二零一四年全年业绩

International会计准则

2014 Annual Results

Under IFRS

Disclaimer

Financial data included in this presentation is prepared under IFRS.

Unless otherwise specified, the unit for cost and income is RMB million

“Regions” or “Regional” in this presentation means Hong Kong,

Macau and Taiwan.

Transportation revenue in this presentation includes Co-operational

routes income.

This presentation contains forward-looking forecast and outlook. These

opinions were based on certain assumptions, which were subject to

change. The actual results may deviate materially from the forecast.

Domestic Industry Circumstances

Favorable Factors

Relatively fast domestic economic growth

Industry regulatory policies tend to be more

market-oriented

International oil prices declined

Private travel demand continuously grew

Distribution rate lowered down

Unfavorable Factors

Uneven growth of the global economy

Political instability in some Southeast Asia

countries

Sluggish business travel demand

Slight depreciation in RMB against USD

1

Results Overview

Data Overview 2014 2013 YoY

Total turnover 93,870 90,970 3.2%

Operating cost 87,812 89,394 -1.8%

Operating profit 6,058 1,576 284.3%

Gross profit margin 6.5% 1.7% 4.8pt

EBITDAR 20,507 15,152 35.3%

EBIT 6,186 1,641 276.9%

Net profit(attributable to shareholders of the Company)

