2q17 performance revie...the slides forming part of this presentation have been prepared solely to...

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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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1

2Q17 Performance Review

August 2017




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.

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

Disclaimer




3

Contents

SECTION 1 Business Overview 4

SECTION 2 CDIB Capital Group 8

SECTION 3 KGI Securities 18

SECTION 4 KGI Bank 24

SECTION 5 Financial Highlights 40




4

Business Overview 1.




5

KGI Securities reported profit of NT$595mn in 2Q17, thanks to a rebound in the TAIEX and

HANG SENG Index, as well as prudent risk management of overseas operation

CDF – 2Q17 Results

CDIB Capital Group was the largest profit contributor

CDIB Capital Group contributed profit of NT$701mn in 2Q17

CDIB Capital Group’s unrealized gains amounted to NT$4,526mn as of June 30, 2017

CDIB Capital Group focuses on asset management business; assets under management

exceeded NT$31,849mn as of June 30, 2017

CDIB Capital Group1

Following the business transfer on May 1, 2015, KGI Bank has continued consolidation,

aiming 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$675mn in 2Q17

KGI Bank reported an NPL ratio of 0.28% and LLR coverage ratio of 1.35% as of June 30,

2017, compared with the industry average of 0.30% and 1.35%, respectively

KGI Bank2

Summary & Highlights

KGI Securities

Note: 1. China Development Industrial Bank (“CDIB”) was renamed CDIB Capital Group following the business transformation on March 15, 2017; 2. Cosmos Bank was renamed KGI Bank on January 2,

2015




6

Profit contribution by subsidiary under CDF, NT$mn

Note: 1. CDIB completed the business transfer on May 1, 2015 and was renamed CDIB Capital Group following the business transformation on March 15, 2017; 2.

China Development Asset Management Corporation, formerly CDIB’s wholly-owned subsidiary, became a wholly-owned subsidiary of CDF on March 13, 2017; 3.

CDF’s net income excludes income attributable to non-controlling interests; 4. Investment income from KGI Bank and KGI Securities has been adjusted for purchase

price allocation

Profit contribution by subsidiary

CDIB Capital Group Was The Most Profitable Subsidiary In 2Q17

CDF – 2Q17 Net Profit




7

Profit contribution by subsidiary under CDF, NT$mn

Note: 1. CDIB completed the business transfer on May 1, 2015 and was renamed CDIB Capital Group following the business transformation on March 15, 2017; 2.

China Development Asset Management Corporation, formerly CDIB’s wholly-owned subsidiary, became a wholly-owned subsidiary of CDF on March 13, 2017; 3.

CDF’s net income excludes income attributable to non-controlling interests; 4. Investment income from KGI Bank and KGI Securities has been adjusted for purchase

price allocation; 5. Investment income from CDIB Capital Group excluded income attributable to China Development Asset Management Corporation

Profit contribution by subsidiary

CDIB Capital Group Was The Most Profitable Subsidiary In 1H17

CDF – 2Q17 YTD Net Profit




8

CDIB Capital Group 2.




9

CDIB Capital Group – Direct Investment Portfolio

2013 2014 2015 2016 2Q16 3Q16 4Q16 1Q17 2Q17

Principal investment (Market value) 73,384 65,052 53,809 48,354 50,965 50,983 48,354 47,700 47,652

Greater China (NT$mn) 53,946 44,473 39,855 34,866 35,518 35,869 34,866 34,012 33,674

International (NT$mn) 19,438 20,579 13,954 13,489 15,447 15,113 13,489 13,688 13,978

Total capital invested (NT$mn) 65,848 59,277 48,221 45,235 46,671 45,734 45,235 43,074 43,126

Greater China (NT$mn) 48,409 42,097 37,141 34,180 35,078 34,781 34,180 32,000 31,777

International (NT$mn) 17,438 17,180 11080 11,055 11,592 10,953 11,055 11,074 11,348

Unrealized profits (NT$mn) 7,536 5,775 5,587 3,119 4,295 5,249 3,119 4,626 4,526

Greater China (NT$mn) 5,536 2,376 2,714 685 440 1,088 685 2,012 1,897

International (NT$mn) 1,999 3,399 2,873 2,434 3,855 4,161 2,434 2,614 2,629

Monetization of direct investment portfolio will continue




10

CDIB Capital Group – Focusing On Asset Management

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

2013 2014 2015 2016 2Q16 3Q16 4Q16 1Q17 2Q17

CDIB Creative Fund size (NT$mn) 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500

Invested capital (NT$mn) 196 407 699 940 747 940 940 1,083 1,083

Market value (NT$mn) 264 495 815 1,072 851 1,021 1,072 1,180 1,147

CDIB Healthcare Fund size (NT$mn) - 1,750 1,750 1,750 1,750 1,750 1,750 1,750 1,750

Invested capital (NT$mn) - 225 481 1,053 805 805 1,053 1,072 1,072

Market value (NT$mn) - 225 705 1,687 998 960 1,687 1,668 1,455

CDIB Hua Dong Fund size (RMBmn) - 900 973 1,000 1,000 1,000 1,000 1,000 1,000

Invested capital (RMBmn) - 0 90 345 190 260 345 396 396

Market value (RMBmn) - 0 95 364 199 276 364 418 438

CDIB Hua Nan Fund size (RMBmn) - 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000

