—Profile of CO., LTD.—

1 Excelling Today’s Dream

Hotai Motor is the distributor of the well-known auto brands such as , , HINO, and Toyota industrial equipment. Hotai Motor is always on the go to pursue the ideal. By putting the new vision, “think outside the box and challenge your dreams”, as its goal, Hotai Motor is realizing its dreams today and excelling to overcome all obstacles with courage, create irreplaceable value, and challenge the extreme, in order to surpass over the dreams!

Hotai Motor Basic Data

Establishing date: September 1947 Headquarters location: 8th to 14th Floors, 121 Songjiang Road, City.

Founder: Mr. Huang Lieh-Ho Honorable Group Chairman: Mr. Su Yann-Huei

Chairman: Mr. Huang Nan-Kuang President: Mr. Justin Su Executive Vice President: Mr. Katsuhito Ohno

Capital amount: NT$5.462 billion Sales turnover: NT$102 billion (2015) Employees: 534 people (Mar. 2016)

Product brands: TOYOTA, LEXUS, HINO Trucks, TOYOTA Industrial Equipment

NT$ 17.90 18

16.84 17

16 NT$100mn Market Share EPS after Tax NT$100mn Profit after Tax 15 Operating Revenues 14.01 1,200 40% 90 38% 13.76 14 1,100 34% 33.6% 80 13 35% 32.9% 31.5% 1,000 12.06 32% 12 32% 31% 29% 29% 70 900 30% 11

10 800 60 8.89 8.36 9 700 50 8 600 20% 6.44 6.23 7 40 6 500 6 4.6

400 30 5

4 300 10% 20 3 200 2 10 100 1 873 659 710 530 724 743 860 897 944 1,039 1,020 45 35 34 25 32 48 66 75 77 92 98 0 0% 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Total 515K 366K 327K 229K 294K 328K 378K 366K 378K 424K 421K Market vehicles vehicles vehicles vehicles vehicles vehicles vehicles vehicles vehicles vehicles vehicles

1 Excelling today’s dream - Core Management Team

Founder Huang Lieh-Ho I For a Beautiful Life and a Peaceful Society

Huang was born in Lugang Township, Zhanghua, on 10 January 1912. His father died when he was small, and he was raised by his widowed mother. Along the way, he studied and worked. At 27, he and other five partners with similar ideals and beliefs went to Kobe in Japan to start up their business, Hotai Trading Ltd., to trade cotton and sundry items. A few years later, eyeing at the development potential of the transportation industry in , Huang went to Japan again to discuss business with local industries. In 1949, Hotai signed the Taiwan sole agent agreement with Yokohama Tire and TOYOTA Motors (the first overseas distributor of TOYOTA Motors). Further in 1952, Hotai became the first overseas distributor of , Ltd.

Although Hotai became Taiwan’s sole agent for TOYOTA Motors and HINO Motors, there were ups and downs during the operation. Although there were frequent setbacks, Huang never surrendered. From the first-time application for establishing an auto-making factory in 1963 to the establishment of , it took Huang twenty-three years to make his dream come true! Finally in September 1988, Zace, the first commercial vehicle built by Kuozui Motors, was launched; and a new TOYOTA business began. From then on, the leadership of Hotai Motor in Taiwan’s auto-making industry also took form.

By aiming to strengthen Taiwan’s economy with industry, Huang established Hotai Chemical Engineering (forerunner of Weichuan Corporation) in 1953 to produce MSG and soy sauce to enrich the everyday lives of people. In believing that the dairy industry could improve the living standard and nutrition standard of citizens and thereby promote rural economic development and compensate food inadequacy, Huang established the dairy product department in the beginning of the 1960s out of his insistence on establishing a “public company”. This started the diversification of Wei-Chuan into an integrated food manufacturing company. Huang was also called the “Father of the dairy industry” in Taiwan. With the food business diversification planning of Huang, Wei-Chuan became the largest food processing and manufacturing company in Taiwan in the 1960s and 1970s.

With his business insight and intelligence, Huang returned to Taiwan to re-start his business after the end of WWII. Eyeing the petroleum need in Taiwan in the postwar reconstruction period, Huang quickly obtained the distribution contract from Exxon Mobil Corporation to ship petroleum from Shanghai and sell it in Taiwan. Also, eyeing the cane sugar need of the China market, Huang shipped sugar from Taiwan to China and sold it in China. After shipping sugar to China, Huang shipped petroleum from Shanghai to Taiwan with the same vessel to double the profit from both sides. Later on, this practice built a good financial foundation for his business.

After gaining success in business, Huang spared no pain to participate in charity. In 1974, he established the Chun Ching Social Welfare Foundation. In 1979, he established the Wei-Chuan Cultural-Educational Foundation. In 1985, he established the Chun Ching Pediatric Nutrition Research Foundation. In addition to making substantial contributions to society in terms of transportation safety, social welfare, home economics and pediatric nutrition, Huang further established the Huang Lieh-Ho Social Welfare Foundation after retirement to focus on social charity and promote his belief in “a beautiful life and a happy family” for “a peaceful society”. In addition to donating money for establishing the foundation, Huang discussed various plans and worked with relevant employees at planned intervals. His spirit of total devotion for Taiwan and feedback for society were well praised.

2 Excelling today’s dream - Core Management Team

Honorable Group Chairman Su Yann-Huei I Better than the Best.

To a person who has fallen in love with cars since he was small, it is the biggest happiness in life for him to work with cars. It is even happier for him to work with a group of people having the same enthusiasm to make continuous breakthrough and overcome the ups and downs of the business with never-ending passion, in order to lay the foundation for Hotai Motor to be the leader of Taiwan’s automobile industry.

Employees of Hotai Motor are always self-demanding for two goals allowing them to get ready for any challenges at any time. First is enthusiasm and integrity. Enthusiasm refers to the passion for work, that is, the spirit of faith to work, love for work, and loyalty to work. Integrity is the basic principle for one to behave oneself in relation to others. As upholding integrity not only the general rule for people to conduct themselves in society, participate in politics and do business, it is also the unchanged motto of Hotai Motor over the past sixty years or so. Next is to “prepare for the worst in the best moment.” This way, we can face the unpredictable future.

More than thirty years ago, as importing cars from Japan was banned by the government, Hotai Motor could only provide after-sales service, and it was a big impact to operations. However, Hotai Motor kept running the business as usual without changing its treatment for employees to overcome this period of hard time. This is because we are ready for anything at any time.

Even if there are fruitful achievements in front of us, we never give up on any possibility to make improvement. No matter what we are doing, we must ask ourselves three questions, “Have we worked with our full capacity? Are we satisfied with this? Is there any better solution?” We always believe “Better than the Best”, in which, with harder work, we can conqer every peak in front of us.

At present, the global auto market is facing a significant reform. From the development of automotive electronics and environmental cars, and even to the changes in the sales system, this sustainability between the economics and the earth has become a global trend. With this opportunity, the management and everyone at Hotai must stay alert to capture the latest movements and get ready for the changes, in order to grasp the opportunities in the changing market and to continue to lead Hotai Motor to a new peak in business.

3 Excelling today’s dream - Core Management Team

Chairman Huang Nan-Kuang I Employee Satisfaction, Customer Satisfaction As the leading brand of Taiwan’s automobile market, we understand that there are many competitors waiting for opportunities to surpass us. Facing the challenge, our employees should stay alert, insist on providing the best products and services to the customers. Moreover, we execute various customer satisfaction campaigns to fulfill the mission of Hotai Motor. Because of our dedication and hard work, LEXUS and TOYOTA are favored by numerous consumers in both luxury vehicles and domestically made vehicles markets. And the outstanding sales achievements of difficulty and adversity is praiseworthy.

