Management Present

Mr. Chang Xiaobing Chairman & CEO

Mr. Lu Yimin Executive Director & President

Mr. Li Fushen Executive Director & CFO

Mr. Li Gang Senior Vice President

Mr. Zhang Junan Senior Vice President

Overall Results

Operating & Financial Performance

Agenda

Overall Financial Results

(1) All financial figures in this document do not include deferred fixed-line upfront connection fee (RMB15 million in 2011), unless otherwise specified.(2) Due to unallocated items, operating revenue is not equal to the sum of mobile and fixed-line operating revenues, both of which are external revenues.(3) Due to unallocated items, service revenue is not equal to the sum of mobile and fixed-line service revenues.(4) Net profit would be RMB4,227 million in 2011, if including deferred fixed-line upfront connection fee.(5) Including deferred fixed-line upfront connection fee.

(RMB millions) 2012 2011 YoYOperating Revenue 248,926 209,152 19.0%

Of which: Mobile 164,771 126,526 30.2%

Fixed-line 83,277 81,690 1.9%

Service Revenue 210,127 185,870 13.1%

Of which: Mobile 126,036 103,307 22.0%

Fixed-line 83,213 81,627 1.9%

EBITDA 72,658 63,397 14.6%

EBITDA as % of Service Revenue 34.6% 34.1% +0.5pp

Net Profit 7,096 4,212 68.5%

Basic EPS (RMB) 0.301 0.179 68.2%DPS (RMB) 0.12 0.10 20.0%

4

(3)

(2)

(4)

(5)

(1)

2012 Performance Highlights

5

Transformation &

Upgrade for G

rowth

1 Industry-leading Revenue Growth

2 Further Optimized Business Structure

3 Scale Growth in Key Businesses

4 Rapidly Improved Profitability

5Significantly Enhanced Network Capability

Mobile’s share of service revenue: 60.0% Non-voice’s share of service revenue:

53.1%

3G service revenue up 82.6% Broadband service revenue up 11.8%

EBITDA over service revenue up 0.5pp Net profit up 68.5%

All 3G base stations upgraded to HSPA+ Share of FTTH/B access ports up 14pp

Service revenue growth 4.1pp higher than industry average

Market share up 1.5pp

Industry Average

(1) Industry averages are growth rates in key business revenues released by MIIT.(2) The Company’s operating revenue over the sum of operating revenues released by the three listed telcos (excluding fixed-line

upfront connection fees).

The Company

Service Revenue Growth Revenue Market Share

22.8%21.3%

2012 2011

+1.5pp

(2)

8.3%

13.1%13.4%

6.4%

10.0%9.0%

(1)

2010 2011 2012

Difference

+1.9pp

+3.4pp

+4.1pp

6

Industry-leading Revenue Growth & Further Increase in Market Share

7

Mobile’s share of service revenue up 4.4pp to 60.0%

Non-voice’s share of service revenue up 3.9pp to 53.1%

2011 2012

(RMB millions) (RMB millions)

2011 2012

(RMB millions)

37.2%41.7%

62.8% 58.3%

103,307126,036

70.0%

30.0%

81,627

63.9%

36.1%

83,213

2011 2012

55.6%

43.9% 39.6%

60.0%Mobile

Fixed-line

185,870

210,127

0.5% 0.4%(1)(1)

(1) Unallocated items.(2) Including voice, monthly fee and interconnection revenue.

Service Revenue & Mix Mobile Service Revenue

Fixed-line Service Revenue

Non-voice

Voice

Non-voice

Voice

(2)

(2)

Optimized Revenue Structure & Enhanced Capability for Sustainable Development

32,979

93,991

2011 2012

52.6%68.3%

47.4%31.7%

(1)

15,82014,37017,079

59,796

32,739

12,527

10.9%

2011 4Q122012 1Q12 2Q12 3Q12As % of 2G service revenue: 74.9% 85.3% 94.1%

(RMB millions)

(1) Average QoQ growth rate.

