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This slide is part of a presentation by China Development Financial Holding Corporation and/or its affiliates (together, “CDF”) and is intended to be viewed as part of that presentation. The presentation has not been updated since it was originally presented, and does not constitute a commitment by any CDF entity to underwrite, subscribe for or place any securities or to extend or arrange credit or to provide any other services. 2Q18 Performance Review August 2018
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Page 1: 2Q18 Performance Review · This slide is part of a presentation by China Development Financial Holding Corporation and/or its affiliates (together, “CDF”) and is intended to be

This slide is part of a presentation by China Development Financial Holding Corporation and/or its affiliates (together, “CDF”) and is intended to be viewed as part of that presentation.

The presentation has not been updated since it was originally presented, and does not constitute a commitment by any CDF entity to underwrite, subscribe for or place any securities or

to extend or arrange credit or to provide any other services.

1

2Q18 Performance Review

August 2018

Page 2: 2Q18 Performance Review · This slide is part of a presentation by China Development Financial Holding Corporation and/or its affiliates (together, “CDF”) and is intended to be

This slide is part of a presentation by China Development Financial Holding Corporation and/or its affiliates (together, “CDF”) and is intended to be viewed as part of that presentation.

The presentation has not been updated since it was originally presented, and does not constitute a commitment by any CDF entity to underwrite, subscribe for or place any securities or

to extend or arrange credit or to provide any other services.

2

This presentation has been prepared by China Development Financial Holding Corporation and/ or its affiliates (together, “CDF” or the “Group”) for

the exclusive use of the party to whom CDF delivers this presentation to (“Recipient”).

The information in this presentation should be considered in the context of the circumstances prevailing at the time of its presentation and has not

been, and will not be, updated to reflect material developments which may occur after the date of this presentation. The slides forming part of this

presentation have been prepared solely to support discussion about the Group with the Recipient.

This presentation also contains information and statistics relating to the banking and related industries. The Group has derived such information and

data from unofficial and independent sources, without independent verification. The Group cannot ensure that these sources have compiled such

data and information on the same basis or with the same degree of accuracy or completeness as are found in other industries. You should not place

undue reliance on statements in this presentation regarding the banking and related industries. No representation or warranty, express or implied, is

made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of any information or opinion contained herein.

None of the Group, or any of their respective directors, officers, employees, agents or advisers shall be in any way responsible for the contents

hereof, or shall be liable for any loss whether directly or indirectly arising from use of the information contained in this presentation or otherwise

arising in connection therewith.

This presentation has been prepared on a confidential basis solely for the use and benefit of the Recipient. Distribution of this presentation to any

person other than the Recipient is unauthorized. This material must not be copied, reproduced, distributed or passed to others at any time, in whole

or in part, without the prior written consent of the Group.

Disclaimer

Page 3: 2Q18 Performance Review · This slide is part of a presentation by China Development Financial Holding Corporation and/or its affiliates (together, “CDF”) and is intended to be

This slide is part of a presentation by China Development Financial Holding Corporation and/or its affiliates (together, “CDF”) and is intended to be viewed as part of that presentation.

The presentation has not been updated since it was originally presented, and does not constitute a commitment by any CDF entity to underwrite, subscribe for or place any securities or

to extend or arrange credit or to provide any other services.

3

Contents

SECTION 1 Business Overview 4

SECTION 2 China Life 8

SECTION 3 KGI Bank 15

SECTION 4 KGI Securities 31

SECTION 5 CDIB Capital Group 37

SECTION 6 Financial Highlights 47

Page 4: 2Q18 Performance Review · This slide is part of a presentation by China Development Financial Holding Corporation and/or its affiliates (together, “CDF”) and is intended to be

This slide is part of a presentation by China Development Financial Holding Corporation and/or its affiliates (together, “CDF”) and is intended to be viewed as part of that presentation.

The presentation has not been updated since it was originally presented, and does not constitute a commitment by any CDF entity to underwrite, subscribe for or place any securities or

to extend or arrange credit or to provide any other services.

4

Business Overview1.

Page 5: 2Q18 Performance Review · This slide is part of a presentation by China Development Financial Holding Corporation and/or its affiliates (together, “CDF”) and is intended to be

This slide is part of a presentation by China Development Financial Holding Corporation and/or its affiliates (together, “CDF”) and is intended to be viewed as part of that presentation.

The presentation has not been updated since it was originally presented, and does not constitute a commitment by any CDF entity to underwrite, subscribe for or place any securities or

to extend or arrange credit or to provide any other services.

5

KGI Securities reported profit of NT$797mn in 2Q18 thanks to a rebound in the Taiex trading

turnover that boosted gains from the brokerage and investment business, as well as steady

fee income sources from wealth management and underwriting business

CDF – 2Q18 Results

CDIB Capital Group was the largest profit contributor

CDIB Capital Group contributed profit of NT$1,188mn in 2Q18

CDIB Capital Group’s unrealized gains amounted to NT$3.9bn as of the end of 2Q18

CDIB Capital Group will accelerate asset monetization and focus on asset management

business; assets under management exceeded NT$39.2bn as of the end of 2Q18

CDIB Capital Group

KGI Bank has been capitalizing on group resources to further reduce funding costs and

strengthen cross-selling synergies

As a result of more loan loss reserves (LLR) being provided for the expanding credit portfolio,

KGI Bank contributed profit of NT$804mn in 2Q18

KGI Bank reported NPL ratio of 0.20%, LLR coverage ratio of 1.27%, and NPL coverage ratio

of 643.7% as of June 30, 2018, compared with the industry average of 0.28%, 1.36%, and

492.8%, respectively

KGI Bank

KGI Securities

Note: 1. In addition to KGI Securities’ 9.63% stake in China Life, CDF successfully completed its tender offer to acquire 25.33% (or 880mn common shares) of China Life on September 13, 2017, thereby

becoming the largest shareholder of China Life; 2. Due to the purchase price allocation adjustment and the recognition of investment income on a pro-rata basis

China Life’s 2Q18 net profit was NT$2.6bn; CDF recognized investment income of NT$0.6bn

from China Life in 2Q182

First Year Premium (FYP) rose 82% YoY, driven by strong sales of foreign currency-

denominated products

China Life1

Page 6: 2Q18 Performance Review · This slide is part of a presentation by China Development Financial Holding Corporation and/or its affiliates (together, “CDF”) and is intended to be

This slide is part of a presentation by China Development Financial Holding Corporation and/or its affiliates (together, “CDF”) and is intended to be viewed as part of that presentation.

The presentation has not been updated since it was originally presented, and does not constitute a commitment by any CDF entity to underwrite, subscribe for or place any securities or

to extend or arrange credit or to provide any other services.

6

Profit contribution by subsidiary under CDF, NT$mn

Note: 1. CDF’s net income excludes income attributable to non-controlling interests; 2. Investment income from KGI Bank, KGI Securities and China Life has been

adjusted for the purchase price allocation; 3. China Life’s 2Q18 net profit was NT$2.6bn, whilst CDF recognized an investment income of NT$0.6bn from China Life for

2Q18 due to the purchase price allocation adjustment and the recognition of investment income on a pro-rata basis

Profit contribution by subsidiary

CDIB Capital Group Contributed Most Profit in 2Q18 Among Subsidiaries

CDF – 2Q18 Net Profit

Page 7: 2Q18 Performance Review · This slide is part of a presentation by China Development Financial Holding Corporation and/or its affiliates (together, “CDF”) and is intended to be

This slide is part of a presentation by China Development Financial Holding Corporation and/or its affiliates (together, “CDF”) and is intended to be viewed as part of that presentation.

The presentation has not been updated since it was originally presented, and does not constitute a commitment by any CDF entity to underwrite, subscribe for or place any securities or

to extend or arrange credit or to provide any other services.

7

Profit contribution by subsidiary

CDF – 2Q18 YTD Net Profit

Profit contribution by subsidiary under CDF, NT$mn

Note: 1. CDF’s net income excludes income attributable to non-controlling interests; 2. Investment income from KGI Bank, KGI Securities and China Life has been

adjusted for the purchase price allocation; 3. China Life’s net profit in 2Q18 YTD was NT$6.3bn, whilst CDF recognized an investment income of NT$1.7bn from China

Life for 2Q18 YTD due to the purchase price allocation adjustment and the recognition of investment income on a pro-rata basis

CDIB Capital Group Contributed Most Profit in 2Q18 YTD Among Subsidiaries

Page 8: 2Q18 Performance Review · This slide is part of a presentation by China Development Financial Holding Corporation and/or its affiliates (together, “CDF”) and is intended to be

This slide is part of a presentation by China Development Financial Holding Corporation and/or its affiliates (together, “CDF”) and is intended to be viewed as part of that presentation.

