China Airlines
2022 2nd Investor Conference
Dec.09.’22

Safe Harbor Notice

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
 2022Q1-Q3 Operating Performance
1. Operating results

3. Financial risk management

2. Revenue & Cost breakdown Operation Overview & Market Outlook
1. Pax & Cargo performance

4. Fleet planning

2. Business outlook

5. Sustainable development

3. Pax & Cargo strategies32022Q1-Q3 Operating Results

2022 Q1-Q3 Financial Results
2021Q1-Q3

2022 Q1-Q3

Differences

Passenger revenue

45.69

122.8177.12+168.79%

Cargo revenue

813.10928.08114.98+14.14%

Other operating revenue

57.96

66.94

8.98

+15.49%Net Operating Income

47.22

42.49

-4.73

-10.02%Net Income After Tax

10.98

31.42

20.44+186.16%

Net Income Attributable toOwners of the company

15.55

36.18

20.63

+132.67%

Earnings Per Share (TWD)

0.28

0.60

0.32

-(NTD 100 Million)

YoY

Operating revenue

Based on consolidated financial report 5

Revenue breakdown and comparison
 By 2022Q3, Cargo revenue is still the main part of operating revenue (80%), while theproportion of passenger revenue has increased to 20%.
 Compared with last year, the revenue of 2022Q3 is lower than that of 2021Q4, 6% higher than
2021Q3 and 2% higher than 2022Q2.
NTD 100 Million

CGO Rev

Monthly revenue

PAX Rev180160140120
100806040200

NTD 100 Million

Other Operating Rev

Quarterly revenue

500
400454300
200261276

331353346352100-1234567892022

Based on individual financial report6Cost breakdown and comparison
0%

10%

30%

40%

40%

2022 Q1-Q3

Fuel2021 Q1-Q3

20%

28%

50%

60%

18%
Rental、Depr.
& Amortization

22%

70%

14%

Labor

16%

80%

90%

14%

9%

3%

Airport &OTH

handling

Sales &passenger service

Maintenance ground

17%

11%

100%

4%

Based on individual financial report7Fuel cost analysis
Unit

2021 Q1-Q3

2022 Q1-Q3

YoYJet fuel(MOPS)USD/BBL

70.75

129.7983.45%

Fuel Consumption

10K BBL

1,059.95

1,004.17-5.26%

Fuel Cost

TWD
100 million

223.27395.3077.05%

Hedging gain

TWD
100 million(0.02)(1.12)-Total fuel cost

TWD
100 million

223.25394.1876.56%

Based on individual financial report8

Stable financial structure
Debt ratio

Current ratio
200%

79.48%

80%

161.25%78.64%

74.53%
73.81% 73.91%

150%
106.30%73.80%

98.8%
100%
70%

78.6%

86.7%
67.9%

50%

60%

0%
20172018

2019

2020

2021 2022Q3

20172018201920202021 2022Q3

Based on consolidated financial report9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 influences made by currency fluctuation.
 Interest rates：Issue fixed-rate corporate bonds and tradederivative product such as IRS to reduce the risk of rates
rising in the future.

10Operation Overview&Market Outlook

2022Q1-Q3 Passenger operational results
Currency: TWDPassenger revenue

9.06billion
YoY(+ 251.3 %)Revenue passenger

588 ’000(+327.5 %)Available seat kilometer(ASK)

7.69(+172.0%)
billion

Passenger revenue distribution by region
North East
Asia, 6%
Oceanic, 8%

Average load factor

34.4 %

Hong Kong,2%North
America, 31%

China, 11%(+16.83 ppt)
Pax yield$ 3.42(-$1.77)

Europe, 19%South East
Asia, 24%
Based on individual financial report 12Passenger operating performance Taiwan reopened for transit passenger starting from June 15, 2022, and adopted
7-day self-initiated prevention policy for arrivals from October 13, 2022.
 The number of passenger has been increasing significantly since June.

Based on individual financial report 13

2022Q1-Q3 Cargo operational results
Cargo revenue distribution by region
Currency: TWD

Cargo revenue

92.51billion

Available FreightTon Kilometer(AFTK)

6.24 billion(-14.8 %)Oceanic Hong Kong
3%1%
North East Asia
6%
China, 6%

YoY(+ 14.1 %) Average load factor

Carried tonnes

77.8 %

715 ’000(+ 2.4 ppt)
Cargo yield(- 7.7 %)$ 19.04

Europe, 11%NorthAmerica, 57%

South EastAsia, 15%(+$ 4.37)Based on individual financial report 14

Cargo operating performance Affected by the overall economic environment, the demand of freight market is getting weak gradually.
 From January to October 2022, the average Load factor has maintained 78%, and the yield of Q3 has slowed
down. Compared with the same period of last year, it is relatively stable.
 From January to October 2022, the accumulated cargo revenue has exceeded NT$10 billion.

