% Profit before Taxation 23,415 23,925 2.2% Income Tax Expenses 5,549 5,572 0.4% Net Profit 17,866 18,353 2.7% Equity Holders of the Company 17,743 18,291 3.1% Minority Interests 123 62 -49.6% Net Profit Attributable to Equity Holders of the Company excluding Extraordinary Gains and Losses 16,400 18,376 12.1% 2022 Interim Results | 36#37Appendix 2.2: Extracted from Unaudited Consolidated Balance Sheet as at 30 June 2022 ④ 中国电信 CHINA TELECOM RMB Mil Current Assets Non-current Assets Total Assets Current Liabilities Non-current Liabilities Total Liabilities 2021.12.31 2022.6.30 127,360 153,091 634,881 630,765 762,241 783,856 260,298 284,408 70,768 65,291 331,066 349,699 Total Shareholders' Equity 431,175 434,157 Equity Attributable to Equity Holders of the Company 428,681 431,601 Minority Interests 2,494 2,556 2022 Interim Results | 37#38④ 中国电信 CHINA TELECOM Appendix 3-Operating Figures and CAPEX Structure#39Appendix 3.1: Operating Figures Selected Operating Metrics for the Period Ended 30 June 2022 Subscriber (Mil) Mobile Incl.: 5G package Wireline Broadband Access Lines in Service e-Surfing HD loT Connected Devices 中国电信 CHINA TELECOM 2021.12 2022.6 Change 372.43 384.22 11.79 187.80 231.65 43.85 169.71 175.44 5.73 106.64 106.03 -0.61 121.37 124.39 3.02 297.77 359.50 61.73 1H2021 1H2022 Change Mobile ARPU (RMB) 5G ARPU (RMB) 45.7 46.0 0.7% 57.4 52.7 -8.1% Handset Data Traffic (KTB) 21,814 28,328 29.9% Wireline Broadband ARPU (RMB) 39.4 39.4 0.1% Wireline Broadband Blended ARPU (RMB) 46.8 47.2 0.9% 2022 Interim Results |39#40Appendix 3.2: CAPEX Structure 4 中国电信 CHINA TELECOM RMB Mil % 5G 4G 17,493 42.0% 425 1.0% Broadband & Internet 8,554 20.5% Industrial Digitalisation 10,122 24.3% Operating systems and infrastructure 5,061 12.2% 1H2022 CAPEX 41,655 100.0% 2022 Interim Results | 40