The presentation has not been updated since it was originally presented, and does not constitute a commitment by any CDF entity to underwrite, subscribe for or place any securities or

to extend or arrange credit or to provide any other services.

8

China Life2.

Page 9: 2Q18 Performance Review · This slide is part of a presentation by China Development Financial Holding Corporation and/or its affiliates (together, “CDF”) and is intended to be

This slide is part of a presentation by China Development Financial Holding Corporation and/or its affiliates (together, “CDF”) and is intended to be viewed as part of that presentation.

The presentation has not been updated since it was originally presented, and does not constitute a commitment by any CDF entity to underwrite, subscribe for or place any securities or

to extend or arrange credit or to provide any other services.

9

2014 2015 2016 2017 1H18

74.3 82.6 81.1

95.3 81.1

648.8

1,107.3

1,323.7 1,465.7

1,621.0

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2014 2015 2016 2017 1H18

CDF holds 34.96%

shares of China Life after

the completion

of the tender offer

2017

2015~2018

Ranked among the top 5% of

the Corporate Governance Evaluation

Awards for

4 consecutive years

2010Jointly invested

CCB Life with China Construction Bank

Acquired

Winterthur Taiwan

from AXA

2007

Acquired

PCA Life

2009

1963

Established

Listed on the

Taiwan Stock

Exchange

1995

2003Professional

management team joined

2008Avoid the subprime

turmoil during financial crisis

1H18

Acquired traditional policies

from Allianz Taiwan

2016

Included into

TWSE CG 100 Index

9

369%>300% 357%

303%350%

Total assets

Surpassed

NT$1 trillion

2014

Total assets surpassed NT$1.6 trillion; maintains solid capital level for a long time

China Life – Performance Highlights

Shareholders’ equityNT$bn

RBC ratio1

Note: 1. Risk-based capital ratio

Total assetsNT$bn

Page 10: 2Q18 Performance Review · This slide is part of a presentation by China Development Financial Holding Corporation and/or its affiliates (together, “CDF”) and is intended to be

This slide is part of a presentation by China Development Financial Holding Corporation and/or its affiliates (together, “CDF”) and is intended to be viewed as part of that presentation.

The presentation has not been updated since it was originally presented, and does not constitute a commitment by any CDF entity to underwrite, subscribe for or place any securities or

to extend or arrange credit or to provide any other services.

10

2014 2015 2016 2017 1H17 1H18

70.6 79.1 100.5

126.2

60.0 66.9

83.9 83.1

90.6

80.2

38.5

70.0

FYP Renewal premium

2014 2015 2016 2017 1H17 1H18

6.51

9.17 9.47

9.08

2.34

6.26

10

162.2154.5

191.1206.4

98.5

136.9

39%

Growth with sustainable profitability; significant growth in First Year Premium income in 1H18

China Life – Profitability & Growth Momentum

Net profits

NT$bn

Total premium

NT$bn

Page 11: 2Q18 Performance Review · This slide is part of a presentation by China Development Financial Holding Corporation and/or its affiliates (together, “CDF”) and is intended to be

This slide is part of a presentation by China Development Financial Holding Corporation and/or its affiliates (together, “CDF”) and is intended to be viewed as part of that presentation.

The presentation has not been updated since it was originally presented, and does not constitute a commitment by any CDF entity to underwrite, subscribe for or place any securities or

to extend or arrange credit or to provide any other services.

11

1H17 1H18

1% 6%6%4%4%

17%6%

11%30%

25%

53%

37%

1H17 1H18

2%10%

22% 8%

13%35%

20%

22%16%

11%27%

14%

11

38.5 70.0 13.3 14.0

Strong sales of foreign-currency denominated products, and continues to promote traditional products

China Life – Product Mix

NT$bn

FYPNT$bn

FYPE1

Traditional2-regularForeign currency-regularTraditional2-singleForeign currency-singleInterest sensitive annuity & ULInvestment-link

Traditional2-regularForeign currency-regularTraditional2-singleForeign currency-singleInterest sensitive annuity & ULInvestment-link

Note: 1. FYPE (First Year Premium Equivalent) = 10% x single & flexible premium + 20% x 2-year premium payment term +…+ 50% x 5-year premium payment term + 100% x 6-year and more premium

payment term; 2. Traditional insurance product: including traditional life, interest sensitive life, health & accident insurance product

Page 12: 2Q18 Performance Review · This slide is part of a presentation by China Development Financial Holding Corporation and/or its affiliates (together, “CDF”) and is intended to be

This slide is part of a presentation by China Development Financial Holding Corporation and/or its affiliates (together, “CDF”) and is intended to be viewed as part of that presentation.

The presentation has not been updated since it was originally presented, and does not constitute a commitment by any CDF entity to underwrite, subscribe for or place any securities or

to extend or arrange credit or to provide any other services.

12

1H17 1H18

35%25%

9%

3%

3%

10%

41% 55%

12% 7%

Broker

Bancassurance

Group

Financial Services

Agency

1H17 1H18

17% 14%

11%6%

3%

2%

60%72%

9% 6%

Broker

Bancassurance

Group

Financial Services

Agency

12

38.5 70.0 13.3 14.0

Provides diversified channels; bancassurance and agency are the major distributors

China Life – Distribution Channels

NT$bn NT$bn

FYP FYPE1

Note: 1. FYPE (First Year Premium Equivalent) = 10% x single & flexible premium + 20% x 2-year premium payment term +…+ 50% x 5-year premium payment term + 100% x 6-year and more premium

payment term

Page 13: 2Q18 Performance Review · This slide is part of a presentation by China Development Financial Holding Corporation and/or its affiliates (together, “CDF”) and is intended to be

This slide is part of a presentation by China Development Financial Holding Corporation and/or its affiliates (together, “CDF”) and is intended to be viewed as part of that presentation.

The presentation has not been updated since it was originally presented, and does not constitute a commitment by any CDF entity to underwrite, subscribe for or place any securities or

to extend or arrange credit or to provide any other services.

1313

2017/6/30 2017/12/31 2018/6/30

(Unit: NT$bn) Amount Weight Amount Weight Amount Weight

Deposits and Short-term

investment38.5 3.0% 23.3 1.7% 39.2 2.6%

Domestic Fixed Income 210.5 16.3% 235.2 17.2% 210.7 13.9%

Domestic Equity 112.9 8.8% 120.3 8.8% 138.8 9.1%

Loans - Mortgage 1.9 0.2% 1.6 0.1% 1.4 0.1%

Loan - Policy 28.7 2.2% 29.9 2.2% 31.5 2.1%

Real Estate 31.6 2.4% 32.1 2.4% 32.4 2.1%

Foreign Deposits 22.5 1.7% 19.1 1.5% 17.0 1.1%

Overseas Fixed Income1 804.5 62.4% 861.4 63.1% 998.4 65.8%

Overseas Equity 38.6 3.0% 41.3 3.0% 48.3 3.2%

Total Investments 1,289.7 100.0% 1,364.2 100.0% 1,517.7 100.0%

Note: 1. Including OTC Listed Int‘l Bonds. Investment amount in OTC Listed Int’l Bonds in 1H17, 2017 and 1H18 were NT$320.6bn, NT$344.6bn, NT$405.0bn, respectively.

New money mostly deployed in overseas bonds, and increased domestic equity investment

China Life – Investment Portfolio

Page 14: 2Q18 Performance Review · This slide is part of a presentation by China Development Financial Holding Corporation and/or its affiliates (together, “CDF”) and is intended to be

This slide is part of a presentation by China Development Financial Holding Corporation and/or its affiliates (together, “CDF”) and is intended to be viewed as part of that presentation.

The presentation has not been updated since it was originally presented, and does not constitute a commitment by any CDF entity to underwrite, subscribe for or place any securities or

to extend or arrange credit or to provide any other services.

14

2014 2015 2016 2017 1H18

3.48% 3.45% 3.35%3.25% 3.22%

4.21%

4.58%

4.11%3.73%

3.54%

14

Cost of liability further downed to 3.22%; maintains positive spread

China Life – Investment Spread

Cost of liability1

Investment yield

Note: 1. Reserve-based cost of liability

Page 15: 2Q18 Performance Review · This slide is part of a presentation by China Development Financial Holding Corporation and/or its affiliates (together, “CDF”) and is intended to be

This slide is part of a presentation by China Development Financial Holding Corporation and/or its affiliates (together, “CDF”) and is intended to be viewed as part of that presentation.

The presentation has not been updated since it was originally presented, and does not constitute a commitment by any CDF entity to underwrite, subscribe for or place any securities or

to extend or arrange credit or to provide any other services.

15

KGI Bank3.

Page 16: 2Q18 Performance Review · This slide is part of a presentation by China Development Financial Holding Corporation and/or its affiliates (together, “CDF”) and is intended to be

This slide is part of a presentation by China Development Financial Holding Corporation and/or its affiliates (together, “CDF”) and is intended to be viewed as part of that presentation.