Invested capital (RMBmn) - 37 142 510 256 367 510 510 510

Market value (RMBmn) - 37 144 564 298 416 564 581 598

CDIB Asia Partners Fund size(US$mn) - 217 405 405 405 405 405 405 405

Invested capital (US$mn) - 137 137 247 217 247 247 317 318

Market value (US$mn) - 137 169 271 267 303 271 342 362

CDIB Ali Fund size (US$mn) - - - 100 100 100 100 100 100

Invested capital (US$mn) - - - 4 - 2 4 5 15

Market value (US$mn) - - - 4 - 2 4 5 15

CDIB Innovation Fund size (NT$mn) - - - - - - - 750 750

Invested capital (NT$mn) - - - - - - - - 73

Market value (NT$mn) - - - - - - - - 73

CDIB Growth Fund size (NT$mn) - - - - - - - - 3,500

Invested capital (NT$mn) - - - - - - - - 500

Market value (NT$mn) - - - - - - - - 500

Total Fund size (NT$mn)1 1,500 15,249 26,573 28,795 29,251 28,473 28,795 28,128 31,849

Invested capital (NT$mn)1 196 5,167 6,879 14,034 10,720 12,496 14,034 15,914 16,901

Market value (NT$mn)1 264 5,254 8,297 15,913 12,873 14,799 15,913 17,783 19,295 Note: 1. Figures have been converted into New Taiwan Dollar by the exchange rate on the last day of each quarter




11

Region Taiwan Greater China International

Fund name

CDIB

Creative

Fund

CDIB

Healthcare

Fund

CDIB Growth

Fund

CDIB

Innovation

Fund

CDIB Ali

Fund

CDIB Hua

Nan Fund

CDIB Hua

Dong Fund

Asia

Partners

Fund

Fund size NT$1,000mn NT$1,750mn NT$3,500mn NT$750mn US$100mn RMB1,000mn RMB1,000mn US$405mn

Vintage year February

2013

September

2014

June

2017

April

2017

May

2016

May

2014

April

2015

March

2014

Shareholding1 39.8% 34.3% 32.9% 40.0% 0.0% 35.0% 30.0% 24.7%

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 and

consumption,

communications

and internet

Taiwanese,

South

Korean and

US

companies in

Asia-Pacific

region that

seek long-

term

prospects in

China

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

Continue to focus on fundraising

Note: 1. CDIB Capital Group and its subsidiaries’ ownership percentage




12

Portfolio Breakdown

Note: 1. Banking-related strategic investment includes Taiwan Stock Exchange Corporation, Taiwan Futures Exchanges, China Development Asset Management Corporation, CDIB Management

Consulting Corp., and Taiwan Financial Asset Service Corporation; the latter two were transferred to KGI Bank on May 1, 2015. China Development Asset Management Corporation became a wholly-

owned subsidiary of CDF on March 13, 2017; 2. Revised figures exclude cash held by venture capital-related strategic investment, which includes: CDIB Capital Management (Hong Kong) Corporation

Limited, CDIB Private Equity (China) Corporation, CDIB Capital Creative Industries Limited, CDIB Capital Healthcare Ventures Limited, CDIB & Partners Investment Holding Corp., and CDIB Capital

International Corp.; 3. CDIB Capital Group has resolved at the board meeting on August 28, 2017 to sell its stake in Taiwan Futures Exchanges to KGI Securities' subsidiary, KGI Futures

(NT$mn) 2013 2014 2015 2016 2Q16 3Q16 4Q16 1Q17 2Q17

Strategic investment 15,390 16,253 16,484 15,121 14,609 15,233 15,121 13,701 14,057

