CMC — Investor Presentation 2019

Sep 27, 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 Mainland China

CMC’s Operating Results in the first half of 2019

CMC’s Prospect in 2019

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Auto Market in Taiwan
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• US-China trade war

• Major national monetary policy

GDP

Estimated H1: 2.12% H2(F): 2.79%

• 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

Unit: in ten thousand

Vehicles below 3.5 tons: 410,000 units Vehicles above 3.5 tons: 10,500 units

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Auto Market in Mainland China
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First half of GDP

Q1: 6.4%

Q2: 6.2%

(Source： National Bureau of Statistics in Mainland China)

 As the impact of US-China trade war, China’s economy grew by 6.2% in Q2 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 : 22.44 million units, YoY -5.4%

Unit: in ten thousand

(Source ：China Association of Automobile Manufactures)

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Total
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Outline
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Market Overview

CMC’s Operating Results in the first half of 2019

• Domestic and Overseas Sales in the first half of 2019

• Operating Results in the first half of 2019

CMC’s Prospect in 2019

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Domestic and Overseas Sales in the first half of 2019
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Item	2018	H1 of 2019 (A)	H1 of 2018 (B)	Growth rate (A-B)/B
Domestic Volume of Vehicles	48,335	23,232	24,444	-5.0%
Fuso-branded trucks and buses	5,760	3,252	3,342	-2.7%
Market Share	11.6%	11.1%	10.7%	3.7%
Overseas Volume
CBU	443	454	177	156.5%
CKD	1,320	0	930	-
Domestic Volume of Electric Scooters	10,329	1,951	4,581	-57.4%

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Domestic and Overseas Sales in the first half of 2019
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Item

H1 of 2019 H1 of 2018 Growth rate 2018 (A) (B) (A-B)/B

Domestic Volume of 48,335 Domestic market 23,232 24,444 -5.0% Vehicles • T ~~h~~ e ~~d~~ omestic auto mar ~~k~~ et ~~d~~ ec ~~l~~ ines 13.3%, more t ~~h~~ an CMC(-5%). Fuso-branded trucks ‘ 5,760 3,252 3,342 -2.7% and buses • CMC s market share increases 3.7% year-over-year (rises 0.4 %).

Market Share 11.6% 11.1% 10.7% 3.7% Overseas market

Overseas Volume • New Ver ca drives ex ort rowth of 156.5%. y p g

CBU 443 454 177 156.5% Domest ~~i~~ c e ~~l~~ ectr ~~i~~ c scooter mar ~~k~~ et

CKD 1,320 0 930 - ~~• The launch of iE125 delayed till July, which affects the sales volume.~~ Domestic Volume of • 10,329 1,951 4,581 -57.4% Electric Scooters Approximately 29% growth throughout the year.

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Operating Results in the first half of 2019
(disclosed in Consolidated Financial Statements)
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EPS in NTD, others in thousand NTD

Item	2018	2018	H1 of 2019 (A)	H1 of 2019 (A)	H1 of 2018 (B)	H1 of 2018 (B)	Growth rate (A-B)/B
Revenue	34,869,514	100.0%	17,008,674	100.0%	18,952,275	100.0%	-10.3%
Operating profit	1,898,041	5.4%	1,088,104	6.4%	1,262,664	6.7%	-13.8%
Non-operating gain or loss	2,412,672	6.9%	-603,990	-3.6%	1,289,708	6.8%	-146.8%
Profit before tax	4,310,713	12.4%	484,114	2.8%	2,552,372	13.5%	-81.0%
Profit after tax	3,892,042	11.2%	98,025	0.6%	2,211,592	11.7%	-95.6%
Earnings per share (EPS)	2.64	-	0.01	-	1.51	-	-99.3%

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Operating Results in the first half of 2019
(disclosed in Consolidated Financial Statements)
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EPS in NTD, others in thousand NTD

Growth H1 of 2019 H1 of 2018 Item 2018 rate (A) (B) (A-B)/B Revenue Taiwan's auto market declines in the first half of 2019, 34,869,514 100.0% 17,008,674 100.0% 18,952,275 100.0% -10.3% ~~that also affects CMC′s Revenue.~~ Operating 1,898,041 5.4% 1,088,104 6.4% 1,262,664 6.7% -13.8% profit ~~Due to the serious situation of whole economy, the operating profit of CMC~~ Non-operating 2,412,672 6.9% -603,990 -3.6% 6.8% -146.8% gain or loss declines compared to H1 of 2018 which is NTD 1 billion this 1,289,708 year. Profit before 4,310,713 12.4% 484,114 2.8% -81.0% tax Non-o eratin net income losses 2,552,372[13.5% ] p g (Due to recognition of investment losses) Profit after tax 3,892,042 11.2% 98,025 0.6% -95.6% 2,211,592[11.7% ]

