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AIDC Holds Investor Conference, Provides Plant Tour and Clarifies M-346 MOU with Leonardo

 
2016/8/29 
AIDC (2634) held an investor conference and discussion at its Taichung facility today. Chairman Anson Liao presided over the conference and Senior Vice President Nan-Juh Lin gave a presentation on corporate operations. Chairman Liao responded to the recent reports on the M-346 MOU between AIDC and Leonardo, and later invited investors for tours of AIDC’s industry 4.0 demonstration plant at Taiwan Advanced Composite Center (TACC) and assembly line to familiarize them with AIDC’s operations and aircraft manufacturing process. The tours were well received by both domestic and foreign investors.
On the subject of the advanced trainer program, Chairman Liao said AIDC did sign a MOU with Leonardo in 2014, yet it stipulated if the Taiwan government finalizes its decision to develop indigenous trainers, AIDC would fully comply with government’s policy and that has since been approved by the AIDC BOD. AIDC had no intention whatsoever to gain benefit from either decision. Chairman Liao stressed, AIDC is a listed company, with the Ministry of Economic Affairs as the major shareholder and defense industry as our core business, AIDC is obliged to abide by government policy while pursuing business opportunities and the best interest of all shareholders.
AIDC’s revenue for the first half of the year was NT$13.809 billion, pre-tax income was NT$1.348 billion, net income is NT$1.065 billion, earnings per share is NT$1.17. Revenue in the first seven months of the year was NT$16 billion, which met the expectations.
SVP Lin indicated, ”Taiwan government selected 5 innovative industries to lead the momentum of the next generation industries. Defense industry being one of the five and is expected to promote industry investment and raise the level of Taiwan defense industry. AIDC will support the advanced jet trainer indigenous development policy and integrate the edge of aerospace A-Team 4.0 alliance to expand our aerospace production value. This effort is expected to generate positive effects on the technical capability and talent cultivation of the domestic aerospace industry and will be instrumental to the growth of total production value.”
“On major capital expenditures, we achieved several milestones including; ECMC III which was inaugurated in April, TACC-19 which was inaugurated in July and F-16A/B maintenance building which is expected to complete in Q1 of next year.” SVP Lin stated.

While the prospect for the aviation industry over the next 20 years shows sustained growth, it brings along requirements for aircraft manufacturing. According to market forecasts released by Airbus and Boeing, for the next 20 years (2016-2035) air passenger turnover volume will grow at an annual rate of 4.5%-4.8%, with new aircraft requirement between 33,000-39,000, for a total market value of US$5.2-5.9 trillion. Single-aisle aircraft is expected to become the mainstream product upon the strong demand of emerging markets and budget airlines. Based on Forecast International Q2 2016, new aircraft demand will also drive the growth of new engines; business engine deliveries in the next 10 years (2016-2025) will reach 120,000 units, for a total value of US$720 billion. With Airbus’ order backlog stands over 6,700 jets and Boeing’s over 5,700 jets, deliveries may take seven to eight years to meet global end-users’ demand.