THE AMBASSADOR HOTEL 2018 BUSINESS REVIEW

Stock Code:2704 THE AMBASSADOR HOTEL 2018 BUSINESS REVIEW 2018.08.30 Ambassador

Outline A.Corporate Overview B.Financial Highlights C.Future Directions D.Q & A Safe Harbor Statement This Presentation contains certain forward-looking statements that are based on current expectations and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Except as required by law, we undertake no obligation to update any forward looking statements, whether as a result of new information, future events or otherwise. Ambassador 1

A. Corporate Overview Yeang Group HCT Shihlin Electric (1503) Ambassador (2704) Ambassador 2

A. Corporate Overview Established in 1962 Capital:NT$ 3.6 billion Consolidated Operating Revenue for the Six Months Ended June 30, 2018:1.5 billion Employees:1,333(July 2018) Main Products :Food & Beverage Revenue(66%) Room Revenue (32%) Other Revenue (2%) Ambassador 3

A. Corporate Overview Milestones 1962 The Ambassador Hotel Taipei is incorporated. Its goal is to establish the first internationalstandard hotel in Taiwan. 1964 The hotel opens its head office on the present site of the Ambassador Hotel Taipei. 1978 Initial public offering. 1981 The Ambassador Hotel Kaoshiungofficially opens. 1982 Ambassador Hotel shares are listed on the Taiwan Stock Exchange. 1983 The Ambassador Hotel Taipei and Kaoshiungare bothrated as Five Plum tourist hotels by Taiwan s Tourism Bureau. 1994 The Ambassador Hotel is graded Deluxe Class by SRS-WORLDHOTELS. 1997 The Ambassador Hotel Kaohsiung receives the first Golden Enterprise Service Award. Ambassador 4

A. Corporate Overview 1998 The group wins the Five Star Award in the national competition of Labor Safety & Health Excellent Organization, held by the Council of Labor Affairs, Executive Yuan Taiwan. 2000 The hotels obtains ISO9001 quality certification, the first five-star tourist hotel in northern Taiwan to do so. 2001 The Ambassador Hotel Hsinchu opens and joins the group. 2005 The Ambassador Hotel Hsinchureceives recognition from Les Clefs d Or, a world-class hotel professional organization. Five staff members receive awards at the same time. 2010 The Ambassador Hotel Kaohsiung gets 5 star certified of hotel rating system from Tourism Bureau,M.O.T.CRepublic of China. Ambassador 5

A. Corporate Overview 2011 The Ambassador Hotel Taipei & Hsinchugets 5 star certified of hotel rating system from Tourism Bureau,M.O.T.CRepublic of China. 2012 The Company has adopted Hazard Analysis Critical Control Point (HACCP) certification. 2013 With the MUSLIM FRIENDLY TOURISM certification awarded by Chinese Muslim Association with the commissioned by the Tourism Bureau of MOTC, Taipeiand Kaohsiung Ambassador Hotel could provide friendly Tourism Environment for business and sightseeing Islam travelers in Taiwan. 2014 The Ambassador Hotel wins the "Best Business Hotel. 2016 The Ambassador Hotel wins the "Service Innovation Award. 2017 The Ambassador Hotel wins the " Anti Additive Tasty Awards. Ambassador 6

The Ambassador Hotel Taipei The group s flagship Ambassador Hotel Taipei is the first five-star tourist hotel in Taiwan. Boasting plush, well appointed rooms and offering awardwinning hospitality, it is the destination of choice for international visitors to Taiwan. Serving a wide range of delicacies from around the world, its restaurants enjoy a fine reputation at home and abroad. Location Situated on Chung Shan North Road, the Ambassador Hotel Taipei is located in the heart of Taipei City. It is within walking distance of shopping malls, and just minutes by car or taxi fromthe central business district and tourist attractions. Rooms The hotel has 400 classic guest rooms,including one Western Presidential suite, one Chinese Presidential suite, and two private Executive Floors. Restaurants & Bars Among the hotel s renowned restaurants are bars are the Ahmi Cafe, Canton Court, Szechuan Court, Lobby Lounge, Ming Garden, Corner Bakery 63, and A CUT steakhouse. Meetings The hotel not only has a well-furnished business centre but offers 28 multi-functional conference rooms and banquet rooms, each with equipped with modern facilities and a unique high ceiling design. Facilities The hotel s facilities include a fitness centre, sauna, and outdoor swimming pool. Ambassador 7

