China Airlines
2023 1st Investor Conference
Jun.13.’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 industrialphenomena.

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 Operating Performance Operating Challenges

 Passenger Market, Performance & Strategies
 Cargo Market, Performance & Strategies

 Fleet Development
 Sustainability Actions and Achievements

3

2023Q1 Operating Performance

2023 Q1 Financial Performance(NTD 100 Million)

2023.Q1

2022.Q1

Differences

YoY

Operating revenue
Passenger revenue

245.4921.85

223.64+1023.52%

Cargo revenue

157.04327.79-170.75-52.09%Other operating revenue

24.39

22.69

1.70

+7.49%Net Operating Income

18.26

36.26

-18.00-49.64%Net Income After Tax

13.97

28.11

-14.14-50.30%Net Income Attributable toOwners of the company

13.06

30.72

-17.66-57.49%Earnings Per Share (TWD)

0.220.52-0.30-Based on consolidated financial report 5

Operating Revenue by Source
 Passenger revenue have exceeded cargo revenue becoming the largest revenue
share representing 55% by 2023Q1.
Monthly revenue
Other Rev

140Pax rev

Cgo rev

120
100
80
60
40
20

0

123Currency：NTD100 million

45672022

891011121232023
Based on individual financial report6Highest Quarterly Operating Revenue since 2022
 The operating revenue in 2023Q1 was the highest since 2022. Mostly contributedby the 1,417% annual growth rate of passenger revenue, the passenger revenue
from all regions increased significantly.
NTD100 million

400

Quarterly revenue

NorthAmerica,+1,458%

380
360
340
320

2023Q1 Passenger revenue distribution
by region (YoY)

2023 Q1,379.55
2022 Q1, 2022 Q2, 2022 Q3, 2022 Q4,359.24
353.47351.69346.31

Europe,+1,837%

North
East Asia,+18,396%
China,+235%

South
East Asia,+1,243%

Oceanic,+1,370%300

Based on individual financial report7

Cost Breakdown and Comparison
0%2023Q1

10%

20%

36%
Fuel

2022Q134%

30%

40%

50%

60%

70%

80%

90%

17%

14%14%

Rental、Depr.
& Amortization

Labor

Maintenance ground

19%

10%

3%

Airport & OTH

handling

18%

100%

14%

9%

Sales &passenger service

4%

Based on individual financial report

8Fuel Cost Analysis
Unit

2023Q12022Q1

YoY

Jet fuel(MOPS)USD/BBL

110.61

94.39

17.2%

Fuel Consumption

10K BBL

354.72352.35

0.7%

Fuel Cost

TWD
100 million

130.29105.14

23.9%

Hedging gain

TWD
100 million

0.13(0.43)-Total fuel cost

TWD
100 million

130.42104.71

24.5%

Based on individual financial report

9Crude Oil and Jet Fuel Price Trends
USD/BBL

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

Operating Challenges

Operating Challenges & Variables
COVID-19 Pandemic
Passenger traffic recovering
Cargo demand softening

Economic Factors
Global economic variables
SEMI/electronics recovers
quarter by quarter
Manufacturing destocking
comes to an end

Supply chain issues

Geopolitics

Delay of aircraft delivery

Russia-Ukraine crisis

Staff shortage of aviation industry

US-China trade war
Cross-Strait Relations

13

Passenger Market,Performance & Strategies

International Passenger Market under Recovery
Global International Passenger Market

Global International Passenger Market recovery forecast

ASK/RPK YOY%(vs the same month in 2019)

千

PLF%

20%

PLF

80%

108%

2000

100%

100%

0%

96%
81%

1500

66%

-20%

ASK

60%

RPK

40%

-40%

-60%

20%

-80%
-100%2019RP(million)

0%

2020

2021

2022

2023

1000

28%

500

26%

02017

2018

2019

2020

2021

2022

2023

2024

2025

Source ： IATA、Oxford Economics 15

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

AfricaAPAC

1200

Middle East

North America

EuropeInternational 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%
94%

200

98%
90%

02017

2018

2019

2020

2021

2022

2023

40%

103%
20%

112%

2%

101%
2024

2025

15%
10%

UpBaseline

202520260%
2026

20172018

2019

2020

2021

2022

2023

2024

Source：IATA Passenger forecast、CAA 16

Taiwan's Travel Demand Recovers Rapidly
Taoyuan International Airport Passenger Volume
2019 - Apr. 2023

Taoyuan International Airport Passenger Volume2022 - Apr. 2023
12/10

(10K)
500

416
(Apr 19)

300

400

274
(Apr 23)2023 Q1

300+2164.2%+2713.7%-45.7%

200
100v.s 22v.s 21v.s 19

2021

100

2022

274

Quarantine period 0+7207 203
Arriving passengers
150K/week
158
Open for transit passenger
Quarantine period 3+4
Arriving passengers 25K/week
104

