YL — Investor Presentation 2020

Apr 15, 2020

TW：2201

YULON MOTOR CO., LTD.?Investor Conference

Notes:

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Agenda

Agenda	Time	Speaker
Opening	-	Chen Hsiang Yao – President
Financial Results & Future Prospects	10 min	Wen Yi Lo – Associate Vice President
Q&A	20 min	Chen Hsiang Yao – President Wen Yi Lo – Associate Vice President

Financial Results & Future Prospects

2020/1~3 Sales Volume in Taiwan

The sales volume in Jan.~Mar. 2020 increased by 8% year on year,The proportion of CKD and CBU cars is about 48%：52%. Main factors:(1)Exchange rate factors and the scale of mass production of models make the price of imported cars more competitive.(2)The product portfolio of imported cars is diversified and the benefits of new model launch.

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Auto Sales in Taiwan Through the Years

42.2 (F)

The sales volume in Jan~Mar. 2020 is 101K units, and 8% increase rate year on year.
“Chung-Hua Institution for Economic Research“ and “Taiwan institute of Economic Research” predicted respectively economic growth rate of Taiwan are about 2.44% and 2.67% in Jan. 2020. The “Directorate General of Budget(in Feb.)” and “Central Bank(in Mar.)” forecast respectively the economic growth rate of Taiwan is about 2.37% and 1.92% showing the economic grow associated with COVID-19 epidemic is not effectively controlled in 2020.
Due to the COVID-19 epidemic, the overall Taiwan auto market is estimated to be 422K units in 2020, and 1.1% decrease rate year on year.

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Auto Sales in MainlandChina Through the Years

2,000 (F)

The sales volume in Jan.~Feb. 2020 of Mainland China is 2.23 million units, include 1.83 million units passenger car which is declined 43.6% year on year.
“IHS Markit” and “International Monetary Fund” predicted economic growth rate of Mainland China are 5.6% and 3.9% in 2020 respectively. The main reason is that COVID-19 epidemic ,and Mainland China-US trade war has affected corporate investment and consumer confidence.
Coming from the COVID-19 epidemic that has not been effectively controlled and the automotive component value chain has not been fully restored, It is estimated that the overall auto market in China will reach 20.0 million units, and 22.4% decrease rate year on year.

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Consolidated Comprehensive Income Statements

(NT $ Million)

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Consolidated Balance Sheets

(NT $ Million)

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Luxgen URX marketing events
The new car model of Luxgen 2020,the large space and high-tech safety equipment of the URX 5 + 2, the seven-seater flagship accounted for 30% of the total sales. After listening to the voices of consumers, in addition to flagship models, in April, URX launched the 7-seater ARD smart line under NTD $1 million to provide consumers with more diversified 7-seater SUV car purchase options.

Notes:

第一季發表U5/U6 「迎賓座椅」與 M7 第二排獨立雙座「Ottoman 座椅」
第二季發表 S5 GT/GT220
第三季發表全新 5+2人座 URX
第三季至 2020 上半年：二款新電動車 U5 EV+ 與 S3 EV+
2020 上半年推出代號 MBU、全新跨界 SUV

Joint Venture between YULON and HON HAI
1.Signed a strategic cooperation agreement with Hon Hai on 2/7, and signed a joint venture agreement with Hon Hai on 3/6 (as attachment)。Yulong and Hon Hai established a joint venture company, Hon Hai invested NTD $7.944 billion, accounting for 51% of the shares, and Yulong invested NT $ 7.632 billion in open platform assets are used to offset the 49% share price.
2.In the future, the joint venture will promote a new business model of open platforms and sharing in the global automotive industry, and combine the complementary advantages of both parties in vehicle development and ICT industry resources to provide overall solution services to global target customers.

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第一季發表U5/U6 「迎賓座椅」與 M7 第二排獨立雙座「Ottoman 座椅」
第二季發表 S5 GT/GT220
第三季發表全新 5+2人座 URX
第三季至 2020 上半年：二款新電動車 U5 EV+ 與 S3 EV+
2020 上半年推出代號 MBU、全新跨界 SUV

Real Estate Development - Xindian
Commercial district
In October 2019, the design was changed to cancel the residential part, and only reserved the mall space. The building floors are B3 ~ 8F, about 43,000 pings. B1F ~ 4F will rent Eslite, 6F ~ 8F rent VIESHOW, and 5F will be reserved for additional leasing.
Commercial district has started construction in Q2 2017, diaphragm wall, pile engineering, 1F RC structural engineering has been completed, and is now being implemented B1F reverse work method now(as attachment)。 It is expected that Q3 will be delivered to customers for decoration, and the Q4 mall will be opened in 2021.

Residential district
According to the resolution of the 10/17 interim board of directors of the company, postponed development and completed the cancellation application on 2019/11/20,
And it will be re-planning according to market demand situation.

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VIESHOW CINEMAS

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