YP — Investor Presentation 2017

Nov 23, 2017

==> picture [114 x 40] intentionally omitted <==

Security Code ： 2023

YIEH PHUI ENTERPRISE CO., LTD.

==> picture [570 x 330] intentionally omitted <==

----- Start of picture text -----

2017 Investors Conference
----- End of picture text -----

P.1/23

DISCLAIMER

==> picture [114 x 40] intentionally omitted <==

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)

P.2/23

==> picture [114 x 40] intentionally omitted <==

==> picture [60 x 59] intentionally omitted <==

----- Start of picture text -----

Ⅰ
----- End of picture text -----

==> picture [60 x 59] intentionally omitted <==

----- Start of picture text -----

Ⅱ
----- End of picture text -----

==> picture [60 x 59] intentionally omitted <==

----- Start of picture text -----

Ⅲ
----- End of picture text -----

Introduction

O eration Outline p

Future Develo ment p

==> picture [116 x 126] intentionally omitted <==

P.3/23

1.1 Basics of Yieh Phui Enter rise p

==> picture [114 x 40] intentionally omitted <==

NO. 369, Yuliao Road, Qiaotou District, Kaohsiung City 82544, Address Taiwan, R.O.C.  President of Yieh Founder and Phui Enterprise Chairman  Chairman of Yieh Phui (China) Mr. Lin, I-Shou Mr. Wu, Lin-Maw Number of Date of Founding March 20, 1986 Employees 1,420 （ Sep. 30, 2017 ） Capital(NT$) Registration Date July 28, 1995 18.21 billion （ Sep. 30, 2017 ） 2014 29,203 2014 60,567 Consolidated Revenue 2015 22,224 2015 49,785 revenue (NT$, million) 2016 23,868 2016 52,847 (NT$, million) 2017~Q3 22,468 2017~Q3 53,320

1.1 Basics of Yieh Phui Enter rise p

==> picture [114 x 40] intentionally omitted <==

Products ：

Hot-Dip Zn Coated/5% Al-Zn Coated/55% Al-Zn Coated Steel Coils and Pre-Painted Steel Coils

Production Procedures ：

==> picture [690 x 254] intentionally omitted <==

----- Start of picture text -----

Material Procedures Products
Hot-Rolled Hot-Rolled Pickled
Steel Coils Pickling Steel Coils
Warehouse
Cold-Rolled Full
Cold Rolling
Hard Steel Coils outbound
Finished
Products
Hot-Dip Warehouse
Galvanizing Galvanized Steel Inspection
inbound
Coils
Pre-painted
Coating Steel Coils
----- End of picture text -----

==> picture [185 x 126] intentionally omitted <==

==> picture [176 x 118] intentionally omitted <==

==> picture [190 x 122] intentionally omitted <==

P.5/23

1.1 Basics of Yieh Phui Enter rise p

==> picture [114 x 40] intentionally omitted <==

Application of galvanized steel coil

==> picture [143 x 104] intentionally omitted <==

==> picture [143 x 107] intentionally omitted <==

Automobile Parts 0.50%

Farming Usages 1.99%

Filters

Construction/ Interior Decorating 50.66%

Grain Bins 3C/appliances 7.23%

Pipes 7.93%

==> picture [144 x 111] intentionally omitted <==

、 General (substrate forming) 31.68%

Decking

==> picture [138 x 103] intentionally omitted <==

==> picture [145 x 103] intentionally omitted <==

==> picture [144 x 118] intentionally omitted <==

C, Z Purlins

C, Z Purlins

Solar Bracket

P.6/23

1.1 Basics of Yieh Phui Enter rise p

==> picture [114 x 40] intentionally omitted <==

Application of pre-painted steel coil

==> picture [162 x 125] intentionally omitted <==

Hospital and office appliances Anti- Microbial

Farming usages 0.22% Automobile Parts 0.45% Appliances 2.75% Interior Decorating 2.84%

