1. YGET Group 1589TT
Sep. 2013

2. Disclaimer
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3. About YGET
Main Products
Core Competitiveness
Summary of Operations
Future Investment

4. About YGET Group
Founded : 1995 (Dong-Guan Yeong-Guan Casting Iron Co., Ltd.)
Registered : Cayman Islands in 2008
Capital ：1,009 Million NTD
Business： Secondary Metal Processing
Chairman ：Zhang, Hsiang-Ming
Employee：1,946 (May 2013 ）
Revenue：5.26 Billion NTD (Combined Revenue in 2012)
Location：Dong-Guan (China)、Ning-Po (China)、Li-Yang (China) 、Tao-Yuan (Taiwan)
Production Sites : 5 Foundries、2 Machinery Workshop、1 Welding Workshop、1 Material Recycle Company、and 3 Operational Trading Companies。

5. Material EN-GJS-400~EN-GJS-700 DUCTILE CAST IRON (EN 1563)
EN-GJL-200~EN-GJL-350 GRAY CAST IRON (EN 1561)
Add logos of JIS, ASTM, EN, ISO, range is described using Tensile Str, Elongation two main properties.

6. Advantage
Controls key process know-how for High toughness at Low Temperature Ductile Iron, meeting requirements for highly efficient industrial machinery.
One cycle lasts 6 seconds, 14,400 cycles per day.
Ferritic Ductile Iron Microstructure
>280 nodules/mm2

7. One Stop Shopping Raw Materials Casting, Welding Machining Assembly
Total
Solution
Casting
Machining
Painting
Design
Welding
Assembly
NB Yeo-Tiang
Supplies Worldwide
Future investment
DG Yeong Guan
JB Bright Steel
NB Lulin
Yeong Chen AP
NB Yeong He Shine
Sub-contractors
Future Investment
Furure Investment
Machining
Assembly
Raw Materials
Casting, Welding
JS Bright Steel
NB Yeong Shang
Vertical and horizontal process integration.
Satisfy customer’s need from pattern design, casting, welding, painting, machining to assembly, all at YG. 7

8. About YGET
Main Products
Core Competitiveness
Summary of Operations
Future Investment

9. Application 1

10. Application 2

11. Partners

12. Energy Sector

13. Injection Molding Machine

14. Industrial Machinery

15. About YGET
Main Products
Core Competitiveness
Summary of Operations
Future Investment

16. Sufficient growing space
2011 Global metal casting output (by material type)
Casting Cost as a % of total machine cost
Global casting output for 2011 is million Tons. The share of Gray iron, Ductile, Steel, Non-ferrous castings is 48%、25%、11%、6% respectively. Ductile cast iron has the highest growth.
In 2012, YGET group only has 0.14% of the global casting market share, and 0.4% of the global ductile cast iron market share. High development space for YGET group, who has solid know-how and a stable customer base.

17. 2011 primary Ductile Iron Producing Countries and Output
Scale Advantage
2011 primary Ductile Iron Producing Countries and Output
10,000Tons
In 2012, YGET ductile iron output accounted for 1% of the Chinese output, when there are nearly 30,000 foundries in China.
永冠2012年球鐵產量約佔中國大陸的1%。而中國大陸約有三萬家鑄造廠。

18. Scale Advantage
2011 Average Foundry Production of Primary Casting production Countries (Tons)
Even the smallest foundry in YGET is comparable to the German average.

19. Cost Advatange
Comparison between purchasing price and market price for pig iron
Comparison between purchasing price and market price for scrap steel
Combining with highly experienced raw material acquisition team and strong steel recycling capability subsidiary Yeo-Tian (NB), YGET is able to lead the industry with cost advantage.

20. Solidification Simulation
Solidification analysis SOLIDCAST decrease product failure rate

21. Patents Portfolios and Quality Improvement
YGET applies FMEA during production, tight controls on production quality, earning trust from customers.
With strong focus on process innovation, YGET has been able to file several patents in recent years, and achieve unprecedented efficiency in the casting production.

