1. Page 1 Copyright © 2006 Taiwan High Speed Rail Corporation. All Contents Confidential. Operation Overview of Taiwan High Speed Rail Chiang, Chen, Assistant Vice President, Taiwan High Speed Rail Corporation

2. Page 2 Copyright © 2006 Taiwan High Speed Rail Corporation. All Contents Confidential. Outline 1.THSR Overview 2.Experience Transferred 3.Operation Status 4.Advanced Services 5.Operational Challenge 6.Quality Assurance

3. Page 3 Copyright © 2006 Taiwan High Speed Rail Corporation. All Contents Confidential. THSR Overview 1. Route & Stations Taipei Zuoying Taichung Banciao Taoyuan Hsinchu Chiayi Tainan Miaoli Chunghua Yunlin Nangang 1992 route and station location determined 1998 construction started 2007 opening 345 km 11 counties/cities and 77 towns (90% of Taiwan population) 8 stations 4 future stations

4. Page 4 Copyright © 2006 Taiwan High Speed Rail Corporation. All Contents Confidential. THSR Overview 2. BOT Project THSRC signed the Contracts with Ministry of Transportation and Communications (MOTC) on 1998. Total Investment ： 16.5 billion U.S. dollars 3.4 13.1 GovernmentTHSRC (Unit ： billion U.S. dollars) Construction and Operation Contract Station Area Development Contract 35 35 - year concession 50 50 - year concession

5. Page 5 Copyright © 2006 Taiwan High Speed Rail Corporation. All Contents Confidential. THSR Overview 3. Construction Completed by THSRC (96%) Completed by THSRC (96%) Bridges & Viaducts 251km (73%) Bridges & Viaducts 251km (73%) Tunnel 47km (14%) Tunnel 47km (14%) Cut & Fill 31km (9%) Cut & Fill 31km (9%) Completed by Government (4%) Completed by Government (4%) Tunnel 16km (4%) Tunnel 16km (4%) (between Taipei & Banciao)

6. Page 6 Copyright © 2006 Taiwan High Speed Rail Corporation. All Contents Confidential. Experience Transferred A Brand New Experience A Local Team with Passion, Vision and Determination Knowledge, Skill and Experience from International Operational/ Technical Transition 20082009 Knowledge and Skill Transfer by Classroom Training and On-Job Training Experience Transfer and Sharing by Team Work, Coaching and Supervising 2006, Aug Construction Completion 2006, Dec Trial Operation 2007, Jan Revenue Operation 2008, Mar All Local OCC Controllers 2008, Oct All Local Train Drivers 2007 2006

7. Page 7 Copyright © 2006 Taiwan High Speed Rail Corporation. All Contents Confidential. Effective from October 1 st, 2010 Weekly Train Service Number  915 Operation Time  06:30 ~ 24:00 (17.5 hrs) Maintenance Working Time (including Sweep Operations)  24:00 ~ 06:30 (6.5 hrs) Stopping Pattern TaipeiBanciaoTaoyuanHsinchuTaichungChiayiTainanZuoying Operation Time (Min.) Train No. per Direction Southbound / Northbound B 96 23/2423/2329/2528/2729/31 C 108 1/21/21/21/21/21/21/21/21/21/2 D 120 34/3233/3237/3737/3438/39 E 58 3/43/43/43/42/52/52/22/22/22/2 E’ 58 1/11/11/11/11/11/11/11/11/11/1 Total62/6361/6270/7069/6671/75 Day Mon Tue Wed Thu FriSatSun Operation Status 1. Stopping Patterns & Operation Time

8. Page 8 Copyright © 2006 Taiwan High Speed Rail Corporation. All Contents Confidential. Operation Status 2. Ridership Growth (1/3) 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 Monthly Ridership 2007200820092010 2007/1/5 Opening 2011 3,702,168 October

9. Page 9 Copyright © 2006 Taiwan High Speed Rail Corporation. All Contents Confidential. Operation Status 2. Ridership Growth (2/3) 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 200,000 104,349 119,425 189,386 137,731 2008200920102011 2007 160,162 190,596 161,884 Daily Ridership 2/5 (Chinese New Year) 2/16 (Chinese New Year) 10/12 (National Day) Weekly Average Weekday Average Highest Daily Weekend Average 2007/1/5 Opening

