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1
2Q19 Performance Review
August 2019
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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
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 11
SECTION 4 KGI Securities 27
SECTION 5 CDIB Capital Group 33
SECTION 6 Financial Highlights 43
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to extend or arrange credit or to provide any other services.
4
Business Overview1.
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5
KGI Securities reported profit of NT$1,005mn in 2Q19, thanks to anticipation for a rate cut, a
better performance in bond trading and resumed profitability from brokerage business and
overseas subsidiaries
CDF – 2Q19 Results
China Life was the largest profit contributor
CDIB Capital Group contributed profit of NT$1,275mn in 2Q19
Unrealized gains amounted to NT$614mn as of June 30, 2019
CDIB Capital Group will continue asset monetization and focus on asset management business;
assets under management exceeded NT$43.1bn as of June 30, 2019
CDIB Capital Group
Growing corporate and mortgage loans continued to boost lending balance, whilst reducing
the foreign-currency bond position in the banking book portfolio; KGI Bank registered profit of
NT$919mn in 2Q19
KGI Bank reported an NPL ratio of 0.14%, LLR coverage ratio of 1.27%, and NPL coverage
ratio of 918.7% as of June 30, 2019, compared favorably with the industry average of 0.23%,
1.39%, and 595.9%, respectively
KGI Bank
KGI Securities
Note: 1. CDF, together with KGI Securities, owns 34.28% of China Life
China Life’s 2Q19 net profit was NT$4.6bn; CDF recognized an investment gain of NT$1.3bn
from China Life in 2Q19
Recorded first year premium income (FYP) of NT$80.8bn in 1H19, up 15% YoY
Maintained sufficient capital level above 300%; as of the end of June 2019, net worth
rebounded NT$56.8bn from the end of last year to NT$129.9bn
China Life1
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6
Profit contribution by subsidiary under CDF, NT$mn
Profit contribution by subsidiary
China Life Contributed Most Profit in 2Q19 Among Subsidiaries
CDF – 2Q19 Net Profit
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 2Q19 was NT$4.6bn, whilst CDF recognized an investment income of NT$1.3bn from China Life
in 2Q19, adjusted for the purchase price allocation adjustment and the recognition of investment income on a pro-rata basis
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7
Profit contribution by subsidiary
CDF – 1H19 Net Profit
Profit contribution by subsidiary under CDF, NT$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 1H19 was NT$7.5bn, whilst CDF recognized an investment income of NT$2.0bn from China Life
in 1H19, adjusted for the purchase price allocation adjustment and the recognition of investment income on a pro-rata basis
CDIB Capital Group Contributed Most Profit in 1H19 Among Subsidiaries
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8
China Life2.
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9
2015 2016 2017 2018 1H19
11.69% 11.57%10.30%
12.09%
14.68%
2015 2016 2017 2018 1H19
82.6 81.1 95.3
73.1
129.9
648.8
1,107.3
1,323.7 1,465.7
1,711.4
1,896.8
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000Total Assets
2015~2019
Ranked among the top 5% of
the Corporate Governance
Evaluation Awards for
5 consecutive years
1963
Established
Listed on the
Taiwan Stock
Exchange
1995
2003Professional
management team
joined
Acquired
Winterthur Taiwan
from AXA
2007
Acquired
PCA Life
2009
2010Jointly invested
CCB Life
with China Construction Bank
2008Avoid the subprime
turmoil during
financial crisis
2016 Included into
TWSE CG 100
Index
Maintaining steady asset growth and sufficient capital level
Shareholders’ Equity Return on Equity NT$bn
Total assets
Surpassed
NT$1 trillion
2014
CDF holds 34.96%
shares of China Life after the
completion
of the tender offer
2017
◆
◆
◆
◆
◆
2018Completed the acquisition of
Allianz Taiwan Life’s
traditional policies and
system integration
Included into
FTSE4Good
TIP Taiwan
ESG Index
1H19
NT$bn
◆
China Life – Performance Highlights
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to extend or arrange credit or to provide any other services.
10
2015 2016 2017 2018 1H18 1H19
79.1 100.5
126.2 151.5
66.9 64.7
83.1
90.6
80.2
150.3
70.0 80.8
FYP Renewal premium
2015 2016 2017 2018 1H18 1H19
9.17 9.47
9.08
10.18
6.26
7.45
Total Premium
Delivering solid operational results and premium growth
Net Profits
162.2145.5
191.1206.4
136.9
301.8
6%
China Life – Performance Highlights
NT$bn NT$bn
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11
KGI Bank3.
