POCS — Interim / Quarterly Report 2021

May 26, 2021

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Prime Oil Chemical Service Corporation Press Conference

May 26, 2021

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Outline

• Company Profile and Financial Snapshots

• Tank Storage Service Division update

• Energy Division update

• Q&A

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Company Profile and Financial Snapshots

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About POCS

Prime Oil Chemical Service Corporation (POCS) was founded in 1978. We are a listed company on the Taiwan Stock Exchange(Stock Symbol 2904.tw). We have two main business divisions now.

Tank Storage Service Division contributes the majority of the revenues. With over 30-year experience, we are the largest-scale and the most well-managed petrochemical shore tank storage service provider in Taiwan.

Tank Storage Service Division primary clients are well-known petrochemical manufacturers and traders. Our service quality has earned the trust of our clients by obtaining ISO 9001, ISO 14001, ISO 18001, ISO45001&CNS45001(Taiwan) certifications and participating in CDI-T. POCS started its Energy Division in 2016. Together with our subsidiary POCS Power Co., Ltd, we look for suitable locations to build photovoltaic power generation systems as a way to collect long-term electricity sales or receive rental revenues, as our main business model.

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Sales Revenue by Division

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（ NTD$K ）
$133,589
140,000 $111,570 $117,190
$101,725
120,000
100,000
80,000
2020Q1
60,000 2021Q1
$22,019
40,000
$15,465
20,000
0
Tank Storage Energy Grand Total
Service
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Tank Storage Service Division accounts for 87% and 84% of consolidated sales revenue in 2020Q1 and 2021Q1.

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Financial Snapshots (1)

Financial Snapshots (1)	Financial Snapshots (1)	Financial Snapshots (1)	Financial Snapshots (1)	Financial Snapshots (1)
Unit：NTD$K(EPS=NTD$)
Consolidated F/S	2021Q1	2020Q1	2020	2019
Sales Revenue	133,589	117,190	540,837	505,225
Gross profit%	41%	42%	47%	46%
Operating Income%	25%	29%	33%	33%
Net Income%	30%	23%	29%	27%
Earnings Per Share	0.58	0.40	2.31	1.96

• Energy Division: Stable profitability and scaling up

• Tank Storage Service Division: Operating costs for 2021 Q1 were slightly higher than 2020 Q1 due to increase in the volume of goods stored by customers.

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Financial Snapshots (2)

Unit ： NTD$K

Consolidated F/S	2021/03/31	2020/03/31	2020/12/31	2019/12/31
Current assets	258,390	329,128	222,362	228,460
Non-current assets	1,404,228	1,220,506	1,415,666	1,196,604
Total assets	1,662,618	1,549,634	1,638,028	1,425,064
Current liabilities	293,472	277,332	364,186	241,805
Non-current liabilities	293,657	242,675	235,404	179,771
Total liabilities	587,129	520,007	599,590	421,576
Shareholders' equity	1,075,489	1,029,627	1,038,438	1,003,488
Liabilities+ Shareholders' equity	1,662,618	1,549,634	1,638,028	1,425,064

The 2021Q1 major change is the Energy Division completed several solar power plants since 2020 H2.

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Tank Storage Service Division

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About Tank Storage Service Division

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Terminal Profile

	West #5	West #2
Area (M 2)	81,054	29,223
Number of Tanks	20	31
Capacity (KL)	242,200	63,450
Loading bays	12	18
Employees	29	19
Throughput (MT/2020)	3,393,109	409,976
Cargos	Oils & chemicals	Chemicals
Key clients	Global oil traders, chemical manufacturers & traders

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Services Offered by POCS

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Piping
Storage
management
Bulk cargo
loading
Ship/Tanker
Truck/ISO-tank
discharging
Warehousing
Drumming
Tanker Truck/ISO-tank
loading
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Coverage of Cargo Transportation

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Our Advantages

• Own a various range of capacity and types of shore tanks to meet different needs

• Can provide customized services

• Have had 30-year experiences in handling all kinds of petrochemical cargos

• Offer comprehensive services by in-house staff

• Focus on our core business to provide the most professional services to clients

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Revenues of Tank Storage Service Division

（ NT$K ） $454,895 500,000 $445,673 450,000 400,000 350,000 300,000 250,000 200,000 $111,570 $101,725 150,000 100,000 50,000 0 2019 2020 2020Q1 2021Q1

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Cargo Throughput

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4,500,000
4,000,000
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
-
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021Q1
West#5 West#2 FTZ
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POCS has started the business of Free Trade Zone in Port of Taichung since 2007. We have offered our services to the global leading oil traders for several years. The annual cargo throughput are around 3 million metric tons since 2012. The throughput in 2021Q1 is slightly bigger than 2020Q1.

