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Jan.2011

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Contents

Company IntroductionProduct DescriptionOperational StatusBusiness AdvantagesFuture Developments

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Company Introduction

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Company Profile Company Introduction

(Updated: 2010/12/31)

Established：Sep 28,1975Founder：Mr. Edward YangPresident：Mr. Edward YangGeneral Manager：Mr. Fu-Chu HsuCapital：USD 31 millionEmployees：400 peopleProducts：CNC lathes, Multi-axes Turning Centers

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Branch OfficesHeadquarter CTSP Branch Goodway

Suzhou YAMASEIKIName

Taichung Taichung Suzhou, China

Los Angeles, USA

Photo

Space 18,700㎡ 26,589 ㎡ 13,638 ㎡ 5,574 ㎡

Employees 54 people 220 people8 people + (Mainland

Chinese 105 people)

8 people +(American 5

people)

Asset Self own Self own Factory self own Tenant

(Updated: 2010/12/31)

Company Introduction

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Product Description

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Product Positioning Product Description≒25%

≒40%

Market Share≒20%

Market Share≒80%

MACHINE

TOOLS

Cutting M

achines

Lathes

Grinder

Drilling

Milling

Shaping

Electric DischargePunching

Shearing

Sawing

Horizontal CNC Lathe

CNC Turning Center

Vertical CNC Lathe

Swiss Type

Machining Center

Bridge Type

CNC Horizontal Machining Center

CNC Boring

Forming M

achines

GOODWAYTAKISAWATONGTAIVICTOR

ROUNDTOPYOU JI. . .

AWEAYCMKAFO

TONGTAIVICTOR

FFG. . .

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Product DescriptionProductsCNC Lathes Standard Function: Turning (2 axes)

Working Area

Finished Product (work piece)

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Product DescriptionProductsUpgrade Turning Center

Complex Turning

C 1

Y2 X2

Y1 X1

Z1

C 2Z2

Turret#2

Turret#1

Left Spindle

Right Spindle

High Efficiency Turning Center( Twin Spindle/ Twin Turret)

Finished Product (work piece)

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Product DescriptionApplications

Automation

Railway

Wind Power

Medical

Oil

Watches

Aerospace

Others

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Product DescriptionOur ClientsIndustry % Clients

Automotive 30%

3C/ Semiconductor/Opto-electronics

10%

Aerospace &National Defense

5%

Others 55%

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Product Milestone

Table Lathe (1983)

Multi-axes CNC Turning CenterPrice: USD16,000~20,000

Conventional Lathe (1976)Price: USD5,000~6,500

1st CNC Lathe (1982)Price:USD40,000~5,5000

Product Description

5-axes CNC Turning CenterPrice: USD340,000

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Industry Status of Machine Tools

◎Demand: Production equipments, automotive, aerospace, automation components, molds (plastic/glass/semiconductor/optoelectronic device). Large market share and low substitutability with stable growth.

◎A machine tool is a powered mechanical device, typically used to fabricate metal components of machines by machining. It has high technology which reflects a country’s industrial capacity. Example: Japan, German, USA, Italy.

◎It is protected and encouraged by the government in each country.

◎Wide range of advanced technology:Highprecision(nano technology), high effeciency, high intelligence, green design.

Product Description

Milling

Lathe

Grinding

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Machine Tools Market(1)

1. Global machine tools output value

Source：Gardner Publications, Inc.

2. Taiwan machine tools output value: USD4.8billion, 5th~6th place around the world.

3. Taiwan machine tools export value: 80%, 4th place around the world. (Japan, German, Switzerland)

4. [Goodway] output value is accounted for 12% of Taiwan CNC lathe total output which is the leading company.

Product Description

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Global Brands & Market (CNC Lathe) Product Description

2-axes Turning Center

Large Type Turning Center

Live ToolingTurning Center

Y-axisTurning Center

High EfficiencyTurning Center

5-axesTurningCenter

Japan

(MO

RI S

EIK

I)(M

AZA

K)(O

KU

MA

)

Korea

(WIA

(KIA

+HYU

ND

AI))

(DO

OS

AN

(DA

EWoo))

Switzerland/G

erman (D

MG

) GO

OD

WA

Y TaiwanMainland China

(Dalian Machine Tool)(Shenyang Machine Tool)

Price & Profit

Taiwan

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Operational Status

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Sales Report-Sales Volume & Profit(recent 5 years) Operational Status

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Sales Report-Capital & EPS(recent 5 years) Operational Status

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Sales(Consolidated ) Operational Status

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Market Share Operational Status

2008 → 2010 Global Marketing

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Share PolicyRatio：(1)Employee bonus:8%(2)Shareholder supervisor:2%(3)Stockholder: the remainder

Unit：NTD/per stock

YearContent 2006 2007 2008 2009

Cash dividend 2.5 4.12 0.5 0.5Stock dividend 1.0 0.51 0.5 0.0

Total 3.5 4.63 1.0 0.5

Operational Status

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Business Advantages

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Goodway Advantages Business Advantages

35 years of experience with full product line.Strong R&D team, leading core technology of spindles and live tooling turrets.High efficiency production equipments and management to ensure product quality.『GOODWAY』『YAMASEIKI』own brand marketingGlobal dealer networkDeveloping high end products to increase profit.Strict financial plan to strengthen business development

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Advantages(1)-Full Product Line Business Advantages

◎Compact:(2~3-axes)(8 models)

◎High End:(4~9-axes)(8 models)

◎Advanced:[Swiss Type] [Vertical][Large Type]

Main MarketMainland ChinaTurkeyAsia

EuropeNorth AmericaMainland China

EuropeTaiwanNorth America

Box way Compact Linear

Y-axis/Twin spindle Twin spindle/Twin Turret 5-axes

Swiss Vertical Large Type

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Advantages(1)-Full Product Line Business Advantages

◎Compact: High market share: TS-100, GCL-2, GLS-150 series, 2-axes models.