Banking-related1 9,891 9,944 8,843 6,278 6,413 6,582 6,278 3,861 3,721

Venture capital-related2 5,499 6,308 7,641 8,843 8,196 8,651 8,843 9,840 10,335

Direct investment 38,556 28,220 23,371 19,744 20,910 20,636 19,744 20,311 19,617

Total 53,946 44,473 39,855 34,866 35,518 35,869 34,866 34,012 33,674

(% of total, percent) 2013 2014 2015 2016 2Q16 3Q16 4Q16 1Q17 2Q17

Strategic investment 28.5 36.5 41.4 43.4 41.1 42.5 43.4 40.3 41.7

Banking-related1 18.3 22.4 22.2 18.0 18.1 18.4 18.0 11.4 11.1

Venture capital-related2 10.2 14.2 19.2 25.4 23.1 24.1 25.4 28.9 30.7

Direct investment 71.5 63.5 58.6 56.6 58.9 57.5 56.6 59.7 58.3

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




13


High-quality portfolio with focus on growth sectors

Note: Excluding strategic investment

(% of direct investment, percent) 2013 2014 2015 2016 2Q16 3Q16 4Q16 1Q17 2Q17

Consumer & services 30.3 30.9 43.5 35.4 38.5 36.8 35.4 31.8 29.4

PC & components 11.7 19.1 16.5 21.6 18.4 19.9 21.6 23.0 27.3

Industrial & manufacturing 31.3 22.9 14.8 15.5 15.8 15.9 15.5 14.7 15.1

Semiconductor 7.7 8.6 7.8 9.8 8.8 9.5 9.8 12.0 10.6

Solar 4.5 5.0 4.7 3.9 4.6 4.3 3.9 4.3 4.4

Optical 4.1 4.4 3.1 2.7 3.1 2.8 2.7 2.9 2.9

Financial 5.5 2.6 2.5 2.9 2.7 2.8 2.9 2.8 2.7

Telecom 1.6 1.8 1.8 2.2 2.2 2.1 2.2 2.1 2.1

Others 3.2 4.6 5.3 6.0 5.8 5.9 6.0 6.5 5.5

Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Portfolio Breakdown




14


Portfolio valuation has been affected by market movement

(% of total, percent) 2013 2014 2015 2016 2Q16 3Q16 4Q16 2Q17 2Q17

Listed 34.5 32.0 22.4 25.5 24.7 25.6 25.5 29.5 30.8

Emerging 10.4 5.0 13.5 8.9 9.9 8.2 8.9 8.0 6.8

Unlisted 55.1 63.0 64.1 65.6 65.4 66.2 65.6 62.5 62.4

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) 53,946 44,473 39,855 34,866 35,518 35,869 34,866 34,012 33,674


Unrealized profits (NT$mn) 5,536 2,376 2,714 685 440 1,088 685 2,012 1,897

Market Value & Capital Invested - Greater China Portfolio

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




15

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

Portfolio valuation has been affected by market movement

(NT$mn) 2013 2014 2015 2016 2Q16 3Q16 4Q16 2Q17 2Q17

Divestment 2,776 3,432 1,801 1,324 320 55 571 1,117 292

Dividends 802 744 1,007 585 61 477 47 37 44

Equity pickup 1,878 1,970 441 443 87 145 163 66 85

Remuneration 27 65 30 51 9 28 10 9 13

Impairment (1,134) (1,103) (920) (915) (374) (211) (285) (0) (331)

Realized profits 4,350 5,108 2,359 1,488 103 494 506 1,227 103

Unrealized profits 5,536 2,376 2,714 685 440 1,088 685 2,012 1,897

Realized & Unrealized Gains/ Losses - Greater China Portfolio

Note: Including strategic investment and direct investment




16

CDIB Capital Group – International Portfolio

Portfolio value above par and further appreciation expected

(% of international portfolio, percent) 2013 2014 2015 2016 2Q16 3Q16 4Q16 2Q17 2Q17

Third-party funds 48.1 55.1 33.7 42.1 36.3 37.8 42.1 43.7 45.4

Direct investments and co-investments 51.9 44.9 66.3 57.9 63.7 62.2 57.9 56.3 54.6

Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0



Unrealized profits (NT$mn) 1,999 3,399 2,873 2,434 3,855 4,161 2,434 2,614 2,629

Market Value & Capital Invested - International Portfolio




17

CDIB Capital Group – International Portfolio (Cont’d)

Portfolio value above par and further appreciation expected

(NT$mn) 2013 2014 2015 2016 2Q16 3Q16 4Q16 2Q17 2Q17

Third-party funds 992 1,155 400 284 184 255 (172) 55 119

Direct investments and

co-investments 296 238 883 672 (125) 293 284 0 586

Realized profits 1,288 1,393 1,283 957 59 549 112 55 705

Unrealized profits 1,999 3,399 2,873 2,434 3,855 4,161 2,434 2,614 2,629

Realized & Unrealized Gains/ Losses - International Portfolio




18

KGI Securities 3.




19

KGI Securities – Net Revenue

Brokerage commission was the main revenue driver

Net revenue breakdown, NT$mn

Brokerage Was KGI Securities’ Main Revenue Driver In 2Q17




20

KGI Securities – Net Revenue (Cont’d)

Revenue has fluctuated due to recent capital market movement

(NT$mn) 2013 2014 2015 2016 2Q16 3Q16 4Q16 1Q17 2Q17

Net brokerage/ futures/ warrant commissions 6,170 6,932 8,159 6,208 1,433 1,588 1,511 1,620 1,701

Net underwriting fees 599 792 667 1,041 182 426 270 189 214

Net fees & commissions 6,769 7,724 8,826 7,248 1,615 2,013 1,780 1,809 1,915

Net interest income 2,250 2,806 2,398 1,899 487 469 460 424 461

Net investment income 3,974 2,098 2,246 3,368 140 1,580 863 (149) 636

Other revenue 332 452 577 1,050 316 282 310 759 160

Total net revenue 13,325 13,080 14,047 13,565 2,558 4,344 3,414 2,843 3,172

Note: 1. CDF purchased an 81% share of KGI Securities on the open market in mid-2012. Following completion of share conversion on January 18, 2013, KGI Securities became a wholly owned

subsidiary of CDF. CDF’s two securities subsidiaries, KGI Securities and Grand Cathay Securities Corp., officially merged on June 22, 2013; 2. The figures above include oversea subsidiaries’ contribution

