YGG — Investor Presentation 2016

Apr 28, 2016

YG Group 1589TT

品質 Quality 速度 Speed

團隊 Team Work 卓越 Excellence

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May 2016

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Disclaimer

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The information contained in this document was verified by an independent third party. YG does is not responsible for the accuracy, fairness, and completeness of any information contained in this document. You should not assume any information in this document to be accurate, fair, nor complete. The information or opinions contained in this document is provided on a specified date, which YG reserves all right to update. YG has no obligation to notify you of any updates after a specific date or any development of information in the documents. YG will not accept any liability for any loss resulting from the use of this document or its contents or for other reasons related to this document.

This document does not constitute an offer or solicitation of an offer of purchase or acquisition to sell or issue shares of YG or any of its subsidiaries or related parties in any jurisdictions, does not serve as a part an offer or incentive, nor should be interpreted as such. Any part thereof or distribute the facts does not constitute the basis of any contract or commitment, and should not be relied upon in respect of any contract or commitment.

Your acceptance of this document constitutes your agreement that the information contained in the document is kept strictly confidential, securities researchers should have eligibility of the securities research and follow any relevant securities laws and regulations and restrictions of the appropriate jurisdiction before publishing research results on YG.

This document is provided for the securities researchers for use as their research reference only. Any part of the document cannot be photocopied, copied, forwarded, or in any manner, directly or indirectly transferred to any other person or for public announcement and for any other purpose.

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2

Executive Summar y

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• We are a 1[st] source supplier of ductile iron castings to the world’s top producers of wind turbines, injection molding machines and other industrial equipment .

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• Our core competitive edge is built upon our superior scale, attention to detail in the manufacturing process and vertical integration.

• We are one of the world’s largest independent foundries even though we have only a 0.5% share of the global market for ductile iron castings in 2013. We aim to benefit from the current trend towards increased outsourcing, and see ourselves as a consolidator in the fragmented, and growing global market for ductile iron castings.

• In the next 3-5 years, we see an expanding customer base and opportunities in new product types as the drivers of top and bottom line growth.

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3

YGG Value Creation

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Competitive
Edge
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Diversified
Revenue
Stream
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Strategy for
Sustained
Growth
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4

YGG Value Creation

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Competitive
Edge
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Diversified
Revenue
Stream
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Strategy for
Sustained
Growth
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5

YGG’s Competitive Edge

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Attention to
Detail in the
Casting
Process
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Experienced
Management
Team
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Scale
Advantage
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Cost
Advantage
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-
One Stop
Shopping
(Vertical
Integration)
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Attention
to Detail
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Attention to Detail in the Castin Process g

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Materials Science Know-How

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• The purity and concentration of 26 chemical elements is monitored at all stages of the production process.

• Spheroidal graphite nodules enhance the strength of ductile iron. The highest recorded concentration is 300/mm[2] . YGG can achieve 280/mm[2] . Over the past ten years, YGG has helped one client reduce cycle times for their injection molding equipment to 4 seconds from 10 seconds by steadily improving nodule count.

Advanced Process Controls

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• SOLIDCast software simulates thermal changes in the casting during the solidification process to show potential defects, greatly reducing failure rates.

• YGG’s process control know-how allows us to produce Ductile Cast Iron with high yield strength and high toughness at low temperature.

Investment in Superior Plant Equipment and Design

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• Proprietary Design: YGG stipulates its own specifications for key pieces of casting equipment, subcontracting production to an overseas supplier.

• Allowance for Extra-Large Castings: Casting facilities can accomodate larger castings than those of YGG‘s peers, and overhead cranes are rated for heavier loads.

• Advanced Inspection Equipment: YGG has invested in advanced testing equipment and performs precision testing services for customers with tight tolerance specifications.

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• Geothermal heating facilities maintain a stable temperature in the machine shop in both summer and winter to ensure precision in the machining process.