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12
KGI Bank – Profitability
Pre-provision operating profits (PPOP), NT$bn
Note: 2015 were pro-forma figures, including corporate banking and global market business
transferred from CDIB Capital Group
Core Income Saw Steady GrowthNet profit, NT$bn
Note: 2015 were pro-forma figures, including corporate banking and global market business
transferred from CDIB Capital Group
Core income growth remained steady
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13
KGI Bank – Profitability (Cont’d)
ROAA, percent
ROAE, percent
Note: 2015 were pro-forma figures, including corporate banking and global market business
transferred from CDIB Capital Group
Note: 2015 were pro-forma figures, including corporate banking and global market business
transferred from CDIB Capital Group
Core Income Saw Steady Growth
Core income growth remained steady
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14
Steady growth in net revenue generated from consumer and corporate banking
KGI Bank – Net Revenue
(NT$mm) 2015 2016 2017 2018 2Q18 3Q18 4Q18 1Q19 2Q19
Consumer banking1 5,334 4,835 4,992 5,355 1,370 1,354 1,311 1,320 1,349
Corporate banking2 2,646 2,659 2,932 3,320 826 848 847 933 972
Global markets 2,442 2,935 3,087 (180) 4 663 (887) 206 364
Other 536 359 482 574 205 93 139 194 132
Total net revenue 10,958 10,789 11,493 9,069 2,404 2,958 1,409 2,654 2,817
(% of total) 2015 2016 2017 2018 2Q18 3Q18 4Q18 1Q19 2Q19
Consumer banking1 48.7 44.8 43.4 59.0 57.0 45.8 93.0 49.8 47.9
Corporate banking2 24.1 24.6 25.5 36.6 34.3 28.7 60.1 35.2 34.5
Global markets 22.3 27.2 26.9 (2.0) 0.2 22.4 (62.9) 7.8 12.9
Other 4.9 3.3 4.2 6.3 8.5 3.1 9.8 7.2 4.7
Total net revenue 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Note: 1. Including consumer banking and wealth management; 2. Including corporate banking, commercial banking and merchant banking; 3. 2015 were the pro-forma figures post CDIB Capital Group
business transfer
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15
Diversified loan portfolio with better loan growth momentum than peers
KGI Bank – Loans
(NT$bn) 2015 2016 2017 2018 2Q18 3Q18 4Q18 1Q19 2Q19
Corporate loans 145.2 175.7 200.8 228.3 229.7 229.5 228.3 233.3 243.8
Large corporations 133.7 161.1 181.8 204.3 209.1 208.9 204.3 204.5 215.5
SMEs 11.6 14.5 19.0 24.0 20.6 20.6 24.0 28.8 28.3
Secured consumer loans 40.7 45.8 60.8 74.7 68.8 72.1 74.7 76.0 78.5
Mortgage 40.6 45.7 60.7 74.7 68.7 72.1 74.7 75.9 78.4
Others 0.1 0.0 0.1 0.0 0.0 0.0 0.0 0.0 0.0
Unsecured consumer loans 35.0 34.5 36.0 37.2 36.7 37.0 37.2 37.2 37.7
Cash card 16.2 15.0 14.5 13.8 14.1 14.0 13.8 13.5 13.3
Personal loans 18.8 19.5 21.5 23.3 22.5 23.0 23.3 23.7 24.3
Total loans 220.9 255.9 297.7 340.2 335.1 338.6 340.2 346.5 360.0
Credit card 2.7 2.7 2.7 2.8 3.3 3.0 2.8 2.7 3.3
AR/ forfaiting/ China advance 32.3 18.6 16.8 17.6 21.1 20.7 17.6 16.1 13.7
Guarantees 12.0 10.7 11.9 14.8 14.8 15.9 14.8 20.7 21.2
Total credit 268.0 287.8 329.1 375.5 374.2 378.1 375.5 385.9 398.2
Total loans YoY/ QoQ (%) (3.6) 15.8 16.3 14.3 5.6 1.0 0.5 1.8 3.9
Total credit YoY/ QoQ (%) (10.6) 7.4 14.3 14.1 6.1 1.0 (0.7) 2.8 3.2
Note: 2015 were the pro-forma figures post CDIB Capital Group business transfer
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16
KGI Bank – Loans (Cont’d)
(% of total) 2015 2016 2017 2018 2Q18 3Q18 4Q18 1Q19 2Q19
Corporate loans
Large corporations 60.5 63.0 61.1 60.0 62.4 61.7 60.0 59.0 59.9
SMEs 5.2 5.7 6.4 7.1 6.1 6.1 7.1 8.3 7.9
Secured consumer loans
Mortgage 18.4 17.9 20.4 21.9 20.5 21.3 21.9 21.9 21.8
Others 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Unsecured consumer loans
Cash card 7.3 5.9 4.9 4.1 4.2 4.1 4.1 3.9 3.7
Personal loans 8.5 7.6 7.2 6.9 6.7 6.8 6.9 6.9 6.8
Total loans 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Foreign currency loans 20.5 24.7 28.2 29.2 30.7 29.8 29.2 39.3 40.1
Note: 2015 were the pro-forma figures post CDIB Capital Group business transfer
Diversified loan portfolio with better loan growth momentum than peers
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17
KGI Bank – Corporate Banking Loan Book
Well-diversified loan portfolio with focus on service and technology industries
Loan Breakdown By Industry
(% of total loan) 2015 2016 2017 2018 2Q18 3Q18 4Q18 1Q19 2Q19
Services 26.0 27.0 32.0 38.2 36.2 36.7 38.2 38.8 39.8
Information, communication, tech 29.5 26.2 24.7 21.6 23.2 22.6 21.6 19.2 20.7
Real estate 9.6 7.6 9.1 9.5 8.2 7.9 9.5 10.8 9.8
Plastics, rubber 9.4 8.4 7.9 6.6 7.2 7.5 6.6 6.8 6.0
Transportation 7.3 7.7 5.0 3.5 4.4 4.5 3.5 4.7 3.8
Energy 2.2 1.8 1.6 2.2 2.3 2.2 2.2 2.1 3.1
Textiles 1.3 2.1 2.0 1.6 2.2 1.9 1.6 1.6 1.8
Others 14.7 19.2 17.6 16.8 16.3 16.6 16.8 16.0 15.0
Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Total loans (NT$bn) 145.2 175.7 200.8 228.3 229.7 229.5 228.3 233.3 243.8
Note: 2015 were the pro-forma figures post CDIB Capital Group business transfer
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18
Deposit breakdown, percent; total deposits, NT$bn
Demand Deposit Ratio Has Been Maintained Within a Stable Range
Continue to optimize deposit mix to reduce funding cost
KGI Bank – Deposits
Note: 2015 were the pro-forma figures post CDIB Capital Group business transfer
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19
