YH — Investor Presentation 2018

Nov 21, 2018

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YIEH HSING ENTERPRISE CO., LTD. 2018 Investor Conference

Stock Code:2007

November 21, 2018

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Disclaimer

This presentation is based on the information obtained from various sources which the Company believes to be reliable. But at some point in the future, there are a variety of factors which could cause actual results to differ materially from those statements. Therefore, please refer to the information on MOPS website as the main basis if any adjustment has been made. (http://mops.twse.com.tw/mops/web/index)

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Table of Contents

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• Company Overview

• Operating Performance

• Main Investment & Unrealized Gain

• Future Outlook

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COMPANY OVERVIEW

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INTRODUCTION

Time Establishment July 1978 Capital Investment 5.3 billion Chairman Lin-Maw Wu President Robert Sen-Long Chen Number of Employee 436 (Oct., 2018) Stock Time to Market October 4, 1988

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COMPANY OVERVIEW OPERATION PHILOSOPHY

"Innovation, Growth, Responsibility, and Sustainability"

[Introduced Japan's ][T][otal ][P][roductive ] Maintenance (TPM) to improve production performance and quality, and constantly pursuing growth and innovation, expecting and moving forward to become the most competitive manufacturer of wire rods.

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COMPANY OVERVIEW

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MILL LOCATION INTRODUCTION

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including 200 series, 300 series, 400 series, welding series including Carbon Steel series Alloy Steel series Free-Cutting series

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COMPANY OVERVIEW MILL LOCATION INTRODUCTION

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COMPANY OVERVIEW

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WIRE ROD MANUFACTURING PROCESS

Products Reheating furnace As rolled wire rod(HR) Billet Inspection Rolling carbon/stainless/alloy steel solution annealing As rolled annealed stainless steel wire rod (HRA) pickling As rolled pickled stainless steel wire rod (HRP) pickling As rolled annealed & pickled stainless steel wire rod solution annealing (HRAP)

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COMPANY OVERVIEW

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APPLICATIONS OF WIRE ROD Wire rods are widely used, mainly for downstream customers in processing into a wide range of screws, nuts, thin wire, springs, polished bars, welding wire and other products. They can be made into various industrial products, electronics, aerospace, transport , medical biochemical appliances, hand tools, home hardware appliances ... and other basic parts

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Stainless Linear Stainless Welding Steel
General Applications (Bolt, Nut)
Stainless Profiles/Polished Stainless Spring Steel Wire / Rod
Stainless Fine Wire
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OPERATING PERFORMANCE

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CONSOLIDATED INCOME STATEMENT

	2018Jan. ~ Sep.2017Jan. ~ Sep. 2017 2016 (amount) (amount) (amount) (amount) 6,798,724 6,065,039 7,993,007 7,272,512 355,567 175,962 267,247 198,235 167,817 (9,970) 12,929 (37,278) 31,420 (158,434) (184,748) (256,695) 37,519 (158,039) (184,153) (256,004) 0.07 (0.3) (0.35) (0.41) Amount Unit : NT$ thousand dollars	2018Jan. ~ Sep.2017Jan. ~ Sep. 2017 2016 (amount) (amount) (amount) (amount) 6,798,724 6,065,039 7,993,007 7,272,512 355,567 175,962 267,247 198,235 167,817 (9,970) 12,929 (37,278) 31,420 (158,434) (184,748) (256,695) 37,519 (158,039) (184,153) (256,004) 0.07 (0.3) (0.35) (0.41) Amount Unit : NT$ thousand dollars	2018Jan. ~ Sep.2017Jan. ~ Sep. 2017 2016 (amount) (amount) (amount) (amount) 6,798,724 6,065,039 7,993,007 7,272,512 355,567 175,962 267,247 198,235 167,817 (9,970) 12,929 (37,278) 31,420 (158,434) (184,748) (256,695) 37,519 (158,039) (184,153) (256,004) 0.07 (0.3) (0.35) (0.41) Amount Unit : NT$ thousand dollars	2018Jan. ~ Sep.2017Jan. ~ Sep. 2017 2016 (amount) (amount) (amount) (amount) 6,798,724 6,065,039 7,993,007 7,272,512 355,567 175,962 267,247 198,235 167,817 (9,970) 12,929 (37,278) 31,420 (158,434) (184,748) (256,695) 37,519 (158,039) (184,153) (256,004) 0.07 (0.3) (0.35) (0.41) Amount Unit : NT$ thousand dollars
Consolidation	2018Jan. ~ Sep.	2017Jan. ~ Sep.	2017	2016
	(amount)	(amount)	(amount)	(amount)
Operating Revenue	6,798,724	6,065,039	7,993,007	7,272,512
Gross Profit	355,567	175,962	267,247	198,235
Net Operating Income (profit / loss)	167,817	(9,970)	12,929	(37,278)
Net Income (profit / loss)	31,420	(158,434)	(184,748)	(256,695)
Total comprehensive profit / loss for this period attributable to Owners of theparent company	37,519	(158,039)	(184,153)	(256,004)
Earning per Share(dollars)	0.07	(0.3)	(0.35)	(0.41)