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Scale
Advantage
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Not Your Average Foundry

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Average Output Per Foundry＊

Tonnes per annum 25,000 22,468 20,000 15,000 8,659 10,000 6,122 4,085 5,000 3,417 2,815 2,656 2,272 2,133 1,813 1,483 -

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• Based on 2013 output 112,339 tonnes per foundry. Source：Modern Casting Magazine, December 2014

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Scale
Advantage
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Castin Ca acit g p y

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Year	Foundry	Foundry	Design Capacity	Max. Single Weight*
1986	YGA Taipei (Taiwan)		8,400 T/Yr	8 Tons
1995	YGD Dongguan (China)		18,000 T/Yr	12 Tons
2002	YGS Ningbo (China)		36,000 T/Yr	45 Tons
2002	YGL Ningbo (China)		36,000 T/Yr	25 Tons
2008	YGB Liyang (China)		60,000 T/Yr	75 Tons
2016	YGW Jiangsu (China)		60,000 T/Yr
	subtotal		218,400 T/Yr
New Capacity Plan
YG-Taichung Harbor (Taiwan)		60,000 T/yr		Energy Application
YG-Thailand phase I		48,000 T/yr		Non-Energy Application
Total		326,400 T/Yr

*The maximum size of casting that can be produced at each respective foundry.

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One Stop
Shopping
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One Sto Sho in p pp g

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• Vertical and horizontal process integration.

• We provide end-to-end satisfaction of customer needs from pattern design, casting, welding, painting, machining and assembly – all at YGG.

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Design Casting
Total
Assembly Machining
Solution
Welding Painting
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Casting

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Machining
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Inspection
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Welding
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Assembly

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Cost
Advantage
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Cost Advantage

YGG’s cost competitiveness stems from:

• Low RM cost: Cash purchases and pro-active inventory management

• Economies of scale in production

• Attention to detail: low defect rate of 0-3% reduces waste.

• Vertical integration: Yeo-Tian, a 100%-owned steel scrap merchant, helps YGG lower scrap steel acquisition costs.

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RMB/kg
5700 Scrap Steel Price
5200
Market Price
4700
YGG Class-A Scrap Cost
4200
3700
3200
2700
2200
1700
1200
Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15
RMB/kg
6200 Pig Iron Price
5200 Market Price
YGG purchase price
4200
3200
2200
1200
Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15
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11
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Manage-
ment
Team
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Experienced and Stable Management Team

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Hsien-Ming Chang Founder and Chairman Over 35-yrs experience Chairman of YGG Co.

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Wu-Chi Chen

Andy Tsai Vice Chairman

Executive Vice President

General Manager of Dong-Guan YGD Co. 45-yrs experience

38-yrs experience

General Manager of Shieh-Yih Machinery Co. Metal Industries R&D Centre

Vice President of YGG Co.

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Wen-Lung Chang Executive Vice President

Fred Kong

Vice President, Sales Director

Chairman of YGA Co. 24-yrs experience General Manager of YGG Co.

9-yrs experience

General Manager of Suzhou Liang-Chi Motor Vice President of Suzhou TECO Co.

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Rui Guo

Vicky Lin Vice President, Finance Director

Vice President, R&D Director

19-yrs experience Engineer of Jiang-Dong Machinery Co.

11-yrs experience Deloitte Taiwan

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Ching-Hsiung Hsu Vice President

Tai-Fon Lin

Vice President

General Manager of Ningbo YGS Co. 41-yrs experience Vice President of Chen-Hsing Industrial Co.

General Manager of Ningbo YGL Co. 11-yrs experience Vice President of GS Machinery Co.

12

YGG Value Creation

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Competitive
Edge
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Diversified
Revenue
Stream
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Strategy for
Sustained
Growth
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13

1st Source Supplier to Global Leaders

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Revenue b A lication y pp

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0% 10% 20% 30% 40% 50% 60% 70%	0% 10% 20% 30% 40% 50% 60% 70% 1Q16/1Q15 Revenue by Application 60% 20% 20% 62% 23% 15% Energy Injection Molding machine Industrial Machinery 1Q15 1Q16	48% 25% 27% 59% 22% 19% Energy Injection Molding machine Industrial Machinery 2014 2015 2014/2015 Revenue by Application

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15

1Q16 Revenue b Customer y

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1Q16 Main Customers 2015 Main Customers
Sumitomo
Sumitomo
Nissei, DEMAG, Envision, Milacron, DEMAG,
Milacron, 2.7% 2.5% 3.6% 3.3% 2.7% S group,
17.2%
3.4% GE energy,
K, 3.9%
ZF, 2.7% 21.2%
K, 3.6%
Elekta,
4.3%
Engel, 5.5%
Gamesa, Engel, 4.8%
6.2%
Gamesa, GE energy,
7.1% 14.1%
Nordex, Nordex,
8.8% 8.6%
S group,
20.1%
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16

