AWEA 2018Q1Company Presentation

2018.05.24

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AWEA MECHANTRONIC CO.,LTD.

Company Presentation

BY Bruce Kang

General manager

2018/05/24

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AWEA Group

NEW Products

Marketing intelligence

Operating Performance

Production Base

Current market situation& Competitive strategy

Presentation Outline

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Company Profiles

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AWEA GROUP Chiayi Branch

54,700 m²

Operating Centers ─ Taiwan

Chiayi

Taipei

GOODWAY CTSP Branch / 26,600 m²

GOODWAY Headquarters / 18,600 m²

AWEA Headquarters / 26,000 m²

AWEA CTSP Branch / 26,600 m²

EXTRON Headquarters / 10,400 m²

Taichung

Hsinchu

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Wujiang

Beijing

Dongguan

Jiaxing

EXTRON (Jiaxing) / 40,756 m²

AWEA GROUP ( WUJIANG )

66,800 m²

GOODWAY GROUP ( DONGGUAN )

500 m²

Operating Centers ─ CHINA

Canada

Germany

Los Angeles

Argentina

Brazil

India

Indonesia

Israel

Japan

Malaysia

Pakistan

Singapore

South Korea

Thailand

Turkey

Vietnam

Australia New

Zealand

South Africa

Egypt

Bulgaria

Croatia

Czech Republic

Denmark

Spain

Finland

France

Hungary

Italy

Netherland

Poland

Portugal

Romania

Russia

Slovenia

Sweden

Switzerland U.

K. Ukraine

Global Sales Network

Over 60 professional dealers around the world in 43 countries

YAMA SEIKI / 20,000 m²

Daughter company 100% owned

by GOODWAY group

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Company Profiles

1986 AWEA was founded in Hsin-Chu,Taiwan.

1998 Entered the OTC market.

2000 Became the listed company in TSEC.

End of 2018/04

Capital:NT$965m (USD$32m)

Employees:795(Taiwan:575,Mainland:220)

Major products: C type and bridge type CNC machine center

Subsidiaries : Best Way Shang-Hai , Dawea Su-Zhou, Wu-jiang Su-Zhou

(all 100% holding),EXTRON(60% holding)

Certification

ISO 9001 Quality System --Germany TUV CERT

ISO 14001 Environmental System --Germany TUV CERT

CE European Safety System --UK AMTRI

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Investment

100%

100%

100%

100%

AWEA

Mechantroni

c

B-Way

(Cayman)Co.,

Ltd.

Billion-Way

(Cayman) Co.,

Ltd.

SHANGHAI

(BEST WAY)

SUZHOU

(AWEA)

100%

SUZHOU

(DAWEA)

YAMA SEIKI

USA, INC.

28.58%

YIH CHUAN MACHINERY

INC

60% .AXTRON

INT’L

INVESTMEN

T CO.,LTD

AXTRON

INT’L

INVESTMEN

T LIMITED

A X T R O N

( J i ax i ng )

100%

100% 100%

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New Products

Production Base: Hsinchu Factory

Advantage: Taiwan industry's largest processing range. Development: long-direction Travel unlimited extension, suitable for the processing of large parts.

Super large movable column machine

MCP Series LG Series 11

Production Base: Hsinchu Factory, Taichung Factory Advantage: High torque, high speed two axes with a complete five axis machine product line.

Malleable: Aerospace workpiece, shipbuilding industry, orbital industry, optical electronics industries.

5-axis Technology(一)

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MEGA5 Series

Production Base: Taichung Factory

Advantage: Complete product line, processing workpiece can reach 1,000kgs.

Development malleable: Gaosheng production efficiency, complex process parts of a machine to complete the Industrial 4.0 with machine

arm, no human production.

5-axis Technology(二)

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FCV Series FV Series FMV Series

Production Base: Taichung Factory

Advantage: The main demand specifications, exchange table.

Malleable: Car parts, gas industry production.

Horizontal Boring Mills(一)

MB-APC Series AH Series

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Production Base: Hsinchu Factory

Advantage: Large load capacity (tons), automatic attachment.

malleable: With high torque high-speed main axis and a variety of additional head, suitable for large mold racks, energy industry parts

processing.

Horizontal Boring Mills(二)

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BL Series

Bear

ing ca

pacity

of w

orktab

le

20T

10T

5T

30T

Production Base: Hsinchu Factory, Taichung Factory

Advantages: New Screw line Horse drive high-speed model, RG5 acceleration up to 0.3G; AG5 acceleration up to 0.5G

Development: High precision tooling, aerospace parts processing.