Data Traffic Growth (3G Handset Users)

107.8%

3G becoming No.1 Revenue Contributor

(1)

(MB millions)Mobile Service Revenue Growth

3G

2G

15.7pp

2011 2012

126,036

103,307

(RMB millions)

Average monthly data usage for 3G smartphone users: 256MB

8

3G Scale Growth Driving Transformation & Upgrade of Mobile Business

9

35,22639,370

(1) As at YE2012; yoy change.(2) Including voice, monthly fee and interconnection revenue.(3) Including fixed-line VAS, ICT , data and others.

(RMB millions)

2011 2012

Broadband Service Revenue Growth

Broadband Network Upgrade & Speed-up

Share of 4M+ Broadband Subs

Share of FTTH/B Access Ports

63.8%

59.0%

(1)

22.7%20.7%

30.0%36.1%

47.3%43.2%

Fixed-line Service Revenue Growth

+4.1pp

2011 2012

(RMB millions)

83,213 81,627

+22.5pp

+14.0ppBroadband

Voice

Others

(2)

(3)

Solid Broadband Growth Ensuring Stable Development of Fixed-line Business

10

EBITDA(RMB millions) (RMB millions)

Net Profit

72,658

63,397

34.6%34.1%

2011 2012

EBITDA as % of service revenue

7,096

4,211

2011 2012

Net profit as % of service revenue

2.3%

3.4%

Emerging Operating Leverage & Rapidly Improved Profitability

Supporting combined 2G/3G operation and preparing for integrated 2G/3G operation in future

Maintaining 3G advantage in network speed

Further expanding fiber optic broadband network

Catering to customers’ demand for better user experience and faster speed

RMB99.8 billion CAPEX in 2012 to build future-oriented high-speed 3G & broadband networks

+38.5%# of 3G Base Stations: 331,000

+23.9%# of Broadband Access Ports: 106 mn

yoy changes

+14ppOf which FTTH/B’s Share 59%

3G Base Stations: All upgraded to HSPA+

Maintaining network advantages to sustain rapid growth

Transmission Network: Scale deployment of IPRAN

3G Coverage in Townships:

All towns in East and Central China, developed towns in West China

+44pp

11

Growth-oriented CAPEX & Significantly Enhanced Network Capability

70%52%36%

21%50.4%42.4%32.6%

2012 2013E 2014E 2015E

Full Year Targets: Industry-leading Revenue

Growth Further Improved Profitability Substantially Lowered CAPEX-

to-Sales Ratio Maintained Network

Advantages Further Enhanced

informatization Capability

Emerging broadband and mobile Internet markets, rapidly growing demand for data services and accelerating penetration of informatization into all parts of the society, indicate that 3G and broadband businesses are still on the stage of rapid growth. 2013 is still important development window of opportunity for China Unicom.

(1) Source: Sino Market Research Limited, JP Morgan.(2) Source: IDC.

12

2013 Outlook: Seizing on Strategic Opportunity to Accelerate Development

Accelerating 3G Penetration3G Penetration in China (1)

Rising Smartphone Penetration

92%86%81%62%

2012E 2013E 2014E 2015E

Smartphone’s Market Share in China (1)

Proliferating Applications

164.7133.2

104.273.3

2012E 2013E 2014E 2015E

Global App Downloads (in billions) (2)

Improved Network CapabilityChina Unicom’s Evolving Mobile Network

2011 2012-2013 2014~

Speed up to:14.4M

Speed up to:21-42M

Speed up to:>100M

Development Strategies: Maintain network advantages,

fully promote 3G scale growth, and push forward integrated development of different services, so as to realize fast growth in mobile business

Maintain solid growth in broadband business to realize stable development of fixed-line business

Agenda

Overall Results

Operating & Financial Performance

185,87027,057 1,451606 210,127-4,673-4,3284,144

14

Local Access

(1) Including local voice, long distance, fixed-line VAS and interconnection revenues.

