YL — Investor Presentation 2020

Nov 18, 2020

TW ： 2201

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YULON MOTOR CO., LTD. Investor Conference

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Copyright © Yulon Motor, All rights reserved.

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Disclaimer Statement

1. This document is provided by Yulon Motor Co., Ltd. (the “Company"). Except for the numbers and information included in the Company's financial statements, the information contained in this document has not been audited or reviewed by any accountant or independent expert. The Company makes no express or implied representations or warranties as to the fairness, accuracy, completeness, or correctness of such information or opinions. This document is provided as of the date herein and will not be updated to reflect any changes hereafter. The Company, its affiliates and their representatives do not accept any responsibility or liability for any damage caused by their negligence or any other reasons, nor do they accept responsibility or liability for any loss or damages arising from the use of this document or the information contained herein or anything related to this document.

2. This document may contain forward-looking statements, including but not limited to all statements that address activities, events or developments that the Company expects or anticipates to take place in the future based on the projections of the Company toward the future, and various factors and uncertainness beyond the Company's control. Therefore, the actual results may differ materially from those contained in the forward-looking statements.

3. This document is not and cannot be construed as an offer to purchase or sell securities or other financial products or solicitation of an offer. ‡

4. The copyright of this document is owned by the Company and / or our affiliates and may not be directly or indirectly reproduced, redistributed or forwarded to any other person and may not be published in whole or in part for any purpose.

Copyright © Yulon Motor, All rights reserved.

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Agenda

Agenda Time Speaker - Opening Chien Hui Li – Senior Vice President Financial Results & Future Prospects 10 min Wen Yi Lo – Associate Vice President[Vice President ] 20 min[ Chien Hui Li – Senior] Q&A Wen Yi Lo – Associate Vice President

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2020/1~10 Sales Volume in Taiwan(excluded heavy turcks)

Brand		Sales volume	Sales volume	Sales volume	Sales volume	Growth rate	Growth rate	Market share %	Market share %	Market share %
	Domestic /Imported	2020/1~10		2019/1~10		2020/1~10	Total	2020/1~10	2019/1~10	%
		Units	Total	Units	Total
YULON Nissan Co.	Domestic	26,364	28,131	27,740	30,282	-5.0%	-7.1%	8.1%	7.4%	-0.7%
	Imported	1,767		2,542		-30.5%		0.7%	0.5%	-0.2%
LUXGEN	Domestic	3,864	3,864	3,565	3,565	8.4%	8.4%	1.0%	1.1%	0.1%
	Imported	0		0		0.0%		0.0%	0.0%	0.0%
MITSUBISHI	Domestic	38,481	39,860	38,006	39,531	1.2%	0.8%	11.1%	10.9%	-0.2%
	Imported	1,379		1,525		-9.6%		0.4%	0.4%	0.0%
YULON GROUP subtotal	Domestic	68,709	71,855	69,311	73,378	-0.9%	-2.1%	20.2%	19.4%	-0.8%
	Imported	3,146		4,067		-22.6%		1.2%	0.9%	-0.3%
TOYOTA	Domestic	57,021	119,361	56,332	113,916	1.2%	4.8%	16.5%	16.1%	-0.4%
	Imported	62,340		57,584		8.3%		16.8%	17.6%	0.8%
FORD	Domestic	18,886	21,624	13,856	16,754	36.3%	29.1%	4.0%	5.3%	1.3%
	Imported	2,738		2,898		-5.5%		0.8%	0.8%	0.0%
MAZDA	Domestic	0	12,023	0	11,957	-	0.6%	0.0%	0.0%	0.0%
	Imported	12,023		11,957		0.6%		3.5%	3.4%	-0.1%
HONDA	Domestic	21,376	23,646	23,701	25,767	-9.8%	-8.2%	6.9%	6.0%	-0.9%
	Imported	2,270		2,066		9.9%		0.6%	0.6%	0.0%
HYUNDAI	Domestic	7,632	9,034	7,963	9,268	-4.2%	-2.5%	2.3%	2.2%	-0.1%
	Imported	1,402		1,305		7.4%		0.4%	0.4%	0.0%
BENZ&BMW	Domestic	0	40,526	0	39,349	0.0%	3.0%	0.0%	0.0%	0.0%
	Imported	40,526		39,349		3.0%		11.5%	11.4%	-0.1%
OTHERS	Domestic	4,421	56,583	4,298	51,955	2.9%	8.9%	1.3%	1.2%	-0.1%
	Imported	52,162		47,657		9.5%		13.9%	14.7%	0.8%
Total market	Domestic	178,045	354,652	175,461	342,344	1.5%	3.6%	50.2%	51.3%	-1.1%
	Imported	176,607		166,883		5.8%		49.8%	48.7%	1.1%