Based on individual financial report15

Air passenger recovery continues

Source: IATA16

Recovery continues as passenger demand remains strong
Taoyuan International Airport

Passenger Volume

million/person

Arrival/Departure/Transit

13.5

vs 2019 levels

1210.5
97.5
64.5
3
1.5
0-1.5

2019
Q1

2019
Q22019Q3

2019
Q4201948.68 million

2020
Q12020Q22020
Q3

2020
Q42021
Q12021
Q2

2020
7.43 million

2021
Q32021
Q42022
Q12022
Q22022
Q3

 06/15 3+4 quarantine／weekly cap of arrivals 25,000
 07/07 weekly cap of arrivals increased to 40,000 08/15～0822
remove requirement that inbound passengers should provide
COVID-19 PCR test result ／weekly cap of arrivals increased
to 50,000
 09/12
reinstate visa-exempt entry for US, Canada, New Zealand,
Australia, countries in Europe, and diplomatic allies 09/29 weekly cap of arrivals increased to 60,000 10/13
lifted the quarantine requirement for all arrivals 0+7／weekly
cap of arrivals 150,000 12/01 weekly cap of arrivals increased to 200,000 12/10 remove weekly arrival cap

2021
0.9 million

2022E

2023F

4.0～4.5 million

20～30 million：

SOURCE Taoyuan International Airport17Air cargo tracks near pre-COVID levelsInternational CTKs
September 2022

International air cargo﹙YoY% change versus 2018﹚ ﹙YoY% change versus 2019﹚
ACTK/CTK20%(% ch vs the same month in 2019)
CLF

CTK

20%

10%

60%-10%-20%

AfricaLatinMiddle
NorthEurope America
East
America Industry

17.8%

80%

CLF

0%

Asia
Pacific

100%

40%

ACTK

12.3%
10%

0%

-30%-40%-10%-50%
2019

-1.8%

20%
0%
2020

2021

2022

-4.6%

-7.0%

-3.7%

-13.1%-20%

Source: IATA

18Operating challenges
Sustainable development
Economic Factors
Inflation, Interest Rates, and Exchange Rates
Oil prices extremely highGeopolitics
Airspaces closure
Russia-Ukraine crisis

GDP／Manufacturing PMI index

Service Disruptions
Coronavirus variant

Supply chain issues
US-China chip war

Unforeseen circumstances
Staff shortage

SOURCE：本公司整理19

Operation strategy
PassengerCargo Introduce new A321neo aircraft Introduce 777F new freighter Develop potential routes in Southeast Asia Cultivate the market, develop potential

ex: CEB, CNX, DAD,
 Increase flights between Southeast Asia andgoods and grasp industrial changes
 Fully plan cargo capacity and network, andEurope / US to target the transit passenger

strengthen Taiwan's position as aand encourage effective networktransshipment hub Deepen the member loyalty
 Provide customized charter flights/services

 Strive for chartered flights and medium/long-term customized services

20

The next generation fleets ready for post-pandemic boom
Year EndYear End

2022

2023

777-300ER

1010

A350-900

1414

A330-30020

19

737-800

1210

A321neo10

12Passenger Jets

66

65

747-400F

17

16

777F

5

7Freighters

22

23

In-Service Fleet

88

88

Aircraft Type

Boeing 787-9 x16
Entry Into Service

2024

2026

2025
Boeing 777F x10Airbus A321neo x 25

21

Sustainability performance and recognition
 The only Taiwanese airline selected for DJSI Emerging Markets for six consecutive years and ranked in 2ndplace among the world's airlines.
 The only Taiwanese airline selected for Sustainability Yearbook for five consecutive years and awarded“Silver Class” in 2021.
 Set the goal of sustainable aviation fuel and net zero carbon emissions

Sustainability Yearbook
5 Consecutive Years
2017 - 2021

GCSA Award
4 Consecutive Years2019 – 2022

TCSA Award
9 Consecutive Years2014 – 2022

Dow Jones Sustainability Indices6 Consecutive Years2016 - 2021

FTSE4Good Index Series
7 Consecutive Years
2016 - 2022

FTSE4Good TIP
Taiwan ESG Index
4 Consecutive Years2018 – 2022

Taiwan HC 100/Taiwan EMP 99
6 Consecutive Years
2017 – 2022

22

Thank you