YNM — Investor Presentation 2017

Nov 23, 2017

(2227:TT)

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Yulon Nissan Motor Co., Ltd.

Nov. 23th, 2017

All right reserved by Yulon Nissan Motor Co., Ltd. Do not use without any permission.

Confidentiality classification : Confidential

Safe Harbor Notice

1. This document is provided by Yulon-Nissan 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 future prospection 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 instruments or solicitation of an offer.

4. The copy right of this document belongs to the company and its affiliates. This document may not be directly or indirectly reproduced, redistributed or forwarded to any other person and may not be published in whole or in part for any purpose.

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P2 All right reserved by Yulon Nissan Motor Co., Ltd. Do not use without any permission. Confidentiality classification : Confidential
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AGENDA

1 Company Profile 2 Operation Briefing 3 Core Strategy 4 Cross-strait Market Forecast

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1

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Yulon-Nissan Motor profile

• ：

• Company name Yulon-Nissan Motor Co., Ltd.

 Establishment date：Oct. 22[nd] , 2003

 Chairman：Kenneth, K.T. Yen

 President：Leman, C.C. Lee

• Capital：3 billion NTD

• Employee Number：428 (2017/10)

Others Nissan Motor Yulon Motor

 Shareholder structure：

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營運範疇

Operation Scope

‧ ‧ 創新 速度 團隊

1. Full value chain operation of Nissan and Infiniti brand in Taiwan excluding manufacturing process

2. Joint cooperation with DongFeng Motor for PRC market development

Full value chain operation of 1 Domestic Business Nissan and Infiniti brand in Taiwan excluding manufacturing process 40% 廣州風神汽車有限公司 (Plant) 2 Overseas Investment （annual capacity 1250K units） 16.55% 風神襄陽汽車有限公司 (Plant) （annual capacity 250K units） 義展海外投資 33.12% 股份有限公司 風神汽車有限公司 (Sales Co.) 45% 深圳聯友科技有限公司（IT） 義華大陸投資 股份有限公司 49% 東風裕隆舊車置換有限公司 (Used Car）

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Corporate Vision

Become the benchmark company of “Product Innovation” & “Service Innovation” in the Cross-strait Auto Industry

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INFINITI- Imported Luxury Models

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Q30

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QX50

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Q50
Q60
Q70
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QX60

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QX70
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NISSAN- Imported Models

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GT-R

JUKE

370 Z

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MURANO

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NISSAN- Domestic Models

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iTIIDA

X-TRAIL

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SENTRA

ALL NEW LIVINA

TIIDA

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ALL NEW TEANA

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NEW MARCH

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NISSAN – 2017 SENTRA

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NISSAN- X-TRAIL

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NISSAN – iTIIDA SR

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INFINITI- Q50

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INFINITI Q30 都會跑旅．豪華掀背
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NISSAN-The Newest Marketing Program

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NISSAN-The Newest Service Program

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詳情請見NISSAN官網
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Consolidated Statements of Comprehensive Income

Currency:K$NTD

	2013	2013	2014	2014	2015	2015	2016	2016	2017Q3	2017Q3
Net Sales	31,486,050	100.0%	33,176,837	100.0%	33,218,394	100.0%	34,860,446	100.0%	26,623,179	100.0%
Gross Profit	5,448,850	17.3%	4,321,661	13.0%	5,303,727	16.0%	5,061,230	14.5%	4,852,281	18.2%
Operating Expenses	3,616,656	11.5%	3,536,563	10.7%	4,068,911	12.2%	3,859,193	11.1%	3,040,442	11.4%
Operating Income	1,832,179	5.8%	786,229	2.4%	1,234,816	3.7%	1,202,037	3.4%	1,811,839	6.8%
Income before Taxes	8,806,890	28.0%	8,026,677	24.2%	4,999,687	15.1%	5,586,104	16.0%	5,980,298	22.5%
Tax Expenses	1,506,893	4.8%	1,502,918	4.5%	833,786	2.5%	955,489	2.7%	1,016,257	3.8%
Income after Taxes	7,299,997	23.2%	6,523,759	19.7%	4,165,901	12.5%	4,630,615	13.3%	4,964,041	18.6%
Earings Per Share	24.33	─	21.75	─	13.89	─	15.44	─	16.55	─
Cash Dividend (NTD)	19.47	─	30.00	─	12.5	─	22.0	─	─	─
Dividend Paid Out Ratio	80.0%	─	137.9%	─	90.0%	─	142.5%	─	─	─

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P18 All right reserved by Yulon Nissan Motor Co., Ltd. Do not use without any permission. Confidentiality classification : Confidential
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Consolidated Balance Sheets

