2016 Fourth Quarter Briefing March 2017 Disclaimer This document is provided by Cathay Financial Holding Co., Ltd. (the "Company"). Except for the num

2016 Fourth Quarter Briefing March 2017 Disclaimer This document is provided by Cathay Financial Holding Co., Ltd. (the "Company"). Except for the numbers and information included in the Company's financial statements, the information contained in this document has not been audited or reviewed by any accountant or independent expert. The Company makes no express or implied representations or warranties as to the fairness, accuracy, completeness, or correctness of such information or opinions. This document is provided as of the date herein and will not be updated to reflect any changes hereafter. The Company, its affiliates and their representatives do not accept any responsibility or liability for any damage caused by their negligence or any other reasons, nor do they accept responsibility or liability for any loss or damages arising from the use of this document or the information contained herein or anything related to this document. This document may contain forward-looking statements, including but not limited to all statements that address activities, events or developments that the Company expects or anticipates to take place in the future based on the projections of the Company toward the future, and various factors and uncertainness beyond the Company's control. Therefore, the actual results may differ materially from those contained in the forward-looking statements. This document is not and cannot be construed as an offer to purchase or sell securities or other financial products or solicitation of an offer. This document may not be directly or indirectly reproduced, redistributed or forwarded to any other person and may not be published in whole or in part for any purpose. 2

Agenda Introduction of Cathay FHC 2016 Business Overview and 2017 Outlook Overseas Expansion Business Performance Summary Cathay United Bank Cathay Life Cathay Century Cathay s CSR Efforts M&A Key Highlights Appendix 3 Cathay FHC: largest FHC, comprehensive products Cathay FHC Chairman: Mr. Hong-Tu Tsai President: Mr. Chang-Ken Lee 100% 100% 100% 100% 100% Cathay United Bank Cathay Century Cathay Life Asset Management Cathay Securities Cathay Venture Indovina Bank (50%) CUBC Bank (100%) Cathay Century (China) (49%) Cathay Century (Vietnam) (100%) Cathay Lujiazui Life (China) (50%) Cathay Life (Vietnam) (100%) Conning (100%) Cathay Securities Investment Trust (100%) Cathay Futures (100%) Cathay Securities (HK) (100%) CDBS-CAM (33%) Cathay Securities (Shanghai) (100%) One of the largest private banks in terms of total assets No. 2 credit card issuer The largest brokerage settlement bank 2 nd biggest nonlife insurer Market share in total premium income: 13.6% (FY16). No. 1 life insurer in terms of total assets and total premium Market share in total premium: 21.4% (FY16). Largest AUM among asset managers in Taiwan Qualified QFII to invest in China Pursue business opportunity from QDII of China Investment banking, brokerage, and prop trading businesses Strong underwriting and capital raising platform Diversified products and services 4

Cathay s earnings accelerates as life turnarounds (NT$) EPS & ROE Profit contribution (NT$ BN) CUB Cathay Life 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 6.8% 1.3 2.4 EPS 3.9 ROE 10.9% 12.1% 4.6 3.8 12.9% 9.7% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 2.5 15.4 13.3 14.6 17.8 18.8 17.5 CUB 31.7 38.4 Cathay Life 30.2 FY12 FHC 16.2 29.0 49.6 57.9 48.0 Life 2.5 15.4 31.7 38.4 30.2 CUB 13.3 14.6 17.8 18.8 17.5 - FY12 0.0% 16% 53% 64% 66% 63% Note: (1) FY13 figures do not reflect the impact from applying fair value method on investment property. (2) Since Cathay FHC has more subsidiaries other than Cathay Life and CUB, besides, due to affiliate transactions, the Cathay FHC net income might not equal to the sum of Cathay Life and CUB s. (3) EPS has been adjusted for stock dividend (stock split). 82% 50% 36% 32% 36% FY12 5 Market leader in Taiwan s FIG sector Largest listed financials group by market capitalization and assets. Ranking of total asset (US$bn) Note: Total assets as of Dec. 30, 2016 Ranking of market cap (US$bn) Note: Market capitalization as of Dec. 30, 2016 6

Cathay FHC Net income & EPS Net income Adjusted EPS (NT$) 49.6 17% -17% 57.9 48.0 3.93 4.58 3.79 FY14 FY15 FY16 Net income of primary subsidiaries FY14 FY15 FY16 ROE FY15 FY16 FY15 FY16 28.5% 38.4 30.2 14.5% 12.9% 12.3% 13.8% 18.8 17.5 11.4% 11.4% 9.7% 11.1% 8.5% 0.8 2.3 0.3 0.3 0.5 0.3 CUB Cathay Life Cathay Century Cathay SITE Cathay Securities Cathay FHC CUB Cathay Life Cathay Century Cathay SITE 7 Cathay FHC Book value & BVPS (1) 379.5 94.3 285.3 Book value Impact to book value from fair value method on investment property (2) 529.8 461.1 439.1 BVPS (NT$) Impact to BVPS from fair value method on investment property 31.4 7.9 23.5 34.5 36.2 37.7 (3) Note: (1) FY13 figures reflected the impact from applying fair value method on investment property. (2) FY16 book value includes preferred shares NT$50.0BN. (3) FY16 BVPS represented the BVPS attributable to common shareholders. If FY16 BVPS was calculated by book value / outstanding common shares, it would be NT$41.7. 8

