2015 CITICS Annual Results Presentation

March 24th, 2016

Table of Contents：

1. Overview of Chinese Capital Market

2. Company Financial Review 2015

3. Company Business Review 2015

4. Company Business Outlook 2016

1. Overview of Chinese Capital Market

Overview of Chinese Capital Market in 2015

China’s Capital Market Indices

Capital Raised in the Equity Market

Average Daily Turnover in the Equity Market 1

3

4

2

Capital Raised in the Bond Market 4

921.5

1,654.9

0

500

1,000

1,500

2,000

2014 2015

+80% y-o-y

6.8

12.5

0

5

10

15

2014 2015

+83% y-o-y

Bond Index

China Bond Wealth Index +8% 0

500

1,000

1,500

2,000

1月

2月

3月

4月

5月

6月

7月

8月

9月

10月

11月

12月

1月

2月

3月

4月

5月

6月

7月

8月

9月

10月

11月

12月

RMB Bn

RMB Bn RMB Tn

Indices 1H15 3Q15 4Q15 2015 FY

Shanghai

Composite Index32% -29% 16% 9%

GEM Index 94% -27% 30% 84%

Source：Wind, internal data provided by CITICS ECM and DCM

309.8bn - 2014 average

1076.5bn - 2015 average

Overview of Chinese Capital Market in 2015

AUM of Securities Industry

Stock Repo Balance

Margin Financing & Securities Lending Balance 1

4

5

2

Pledge Repo Balance（incl. asset management) 3

7,970.0

11,852.5

0

5,000

10,000

15,000

2014 End 2015 End

+49% y-o-y

337.5

708.7

0

200

400

600

800

2014 End 2015 End

+110% y-o-y

10.8

5.2

0

5

10

15

2014 End 2015 End

-52% y-o-y

1,025.7 1,177.5

0

500

1,000

1,500

2014 End 2015 End

+15% y-o-y

RMB Bn RMB Bn

RMB Bn RMB Bn

Source：Wind

Assets Overview: Client assets reflected market volatility

Source: SAC Note： “ Leverage-adjusted ” refers to total liabilities excluding client assets. “Leverage-total” refers to total liabilities including client assets. 6

Total Assets Total Liabilities 1 2

1.1 1.6 2.9

4.9 4.4 0.6 0.5 1.2

3.4 2.1

0

2

4

6

8

10

2012 End 2013 End 2014 End 2015 Jun End 2015 End

Own assets Client assets

0.6 1.0 2.0 3.6 2.9 0.6

0.5 1.2

3.4

2.1

0

2

4

6

8

10

2012 End 2013 End 2014 End 2015 Jun End 2015 End

Own liabilities Client assets

4.1

8.3 7.0

1.2

6.5 5.0

2.1 1.7 3.2 1.5

Net Assets 3 Leverage Ratio 4

0.5 0.5 0.9

1.3 1.5

0

1

2

2012 End 2013 End 2014 End 2015 Jun End 2015 End

1.6 2.1

3.2 3.7 3.0

2.5 2.8 4.4 6.4

4.4

0

5

10

2012 End 2013 End 2014 End 2015 JunEnd

2015 End

Leverage-adjusted Leverage-total

RMB Tn RMB Tn

RMB Tn Multiples

Note

Profitability Overview: Revenue and net profit both historical high

Total Revenue

ROE

Net Profit 1

3

7

2

Net Profit Margin 4

283.6

129.5 159.2 260.1

575.2

0100200300400500600

2007 2012 2013 2014 2015

132.7

32.9 44.0 96.5

244.8

0

100

200

300

2007 2012 2013 2014 2015

60.0%

4.9% 6.1% 11.8% 19.9%

0%

20%

40%

60%

80%

2007 2012 2013 2014 2015

47%

25% 28% 37% 43%

0%

20%

40%

60%

80%

100%

2007 2012 2013 2014 2015

RMB Bn RMB Bn

Source: SAC

+121% y-o-y +154% y-o-y

2. Company Financial Review 2015

Key Financial Performance – Total Revenue

Total Revenue

9

According to A-share

report, our revenue in 2015

was RMB 56bn, a 92% y-o-

y increase.

1

20.3

39.5

72.9

16.1

29.2

56.0

0

10

20

30

40

50

60

70

80

2013 2014 2015

H-share reporting A-share reporting

+92% y-o-y

RMB Bn

Source: Company annual report

10

Key Financial Performance – Expense Analysis

Operating Expenses to Revenue Ratio 1

Compensation Expenses to Revenue Ratio 2

According to A-share report,

our operating expenses to

revenue ratio was 36%, a

11% y-o-y drop.

According to A-share report,

our compensation expenses

to revenue ratio was 26%, a

6% y-o-y drop.

67% 63% 64% 50% 47%

36%

0%

50%

100%

2013 2014 2015

H-share reporting A-share reporting

25% 24% 20% 32% 32% 26%

0%

50%

100%

2013 2014 2015

H-share reporting A-share reporting

Source: Company annual report

Key Financial Performance – Net profit attributable to the parent

Net Profit Attributable to the Parent

11

Our net profit to the parent

in 2015 was RMB 19.8bn, a

75% y-o-y increase.

