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Yageo Corporation

February, 2019

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This announcement is not, and is not intended to be, an offer of securities for sale

in the United States. Securities may not be offered or sold in the United States

a b s e n t r e g i s t r a t i o n o r a n e x e m p t i o n f r o m r e g i s t r a t i o n u n d e r

the U.S. Securities Act of 1933. Any public offering of securities to be

made in the United States must be made by means of a prospectus containing

detailed information about the issuer of the securities and its management

as well as financial statements. There is not, and is currently not intended

to be, any public offering of securities by Yageo Corporation in the United States.

Disclaimer

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A Global Passive Component Leader

Yageo Corporation is a world leading total service

provider of passive electronic components, with 38

sales/service offices in 18 countries, 19 manufacturing

sites, 6 JIT logistic hubs and 14 R&D centers

worldwide.

Yageo offers a broad range of electronic components

with resistors, capacitors, and wireless components

and modules. In the recent years, Yageo’s product

technologies mainly focus on ultra small size, high

power, high voltage, high reliability, low resistance,

and low inductance.

Yageo products are widely used in all kinds of

electronic applications, including automotive, industrial,

IoT, AR/VR, alternative energy, telecommunications,

power supplies, computers and peripherals, and

consumer electronics.

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A Global Passive Component Leader

As total passive component solution provider, Yageo

offers innovative global logistics, electronic data

interchange, design-in services, web-based self-helped

platforms, and online B2B interfaces with advanced IT

solutions and other ease-of-doing-business tools.

Yageo has a strong and diversified customer profile,

including global leading EMS, ODM, OEM, and

distributors.

Yageo currently is the world No.1 in chip-resistors and

No. 3 in MLCCs. With the reputable 40-year-old brand,

Yageo is a truly global company with leading position

in Greater China, Europe, and ASEAN.

Yageo announced to acquire BrightKing Electronics, a

supplier of circuit protection components, on April 27th,

2018 and Pulse Electronics, a global comprehensive

supplier of electronic components on May 22nd, 2018.

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A Global Passive Component Leader Yageo achieved another record high revenue (NTD$

77.17 billion) in 2018, much higher than previous record

high in 2017 (NTD$ 32.26 billion). As of February 27, 2019,

its total market capitalization exceeded NTD$ 148 billion.

Yageo delivered 24.59% of ROE in 2017 and achieved

53.1% of Operating Margin with EPS NT$70.29 in the first

nine months of 2018.

Yageo was added to MSCI Global Standard Index (MSCI

Taiwan Index), effective from December 1, 2017.

Yageo was added to FTSE/TWSE Taiwan 50 Index,

effective from April 18, 2018 and Taiwan Dividend+ Index,

effective from December 21, 2018.

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Yageo Passive Components

Automotive Industrial Mobile Alternative Energy Notebook/Tablet

Power Lighting Medical Home Appliances Networking Payment & Sales

Broad Product Offering Targeting Key Verticals

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Serving Leading Global Customers

Europe Asia U.S

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Leading Market Position by Volume

Chip Resistors - Ranked No. 1 MLCCs - Ranked No. 3

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4Q18 Sales Revenue Breakdown

By Product

NT$ 16,225 M QoQ -47.1%

YoY +68.2%

By Region

* Above 4Q information is unaudited.

MLCC 59%

Chip Resistor 34%

Protective 4%

Thru-hole Resistor

2%

Wireless 0.5%

Others 0.5%

Greater China 54% Asia/ Rest

13%

Europe 19%

US 14%

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4Q18 Sales Revenue Breakdown

By Channel By Segment*

NT$ 16,225 M QoQ -47.1%

YoY +68.2%

* Above 4Q information is unaudited.

* Based on the company’s estimation from distributors, direct sales, and EMS customers.

Distributors 43%

EMS 29%

Direct Sales 28%

Telecom 23%

Computer 28%

Consumer 10%

Industrial 29%

Automotive 10%

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By Product By Region

NT$ 77,165 M YoY +139.2%

Y2018 Sales Revenue Breakdown

MLCC 61%

Chip Resistor 34%

Protective 2%

Thru-hole Resistor

1%

Wireless 1%

Others 1%

Greater China 73%

Asia/ Rest 10%

Europe 12%

US 5%

* Above Y2018 information is unaudited.

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Y2018 Sales Revenue Breakdown

By Channel By Segment*

NT$ 77,165 M YoY +139.2%

Distributors 56%

EMS 23%

Direct Sales 21%

* Above Y2018 information is unaudited.

* Based on the company’s estimation from distributors, direct sales, and EMS customers.

Telecom 24%

Computer 25%

Consumer 10%

Industrial 30%

Automotive 11%

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3Q2018 Income Statement

Amount in NTD Million Yageo Group Consolidate (reviewed)

* Q-Q/Y-Y Change of Net Sales, Cost of Sales, EPS is in %, the rest of Changes is in % point.

* The financial data is based on T-IFRS

Q-Q

Amount % Amount % Change % Amount %

Net Sales 30,666 100.0 19,247 100.0 59.3 8,370 100.0

Cost of Sales (9,414) -30.7 (6,909) -35.9 36.3 (5,832) -69.7

Gross Profit 21,252 69.3 12,338 64.1 5.2 2,538 30.3

Operating Expenses (4,300) -14.0 (1,605) -8.3 (5.7) (706) -8.4

Operating Income 16,953 55.3 10,734 55.8 (0.5) 1,832 21.9

Non-operating Items 381 1.2 2,469 12.8 (11.6) 200 2.4

Income Before Tax 17,333 56.5 13,203 68.6 (12.1) 2,032 24.3

Income Tax (3,033) -9.9 (2,375) -12.3 2.4 (255) -3.0

Net Income 14,300 46.6 10,828 56.3 (9.6) 1,777 21.2

Minority Interest 203 0.7 (28) -0.1 0.8 (7) -0.1

Net Income (attributable to the parent) 14,503 47.3 10,800 56.1 (8.8) 1,770 21.1

EPS 34.35 25.70 33.7 4.23

EBITDA 19,241 62.7 13,118 68.2 (5.4) 2,308 27.6

Q3 / 18 Q2 / 18 Q3 / 17

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1Q-3Q2018 Income Statement

Yageo Group Consolidate (reviewed) Amount in NTD Million

* Q-Q/Y-Y Change of Net Sales, Cost of Sales, EPS is in %, the rest of Changes is in % point.