◎High End: High value high profit: GLS-1500YS, GS-200YS, GS-400M, GS-3000YS, GTS-200XY series.

◎Advanced: Penetrate new market: Swiss SW-16/20/32, Vertical GV-1600 series.

◎Flexibility: Optional [Live Tooling Turret] or [Y-axis] with various types of spindles and turrets.

◎Automation: Bar feeder, parts catcher, tool presetting, robot arm.

Advantages(2)-Core Technology – Live Tooling Business Advantages

3) ●[Goodway] is the 1st to successfully developits own live tooling turret.

●10 types of live tooling.●[Goodway] high end turning centers have

high market share.

1) 90% of Taiwan machine buildersuse German SAUTER or ItalyDPLOMATIC,BARUFFALDI live tooling turrets.

2) Shortcoming: Integration difficultyhigh cost, low rigidity and performance.Thus: Advanced machine builders develop their

own live tooling turret, weakening Taiwan builder’s competition

Goodway self-developed live tooling turret

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Advantages(2)-Core Technology – Spindle

◎Built-in type spindle(1) 15 years of experience. Widely used in sub-spindle and high end machines.(2)100% self developed with quality control.

◎Patent(1) Applied various patents to protect core

technology.(2)No.135278， No.161182 ， No.263173 ，…)

◎ Awards1)Grand Champion Award2)Auodesk 2005 3D design Award

Business Advantages

Built-in Spindle

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Business Advantages

Advantages(3)-Product Quality

◎High end equipment for producing key components:1.Invest in high end equipments to ensure high

precision high quality components.2.TOSHIBA 5-face machining center, MITSUI SEIKI

boring machine◎High end instruments:

ZEISS 3D measuring machine, TAYLOR HOBSONroundness machine

◎Production Record:[Process reference] [Inspection] [Maintenance] [Accountability]

◎Precision Inspection:1.HP Laser Measurement, RENISHAW circular meter,

Laser calibrator.2.Strict quality control.

[Mitsui Seiki] boring machine

[TOSHIBA] 5-face machining center

[TOSHIBA] boring machine

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Advantages(4)-Own Branding

◎Goodway has been using its own brand name since 1976.

◎Integrated Corporate Identity System in 1996◎Registered trademark in EU, Taiwan, USA,

Canada, Mainland China, Singapore, Australia, etc.◎2nd brand name『YAMASEIKI』with over 95% of

products using own brand for marketing.◎Highly recognized in Taiwan, Turkey, Israel and Italy.

Business Advantages

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Advantages(5)-Dealer Network

◎45 dealers that covers most of the market.◎Provide sales and customer service.

Business Advantages

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C1

C2

Z2

X1Y1

Z1

B

X2 Z2

Advantages(6)-Increase Operating Profit

◎With [Prompt R&D] [Production Planning] [Strong Sales] strategy, successfully developed high end high value turning centers.

◎High technology/ high end turning centers can prevent [price war] and increase[enterprise value].

◎Our price and quality is competitive in Mainland China.

Business Advantages

X Y

300

Z1

300

Z2C1

C2

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Future Developments

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1.Increase Capacity:●Taiwan: After building the [CTSP]

branch, next is the [ChiayiDapumei Intelligent Industrial Park]which will be opened in end of 2011.

●China: [Wujiang] branch will be openedin end of 2011.

2.Increase Effeciency:●B2B、ERP systems (2004), PLM system (2007) and Remote

control system.● Process rationalization ；TOC system integration.

Future Developments

Future Developments-Effective Management

Future Developments-Global Layout

3.Market Development:●Taiwan: Promote key products to big customers.●China: Wujiang branch will be the manufacturing

and technical support center focusing on compact machines to meet the growing demands after ECFA.

●Europe/USA: Focus on high end machines. Extend market share in East Europe and Russia.

●Japan: With the corporation from Toyota AISIN AI/AW, Japanese market has been growing and will set up Japan office in 2011.

●New market: Finding new customers in India and Indonesia.

Future Developments

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4.Product Strategy:(1)Increase current machine performance(Horizontal CNC lathe) to

ensure 20% annual sales growth:●Each model has standard and complex to choose from.●Increase [IA] control function to reinforce our competition.●[High precision] R&D strategy to compete with European and

Japanese products.(2)Develop products for new applications:

●Swiss type: 16/20/32 series.●Vertical turning center: standard, complex, twin spindle/ twin

turret series.●Tool magazine type 5-axes turning centers.

Future Developments-Sustainable Operation Future Developments

VerticalY-axis

Turning Center

Compact

Europe America

2-axes

Middle East

2-axes

Turning Center

Asia

2-axes

China

2-axes

Taiwan

Area

2-axes

Turning Center

Y-axisVertical

Vertical

Swiss

Swiss

150 units

SuzhouBranch420 units

Taiwan Headquarter1700 units

Y-axisTurningCenter2-axes

200 units

5-axes Swiss Vertical

Y-axis Turning Center

Compact

Turning Center

Compact

Y-axis

Vertical

Product Ratio

Future Developments-Product & Market (2011) Future Developments

IsraelTurkey

340 units

210 units

500 units

300 units

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Goodway Principle:Goodway Principle:

TruthfulnessTruthfulnessPromptnessPromptnessConsistencyConsistency

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