10. Page 10 Copyright © 2006 Taiwan High Speed Rail Corporation. All Contents Confidential. Operation Status 2. Ridership Growth (3/3) Global Financial Crisis 15,555,656 30,581,261 32,349,260 36,939,596 34,379,183 0 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 20072008200920102011 Total Ridership ： 149,822,956 Total Ridership ： 149,822,956 14.2% 12.9% Annually Ridership

11. Page 11 Copyright © 2006 Taiwan High Speed Rail Corporation. All Contents Confidential. Operation Status 3. Services Ramp-Up Plan 637 791 834 942 0% 20% 40% 60% 80% 100% 79.4% 9/143/316/17/2711/91/187/43/167/1 1/8 200820092007 7/1 10/1 7/12 2010 34.9% 345678109 11 13 12 14 879 942 816 863 892 907 915 2011 2 53.0% 54.8% 266 350 434 518 Global Financial Crisis Operation Ramp-up Milestones Train No. per Week Monthly Ridership LoadFactor Train No. per Week 2007/1/5Opening 1

12. Page 12 Copyright © 2006 Taiwan High Speed Rail Corporation. All Contents Confidential. Operation Status 4. Key Performance Key Performance Index Revenue Services 203,096 Accident Rate 0 Service Reliability 99.94% 99.94% (Target: > 99.5 %) Service Punctuality 99.33% 99.33% (within 5 mins delay at destination, target: > 98 %) Avg. Delay Time 0.24 0.24 (min. per trip)

13. Page 13 Copyright © 2006 Taiwan High Speed Rail Corporation. All Contents Confidential. Equipped for Train Master Equipped for Train Master Seat Occupancy Clearly Seat Occupancy Clearly Ticket Holders Identity Ticket Holders Identity Effective Ticket Validation Effective Ticket Validation Automatic Downloads & Updates Automatic Downloads & Updates Advanced Services 1. Seat Map Information System (1/2)

14. Page 14 Copyright © 2006 Taiwan High Speed Rail Corporation. All Contents Confidential. Children Full FareSenior Person Disabled  Each Ticket Type With Specific Color Occupied No passenger Occupied (taken by another passenger at next station)  Each Seat Usage With Specific Image Seat to be taken Advanced Services 1. Seat Map Information System (2/2)

15. Page 15 Copyright © 2006 Taiwan High Speed Rail Corporation. All Contents Confidential. Advanced Services 2. Purchasing Ticket from Convenience Stores (1/3) Introduction 1st The 1st system in the world using QR code (quick response code) ticket sold in convenience stores. Feb. 23, 2010 Service commenced on Feb. 23, 2010. 24 hr System Opening Time : 24 hr 28 days prior Period open for booking : 28 days prior to the date of departure, until 1 hour before the time of departure. 8,500 At present, our partnering convenience stores are 7-ELEVEN, FamilyMart and Hi-Life (Totally over 8,500 convenience stores).

16. Page 16 Copyright © 2006 Taiwan High Speed Rail Corporation. All Contents Confidential. Integrating with the existing ticket system (magnetic ticket & CSC) at the same ticket barrier Advanced Services 2. Purchasing Ticket from Convenience Stores (2/3)

17. Page 17 Copyright © 2006 Taiwan High Speed Rail Corporation. All Contents Confidential. Advanced Services 3. Purchasing Ticket from Smart Phone (1/2) Download T-Express App & Reserve Tickets Get a QR Code and board the train Introduction Passenger will be able to buy tickets anywhere, no more waiting in line to retrieve ticket at station. Oct. 28, 2011iPhone platform. Service commenced on Oct. 28, 2011 for iPhone platform. 24 hour fully integrated ticketing system.