Ambassador 8

Ambassador 9

A CUT 牛排館 Ambassador 10

The Ambassador Hotel Taipei Ambassador 11

Ambassador 12

The Ambassador Hotel Taipei Ambassador 13

The Ambassador Hotel Kaohsiung The Ambassador Hotel Kaohsiung is the only five-star tourist hotel in Kaohsiung nestled beside Love River. A warm, hospitable atmosphere leaves guests feeling they are home away from home. Exceptional service, fine cuisine and charming views make the hotel s restaurants and bars perennial favouritesof visitors to the city. Location The Ambassador Hotel Kaoshiungis located at the centre of Kaoshiung sfinancial district, near the scenic Love River. The hotel boasts captivating views of ShouShan, also known as Mt. Shouor Long-life Mountain. Rooms The hotel has 446 luxurious guestrooms, including one Presidential suite, 17 different types of suites, and one private VIP floor. Restaurants & Bars iriver,canton Court, Szechuan Court, Corner Bakery 63 Meetings Equipped with the latest Internet and video-conference facilities, the hotel has a fully featured business centre. The centre s large conference and banquet room can seat up to 1,000 people. Facilities The hotel features a health centre, a steam room, an outdoor swimming pool, and a billiard room. Ambassador 14

Ambassador The Ambassador Hotel Kaohsiung 15

The Ambassador Hotel Kaohsiung Ambassador 16

The Ambassador Hotel Hsinchu Hsinchu smost popular five-star hotel, the Ambassador Hotel Hsinchuis the destination of choice for visitors seeking luxury and style. It is renowned for its cultured ambience and atmosphere. And in keeping with its location in the heart of Hsinchu, Taiwan s city of technology, the hotel s first-class business services feature cutting-edge computers and Internet technology. Location The hotel is located in the heart of the city, within minutes ofthe HsinchuTrain Station and the North South Freeway. It is also within walking distance of shopping malls and the city s major attractions. Rooms The hotel has 257 guest rooms, including one Presidential suite and 15 different types of suite. Restaurants & Bars Among the hotel s renowned restaurants and bars are Chinese Restaurant, Promenade, A CUT steakhouse, Mezzanine, Le Bar. Meetings The hotel offers a fully featured business centre with well appointed conference rooms. With a spacious design of up to 230 pings and ceilings up to 7 metres, the business centre is the only one in Hsinchuwith seating for up to 1,000 people. Facilities The hotel has a health centre, spa, sauna, indoor heated swimming pool, aerobic room and fitness room. Ambassador 17

The Ambassador Hotel Hsinchu Ambassador 18

The Ambassador Hotel Hsinchu Ambassador 19

B. Financial Highlights Income Statement (Consolidated) (In Millions of NTD, Except EPS) Year 2018/1/1 To 6/30 2017/1/1 To 6/30 Growth rate Item Amount % Amount % % Operating revenue 1,497 100.0 1,577 100.0-5.1 Operating costs 843 56.3 873 55.4-3.5 Gross profit from operations 654 43.7 704 44.6-7.1 Operating expenses 440 29.4 443 28.1-0.8 Net operating income 214 14.3 261 16.5-17.8 Non-operating income and expenses 21 1.4-9 -0.6-327.6 Profit from continuing operations before tax 235 15.7 252 15.9-6.6 Tax expense 62 4.1 58 3.7 6.6 Profit from continuing operations 173 11.6 194 12.3-10.5 EPS 0.48 0.53 Ambassador 20

