China Airlines

2022 1st Investor Conference
Jun.10.’22

2022年3月22日

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 Operating Performance
1. Operating results

3. Financial risk management

2. Revenue & Cost breakdown

4. Pax & Cargo performance Market Outlook
1. Business outlook

3. Fleet planning

2. Pax & Cargo strategies

4. Sustainable development3

2022Q1 Operating Results

2022Q1 Financial Results(NTD 100 Million)

2021.Q1

2022.Q1

Differences

YoY

278.28372.3394.05

33.80%

Passenger revenue

19.75

21.85

2.1

10.63%

Cargo revenue

240.25327.7987.54

36.44%

Other operating revenue

18.28

22.69

4.41

24.12%Net Operating Income(Loss)

-4.69

36.36

41.05

-Net Income(Loss) After Tax-12.17

28.11

40.28

-Net Income(Loss) Attributable to
Owners of the company-10.19

30.72

40.91

-Earnings(Loss) Per Share (TWD)

-0.19

0.52

0.71

-

Operating revenue

Based on consolidated financial report 5

Enhancing financial structure ratios
Debt ratio

Current ratio
200%

78.97%

80%

161.71% 155.53%

77.94%

150%
73.09%

73.44%

72.64%

70.30%

70%

91.40%

100%
69.06%

77.81%
60.28%

50%

60%

0%
2017

2018

2019

2020

2021 2022Q1

2017

2018

2019

2020

2021 2022Q1

Based on individual financial report6Revenue breakdown and comparison
 In 2022Q1, over 90% of income is contributed by cargo revenue is the major
income during the pandemic period.
 Compared with the quarters of the last year, 2022Q1 total operating revenue islower than the final quarter but higher than the first 3 quarters.
Monthly revenue

Other operating rev.

500

PAX rev.

150

CGO rev.

NTD 100 million

Quarterly revenue

400

100

300

50

200

0
12345672021

89101112

1

2

3

2022

4100

2021
2021
Q2,Q1,276.20
261.132021
Q3,330.542021
Q4,453.542022
Q1,353.47

0

Based on individual financial report

7Cost breakdown and comparison
0%2022Q1

10%

20%

34%
Fuel

2021FY

29%

30%

40%

50%

19%
Rental、Depr.
& Amortization

20%

60%

18%
Labor

70%

80%

90%

14%

9%

4%

Airport &Maintenance ground OTH
Sales &handling

18%

100%

17%

10%

passenger service

4%

Based on individual financial report8Fuel cost analysis
Unit

2021Q12022Q1

YoY

Jet fuel(MOPS)USD/BBL

63.44

112.7477.72%

Fuel Consumption

10K BBL

343.75352.35

2.50%

Fuel Cost

TWD
100 million

65.52

105.1460.47%

Hedging
gain/loss

TWD
100 million

0(0.43)-Total fuel cost

TWD
100 million

65.52

104.7159.81%

9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2022Q1 Passenger performance
Currency: TWD

Passenger revenue

1.3 billion(YoY+8.1%)

Revenue passenger

60.5 ’000(-12.8%)

Available seat kilometer(ASK)

1.58(+17.2%)
billion

Passenger revenue distribution by region
North EastAsia, 2%
Hong Kong,2%Europe, 10%

Average load factor

16.1%(-3.5 ppt)
Pax yield$5.48

China, 26%

Oceanic, 11%South East
Asia, 24%

North
America, 25%(-$0.25)
Based on individual financial report 11

2022Q1 Cargo performance
Cargo revenue distribution by region
Currency: TWD

Cargo revenue

32.7 billion(YoY+36.5%)

Carried tonnes

240.9 ’000(-2.8%)

Available FreightTon Kilometer(AFTK)

2.23(-4.2%)
billionAverage load factor

78.2%(+2.7 ppt)

Cargo yield$18.74

Oceanic
4%
North East Asia
5%

Hong Kong
3%

China, 6%

Europe, 9%North
America, 60%

South EastAsia, 13%(+$5.2)

Based on individual financial report 12

Market Outlook

Overall business environment
 Pax market：following by the border restriction ease, international RPK has recovered to 50% compared withpre-covid level.
 Cargo market：cargo capacity is still below 2019 level due to the Omicron outbreak leading to lockdown inChina and the Ukraine-Russia conflict threat further weaken global supply chains, making, growth trend turned
negative in March for the first time for the past year.
% ch vs the samemonth in 201920%

Load factor

International Pax market trend change% with 20190%

Loadfactor(RHS)

-20%

100%
80%

ASK(LHS)

-80%
-100%

2020

-10%

40%

-20%

0%

2021

2022

100%

FTK(LHS)

10%

60%

20%

RPK(LHS)International Cargo market trend change% with 2019

20%

80%

Loadfactor(R)