The presentation has not been updated since it was originally presented, and does not constitute a commitment by any CDF entity to underwrite, subscribe for or place any securities or

to extend or arrange credit or to provide any other services.

16

KGI Bank – Profitability

Pre-provision operating profits (PPOP), NT$bn

Note: 2014 and 2015 were pro-forma figures, including corporate banking and global market

business transferred from CDIB Capital Group

2010

Profitability Affected By Increasing Provisions Coupled With Robust Loan Growth And Deferred Tax

Asset Write-offNet profit, NT$bn

Note: 2014 and 2015 were pro-forma figures, including corporate banking and global market

business transferred from CDIB Capital Group

Profitability affected by performance of global markets; loan growth remains strong

1.2

1.1Provision,

etc.

Deferred

Tax

Asset

Page 17: 2Q18 Performance Review · This slide is part of a presentation by China Development Financial Holding Corporation and/or its affiliates (together, “CDF”) and is intended to be

This slide is part of a presentation by China Development Financial Holding Corporation and/or its affiliates (together, “CDF”) and is intended to be viewed as part of that presentation.

The presentation has not been updated since it was originally presented, and does not constitute a commitment by any CDF entity to underwrite, subscribe for or place any securities or

to extend or arrange credit or to provide any other services.

17

KGI Bank – Profitability (Cont’d)

ROAA, percent

ROAE, percent

Note: 2014 and 2015 were pro-forma figures, including corporate banking and global market

business transferred from CDIB Capital Group

Note: 2014 and 2015 were pro-forma figures, including corporate banking and global market

business transferred from CDIB Capital Group

Profitability Affected By Increasing Provisions Coupled With Robust Loan Growth And Deferred Tax

Asset Write-off

Profitability affected by performance of global markets; loan growth remains strong

Page 18: 2Q18 Performance Review · This slide is part of a presentation by China Development Financial Holding Corporation and/or its affiliates (together, “CDF”) and is intended to be

This slide is part of a presentation by China Development Financial Holding Corporation and/or its affiliates (together, “CDF”) and is intended to be viewed as part of that presentation.

The presentation has not been updated since it was originally presented, and does not constitute a commitment by any CDF entity to underwrite, subscribe for or place any securities or

to extend or arrange credit or to provide any other services.

18

Consumer banking still accounts for the lion’s share of net revenue

KGI Bank – Net Revenue

(NT$mm) 2014 2015 2016 2017 2Q17 3Q17 4Q17 1Q18 2Q18

Consumer banking1 4,801 5,334 4,835 4,992 1,198 1,296 1,356 1,320 1,370

Corporate banking2 3,572 2,646 2,659 2,932 707 755 725 800 826

Global markets 1,487 2,442 2,935 3,087 622 880 778 40 4

Other 1,372 536 359 482 183 348 92 138 205

Total net revenue 11,232 10,958 10,789 11,493 2,710 3,279 2,950 2,298 2,404

(% of total) 2014 2015 2016 2017 2Q17 3Q17 4Q17 1Q18 2Q18

Consumer banking1 42.7 48.7 44.8 43.4 44.2 39.5 46.0 57.5 57.0

Corporate banking2 31.8 24.1 24.6 25.5 26.1 23.0 24.6 34.8 34.3

Global markets 13.2 22.3 27.2 26.9 23.0 26.8 26.4 1.7 0.2

Other 12.2 4.9 3.3 4.2 6.7 10.6 3.1 6.0 8.5

Total net revenue 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Note: 1. Consumer banking includes cash cards, credit cards, personal loans and other unsecured consumer loans, and branch business (e.g., wealth management, mortgage loans, and emerging

corporate loans, etc.); 2. Corporate banking includes corporate banking, commercial banking and merchant banking; 3. 2014-2015 were the pro-forma figures post CDIB Capital Group business transfer

Page 19: 2Q18 Performance Review · This slide is part of a presentation by China Development Financial Holding Corporation and/or its affiliates (together, “CDF”) and is intended to be

This slide is part of a presentation by China Development Financial Holding Corporation and/or its affiliates (together, “CDF”) and is intended to be viewed as part of that presentation.

The presentation has not been updated since it was originally presented, and does not constitute a commitment by any CDF entity to underwrite, subscribe for or place any securities or

to extend or arrange credit or to provide any other services.

19

Diversified loan portfolio with robust loan growth

KGI Bank – Loans

(NT$bn) 2014 2015 2016 2017 2Q17 3Q17 4Q17 1Q18 2Q18

Corporate loans 157.3 145.2 175.7 200.8 194.2 206.5 200.8 217.0 229.7

Large corporations 142.6 133.7 161.1 181.8 177.1 187.1 181.8 197.2 209.1

SMEs 14.8 11.6 14.5 19.0 17.1 19.4 19.0 19.8 20.6

Secured consumer loans 37.8 40.7 45.8 60.8 51.2 55.5 60.8 64.2 68.8

Mortgage 37.7 40.6 45.7 60.7 51.2 55.5 60.7 64.2 68.7

Others 0.1 0.1 0.0 0.0 0.0 0.0 0.1 0.0 0.0

Unsecured consumer loans 34.2 35.0 34.5 36.0 34.9 35.5 36.0 36.1 36.7

Cash card 16.9 16.2 15.0 14.5 14.7 14.6 14.5 14.2 14.1

Personal loans 17.3 18.8 19.5 21.5 20.3 20.9 21.5 21.9 22.5

Total loans 229.3 220.9 255.9 297.7 280.4 297.5 297.7 317.4 335.1

Credit card 2.5 2.7 2.7 2.7 3.0 2.8 2.7 2.7 3.3

AR/ forfaiting/ China advance 55.6 32.3 18.6 16.8 17.2 19.1 16.8 19.6 21.1

Guarantees 12.4 12.0 10.7 11.9 11.3 14.0 11.9 13.2 14.8

Total credit 299.7 268.0 287.8 329.1 311.8 333.5 329.1 352.9 374.2

Total loans YoY/ QoQ (%) 9.8 (3.6) 15.8 16.3 3.7 6.1 0.1 6.6 5.6

Total credit YoY/ QoQ (%) 7.4 (10.6) 7.4 14.3 3.2 6.9 (1.3) 7.2 6.1

Note: 2014-2015 were the pro-forma figures post CDIB Capital Group business transfer

Page 20: 2Q18 Performance Review · This slide is part of a presentation by China Development Financial Holding Corporation and/or its affiliates (together, “CDF”) and is intended to be

This slide is part of a presentation by China Development Financial Holding Corporation and/or its affiliates (together, “CDF”) and is intended to be viewed as part of that presentation.

The presentation has not been updated since it was originally presented, and does not constitute a commitment by any CDF entity to underwrite, subscribe for or place any securities or

to extend or arrange credit or to provide any other services.

20

KGI Bank – Loans (Cont’d)

(% of total) 2014 2015 2016 2017 2Q17 3Q17 4Q17 1Q18 2Q18

Corporate loans

Large corporations 62.2 60.5 63.0 61.1 63.2 62.9 61.1 62.1 62.4

SMEs 6.4 5.2 5.7 6.4 6.1 6.5 6.4 6.2 6.1

Secured consumer loans

Mortgage 16.4 18.4 17.9 20.4 18.3 18.6 20.4 20.2 20.5

Others 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Unsecured consumer loans

Cash card 7.4 7.3 5.9 4.9 5.2 4.9 4.9 4.5 4.2

Personal loans 7.5 8.5 7.6 7.2 7.2 7.0 7.2 6.9 6.7

Total loans 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Foreign currency loans 24.7 20.5 24.7 28.2 26.2 27.5 28.2 28.6 30.7

Note: 2014-2015 were the pro-forma figures post CDIB Capital Group business transfer

Diversified loan portfolio with robust loan growth

Page 21: 2Q18 Performance Review · This slide is part of a presentation by China Development Financial Holding Corporation and/or its affiliates (together, “CDF”) and is intended to be

This slide is part of a presentation by China Development Financial Holding Corporation and/or its affiliates (together, “CDF”) and is intended to be viewed as part of that presentation.

The presentation has not been updated since it was originally presented, and does not constitute a commitment by any CDF entity to underwrite, subscribe for or place any securities or

to extend or arrange credit or to provide any other services.