Revenue Was Improved Due To Market Rebound In 2Q17




21

KGI Securities – Profit Breakdown

Profit has fluctuated due to recent capital market movement

(NT$mn) 2013 2014 2015 2016 2Q16 3Q16 4Q16 1Q17 2Q17

Taiwan 3,059 2,433 1,943 3,201 197 1,532 685 135 591

Overseas Subsidiaries 958 805 610 (718) (4) 33 (17) 251 104

Hong Kong1 693 556 417 (1,044) (83) (42) (135) 180 65

Thailand 265 249 192 327 79 75 118 70 39

Total 4,017 3,238 2,552 2,484 193 1,565 667 386 695

(% of total profit) 2013 2014 2015 2016 2Q16 3Q16 4Q16 1Q17 2Q17

Taiwan 76.1 75.1 76.1 128.9 102.2 97.9 102.6 34.9 85.1

Overseas Subsidiaries

Hong Kong1 17.3 17.2 16.4 (42.1) (43.0) (2.7) (20.2) 46.8 9.3

Thailand 6.6 7.7 7.5 13.2 40.9 4.8 17.6 18.3 5.6

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. Includes Singapore and Indonesia subsidiaries; 2. Includes KGI Securities and Grand Cathay Securities Corp. from 2013




22

KGI Securities – Brokerage & Margin Loans

Brokerage business provides a stable recurring income source

(NT$mn) 2013 2014 2015 2016 2Q16 3Q16 4Q16 1Q17 2Q17

Retail 2,704 3,265 2,722 2,196 521 577 488 630 670

Institutional 551 557 507 459 114 126 107 113 118

Total 3,255 3,822 3,229 2,655 636 703 595 742 787

Market share (%) 9.0 8.7 8.1 8.3 8.4 8.4 8.2 8.2 8.3

(NT$mn) 2013 2014 2015 2016 2Q16 3Q16 4Q16 1Q17 2Q17

KGIS Average Balance 23,227 26,375 23,675 18,771 16,197 16,099 15,522 16,791 17,610

Market share (%) 10.4 10.0 9.5 8.6 8.6 8.5 8.5 8.6 8.5

Breakdown Of Brokerage Commissions By Client Segment (Taiwan Only)

Margin Loans (Taiwan Only)




23

KGI Securities – Investment Portfolio

High-quality investment portfolio

(% of total) 2013 2014 2015 2016 2Q16 3Q16 4Q16 1Q17 2Q17

Fixed-income 66.6 69.9 68.5 56.3 71.9 71.6 56.3 58.2 49.8

Corporate bond & financial debenture 40.0 46.3 26.5 37.9 27.6 30.2 37.9 40.4 33.9

Convertible bond 19.8 11.1 9.7 7.3 6.1 5.6 7.3 7.0 6.9

Exchangeable bond 1.8 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.2

GB 5.0 12.5 32.2 11.1 38.2 35.8 11.1 10.8 8.8

Stocks 30.0 26.0 27.9 38.5 24.3 24.7 38.5 37.1 45.4

Others 3.4 4.0 3.6 5.2 3.8 3.8 5.2 4.8 4.8

Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0


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




24

KGI Bank 4.




25

KGI Bank – Profitability

Pre-provision operating profit (PPOP), NT$mn

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

business transferred from CDIB Capital Group

2010

Profitability, Affected By Interest Rate Cap On Credit And Cash Cards, Increasing Provisions Coupled

With Robust Loan Growth, And Deferred Tax Asset Write-off, Has Gradually Stabilized Net profit, NT$bn



PPOP increased to NT$1.3bn in 2Q17, up 8.5% YoY

Note: The deferred tax asset write-off was NT$0.2bn in 2Q17




26

KGI Bank – Profitability (Cont’d)

ROAA, percent

ROAE, percent





PPOP increased to NT$1.3bn in 2Q17, up 8.5% YoY

Profitability, Affected By Interest Rate Cap On Credit And Cash Cards, Increasing Provisions Coupled

With Robust Loan Growth, And Deferred Tax Asset Write-off, Has Gradually Stabilized




27

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

KGI Bank – Net Revenue

(NT$mm) 2013 2014 2015 2016 2Q16 3Q16 4Q16 1Q17 2Q17

Consumer banking1 4,152 4,801 5,334 4,835 1,169 1,270 1,256 1,141 1,198

Corporate banking2 2,913 3,572 2,646 2,659 598 608 923 745 707

Global financial markets 1,434 1,487 2,442 2,935 639 987 633 808 622

Other 1,956 1,372 536 359 86 (34) 238 (140)3 183

Total net revenue 10,456 11,232 10,958 10,789 2,492 2,830 3,049 2,554 2,710

(% of total) 2013 2014 2015 2016 2Q16 3Q16 4Q16 1Q17 2Q17

Consumer banking1 39.7 42.7 48.7 44.8 46.9 44.9 41.2 44.7 44.2

Corporate banking2 27.9 31.8 24.1 24.6 24.0 21.5 30.3 29.2 26.1

Global financial markets 13.7 13.2 22.3 27.2 25.6 34.9 20.7 31.6 23.0

Other 18.7 12.2 4.9 3.3 3.5 (1.2) 7.8 (5.5)3 6.7

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. The losses in 1Q17 was attributable to the unrealized foreign exchange loss

resulting from KGI Bank’s reserve capital in U.S. dollars; 4. 2013-2015 were the pro-forma figures post CDIB Capital Group business transfer




