YULON MOTOR CO., LTD. Investor Conference · Copyright © Yulon Motor, All rights reserved. Luxgen...

人

‧

車

‧

生活

Copyright © Yulon Motor, All rights reserved.

YULON MOTOR CO., LTD.

Investor Conference

2018/11/21

TW：2201


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.

Disclaimer Statement

2


Agenda

3

Agenda Time Speaker

Opening -

Chen Hsiang Yao -President

Financial Results & Future Prospects 15 min Lo Wen Yi –General Management

Q&A 25 min Chen Hsiang Yao -President

Lo Wen Yi –General Management


人 ‧ 車 ‧ 生活 Financial Results & Future Prospects

4


2018/1~10 Sales Volume in Taiwan

5

The sales volume in Jan.~Oct. 2018 decreased by 1.8% year on year, including 8.8% decrease of domestic cars and 7.8% increase of imported

cars, accounting for domestic cars and imported cars of 54%:46%. The imported cars growth reasons: (1)the exchange rate factor and competitive

imported car prices , (2)product portfolio updated faster and more diverse.

Units Total Units Total

Domestic 32,717 26,646 -18.6% 7.7% 9.2% -1.6%

Imported 2,858 2,345 -17.9% 0.7% 0.8% -0.1%

Domestic 11,368 8,759 -23.0% 2.5% 3.2% -0.7%

Imported 0 0 0.0% 0.0% 0.0% 0.0%

Domestic 40,722 39,537 -2.9% 11.4% 11.5% -0.1%

Imported 48 1,722 3487.5% 0.5% 0.0% 0.5%

Domestic 84,807 74,942 -11.6% 21.5% 23.9% -2.4%

Imported 2,906 4,067 40.0% 1.2% 0.8% 0.3%

Domestic 70,172 58,421 -16.7% 16.8% 19.8% -3.0%

Imported 36,554 40,587 11.0% 11.7% 10.3% 1.3%

Domestic 14,096 11,197 -20.6% 3.2% 4.0% -0.8%

Imported 2,325 2,773 19.3% 0.8% 0.7% 0.1%

Domestic 0 0 - 0.0% 0.0% 0.0%

Imported 17,648 19,214 8.9% 5.5% 5.0% 0.5%

Domestic 25,147 29,128 15.8% 8.4% 7.1% 1.3%

Imported 2,184 2,529 15.8% 0.7% 0.6% 0.1%

Domestic 9,317 8,963 -3.8% 2.6% 2.6% -0.1%

Imported 663 561 -15.4% 0.2% 0.2% 0.0%

Domestic 0 0 0.0% 0.0% 0.0% 0.0%

Imported 41,295 39,653 -4.0% 11.4% 11.7% -0.3%

Domestic 1,893 4,765 151.7% 1.4% 0.5% 0.8%

Imported 45,304 51,093 12.8% 14.7% 12.8% 1.9%

Domestic 205,432 187,416 -8.8% 53.9% 58.0% -4.1%

Imported 148,879 160,477 7.8% 46.1% 42.0% 4.1%

55,858 18.4%

Total market 354,311 347,893 -1.8%

OTHERS 47,197

9,524 -4.6%

BENZ&BMW 41,295 39,653 -4.0%

HYUNDAI 9,980

19,214 8.9%

HONDA 27,331 31,657 15.8%

MAZDA 17,648

99,008 -7.2%

FORD 16,421 13,970 -14.9%

TOYOTA 106,726

Growth rate Market share %

41,259 1.2%

YULON GROUP

subtotal87,713 79,009 -9.9%

MITSUBISHI 40,770

-18.5%YULON Nissan Co. 35,575 28,991

Domestic

/Imported

2017/1~10 2018/1~10Brand

Sales volume

11,368 8,759 -23.0%

2018/1~10 2017/1~10 %2018/1~10 Total

LUXGEN

exchange rate factor


Auto Sales in Taiwan Through the Years

6

42.5 (F)

1. The sales volume in Jan~Oct. 2018 of Taiwan is 348K units, and 1.8% decrease rate year on year.

2. “Chung-Hua Institution for Economic Research“ and “Taiwan institute of Economic Research” predicted economic

growth rate of Taiwan are 2.61% and 2.57% in 2018 respectively. The “Directorate General of Budget” forecast the

economic growth rate of Taiwan is 2.69% in 2018 showing the economic grow steadily in 2018.

3. Due to the effect of the commodity tax subsidy policy slowing down, the implementation of the pension reform, and

the uncertain situation of the China-US trade conflicts, it is estimated that the overall automobile market will reach

425,000 units in 2018, decreased about 10,000 units compared to 2017,approximately declined 2.2%.


