AWEA — Investor Presentation 2014

Jun 12, 2014

AWEA MECHANTRONIC CO.,LTD.
Company Presentation

2014/06

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 2014/02

Capital:NT$920m (USD$30m)
Employees:479(Hsin-Chu factory:232,Tai-Chung factory:247)
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),YIH CHUAN(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	0	0	0
Cash	0	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
	2010	2011	2012	2013	2010	2011	2012	2013	2010	2011	2012	2013
Quantity	178	217	216	174	593	704	684	631	771	921	900	805
Revenue (NT$m)	1,367	1,589	1,686	1,279	1,133	1,470	1,545	1,315	2,500	3,059	3,231	2,594
Gross margin %	29%	26%	27%	23%	19%	17%	17%	19%	25%	21%	22%	21%

Sales breakdown by region

	Taiwan	China	Europe	America	Asia	Other	Total
2010	35%	19%	17%	7%	21%	1%	100%
2011	32%	22%	22%	9%	15%	0%	100%
2012	24%	18%	26%	21%	11%	0%	100%
2013	38%	16%	23%	12%	11%	0%	100%

B/B Ratio
UNIT：NT 1,000
| Period | Order | Deliver | B/B |
| --- | --- | --- | --- |
| 2011/Q1 | 1,142,170 | 497,219 | 2.29 |
| Q2 | 1,237,500 | 893,932 | 1.38 |
| Q3 | 696,090 | 802,913 | 0.87 |
| Q4 | 890,440 | 1,013,975 | 0.88 |
| 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 |

Order by quarter

單位：新台幣萬元
| | 2012 | | | | 2013 | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 |
| Taiwan | 20,304 | 27,468 | 22,784 | 17,051 | 26,637 | 29,575 | 33,064 | 20,947 |
| China | 9,733 | 15,616 | 7,975 | 7,929 | 16,192 | 19,609 | 16,038 | 17,735 |
| North American | 23,235 | 5,506 | 5,758 | 14,539 | 12,236 | 5,960 | 4,050 | 7,383 |
| ITALY | 5,110 | 1,393 | 3,646 | 5,139 | 579 | 213 | 3,037 | 7,056 |
| Turkey | 3,602 | 13,215 | 2,546 | 3,272 | 4,996 | 2,579 | 1,770 | 5,927 |
| Spanish | 735 | 1,361 | 625 | 708 | - | 3,371 | 964 | 6,903 |
| other | 13,480 | 20,707 | 13,592 | 11,957 | 16,248 | 22,645 | 14,167 | 18,063 |
| Total | 76,199 | 85,267 | 56,927 | 60,595 | 76,888 | 83,952 | 73,090 | 84,015 |

Production capacity

	Hsinchu	Taichung	Best Way	DAWEA	Wujiang	Yih Chuan
Scale(M2)	26,000	26,600	8,600	13,900	66,800	10,413
Product	Double column machine	Vertical/Small double column	Double column	Machining workshop	Double column/ vertical	Vertical/ Small double column
Capacity (set/month)	20	80	6	-	50 (Remarks)	6
Capacity (thousands/month)	160,000	160,000	50,000	6,000	160,000 (Remarks)	17,000
Location	Hsinchu	Taichung	Shanghai	Suzhou	Suzhou	Taichung

Thank you?& ?Q & A