2019 Investor Conference

. Political & Economic Outlook Breixt • According to NATs research, the willingness of travel is not impacted among most people in the UK. • TW's investment amount in the UK takes the 1st place among EU, achieves 42.3%. The unstable GBP currency and social issues will be impact for TW investment. . Influence to TW market alert moderate mild Japan-South Korea trade dispute • The dispute is not ending temporarily. It impacts global supply chain, especially high-tech industry. • TIER indicates the limited gain from relocations. • According to Korean media JTBC, air ticket sales dropped 38% in JP market and rose 38% in TW market. US-China trade war Air freight goes weak due to long-term effect of trade war ⚫ IHS Markit indicates TW GDP would decrease 0.03- 0.04% if US & China GDP declined 0.1% respectively. • TW exports to PRC will reduce 1.78% & to US will rise 2.16% if US imposes 10-25% tariff to PRC & PRC imposes 5-25% tariff to US. CHINA AIRLINES 2020 Tokyo Olympics • The Olympics triggers prosperous tourism market. TW president election • Entry Permit of PRC may open issuing after 520. Market demand rises due to CNY & election. Geopolitics ⚫ Political issues in EU, Middle East, HK and terrorisms, racial conflicts etc. often directly affect aviation industry. Source: MOEA IATA TIER CIER TTB 18

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