China Airlines
2023 2nd Investor Conference
NOV.23.’23

Disclaimer

The information disclosed in this presentation and its accompanying announcements, including content
relating to business outlooks, financial operations, and business forecasts, is based on information
derived from internal corporate data and external economic developments as a whole. The Company is
not responsible for updating or making adjustments to the contents of this presentation to reflect theactual needs of the market, the latest policies or the ongoing changes of the economics.
This information disclosed here only represents the outlooks based upon the available data for thecurrent time and does not indicate or ensure the actual performance in the future. Neither should thedata be taken as the full statement of the future development of the company nor the industrial
phenomena.

For the convenience of readers, this presentation has been translated into English from an original
Chinese version. If there is any conflict between these two versions any misinterpretation in place ,information in the Chinese version shall prevail.

2Agenda
 2023Q1-Q3 Operating Performance

Operating Challenges
 Passenger Market, Performance & Strategies

Cargo Market, Performance & Strategies
Fleet Development
Sustainability Actions and Achievements

32023 Q1-Q3 Operating Results

2023 Q1-Q3 Financial Performance
2023 Q1-Q3

2022 Q1-Q3

Differences

Passenger revenue

866.2

122.8

743.4

605.4%

Cargo revenue

424.3

928.1

-503.8-54.3%

Other operating revenue

85.1

66.9

18.2

27.2%

Net Operating Income

90.7

42.5

48.2

113.6%Net Income After Tax

74.0

31.4

42.6

135.6%Net Income Attributable toOwners of the company

69.0

36.2

32.8

90.7%

Earnings Per Share (TWD)

1.15

0.60

0.55

91.7%

(NTD 100 Million)

YoY

Operating revenue

Based on consolidated financial report

5Operating Revenue by Source

 Passenger revenue have exceeded cargo revenue becoming the largest
revenue share representing 60% from 2023 Q2Monthly revenue

Currency：NTD100 million
Pax rev

Cgo rev

Other rev

140
120

100
80
60
40
20
0

1234567892022
Based on individual financial report

1011121234567892023
6

The growth operating revenue in 2023
 The operating revenue over the first nine months of 2023 increased by 14.7% comparedwith the same period last year. Mostly contributed by the 719.4% annual growth rate ofpassenger revenue, the passenger revenue from all regions increased significantly.
NTD100 million
420

Quarterly revenue

400

NorthAmerica,+579%

380360340
3202023Q1-Q3 passenger revenue distribution
by region (YoY)

2023 Q2, 2023 Q3,413.69412.782022 Q4,
2022 Q1,
2022 Q2, 2022 Q3, 359.24
353.47351.69346.31

Europe,+479%

North EastAsia
+3,497%China+382%

2023 Q1,379.54

South East
Asia,+465%

Oceanic,+674%

300

Based on individual financial report

7Cost Breakdown and Comparison
0%2023Q1-Q3

10%

20%

34.0%

Fuel
2022Q1-Q3

30%

40%

50%

16.6%

60%

14.5%

Rental, Depr.
& Amortization

40.1%

Based on individual financial report

18.2%

70%

80%

14.3%

Labor
14.1%

Maint.

90%

10.3%

100%

10.3%

Airport &ground Passenger service,handling Sales & OTH

13.6%

9.0% 5.0%

8

Fuel Cost Analysis
Unit

2023Q1-Q3

2022Q1-Q3

YoY

Jet fuel(MOPS)USD/BBL

103.6

129.8

-20.2%

Fuel Consumption

10K BBL

1,127.2

1,004.2

12.3%

Fuel Cost

TWD
100 million

389.4395.3-1.5%

Hedging gain

TWD
100 million

(0.2)

(1.1)

-Total fuel cost

TWD
100 million

389.2

394.2

-1.2%

Based on individual financial report9Crude Oil and Jet Fuel Price Trends
USD/BBL

Brent

Jet Fuel

140

128

124
120

116

101

100

86

88

94
81

85

80

73
60

1-Jan-23

1-Feb-23 1-Mar-23

1-Apr-23 1-May-23

1-Jun-23

1-Jul-23

1-Aug-23 1-Sep-23 1-Oct-23

1-Nov-23

10

Financial Risk Management
 CAL’s hedging of fuel, exchange rates and interests rates
etc., are based on the decisions made by the Risk
Committee of Board of Directors.
 Exchange rates ： Natural hedge is applied in order toreduce exposure to currency fluctuation risks.
 Interest rates：Issue fixed-rate corporate bonds and tradederivative products such as IRS to reduce interest rate risks.