Agenda Introduction of Cathay FHC 2016 Business Overview and 2017 Outlook Overseas Expansion Business Performance Summary Cathay United Bank Cathay Life Cathay Century Cathay s CSR Efforts M&A Key Highlights Appendix 9 2016 Business overview Cathay United Bank Delivered 27% loan growth with benign credit quality Fee income grew by 11% YoY, credit card and wealth management fee grew by 16% and 12% respectively Offshore earnings accounted for 44% of pretax earnings Cathay Life Continued value-driven strategy; FYPE grew by 32% YoY, VNB grew by 31% YoY Overseas investment reached 62%; pre-hedging recurring yield achieved 3.4% RBC ratio is 305%, remained solid capital adequacy Cathay Century Premium income grew by 9% YoY Market share reached 14%, maintained No.2 market position Offshore business continued to grow Cathay SITE Ranked No.1 in terms of AUM, which amounted to NT$471BN Received Taiwan Fund Award by Taiwan Futures Exchange, Lipper and Smart in 2016 Cathay Securities Each business line grew steadily. Sub-brokerage business ranked No.1 in the industry, brokerage market share reached historical high Enhanced core techniques to extend offshore business 10

2017 Outlook Cathay United Bank Maintain mild growth in loan with benign asset quality Fee income other than wealth management fee income should grow steadily Continue to grow offshore earnings and business coverage Cathay Life Focus on the sales of regular-paid products, foreign currency denominated policies and investment linked policies to improve value of new business Continue to increase overseas investment and maintain stable hedging cost Cathay Century Develop best operation and sales organization and utilize digital application to enhance service quality and client satisfaction Increase the efficiency of capital and net profits Continue to expand overseas and develop quality channel for better local branding Cathay SITE Offer complete product lines to meet clients needs Integrate global asset management business to broaden international exposure Leverage group resources and expand external distribution channels to increase AUM Cathay Securities Utilize digital technology to enhance cross-selling synergy and broaden client base Breakthrough existing platform to develop innovative products Continue to expand overseas business 11 Agenda Introduction of Cathay FHC 2016 Business Overview and 2017 Outlook Overseas Expansion Business Performance Summary Cathay United Bank Cathay Life Cathay Century Cathay s CSR Efforts M&A Key Highlights Appendix 12

Cathay FHC in South East Asia China Vietnam Cambodia Hong Kong Singapore Malaysia Laos Philippines Thailand Myanmar Indonesia Bank 6 37 16 1 1 1 1 1 1 1 1 Life 38 16 P&C 26 2 Asset Mgt 1 1 Securities 1 1 Note: Footprints in Thailand, Myanmar and Indonesia are representative offices. Cathay FHC owns 49% stake of Cathay Century (China) Myanmar Cathay United Bank Cathay Life Cathay Century Laos Thailand Vietnam Cambodia Philippines Malaysia Singapore Indonesia Banking - Vietnam: Business performs steadily with solid financial performance - Cambodia: Owns most footprints among Taiwanese banks - Philippines: Invests 23% stake in RCBC* - Indonesia: Completed the transaction of investing 40% stake in Bank Mayapada in 4Q16* Cathay Life - Cathay Life (Vietnam) has performed steadily - Continues to expand agent force - Increases footprints to extend offshore business Cathay Century - Continues to expand local channels to enhance growth momentum Note: Investments in RCBC and Bank Mayapada are funded by Cathay Life. 13 Cathay FHC in China Szechwan Beijing Liaoning Tianjin Shandong Jiangsu Hubei Shanghai Zhejiang Fujian Guangdong Hong Kong Cathay Lujiazui Life Cathay United Bank Cathay Century (China) Cathay Securities Conning Asia Pacific Limited CDBS Cathay Asset Management Company Cathay United Bank - Shanghai branch earnings continues to grow Cathay Lujiazui Life - FY16 solvency ratio reached 225% - Reported pre-tax profits of 7MN RMB in FY16 Cathay Century (China) - Alliance with Ant Financial group: Transaction completed in 2H16 Cathay Securities (HK) - Each business line has performed steadily JV with China Development Bank Securities (CDBS Cathay Asset Management) - Continues to launch new products, mainly focus on fixed income funds Conning Asia Pacific Limited - Continues to expand asset management business 14

Agenda Introduction of Cathay FHC 2016 Business Overview and 2017 Outlook Overseas Expansion Business Performance Summary Cathay United Bank Cathay Life Cathay Century Cathay s CSR Efforts M&A Key Highlights Appendix 15 Cathay United Bank Loan & deposit breakdown Loan breakdown Credit Card related Consumer Mortgage Corporate 1,132.3 14.6 90.5 27% 1.3% 8.0% 1,438.3 15.6 108.3 600.2 1.1% 7.5% 41.7% Deposit breakdown Demand Deposit Time Deposit 1,869.8 1,112.5 8% 59.5% 2,014.6 1,216.0 60.4% 496.3 43.8% 531.0 46.9% 714.3 49.7% 757.3 40.5% 798.5 39.6% FY15 FY16 FY15 FY16 16

Cathay United Bank Interest yields Avg. rate of interest-earning assets Interest spread Net interest margin Funding cost 1.95% 1.96% 2.08% 2.06% 2.04% 2.03% 1.99% 1.81% 1.78% 1.76% 1.76% 1.70% 1.79% 1.84% 1.84% 1.83% 1.84% 1.83% 1.75% 1.71% 1.68% 1.66% 1.26% 1.26% 1.33% 1.24% 1.23% 1.23% 1.20% 1.07% 1.05% 1.05% 1.07% 0.69% 0.70% 0.75% 0.82% 0.81% 0.80% 0.79% 0.74% 0.73% 0.71% 0.69% FY12 FY13 FY14 1Q15 1H15 9M15 FY15 1Q16 1H16 9M16 FY16 Note: Credit card related loans are included in the calculation of interest spread. 17 Cathay United Bank Credit quality NPL & Coverage ratio NPL ratio Coverage ratio Gross provision Gross provision Recovery 10.83% 1083% 923% 9.23% 5.4 3.1 1.5 1.3 0.14% 0.15% FY15 FY16 FY15 FY16 Mortgage NPL 0.04% 0.08% 18

