Presentation Team

Chairman

CFO

SVP & Company Secretary

Acting Director General-Commercial Steering Committee

SVP – Planning & Development Division

SVP – Finance Division

• Mr. Wang Changshun

• Mr. Xiao Lixin

• Mr. Xie Bing

• Mr. Luo Laijun

• Mr. Wu Rongxin

• Mr. Yang Bin

2

Business Overview & Operational Highlights

2016 Financial Highlights

Development Outlook

safe flight in 2016

2.375 mn hourssafe flight accumulated

18.095 mn hoursgeneral aviation

12,312 hours

17 years of aviation safety

22 years of aviation security

Best Safety Records among Chinese airlines

Safety is our first priority

Network Hub1

Marketing 2

E-commerce3

Product Service4

Key Business Highlights

5

Network Hub1

4.65mn transit passengers

Beijing Hub

Key hub for profitable routes

Urumqi Hub

One Belt One Road strategy

Guangzhou

Hub

Major hub for expansion

6

New Routes

Guangzhou Toronto

Guangzhou Adelaide

Shenzhen Sydney

Shenzhen Wuhan Dubai

Xiamen Melbourne

Xiamen Vancouver

Xiamen Shenzhen Seattle

3,45mn international transit passengers

782,000 transit passengers through the Sixth Freedom Traffic Right

• Optimize flight schedules and passenger load factor

1

2• Utilize the advantage of

scale and grasped the peak demand

• Promote value-added products

• Members’ Day theme activities

• Excel in “95539” Customer Service Center

• Expand key and global account business

passenger load factor

Auxiliary income RMB 550 mn

179.1%

97.47%customer satisfaction

rate reached

2 Marketing

3

4

7

19.9%Sky Pearl Member

RMB 30.1 mn

And consecutive profits for the international segment

Internet+E-commerce

Strategy

China Southern E Travel Platformonline services

(e.g. Boarding gate upgrade, refund insurance, airport guidance)

97.4%

customer service points

70+

306+

Integrated with internet services

Airline in ChinaJoined 1st

“Integrated Transportation Traveling Big Data Cloud Platform”

Cooperated With Baidu

Build E Travel platform

Social media marketingE-commerce marketing

Online direct-sales

57.6% RMB 28.8 bn

Mobile terminal sales

142.3% RMB 4.86 bn

Social media sales

262.3% RMB 550 mn

42.7%To total sales

Direct sales

2016 Most Influential SOE New Media Account

3 E-commerce

8

Product Service4

People oriented service

• Ranked as the world’s 13th top airlines by the SKYTRAX website, which was the highest ranking among the Chinese airlines

• First green passage for transportation of human donated organs • Launched a flight medical volunteer project • Over 2,419 volunteers providing medical assistance to 3,027 flights

Online intelligent an convenient services

In-flight entertainment service

• In-flight WIFI service• Self-service refund and endorsement• Pre-order excess baggage

• Designed and developed 45 new meals with local flavors• Increased number of Hollywood movies with an average

number of more than 130 movies per month • Themed flights for the International Children’s Day

• Seat selection • Online meal ordering • Online transit hotel booking

9

2016 Financial Highlights

Development Outlook

Business Overview & Operational Highlights

2016 vs 2015

Total Operating Revenue RMB 114,981m +3.0%

Attributable to Equity shareholders of the Company

RMB 5,044m +35.0%

Per share RMB 0.51 +35.0%

EBITDA RMB 22,745m +12.9%

ASK 255,992m +8.65%

ATK 34,980m +8.62%

Pax Load Factor 80.5% +0.0pts

Overall Load Factor 69.7% +0.2pts

Aircraft Utilization(Hr) 9.52 -0.10h

2016 Annual Results Highlights

11

144,980

3,084

58,042

206,106

138,769

3,527

47,292

189,588

0

25,000

50,000

75,000

100,000

125,000

150,000

175,000

200,000

225,000

Domestic Regional International Total

2016 2015

million

Operating Data

12

8,000

10,000

12,000

14,000

16,000

18,000

20,000

22,000

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

2014 2015 2016

Monthly RPK

Monthly Revenue Passenger Kilometers (RPK)

13

Revenue breakdown(Geographic)

Revenue breakdown (Product)

Domestic72.3%

Regional2.1%

International25.6%

Cargo & Mail6.6%

Passenger93.4%

2016 Traffic Revenue Breakdown

14

Traffic Revenue by Geographic Region

15

PAX revenue in RMB millionMarket Segment 2016 vs 2015Domestic 77,256 +0.9%Regional 2,230 -11.4%International 23,016 +8.8%Total 102,502 +2.3%

