THSRC — Interim / Quarterly Report 2020

Mar 10, 2021

Ticker Symbol: 2633

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Taiwan High Speed Rail Corporation 4Q'2020 Operation Report

3/11/2021

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Copyright © Taiwan High Speed Rail Corporation. All Contents Confidential.
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Safe Harbor Notice

• The information contained in this presentation and its accompanying announcements, including content relating to business outlooks, financial operations, and business forecasts, is based on information derived from internal corporate data and external economic developments as a whole.

• The Company's actual operations, financial conditions, and operational performance may differ from forecasted information; this may be due to various factors including but not limited to market demand, changes in policies and regulations and overall economic conditions, and other factors or risks beyond the Company’s control.

• The information provided in this presentation reflects the Company's current views about the future; correctness, completeness, or reliability of said views are not explicitly or implicitly expressed or warranted. The Company is not responsible for updating or amending changes or adjustments made to the contents of this presentation, if such changes or adjustments should occur in the future.

• For the convenience of readers, this presentation has been translated into English from an original Chinese version. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, information in the Chinese-language presentation shall prevail.

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AGENDA

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I. BUSINESS OVERVIEW II. FINANCIAL OVERVIEW III. INTER-CITY PUBLIC TRANSPORT MARKET IV. OPERATION OUTLOOK

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I. BUSINESS OVERVIEW

1. High-Speed Rail Network

2. Operational Performance

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1. High-Speed Rail Network

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Stations
Bases
Operation Area 11Cities
Population 90 %
Route Length (km) 350
Stations 12
Maintenance Bases 5
Train Model 700T
Total Train Sets 34
Maximum Speed 300 km/h
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2、Operational Performance

1. Train Frequency

(Daily Frequency)

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Daily Two-way Service (WEEKEND) Daily Two-way Service (WEEKDAY)

166 133 ✓ 1,016 total weekly train services was scheduled since July 2019 Off-Peak Days (Tue.~Wed.): 133 train services per day Peak Days (Fri.~Sun.): 166 train services per day

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2. Trend of Transportation Capacity & Volume

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Train Services
(Frequency)
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(mn-km)
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1.2%
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Seat-Km

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1.3%
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Transportation Capacity

The number of train services in 2020 slightly dropped compared with last year.

Ridership

Passenger-Km

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(thousand persons)
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(mn-km)
17.4%
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15.1%
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Transportation Volume

The ridership increased to 16,983,000 during Q4, a slight decrease of 3.3% compare to the same period in 2019.

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3. Ridership & Loading Factor

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(thousand persons/day)

Load Factor (%)

• ✓Daily Avg. Ridership：2020 YoY -15.3% ✓Load Factor：2020 YoY -11.1PP

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4. Trend of Passenger Growth by Station

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※ Top 5 Stations with Large Passenger Use (thousand persons，2020)

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(thousand persons) 1 TPE 2 TAC 3 ZUY 4 TAY 5 HSC
13,178 9,496 7,725 5,742 5,413
16%
18%
19%
19%
11%
2%
16%
7% 15%
13%
10%
13%
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5. Operational Performance

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	2020.01.01 ~ 2020.12.31	2007.01.05 ~ 2020.12.31
Train Services	53,076	671,736
Cumulative Passengers (millionpassengers)	57.2	653.4
Passenger Kilometers (million-km)	9,912	124,296
Loading Factor	56.94%	56.83%
Reliability	100%	99.67%
Punctuality (delay< 5 min)	99.71%	99.51%
Avg. Delay Time (min)	0.13	0.19
Accidents resulting in Liabilities	0	0

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II. FINANCIAL OVERVIEW

1. Financial Performance

2. Financial Risk Management 3. Corporate Credit Rating & Market Cap

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1. Financial Performance

1. Income Statement

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(NT$mn)	2020	2020	2019	2019	Variance Amount	YoY %
Operatingrevenue	39,137	100%	47,507	100%	(8,370)	-17.6%
Operatingcosts	(26,095)	-67%	(25,763)	-54%	(332)	1.3%
Gross Profit	13,042	33%	21,745	46%	(8,703)	-40.0%
Operatingexpenses	(1,235)	-3%	(1,233)	-3%	(2)	0.2%
Net OperatingIncome	11,807	30%	20,512	43%	(8,705)	-42.4%
Non-operating income and expenses
Interest expenses	(5,919)	-15%	(6,455)	-13%	536	-8.3%
Stabilization reserve	(886)	-2%	(6,524)	-14%	5,638	-86.4%
Others	418	1%	242	-	176	72.7%
Net Income before tax	5,419	14%	7,775	16%	(2,356)	-30.3%
Income tax	424	1%	232	1%	192	82.8%
Net Income	5,843	15%	8,007	17%	(2,164)	-27.0%
EPS	1.04		1.42

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２. Net Profits & Operating Revenues

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1) Revenue Structures

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|||||
|---|---|---|---|
|(NT$bn)|2020|2019|YoY%|
|Railway Revenue|37.90|46.11|-17.8%|
|Non-railway Revenue|1.23|1.40|-11.9%|
|Total|
|39.14|47.51|-17.6%|

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Non-railway revenues (rental incomes, onboard sales) dropped due to the impact of the epidemic.