Cathay United Bank SME & FX loans SME loans Foreign currency loans 107.3 107.6 116.5 118.8 130.9 141.5 165.4 185.0 148.9 174.0 FY12 As % of total loans 11.5% 10.5% 10.5% 10.6% 9.2% FY12 15.1% 16.1% 16.6% 13.3% 12.2% Note: Total loans exclude credit card revolving balance. 19 Cathay United Bank Offshore earnings Offshore earnings As % of CUB pre-tax profits 30% 5.3 36% 6.9-19% 9.4 7.6 12% 8.5 36.7% 42.4% 46.1% 36.3% 44.3% FY12 FY12 20

Cathay United Bank Fee income Fee income breakdown Others Syndicated loans FX Wealth management Cards related 10.7% 6.2% 2.5% 44.3% 8.8 0.9 0.5 0.2 3.9 25% 11.0 1.1 0.9 0.3 5.2 26% 13.9 1.3 1.1 0.4 6.7 19% 16.6 1.3 1.2 0.4 8.8 11% 18.4 1.3 1.1 0.4 9.8 7.3% 6.1% 2.3% 53.4% 36.3% 3.2 3.5 4.4 4.9 5.7 30.9% FY12 21 Cathay United Bank Wealth management fee Wealth management fee breakdown (NT$MN) FY12 Wealth Management Fee Income 3,894 5,163 6,673 8,779 9,828 YoY growth (%) 17.7% 32.6% 29.2% 31.6% 11.9% FY12 FY13 FY14 FY15 FY16 7,794 6,097 2,3862,307 2,532 2,038 2,106 1,573 1,226 226 175 329 394 332 46 85 124 273 304 Mutual Funds Structured products & Securities Trust & Custody 3,862 Insurance 22

Agenda Introduction of Cathay FHC 2016 Business Overview and 2017 Outlook Overseas Expansion Business Performance Summary Cathay United Bank Cathay Life Cathay Century Cathay s CSR Efforts M&A Key Highlights Appendix 23 Cathay Life Total premium Interest sensitive annuity Investment-linked (non-vul) Investment-linked (VUL) Health, accident and others Traditional life 25.2% 4.3% 5.4% 13.1% 561.4 141.5 24.0 30.3 73.5 561.3 548.0 13.8 10.8 70.5 90.8 26.0 23.3 84.9 87.5 Total premium 636.2 645.2 0.9 0.1 143.4 115.5 17.5 19.7 94.0 89.7 4% 669.9 0.2 55.8 15.6 99.3 0.0% 8.3% 2.3% 14.8% 52.0% 292.1 366.1 335.6 382.5 418.1 499.1 74.5% FY10 FY12 24

Cathay Life FYP & FYPE First Year Premium Interest sensitive annuity Investment-linked (non-vul) Investment-linked (VUL) Health, accident and others Traditional life single paid Traditional life regular paid Annualized First Year Premium Interest sensitive annuity Investment-linked (non-vul) Investment-linked (VUL) Health, accident and others Traditional life 217.4 0.1 114.3 0.3 8.9 2.8 91.0-8% 0.0% 52.6% 0.1% 4.1% 1.3% 41.9% 199.1 0.1 54.6 0.2 9.3 5.2 129.6 0.1% 27.4% 0.1% 4.7% 2.6% 65.1% 102.0 0.0 12.1 0.2 8.9 80.8 32% 0.0% 11.9% 0.2% 8.7% 79.2% 135.0 0.0 5.5 0.2 9.3 120.0 0.0% 4.1% 0.1% 6.9% 88.8% FY15 FY16 FY15 FY16 25 Cathay Life Regular paid policies remain as focus Breakdown of Traditional FYP Traditional life single paid Traditional life - 2 year regular paid Traditional life - 3 year and above regular paid Value for New Business 61% 5% 34% 6% 4% 3% 4% 4% 13% 8% 43% 83% 93% 88% 51% Profit Margin FY12 VNB/FYP 19% 26% 23% 27% 38% VNB/FYPE 54% 70% 75% 57% 56% 31% 8% 75.5 3% 4% 50.0 51.4 53.5 57.6 FY12 FY12 26

Cathay Life Cost of liability Cost of liability (quarterly) Cost of Liability (annual) 5.40% 4.54% 5.07% 4.43% 4.83% 4.78% 4.33% 4.31% 4.29% 4.26% 4.23% 4.63% 4.54% 4.43% 4.33% 4.23% FY13 FY14 FY15 1Q16 1H16 9M16 FY16 FY08 FY10 FY12 FY14 FY16 Note: The figures of cost of liability are reserve-based. 27 Cathay Life Investment portfolio Total investments (1) 3,785.1 4169.1 4,636.6 5,001.1 % % % Amount % Amount Invt Return Cash & Cash equivalents 3.7% 3.2% 1.3% 61.1 1.3% 63.1 0.5% Equity- Domestic 8.9% 8.4% 7.4% 343.0 7.9% 393.9 5.0% Equity- International (2) 4.9% 5.0% 6.2% 289.2 6.4% 319.0 5.0% Bond- Domestic 14.4% 11.0% 8.0% 373.0 6.5% 327.1 2.3% Bond- International (1)(2) 38.9% 43.6% 50.6% 2,344.8 53.8% 2,692.3 5.7% Mortgage & Secured loans 12.2% 12.7% 10.2% 471.5 8.9% 445.2 1.9% Policy loans 4.7% 4.0% 3.6% 169.2 3.3% 164.9 6.1% Real estate 10.6% 10.5% 10.5% 489.0 9.8% 487.9 3.3% Others 1.7% 1.6% 2.1% 95.8 2.2% 107.8 Note: (1) Total assets excluded separate account assets; international bond includes foreign currency deposit and related adjustments (2) Yields of international equity and international bond are pre-hedge investment yields. 28