28

Diversified loan portfolio with robust loan growth

KGI Bank – Loans

(NT$bn) 2013 2014 2015 2016 2Q16 3Q16 4Q16 1Q17 2Q17

Corporate loans 139.5 157.3 145.2 175.7 160.1 177.3 175.7 188.0 194.2

Large corporations 124.8 142.6 133.7 161.1 147.6 164.6 161.1 172.4 177.8

SMEs 14.7 14.8 11.6 14.5 12.5 12.7 14.5 15.6 16.4

Secured consumer loans 36.3 37.8 40.7 45.8 41.5 43.4 45.8 48.0 51.2

Mortgage 36.2 37.7 40.6 45.7 41.5 43.4 45.7 48.0 51.2

Others 0.1 0.1 0.1 0.0 0.0 0.0 0.0 0.0 0.0

Unsecured consumer loans 33.1 34.2 35.0 34.5 34.8 34.6 34.5 34.2 34.9

Cash card 18.5 16.9 16.2 15.0 15.5 15.2 15.0 14.6 14.7

Personal loan 14.6 17.3 18.8 19.5 19.3 19.4 19.5 19.6 20.3

Total loans 208.9 229.3 220.9 255.9 236.5 255.3 255.9 270.2 280.4

Credit card 2.5 2.5 2.7 2.7 3.0 2.5 2.7 2.5 3.0

AR/ forfaiting/ China advance 54.1 55.6 32.3 18.6 18.6 15.4 18.6 18.1 17.2

Guarantees 13.6 12.4 12.0 10.7 12.6 11.6 10.7 11.2 11.3

Total credit 279.1 299.7 268.0 287.8 270.7 284.9 287.8 302.0 311.8

Total loans YoY/ QoQ (%) 19.1 9.8 (3.6) 15.8 3.9 8.0 0.2 5.6 3.7

Total credit YoY/ QoQ (%) 37.9 7.4 (10.6) 7.4 1.5 5.3 1.0 4.9 3.2

Note: 1. 2013-2015 were the pro-forma figures post CDIB Capital Group business transfer




29

KGI Bank – Loans (Cont’d)

(% of total) 2013 2014 2015 2016 2Q16 3Q16 4Q16 1Q17 2Q17

Corporate loans

Large corporations 59.7 62.2 60.5 63.0 62.4 64.5 63.0 63.8 63.4

SMEs 7.1 6.4 5.2 5.7 5.3 5.0 5.7 5.8 5.9

Secured consumer loans

Mortgage 17.3 16.4 18.4 17.9 17.5 17.0 17.9 17.8 18.3

Others 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Unsecured consumer loans

Cash card 8.8 7.4 7.3 5.9 6.6 6.0 5.9 5.4 5.2

Personal loan 7.0 7.5 8.5 7.6 8.2 7.6 7.6 7.2 7.2

Total loans 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Foreign currency loans1 24.9 24.7 20.5 24.7 21.2 22.7 24.7 24.0 26.2

Note: 1. Disclosed since 2012; 2. 2013-2015 were the pro-forma figures post CDIB Capital Group business transfer

Diversified loan portfolio with robust loan growth




30

KGI Bank – Corporate Banking Loan Book

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

Loan Breakdown By Industry

Note: 1. 2013-2015 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$4,050mn as of Dec. 31, 2013, NT$3,974mn as of Dec. 31, 2014, NT$4,668mn as of Dec. 31, 2015 and NT$4,603mn as of Dec. 31, 2016; NT$4,770mn as of Jun. 30, 2016, NT$4,725mn as of Sep. 30,

2016, NT$4,603mn as of Dec. 31, 2016, and NT$4,356mn as of Mar. 31, 2017, NT$4,256mn as of Jun. 30, 2017

(% of total loan) 2013 2014 2015 2016 2Q16 3Q16 4Q16 1Q17 2Q17

Services 30.5 27.6 26.0 27.0 20.8 22.7 27.0 26.8 29.2

Information, communication, tech 22.8 23.6 29.5 26.2 29.9 29.8 26.2 28.0 26.7

Plastics, rubber 12.5 10.9 9.4 8.4 8.3 8.9 8.4 8.0 7.7

Transportation 3.3 5.5 7.3 7.7 7.7 7.7 7.7 6.8 6.3

Real estate 8.8 9.8 9.6 7.6 8.2 6.6 7.6 7.7 8.2

Textiles 1.2 1.1 1.3 2.1 1.5 2.0 2.1 2.7 2.7

Energy 2.1 2.6 2.2 1.8 2.4 1.9 1.8 2.3 2.3

Others 18.8 18.8 14.7 19.2 21.1 20.4 19.2 17.7 16.9

Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Total loans (NT$mn) 139,512 157,332 145,236 175,670 160,103 177,316 175,670 188,046 194,210




