AWEA — Investor Presentation 2014

Sep 11, 2014

AWEA MECHANTRONIC CO.,LTD.
Company Presentation

2014/09

Notes:

Company Profile

1986 AWEA was founded in Hsin-Chu,Taiwan.
1998 Entered the OTC market.
2000 Became the listed company in TSEC.

    End of 2014/08

Capital:NT$920m (USD$30m)
Employees:511(Hsin-Chu factory:217,Tai-Chung factory:274)
RD members:64
Major products: C type and bridge type CNC machine center
Subsidiaries : Best Way Shang-Hai , Dawea Su-Zhou, Wu-jiang Su-Zhou
(all 100% holding),EXTRON(60% holding)

    Certification

ISO 9001 Quality System --Germany TUV CERT
ISO 14001 Environmental System --Germany TUV CERT
CE European Safety System --UK AMTRI

Organization Chart

Investment

What is Machine Tool ?

“Machines that make machines”
Machine tool is a powered device that fabricate components of machines by the machining process
Main applications of AWEA products
Automobile component molds 35~40%
Hi-precision parts 25~30%
Aerospace components machining 10~15%
3C industry 10~15%
Others ~10%

Notes:

Exports of Taiwan Machine Tools in 2012~2013 by Destination

UNIT:US$1,000
| 排 名 | Country | 2013 Amount % | | 2012 Amount | 成長率 % |
| --- | --- | --- | --- | --- | --- |
| 1 | 大陸-China(Hong Kong) | 1,191,044 | 33.6% | 1,493,777 | -20.3% |
| 2 | 美國-USA | 402,710 | 11.3% | 533,090 | -24.5% |
| 3 | 泰國-Thailand | 225,345 | 6.4% | 265,965 | -15.3% |
| 4 | 土耳其-Turkey | 177,375 | 5.0% | 204,393 | -13.2% |
| 5 | 德國-Germany | 119,137 | 3.4% | 131,429 | -9.4% |
| 6 | 印尼-Indonesia | 105,793 | 3.0% | 119,351 | -11.4% |
| 7 | 韓國-Korea | 97,696 | 2.8% | 86,251 | 13.3% |
| 8 | 俄羅斯-Russia | 93,067 | 2.6% | 86,614 | 7.5% |
| 9 | 馬來西亞-Malaysia | 92089 | 2.6% | 110,761 | -16.9% |
| 10 | 荷蘭-Holland | 88,793 | 2.5% | 95,689 | -7.2% |
| | Other | 955,305 | 26.9% | 1,109,069 | -13.9% |
| 其 他 | | 3,548,354 | 100.0% | 4,236,391 | -16.2% |

Source：TMIF

Market position strategy-global view

Targeting medium-class: good market size with healthy margin
AWEA

Notes:

Before we talk about our market position, I would like to give you some overview about our Taiwanese machine tools market position in the world. there are three level of machine tools. High class machines for German, Japanese, US and Swiss makers. Medium class machines for some Japanese makers and low cost machines for Taiwanese makers. AWEA machines is just in the middle, price is lower than Japanese,but higher than all Taiwanese makers.

Financial results ?Revenue, cost, net income and EPS
Unit:NT/Thousand

Financial results--Dividends

年度	2009	2010	2011	2012	2013
stocks	0.5	0.5	-	-	-
Cash	-	1.0	1.5	1.5	2.0
TOTAL	0.5	1.5	1.5	1.5	2.0

Breakdown by product type

	Bridge-type				C-type				Total
	2011	2012	2013	2014 (1~6)	2011	2012	2013	2014 (1~6)	2011	2012	2013	2014 (1~6)
Quantity	217	216	174	100	704	684	631	398	921	900	805	498
Revenue (NT$m)	1,589	1,686	1,279	678	1,470	1,545	1,315	853	3,059	3,231	2,594	1531
Gross margin %	26%	27%	23%	23%	17%	17%	19%	20%	21%	22%	21%	22%

Sales breakdown by region

	Taiwan	China	Europe	America	Asia	Total
2011	32%	22%	22%	9%	15%	100%
2012	24%	18%	26%	21%	11%	100%
2013	38%	16%	23%	12%	11%	100%
2014(1~6)	35%	16%	29%	9%	11%	100%

B/B Ratio
UNIT：NT 1,000
| Period | Order | Deliver | B/B |
| --- | --- | --- | --- |
| 2012/Q1 | 761,990 | 808,675 | 0.94 |
| Q2 | 852,670 | 937,527 | 0.91 |
| Q3 | 569,270 | 848,311 | 0.67 |
| Q4 | 605,950 | 766,135 | 0.79 |
| 2013/Q1 | 768,880 | 650,311 | 1.18 |
| Q2 | 839,520 | 709,272 | 1.18 |
| Q3 | 730,900 | 701,924 | 1.04 |
| Q4 | 840,140 | 694,372 | 1.21 |
| 2014/Q1 | 810,500 | 727,072 | 1.11 |
| Q2 | 1,124,410 | 892,543 | 1.26 |

Order by quarter

單位：新台幣萬元
| | 2013 | | | | 2014 | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3(7、8) | Q4 |
| Taiwan | 26,637 | 29,575 | 33,064 | 20,947 | 26,723 | 33,356 | 25,697 | |
| China | 16,192 | 19,609 | 16,038 | 17,735 | 10,503 | 19,956 | 17,755 | |
| North American | 12,236 | 5,960 | 4,050 | 7,383 | 11,221 | 4,376 | 5,337 | |
| ITALY | 579 | 213 | 3,037 | 7,056 | 4,405 | 14,173 | 1,806 | |
| Turkey | 4,996 | 2,579 | 1,770 | 5,927 | 7,855 | 8,133 | 2,127 | |
| Spanish | - | 3,371 | 964 | 6,903 | 2,872 | 4,942 | 228 | |
| other | 16,248 | 22,645 | 14,167 | 18,063 | 17,471 | 27,505 | 14,109 | |
| Total | 76,888 | 83,952 | 73,090 | 84,015 | 81,050 | 112,441 | 67,059 | |

各廠產能

	新竹廠	台中廠	竹崴廠	達崴廠	吳江廠	益全
面積(M2)	26,000	26,600	8,600	13,900	66,800	10,413
產品	龍門機	立加/小龍門	龍門機	代客加工	龍門機/立加	立加/小龍門
產能(台/月)	20	80	6	-	50(註)	6
產能(千元/月)	160,000	160,000	50,000	6,000	160,000(註)	17,000
所在地	新竹縣	台中市	上海	蘇州	蘇州	台中市
註：分兩期蓋廠，此為第一期產能

Thank you?& ?Q & A