Currency:K$NTD

	2012	2013	2014	2015	2016	2017Q3
Current Assets	14,954,714	18,135,802	16,262,960	12,313,731	12,843,955	8,606,364
Fund and Investmemt (Long-term Equity)	10,379,966	14,989,267	17,734,336	16,353,618	14,659,211	13,543,002
Property, Plant and Equipment	37,182	39,962	42,387	95,288	94,878	92,874
Other Assets	1,958,517	2,153,934	2,466,864	2,416,398	2,141,704	1,870,155
Total Assets	27,330,379	35,318,965	36,506,547	31,179,035	29,739,748	24,112,395
Current Liabilities	3,150,089	5,172,523	6,369,203	6,989,699	6,310,765	1,978,941
Other Liabilities	3,564,997	5,105,965	3,206,832	2,234,158	1,874,640	2,586,757
Total Liabilities	6,715,086	10,278,488	9,576,035	9,223,857	8,185,405	4,565,698
Capital Stock	3,000,000	3,000,000	3,000,000	3,000,000	3,000,000	3,000,000
Capital Surplus	6,129,405	6,129,405	6,129,405	6,129,405	6,129,405	6,129,405
Retained Earnings	12,389,954	15,700,634	16,384,208	11,523,312	12,387,086	10,750,398
Other Adjustments	-904,066	210,438	1,416,899	1,302,461	37,852	-333,106
Total Shareholders' Equity	20,615,293	25,040,477	26,930,512	21,955,178	21,554,343	19,546,697
Book Value / Share	68.7	83.5	89.8	73.2	71.8	65.2

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P19 All right reserved by Yulon Nissan Motor Co., Ltd. Do not use without any permission. Confidentiality classification : Confidential
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Market Share Status

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• Nissan accumulative market share from Jan.

to Oct. this year is 10.0%.

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MTP Strategic Framework

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Strengthening Service Competitiveness

NISSAN Care APP

NREDI 2.1

IREDI

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愛車資訊 行車幫手
準時定保時間 中油油價
抵用券 國道路況
延長保固狀態 查詢
越修越便宜 儀表燈對照
圖資更新 呼叫道路救援
修改車主資料保修記錄 我的紅利
提供車主專屬紅利精
品展示、查詢累積紅
愛車服務 利點數
服務活動相關說明
準時定保/越修越便宜…
預約保修
服務據點 即時預約選取時段、服務廠、接待與技師
最新消息
車主快訊/品牌快訊 保修進度查詢
圖資更新/召修訊息 進 度/預計交車時間
首頁
收件匣 更多
活動訊息/個人訊息 中獎名單/設定/相關網路平台服務專線/意見反應
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Comfortable service in NISSAN Showroom

Owner’s events

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NISSAN Care APP

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NREDI & IREDI

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NREDI
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IREDI

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Showrooms upgrade: planning 78 / completed 12.

Showrooms upgrade planning 10 / completed 7

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Corporate Social Responsibility

Work Life Balance Award

CSR Award

ISO-14001 Certification

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Automobile Design Contest for College Students

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Environmental Education from Childhood

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NISSAN innovative technology—electric vehicle

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40kWh rechargeable lithium-ion battery 150 Horsepower up to 400km range ProPILOT Professional Pilot Parking e-Pedal

PERFORMANCE

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TECHNOLOGY

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Taiwan automobile market status

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50.5
29.6%
(43.0)
37.0 [41.4 ] [41.1 ] [43.0 ]
6.4% 36.8 35.5
35.7 31.9
28.8 [31.9 ]
12.0%
22.2 10.5% [15.5%] 35.4
4.3%
-0.9% [4.8%]
-3.6%
-10.5%
-29.3% -30.3%
（Jan.~Oct.）
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(excluding heavy trucks)

2017 global economic growth rate will be affected by the strong momentum of industrial production and will be expected to reach the highest level since 2012.

Because of the global economic expansion, the strong export growth ,and the better-than-expected domestic consumption, 2017 annual economic growth forecast of Taiwan was revised from 2.05% to 2.11% by the Directorate-General of Budget, Accounting and Statistics its forecast in August. However, considering the mitigation of the commodity tax support program, the annual TIV for 2017 is expected conservatively to reach 430,000 units(excluding heavy trucks).

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PRC automobile market status

(2,940) TIV volume(unit:10K) Growth rate

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（Jan.~Sep.）

※ sales volume including passenger and commercial vehicles

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Dongfeng Nissan Passenger Vehicle Company – Sales performance

767K units

862K units

2017

1,200K units

1,144K units

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2016 Actual 2017 FCST
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2016

THANK YOU FOR YOUR ATTENTION

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Confidentiality classification : Confidential