Loan-to-deposit ratio has been maintained within a stable range
KGI Bank – Liquidity
Loan-to-deposit ratio (LDR), percent
Note: 2015 were the pro-forma figures post CDIB Capital Group business transfer
Loan-To-Deposit Ratio Has Stabilized
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20
KGI Bank – Interest Spread & Net Interest Margin (NIM)
Overall interest spread, percent
Overall Interest Spread Improved due to Lower Cost of Funds for Foreign Currency Deposits
NIM, percent
NIM Improved Slightly due to Lower Cost of Funds for Foreign Currency Deposits
Note: 2015 were the pro-forma figures post CDIB Capital Group business transfer
Note: 2015 were the pro-forma figures post CDIB Capital Group business transfer
Interest spread and NIM have improved slightly
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21
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$mn; loan loss reserve coverage (LLR), percent
Stable LLR Coverage
Note: 2015 were the pro-forma figures post CDIB Capital Group business transfer
Note: 1. 2015 were the pro-forma figures post CDIB Capital Group business transfer Note: Banking peers’ loan loss reserve coverage was 1.39% as of June 30, 2019
Note: Banking peers’ average NPL ratio was 0.23% and peer average NPL coverage ratio was
595.9% as of June 30, 2019
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22
Actively boost credit card spending
KGI Bank – Credit Cards & Cash Cards
2015 2016 2017 2018 2Q18 3Q18 4Q18 1Q19 2Q19
Credit card
Credit cards in circulation ('000) 506 498 452 419 424 425 419 418 424
Active credit cards ('000) 211 198 192 193 193 192 193 195 201
Monthly spending per credit card (NT$) 1,900 2,124 2,314 2,545 2,816 2,417 2,413 2,423 2,732
Spending (NT$mn) 11,538 12,696 12,546 12,793 3,586 3,082 3,032 3,042 3,472
Credit card revolving (NT$mn) 1,153 1,102 1,081 1,087 1,059 1,076 1,087 1,074 1,086
Cash card
Cash cards with credit line ('000) 516 502 494 488 492 490 488 486 484
Cash cards with balances ('000) 355 343 335 328 332 330 328 326 325
Cash card loan outstanding (NT$mn) 16,187 14,986 14,516 13,837 14,118 13,985 13,837 13,490 13,345
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23
KGI Bank – Net Fee Income
Continue to enhance fee income
Net Interest Income & Net Fee Income
Note: 2015 were the pro-forma figures post CDIB Capital Group business transfer
(NT$mn) 2015 2016 2017 2018 2Q18 3Q18 4Q18 1Q19 2Q19
Net interest income 7,327 5,763 6,385 7,147 1,825 1,812 1,731 1,638 1,668
Net fee income 1,861 1,927 2,017 2,275 588 555 545 605 612
(NT$mn) 2015 2016 2017 2018 2Q18 3Q18 4Q18 1Q19 2Q19
Wealth management 926 953 1,151 1,176 292 277 267 259 284
Loans 399 391 387 474 130 121 116 190 193
TMU 358 421 293 463 124 120 117 111 91
Cards 178 162 185 162 41 37 45 45 44
Net fee income 1,861 1,927 2,017 2,275 588 555 545 605 612
Net Fee Income Mainly Generated From Wealth Management
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24
Cost-to-income ratio, percent
Cost-to-Income Ratio Has Been Maintained Within a Reasonable Range During Business Expansion
Steady Cost-to-Income Ratio due to Good Control of Expenses
KGI Bank – Efficiency
Note: 2015 were the pro-forma figures post CDIB Capital Group business transfer Note: A higher cost-to-income ratio in 4Q18 was due to trading and evaluation losses; the ratio returned to a reasonable range as revenue improved
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25
Capital adequacy ratio, percent
New Issuance of Subordinated Debt to Strengthen Capital Position
Solid capital position
KGI Bank – Capitalization
Tier-1 capital ratio, percent
Note: 2015 were the pro-forma figures post CDIB Capital Group business transfer
Note: 2015 were the pro-forma figures post CDIB Capital Group business transfer
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26
KGI Bank – Global Markets
(% of total market value) 20154 2016 2017 2018 2Q18 3Q18 4Q18 1Q19 2Q19
TW GB, municipal 52.8 74.3 55.3 55.8 52.4 53.0 55.8 58.2 55.4
TW negotiable CD +
commercial paper0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Foreign GB 0.0 7.3 0.0 0.8 0.9 0.9 0.8 0.9 1.5
TW corporate/ bond & bank
debenture0.0 0.0 0.0 1.1 1.2 1.1 1.1 1.1 1.2
Foreign corporate/ bond &
bank debenture39.9 14.7 40.0 40.5 43.6 43.1 40.5 37.9 38.7
Equity 7.3 3.7 4.6 1.9 1.9 2.0 1.9 1.9 3.2
Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Total market value1 (NT$mn) 74,202 128,669 115,160 141,585 127,608 133,021 141,585 137,452 126,136
Total cost1 (NT$mn) 74,953 131,072 115,927 144,215 129,463 134,980 144,215 137,924 125,892
Unrealized profits2 (NT$mn) (751) (2,403) (767) (2,630) (1,855) (1,959) (2,630) (472) 244
Realized profits3 (NT$mn) 3,612 2,714 2,801 709 373 763 709 781 998
Breakdown of Banking Book Portfolio (Market Value)
Note: 1. Excluding bank deposits, interbank lending, repos, bonds and financial assets recorded at trading book (including bond trading and derivatives); 2. Unrealized loss resulting from higher bond
yields and widening credit spreads in European bonds; 3. Realized profits include dividends and interest received as well as realized gains on disposal; 4. 2015 are pro-forma figures post CDIB Capital
Group business transfer
Portfolio is focused on high-quality government/ corporate bonds & blue-chip stocks
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27
KGI Securities4.
