OPC — Investor Presentation 2023

Aug 18, 2023

OCEAN PLASTICS CO., LTD. 2023 Institutional Investor Conference Reporter: Spokesman Wang Yi-Ho August 21, 2023

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Briefing Outline

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Company Profile

2023 Business Unit Operations

Business performance

Investment benefit

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Company Organization

OPC

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Plastic Building PVC raw
processing materials PU Unit materials
Unit Unit Unit
Building PU Raw
Sales
Material Leather material
Division-1
Sales Sales Sales
Chung- Tao- Tao-
Xinwu
Li Yuan Yuan
Factory
Factory Factory-3 Factory
Hui Dong
Zhou Guan
Factory Factory
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Main Products

	Plastic Processing Unit	Building Materials Unit	PU Unit	PVC Raw Materials Unit
Product Category	Transparent tape, general tape, rigid sheet and film, Printing tape, printing tape, cellwood	PVC plastic pipe, high impact resistant tube, CD flexible tube, impact resistant plate, foam pellets, plastic wood, composite materials, PVC angle section, large bend	Water-based PU synthetic leather, solvent-free PPU synthetic leather, Water-based PU resin Solvent-free PPU, resin, Textile environmentally friendly processing resin, biomassmaterial	Plastic powder, plastic pellets, environmental- protection plastic pellets, medical plastic pellets, thick apparent tube pellets
Important Use	Car seats, antifouling floor mats, display windows, garden gazebos, yachts, tent windows, quilt bags file folder for stationery, advertising and trademarks, curtains, medical materials, building materials, wallpaper, bathroom floor, landscape table	electrical water supply piping, Tap water, health sewer works, plastic products injection, indoor and outdoor landscape use	High foam, trademarks, functional film, sports equipment, balls , apparel, furniture and electronic related products (earphone cover, tablet cover), etc.	Plastic sheets, plastic pipe, profiled extrusion paint, ink and other raw materials, IC encapsulated tube, thick transparent tube used in electronic plant

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Operation Situation of Plastic Processin Unit in 2023 g

First half Operation Review Second half Operating Outlook

The main factors affecting us are the ongoing impact of global inflation and interest rate hikes, sluggish end demand, continuous customer destocking, a decrease in international raw material prices compared to the same period last year, and international competition from peers. The real estate industry in the United States is weak, and the real estate industry in China has also seen a 90% reduction in workforce. This situation will significantly affect our products used in housing decoration and renovation. Pool liner sales have already lost their peak season appeal, wallpaper adhesive shipments are gradually decreasing, and floor tile adhesive orders have experienced an instant freeze. In the first half of the year, Taiwan's export order amount exhibited a negative growth rate, and the annual growth rate of orders for plastic and rubber products also showed a decline. Additionally, the economic indicator signals from the National Development Council have consistently displayed a blue light for several consecutive months, indicating a stagnant economy. Overall, sales volume of adhesive products has declined by approximately 24% compared to the same period last year, with a corresponding decrease in sales revenue of about 26%.

In addition to maintaining the quality and quantity of existing products, it is still necessary to continue to develop new products, new applications, and new customers to expand market demand, and then adopt different sales strategies according to regions to meet customer demand and maintain market competitiveness, coupled with the fact that the third quarter is the peak season for the school year, and the fourth quarter has the Christmas season as the traditional peak season for plasticized products, as long as the international situation does not deteriorate any further, the demand for adhesive tape products will have the opportunity to gradually pick up market demand.

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Operation Situation of Building Materials Unit in 2023

First half Operation Review

Second half Operating Outlook

At the beginning of this year, the economy is In the 2[nd] half of the year, although there are generally weak, after more than a year of violent favorable conditions for cooling inflation and interest rate hikes, the end market demand in Europe suspending interest rate hikes began, the and the United States continues to be weak, consumption momentum of the global market was manufacturers prepare material demand conservative still weak, and the supply chain inventory adjustment response, although prices and raw material prices are took longer than expected. Domestically, benefiting low, the economy is subject to the global market from the gradual recovery of private consumption consumption momentum is still sluggish factors and after the epidemic, channel marketing economic slowed down. Fortunately, in terms of pipe sales, activities are becoming more and more frequent, but because the momentum of public works is still in, the cost of construction manpower and materials social housing, power grid improvement, wind and remains high, which is also a hidden worry that will solar power plants, and the construction of camp affect the future construction schedule and economic construction projects continue to start, the development. Looking at the economic development construction market boom is better than expected, with cold and hot, The business climate in the second and timely make up for the insufficient capacity of half of the year seems to be moderate, and there is a other building materials products. chance to bottom out. 6

