1

www.eurocharm.com.tw

Eurocharm Holdings Co., Ltd.

~Become a global leading supplier in automotive, motorcycle, and medical equipment industries

Jerry Kao

Financial Manager

2

Founded ： 2011/7/18Chairman： Min-Hui YuGM ： Jack ChaoCapital ： NTD$639,841,530Employee： Total 3,500

Product ： Precision Metal Parts( Motorcycle、Automotive 、Medical、RV and heavy motorcycle)

Factory ： Vietnam、Taiwan

Main Customer：

TW / VN

HONDA、YAMAHA、Piaggio、SuzukiSym、Exedy、Kyoei、Nissin、KYBFord、Toyota

OthersDupont、France Bed、InvacareHONDA、Piaggio、Ducati、ApriliaPolaris

Company ProfileCompany Profile

Eurocharm Innovation Co.,

Ltd.

Organization OverviewOrganization Overview

3

45%

Eurocharm Holdings Co., Ltd.

Eurocharm Innovation Co.,

Ltd.(BVI)

Vietnam Precision Industrial No.1 Co.,

Ltd.

Hsieh Yuan Technology Co., Ltd.

Vietnam Precision Industrial Joint Stock

Company

Exedy Vietnam Co., Ltd.

8.17% 20%

100%

100% 100%

Board of DirectorsBoard of Directors

4

title  Name  Directors’

Biographies 

Chairman 

Min‐Hui

Yu, Representative of  New 

General Limited

Eurocharm

Innovation Co., Ltd., Director

Shen

Yuan Metal Co., Ltd., Chairman of the Board Song Fong Development Co., Ltd., Supervisor Taiwan Techno State Co., Ltd., Director Eurocharm

Holdings Co., Ltd., Chairman of the Board Eurocharm

Innovation Co., Ltd., Chairman of the Board Exedy

Vietnam Co., Ltd., Director Vietnam Precision Industrial No.1 Co., Ltd., Chairman of the Board New General Limited, Director Seashore Group Limited, Director30 years of metalworking experience

Director  Yi‐Chang Yu, Representative of 

Seashore Group Limited

Eurocharm Innovation Co., Ltd., Director Shen Yuan Metal Co., Ltd., Director Song Fong Development Co., Ltd., Director Eurocharm Holdings Co., Ltd., Director Eurocharm Innovation Co., Ltd., Director Vietnam Precision Industrial No.1 Co., Ltd., Director New General Limited, Director Seashore Group Limited, Director 28 years of metalworking experience

Director  YI‐Yuan Yu, Representative of 

Seashore Group Limited

Eurocharm Innovation Co., Ltd., Director Song Fong Development Co., Ltd., Director Taiwan Techno State Co., Ltd., Director Eurocharm Holdings Co., Ltd., Director Eurocharm Innovation Co., Ltd., Director Vietnam Precision Industrial No.1 Co., Ltd., Director New General Limited, Director Seashore Group Limited, Director 20 years of metalworking experience

Board of DirectorsBoard of Directors

5

title  Name  Directors’

Biographies 

Director  Jin-Yi Chang

The CID Group, Chairman of the Board Taiflex

Scientific Co., Ltd., Director Quanta Computer lnc., Supervisor Quanta Storage Inc., Supervisor

25 years of Investment Bank and VC experience

Independent Director  Wei-Min, Lin Lin Wei-Min CPA Firm, Certified Accountant

Sunplus Technology Co., Ltd., Supervisor

Independent Director  Xeieh-Ju PengEntire Technology Co., Ltd., Chief Financial Officer

Wafer Works Optronics Corp., Supervisor Entire Investment Corporation., Supervisor

Independent Director  Gen-Yu Fong Elitegroup Computer Systems Co., Ltd., Independent Director

DelSolar Co., Ltd., Independent Director High Power Opto, Inc., Independent Director

6

Vietnam FactoryVietnam Factory

1st

Fact

ory

2nd

Facto

ry

3rd

Fact

ory

4th

Fact

ory

5thFa

ctory

(Plan

)

2W p

arki

ng

7

Group HistoryGroup History

1974 Eurocharm

Taiwan was established and became a professional manufacturer of motorcycle parts

1983introduced and utilized an automated welding robot production line

1988started production of healthcare equipment parts and products

1994 started production of walkers and rollators

2001Vietnam Precision Industrial No.1 Co., Ltd. (VPIC1) was established

2002installed stamping, tube bending, robotic welding, as well as liquid and powder coating

production lines

2003installed aluminum die-casting, CNC machining, and passed ISO9001 certification