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28
KGI Securities – Net Revenue
Brokerage commissions were the main revenue driver
Net revenue breakdown, NT$mn
Brokerage Commissions Were KGI Securities’ Main Revenue Driver In 2Q19
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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29
(NT$mn) 2015 2016 2017 2018 2Q18 3Q18 4Q18 1Q19 2Q19
Net brokerage/ futures/ warrant commissions 8,159 6,208 7,733 8,556 2,256 2,089 1,918 1,663 1,937
Net underwriting fees 667 1,041 920 728 154 225 140 107 173
Net fees & commissions 8,826 7,248 8,652 9,284 2,409 2,314 2,057 1,770 2,110
Net interest income 2,398 1,899 1,869 1,836 524 484 350 294 443
Net investment income 2,246 3,368 6,699 1,733 1,158 602 (163) 1,055 438
Other revenue 577 1,050 1,609 493 (361) 224 251 267 237
Total net revenue 14,047 13,565 18,830 13,347 3,729 3,624 2,495 3,385 3,228
KGI Securities – Net Revenue (Cont’d)
Brokerage business remained the major income source
Note: The figures above included the contribution from overseas subsidiaries
Brokerage Commissions Resumed in 2Q19 on Capital Market Rebound
This slide is part of a presentation by China Development Financial Holding Corporation and/or its affiliates (together, “CDF”) and is intended to be viewed as part of that presentation.
The presentation has not been updated since it was originally presented, and does not constitute a commitment by any CDF entity to underwrite, subscribe for or place any securities or
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30
KGI Securities – Profit Breakdown
Resumed profitability from overseas subsidiaries
(NT$mn) 2015 2016 20171 2018 2Q18 3Q18 4Q18 1Q19 2Q19
Taiwan 1,943 3,201 7,227 2,932 872 1,351 15 1,047 1,281
overseas Subsidiaries 610 (718) 850 833 192 215 149 361 297
Hong Kong2 417 (1,044) 571 479 119 123 45 255 229
Thailand 192 327 279 354 74 92 104 106 68
Total 2,552 2,484 8,078 3,765 1,065 1,566 164 1,408 1,578
(% of total profits) 2015 2016 2017 2018 2Q18 3Q18 4Q18 1Q19 2Q19
Taiwan 76.1 128.9 89.5 77.9 81.9 86.3 9.2 74.3 81.2
overseas Subsidiaries
Hong Kong2
16.4 (42.1) 7.1 12.7 11.2 7.8 27.6 18.1 14.5
Thailand 7.5 13.2 3.4 9.4 6.9 5.9 63.2 7.6 4.3
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$3,834mn associated with KGI Securities’ stake in China Life in 3Q17; 2. Including Singapore and Indonesia subsidiaries
This slide is part of a presentation by China Development Financial Holding Corporation and/or its affiliates (together, “CDF”) and is intended to be viewed as part of that presentation.
The presentation has not been updated since it was originally presented, and does not constitute a commitment by any CDF entity to underwrite, subscribe for or place any securities or
to extend or arrange credit or to provide any other services.
31
KGI Securities – Brokerage & Margin Loans
Brokerage business provides a stable recurring income source
(NT$mn) 2015 2016 2017 2018 2Q18 3Q18 4Q18 1Q19 2Q19
Retail 2,722 2,196 3,226 3,501 1,011 876 734 618 727
Institutional 507 459 491 566 132 146 141 137 168
Total 3,229 2,655 3,717 4,067 1,143 1,022 876 754 896
Market share (%) 8.1 8.3 8.3 8.2 8.0 8.1 8.8 8.6 8.7
(NT$mn) 2015 2016 2017 2018 2Q18 3Q18 4Q18 1Q19 2Q19
KGIS Average Balance 23,675 18,771 21,622 22,737 20,913 19,429 13,004 12,401 12,534
Market share (%) 9.5 8.6 8.4 8.0 8.3 8.0 7.4 7.3 7.2
Breakdown Of Brokerage Commissions By Client Segment (Taiwan Only)
Margin Loans (Taiwan Only)
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32
KGI Securities – Investment Portfolio
High-quality investment portfolio
(% of total) 2015 2016 2017 2018 2Q18 3Q18 4Q18 1Q19 2Q19
Fixed-income 68.5 56.3 65.9 75.4 68.7 74.4 75.4 72.6 74.1
Corporate bond & financial debenture 26.5 37.9 40.0 54.6 40.1 48.3 54.6 53.6 61.5
Convertible bond 9.7 7.3 7.4 3.6 5.4 4.7 3.6 3.4 3.0
Exchangeable bond 0.0 0.0 0.2 0.0 0.1 0.0 0.0 0.0 0.0
Government bond 32.2 11.1 18.4 17.1 23.2 21.3 17.1 15.6 9.6
Stocks 27.9 38.5 26.4 15.5 23.7 17.9 15.5 18.5 16.5
Others 3.6 5.2 7.7 9.1 7.6 7.7 9.1 8.9 9.4
Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Total market value (NT$mn) 72,177 60,709 56,979 60,432 67,316 65,804 60,432 66,745 67,469
Note: 1. Includes hedged position for warrants; 2. Excludes overseas subsidiaries’ balance
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33
CDIB Capital Group5.
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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.