YGG Value Creation

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Competitive
Edge
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Diversified
Revenue
Stream
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Strategy for
Sustained
Growth
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17

YGG 5-Year Goals

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New Products, New Customers

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Establish New
Production Base
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Group capacity expansion 100%

To be One of The World’s Leading Manufacturer of Ductile Casting Iron

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New Products New Customers ,

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We are receiving enthusiastic interest from new and existing customers. This should increasingly allow YGG to pick and choose our products, leading to a higher end product mix and enhanced profitability.

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Product
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Customer
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Wind Power
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Worldwide Windmill Producers
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-
Earth Moving and Agricultural
Equipment
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US Multinationals
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Automotive Stamping Molds
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Major Global Automaker
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Overhead Cranes, Infrastructure
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Manufacturers, Municipalities
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*Existing application

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Note: These are product areas and customers that we are targeting to drive growth. In most cases, there are no commitments from customers to do business with YGG at this time, though in most cases target customers have expressed interest in YGG or have approached us.

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Consolidating Share in a Fragmented, Growing Market

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Market Growth

• Modern Casting Magazine estimates that global shipments of ductile iron reach a total of 25.06mn tonnes in 2013. Worldwide top 5 countries is Chinese, Germany, Japan, India and South Korea.

YGG as Consolidator

• YGG’s share of the global ductile cast iron market is only 0.5% and our output represents only 1% of the total output of Chinese foundries.

• Given the high number of small and inefficient players in the market (30K foundries in China alone), we believe that we can steadily increase our share.

Industry Trends Favor YGG

• One of the ductile iron industry’s most pronounced trends is the migration of production capacity to Asia, in particular China, India and South Korea. While production output in these countries has risen rapidly, there has been a steady decline in production in Europe, Japan and Russia.

• YGG is one of a handful independent foundries that can meet the quality and quantity demands for large modern castings. YGG has been upgrading its facilities while competitors in mature markets have been scaling down their output. For example, from 2007-2013, average annual output per foundry in Japan declined from 4,089 tonnes to 2,656 tonnes.

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20

2016 Outlook

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• Shipments: We shipped 152 k tonnes in 2015. After the completion of YGW (Jiangsu) earlier this year, Y2016 shipment target has been raised from 165 k tonnes to 175~180 K tonnes.

• Product Mix:

(% of total revenue)	2013	2014E	2015	2016F 70-85 15-30
Energy	41	48	59
Non-Energy	59	52	41

• Capex:

Year NTD$ million	2014E	2015	2016F	2017F
	548	1,653	2,000	2,300

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21

Our Commitment to Shareholders

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• We pledge that our primary focus will be the maximization of returns to our shareholders via the profitable long-term growth of our ductile iron casting business

• We aim to sustain revenue and earnings growth superior to that of our peers and the overall industry

• We intend to maintain a cash dividend payout in excess of 50%

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Financial Results

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23

Revenues and Operating Profit

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Gross Margin % Operating Margin %

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31.3% 32.8%
28.6%
18.7% 18.7%
23.1%
8,122 14.6% 1,516
20.0%
7,206 1,349
10.4%
5,899
5,261 5,261
7.6%
861
547
402
1,913
2011 2012 2013 2014 2015 1Q16 2011 2012 2013 2014 2015 1Q16
Revenues NTD$ million Operating Profit NTD$ million
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Financial Hi hli hts g g

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ROE % ROA % EPS NTD
12.24
14.6
14.1 9.78
5.36
9.9 10.2 1,349
3.72
9.0
6.9
1,002
3.79
6.8
6.3
6.0
3.8 541
370
298
2011 2012 2013 2014 2015 1Q16 2011 2012 2013 2014 2015 1Q16
Net Income NTD$ million
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Five-year P&L (Consolidated)

