Chunghwa Telecom Financial Holdings Announces Approval to Invest in ARDIAN Expansion HR Path Continuation Fund S.L.P.

1. Name and nature of the subject matter (if preferred shares, specify issuance terms such as dividend rate):
ARDIAN Expansion HR Path Continuation Fund S.L.P.; a private equity fund

2. Date of occurrence:
115/06/16

3. Number of transaction units, unit price, and total transaction amount:
Not applicable, not applicable, not exceeding EUR 10,000,000

4. Counterparty and its relationship with the company (if the counterparty is a natural person and not a related party of the company, name disclosure may be omitted):
Expansion VI Management SASU, unrelated party

5. If the counterparty is a related party, state the reason for selecting the related party as the transaction counterpart, the previous transferor, the relationship among the previous transferor, the company, and the counterparty, the previous transfer date, and the transfer amount:
Not applicable

6. If the owner of the transaction subject was a related party of the company within the past five years, disclose the related party’s acquisition and disposal dates, price, and relationship with the company at the time of transaction:
Not applicable

7. Matters related to the disposal of claims (including types of collateral attached to the disposed claims; if the disposed claims are claims against related parties, disclose the name of the related party and the book value of the claim disposed):
Not applicable

8. Gain (or loss) from disposal (not applicable for acquisition of securities) (if deferred, list and explain recognition status):
Not applicable

9. Delivery or payment terms (including payment period and amount), contractual restrictive clauses, and other important agreements:
Delivery or payment terms (including payment period and amount): as stipulated in the contract;
Contractual restrictive clauses and other important agreements: as stipulated in the contract

10. Method of determining the transaction, reference basis for price determination, and decision-making unit:
Method of determining the transaction, reference basis for price determination: as stipulated in the contract
Decision-making unit: according to the company’s authorized approval authority

11. Net asset value per share of the securities-issuing company:
Not applicable

12. If the private placement reference price of the securities-issuing company differs from the per-unit transaction price by more than 20%:
Not applicable

13. Cumulative number, amount, ownership percentage, and rights restriction status (e.g., pledge) of the securities held to date (including this transaction):
Parent company: does not hold these securities
Company: not applicable, not exceeding EUR 10,000,000, estimated at approximately 3.6%, none
Subsidiaries: do not hold these securities

14. Proportion of cumulative private placement securities investment (including this transaction) to total assets and equity attributable to owners of the parent in the company’s most recent financial statements, and the amount of working capital in the most recent financial statements:
2% of total assets, 29% of equity attributable to owners of the parent, working capital: not applicable

15. Manager and brokerage fees:
Not applicable

16. Specific purpose or use of the acquisition or disposal:
For life insurance fund deployment in accordance with the Insurance Act

17. Dissenting directors’ opinions on this transaction:
Not applicable

18. Whether this transaction is a related-party transaction:
No

19. Date of board approval:
Not applicable, not within the board’s approval authority

20. Date of supervisor approval or audit committee consent:
Not applicable, not within the board’s approval authority

21. Whether the accountant issued a non-reasonable opinion on this transaction: No

22. Name of accounting firm:
Qingtian Accounting Firm

23. Name of accountant:
Hsu Ming-Hsiung

24. Accountant’s license number:
Taipei City Accountant License No. 3723

25. Other explanatory matters:
None