34
CDIB Capital Group – Direct Investment Portfolio
(NT$mn) 2015 2016 2017 2018 2Q18 3Q18 4Q18 1Q19 2Q19
Principal investment (Market value) 53,809 48,354 43,070 31,145 37,548 35,307 31,145 33,190 33,953
Greater China 39,855 34,866 30,702 18,962 23,634 21,962 18,962 20,531 19,680
International 13,954 13,489 12,368 12,183 13,914 13,345 12,183 12,659 14,273
Total capital invested 48,221 45,235 41,563 29,819 33,651 32,381 29,819 32,012 33,339
Greater China 37,141 34,180 31,045 19,181 22,382 20,842 19,181 20,133 20,593
International 11080 11,055 10,518 10,637 11,270 11,539 10,637 11,879 12,746
Unrealized profits 5,587 3,119 1,507 1,327 3,897 2,926 1,327 1,178 614
Greater China 2,714 685 (342) (219) 1,252 1,120 (219) 398 (914)
International 2,873 2,434 1,849 1,546 2,645 1,806 1,546 780 1,528
Monetization of direct investment portfolio will continue
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35
Region Taiwan Greater China International
Fund nameCreative
Fund
Healthcare
Fund
Growth
Fund
Innovation
Fund2
Ali
Fund
Hua Nan
Fund
Hua Dong
Fund
Yida
Healthcare
Fund
Asia
Partners
Fund
Funds
Partners
Fund
Global
Opportunities
Fund3
Fund sizeNT$1,500
mn
NT$1,750
mn
NT$4,540
mn
NT$1,290
mn
US$100
mn
RMB1,000
mn
RMB1,000
mn
RMB800
mn
US$405
mn
US$169
mn
US$117
mn
Vintage year 2013 2014 2017 2017 2016 2014 2015Under
processing 2014 2015 2018
Shareholding1 39.8% 34.3% 33.3% 23.3% 0.0% 35.0% 30.0%Anticipated
30%24.7% 0% 8.6%
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,
communications
and internet
Pharmaceuticals,
medical
equipment,
healthcare
consulting/
goods and
services
channels
Taiwanese,
South Korean
and US
companies in
Asia-Pacific
region that
seek long-term
prospects in
China
International
private equity
fund and
portfolio
Market leading
high-growth
companies,
mainly in
North America
and Asia
Pacific
CDIB Capital Group – Focusing On Asset Management
Continue to focus on fundraising
Note: 1. Ownership percentage of CCG and its subsidiaries; 2. Including the parallel fund “CDIB Capital Innovation Accelerator (Cayman) Limited” with fund size of NT$450mn; 3. Global Opportunities
Fund will complete its second closing in September 2019 with anticipated fund size reaching US$120mn
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to extend or arrange credit or to provide any other services.
36
CDIB Capital Group – Focusing On Asset Management (Cont’d)
Private-equity funds continue to bear fruit on steadily increasing portfolio valuation
Note: 1. Managed by CDIB Capital Group for global institutional investors; 2. 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; 3. Estimated figure
3
2014 2015 2016 2017 2018 2Q18 3Q18 4Q18 1Q19 2Q19
Undrawn capital 1,097 802 560 324 218 312 296 218 198 158
Unrealized value 486 816 1,053 1,133 1,231 1,191 1,180 1,231 1,253 1,325
Assets under management 1,582 1,617 1,613 1,457 1,449 1,503 1,476 1,449 1,451 1,483
Undrawn capital 650 1,269 697 678 267 484 386 267 267 216
Unrealized value 225 705 1,625 1,133 1,554 1,266 1,520 1,554 1,754 1,684
Assets under management 875 1,974 2,322 1,811 1,821 1,750 1,906 1,821 2,021 1,900
Undrawn capital 0 0 0 1,065 797 1,043 1,004 797 743 690
Unrealized value 0 0 0 192 462 242 310 462 543 660
Assets under management 0 0 0 1,257 1,259 1,285 1,314 1,259 1,286 1,350
Undrawn capital 0 0 0 2,653 3,031 3,569 3,390 3,031 2,740 2,544
Unrealized value 0 0 0 942 1,649 1,157 1,343 1,649 1,987 2,258
Assets under management 0 0 0 3,595 4,680 4,726 4,733 4,680 4,727 4,802
Undrawn capital 363 258 190 485 367 416 416 367 367 320
Unrealized value 37 144 564 602 663 628 629 663 664 711
Assets under management 400 402 754 1,087 1,030 1,044 1,045 1,030 1,031 1,031
Undrawn capital 0 299 355 382 327 332 327 327 327 327
Unrealized value 0 95 364 658 790 763 784 790 786 769
Assets under management 0 393 719 1,040 1,117 1,095 1,111 1,117 1,113 1,097
Undrawn capital 61 254 134 67 54 63 54 54 55 4
Unrealized value 146 169 270 382 368 394 371 368 394 425
Assets under management 207 423 403 449 421 457 424 421 448 429
Undrawn capital 0 0 96 75 51 71 67 51 51 41
Unrealized value 0 0 4 25 62 33 40 62 70 82
Assets under management 0 0 100 100 113 104 107 113 121 123
Undrawn capital 0 29 29 29 29 29 29 29 29 29
Unrealized value 0 155 133 101 70 85 80 70 64 63
Assets under management 0 183 161 130 99 114 109 99 92 92
Undrawn capital 0 0 0 0 99 0 117 99 99 83
Unrealized value 0 0 0 0 24 0 0 24 27 44
Assets under management 0 0 0 0 123 0 117 123 126 127
Undrawn capital 5,549 14,237 12,129 13,783 14,569 13,809 16,503 14,569 14,325 11,407
Unrealized value 5,518 13,407 20,070 24,327 27,492 25,844 25,599 27,493 29,247 31,688
Assets under management 11,067 27,644 32,199 38,110 42,062 39,653 42,102 42,062 43,573 43,095
US$mn Funds Partners Fund1
NT$mn Total AUM2
US$mnGlobal Opportunities
Fund
Asia Partners Fund
US$mn Ali Fund
US$mn
Hua Nan Fund
RMBmn Hua Dong Fund
RMBmn
Innovation Fund
NT$mn Growth Fund
NT$mn
Creative Fund
NT$mn Healthcare Fund
NT$mn
3
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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.