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NTD$ million	2010	2011	2012	2013	2014	2015	YOY (%)	YOY (%)	YOY (%)	YOY (%)	YOY (%)
							2011	2012	2013	2014	2015
							18.9	0.0	12.1	22.2	12.7
Sales Revenue	4,425	5,261	5,261	5,899	7,206	8,122
							(5.1)	15.5	38.8	33.8	18.2
Gross Profit	1,108	1,052	1,215	1,687	2,258	2,668
							(29.8)	36.1	57.4	56.5	12.4
OP Profit	572	402	547	861	1,349	1,516
							(35.9)	26.2	57.3	81.1	35.4
Income before tax	573	368	464	730	1,321	1,789
							(36.2)	24.5	46.2	85.1	34.7
Net Income	466	298	370	541	1,002	1,349
							(36.2)	1.9	41.4	82.5	25.2
EPS (NTD$)	5.83	3.72	3.79	5.36	9.78	12.24

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Five-year Balance Sheet (Consolidated)

NT$ million	2010	2011	2012	2013	2014	2015	YOY(%)	YOY(%)	YOY(%)	YOY(%)	YOY(%)
							2011	2012	2013	2014	2015
TOTAL ASSETS	6,999	8,627	8,365	9,506	11,678	15,590	23.3	(3.0)	13.6	22.9	33.5
Cash	688	944	1,430	1,557	2,942	5,408	37.2	51.5	8.9	89.0	83.8
NR & AR	1,255	1,654	1,403	1,938	1,994	2,483	31.7	(15.1)	38.1	2.9	24.5
Inventory	661	992	941	1,106	1,411	1,304	50.2	(5.2)	17.5	27.6	(7.6)
Fixed Asset	3,826	4,338	3,997	4,021	4,310	5,252	13.4	(7.9)	0.6	7.2	21.9
TOTAL LIABILITIES	2,541	3,544	2,664	3,207	3,621	4,935	39.5	(24.8)	20.4	12.9	36.3
Bank Loans	1,883	2,649	1,856	1,789	412	500	40.7	(29.9)	(3.6)	(77.0)	(21.5)
NP & AP	403	553	478	977	1,200	1,134	37.4	(13.5)	104.4	22.8	(5.5)
Accrued Expenses	125	162	175	274	405	502	30.1	7.7	56.6	48.0	23.7
TOTAL EQUITY	4,458	5,083	5,702	6,299	8,057	10,654	14.0	12.2	10.5	27.9	32.2
Capital	800	800	1,009	1,009	1,049	1,180	0.0	26.1	0.0	4.0	12.5
Additional Paid-in Capital	3,166	3,166	3,548	3,548	4,046	6,092	0.0	12.1	0.0	14.0	50.6
Retained Earnings	811	1,109	1,316	1,666	2,315	2,998	36.7	18.7	26.6	38.9	29.5
A/R Turnover Days	89	102	107	106	102	101
Inventory Turnover Days	81	75	91	92	96	93
A/P Turnover Days	41	41	47	63	80	78

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Dividend Pa out y

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( NTD Million )	2011	2012	2013	2014	2015
Net income	298	370	541	1,002	1,349
Cash dividend	13	262	353	667	1,004
Dividend p/s (NT$)	0.15	2.6	3.5	6.36	8.5
Cash yield (%)	0.33*1	6.1*2	2.4*3	2.7*4	3.7*5
Payout ratio (%)	4	71	65	67	74

Notes:

1. 2011 yield is based on YGG’s closing share price 45.0 NTD on Sep.13, 2012; the day before ex-dividend day.

2. 2012 yield is based on YGG’s closing share price 42.7 NTD on July 17, 2013; the day before ex-dividend day.

3. 2013 yield is based on YGG’s closing share price 146.5 NTD on June 23, 2014; the day before ex-dividend day.

4. 2014 yield is based on YGG’s closing share price 224.5 NTD on June 30, 2015; the day before ex-divided day.