31

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: 2013-2015 were the pro-forma figures post CDIB Capital Group business transfer




32

Loan-to-deposit ratio has started to improve

KGI Bank – Liquidity

Loan-to-deposit ratio (LDR), percent

Note: 1. 2013-2015 were the pro-forma figures post CDIB Capital Group business transfer

Loan-To-Deposit Ratio Has Improved




33

KGI Bank – Interest Spread & Net Interest Margin

Overall interest spread, percent

Interest Spread Has Declined Further Due To The Increased Cost Of Funds For US Dollars

Net interest margin, percent

Improved Net Interest Margin Due To Better Investment Allocation



Declining interest spread and net interest margin have gradually stabilized




34

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

NPL Ratios & NPL Coverage Have Remained Stable

Asset quality remained intact

KGI Bank – Asset Quality

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

Stable LLR Coverage


Note: 1. 2013-2015 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, 2016

Note: Banking peers’ loan loss reserve coverage was 1.35% as of June 30, 2017

Note: Peer average NPL ratio was 0.30% and peer average NPL coverage ratio was 455.56% as

of June 30, 2017




35

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

KGI Bank – Credit Cards & Cash Cards

2013 2014 2015 2016 2Q16 3Q16 4Q16 1Q17 2Q17

Credit card

Credit cards in circulation ('000) 516 495 506 498 512 507 498 484 461

Active credit cards ('000) 206 194 211 198 199 198 198 197 193

Monthly spending per credit card (NT$) 1,638 1,638 1,900 2,124 2,284 1,973 2,184 2,117 2,434

Spending (NT$mn) 10,153 9,741 11,538 12,696 3,509 3,002 3,263 3,075 3,364

Credit card revolving (NT$mn) 1,388 1,300 1,153 1,102 1,111 1,121 1,102 1,082 1,070

Cash card

Cash cards with credit line ('000) 536 526 516 502 509 505 502 500 498

Cash cards with balances ('000) 374 365 355 343 349 346 343 340 338

Cash card loans outstanding (NT$mn) 18,460 16,899 16,187 14,986 15,520 15,249 14,986 14,630 14,679




36

KGI Bank – Net Fee Income

Wealth management is the major source of net fee income

Net Interest Income & Net Fee Income¹

Note: 1. Included TMU; 2. 2013-2015 were the pro-forma figures post CDIB Capital Group business transfer

(NT$mn) 2013 2014 2015 2016 2Q16 3Q16 4Q16 1Q17 2Q17

Net interest income 8,230 9,237 7,327 5,763 1,396 1,435 1,556 1,406 1,625

Net fee income 1,657 1,769 1,861 1,912 457 473 630 494 445

(NT$mn) 2013 2014 2015 2016 2Q16 3Q16 4Q16 1Q17 2Q17

Wealth management 754 890 926 953 196 289 286 240 254

TMU 245 333 358 406 84 98 177 107 57

Loans 444 332 399 391 135 44 118 104 84

Cards 213 215 178 162 42 41 49 43 50

Total 1,657 1,769 1,861 1,912 457 473 630 494 445

Net Fee Income¹ Mainly Generated From Wealth Management




37

Cost-income ratio, percent

Effective Control Over Expenses

Maintain reasonable cost-to-income ratios during business expansion

KGI Bank – Efficiency





38

Capital adequacy ratio, percent

Strong Capital Adequacy Ratio

Capitalization remains solid despite robust loan growth

KGI Bank – Capitalization

Tier-1 capital ratio, percent






39

KGI Bank – Global Financial Markets Focus on high-quality government/ corporate bonds and blue-chip stocks; unrealized

losses have narrowed

(% of total market value) 2013 2014 20154 2016 2Q16 3Q16 4Q16 1Q17 2Q17

TW GB, municipal 49.0 66.0 52.8 74.3 68.2 69.2 74.3 58.5 52.5

TW negotiable CD +

commercial paper 0.0 0.0 0.0 0.0 0.0 0.0 0.0 14.7 14.5

Foreign GB 0.0 0.0 0.0 7.3 1.7 8.7 7.3 2.6 0.4

TW corporate/ bond & bank

debenture 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Foreign corporate/ bond &

bank debenture 44.0 29.0 39.9 14.7 24.2 17.2 14.7 20.8 29.5

Equity 6.0 5.0 7.3 3.7 5.9 4.8 3.7 3.4 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) 89,934 108,864 74,202 128,669 97,705 118,493 128,669 161,381 178,561

Total cost1 (NT$mn) 90,805 108,956 74,953 131,072 97,386 118,214 131,072 162,836 179,656

Unrealized profits2 (NT$mn) (871) (92) (751) (2,403) 100 (22) (2,403) (1,455) (1,095)

Realized profits3 (NT$mn) 1,390 2,089 3,612 539 812 738 539 293 985

Portfolio Breakdown (Market Value)

Note: 1.Excluding bank deposits, repos and financial assets at fair value through profit & loss (including sovereign debts, FX, IRS, etc.); 2. Unrealized losses were partially offset by realized disposal gains

as well as interest income from hedging; 3. Realized profits before funding costs & operating expenses; 4. 2013-2015 were the pro-forma figures post CDIB Capital Group business transfer




40

Financial Highlights 5.