37
Portfolio Breakdown - Greater China Portfolio
Note: 1. Banking-related strategic investments, which include stakes in Taiwan Stock Exchange Corporation, were fully disposed in 2Q19; 2. Venture capital-related business excluding cash held by
venture capital-related strategic investment, i.e., CDIB Private Equity (Hong Kong) Corp. Ltd., 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) 2015 2016 2017 2018 2Q18 3Q18 4Q18 1Q19 2Q19
Strategic investment 16,484 15,121 13,872 12,003 14,164 14,384 12,003 13,093 12,436
Banking-related1 8,843 6,278 2,953 1,386 3,294 3,290 1,386 1,386 0
Venture capital-related2 7,641 8,843 10,919 10,617 10,870 11,093 10,617 11,706 12,436
Direct investment 23,371 19,744 16,831 6,959 9,470 7,578 6,959 7,438 7,243
Total 39,855 34,866 30,702 18,962 23,634 21,962 18,962 20,531 19,680
(% of total, percent) 2015 2016 2017 2018 2Q18 3Q18 4Q18 1Q19 2Q19
Strategic investment 41.4 43.4 45.2 63.3 59.9 65.5 63.3 63.8 63.2
Banking-related1 22.2 18.0 9.6 7.3 13.9 15.0 7.3 6.8 0
Venture capital-related2 19.2 25.4 35.6 56.0 46.0 50.5 56.0 57.0 63.2
Direct investment 58.6 56.6 54.8 36.7 40.1 34.5 36.7 36.2 36.8
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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38
CDIB Capital Group – Greater China Portfolio
High-quality portfolio with focus on growth sectors
Note: Excluding strategic investment
(% of direct investment, percent) 2015 2016 2017 2018 2Q18 3Q18 4Q18 1Q19 2Q19
Consumer & services 43.5 35.4 26.6 53.3 46.4 48.0 53.3 52.4 54.2
Industrial & manufacturing 14.8 15.5 12.7 17.3 17.9 18.3 17.3 17.2 15.5
PC & components 16.5 21.6 29.2 10.6 13.1 13.3 10.6 11.2 10.9
Solar 4.7 3.9 6.8 5.8 8.9 6.9 5.8 6.2 7.3
Semiconductor 7.8 9.8 13.4 5.3 6.3 5.7 5.3 5.3 5.2
Financial 2.5 2.9 1.5 3.1 2.8 2.9 3.1 2.7 2.8
Optical 3.1 2.7 3.9 0.5 0.4 0.6 0.5 0.4 0.4
Telecom 1.8 2.2 2.1 0.2 0.2 0.2 0.2 0.3 0.3
Others 5.3 6.0 3.7 3.9 4.0 4.1 3.9 4.3 3.4
Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Portfolio Breakdown - Greater China Portfolio
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to extend or arrange credit or to provide any other services.
39
CDIB Capital Group – Greater China Portfolio
Listed companies accounted for approximately 10% of the portfolio
(% of total, percent) 2015 2016 2017 2018 2Q18 3Q18 4Q18 1Q19 2Q19
Listed 22.4 25.5 34.1 9.7 11.5 10.7 9.7 9.0 8.6
Emerging 13.5 8.9 7.3 5.1 6.5 5.5 5.1 5.5 5.8
Unlisted 64.1 65.6 58.6 85.2 82.0 83.8 85.2 85.5 85.6
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) 39,855 34,866 30,702 18,962 23,634 21,962 18,962 20,531 19,680
Total capital invested (NT$mn) 37,141 34,180 31,045 19,181 22,382 20,842 19,181 20,133 20,593
Unrealized profits (NT$mn) 2,714 685 (342) (219) 1,252 1,120 (219) 398 (914)
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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40
CDIB Capital Group – Greater China Portfolio (Cont’d)
Portfolio valuation has been affected by market movement
(NT$mn) 2015 2016 2017 2018 2Q18 3Q18 4Q18 1Q19 2Q19
Divestment 1,801 1,324 1,693 1,557 187 263 1,356 91 1,775
Dividends 1,007 585 686 305 29 270 5 0 70
Equity pickup 441 443 175 49 (138) 96 (63) 57 (52)
Remuneration 30 51 50 18 2 11 2 1 4
Impairment (920) (915) (902) 0 0 0 0 0 0
Valuation gain/loss - - - (46) 467 (113) (1,366) 602 (1,313)
Realized profits 2,359 1,488 1,701 1,883 548 527 (66) 751 484
Unrealized profits 2,714 685 (342) (219) 1,252 1,120 (219) 398 (914)
Realized & Unrealized Gains/ Losses - Greater China Portfolio
Note: Including strategic investment and direct investment
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41
CDIB Capital Group – International Portfolio
Portfolio value above par and further appreciation expected
(% of international portfolio, percent) 2015 2016 2017 2018 2Q18 3Q18 4Q18 1Q19 2Q19
Third-party funds 33.7 42.1 50.4 52.2 48.7 49.8 52.2 58.9 58.7
Direct investment and co-investment 66.3 57.9 49.6 47.8 51.3 50.2 47.8 41.1 41.3
Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Total market value (NT$mn) 13,954 13,489 12,368 12,183 13,914 13,345 12,183 12,659 14,273
Total capital invested (NT$mn) 11,080 11,055 10,518 10,637 11,270 11,539 10,637 11,879 12,746
Unrealized profits (NT$mn) 2,873 2,434 1,849 1,546 2,645 1,806 1,546 780 1,528
Market Value & Capital Invested - International Portfolio
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to extend or arrange credit or to provide any other services.
42
CDIB Capital Group – International Portfolio (Cont’d)
Portfolio valuation has been affected by market movement
(NT$mn) 2015 2016 2017 2018 2Q18 3Q18 4Q18 1Q19 2Q19
Third-party funds 400 284 616 (3) 70 (265) (51) 134 117
Direct investment and co-investment 883 672 1,916 1,251 707 (496) 590 85 780
Realized profits 1,283 957 2,532 1,247 776 (761) 539 219 896
Unrealized profits 2,873 2,434 1,849 1,546 2,645 1,806 1,546 780 1,528
Realized & Unrealized Gains/ Losses - International Portfolio
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43
Financial Highlights6.