As a benchmark company in Taiwan’s car market, we always follow our “heart” and think in the position of customers and employees, in order to obtain the highest satisfaction upon mutual trust and reciprocity. In the future, whether it is the cultivation of the niche affiliate business, assurance of profit rate, increase of market share, continuous launch of various innovative services and continuous cultivation of the Chinese market, we should pursue our missions more aggressively. Also, we devote our greatest effort to earn employee satisfaction and bring accomplishments beyond imagination to customers and shareholders, and dealers that have been working with us over time.

President Justin Su I Think Outside the Box and Challenge Your Dreams

We believe that the road ahead is always filled with tests and challenges. Therefore, we need to keep in the best condition at all times. So, we integrate the operations of pre-sales, after-sales and the used car business and continuously offer innovative services to fulfill the needs of different segmentations of customers. And we also focus on CS cultivation to show our "Only for You" service profession and ehthusiasm.

Facing the changing global economy and business environment, our employees and dealers listen to and count on the voice of customers and display passion in order to excel customer’s expectation for us! Also, we must stay alert to any possible challenges, continue to innovate, and reach to higher aims with greater courage that we can challenge our limits at all times, in order to make continuous breakthrough and work for a brighter and more promising future! Therefore, we set “think outside the box and challenge your dreams” as our common vision. In this way, we can march toward success and become the leader in Taiwan’s automobile market forever!

4 Excelling today’s dream - Organization Chart

Hotai Motor Organization Chart

Shareholder’s Meeting

Board of Directors Auditing Division Remuneration Committee Chairman Huang Nan-Kuang Audit Committee

President Justin Su Executive Vice President Mr. Katsuhito Ohno "

TOYOTA Commercial TOYOTA LEXUS Administration Corporate After Sales Vehicles Vehicles Operations Group Operations Group Planning Group Service Group Operations Group Operations Group

TOYOTA Customer Commercial TOYOTA Operation LEXUS Vehicles Administration Corporate Planning Service Division Vehicles Division Development Division Division Division Division

TOYOTA Service Commercial Vehicles TOYOTA Vehicles LEXUS Service Information System Financial & Accounting Marketing Division Service Division Division Division Division Division

TOYOTA Technical TOYOTA Products External Affairs Service Division Planning Division & Legal Division

TOYOTA Parts Business Division

Occupation Safety Information Security and Committee CS Committee Health Committee

5 Excelling today’s dream

Affiliates

1.TOYOTA dealers system 9.Carmax Co., Ltd. 17.GTMC related businesses 2.LEXUS dealers system 10.Horong Motors Co., Ltd. 18.FTMS related businesses 3.Chang Yuan Motor Co., Ltd. 11.Hochung Motors Co., Ltd. 19.TMHS related businesses 4.TOYOTA Material Handling Taiwan Ltd. 12.Hohang Motors Co., Ltd. 20.Hoyun International Lease Co., Ltd. 5.Kuozui Motors Co., Ltd. 13.Doroman Autoparts Corporation 21.Hoyun (Shanghai) Commercial Factoring Co., Ltd. 6.Hotai Leasing Corporation 14.Smart Design Technology Co., Ltd. 22.Carmax Autotech (Shanghai) Co., Ltd. 7.Hotai Finance Corporation 15.Hotong Motor Investment Co., Ltd. 23.Guangzhou GAC Changho Autotech Corporation 8.Ho-An Insurance Agency Co., Ltd. 16.TMCI related businesses 24.Shanghai Hede Used Vehicle Co., Ltd.

Products Brands Distribution and Sales

HINO 1.TOYOTA System 2.LEXUS System TOYOTA 3.Chang Yuan 15.Hotong LEXUS 4.TOYOTA Material Handling 16.TMCI LEXUS Manufacture 17.GTMC TOYOTA 5.Kuozui 18.FTMS TOYOTA

19.TMHS Hotai Motor 6.Hotai Leasing 20.Hoyun International Group

Overseas 21.Hoyun (Shanhai) Commercial Factoring 7.Hotai Finance Business 22.Carmax (Shanghai) 11.Hochung 8.Ho-An

23.Guangzhou GAC Changho 12.Hohang 9.Carmax 24.Shanghai Hede 13.Doroman 10.Horong Multifaceted Affiliates 14.Smart Design Technology

6 Always Walking Ahead with a Multidimensional Product Range

Hotai Motor clutches the pulse of the world and has never stopped fulfilling customers’ needs. Hotai Motor is the distributor of the well-known auto brands such as TOYOTA, LEXUS, HINO, and Toyota industrial equipment. The multiple product categories include passenger cars, luxury cars, large trucks, buses and industrial machinery vehicles. Since the year of 2002, Hotai Motor not only has been continually holding NO.1 market share through the years, but also has the most profitability in Taiwan’s automobile market.

For giving Taiwan’s next generation a cleaner and better future, TOYOTA provides a series of green vehicles to fulfill the needs of the customers in many ways. With the brand new TOYOTA Hybrid System, TOYOTA will definitely create an unlimited beauty of green generation for the customers.

Domestically manufactured cars

CAMRY HYBRID CAMRY

ALTIS

7 Always Walking Ahead with a Multidimensional Product Range

YARIS VIOS

Imported Cars

PRIUS c PRIUSα PRIUS

86 RAV4 RAV4 HYBRID

PREVIA ALPHARD LAND CRUISER PRADO

8 Always Walking Ahead with a Multidimensional Product Range

With the possession of perfect craftsmanship, the fun-to-drive capability, the grooving beauty of pioneering exterior and the spacious comfort of luxurious interior, LEXUS strickly expects itself in “The Pursuit of Perfection” with no room for compromise. Combined with these features, the unrivaled hybrid electric engine leads the way as a pioneer of green technology with a vision of moving the world forward. Advanced twin scroll turbo engine, including the world’s first cylinder head with integrated exhaust manifold technology, provides even more spectacular performance.

LS

LS 600hL LS F SPORT LS 460L

GS

GS 200t / GS 350 F SPORT

GS 450h/ 300h GS F

ES

ES 200 ES 300h

9 Always Walking Ahead with a Multidimensional Product Range

IS

IS 300h IS F SPORT IS 200t

LX NX

LX 570 NX 300h NX 200t F SPORT

RX

RX 450h RX 350 F SPORT RX 200t

CT

CT 200h CT F SPORT

RC

RC 350 F SPORT RC F RC 300h / 200t

10 Always Walking Ahead with a Multidimensional Product Range

Setting “think outside the box and challenge your dreams” as the business philosophy and “providing professional and sincere services and exceeding customer expectations” as the business value. Our mission is to provide quality services anytime, anywhere and we aim to be the most trustworthy benchmark enterprise in the large commercial vehicle industry.

Series 300 Series 500 Series 700

Large-sized Bus- Hino Middle-sized Bus- Hino Middle-sized Bus- Coaster

Upholding the belief in ‘customers first’, Taiwan TOYOTA Industrial Equipment provides Taiwanese industries with innovative, safe and quality products and services excelling customers’ expectations. The scope of business and contents: distributoring TOYOTA industrial equipment, importing (exporting), selling, leasing and repairing TOYOTA vehicles and parts. Bulldozers Product contents: Forklifts, bulldozers, and mini tractors Internal combustion series: Diesel and petroleum seated forklifts Electric series: Seated 3-wheel/4-wheel type, stand-in lift trucks, side-seat forklifts Bulldozers: 430-900 kg Mini-tractors: Pulling up to 26,000-70,000kg Logistics consultation services

Forklifts

Mini-tractors

11 Always Walking Ahead with a Multidimensional Product Range

As a partner of Hotai Motor, Kuozui Motors maintains a close capital relationship with Hotai Motor, and has created a perfect model for division of labor in production and marketing. Due to the seamless cooperation between Kuozui Motors and Hotai Motor, Kuozui Motors possesses high-standard production technologies and capacities with expectable long-term profit and development among the global production groups of TOYOTA. In the future, Kuozui Motors will make continuous improvement in Taiwan’s auto-making technologies and uphold the “customer first” belief to continuously provide quality products expected by Taiwanese consumers through concerted efforts with Hotai Motor and contractors.

