YY STRATEGIC BUSINESS REVIEW

CONFIDENTIAL

2. Localization - YY IDN History of YY IDN Investment

• The factory is a result of continuous effort to establish our own production base in Indonesia. - YOUYOUNG has 10+ year experience in Indonesia. We understand market and environment. • YY IDN will be our Upper & Engineer material platform factory as well as localized production base of linings. - Short & Mid term : CKJ, S/W, S/L Mesh (Rec. Poly), Linings - Mid-to-Long term : Woven, Warp Knit Eng. Mesh, Single JQD, S/W-type C/Knit, Low-gauge C/Knit

• 2 nd YY Settle Down in IDN (PT. YOUYOUNG Indonesia) - Established YY IDN branch (100% Direct Investment) - Approved by 4 Global Footwear Brands (in 2020)

• 1 st YY Settle Down in IDN (PT.SU) - Strategic Cooperation to pioneer Indonesia production base

2022

2018

2019

2009

• Production by PT. SU but, Development, Sales& Marketing by YY HQ

• Next-phase YY Indonesia ▶ 100% owned production base of

- 2012 Rev.: $5,705K - 2018 Rev.: $14,679K

CKJ, Warp knit Eng. Mesh (with New M/C) ▶ Engineer material production base

• Serious Issues - Raised issue for old facilities, low- performance and sustainability - YY HQ decided to establish more controllable factory in Indonesia

- Competitive Pricing, Short lead time - High quality upper as well as lining and reinforcement items

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