Cathay Life Investment performance highlight After-hedging investment yield Pre-hedging recurring yield 3.9% 4.4% (1) 4.3% 4.2% 3.3% 4.0% 3.6% 3.4% 3.2% 3.3% 3.4% 4.1% FY12 FY12 Note: (1) FY13 after-hedging investment yield 4.4% was pro forma adjusted number of fair value method on investment property. (2) FY13 pre-hedging recurring yield 3.3% was pro forma adjusted number of fair value method on investment property. (3) Pre-hedging recurring income doesn t include capital gains but rental, interest revenue and cash dividend. Most dividend will be recognized in 2Q & 3Q. Currency Hedging Structure FY16 Hedging cost 0.78% FX policy 30% FX risk Exposure 70% FX Asset NT$3.09 TR Proxy & Open 10% AFS 23% Currency Swap & NDF 67% 29 Cathay Life Cash dividend income & Overseas fixed income by region Cash dividend income Overseas fixed income by region* Others Asia Pacific Europe North America 20.3 22.6 15% 11% 12% 14% 18% 24% 24% 23% 13.7 15.2 24% 20% 18% 19% 45% 44% 45% 44% Note: Exclude overseas deposit and equity. 30

Cathay Life Book value & Unrealized G/L of AFS financial assets Book value Impact to book value from fair value method on investment property Unrealized G/L of AFS financial assets 271.3 328.4 348.2 364.0 40.3 124.0 147.3 18.2-3.9 3.2 Note: FY13 figures reflected the impact from applying fair value method on investment property 31 Cathay Life Distribution channel First Year Premium Annualized First Year Premium Others Bancassurance-CUB Tied agents 2.2% 2.2% 22.1% 22.3% 2.7% 2.0% 19.4% 17.8% 75.8% 75.5% 77.9% 80.3% FY15 FY16 FY15 FY16 32

Cathay Life Operational indicators Persistency ratio Expense ratio FY15 FY16 98.3% 97.6% 91.8% 92.2% 10.3% 10.3% 13 months 25 months FY15 FY16 33 Agenda Introduction of Cathay FHC 2016 Business Overview and 2017 Outlook Overseas Expansion Business Performance Summary Cathay United Bank Cathay Life Cathay Century Cathay s CSR Efforts M&A Key Highlights Appendix 34

Cathay Century Premium income 15.2% 3.6% 4.4% 15.8% 61.0% Others Engineering Marine Fire Auto 17.1 2.6 0.6 0.7 2.7 Premium income 18.5 2.8 3.1 0.5 0.5 0.8 0.8 2.9 2.8 10.4 11.5 11.8 9% 20.7 19.0 3.4 0.5 0.7 3.0 13.0 16.5% 2.6% 3.5% 14.4% 63.0% Distribution channel 0.3% 0.3% 0.3% 0.2% 37.3% 37.8% 38.3% 37.6% 62.4% 61.9% 61.4% 62.2% Market share Retention 13.4% 76.1% 13.6% 76.9% 13.3% 13.6% 74.9% 75.7% 35 Cathay Century Combined ratio Gross combined ratio Gross expense ratio Gross loss ratio Retained combined ratio Retained expense ratio Retained loss ratio 85.3% 32.3% 99.3% 30.7% 93.2% 93.3% 37.1% 35.1% 53.0% 68.6% 56.1% 58.2% FY15 FY16 FY15 FY16 36

Agenda Introduction of Cathay FHC 2016 Business Overview and 2017 Outlook Overseas Expansion Business Performance Summary Cathay United Bank Cathay Life Cathay Century Cathay s CSR Efforts M&A Key Highlights Appendix 37 Continuous efforts in CSR Recognized the highest ranking of IDTR in 2014-2015 A++ A++ Ranked Top 5 of Taiwan Corporate Citizenship Award Top 7 among Taiwan companies Top 2 in Taiwan Financial sector A A- A 19 12 10 9 7 5 Top 10 2011 2012 2013 2014 2015 CDP disclosure score exceeded the worldwide industry average 2011 2012 2013 2014 2015 2016 Recognized by international ESG ratings Selected in DJSI Emerging Markets since 2015 The first Taiwan insurance company included in DJSI Selected in the index since 2015 The only insurance company included in the index Note: 1. Information Disclosure and Transparency Ranking (IDTR) is an important evaluation initiated by TWSE. 2. Taiwan Corporate Citizenship Award is ranked by Taiwan Common Wealth Magazine. 3. CDP has the largest database of corporate climate change related information. 38