Framework Diagram

TOYOTA HINO

Technical Cooperation

Parts/Cars/Trucks Middle East Area, Technical Support Australia, etc... Taiwans’ Parts Suppliers Kuozui Motors Export / Import Parts Supply Parts Japan, Philippines, Thailand,Indonesia, etc...

Agency Car Sales

Hotai Motor Chang Yuan Motor

Kuozui Motors Basic Data:

Establishing 1984 / 4 / 9 Kuozui Motors Share-holding Proportion Date

Capital NT$3.46 billion

Chung-Li Plant : 120,000 (cars /year ) Kuan-Yin Plant : 80,000 (cars /year ) HINO 5% 1984 2,000 2,000 1990 2,900 29,600 32,500 TOYOTA 65% 1995 3,000 65,500 68,500 HOTAI 30% Production 2000 1,800 81,500 83,300 Capacity 2005 2,800 139,700 142,500 2011 5,000(14) 50,630 101,370 157,100 2012 7,000(23) 66,950 100,050 174,000 2013 4,300(6) 81,300 88,100 173,700 2014 5,800(27) 92,700 105,800 204,300 Total Production: 2,670,400 2015 5,700(19) 82,500 99,900 188,100 Trucks:108,200 Cars : 2,562,200 (Export : 422,000) Unit ︰Cars Trucks ( )Trucks Export Cars Export

Major Cars : CAMRY, CAMRY HYBRID, COROLLA ALTIS, VIOS, YARIS products Trucks : HINO small / medium / large truck, bus

12 Always Walking Ahead

Double High-Standard Operations, Industry-Recognized Production Capacity

■ High-Quality Production Technology . 01. Production Technology Center

02. Kuozui Motors won TOYOTA Quality Activity Achievement Award FY2011 in Warranty Reduction by TMAP-EM for its application of fees and cases reduction by at least 10% a year. 03. Production quality is approved by TMC over the years.

■ High-standard R&D capacity RD institution of KRDC Kuozui Motors R&D Center (KRDC)

Computer simulation & Styling analysis

Vehicle and Product Planning.

Design Testing

Export Sales of Kuozui Motors ■ Stepping on the accelerator for vehicle exports, reaching new highs for output and export of Kuozui Motors After creating a historical record of a single month output at 14,000 vehicles of a single plant in Taiwan in May 2005, Kuozui Motors, the manufacturer of TOYOTA vehicles in Taiwan, has been making continuous improvement in factory capability and manufacturing technologies and aggressively cultivates overseas markets with great results. With the push of the significant growth in export sales to the nine GCC (Gulf Cooperation Council) countries, Kuozui Motors broke the record again by creating a new single month output at 17,678 vehicles in December 2013. With the total of 200,000 cars manufactured in 2014, Kuozi has reached a new record of manufacturing capacity in Taiwan Auto Industry.

’09 7,080 Export Sales of Kuozui Motors over the Years With the advantage of the multifaceted experience in the Vehicles manufacturing, Kuozui Motors has pushed the steady growth ’10 30,500Vehicles of the overall auto industry. In the future, following the gradual ’11 50,640Vehicles recovery of the domestic auto market, export sales will ’12 66,980Vehicles continue to grow. It is estimated that the prosperity of Kuozui ’13 81,306Vehicles Motors and the upstream and downstream suppliers on the ’14 92,724Vehicles supplier chain of the entire auto industry is expected. This is ’15 82,515 also an important support for the profit of Hotai Motor. Vehicles

TOYOTA Altis waiting for loading at Taipei Port: Kuozui Motors broke the vehicle export record of all domestic automakers in 2014 with a total export of 92,724 vehicles.

13 Service is Always One Step Ahead

The human-center spirit of Hotai Motor is the most important core value. From pre-sales marketing to after-sales maintenance service, we make service more than just a job, and always create touching moments and satisfaction from the angle of customers at all times.

Multifaceted After-Sales Service System In order to become “the most trustworthy benchmark automobile group”, Hotai Motor realizes the TOYOTA Way (the operational value of global TOYOTA business) in promoting after-sales services. The two major spiritual pillars of the TOYOTA Way are “Continuous Improvement” and “Respect for People.” We challenge targets against the status quo at anytime, propose intelligence and methods and realize them. We take every action to promote human progress. We treat employees well, listen to the voice of customers, and contribute to communities and society as a whole.

Vehicle sales

customer maintenance service service

Multifaceted Service

customer information concerns integration system

logistics system

14 Service is Always One Step Ahead

■ Services across Taiwan through meticulous and complete channels

109 sales showrooms and 121 service workshops Kuotu Motor

17 Sales Showrooms Binjiang /Xinzhuang /Yangming /Zhonghe Sanchong /Tianmu /Tucheng /Linkou /Shulin /Yingge / Tau Miau Motor Luzhou /Northern Yonghe /Danshui /Southern Songjiang Danfeng /Banqiao/ Northern Banqiao 17 Sales Showrooms Zhongli /Xinzhu /Taoyuan /Toufen /Zhubei 15 Service Workshops Zhudong /Southern Zhongli /Yuanli /Bade /Miaoli /Yangmei Binjiang /Xinzhuang /Yangming /Zhonghe /Sanchong Longtan /Guishan /Southern Xinzhu /Nankan /Dagang /Taoying Tucheng /Linkou /Shulin /Yingge /Luzhou /Northern Yonghe Danshui /Northern Puqian /Danfeng /Banqiao 19 Service Workshops Xinzhu /Taoyuan /Zhongli /Toufen /Zhubei /Zhudong /Yuanli Bade /Southern Miaoli /Yangmei /Longtan /Pingzhen /Gueishan Southern Xinzhu /Nankan /Dagang /Taoying /Taoda /Dayuan Taipei Motor 11 Sales Showrooms Central Motor Nangang /Shuangyuan /Xindian 24 Sales Showrooms Daan /Neihu /Badu /Wenshan Xizhi /Ankeng /Dunhua /Guangfu Southern Taichung /Central Taichung /Tanzi /Yuanlin /Chaotun Zhanghua /Dajia /Zhushan /Fengyuan /Xihu /Eastern Taichung 17 Service Workshops Lugang /Wenya /Puli /Dali /Northern Zhanghua /Nantou /Shalu Nangang /Wanda /Xindian /Songshan Beidou /Donghai /Daya /Northern Fengyuan /Taiping /Wuquan Daan /Neihu /Badu /Wenshan /Xizhi 26 Service Workshops Ankeng /Zhongzheng /Shenkeng / Dawulung /Fuyuan /Donghu /Xinyi /Guangfu Southern Taichung /Tanzi /Yuanlin /Chaotun /Zhanghua Dajia /Northern Taichung /Zhushan /Fengyuan /Xihu Eastern Taichung /Lugang /Wenya /Puli /Dali Northern Zhanghua /Nantou /Shalu /Beidou /Donghai Erlin /Daya /Northern Fengyuan /Taiping /Wuquan Langyang Motor Central Taichung 2 Sales Showrooms Luodong /Yilan