1

5.2

11.3

19.8

0

10

20

30

2013 2014 2015

+75% y-o-y

RMB Bn

Source: Company annual report

34.8 44.3

89.4

0

20

40

60

80

100

2013 End 2014 End 2015 End

87.7 99.1

139.1

0

40

80

120

160

2013 End 2014 End 2015 End

12

Net Assets

Net Capital (Parent Company )

Key Financial Performance – Capital Strength

Our net assets was RMB

139.1bn as of 2015 end,

increasing by 40bn compared

with 2014 end, mainly

attributable to 21.1bn H-share

follow-on and net profit of

19.8bn.

Our net capital of parent

company was RMB 89.4bn,

doubled from 2014 end, mainly

due to H-share follow-on and net

profit.

+40%

+102%

1

2

RMB Bn

RMB Bn

Source: Company annual report

Key Financial Performance — Leverage and ROE

13

Leverage Ratio

ROE

Flow-based businesses fully

took the measurable risk into

consideration. Our leverage was

3.3x as of 2015 end, a modest

level.

Our profitability ratio improved

and ROE increased to 16.6%.

3.0

4.7 4.3

2.5

3.7 3.3

0

1

2

3

4

5

2013 End 2014 End 2015 End

Leverage-total Leverage-adjusted

6.0%

12.2% 16.6%

0%

5%

10%

15%

2013 2014 2015

1

2

Multiples

Source: Company Annual Report Note： “ Leverage-adjusted ” refers to total liabilities excluding client assets. “Leverage-total” refers to total liabilities including client assets.

Note

3. Company Business Review 2015

15

Company Business Review 2015

3

1 Businesses maintained the leading position in the industry

2 More balanced revenue mix

Financing capabilities substantially strengthened

Progress of our international expansion 4

5 Robust risk management mechanism withstood market turmoil

495.9

921.5

1,654.9

0

500

1,000

1,500

2,000

2013 2014 2015

China-related M&A Deals

1. Investment banking：Underwriting market share maintained the leading position

Ranked No.1 in Equity Underwriting Ranked No.1 in Bond Underwriting

Rank Underwriter Market share

1 CITICS 10.7%

2 Guotai Junan 8.5%

3 Haitong 8.4%

4 Huatai 7.3%

5 China Sec. 5.3%

Market Equity Underwriting

Amount

Market Bond Underwriting

Amount

Market Overview 1 2 3

5

16

RMB Bn

Rank Underwriter Market share

1 CITICS 3.4%

2 China Sec. 3.0%

3 Guotai Junan 1.8%

4 CMS 1.7%

5 CICC 1.1%

+80%

Transaction

Amount

(USD Bn) Rank No. of deals

CITICS 70.0 3rd globally

2nd in China 58

4.0

6.8

12.5

0

5

10

15

2013 2014 2015

Ranked No.1 in Cash Equity Underwriting

Rank Underwriter Market share

1 CITICS 11.3%

2 Guotai Junan 7.8%

3 Haitong 5.8%

4 Huatai 4.8%

5 China Sec. 4.5%

4

RMB Tn

Source: Bloomberg. CITICS ECM and DCM monthly report.

+83%

1. Brokerage：Transforming to wealth management

Higher Market Share, Trading Turnover Brokerage Commissions Doubled（incl. CLSA) Market Overview 1 3 2

17

6.18% 6.46% 6.43%

0%

2%

4%

6%

8%

10%

2013 2014 2015

8.8

18.4

0

5

10

15

20

2014 2015

8.0 6.9

5.1

0

5

10

2013 2014 2015

-26%

+247%

200.2 309.8

1,076.5

0

500

1,000

1,500

2013 2014 2015

Ranking 2nd in the industry +108%

Steadily Increasing QFIIs CSI Brokerage Market Share 4 5

135 139

0

50

100

150

2014 2015

Market Average Daily Turnover

RMB Bn

Average Commission Rate in

the Market

bps

RMB Bn

(No.of clients)

Source: SH&SZ exchanges. Wind Info.

2014 2015

Rank 48th 44th

33.1

78.0

133.0

0

50

100

150

200

2013 End 2014 End 2015 End

333.0 458.4

864.4

0

200

400

600

800

1,000

2013 End 2014 End 2015 End

504.1

755.0

1,071.0

0

200

400

600

800

1,000

1,200

2013 End 2014 End 2015 End

1.Asset management：AUM increased

CITICS AUM

China AMC AUM

CITICS CAM AUM Market Overview 1 2 3

4

18

+42% +70% +49%

+26% +89%

5.2

8.0

11.9

02468

101214

2013 End 2014 End 2015 End

4.2

6.7 8.4

0

2

4

6

8

10

2013 End 2014 End 2015 End

Total AUM

RMB Tn

Fund Industry AUM

RMB Tn

RMB Bn RMB Bn

RMB Bn

Source: SAC. Wind Info.