B. Financial Highlights Income Statement (Standalone) Year 2018/1/1 To 6/30 2017/1/1 To 6/30 (In Millions of NTD, Except EPS) Growth rate Item Amount % Amount % % Operating revenue 1,488 100.0 1,573 100.0-5.4 Operating costs 838 56.3 872 55.4-3.9 Gross profit from operations 650 43.7 701 44.6-7.4 Operating expenses 435 29.2 440 27.9-1.0 Net operating income 215 14.4 261 16.6-17.9 Non-operating income and expenses 19 1.3-9 -0.6-312.6 Profit from continuing operations before tax 234 15.8 252 16.0-7.1 Tax expense 60 4.0 57 3.6 4.8 Profit from continuing operations 174 11.7 195 12.4-10.7 EPS 0.48 0.53 Ambassador 21

B. Financial Highlights 2018 1/1~6/30 2017 1/1~12/30 American & European 9% Asia 22% Other 2% Demestic 30% Japan 37% American & European 8% Asia 24% Other 2% Demestic 30% Japan 36% Ambassador 22

B. Financial Highlights 200000 Number of passengers Hsinchu +1.4% -1.3% Kaohsiung +7.0% 100000 Taipei -3.2% 0 2017Q2 2018Q2 Taipei Kaohsiung Hsinchu Ambassador 23

B. Financial Highlights 2013~2017 Number of passengers 500000 +2.2% +0.2% +2.5% -1.0% 450000 Hsinchu +8.1% +1.2% +8.9% +4.2% 400000 350000 300000 Kaohsiung +0.6% +5.0% +0.2% -5.3% 250000 200000 150000 100000 Taipei +1.5% -4.8% +1.7% +1.5% 50000 0 2013 2014 2015 2016 2017 Taipei Kaohsiung Hsinchu Ambassador 24

B. Financial Highlights Operating revenue v.s. Profit from continuing operations before tax v.s. EPS Item (In Millions of NTD) Operating revenue Net Income (Loss) Attributable To Shareholders of the parent EPS 2017 2016 Growth 2017 2016 Growth 2017 2016 Growth Rate Rate Rate 1/1 To 9/30 1/1 To 9/30 % 1/1 To 9/30 1/1 To 9/30 % /1 To 9/3/1 To 9/30 % GFRT 5,125 5,011 2.3 930 800 16.2 5.86 5.12 14.5 AMBH 2,297 2,690-14.6 428 379 12.9 0.98 0.91 7.7 FDC 1,065 954 11.6 175 168 4.3 2.2 2.3-4.3 Chateau 526 585-10.1 112 163-31.6 0.83 1.24-33.1 Source:TWSE Ambassador 25

B. Financial Highlights Item Hotel Revenue statistics (In Millions of NTD) Room Revenue Food & Beverage Revenue 2018 2017 Growth 2018 2017 rate 1/1 To 6/30 1/1 To 6/30 % 1/1 To 6/30 1/1 To 6/30 Growth rate % Hotel Royal 159 131 21.0 158 150 5.4 Regent Hotel 418 404 3.5 865 801 7.9 Grand Hotel 232 231 0.3 314 302 3.9 Palais de Chine Hotel 189 197-4.1 273 279-2.2 Taipei Ambassador Hotel 211 228-7.3 492 525-6.2 Miramar Hotel 69 75-8.4 35 34 0.8 Sheration Grand Hotel 411 454-9.5 642 622 3.1 Howard Hotel 233 281-17.0 276 276 0.1 Landis Taipei 81 119-32.5 86 71 20.0 Source:Tourism Bureau, M.O.T.C. Republic of China Ambassador 26

