CMC — Interim / Quarterly Report 2019

May 21, 2019

==> picture [79 x 53] intentionally omitted <==

CMC Operating Results and Future Plan

==> picture [40 x 55] intentionally omitted <==

May 21, 2019

1

==> picture [79 x 53] intentionally omitted <==

Safe Harbor Notice

This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses of China Motor Corporation (“CMC”). All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements.

Forward-looking statements are subject to significant risks and uncertainties which may vary from time to time and actual results may differ materially from those contained in the forward-looking statements, whether as result of new information, future events, or otherwise. CMC, its subsidiaries and representatives do not undertake any obligation to the damages resulted from the use, with or without negligence, of this presentation or other information related with it, except as required by law.

Any part of this presentation can not be, on any purpose, directly or indirectly replicated, spread, transmitted or published.

2

==> picture [79 x 53] intentionally omitted <==

Agenda

Mainland China

CMC’s Operating Results for 2019 Q1

CMC’s Prospect in 2019

Market Overview in Taiwan and Mainland China

==> picture [171 x 111] intentionally omitted <==

==> picture [193 x 107] intentionally omitted <==

4

==> picture [79 x 53] intentionally omitted <==

Auto Market in Taiwan

• The GDP growth rate reached 1.72% in first quarter of 2018, which was lower than the expected 2.27% announced by Directorate-General of Budget. And the monitoring indicator of Taiwan’s economy flashed yellow-blue light for three consecutive months. Benefiting form returning Taiwan firms bringing investments, the outlook of economy will be better than current performance in the following quarters of 2019.

• There are still uncertainties remained in the future of Taiwan’s auto market due to trading conflict between Mainland China and U.S.A and Taiwan economic slowdown. The total sales volume of 2019 is estimated to be 430,500 units, among which vehicles below 3.5 tons are 420,000 units and vehicles above 3.5 tons are 10,500 units.

Unit: in ten thousand

==> picture [614 x 222] intentionally omitted <==

5

==> picture [79 x 53] intentionally omitted <==

Auto Market in Mainland China

• The National Bureau of Statistics in Mainland China announced the GDP growth rate of the first quarter in 2019 was 6.4% achieve the official annual target of 6.0%~6.5%, but lower than 6.6% during the same period of last year. This benefited from several fiscal and tax reduction policies implemented by the Chinese government and the better global economy. The economy in Mainland China is expected to grow slowly in 2019.

• The estimated total sales volume of auto market in Mainland China is 28.1 million units which is similar to 2018.

Unit: in ten thousand

==> picture [634 x 222] intentionally omitted <==

6

CMC’s Operating Results for 2019 Q1

==> picture [171 x 111] intentionally omitted <==

==> picture [193 x 107] intentionally omitted <==

7

==> picture [79 x 53] intentionally omitted <==

Domestic and Overseas Sales in the First Quarter of 2019

Item	2018	Q1 of 2019	Q1 of 2018	Growth rate(%)
Domestic Volume of Vehicles	48,335	13,923	14,943	-6.8%
Market Share	11.6%	12.6%	12.0%	0.6%
Overseas Volume
CBU	443	210	105	100%
CKD(sets)	1,320	0	480	-
Domestic Volume of Electric Scooters	10,329	812	2,403	-66.2%

Note ： Domestic volume of vehicles includes sales of Fuso-branded trucks and buses.

8

==> picture [79 x 53] intentionally omitted <==

Operating Results in the First Quarter of 2019

(disclosed in Consolidated Financial Statements)