5. 2015 yield is based on YGG’s closing share price 233 NTD on Mar 11, 2016

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28

Quarterly P&L (Consolidated) NTD$ million 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 Sales Revenue 1,169 1,415 1,631 1,684 1,636 1,949 1,787 1,834 1,863 2,188 2,129 1,942 Gross Profit 296 367 484 540 491 641 562 564 582 704 659 723 OP Profit 135 166 260 300 294 404 313 338 317 413 328 458 Income before tax 113 162 249 206 267 398 297 359 311 443 471 564 Net Income 85 124 187 145 208 300 226 268 233 308 369 439 EPS (NTD$) 0.72 1.05 1.58 1.23 1.76 2.54 1.91 2.27 1.97 2.61 3.12 3.72	Quarterly P&L (Consolidated) NTD$ million 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 Sales Revenue 1,169 1,415 1,631 1,684 1,636 1,949 1,787 1,834 1,863 2,188 2,129 1,942 Gross Profit 296 367 484 540 491 641 562 564 582 704 659 723 OP Profit 135 166 260 300 294 404 313 338 317 413 328 458 Income before tax 113 162 249 206 267 398 297 359 311 443 471 564 Net Income 85 124 187 145 208 300 226 268 233 308 369 439 EPS (NTD$) 0.72 1.05 1.58 1.23 1.76 2.54 1.91 2.27 1.97 2.61 3.12 3.72	Quarterly P&L (Consolidated) NTD$ million 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 Sales Revenue 1,169 1,415 1,631 1,684 1,636 1,949 1,787 1,834 1,863 2,188 2,129 1,942 Gross Profit 296 367 484 540 491 641 562 564 582 704 659 723 OP Profit 135 166 260 300 294 404 313 338 317 413 328 458 Income before tax 113 162 249 206 267 398 297 359 311 443 471 564 Net Income 85 124 187 145 208 300 226 268 233 308 369 439 EPS (NTD$) 0.72 1.05 1.58 1.23 1.76 2.54 1.91 2.27 1.97 2.61 3.12 3.72	Quarterly P&L (Consolidated) NTD$ million 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 Sales Revenue 1,169 1,415 1,631 1,684 1,636 1,949 1,787 1,834 1,863 2,188 2,129 1,942 Gross Profit 296 367 484 540 491 641 562 564 582 704 659 723 OP Profit 135 166 260 300 294 404 313 338 317 413 328 458 Income before tax 113 162 249 206 267 398 297 359 311 443 471 564 Net Income 85 124 187 145 208 300 226 268 233 308 369 439 EPS (NTD$) 0.72 1.05 1.58 1.23 1.76 2.54 1.91 2.27 1.97 2.61 3.12 3.72	Quarterly P&L (Consolidated) NTD$ million 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 Sales Revenue 1,169 1,415 1,631 1,684 1,636 1,949 1,787 1,834 1,863 2,188 2,129 1,942 Gross Profit 296 367 484 540 491 641 562 564 582 704 659 723 OP Profit 135 166 260 300 294 404 313 338 317 413 328 458 Income before tax 113 162 249 206 267 398 297 359 311 443 471 564 Net Income 85 124 187 145 208 300 226 268 233 308 369 439 EPS (NTD$) 0.72 1.05 1.58 1.23 1.76 2.54 1.91 2.27 1.97 2.61 3.12 3.72	Quarterly P&L (Consolidated) NTD$ million 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 Sales Revenue 1,169 1,415 1,631 1,684 1,636 1,949 1,787 1,834 1,863 2,188 2,129 1,942 Gross Profit 296 367 484 540 491 641 562 564 582 704 659 723 OP Profit 135 166 260 300 294 404 313 338 317 413 328 458 Income before tax 113 162 249 206 267 398 297 359 311 443 471 564 Net Income 85 124 187 145 208 300 226 268 233 308 369 439 EPS (NTD$) 0.72 1.05 1.58 1.23 1.76 2.54 1.91 2.27 1.97 2.61 3.12 3.72	Quarterly P&L (Consolidated) NTD$ million 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 Sales Revenue 1,169 1,415 1,631 1,684 1,636 1,949 1,787 1,834 1,863 2,188 2,129 1,942 Gross Profit 296 367 484 540 491 641 562 564 582 704 659 723 OP Profit 135 166 260 300 294 404 313 338 317 413 328 458 Income before tax 113 162 249 206 267 398 297 359 311 443 471 564 Net Income 85 124 187 145 208 300 226 268 233 308 369 439 EPS (NTD$) 0.72 1.05 1.58 