2 Service Workshops Luodong /Yilan

Eastern Motor Nandu Motor 2 Sales Showrooms 19 Sales Showrooms Hualian /Taidong Northern Tainan /Minxiong / Dounan Eastern Tainan /Xinying /Western Tainan 3 Service Workshops Beigang /Jiali /Jiayi /Douliu /Guiren /Yongda Hualian /Taidong /Yuli Puzi /Guantian /Lunbei / Shanhua Southern Jiayi /Huwei /Annan

19 Service Workshops Northern Tainan /Minxiong /Eastern Tainan Xinying /Western Tainan /Beigang /Jiali /Jiayi Douliu /Guiren /Yongda /Puzi /Guantian /Lunbei Shanhua /Southern Jiayi /Huwei /Annan

Kaudu Motor

17 Sales Showrooms 20 Service Workshops Northern Kaohsiung /Gangshan /Pingdong Northern Kaohsiung /Gangshan /Pingdong Qishan /Chaozhou /Xiaogang /Jiuru /Fengshan Qishan /Chaozhou /Xiaogang /Jiuru /Fengshan Hunei /Northern Pingdong /Qingnian /Nanzi Hunei /Northern Pingdong /Qingnian /Nanzi Ruifeng /Youchang /Donggang /Fenglin /Sando Ruifeng /Youchang /Linluo /Donggang /Ligang Penghu (contract dealer) /Jinmen (contract dealer) Fenglin /Hengchun /Sando

15 Service is Always One Step Ahead

25 Sales showrooms and 25 Service workshops

Kuotu Motor

4 Sales showrooms Songjiang / Zhonghe / Xinzhuang / Yangming

4 Service Workshops Binjiang / Xinzhuang / Zhonghe / Yangming

Tau Miau Motor Taipei Motor 4 Sales showrooms Taoyuan / Zhongli / Hsinchu / Miaoli 5 Sales showrooms Ren-ai / Nangang / Dunnan / Neihu / Xindian 4 Service Workshops Taoyuan / Zhongli / Hsinchu / Miaoli 3 Service Workshops Nangang / Xindian / Neihu

Central Motor

4 Sales showrooms Pei Taichung / Taichung Nan Taichung / Changhua

4 Service Workshops Pei Taichung / Taichung Langyang Motor Nan Taichung / Changhua 1 Sales showroom Luodong

1 Service Workshop Luodong Nandu Motor

3 Sales showrooms Tainan / Chiayi / Douliu Eastern Motor 3 Service Workshops Tainan / Chiayi / Douliu 2 Sales showroom Hualien / Taitung

2 Service Workshops Hualien / Taitung

Kaudu Motor

2 Sales showrooms Minzu / Jianguo

4 Service Workshops Jiuru / Pingtung / Minzu /Jianguo

16 Service is Always One Step Ahead

■ Services across Taiwan through meticulous and complete channels

17 Sales Showrooms and 17 Service Workshops

Chang Yuan Motor Tucheng Sales Showroom / Service Workshop

Taoyuan Sales Showroom / Service Workshop Xinzhuang Sales Showroom / Service Workshop

Xinzhu Sales Showroom / Service Workshop Taipei Sales Showroom / Service Workshop

Miaoli Sales Showroom / Service Workshop

Taichung Sales Showroom / Service Workshop Langyang Motor Wujie Sales Showroom / Service Workshop Yuanlin Sales Showroom / Service Workshop

Nantou Sales Showroom / Service Workshop Eastern Motor Meilun Sales Showroom / Daunan Sales Showroom / Service Workshop Service Workshop

Jiayi Sales Showroom / Service Workshop

Tainan Sales Showroom / Service Workshop

Kaohsiung Sales Showroom / Service Workshop

Xiaogang Sales Showroom / Service Workshop

Pingtung Sales Showroom / Service Workshop

17 Service is Always One Step Ahead

■ Services across Taiwan through meticulous and complete channels

8 Sales Showrooms and 8 Service Workshops

Head Office Taipei Sales Showroom / Service Workshop Taoyuan Sales Showroom / Service Workshop

Taichung Sales Showroom / Service Workshop Langyang Motor

Eastern Motor

Daunan Sales Showroom / Service Workshop

Tainan Sales Showroom/Service Workshop

Kaohsiung Sales Showroom / Service Workshop

18 17 Service is Always One Step Ahead

■ Introducing the latest information technology to provide high-efficient integrated services

Service information integration 01 by sea by air for real-time customer’s record Domestic Supplier through nation-wide connection. Overseas Kuozui Motors Co., Ltd Suppliers 02 Web Electric Parts Catalog Yang-Mei Logistics Center (WEPC) to ensure real-time update of TOYOTA stock information of the service parts. TMAP HINO Cooperate with professional 3rd party 03 Part logistics information logistics provider to deliver service parts to system and supplier’s direct every workshop in Taiwan. delivery mechanism for real-time Taichung Sub-Depot dispatch to fulfill customer’s 2 times delivers per day demands. 04 TOYOTA Club On Line (TOYOTA website network service function) Synergy Deport 05 Using iPad for BP Insurance Estimation can lessen costomers' Renwu Sub-Depot waiting period. Delivery truck arrives at a workshop

Workshops

Yang-Mei Logistics Center provides services to By using centralized warehouse,Yang-Mei 172 workshops in Taiwan. Logistics Center fufills demand of service parts across Taiwan.

The nation-wide parts logistics network achieves parts supply chain management based on the spirit and practice of the TOYOTA Production System (TPS) and plays the role of the group’s supply chain hub to provide professional logistics services to the Taiwan TOYOTA Group.

■ From customer concern to excelling customer expectations The customer is the most important brand asset. In order to maintain customer relationships, we not only provide car owners with tangible professional services, but we are also concerned with improving the quality of life for our customers. Thus we provide various auto-related activities in order to enhance customer satisfaction and loyalty. For example, over the years we have organized or sponsored various cultural, leisure and wealth management activities to repay the support of our clients. What's more, we have also unveiled the app for iPhone and Android, which provides our customers with a variety of services and information that enable them to enjoy their vehicles in a safer and more convenient way. We also remind owners of the importance of periodic maintenance through different channels (DM, text, phone, e-mail and app) to ensure that their cars are in the best condition.

Leading the way in the auto industry, TOYOTA and LEXUS have introduced the all-in-one “City Driver” and "LEXUS plus" app for iPhone and Android to satisfy all of your driving needs.

■ “Only for YOU,” Customers first To meet the idea of “customer first,” HOTAI implements customer satisfaction campaign named “Only for YOU” in the entire organization. By attending education courses of “Only for YOU,” staffs could enhance the service capability and provide considerate service in every detail. As a result, Toyota frontline members can deliver nice SOP and heart-touching experience with smile and confidence to the customers at all touch points with their Toyota CS DNA which is composed of 5 key abilities, namely “Competency, Courtesy, Coping with, Communication, and Carrying out the promises.”

Total CS Culture Personnel of the Customer Assistance Center of Hotai Motor is on duty on weekdays and holidays to answer the phone calls from customers and listen to their problems. Top management and all employees of Hotai Motor work in turn at the Customer Assistance Center to listen to the calls from customers, especially customer’s opinions, in order to make aggressive improvement and enhance customer satisfaction. Each year, all staff takes part in the CS training program, immersing themselves in the newest service concepts, learning about the successes of businesses in other industries, and becoming inspired to provide even better service to customers.

19 Building a Huge and Healthy Business from a Point to a Plane

Hotai Motor understands that a car is not just a transportation but a dream or a family coming true; Hotai thus spares no pain to build a huge and healthy business for life.