Item 2018 Q1 of 2019 Q1 of 2018 Growth rate(%) Revenue 34,869,514100.0%8,726,459 100.0%10,411,933 100.0% -16.2% Operating profit 1,898,041 5.4% 562,052 6.4% 803,029 7.7% -30.0% Non-operating gain or loss 2,412,672 6.9% 451,029 5.2% 802,373 7.7% -43.8% Profit before tax 4,310,713 12.4%1,013,081 11.6% 1,605,402 15.4% -36.9% Profit after tax 3,892,042 11.2% 823,376 9.44% 1,387,278 13.3% -40.6% Earnings per share (EPS) 2.64 - 0.56 - 0.97 - -42.3% EPS in NTD,others in thousand NTD	Item 2018 Q1 of 2019 Q1 of 2018 Growth rate(%) Revenue 34,869,514100.0%8,726,459 100.0%10,411,933 100.0% -16.2% Operating profit 1,898,041 5.4% 562,052 6.4% 803,029 7.7% -30.0% Non-operating gain or loss 2,412,672 6.9% 451,029 5.2% 802,373 7.7% -43.8% Profit before tax 4,310,713 12.4%1,013,081 11.6% 1,605,402 15.4% -36.9% Profit after tax 3,892,042 11.2% 823,376 9.44% 1,387,278 13.3% -40.6% Earnings per share (EPS) 2.64 - 0.56 - 0.97 - -42.3% EPS in NTD,others in thousand NTD	Item 2018 Q1 of 2019 Q1 of 2018 Growth rate(%) Revenue 34,869,514100.0%8,726,459 100.0%10,411,933 100.0% -16.2% Operating profit 1,898,041 5.4% 562,052 6.4% 803,029 7.7% -30.0% Non-operating gain or loss 2,412,672 6.9% 451,029 5.2% 802,373 7.7% -43.8% Profit before tax 4,310,713 12.4%1,013,081 11.6% 1,605,402 15.4% -36.9% Profit after tax 3,892,042 11.2% 823,376 9.44% 1,387,278 13.3% -40.6% Earnings per share (EPS) 2.64 - 0.56 - 0.97 - -42.3% EPS in NTD,others in thousand NTD	Item 2018 Q1 of 2019 Q1 of 2018 Growth rate(%) Revenue 34,869,514100.0%8,726,459 100.0%10,411,933 100.0% -16.2% Operating profit 1,898,041 5.4% 562,052 6.4% 803,029 7.7% -30.0% Non-operating gain or loss 2,412,672 6.9% 451,029 5.2% 802,373 7.7% -43.8% Profit before tax 4,310,713 12.4%1,013,081 11.6% 1,605,402 15.4% -36.9% Profit after tax 3,892,042 11.2% 823,376 9.44% 1,387,278 13.3% -40.6% Earnings per share (EPS) 2.64 - 0.56 - 0.97 - -42.3% EPS in NTD,others in thousand NTD	Item 2018 Q1 of 2019 Q1 of 2018 Growth rate(%) Revenue 34,869,514100.0%8,726,459 100.0%10,411,933 100.0% -16.2% Operating profit 1,898,041 5.4% 562,052 6.4% 803,029 7.7% -30.0% Non-operating gain or loss 2,412,672 6.9% 451,029 5.2% 802,373 7.7% -43.8% Profit before tax 4,310,713 12.4%1,013,081 11.6% 1,605,402 15.4% -36.9% Profit after tax 3,892,042 11.2% 823,376 9.44% 1,387,278 13.3% -40.6% Earnings per share (EPS) 2.64 - 0.56 - 0.97 - -42.3% EPS in NTD,others in thousand NTD	Item 2018 Q1 of 2019 Q1 of 2018 Growth rate(%) Revenue 34,869,514100.0%8,726,459 100.0%10,411,933 100.0% -16.2% Operating profit 1,898,041 5.4% 562,052 6.4% 803,029 7.7% -30.0% Non-operating gain or loss 2,412,672 6.9% 451,029 5.2% 802,373 7.7% -43.8% Profit before tax 4,310,713 12.4%1,013,081 11.6% 1,605,402 15.4% -36.9% Profit after tax 3,892,042 11.2% 823,376 9.44% 1,387,278 13.3% -40.6% Earnings per share (EPS) 2.64 - 0.56 - 0.97 - -42.3% EPS in NTD,others in thousand NTD	Item 2018 Q1 of 2019 Q1 of 2018 Growth rate(%) Revenue 34,869,514100.0%8,726,459 100.0%10,411,933 100.0% -16.2% Operating profit 1,898,041 5.4% 562,052 6.4% 803,029 7.7% -30.0% Non-operating gain or loss 2,412,672 6.9% 451,029 5.2% 802,373 7.7% -43.8% Profit before tax 4,310,713 12.4%1,013,081 11.6% 1,605,402 15.4% -36.9% Profit after tax 3,892,042 11.2% 823,376 9.44% 1,387,278 13.3% -40.6% Earnings per share (EPS) 2.64 - 0.56 - 0.97 - -42.3% EPS in NTD,others in thousand NTD	Item 2018 Q1 of 2019 Q1 of 2018 Growth rate(%) Revenue 34,869,514100.0%8,726,459 100.0%10,411,933 100.0% -16.2% Operating profit 1,898,041 5.4% 562,052 6.4% 803,029 7.7% -30.0% Non-operating gain or loss 2,412,672 6.9% 451,029 5.2% 802,373 7.7% -43.8% Profit before tax 4,310,713 12.4%1,013,081 11.6% 1,605,402 15.4% -36.9% Profit after tax 3,892,042 11.2% 823,376 9.44% 1,387,278 13.3% -40.6% Earnings per share (EPS) 2.64 - 0.56 - 0.97 - -42.3% EPS in NTD,others in thousand NTD
Item	2018		Q1 of 2019		Q1 of 2018		Growth rate(%)
Revenue	34,869,514	100.0%	8,726,459	100.0%	10,411,933	100.0%	-16.2%
Operating profit	1,898,041	5.4%	562,052	6.4%	803,029	7.7%	-30.0%
Non-operating gain or loss	2,412,672	6.9%	451,029	5.2%	802,373	7.7%	-43.8%
Profit before tax	4,310,713	12.4%	1,013,081	11.6%	1,605,402	15.4%	-36.9%
Profit after tax	3,892,042	11.2%	823,376	9.44%	1,387,278	13.3%	-40.6%
Earnings per share (EPS)	2.64	-	0.56	-	0.97	-	-42.3%

