Enterex International Limited Stock Code 1592 2016 IR

Enterex International Limited (Stock Code： 1592) 2016 IR Report

AGENDA Company Profile • Introduction • Holding structure and worldwide locations • Main product • Competitive Advantage Operating Summary • Sales performance and analysis • Top 5 customers Strategy for 2017 • Development EU Market • ENTEREX & AVA • Cambodia plant 1

Introduction u Stock Code： Enterex-KY 1592. TW u Founder：： President and General Manager – Wen-Chung, Wong u Milestone： 1996–Established in Yangzhou city, Jiangsu, China 2014–Listed on October 16 th in Taiwan Stock Exchange u Capital： NT$1, 004, 332, 500 (100. 4 mn stocks; NT$10/per share) u Manufacture Plant： Yangzhou plant( approximately 190, 000 square meter) Cambodia plant(approximately 120, 000 square meter ) u Number of Employees： 1, 681(excluding AVA Group 92 employees) u Business：RD, manufacturing and sales of car radiator, heavy duty radiator and condenser u Ranked top 500 corporation in 2016 Common Wealth Magazine top 2, 000 corporation survey 2

Holding Structure

Worldwide Organizations European Sales Company AVA Group Design Center- Connecticut Manufacturin g-Yangzhou Headquarte r- Taiwan Distribution Center- Texas Manufacturing Sihanoukville Sales flow Transaction model Subsidiaries 4

Factory Image in Yangzhou Area of land : 194, 932. 5 Square meter 5

Factory Image in Cambodia Area of land : 120, 000 Square meter 6

Selling Center in North America Area of land: Approximately 350, 000 square feet Distribution Center - Arlington, Texas 7

China OE Production Line 8

Competitive Advantage One-Stop Production • From product design to tooling's development and production, Enterex offers one stop solution with cost reduction and vertical integration. R & D Team • Set up R&D team both in China and in US to meet the requirement from customers for developing and adjusting products they need. Completed Production lines Exclusive Distribution in NA • Build entry barrier by offering more than 2, 300 AM radiator numbers and 900 condenser numbers. • Set up NA distribution channel to establish long -term and stable relationship with customers, stands for approximately 25% market share of AM radiator market 9

Operating Summary • Sales performance and analysis • Top 5 customers 10

Consolidated P&L Unit: NT thousands 2016 Account 2015 % Amount Yo. Y % Total Revenue 5, 526, 892 100. 0% 5, 186, 008 100. 0% 6. 6% COGS 3, 603, 597 65. 2% 3, 508, 490 67. 7% 2. 7% Gross Profit 1, 923, 295 34. 8% 1, 677, 518 32. 3% 14. 7% Operating Exp. 1, 280, 523 23. 2% 1, 337, 132 25. 8% -4. 2% Other Gain/Loss (142) - (5) - N/A Operating Profit 642, 630 11. 6% 340, 381 6. 6% 88. 8% Other revenue and exp. (70, 576) -1. 3% (44, 102 ) -0. 9% 60. 0% Profit Before Tax 572, 054 10. 4% 296, 279 5. 7% 93. 1% Tax Exp. 137, 191 2. 5% 104, 992 2. 0% 30. 7% Profit After Tax 434, 863 7. 9% 191, 287 3. 7% EPS (NT$) 4. 39 1. 91 127. 3%

Sales Performance by Quarters NT$, 000 1 Q 2 Q 3 Q 2013 2014 2015 1, 107, 301 1, 225, 609 1, 316, 321 1, 011, 401 1, 346, 186 1, 268, 332 1, 125, 632 1, 132, 767 1, 343, 497 2016 1, 524, 337 1, 435, 484 1, 353, 631 4 Q 1, 064, 223 1, 094, 181 1, 257, 858 1, 213, 440 　 YTD 4, 308, 557 4, 798, 743 5, 186, 008 5, 526, 892 12

GP Margin Performance ENTEREX Sales Performance and GP Margin Trend GP margin performance is over 30% and continues to show positive trend since 2015

Sales Contribution by Region 2015 NT$, 000 Amount 2016 Amount % % 4, 406, 193 85 4, 575, 405 83 Europe 302, 280 6 368, 870 7 China 255, 611 5 406, 108 7 Others 221, 924 4 176, 509 3 5, 186, 008 100 5, 526, 892 100 America Total sales 14

Sales Contribution by Product 2016 2015 NT$, 000 Amount % % 4, 272, 871 82 4, 500, 264 81 Heavy Duty Radiator 168, 588 3 143, 225 3 Condenser 364, 065 7 471, 549 9 Others 380, 483 7 411, 854 7 5, 186, 008 100 5, 526, 892 100 Car Radiator Total Sales 15

Top 5 Customers Name 2015 2016 % of Sales 30% l. Listing in NYSE from 2001 l Top 1 auto parts chain store in NA, included Advance Auto Parts(AAP)、Auto-part International(AI)、B. W. P Distributors Inc. (BWP) and General Parts International(GPI)) l DIY and DIFM customers oriented l. Over 5, 000 stores worldwide and continue to open 65 -75 stores in 2016 20% l. Listing in NASDAQ from 1993 l. Top 3 auto parts chain store in NA, with 4, 660 stores l. DIY customers oriented Advance Auto Parts 32% O’Reilly/Ozark 21% Spectra Premium Industries Inc. (SPI) 1 -800 RADIATOR 9% 7% 13% 6% NRF - Summary 2% l. Located in Montreal Canada l Own manufacturing plants in Canada l Distributor in North America(the main customer is Auto. Zone, the top 2 auto parts retailer l. Located in California US. Chain store of cooling system l. Chain stores in US and Canada, with more than 1000 stores l. Established in 1927 and the top 2 channel brand in Europe l has manufacturing background and the main production and development base in Western Europe l Parent company is BANCO Holdings in India and listed in NSE Note: CARQUEST had merged with AAP since 2014 16