Auto Sales in China Through the Years

7

1. The sales volume in Jan.~Oct. 2018 of China is 22.87 million units, and 0.4% decline rate year on year.

2.“Global Insight” and “International Monetary Fund” predicted economic growth rate of China are 6.7% and 6.6% in

2018 respectively. The "People's Bank of China" forecast the economic growth rate of China is 6.5% in 2018

showing the economic grow steadily in 2018.

3. Due to the economic growth of China steadily , there are uncertainty factors such as China-US trade conflicts. China

overall auto market forecast is expected to reach 29 million units in 2018, increased by 0.12 million compared to 2017,

the growth rate is about 0.4%.

2,900 (F)


Consolidated Comprehensive Income Statements

8

Amount % Amount % Amount % Amount %

Operating revenue 45,435 100% 47,904 100% (2,469) -5% (813) -7%

Gross profit 9,716 21% 10,158 21% (442) -4% 31 4%

Operating income 1,456 3% 1,442 3% 14 1% 26 5%

Nonoperating income and expense 1,854 4% 569 1% 1,285 226% 453 133%

Consolidated income before income tax 3,310 7% 2,011 4% 1,299 65% 480 56%

Consolidated net income 2,312 5% 1,304 3% 1,008 77% 531 70%

Other comprehensive income, net 176 0% (599) -1% 775 129% 0 0%

Total comprehensive income 2,488 5% 705 1% 1,783 253% 0 0%

―Owner of the Company 1,535 3% 606 929 153%

―Non-controlling interests 953 2% 99 854 863%

EPS 0.94 0.75 0.19

17 Q2 Difference18 Q2


Consolidated Balance Sheets

9

Amount % Amount % Amount % %

Current assets 189,341 68% 169,428 66% 19,913 12% 1%

Noncurrent assets 87,812 32% 88,988 34% (1,176) -1% -1%

Total Assets 277,153 100% 258,416 100% 18,737 7% 0%

―From TAC 131,483 47% 136,314 53% (4,831) -4% 0%

―Excluding TAC 145,670 53% 122,102 47% 23,568 19% 0%

Current liabilities 176,053 64% 158,833 61% 17,220 11% -30%

Noncurrent liabilities 21,009 8% 20,462 8% 547 3% -2%

Total Liabilities 197,062 71% 179,295 69% 17,767 10% -11%

―From TAC 135,636 49% 122,307 47% 13,329 11% 0%

―Excluding TAC 61,426 22% 56,988 22% 4,438 8% 0%

Share capital 15,729 6% 15,729 6% 0 0% 0%

Capital surplus 6,671 2% 6,666 3% 5 0% 0%

Retained earnings 48,524 18% 47,916 19% 608 1% 0%

Other equity 9,167 3% 8,810 3% 357 4% 1807%

Total Equity 80,091 29% 79,121 31% 970 1% 3%

18 Q2 17 Q4 Difference


Luxgen Sales Volume in China and Taiwan

10

1. Luxgen A.The main sales models in Jan.~Oct.2018 were U6 and U5. Luxgen is improving customer

satisfactions and implementing quality improvement activities continuously. The sales volume in Jan.~Oct.2018 of Luxgen is 8,798 units, and the revise model is expected to be launched in the fourth quarter.

B.Due to launched new models and minor change products in 2019,the sales volume is expected to reach 15,000 unit.

2. Dongfeng Yulon Motor (DFYL) A.The sales volume in Jan.~Oct.2018 of Dongfeng Yulon Motor is 8,282 units. The main sales

models were U6 and U5. To increase sales, DFYL will expand sales channels (including physical channels, e-commerce sales and travel platforms) as well as service outlets and increase after-sales satisfactions. The first BEV SUV U5 has been verified by the Ministry of Industry and Information Technology and is expected to be rolled off in China at the end of 2018.

B.Due to launched new models,minor change,and EV product in 2019,the sales volume is expected to reach 15,000 unit.

3. Plan 510 A. Accounding to plan 510,Luxgen brand will be launched new models every year and upgrade

present products,new conception car with AI conception cabin, AR and ADAS(Advanced driver assistance system)technology will provide driving safety, pleasure for customers.

Brand Company17Y

Actaual

18Y

Forcast

18YForcast

Growth Rate

18Y

Goal

18YForcast Volume

Increased

18YForcast

Growth Rate

Luxgen 14,984 10,000 -33.3% 15,000 5,000 50.0%

Dongfeng Yulon Motor Co 18,689 9,500 -49.2% 15,000 5,500 57.9%

Total 33,673 19,500 -42.1% 30,000 10,500 53.8%


Real Estate Development - Xindian

Progress of real estate development in Xindian:

1. Commercial district

Commercial district will be presold in Q1 2020

Commercial district has started construction in Q2 2017, estimated getting

usage permit in Q2 2023 and running in Q1 2024.

2. Residential district

Residential district will be getting building permit in Dec. 2018.

11


人 ‧ 車 ‧ 生活 Q & A

12

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