B. Financial Highlights Item Hotel Revenue statistics (In Millions of NTD) Room Revenue Food & Beverage Revenue 2018 2017 Growth 2018 2017 rate 1/1 To 6/30 1/1 To 6/30 % 1/1 To 6/30 1/1 To 6/30 Growth rate % Ambassador Hotel 127 126 1.2 222 234-5.2 Howard Hotel 85 87-1.8 119 108 10.0 Kaohsiung Han-Hsien Hotel 87 89-1.9 107 123-12.8 Hi Lai Hotel 197 219-9.7 388 400-2.9 85 Sky Tower Hotel 141 162-12.8 163 193-15.6 Source:Tourism Bureau, M.O.T.C. Republic of China Ambassador 27

B. Financial Highlights Revenue statistics Item Hotel (In Millions of NTD) Room Revenue Food & Beverage Revenue 2018 2017 Growth 2018 2017 rate 1/1 To 6/30 1/1 To 6/30 % 1/1 To 6/30 1/1 To 6/30 Growth rate % Sheration Grand Hotel 296 268 10.4 285 272 5.1 Hsinchu Hotel Royal 79 74 6.3 79 78 2.1 Ambassador Hotel 109 112-2.1 211 209 0.6 Source:Tourism Bureau, M.O.T.C. Republic of China Ambassador 28

B. Financial Highlights Income Statement (Consolidated) (In Millions of NTD, Except EPS and Dividend) Year 2017 2016 Growth rate Item Amount % Amount % % Operating revenue 3,083 100.0 3,201 100.0-3.7 Operating costs 1,747 56.7 1,889 59.0-7.5 Gross profit from operations 1,336 43.3 1,312 41.0 1.8 Operating expenses 915 29.7 935 29.2-1.8 Net operating income 421 13.6 377 11.8 10.9 Non-operating income and expenses 96 3.1 122 3.8-21.8 Profit from continuing operations before tax 517 16.7 499 15.6 2.9 Tax expense 73 2.4 75 2.3-2.2 Profit from continuing operations 444 14.4 424 13.3 3.9 EPS 1.21 1.16 Ambassador 29

B. Financial Highlights Income Statement (Standalone) Year (In Millions of NTD, Except EPS and Dividend) 2016 2015 Item Amount % Amount % % Operating revenue 3,083 100.0 3,201 100.0-3.7 Operating costs 1,747 56.7 1,889 59.0-7.5 Gross profit from operations 1,336 43.3 1,312 41.0 1.8 Operating expenses 916 29.7 933 29.2-1.8 Net operating income 420 13.6 379 11.8 10.9 Non-operating income and expenses 96 3.1 122 3.8-21.8 Profit from continuing operations before tax 516 16.7 501 15.6 2.9 Tax expense 73 2.4 75 2.3-2.2 Profit from continuing operations 443 14.4 426 13.3 3.9 EPS 1.21 1.16 Growth rate Ambassador 30

B. Financial Highlights Unit: NT$ one hundred million Revenue (Standalone) 34.0 32.0 32.3 32.9 32.0 30.8 30.0 28.2 28.9 29.9 28.0 26.9 27.2 26.4 26.0 25.4 24.0 24.2 22.0 20.0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Ambassador 31

B. Financial Highlights Unit: NT$ one hundred million 6.00 Profit before Income Tax (Standalone) 5.50 5.00 4.71 4.91 4.99 5.01 5.16 4.50 4.26 4.22 4.00 3.80 3.80 3.58 3.50 3.09 3.00 2.50 2.44 2.00 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Ambassador 32

B. Financial Highlights Balance Sheet (Consolidated) (In Millions of NTD) Year 2018/6/30 2017/6/30 Item Amount % Amount % Current assets 3,551 31.3 3,509 31.2 Long-term investment 1,269 11.2 1,164 10.3 Property, plant and equipment 5,496 48.4 5,684 50.5 Other non-current assets 1,036 9.1 898 8.0 Total assets 11,352 100.0 11,255 100.0 Current liabilities 1,089 9.6 1,098 9.8 Non-current liabilities 422 3.7 759 6.7 Total liabilities 1,511 13.3 1,857 16.5 Total equity 9,841 86.7 9,398 83.5 Ambassador 33