==> picture [126 x 154] intentionally omitted <==

Plant Buildings

Construction 93.74% Home Appliances

==> picture [165 x 119] intentionally omitted <==

Garage Doors

P.7/23

1.2 Distribution of the revenue in 2016

==> picture [114 x 40] intentionally omitted <==

Consolidated revenue for 2016 NT$52.847 billion

Others 3.57%

AWID 0.44%

EMMT 0.91% Lianfa(Tianjin) 1.88% Shin Yang 3.66%

Yieh Hsing 13.76% Yieh Phui (China) 32.66%

==> picture [338 x 361] intentionally omitted <==

Yieh Phui Enterprise 43.11%

P.8/23

1.3 Consolidated revenue of 2016 b roducts y p

==> picture [114 x 40] intentionally omitted <==

Consolidated revenue of Galvanized/coated steel is over 70%

Hot-Rolled Others 8.01% Cold-Rolled Steel Pickled Steel Coils 1.31% Coils 0.02%

==> picture [172 x 312] intentionally omitted <==

==> picture [146 x 192] intentionally omitted <==

Hot-Dip Galvanized Steel Coils 40.21%

Electronics 1.40%

Project Income 1.58% Steel Pipes 3.51% Wire Rod 12.98%

Pre-painted Steel Coils 30.99%

P.9/23

1.4 Consolidated revenue of 2016 by areas

==> picture [114 x 40] intentionally omitted <==

Facing competition without national boundaries, Yieh Phui spares no effort in developing global markets by means of its competence. So far Yieh Phui has successfully sold its products to 135 countries already, 69% of whole 195 countries in the word, reaching as far as Africa, including Ethiopia, South Africa, Madagascar and Oceania (such as Fiji), East Europe, Central Asia, South America, and other countries in Europe, Asia, and America.

==> picture [399 x 180] intentionally omitted <==

----- Start of picture text -----

Europe/Africa
4.0%
ASIA Taiwan
46.0% 34.1%
Others
2.2%
----- End of picture text -----

==> picture [80 x 40] intentionally omitted <==

----- Start of picture text -----

America
13.7%
----- End of picture text -----

P.10/23

==> picture [114 x 40] intentionally omitted <==

==> picture [60 x 59] intentionally omitted <==

----- Start of picture text -----

Ⅰ
----- End of picture text -----

==> picture [60 x 59] intentionally omitted <==

----- Start of picture text -----

Ⅱ
----- End of picture text -----

==> picture [60 x 59] intentionally omitted <==

----- Start of picture text -----

Ⅲ
----- End of picture text -----

Introduction

O eration Outline p Future Develo ment p

==> picture [116 x 126] intentionally omitted <==

P.11/23

2.1 Chart for the trend of consolidated revenue

==> picture [114 x 40] intentionally omitted <==

Most recent consolidated revenue for Yieh Phui

NTD, million 70,000

==> picture [490 x 268] intentionally omitted <==

----- Start of picture text -----

60,000
60,567
54,861
50,000 52,847 53,320
49,785
40,000
30,000
20,000
10,000
0
2013 2014 2015 2016 2017~Q3
----- End of picture text -----

 The consolidated revenue of the first three quarters of 2017 is NT$53,320 million with growth rate of 41% than the same period of 2016.

==> picture [54 x 13] intentionally omitted <==

----- Start of picture text -----

P.12/23
----- End of picture text -----

2.2 Chart for the trend of consolidated o eration p

==> picture [114 x 40] intentionally omitted <==

 Sales gross margin

==> picture [324 x 183] intentionally omitted <==

----- Start of picture text -----

16.00%
13.64%
12.00%
9.50%
7.32% 7.44%
8.00% 6.71%
4.00%
0.00%
2013 2014 2015 2016 2017~Q3
----- End of picture text -----

 Consolidated profit after tax

==> picture [329 x 194] intentionally omitted <==

----- Start of picture text -----

3,000
2,379
NTD, million
2,000
1,303
941
1,000
363
0
2013 2014 2015 2016 2017~Q3
-1,000
(1,615)
-2,000
----- End of picture text -----

==> picture [336 x 214] intentionally omitted <==

----- Start of picture text -----

 Earnings per Shares
NTD
(Equity accrued to the parent company) H1
2.00
1.50 1.46
1.00
0.74 0.71
0.50
0.47
0.00
2013 2014 2015 2016 2017~Q3
(0.50) -0.56
(1.00)
----- End of picture text -----

P.13/23

2.3 Consolidated profitability and financial structure

==> picture [114 x 40] intentionally omitted <==

==> picture [692 x 455] intentionally omitted <==

----- Start of picture text -----

Item/Year 2013 2014 2015 2016 2017~Q3
Sales Revenue 54,861 60,567 49,785 52,847 53,320
Gross Profit 3,683 4,436 3,704 7,206 5,063
Sales Gross Profit Margin 6.71% 7.32% 7.44% 13.64% 9.50%
Sales Income 1,121 1,442 862 3,844 1,892
Net Income before Tax 615 1,360 (1,597) 3,372 1,726
Net Income 363 941 (1,615) 2,379 1,303
Net Income Attributable
to: Owners of the Parent 772 1,239 (954) 2,502 1,295
Company
Net Income Attributable
to: Non-controlling (409) (298) (661) (123) 8
Interest
Earnings per Share 0.47 0.74 (0.56) 1.46 0.71
Debt /Assets (%) 56.18 59.32 62.02 63.13 64.93
Current Ratio(%) 96.94 94.54 120.89 102.10 101.17
Quick Ratio(%) 60.09 57.19 77.76 58.52 52.08
Interest Expense 1,000 904 851 790 850
Shares (thousand shares) 1,635,342 1,668,049 1,718,090 1,718,090 1,821,176
(IFRS Unit: NT$/Million)
----- End of picture text -----

