YFY : 1Q24_Earning Results

YFY Inc.

1Q24 Earnings Conference

2024/05/14

1907.TW

Disclaimer

This presentation is prepared according to the reviewed financial statements by CPA and the financial numbers hereby were based on IFRS, please refer to the published financial statements for full content.

The presentation may contain forward-looking information and may differ materially from the actual results. YFY does not warrant as to the accuracy or completeness of such information and nor assume any undertaking further information becomes available or in light of changing circumstances. You shall not place undue reliance on any forward- looking information.

The presentation and its contents may not be reproduced to a third party without the prior written consent of YFY.

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YFY Five Strategic Directions

		Continuous
		Development
Industry 4.1		of the Circular
	Economy
and	Renewable
Upstream/	Energy and
Downstream	Energy
Industrial	Management
Ecosystems
The
Saccharide	Investment
Economy and	in new
Development	innovation
of New	business
Materials

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1Q24 Financial Results

(NTD $M)	1Q24	1Q23	Y/Y
Revenue	17,922	17,531	2.2%
Gross Profit	2,700	2,146	25.8%
Operating Profit	193	(177)	209.1%
None-Operating Income/Expenses	460	256	79.8%
Profit Attributable to Parent Company	279	3	-
EPS (NTD)	0.17	0.0	-
Net Profit Margin	1.6%	0.0%

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Non-Operating Income/Expenses

(NTD $M)	1Q24	1Q23	Y/Y
Share of Profit of Associates	215	277	-22.5%
Financial Costs	(255)	(298)	14.4%
Interest Income	107	115	-7.2%
FX Gains/Losses	264	40	561.2%
Dividend Income	-	-	-
Other Income	130	121	7.1%
Total	460	255	80.5%

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Revenue by Operating Segment

(NTD $M)

Others 2,964 17%

Consumer

Products

2,588

14%

Forest, Pulp &

Paper

4,758

27%

Container Board &

Packing

7,612

42%

Forest, Pulp and Fine Paper Business Group:

Including pulp, cultural paper, packaging paper, specialty paper, and cardboard.

Containerboard and Packaging Business Group:

Including industrial cardboard containers, colored cases, and food containers.

Consumer Product Business Group:

Household products including tissue paper, napkins, and cleaning products.

Others Business:

Products other than paper including specialty materials, RFID, packaging designs , and other services.

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Performance by Operation

(NTD $M)	1Q24	1Q23	Y/Y
Operation
Forest, Pulp & Paper	15	(145)	110.6%
Containerboard & Packaging	(209)	(144)	-44.8%
Consumer Products	315	145	117.2%
Others	72	(35)	306.7%
Operating Profit	193	(179)	207.9%
Non-operation
Investments from equity method	215	277	-22.5%
(E Ink)
Dividend Income	-	-	-
(SinoPac Holdings)
Subtotal of Investments from Equity	215	277	-22.5%
Method and Dividend Income

Note:

The performance of each segment was measured by operating profits of each business.

Revenue and profit among segments have been adjusted with intra-segment elimination to reconcile with consolidated financial statements.

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Diversified Business & Product Portfolio

The profits from Core Extended business formed a positive and

sustainable trend, and those business are driving for profit optimization.

NTD M

800.00

700.00

600.00

500.00

400.00

300.00

200.00

100.00

-100.00

-200.00

Containerboard & Packaging BG

Net Income Before Tax

653

78

1Q231Q24

800.00

700.00

600.00

500.00

400.00

300.00

200.00

100.00

-100.00-200.00

	Financial & other gains/losses		Paper Business		Core Extended Business	稅前淨利

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YFY Inc. Stable Growth from Diversified Business Strategy

Growth for the 7th consecutive years, 1Q24 net worth per share reached NT$36.92. CAGR at 9%. YFY continuous expansion of diversified business as a long-term strategy to

enhance the profitability stability of the product portfolio and strengthen the resilience

required to face macroeconomic uncertainty.

NTD $

40
								36.92
								35.22
35
						32.91
						30.84
30
				27.09
25		20.01	21.36	23.64
	19.38
20
15
2016	2017	2018	2019	2020	2021	2022	2023	1Q24

Net Worth Per Share

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Conclusion

1Q24

1. Consolidated quarterly revenue reached NT$17.92 billion, benefiting from increased demand in RFID and Vietnam packaging, with a 2.2% YoY growth.
2. Consolidated operating income for the quarter was NT$193 million, with improvement in Taiwan and Vietnam demand, profit turn positive from last year's results.
3. Non-operatingincome was approximately NT$460 million, mainly due to investment income from E ink (equity method) and gains from foreign currency hedging, with consolidated net profit after tax attributable to the parent company being NT$279 million and EPS after tax was NT$0.17
4. Diverse business and product portfolio to optimize and sustain profitability. Net worth per share reached NT$36.92.

Outlook

1. Forest, Pulp and Paper Business Group: Continuously develop low-carbon emission products and gain market shares.
2. Container board and Packaging Business Group: Demand driven by consumer essentials. Expansion on renewable energy capacity.
3. Consumer Product Business Group: Optimizing the product portfolio, continuing to improve and expand production automation.
4. Others Business: Capacity adjustments aligned with demand. Accelerating the development of niche products.
5. Equity Method & FVOCI: New technology driven for capacity expansion. Dividend income benefits from improved macroeconomic.

YFY will further enhance the company's operational efficiency and optimize its product portfolio. The company has being devoted to low carbon emission, low energy consumption, and replacing petrochemicals with saccharide. Promoting ESG to ensure sustainable growth for the company. Continuing to create reasonable investment value for shareholders.

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