Local Access

2011 2012

34,003 29,330

(1)

3G

2011 2012

32,739

59,796

2011 3G Broadband ICT 20122G Data & Others(1)

Contribution to growth rate: +14.6pp +2.2pp -2.5pp +0.3pp-2.3pp +0.8pp

2G

2011 2012

70,568 66,240

Broadband

2011 2012

35,226 39,370

+13.1%Service Revenue(RMB millions)

Overview3G & broadband continuing to drive solid revenue growth

95,74393,787

36.0%20.2%

70,568 66,240

32,739 59,796

126,036

103,307 788,819

654,257

47.947.3

(RMB millions)

Mobile Service Revenue

3G

2G

(RMB)Mobile ARPU

(Million minutes / minutes)Mobile Total Voice Usage & MOU

2012 2011

2012 2011

2012 2011

303.8 306.4

Mobile SMS UsageHandset User MOU

Share of 3G SMS2012 2011

(Million messages)

239,312199,660

31.9%20.0%

Share of 3G Subs

(’000)Mobile Subscribers

2012 2011

15

Mobile BusinessRapidly growing subs & revenue with further improved subs quality

28,485 16,057

155,122

79,562

2011 2012

(MB millions)

Mobile Data Traffic Smartphone penetration in the Company’s mobile subs up 14pp

Promoted data volume operation; 3G smartphone user’s monthly data usage at 256MB

Pushed forward WO+ platform buildup; further enhanced capabilities in smart pipe and Internet apps aggregation

Registered users up 374%WO Store

Mobile MusicFull year revenue

up 174%

WO Reading

Mobile Video

Full year revenue up138%

Full year revenue up 122%

3G

2G

183,607

95,619

16

Mobile BusinessProactive transformation & upgrade, rapid growth in data business

Differentiated2G/3G Operation

Combined2G/3G Operation

Integrated2G/3G Operation

Evolving Mobile Business Strategies

Conditions for combined operation mature

Initiatives of combined operation

Improved customer value

3G’s share of total handset sales in China up 27.9pp yoy to 73.7%.

Supply and quality-to-price ratio of RMB1,000 smartphones significantly improved.

The Company’s 3G network coverage in townships up 44pp yoy.

In Oct 2012, the Company opened its 3G network to existing 2G users who signed up the following 3G data packages:

Monthly Fee Local Data Volume

RMB10 100MB

RMB20 300MB

RMB30 500MB

For 2G customers who signed up those 3G data package in Nov and Dec 2012:

ARPU 4-5%

Monthly data usage per user

80-90%

17

(1)

(1) Based on 2012 data; Source: Sino Market Research Limited.

Mobile Business2G/3G combined operation to further optimize mobile business structure

46.3%43.2%39.0%

44.7%

Contract Users as % of 3G Subs

Mar 2012 June Sept Dec

(1)

313,133

169,501

76,456

40,019

18

ARPU

(’000, RMB)3G Subs & ARPU

2012 2011

110.0 86.1 17.7%

10.2%

2011 2012

3G Handset Subsidyas % of 3G Service Revenue

(1) Due to the change in the definition of contract user in 2H2012, previous ratios were restated.

(Million minutes, minutes)3G Total Voice Usage & MOU

Handset User MOU2012 2011

635.3 492.3

Mobile BusinessRapid growth in 3G subs, further decline in handset subsidy-to-sales ratio

43,80448,358

22,43622,210

70,56866,240

2011 2012

245.4 256.9

2011 2012

34.237.4

2011 2012

(’000, RMB)

(RMB millions)

(1) Including voice, monthly fee and interconnection revenue.

2G Service Revenue

VoiceNon-voice (1)

2G Subs & ARPU

ARPU

159,641 162,856

(Million minutes, minutes)2G Total Voice Usage & MOU

MOU

484,756 475,686

2011 2012

(MB millions)2G Data Traffic

16,057 28,485

19

Mobile Business2G: decline in traditional services, strong growth in data service

Stable

Development

of Fixed-line

Business

Broadband Subs & ARPU

63,86955,651

54.456.4

2011 2012

(’000, RMB)

91,95792,851

22.625.7

2011 2012

(’000, RMB)Local Access Subs & ARPU

% of 4M+ in Broadband Subs

63.8%

41.3%

2011 2012

14,880

8,380

28.8%18.6%

2011 2012

(’000)“WO Family” Subs & Share

ARPU

ARPU

Share of Residential Broadband Subs

20

Fixed-line BusinessSolid growth in broadband, rapid increase in “WO Family” penetration