Incorporate in the DJSI emerging markets index Cathay FHC has been selected as a DJSI Emerging Markets Component in Sep. 2015 Cathay FHC is committed to develop ESG in the long term. The company attained the highest rating of A++ from TWSE Information Disclosure and Transparency Ranking, and became one of the top 5% of listed companies in Corporate Governance Evaluation of Taiwan DJSI in the World Dow Jones Sustainability Index (DJSI) launched in 1999, which is based on an analysis of corporate economic, environmental and social performance and select top 10% performers in each industry as its index components. The DJSI now is the most recognized sustainability index in the world. 39 CUB is the first EPFI in Taiwan EPFIs in the World 82 Equator Principles Financial Institutions (EPFIs) in 36 countries have officially adopted the EP as of March 2016. 8 of EPFIs are Asian financial institutions. North Latin Middle Region Europe Africa Oceania Asia America America East EPFIs no. 33 14 10 9 5 8 3 China - 1 Japan - 4 India - 1 Taiwan - 2 40

Cathay Life complies with the PSI Cathay Life insurance started to comply with the PSI at Q1 of 2016 Launched at the 2012 UN Conference on Sustainable Development Served as a global framework for the insurance industry to address environmental, social and governance risks and opportunities. A total of 55 insurance companies signed the PSI initiative (2017/2). Eight signatories are from property insurers and reinsurers in the Asia region. Samsung Fire & Marine Insurance Damage Insurance Nipponkoa Tokyo Marine Nichido Fire Insurance 41 About the PSI, Our Strategy and Practice I. We will embed in our decision-making environmental, social and governance issues relevant to our insurance business.. We will work together with our clients and business partners to raise awareness of environmental, social and governance issues, manage risk and develop solutions.. We will work together with governments, regulators and other key stakeholders to promote widespread action across society on environmental, social and governance issues.. We will demonstrate accountability and transparency in regularly disclosing publicly our progress in implementing the Principles. Not only value the financial performance, but devote efforts to CS development. We apply our core competitiveness to contribute and be the driving force to the development of the industry. Improve financial inclusion, reinforce operation management and augment the power of the value chain to the environment and society. Expand influences to employees, clients, business partners and the general publics. Starting from 2017, we will proactively release disclosure report yearly. 42

Agenda Introduction of Cathay FHC 2016 Business Overview and 2017 Outlook Overseas Expansion Business Performance Summary Cathay United Bank Cathay Life Cathay Century Cathay s CSR Efforts M&A Key Highlights Appendix 43 M&A Transaction: Conning in USA Cathay Life acquired 100% stake of Conning Holdings Corporation in 2015 for US$240 million. P/AuM was 0.26% upon announcement Cathay FHC expected to expand its global presence in asset management and realize Banking + Insurance + Asset Management strategy Conning Asset Management Founded in 1912, Conning is a leading global investment management firm focusing on insurers and pension funds. It ranks as top 10 globally in insurance mandate with $95 billion AuM (FY2016) Conning operates through its offices in North America, Europe and Asia Assets by Client Type (US$BN) Assets Property-Casualty 37.4 Life 38.2 Managed CLO Funds 10.5 Pension Plans 3.0 Healthcare 1.8 Banks 1.6 Others 2.5 Total AUM 95.1 Assets by Region (US$BN) Assets North America 65.6 United Kingdom 5.5 Bermuda 1.1 Continental Europe 1.9 APAC 20.5 Other 0.5 Total AUM 95.1 Note: Totals may not sum due to rounding. 44

M&A Transaction: RCBC in Philippines Cathay Life invested in 20% shares of Rizal Commercial Banking Corporation ( RCBC ) with 3 board seats of the company in 2015. Total investment was PHP17.92 billion (c. US$400 million). Post-money P/B was c.1.57x upon announcement Cathay Life may increase its investment in RCBC via placement or open market purchase, up to 30% RCBC s Performance RCBC is one of the large private-owned banks in terms of total assets, with 477 branches and over 6,000 employees Total loan ROE ROA (PHP$BN) 297 306 13.7% 1.6% 259 12.2% 11.0% 9.4% 10.0% 1.4% 1.3% 1.2% 1.2% 215 9.2% 9.3% 1.0% 1.1% 6.4% 0.8% RCBC Industry RCBC Industry 45 M&A Transaction: Bank Mayapada in Indonesia Cathay Life has completed the acquisition of 40% stake in PT Bank Mayapada International, Tbk ( Bank Mayapada ) Stage 1 acquire 24.9% stake (USD 164 mn) completed in 1H15 Stage 2 acquire 15.1% stake completed in Oct 2016 Total investment will be ~IDR3.52tn (USD 295 million), representing a ~3.15x P/B multiple upon announcement Bank Mayapada s Performance Total loan ROE* ROA* (IDR$TR) 47.2 2.3% 17.7 26.0 34.2 18.6% 18.1% 16.7% 16.5% 17.7% 18.6% 13.6% 13.5% 1.9% 2.1% 2.1% 1.8% 1.8% 1.6% 1.4% Bank Mayapada Industry Bank Mayapada Industry Note: ROE: Profit After Tax/Average Total Equity, ROA: Profit After Tax/Average Total Assets; ROE and ROA in the unaudited report are 25.5%(=Profit After Tax /Average Core Capital (Tier1) and 2.4% (=Profit Before Tax/Average Total Assets) respectively. 46