P.14/23

2.4 The trend of the sales of coated steel roducts p

==> picture [114 x 40] intentionally omitted <==

The trend of the growth of the global sales of coated products of Yieh Phui

10,000 tons Sales of Yieh Phui Sales of Yieh Phui(China) Consolidated Total Sales

0 20 40 60 80 100 120 140 160 180 200	128 129 125 119 117 119 95 90 98 100 95 93 100 86 93 78 0 0 0 11 49 53 48 54 68 69 67 74 84 81 85 61 128 129 125 130 166 172 143 144 166 169 162 167 184 167 178 139 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017Q3
Note: The chart above does not include sales of as-cold-rolled/cold-rolled annealed steel coils of Yieh Phui (China). The first three quarters of as-cold-rolled/cold-rolled annealed steel coils of Yieh Phui (China) is 489,000 tons or RMB 1.78 billion.

2.5 The rice trend of materials p

==> picture [114 x 40] intentionally omitted <==

The price trend of hot-rolled steel coils

NTD/Ton

Taiwan

China

==> picture [453 x 398] intentionally omitted <==

----- Start of picture text -----

20,000
15,000
10,000
5,000
數據來源：公司內部資料 Source: Yieh Phui
0
RMB/Ton
5,000
4,000
3,000
2,000
1,000
0
Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17
Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17
----- End of picture text -----

RMB/Ton

， Source: Custeel.com(Shanghai Market, Benxi Steel SPHC2.75mm)

P.16/21

2.6 The rice trend of roducts p p

==> picture [114 x 40] intentionally omitted <==

NTD/Ton

==> picture [705 x 464] intentionally omitted <==

----- Start of picture text -----

40,000
Pre-painted Steel Coils
30,000
Domestic
20,000
(Taiwan)
10,000 Hot-Dip Galvanized Steel Coils
0
FOB USD/Ton
1200
Pre-painted Steel Coils
900
Export
600
(America)
Hot-Dip Galvanized Steel Coils
300
0
RMB/Ton
8000 Pre-painted Steel Coils
China 6000
4000
(Sales of Yieh Phui (China))
2000 Hot-Dip Galvanized Steel Coils
0
P.17/21
Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17
----- End of picture text -----

==> picture [114 x 40] intentionally omitted <==

==> picture [60 x 59] intentionally omitted <==

----- Start of picture text -----

Ⅰ
----- End of picture text -----

==> picture [60 x 59] intentionally omitted <==

----- Start of picture text -----

Ⅱ
----- End of picture text -----

==> picture [60 x 59] intentionally omitted <==

----- Start of picture text -----

Ⅲ
----- End of picture text -----

Introduction

O eration Outline p Future Develo ment p

==> picture [116 x 126] intentionally omitted <==

P.18/23

3.1 Pros ects for ma or markets p j

==> picture [114 x 40] intentionally omitted <==

Taiwan

• 1) The consumption of coated steel has been diminished due to negative investment growth of construction projects in each scale of industries as well as the new policy of farmland buildings and the new labor laws. A recuperation is fully upon a wise and reform measure at government’s end.

• 2) The cost of coated steel has been driven by the increasing prices of raw materials on hot rolled steel as well as Zn & Al ingots. Downstream customers are getting conservative in their purchase because the price is too high and the demand for their products is low.

• 3) The domestic market of coated steel is getting stabilized given the case that the imported galvanized products from South Korea and China have been restrained by anti-dumping duties.

• In 2017 China has worked hard on

• 4) reducing extra-capacities, severely restricting production based on environmental concerns which might be of assistance on the sustainability of domestic market.