Expansion of the scale of car value chain and achievements

In recent years, Hotai Motor has been changing its operations from “product-selling-oriented” into “customer-service oriented”, and its role from a product distributor into a provider of value-added services, in order to quickly fulfill the demands of customers and provide them with service for life. Hotai Motor also aggressively expands its business value chain to used car business, car rental business, car loan business and car accessory business, in order to mature the framework of the automobile group and thereby to become one of the forces leading the national economic development.

Hotai Finance TOYOTA used cars Corporation

Ho-An Insurance LEXUS used cars Hotai Motor Agency

Hotai Leasing Carmax Co., Ltd. Corporation

20 Building a Huge and Healthy Business from a Point to a Plane

TOYOTA Certified used cars I The best partners you can count on. In order to provide car owners with more complete service, Hotai Motor assists dealers in running Toyota-certified used car showrooms to provide more convenient quotation and trade-in services for car owners wishing to change cars. In addition, we also provide certified vehicles that have passed stringent inspection by OEM technicians. Whether you are trading in or looking for something different, Toyota-certified used car dealers are always a reliable choice.

Business Philosophy To provide customers trade-in service when buying a new TOYOTA car; to run the used car business with a professional, open and transparent attitude; to develop the most trustworthy used car brand; and to become the benchmark enterprise in the used car business.

Business Contents Toyota-Certified Used Cars purchases all brands of used cars through a transparent and professional valuation mechanism. In addition, systematic management allows us to monitor the trade-in process to protect the rights of customers and to ensure the safety of the transaction process. In order to ensure that every vehicle conforms to the same standards of the parent company in Japan, we only select quality used cars that are free from critical accidents, flooding, fabricated registration and mileage adjustments, and every used car must complete an uncompromising 160-item inspection. Moreover, in addition to the 2-year or 30,000 km service warranty, our “Satisfaction Guarantee or Send It Back” policy, the first in the country, will give you peace of mind both in making the purchase and on the road.

TOYOTA Certified Used Car Sales Locations

Kuotu Taipei Hohang Hochung Nandu Horong Lanyang Eastern Motor Motor Motor Motor Motor Motor Motor Motor Songjiang Nangang Taoyuan Taichung Jiayi Mingchen Luodong Hualian

Zhonghe Dawulung Zhubei Zhanghua Tainan Chenchin

Danfeng Ankeng Pingzhen Fengyuan Douliu Minzu

Chunri Beitun Pingtung

Caotun

abc car Founded in December, 2014, All Best Choice operates under the business philosophy of ensuring trust and security. We provide the highest number of high quality used/pre-owned cars from all brands, and work with certified pre-owned car sites to provide comprehensive after-sales services. In addition, we utilize the concept of disruptive innovation to target issues at the core of used car transactions, working tirelessly ahead of competitors to continually implement innovative services which optimize transaction flow. This includes our innovative price search and mileage search services that cater directly to consumer demands, making us your best choice when it comes to buying and selling used/pre-owned cars.

Website Services 【Used/Pre-Owned Car Transactions】 1. Over 10,000 high quality vehicles: Largest selection of Certified Pre-Owned car in the industry including European, Japanese and American brands are all available on one site. Provide a convenient, secure car purchase site. 2. Quick sale service: List your car for sale in just 90 seconds, no registration or login required.

【Used/Pre-Owned Car Information Transparency】 1. Price transparency: Transaction information from the used/pre-owned car market is compiled to establish a fair price search system (which includes purchase prices, actual transaction prices and online asking price), catering to consumer demand. More than 1 million searches have been made. 2. Mileage transparency: Exclusive access to original factory mileage records, alleviating concerns regarding unscrupulous dealers altering odometer mileage.

21 Building a Huge and Healthy Business from a Point to a Plane

Hotai Leasing Corporation

Established in 1999, Hotai Leasing Corporation builds a complete car rental service system through continuous efforts out of its cherishment on customer satisfaction. Today, Hotai Leasing has become the largest car rental company with the fullest services in Taiwan. Also, Hotai Leasing has established Hoyun International Lease Co., Ltd. in China to provide one-stop car rental services in Taiwan, Hong Kong and China.

Business Philosophy Customer First: Out of the belief in “human centered and customer first”, Hotai Leasing continuously improves its service process to provide innovative products and professional services that meet the expectations of customers.

Professional Service: Hotai Leasing is committed to building a complete support system, including a dedicated call center, to provide customers with multifaceted professional car-related financial consultation service.

Business Contents Long-term car rental service for enterprises: Hotai Leasing has a professional fleet management and uninterrupted car rental services to tailor the best car tax saving plan for enterprises. Short-term car rental for business and travel: Hotai Leasing has the most ubiquitous car rental network in Taiwan and provides service warranty—renting from one place and returning at another place, vehicle maintenance by original manufacturers, on-line booking, iRent 24 hours self-service rental booth and commercial vehicle rental service to ensure the best and safest car rental for business and travel purposes. Professional pick-up and drop-off service: Hotai Leasing provides business and travelling Charter service, airport pick-up and drop-off and limousine services with our prestige LEXUS Fleet. Used car auction: Hotai Leasing pioneers Taiwan’s first wireless auction system, professional vehicle inspection team and on-line auction participation system to provide members with a more convenient and more professional used car auction platform.

Hotai Leasing Organization Chart

Chairman: Mr. Tien Tien-Ming

Hoyun International Lease

Car Rental Car Leasing Used Car Customer Planning Finance and HAA Dept. Dept. Marketing Service Dept. Management Dept. Dept. Dept.

22 Building a Huge and Healthy Business from a Point to a Plane

Hotai Finance Corporation

Hotai Finance Corporation was established in 1999, with Hotai Motor and TOYOTA Financial Service Corporation as its two major shareholders. Upholding the operation philosophy of “customer first with expert focus”, Hotai Finance provides multidimensional, innovative and quality car mortgage and professional finance management services. Also, Hotai Finance Cooperation has established Hoyun International Lease Co., Ltd. in China to provide machinery and equipment financing services for cross-strait enterprises.

Business Philosophy Customer First: Based on the belief in “human centered and customer first”, we make continuous improvement of our service process and continuously provide customers with various innovative products and professional services meeting their demands. Expertise Focus: We are committed to building a complete support system by establishing a dedicated call center to provide customers with multifaceted professional car-related financial consultation services.

Business Contents Car installment payment service: We offer installment payment service for new and used cars of any brands with quick review and approval and multiple payment modes to meet different demands of customers. Equipment installment payment service for SMEs: To help SMEs to have adequate capital for business operations, we introduce different installment payment plans for office equipment. Also, Hotai Finance Corporation has contracts with different equipment suppliers to expand its scope of services and provide the most efficient integrated service. Consumer installment payment service: We provide installment payment service for heavy motorcycles and總經理 other installment 田 天 明payment plans for general motorcycles, home appliances and books.

HFC Organization Chart Chairman: Mr. Tien Tien-Ming

Hoyun International Lease

Sales Division Management Division

Facility Loan Car Loan Field Support Credit Assessment Finance Planning and Dept. Dept. Dept. Dept. Dept. Administration Dept.

23 Building a Huge and Healthy Business from a Point to a Plane

Ho-An Insurance Agency

Ho-An Insurance Agency Co., Ltd. provides car insurance planning service and other Non-life insurance service. Ho-An has achieved ISO 9001 certification. Thus, Ho-An earns acclaim from car owners.

Business Philosophy Integrity: Upholding integrity, we perform our commitment and win trust from customers. Expertise: We make the best risk planning for customers with our professionalism and provide the optimal insurance products and services. Innovation: We fulfill the protection needs of customers and create enterprise performance through continuous innovation and development of products and services. Service: We strive for the biggest insurance benefits for customers with great services exceeding their expectations.