Embedded Value & Appraisal Value Valuation date 2014/12/31 2015/12/31 In-force business investment yield Future one year s new business investment yield 4.01% ~ Year 2034 5.05% for NTD policies 4.40% ~ Year 2034 6.07% for USD policies 2.75% ~ Year 2034 3.02% for Interest crediting annuity (Equivalent investment yield: 4.46% rolling over to 2015: 4.49%) 2.54%~ Year 2034 5.03% for NTD policies 4.47% ~ Year 2034 6.07% for USD policies 2.19% ~ Year 2034 2.62% for Interest crediting annuity 3.95% ~ Year 2035 5.02% for NTD policies 4.67% ~ Year 2035 5.81% for USD policies 2.77% ~ Year 2035 3.00% for Interest crediting annuity (Equivalent investment yield: 4.40%) 2.96%~ Year 2035 4.90% for NTD policies 4.37% ~ Year 2035 5.81% for USD policies 1.98% ~ Year 2035 2.28% for Interest crediting annuity Risk discount rate 10% 10% Adjusted net worth 403 393 Value of in-force business 434 490 Cost of capital (CoC) -128-148 Value of in-force business (After CoC) 306 342 Embedded Value (EV) 709 735 EV / per share 133.6 (56.4) 138.5 (58.5) Appraisal Value (AV) 1,191 1,249 Value of future one year s new business (After CoC) 55.5 59.0 AV / per share 224.4 (94.8) 235.3 (99.4) Note: (1) EV/AV calculation does not include business of Cathay Life in China and Vietnam. (2) per share = per share of Cathay Life; (per share) = per share of Cathay FHC (3) The outstanding shares of Cathay Life and Cathay FHC are 5.3bn and 12.6bn,respectively. (4) May not sum to total due to rounding. 47 Summary Embedded value Valuation date 2014 2015 Growth rate 1Q16 Equity 325 346 6% -- Adjusted net worth 403 393-2% -- Value of in-force business 434 490 13% -- Cost of capital (CoC) -128-148 16% -- Value in-force business (after CoC) 306 342 12% -- Value of one year s new business Appraisal value (20 years NB) Basic Value per share Embedded value 709 735 4% -- First year premium (FYP) 233.4 217.4-7% 52.1 First year premium equivalent (FYPE) 71.1 102.0 43% 39.8 Value of one year s new business (V1NB) 53.5 57.6 8% 20.5 Profit margin (V1NB/FYP) 23% 27% -- 39% Profit margin (V1NB/FYPE) 75% 57% -- 51% Profit margin (V1NB/FYP)(investmentlinked(non-VUL)is excluded) 53% 53% -- 50% Multiple 8.7 8.7 -- -- Appraisal value 1,191 1,249 5% -- EV / per share of Cathay FHC 56.4 58.5 4% -- AV / per share of Cathay FHC 94.8 99.4 5% -- Note: (1) Basic EV and AV per share is based on weighted average of outstanding shares 12.6bn. (2) Totals may not sum due to rounding. 48

Economic Assumptions: In-force business investment yield Investment return assumptions for the value of in force business of NTD-denominated policies as of the end of 2014 & 2015. Investment return assumptions for the value of in force business of USD-denominated policies as of the end of 2014 & 2015. 49 Economic Assumptions: Future one year s new business investment yield Investment return assumptions for the value of future one year s new business of NTDdenominated policies as of the end of 2014 & 2015. Investment return assumptions for the value of future one year s new business of USDdenominated policies as of the end of 2014 & 2015. Policy Year Policy Year 50

Fair Value of Insurance Contracts: Risk-free Rate (NTD) Calculate 3-yr daily MA yield curve based on the zero coupon yield curve announced by OTC (Svensson) and use the extrapolation method provided by EU Solvency II QIS 5 to contruct the complete yield curve. 5.00% 4.50% 4.00% Construct Yield Curve Based on Spot Rates of Year 1-10 Spot Rate (incl. liquidity premium 3.50% Spot Rate 3.00% 2.50% 2.00% 1.50% 1.00% 10-yr Spot Rate 1.44% 30-yr Spot Rate 2.72% 100-yr Spot Rate 3.73% Single Equivalent Discount Rate 2.76% Calculated Based on Net Cash Flows as of Dec. 31, 2013 0.50% 0.00% 1 11 21 31 41 51 61 71 81 91 101 Note:The Spot Rate mentioned above refers to 3-yr daily MA yield curve. 51 Fair Value of Insurance Contracts: Liquidity Premium If insurers apply fair value model for investment property, their insurance liabilities should also be assessed under fair value basis. Taiwan adopts a relatively strict standard of liquidity premium compared to the international level of 0.5%~1%. NTD 4% : 1.50% NTD 4% : 0.80% 4% : 0.25% 4% : 0.25% Mandatory 0.5% ~ 1.0% Non-NTD 0.25% Non-NTD 0.25% NT Equivalent Level 0.57% Based on Cathay Life s product structure and the regulations on liquidity premium, the equivalent level is 0.57%. According to the regulations on liquidity premium mentioned above, Cathay Life s reserve is enough and allowed to recognize after tax full amount of investment property appraisal gain under fair value method into shareholder s equity. 52

Special reserve of unrealized gains on property 67.9-12.5 55.4 11.1 (20%) Retained as special reserve in liability 44.3 (80%) Recovered over 5 years (capped at NT$10bn per year). Such accounting profit is restricted from dividend payout. (2) Net unrealized gains on investment property (1) Negative impact of first adoption Special reserve of unrealized gains on property Note: (1) Net unrealized gains on investment property is calculated by discounting rental income at industry average WACC(3.29%), net of related taxes. The amount is therefore well below the property market value. (2) The recovery of such special reserve is subject to regulatory approval each year. Hence, the actual recovery depends on the fair valuation results each year. 53 Illustration of 2013 pro forma BV of Cathay FHC Cathay Financial Holdings Cathay Life Cathay United Bank Appraisal gain based on fair value method on 2013/1/1 Appraisal gain from property reclassification Additional property appraisal gain in 2013 Impact to CUB from fair value method Intercompany adjustments Consolidated impact to Cathay FHC 95.6 16.3 12.1 1.9 124.0 31.7 94.3 94.3 248.3 285.3 342.5 285.3 379.5 (Original) Cathay FHC book value (New) Pro forma FHC book value Note: Totals may not sum due to rounding. 54

