CATHAY RED — Investor Presentation 2021

Nov 22, 2021

國泰建設股份有限公司 Cathay Real Estate Development Co., Ltd.

Disclaimer Statement

• This presentation contains forward looking statements which are estimated based on the current status of Cathay Real Estate Development Co., Ltd. and general economic conditions. The forward looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those contained in the forward looking statements. Potential risks and uncertainties include such factors as general economic conditions, foreign exchange fluctuations, rising costs of raw materials, competitive products and pricing pressures and regulatory developments.

• Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved.

• Cathay Real Estate Development Co., Ltd. expressly disclaims any obligation to review, update or correct these materials after the date thereof. Cathay Real Estate Development Co., Ltd. may update, amend, supplement or otherwise alter the information contained in any such materials by subsequent presentations, reports, filings, or other means without notice. This presentation may not be stored, copied, distributed, transmitted.

Content

• Company Brief

• Financial Data

• Consolidated Income Statement

• Consolidated Balance Sheet

• Business Strategy & Operating Results

• Ordinary Business：Current progress of the project execution

• Re-investment：Current status and future plan

• Real-estate Market Prospects

• Presale Market Overview

• The Factors Affect Housing Market

Company Brief

==> picture [678 x 322] intentionally omitted <==

----- Start of picture text -----

Domestic
Re-investment
Domestic  Set up Cathay Real Estate
Management in 2005.
Ordinary Business  Set up Cathay Healthcare
Management in 2011.
 Leading brand in Established in 1964  Set up Cathay Hospitality
housing development. Management in 2012;
with 115.96
 Number of households combined with Consulting
billion in capital. in 2019.
built: 54,356.
Listed on TWSE  Set up Cymbel Medical
 Building area built: Network in 2019.
in 1967, stock code
.
approx. 8,376,566m [2]
2501. Commercial
 Joint Venture
Development
 Courtyard hotel cooperated
with Marriot in 2018.
 Liberty Stationery Corp. office
building rebuilt in 2023.
 Hotel built cooperated
with Mitsui Fudosan in 2025.
----- End of picture text -----

Strategy as Real Estate Developer_

Total Quality Management, Business Expansion, Sustainable Brand

1

Consolidated Income Statement

EPS、Cash Dividend：NTD/Per Share

Item	2018	2018	2019	2019	2020	2020	2021Q3	2021Q3
	NT$bn	% of Rev.	NT$bn	% of Rev.	NT$bn	% of Rev.	NT$bn	% of Rev.
Revenue	142.9	100%	116.2	100%	139.7	100%	64.1	100%
Gross Profit	37.2	26%	31.6	27%	31.6	23%	10.7	17%
Operating Profit	22.3	16%	15.0	13%	15.5	11%	(2.6)	(4%)
Non-operating revenue and expenses	22.8	16%	0.7	1%	1.3	1%	0.9	1%
Net Profit	42.4	30%	14.0	12%	15.2	11%	(2.3)	(4%)
Parent Net Profit	36.1	25%	13.7	12%	14.8	11%	(2.2)	(4%)
EPS	3.11		1.18		1.28		(0.19)
Cash Dividend	2.1		1.0		1.0		-

2

Consolidated Balance Sheet(1/2)

Item	2018	2018	2019	2019	2020	2020	2021Q3	2021Q3
	NT$bn	%	NT$bn	%	NT$bn	%	NT$bn	%
Land for Construction	81.5	17%	71.5	13%	100.8	17%	152.0	23%
Construction in Progress	150.6	31%	160.1	30%	132.2	22%	169.5	26%
Buildings and Land Held for Sale	20.5	4%	28.5	5%	29.1	5%	23.2	3%
Others	7.4	1%	5.4	1%	27.8	5%	7.5	1%
Total Inventories	260.0	53%	265.5	49%	289.9	49%	352.2	53%
Cash and Cash Equivalents	16.2	3%	21.2	4%	34.0	6%	31.2	5%
Investment Property	111.3	23%	86.4	16%	83.7	14%	82.5	12%
Total Assets	487.7	100%	537.4	100%	595.0	100%	660.4	100%

3

Consolidated Balance Sheet(2/2)

	Equity Per Share：NTD/Per Share	Equity Per Share：NTD/Per Share	Equity Per Share：NTD/Per Share	Equity Per Share：NTD/Per Share	Equity Per Share：NTD/Per Share	Equity Per Share：NTD/Per Share	Equity Per Share：NTD/Per Share	Equity Per Share：NTD/Per Share
Item	2018		2019		2020		2021Q3
	NT$bn	%	NT$bn	%	NT$bn	%	NT$bn	%
Total Borrowing	175.8	36%	194.0	36%	213.5	36%	279.8	42%
Advances from Customers	36.5	8%	35.8	7%	45.1	8%	58.7	9%
Total Liabilities	234.3	48%	292.5	54%	341.0	57%	414.4	63%
Capital (per share NT$10)	116.0	24%	116.0	22%	116.0	20%	116.0	18%
Parent Equity	250.7	51%	243.8	45%	244.6	41%	237.2	36%
Total Equity	253.4	52%	244.8	46%	254.0	43%	246.0	37%
Equity Per Share	21.62		21.02		21.09		20.45

★Based on Parent Equity.