~~CMC will continue to enhance product competitiveness, strengthen brand~~ Earnings per 2.64 - 0.01 - 1.51 - -99.3% share (EPS) recognition and carry out dealer VI( Visual Identity) remodeling program.

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Outline
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Market Overview

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CMC’s Operating Results in the first half of 2019

CMC’s Prospect in 2019

• Auto Business in Taiwan

• Auto Business in Mainland China

• Auto Business in Overseas Market

• Electric Scooter Business in Taiwan

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Auto Business in Taiwan
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• Auto market declines

• A variety of competing models are launched.

• Trade-in Tax Reduction

Colt Plus/ Grand Lancer/ Zinger Veryca Outlander Special editions Modified Modified & model model System improvement

Eclipse Cross Blue Edition Eclipse Cross 2020 model

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Eclipse Cross Black Edition Grand Lancer 2020 model

Delica Modified model

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Outlander 2020 model

2018年

Pajero Eclipse Cross 2018 model special edition & 2019 model

2019年 Zinger modified model Colt Plus 2020 model

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48 thousand units in 2018

(Including Fuso-branded vehicles) (33 thousand units from Jan. to Aug.)

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Auto Business in Mainland China
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• Passenger car market declines

• Self-owned brand great recession

• National new energy vehicle subsidies have subsided.

• Stage 5 motor vehicles have been banned in the most of areas since July.

• Competitors increase sales discounts to reduce inventory.

New Sedan A5 DX7 SUV DX3 Modified model EV400 2018年

88 thousand units in 2018

• The supplier stopped production due to financial crisis.

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DX3 SUV 2019 model

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DX5 New A0+ SUV

2019年

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DX3 EV500

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(28 thousand units from Jan. to Aug.)

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Auto Business in Mainland China
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• Passenger car market declines

• Self-owned brand great recession

• National new energy vehicle subsidies have subsided.

• Stage 5 motor vehicles have been banned in the most of areas since July.

• Competitors increase sales discounts to reduce inventory.

 The supplier stopped production due to financial crisis.

DX3 SUV 2019 model

New Sedan A5 DX7 SUV DX3 Modified model EV400 2018年

88 thousand units in 2018

DX5 New A0+ SUV 2019年

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DX3 EV500

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(28 thousand units from Jan. to Aug.)

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Auto Business in Mainland China
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• Export volume was 2,171 units in 2018

• Sell 2,412 units from Jan. to Aug. 2019, YoY 67%

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Myanmar
SKD
Egypt
CKD
Ecuador
CKD
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Target markets is the peripheral areas of countries which SKD/CKD can be developed.

• South America - Ecuador

• Southeast Asia – Myanmar

• Africa - Egypt

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Auto Business in Mainland China
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 Reduce full range of products price due to the reduction of value-added tax.

(18 thousand units from Jan. to Aug.)

29 thousand units in 2018

2018年 2019年

V-class ,Vito

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Auto Business in Mainland China
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2018年 Due to GCC national security regulations in the Middle East, the annual sales was 443 units.

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Zinger be restarted sales to Middle East.

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(555 units from Jan. to Aug)

 Veryca is the main model of driving the growth.

CMC Will Continue To Promote Business To 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 of enterprises, public authorities and schools.

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Electric Scooter Business in Taiwan
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Male: Female : 60 : 40

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36-47, accounting for 42% Flagship Luxury Standard model model model NTD NTD NTD $85,800 $79,800 $55,800 46% 38% 16% Power reverse & Cruise control QC 3.0 USB fast charger Endurance10 mins charge to 78km

(It has accumulated sales of 855 units after launched.)

Three power modesECO, Speed & Boost Built-in driving recorder Acceleration, 0-50km/h in 3.9 seconds

Built-in tire pressure detection and integration into the instrument panel

CVT (Continuously Variable Transmission) Power parking stand

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Thank You For Your Listening

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Opinion Exchange

(ticker symbol ：2204)