Capital adequacy Cathay FHC CAR (%) CUB Capital Adequacy (%) BIS 13.5 16.2 16.4 14.2 Tier2 3.4 4.7 4.4 3.5 144.2 151.0 146.3 Tier1 10.1 11.5 12.0 10.7 118.8 Cathay Life RBC(%) 287.4 304.6 304.8 223.7 55 Cathay Life Overseas bond breakdown by currency and rating Overseas bond by currency (FY16) Overseas bond by rating (FY16) Euro, 0.2% GBP, 1% Others, 1% AUD, 1% CNH, 4% Non-IG, 6% Fully hedged to USD USD, 93% IG, 94% Note: Totals may not sum due to rounding. 56

Cathay Financial Holdings FY16/ 4Q16/ (NT$MN) FY15 4Q15 Income Statement Data (Consolidated) FY14 FY15 FY16 % Chg 4Q15 4Q16 % Chg Operating Income Net interest income 125,123 139,998 153,478 10% 37,290 39,389 6% Net commission and fee 369 (4,480) (7,913) -77% (1,571) (1,835) -17% Net earned premium 488,327 535,858 622,916 16% 146,769 167,719 14% Change in liability reserve (290,800) (306,598) (408,614) -33% (67,539) (103,580) -53% Net claims payment (285,869) (309,104) (308,697) 0% (95,929) (85,587) 11% Investment income 75,751 63,734 37,782-41% 1,653 5,098 208% Contribution from associates-equity method 168 1,108 1,202 9% 470 251-47% Other net non-interest income 3,449 14,151 40,512 186% 4,004 5,650 41% Bad debt expense (2,982) (2,467) (5,232) -112% (1,913) (1,449) 24% Operating expense (57,477) (65,067) (75,250) -16% (19,385) (22,435) -16% Income before taxes 56,058 67,132 50,185-25% 3,848 3,221-16% Income taxes (6,427) (9,250) (2,145) 77% (851) 5,568 755% Net income 49,631 57,882 48,039-17% 2,998 8,790 193% EPS (NT$) 3.93 4.58 3.79 0.25 0.71 Dividend Payout Cash dividend per share 2.00 2.00 Stock dividend per share 0.00 0.00 Weighted average outstanding shares 12,563 12,563 12,563 (Millions of common shares) Balance Sheet Data Total assets 6,944,837 7,568,975 8,135,137 Total shareholders' equity 439,120 461,062 529,824 Operating Metrics ROAE (Consolidated) 12.10% 12.86% 9.70% ROAA (Consolidated) 0.76% 0.80% 0.61% Double leverage ratio(inc. preferred stock) 113% 111% 105% Capital Adequacy Metrics Capital Adequacy Ratio 144% 151% 146% Notes: (1) All data and information on this page is provided for informational purposes only, and may subject to adjustment. For more details, please refer to our official financial reports. (2) Starting from 2015/1/1, Cathay FHC adopted IFRS 2013 version and has adjusted FY14 financial data to pro-forma basis. FY14 total assets, liabilities, and shareholders' equity have also been adjusted accordingly. (3) Total may not sum due to rounding.

Cathay Life FY16/ 4Q16/ (NT$MN) FY15 4Q15 Income Statement Data (Consolidated) FY14 FY15 FY16 % Chg 4Q15 4Q16 % Chg Net written premium 472,630 519,014 605,910 17% 142,019 163,611 15% Net earned premium 471,849 518,250 605,231 17% 141,560 163,048 15% Reinsurance commission earned 4,740 200 363 81% (21) 4 121% Fee income 5,943 5,762 5,542-4% 1,353 1,446 7% Recurring investment income 124,152 140,977 161,051 14% 33,940 37,108 9% Gain on disposal of investment Realized gain (loss)-equity 23,357 30,072 14,346-52% 3,375 6,367 89% Realized gain (loss)-debt 12,828 14,804 29,382 98% 1,995 2,699 35% Gain on investment property 16,579 11,074 5,000-55% (237) (255) -8% FX and others, net (7,166) (13,101) (17,469) -33% (4,466) (5,733) -28% Investment income, net 169,750 183,827 192,310 5% 34,608 40,187 16% Other operating income 9 914 5,032 450% 800 1,392 74% Separate account revenues 115,040 17,303 39,589 129% 12,141 6,862-43% Net claims payment (275,195) (298,102) (297,201) 0% (92,114) (82,345) 11% Changes in liability reserves (290,109) (305,864) (408,398) -34% (67,619) (103,455) -53% Acquisition and commission expense (32,405) (33,238) (38,901) -17% (8,842) (10,548) -19% Other operating costs (4,544) (5,541) (6,381) -15% (1,642) (1,812) -10% Financial cost (106) (296) (413) -40% 18 (48) -363% Separate account expense (115,040) (17,303) (39,589) -129% (12,141) (6,862) 43% Operating expense (16,869) (23,021) (30,768) -34% (7,400) (9,468) -28% Net non-operating income 1,482 1,265 1,956 55% 412 562 36% Income taxes (2,810) (5,710) 1,861 133% (68) 5,906 8764% Net income 31,734 38,447 30,235-21% 1,045 4,870 366% Balance Sheet Data Total assets 4,704,976 5,179,877 5,556,950 General account 4,242,710 4,699,309 5,058,936 Separate account 462,267 480,568 498,014 Reserves for life insurance liabilities 3,770,679 4,228,117 4,567,324 Total liabilities 4,376,595 4,831,642 5,192,967 Total shareholders' equity 328,382 348,235 363,984 Operating Metrics First Year Premium(FYP) 233,379 217,378 199,082 First Year Premium Equivalent(FYPE) 71,147 102,002 135,035 Expense ratio 9.9% 10.3% 10.3% 13-M persistency ratio 97.9% 97.6% 98.3% 25-M persistency ratio 94.9% 91.8% 92.2% ROAE 10.54% 11.36% 8.49% ROAA 0.71% 0.78% 0.56% Capital Adequacy Metrics RBC ratio (Standalone) 287% 305% 305% Notes: (1) All data and information on this page is provided for informational purposes only, and may subject to adjustment. For more details, please refer to our official financial reports. (2) Starting from 2015/1/1, Cathay Life adopted IFRS 2013 version and has adjusted FY14 financial data to pro-forma basis. FY14 total assets, liabilities, and shareholders' equity have also been adjusted accordingly. (3) Total may not sum due to rounding.