4

Business Strategy

• Business Model

• Utilize premium brand image to create products’ added value.

• Market driven sales strategy.

• Delivery perpetual services

• Land Bank

• Mainly the lands in downtown area, adjoining lands in suburbs with complete residential functions.

• Diversified land development models (including joint venture, commercial urban renewal, … etc.)

5

Operating Results

• Positive Profitability Expected

• 3 new projects completed this year are continually handed over to buyers.

• Outstanding sales of listed projects which will be completed during 2021 to 2022.

• Sufficient Planned Development in Reserve  Approximately 561 billion dollars reserved for planned residential development.

• Approximately 72% of the planned development located in the northern area (north of Hsinchu).

6

Home-Sales Performance(1/2)

建案	區位	總銷 (億元)	銷售率 (%)	完工年度	完工年度	完工年度
				2021	2022	2023
國泰豐格	New Taipei	18	100%	
國泰上城	New Taipei	17	100%	
文府硯	Tainan	38	95%	
國泰朋	New Taipei	25	100%		
國泰田	New Taipei	31	100%		
國泰悅	New Taipei	18	100%		
國泰Mega+	Taichung	28	100%		
國泰豐和	New Taipei	20	100%			

7

Home-Sales Performance(2/2)

建案	區位	總銷 (億元)	銷售率 (%)	完工年度	完工年度	完工年度
				2023	2024	2025
國泰豐碩	New Taipei	36	100%	
國泰川青	Taoyuan	25	100%	
國泰華威豐年	Taipei	23	98%		
國泰和河	New Taipei	20	100%		
國泰溪境	Taoyuan	25	100%		
國泰Most+	Taichung	47	99%		
國泰悠陽	Taipei	35	100%			
國泰The Park	Taichung	34	96%			
UNi PARK*	Tainan	57	95%			

*Joint Venture.

8

Re-investment-Current status and future plan

Cathay Real Estate Development

Cathay Real Cathay Cathay Hospitality Estate Healthcare Management Management Management R1 R2 Madison Taipei Minsheng Taipei Renai Taipei Courtyard® by Postpartum Medical Zhonghua Zhongxiao Taipei Dunnan Taipei Marriott® Taipei Care: Network: World Building, Building, Taipei Ximen Tainan Health Check: Taipei Taipei Tainan Zhongshan Kaohsiung Dunnan Cozzi Blu Neihu Future: Hsinchu Future: Hsinchu Neihu Tainan Hsinchu Ximen Building, Anhe Commercial Physical fitness: Taipei Building Tainan Sheraton Grande Minsheng 9 Taipei Hotel Commercial Building

Presale Market Overview

Trading Volume Index

Cathay Real Estate Index

==> picture [87 x 10] intentionally omitted <==

----- Start of picture text -----

Housing Price Index
----- End of picture text -----

==> picture [83 x 13] intentionally omitted <==

----- Start of picture text -----

全國(TAIWAN)
----- End of picture text -----

Housing market presents rising price and stable volume in the past year. In Q2, level 3 Covid-19 alert has made a critical impact on domestic economic. The trading volume also had a correction due to pandemic influence,but the volume has come back to Price normal level in Q3. As for housing price, it corrected at peak in 2013 and has adjusted & gradually by quarter since 2016. Even if housing market got interfered by pandemic, Volume the housing price remain rising. And consumer confidence increases with the expectation of rising housing price due to the cost of materials increasing. The key to remaining booming housing market is whether trading volume can keep growing.

10

The Factors Affect Housing Market

The government strived to launch policies for housing market stabilization. For instance, the government proceeds land auction and the policy of Statute for Expediting Reconstruction of Urban Unsafe and Old Building to provide safe Government residential environment. As for fiscal policy, strengthening selective credit Policy control measures adjusts proper liquidity flooding property markets. Also, through providing for timely and accurate real estate prices and regulating “purchase orders” measures increases the buyers and sellers’ information transparency. Overall, the government continues to execute the Healthy Real Estate Market Plan to help housing market toward a positive development.

The major economies rebooted economic activities and made a great performance of export sales. And global easing monetary policies also stimulates Economic the investment market. As pandemic had been controlled and vaccination Factors coverage increasing, domestic economy and livelihood of people has recovered gradually. Overall, along with significant economic performance and the major industries has adopted to new working patterns in post-pandemic era, raising the vaccination rate would be the key to remain economic prosperity.

11