2004 installed epoxy-based e-coating production line

8

Group HistoryGroup History2006

2007

jointed venture with EXEDY Japan to establish EXEDY Vietnam, whose main products are motorcycle clutch passed ISO/TS16949 and ISO14001 certification

2009introduced hydraulic stamping production line up to 1,200-ton

2010jointed venture to establish Hsieh Yuan Technology Vietnam Co., Ltd. specialized in zinc, nickel, chromium and hard chrome plating. Passed ISO13485 certification

2011restructred

group organization to establish Eurocharm

Holdings Co., Ltd.2013 installed a new liquid painting production line

2014 installed Mitsubishi 3D laser cutting machine

(continue)

Company Organization StructureCompany Organization Structure

9

Shareholder's

Meeting

Board

of Directors Compensation

CommitteeAudit

Committee

Chairman Internal

Audit

R&D OfficeSales

Office

General Manager

Taiwan Manufacturin

g Office

Financial

&

Administratio

n

Office

VietnamManufacturin

g Office

Sales by ProductSales by Product

10

NTD$2900

Million(84%)

Motorcycle

Parts

NTD$440

Million(13%)

Medical

Parts

NTD$120

Million

(3%)

Others

2013

total

revenue：NTD$3,470

Million

75%

9%

13%

3%

2012 sales by product

68%

15%

13%

4%

2013 sales by product

11

Product StructureProduct Structure

Motorcycle iron parts

Motorcycle aluminum parts

Medical & Healthcare parts

others

12

Client 2011 2012 2013 2014.1H

1 A 42% 39% 50% 49%2 B 26% 24% 16% 11%3 C 5% 6% 5% 5%4 D 4% 5% 4% 4%5 E 7% 8% 7% 5%

Others 16% 18% 18% 26%合計 100% 100% 100% 100%

Regions 2011 2012 2013 2014.1H

1 Vietnam 89% 85% 83% 74%2 Taiwan 1% 1% 1% 1%3 others 10% 14% 16% 25%

Client StructureClient Structure

13

Competitive advantages: Close Partnership with Global Leading Brands

Competitive advantages: Close Partnership with Global Leading Brands

reduce time for product launch

exceptional quality reliability

excellent quality service

Reliable quality enables us to partner with global leading brands around the world.

Reliable quality enables us to partner with global leading brands around the world.

14

Competitive advantages: Quality Certification

Competitive advantages: Quality Certification

ISO 13485

ISO 14001

ISO 9001:2008

ISO/TS 16949:2009

14

TOYOTA 2010 HONDA 2013YAMAHA 2009 FORD 2014

15

Competitive advantages: Vertical and Horizontal Production Integration

Competitive advantages: Vertical and Horizontal Production Integration

Provide One‐Stop‐Shopping for Customers

16

Competitive advantages: Production Expansion Strength

Competitive advantages: Production Expansion Strength

Satellite System of

Central Manufacturer

Stable Employee- Employer

Relationship

Enterprise Culture

based on Team Work

Flexible Capital for Investment

Abroad

Just In Time Production 

Planning to Meet Customers’

Market Sales

Continuous Improvement in 

Production Efficiency

Target Export Business in the 

ASEAN region

Main Supplier for Major 

Motorcycle Companies

17

Improving  Production  Capacities

C

Upgrading Technical Skills

B

Developing  Profitable 

Markets

A

Team up with motorcycle companies’ market globalization to expand more into export markets.

Strengthen relationship with healthcare equipment customers to face higher demands of aging society.

Develop stronger ties with automotive customers to grow together into ASEAN markets.

Meet existing and future customers’ demand to increase capacity in die-casting, CNC machining, and painting.

Meet customers’ growth need by planning 5th factory in Vietnam.

Maintain relationship with main suppliers.

Utilize laser cutting machine to improve competitiveness in low-volume but high- priced products, and reduce tooling lead time.

Continue production atomization to raise competition barriers.

Implement robotic aluminum welding used on high-end product markets.