21

KGI Bank – Corporate Banking Loan Book

Well-diversified loan portfolio with focus on service and technology industries

Loan Breakdown By Industry

Note: 1. 2014-2015 were pro-forma figures post CDIB Capital Group business transfer; 2. Excluding data from CDC Finance & Leasing Corp. Total consolidated assets of CDC Finance & Leasing Corp.:

NT$3,974mn as of Dec. 31, 2014, NT$4,668mn as of Dec. 31, 2015, NT$4,603mn as of Dec. 31, 2016 and NT$3,974mn as of Dec.31, 2017; 2017, NT$4,256mn as of Jun. 30, 2017, NT$4,123mn as of

Sept. 30, 2017, NT$3,974mn as of Dec. 31, 2017 and NT$3,926mn as of Mar. 31, 2018, NT$4,076mn as of Jun. 30, 2018

(% of total loan) 2014 2015 2016 2017 2Q17 3Q17 4Q17 1Q18 2Q18

Services 27.6 26.0 27.0 32.0 29.2 30.8 32.0 33.5 36.2

Information, communication, tech 23.6 29.5 26.2 24.7 26.7 25.8 24.7 23.4 23.2

Real estate 9.8 9.6 7.6 9.1 8.2 8.1 9.1 8.6 8.2

Plastics, rubber 10.9 9.4 8.4 7.9 7.7 8.3 7.9 8.1 7.2

Transportation 5.5 7.3 7.7 5.0 6.3 5.8 5.0 4.9 4.4

Energy 2.6 2.2 1.8 1.6 2.3 2.1 1.6 2.1 2.3

Textiles 1.1 1.3 2.1 2.0 2.7 2.2 2.0 2.3 2.2

Others 18.8 14.7 19.2 17.6 16.9 16.9 17.6 17.1 16.4

Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Total loans (NT$bn) 157.3 145.2 175.7 200.8 194.2 206.5 200.8 217.0 229.7

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22

Deposit breakdown, percent; total deposits, NT$bn

Demand Deposit Ratio Has Been Gradually Increasing

A shifted deposit mix has reduced funding costs

KGI Bank – Deposits

Note: 2014-2015 were the pro-forma figures post CDIB Capital Group business transfer

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23

Loan-to-deposit ratio has started to improve

KGI Bank – Liquidity

Loan-to-deposit ratio (LDR), percent

Note: 2014-2015 were the pro-forma figures post CDIB Capital Group business transfer

Loan-To-Deposit Ratio Has Improved

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24

KGI Bank – Interest Spread & Net Interest Margin (NIM)

Overall interest spread, percent

Interest Spread Decreased Due to Rate Hikes in FCY Markets

NIM, percent

NIM Continues to Stay within a Steady Range Along with Increased Lending

Note: 2014-2015 were the pro-forma figures post CDIB Capital Group business transfer

Note: 2014-2015 were the pro-forma figures post CDIB Capital Group business transfer

Interest spread and NIM have been maintained within a stable range

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25

Non-performing loan ratio, non-performing loan coverage, percent

NPL Ratio & NPL Coverage Have Remained Stable

Asset quality remained intact

KGI Bank – Asset Quality

Loan loss reserve, NT$mn; loan loss reserve coverage (LLR), percent

Stable LLR Coverage

Note: 2014-2015 were the pro-forma figures post CDIB Capital Group business transfer

Note: 1. 2014-2015 were the pro-forma figures post CDIB Capital Group business transfer; 2. Banking peers’ loan loss reserve coverage was 1.36% as of December 31, 2017

Note: Banking peers’ loan loss reserve coverage was 1.36% as of June 30, 2018

Note: Peer average NPL ratio was 0.28% and peer average NPL coverage ratio was 492.8% as of

June 30, 2018

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26

Build strategic alliances and enhance client experience to increase credit card spending

KGI Bank – Credit Cards & Cash Cards

2014 2015 2016 2017 2Q17 3Q17 4Q17 1Q18 2Q18

Credit card

Credit cards in circulation ('000) 495 506 498 452 461 449 452 431 424

Active credit cards ('000) 194 211 198 192 193 192 192 192 193

Monthly spending per credit card (NT$) 1,638 1,900 2,124 2,314 2,434 2,289 2,230 2,392 2,816

Spending (NT$mn) 9,741 11,538 12,696 12,546 3,364 3,085 3,023 3,093 3,586

Credit card revolving (NT$mn) 1,300 1,153 1,102 1,081 1,070 1,069 1,081 1,057 1,059

Cash card

Cash cards with credit line ('000) 526 516 502 494 498 496 494 493 492

Cash cards with balances ('000) 365 355 343 335 338 337 335 333 332

Cash card loan outstanding (NT$mn) 16,899 16,187 14,986 14,516 14,679 14,579 14,516 14,184 14,118

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27

KGI Bank – Net Fee Income

Wealth management is the major source of net fee income

Net Interest Income & Net Fee Income

Note: 2014-2015 were the pro-forma figures post CDIB Capital Group business transfer

(NT$mn) 2014 2015 2016 2017 2Q17 3Q17 4Q17 1Q18 2Q18

Net interest income 9,237 7,327 5,763 6,385 1,625 1,660 1,695 1,778 1,825

Net fee income 1,769 1,861 1,927 2,017 456 538 524 588 588

(NT$mn) 2014 2015 2016 2017 2Q17 3Q17 4Q17 1Q18 2Q18

Wealth management 890 926 953 1,165 254 327 344 342 291

Loans 332 399 391 374 84 91 94 105 131

TMU 333 358 421 293 68 74 40 102 124

Cards 215 178 162 185 50 46 46 39 41

Net fee income 1,769 1,861 1,927 2,017 456 538 524 588 588

Net Fee Income Mainly Generated From Wealth Management

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28

Cost-to-income ratio, percent

Effective Control Over Expenses

Maintain reasonable cost-to-income ratio during business expansion

KGI Bank – Efficiency

Note: 2014-2015 were the pro-forma figures post CDIB Capital Group business transfer Note: A higher cost-to-income ratio in 1Q18 was due to trading and evaluation losses and the ratio should return to the reasonable range once the revenue improves

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29

Capital adequacy ratio, percent

Strong Capital Adequacy Ratio

Capitalization remains solid despite robust loan growth

KGI Bank – Capitalization

Tier-1 capital ratio, percent

Note: 2014-2015 were the pro-forma figures post CDIB Capital Group business transfer

Note: 2014-2015 were the pro-forma figures post CDIB Capital Group business transfer

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The presentation has not been updated since it was originally presented, and does not constitute a commitment by any CDF entity to underwrite, subscribe for or place any securities or

to extend or arrange credit or to provide any other services.

30

KGI Bank – Global Markets

(% of total market value) 2014 20154 2016 2017 2Q17 3Q17 4Q17 1Q18 2Q18

TW GB, municipal 66.0 52.8 74.3 55.3 61.3 57.1 55.3 52.6 52.4

TW negotiable CD +

commercial paper0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Foreign GB 0.0 0.0 7.3 0.0 0.5 0.0 0.0 0.9 0.9

TW corporate/ bond & bank

debenture0.0 0.0 0.0 0.0 0.0 0.0 0.0 1.1 1.2

Foreign corporate/ bond &

bank debenture29.0 39.9 14.7 40.0 34.5 38.3 40.0 43.9 43.6

Equity 5.0 7.3 3.7 4.6 3.7 4.6 4.6 1.6 1.9

Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Total market value1 (NT$mn) 108,864 74,202 128,669 115,160 152,759 153,391 115,160 133,855 127,608

Total cost1 (NT$mn) 108,956 74,953 131,072 115,927 153,856 154,224 115,927 135,663 129,463

Unrealized profits2 (NT$mn) (92) (751) (2,403) (767) (1,095) (833) (767) (1,808) (1,855)

Realized profits3 (NT$mn) 2,089 3,612 2,714 2,801 985 921 603 282 373

Breakdown of Banking Book Portfolio (Market Value)

Note: 1. Excluding bank deposits, repos, bonds and financial assets recorded at trading book (including bond trading and derivatives); 2. Unrealized loss originated from higher bond yields and widening

credit spreads in European bonds; 3. Realized profits include dividends and interest received as well as realized gains on disposal; 4. 2014-15 are pro-forma figures post CDIB Capital Group business

transfer

Banking book portfolio is focused on high-quality government/ corporate bonds and

blue-chip stocks

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31

KGI Securities4.

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32

KGI Securities – Net Revenue

Brokerage commissions were the main revenue driver

Net revenue breakdown, NT$mn

Brokerage Commissions Were KGI Securities’ Main Revenue Driver In 2Q8

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to extend or arrange credit or to provide any other services.

