These initiatives will be our continued focus on quality of service, both in terms of the delivery of service or access to our customers, and in terms of customer service. We have worked hard to improve our customer service in recent years, and our efforts were recognized in 2011 by Global View Magazine which awarded us a Best Service Award for the second consecutive year. We will continue to strive to deliver improving customer service as we believe this is the most critical element in driving customer retention and market share growth. 

## Commitment to Corporate Social Responsibility 

CSR remained a core focus of the company in 2011, and our commitment to corporate governance, responsibility, transparency and disclosure was again recognized by trusted industry observers. We have been recipient of the Reader’s Digest Trusted Brands Platinum Award for Telecom Company in Taiwan for the eighth consecutive years. We were awarded the Excellence in Corporate Social Responsibility Award by the Common Wealth Magazine and received an “A+” ranking and ranked as one of the top 10 listed companies in “Transparency and Information Disclosure” from Taiwan Securities and Futures Institute for the sixth consecutive year. We were also awarded for the “Best Financial Disclosure in Asia Pacific and Greater China” by 2011 IR Global Rankings and ranked third for the “Best Corporate Governance” and “Best Corporate Social Responsibility” by 2011 FinanceAsia Award. We will continue to maintain our leadership position in the area of CSR and corporate governance by constantly striving to further improve our efforts and practices, including the practices of electronic voting for the annual shareholders meeting. 

We also continued to put a strong emphasis on our human resources management and the development of our staff company wide. Our guiding principal with regards to human resources is to do the right thing at the right time with the right people. As such, we implemented a voluntary early retirement program coupled with ongoing recruiting efforts to attract and retain key employees in research and development and elsewhere in the organization with the necessary skills to help advance our new technology initiatives. In fact, over the past few years, we have maintained a steady focus on recruitment, allowing us to renew our human resources, providing us with the necessary skills to compete in the years ahead. 

Finally, we continued to maintain our commitment to environmental sustainability, with our overall green procurement totaling NT$882 million in 2011, versus NT$410 million in 2010. We are also working to expand our energy savings solutions through our iEN offering for corporate customers. Our experience with our customers to date has shown that our system can deliver on average 6-10% savings in energy consumption. As a result of our efforts, we received several awards in recognition of our efforts to protect the environment in 2011. Chunghwa Telecom was the only telecom service provider in Taiwan to be awarded the “1st Taiwan Green Classic Award” among distinguished Taiwanese enterprises committed to green principles. We also received the “Energy Saving Award” from Taiwan Energy Service Association. 

## Outlook 

While the global macroeconomic environment remains uncertain with continued volatility expected in the year ahead and the regulator is expected to announce further initiatives, we believe that the telecom market will maintain its defensive characteristics. As such, our overall outlook for 2012 is cautiously optimistic. Our primary growth initiatives for the year ahead will center on the four key areas: innovation, broadband, VAS and convergence. Specific initiatives include the continued expansion of our broadband platform and our fiber network as we continue to migrate customers from ADSL to fiber, including the planned introduction of 100 Mbps and the trial of 1 Gbps broadband access for fixed-line in 2012, which we believe will help to further differentiate Chunghwa Telecom from the competition. In our mobile business, we will work to further build out our capacity and drive smartphone penetration, supported by the launch of the iPhone 4S which will certainly be a key growth driver. In addition, the 2012 London Olympics will play a key role in highlighting our content rich, cross-platform convergence services, complemented by the launch of our new MOD platform. On a longer-term scale, we expect 4G licenses to be issued, and Chunghwa Telecom will definitely seek to secure a license. 

As we work to deliver profitable growth in the year ahead, we remain committed to returning value to our shareholders. Our first priority is to invest in our core business, including broadband deployment in both fixed-line and mobile, and developing cross-platform applications, and we believe we have sufficient cash on hand to meet our investment needs in these areas. Second, we are constantly seeking prudent investment opportunities that complement our core business drivers and strategy 