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44
Financial Snapshots – CDF
Four core business engines provide diversified earning sources
CDF (consolidated) 2015 2016 2017 2018
Total assets (NT$bn) 866.7 892.2 2,392.5 2,717.8
Total net worth (NT$bn) 168.8 167.1 249.2 223.6
Total assets/ net worth (X) 5.1 5.3 9.6 12.2
Net profits (NT$bn)1 8.5 5.9 11.7 7.9
EPS (NT$/ share) 0.58 0.40 0.80 0.54
Book value per share (NT$/ share) 11.18 11.17 11.60 10.97
Cash dividend per share (NT$/ share) 0.50 0.50 0.60 0.30
Adjusted ROAE (%)2 5.1 3.6 7.1 4.7
ROAA (%) 1.0 0.7 0.8 0.5
Note: 1. Excluding profits attributable to non-controlling interests; 2. Adjusted ROAE excludes non-controlling interests
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to extend or arrange credit or to provide any other services.
45
Financial Snapshots – China Life
China Life (consolidated) 2015 2016 2017 2018
First-year premium (NT$bn) 83.1 90.6 80.2 150.3
Total premium (NT$bn) 162.2 191.1 206.4 301.8
Investment income (NT$bn) 47.2 47.1 47.4 51.8
Net profits (NT$bn) 9.2 9.5 9.1 10.2
EPS (NT$/ share) 2.29 2.36 2.26 2.54
Total assets (NT$bn) 1,202.6 1,323.7 1,465.7 1,711.4
Total net worth (NT$bn) 82.6 81.1 95.3 73.1
ROAE (%) 11.7 11.6 10.3 12.1
ROAA (%) 0.8 0.8 0.7 0.6
Sustained profitability supported by steady growth of premium income and investment income
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46
Financial Snapshots – KGI Bank
Improving profit source
KGI Bank (consolidated) 2015 2016 2017 2018
Total assets (NT$bn) 546.2 572.1 590.1 683.3
Total net worth (NT$bn) 57.9 58.9 61.4 58.6
Total assets/ net worth (X) 9.4 9.7 9.6 11.7
Net profits (NT$bn)1 5.2 3.8 3.2 2.2
EPS (NT$/ share) 1.13 0.83 0.69 0.47
Book value per share (NT$/ share) 12.57 12.79 13.33 12.72
CAR ratio (%) 15.0 13.2 14.2 13.4
ROAE (%) 9.2 6.6 5.32 3.63
ROAA (%) 0.9 0.7 0.5 0.3
Note: 1. Excluding profits attributable to non-controlling interests; 2. The adjusted ROAE, which excluded the impact derived from the reduction of deferred tax asset (NT1.2bn), rose to 7.3% in 2017; 3.
The adjusted ROAE, which excluded the impact derived from the reduction of deferred tax asset (NT0.6bn), rose to 4.6% in 2018; 4. 2015 was the pro-forma figures post CDIB Capital Group business
transfer
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to extend or arrange credit or to provide any other services.
47
Financial Snapshots – KGI Securities
Leading securities firm in Taiwan with extensive network presence
KGI Securities (consolidated) 2015 2016 2017 2018
Total assets (NT$bn) 274.5 274.4 277.0 277.5
Total net worth (NT$bn) 64.6 63.6 62.0 61.8
Total assets/ net worth (X) 4.2 4.3 4.5 4.5
Net profits1 (NT$bn) 2.6 2.5 8.2 3.8
EPS (NT$/ share) 0.67 0.68 2.48 1.16
Book value per share (NT$/ share) 16.13 17.22 19.4 18.0
CAR ratio (%) 339.0 329.0 296.0 327.0
ROAE (%) 4.2 3.9 13.3 6.1
ROAA (%) 0.9 0.9 2.9 1.4
Note: 1. Excluding profits attributable to non-controlling interests
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.
48
Financial Snapshots – CDIB Capital Group
Leading merchant bank in Taiwan with focus on private equity
CDIB Capital Group (consolidated) 2015 2016 2017 2018
Total assets (NT$bn) 72.8 73.2 55.3 50.4
Total net worth (NT$bn) 69.6 70.1 53.1 47.8
Total assets/ net worth (X) 1.0 1.0 1.0 1.1
Net profits1 (NT$bn) 4.9 1.5 3.4 2.3
EPS (NT$/ share) 1.49 0.71 1.63 1.13
Book value per share (NT$/ share) 33.76 33.99 25.95 23.36
ROAE (%) 5.3 2.1 5.5 4.5
ROAA (%) 1.8 2.1 5.3 4.3
Note: 1. Excluding profits attributable to non-controlling interests
This slide is part of a presentation by China Development Financial Holding Corporation and/or its affiliates (together, “CDF”) and is intended to be viewed as part of that presentation.
The presentation has not been updated since it was originally presented, and does not constitute a commitment by any CDF entity to underwrite, subscribe for or place any securities or
to extend or arrange credit or to provide any other services.
49
Quarterly Financial Snapshots – CDF
Four core business engines provide diversified earning sources
CDF (consolidated) 2Q18 3Q18 4Q18 1Q19 2Q19
Total assets (NT$bn) 2,700.4 2,769.0 2,717.8 2,867.2 2,983.3
CDIB Capital Group (NT$bn) 55.5 50.2 50.4 52.0 46.5
KGI Securities (NT$bn) 313.1 321.5 277.5 312.8 322.6
KGI Bank (NT$bn) 709.5 723.0 683.3 697.3 713.5
China Life (NT$bn) 1,621.0 1,674.9 1,711.4 1,817.4 1,896.8
AMC2(NT$bn) 3.3 3.3 3.3 3.3 3.3
Total net worth (NT$bn) 230.1 240.9 223.6 257.5 282.6
Total assets/ net worth (X) 11.7 11.5 12.2 11.1 10.6
Net profits (NT$bn)1 2.8 2.4 (0.6) 3.6 4.2
CDIB Capital Group (NT$bn) 1.2 (0.3) 0.1 1.2 1.3
KGI Securities (NT$bn) 1.1 1.6 0.2 1.4 1.6
KGI Bank (NT$bn) 0.9 0.9 (0.3) 0.9 1.0
China Life (NT$bn) 2.6 4.2 (0.3) 2.8 4.6
AMC (NT$mn) 11.9 11.7 (20.0) 15.4 19.8
EPS (NT$/ share) 0.19 0.17 (0.05) 0.25 0.29
Book value per share (NT$/ share) 11.10 11.42 10.97 12.03 12.46
Adjusted Annualized ROAE (%)2 6.7 6.0 (1.6) 8.6 9.4
Annualized ROAA (%) 0.6 0.8 (0.1) 0.7 0.9
Note:1. Net profits excluded non-controlling interests; 2. Adjusted annualized ROAE excludes non-controlling interests
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.
