YC — Investor Presentation 2021

Dec 2, 2021

Investor Conference Chan Lieh-Lin FINANCIAL DEPT. DEPUTY GENERAL MANAGER 2021.12.02

==> picture [149 x 76] intentionally omitted <==

==> picture [84 x 82] intentionally omitted <==

==> picture [96 x 81] intentionally omitted <==

==> picture [79 x 81] intentionally omitted <==

==> picture [44 x 81] intentionally omitted <==

==> picture [169 x 84] intentionally omitted <==

Notice

This document contain statements." In addition to historical may "forward-looking information provided in this presentation, examples of forward-looking statements are (but not limited to) future prospects, forecasts and estimates, etc.

Forward-looking statements are based on management’s current views on future events. These views are affected by risks and uncertainties, which may cause significant discrepancies between actual results and the forward-looking statements.

Any forward-looking statements made in this document only apply as of the date of this presentation. Investors shall not place undue reliance on these forward-looking statements. Regarding these views, in addition to those which are regulated by laws, if there are any changes or adjustments in the future, the company is not responsible for reminding and will not update this document at any time in the future.

This statement of notice apply to all forward-looking statements contained in this presentation.

Outline

➢ Company Profile ➢ Operational highlights

➢ Advantages

Company Profile

Locations in Taiwan

==> picture [197 x 113] intentionally omitted <==

==> picture [197 x 112] intentionally omitted <==

==> picture [197 x 113] intentionally omitted <==

==> picture [197 x 113] intentionally omitted <==

Puoshing Mill (1973) • Pipe approx. 45,000 m² Shijou Mill/HQ(2001) • Tube approx. 47,000 m² Douliou Mill 1(2007) • Coil Service Center approx. 73,000 m² Douliou Mill 1(2019) • Pipe approx. 68,000 m²

Taipei office

Kaohsiung office

Locations in Turkey

==> picture [636 x 376] intentionally omitted <==

Mills in Turkey

• Service center and Tube(1[st] Phase)

• • Pipe(2[nd] Phase)

• Total approx. 96,000 m²

Main Products

==> picture [326 x 185] intentionally omitted <==

----- Start of picture text -----

PIPE
----- End of picture text -----

==> picture [325 x 179] intentionally omitted <==

----- Start of picture text -----

SHEET/PLATE
----- End of picture text -----

==> picture [319 x 184] intentionally omitted <==

----- Start of picture text -----

TUBE
----- End of picture text -----

==> picture [320 x 178] intentionally omitted <==

----- Start of picture text -----

COIL
----- End of picture text -----

Product application–Pipe and Tube

==> picture [747 x 456] intentionally omitted <==

Product application–Sheet/Plate

==> picture [646 x 451] intentionally omitted <==

Capacity

==> picture [432 x 169] intentionally omitted <==

----- Start of picture text -----

Total Capacity = 35,800 Ton/M
Pipe/Tube Sheet/Plate/Coil
15,800 Ton/M 20,000 Ton/M
----- End of picture text -----

No.1 in Taiwan Top 5 welded stainless steel pipe/tube producer worldwide*

No.1 in Taiwan Top 5 stainless steel coil service center worldwide

• Rated by Austria SMI (Steel Market Intelligence) magazine in 2017

Material Supplier

YUSCO / TANG ENG / WALSIN / YYS / TUNGMUNG

OUTOKUMPU

==> picture [128 x 117] intentionally omitted <==

POSCO TISCO / FUXIN TSINGSHAN BAHRU STAINLESS (ACERINOX)

Operational highlights

Global Sales (by region)

2020

2021Q1~Q3

Africa Taiwan Oceania 7% 23% 13% America Asia Europe 19% 15%

==> picture [440 x 228] intentionally omitted <==

----- Start of picture text -----

Africa
Oceania Taiwan
6%
15% 24%
Asia
America
Europe
9%
18%
28%
----- End of picture text -----

==> picture [616 x 33] intentionally omitted <==

Sales percentage (by product)

2021 Product\Year 2019 2020 Q1~Q3 Stainless Steel 47.1% 53.8% 55.4% Pi e / Tube p Stainless Steel 51.1% 44.4% 43.4% Sheet / Plate / Coil Other Stainless Steel 1.8% 1.8% 1.2% Products Net Sales 16.31 12.72 13.13 (in billion)