Business Contents Ho-An Insurance Agency is focused on offering Car Insurance as its main service. In addition, we provide services for Cargo Insurance, Fire insurance, Engineering Insurance, Golf Liability Insurance, Fidelity Bond Insurance and Personal Accident Insurance, etc. We carefully plan the details regarding coverage and help our client for claim service. At present, we have signed agency contracts with 12 Insurance companies.

Ho-An Insurance Agency Organization Chart Shareholder’s Meeting Supervisor of the Board Board of Directors

Chairman: Mr. Su I-Chung

President: Mr. Bair Shyi-Tarn

Information Safety Committee Management Planning Committee Automobile Commercial Legal Compliance Administration Signee Auditor Division Insurance Insurance Committee Division Division Division

24 Building a Huge and Healthy Business from a Point to a Plane

Carmax

As the largest professional car accessory supplier in Taiwan, Carmax Co., Ltd. provides owners of TOYOTA vehicles with more comfortable and more convenient car accessories through the sales and services of TOYOTA dealers across Taiwan. Products from Carmax include multimedia players, GPS navigators, HUD (head-up display), CAN Bus and LED electronics, outer parts and inner parts. Some Carmax products have been certified by TOYOTA Japan and are exported to TOYOTA distributors in Japan, China, Southeast Asia and the Middle East. From now on, we will launch more comprehensive products with innovative and unique concepts to meet the multifaceted demands of TOYOTA car owners and thereby to become the leading car accessory supplier in Asia Pacific.

Business Philosophy To provide innovative products and extra-value services. To meet the multidimensional demands of customers in different countries.

Business Contents Designing, developing, selling, and providing after-sales service of TOYOTA genuine accessories and Carmax brand products. Developing, selling, and providing after-sales service parts for service workshops. Providing PDI and PIO service for Hotai and Kuozui.

Administration Division Carmax Organization Chart

Chairman Domestic Marketing Division Justin Su Technical Division

President Products Division Hunter Lai Overseas Marketing Division

Service Marketing Division

Carmax Guangzhou GAC Smart Design PIO Business Division ( Shanghai ) Changho Technology China Business Division

Technology Research & Development Center

25 Embracing Possibilities without Restrictions

Hotai always moves agilely, stably, and accurately. As a result, we maintain the best mobility with innovative thoughts. Wherever Hotai Motor sets its sights, the target will be included in the boundless dreamed blueprint of Hotai Motor. We have the courage to challenge, and to make our dreams come true.

Chongqing Heling Lexus

Shanghai Heling Lexus Framework of Investments of Hotai Motor in China Nanchang Heling Lexus

Tangshan Heling Lexus TMCI related businesses Tianjin Heling Lexus

TOYOTA Motor (China) Investment Co., Ltd. Linyi Heling Lexus CT200h、IS200t、ES300h/200/250、 GS300h/250/450h/350、LS460L/600hL、 Taizhou Kaudu Lexus NX200/200t/300h、GX400、RX200t/450h、 LX570、RC200t Beijing Heling Lexus

Shanghai He-zhan Shanghai Hede Used Vehicle GTMC related businesses Hotong Motor Tianjin He-zhan Investment Co., Ltd. Guanzhou TOYOTA Motor Co., Ltd. Chongqing Yurun CAMRY、CAMRY HEV、HIGHLANDER、LEVIN、 Chairman: Mr. Huang Nan-Kuang LEVIN HEV、YARIS-L、EZ、ALPHARD、VENZA、 President: Mr. Leon Su FJ、ZELAS Shanghai Hoyu

Zaozhuang Hoyu FTMS related businesses Tianjin Hoyu

FAW TOYOTA Motor Sales Co., Ltd. 棗庄和裕Beijing Hoyu CROWN、REIZ、COROLLA、COROLLA HEV、VIOS RAV4、LAND CRUISER200、PRADO、COASTER 重慶渝都Linyi Hoyu TOYOTA86、PREVIA、HIACE Chongqing Yudu

TOYOTA Material Handling Shanghai Ho-Qian Logistics Jinzhong Central Taiwan Ltd. Equipment Trading Co., Ltd.

Shanghai Suzhou Kunshan Nanjing Hangzhou Ningpo Jiaxing Wuxi Hotai Finance /Hotai Leasing Hoyun International Minxing Guangzhou Shenzun Dongguan Xiamen Chongqing Chengdu Wuhan Corporation Lease Co., Ltd. Foshan Changsha Tianjin Fuzhou Jinan Qingdao Huizhou Zhengzhou

Carmax Autotech Hefei

( Shanghai ) Co., Ltd. HOYUN (Shanghai) Commercial Factoring Carmax Co., Ltd. Guangzhou GAC Changho Autotech Corporation.

Hotai's investment business in China Hotai's joint ventures in China TOYOTA Motor Corporation's business in China Hotai Finance / Hotai Leasing Corporation's investment business in China Carmax's joint ventures in China Carmax's investment business in China Shanghai Heling/ Shanghai He-zhan/ Shanghai Hoyu's joint venture in China TOYOTA Material Handling Taiwan investment business in China 26 Embracing Possibilities without Restrictions

China Locations of Hotai Motor Group

Shanghai is the base of the overseas expansion of Hotai Motor. By first locking the hub of the Chinese market with a population of 1.4 billion people, Hotai Motor links up major Chinese cities from Shanghai with a radiating network. Also, in combining the operation of high-standard software and hardware and the highly qualified talents, Hotai Motor expands its territory to the overseas market in China.

Beijing Tianjin Hebei Shanxi Shandong Henan Jiangsu Hubei Shanghai Sichuan Hunan Chongqing Zhejiang Jiangxi Fujian

Guangdong

Hotong Motor Investment Co., Ltd.: Carmax Autotech (Shanghai) Co., Ltd. GTMC related businesses: Hotai Motor Shanghai Headquarters Shanghai He-zhan Guangzhou GAC Changho Autotech Corporation. Tianjin He-zhan (Joint Ventures) Shanghai Ho-Qian Logistics Equipment Chongqing Yurun Trading Co., Ltd. Hoyun International Lease Co., Ltd.: FTMS related businesses: Shanghai Hoyun Headquarters Xiamen Hoyun Branch TMCI related businesses: Shanghai Hoyu Suzhou Hoyun Branch Chongqing Hoyun Branch Chongqing Heling LEXUS Zaozhuang Hoyu Kunshan Hoyun Branch Foshan Hoyun Branch Shanghai Heling LEXUS Tianjin Hoyu Nanjing Hoyun Branch Chengdu Hoyun Branch Nanchang Heling LEXUS Beijing Hoyu Hangzhou Hoyun Branch Wuhan Hoyun Branch Tangshan Heling LEXUS Linyi Hoyu Minxing Hoyun Branch Changsha Hoyun Branch/ Tianjin Heling LEXUS Chongqing Yudu Wuxi Hoyun Branch Tianjin Hoyun Branch/ Linyi Heling LEXUS Jinzhong Central Jiaxing Hoyun Office Fuzhou Hoyun Branch/ Taizhou Kaudu Lexus Ningpo Hoyun Branch Jinan Hoyun Branch/ Beijing Heling Lexus Guangzhou Hoyun Branch Qingdao Hoyun Branch/ Shenzun Hoyun Branch Huizhou Hoyun Branch Shanghai Hede Used Vehicle Co., Ltd. Dongguan Hoyun Branch Hefei Hoyun Office Zhengzhou Hoyun Office HOYUN(Shanghai) Commercial Factoring Co., Ltd.

