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AWEA MECHANTRONIC CO.,LTD. Company Presentation

BY JASON  HSU
 Spoke man
2017/03/16

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Presentation Outline

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 Market

 AWEA Group

 Products

 Operating Performance

Current market situation&
Competitive strategy

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What is Machine Tool ?

Machine Tool is the machine to produce the parts of a machine.

It has high quality of technology, and reflects the industry capability, such as Japan , German , US and Italy .

Most of the parts and the moulds of the plastic, quartz and electronic
components need machine tools to do machining.

。 It is a big market and not easy to be replaced.

Main applications  Automobile component
molds 30%
Hi-precision parts 30%
Aerospace components
machining 10%~20%  3C industry 10%
Others 10%

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The T es of Machine Tools yp

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Machine tools
80% 20%
Cutting Forming
40% 25%
AWEA GOODWAY
EXTRON
4
EDM
Lathe
Machining center Broaching machine Milling machine Drilling machine Grinding machine Planning machine Planning machine Wire-cut machine Plastic forming Press machine Folding machine
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Importance of Machine Tools

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Crank Shaft Turning Center

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Cylinder

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Bumper Mold

Aluminum Wheel

Bridge Type Machining Center

Wheel Turning Center

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Wheel Mold

Brake Disk

Vertical Turning Center

Vertical Turning Center

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Importance of Machine Tools

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Hub Precision Parts Horizontal Boring Mills Turning Center

Turbo-propeller 5-axis Turning Center

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Company Profiles

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

Operating Centers ─ Taiwan

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GOODWAY Headquarters / 18,600 m² Taipei Hsinchu Taichung Chiayi

GOODWAY CTSP Branch / 26,600 m²

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EXTRON Headquarters / 10,400 m²

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AWEA Headquarters / 26,000 m²

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AWEA CTSP Branch / 26,600 m²

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GOODWAY GROUP Chiayi Branch 100,000 m²

Operating Centers ─ CHINA

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Beijing
shangha
i
Wujiang
Dongguan
GOODWAY GROUP ( WUJIANG )
66,800 m²
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GOODWAY GROUP ( AWEA ( SHANGHAI ) / D ~~ONGGUAN ) 8,600 m²~~ 500 m²

Global Sales Network

Los Angeles

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YAMA SEIKI / 20,000 m² Daughter company 100% owned by GOODWAY group

Swede Denma rk n Germa ny Pola nd Finla nd U. NetherlK. and Fran Spaice n Portu gal

Japan Pakist an Thaila Indi nd Vietna a Malays m ia Singapo re Indon esia

South Africa Argent ina Over 60 professional dealers around the world in 43 countries

New Zealand

Company Profiles

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

End of 2017/02

Capital:NT$965m (USD$31m)
Employees:497(Hsin-Chu factory:218,Tai-Chung factory:264)  RD members:65

 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

Investment

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100% 100% 100%
60% YIH CHUAN .AXTRON AXTRON AXTRO N(
MACHINERY INT’L INT’L 嘉興 )
INVESTMEN INVESTMEN
INC
T CO.,LTD T LIMITED
100%
AWEA 100% B-Way 100% Billion-Way SHANGHAI
Mechantroni (Cayman)Co., (Cayman) Co., (BEST WAY)
c Ltd. Ltd.
100%
SUZHOU
(DAWEA)
28.58%
YAMA SEIKI
USA, INC.
100%
SUZHOU
(AWEA)
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Products

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Market position strategy-global view

Targeting medium-class: good market size with healthy margin

Controller Marker 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 ] AWEA and USD300,000.00) Mainland China Low cost machines (Price less than USD100,000.00)

Main Products

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 5-axis Machining Center Series

 Work-piece side rotation / Tooling side rotation  5-face Machining Center Series  Moving cross-rail / Multi-storage automatic head changer / High efficiency automatic head changer  Bridge Type Machining Center Series  X : 1,600 ~ 20,000 mm / Y : 1,200 ~ 7,000 mm / Z : 760 ~ 1,400 mm  Horizontal Boring Mills Series  X : 1,500 ~ 4,000 mm / Y : 1,200 ~ 2,400 mm / Z : 900 ~ 1,700 mm  Vertical Machining Center Series

 X : 510 ~ 2,500 mm / Y : 400 ~ 1,000 mm / Z : 330 ~ 1,000 mm

Feature Models of AWEA

MB-APC Series

High Precision Boring Mills w/ Auto Pallet Changers

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BM/AF-APC Series

VMC w/ High Efficiency Auto Pallet Changers

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AH Series

Ultra Performance Horizontal Machining Centers

MCP16054

X-axis Travel : 16,000 mm Y-axis Travel : 5,200 mm

MVP Series

Movin Cross-Rail g Multi-storage AHC

Feature Models of AWEA

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FV-960

FCV-620

Ultra Performance 5-Axis Machining Center

FCV-800

Gantry Type 5-Axis Machining Center

MEGA5 Series A / C axes milling head

5 axes Simultaneous Machinin g

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Operating Performance

Financial results

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Revenue cost net income and EPS , ,