9

CMC’s Prospect in 2019

==> picture [171 x 111] intentionally omitted <==

==> picture [193 x 107] intentionally omitted <==

10

==> picture [79 x 53] intentionally omitted <==

Automotive Business in Taiwan

• Facing the market competition, CMC plan to launch big modified models of Delica in third quarter and modified model of Zinger in fourth quarter in addition to the model option adjustment upgradation for Outlander .

• The total CMC’s sales are estimated to be 50,000 units in 2019, including Fuso-branded vehicles, while the policy of replacement of old vehicles with new ones is still in effect.

==> picture [585 x 144] intentionally omitted <==

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

Veryca Outlander Colt Plus/Grand Outlander Delica Zinger
Modified model Modified model Lancer/Zinger system improvement big modified modified
model
model
special editions &
system improvement
2018 2019
----- End of picture text -----

==> picture [110 x 31] intentionally omitted <==

==> picture [274 x 108] intentionally omitted <==

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

Eclipse Cross
Pajero 2018 model special edition
----- End of picture text -----

==> picture [106 x 63] intentionally omitted <==

Eclipse Cross 2019 model

11

==> picture [79 x 53] intentionally omitted <==

Automotive Business in Mainland China

 In 2018, SEM launch brand new A5 (the modified model of V5), DX7 modified model, DX3 of 2018 model and the new electric model of DX3 EV400. The SEM’s sales were 9,1000 vehicles, which were around 40% lower than 2017. In 2019, SEM had launched the DX3 of 2019 model in Shanghai Auto Show of April in response to policy of VAT reduction. Besides SEM will launch new SUV DX5 in the 2[nd] half year, and introduce DX3 EV500 with long running distance. SEM’s sales are estimated to be 102,000 vehicles in 2019.

New Sedan A5, Modified model of DX7 SUV, 2018 model of DX3 SUV and DX3 DX5 of A0 SUV DX3 BEV(EV500) EV400 of A0 SUV 2018 年 2019 年

 Benefiting from strong sales of VS20, FBAC’s total sales in 2018 were 29,000 increased by 7.1% compared with 2017. In 2019, FBAC will decrease the price of full model to reflect the vat reduction mainland china government announced. It will be helpful to enhance the sales to achieve the sales goal of 31,000 vehicles, which are over 7% more than the sales of 2018.

12

==> picture [79 x 53] intentionally omitted <==

Automotive Business in Overseas Markets

 As for vehicle export, the Veryca and Zinger are not able to timely meet all requirement of GCC safety regulation executed in 2018. The export volume was 443 units in 2018. In 2019, The Veryca and Zinger will pass GGC regulation (Veryca resold to Middle East market since ’18/9, Zinger will also start from ‘19/10). So CMC will emphasize the Middle East market and extend the promotion to other countries. The export is estimated to be 1,000 units in 2019.

Veryca

CBU Exports

Zinger

• As for CKD export, In 2018, the export declined to 1,320 sets, mainly due to discontinued production of Freeca in Philippines. In 2019 , there will be no more CKD export because SEM will phase out Delica model.

13

==> picture [79 x 53] intentionally omitted <==

Green Energy Business

 In 2018, CMC’s sales were 10,329 units, including e-moped, which were over 10% more than 2017. This increase was because of launching special edition of “e-moving Shine” and implementing deep communication with customers such as cross-industry alliance, promotions to enterprises, public authorities and schools (such as green school project), setting up specialty stores and free charging stations in school.

 In 2019, in addition to continue the promotional campaigns and activities executed in 2018, CMC also plans to enhance the development of domestic specialty stores, charging stations construction and to introduce new scooter of general heavy-duty. CMC’s e-scooter sales are estimated to be 18,000 units in 2019.

Electric scooter Electric scooter free featured by of license plate economic convenience

Electric scooter featured by big body for both public and private uses

Electric scooter featured as general heavy-duty commercial uses

Electric scooter featured as general heavy-duty for both public and private uses

==> picture [74 x 146] intentionally omitted <==

==> picture [82 x 146] intentionally omitted <==

==> picture [116 x 146] intentionally omitted <==

==> picture [121 x 149] intentionally omitted <==

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

14
----- End of picture text -----

==> picture [97 x 109] intentionally omitted <==

==> picture [72 x 11] intentionally omitted <==

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

emoving POST
----- End of picture text -----

==> picture [120 x 145] intentionally omitted <==

Thank you for your listening

==> picture [171 x 111] intentionally omitted <==

==> picture [193 x 107] intentionally omitted <==

15