The sales volume in Jan.~Oct. 2020 increased by 3.6% year on year,The proportion of CKD and CBU cars is about 50.2% ： 49.8%. Main factors ： (1)Exchange rate factors and the scale of mass production of models make the price of imported cars more competitive.(2)European brands launched a variety of entry-level models. In the short term, the ratio of domestic and import structure is still expected to be 50%：50%.

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Auto Sales in Taiwan Through the Years

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TIV volume (unit: 10K) Growth rate (%) YoY(%)
50.0 40%
41.4
45.0 41.1 43.0 43.5 42.3 42.7 43.1 (F) 30%
40.0 -10.5% 36.8 37.0
15.5% 19.4% 35.5 35.5 20%
35.0 31.9 31.9 17.8%
13.8%
30.0 28.8 9.4% 15.5% 10%
25.0 22.2 -30.3% -10.5% 1.8% 12.0% -1.2% 11.9%4.8% 0.6% -1.8% -1.6% 3.6% 0%
-4.2% -0.7% 0.8% 1.0%
20.0 -8.7% -0.9% -2.6% -10%
15.0 6.4%
-20%
10.0
-27.7%
-30%
5.0
-29.3%
0.0 -40%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Jan.~Oct.
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※The heavy trucks are excluded in TIV calculation

1. The sales volume in Jan~Oct. 2020 is 355K units, and 3.6% increase rate year on year.

2. Due to the COVID-19 epidemic slowdown,brands launched a variety of level models,increased sales promotion inducement, the overall Taiwan auto market is estimated to be 431K units in 2020, and 1% increase rate year on year.

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Auto Sales in MainlandChina Through the Years
TIV volume (unit: 10K) Growth rate (%) YoY(%)
3,500.0 45.5% 50.0%
3,000.0 2,802.8 [2,888.0 ] 2,808.1 40.0%
37.1% 32.4% 34.8% 2,459.8 2,576.9
2,500.0 2,198.4 2,349.2 2,240(F) 30.0%
1,969.9
2,000.0 1,850.5 [1,930.6 ] 13.9% 20.0%
1,806.2 13.9%
13.5% 14.2%
1,500.0 6.7% 11.1% 1,364.5 4.3% 6.9% 4.7% 10.0%
2.5% 6.6% 3%
3.3% 3.6% 4.1%
938.1 1.5% -2.8%
1,000.0 -0.2% 0.0%
-8.2% -4.6%
-13.1%
500.0 -9.7% -10.0%
0.0 -20.0%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Jan.~Oct.
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Auto Sales in MainlandChina Through the Years

※The heavy trucks are included in TIV calculation

1. The sales volume in Jan.~Oct. 2020 of Mainland China is 19.69 million units, include 15.49 million units passenger car which is declined 9.9% year on year.

2. Due to the COVID-19 epidemic slowdown, promote consumption policy, and the auto market has maintained a positive growth of more than 10% for five consecutive months, It is estimated that the overall auto market in China will reach 22.4 million units, and about 13.1% decrease rate year on year.

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Consolidated Comprehensive Income Statements

(NT $ Million)

(1~9) (1~9)

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Consolidated Balance sheet Statements

(NT $ Million)

(9/30) (12/31)

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Consolidated Cash Flow Statements

(NT $ Million)

(1~9) (1~9)

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Commercial Real Estate Development - Xindian

1.The building floors are B3 ~ 8F, about 43,000 pings. B1F ~ 4F will rent Eslite, 7F ~ 8F rent VIESHOW, and 5F~6F will be reserved for additional leasing.

2.The construction progress has completed the ground floor steel structure engineering (detailed photos), and the construction license change has been approved in September 2020. After construction period extension of application is approved, it is expected that the usage 。 license will be obtained in Q3 2021 and the mall will open before Q4. in 2022.

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Aerial view of Green Lake Park

Beam raising ceremony Copyright © Yulon Motor, All rights reserved.

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THANK YOU FOR WATCHING

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