33

KGI Securities – Net Revenue (Cont’d)

Brokerage business improved on a healthier stock market

(NT$mn) 2014 2015 2016 2017 2Q17 3Q17 4Q17 1Q18 2Q18

Net brokerage/ futures/ warrant commissions 6,932 8,159 6,208 7,733 1,701 2,124 2,289 2,294 2,256

Net underwriting fees 792 667 1,041 920 214 213 303 209 154

Net fees & commissions 7,724 8,826 7,248 8,652 1,915 2,337 2,591 2,503 2,409

Net interest income 2,806 2,398 1,899 1,869 461 467 518 479 524

Net investment income 2,098 2,246 3,368 6,699 636 5,309 903 137 1,158

Other revenue 452 577 1,050 1,609 160 333 357 380 (361)

Total net revenue 13,080 14,047 13,565 18,830 3,172 8,445 4,370 3,498 3,729

Note: The figures above included the contribution from overseas subsidiaries

Revenue Improved In 2Q18 Due To Higher Profit From Brokerage & Investment Business

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34

KGI Securities – Profit Breakdown

Profit generated by overseas subsidiaries and Taiwan operations both improved

(NT$mn) 2014 2015 2016 2017 2Q17 3Q17 4Q17 1Q18 2Q18

Taiwan 2,433 1,943 3,201 7,227 591 5,2691

1,233 694 872

overseas Subsidiaries 805 610 (718) 850 104 322 174 277 192

Hong Kong2 556 417 (1,044) 571 65 259 67 192 119

Thailand 249 192 327 279 39 63 107 84 74

Total 3,238 2,552 2,484 8,078 695 5,591 1,406 970 1,065

(% of total profits) 2014 2015 2016 2017 2Q17 3Q17 4Q17 1Q18 2Q18

Taiwan 75.1 76.1 128.9 89.5 85.1 94.2 87.6 71.5 81.9

overseas Subsidiaries

Hong Kong2

17.2 16.4 (42.1) 7.0 9.3 4.6 4.7 19.8 11.2

Thailand 7.7 7.5 13.2 3.5 5.6 1.1 7.6 8.7 6.9

Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Profit Breakdown By Geographical Location

Note: 1. Including a one-off valuation gain of NT$3,834mn associated with KGI Securities’ stake in China Life in 3Q17; 2. Including Singapore and Indonesia subsidiaries

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35

KGI Securities – Brokerage & Margin Loans

Brokerage business provides a stable recurring income source

(NT$mn) 2014 2015 2016 2017 2Q17 3Q17 4Q17 1Q18 2Q18

Retail 3,265 2,722 2,196 3,226 670 952 974 880 1,011

Institutional 557 507 459 491 118 135 125 146 132

Total 3,822 3,229 2,655 3,717 787 1,087 1,100 1,026 1,143

Market share (%) 8.7 8.1 8.3 8.3 8.3 8.6 8.3 8.0 8.0

(NT$mn) 2014 2015 2016 2017 2Q17 3Q17 4Q17 1Q18 2Q18

KGIS Average Balance 26,375 23,675 18,771 21,622 17,610 18,230 20,074 20,245 20,913

Market share (%) 10.0 9.5 8.6 8.4 8.5 8.3 8.3 8.4 8.3

Breakdown Of Brokerage Commissions By Client Segment (Taiwan Only)

Margin Loans (Taiwan Only)

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36

KGI Securities – Investment Portfolio

High-quality investment portfolio

(% of total) 2014 2015 2016 2017 2Q17 3Q17 4Q17 1Q18 2Q18

Fixed-income 69.9 68.5 56.3 65.9 49.8 69.8 65.9 68.7 68.7

Corporate bond & financial debenture 46.3 26.5 37.9 40.0 33.9 41.2 40.0 38.1 40.1

Convertible bond 11.1 9.7 7.3 7.4 6.9 7.1 7.4 5.6 5.4

Exchangeable bond 0.0 0.0 0.0 0.2 0.2 0.2 0.2 0.2 0.1

Government bond 12.5 32.2 11.1 18.4 8.8 21.2 18.4 24.8 23.2

Stocks 26.0 27.9 38.5 26.4 45.4 23.8 26.4 23.5 23.7

Others 4.0 3.6 5.2 7.7 4.8 6.4 7.7 7.8 7.5

Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Total market value (NT$mn) 85,170 72,177 60,709 56,979 63,953 57,955 56,979 62,766 67,316

Note: 1. Includes hedged position for warrants; 2. Excludes overseas subsidiaries’ balance

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37

CDIB Capital Group5.

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38

CDIB Capital Group – Direct Investment Portfolio

2014 2015 2016 2017 2Q17 3Q17 4Q17 1Q18 2Q18

Principal investment (Market value) 65,052 53,809 48,354 43,070 47,652 45,835 43,070 41,326 37,548

Greater China (NT$mn) 44,473 39,855 34,866 30,702 33,674 32,183 30,702 29,108 23,634

International (NT$mn) 20,579 13,954 13,489 12,368 13,978 13,652 12,368 12,219 13,914

Total capital invested (NT$mn) 59,277 48,221 45,235 41,563 43,126 42,764 41,563 38,833 33,651

Greater China (NT$mn) 42,097 37,141 34,180 31,045 31,777 31,424 31,045 28,293 22,382

International (NT$mn) 17,180 11080 11,055 10,518 11,348 11,340 10,518 10,540 11,270

Unrealized profits (NT$mn) 5,775 5,587 3,119 1,507 4,526 3,071 1,507 2,493 3,897

Greater China (NT$mn) 2,376 2,714 685 (342) 1,897 760 (342) 814 1,252

International (NT$mn) 3,399 2,873 2,434 1,849 2,629 2,312 1,849 1,679 2,645

Monetization of direct investment portfolio will continue

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39

Region Taiwan Greater China International

Fund nameCreative

Fund

Healthcare

Fund

Growth

Fund

Innovation

Fund

Ali

Fund

Hua Nan

Fund

Hua Dong

Fund

Asia Partners

Fund

Funds

Partners Fund

Fund size NT$1,500mn NT$1,750mn NT$4,540mn NT$840mn US$100mn RMB1,000mn RMB1,000mn US$405mn US$169mn

Vintage yearFebruary

2013

September

2014

May

2017

March

2017

May

2016

May

2014

April

2015

March

2014

July

2015

Shareholding1 39.8% 34.3% 33.3% 35.7% 0.0% 35.0% 30.0% 24.7% 0%

Investment

target

Digital content,

fashion brands,

media and

creative

tourism

Channels and

service

providers of

medical and

healthcare-

related

industries

Technology

and

manufacturing

companies

that intend to

focus on

“smart” and

“green”

technologies

Cloud service,

mobile

internet and e-

commerce

platforms

Supporting

Taiwanese

entrepreneurs

who intend to

distribute

products and

services via

Alibaba’s

ecosystem

Digital content,

consumption

and

healthcare

Consumption,

intelligent

machinery,

environmental

protection,

communicatio

ns and

internet

Taiwanese,

South Korean

and US

companies in

Asia-Pacific

region that

seek long-

term

prospects in

China

International

private equity

fund and

portfolio

CDIB Capital Group – Focusing On Asset Management

Continue to focus on fundraising

Note: 1. CDF and its subsidiaries’ ownership percentage

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40

CDIB Capital Group – Focusing On Asset Management (Cont’d)

Private-equity funds continue to bear fruit on steadily increasing portfolio valuation

Note: 1. A group of funds managed by CDIB Capital Group for global institutional investors; 2. Unrealized value was based on draft GP report; 3. Figures have been converted into New Taiwan dollars

using the exchange rate on the last day of each quarter; assets under management = undrawn capital + unrealized value; realized gains have been excluded from unrealized value

2014 2015 2016 2017 2Q17 3Q17 4Q17 1Q18 2Q18

Undrawn capital 1,097 802 560 324 417 384 324 312 312

Unrealized value 486 816 1,053 1,133 1,127 1,104 1,133 1,170 1,191

Assets under management 1,582 1,617 1,613 1,457 1,544 1,488 1,457 1,482 1,503

Undrawn capital 650 1,269 697 678 678 678 678 542 484

Unrealized value 225 705 1,625 1,133 1,380 1,217 1,133 1,289 1,266

Assets under management 875 1,974 2,322 1,811 2,058 1,895 1,811 1,831 1,750

Undrawn capital 0 0 0 714 678 657 714 719 690

Unrealized value 0 0 0 125 73 93 125 117 163

Assets under management 0 0 0 839 750 750 839 836 852

Undrawn capital 0 0 0 2,653 3,000 2,755 2,653 3,569 3,569

Unrealized value 0 0 0 942 500 744 942 1,046 1,157

Assets under management 0 0 0 3,595 3,500 3,499 3,595 4,615 4,726

Undrawn capital 363 258 190 485 751 485 485 434 416

Unrealized value 37 144 564 602 335 604 602 650 628

Assets under management 400 402 754 1,087 1,086 1,089 1,087 1,084 1,044

Undrawn capital 0 299 355 382 604 444 382 332 332

Unrealized value 0 95 364 658 438 596 658 762 763

Assets under management 0 393 719 1,040 1,042 1,040 1,040 1,095 1,095

Undrawn capital 61 254 134 67 61 66 67 67 63

Unrealized value 146 169 270 382 361 363 382 393 394

Assets under management 207 423 403 449 421 429 449 460 457

Undrawn capital 0 0 96 75 86 83 75 75 71

Unrealized value 0 0 4 25 15 17 25 25 33

Assets under management 0 0 100 100 100 100 100 100 104

Undrawn capital 0 29 29 29 29 29 29 29 29

Unrealized value 0 155 133 101 121 110 101 94 85

Assets under management 0 183 161 130 150 138 130 123 114

Undrawn capital 5,549 14,237 12,129 13,432 16,173 14,097 13,432 13,673 13,455

Unrealized value 5,518 13,407 20,070 24,260 21,661 23,470 24,260 25,103 25,764

Assets under management 11,067 27,644 32,199 37,692 37,834 37,568 37,692 38,776 39,220

