CMC — Investor Presentation 2017

May 17, 2017

CMC Operating Results and Future Plan

May 17, 2017

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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.

Agenda

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Market Overview in Taiwan and Mainland China

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Auto Market in Taiwan

Up to March 2017, the light for the ninth consecutive month still turned green and the economic growth rate of the first quarter this year appeared 2.56%, better than 1.92% forecasted by Directorate-General of Budget, Accounting and Statistics, Executive Yuan, R.O.C., indicating the gradually recovering economy.
As for 2017, although the economy recovers, there are still many uncertainties existing in the auto market. It is estimated around 429,000 vehicles to be sold in Taiwan, incl. 9,000 heavy trucks and buses.
in ten thousand vehicles

5.0
4.7

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Auto Market in Mainland China

The National Bureau of Statistics of the People’s Republic of China announces the GDP growth rate of this first quarter is 6.9%, higher than the official goal of 6.5% and the result of 6.7% during the same period of last year. It benefits from several fiscal and monetary policies implemented by the China government to boost overall infrastructures and real estate investment. The economy in China expectedly appears slowing but stable in 2017.
It is estimated that there will be around 29.4 million to be sold in China in 2017, rising 4.9% compared to last year.

In ten thousand vehicles
單位：萬台

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CMC Operating Results

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Domestic and Overseas Sales in 2016

Items	2016	2015	Growth Rate(%)
Domestic Volume of Vehicles	47,904	42,708	10.3%
Market Share	10.8%	10.2%	5.9%
Overseas Volume
CBU	1,280	1,519	-15.7%
CKD(sets)	13,530	8,280	63.4%
Domestic Volume of Electric Scooters	5,941	6,283	-5.4%

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Operating Results in 2016
(disclosed in Unconsolidated Financial Statements)

Except for EPS in NTD, others in thousand of NTD
| Items | 2016 | | 2015 | | Growth Rate(%) |
| --- | --- | --- | --- | --- | --- |
| Revenue | 30,577,106 | 100.0% | 28,447,231 | 100.0% | 7.5% |
| Operating Profit | 2,263,593 | 7.4% | 2,002,384 | 7.0% | 13.0% |
| Non-operating gain or loss | 1,264,507 | 4.1% | 1,454,043 | 5.1% | -13.0% |
| Profit before tax | 3,528,100 | 11.5% | 3,456,427 | 12.2% | 2.1% |
| Profit after tax | 3,189,100 | 10.4% | 3,166,104 | 11.1% | 0.7% |
| Earnings per share(EPS) | 2.34 | - | 2.32 | - | 0.9% |

Notes:

Operating Results in 2016
(disclosed in Consolidated Financial Statements)

Except for EPS in NTD, others in thousand of NTD
| Items | 2016 | | 2015 | | Growth Rate(%) |
| --- | --- | --- | --- | --- | --- |
| Revenue | 40,733,485 | 100.0% | 36,884,447 | 100.0% | 10.4% |
| Operating Profit | 2,598,624 | 6.4% | 2,215,415 | 6.0% | 17.3% |
| Non-operating gain or loss | 1,493,705 | 3.7% | 1,675,814 | 4.5% | -10.9% |
| Profit before tax | 4,092,329 | 10.0% | 3,891,229 | 10.5% | 5.2% |
| Profit after tax | 3,597,372 | 8.8% | 3,504,688 | 9.5% | 2.6% |
| Earnings per share(EPS) | 2.34 | - | 2.32 | - | 0.9% |

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Domestic and Overseas Sales in The First Quarter of 2017

Items	Q1 2017	Q1 2016	Growth Rate(%)
Domestic Volume of Vehicles	13,946	13,220	5.5%
Market Share	11.6%	11.4%	1.8%
Overseas Volume
CBU	165	222	-25.7%
CKD(sets)	5,070	3,870	31.0%
Domestic Volume of Electric Scooters	1,250	1,026	21.8%
Noted：Domestic volume of vehicles includes sales of Fuso-branded trucks and buses.