P.19/23

3.1 Pros ects for ma or markets p j

==> picture [114 x 40] intentionally omitted <==

China

• 1) Supply: China has continued its supply side reform and up to July has cut 50 million tons of capacity, in addition to clamping down on 100-120 million tons of mid-frequency furnace facilities in first half of 2017. For the second half of 2017, China will try to clamp down on “small, scatter, chaos, dirty” factories and has imposed rigorous restriction and has to keep the winter heating demand satisfied as required environmental friendly. The steel production in Beijing, Tianjin, Hebei and the adjacent provinces must cut 50% to ameliorate the situation of over-supply. In addition, banning construction during autumn and winter, earthen works, and dismantling houses all make the forecast of the supply/demand ever difficult.

• There may be more investments in infrastructure, the projects related “one belt, one road” and the private sector, showing a bright picture in 2018.

• 2) On the price: the demand in the winter of 2017 is weak, particularly the fourth quarter. However, the production restraint in the upstream has caused the prices of raw materials strengthen and rendered downstream producers to suffer, pressuring on our business.

• 3) Due to the anti-dumping concerns on China and domestic price increase, China’s steel export reduced dramatically; a drop of 30% from Jan to Oct compared with 2016.

P.20/23

3.1 Pros ects for ma or markets p j

==> picture [114 x 40] intentionally omitted <==

America

European Union

• 1) The monthly import of coated steel to the US has ramped up to about 320,000 to 350,000 tons since April 2017, which has been more than the levels before the implementation of anti-dumping, the main reasons to it are the speculations before the section 232 as well as the new emerging

• offshore suppliers. The slow fourth quarter has forced the domestic steel mills lower the price with the goal to better utilize the capacity. It is estimated that 2018 will be more stabilized and expected to go up in price.

1) Taking the advantage of the anti-dumping measures against China import, which the provisional duties has been announced in September, the sales to Europe has increased. However, even though the of has the economy Europe improved, demand of import coated steel is weakened by the depreciations of British Pound and Euro.

2)

The major concern is that the European customers has been conservative due to the market slack in China, reducing the willingness to bid or buy.

• 2) On Nov 3, 2017 the Department of Commerce of the US has conducted the 3)

• first review on anti-corrosion products and Yieh Phui has made the necessary

• preparation.

• 3) The US DOC did not announce its decision of Anti-circumvention against Vietnam (not sure when it will be done) and the determination of section 232 is expected to defer to Jan 2018.

Europe customers still have substantial inventory and India, Vietnam coupled with Turkey has tried to grab market share with low prices. Yieh Phui has made every effort to keep loyal customers.

P.21/23

3.1 Pros ects for ma or markets p j

==> picture [114 x 40] intentionally omitted <==

South East Asia

Australia

• 1) Steel firms in Vietnam has continued to expand capacities of coated steel and has impacted the market share of Yieh Phui in South East Asia and other markets. Yieh Phui has secured the markets with stable quality and satisfactory services.

• 2) Customers are buying on fear due to the price volatilities of the spot and futures of hot-rolled steel in China, aiming only to get minimal safety level of inventories. Recently China’s steel firms have tried to stabilize the price. The price in China’s domestic market is high and the steel firms intend to hike the price a little, beneficial to the stabilization of the market in this region.

• 1) Australia’s economic indicators in third quarter are not good as expected. The Australian dollar has depreciated from 0.804 to 0.77 against US dollar, increasing the cost for customers there.

2) On Nov 3, 2017 Anti-Dumping Review Panel of Australia announced to revoke the 84.47% import duty on the galvanized steel of Yieh Phui and the rate to zero changed for Yieh Phui, a great news for the sales in 2018.

P.22/23

3.2 The investment for the most recent years

==> picture [114 x 40] intentionally omitted <==

Area	Investment	Explanation	Share- holding
Kaohsiung Taiwan	The fourth coil coating line	Building a coil coating line with 120,000 metric-ton annual capacity and the production may start at the end of 2019.	100%
Kaohsiung Taiwan	E Sky Land	Hall A of the E Sky Land is a big shopping mall with thirty-one-story above ground and six stories below, a total floor space of 77,000 pin. The hotel part is affiliated with Marriott International Group and expect to run in the first half of 2019.	56.43%
Changshu Jiangsu China	Four stages of expansion by Yieh Phui (China)	1.One Pickling and Tandem Cold Mill (PLTCM) with 1 million-ton annual capacity and the production commissioned on Feb. 2015. 2.One Continuous Annealing Line (CAL) with 520,000 metric-ton annual capacity and the production commissioned on Aug. 2015. 3.One Coil Coating Line with 210,000 metric-ton annual capacity and the production commissioned on Feb. 2017. 4.One Hot-Dip Galvanizing Line with 400,000 metric-ton annual capacity and the production is expected to commission in the first quarter of 2018.	100%

P.23/23