•Time & Date: 9:00 am - 9:45 am
•Date: May 31 (Tuesday)
•Location: LiuGong booth
•Speaker: Mr.Wang Taiping, VP of LiuGong
   Ken Biediger, President, NA Forklift Division, LiuGong North America
•MC: Stacie Adams, Director, Branding & Communications, LiuGong
•Media: 30~40 media are expected, final RSVP to be updated
•Agenda
Time  Agenda
09:00 - 09:05  MC opening
09:05 - 09:15 Speech - Mr. Wang Taiping
09:15 - 09:25  Product Launch - Ken B
09:25 - 09:35 Media Q&A
09:35 Wrap-up

• Speech outline
Business Introduction: LiuGong forklift strategy
• LiuGong’s Global expansion laid the strong foundation for the growth of forklift business
• Development of forklift strategy
• LiuGong’s competitive advantage and future strategy in forklift business

Speech by Wang Taiping, Vice President of LiuGong Machinery
Delivery Time: 10 minutes
May 31,2016

Distinguished Guests,
Dear Friends from the Press,
Ladies and Gentlemen,
Thank you for attending today. I am thrilled that I have been given the opportunity to discuss the future of our industry with you at this world-leading trade fair in Hannover. On behalf of myself and LiuGong, I would like thank each and every one of our media contacts and friends for your attention today and your continued support. This morning, I would like toshare with you our development and strategy inthe material handling business.

Firstly, I would like to provide a quick introduction to LiuGong. Our company was founded in 1958, and over the years we have become one of the fastest growing construction equipment companies in the world, offering a full line of extreme duty and intuitive machines. LiuGong has eight overseas subsidiaries, three international manufacturing bases and over 300 international dealers,spanning over 130countries. More than 30% of LiuGong’s total company revenue now comes from overseas operations.

LiuGong’s global expansion laid a strong foundation for the growth of its material handling business worldwide.From 2010 to 2014, the export of LiuGong’s material handling businesswitnessed a substantial increase, with a compound annual growth rate of 41%. This is much higher than the Chinese industry average of 21%. This growth is purely based on product value, which is positive as it will provide LiuGong with a healthy, sustainable, long-term growth.

At LiuGong, we have also significantly improved profitability of our material handling business. We have succeeded in winning large tenders globally, we have launched the SKD factory in Argentina, and we are delivering LiuGong forkliftsto customers in the North American and European markets.

However, our success wasn’t instantaneous. Our domestic market share gradually grew from our beginnings in the material handling business in 2002. Now we are proud to say that our material handling business isgrowing worldwide.

In our quest to be globally renowned, there were several markets which we had to crack; the European market being the hardest. A fast-paced market, rules and technology change quickly, and it is this market’s movement which often indicates the future of the entire industry. Put simply, if a business manages to succeed in Europe, it can succeed in any market.

In 2012, LiuGong established operations in Almere in the Netherlands, which has since become one of the company’s most vital overseas bases. This location also serves as a sales hub and a technical support and spare parts distribution centre. As one of the first Chinese CE companies in the European market, LiuGong has accumulated valuable market experience anda comprehensive dealer network.

Leveraging European subsidiary’s resources, LiuGong’s material handling business has sped up the layout in this market. This is where we have some of our most demanding customers, and this product is often a building block for our success. To continue to excel in the European market, we have expanded our product line to ensure that we give our customers everything that they need.We have perfected the most important functions on the equipment. Modern designs including the intuitive control and ergonomic design make sure our equipment are comfortable, productive and safe. Our customers will spend more time doing their work.

In the European market, our machines have been very well received by customers. Today, we have brought ten machines here, including warehouse equipment, an internal combustion forklift and the full product line of electric forklifts. We are also very excited to launch our brand new C-series forklift; a machine which will provide the benchmark for all our future products. My esteemed colleague, Ken, will share more with you about this product later.

At LiuGong, it is our rule that we never enter a market without dealers and an effective support system in place.LiuGong customers know that support is where they are when they need it because our equipment is backed by a first class, professional dealer network that spans the globe, offering service and parts to customers anywhere any time. Our customers have confidence knowing that they have our total support.In the last five years, we have developed an extensive dealer network for material handling business in Turkey, Poland, England, Republic of Serbia and Hungary.We provide customer support for our material handling equipment where and when they need it, a system which has been established by European subsidiary.

In the Netherlands, we have senior service staff who have been placed to provide comprehensive support to our dealers there. A 2,400 square metre parts warehouse is also located there, a place where frequently-used parts can be delivered to dealers within 24 hours.

When it comes to conquering the European market, it is important to remember that it is a marathon, not a sprint. Sustainable business development demands a little speed, but a lot more diligence. Rather than recruiting a large number of dealers across the whole of Europe, we instead started withTurkey and Poland. Through successful market operation in these places, we were able to continue to perfect our product and improve our capability in service support and the supply chain.

Now, we are confident that we can win in the European market!This confidence is founded upon our deep and precise understanding of the global market as well as our capability to give users the most control over equipment ownership by offering a total solution for their material handling needs.We understand that we still have a lot more to achieve, but we have the appropriatestrategies in place to progress.

LiuGong has plans to accelerate product line expansion and upgrade by setting up a customer-oriented product development and innovation system. One of our goals is to also enhance channel management in the domestic and international market. We will stick to a key account strategy, and improve our branding awareness in the global market.

In the next five years, we are also aiming to enhance the capability of after-market support, as well as internal efficiency. We will also look to strengthen our supply chain management and train core strategic suppliers to differentiate LiuGong from the rest of the market.

Distinguished guests and friends from the press:
Both the world economy and our industry have been confronted with challenges in recent years. A good economy floats all boats, but the smart and diligent captain knows how to navigate slack tides. At LiuGong, we do not fear challenges or a rapidly changing market. We instead view it as an opportunity to stand out and help shape the future together with our partners. Our future development depends on the effort we put in now. Let us write a new chapter together.
Thank you.