NT$mn Creative Fund

NT$mn Healthcare Fund

NT$mn Innovation Fund

NT$mn Growth Fund

RMBmn Hua Nan Fund

RMBmn Hua Dong Fund

US$mn Asia Partners Fund

US$mn Ali Fund

US$mn Funds Partners Fund

NT$mn Total AUM

1

2

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41

Portfolio Breakdown

Note: 1. Banking-related strategic investment includes Taiwan Stock Exchange Corporation; 2. Venture capital-related business excluding cash held by venture capital-related strategic investment, i.e.,

CDIB Capital Management (Hong Kong) Corporation Limited, CDIB Private Equity (China) Corporation, CDIB Capital Creative Industries Limited, CDIB Capital Healthcare Ventures Limited, CDIB Capital

Innovation Accelerator CO., Limited, CDIB Capital Growth Partners L.P., CDIB Private Equity (Fujian) Enterprise (L.P.), CDIB Yida Private Equity (Kunshan) Enterprise (L.P.), CDIB & Partners Investment

Holding Corp., and CDIB Capital International Corp.

(NT$mn) 2014 2015 2016 2017 2Q17 3Q17 4Q17 1Q18 2Q18

Strategic investment 16,253 16,484 15,121 13,872 14,057 13,631 13,872 14,340 14,164

Banking-related1 9,944 8,843 6,278 2,953 3,721 3,088 2,953 3,145 3,294

Venture capital-related2 6,308 7,641 8,843 10,919 10,335 10,543 10,919 11,195 10,870

Direct investment 28,220 23,371 19,744 16,831 19,617 18,552 16,831 14,767 9,470

Total 44,473 39,855 34,866 30,702 33,674 32,183 30,702 29,108 23,634

(% of total, percent) 2014 2015 2016 2017 2Q17 3Q17 4Q17 1Q18 2Q18

Strategic investment 36.5 41.4 43.4 45.2 41.7 42.4 45.2 49.3 59.9

Banking-related1 22.4 22.2 18.0 9.6 11.1 9.6 9.6 10.8 13.9

Venture capital-related2 14.2 19.2 25.4 35.6 30.7 32.8 35.6 38.5 46.0

Direct investment 63.5 58.6 56.6 54.8 58.3 57.6 54.8 50.7 40.1

Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Monetization of direct investment portfolio will continue

CDIB Capital Group – Greater China Portfolio

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This slide is part of a presentation by China Development Financial Holding Corporation and/or its affiliates (together, “CDF”) and is intended to be viewed as part of that presentation.

The presentation has not been updated since it was originally presented, and does not constitute a commitment by any CDF entity to underwrite, subscribe for or place any securities or

to extend or arrange credit or to provide any other services.

42

CDIB Capital Group – Greater China Portfolio

High-quality portfolio with focus on growth sectors

Note: Excluding strategic investment

(% of direct investment, percent) 2014 2015 2016 2017 2Q17 3Q17 4Q17 1Q18 2Q18

PC & components 19.1 16.5 21.6 29.2 27.3 26.9 29.2 30.9 13.1

Consumer & services 30.9 43.5 35.4 26.6 29.4 28.9 26.6 29.6 46.4

Semiconductor 8.6 7.8 9.8 13.4 10.6 12.1 13.4 8.7 6.3

Industrial & manufacturing 22.9 14.8 15.5 12.7 15.1 14.2 12.7 13.6 17.9

Solar 5.0 4.7 3.9 6.8 4.4 5.6 6.8 9.0 8.9

Optical 4.4 3.1 2.7 3.9 2.9 3.0 3.9 1.4 0.4

Telecom 1.8 1.8 2.2 2.1 2.1 2.0 2.1 1.3 0.2

Financial 2.6 2.5 2.9 1.5 2.7 2.8 1.5 1.8 2.8

Others 4.6 5.3 6.0 3.7 5.5 4.5 3.7 3.7 4.0

Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Portfolio Breakdown

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This slide is part of a presentation by China Development Financial Holding Corporation and/or its affiliates (together, “CDF”) and is intended to be viewed as part of that presentation.

The presentation has not been updated since it was originally presented, and does not constitute a commitment by any CDF entity to underwrite, subscribe for or place any securities or

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43

CDIB Capital Group – Greater China Portfolio

Portfolio valuation has been affected by market movement

(% of total, percent) 2014 2015 2016 2017 2Q17 3Q17 4Q17 1Q18 2Q18

Listed 32.0 22.4 25.5 34.1 30.8 31.2 34.1 27.9 11.5

Emerging 5.0 13.5 8.9 7.3 6.8 7.5 7.3 5.9 6.5

Unlisted 63.0 64.1 65.6 58.6 62.4 61.3 58.6 66.2 82.0

Total market value 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Total market value (NT$mn) 44,473 39,855 34,866 30,702 33,674 32,183 30,702 29,108 23,634

Total capital invested (NT$mn) 42,097 37,141 34,180 31,045 31,777 31,424 31,045 28,293 22,382

Unrealized profits (NT$mn) 2,376 2,714 685 (342) 1,897 760 (342) 814 1,252

Market Value & Capital Invested - Greater China Portfolio

Note: Including strategic investment (excluding cash held by venture capital-related strategic investment) and direct investment

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The presentation has not been updated since it was originally presented, and does not constitute a commitment by any CDF entity to underwrite, subscribe for or place any securities or

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44

CDIB Capital Group – Greater China Portfolio (Cont’d)

Portfolio valuation has been affected by market movement

(NT$mn) 2014 2015 2016 2017 2Q17 3Q17 4Q17 1Q18 2Q18

Divestment 3,432 1,801 1,324 1,693 292 (28) 312 (248) 187

Dividends 744 1,007 585 686 44 595 10 2 29

Equity pickup 1,970 441 443 175 85 23 1 154 (138)

Remuneration 65 30 51 50 13 21 8 2 2

Impairment (1,103) (920) (915) (902) (331) (67) (503) 0 0

Valuation gain/loss - - - - - - - 965 467

Realized profits 5,108 2,359 1,488 1,701 103 544 (173) 875 548

Unrealized profits 2,376 2,714 685 (342) 1,897 760 (342) 814 1,252

Realized & Unrealized Gains/ Losses - Greater China Portfolio

Note: Including strategic investment and direct investment

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The presentation has not been updated since it was originally presented, and does not constitute a commitment by any CDF entity to underwrite, subscribe for or place any securities or

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45

CDIB Capital Group – International Portfolio

Portfolio value above par and further appreciation expected

(% of international portfolio, percent) 2014 2015 2016 2017 2Q17 3Q17 4Q17 1Q18 2Q18

Third-party funds 55.1 33.7 42.1 50.4 45.4 45.8 50.4 50.9 51.3

Direct investment and co-investment 44.9 66.3 57.9 49.6 54.6 54.2 49.6 49.1 48.7

Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Total market value (NT$mn) 20,579 13,954 13,489 12,368 13,978 13,652 12,368 12,219 13,914

Total capital invested (NT$mn) 17,180 11,080 11,055 10,518 11,348 11,340 10,518 10,540 11,270

Unrealized profits (NT$mn) 3,399 2,873 2,434 1,849 2,629 2,312 1,849 1,679 2,645

Market Value & Capital Invested - International Portfolio

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46

CDIB Capital Group – International Portfolio (Cont’d)

Portfolio value above par and further appreciation expected

(NT$mn) 2014 2015 2016 2017 2Q17 3Q17 4Q17 1Q18 2Q18

Third-party funds 1,155 400 284 616 119 270 172 243 70

Direct investment and co-investment 238 883 672 1,916 586 130 1,200 450 707

Realized profits 1,393 1,283 957 2,532 705 400 1,372 693 776

Unrealized profits 3,399 2,873 2,434 1,849 2,629 2,312 1,849 1,679 2,645

Realized & Unrealized Gains/ Losses - International Portfolio

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47

Financial Highlights6.