B. Financial Highlights Balance Sheet (Standalone) (In Millions of NTD) Year 2018/6/30 2016/7/30 Item Amount % Amount % Current assets 2,301 20.5 2,290 20.5 Long-term investment 2,637 23.4 2,481 22.3 Property, plant and equipment 5,468 48.5 5,661 50.7 Other non-current assets 860 7.6 730 6.5 Total assets 11,266 100.0 11,162 100.0 Current liabilities 1,046 9.2 1,053 9.4 Non-current liabilities 422 3.8 758 6.8 Total liabilities 1,468 13.0 1,811 16.2 Total equity 9,798 87.0 9,351 83.8 Ambassador 34

B. Financial Highlights Assets Current assets Investment property, net Property, plant and equipment Intangible assets Deferred tax assets Other assets Total assets 2017 Balance Sheet (Consolidated) (In 100Millions of NTD, Except Book value per share) (2704) AMBH (2707) GFRT (2722) Chateau (2739) My Humble House (2748) FDC Amount % Amount % Amount % Amount % Amount % 35.30 31.4 20.32 27.5 1.90 9.0 10.58 29.6 1.56 8.4 21.12 18.8 2.94 4.0 5.52 26.2 4.76 13.3 - - 54.77 48.7 30.89 41.8 8.51 40.4 14.95 41.8 16.65 89.4 - - 16.03 21.7 4.79 22.7 0.12 0.3 - - 0.98 0.9 0.91 1.2 0.03 0.1 0.50 1.4 - - 0.37 0.3 2.72 3.7 0.32 1.5 4.82 13.5 0.41 2.2 112.60 100.0 73.82 100.0 21.07 100.0 35.73 100.0 18.62 100.0 Source:TWSE Ambassador 35

B. Financial Highlights 2017 Balance Sheet (Consolidated) Liabilities Current liabilities Total long-term borrowings Deferred tax liabilities Other liabilities Total liabilities (In 100Millions of NTD, Except Book value per share) (2704) AMBH (2707) GFRT (2722) Chateau (2739) My Humble House (2748) FDC Amount % Amount % Amount % Amount % Amount % 8.59 7.6 18.08 24.5 2.28 10.8 15.35 43.0 3.83 20.6 5.43 4.8 14.14 19.2 1.20 5.7 - - 2.93 15.7 0.56 0.5 0.00 0.0 - - - - - - 1.50 1.3 4.08 5.5 0.10 0.5 1.95 5.5 0.01 0.1 16.07 14.3 36.30 49.2 3.58 17.0 17.30 48.4 6.77 36.3 Source:TWSE Ambassador 36

B. Financial Highlights Non-controlling interests Total equity Equity Total capital stock Total capital surplus Total retained earnings Total other equity interest Total equity attributable to owners of parent Book value per share Source:TWSE 2017 Balance Sheet (Consolidated) (In 100Millions of NTD, Except Book value per share) (2704) AMBH (2707) GFRT (2722) Chateau (2739) My Humble House (2748) FDC Amount % Amount % Amount % Amount % Amount % 36.69 32.6 12.67 17.2 10.72 50.9 11.15 31.2 6.56 35.3 29.27 26.0 1.15 1.6 1.71 8.1 4.65 13.0 2.25 12.1 22.26 19.8 23.46 31.8 4.95 23.5 2.97 8.3 3.04 16.3 7.82 7.0-2.02-2.7 0.11 0.5-0.34-1.0 - - 96.04 85.3 35.26 47.8 - - 18.43 51.6 - - 0.44 0.4 2.25 3.1 - - - - - - 96.48 85.7 37.52 50.8 17.49 83.0 18.43 51.6 11.85 63.7 26.17-27.82-16.31-16.52-18.06 - Ambassador 37

C.Future Directions 1.Differentiated services 2.Innovation 3.Strengthen the competitiveness Ambassador 38

THE END Thank You! Ambassador 39

Q & A Ambassador 40