0%

-40%
-60%

% ch vs the samemonth in 201960%

CTK(LHS)

40%

-30%
20%

-40%
-50%

2020

0%

2021

2022

資料來源： IATA Economics 14Re-opening border is boosting pax market recovery
 US & EU have started re-opening of borders, which

stimulates pax demand; however, some Asia Pacific
key markets remain closed which may slow down
recoveryandkeep

themfrominternational

120%

North
America, 2023

110%

100%

Europe,2024

Asia Pacific2025

2019 level

97%

MiddleEast, 2025

90%

connectivity.
World restriction level

84%

80%
70%

68%

60%
50%
40%
No

Yes

40%

30%
2021

2022

2023

2024

2025

Source： IATA Economics

15

TPE airport pax volume is bottomed out
TPE airport international trend

2022 5137,896

Taiwan entry policies
 Open borders to foreignbusiness travelers,Reopened Countries

foreign student spouses
and minors, Southeast
workers to Taiwan.
 Replace on-arrival PCR

2020 434,618

test with saliva test.
4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 52020

2021

2022

 Reopening by different
steps.
Source： TPE airport statistics16

China lockdown and Ukraine-Russia conflict weaken global supply
chain strain, but air rate is still in historical highAsia pacific supply and demand(change% with 2019)

USD/kg2022/2021 average air rete$6

 Demand decreased in Mar.2022
 Air cargo growth starts to slowdown
15%

2022

$5

 West coast workers negotiation

10%

$4

5% 2019 level
0%

2021

$3-5%

-5.4%

-10%

$2

-15%

-16.0%-20%

Capacity shortage

-25%

$1

-30%
JanMarMayJul
2021

Sep

Nov

JanMar
2022

$0
W1

W5

W10

Sources： IATA、Freightos

W15

W20

17

Taiwan is one of major air cargo transit demand markets in Asia
Pacific
60%

TPE airport cargo volume growth % with201950%
40%
30%

Taiwan20%
10%2019 level0%-10%-20%
1472020101472021

10142022

資料來源：桃機公司、Seabury、本公司整理 18

Business planning & strategies
Well-prepared forreopening PAX market

High efficiency freight
introduction and stable cargo
income Increase customer preference by Deploying the 777F, through operational

 Expand route network, according to Strengthen handling for pharmaceutical

deploying the A321neo on regional routes
recovery in demand Integration of passenger and freighter

capacity along with continued
optimization of schedules and connections

 Respond timely to the market demand Minimize loss of operation by stabilizing
operation and seek out new market

efficiency to improve profitability

cold-chain logistics, secure business
opportunities

 Take advantage of the cargo fleet toprovide differentiated services

 Flexible operations responding to themarket volatility, provide reliable andcustomized services

 Increase profit through the utilization of

belly cargo space and freighter business
19

Fleet planning
Fleet type2022.052022.12777-300ER

1010

A350-900

1414

A330-300

2221

737-800

1212

A321neo

610Total pax aircraft6467

747-400F

1818

777F

45

introduction*1Total freighter aircraft2223

Net increase 1
FTR aircraft

Total operating aircraft

8690

Wide body

NarrowbodyFreighters

RemarkPhase out*1
introduction*4
Net increase 3
pax aircraft20

Launch environmentally friendly flight China Airlines participated in “The Sustainable Flight Challenge”(TSFC) issued by SkyTeam on 5/4, selecting flight CI-753 fromTaipei to Singapore as the sustainability demonstration flight.

 With ECO as the core concept, we take care of every details
including flight plan based on fuel saving, ground handling,
online check-in and meal on board, doing our best to set up
sustainable flying environment as an industrial milestone.

Operation
Improvements

Advanced
Maintenance &OperationReduce
Weight ofAircraft
Renew Fleet

Four Fuel-Saving Strategies
21

Sustainability award & performance The only Taiwanese airline selected as a component of DJSI Emerging Markets for six consecutiveyears.

 Ranking 2nd place in the global aviation industry.
2014 - 2021

2016 - 2021

Included in theDJSI Emerging
Markets

2012 - 2022

2019 - 2021

Won the Taiwan Corporate
Sustainability Award

6 consecutiveyears

11 consecutive years

3 consecutive years

8 consecutive years

6 consecutiveyears
2016 - 2021

Included in theFTSE4Good
Emerging Index

Won the Global Corporate
Sustainability Award

Pioneer in Environmental
Protection
Achieved great CDP score onclimate change

8 consecutiveyears

5 consecutive years

Excellent Corporate
Governance

Establish Happy Workplace

2014 - 2022

Top 6%-20% TWSE/TPEx listedcompanies in the eighth
corporate governancereview2017 - 2021
Taiwan High Compensation 100
Index (HC 100)
Taiwan Employment Creation 99
Index (EMP 99)

22Thank you