Ticker Symbol: 2633

Taiwan High Speed Rail Corporation? 1Q, 2023 Operation Report

2023.6.16
Copyright © Taiwan High Speed Rail Corporation. All Contents Confidential.

Notes:

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.
Copyright © Taiwan High Speed Rail Corporation. All Contents Confidential.

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Taiwan High Speed Rail – Alignment
Here we can see the HSR alignment and the location of each station and maintenance base.
From north to south, we have 12 planned stations, namely,
Taipei Nangang
Taipei Main Station
Taipei Banciao
Taoyuan
Hsinchu
Miaoli
Taichung
Changhua
Yunlin
Chiayi
Tainan
Kaohsiung Zuoying
Besides Taipei Nangang station, Miaoli station, Changhua station and Yunlin station, the other eight stations are already in service.
Also, there are five maintenance bases. From north to south, they are
Hsinchu Lioujia Depot,
Taichung Wurih Depot
Chiayi Taibao Depot,
Kaohsiung Yanchao Main Workshop, and
Zuoying Depot

AGENDA
I. OPERATIONAL OVERVIEW
II. FINANCIAL RESULTS
III. OPERATIONAL OUTLOOK
Copyright © Taiwan High Speed Rail Corporation. All Contents Confidential.

I. OPERATIONAL OVERVIEW

Company Profile

Operation of Affiliated Business

Space Leasing:(Convenience store, dining, service counter, etc.)
Advertising Sales:(Lightboxes, wall space, column space, product displays, train decorations, etc.)
Retail Business
Trolley Sales
Parking Lots at Stations

Passenger Transportation Services

Offers direct train, semi- direct train, and stopping train transport.
Business Scope
Copyright © Taiwan High Speed Rail Corporation. All Contents Confidential.

Notes:

Operational Performance – Transportation Capacity

Trend of Seat-km Status
Trend of Train Services Status
(mn-km)
(YoY)
(frequency)
(YoY)

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Operational Performance –Transportation Volume
Passenger
Passenger-km
Daily Avg. Ridership
(thousand persons)
(mn-km)
(YoY)
(thousand persons/day)
(YoY)
(YoY)

Load Factor
Copyright © Taiwan High Speed Rail Corporation. All Contents Confidential.

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5-year Operational Performance

Punctuality
(Delay<5min)
(min)

Avg. Delay Time

Accidents resulting in Liabilities
Copyright © Taiwan High Speed Rail Corporation. All Contents Confidential.

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II. Financial Results
Copyright © Taiwan High Speed Rail Corporation. All Contents Confidential.

Notes:

Profit & Loss and Financial Results

(NT$billion)
Pre-pandemic：
EBITDA CAGR (‘16~’19) ：+ 5.5%
EBITDA Margin ('16~’19):72%~73%

Revenue Structure and Profit & Loss

(NT$million)

Note: Non-ticket revenues mainly include: rental income, advertising sales, and trolley sales
Copyright © Taiwan High Speed Rail Corporation. All Contents Confidential.

Cash Flows

Financial Risk Management

Total early payment of syndicated loan, from 2016 to 2023.

| (NT$billion) | Amount |
| --- | --- |
| ’16 | 21.0 |
| ’17 | 41.2 |
| ’18 | 10.0 |
| ’20 | 18.5 |
| ’21 | 15.0 |
| ’22 | 25.0 |
| ’23 | 10.0 |
| Total | 140.7 |
Copyright © Taiwan High Speed Rail Corporation. All Contents Confidential.

EPS & Cash Dividend

Unit：NT$

Note: The calculation of earnings per share is based on the weighted average number of ordinary shares of 5.628 billion shares.
Copyright © Taiwan High Speed Rail Corporation. All Contents Confidential.

Corporate Credit Ratings & Market Cap

NT$ billion

May 2023
Market Cap $180.3 bn

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III、 OPERATIONAL OUTLOOK
Copyright © Taiwan High Speed Rail Corporation. All Contents Confidential.