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48

Financial Snapshots – CDF

Solid balance sheet with improving financial leverage

CDF (consolidated) 2013 2014 2015 2016 2017

Total assets (NT$bn) 647.9 917.6 866.7 892.2 2,392.5

Total net worth (NT$bn) 169.1 173.9 168.8 167.1 249.2

Total assets/ net worth (X) 3.8 5.3 5.1 5.3 9.6

Net profits (NT$bn)1 8.3 10.8 8.5 5.9 11.7

EPS (NT$/ share) 0.56 0.73 0.58 0.40 0.80

Book value per share (NT$/ share) 11.05 11.41 11.18 11.17 11.60

Cash dividend per share (NT$/ share) 0.40 0.60 0.50 0.50 0.60

Adjusted ROAE (%)2 5.3 6.5 5.1 3.6 7.1

ROAA (%) 1.4 1.4 1.0 0.7 0.8

Note: 1. Excluding profits attributable to non-controlling interests; 2. Adjusted ROAE excludes non-controlling interests; 3. IFRS-compliant for periods beginning on or after January 1, 2013

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The presentation has not been updated since it was originally presented, and does not constitute a commitment by any CDF entity to underwrite, subscribe for or place any securities or

to extend or arrange credit or to provide any other services.

49

Financial Snapshots – China Life

China Life (consolidated) 2013 2014 2015 2016 2017

First-year premium (NT$bn) 114.4 83.9 83.1 90.6 80.2

Total premium (NT$bn) 177.2 154.5 162.2 191.1 206.4

Investment income (NT$bn) 31.6 39.2 47.2 47.1 47.4

Net profits (NT$bn) 6.0 6.5 9.2 9.5 9.1

EPS (NT$/ share) 1.75 1.88 2.64 2.50 2.40

Total assets (NT$bn) 977.6 1,107.3 1,202.6 1,323.7 1,465.7

Total net worth (NT$bn) 62.5 74.3 82.6 81.1 95.3

ROAE (%) 9.0 9.5 11.7 11.6 10.3

ROAA (%) 0.7 0.6 0.8 0.8 0.7

Note: In addition to KGI Securities’ 9.63% stake in China Life, CDF successfully completed its tender offer to acquire 25.33% (or 880mn common shares) of China Life on September 13, 2017, thereby

becoming the largest shareholder in China Life

Solid operation results supported by sustainable business growth and enhanced recurringinvestment income

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to extend or arrange credit or to provide any other services.

50

Financial Snapshots – KGI Bank

Improving profit source

KGI Bank (consolidated) 2013 2014 2015 2016 2017

Total assets (NT$bn) 167.1 166.9 546.2 572.1 590.1

Total net worth (NT$bn) 18.3 18.9 57.9 58.9 61.4

Total assets/ net worth (X) 9.1 8.8 9.4 9.7 9.6

Net profits (NT$bn)1 3.1 2.4 5.2 3.8 3.2

EPS (NT$/ share) 2.00 1.55 1.13 0.83 0.69

Book value per share (NT$/ share) 12.01 12.36 12.57 12.79 13.33

CAR ratio (%) 13.6 12.9 15.0 13.2 14.2

ROAE (%) 18.1 10.6 9.2 6.6 5.32

ROAA (%) 1.9 1.0 0.9 0.7 0.5

Note: 1. Excluding profits attributable to non-controlling interests; 2. The adjusted ROAE, which excluded the impact derived from the reduction of deferred tax asset (NT1.2bn), rose to 7.3% in 2017; 3.

2015 was the pro-forma figures post CDIB Capital Group business transfer; 4. IFRS-compliant for periods beginning on or after January 1, 2013

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The presentation has not been updated since it was originally presented, and does not constitute a commitment by any CDF entity to underwrite, subscribe for or place any securities or

to extend or arrange credit or to provide any other services.

51

Financial Snapshots – KGI Securities

Leading securities firm in Taiwan with extensive network presence

KGI Securities (consolidated) 2013 2014 2015 2016 2017

Total assets (NT$bn) 242.2 284.5 274.5 274.4 277.0

Total net worth (NT$bn) 74.7 64.5 64.6 63.6 62.0

Total assets/ net worth (X) 3.2 4.4 4.2 4.3 4.5

Net profits1 (NT$bn) 4.0 3.2 2.6 2.5 8.2

EPS (NT$/ share) 0.87 0.75 0.67 0.68 2.48

Book value per share (NT$/ share) 14.92 16.10 16.13 17.22 19.4

CAR ratio (%) 371.0 343.0 339.0 329.0 296.0

ROAE (%) 5.6 4.8 4.2 3.9 13.3

ROAA (%) 1.8 1.3 0.9 0.9 2.9

Note: 1. Excluding profits attributable to non-controlling interests; 2. IFRS-compliant for periods beginning on or after January 1, 2013

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The presentation has not been updated since it was originally presented, and does not constitute a commitment by any CDF entity to underwrite, subscribe for or place any securities or

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52

Financial Snapshots – CDIB Capital Group

Leading merchant bank in Taiwan with focus on private equity

CDIB Capital Group (consolidated) 2013 2014 2015 2016 2017

Total assets (NT$bn) 413.9 471.9 72.8 73.2 55.3

Total net worth (NT$bn) 114.4 114.0 69.6 70.1 53.1

Total assets/ net worth (X) 3.6 4.1 1.0 1.0 1.0

Net profits1 (NT$bn) 6.0 8.4 4.9 1.5 3.4

EPS (NT$/ share) 0.98 1.40 1.49 0.71 1.63

Book value per share (NT$/ share) 18.52 20.09 33.76 33.99 25.95

CAR ratio (%) 18.6 17.7 108.6 148.4 N/A

ROAE (%) 5.3 7.4 5.3 2.1 5.5

ROAA (%) 1.7 1.9 1.8 2.1 5.3

Note: 1. Excluding profits attributable to non-controlling interests; 2. IFRS-compliant for periods beginning on or after January 1, 2013

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The presentation has not been updated since it was originally presented, and does not constitute a commitment by any CDF entity to underwrite, subscribe for or place any securities or

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53

Quarterly Financial Snapshots – CDF

Solid balance sheet with improving financial leverage

CDF (consolidated) 2Q17 3Q17 4Q17 1Q18 2Q18

Total assets (NT$bn) 929.1 2,365.4 2,392.5 2,533.8 2,700.4

CDIB Capital Group (NT$bn) 55.3 54.1 55.3 58.7 55.5

KGI Securities (NT$bn) 289.7 297.1 276.9 297.6 313.1

KGI Bank (NT$bn) 594.4 584.5 590.1 666.7 709.5

China Life (NT$bn) - 1,424.8 1,465.7 1,509.9 1,621.0

AMC2(NT$bn) 3.3 3.3 3.4 3.4 3.3

Total net worth (NT$bn) 164.5 238.1 249.2 246.1 230.1

Total assets/ net worth (X) 5.6 9.9 9.6 10.3 11.7

Net profits (NT$bn)1 1.7 5.4 2.7 3.3 2.8

CDIB Capital Group (NT$bn) 0.7 0.9 0.9 1.3 1.2

KGI Securities (NT$bn) 0.7 5.6 1.4 1.0 1.1

KGI Bank (NT$bn) 0.8 1.2 0.4 0.7 0.9

China Life (NT$bn) - 5.3 1.5 3.7 2.6

AMC (NT$mn) 5.4 8.1 74.0 31.7 11.9

EPS (NT$/ share) 0.12 0.37 0.19 0.23 0.19

Book value per share (NT$/ share) 10.99 11.22 11.60 11.70 11.1

Adjusted Annualized ROAE (%)2 4.2 13.4 6.6 7.7 6.7

Annualized ROAA (%) 0.7 1.3 0.6 0.9 0.6

Note:1. Net profits excluded non-controlling interests; 2. Adjusted annualized ROAE excludes non-controlling interests

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The presentation has not been updated since it was originally presented, and does not constitute a commitment by any CDF entity to underwrite, subscribe for or place any securities or

to extend or arrange credit or to provide any other services.

54

Quarterly Financial Snapshots – China Life

Continued asset growth driven by steady total premium income

China Life (consolidated) 2Q17 3Q17 4Q17 1Q18 2Q18

First-year premium (NT$bn) 17.1 20.5 21.1 30.6 39.4

Total premium (NT$bn) 48.4 54.9 53.1 65.8 71.1

Investment income (NT$bn) 11.9 15.9 12.3 12.1 13.2

Net profits (NT$bn) 2.3 5.3 1.5 3.7 2.6

EPS (NT$/ share) 0.61 1.39 0.39 0.97 0.68

Total assets (NT$bn) 1,382.4 1,424.8 1,465.7 1,509.8 1,621.0

Total net worth (NT$bn) 85.4 86.2 95.3 91.5 81.1

Note: 1. In addition to KGI Securities’ 9.63% stake in China Life, CDF successfully completed its tender offer to acquire 25.33% (or 880mn common shares) of China Life on September 13, 2017,

thereby becoming the largest shareholder in China Life

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This slide is part of a presentation by China Development Financial Holding Corporation and/or its affiliates (together, “CDF”) and is intended to be viewed as part of that presentation.