11Passenger Market,
Performance & Strategies

2023 Q1-Q3 Passenger Operational Results
Period(Q1-Q3)
Passenger revenue(NT $billion )Revenuepassenger(10 K)

Available
Seat Kilometer(ASK)(billion)

Averageload factor(%)

Passenger yield(TWD/RPK)

2023

2019+/- (%)

742.2

711.2

+4.4%

691
316

1,176

393

Passenger Revenue Sources by Flight Region-41.2%

Oceania7%
China &Hong Kong11%

-19.5%

Europe14%

78.5

80.7

-2.2 ppt

2.99

2.25

+32.9%

Based on individual financial report

Southeast
Asia 17%

TransPacific27%

Northeast
Asia 24%

13

Global Passenger Market Overview• The global international passenger market is experiencing stable growth, with high passenger load factors.
• IATA predicts that the market will surpass pre-pandemic levels in 2024.
Global Int. Passenger Market

Global Int. Passenger Market recovery forecast

ASK/RPK YOY%(vs in 2019)

PLF%

20%100%0%80%-20%

RP（million）

2000

105%

100%

93%

1500

60%

67%-40%40%-60%-100%0%

Jan
MarMay
Jul
Sep
Nov
Jan
MarMay
Jul
Sep
Nov
Jan
Mar
May
Jul
Sep
Nov
Jan
Mar
May
Jul
Sep
Nov
Jan
Mar
May
Jul
Sep

-80%

20%

2019

2020

RPK

2021

AKS

2022

PLF

Source：IATA

114%

1000
26%

28%

500

2023

02017

2018

2019

2020

2021

2022

2023

2024

2025

14

APAC/Taiwan will Reach 2019 levels by 2025-2026
All Regions
International Passenger Market recovery forecast
RP（million）

AfricaAPAC

1200

Middle East

North AmericaEurope

International Passenger Market recovery forecast

120%

105%

1000

Taiwan

100%

94%

92%

96%100%100% 100%
80%

80%

800

80%

111%
96%

600

60%

65%

60%

76%

400

40%

52%

103%

94%

200

2017

2018

2019

2020

2021

2022

2023

20%

112%

98%
90%

0

40%

2%

101%
2024

Source：IATA, CAA

2025

15%
10%

Up

Baseline

2025

2026

0%
2026

2017

2018

2019

2020

2021

2022

2023

2024

15

Passenger Market Outlook---Taoyuan Airport Passenger Demand Continues to Soar
• Passenger volume reaches 6.714 Million, exceeding expectations by 3.3% during the summer vacation.

• TIAC positively predicts total passenger volume till November will surpass 30 million, the annual passenger.
volume will over 70% of 2019 level
Taoyuan Airport Passenger Vol.
2019-2023/9

million51513.043

Taoyuan Airport Daily Average Passenger Vol.
2019-2023/9

10k

2+1117.2%

v.s 22+3562.4%

v.s 21-31.7%

v.s 1913.6 13.9
13.1 13.4

13.3 13.2 13.2
12.2

10.9
10.4 10.7
10.22023 Q1-Q3

3.67 m13.7 13.5 13.9

9.2

10
3.05 m6.7

7.2(2023)

8.9

7.9

2022.101(2019)Border reopen5(2022)

