MACHINE TOOLS INDUSTRY INTRODUCTION

The Features of Machine Tools

 Machine Tool is the machine to produce the parts of a machine. It has high quality of technology, and reflects the industry German US and . capability, such as Japan , , Italy  Most of the parts and the moulds of the plastic, glass and electronic components need machine tools to do machining. It is a big market and not easy to be replaced.

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The Types of Machine Tools

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Machine tools
80% 20%
Cutting Forming
40% 25%
AWEA GOODWAY
EXTRON
EDM Lathe
Plastic forming Press machine
Folding machine
Milling machine Drilling machine Boring machine
Machining center Grinding machine Planning machine Wire‐cut machine
Broaching machine
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Importance of Machine Tools

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Crank Shaft

C linder y

Machining Center

Turning Center

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Aluminum Wheel Wheel Turning Center

Bum er Mold p Bridge Type Machining Center Brake Disk Vertical Turning Center

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Wheel Mold Vertical Turning Center

Importance of Machine Tools

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Hub Horizontal Boring Mills

Precision Parts Turning Center

Turbo‐propeller 5‐axis Turning Center

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Importance of Machine Tools

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Metal Casings Tapping Center

Movement/Micro Parts Bone Screw/Implant Screw Swiss Turning Center Swiss Turning Center

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THE GOODWAY GROUP

Group Members

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GOODWAY MACHINE CORP.(Taiwan&China) CNC Turning Center Manufacturing / Since 1975

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AWEA MECHANTRONIC CO., LTD. .(Taiwan&China) CNC Machining Center Manufacturing / Since 1986

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YAMA SEIKI USA., INC.(America) Sales of Turning Centers & Machining Centers / Since 2000

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YIH CHUAN MACHINERY INC. CNC Machining Center Manufacturing / Since 1972

Company Profiles

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Company Capital Employees 967 473 (Taiwan&China) 919 605(Taiwan&China) 150 30 70 59

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Listed Company

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( NT $Million )
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Opera�ng Centers ─ Taiwan

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GOODWAY Headquarters / 18,600 m²
Taipei
Hsinchu
Taichung
Jiayi
GOODWAY CTSP Branch / 26,600 m²
DAPUMEI
Industrial District
EXTRON Headquarters / 10,400 m²
GOODWAY & AWEA New Branch
100,000 m²
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AWEA Headquarters / 26,000 m²
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AWEA CTSP Branch / 26,600 m²
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AWEA Taichung DA‐YA Branch / 3,300 m²
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Opera�ng Centers ─ CHINA

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GOODWAY Branch
Beijing
GOODWAY ( SUZHOU ) / 13,800 m²
Suzhou
Shanghai
Wujiang
AWEA Branch
Dongguan
Group Branch AWEA ( SUZHOU ) / 13,900 m²
GOODWAY GROUP ( DONGGUAN ) GOODWAY GROUP ( WUJIANG ) AWEA ( SHANGHAI ) / 8,600 m²
500 m² 66,800 m²
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Global Sales Network

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Sweden
Denmark
Germany
Poland
Finland Russia
Switzerland
U.K. Romania
Netherland Hungary
France Ukraine South Korea
Canada Spain Czech Republic
YAMA SEIKI USA, INC. Portugal Bulgaria Japan
Turkey
Israel
Croatia
Italy Pakistan
Slovenia Thailand
Egypt India
Vietnam
Malaysia
Singapore
Indonesia
YAMA SEIKI / 20,000 m² Brazil
Daughter company 100% owned South Africa
Australia
by GOODWAY group New Zealand
Argentina
Over 60 professional dealers
around the world in 43 countries
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Marketing Share

AMERICA

CHINA

AMERICA EUROPE CHINA 15 % 17 % 25 % GOODWAY 9 % AWEA 11 % GOODWAY 24 % AWEA 16 % GOODWAY 18 % AWEA 25 % ASIA ( Including Middle East ) TAIWAN 1 9 % 23 %

TAIWAN 23 % GOODWAY 17 % AWEA 33 %

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GOODWAY 30 % AWEA 15 %
OHTERS 1%
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Taiwan Manufacturers Ranking

 2012 TOP 1000 Manufacturers

in Taiwan

407 GOODWAY

643 AWEA Data from : Common Wealth magazine No.522

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AWEA MECHANTRONIC CO.,LTD.

Company Presentation

2014/03

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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

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Organization Chart

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董事長
Chairman
總經理
General Manager
總經理室
CEO Office
行銷服務處
總管理處研發處新竹廠台中廠
Sales and Marketing
Administration R&D Dept Hsinchu Factory Taichung branch
&Customer Services
17
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Investment

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100% SHANGHAI
100% C h i a - w a y (BEST WAY)
Mechantronic
100%
AWEA 100% B-Way 100% Billion-Way SUZHOU
Mechant (Cayman)Co., (Cayman) Co., (DAWEA)
ronic Ltd. Ltd.
60% YIH CHUAN
MACHINERY SUZHOU
100% (Wu-jiang)
28.58% YAMA SEIKI
USA, INC.
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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%

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Exports of Taiwan Machine Tools in 2012~2013 b Destination y

UNIT:US$1,000	UNIT:US$1,000	UNIT:US$1,000	UNIT:US$1,000	UNIT:US$1,000	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%
Source：TMIF 其他		3,548,354	100.0%	4,236,391	-16.2%

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Exports of Taiwan Machine Tools in 2012 by Products

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UNIT:US$1000
Change
Products AWEA 2012 2011
(%)
綜合加工機 (Machining Centers) 1,403,070 1,388,576 1.0%
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Products AWEA	2012	2011	Change (%)
綜合加工機(Machining Centers)	1,403,070	1,388,576	1.0%