41

Financial Snapshots – CDF

Solid balance sheet with improving financial leverage

CDF (consolidated) 2012 2013 2014 2015 2016

Total assets (NT$bn) 489.1 647.9 917.6 866.7 892.2

Total net worth (NT$bn) 165.8 169.1 173.9 168.8 167.1

Total assets/ net worth (X) 2.9 3.8 5.3 5.1 5.3

Net profits (NT$bn)1 5.0 8.3 10.8 8.5 5.9

EPS (NT$/ share) 0.39 0.56 0.73 0.58 0.40

Book value per share (NT$/ share) 10.70 11.05 11.41 11.18 11.17

Cash dividend per share (NT$/ share) 0.18 0.40 0.60 0.50 0.50

ROAE (%) 3.7 5.1 6.4 5.0 3.6

ROAA (%) 1.3 1.4 1.4 1.0 0.7

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




42

Financial Snapshots – CDIB Capital Group

Leading merchant bank in Taiwan with focus on private equity

CDIB Capital Group1 (consolidated) 2012 2013 2014 2015 2016




Net profits3 (NT$bn) 4.3 6.0 8.4 4.9 1.5

EPS (NT$/ share) 0.64 0.98 1.40 1.49 0.71


CAR ratio (%) 27.9 18.6 17.7 108.6 148.4

ROAE (%) 3.7 5.3 7.4 5.3 2.1

ROAA (%) 1.5 1.7 1.9 1.8 2.1

Note: 1. CDIB completed the business transfer on May 1, 2015 and was renamed CDIB Capital Group upon the business transformation on March 15, 2017; 2. Excluding profits attributable to non-

controlling interests; 3. IFRS-compliant for periods beginning on or after January 1, 2013




43

Financial Snapshots – KGI Securities

Leading securities firm in Taiwan with extensive network presence

KGI Securities (consolidated) 2012 2013 2014 2015 2016




Net profits1 (NT$bn) 1.6 4.0 3.2 2.6 2.5

EPS (NT$/ share) 0.48 0.87 0.75 0.67 0.68


CAR ratio (%) 400.4 371.0 343.0 339.0 329.0

ROAE (%) 3.4 5.6 4.8 4.2 3.9

ROAA (%) 1.2 1.8 1.3 0.9 0.9

Note: 1. Excluding profits attributable to non-controlling interests; 2. CDF purchased an 81% share in KGI Securities on the open market in mid-2012. Following completion of share conversion on January

18, 2013, KGI Securities became a wholly-owned subsidiary of CDF. CDF’s two securities subsidiaries, KGI Securities and Grand Cathay Securities Corp., officially merged on June 22, 2013. 2013 net

profits included full-year earnings of KGI Securities and Grand Cathay Securities Corp.; 3. IFRS-compliant for periods beginning on or after January 1, 2013




44

Financial Snapshots – KGI Bank

Improving profit source

KGI Bank (consolidated) 2012 2013 2014 2015 2016




Net profits (NT$bn) 2.9 3.1 2.4 5.2 3.8

EPS (NT$/ share) 3.29 2.00 1.55 1.13 0.83


CAR ratio (%) 14.9 13.6 12.9 15.0 13.2

ROAE (%) 20.6 18.1 12.7 9.2 6.6

ROAA (%) 2.0 1.9 1.4 0.9 0.7

Note: 1. 2015 was the pro-forma figures post CDIB Capital Group business transfer; 2. IFRS-compliant for periods beginning on or after January 1, 2013




45

Quarterly Financial Snapshots – CDF

Solid balance sheet with improving financial leverage

CDF (consolidated) 2Q16 3Q16 4Q16 1Q17 2Q17


CDIB Capital Group1 (NT$bn) 71.0 72.0 73.2 73.5 55.3

KGI Securities (NT$bn) 330.9 316.9 274.4 293.5 289.7

KGI Bank(NT$bn) 519.1 555.4 572.1 587.5 594.4

AMC2(NT$bn) - - - 3.2 3.3



Net profits (NT$bn) 0.8 2.6 1.5 1.8 1.7

CDIB Capital Group1 (NT$bn) 0.0 0.6 0.3 0.9 0.7

KGI Securities (NT$bn) 0.2 1.6 0.7 0.4 0.7

KGI Bank (NT$bn) 1.0 0.9 0.9 0.9 0.8

AMC2(NT$mn) - - - 13.6 5.4

EPS (NT$/ share) 0.05 0.17 0.10 0.12 0.12


Annualized ROAE (%) 1.8 6.3 3.6 4.3 4.1

Annualized ROAA (%) 0.4 1.2 0.7 0.8 0.8

Note: 1. CDIB was renamed CDIB Capital Group upon the business transformation on March 15, 2017; 2. China Development Asset Management became a wholly-owned subsidiary of CDF on March 13,