1.23 1.76 2.54 1.91 2.27 1.97 2.61 3.12 3.72	Quarterly P&L (Consolidated) NTD$ million 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 Sales Revenue 1,169 1,415 1,631 1,684 1,636 1,949 1,787 1,834 1,863 2,188 2,129 1,942 Gross Profit 296 367 484 540 491 641 562 564 582 704 659 723 OP Profit 135 166 260 300 294 404 313 338 317 413 328 458 Income before tax 113 162 249 206 267 398 297 359 311 443 471 564 Net Income 85 124 187 145 208 300 226 268 233 308 369 439 EPS (NTD$) 0.72 1.05 1.58 1.23 1.76 2.54 1.91 2.27 1.97 2.61 3.12 3.72	Quarterly P&L (Consolidated) NTD$ million 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 Sales Revenue 1,169 1,415 1,631 1,684 1,636 1,949 1,787 1,834 1,863 2,188 2,129 1,942 Gross Profit 296 367 484 540 491 641 562 564 582 704 659 723 OP Profit 135 166 260 300 294 404 313 338 317 413 328 458 Income before tax 113 162 249 206 267 398 297 359 311 443 471 564 Net Income 85 124 187 145 208 300 226 268 233 308 369 439 EPS (NTD$) 0.72 1.05 1.58 1.23 1.76 2.54 1.91 2.27 1.97 2.61 3.12 3.72	Quarterly P&L (Consolidated) NTD$ million 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 Sales Revenue 1,169 1,415 1,631 1,684 1,636 1,949 1,787 1,834 1,863 2,188 2,129 1,942 Gross Profit 296 367 484 540 491 641 562 564 582 704 659 723 OP Profit 135 166 260 300 294 404 313 338 317 413 328 458 Income before tax 113 162 249 206 267 398 297 359 311 443 471 564 Net Income 85 124 187 145 208 300 226 268 233 308 369 439 EPS (NTD$) 0.72 1.05 1.58 1.23 1.76 2.54 1.91 2.27 1.97 2.61 3.12 3.72	Quarterly P&L (Consolidated) NTD$ million 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 Sales Revenue 1,169 1,415 1,631 1,684 1,636 1,949 1,787 1,834 1,863 2,188 2,129 1,942 Gross Profit 296 367 484 540 491 641 562 564 582 704 659 723 OP Profit 135 166 260 300 294 404 313 338 317 413 328 458 Income before tax 113 162 249 206 267 398 297 359 311 443 471 564 Net Income 85 124 187 145 208 300 226 268 233 308 369 439 EPS (NTD$) 0.72 1.05 1.58 1.23 1.76 2.54 1.91 2.27 1.97 2.61 3.12 3.72	Quarterly P&L (Consolidated) NTD$ million 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 Sales Revenue 1,169 1,415 1,631 1,684 1,636 1,949 1,787 1,834 1,863 2,188 2,129 1,942 Gross Profit 296 367 484 540 491 641 562 564 582 704 659 723 OP Profit 135 166 260 300 294 404 313 338 317 413 328 458 Income before tax 113 162 249 206 267 398 297 359 311 443 471 564 Net Income 85 124 187 145 208 300 226 268 233 308 369 439 EPS (NTD$) 0.72 1.05 1.58 1.23 1.76 2.54 1.91 2.27 1.97 2.61 3.12 3.72	Quarterly P&L (Consolidated) NTD$ million 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 Sales Revenue 1,169 1,415 1,631 1,684 1,636 1,949 1,787 1,834 1,863 2,188 2,129 1,942 Gross Profit 296 367 484 540 491 641 562 564 582 704 659 723 OP Profit 135 166 260 300 294 404 313 338 317 413 328 458 Income before tax 113 162 249 206 267 398 297 359 311 443 471 564 Net Income 85 124 187 145 208 300 226 268 233 308 369 439 EPS (NTD$) 0.72 1.05 1.58 1.23 1.76 2.54 1.91 2.27 1.97 2.61 3.12 3.72
NTD$ million	1Q13	2Q13	3Q13	4Q13	1Q14	2Q14	3Q14	4Q14	1Q15	2Q15	3Q15	4Q15
Sales Revenue	1,169	1,415	1,631	1,684	1,636	1,949	1,787	1,834	1,863	2,188	2,129	1,942
Gross Profit	296	367	484	540	491	641	562	564	582	704	659	723
OP Profit	135	166	260	300	294	404	313	338	317	413	328	458
Income before tax	113	162	249	206	267	398	297	359	311	443	471	564
Net Income	85	124	187	145	208	300	226	268	233	308	369	439
EPS (NTD$)	0.72	1.05	1.58	1.23	1.76	2.54	1.91	2.27	1.97	2.61	3.12	3.72

Notes: EPS calculations is based on 2015 stock share 118,140K.