27 Embracing Possibilities without Restrictions

Hotong Motor Investment Co., Ltd. Hotong was established in July of 2010 and invested 100% by Hotai. Hotong registered capital of USD $78.04 million in Shanghai, China. Founding Objectives 1. Apply Hotai Motor’s advanced technologies and operational management approaches to joint ventures in China to provide consumers in the China market with products of premium quality and customer-oriented services and fulfill Hotai Motor’s business philosophy – “Profession, Innovation and Excel”. 2. Adopt centralized management approaches for all joint ventures in China, make efficient use of all corporate resources, including capital, talent, equipment, technology and information, to coordinate and manage details of product sales and after-sales services and maximize the aggregate economic benefits. 3. Strengthen financial management for all joint ventures in China to accelerate reinvestment for all business entities and improve operational efficiency of the entire group. 4. Conduct comprehensive and overall market resources, establish development guidelines and expand the scope of China investment based on the guidelines. TMCI related businesses We currently have the CT200h、IS200t、ES300h/200/250、GS300h/250/450h/350、LS460L/600hL、NX200/200t/300h、 GX400、RX200t/450h、LX570、RC200t in stock, in addition to many other models. We also provide maintenance, warranty, guarantee, consultation, and other comprehensive and high- quality one-stop service covering pre-and post-sales services.

Shanghai Tangshan Tianjin Taizhou Linyi

Chongqing Nanchang Beijing

GTMC related businesses We currently have the CAMRY、CAMRY HEV、HIGHLANDER、LEVIN、LEVIN HEV、YARIS-L、EZ、ALPHARD、VENZA、 FJ、ZELAS in stock, in addition to many other models. We also provide maintenance, warranty, guarantee, consultation, and other comprehensive and high-quality one-stop service covering pre- and post-sales services. Shanghai Chongqing Tianjin

FTMS related businesses We currently have the CROWN、REIZ、COROLLA、COROLLA HEV、VIOS、RAV4、LAND CRUISER200、PRADO、 COASTER、TOYOTA86、PREVIA、HIACE in stock, in addition to many other models. We also provide maintenance, warranty, guarantee, consultation, and other comprehensive and high-quality one-stop service covering pre- and post-sales services.

Shanghai Tianjin Beijing Zaozhuang Linyi

Chongqing Jinzhong

28 Embracing Possibilities without Restrictions

Shanghai Ho-Qian Logistics Equipment Trading Co., Ltd. Shanghai Ho-Qian Logistics Equipment Trading Co., Ltd. is an authorized dealer of TOYOTA Shanghai Material Handling (Shanghai) Co., Ltd. (TMHS). It provides comprehensive indoor system logistic design, outdoor logistic equipment, and provides the best solution to meet customer demand. Except trading services, Shanghai Ho-Qian provides long-term operating lease and periodically short-term lease. Moreover, it offers maintenance contract, safety training, and professional consultation. The sales of products include internationally famous brands such as TOYOTA, BT, and Raymond. Facing a large customer base in China, Shanghai Ho-Qian provides genuine parts, aftersales service, and concerns for all customer demands.

Hoyun International Lease Co., Ltd. Apart from cultivating the Taiwan market, Hotai Leasing Corporation (HLC) entered the China market and established Hoyun International Lease Co., Ltd. (HIL) in Shanghai 2007 to expand overseas market with equipment lease services, including vehicle leasing. Following the prosperous trade development across straits and the footsteps of Taiwanese merchants, Hoyun International Lease has expanded its operations to Suzhou, Hangzhou, Guangzhou, Shenzun, Chongqing, Wuhan and 17 additional cities, to provide equipment and vehicle lease services to nearly 10,000 domestic and international enterprises. In April 2009, Hoyun International Lease obtained the first Shanghai City Car Rental Business Operation License among Taiwanese merchants, which Hoyun International Lease increased its business scope to concierge charter services. A counter at Shanghai Pudong Airport is established to provide door-to-door charter services in 2010. In alignment with Chinas economic expansion, Hoyun International Lease will continue to plan and provide various financial business solutions to business owners, suppliers, and end users.

Carmax Co., Ltd. China Business Unit Carmax, a subsidiary of Hotai Motor, is a Toyota-certified developer and vendor of car accessories. In 2011, Carmax Autotech(Shanghai) Co., Ltd. was established in Shanghai, serving car retailers under Hotai Motor in China. In 2012, a joint venture between Carmax and the Guangzhou Automobile Industry Group resulted in the Guangzhou GAC Changho Autotech Corporation in order to satisfy the car accessory needs of GAC automobiles. Carmax provides a one-stop service covering new product development, real car installation testing, special edition car packages, and after sales service that fully showcase the strengths of Taiwanese high-tech electronics. Carmax aims to become the leader in auto accessories in the Asia Pacific region. Beginning in 2013, Carmax began developing goods specifically for TMCI in China. By the end of 2013, the partnership with TMCI had resulted in the establishment of PIO factories in Dalian, Tianjin, Shanghai, and Guangzhou, providing Lexus vehicles with accessory installation service. In 2014, GAC Changho has become the official PIO accessory and installation vender for GTMC in Guangzhou, China. TOYOTA PIO business in China is estimated to increase its service unit from 70,000 in 2015 to over 200,000 in 2017.

Shanghai Hede Shanghai Hede was established in January, 2014. Hede applys TOYOTA CPO brand managing method, considers TOYOTA car sales and service standard as the principle to assure customer's benifit.With the strong support from the group, Hede insists on using internet to provide high quality and comprehensive development strategy.Using Shanghai as a base, Hede plans to march to the entire China and urges to build up a comprehensive sales method with online and offline integration and integration management.Hede now has many direct-sale branches in Shanghai, and it plans to set more direct-sale offices and customer center in Tianjin, Shenzhen, and Chongqing.The goal of Hede is to create an exlusive systematization, standardization, and highly responsive service network in order to provide professional service (comprehensive, touching, trustworthy and meticulous) for the customer.

29 Talent Cultivation and Enterprise Informatization: The Keys to Success of Excelling Others in the Industry

In the eyes of Hotai Motor, every employee is highly potential and excellent. Therefore, talent cultivation and enterprise informatization are the keys to success.

Talent Cultivation and Electronic Management

01 Staffs are provided with opportunities for learning and growth - Staff transformation and nurturing (1) Core responsibilities-focused training a. Senior managers: strategic management, visionary leadership, innovation, nurturing a macro-view leadership style, and expanding vision in management. b. Middle managers: developing human capital, emphasizing team leadership and strengthening leadership abilities, and grooming future leaders. c. Project managers: planning and organization, persuasion and influence, preparation for middle management through increased efficiency in project execution. d. Staff: problem analysis and solution, communication and cooperation; focused on increase in efficiency and quality of daily processes through gradual and systematic training, fostering an environment of constant learning and growth. (2) Planned core ability training, developing the right talent with the right skills for each department. (3) New staff training and internship at the frontline dealers, helping new staff make a smooth transition into the organization. (4) Lectures hold by senior managers, promoting exchange of experiences and internal interaction. (5) To focus on OJD (On Job Development) and put “TOYOTA WAY” into practice. (6) To make use of ICT(Intra-Company Transferee) to work overseas within TMC’s organization and create opportunities for sending qualified people to affiliates to take up management and etc.

02 Utilization of the Assessment Center—Vocational skill orientated, talent development With the Assessment center, employees and supervisors can understand their fitness to the required vocational skills for promotion and the direction of future improvement which can be seen as a reference for future development and trainings. This benefits the company’s development and cultivation in HR in the long run.