50
Quarterly Financial Snapshots – China Life
Asset size amounted to NT$1.9tn driven by robust business growth
China Life (consolidated) 2Q18 3Q18 4Q18 1Q19 2Q19
First-year premium (NT$bn) 39.4 41.2 39.1 47.5 33.3
Total premium (NT$bn) 71.1 81.8 83.2 75.7 69.8
Investment income (NT$bn) 13.2 15.6 10.9 14.1 18.5
Net profits (NT$bn) 2.6 4.2 (0.3) 2.8 4.6
EPS (NT$/ share) 0.64 1.06 (0.08) 0.70 1.15
Total assets (NT$bn) 1,621.0 1,674.9 1,711.4 1,817.4 1,896.8
Total net worth (NT$bn) 81.1 91.0 73.1 101.6 129.9
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.
51
KGI Bank (consolidated) 2Q18 3Q18 4Q18 1Q19 2Q19
Total assets (NT$bn) 709.5 723.0 683.3 697.3 713.5
Total net worth (NT$bn) 58.4 59.4 58.6 61.4 63.0
Total assets/ net worth (X) 12.1 12.2 11.7 11.4 11.3
Net profits (NT$bn)1 0.9 0.9 (0.3) 0.9 1.0
EPS (NT$/ share) 0.19 0.20 (0.07) 0.20 0.21
Book value per share (NT$/ share) 12.68 12.90 12.72 13.34 13.67
CAR ratio (%) 11.6 11.6 13.4 13.1 14.2
Annualized ROAE (%) 5.7 6.2 (2.3) 6.0 6.3
Annualized ROAA (%) 0.5 0.6 (0.2) 0.5 0.6
Note: 1. Excluding profits attributable to non-controlling interests
Quarterly Financial Snapshots – KGI Bank
Solid capitalization laying foundation for potential profit growth
This slide is part of a presentation by China Development Financial Holding Corporation and/or its affiliates (together, “CDF”) and is intended to be viewed as part of that presentation.
The presentation has not been updated since it was originally presented, and does not constitute a commitment by any CDF entity to underwrite, subscribe for or place any securities or
to extend or arrange credit or to provide any other services.
52
Quarterly Financial Snapshots – KGI Securities
Profitability has been affected by market volatility
KGI Securities (consolidated) 2Q18 3Q18 4Q18 1Q19 2Q19
Total assets (NT$bn) 313.1 321.5 277.5 312.8 322.6
Total net worth (NT$bn) 61.3 63.5 61.8 66.4 67.8
Total assets/ net worth (X) 5.1 5.1 4.5 4.7 4.8
Net profits (NT$bn) 1 1.1 1.6 0.2 1.4 1.6
EPS (NT$/ share) 0.33 0.48 0.06 0.43 0.49
Book value per share (NT$/ share) 17.89 18.57 18.02 19.43 19.88
Annualized ROAE (%) 7.0 10.0 1.2 8.8 9.4
Annualized ROAA (%) 1.4 2.0 0.3 1.9 2.0
Note: 1. Net profits excluded non-controlling interest
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.
53
Quarterly Financial Snapshots – CDIB Capital Group
Asset monetization will continue with focus on asset management
CDIB Capital Group (consolidated) 2Q18 3Q18 4Q18 1Q19 2Q19
Total assets (NT$bn) 55.5 50.2 50.4 52.0 46.5
Total net worth (NT$bn) 52.9 47.6 47.8 49.4 43.7
Total assets/ net worth (X) 1.0 1.1 1.1 1.1 1.1
Net profits (NT$bn)1 1.2 (0.3) 0.1 1.2 1.3
EPS (NT$/ share) 0.58 (0.14) 0.04 0.61 0.62
Book value per share (NT$/ share) 25.90 23.27 23.36 24.16 21.37
Annualized ROAE (%) 8.7 (2.3) 0.8 10.2 11.0
Annualized ROAA (%) 8.4 (2.2) 0.7 9.7 10.4
Note: 1. Net profits excluded non-controlling interests
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.
54
CDF Shareholding Structure
FINI holdings exceed 27.4%
Steadily Increasing FINI Holdings
Source: Taiwan Stock Exchange
FINI shareholdings, percent
Note: Shareholding percentage will be updated before the date of the Regular Shareholders’
Meeting each year
As of June 30, 2019
Top 10 Shareholders Of CDF
1. China Life Insurance Co., Ltd. 3.76%
2. Shin Wen Investment Co., Ltd. 3.21%
3. Jing Kwan Investment Co., Ltd. 2.79%
4. Bank of Taiwan Co., Ltd. 1.92%
5. Cathay Life Insurance Co., Ltd. 1.79%
6. Government of Singapore 1.70%
7.
JPMorgan Chase Bank N.A., Taipei Branch in
custody for Vanguard Total International Stock Index
Fund, a series of Vanguard Star Funds
1.50%
8.Vanguard Emerging Markets Stock Index Fund, A
series of Vanguard International Equity Index Funds1.46%
9. CTBC Bank Trust Account for KGI Securities 1.45%
10. Norges Bank 1.42%
Total 21.00%
Note: Shareholding percentage will be updated after the registration date of the Regular
Shareholders’ Meeting and ex-dividend each year
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.
55
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
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.
56
CDF & Principal Subsidiaries
Organization structure
CDF and principal subsidiaries
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
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%)
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%)
56% 20% 58.34% 27.08%