Unit:NT/Thousand

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4,500,000
4,000,000
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
2010 2011 2012 2013 2014 2015 2016
Revenue 2,952,011 3,434,628 3,670,290 2,992,668 3,913,307 3,806,785 3,636,760
Cost 2,162,261 2,639,695 2,804,424 2,338,565 3,059,319 3,023,515 2,881,755
Net income 231,760 247,352 266,208 235,978 279,778 275,440 137,463
EPS 2.62 2.78 2.89 2.56 2.96 2.97 1.42
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Financial results--Dividends

`year`	`2012`	`2013`	`2014`	`2015`	`2016(F)`
`stocks`	`-`	`-`	`-`	`0.5`
`Cash`	`1.5`	`2.0`	`2.2`	`0.5`	`0.7`
`TOTAL`	`1.5`	`2.0`	`2.2`	`1.0`	`0.7`

Marketing Share

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AMERICA EUROPE 2014/2015/2016 2014/2015/2016 10%/12%/9% 24%/26%/26%

CHINA 2014/2015/2016 26%/32%/34%

ASIA 2014/2015/2016 9%/4%/6%

TAIWAN 2014/2015/2016 Others 31%/25%/25% 0%/1%/0%

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Market `&` Competitive strategy

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Current market situation

 Currency exchange rate fluctuation creates new challenges.

Demand for automobile industry remains.
Central banks are raising the interest rate, market .
have signs of warming up around the world
Aerospace parts manufacturing localization creates new opportunities.
Government policy for intelligent machines and indigenous naval ship building creates new requirements.
Raw materials cost raising.

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O eratin risk p g

Goodway group already grows to a scale competing with international major players.
Government support is limited. No international agreement on tax deduction. Having a unfavorable stance competing with major export countries.
Currency exchange rate fluctuation is too big. NT$ recent appreciation is not helpful for export market.
Competition from domestic makers using low price strategy is harmful for the industry long term development.

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Com etitive strate p gy

Comprehensive product range.
Well established global sales network.
Accommodated production bases (Taiwan-High production efficiency ： China-Big market potential, has regional tax deduction agreement and export subsidies)
Continuous new product development and RD investment.
Group resources support.
Long term production base expansion for future development requirements.

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Thank you & Q & A

AI assistant

AWEA Investor Presentation 2017

51853_rns_2017-03-16_97ed2fee-5b4e-4c41-87b3-fedc52e24c86.pdf

AWEA MECHANTRONIC CO.,LTD. Company Presentation

Presentation Outline

 Market

 AWEA Group

 Products

What is Machine Tool ?

The T es of Machine Tools yp

Importance of Machine Tools

Importance of Machine Tools

Company Profiles

Group Members

Operating Centers ─ Taiwan

Operating Centers ─ CHINA

Global Sales Network

Company Profiles

Investment

Products

Market position strategy-global view

Targeting medium-class: good market size with healthy margin

Main Products

 5-axis Machining Center Series

Feature Models of AWEA

MB-APC Series

BM/AF-APC Series

AH Series

MVP Series

Feature Models of AWEA

FCV-800

Operating Performance

Financial results

Revenue cost net income and EPS , ,

Financial results--Dividends

Marketing Share

Market `&` Competitive strategy

Current market situation

O eratin risk p g

Com etitive strate p gy

AI assistant

AWEA — Investor Presentation 2017

51853_rns_2017-03-16_97ed2fee-5b4e-4c41-87b3-fedc52e24c86.pdf

AWEA MECHANTRONIC CO.,LTD. Company Presentation

Presentation Outline

 Market

 AWEA Group

 Products

What is Machine Tool ?

The T es of Machine Tools yp

Importance of Machine Tools

Importance of Machine Tools

Company Profiles

Group Members

Operating Centers ─ Taiwan

Operating Centers ─ CHINA

Global Sales Network

Company Profiles

Investment

Products

Market position strategy-global view

Targeting medium-class: good market size with healthy margin

Main Products

 5-axis Machining Center Series

Feature Models of AWEA

MB-APC Series

BM/AF-APC Series

AH Series

MVP Series

Feature Models of AWEA

FCV-800

Operating Performance

Financial results

Revenue cost net income and EPS , ,

Financial results--Dividends

Marketing Share

Market & Competitive strategy

Current market situation

O eratin risk p g

Com etitive strate p gy

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AWEA Investor Presentation 2017

Market `&` Competitive strategy