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Chien Kuo Construction Co., Ltd

Y2017 Investor Conference

Chairman: Chang-Shiou Wu

Date :2018/11/22

Stock Code 5515

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Disclaimer

This report is based on integration and evaluation of various factors at

the time of representation. If there is any statement of positive

development strategy in this report, this will be affected by uncertain

factors, including market, policy, international relations and etc. Chien

Kuo Construction Co. Ltd. (Chien Kuo ) reserves the right to modify

the evaluation from time to time if the actual implementation results

deviate from this report.

The information provided in this report is not guaranteed to be

completely correct, comprehensive, and reliable and shall be subject

to the actual information released by Chien Kuo to the public under the

request of the Financial Supervisory Commission.

Chien Kuo shall not be responsible for updating this report if there is

any subsequent change of business development rendered by the

modified business plan based on the uncertain factors mentioned

above .

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Agenda

I. Company Introduction

II. Financial Information

III. Managerial Performance & Business Overview

IV. Mission Statement

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Capita: NTD 3.343B Founded in 1931

Granted Grade A construction company and renamed as Chien Kuo Construction Co., Ltd in 1960,

Mainboard in 1999 Listed in TWSE in 2003

1960 2003 2018 1931

I Company Introduction Chien Kuo Construction has business operations in both Taiwan and China that encompass construction and concrete.

Capita: NTD 3.343B

Chairman:Chang-shiou WU

General Manager:Chang-shiou WU

Spokesman:Chang-shiou WU

Y2015 Y2016 Y2017 2018前3季

II、Financial Information

5 2018/1-2018/10 Consolidated Revenue 5.66B

5,001

5,734

5,168 5,023

Y2015-Y2018 Consolidated Revenue

Unit: NT$ Million

Concrete

Construction

Unit:NT$Million Y2015 Y2016 Y2017 2018

Net Revenue 5,023 5,168 5,734 5,001

Gross Profit 218 424 546 566

Operating Expense 373 389 329 254

Operating Income (155) 35 216 312

Non-Op Income &

Exp. (58) 34 44 (6)

Pre-Tax Income (213) 69 260 306

Net Income (174) 42 172 165

Profit Attributable to

Owners of Parent (174) 42 171 164

EPS(NT$) (0.51) 0.13 0.51 0.49

Cash Dividend(NT$) 0.50 0.50 0.50 6

II、Financial Information Consolidated Income Statement

III Managerial Performance & Business Overview

Construction

Concrete

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Business development • Adjusting the market

Government

turnkey project

Construction

Company

Factory

Hospital

Listed on the

Taiwan Stock

Exchange Corp.

[Turnkey]

[Maintain the original customer]

[Maintain the original customer]

[Development (2019) hospital market]

[Development (2019) factory market]

Business improvement

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Accurate

and

accurate

Quality

Safety

Exquisite

brand

Corporate

different

[Scientific systematic management]

[Integrity, responsible for corporate culture]

[Creative company]

[First important security Quality priority]

Based on technology Combine social care And Humanistic aesthetics New generation construction team

Shun Long I‘ntl Electronic Engineering Housing Complex

Villa Apartment Building

Business/ Plant

Plant Merchant Building

Public

Concert Hall Library Office Building

Hospital

Hospital Clinic

Light Current System

System integration Property Management

High Tech Plant

High Tech Plant Dust-free Room

Related Equipment

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•

[Acoustic design - the power of tranquility and the beauty of music]

Chien Kuo Construction is a contractor for the National Kaohsiung Center for the Art (Weiwuying), the largest project of its kind in Southeast Asia which has been built to the highest standard of architectural specifications with the following: The tallest soundproof theater door in the world (4*11M，Rw=56dB) Dry wall with the highest sound insulation value (Rw=63dB) High soundproof and fireproof metal door verified by CNS (Rw=52dB) Glazing with the highest sound insulation value in Taiwan (Rw=61dB)

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•

[Bim technology : integration of virtual and reality]

3d design diagrams Integration of multiple interfaces ; prevention of conflict factors in construction Analyze of big deta ; construction schedule in well control BIM includes not only the building of a 3D model but also the establishment of a massive databank on which the model is based. Integrating a number of databases with work schedules and adding a “time” dimension generates a 4D simulation. Consequently, BIM data allows rational work scheduling and task prioritization at the planning stage, ensuring projects can be completed on time and according to specifications.

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•

[Mis application - synchronization of information flow with real-time managemen] Chien Kuo Construction has established a Business Intelligence (BI) system that integrates all information on a single project platform, giving designers and executors synchronized access to the latest drawings and notifications on changes, thereby avoiding unnecessary errors. Integration by using data from WeBIMsync helps to simplify reviews of on-site work and drawings. It also makes it easier for project managers to monitor real-time developments and compile information from a remote location, which accelerates the decision-making process. In addition, owners and users also have access to the latest progress and on-site conditions via the Internet or mobile devices (e.g. mobile phone). This information transparency affords owners and users better protection because they can control quality more precisely.

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•[Turnkey management, integrated systematization] Effectively integrate construction and design,and the department of the turnkey engineering department is responsible for management.In order to focus on the special management of the turnkey project,in the field of construction and high-level management,provide substantial improvements in the value of public housing, and integrate innovative technologies into the project such as: point cloud technology, WeBIMsync, etc. into the turnkey project to improve the level of smart management of public housing.

Turnkey Dept. Construction

drawing Technical dept.

Technology research dept.