18. Page 18 Copyright © 2006 Taiwan High Speed Rail Corporation. All Contents Confidential. Advanced Services 3. Purchasing Ticket from Smart Phone (1/2) Your phone is your ticket Purchased Ticket directly sent to your phone. Easiest way to look up discount tickets. By simply scanning the barcode ticket at the barrier directly from phone! Ticket reservation, payment, pickup, order modification, and cancellation all in just a few taps from phone. Easy manage your information and transaction records for ticketing. Remarks ： a.Application of Android is developing, expected to begin by the end of 2011. b.Applications for Windows and Symbian is under planning.

19. Page 19 Copyright © 2006 Taiwan High Speed Rail Corporation. All Contents Confidential. Advanced Services 4. Integration with Co-branded EasyCard (Developing) Introduction Co-branded Easycard linked with a credit account to add value automatically. Conveniently and rapidly pass the ticket barriers. Expected to begin in December, 2011. Only Available for Non-reserved ticket. (EasyCard) (Co-branded EasyCard)

20. Page 20 Copyright © 2006 Taiwan High Speed Rail Corporation. All Contents Confidential. Providing free charge service by THSR since Nov. 17, 2007, but operated by local bus carriers. Advanced Services 5. Free Shuttle Service Total No. of Service Routes10 Average Daily Services1,030~1,077 Total No. of Passengers (Up to October, 2011)17,209,702 Ratio in Total HSR Ridership13.6% THSR Shuttle Bus

21. Page 21 Copyright © 2006 Taiwan High Speed Rail Corporation. All Contents Confidential. Operational Challenge 1. Natural Hazards The island of Taiwan lies in a complex tectonic area, and Taiwan's climate is marine tropical. Thus, Natural hazards such as typhoons and earthquakes are common in the region. Typhoons 3.5 Typhoons ： 3.5 typhoons hit Taiwan per year on average. Earthquakes 18,000 Earthquakes ： 18,000 earthquakes hit Taiwan per year on average. (In 2010, Magnitude ＞ 4 ： 148 ) Installed DWS (Disaster Warning System) to maintain operation safety in all weather conditions.

22. Page 22 Copyright © 2006 Taiwan High Speed Rail Corporation. All Contents Confidential. Operational Challenge 2. A Case of Jiaxian Earthquake (1/2) Taipei Banciao Taoyuan Hsinchu Zuoying Taichung Chiayi Tainan N Epicenter About Earthquake Taiwan time ： 2010/3/4 08:18 Magnitude (ML) ： 6.4 Depth ： 22.6 Km Max. Acceleration ： 291 Gal (cm/s²) (HSR Main line) Operation Impact on 2010/3/4 6 revenue trains were stopped in affected area. (1 train derailed with 1 bogie only) Passenger evacuation was implemented for 6 effected trains. Operation Stop between Taichung and Zuoying.

23. Page 23 Copyright © 2006 Taiwan High Speed Rail Corporation. All Contents Confidential. Operational Challenge 2. A Case of Jiaxian Earthquake (2/2) Exit TK215 + 772 Exit TK219 + 883 Exit TK283 + 258 Exit TK294 + 332 Exit TK311 + 725 Chiayi TK251 + 585 T405 TK215 + 500 T408 TK220 + 100 T105 TK283 + 500 T403 TK315 + 020 T110 TK293 + 800 T410 TK310 + 700 Tainan TK313 + 860 SouthBound NorhBound T110 derailed (Car 12 bogie 2) Pantograph all damaged Track damaged OCS damaged Signal damaged 2,375 passengers were evacuated from 6 affected trains 1 Pantograph damaged Running speed upon UB active ： 298 km/h Running speed upon derail ： 272 km/h Running distance after derail ： 2700 m Running time after derail ： 68 s Stopping distance ： 3300 m

24. Page 24 Copyright © 2006 Taiwan High Speed Rail Corporation. All Contents Confidential. Quality Assurance ISO 9001 Certification Certificated by Lloyd’s Register Quality Assurance Limited (2010) Approved THSRC Rolling Stock (700T) maintenance. (2010) In Progress Track, power, signal and communication maintenance. (2011) Passenger Services at stations and on-board service. (2011)

25. Page 25 Copyright © 2006 Taiwan High Speed Rail Corporation. All Contents Confidential. Thanks for your attention