03 Design of Salary and Promotion System Reform—Encouragement and Ability Orientations In the promotion system, employees are divided into 16 grades according to their positions. The mid-point level and the upper and lower limits are set for individual grades according to their market value and corporate salary policy. In this way, the employee salary structure can be more flexible and reasonable. And it can also effectively encourage employees to elevate their vocational skills and create better performance.

04 Continued development of our HR system - fully electronic with value-added management The construction of the HR information system enables high efficiency and high quality in HR management, with a full grasp of the development of all staff within the organization. Through value-added analysis, managers are able to perform strategic human resource development planning.

30 Talent Cultivation and Enterprise Informatization: The Keys to Success of Excelling Others in the Industry

Hotai Motor’s Skill Assessment Model

t c e j o r P n a l P r e e r a C Director ) C A ( r e t n e C t n e m s s e c c A and above

General Managers

Department Leaders & Promoted to Sales Field People Deputy General Manager

Project Manager Promoted to Assistant Manager Senior Specialist

Specialist and below

Enterprise Informatization 01 Hotai Motor and eight dealers have passed the ISO 27001 certification Leading the automobile service industry as the first distributor to obtain international certification together with its dealers. Possessing the highest standard in customer information protection, always improving and providing our trustworthy service. Enhancing the security of our website, ensuring customer privacy and safety from external threats.

02 Promoting paperless processing in the effort to save the environment Our full catalog is available electronically for on-the-go browsing and iPads are used for customer interaction. The use of electronic receipts reduces waste, cuts down on carbon emissions, and increases service efficiency. Replacing paper records with electronic record keeping is safer, more environmentally-friendly and more reliable.

03 Introducing on-the-go service, providing innovative and instantaneous ways to satisfy customer needs Serving the customer separately from the vehicle decreases waiting times. Receiving customers inside our service center, featuring a fully integrated dual-screen display, greatly increases customer satisfaction. Cloud storage provides a fast and reliable channel of communication for our dealers.

31 Giving More to Society while Focusing on Our Main Business

Hotai Motor has cared for Taiwan for decades, and its love for this land is increasing. Therefore, it has committed to shortening the gap between people and land and has been promoting social and cultural spirit over time.

Road Environment Eco Educational Culture Healthy CSR Traffic Protection Sustainability Program Cultivation Activity Safety

Road Traffic Safety ■ Crossing guard safety equipments were donated to all the elmentary schools in Taiwan In 1974, Hotai Motor began its involvement in road traffic safety activities in ahead of other businesses, especially in various road traffic safety promotion and other related programs. At that time, Hotai Motor organized the children painting and calligraphy competitions to promote the importance of road safety. Later on, Hotai donated crossing guard equipments, offered scholarship to the children of good drivers, donated vehicles to taxi drivers with distinctive performance, provided accidental medical insurance for members of the Taipei City Voluntary ▲ Crossing guard safety equipments were Traffic Police Squad, and held activities for children’s traffic safety series etc. Over the past donated to all the elmentary schools in fourty years or so, Hotai Motor’s concern for road traffic safety has never stopped. Taiwan

Environment Protection ■ Moving Forward for a Better Environment On Earth! TOYOTA Japan has been promoting charity activities for environmental protection over the years. It is also committed to the R&D of environmental cars and recyclable materials for manufacturing vehicles, in order to realize its corporate social responsibility. In the United Nations Environment Programme (UNEP) launched in 1999, TOYOTA Japan won the Global 500 Environmental Protection Achievement Award. In 2000, it launched the TOYOTA Environmental Protection Activity Research Program to support environmental recovery and environmental protection by subsidizing practical projects relating to environmental technologies and environmental education on a community basis. For this reason, Hotai Motor has been ▲ TOYOTA offers the intelligent electric organizing various environmental protection activities to display its social and environmental vehicle rental service in the Sun Moon Lake responsibility through concrete actions in recent years, in order to do its part for earth.

Eco Sustainability ■ All Creatures will Benefit from Ecological Conservation and Thrive Along with Human Beings. Let Us Turn Formosa into a Permanently Beautiful Island. “Taiwan is a beautiful island.” As a member in the transportation business, Hotai Motor has spared no pain to express concern for and be involved in Taiwan’s environmental protection since it was established some seventy years ago. This allows us to feel that beautiful things are around us and worthy of discovering and experiencing. “Looking at the birds flying in the blue sky and watching butterflies hovering in the green,” Hotai Motor and its affiliates will continue to promote and involve in environmental protection, respect nature, cherish life, feedback to the society, and support for the public. ▲ Hotai Motor has donated 20,000 saplings and three years of funding for the nurturing of these plants. 32 Always Plus One

Educational Program ■ Cultivate Future Enterprise Leaders on Campus Over the years, Hotai Motor has been effectively using its enterprise resources to different parts of the society to achieve the goal of enriching society and sustaining economic development. In recent years, in order to increase social contributions and cultivate excellent talents for the future, Hotai has organized various activities. We believe that these activities are positive to talent growth and our society as a whole.

▲ LEXUS Short Films

Culture Cultivation ■ Cultural, Art and Musical Treats for a Better Life As the best way of relaxing the spirit and being the common language for human communication, music is great for changing one’s character and personality. Art is the quintessence of human civilization, a part of life and the basic of holistic education. With the influence of music, living quality is improved with true and consoled emotions and souls. By seeing the importance of music education, Hotai Motor began inviting world-leading orchestras to give performances in Taiwan in 1990 to aggressively promote art literacy to the public, hoping to encourage the public to participate in art activities, increase the art population, turn art and culture into a social norm, and enhance the living quality of all citizens.

▲ LEXUS Classics- the musical "GHOST"

Healthy Activity ■ We not only offer best services to customers' vehicles, but also care about our customers' health Upholding the belief in “Better than the Best,” we keep providing perfect services and quality through continuous improvement. Similarly, Hotai Motor has spared no pain to participate in health-promoting and meaningful activities to the public and car owners. Hotai Motor pays attention to the need of customers at different stages, and every activity is tailored for customers’ needs. In the future, in addition to continuously creating and developing brand value, we will combine the power of enterprise and a large quantity of resources to provide the public and car owners with more and multidimensional concern activities. ▲ LEXUS Golf Academy

CSR ■ Spreading Love with Charity Activities and Sponsoring Activities for Social Well-beings “The stars are the most beautiful things in the sky, and affection the most wondrous thing in humans.” Upholding the belief in “caring for the elderly as if they were your parents, and nurturing the young as if they were your children”, Hotai Motor and Chun Ching Social Welfare Foundation spread the spirit of “we are in the same boat” to different parts of the world, in order to send love to the underprivileged and warmth to all parts of the world. We hope that this can bring warmth to society, promote social well-beings and fill the world with love. ▲ ▲ ▲ Donated NT$30 million to Japan after the Tohoku Initiate “Love Start” Fundraising Campaign Donate bloodmobiles and call on all employees to Earthquake give blood and help others

33 The Most Glorious Approval for Hotai Motor is Customer’s Satisfaction

From quality to service, even the seemingly unimportant detail is also the focus of our greater effort. Instead of being self-content about the present glory, Hotai Motor always hopes that things can be better!

Mr. Su Yann-Huei, Group Chairman, accepted the National Quality Award.

Hotai Motor continuously won the Most Admired Company in Taiwan from CommonWealth Magazine: Chairman Nan-Kuang Huang and President Justin Su received the trophy.

Hotai Motor won the 22nd session ROC Enterprise Environmental Protection Award.

34 Think Outside the Box and Challenge Your Dreams

We will keep going with a heart to make breakthroughs and turn our achievements into the drive for a better future. In the future, Hotai Motor will excel with total devotion, in order to break through any confinement in vision, and build a more beautiful dream for car owners and the earth.

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