150JanMarMayJulSep
Nov
JanMarMayJulSep
Nov
JanMarMayJulSep
Nov
JanMarMayJul
SepNov
JanMar
2020

245

6/15

20050

2019

10/13

2500-100

Arriving passengers limit canceled

910101113203648

4867

0Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr

2023

2022

2023

2019

2020

2021

2022

2023E

Passenger Volume(million)

48.69

7.44

0.91

5.34

28.00 萬Revovery level（vs 2019）

100%

15.3%

1.9％

11%

58%

Source：Taoyaun Airport official site 172023 Q1 Passenger Operational Results
Passenger revenue distribution by region

Passenger
revenue(NT $billion )Revenuepassenger(‘000)

Available
Seat Kilometer(ASK)(billion)

2023Q12022Q4QoQ

2022Q1
YoY

21.10+84.7%+1,417.0%

1,887（by Sector）
35%
30%
25%
20%

+106.3%+2,784.1%

15%
10%

9.49

+32.1%+500.8%

5%
0%

Averageload factor(%)

Passenger yield
(NT$)

74.0

3.00

+19.2ppt

+3.5%

North
East
Asia

North
America

South
East
Asia

EuropeOceanic

China

Hong
Kong

2023Q1

26%

24%

20%

12%

10%

5%

3%

2022Q4

16%

30%

22%

15%

12%

4%

1%

2022Q1

2%

24%

23%

9%

11%

24%2%+57.9ppt-45.3%

Based on individual financial report
SOURCE：本公司整理18

Capacity Reached 70% of pre-COVID19
Long-Haul

S.E. Asia

Flights: 90~95%

Flights: 75%（PAX revenue：125%~153%）

China &Hong Kong

（PAX revenue：90%）

Up to 80% at theend of year 2023

Increased gradually according
to governments’ policy

Japan、Korea

Resume 13 routes / 1,000 flights ofOriginal 17 routes / 1,600 flights(TSA-GMP, TSA-HND fully restored)※ 2023Q1 vs.. 2019Q1

19

2023Q2 Capacity Growing (verses 2023Q1)
Trips

Y2023

ASKs（million）

RouteQ1Q2＋／－Q1Q2＋／－N. America

800

926

16%

2,898

3,394

17%

S.E. Asia

3,467

3,870

12%

2,263

2,421

7%

Europe491

576

17%

1,497

1,752

17%

N.E. Asia

2,896

3,512

21%

1,452

1,738

20%

Oceania

578

526

-9%

1,082

955-12%

China

692

1,458

111%

163

339

108%

Hong Kong

703

1,17467%

134

227

70%

TOTAL

9,629

12,042

25%

9,492

10,825

14%*Capacity of 2023Q2 in Oceania decreased due to low season.

20

New Routes：TPE-CNX、DAD、CEB、PRG

TPE-PRG v.v.
From 2023-07-18
2 FPW

TPE-CNX v.v.
From 2023-01-20
4 FPW
TPE-DAD v.v.
From 2023-01-04
Daily (from 2023-06-22)
TPE-CEB v.v.
From 2022-12-01
5 FPW
FPW: flight per week21

「KHH」Operations ( 9routes，1,190 flights restored)首爾（ ）大阪 （ ）東京
（ ）

上海（ ）
1,400

81,200廈門深圳 （ ）
（ ）
（ ）高雄
（ ）
香港

1,000

910

1,190

8784

800
600

32

36+52%

400

2200

78

38

72

Q1

Q2

Q3

Q4

Q1

Q2

2022

2022

2022

20222023

2023

158

20

曼谷（ ）

馬尼拉（ ）

4022

A321 neo Cabin: Modernized & NaturalLuxury Business Cabin

Personal 4K HD Screens"Fu Dia" to bless passengers a pleasant journey

Multi-Layer Pockets for user’s convenience

New Chairs with more Space & Comfort

Persimmon wood & unique decorations
SOURCE：本公司整理23

Enriched Cabin Services

Fantasy Sky
100+ Movie+TV+Music

Dynasty Sky Reading
100+ book, magazine,& newspapers,
in various languages

Clean & Green
Plant-based Cuisine
by “Yang Ming Spring”

Exclusive Bedding forPremium Business Class

Skyward 3-Stars
Private Cuisine for all cabinsby “Le Palais”, the only 3-starMichelin restaurant in TaiwanSignature Desserts madewith seasonal ingredients
produced in Taiwan
by “Le Ruban Pâtisserie”

SkyLounge with“Natural Style” Japanese Cuisine“Taiwan Wonderful Food”
for Premium Business/Business Classby famous restaurant “TOUTOUAN” in Tokyo
24