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29

Appendix

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30

Compare of Nodularity & Metallurgical

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Graphite number≒300 Graphite number100-200

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Under-Nodulanzing

Graphite Floating

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The Castin Process g

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Castin A lications g pp

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Weldin Service g

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Assembl Service y

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A lications I pp

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A lications II pp

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Global metal castin out ut g p

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2013 Global metal casting output by materials

• Global casting output for 2013 is 103,230 thousand tons.

• The share of Gray iron, Ductile, Steel, Aluminum, Copper, 、 、 Others is 46.3% 24.3% 、 、 、 10.8% 14.9% 1.7% 2.0% respectively. Ductile cast iron has the highest growth.

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Others,
Copper
2.0%
casting,
1.7%
Aluminium
Casting,
14.9% Gray cast
Cast Steel, iron,
10.8% 46.3%
Ductile
cast iron,
24.3%
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Source ： Modern Casting Magazine, 2015

38

Scale Advantage

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2013 Primary Ductile Iron Producing Countries and Output

Million Tonnes 12 10.9 • YGG is substantially larger than the average local Chinese 10 foundry. In 2013, YGG’s ductile 8 cast iron output accounted for 6 1.6% of total Chinese output, 4.3 4 while there are nearly 30,000 1.6 1.4 2 foundries in China 1.0 0.9 0.7 0.7 0.7 0.4 0

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Source ： Modern Casting Magazine, 2015

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Main casted components in a wind turbine

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40

Source ： FTI intelligence, Dec 2014

YG’s com etition p

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41

41

Source ： FTI intelligence, Dec 2014

Global demand of castings for different turbine size

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Castings Share of total MW Wind Turbine Size (Kg/MW) in 2013 (%) < 1.5MW 12000 2.8% , 1.5MW 21000 24.6% , 1.51 – 2.5MW 17220 55.0% , 2.51 – 4.99MW 18178 15.5% , ≥ 5.0MW 21263 2.1% , Avera e wei ht 18169 100.0% g g ,

Source ： FTI intelligence, Dec 2014

42

Growth in size of wind turbines I

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Growth in size of wind turbines II

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Customer S
2.3MW
16 Tons
Customer A
5.0MW
67 Tons
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44

Wind Turbine OEM market share

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2014 Global Wind Turbine OEM Market Share	2014 Global Wind Turbine OEM Market Share	2014 Global Wind Turbine OEM Market Share	2014 Global Wind Turbine OEM Market Share		2014 Wind Turbine OEM Market Share in China	2014 Wind Turbine OEM Market Share in China	2014 Wind Turbine OEM Market Share in China
Rank	Company	Country	Market share%		Rank	Company	Market share%
1.	Vestas	Denmark	13.2%		1.	Goldwind 金風	18.9%
2	Goldwind	China	10.3%		2	United Power聯合動力	11.14%
3	Enercon(Senvion)	Germany	10.1%		3	Ming Yang明陽	8.81%
4	Siemens	Germany	8.0%		4	Envision 遠景	8.40%
5	Sulzon Group	India	6.3%		5	XEMC湘電	7.63%
6	GE	U.S.	4.9%		6	Shanghai Electric 上海電氣 (JV with Siemens)	7.47%
7	Gamesa	Spain	4.6%
8	United Power	China	3.9%		7	DEC 東方電氣	5.56%
9	Ming Yang	China	3.7%		8	HZ海裝風電	4.90%
10	Nordex	Germany	3.4%		9	Yunada遠達風電	3.85%
Source：GWEC, 2015					10	Sinovel華銳風電	3.38%
					18	Vestas	1.12%
					21	GE	0.39%
					23	Gamesa	0.26%

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Source ： China Wind Energy Association, 2015

45

US Unsubsidized Levelized Cost of Energy Comparison

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