1Q2017 法人說明會 Jun. 9, 2017
FE group business Span over 10 major industries Own over 240 companies Established in 1937 9 public listed companies in Taiwan and HK Petrochemical & energy Polyester & synthetic fiber Cement & building material Retail & department store Financial services 7 companies in operation across Taiwan and China Oriental Petrochemical (Taiwan) over 1 million tons annual PTA capacity 21 companies in operation across Taiwan, China and Vietnam Group s polyester capacity over 2 million tons, one of the world's 5 largest manufacturers 27subsidiaries integrating Taiwan and China markets Main operation unit Asia Cement to achieved 40 m tons of annual capacity Total sales surpassed NT$ 120 billion Together owns 50 stores across both sides of Strait 10 companies in operation across 7 financial service fields, in Taiwan and China FEIB is the flagship operating entity Sea/Land transportation Communications and Internet Construction Hotel services Philanthropic organizations 12 subsidiaries in operation Flagship U-Ming Marine Transport has 47 vessels and a shipping capacity of 5.99 million DWT The only one pure mobile operator in Taiwan Invested in FETC, more than 5 million vehicles have installed OBUs and over 1 billion tolls collected. 7 subsidiaries in operation Projects in development such as "Far Eastern Telecom Park" and Yilan Resort Shangri-La's Far Eastern Plaza Hotel Taipei Far Eastern Plaza Hotel Tainan Awarded "The 500 Best Hotels in the World" Established Yuan Ze University Founded Far Eastern memorial Hospital 2
Contents Financial highlights Key strategies 3
Assets CAGR +5.6% (NT$Bn) 361 360 9% 10% 377 10% 418 9% 438 10% 466 9% 492 10% 522 11% 547 15% 561 17% 599 16% +25.8% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1Q 2017 Source: Consolidated financial reports 4
Loans Period-end 355 (NT$Bn) 400 324 339 400 361 +6.5% (NT$Bn) 329 355 +7.6% 350 350 55 +3.9% 300 57 300 (%) 57 (%) 250 250 58 56 +4.5% 200 200 150 100 150 43 43 45 100 +9.4% 42 44 +12.6% 50 0 50 2014 2015 0 2016 1Q 2016 1Q 2017 2014 20152014 20162015 2016 Corporate Consumer Corporate Consumer * Corporate banking includes SMEs **Source: Consolidated financial reports 5
Deposits Period-end (NT$Bn) 424 452 453 +0.3% (NT$Bn) 432 488 +13.2% 400 400 350 300 (%) 47 350 47 47 300 +1.3% (%) 49 47 +8.5% 250 250 200 200 150 100 150 53 53 53 100-0.6% 51 53 +17.7% 50 0 50 2014 2015 0 2016 1Q 2016 1Q 2017 2014 20152014 20162015 2016 Corporate Consumer Corporate Consumer * Corporate deposit excludes remittance **Source: Consolidated financial reports 6
Asset quality NPL Ratio NPL Coverage Ratio Loan Coverage Ratio 0.25% 0.23% 0.27% 0.26% 0.27% 0.19% 0.30% 0.25% 555% 531% 511% 503% 501% 726% 556% 453% 1.34% 1.34% 1.30% 1.32% 1.39% 1.41% 1.36% 1.34% 2015 1Q 2016 2016 1Q 2017 2015 1Q 2016 2016 1Q 2017 2015 1Q 2016 2016 1Q 2017 Industry FEIB Source: Consolidated financial reports Industry: 36 Commercial Banks 7