346.5

1,025.7 1,177.5

0

500

1,000

1,500

2013 End 2014 End 2015 End

1.Margin finance：Steady growth with risk-return balance

Industry Balance

Company Balance Grew at a Slower pace than the Industry

Ranking 1st among Peers 1 3

2

19

+15%

Rank Brokers Balance as

of 2015 End（RMB Bn）

Market

share

1 CITICS 74.0 6.28%

2 Huatai 72.3 6.14%

3 Guotai

Junan 69.1 5.87%

4 Guangfa 66.9 5.68%

5 Galaxy 66.1 5.61%

Total 1177.5 100%

RMB Bn

+3%

33.4

72.1 74.0

0

50

100

150

2013 End 2014 End 2015 End

RMB Bn

Source: SAC. Wind Info.

36% 40%

64% 60%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2014 2015

Fee-basedBusiness

Capital-basedBusiness

2. More balanced revenue mix

20

Company Revenue Composition

+114%

+79%

10.5 22.5

0

20

40

60

2014 2015

18.7 33.5

0

20

40

60

2014 2015

1

Source: Internal.

RMB Bn

RMB Bn

3. Financing capabilities substantially strengthened

21

Repo 29%

Transfer of the right of return

20%

Others 8%

Gold Leasing

12%

Corporate Bond 12%

Subordinated Bond 11%

Short-term Corporate Bond

3%

Structured Notes 5%

Balanced Financing Activities 1 External Credit Line Expanded 2

+64%

Key Regulatory Ratios Improved (Parent Company) 3

19.9% 33.4%

0%

20%

40%

60%

2014 2015

Net Capital/Liabilities

35.2% 43.4%

0%

20%

40%

60%

2014 2015

Net Assets/Liabilities

Source: Internal

0

50

100

150

200

250

300

350

400

450

2013 2014 2015

Others

Mid-sizedCommercialBanks

Policy Banks

Five State-owned Banks

RMB Bn

165.1

241.4

395.8

Acquisition of KVB

22

4. Progress of our international expansion

Research co-operation

IB Capabilities Strengthened

CITIC CLSA Securities

2

1

4

Ranked 2nd in A-share and

B-share research coverage

in China by《Asiamoney 》

15 IPOs, 24 follow-ons, 19

offshore RMB bond and USD

bond issuances in HK

KVB

客户

Hong Kong

Australia New Zealand

H-share Follow-on boosted Our Capital Strength 3

84.8 104.5

0

50

100

150

2015 May end 2015 Jun end

43.6 69.7

0

50

100

150

2015 May end 2015 Jun end

Net Assets

（Parent Company)

1.1bn H-share follow-on as of Jun 2015 amounted to RMB 21.1bn

Awards Granted 5

Granted

“Best Domestic Investment Bank in HK”

“Best Domestic Equity House in HK”

“Best Domestic Broker in HK”

Source: Internal

RMB Bn RMB Bn

Net Capital

（Parent Company)

23

5. Robust risk management mechanism withstood market turmoil

Source: Internal

0.37 0.39

0.0

0.5

1.0

1.5

2.0

2014 End 2015 End

VaR 2

+7%

Centralized Risk Management Mechanism

Risk Management Committee

Risk Management Working Group

Businesses and Risk Management Unit

1

Market Risk

VaR

Stress Test

Sensitivity Analysis

Credit Risk

Internal Credit Rating

Counterparty Credit Line

Daily Marked-to-Market

Operational

Risk

Governance Structure

Operational Procedures

Liquidity

Risk

Assets Liquidity Assessment

Liabilities Maturity Monitor

Liquidity Coverage Ratio

Shortest Survival Period

RMB Bn

Mitigation Actions

4. Company Business Outlook 2016

25

Company vision and paths to achieve

“to become clients’ most trusted

leading Chinese investment bank

on a global scale

1. To provide professional services

2. To stick to a comprehensive operating model

3. To persist in the pursuit of globalization

4. To uphold the principle of market-

oriented management style

5. To abide by the core corporate value

Company Vision Paths to achieve

“13th Five-Year Plan” proposed the goals of

establishing a transparent and healthy capital market”

and “continuing to push for two-way opening up of

capital market.”. CITICS has conceived its long-term

development objective and “13th Five-Year” period

strategic goals.

Based on our business advantage, client base,

business channels and human resource, we aim to

strengthen our competitive advantage in traditional

businesses and spearhead in innovative businesses

and product compliance.

Hig

hlig

hts

Source: Internal

26

Major tasks in 2016

Cultivate a good corporate culture

In 2016, facing the complicated internal and external market environment, we will

uphold “Advance upon excellent heritage, work with tenacious attitude, unite for further

progress and endeavor to achieve prestige”.

Business Development Internal Management

(1) Strengthen client management and

marketing activities

(2) Widen the lead in fee-based

businesses

(3) Increase the utilization efficiency of

the company’s capital

(4) Forge our global business capacity

with greater force

(1) Intensify internal management

(2) Fortify human resources strategy

Source: Internal

27

Thank you！