22. About YGET
Main Products
Core Competitiveness
Summary of Operations
Future Investment

23. Financial Results (13Q2) 13Q2 13Q1 QoQ 12Q2 YoY Net Revenue 1,414,860
unit：K NTD, NTD
13Q2
13Q1
QoQ
12Q2
YoY
Net Revenue
1,414,860
1,169,187
21.0%
1,544,860
-8.4%
Gross Profit
367,012
306,424
19.8%
359,991
2.0%
Income from Operations
166,622
134,708
23.7%
118,489
40.6%
Net Income
123,836
84,577
46.4%
67,253
84.1%
EPS
1.23
0.84
0.67
83.6%
Profitability Analysis
Gross Margin
25.9%
26.2%
-0.3%
23.3%
2.6%
Operating Margin
11.8%
11.5%
0.3%
7.7%
4.1%
Net Profit Margin
8.8%
7.2%
1.6%
4.4%

24. Financial Results (13H1) 13H1 12H1 YoY Net Revenue 2,584,047 2,828,898
unit：K NTD, NTD
13H1
12H1
YoY
Net Revenue
2,584,047
2,828,898
-8.7%
Gross Profit
673,436
651,663
3.3%
Income from Operations
301,330
254,075
18.6%
Net Income
208,413
156,198
33.4%
EPS
2.07
1.55
33.6%
Profitability Analysis
Gap
Gross Margin
26.1%
23.0%
3.1%
Operating Margin
11.7%
9.0%
2.7%
Net Profit Margin
8.1%
5.5%
2.6%

25. Gross Margin Analysis
By aggressively reducing products with lower margins, adapting to blue sea competition principles, and increase machining and painting services, YGET’s margins have grew in the last two quarters.

26. Revenue by Application
13Q2 Revenue by Industry
13Q2 Main Customers
Main customers are S group, GE, Nordex, Elekta and Milacron.

27. Customer structure analysis -Wind Power generation
13Q2 Top 5 Wind Power customers
13Q2 VS 13Q1

28. Customer structure analysis -Plastic injection molding machine
13Q1 Top 5 Injection molding machine customers
13Q2 VS 13Q1 28

29. Customer structure analysis -Industrial machinery
13Q1 Top 5 Industrial machinery customers
13Q2 VS 13Q1

30. Persist and become the BEST
Casting
Machining
Inspection
Welding
Assembly
Product application and Customers
Wind Power
S、Nordex、G、GE
Industry Machinery
Elekta、Atlas、M、VAG、Bobst
Injection Molding Machine
Engel、Milacron、K、Sumitomo、Ｈusky
Positioning for Large Scale operations: Vertical integration for steel recycling, casting, machining, welding and assembling. to increase productivity and provide “One Stop Shopping” for our customers.
Customers share the characteristic of “Western origin, World leaders”. Our main customer for Energy, Injection molding, Industrial machineries and medical equipment are S, Engel, Atlas, and Elekta respectively.

31. About YGET
Main Products
Core Competitiveness
Summary of Operations
Future Investment

32. Book-to-bill ratio per quarter
Driving Force in Business
Greenhouse Effects
Green Casting
Global Layout
Book-to-bill ratio per quarter
Business Scale

33. Outlooks
In July, consolidated revenue was NTD$554M (MoM+18.3%, YoY+26.7%). Total shipping volume reached 10,219 tons (MoM+16.2%, YoY+24.2%).
Customers in energy sector forecast strong demands for the rest of this year and will keep growing through 2014.
13Q3 total shipment will grow more than 5~10% QoQ, a company’s quarterly record. And, Q4 shipment will maintain around at Q3 level.
Planning a new facility in Thailand (for better serving local Japanese customers).
Total shipping volume in 2013 at least to grow +10% over 2012 while internal cost down project continues.

34. Thank you for your attention!
全透明