CMC — Investor Presentation 2019

Nov 19, 2019

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China Motor Corporation Investor Conference (ticker symbol ：2204)

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Agenda
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16:10

China Motor Corporation Investor Conference

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CMC Operating Results and Future Plan

Opinion Exchange

17:10

Presenter ： Ching-Wu Chien

VIce President

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CMC Operating Results and Future Plan

(ticker symbol ：2204)

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Safe Harbor Notice
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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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Outline
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Market Overview

• Auto Market in Taiwan

• Auto Market in China

CMC’s Operating Results in 2019 Q1-Q3

CMC’s Prospect in 2020

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Auto Market in Taiwan
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• US-China trade war

• Major national monetary policy

GDP Estimated

Q1: 1.83% Q2: 2.40% Q3: 2.91%

• International stock /exchange /bond

market fluctuations

• The impact of geopolitical situation on the economy

(Source：Directorate-General of Budget, Accounting and Statistics)

Auto Market

Estimated units YoY

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Unit: in ten thousand

Vehicles below 3.5 tons: 415,000 units Vehicles above 3.5 tons: 13,500 units

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Auto Market in China
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GDP

(Source： National Bureau of Statistics in Mainland China)

 As the impact of US-China trade war, China’s economy grew by 6.0% in Q3 of 2019, the lowest quarterly growth in 27 years.

 In order to stimulate domestic demand, the State Council announced the relaxation of car purchases on 27th August.

Auto Market

Estimated units, YoY

Passenger car : 21.50 million units, YoY -9%

Unit: in ten thousand

2808.1 2600

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Outline
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Market Overview

CMC’s Operating Results in 2019 Q1-Q3

• Domestic and Overseas Sales in 2019 Q1-Q3

• Operating Results in 2019 Q1-Q3

CMC’s Prospect in 2020

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Domestic and Overseas Sales in 2019 Q1-Q3
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Item	2018	Q1-Q3 of 2019 (A)	Q1-Q3 of 2018 (B)	Growth rate (A-B)/B
Domestic Volume of Vehicles	42,575	32,766	34,210	-4.2%
Fuso-branded trucks and buses	5,760	4,345	4,697	-7.5%
Market Share	11.6%	11.7%	11.9%	-1.7%
Overseas Volume
CBU	443	615	290	112.1%
CKD	1,320	0	1,110	-100.0%
Domestic Volume of Electric Scooters	10,329	4,689	7,051	-33.5%

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Operating Results in 2019 Q1-Q3
(disclosed in Consolidated Financial Statements)
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EPS in NTD, others in thousand NTD

Item	2018	2018	Q1-Q3 of 2019 (A)	Q1-Q3 of 2019 (A)	Q1-Q3 of 2018 (B)	Q1-Q3 of 2018 (B)	Growth rate (A-B)/B
Revenue	34,869,514	100.0%	24,399,143	100.0%	27,121,112	100.0%	-10.0%
Operating profit	1,898,041	5.4%	1,405,257	5.8%	1,586,345	5.8%	-11.4%
Non-operating gain or loss	2,412,672	6.9%	(427,032)	-1.8%	1,936,837	7.1%	-122.0%
Profit before tax	4,310,713	12.4%	978,225	4.0%	3,523,182	13.0%	-72.2%
Profit after tax	3,892,042	11.2%	470,982	1.9%	3,130,605	11.5%	-85.0%
Earnings per share (EPS)	2.64	-	0.29	-	2.14	-	-86.4%

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Outline
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Market Overview

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CMC’s Operating Results in 2019 Q1-Q3

CMC’s Prospect in 2020

• Auto Business in Taiwan

• Auto Business in China

• Auto Business in Overseas Market

• Electric Scooter Business in Taiwan

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Auto Business in Taiwan
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• Subsidy policy to be extended

Domestic

• Estimated 48,000 units/(year) to be sold

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Delica Grand Lancer Outlander Zinger Colt Plus Change Model 2020model 2020model model 2020model

2019年

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Import
Eclipse Cross
Eclipse Cross
Blue Edition
Black Edition
2020model
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2020年

Introduction of current model to be slightly modified or featured by superior product competitiveness and E-Veryca five-seat.

(Including Fuso-branded vehicles)

41,000 units were sold from Jan.-Oct.

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Auto Business in China
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2019:

• Passenger car market declines.

• Stage 5 vehicles have not been sold in the most of areas since July.

• Competitors increase greatly sales discounts to reduce inventory.

• Financial crisis of suppliers occurred.

Estimated 50,000 Units/(year)

34,000 units were sold from Jan.-Oct.

• Introduce New SUV Class B(DX5).

• Take good advantage of the countryside policy announced by China government.

• Explore the Middle East and southeast Asia markets.

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DX3 SUV
2019model
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2019

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DX5 DX3 New SUV Electric EV500

2020

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DX9 New SUV ClassB

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Auto Business in China
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Overview of 2019:

 As a result of the China government executing value-added tax reduction, the prices of all products reduce.

 Q4 sales will probably be better than Q3.

Estimated 28,000 Units/(year) Units/(year)

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28,000 Units/(year) Units/(year)
23,000 units were sold from Jan.-Oct.
2019 2020
V-class ,Vito
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23,000 units were sold from Jan.-Oct.

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Auto Business in Overseas Market
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Zinger restarts the sales

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708 units were sold from Jan.-Oct.

 Veryca is the main model of the growth.

Strive for the priority of DE/DET models in the Middle East

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CMC Will Continue to Explore Sales in Southeast Asia and Other Countries.

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Electric Scooter Business in Taiwan
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• Expand specialty stores to 50 stores.

• Build up charging station (different efficiency charging facility based on stay-time at different areas)

Charging mode	At home (600W)	0.3C (1.2Kw)	1C (4.8kw)	3C (14.4kw)
Lifestyle	Home/ Work/ School	Service / Food/ Shopping/ Leisure		Relay on the way
Set target	Public agency/ Community	Public agency/ Mall/ Restaurant		China Petroleum

• 160 stations on the end of 2019

• More than 250 stations on the end of 2020

• Launch two Ordinary-Heavy models

• 2019/7 iE125

• 2019/10 iE125B (Commercial)

• Cross-industries alliance, promotions to enterprises, public authorities and schools.

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5,715 units were sold in Jan.-Oct.

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Electric Scooter Business in Taiwan
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2020

Strengthen accessories

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development

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The launch of KG modified models and low price models

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Launch of Shine and KG with new colors

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