CMC — Investor Presentation 2019

Apr 10, 2019

CMC Operating Results and Future Plan

April 10, 2019

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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

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Market Overview in Taiwan and Mainland China
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CMC’s Operating Results in 2018
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CMC’s Performance in 2018 and Prospect in 2019
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Market Overview in Taiwan and Mainland China

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Auto Market in Taiwan

• As for 2018, the GDP growth rate is 2.63% lower than the 3.08% of 2017. The total sales volume of auto market was 435,000 units, among which vehicles below 3.5 tons were 423,000 units and vehicles above 3.5 tons were 12,000 units.

• As for 2019, in addition to the global economy is expected to be slowdown, there is other uncertainty in the continuous growth in Taiwan’s auto market due to the trading conflicts between Mainland China and U.S.A.. 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

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Auto Market in Mainland China

• As for 2018, the total sales of auto market in Mainland China were 28.08 million units which decreased by 2.8% compared with 2017. The passenger vehicles were sold in 23.7 million units while the commercial vehicles were sold in 4.4 million units.

• As for 2019, the overall economy growth is expected 6%~6.5% lower than the 6.6% of 2018. The major factor is the uncertain relationship with USA and the slowdown global economics. 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

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CMC’s Operating Results in 2018

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Domestic and Overseas Sales in 2018

Item	2018	2017	Growth rate(%)
Domestic Volume of Vehicles	48,335	49,222	-1.8%
Market Share	11.6%	11.1%	4.5%
Overseas Volume
CBU	443	594	-25.4%
CKD(sets)	1,320	12,270	-89.2%
Domestic Volume of Electric Scooters	10,329	9,260	11.5%

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Operating Results in 2018 (disclosed in unconsolidated financial statements)

EPS in NTD, others in thousand NTD

ITEM	2018	2018	2017	2017	Growth rate(%)
Revenue	26,585,972	100.0%	30,234,697	100.0%	-12.1%
Operating Profit	1,807,663	6.8%	2,064,434	6.8%	-12.4%
Non-operating gain or loss	2,088,336	7.9%	2,275,209	7.5%	-8.2%
Profit before tax	3,895,999	14.7%	4,339,643	14.4%	-10.2%
Profit after tax	3,592,999	13.5%	4,105,643	13.6%	-12.5%
Earnings per share (EPS)	2.64	-	3.01	-	-12.3%

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Operating Results in 2018 (disclosed in consolidated financial statements)

EPS in NTD, others in thousand NTD	EPS in NTD, others in thousand NTD	EPS in NTD, others in thousand NTD	EPS in NTD, others in thousand NTD	EPS in NTD, others in thousand NTD	EPS in NTD, others in thousand NTD
ITEM	2018		2017		Growth rate(%)
Revenue	34,869,514	100.0%	38,908,093	100.0%	-10.4%
Operating Profit	1,898,041	5.4%	2,434,560	6.3%	-22.0%
Non-operating gain or loss	2,412,672	6.9%	2,441,447	6.3%	-1.2%
Profit before tax	4,310,713	12.4%	4,876,007	12.5%	-11.6%
Profit after tax	3,892,042	11.2%	4,540,190	11.7%	-14.3%
Earnings per share (EPS)	2.64	-	3.01	-	-12.3%

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CMC’s Performance in 2018 & Prospect in 2019

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Automotive Business in Taiwan

• In 2018, CMC launched modified models of Outlander and Veryca in fourth quarter, in addition to special editions and system improvement for existing vehicle models. The total CMC’s sales reached to be 48,000 units, including Fuso-branded vehicles in 2018 similar to 2017, while the policy of replacement of old vehicles with new ones is still in effect.

• In 2019, CMC plan to launch big modified models of Delica in third quarter and modified model of Zinger in fourth quarter in addition to system improvement for existing vehicle models. 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.

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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
Eclipse Cross
Eclipse Cross 2019 model
Pajero 2018 model special edition
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Domestic
Imported
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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, In addition to strengthening sales of DX7 & DX3, 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.

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

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Automotive Business in Overseas Markets

 As for vehicle export, The Veryca and Zinger face the competition from new competitor model and 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). In addition to emphasizing the Middle East market, CMC will extend the promotion to other countries. The export is estimated to be 1,000 units.

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.

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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 and charging stations in schools 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 free of license plate

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

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Electric scooter featured as general heavy-duty commercial uses

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emoving POST

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

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Thank you for your listening

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