Notes:

Operation/Financial Aspects

Growth Momentum of Company’s Operation
Respond to the basic needs of business and commuting, promote diversified tourism products, expand scope of channels, optimize mobile ticketing platform, strengthen THSR tourism brand, and enhance growth momentum of Company’s operations:
Launch diversified products in domestic tourism market, such as T Holiday and combo tickets (hotel, local travel, overseas).
Expand e-commerce platform for tourism-related channels.
Develop the promotion precision marketing of TGo Membership.
In response to an aging society, optimize the software and hardware of service facilities.
Financing Plan
The interest rate hike stage of the Central Bank's moderate monetary tightening policy will depend on the degree of fluctuations in the overall economic cycle, the trend of capital flows in the money/capital market, the level of cash flow, and major capital expenditure plans (payment schedules for each period of train purchases) , to evaluate whether to early repay the syndicated loans and other financing plans.
Procurement of New Generation Rolling Stock
Purchase 12 sets of new trains with a contract value of JPY124.09 billion.
New trains are expected to be delivered by the end of 2026 and start operation in 2027 to improve transportation capacity and service quality.
Copyright © Taiwan High Speed Rail Corporation. All Contents Confidential.

Corporation Sustainable Development
Through operational performance, corporate governance, environment, and social responsibility, THSRC responds to the eight UN Sustainable Development Goals (SDGs) to guide its efforts in achieving sustainability to contribute to Taiwan’s sustainable development process.

Transportation
Technology
Promote smart transportation, continuously improve the efficiency and quality of operations, services, safety, and emergency decision-making, use big data and digitalization, optimize customer experience, and create a more convenient life.
Improve operational safety, actively face the impact of climate change on transportation, establish relevant early warning mechanisms, and cooperate with the government to develop countermeasures to create positive value externally.

THSRC Sustainability Strategies and Goals

Improve the corporate social responsibility governance mechanism and integrate the corporate social responsibility vision into the corporate culture. Promote employee development, implement energy conservation and carbon reduction, actively support public welfare, art and ecological development, and serve as an important platform to unite Taiwanese society.
Commit to creating multiple products and cross-industry cooperation in the business model, and becoming a platform that connects local better lives. Support the development capabilities of the local rail industry, establish a sustainable supply chain management mechanism, and promote the prosperity and development of the industry.

ESG Promote and Awards
Protect
E
Environmental
Care
S
Social
Corporate
G
Governance
Awards of Sustainability Performances

Received the Taiwan Corporate Sustainability Awards for 6 consecutive years.
Abide by laws and regulations to create maximum value for stakeholders.
Continue to promote the operation of the Corporate Governance Promotion Committee.
Establish Information Security Management Committee, to implement information security measure in accordance with the requirements of the Cyber Security Responsibility Level A in Taiwan.
Apply technology to provide fast and convenient transport services under the principle of safety first.

Construction of green building public spaces.
Promote renewable energy stations.
High-speed rail with low carbon, low pollution, and high energy efficiency.
Strengthen the ability to respond to climate change.
Properly manage the quality of the environment surrounding the track facilities to mitigate the impact on the environment during the operation.
Help the development of the rail industry in Taiwan through cooperation with the local industry.
Integrate the core business and invest in social care to promote the overall economic development.
Establish a sustainable supply chain management mechanism.
Attach importance to the safety and health of employees’ working environment and career development.

Received top 5% ranking in the Corporate Governance Evaluation for 5 consecutive years.
Selected as a constituent of the FTSE4Good TIP Taiwan ESG Index for 4 consecutive years.

Selected as one of the Top 100 Global Sustainable Companies by Corporate Knights 2023 for the first time
Copyright © Taiwan High Speed Rail Corporation. All Contents Confidential.

Taiwan High Speed Rail Corporation Vision

To be the platform for advancement and enjoyment.
專業運輸
To build professional transportation systems that provide high quality
services and products.

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

深耕在地

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

永續關懷

To establish brand culture, enhance talent skills and corporate efficiency,
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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THSRC Investor Presentation 2023

Taiwan High Speed Rail Corporation? 1Q, 2023 Operation Report

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THSRC — Investor Presentation 2023

Taiwan High Speed Rail Corporation? 1Q, 2023 Operation Report

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