Contents

1 Contents I. Letter to 1 II. company 13 III. Corporate Governance 18 19 Directors, Supervisors and Management 22 Remuneration of Directors, Supervisors, President, and Vice 40 Implementation of Corporate 48 Information Regarding the company s Audit Fee and 84 Changes in Shareholding of Directors, Supervisors, Managers and Major 85 Relationship Among the Top Ten 89 Ownership of Shares in Affiliated 92 IV. Capital 93 Capital and 93 Corporate 98 Preferred 101 Global Depository Receipts .. 101 Employee Stock 101 Employee Restricted 101 Status of New Shares Issuance in Connection with Mergers and 101 Financing Plans and 101 V.

2 Operational 102 Business 102 Market and Sales 113 Human 120 Environmental Protection 120 Labor 120 Important 121 Contents VI. Financial 125 Five-Year Financial 125 Five-Year Financial 133 Supervisors Report for the Most Recent 137 Consolidated Financial Statements for the Years Ended December 31, 2016 and 2015 and Independent Auditors 137 The Parent- company -Only Financial Statements for the Years Ended December 31, 2016 and 2015 and Independent Auditors 137 VII. Review of Financial Conditions, Financial Performance, and Risk 138 Analysis of Financial 138 Analysis of Financial 139 Analysis of Cash 139 Major Capital Expenditure 140 Investment Policy in the Last Year, Main Causes for Profits or Losses, Improvement Plans and the Investment Plans for the Coming 141 Analysis of Risk 141 Other Important 144 VIII.

3 Special 145 Summary of Affiliated 145 Appendix Appendix 1 Consolidated Financial Statements for the Years Ended December 31, 2016 and 2015 and the Independent Auditors 151 Appendix 2 The Parent- company -Only Financial Statements for the Years Ended December 31, 2016 and 2015 and the Independent Auditors 229 to ShareholdersDear Shareholders, Since its establishment 28 years ago, EVA has sustained the enterprise s spirit of Challenge, Innovation, Teamwork , and carried out a strict flight safety management and service quality. EVA's core values are Safety and Services.

4 EVA received multiple honors and maintained excellent flight safety records in 2016. The accolades include being ranked s World Safest Airlines Top Twenty list and rated third among the JACDEC Airline Safety Ranking for the second consecutive year. In terms of the service quality, EVA and RIMOWA jointly released the cutting-edge electronic tag luggage, which simplifies passenger luggage check-in processes. This is the first airline in Asia and the second worldwide to officially offer the new service. For the benefit of visually disabled passengers, EVA prepared Braille cabin schematics and Braille versions of the passenger safety card, in accordance with the policy of the Civil Aeronautics Administration (CAA), Ministry of Transportation and Communications (MOTC), on barrier-free transportation environment, to offer visually disabled passengers information on the positions and instructions of all cabin safety facilities on board.

5 In terms of overall performance evaluation, EVA received the highest honor in airline service quality from SKYTRAX 5-Star Rating in 2016. EVA is the first in Taiwan and the eighth worldwide to be awarded this honor. EVA has also been recognized as the world eighth best airline and named as the Best Transpacific Airline , Best Business Class Comfort Amenities as well as the world s third Most Loved Airlines by SKYTRAX. Other awards include Global Traveler Magazine's Best Airport Staff/Gate Agents award and Leisure Lifestyle Award for Outstanding Customized Service (Hello Kitty Jets), the eighth on the Travel + Leisure Magazine's The World s Best International Airlines , Business Today Magazine's Best Brand Award first place in the airline category, the first on Cheers Magazine s Top 100 Most Attractive Employers of transportation industry, and CAA s 2016 Golden Flyer Award for International and Cross-strait Route Group.

6 Regarding corporate social responsibility, EVA spares no effort in its devotion. In terms of corporate governance, EVA was rated the top 5% best listed companies in the 2nd Corporate Governance Evaluation by TWSE (Taiwan Stock Exchange). With regard to environmental protection, EVA was certified for ISO 14001 environmental management system and ISO 50001 energy management system in 2016, and plans to adopt the ISO 14064 Greenhouse Gases emissions inspection and verification in 2017. EVA purchased million kWh of green power, and received the Corporate Vision Award from the Ministry of Economic Affairs.

7 EVA Carbon Offset Program will be carried out in 2017 to demonstrate EVA s efforts on renewable energy and global warning issue, which allows passengers voluntarily pay the equivalent value or customized amount to take part in zero-carbon travel and support the international carbon reduction project funded by Climate Care. Regarding social involvement, in cooperation with the Chang Yung-Fa Foundation, EVA donated second-hand furniture to schools in remote areas of Miaoli County, and sponsored many sports and arts events such as the Pingtung Picturesque Rice-Field Art Festival to improve the nationals humanities accomplishment.

8 Furthermore, EVA has 1participated in the Taiwan Corporate Sustainability Award held by TAISE (Taiwan Institute for Sustainable Energy) for two consecutive years, and has received the Top 50 Corporate Sustainability Report Awards - Transportation Gold Award and the Social Inclusion Award in 2016. EVA also attended TACS (Taiwan Academy of Corporate Sustainability) 1st Taipei Golden Eagle Micro-movie Festival and won the Best Corporate Governance Award . 2016 Results EVA reported 2016 operating revenue of NT$ billion, a slight decrease year-on-year, with NT$ billion in net profit and NT$ earnings per share.

9 Consolidated operating revenues reached NT$ billion, a increase over 2015, and net profit for 2016 amounted to NT$ billion. Passenger revenue grew to NT$ billion in 2016, a NT$ billion increase compared to 2015. Although the cross-strait routes were affected by China's tourism limitation policy, which resulted in a sharp drop in the numbers of Chinese travelers in Taiwan, the impact was reduced to minimum by reduction flights or flexible adjustments in the aircraft types in order to transfer capacities to more efficient and profitable Northeast Asia and Southeast Asia routes.

10 Meanwhile, the transfer mechanism of additional transpacific day flights partnered with southeastern night flights built a comprehensive flight network, improving the convenience and competitiveness of transfer flight. The average load factor remained 80% in 2016, while the number of passengers grew by Cargo revenue contracted to NT$ billion in 2016, a NT$ billion decrease compared to 2015. In consideration of the overcapacity in overall cargo market, EVA continues to adjust fleets and route structures. The cargo capacity dropped while cargo volume slid and the load factor decreased year-on-year.