Cargo revenue in RMB millionMarket segment 2016 vs 2015Domestic 2,025 -0.9%Regional 86 -11.3%International 5,080 +7.6%Total 7,191 +4.8%Traffic total 109,693 +2.4%

Passenger Yield and Freight Yield

16

PAX Yield in RMB Market segment 2016 2015 Change

Domestic 0.53 0.55 -3.6%Regional 0.72 0.71 +1.4%International 0.40 0.45 -11.1%Average 0.50 0.53 -5.6%

Cargo Yield in RMB Market segment 2016 2015 ChangeDomestic 1.15 1.23 -6.5%Regional 3.91 4.49 -12.9%International 1.14 1.19 -4.2%Average 1.16 1.21 -4.1%

2016 2015 Change

RMB million RMB million

Jet Fuel 23,799 26,274 -9.4%

Staff 20,861 18,542 +12.5%

Airframe and Engine Maintenance 7,952 7,396 +7.5%

Depreciation and Amortization 12,619 11,845 +6.5%

Operating lease 7,330 6,153 +19.1%

Landing and Navigation 13,109 11,510 +13.9%

Catering 2,965 2,680 +10.7%

CAAC InfrastructureDevelopment Fund

2,565 2,482 +3.3%

2016 Annual Operating Costs

17

22.4%

7.5%11.9%

6.9%

2.8%

12.3%

16.6%

Jet FuelStaffAirframe and Engine MaintenanceDepreciation and AmortizationOperating leaseLanding and NavigationCateringOthers

19.6%

Unit Cost per ATK (RMB)

3.11

3.00

2015 2016

Cost Structure and Unit Cost

Operating Cost Structure

18

2,000

3,000

4,000

5,000

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

2015 2016

Jet Fuel Price (RMB/TON)

Monthly Jet Fuel Price (RMB/TON)

19

Debt Structure (RMB million Equivalent)

55.4%

1.7%0.3%

38.6%

USD JPY SGD RMB EUR

4.0%

24.3%

17.9%

57.8%

Short-term loan

Long-term loan

Finance lease payable

Term of the Debt

Debt Analysis

20

Aircraft type Avg. AgeOperating

LeasedFinanceLeased

Owned Total

Airbus A319 10.3 20 1 13 37

A320 7.5 40 39 54 133

A320-200NEO 0.1 2 0 0 2

A321 6.5 22 35 32 89

A330-200 7.6 2 11 3 16

A330-300 4.4 8 13 1 22

A380-800 4.7 0 2 3 5

Boeing B737-300 18.8 0 0 3 3

B737-700 10.4 4 7 34 45

B737-800 5.3 121 63 85 269

B747-400F 14.4 0 0 2 2

B757-200 15.5 10 10

B777-200A 20.5 0 0 4 4

B777-200F 4.3 0 5 7 12

B777-300ER 1.6 0 9 1 10

B787-8 2.6 2 14 0 16

B787-9 0.1 0 1 0 1

Embraer EMB190 4.5 20 4 2 26

Total 6.6 244 204 254 702

As of 31 Dec 2016

702aircrafts

1st

in Asia

21

Our Fleet

Year 2016 2017 2018 2019

Type Actual Delivery RetirementYear-end Forecast

Delivery RetirementYear-end Forecast

Delivery RetirementYear-end Forecast

Airbus A319 37 6 31 31 31

A319neo 0 0 0 2 2

A320 133 5 3 135 7 128 11 117

A320neo 2 5 7 3 10 6 16

A321 89 10 99 99 99

A321neo 0 8 8 12 20 14 34

A330-200 16 16 16 16

A330-300 22 7 29 5 34 34

A380 5 5 5 5

Boeing B737-300 3 3 0 0 0

B737-700 45 7 38 38 38

B737-800 269 41 3 307 30 10 327 1 326

B737-8max 0 7 7 18 25 28 53

B747-400F 2 2 2 2

B757-200 10 6 4 4 4

B777-200 4 2 2 2 0 0

B777-200F 12 12 12 12

B777-300ER 10 10 10 10

B787-8 16 16 16 16

B787-9 1 3 4 10 14 7 21

Embraer EMB190 26 26 26 26

22

Delivery and Retirement Plan (2017-2019)

2016 Financial Highlights

Development Outlook

Business Overview & Operational Highlights

Completeness and perfect quality of manual system

Application of safety big data

Internal emergency response mechanism

Continual safety training

1 Striving for the Highest Flight Safety Standards

24

In-flight WIFI service and the interconnection service between on-board and on the ground

