YFY — Interim / Quarterly Report 2020

Apr 16, 2021

YFY

4Q20 Earnings Results

2021/03/04

Disclaimer

This presentation is prepared according to the reviewed financial statements by CPA and the financial numbers hereby are based on IFRS, please refer to the published financial statements for full content.

The presentation may contain forward-looking information and may . differ materially from the actual results YFY does not warranty as to the accuracy or completeness of such information and nor assume any undertaking further information becomes available or in light of changing circumstances. You shall not place undue reliance on any forward-looking information.

The presentation and its contents may not be reproduced to a third party without the prior written consent of YFY.

YFY’s Management Targets

Improve Shareholders Equity

• ：

• Develop Investing Businesses

Historical high Operating Profit Margin Operating Margin 7.7% Y/Y +3.7 ppt.

� Revitalize Assets ：

Contributed Non-Operating Profit NT1.74 billion.

� Improved Shareholders Equity:

Net profit attributable to Owner reached NT5.209 billion. Y/Y growth 127.9%

3

YFY’s Management Targets

Promote ESG

� Dedicate Circular Economy：

• Products：

• 97% of the raw materials of

• Containerboard were recycled paper.

A new standard for the circular economy

• Innovated CircuWell ceries non-

• plastic paper can be fully recycled

• Energy：Biogas power generation

• & SRF

• Water： Max. turns of water &Min.

• tons of water usage

• Carbon：From forest to paper

• manufacture created carbon fixture industry.

• Agriculture：nPulp

• Xinwu plant has received BS 8001 qualification with Optimizing grade to be the Global #1 Paper Company

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2020 Net Value Per Share Growth

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Unit ：NTD
2020 Net Value Per Share
30 Growth +14.6% 5
27.09
4
3.14
25 23.94 23.64
3
21.41 21.36
20 . 23 20 . 01 2
19.38 1.38
20
0.97
0.87
1
0.37 0.36 0.30
0.08
15 0
2013 2014 2015 2016 2017 2018 2019 2020
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Net Value per share EPS

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4Q20 and Annual Financial Results

(NTD $M ) 4Q20 3Q20	Q/Q	4Q19	Y/Y	2020 2019	Y/Y
Sales 20,908 18,789	11.3%	19,340	8.1%	73,235 74,760	-2.0%
Cost of Goods Sold 16,236 14,959	8.5%	15,880	2.2%	58,253 62,199	-6.3%
Gross Profit 4,672 3,830	22.0%	3,460	35.0%	14,981 12,562	19.3%
Operating Expenses 2,723 2,325	17.1%	2,627	3.7%	9,379 9,571	-2.0%
Operating Profit 1,949 1,504	29.5%	832	134.1%	5,603 2,991	87.3%
None-Operating Income/Expenses 226 1,824	-87.6%	- 120	- 287 7% .	2,774 565	390.6%
Profit before Tax 2,175 3,328	-34.7%	712	205.4%	8,377 3,556	135.5%
Income Tax Expenses 453 688	-34.1%	208	117.7%	1,773 897	97.7%
Net Profit 1,721 2,639	-34.8%	504	241.6%	6,604 2,660	148.3%
Profit Attributable to Owners 1,092 2,215	-50.7%	446	144.8%	5,209 2,286	127.9%
EPS(NTD) 0.66 1.33		0.27		3.14 1.38
Gross Profit Margin 22.3% 20.4%	2.0%	17.9%	4.5%	20.5% 16.8%	3.7%
Operating Profit Margin 9.3% 8.0%	1.3%	4.3%	5.0%	7.7% 4.0%	3.7%

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None-Operating Income/Expenses

(NTD $M) 4Q20 2020	2019
Financial Costs - 159 - 697	-	930
Interest Income 22 126		220
Share of Profit of Associates 172 606		401
FX Gains/Losses -76 -129	-178
Dividend Income 48 803		707
Other Income 219 2,063		346
Total 226 2,774		565

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The Board Approved NT$1.50/Share Cash Dividend

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UNIT: NTD
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3.50
3.14
EPS
3.00
Cash Dividend/ Share
2.50
2.00
1 . 50
1.38
1.50
0.97
1.00
0.87
0.70
0.50 0.60 0.60
0.08
0.00 0. 00
2016 2017 2018 2019 2020
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Note：2020 dividend shall be approved by the AGM in 2021.

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Segment Information

The YFY Group classifies its products and services into four segments in accordance with the business characteristics, as follows ：

(1.) Pulp and Fine Paper Business Groups

Including cardboard, paper and pulp and related products.

(2.) Containerboard and Packaging Business Groups

Including industrial cardboard containers, colored cases and food containers.

(3.) Consumer Product Business Groups

Household products including tissue paper, napkins, detersives and cosmetics

(4.) Others Business

Products other than paper including Specialty materials, RFID, Bio-medical investments and other services.

(The performance of segments is measured at operating profits of the business. Revenue and profit between segments have been adjusted; these adjustments include the elimination of intra-segment transactions to reconcile the segment information with that reported for the Group as a whole.

Revenue Trend By Operating Segments

Pulp & Fine Paper Containerboard & Packaging Consumer Products Others

Consolidated Revenue

(NTD $ M)

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20,908 % Q/Q
18,959 19,096 19,340 18,789
17,366 17,346
4,775
16,192
3,175
3,605 3,531
3,848
2,969 3,308 23% +50.4%
2,853 2,970 2,687
2 , 793 2,819 2,798 2 , 390 2 , 44 0 13% +10.1%
2,615
9,124 9,231
7,409 8,160 8,722 7,988 8,725
6,710
44% +5.8%
4,195 4,375 4,044 4,187 3,897 3,660 3,776 4,215
20% +11.6%
1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20
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Realized Investment Income to Increase Profitability

NT$ Million	2020 Q3	2020 Q3	2020 Q3	2020 3Q YTD
	Operating Profits Dividend Income Share of profit of associate s	Profit from Disposal of Land	Disposal of investments in equity instruments designated as at FVOCI	Operatin g Profits Dividend Income Share of profit of associates Profit from Disposal of Land Disposal of investments in equity instruments designated as at FVOCI
Pulp and Fine Paper Containerboard and Packaging Consumer Products Others Other investments Eink, Bio-Medical, Financial and Venture Investments and Others. Total	-15 - - 677 - - 363 - - 924 - - - 48 172 1,949 48 172	- - - - - 1,739	-	-390 - - - 2,205 - - - 1,546 - - 355 - 2,242 - - 1,384 - - 804 606 - 300 5,603 804 606 1,739 300
			-
			-
			-
			289
			289

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Thank you

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