AWEA — Investor Presentation 2019

Dec 5, 2019

AWEA 2019Q3 Company Presentation

2019.12.05

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AWEA MECHANTRONIC CO.,LTD.

Company Presentation

BY Bruce Kang
 General manager

2019/12/05

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Presentation Outline

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 AWEA Group

 Marketing intelligence

 Core Products

 Operating Performance

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Company Profiles

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Operating Centers ─ Taiwan

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GOODWAY Headquarters / 18,600 m²

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GOODWAY CTSP Branch / 26,600 m²

Taipei Hsinchu Taichung

Chiayi

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AWEA Headquarters / 26,000 m²

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AWEA CTSP Branch / 26,600 m²

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EXTRON Headquarters / 10,400 m²

AWEA GROUP Chiayi Branch 54,700 m²

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Operating Centers ─ CHINA

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Beijing Wujiang Jiaxing Dongguan

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AWEA GROUP ( WUJIANG ) 66,800 m²

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GOODWAY GROUP ( D ~~ONGGUAN )~~

EXTRON (Jiaxing) / 40,756 m²

500 m²

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Global Sales Network

Swede Denma rk n Germa ny Poland Finla Russi nd Switzerl a U. and Roma NetherlK. nia Hunga and Fran ry Ukraine South Cana Spaice Czech Korea da n Portu BulgariRepublic gal Isra Turkey a Japan Los el Angeles Ital Croa Pakist tia y Slove an Thaila nia Egyp Indi nd t a Vietna Malays m ia Singapo re Indon esia Bra zil / 20,000 m² South Africa Austra

YAMA SEIKI / 20,000 m²

New Zealand

Daughter company 100% owned by GOODWAY group

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

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 2019/11

 Capital:NT$965m (USD$32m)

 Employees:713(Taiwan:523,Mainland:190)  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

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Investment

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----- Start of picture text -----

100% 100% 100%
60% YIH CHUAN .AXTRON AXTRON A X T R O N
MACHINERY INT’L INT’L ( J i a x i n g )
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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Marketing intelligence

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Marketing intelligence

 Semi：Chamber process ,Process machine parts

 Automobile：Car parts

 Airspace：large mold racks aerospace parts

 Energy： energy industry parts 。

• Intelligence：Turn key ,Total solution

。

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Core products competitive

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High Speed

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Large-sized

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Multitasking

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Smart machine - Ai LINC

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Smart machine - Ai LINC

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 i Console AI functions

 Machine with adaptive capability for parameter adjustment triggered by Artificial Neural Network (ANN) learning.

 Online workpiece weight detection technology.

1[st] phase: Solving the problem of known workpiece weight

2[nd] phase: Applying appropriate parameters for different workpiece weights and feed conditions

Develop the weight detection algorithm of 500KG workpiece on the table Workpiece weight Workpiece & feed condition Table

Gain parameter Appropriate model for Machine Tool constructed parameters with the learning technology from Artificial Neural Network Industrial computer Controller

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Operating Performance

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Financial results

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Revenue cost net income and EPS , ,

**evenue, **	cost, net income and EPS	cost, net income and EPS	cost, net income and EPS	cost, net income and EPS	cost, net income and EPS	cost, net income and EPS	cost, net income and EPS	cost, net income and EPS
6000000
0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 ,,	Unit:NT/Thousand
	2012	2013	2014	2015	2016	2017	2018	2019Q3
Revenue	3,670,290	2,992,668	3,913,307	3,806,785	3,636,760	4,232,259	4,872,536	2,599,016
Cost	2,804,424	2,338,565	3,059,319	3,023,515	2,881,755	3,371,476	3,976,272	2,062,030
Net income	266,208	235,978	279,778	275,440	134,977	172,620	333,195	132,285
EPS	2.89	2.56	2.96	2.97	1.42	1.82	3.45	1.40

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Financial results--Dividends

Year	2013	2014	2015	2016	2017	2018
stocks	-	-	0.5	-	-	-
Cash	2.0	2.2	0.5	0.7	1.25	2.0
TOTAL	2.0	2.2	1.0	0.7	1.25	2.0

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Marketing Share

AMERICA

EUROPE

2016/2017/2018/2019Q3 2016/2017/2018/2019Q3

26%/20%/20%/19%

9%/9%/14%/11%

ASIA

2016/2017/2018/2019Q3 6%/11%/7%/7%

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CHINA

2016/2017/2018/2019Q3 34%/34%/32%/36%

TAIWAN

2016/2017/2018/2019Q3 25%/26%/27%/27%

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Competitive Advantage in China Market

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 Huge market demand for bridge type machining centers. Sales performance of over 2,000 sets in the market for generating promising repeat orders.

 One-stop production.

Casting & In-house Welding processing Materials Purchased Components

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Assembly Shipment
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	Item/Year	2017		2018		2019Q3
		Amount	%	Amount	%	Amount	%
	Revenue	201,821	100	203,085	100	155,027	100
	Operation Profit	26,472	13	24,468	12	21,613	14
Net income before Tax		27,042	13	25,601	13	23,457	15
Net income		19,844	10	19,050	9	17,533	11

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Thank you & Q & A

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