Launch of

Smart City

Strategy

Leading positions in a series of sectors：

More than 7.96 million

users

Mobile Office

Auto Informatization

Installed in 2.28 million

vehicles

Wireless Surveillance

Installed in 3.48 million

points

Scale

Development

of Industry

Applications

Smart Government

Smart Transportation Smart

Security

Smart Finance Smart Energy

Smart Medical Service

Service Revenue from Enterprise Customers

yoy up 24.4%

ICT Revenue yoy up 37.1%

Strategic Partners 112

Key Industry Applications Users

22.99 mn

21

Smart Education Smart Logistics

Enterprise Customer BusinessIndustry applications driving fast growth in enterprise customer business

(RMB millions) 2012 YoY YoY %

Operating Expenses 237,324 33,548 16.5%

Adjusted Operating Expenses 198,386 18,558 10.3%

Interconnection Charges 18,681 2,301 14.1%

Depreciation & Amortization 61,057 3,036 5.2%

Networks, Operations & Support 32,516 3,067 10.4%

Employee Benefit 28,778 2,177 8.2%

Selling & Marketing 35,037 6,286 21.9%

3G Handset Subsidy 6,102 311 5.4%

G&A and Others 16,215 1,379 9.3%

Net Finance Costs 3,424 2,180 175.2%

Net Other Income (Costs) 1,343 -108 -7.4%

Total Costs & Expenses 239,405 35,836 17.6%

(1) In 2012, costs of telecom products sold amounted to RMB45.04 billion, up 51.5% yoy; sales of telecom products amounted to RMB38.80 billion, up 66.6% yoy. As a result, loss of telecom products sold amounted to RMB6.24 billion, of which 3G handset subsidy RMB6.10 billion. Adjusted operating expenses is defined as operating expenses minus costs of telecom products sold plus 3G handset subsidy.

2) Net other income (costs): other income minus other costs.

(1)

(2)

22

Costs & Expenses

8.9%

29.1%

15.5%

13.7%

16.7%

3.1%7.7%

8.8%

31.2%

15.8%

14.3%

15.5%

2.9%

8.0%

2011 2012

G&A and Others 3G Handset Subsidy

Selling & Marketing

Employee Benefit

Networks, Operations & Support

Depreciation & Amortization

Interconnection Charges

96.7%94.4%

Adjusted Operating Expenses Structure(as % of service revenue)

23

Adjusted Operating Expenses

(1)

(1) In 2012, costs of telecom products sold amounted to RMB45.04 billion, up 51.5% yoy; sales of telecom products amounted to RMB38.80 billion, up 66.6% yoy. As a result, loss of telecom products sold amounted to RMB6.24 billion, of which 3G handset subsidy RMB6.10 billion. Adjusted operating expenses is defined as operating expenses minus costs of telecom products sold plus 3G handset subsidy.

-29,170

-10,168

2011 2012

2012 % of Total

Mobile 40.92 41.0%

Broadband & Data 25.52 25.6%

Infrastructure & Transmission 25.53 25.6%

Others 7.82 7.8%

Total 99.79 100.0%

70,62066,491

2011 2012

(RMB millions)

Cash Flow from Operation

(RMB millions)

Free Cash Flow

CAPEX(RMB billions)

24

Cash Flow & CAPEX

Key Balance Sheet Figures(RMB millions)

25

Balance Sheet

YE 2012 YE 2011

Assets 516,124 456,233

Cash & Deposits 18,250 15,106

Liabilities 306,619 250,335

Interest-bearing Debt 142,120 107,108

Total Equity 209,505 205,898

Liabilities-to-Assets Ratio 59.4% 54.9%

26

Thank You

Appendix I: Income Statement

(RMB millions) 2012 2011 (RMB millions) 2012 2011

Revenue: Including：Selling & Marketing (35,037) (28,751)

Service Revenue 210,127 185,885 Cost of Products Sold (45,040) (29,739)

Sales of Telecom Products 38,799 23,282 Total Operating Expenses (237,324) (203,776)

Total Operating Revenue 248,926 209,167 Operating Profit: 11,602 5,391

Operating Expenses: - - Finance Costs (3,664) (1,474)

Interconnection Charges (18,681) (16,380) Interest Income 240 230

Depreciation & Amortization (61,057) (58,021) Net Other Income (Costs) 1,343 1,451

Networks, Operations & Support (32,516) (29,449) Profit (Loss) Before Tax 9,521 5,598

Employee Benefit (28,778) (26,601) Taxation (2,425) (1,371)

SG&A and Others (96,292) (73,325) Net Profit (Loss) 7,096 4,227

27

(1)

(1) Including deferred fixed-line upfront connection fees (RMB15 mn in 2011, RMB0 in 2012).

