Auto Sales in Taiwan Through the Years

TW：2201

YULON MOTOR CO., LTD. Investor Conference

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our affiliates and may not be directly or indirectly reproduced, redistributed or forwarded to any other person and may not be published in whole or in part for any purpose.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. 2 Agenda

Agenda Time Speaker

Opening - Chen Hsiang Yao – President

Financial Results & Future Prospects 10 min Wen Yi Lo – Associate Vice President

Chen Hsiang Yao – President Q&A 20 min Wen Yi Lo – Associate Vice President

Sales volume Growth rate Market share % Domestic Brand 2020/1~3 2019/1~3 /Imported 2020/1~3 Total 2020/1~3 2019/1~3 % Units Total Units Total Domestic 7,223 8,032 -10.1% 7.2% 8.6% -1.4% YULON Nissan Co. 7,705 8,723 -11.7% Imported 482 691 -30.2% 0.5% 0.7% -0.2% Domestic 1,255 1,305 -3.8% 1.2% 1.4% -0.2% LUXGEN 1,255 1,305 -3.8% Imported 0 0 0.0% 0.0% 0.0% 0.0% Domestic 10,473 11,273 -7.1% 10.4% 12.1% -1.7% MITSUBISHI 10,738 11,802 -9.0% Imported 265 529 -49.9% 0.3% 0.6% -0.3% YULON GROUP Domestic 18,951 20,610 -8.0% 18.8% 22.1% -3.3% 19,698 21,830 -9.8% subtotal Imported 747 1,220 -38.8% 0.7% 1.3% -0.6% Domestic 15,868 14,761 7.5% 15.7% 15.8% -0.1% TOYOTA 35,546 29,769 19.4% Imported 19,678 15,008 31.1% 19.5% 16.1% 3.4% 1900/1/0 4,381 3,067 42.8% 4.3% 3.3% 1.0% FORD 4,914 3,924 25.2% Imported 533 857 -37.8% 0.5% 0.9% -0.4% Domestic 0 0 - 0.0% 0.0% 0.0% MAZDA 3,927 3,291 19.3% Imported 3,927 3,291 19.3% 3.9% 3.5% 0.4% Domestic 5,505 6,995 -21.3% 5.5% 7.5% -2.0% HONDA 6,058 7,574 -20.0% Imported 553 579 -4.5% 0.5% 0.6% -0.1% Domestic 1,754 2,134 -17.8% 1.7% 2.3% -0.6% HYUNDAI 2,280 2,580 -11.6% Imported 526 446 17.9% 0.5% 0.5% 0.0% Domestic 0 0 0.0% 0.0% 0.0% 0.0% BENZ&BMW 11,149 11,425 -2.4% Imported 11,149 11,425 -2.4% 11.0% 12.2% -1.2% Domestic 1,587 1,195 32.8% 1.6% 1.3% 0.3% OTHERS 17,330 13,064 32.7% Imported 15,743 11,869 32.6% 15.6% 12.7% 2.9% Domestic 48,046 48,762 -1.5% 47.6% 52.2% -4.6% Total market 100,902 93,457 8.0% Imported 52,856 44,695 18.3% 52.4% 47.8% 4.6% 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. Copyright © Yulon Motor, All rights reserved. 5 Auto Sales in Taiwan Through the Years

TIV volume (unit: 10K) Growth rate (%) 60.0 40% 29.6% 50.5 30% 50.0 43.5 15.5% 41.4 43.0 42.3 42.7 42.2 (F) 20% -10.5% 35.5 41.1 40.0 36.8 37.0 35.7 10% 31.9 31.9 28.8 11.9% 30.0 6.4% 4.8% 0% 22.2 4.3% -0.7% 1.0% 0.8% -1.1% -3.6% -2.6% -10% 20.0 -10.5% 10.1 -20% 10.0 -30% -29.3% -30.3% 0.0 -40% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 ※The heavy trucks are excluded in TIV calculation Jan.~Mar. 1. The sales volume in Jan~Mar. 2020 is 101K units, and 8% increase rate year on year. 2. “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. 3. 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. Copyright © Yulon Motor, All rights reserved. 6 Auto Sales in MainlandChina Through the Years

TIV volume (unit: 10K) Growth rate (%) 3,500.0 45.5% 50.0%

3,000.0 32.4% 2,802.8 2,888.0 2,808.1 40.0% 2,576.9 25.3% 2,459.8 2,349.2 30.0% 2,500.0 21.8% 2,198.4 1,930.6 2,000 (F) 13.5% 13.9% 13.9% 20.0% 2,000.0 1,806.2 1,850.5 6.7% 7% 4.7% 2.5% 4.3% 3.0% 10.0% 1,364.5 1,500.0 -2.8% 0.0% 938.1 -8.2% 1,000.0 879.1 721.6 -10.0% 575.8 -22.4% 500.0 223.8 -20.0%

0.0 -30.0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 ※The heavy trucks are included in TIV calculation Jan.~Feb.

1. 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. 2. “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. 3. 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. Copyright © Yulon Motor, All rights reserved. 7 Consolidated Comprehensive Income Statements

(NT $ Million) 2019 2018 Difference Consolidated Consolidated Consolidated Amount % Amount % Amount % Operating revenue 85,801 100% 88,116 100% (2,315) -3% Gross profit 5,877 7% 18,965 22% (13,088) -69% Operating income (30,739) -36% 2,018 2% (32,757) -1623% Nonoperating income and expense 7,302 9% 3,367 4% 3,935 117% Consolidated income before income tax (23,437) -27% 5,385 6% (28,822) -535% Consolidated net income (24,533) -29% 3,847 4% (28,380) -738% Other comprehensive income, net (305) - (688) - 383 56% Total comprehensive income (24,838) -29% 3,159 4% (27,997) -886% ―Owner of the Company (24,604) -29% 1,491 2% (26,095) -1750% ―Common Control of Predecessor Rights (565) - - - ―Non-controlling interests 331 0% 1,668 2% (1,337) -80% EPS (16.61) 1.39 (18.00)

Copyright © Yulon Motor, All rights reserved. 8 Consolidated Balance Sheets (NT $ Million) 19 Q4 18 Q4 Difference Consolidated Consolidated Consolidated Amount % Amount % Amount % Current assets 231,944 74% 221,699 69% 10,245 5%

Noncurrent assets 81,947 26% 98,162 31% (16,215) -17%

Total Assets 313,891 100% 319,861 100% (5,970) -2%

―From TAC 200,460 64% 171,805 54% 28,655 17%

―Excluding TAC 113,431 36% 148,056 46% (34,625) -23%

Current liabilities 230,603 73% 207,662 65% 22,941 11%

Noncurrent liabilities 26,207 8% 27,775 9% (1,568) -6%

Total Liabilities 256,810 82% 235,437 74% 21,373 9%

―From TAC 179,783 57% 151,447 47% 28,336 19%

―Excluding TAC 77,027 25% 83,990 26% (6,963) -8%

Share capital 15,729 5% 15,729 5% 0 0%

Capital surplus 6,566 2% 6,598 2% (32) 0%

Retained earnings 23,775 8% 49,239 15% (25,464) -52% Other equity 11,010 4% 12,858 4% (1,848) -14% Total Equity 57,081 18% 84,424 26% (27,343) -32%

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.

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.

Copyright © Yulon Motor, All rights reserved. 11 Real Estate Development - Xindian  Commercial district 1.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. 2.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. Copyright © Yulon Motor, All rights reserved. 12 THANK YOU FOR WATCHING 人人 ‧‧ 車車 ‧‧ 生生活活