Note: Non-railway revenues mainly include rental incomes, advertising revenues, and onboard sales

2. Net Profits & Operating Revenues

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2) Operating Revenue, Gross Profit & Net Income

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(NT$bn)
(%)
✓ The operating revenue, gross profits rate, and net
income rate reached lowest point during the Q2,
but rose in the Q3 &Q4 of 2020.
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3. EBITDA & EBITDA Margin

(NT$bn)

✓ EBITDA

• 2020: YoY -24.7%

(%)

✓ EBITDA Margin

• ’18~’19: 72%~73%

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• Due to impact of the pandemic in

• ‘20，EBITDA Margin reduced to

66.4%.

4. Balance Sheets

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(NT$mn)	2020.12.31	2019.12.31
Current assets	38,621	42,710
Operatingconcession asset	378,291	390,113
Other non-current assets	10,654	10,236
Total assets	427,567	443,060
Current liabilities	7,067	13,279
Non-current liabilities	350,413	358,703
Total liabilities	357,480	371,982
Common stock	56,283	56,283
Capital surplus	173	173
Legal reserve & unappropriated earnings	13,631	14,621
Total equity	70,087	71,077
Total liabilities & equity	427,567	443,060

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5. Statement of Cash Flows

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(NT$mn)

2020.12.31

2019.12.31

Cash & cash equivalents at the be innin of the eriod g g p Cash flows from o eratin activities p g Cash flows from investin activities g Cash flows from financin activities g Net increase in cash & cash e uivalents q Cash & cash equivalents at the end of the eriod p

16,272 6,948 (1,532) 28,546 821 (12,761) (14,909) (6,462) (15,620) 9,324 652 16,272

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2、Financial Risk Management

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(%)
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3. Corporate Credit Ratings & Market Cap

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(US$bn)
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Dec 2020 Market Cap $174.4 bn (≒US$5.7bn)

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III、INTER-CITY PUBLIC TRANSPORT MARKET

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Inter-City Public Transport Market

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Passenger Proportions
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Passenger-km Proportions
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(thousand persons)
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(thousand persons-km)
Jan~Nov 2020 Trend of Passenger-km Status
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Jan~Nov 2020 Trend of Passenger Status
14%
16% 22%
Avg,
Passenger
Copyright © Distance 2018 Taiwan High Speed Rail Corporation. All Contents Confidential.
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18%
16%
24%
Source：MOTC
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IV、OPERATION OUTLOOK

1. Operation Strategies 2. Sustainability Performance & Environmental Protection

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1. Operation Strategies

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• ⚫ Promote T Holiday packages and increase off-peak loading factor.

Revenue

• ⚫ Provide diversified products based on different customer characteristics.

• ⚫ Precision marketing, membership economy.

• ⚫ Expand non-ticket revenue from co-branded retail products.

• ⚫ Reduce the scale of bank loans.

Finance

• ⚫ Raise funds from capital and money market with lower cost.

• ⚫ Reduce interest expenses.

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Cost
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• ⚫ Support domestic suppliers to develop equipment for maintenance, testing, and system.

• ⚫ Expand localization of maintenance materials and components.

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2、Sustainability Performance、Environmental Protection

In 2017, THSRC developed the sustainability strategy blueprint, with 4Ts, including Transportation – Professional Transportation, Technology – Innovative Technology, Taiwan – Enhancing Local Connection, and Touch – Sustainable Care, as the backbone of sustainable management. Our sustainability strategy blueprint corresponds to the United Nations Sustainable Development Goals(SDGs), thus setting the direction of deepening and practicing sustainability at THSRC. Won the 2020 Taiwan Top Ten Sustainable Model Enterprise Award

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THSRC won the National Brand Yushan Award; Chairman Chiang gave a speech on behalf of the award-winning companies at the Presidential Office Building.

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(FTSE4Good Index Series) Top 5% of Corporate Governance Evaluation s Award For the 3[rd] consecutive year

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Taiwan Corporate Sustainability Awards

Conclusion

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Vision: To be the platform for advancement and enjoyment.

Integrate technology into services for new 4T smart and convenient life. THSRC strives to be one of the top ten brands in Taiwan.

運輸 To build professional transportation systems that provide high quality . T services and products ransportation

科技 To implement intelligent transportation that improves operational efficiency T and quality, and enhances services, safety, and emergency responses. echnology

在地 To combine unique local cultures and landscapes to create a multicultural T aiwan platform.

關懷 To establish brand culture, enhance talent skills and corporate efficiency, T ouch and participate in social caring and environmental protection.

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To learn more about THSRC, please visit http://www.thsrc.com.tw

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