YC′s Pipe and Tube Market Share

In Taiwan\Year 2018 2019 2020 Export 46.5% 47.9% 48.4% Domestic Sale 23.2% 22.1% 22.8%

Source: Import and Export Statistics of 2020 Steel Product Annual Report, TSIIA

Operating Results

==> picture [734 x 433] intentionally omitted <==

----- Start of picture text -----

NET SALES
163.09 127.17 131.27 GROSS PROFIT
OPERATING INCOME
30.00
NET INCOME
20.60
20.00 15.82
11.85
9.85
8.02
8.29
10.00 6.24
4.65 4.24
-
2019 2020 2021Q1~Q3
Unit: in hundred millions of NTD
Item\Year 2019 2020 2021Q1~Q3
NET SALES 163.09 127.17 131.27
GROSS PROFIT 15.82 11.85 20.60
OPERATING INCOME 8.02 4.65 9.85
NET INCOME 6.24 4.24 8.29
In hundred millions
----- End of picture text -----

Operating Results(cont′)

2021 Item\Year 2019 2020 ~ Q1 Q3 Gross Margin 9.7% 9.3% 15.7% Operating 4.8% 5.7% 8.2% Ex ense Ratio p Operating Profit 4.9% 3.7% 7.5% Ratio EPS 1.53 1.04 1.89

Dividend policy

Year	EPS(NT$)	Cash Dividend(NT$)	Stock Dividend(NT$)	Sum(NT$)	Annual Avg. Stock Price	Yield rate
2016	1.95	1.80	-	1.80	23.48	7.67%
2017	2.00	1.80	-	1.80	25.88	6.96%
2018	2.23	1.80	-	1.80	25.95	6.94%
2019	1.53	1.50	-	1.50	26.09	5.75%
2020	1.04	1.50	-	1.50	24.22	6.19%

Advantages

Advantages

➢Quality Assurance\Leading technical ➢Worldwide marketing channels ➢One stop purchasing with abundant products ➢Turkey mill is about to commission ➢Sustainable operation-ESG

Quality Assurance

==> picture [207 x 105] intentionally omitted <==

==> picture [130 x 120] intentionally omitted <==

==> picture [136 x 109] intentionally omitted <==

==> picture [91 x 89] intentionally omitted <==

==> picture [51 x 89] intentionally omitted <==

==> picture [180 x 89] intentionally omitted <==

==> picture [93 x 89] intentionally omitted <==

==> picture [92 x 89] intentionally omitted <==

==> picture [100 x 96] intentionally omitted <==

==> picture [88 x 99] intentionally omitted <==

==> picture [123 x 90] intentionally omitted <==

==> picture [138 x 85] intentionally omitted <==

Worldwide marketing channels

==> picture [759 x 377] intentionally omitted <==

Abundant products

==> picture [838 x 420] intentionally omitted <==

Turkey HQ and Tube mill

==> picture [850 x 369] intentionally omitted <==

Turkey Service Center

==> picture [757 x 426] intentionally omitted <==

Sustainable operation

➢ Comply with emission regulations: We have Implemented the Anaerobic Fluidized Bed bioreactor (AFB) to decompose nitrate nitrogen, and achieving 2027 national effluent discharge standard of Total Nitrogen content by reducing the concentration of NO3[-] -N.

➢ Domestic wastewater recycling: Recycling of domestic wastewater using the MBBR biological system, the water quality can reach the safety reusable standard set in the and the water reaches factory, pure recovery efficiency 70%.

Sustainable operation(cont′)

• ➢ Process wastewater recycling: Through the multi-stage desalination RO system, the wastewater recycling rate is over 90%.

• ➢ Pickling waste acid recycling: The available process acid is recovered to reduce both the sludge disposal and chemical consumption. Waste acid recycling efficiency reaches 85% 。

• ➢ Invest in solar power generation: We spend more than NT$200 million to build solar power generation with a capacity of about 7.3 million kWh/year. It is expected to be commissioned in April 2022.

Social Responsibility-Donation and Sponsorship

➢ We′ve donated many bus shelters, participated in the donation of epidemic prevention materials, and donated residential fire alarms. ➢ Every year, we subsidize the ShenqJyh (Holywisdom) Special Education Center, and participate in winter relief activities... etc.

==> picture [350 x 262] intentionally omitted <==

==> picture [279 x 83] intentionally omitted <==

Y our C hoice For Stainless