The presentation has not been updated since it was originally presented, and does not constitute a commitment by any CDF entity to underwrite, subscribe for or place any securities or

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55

KGI Bank (consolidated) 2Q17 3Q17 4Q17 1Q18 2Q18

Total assets (NT$bn) 594.4 584.5 590.1 666.7 709.5

Total net worth (NT$bn) 59.9 61.0 61.4 61.1 58.4

Total assets/ net worth (X) 9.9 9.6 9.6 10.9 12.1

Net profits (NT$bn)1 0.8 1.2 0.4 0.7 0.9

EPS (NT$/ share) 0.16 0.25 0.08 0.15 0.19

Book value per share (NT$/ share) 13.00 13.25 13.33 13.26 12.68

CAR ratio (%) 12.9 13.0 14.2 12.7 11.6

Annualized ROAE (%) 5.1 7.8 2.5 4.6 5.7

Annualized ROAA (%) 0.5 0.8 0.3 0.5 0.5

Note: 1. Excluding profits attributable to non-controlling interests

Quarterly Financial Snapshots – KGI Bank

Solid capitalization laying foundation for potential profit growth

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56

Quarterly Financial Snapshots – KGI Securities

Profitability has been affected by market volatility

KGI Securities (consolidated) 2Q17 3Q17 4Q17 1Q18 2Q18

Total assets (NT$bn) 289.7 297.1 276.9 297.6 313.1

Total net worth (NT$bn) 62.0 59.2 61.5 62.5 61.3

Total assets/ net worth (X) 4.7 5.0 4.5 4.8 5.1

Net profits (NT$bn) 1 0.7 5.6 1.4 1.0 1.1

EPS (NT$/ share) 0.20 1.65 0.48 0.32 0.33

Book value per share (NT$/ share) 16.83 18.65 19.39 19.73 17.89

Annualized ROAE (%) 4.5 36.9 9.5 6.4 7.0

Annualized ROAA (%) 1.0 7.6 2.0 1.4 1.4

Note: 1. Net profits excluded non-controlling interest

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57

Quarterly Financial Snapshots – CDIB Capital Group

Asset monetization has been affected by capital market movement

CDIB Capital Group (consolidated) 2Q17 3Q17 4Q17 1Q18 2Q18

Total assets (NT$bn) 55.3 54.1 55.3 58.7 55.5

Total net worth (NT$bn) 50.7 51.9 53.1 56.4 52.9

Total assets/ net worth (X) 1.1 1.0 1.0 1.0 1.0

Net profits (NT$bn)1 0.7 0.9 0.9 1.3 1.2

EPS (NT$/ share) 0.34 0.42 0.45 0.65 0.58

Book value per share (NT$/ share) 24.57 25.13 25.95 27.61 25.90

Annualized ROAE (%) 4.9 6.8 7.0 9.7 8.7

Annualized ROAA (%) 4.4 6.4 6.7 9.4 8.4

Note: 1. Net profits excluded non-controlling interests

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58

Steadily Increasing FINI HoldingsAs of June 30, 2018

Top 10 Shareholders Of CDF

1. Shin Wen Investment 4.35%

2. China Life Insurance 3.76%

3. Cathay Life Insurance 2.88%

4. Jing Kwan Investment 2.79%

5. Bank of Taiwan 1.92%

6. KGI Securities 1.89%

7.Vanguard Emerging Markets Stock Index Fund, A

series of Vanguard International Equity Index Funds1.61%

8. Government of Singapore 1.53%

9. Norges Bank 1.28%

10.

JPMorgan Chase Bank N.A., Taipei Branch in

custody for Vanguard Total International Stock Index

Fund, a series of Vanguard Star Funds

1.27%

Total 23.28%

Source: Taiwan Stock Exchange

FINI shareholdings, percent

Note: Shareholding percentage will be updated after the registration date of the Regular

Shareholders’ Meeting and ex-dividend each year

CDF Shareholding Structure

FINI holdings exceed 29.4%

Note: As of April 30 for 2014, April 14 for 2015, March 18 for 2016, April 18 for 2017, April 24 for 2018

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59

1st

2nd

3rd Coco Coco

DCF DCF DCF

Coco Coco

IPO PriceIndependent

Appraisal

DCF NAV NAV

IPO Candidate

Market priceIs the issuer

listed?

Early StageExpansion SurveillanceStable

Closing price on

the valuation date

* liquidity discount

factor1

Market price

Emerging Stocks

Valuation by stage of development2

Yes

Private Placement

Listed / OTC

Average monthly turnover in

the latest quarter > average median turnover of l isted

companies during the past one year?

Valuation on the

valuation date *

liquidity discount

factor1

Is a bench marking

price

available?

Is a binding price available in the next 3

months?

Fund-raising price or put option

Is a market price available in the past 3

months?

No

Yes

Yes

Yes Yes

Yes

YesYes

No

No No

No

No

No

No

Valuation Method

Valuation system co-developed with KPMG has improved transparency

Note 2: Stages of development

IPO

Candidate

The company has a qualified IPO

plan or has signed contracts with

recommended securities firms

Stable The company has main

operations >2 years with (1)

positive retained earnings for the

recent financial years, or (2) net

profits for the past 2 years

Expansion Main operations >2 years with net

loss for the recent financial years

Early Main operations <2 years

(excluding biotech companies still

in the R&D-phase)

Surveillance The company is in trouble (e.g.,

termination of operations or

liquidation)

Valuation

Method(s) Acronyms

DCF Discounted cash flow

Coco Competitor comparison

NAV Net asset value

Note 1: Based on

Black Scholes Model Daily

Average

Price

Range

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to extend or arrange credit or to provide any other services.

60

CDF & Principal Subsidiaries

Organization structure

CDF and principal subsidiaries

Oversea

Greater China Region

CDC Finance

& Leasing

Corp.

華開租賃

(76.04%)

CDIB

Private Equity

(Fujian) Co. Ltd.

華開(福建)股權

投資管理

(70%)

CDIB Yida

Private Equity (Kunshan)

Co. Ltd.

華創毅達 (昆山)

股權投資管理

(65%)

*** CCIC is engaged to manage CDIB

Global Markets Limited, CDIB Capital

Investment I, II Limited and CDIB Asia

Partners Limited

CDIB Private Equity Mgmt.

(Fujian) Enterprise (Limited

Partnership)

華創(福建)股權投資管理

企業(有限合夥)

(70%)

CDIB Yida Private Equity Mgmt.

(Kunshan) Enterprise (Limited

Partnership)

昆山華創毅達股權投

資管理企業

(有限合夥企業) (65%)

CDIB Capital

International

(Hong Kong)

Corp. Ltd.

(100%)

CDIB Capital

International

(USA) Corp.

(100%)

CDIB Capital

International

(Korea) Corp.

(100%)

CDIB Capital

Asia Partners

Limited

(100%)

Chung Hwa

Growth 4 Asset

Mgmt. Corp.

中華成長四

資產管理

(100%)

CDIB Capital Innovation

Advisors Corp.

開發創新管理顧問

(60%)

CDIB Private Equity

(Hong Kong) Co. Ltd.

(100%)

CDIB Venture Capital

(HK) Corp. Ltd.

(100%)

**CDIB Private

Equity (China)

Corp. provides

advisory service

to general

partners of CDIB

Yida Private

Equity (Kunshan)

Co. Ltd./ CDIB

Private Equity

(Fujian) Co. Ltd.

CDIB

Private Equity (China) Corp.

中華開發股權投資管理

(100%)

CDIB Capital

International

Corp. (CCIC)

(100%)

CDIB Global

Markets Limited

(100%)

CDIB Capital

Investment

I, II Limited

(100%)

CDIB

International

Leasing Corp.

中華開發

國際租賃

(100%)

* CDIB Capital

Management

Corporation is

engaged to

manage CDIB

Venture Capital

Corporation

CDIB Capital

Management

Corporation

中華開發

資本管理顧問

(100%)

CDIB Venture Capital

Corporation

中華開發

創業投資

(100%)

CDIB

Management

Consulting

Corp.

中華開發

管理顧問

(100%)

Development

Industrial Bank

Asset Mgmt. Corp.

開發工銀

資產管理

(100%)

Chung Hwa

Growth 3 Asset

Mgmt. Corp.

中華成長三

資產管理

(100%)

China Development Asset Management Corp.

中華開發資產管理

China Development Financial Holdings

中華開發金控

CDIB Capital Group

中華開發資本

China Life

中國人壽

KGI Securities

凱基證券

KGI Bank

凱基銀行

56% 20% 58.34% 27.08%


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