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Operation Situation of PU Unit in 2023

First half Operation Review

Second half Operating Outlook

In the 2nd half of 2021 and the 1st half of 2022, the market experienced an overordering and excessive inventory due to the bullwhip effect. Simultaneously, events such as the Russia-Ukraine conflict, consumer tightening, and inflation contributed to a global economic deflation. As a result, various brand manufacturers faced rapid depletion of inventory in the fourth quarter of 2022 and tightened customer demand. In the first half of 2023, sales declined by approximately 40%. The situation for the 3rd quarter remains uncertain, which could potentially impact the 4th quarter of this year and even the 1st quarter of the following year.

OPC’s environmental protection products grasp the existing customer base, strive for good quality and smooth delivery, and in the global economic deflation, reasonably reduce non-essential expenditures but continue to invest in finding opportunities for breakthroughs. Therefore, in the fourth quarter of the year, we visited exhibitions in Europe and participated in exhibitions to investigate the market trend after three years of epidemics, to understand the direction of product development, and then to expand the source of new orders. Products with high additional functions: development and certification of biomass materials and functional films.

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Operation Situation of PVC Raw Materials Unit in 2023

First half Operation Review

Second half Operating Outlook

In the first half of the year, due to the impact of the global economy, although the sales volume of PVC powder increased slightly by 1.6% over the same period, but the price fell by 35.3% compared with the same period, so the profit was not as expected. Part of the plastic pellets, sales volume only reached 88.9% of last year, sales amounted to about 82.5%, but because of the lower-than- expected prices of raw materials, so the profit increased slightly compared with the same period last year.

PVC powder sales are expected to be lower than the same period last year due to the global economic downturn. However, due to high energy prices, selling prices will rebound and are expected to reach a profit/loss balance. The plastic pellet business is expected to remain in the doldrums, but the environmental pellet business is expected to grow, and the overall performance is expected to be like that of the same period last year, with a normal profit.

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Business Performance The last two years’ revenue by product category

Unit: NTD10,000

2021year

2022year

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Other
Other
category
category
10,440
9,415
2% Plastic
1% Plastic Plastic
sheet
sheet powder/p
94,150
81,982 ellets
17%
13%
Plastic PU 367,869
powder/p synthetic 65%
ellets leather
PU synthetic
16,475
458,375 leather
3%
71% 13,871
plastic 2%
plastic
pipe/plate
pipe/plate
79 ,724
82,786
14%
13%
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Business Performance Consolidated revenue for the last five years

Unit: NTD1,000,000

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4,776 4,657 4,980 6,490 6,506
7,000
6,000
5,000
4,000
3,000
2,000
1,000
-
2018 2019 2020 2021 2022
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Business Performance

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Consolidated income statement

Unit: NTD1,000

	2022(1~6)	2023(1~6)	Increased (reduced) amount	Change %
Net Operating Revenue	3,722,699	2,499,093	-1,223,606	-32.87%
Cost of Goods Sold or Manufacturing Costs	3,446,154	2,313,740	-1,132,414	-32.86%
Gross Profit	276,545	185,353	-91,192	-32.98%
Operating Expenses	313,984	182,872	-131,112	-41.76%
Operating Income (loss)	-37,439	2,481	39,920	106.63%
Non-operating Expense or Loss	30,745	157,220	126,475	411.37%
Profit (loss) from continuing operations before tax	-6,694	159,701	166,395	2,485.73%
Income Tax Expense	4,212	9,927	5,715	135.68%
Profit (loss) from continuing operations	-10,906	149,774	160,680	1,473.32%
Profit (loss) from discontinued operations, net of tax
Net Income(net loss)	-10,906	149,774	160,680	1,473.32% ~~11~~

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Reinvestment Benefits

1. Chun Pin Enterprise Co., Ltd.: The main business is warehousing and logistics.

2. Taiwan VCM Corporation: The main business is VCM raw materials trading.

3. Fuzetec Technology Co., Ltd. : The main products are

resettable compound fuse, customized products.

1. E'Dale Technology Co., Ltd. : The main products are epoxy resin materials for electronic product packaging and epoxy resin materials for IC packaging. There are stable dividend income from above re-investment companies every year.

