CMC — Investor Presentation 2018

Nov 21, 2018

CMC Operating Results and Future Plan

November 21, 2018

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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.

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Agenda

Market Overview in Taiwan and Mainland China

CMC Operating Results CMC’s Prospects in 2018 & 2019

Market Overview in Taiwan and Mainland China

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Auto Market in Taiwan

• While the global economy is growing steadily this year, the estimated volume of auto market in Taiwan is 435,000 units including 10,000 units of heavy trucks and buses.

 As for 2019, although the economy still recovers steadily (the economic growth rate is expected to be 2.55%), there are still many uncertainties existing in the auto market. It is estimated around 438,500 vehicles to be sold in Taiwan, incl. 10,500 heavy trucks and buses. The volume of auto market in 2019 is only 0.8% higher than in 2018.

in ten thousand vehicles

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Auto Market in Mainland China

• The National Bureau of Statistics in Mainland China announced the economic growth rate in the first three quarters in 2018 was 6.7%, higher than the target of 6.5%. Although the overall economy is growing steadily, the uncertainties, such as the trading conflicts between USA and Mainland China, will cause the growth rate to be between 6.5% and 6.7%. The overall auto market volume this year is estimated to be 29 million units which is 0.4% higher than in 2017.

• According to the report of IMF and IHS Markit, the economic growth rate in Mainland China in 2019 will be between 6.3% and 6.4%. Even though the growth rate is lower than in 2018, it will still grow steadily. Therefore, the auto market volume of Mainland China in 2019 is estimated to be 30.07 million units which is 3.7% higher than in 2018.

in ten thousand vehicles

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CMC Operating Results

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Domestic and Overseas Sales in the First Three Quarters of 2018

Items	Accumulative Amount till the end of Sept. 2018	Accumulative Amount till the end of Sept. 2017	Growth Rate(%)
Domestic Volume of Vehicles	38,907	40,293	-3.4%
Market Share	11.9%	11.7%	1.7%
Overseas Volume
CBU	290	447	-35.1%
CKD(set)	1,110	12,270	-91.0%
Domestic Volume of Electric Scooters	7,051	4,900	43.9%

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

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Operating Results in the First Three Quarters of 2018

(disclosed in Consolidated Financial Statements)

Except for EPS in NTD, others in thousand of NTD	Except for EPS in NTD, others in thousand of NTD	Except for EPS in NTD, others in thousand of NTD	Except for EPS in NTD, others in thousand of NTD	Except for EPS in NTD, others in thousand of NTD	Except for EPS in NTD, others in thousand of NTD
Items	Q1~Q3 2018		Q1~Q3 2017		Growth Rate(%)
Revenue	27,121,112	100.0%	30,940,579	100.0%	-12.3%
Operating Profit	1,586,345	5.8%	2,163,191	7.0%	-26.7%
Non-operating gain or loss	1,936,837	7.1%	1,755,002	5.7%	10.4%
Profit before tax	3,523,182	13.0%	3,918,193	12.7%	-10.1%
Profit after tax	3,130,605	11.5%	3,570,610	11.5%	-12.3%
Earnings per share(EPS)	2.14	-	2.40	-	-10.8%

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CMC Prospects in 2018 & 2019

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Automotive Business in Taiwan

• In 2018, in addition to introducing current models featured by superior product competitiveness and improve the sales and after-sales systems, CMC has launched the big modified model of Veryca in early October and will launch the modified model of Outlander by the end of this year. CMC plans to sell 50,000 vehicles, including Fuso trucks, in 2018 while “The policy of the replacement of old vehicles with new ones” continues .

• In order to better confront the fierce competition in Taiwan auto market in 2019, CMC will consolidate and renovate the distribution channel to provide better service to customers. CMC will also launch the big modified model of Delica in the third quarter, Zinger modified model and Electric Veryca in the fourth quarter while planning on some brand new imported vehicles. CMC plans to sell 50,000 vehicles in 2019, nearly equivalent to sales of 2018.

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Colt Plus/Grand Lancer/Zinger Outlander Delica Zinger Electric Veryca
Veryca
special editions & modified big modified modified (2-seat commercial
modified model
system improvement model model model model)
2018 2019
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Pajero 2018 model
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Brand new model
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Automotive Business in Mainland China

• In 2018, with strengthening sales of DX7 & DX3 and introducing DX7 modified model in April, DX3 EV400 at Chengdu auto show in August, DX3 new year model in October, A5(V5 modified model) in November, SEM is striving to achieve the sales target this year. In 2019, SEM will launch DX5(DX3 modified model) & DX7 Prime new year model in April, and DX5 BEV(DX3 BEV modified model) in fourth quarter.

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A-Class SUV DX7 A0-Class SUV DX3 A-Class sedan A5 modified model new model year/EV (V5 modified model)

DX5 and DX7 Prime new model year, and DX5 BEV with various promotions.

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2018 2019
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• FBAC estimates to sell around 30,000 vehicles in 2018, benefiting from strengthened sales of VS20 with several exterior color choices and promotions to customers. In 2019, FBAC will launch V-Class Sport model and continue several promotional campaigns to achieve the sales goal of 38,000 vehicles, up 30% compared to sales of 2018.

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Automotive Business in Overseas Markets

 As for vehicle export, although the execution of tightened safety regulations in GCC starts from Jan. 2018 causing Veryca and Zinger not able to timely meet all requirements, the big modified model of Veryca can meet the requirement now and start the sales in GCC market this September. CMC’s export is estimated to be 400~500 vehicles in 2018. In 2019, with both Veryca and Zinger meeting the safety regulations in GCC, CMC will start to export Zinger to the GCC market in October in 2019. CMC will not only strengthen the sales in GCC market but also try to expand the sales to non-GCC markets. CMC estimates to export 1,000 vehicles in 2019.

CBU Exports

Veryca

Zinger

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Green Energy Business

• In 2018, CMC continues providing enterprises with beneficial buying or rental options, enhancing the development of domestic specialty stores and free charging stations in schools and introducing special editions of current e-scooters, such as “e-moving Shine” with new colors, in order to increase sales volume to 10,500 units which is 13.4% higher than 2017.

• In 2019, CMC will launch general heavy-duty scooters for private and commercial uses in order to provide customers with higher speed and longer endurance products. CMC will also provide customers better service and experience through specialty stores and more charging stations. The sales in 2019 is expected to reach 17,000 units which is 61.9% higher than in 2018.

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Electric Scooter
Electric Scooter free
Featured by
of License Plate
Economic Convenience
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Electric scooter Electric Scooter Featured featured as general by Big Body, Able in Both Public and Private Uses heavy-duty commercial uses

Electric Scooter Featured by High Performance & Long Endurance

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emoving POST

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Thanks for your listening!

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