Future OutlookFuture Outlook

Revenue and ProfitabilityRevenue and Profitability

18

3,069 3,474 

1,787 

570  543 296 417  421 

222 

16.59%

9.44%

0.00%

3.00%

6.00%

9.00%

12.00%

15.00%

18.00%

21.00%

‐

500 

1,000 

1,500 

2,000 

2,500 

3,000 

3,500 

4,000 

2012 2013 2014.1HSales Gross Margin Pre-tax Income

Gross Margin(%) Pre-tax Income(%)

In NTD Millions, NT$,%

2011 2012 2013 2014, 1H

Net Income 202,902 380,575 318,675 337,468

Equities 1,070,015 1,309,381 1,483,364 1,464,716

ROE 19% 29% 21% 23%

EPS(NT$) 3.84 6.79 5.57 2.96

Cash Dividend(NT$) 2.69 3 3 -

Dividend Pay- Out(%) 70% 44% 54% -

Cash Flow and Dividend Payout Ratio

Cash Flow and Dividend Payout Ratio

In NTD Thousands, NT$,%

4555

45 47

020406080100120140160180

Days sales outstanding

45 5438 34

0

50

100

150

200

Average inventory turnover days

Operating Performance

Operating Performance

18.96%

29.07%

21.48%23.04%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

ROE

Eurocharm Kian Shen Turvo FINE BLANKING & TOOL

21Source: IEK(2013/05)

6,300 

6,600 6,800 

7,200 

7,600 

 5,600

 6,100

 6,600

 7,100

 7,600

 8,100

2012 2013(e) 2014(f) 2015(f) 2016(f)

Global motorcycle market scale and trend analysis

Global motorcycle market scale and trend analysis

Unit : 10,000

22

Vietnam motorcycle's FDI statisticsVietnam motorcycle's FDI statistics

Source:

Eurocharm Unit : PCS

Source: IEK(2013/05)

Global healthcare equipment market distribution forecast Global healthcare equipment market distribution forecast

5.2%

10.4%

15.8%

8.7%

6.3%7.1%

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

2012 2017 GAGR

Western EuropeMiddle East/Africa

Middle/Eastern EuropeAsia

North AmericanGlobal

In USD 100 million; %

24

Iron Parts ProcessIron Parts Process

25

Aluminum Parts ProcessAluminum Parts Process

26

Medical Parts ProcessMedical Parts Process

27BODYWORK LEFT

LEFT RIGHT HAND BODY SIDE

CHASSIS

WIN SHIELDRear internal reinforcement with IP

SPOILER

HEAD PIPE COMP

Motorcycle Parts (1)Motorcycle Parts (1)

STAY FR COVER

MAIN PIPE COMP

PLATE,RR CROSS COMP

PIPE SUB COMP PIPE R.L COMP

PIPE RR CROSS COMPPLATE COMP,PIVOT COMP-1PIPE, LOWER CROSS COMP

MOTORCYCLE FRAME

Motorcycle Parts (2)Motorcycle Parts (2)

RAIL RR GRAB

SEAT CATCH COMP

LINK ASSY ENG HANGER

SWING ARM ASSY

ARM RR BRAKE

CAM RR BRAKE

HINGE FUEL LIDMETAL FUEL FILLER

STEP ASSY, PILLION

HINGE ASSY SEAT

RETAINER,KICK SPRING

GEAR, FINE BLANKING

STAND COMP MAINSTAND SIDE

HANDLE COMP

STEERING COLUMN

Motorcycle Parts (3)Motorcycle Parts (3)

FOOT CONTROL SWING ARMStand side

HANDLE COMP

LowerTriple Clamp

UpperTriple Clamp COVER-WIRE, FRONT, N

HOUSING - SPEEDOMNT,IND

Heavy Motorcycle PartsHeavy Motorcycle Parts

31

SEAT RAIL

Bumper

UPPER ARM

LOWER ARM

HANDLE COMP

WELD-FTA

WELD-FTA

Snowmobile PartsSnowmobile Parts

WELD-SKID, FRONT, BOLTED

BRKT AXLE BRACE

PLATE-MOUNT, PIN BRKT CAST SWAY BAR

BRKT-FUSE BLOCK

BRKT-POD MOUNTINGSUPPORT-STEERING

Recreational Vehicle Parts-- ATV.SXS.. Recreational Vehicle Parts-- ATV.SXS..

33

HOOP-ROLL

TRIM-RADIO DISPLAY BEZEL

Recreational Vehicle Parts-- others

Recreational Vehicle Parts-- others

CENTER HEAD LIGHT BRACKET-IGNITION

34

HINGER SEAT ASSY

CHASSIS FRAME ASSY

SIDE STEP

SIDE STEP

FRAME FR SEAT CUSHION SIDE NO 1

FRAME SUB ASSY FR SEAT CUSHION

PANEL RRSEAT BACK

Automobile PartsAutomobile Parts

35

Medical & Healthcare PartsMedical & Healthcare Parts

PATIENT LIFTERMEDICAL BED SHOWER CHAIR

36

Eurocharm Holdings Co., Ltd.www.eurocharm.com.tw

Thanks for your kind attention~ Q&A