2.2
JanAprJul
OctJanAprJulOctJanAprJulOct
JanAprJul
OctJanAprJul0

2019

2020

2021

2022

20230

Source： Taoyuan International Airport

Jan Feb Mar Apr May Jun(2021)(2020)Jul Aug Sep Oct Nov Dec

16

Capacity (ASK) Reached 80% of pre-COVID19
Long-Haul

S.E. Asia

ASK：82%~105%

ASK：83%（PAX revenue：115%~168%）

China &Hong Kong

Up to 80% at theend of year 2023

ASK：37%~40%（PAX revenue：42%~60%）（PAX revenue：93%）

Japan、Korea
ASK：59%（PAX revenue：82%）

17

Passenger Operation Strategy
Steady Development Take advantage of Taiwan’s
geographic position as a transit hub,and increase frequencies to North
America as well as short-haul network.
 Develop bilateral tourism by integrating
local resources Strengthen cooperation between
partner airlines
 Develop diversified and global businesscustomers
 Cultivate new generation customers

Continuous Innovation
 Provide a unique journey to passengers
with enhanced digitalized customer
service Upgrade member system Enhance official website and app
function
 Digitalize Corporate Card Service (CFS) Enhance product value by crossindustry collaboration.

18

Cargo Market,Performance & Strategies

2023 Q1-Q3 Cargo operational results
Cargo revenue distribution by region

Period(Q1-Q3)

2023

Cargo revenue

422.0-54.4%

33.6%

Carried tonnes

54.6-23.6%

-5.2%

6.1

-3.0%

3.3%

67.1

-10.8 ppt

0.8 ppt

10.39-45.4%

27.8%(NT $billion )(10 K)

Available
Freight
Ton Kilometervs 2022

vs 2019(FATK)(billion)

Averageload factor(%)

Cargo yield(TWD/FRTK)Oceanic,
3%
Noth East
Asia, 5%

Hongkong,
4%

China, 6%South East
Asia, 12%Europe,15%

North
America,55%

Based on individual financial report

20SOURCE：本公司整理Global Cargo Market Overview• The increasing of belly cargo capacity drives FATK’s growth which has surpassed 2019 level.
• Cargo demand has been steadily growing since May.
• In August, the monthly international CTK recorded its first YoY growth in 19 months.
Global Monthly Int. CTK（2019、2022、2023）

Global Int. Market – FATK/FRTK/CLF
ASK/RPK YOY%
(vs in 2019)

CTK（billion）

15%

100%

2019

252022

2023

First YoY growth in 19 months
80%

0%

20

60%
-15%
40%-30%Jan
MarMayJul
Sep
Nov
JanMarMayJulSep
Nov
JanMarMayJul
SepNov
JanMarMayJulSep
Nov
JanMarMayJul
Sep-45%20%201920202021

2022

FRTKFATKCLF

Source：IATA

15

100%
52023

0JanFebMar

Apr May JunJulAug Sep

Oct Nov Dec

21

2023 China Airlines Cargo Performance and Market Share For Taiwan import/export/transfer cargo in 2023Q1-Q3, China Airlines carried nearly
432 thousand tons with market share of 40.5%, ranking NO. 1 among all airlines although
the belly capacities were largely increasing after pandemic released.
 In terms of Taiwan export volume, China Airlines carried 112 thousand tons in 2023Q1-Q3with market share of 34.7%, which was dropped by 0.7ppt as compared to 2022 same
period, also in a leading position.
Taiwan Export Cargo Volume and CI Market Share(Q1-Q3)

Taiwan Cargo Volume and CI Market Share(Q1-Q3)
56.4

60.0

40.0

45.0%

43.2

38.5

35.0%

35.4%

40.0%

40.5%

20.0

11.2

10.9
10.0

42.0%

40.0%

15.0
15.0

5.0

34.7%
30.0%

30.4%

38.2%
0.0

35.0%

Y19

Y22

CGO Vol(10K ton)

Y23
CI Market Share

0.0

25.0%

Y19

Y22

CGO Vol.(10K ton)

Y23
CI Market Share

Source：Taiwan Air Cargo Terminal Limited, Evergreen Air Cargo Services Corp & Farglory