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In line with international

standards

The Company has completed its 2022 ESG Report on June 27, 2023. (Attached are the first two pages of this report)

1. The report spontaneously complies with the relevant norms and convention disclosure.

2. Gradually practice SDGs objectives and gradually implement GRI specifications.

3. 3 .Implement TCFD related countermeasures.

4. Promote greenhouse gas inventory.

5. Product Carbon Footprint Verification will be introduced in steps.

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14

C ONTENT

目 錄

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CHAPTER CHAPTER CHAPTER
3 4 5
經營者的話 01 誠信治理 環境保護 員工關懷
編輯方針 03 3.1 公司治理 4.1 水資源管理 5.1 員工概況
3.1.1 公司治理組織 24 4.1.1 水資源取得 50 5.1.1 員工架構 80
3.1.2 董事會運作 25 4.1.2 排水量及監測 53 5.1.2 優厚福利 83
1 利 1.2. CH 害 APT 確認利害關係人利害關係人溝通管道與關注議題關 ER 係人與重大主題鑑別 0505 3.4. 3.1.5 3.1.6 盡職調查公司治理主管審計委員會運作薪資報酬委員會運作 31313232 4.2 化學原料及工廠安全 4.2.1 4.2.2 有害化學品運輸管理一般化學品運送及保存 6058 5.2 5.3 勞資溝通職業安全衛生 5.3.1 大洋塑膠對職安衛的策略與承諾 8791
3. 鑑別重大主題 06 3.1.7 ESG企業永續運作 32 4.3 環境噪音管理 5.3.2 職業安全衛生委員會 91
3.1.8 倫理誠信 34 4.3.1 噪音管理 62 5.3.3 危害辨識、風險評估及 92
4.3.2 噪音監測 62 事故調查
2 關於我們 [CHAPTER ] 3.2 風險管理 3.2.1 風險說明與管理 34 4.4 氣候變遷因應 5.3.4 5.3.5 一般安全會議職業健康服務 9597
2.1 公司簡介 3.2.2 內部控制 36 4.4.1 氣候變遷之財務影響 64 5.3.6 員工參與、諮商與溝通 100
4.4.2 氣候變遷風險與機會 66
2.1.1 組織結構 10 具體因應措施 5.3.7 職業安全衛生訓練 101
3.3 法令遵循
2.2 近年獲獎榮耀與管理實績 2.1.2 2.1.3 營業據點重要沿革 111213 3.3.1 3.3.2 3.3.3 證交法環保法勞動及人權 383838 4.4.3 4.4.4 實體風險下機會之因風險之因應措施應措施 6970 5.3.8 5.3.9 5.3.10 職安衛落實管理職業安全衛生管理系統所涵蓋之工作者職業傷害統計 102102105
2.3 參與外部組織及倡議 3.3.4 職業安全 39 5. 溫室氣體排放 71
2.3.1 外部組織 14 3.3.5 產品服務及客戶關係 40 6. 綠色投資與轉型
2.3.2 國際倡議 14 4.6.1 綠色趨勢 75
3.4 營運績效 附錄
2.4 公益回饋 4.6.2 綠色轉型 75
2.4.1 財團法人義芳慈善基金會 15 3.4.1 財務績效 42 4.6.3 綠色投資 76 GRI 準則指標內容索引 111
2.4.2 敦親睦鄰、和諧共榮 19 3.4.2 營運績效 43 4.7 廢棄物管理 永續揭露指標 - 塑膠工業 118
4.7.1 廢棄物管理 76 保證聲明書 119
2.5 永續發展目標 20 3.5 申訴機制 46
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Revitalization of Assets - Jingmei Land Development Project

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Name
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Cai Cai Jing Xin

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Location
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Xingshun St., Wenshan Dist., Taipei City

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Base area
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The area of the joint construction base is 727 square meters, of which OPC provides land of 492 square meters

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Project
Progress
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The use license has been obtained in June 2023 and is expected to complete the delivery of the house before September.

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Revitalization of Assets - Zhonghe Land Development Project

• Sec. 2, Zhongshan Rd., Zhonghe Location Dist., New Taipei City

•The original land area is 15,730 Pings. After Base area deducting 37% of the donated land, the actual development project area is 9,912 Pings.

Urban Rezoning Project

The rezoning has been completed.

Project progress

Building land development

In April 2023, the original joint construction contract with Kindom Construction Corp. was terminated, and the Zhonghe land will be jointly planned and developed with a suitable builder again in the future, and a specific builder is currently under negotiation.

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