* The financial data is based on T-IFRS

Y-Y

Amount % Amount % Change %

Net Sales 60,937 100.0 22,607 100.0 169.5

Cost of Sales (21,680) (35.6) (16,328) (72.2) 32.8

Gross Profit 39,257 64.4 6,280 27.8 36.6

Operating Expenses (6,901) (11.3) (2,068) (9.1) (2.2)

Operating Income 32,356 53.1 4,211 18.6 34.5

Non-operating Items 2,357 3.9 87 0.4 3.5

Income Before Tax 34,713 57.0 4,299 19.0 38.0

Income Tax (5,307) (8.7) (641) (2.8) (5.9)

Net Income 29,407 48.3 3,657 16.2 32.1

Minority Interest 155 0.3 (18) (0.1) 0.3

Net Income (attributable to the parent) 29,561 48.5 3,640 16.1 32.4

EPS 70.29 6.74 942.9

EBITDA 37,563 61.6 5,550 24.6 37.1

1Q-3Q2018 1Q-3Q2017

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3Q2018 Non-operating Items Yageo Group Consolidate (reviewed)

Amount in NTD Million

* The financial data is based on T-IFRS

Q318 Q218Q-Q

Change %Q317

Y-Y

Change %

Foreign Exchange Gain (Loss)-Realized 44 68 (35.3) 52 (15.2)

Foreign Exchange Gain (Loss)-Unrealized 457 1,069 (57.2) (87) (625.8)

Market price changes--Unrealized (556) 787 (170.6) 7 (8,036.5)

Net Interest Income (Expense) 143 112 27.6 44 225.5

Investment Income on Equity-Method 192 361 (46.9) 108 77.7

Other Investment Income 65 65 0.2 39 68.9

Gain/(Loss) on Sale of Investments (1) 0 (457.3) 30 (104.2)

Others 37 7 390.1 8 368.1

381 2,469 (84.6) 200 90.1

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Yageo Group Consolidate (reviewed)

3Q2018 Selected Items from Balance Sheet Amount in NTD Million

* The financial data is based on T-IFRS

Q318 Q218 Q-Q Q317 Y-Y

Amount Amount Change % Amount Change %

Cash and Financial Assets 36,471 35,059 4.0 18,083 101.7

Notes & Accounts Receivable 30,748 20,280 51.6 10,932 181.3

Inventory 7,643 7,886 (3.1) 4,304 77.6

Other Current Assets 2,743 2,466 11.2 2,864 (4.2)

Long-Term Investment 17,637 20,415 (13.6) 13,920 26.7

Net Properties 19,408 20,015 (3.0) 14,535 33.5

Other Assets 6,620 6,016 10.0 3,352 97.5

Total Assets 121,270 112,137 8.1 67,989 78.4

Short-Term Loans 26,993 25,342 6.5 19,954 35.3

Accounts Payable 9,402 9,284 1.3 7,031 34

Other Current Liabilities 16,450 16,923 (2.8) 5,206 216.0

Long-Term Loans 11,800 12,300 (4.1) 7,700 53.2

Other Liabilities 645 796 (19.0) 348 85.0

Total Liabilities 65,290 64,645 1.0 40,240 62.3

Total Equity 55,980 47,492 17.9 27,750 101.7

Total Liabilities & Equity 121,270 112,137 8.1 67,989 78.4

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3Q2018 Cash Flow

Yageo Group Consolidate (reviewed) Amount in NTD Million

* The financial data is based on T-IFRS

Q318 Q218 Q-Q Q317 Y-Y

Amount Amount Change % Amount Change %

Net Cash Provided by (Used in) Operating Activities 10,301 7,517 37.0 2,041 404.8

Net Cash Provided by (Used in) Investing Activities (1,620) (4,803) (66.3) (5,405) (70.0)

Net Cash Provided by (Used in) Financing Activities (6,837) 12,251 (155.8) 2,603 (362.7)

FX Difference (432) 156 (376.1) 60 (817.2)

Net Increase (Decrease) in Cash and Cash Equivalents 1,412 15,122 (90.7) (701) (301.4)

Cash and Cash Equivalents , Beginning of Period 35,059 19,937 75.8 18,784 86.6

Cash and Cash Equivalents , End of Period 36,471 35,059 4.0 18,083 101.7

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3Q2018 Working Capital Management

Yageo Group Consolidate (reviewed) Amount in NTD Million

* The financial data is based on T-IFRS

Q318 Q218Q-Q

Change %Q317

Y-Y

Change %

Accounts Receivable 30,748 20,280 51.6 18,083 70.0

DSO 95 90 6.0 122 (21.8)

Inventory 7,643 7,886 (3.1) 4,304 77.6

DOH-Total Company 71 97 (27.3) 65 7.7

DOH-R+C Finished Goods (Qty) 63 74 (15.0) 44 43.0

Accounts Payable 9,402 9,284 1.3 7,031 33.7

Payable Days 118 128 (7.6) 111 6.2

Net Working Capital 28,989 18,882 53.5 15,355 88.8

Thank you