High speed 5-axis machine

RG5 Series AG5 Series 16

Additional headers-Self-development

Automatic Universal Head Automatic Universal Head

Extension Head

35 。 Head

90。 Head

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Two Axes Head

Technai Two Axes Head

AWEA Model

TIN- 6324

COM- 6324

COM- 10015

STR- 10012

NOV- 6324L

NOV- 10015

Electro Spindle Specifications

HSK -A63 HSK -A63 HSK -A100 HSK -A100 HSK -A63, long nose

HSK -A100

Max. Speed -

24000rpm

Max. Speed -

24000rpm

Max. Speed -

15000rpm

Max. Speed - 12000rpm

Max. Speed - 24000rpm

Max. Speed - 15000rpm

Nominal power - 27kW

Nominal power - 42kW

Nominal power - 50kW

Nominal power - 40kW

Nominal power - 42kW

Nominal power - 50kW

Nominal torque - 40Nm

Nominal torque - 67Nm

Nominal torque - 95Nm

Nominal torque - 248Nm

Nominal torque - 67Nm

Nominal torque - 95Nm

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Marketing intelligence

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Automatization(一)

FCV620 x 4 + EROWA 自動上下料系統

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Automatization(二)

AF650 石墨切銷 + EROWA 自動上下料系統

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Automatization(三)

FCV620 五軸機 + 機械手臂

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Automatization(四)

AV1000 + 機械手臂

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Automatization(五)

AF610 + 機械手臂

Intelligence(一)

Expand Industry 4.0

Industry Promotion Plan

operation interface, machine platform intelligent upgrade

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Intelligence(二)

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large-scale

Type: LG 6040*8

27 Recent large batch product delivery photo

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Operating Performance

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Financial results Revenue, cost, net income and EPS

Unit:NT/Thousand

2011 2012 2013 2014 2015 2016 2017 2018Q1

Revenue 3,434,628 3,670,290 2,992,668 3,913,307 3,806,785 3,636,760 4,232,259 1,080,487

Cost 2,639,695 2,804,424 2,338,565 3,059,319 3,023,515 2,881,755 3,371,476 867,074

Net income 247,352 266,208 235,978 279,778 275,440 134,977 172,620 54,043

EPS 2.78 2.89 2.56 2.96 2.97 1.42 1.82 0.56

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

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Financial results--Dividends

Year 2012 2013 2014 2015 2016 2017

stocks - - - 0.5 - -

Cash 1.5 2.0 2.2 0.5 0.7 1.25

TOTAL 1.5 2.0 2.2 1.0 0.7 1.25

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Income statement the last five quarters

Item/Period 2017Q1 2017Q2 2017Q3 2017Q4 2018Q1

Revenue 958 1,053 1,109 1,112 1,080

Gross margin 176 205 229 252 215

Gross margin rate 18% 19% 21% 23% 20%

Operation Profit 42 79 83 104 84

Operation Profit rate 4% 7% 7% 9% 7%

Net income before Tax (22) 98 101 100 80

Net income (26) 64 65 69 54

EPS (0.25) 0.67 0.69 0.72 0.56

Exchange Gain(Loss) (81) 37 15 (20) (23)

單位：Nt$ million;%

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AMERICA

2015/2016/2017/2018Q1

12%/9%/9%/12%

Marketing Share

EUROPE

2015/2016/2017/2018Q1

26%/26%/20%/21%

CHINA 2015/2016/2017/2018Q1

32%/34%/34%/31%

ASIA

2015/2016/2017/2018Q1

4%/6%/11%/7%

TAIWAN 2015/2016/2017/2018Q1

26%/25%/26%/29%

Regions Sales(一)

Regions 2014 2015 2016 2017 2018Q1

China 892 1,152 1,193 1,400 327

Taiwan 1,070 906 818 1,052 288

American 304 258 188 258 80

Italy 268 311 228 280 52

German 70 79 90 80 36

Koera 51 68 82 240 25

Unit：NT$ million

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5 Axis machine sales

unit amount unit amount unit amount unit amount unit amount

FCV Series 13 64 28 152 16 76 5 24

FMV Series 2 10 1 12

FV Series 4 17 1 3 2 6 1 3

MEGA5 Series 1 33 2 34 4 76

Total 7 60 13 64 32 201 22 158 6 27

機型2015 2016 2017 2018Q12014

unit：set/NT$ million

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Production Base

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Divide products

Hsinchu Factory Customization for extra-large machines.

Taichung Factory Advanced machines.

Chiayi (Dapu) Factory Mass production for

standardized machines.

Extron(Taichung) Product differentiation

AWEA (WUJIANG) Local production,

swift delivery and prompt service.

EXTRON (Jiaxing) Local production,

swift delivery and prompt service.

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Chiayi (Dapu)

Base: 54,718 m2

Chiayi (Dapu) Factory

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CHIAYI BRANCH LAYOUT

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CHIAYI BRANCH LAYOUT

AWEA (WUJIANG)

基地面積: 54,718平方米

AWEA (WUJIANG) Factory

車間三：約7360平方米 1F-3F（研發車間）

車間二：約13121.76平方米 1F（大跨度車間）

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Current market situation& Competitive strategy

Current market situation

The devaluation of the NT currency is expected to relieve the factors that have plagued the tool industry for many years.

Demand for automobile industry remains.

Central banks are raising the interest rate, market have signs of warming up around the world.

Strong demand for some LCD 10.5 generation and semiconductor in Korea。

Government policy for intelligent machines and indigenous naval ship building creates new requirements.

Raw materials cost raising.

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Operating risk

The lack of material condition lasts.

Labor costs rise.

Lack of power rationing risk, firm investment wait-and-see.

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Competitive strategy

Comprehensive product range.

Well established global sales network.

Accommodated production bases (Taiwan-High production efficiency：China-Big market potential, has regional tax deduction agreement and export subsidies)

Continuous new product development and RD investment.

Group resources support.

Long term production base expansion for future development requirements.

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Thank you &

Q & A