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Operating Results in The First Quarter of 2017
(disclosed in Consolidated Financial Statements)

Except for EPS in NTD, others in thousand of NTD
| Items | Q1 2017 | | Q1 2016 | | Growth Rate(%) |
| --- | --- | --- | --- | --- | --- |
| Revenue | 10,871,613 | 100.0% | 10,838,415 | 100.0% | 0.3% |
| Operating Profit | 829,236 | 7.6% | 874,547 | 8.1% | -5.2% |
| Non-operating gain or loss | 438,208 | 4.0% | 439,707 | 4.1% | -0.3% |
| Profit before tax | 1,267,444 | 11.7% | 1,314,254 | 12.1% | -3.6% |
| Profit after tax | 1,142,760 | 10.5% | 1,163,090 | 10.7% | -1.7% |
| Earnings per share(EPS) | 0.76 | - | 0.77 | - | -1.3% |

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CMC Prospect 2017

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Automotive Business in Taiwan

In facing intense competition, CMC launched all-new Grand Lancer this April, designed jointly by MMC and Pininfarina and equipped with new generation of 4J engine, CVT8 system and MDSS, which contribute to low fuel consumption and better driving experiences. Before that, CMC also introduced the multi-purpose model of Zinger this March, with advanced interior and exterior design and upgrading safety equipment. In the second half of this year, CMC will launch the modified model of Colt Plus as well.
Besides, cheered by the policy of the replacement of old vehicles with new ones, CMC expects to sell 50,000 vehicles, including Fuso-branded trucks and buses, higher than last year by 6%.
Zinger Multi-purpose Model
Grand Lancer
Colt Plus Modified Model
Outlander Modified Model
Colt Plus Special Edition

Lancer Sportback 2017 model
Pajero 2017 model

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Automotive Business in Mainland China

SEM sold 118,000 vehicles last year, benefiting from strong buying of DX7 which launched in July,2015, and introduction of A0-Class SUV, DX3, last November which earned deep acclaims from customers to reach monthly sales of over 6,000 vehicles. In 2017, in addition to the next year models of DX7 and DX3, SEM also plans to launch several modified models equipped with/or featured by superior product competitiveness to reach the goal of beyond 150,000 vehicles, hitting a record high.

DX7 and DX3 next year model, and several modified models equipped with/or featured by superior product competitiveness
All-new A0-Class SUV DX3
A-Class SUV DX7 2017 Model

FBAC sold 12,568 vehicles in 2016, benefiting from launch of VS20 equipped with advanced engine and turbo charger last April which appealed to the market. In 2017, FBAC will continue to strengthen sales of VS20 and offer several exterior color choices and promotions to customers. FBAC expects to sell 21,000 vehicles in 2017.

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Automotive Business in Overseas Markets

As for vehicle export, due to lower purchasing power of people living in petroleum exporting countries affected by lower crude oil price and tightened safety regulations in middle east, the export of 2016 was only 1,280 vehicles, lower than expected. In 2017, Owing to the execution of tightened safety regulations in GCC effective from Jan. 2017 which causes Veryca, Zinger and Lancer Fortis not to timely meet all requirements, CMC expects to export 300~400 vehicles.

CBU Exports
Veryca
Lancer Fortis
Zinger

As for CKD export, CMC exported 13,530 sets in total in 2016 because of sales to Philippines for Freeca extending to the end of 2017 and orders placed by SEM for the government bid of Delica as postal vehicle in China. In 2017, affected by Freeca unable to meet European Union (Stage IV) emission standards for vehicles to be executed in Philippines and SEM’s reconciling inventory, the export will decline to 11,000 sets.

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Green Energy Business

In 2016, CMC took advantage of cross-industry cooperation, promotions to enterprises, public authorities and schools and diversified media channels, such as magazines, blogs and internet movies to deeply communicate with customers to enhance their awareness and impression on e-scooter brand of Greentrans and e-moving. CMC sold 6,295 e-scooters in 2016, incl. e-scooters free of license plate.
In 2017, coupled with communication and promotion policies executed in 2016, CMC plans to focus on sales to individuals and introduces new e-scooter with higher performance and longer endurance than current models to appeal to more customers to target at the annual volume of 10,000 e-scooters, rising more than 50% compared to last year.
Electric Scooter Featured by Big Body, Able in Both Public and Private Uses
Electric Scooter
Featured by
Economic Convenience
Electric Scooter
Featured by High Performance
& Long Endurance
Electric Scooter free
of License Plate

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Thanks for your listening!

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