Passenger Operation Strategy
Steady Development
 Take advantage of Taiwan’s
geographic position as a transit hub.
 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 appfunction
 Digitalize Corporate Card Service (CFS) Enhance product value by crossindustry collaboration.
25

Cargo Market,Performance & Strategies

2023 Q1 Cargo operational results
Cargo revenue distribution by region
2023Q12022Q1YoY

2019Q1YoY

Cargo revenue

15.61-52.2%+55.1%

Carried tonnes(‘000)

184-26.0%+1.7%(NT $billion )Available
Freight
Ton Kilometer(AFTK)(billion)

1.95-12.8%+6.6%

Averageload factor

68.3-9.9ppt+2.7ppt(%)

Cargo yield
(NT$)

11.76

-37.3%+39.7%

Oceanic
4%
North East Asia
6%

Hong Kong
4%

China, 7%North
America, 50%
South East
Asia, 13%

Europe, 16%

Based on individual financial report
SOURCE：本公司整理27

2022 China Airlines Cargo Performance and Market Share For Taiwan import/export/transfer cargo in 2022, China Airlines carried nearly 740
thousand tons with market share of 42%, ranking NO. 1 among all airlines.
 In terms of Taiwan export volume, China Airlines carried 196 thousand tons in 2022, withmarket share of 35.7%, which was also in a leading position, same in the first four monthsof 2023 further elevated to 36.2%.

TWN Export Market Share _ CI

share(excluded Express)

40%
35%
30%

2022：35.7%

2021：34%25%
12 3456782023/1-4：36.2%

2022/1-4：35.0%
9 10 11 12 1

2021
Source：Taiwan CAA

2345672022

8

9 10 11 12 1234202328

2023 Global Market Outlook
 2023 H1：Forecast the global demand decrease while supply increase.
 2023 H2：With the continuous reduction and adjustment of inventory in the industrial supply
chain, and the forecasts of related industries, the demand for air cargo is expected to stabilize .

Growth Rate(YOY)

Load Factor(%)

International Air Cargo Market

20%80%10%60%0%-10%

Global GDP Forecast

2023 03 Forecast
2022 12 Forecast
2022 01 Forecast
2010-19 Avg of GDP

40%

-20%

20%-30%-40%0%

2019

2020

2021
FRTK
CTK

2022
FATK
ATK

2023

Load Factor
LF

Source：IATA、 Boeing (S&P Global dated March 2023)

29

Cargo Operation Strategy
Optimize Network and Strengthen Revenue Management

 Introduce 777F new freighter

 Focus on industrial supply chain reconstruction and optimize cargo network
 Strive for medium/ long-term customized services /chartered flights
 Strive for high-yield sources of goods, e.g., semiconductor, cool chain products, etc.
 Cooperate with integrators and other interlines to expand CI network30

Fleet Development

Operating Fleet
Aircraft TypeMarch 2023

Year end

2023

Diff.

777-300ER

1010

A350-900

1414

A330-300

2019-1

737-800

1210-2A321neo

1010

Passenger total

66

63-3

744F

1713-4777F

57+2Freighter total

2220-2

Recent Plan
Exercise of option to purchaseTotal size of 787 fleet: 24
Support regional routes & expand long-haul routes
Improve long-haul operational efficiency

Plan to sell 5 747-400F this year.
Replace the old with the new to optimize
operational efficiency

Extend lease on 737-800
Maintain stability of regional flight schedules

Considering leasing more long-haulaircraft
Supplement long-haul capacity
Meet the demand during the recovery period

Total Fleet

8883-532

Sustainability Actions and Achievements

Carbon Emission Policy/Carbon Reduction Strategy
 On 2021/10/26 CAL has pledged to achieve net zero emissions on
both flight and ground operations by 2050, in order to achieve theglobal net zero carbon emissions target by 2050. Short, medium, andlong-term goals have been established for carbon reduction and theuse of SAF(Sustainable Aviation Fuel) .

34

Sustainable Performance & Achievement
7

consecutive years
2016-2022

7

consecutive years

selected for DJSI Emerging Markets Index
Ranked 1st in Global
Aviation Industry

consecutive years
2014-2022

4

consecutive years
2019-2022

4
6

Taiwan Corporate Sustainability Award
Top Sustainability
Report award

Global Corporate Sustainability Awards

consecutive years

Sustainability Yearbook

2017-2022

selected for FTSE4Good Index Series

2016-2022

966

consecutive years

FTSE4Good TIP Taiwan ESG Index

2018-2019、2021-2022

consecutive years
2017-2022

Taiwan High Compensation 100 Index

consecutive years

Taiwan Employment Creation 99 Index

2017-2022

12022

National Sustainable Development Award

35

Thank you