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OPERATING PERFORMANCE

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OVER THE YEARS REVENUE AND PRODUCTION CHANGES MAP

Revenue Unit:

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Revenue Unit: Production Unit:
NT$ 100 million 10,000 tons / year
90 45
79.9
38.5
80 75.0 40
72.3 72.7
68.0
70 35
31.9 31.9
31.3
60.4
60 28.2 30
50 25
19.4
40 20
30 15
20 10
10 5
- -
2013 2014 2015 2016 2017 2018 Jan~Sep
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OPERATING PERFORMANCE

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PROPORTION OF REVENUE 2018 JAN.~SEP.

Non-Stainless Wire Rod 20.5% 21%

5.8% 6% Other Income

Stainless Steel Wire Rod 73% 73.7%

Export revenue

34.6%

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Domestic revenue 65.4%

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OPERATING PERFORMANCE

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NON-STAINLESS STEEL MARKET SALES AREA DISTRIBUTION

2018 JAN.~SEP.

TAIWAN 100%

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OPERATING PERFORMANCE

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STAINLESS STEEL MARKET SALES AREA DISTRIBUTION

2018 JAN.~SEP.

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EUROPE
8.1%
USA
ASIA
TAIWAN
13.1%
24.8%
53.1%
Other
0.9%
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MAIN INVESTMENT & UNREALIZED GAIN

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INVESTMENT PROJECT : E-SKY LAND(HALL A) LOCATION

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A館
pinying
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MAIN INVESTMENT & UNREALIZED GAIN E-SKY LAND ALL SHOPPING CENTER AND (H A)-BOUTIQUE INTERNATIONAL TOURIST HOTEL

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Company Operation Item Cooperator Remarks Great Emperor Boutique The investment has built Hotel Co., Ltd. Shopping Center 31 floors above ground and 6 floors underground. Kingsgarden International Marriot The total floor area of the International Tourist Hotel Group building is 77,000 pings. Co., Ltd.

The development project is expected to trial operation in end of 2019 .

◎U nrealized Gain from Disposal of Land

Yieh Hsing sold in 2012 in Long-Don section of Kaohsiung City Land to these two subsidiaries, and generate unrealized gain of NT $ 4.96 billion.

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FUTURE OUTLOOK

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1. The continuous implementation of supply-side reforms and the expansion of enforcement zones with environmental protection policies in Mainland China will present a positive development situation for real market competition.

2. Our products have been marketed for many years, and the quality and service have been well received by customers. In addition, we continue to promote Japan's lean management (TPM) to have further increase of production performance and strengthen market competitiveness.

3. We continue to actively explore overseas billet source to optimize raw material supply, provide customized products and services, expand the operation of different customer groups, and seek the best cost combination and operational comprehensive performance.

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~ Thank You ~

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