22

Cargo Market Outlook---Taoyuan Airport Cargo Demand Stabilizing• Q1-Q3 cargo volume experienced a 19.31% decrease compared to 2022, but nearly reached the 2019 level.
• The proportion of Taoyuan Airport’s transshipment cargo continues to rise year by year.
• The destocking phase nears its end, expecting the demands will be gradually stable in upcoming 2023 Q4
and 2024.
Taoyuan Airport Monthly Cargo Vol.
2019 – 2023/9

Taoyuan Airport Import/Export/Transshipment vol.
2018-2023 (Q1-Q3)

10K ton

MailTransshipment26207.83

10K ton24222002019 Sep, 18.5

20-19.31%-0.71%

1614

171.81

158.18120

v.s 22
v.s 1980

1281.5(47.4%)

14

7 10 120194

7 10 12020

4

7 10 12021

4

7 10 12022

472023

Source：Taoyuan International Airport

Total

194.65157.06100.7(48.5%)

95.8(49.2%)

71.7(45.3%)

81.7(49.3%)

43.1

39.7

40.9

46.0

45.5

41.8

50.2

48.8

39.4

2018

2019

2020

2021

2022

2023

40

10Import

165.821602023 Q1-Q3

18Export

55.5

48.9

79.7(50.8%)
37.0

0

210
200
190
180
170
160
150
140130120110100908070605040302010023Cargo operation strategy
Optimize Network and Strengthen Revenue Management

 Introduce 777F new freighter strive for high-yield sources of goods, e.g., semiconductor, cool chain products, etc.

 Focus on industrial supply chain reconstruction and optimize cargo network
 Strive for medium/ long-term customized services /chartered flights

 Cooperate with major integrators and expand CI network24

Fleet Development

Operating Fleet

Recent Plan：SEP 2023

Year End2023

Diff.

777-300ER

10100A350-900

14140A330-300

19190737-800

1210-2A321neo

10100

Passenger
Total

6563-2744F

1413-1777F

770Freighter
Total

2120-1

Total Fleet

8683-3

Aircraft Type

Passenger
Regional Routes：
In response to delayed A321 deliveries, extending Leaseagreement

737-800 & A330-300
Extend Lease

A321 neo
Receiving x 15 in 2025-2028

Long Haul：
For Developing New Routes and Enhancing the existing one

A350-900
Receiving in 2024

787-9 & 10
Receiving X 24 in 2025-2028

Freighter
Replacement：
Phasing Out 744F, Introducing Next-Generation 777F for
Performance Enhancement

747F
Remaining x 8 In the End of 2024

777F
The Fleet will be 10 in 2024

26

Sustainability Actions and Achievements

Carbon Reduction Target/Strategy
 In response to the global 2050 net zero emissions
target, CAL is the first airline in Taiwan toannounce that its operational activities will reachnet zero emissions by 2050, and has developed
short, medium, and long-term carbon reduction
targets for flight and ground operations as well as
the usage targets of SAF(Sustainable Aviation
Fuel) and ground renewable energy installation
capacity targets.

** This is not the proportion of electricity use. This is an additional target beside the Taiwan nationalpower grid target . China Airlines expects to use 40% renewable energy by 2030 if Taiwan National
Grid target is included.

28

Sustainable Performance & Achievement

7

consecutive years selected for DJSI Emerging Market Index

2016-2022

8

Ranked 1st in Global
Aviation Industry

consecutive years selected for FTSE4Good Index Series

2016-2023

consecutive years

2017-2023

5

Sustainability Yearbook

TOP 1% Highest Honor

consecutive years FTSE4Good TIP Taiwan ESG Index

2018-2019、2021-2023

10

consecutive years Taiwan Corporate Sustainability Award2014-2023

56

7consecutive years Taiwan High Compensation 100 Index

2017-2023

First year Top 10 Taiwan Sustainable Model Corporate
2 Consecutive years Top Sustainability Report award

consecutive years

Global Corporate Sustainability Awards

2019-2023

1

first year

7

consecutive years Taiwan Employment Creation 99 Index

2017-2023

National Sustainable Development Award

2022

The 2023 DJSI will be Announced in December.

1

first year

Annual Enterprises Protection Award

2022

29

Thank you