CMC — Investor Presentation 2021

Apr 14, 2021

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China Motor Corporation Investor Conference (ticker symbol：2204)

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Agenda
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14:30

China Motor Corporation Investor Conference 4 Presenter：Cheng-Chang Huang Vice President

CMC Operating Results and Future Plan

Opinion Exchange

15:10

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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 subjects to significant risks and uncertainies 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

1. Auto Market in Taiwan

2. Auto Market in China

CMC Operating Results

1. Sales Performance: 2021 Q1 operating results (YoY increases and exceeds the target)

2. Sales Performance: 2021 vehicle and electric scooter sales forecast

3. Income Performance: operating revenue increases, and operating income has

4. grown over past three years

5. Net Worth: 2020 retained earning is adequate, and available fund is also sufficient

6. Dividend: 2020 cash dividend is NTD 7 per share with 116% payout ratio

Future Strategies

1. Introducing new vehicles and Improving product lines

2. Expanding ODM & seizing market opportunities of imported vehicles

3. Grabbing opportunities for new energy development

4. Exploring overseas business

5. Promoting digital transformation

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Market Overview
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1. Auto Market in Taiwan

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2021 GDP is estimated to grow between 3.73%~4.64% because of Taiwanese entrepreneurs ’ investment, expansion of semiconductor industry, and the increase in private consumption.

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unit：10 thousand

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Market Overview
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2. Auto Market in China

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The recovery of global economy in the post-pandemic era stimulates the international trade and private consumption to grow in China. 2021 GDP target set by NPC and CPPCC is at least 6.0%

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unit：10 thousand

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CMC Operating Results
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1. Sales Performance: 2021 Q1 operating results (YoY increases and exceeds the target)

Due to CMC's outstanding sales performance in 2021 Q1, the consolidated revenue increases 12.8% comparing to the last year, and production availability improves, too. Moreover, by cost reduction and higher return on investment, CMC has better profitability than 2020.

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(OEM, Imported Vehicles included)

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unit: 100 million NTD

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CMC Operating Results
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2. Sales Performance: 2021 vehicle and electric scooter sales forecast

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(OEM, Imported Vehicles included)

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CMC Operating Results
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3. Income Performance: operating revenue increases, and operating income has grown over past three years

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CMC Operating Results
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4. Net Worth: 2020 retained earning is adequate, and the available fund is also sufficient

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YoY grows %

YoY grows %

YoY grows %

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CMC Operating Results
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5. Dividend: 2020 cash dividend is NTD 7 per share with payout ratio 116 %

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CMC Future Strategies
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1. Introducing new vehicles and Improving product lines

For the next five years, the quantity of market demand for small vehicles is estimated at a stable level between 410,000~430,000 units with 10% commercial vehicles. By responding to the popularity of active safety systems and ADAS, our development strategies are listed as follows.

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CMC Future Strategies
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2. Expanding ODM & seizing market opportunities of imported vehicles

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By introducing high-automative and smart manufacturing product lines, we can improve our production efficiency and provide highquality products to clients.

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Flexibility/small-volume, large-variety production

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Save over 100 million Visual recognition
智能製造 NTD per model Automatic loading
and unloading
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CMC Future Strategies
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2. Expanding ODM & seizing market opportunities of imported vehicles

CMC ’ s Share Ratio

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• We predict that imported auto market has room for growth.

• With outstanding ability to provide sale, repair, loan, and surrounding services, CMC‘s distributors (FMC, SYM, LWM) constitute the densest sales networks in Taiwan. As the major shareholder of those distributors, CMC is delighted to share profits with them from new business by imported vehicles.

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SYM LWM 49 sales offices 3 sales offices

FMC 62 sales offices

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CMC Future Strategies
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3. Grabbing the opportunities for new energy vehicles development

By the trend of new energy vehicles and stricter CAFE policies, lots of international automakers announce that their future plan is developing pure electric vehicles. CMC‘s development blueprint for new energy vehicles is listed as follows.

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• Small Commercial Vehicle Many CMC's subcontractors
• Electric Scooter have joined "MIH EV open
• Electric Small Bus platform", seeking to
establish working relationship
each other and creating New
Energy Era together.
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CMC Future Strategies
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4. Exploring overseas business

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• CMC sells Delica through distributors introduced by MMC in 33 countries.

• Delica has been exported to Middle East and Central America in March, 2021. CMC plans to expand the business scope to Central Asia and South America in the future.

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CMC Future Strategies
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4. Exploring overseas business

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• By taking advantage of "Electric Fujian" policy, SEM seeks to establish the working relationship with start-up companies for product and operating adjustments.

• Under the trend of M-Form in auto markets, FBAC's profits have increased over years. Besides, by continued economy growth in China, FBAC's sales and revenues are expected to increase, too.

2016~2020 FBAC Sales Performance

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29,920
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28,616
28,182
22,476
12,568
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CMC Future Strategies
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5. Promoting digital transformation

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• Construct the off-light, unmanned, and automotive auto welding line

• Use IOT equipments

• Expand AI quality inspection applications

• Introduce digital management platform for line intelligent management

• Introduce intelligent marketing system for targeting potential clients, and create consumer-

oriented experience for clients

• Improve sales process, customer experience and service for enhancing management efficiency

• Introduce collaboration

platform, improving efficiency of Internal communications

• Fortify data governance and build various data platforms

• Popularizing AI/BI development tools, enhancing data analysis ability and prompting

digital decision

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THANK YOU FOR WATCHING

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Opinion Exchange

(ticker symbol：2204)