3,410 2,373 43.7%

Cash Flows from operating activities 12,296 10,806 13.8%

ATK (Million) 22,539 21,715 3.8%

Passenger Load Factor 79.55% 79.21% 0.34pt

2

Overall Market

Passenger,

64.1%

Freight,

35.9%

Capacity Breakdown by business

Passenger,

91.3%

Freight,

8.7%

Revenue breakdown by Business

3

3.8%

-0.1pt

3.7%

2.0%

5.7%

-2%

0%

2%

4%

6%

ATK LF RTK RRTK Revenue

Change in Major Transportation Indicators

11,573

53.3%

12,026

53.4%

9,377

43.2%

9,704

43.1%

765

3.5%

809

3.5%

0

5,000

10,000

15,000

20,000

25,000

2013 2014

ATK（M）Capacity Proportion by Market

Regional

International

Domestic

Passenger Business

Domestic

68.7%

International

27.7%

Regional

3.6%

Capacity

Breakdown

Domestic,

69.0%

International,

26.6%

Regional,

4.4%

Revenue

Breakdown

4

5.6%

0.3pt

6.1%

0.5%

6.6%

ASK PLF RPK RRPK Revenue

Changes of Passenger business Indicators

0.63

0.680.65

0.61 0.61

0.49

0.540.52

0.48 0.48

70%

75%

80%

85%

0.4

0.5

0.6

0.7

2010 2011 2012 2013 2014

Trend of Unit Revenue and load factor

PLF RRPK RASK

Domestic Passenger Business

Increased capacity in core markets

Optimized route network

Better match of market and aircraft

Overall demand in the domestic market was stable

Growth in private travel demand was relatively fast

Demand from high-end traveler was sluggish

Flight capacity in peak season was lower than expected

Hongqiao,

12.1%Pudong,

8.1%

Beijing,

11.0%

Kunming,

7.6%

Xi'an, 5.8%

Others,

55.3%

Capacity

Breakdown

5

5.7%

0.6pt

6.5%

-0.4%

6.1%

ASK PLF RPK RRPK Revenue

Changes of Main Domestic Passenger Business

Indicators

International Passenger Business

Expanded international route network and increased the

frequency of trunk routes

Optimized capacity Allocation

Enhanced joint operation and code-sharing cooperation

Southeast Asia,

28.6%

North America,

25.5%

Europe,

15.8%

Japan,

13.3%

Australia,

9.3%

Korea,

7.6%

Capacity

Breakdown

Overall performance of international market was steady with an upward

trend

Europe，US and Korea markets were favorable

Demand of Japan Market was favorable, while the yield slightly declined

Southeast Asia market declined

Performance of premium classes was improved

6

5.4%

-0.5pt

4.7%4.2%

9.1%

ASK PLF RPK RRPK R

Changes of Main International Passenger

Business Indicators

Regional Passenger Business

Strengthen Shanghai-Hong Kong premium route

Increase capacity of Taiwan and Macau market

Demand growth of Hong Kong market decreased

Competition in Taiwan market intensified

Macau market was favorable

Hong Kong,

54.5%

Taiwan,

38.1%

Macau,

7.4%

Capacity

Breakdown

7

6.0%

1.3pt

7.8%

-6.9%

0.4%

ASK PLF RPK RRPK Revenue

Changes of Main Passenger Business Indicators for

Regional Market

Network and Market Share

Urumqi

London

Paris

Frankfurt

Los AngelesNew YorkSan FranciscoHawaii

MelbourneSydneyAuckland

Rome

VancouverToronto

Beijing

Taiyuan

Xi'an

Qingdao

Nanjing

Wuhan

HangzhouNingbo

Shenzhen

Nanchang

GuangzhouKunming

Chengdu

Hefei

Moscow

Several destinations in Southeast Asia

Taipei

Shanghai

Top 10 Markets inTerms of Total Flight

Share of CEA

Shanghai Market 41.8 %

Beijing Market 19.3 %

Guangzhou 10.5 %

Shenzhen 8.9 %

Kunming 41.3 %

Chengdu 13.2 %

Xi'an 30.7 %

Chongqing 9.8 %

Hangzhou 9.8 %

Xiamen 10.5 %

“Connecting each other”：

Southeast Asia,South Asia,West Asia

Japan Market

Korea Market

Major HubsTransit

ConnectionOpportunity

YoYChange

Proportion of Transit

Passenger

Pudong 2808 10.2% 22.0%

Xi'an 547 19.7% 2.3%

Kunming 1141 6.1% 8.8%

8

Optimization of Fleet

Introduced new B777-300 aircraft

Focused on 4 major aircraft models

Better match aircraft type, market and routes

Reduced operating costs and enhanced operational efficiency

FleetEnd of 2013

2014 End of 2014In Out

Passenger Aircraft

451 75 -41 485

B777-300ER 4 4

A330 Series 36 8 44

B737 Series 169 28 -7 190

A320 Series 201 35 -14 222

A340-600 5 -1 4

B767 7 -1 6

B757-200 8 -3 5

A300-600R 7 -7

Regional Aircraft

18 -8 10

Freighters 14 -2 12

Total 465 75 -43 497

9

B777-300

A330 Series

B737 SeriesA320 Series

Long-haul routes to North America

To Europe, Australia and for trunk routes

Medium-and short-haul routes

Brands and Services Experience

In-flight Facilities Sky Kitchen

Mobile ServicesEntertainment System VIP Lounges

Premium Class

Self-service check-in

10

New LOGO

Marketing and Products

11

Cargo Business

Domestic,

25.9%

International,

70.5%

Regional,

3.6%

Capacity

breakdown

Domestic,

15.4%

International,

78.6%

Regional,

6.0%

Revenues

Breakdown

12

0.7%

-1.1pt -1.1% -1.3%

-2.4%-3%

-1%

1%

AFTK FLF RFTK RRFTK Revenue

Changes of Main Cargo Business Indicator

1.951.83

1.711.57 1.55

1.181.13 1.08

0.95 0.92

50%

55%

60%

65%

0.5

1

1.5

2

2010 2011 2012 2013 2014

Trend of Unit Revenue and load factor

FLF RRFTK RAFTK

Transformation Development

Transform from a traditional air passenger carrier to a modern

integrated air service provider

Explore low cost operating pattern on China United Airlines

Established e-commerce company to create CEA eco-system

To transform supportive assets into operational assets

Transform from a traditional air cargo carrier to a modern

integrated air logistics service provider

To explore new business mode and provide high-end logistics solutions

13

Revenue Change

14

90,970

93,870

3,062

1,741 -181 -1,722

2013 Domestic

Passenger

International

and regional

Passenger

Cargo Others( Exclude

Co-operational

routes income)

2014

Major Costs

Cost Items 2014 2013 YoY Prop

Aircraft fuel 30,238 30,681 -1.4% 34.4%

Wages, salaries and benefits 11,270 13,454 -16.2% 12.8%

Take-off and landing charges 9,440 9,190 2.7% 10.8%

Depreciation and amortization 9,183 8,226 11.6% 10.5%

Indirect operation expenses 4,950 4,623 7.1% 5.6%

Aircraft maintenance expenses 4,453 4,690 -5.1% 5.1%

Aircraft operating lease rentals 4,502 4,605 -2.2% 5.1%

Sales and marketing expenses 4,120 4,139 -0.5% 4.7%

Food and beverages 2,364 2,268 4.2% 2.7%

Others 7,292 7,518 -3.0% 8.3%

Total operating expenses 87,812 89,394 -1.8% 100%

15

Operating Profit

16

1,576

6,058 2,900

443 -250 2,184

19

-96

237

103

-957

-101

2013 Increased

Revenue

Fuel Take off

and

Landing Charges

Wage,salaries

and benefit

Sales and

Marketing

Food and

beverages

Aircraft

maintenance

Aircraft

operating

lease fees

Depreciation

and

Amortisation

Others 2014

Assets Structure and Cash Flow

31,772

19.2%

97,884

59.0%

36,173

21.8%

134,057

80.8%

Assets and Liabilities Structure

Equity Total Liability Interest-bearing liability Other liability

1,995 1,355

12,296

-24,033

11,112

-15

-10000

-5000

0

5000

10000

15000

Cash and cash

equivalents

before this period

Net cash inflow

from operating

activities

Net cash outflow

from investing

activities

Net cash inflow

from financing

activities

Fluence of

Exchange rate

Cash and cash

equivalents

at 31Dec 2014

Change of Cash Flow

17

16,205

16.6%

79,421

81%

2,258

2.3%

81,679

83.4%

Structure of Interest-bearing Liabilities

Liability in RMB

Liability in Foreign currency

Liability in US Dollar

Liability in other currency

Future Prospects

• Economy restructures and maintains medium-to-high speed growth

• Reform on SOE and administrative simplification motivate industry

development

• Demand for private travel maintains stable growth

• Increase in demand due to relaxing visa policies

• “Belt and Road” and Free-trade zones release the potential of regional

economic development in China

• Shanghai Disneyland is about to open

• Emerging advantages on efficiency and cost from fleet optimization

• Geo-political instabilities existing in peripheral countries

• Uncertainties of crude oil price

• Uncertainties of the range and direction of RMB exchange rate fluctuation

• Higher expectations for US Federal raise US interest rate

Opportunities

Challenges

18

Fleet Plan and Capex

19

Fleet Plan End of 20142015 Plan 2016 Plan

IN OUT IN OUT

Passenger Aircraft 485 80 -43 70 -26

B777-300ER 4 5 5

A330 Series 44 7

B737 Series 190 39 -18 35 -15

A320 Series 222 29 -11 30 -6

A340-600 4 -4

B767 6

B757-200 5 -5

Regional Aircraft 10 -5 -5

Freighters 12 -3

Fleet Plan 497 80 -46 70 -26

Capex（Billion） 25.9 32.6

ADR Transaction Information

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CUSIP 16937R104

Ratio 1 ADR : 50 ORD

Underlying SEDOL 6171375

Underlying ISIN CNE1000002K5

Depositary BNY Mellon

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