2017; 3. IFRS-compliant for periods beginning on or after January 1, 2013; 4. ROAE and ROAA are annualized; 5. Net profits, ROAE and ROAA excluded non-controlling interests




46

Quarterly Financial Snapshots – CDIB Capital Group

Asset monetization has been affected by capital market movement

CDIB Capital Group1 (consolidated) 2Q16 3Q16 4Q16 1Q17 2Q17




Net profits (NT$bn) 0.0 0.6 0.3 0.9 0.7

EPS (NT$/ share) 0.02 0.28 0.14 0.42 0.34


Annualized ROAE (%) 0.2 3.3 1.9 5.2 4.9

Annualized ROAA (%) 0.2 3.2 1.8 4.7 4.3

Note: 1. CDIB completed the business transfer on May 1, 2015 and was renamed CDIB Capital Group upon the business transformation on March 15, 2017; 2. IFRS-compliant for periods beginning on or

after January 1, 2013; 3. ROAE and ROAA are annualized; 4. Net profits, ROAE and excluded non-controlling interests




47

Quarterly Financial Snapshots – KGI Securities

Profitability has been affected by market volatility

KGI Securities (consolidated) 2Q16 3Q16 4Q16 1Q17 2Q17




Net profits (NT$bn) 0.2 1.6 0.7 0.4 0.7

EPS (NT$/ share) 0.05 0.42 0.19 0.11 0.20


Annualized ROAE (%) 1.2 10.3 4.6 2.4 4.5

Annualized ROAA (%) 0.2 1.9 1.0 0.5 1.0

Note: 1. IFRS-compliant for periods beginning on or after January 1, 2013; 2. Including prior interests under joint control; 3. ROAE and ROAA are annualized; 4. Net profits, ROAE and ROAA excluded

non-controlling interest




48

KGI Bank (consolidated) 2Q16 3Q16 4Q16 1Q17 2Q17




Net profits (NT$bn) 1.0 0.9 0.9 0.9 0.8

EPS (NT$/ share) 0.22 0.20 0.19 0.19 0.16


CAR ratio (%) 14.9 14.6 13.2 13.6 12.9

ROAE (%) 7.1 6.3 6.0 6.0 5.1

ROAA (%) 0.8 0.7 0.6 0.6 0.5

Note: 1. IFRS-compliant for periods beginning on or after January 1, 2013; 2. ROAE and ROAA are annualized

Quarterly Financial Snapshots – KGI Bank

Solid capitalization laying foundation for potential profit growth




49

Steadily Increasing FINI Holdings As of June 30, 2017

Top 10 Shareholders Of CDF

1. Shin Wen Investment Co., Ltd. 4.34%

2. China Life Insurance Co., Ltd. 3.76%

3. Fubon Life Insurance Co., Ltd. 3.05%

4. Jing Kwan Investment Co., Ltd. 2.78%

5. Cathay Life Insurance Co., Ltd. 2.35%

6. KGI Securities Co., Ltd. 2.02%

7. Bank of Taiwan Co., Ltd. 1.92%

8. Vanguard Emerging Markets Stock Index Fund, A

Series of Vanguard International Equity Index Funds 1.71%

9. Government of Singapore 1.60%

10. Shin Kong Insurance Co., Ltd. 1.52%

Total 25.05%

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 25.03%

Note: As of April 30 for 2011-2014, April 14 for 2015 and April 18 for 2017




50

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

profit 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




51

CDF & Principal Subsidiaries

Organization structure

CDF and principal subsidiaries

70%

27.08% 20%

56%

58.34%

Oversea

Greater China Region

China Development Financial Holdings

中華開發金控

CDIB Capital Group

中華開發資本

KGI Securities

凱基證券

KGI Bank

凱基銀行

China Development Asset Management Corp.

中華開發資產管理

Chung Hwa

Growth 3 Asset

Mgmt. Corp.

中華成長三

資產管理

(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 Capital

Management

Corporation

中華開發

資本管理顧問

(100%)

* CDIB Capital

Management

Corporation is

engaged to

manage CDIB

Venture Capital

Corporation

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%)

CDIB Capital

Asia Partners

Limited

(100%)

CDIB

International

Leasing Corp.

中華開發

國際租賃

(100%)

CDC Finance

& Leasing

Corp.

華開租賃

(76.04%)

**CDIB Private

Equity (China)

Corp. provides

advisory service

to general

partners of CDIB

Yida Private

Equity (Kunshan)

Co. Ltd./ CDIBCDIB 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 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

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 Capital

International

(Hong Kong)

Corp. Ltd.

(100%)

CDIB Capital

International

(USA) Corp.

(100%)

CDIB Capital

International

(Korea) Corp.

(100%)

CDIB

Private Equity

(China) Corp.

中華開發

股權投資管理

(100%)

CDIB

Private Equity

(Fujian) Co. Ltd.

華開(福建)股權

投資管理

(70%)

CDIB Capital

International

Corp. (CCIC)

(100%)

CDIB Global

Markets Limited

(100%)

CDIB Capital

Investment

I, II Limited

(100%)

2q17 performance revie...the slides forming part of this presentation have been prepared solely to...

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