Strategy- For 2017 • Develop European market • ENTEREX & AVA • Cambodia plant 17

European AM market overview (A) European automotive aftermarket - sales by countries others 30% Spain 8% Germany 15% France 11% Italy 13% Russia 12% United Kingdom 11% European market: Germany> Italy> Russia> France> United Kingdom source : ARTC 2015 Reporting / Data : Frost & Sullivan 18

European AM market overview (B) European Customers’ preferences for choosing service Original maintenance Network platform Germany France source : ARTC 2015 Reporting / Data : Frost & Sullivan Spain Auto distribution industry Italy Retail / Standalone repairs UK Russia 19

Radiator characteristics for EU AM market Mature Market But more dispersed Main radiator in EU are braze and expansion tube Small cars are popular and radiators size are getting smaller and smaller DIY for North American market ; large-scale procurement groups for EU market car usage year increasing 20

European Radiator AM market overview (a) Radiator AM market target scale: 700 -800 million pcs Source: Polk; AVA internal estimates 21

Sales model for Radiators in European AM market (b) First level second level The third level Fourth level Source: Enterex International Business Importers and manufacturers (Nissens /NRF/AVA) Speacialist (A/C & E/C) Multinational purchasing group + LKQ National independence Purchasing Group Regional distributors Regional retailer 22

Layout and Strategy - European Market v Cooperate with international distributors and large procurement groups to meet customer needs v Establish the company's product visibility By acquiring AVA Group to accelerate the development of the European market 23

AVA Group - History af. Albert Haugg Took over Anton Vallet Aachen (Germany), founded in 1923 1957 1963 AVA foundation 19962003 AVA Benelux/AVA Italy/ AVA UK/ AVA France Established 1980 af. 1993 AVA Danmark established 2010 af. AVA Austria Established 2012 24

AVA Group - Access Profile Six warehouses and distribution centers: the Netherlands, Italy, British, France, Denmark, Austria Source: AVA website 25

AVA Group - product line Air Conditioning & Engine Cooling 26

AVA Group - Major customers v Main customers (Note 1) v Target Customers (Europe's leading distributors) Note 1: only sign the contract with the regional subsidiary 27

Top three Distributors of European Radiator AM Market Top three ranking scale 15 locations 10 locations 6 locations Manufacturing background yes No 1. Competitive 2. Advantage 3. Comparison Logistics 1. 2. 3. Intensive European warehouses Good brand image Signed sales contracts with major European distributors 1. Highly product 1. Signed sales coverage contracts with the 2. The complete European major network catalog European distributors European warehouses Automatic central warehouse Shanghai / US warehouse 1. European warehouses 1. European 2. An efficient central warehouses warehouse 2. More inefficient central warehouse Inventory management Central control Non-central control product line A/C &E/C &OE(S) A/C &E/C & Industry and vessels E/C A/C & E/C Source: Enterex International Business 28

AVA Group Advantages Long-history • Developing deeply of the market, high customer penetration • Good customer relationships and good quality service reputation Completely Product line • High product line coverage • Precise electronics catalog Brand Reputation • Ranking the top three in European radiator AM market 29

Combined synergy : ENTEREX + AVA Factory manufacturing background • Production line capacity is sufficient • Product brand quality • Understanding the big customers by the existing distributors High-quality and efficient logistics European large-scale distributor • More than 50 years of local operations • Products and Markets know-how • Precise product electronic catalog • Excellent customer service Excellence in product knowledge Competitive prices and quality service 30

ENTEREX + AVA Strategy Centralized management Vertical integration set up Picking center Increasing EU market share • Integrate new ERP system to improve operational efficiency • Strengthen the organization structure and operate central inventory management • Yangzhou centralized procurement of homemade pieces / purchased parts to strengthen bargaining power • Yangzhou and Cambodia stocking to reduce inventory costs • Enhance the sales capabilities of existing positions • Strengthen new product development to improve product coverage • Increase European warehouses to expand the business scale 31

Cambodia Plant v Time：Board meeting approved Cambodia investment plan on 03/27/2015 v Location：Cambodia Sihanoukville Special Economy Zone v Land： 120, 000 square meters v Plant : 90, 000 square meters v Product：Brazed radiator、Mechanical Bonded radiator、 Condenser、Intercooler v Current Progress 32

Cambodia Plant • Sihanoukville is a coastal city located in the southwest of Cambodia and very close to the Gulf of Thailand. Location • The only one port city in Cambodia and is 240 km to Phnom-Penh • An emerging industrial city • Political and economic conditions are more stable than other countries in South East Asia. • Labor cost is much lower than that in China Advantage • Duty free to Europe and America • There is no foreign exchange control • Enjoy a period of 5 to 8 years income tax exemption 暹羅灣 33

Cambodia Plant Future Consolidated Capacity Estimation Other companies Enterex Group Capacity China plant Product Lines Brazed radiator Capacity (pcs) Cambodia plant First Stage Capacity (pcs) Total Second Stage Capacity (pcs) Total Capacity 3, 500, 000 1, 000 4, 500, 000 1, 000, 000 25, 000 　 　 25, 000 Condenser 450, 000 250, 000 500, 000 950, 000 Intercooler 250, 000 500, 000 750, 000 Evaporator 200, 000 　 Mechanical Bonded radiator Heavy Duty Radiator 　 SPI： 800, 000 pcs KOYO: 700, 000 ~800, 000 pcs 　 TOYO： 1, 000 pcs Cryomax： 1000, 000 ~1100, 000 pcs 200, 000 34

Investment Security Statement The information provided in this presentation contains forwardlooking statements, projections, estimates or other information that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. 35

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