Cathay United Bank FY16/ 4Q16/ (NT$MN) FY15 4Q15 Income Statement Data (Consolidated) FY14 FY15 FY16 % Chg 4Q15 4Q16 % Chg Operating Income Net interest income 25,779 26,729 25,910-3% 6,433 6,937 8% Fee income 11,806 14,344 15,745 10% 3,122 3,783 21% Investment income 7,326 5,599 8,278 48% 1,034 1,717 66% Other income 1,064 1,380 1,222-12% 294 139-53% Net operating income 45,975 48,052 51,154 6% 10,884 12,576 16% Operating expenses (22,804) (24,851) (26,959) -8% (6,677) (7,363) -10% Pre-provision profit 23,170 23,201 24,195 4% 4,207 5,213 24% Net provisions for possible losses (2,471) (1,922) (4,455) -132% (1,748) (1,295) 26% Income before taxes 20,700 21,279 19,740-7% 2,459 3,918 59% Income tax (2,885) (2,513) (2,229) 11% (291) (514) -77% Net income 17,814 18,767 17,511-7% 2,168 3,404 57% Balance Sheet Data Total assets 2,243,958 2,383,377 2,566,669 Loans, net 1,119,281 1,127,807 1,437,531 Financial assets 649,497 791,192 849,989 Total liability 2,096,340 2,226,608 2,406,701 Deposits 1,739,023 1,881,657 2,032,600 Financial Debenture Payable 67,614 51,900 51,900 Total shareholders' equity 147,617 156,769 159,968 Operating Metrics Cost income ratio 49.60% 51.72% 52.70% ROAE 12.71% 12.33% 11.06% ROAA 0.84% 0.81% 0.71% Assets Quality NPL 3,277 1,599 2,133 NPL ratio 0.29% 0.14% 0.15% NPL provisions 17,675 17,323 19,686 Coverage ratio 539% 1083% 923% Capital Adequacy Metrics BIS ratio (Standalone) 16.2% 16.4% 14.2% Tier I Ratio (Standalone) 11.5% 12.0% 10.7% Notes: (1) All data and information on this page is provided for informational purposes only, and may subject to adjustment. For more details, please refer to our official financial reports. (2) Starting from 2015/1/1, Cathay United Bank adopted IFRS 2013 version and has adjusted FY14 financial data to pro-forma basis. FY14 total assets, liabilities, and shareholders' equity have also been adjusted accordingly. (3) Total may not sum due to rounding.

Cathay Century FY16/ 4Q16/ (NT$MM) FY15 4Q15 Income Statement Data (Consolidated) FY14 FY15 FY16 % Chg 4Q15 4Q16 % Chg Premium income 21,279 22,449 22,774 1% 6,334 5,522-13% Net written premium 16,080 17,254 17,390 1% 4,853 4,209-13% Net earned premium 15,626 17,169 17,213 0% 4,535 4,032-11% Reinsurance commission earned 683 517 526 2% 136 115-16% Fee income 45 48 44-7% 14 10-25% Investment 918 972 2,082 114% 204 8-96% Interest income 609 564 568 1% 151 127-16% Other investment income, net 308 408 1,514 271% 54 (118) -320% Other operating income 7 15 0-100% 1 0-100% Net claims payment (8,747) (9,292) (9,559) -3% (2,790) (2,196) 21% Changes in liability reserves (691) (734) (209) 71% 79 (119) -250% Commissions and other operating costs (1,218) (1,402) (1,289) 8% (386) (251) 35% Operating expenses (5,823) (6,197) (5,974) 4% (1,668) (1,383) 17% Operating income 801 1,095 2,834 159% 125 216 73% Net non-operating income 29 (4) (1) 81% 9 6-33% Income taxes (174) (287) (492) -71% (58) (54) 7% Net income 657 804 2,342 191% 77 168 120% Balance Sheet Data Total assets 35,863 42,106 38,250 Total stockholders' equity 6,829 7,219 9,216 Operating Metrics Gross Combined ratio 90.7% 85.3% 99.3% Net Combined ratio 99.3% 93.2% 93.3% ROAE 10.71% 11.44% 28.50% ROAA 1.94% 2.06% 5.83% Capital Adequacy Metrics RBC ratio (Standalone) 324% 359% 385% Notes: (1) All data and information on this page is provided for informational purposes only, and may subject to adjustment. For more details, please refer to our official financial reports. (2) Starting from 2015/1/1, Cathay Century adopted IFRS 2013 version and has adjusted FY14 financial data to pro-forma basis. FY14 total assets, liabilities, and shareholders' equity have also been adjusted accordingly. (3) Total may not sum due to rounding.