BIS & Liquidity CAR & Tier1* LDR & DDR 12.9% 12.6% 13.1% 13.8% 76.5% 74.9% 76.2% 79.6% 72.6% 9.1% 9.3% 9.5% 10.0% 25.4% 28.5% 28.9% 28.8% 26.1% 2014 2015 2016 1Q 2017 2014 2015 1Q 2016 2016 1Q 2017 CAR Tier 1 LDR DDR *CAR & Tier 1: unconsolidated # Source: Consolidated financial reports 8
Revenue Revenue NII (NT$Bn) -2.5% -4.1% (NT$Bn) -0.3% -8.9% 10.9 11.2 10.9 2.6 2.4 5.4 5.8 5.8 1.5 1.3 2014 2015 2016 1Q 2016 1Q 2017 2014 2015 2016 1Q 2016 1Q 2017 Net fee income Net trading & investment income (NT$Bn) +9.3% -0.5% (NT$Bn) -0.4% +56.8% 2.9 3.1 3.4 0.8 0.8 1.7 1.4 1.4 0.3 0.5 2014 2015 2016 1Q 2016 1Q 2017 2014 2015 2016 1Q 2016 1Q 2017 Source: Consolidated financial reports 9
Income before tax (NT$Bn) Y2016 4.62-0.02 +0.29-0.01-0.55-0.10-0.45 +0.03 3.82-17.4% 2015 NII Fee Trading Others OP. Expense Provision Recovery 2016 1Q 2017 +0.19 1.03-0.13-0.004-0.16-0.002-0.12 +0.01 0.81-20.9% 1Q 2016 NII Fee Trading Others OP. Expense Provision Recovery 1Q 2017 Source: Consolidated financial reports 10
Profitability PPOP NIM & Spread (NT$Bn) 4.4 4.7-8.3% 4.3-11.5% (%) 1.75 1.76 1.71 1.64 0.9 0.8 1.25 1.26 1.29 1.14 2014 2015 2016 1Q 2016 1Q 2017 2014 2015 2016 1Q 2017 Spread of loan vs. deposit NIM ROA ROE (%) (%) 0.73 0.73 0.59 0.52* 11.33 10.43 8.12 7.08* 2014 2015 2016 1Q 2017 *annualized Source: Consolidated financial reports 2014 2015 2016 1Q 2017 11
Dividend EPS & dividend payout Cash dividend yield * (NT$/share) 1.30 1.31 1.30 1.04 3.8% 4.1% 4.4% 2.2% 0.45 0.54 0.20 0.23 0.25 0.40 0.40 0.42 2013 2014 2015 2016 2013 2014 2015 2016 Cash dividend Stock dividend * Based on stock closing price on BDR date proposing dividend distribution Source: Consolidated financial reports 12
Contents Financial highlights Key strategies 13
2017 key strategies Products Process Branding Assets Profit Relationship Consolidation Group synergy Payment platform Customer sharing 14
Contents Appendix 15
Summary financials and key ratios (NT$ m, except percentages and per share data) (Consolidated) As of or for 12 months ended December 31, As of or for 3 months ended March 31, 2015 (IFRS) 2016 (IFRS) 1Q2016 (IFRS) 1Q2017 (IFRS) Key balance sheet items Gross loans 338,597 360,995 7% 329,074 354,480 8% Total assets 546,555 561,415 3% 533,999 598,844 12% Deposits and remittances 451,295 452,720 0.3% 431,213 489,186 13% Total shareholders equity 38,978 40,951 5% 39,865 41,750 5% BVPS 12.85 13.16 2% 13.14 13.42 2% Key income statement items Net interest income 5,804 5,784-0.3% 1,476 1,344-9% Net fee income 3,104 3,392 9% 768 764-0.5% Earnings before Provision 4,652 4,268-8% 933 826-11% Net income 3,914 3,244-17% 862 732-15% EPS 1.30 1.04-20% 0.28 0.24-14% Key ratios Cost to income ratio 58.2% 61.0% 2.4 PctP 63.4% 66.3% 2.9 PctP ROE (not annualized) 10.43% 8.12% -2.3 PctP 2.19% 1.77% -42 bp ROA (not annualized) 0.73% 0.59% -14 bp 0.16% 0.13% -3 bp LDR 74.9% 79.6% 4.7 PctP 76.2% 72.6% -3.6 PctP NPL ratio 0.25% 0.19% -6 bp 0.27% 0.25% -2 bp Coverage ratio 531% 726% 195 PctP 501% 556% 55 PctP Tier 1 ratio (unconsolidated) 9.32% 9.52% 20 bp 9.82% 10.0% 18 bp Total CAR (unconsolidated) 12.64% 13.14% 50 bp 13.24% 13.79% 55 bp 16