FIRST CLASS BUSINESS CLASS ECONOMIC CLASS

2 Delivering Premium Flight and Online Experience

25

26

3 Enhancing hub construction

new Beijing airport

development

Guangzhou hub development for “Canton Route”

Synergy between Guangzhou and Shenzhen hubs

27

4 Constructing “China Southern E Travel”

By end of 2017:

Reach 20,000,000followers in social media

Increase 9,000,000downloads of App

2016 CHINA SOUTHERN CORPORATE SOCIAL RESPONSIBILITY REPORT

Speech on the Release

• This is our 10th CSR Report

2016 China Southern Corporate Responsibility Report

From 2007 to 2016

2016 China Southern Corporate Responsibility Report

• The first year for listed companies to report in accordance with the HKEx ESG Reporting Guide

Our 2016 CSR Report achieved FULL DISCLOSURE on General Disclosure items as stipulated in the ESG Reporting Guide

Characteristics of our CSR Implementation

Three Core Focuses

ENVIRONMENT

SOCIETY

GOVERNANCE

Environment

We see environmental protection as a major

responsibility

Optimization of fleet structure

Improvement of resource management

Introduction of state-of-the-art technologies

Environment

First to introduce

A320neoin Mainland China

Fleet size reached

700Average fleet age

6.6 years

Environment

Routes optimized on more than

120,000flights

Fuel saving of more than

20,000tons

Reduction in CO2 emission of more than

60,000tons

SocietyMore than

150 routes to Belt and Road countries and

regions

More than

900weekly flights

Largestcarrier along Belt

and Road

Guiyang - Seoul

Guangzhou – Phu Quoc

Silk Road Economic Belt

Belt and Road routes

Maritime Silk Road

International routes

Society

First to establish Green Channel

for the transportation of donated human organs

First to launch “On-board

Medical Volunteer Program”

56 return-to-origin and diversions

due to on-board medical emergencies

249 successful transportation of

donated human organs

Society• Proactive implementation of National

Strategy of “Targeted Poverty Alleviation”;

• Localized poverty alleviation projects in Xinjiang and Hubei;

• Total input to poverty alleviation funds:

7.5million RMB

• Various charitable activities and volunteering services;

• Yearly donation of more than

10million RMB

Governance

• Safety First

• Total safe flight hours

• 2.38 million

• Incident rate

• 0.008 per 10,000 flight-

hour

• Best safety performance in 5 years

• Continue to maintain China’s best safety record

Governance

• Best flight on-time performance in the past 5 years

• Ranked 13thin SKYTRAX World’s Most Loved Airlines, 1st

among all mainland Chinese carriers

Governance

• Stable Operations

• Passenger throughput

• 115 million

• 4.8% increase

• Total turnover

• 24.38 billion ton-

kilometre

• 8.9% increase

China Southern Airlines e-Travel

Guangzhou and Beijing dual-hub

Entering into Beijing new airport

Taking the building of “Sunshine Southern” as a starting

point, we are thoroughly pushing forward the development

strategies of Standardization, Integration, Intelligence, and

Internationalization to speed up our effort in transforming

China Southern Airlines to a world-class aviation industry

group with global competitiveness, and to create a brighter

future with all our stakeholders.

Q & A

43

DisclaimerWarning about Forward-looking StatementThis presentation contains certain forward-looking statements in relation to the financial conditions, operating results and business of theCompany. These statements represent the expectations or beliefs of the Company regarding future events, and are subject to risks anduncertainties, whether known or unknown. Such risks and factors might result in significant difference between actual results, performances orevents and the results, performances or events stated or implied in such statements. Certain statements, such as those including words andexpressions such as "potential", "estimate", "expect", "anticipate", "target", "intend", "plan”, "believe", "project" and similar phrases expressed indifferent forms, are regarded as "forward-looking statements". Forward-looking statements are subject to inherent risks and uncertainties. Itshould be noted that a number of factors might result in the actual outcome deviating from conditions expected or implied in the forward-lookingstatements, and in some cases such deviation might be significant. The contents of the forward-looking statements are updated as at the date onwhich such forward-looking statements are made, and should not be assumed to have been revised or updated to reflect latest information orsubsequent events. Market trends and factors that are expected to affect the operating results of the Company are set out in the sections headed"Business Review and Outlook" and "Financial Review."

Website www.csair.com

Email ir@csair.com

Tel (86) 20 8612 4462、（86）20 8611 2480

Fax (86) 20 8665 9040

Address 278 Ji Chang Road, Guangzhou, Guangdong Province PRC 510405

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