28

(RMB millions) YE2012 YE2011 (RMB millions) YE2012 YE2011

Non-current Assets (selected): Non-current Liabilities (selected):

PPE 430,997 381,859 Long-term Bank Loans 536 1,384

Lease Prepayments 7,601 7,657 Promissory Notes & Corporate Bonds 2,000 22,000

Goodwill 2,771 2,771 Convertible Bonds - 11,118

Deferred Income Tax Assets 6,534 5,091 Total Non-current Liabilities: 4,299 36,408Financial Assets at Fair Value through Other Comprehensive Income

5,567 6,951 Current Liabilities (selected):

Other Assets 14,480 13,101 Accounts Payable 108,486 95,252

Total Non-current Assets: 467,950 417,430 Taxes Payable 1,820 1,232

Current Assets (selected): Commercial Papers 38,000 38,000

Inventories & Consumables 5,803 4,651 Short-term Bank Loans 69,175 32,322

Accounts Receivable 13,753 11,412 Advances from Customers 42,345 35,722

Prepayments & Others 9,580 6,127 Total Current Liabilities: 302,320 213,927

Cash and Cash Equivalent 18,250 15,106 Total Liabilities 306,619 250,335

Total Current Assets 48,174 38,803 Total Equity 209,505 205,898

Total Assets 516,124 456,233 Total Liabilities and Equity 516,124 456,233

Appendix II: Balance Sheet (selected)

Appendix III: Key Operating Metrics

29

2012 2011

2G Business

Subscribers (’000) 162,856 159,641

ARPU (RMB)(1)34.2 37.4

MOU (minutes)(1)245.4 256.9

Voice revenue per minute (RMB) 0.092 0.100

3G Business

Subscribers (’000) 76,456 40,019

ARPU (RMB) 86.1 110.0

Handset user MOU (minutes) (1)492.3 635.3

Fixed-lineLocal Access

Subscribers (’000) 91,957 92,851

of which：Fixed-line 86,535 85,064

PHS 5,422 7,787

ARPU (RMB)(1)22.6 25.7

of which：Fixed-line 26.1 27.4

PHS 8.2 11.8

Local voice usage (million pulses) (excluding Internet dial-up usage) 81,491 125,275

Long distance usage (million minutes) 18,197 21,553

Fixed-lineBroadband

Subscribers (’000) 63,869 55,651

ARPU (RMB) (1)54.4 56.4

(1) Average number of subscribers for a period = sum of all monthly average number of subscribers in the period divided by total number of months in the period; average number of subscribers for a given month = (the number of subscribers at the end of previous month + the number of subscribers at the end of the given month) / 2.

Forward-looking Statements

Certain statements contained in this announcement may be viewed as “forward-looking statements” within the meaning of Section 27A of the U.S. Securities Act of 1933 (as amended) and Section 21E of the U.S. Securities Exchange Act of 1934 (as amended). 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. These risks, uncertainties and other factors include: the uncertainties in the development of the telecommunications industry and related technology in the PRC; the level of the market demand for telecommunications services; changes in the competitive environment, regulatory environment and the PRC government’s regulatory and/or industry policy for the telecommunications industry; the effects of tariff reduction initiatives; the result of the anti-monopoly investigation by the National Development and Reform Commission of the PRC relating to the price charged for Internet dedicated leased line access service provided by the Company to Internet service providers; the availability, terms and deployment of capital; changes in the assumptions upon which the Company has prepared its projected financial information and capital expenditure plans; changes in the political, economic, legal and social conditions in the PRC; and other factors that will affect the execution of the Company’s business plans and strategies, as well as the Company’s business condition and financial results.