CMC Operating Results and Future Plan April 24, 2018 1
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. 2
Agenda Market Overview in Taiwan and Mainland China CMC s Operating Results in 2017 CMC s Performance in 2017 and Prospect in 2018
Market Overview in Taiwan and Mainland China 4
Auto Market in Taiwan As for 2017, the GDP growth rate increased to 2.84%, which was a record high since 2015, after the export in fourth quarter and public consumptions were better than expected. The total sales volume was 445,000 units, among which vehicles below 3.5 tons were 435,000 units and vehicles above 3.5 tons were 10,000 units. As for 2018, although the global economy is expected to be optimistic, there is 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 2018 is estimated to be 440,000 units, among which vehicles below 3.5 tons are 430,000 units and vehicles above 3.5 tons are 10,000 units. Unit: in ten thousand 5
Auto Market in Mainland China As for 2017, the total sales of auto market in Mainland China were 28.9 million units which increased by 3% compared with 2016. The passenger vehicles were sold in 24.7 million units while the commercial vehicles were sold in 4.2 million units. As for 2018, the overall economy is expected to grow when the Chinese government releases several positive policies along with a better global economy. The estimated total sales volume of auto market in Mainland China is 30 million units which is increased by 3.9% compared with 2017. Unit: in ten thousand 3,000.0 6
CMC s Operating Results in 2017 7
Domestic and Overseas Sales in 2017 Item 2017 2016 Growth rate(%) Domestic Volume of Vehicles 49,222 47,094 4.5% Market Share 11.1% 10.8% 2.8% Overseas Volume CBU 594 1,280-53.6% CKD(sets) 12,270 13,530-9.3% Domestic Volume of Electric Scooters 9,260 5,941 55.9% 8
Operating Results in 2017 (disclosed in unconsolidated financial statements) ITEM 2017 2016 EPS in NTD, others in thousand NTD Growth rate(%) Revenue 30,234,697 100.0% 30,577,106 100.0% -1.1% Operating Profit 2,064,434 6.8% 2,263,593 7.4% -8.8% Non-operating gain or loss 2,275,209 7.5% 1,264,507 4.1% 79.9% Profit before tax 4,339,643 14.4% 3,528,100 11.5% 23.0% Profit after tax 4,105,643 13.6% 3,189,100 10.4% 28.7% Earnings per share (EPS) 3.01-2.34-28.6% 9
Operating Results in 2017 (disclosed in consolidated financial statements) ITEM 2017 2016 EPS in NTD, others in thousand NTD Growth rate(%) Revenue 38,908,093 100.0% 40,584,424 100.0% -4.1% Operating Profit 2,434,560 6.3% 2,591,893 6.4% -6.1% Non-operating gain or loss 2,441,447 6.3% 1,493,659 3.7% 63.5% Profit before tax 4,876,007 12.5% 4,085,552 10.1% 19.3% Profit after tax 4,540,190 11.7% 3,597,372 8.9% 26.2% Earnings per share (EPS) 3.01-2.34-28.6% 10
CMC s Performance in 2017 & Prospect in 2018 11
Automotive Business in Taiwan In 2017, CMC launched brand new Grand Lancer in April. Grand Lancer had equipped with new generation chassis, 4J engine, Continuously Variable Transmission(CVT8) and Mitsubishi Dynamic Suspension System(MDSS). CMC also launched modified model of Colt Plus in June and imported a crossover SUV Eclipse Cross in December. The total CMC s sales reached 49,000 units in 2017, including Fuso-branded vehicles, due to the encouragement of the policy of replacement of old vehicles with new ones. In 2018, CMC continues launching special editions for existing vehicle models and improving our sales and after-sales systems. We also plan to launch modified models of Outlander and Veryca in fourth quarter. The total CMC s sales are estimated to be 50,000 units in 2018, including Fusobranded vehicles, while the policy of replacement of old vehicles with new ones is still in effect. Domestic Grand Lancer Colt Plus modified model Colt Plus/Grand Lancer/Zinger special editions & system improvement Veryca big modified model Outlander modified model 2017 2018 Imported Eclipse Cross Pajero 2018 model 12
Automotive Business in Mainland China In 2017, with strengthened sales of DX7 and DX3 and introducing several models with superior product competitiveness and special editions, SEM s sales were 155,000 vehicles, which were 30% higher than 2016. In 2018, in addition to the launch of DX7 modified model and DX3 2018 model to stimulate strong buying of DX7 and DX3, SEM also plans to launch A-Class Sedan A5 and DX3 electrical vehicle. SEM s sales are estimated to be 165,000 vehicles in 2018, which will be a new record high. DX7 and DX3 new model year, DX3 special sport-edition and several modified models with superior product competitiveness and special editions. A-Class SUV DX7 Modified Model A0-Class SUV DX3 2018 Model Year/EV A-Class Sedan A5 (V5 Modified Model) 2017 2018 Benefiting from strong sales of VS20, which offered several exterior color choices and promotions to customers, FBAC s total sales in 2017 were 22,000 units. In 2018, FBAC continues several promotional campaigns to achieve the sales goal of 30,000 vehicles, which are over 30% more than the sales of 2017. 13
Automotive Business in Overseas Markets As for vehicle export, due to the tightened safety regulations in GCC executed in 2017, it caused Veryca, Zinger and Lancer Fortis not able to timely meet all requirements. The export volume was 594 units in 2017. In 2018, CMC s export is conservatively estimated to be 400~500 units because of existing unfavorable factors and new model year products to be launched by the competitors in the Middle East. Veryca CBU Exports Zinger Lancer Fortis As for CKD export, CMC exported 12,000 sets in 2017, mainly affected by Freeca unable to meet European Union (Stage IV) emission standards executed in Philippines and SEM s reconciled inventory. In 2018, the export is estimated to decline to 600 sets, mainly due to discontinued production of Freeca in Philippines and Lancer in SEM. 14
Green Energy Business In 2017, CMC s sales were 9,260 units, including e-scooters, which were over 50% more than 2016. This increase was because of improved brand preference on Greentrans/e-moving through implementing cross-industry alliance, promotions to enterprises, public authorities and schools (such as green school project), setting up different specialty stores, such as flagship stores, to deeply communicate with customers and launching e-moving Shine in early November. In 2018, in addition to the promotional campaigns and activities executed in 2017, CMC also plans to provide enterprises with beneficial buying or rental options, to enhance the development of domestic specialty stores and free charging stations in schools and to introduce special editions of current e-scooters, such as e-moving Shine with new colors. CMC s e-scooter sales are estimated to be 12,000 units in 2018. Electric scooter free of license plate Electric scooter featured by economic convenience Electric scooter featured by high performance & long endurance Electric scooter featured by big body for both public and private uses Electric scooter featured as general heavy-duty commercial uses emoving POST 15
Thank you for your listening 16