車床類(Lathes)	793,547	678,421	17.0%
非CNC車床NON-CNC Lathes	163,103	163,643	-0.3%
鑽床Drilling Machines	117,592	122,457	-4.0%
銑床Milling Machines	185,786	218,749	-15.1%
磨床Grinding Machines	152,624	150,989	1.1%
鋸床Sawing Machines	188,699	181,556	3.9%
放電加工機EDM	86,347	93,480	-7.6%
其他切削工具機Other Metal Cutting MT	464,968	289,985	60.3%
鍛壓沖剪機械Presses & Shearing Machines	542,489	549,752	-1.3%
其他成型工具機Other Metal Forming MT	138,223	162,900	-15.1%
出口工具機合計 Total	4,236,448	4,000,508	5.9%

Source:TMIF

Market position strategy-global view

- Targeting medium class: good market size with healthy margin

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Controller Makers Machine tool makers
FANUC
Heidenhain
Mitsubishi High class Germany, Japan
SIEMENS Machines Swiss
PC BASE (Price more than
USD300,000.00)
Medium Class machines Taiwan Korea
(Price between USD100,000.00 AWEA
and USD300,000.00)
Mainland
Low cost machines
(Price less than USD100,000.00)
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22
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Financial results

Revenue cost net income and EPS , ,

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4,000,000
Unit:NT/Thousand
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
2007 2008 2009 2010 2011 2012 2013(F)
Revenue 3,663,666 3,529,893 1,575,879 2,952,011 3,434,628 3,670,290 2,992,668
Cost 2,498,530 2,560,711 1,202,923 2,162,261 2,639,695 2,755,755 2,338,565
Net income 510,047 357,232 39,125 231,760 247,352 266,241 235,978
EPS 6.57 3.93 0.44 2.62 2.80 2.89 2.56
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Financial results--Dividends

	2009	2010	2011	2012	2013 (EXPECT)
stocks	0.5	0.5	-	-	-
Cash	-	1.0	1.5	1.5	1.5
TOTAL	0.5	1.5	1.5	1.5	1.5

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	Breakdown by product type	Breakdown by product type	Breakdown by product type	Breakdown by product type	Breakdown by product type	Breakdown by product type	Breakdown by product type	Breakdown by product type	Breakdown by product type	Breakdown by product type	Breakdown by product type	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%

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Sales breakdown b re ion y g

	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%

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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	2012	2012	2012	2013	2013	2013	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
~~T~~	~~otal~~	~~76199~~	~~85267~~	~~56927~~	~~60595~~	~~76888~~	~~83952~~	~~73090~~	~~84,0~~15
		~~,~~	~~,~~	~~,~~	~~,~~	~~,~~	~~,~~	~~,~~

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Production ca acit p y

	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/Sm all double column	Double column	Machinin g 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

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Product Line(I)

New Product in Hsinchu Factory  Cross rail machine：MVP-4032/5032、MVP-5040/7040
Horizontal boring machine：To mass production scale and large size scale
Mega 5 axis machine：Mega5 G6030 in TIMTOS 、In-house technology of A & C axis auto angular head
New Product in Taichung Factory
For machining

 Mass production：A+850APC、small size boring machine、 Linear guideway with gear box spindle

 ECO Line：AV-610、1000、1250 etc.

For mould making

 AF series：With direct driven high speed spindle  High speed machine：To mould industry、extend to bigger size double column machine

 5 axis machine：FMV-45, FMV-99、Light material cutting LV6030

~~ Horizontal machining center：AH-400/800、small size boring~~ machine BL-1512

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Product Line(II)

Best Way Factory  VP/SP series：Mass production、ECO Line、Preparation for Wujiang plant
LP-3M/4M ：Advanced quality (Keep up the quality of Taiwanmade)
Vertical machining center ：Preparation for Wujiang plant
Wujiang Factory
Mass production to double column machine
Mass production to vertical machining center
Chiayi Da Pu Mei Factory  Mass production to double column machine
Mass production to vertical machining center

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Production Base Layout of the three laces p

 Hsinchu factory  The 3[rd] time expansion  Build：2015/Q1

 Da Pu Mei factory  Scale：30,000m[2]  Build：2014/mid

 Taichung factory  Plant refined  In China  Best Way assembly Line  DAWEA professional machining workshop

 Wujiang factory  Scale：66,800m[2] (With Goodway)

 Start：Q3 in 2013

Thank you & Q & A

AI assistant

AWEA — Investor Presentation 2014

51853_rns_2014-03-06_7ec90a43-6732-40b0-944f-c69f0e240f44.pdf

MACHINE TOOLS INDUSTRY INTRODUCTION

The Features of Machine Tools

The Types of Machine Tools

Importance of Machine Tools

C linder y

Importance of Machine Tools

Importance of Machine Tools

THE GOODWAY GROUP

Group Members

Company Profiles

Opera�ng Centers ─ Taiwan

Opera�ng Centers ─ CHINA

Global Sales Network

Marketing Share

AMERICA

CHINA

Taiwan Manufacturers Ranking

in Taiwan

AWEA MECHANTRONIC CO.,LTD.

Company Presentation

Company Profile

Organization Chart

Investment

What is Machine Tool ?

Exports of Taiwan Machine Tools in 2012~2013 b Destination y

Exports of Taiwan Machine Tools in 2012 by Products

Market position strategy-global view

Financial results

Revenue cost net income and EPS , ,

Financial results--Dividends

Sales breakdown b re ion y g

B/B Ratio

UNIT ： NT 1,000

Order by quarter

Production ca acit p y

Product Line(I)

Product Line(II)

Production Base Layout of the three laces p

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AWEA Investor Presentation 2014