Sales dept.

De

sign

an

d

pla

nn

ing

Pro

jec

t o

ffice

technical support

Project management

2018. Tucheng District, New Taipei City, public housing project

2017. Ruiguang, Neihu District, Taipei City Public house

2016. Taoyuan City Zhong Lu No. 2 public housing

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•[Turnkey use creative technology] At present, the special techniques used in the Turnkey are BIM 4D process simulation WeBIMsync. Point cloud / aerial camera use Climate simulation (wind field, sunshine)

Point cloud / aerial camera use (Tucheng District, New Taipei City, public housing project)

BIM 4D process simulation (Taoyuan City Zhong Lu No. 2 public housing)

WeBIMsync(Ruiguang, Neihu District, Taipei City P u b l i c h o u s e )

Climate simulation (Tucheng District, New Taipei C i t y , p u b l i c h o u s i n g p r o j e c t )

Construction and management of ChienKuo, including Cathay Real Estate, Cathay Life Insurance, Fubon Life Insurance, Fubon Construction, Guoyang Construction, Hongpu Construction, etc.Both are recognized for the construction quality of Jianguo.

Cathay Life

Insurance

Cathay Real

Estate

Fubon Life

Insurance Hongpu

Fubon Construction

Guoyang Construction

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[Leading Technologies] Point cloud Aerial camera Acoustic design BIM Technologies of structure automatic model

空拍機運用技術 點雲機運用技術

聲學、曲面鋼表皮技術(衛武營) BIM技術-結構自動建模(國泰悅)

Enterprise Advantage Unique Technology

專利名稱(主語文) 專利名稱(次語文)

1.金屬屋頂結構(ROC) Metal Roof Structure

2.金屬屋頂結構(CN) Metal Roof Structure

3.複合門板及使用其的隔音

門(ROC)

Composite Door Sheet and Sound-

Insulated Door Utilized Thereof

4.複合門板及使用其的隔音

門(CN)

Composite Door Sheet and Sound-

Insulated Door Utilized Thereof

專利名稱(主語文) 專利名稱(次語文)

5.天花板結構(ROC) Ceiling structure

6.天花板結構(CN) Ceiling structure

7.隔音門(ROC) Sound-Insulated Door

8.隔音門(CN) Sound-Insulated Door

Enterprise Advantage Unique Technology

專利名稱(主語文) 專利名稱(次語文)

9.圍束結構(ROC) Confined Structure

10.圍束結構(CN) Confined Structure

11.鋼骨鋼筋混凝土結構

(ROC)

Steel Reinforced Concrete

Sturcture

12.鋼骨鋼筋混凝土結構(CN) Steel Reinforced Concrete

Sturcture

專利名稱(主語文) 專利名稱(次語文)

13.水濾淨空氣系統(ROC) Water Filtration Air System

14.水濾淨空氣系統(CN) Water Filtration Air System

15.石材地坪底部導水系統

(ROC)

Stone Floor Bottom Water Guiding

System

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WeBIM Award

WeBIM Patent

• Stereo Building Model Managing System and Method Thereof

(Taiwan/China)

• Building Information Model Display System and Method Thereof

(Taiwan/China)

Enterprise Advantage Unique Technology

• Chinese Institute of Civil and Hydraulic

Engineering BIM Awards

<2011 BIM Awards - Winner> <2013 BIM

Awards - Winner>

• China BIM Awards

<Best Collaboration – Second Prize>

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BIM Project

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Building of Smart and green Performance

Total Current Contract Amount21.6B(til Oct 18) Amount Unrecognized 13.4B

Lè Archiecture Town-yuan II

Fubon Construction Kaohsiung Fengshan

District Residence

Fubon Life Insurance Zhongshan District Hotel

Ruiguang, Neihu District, Taipei City Public house

Taoyuan City Zhong Lu No. 2 public housing Cathy Diamond Building WEHOUSE

DynaPack of Office building Kaohsiung Because I’m Happy

fu-long Urban renewal case in

Wenshan District

Pin Yang Development Corp Xinzhuang District Residential.

Total Current Contract Amount21.6B(til Oct 18) Amount Unrecognized 13.4B

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2018.

[Kuo Yang Construction Yuzhan District Office Building]

2018. Contracted cases totaled 5.5 billion

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2018.

[Tucheng District, New Taipei City, public housing project]

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2018.

[Cathay Real Estate Sanchong District Residentia]

III Managerial Performance & Business Overview

Construction

Concrete

China Macro Economic

Focus on highly-urbanized city

Strengthen relationships with

clients of high quality

Strictly controlling AR risk

Slowing economic growth

01

02 Cash is King

04 CN USA trade war

05 2018Q3 China GDP 6.7%

03 Fiscal policy &

Infrastructure

Slowing risk of

economic growth risk

無錫

南通

蘇州

揚州

Wuxi

Suzhou

Nantong

Yangzhou

Rising concrete price caused by cement price

Stringent government environmental protection requirement

Focus : Suzhou, Wuxi, Closed: Nantong, Yangzhou

Felix able adjustment on real estate and plant clients

Strengthen relationship with national and listed construction

contractor of Tier one license

Dynamic adjustment on credit policy

Stable concrete quality and enhanced competitiveness

Macro-Concrete Market in JiangSu

Sold

Suspension

Operating

Operating

31 (planned to be settled in Dec, 2018)

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IV. Mission statement

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A new-generation construction team founded on technology, concern for society and aesthetic values