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Outlook

• The impact on the global oil price and market by the COVID-19 pandemic has been recovered temporarily. We still need to keep an eye on the development of the pandemic.

• The recovery of the economy in the Asia-Pacific region is the key factor of the demand for oil products and the willingness of the clients to lease tanks.

• The tension within the Asia-Pacific region will affect the supply and demand of domestic petrochemical products.

• The operating costs of our terminals are on the rise due to stricter relevant regulations.

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Energy Division

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About Energy Division

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Market & Sales Overview

• Sales by Location:

Year	2020	2020	2019	2019	2019
Area	Sales Revenue(NT$K)	%	Sales Revenue(NT$K)		%
Taiwan	71,691	83	47,162		79
Cambodia	14,251	17	12,390		21
Year of 2020 – Taiwan
Total PV Capacity installed of Energy Division(kW)				13,375
Total PV Capacity installed and purchased by Taipower in Taiwan[Note]				5,287,787
Market Share by PV capacity installed				0.25%
Total Power Generation of PV of Energy Division (kWh)				14,301,524
Total Power Generation of PV purchased by Taipower in Taiwan (kWh)[Note]				5,750,700,045
Market Share by kWh				0.25%
Note： 1. Source: Taipower Company Website. 2. The above performance of Energy Division is on the consolidated basis.

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PV Systems Status (1)

• Completed

– Domestic: 13.8MW

Year	Capacity (MW)	Type	Note
2019	7.75	Roof-mounted
2020	3.01	Roof-mounted
2020	2.61	Ground-mounted
2021	0.43	Ground-mounted	Commissioned in early 2021
Total	13.8

– Overseas: 5.2MWp (Cambodia)

– Grand Total: 19.0MW

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PV Systems Status (2)

• Under Construction

– Four projects obtained in 2020; One new project obtained in 2021, details are as below:

Project Name	Capacity (MW)	Type	Est. complete date	Note
Tainan (4-7)	1.01	Ground-mounted	Jun 2021
Taichung (4)	1.51	Floating solar	Aug 2021	Due to the change of topography and landform, its type will be changed to floating solar instead.
Kaohsiung (21)	0.46	Covered playground	Sept 2021	The 2021 H1 Feed-in tariff is applicable to this project in the category of covered playground with corrugated steel sheet.
Kaohsiung (22)	0.83	Covered playground and Ground- mounted	Sept 2021
Tainan (8-18)	2.22	Ground-mounted	Jan 2022	Obtained in April 2021
Total	6.03

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Domestic PV Systems

Pingtung Kaohsiung Tainan Nantou Taichung Hualien Yunlin Taoyuan
	Area	Plant no.	MW
	Taoyuan	3	1.052
	Taichung	3	0.927
	Nantou	1	0.397
	Yunlin	2	2.494
	Tainan	3	0.868
	Kaohsiung	20	5.780
	Pingtung	6	1.555
	Hualien	2	0.731
	Total	40	13.80
	Note: Not inclusive of the power plant underconstruction.

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－ Overseas Solar Power Plant Cambodia

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No. of Power Plant
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• 1

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Capacity
•
5.2MW
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Revenues of Energy Division

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（ NT$K ）
$85,942
90,000
80,000
70,000 $59,552
60,000
50,000
40,000
$22,019
30,000
$15,465
20,000
10,000
0
2019 2020 2020Q1 2021Q1
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Future Plans

• Expand large-scale roof-mounted, ground-mounted (activity center, parking lot and outdoor aquaculture-PV coexistence), floating solar and covered playground projects.

• Bid in various tenders from the government.

• Evaluate the feasibility of acquiring existing solar power plants to scale up.

• Evaluate overseas solar power business opportunities.

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PV Project Developed (1)

Wun-Shan Elementary School, Kaohsiung

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Sing-Ren Junior High School, Kaohsiung

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PV Project Developed (2)

Zong-Lien Industry Co., Ltd. Kaohsiung

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Super-Cheng Industrial Co., Ltd. Kaohsiung

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PV Project Developed (3)

Dahan Institute of Technology Hualien

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Ta-Ming High School Taichung

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PV Project Developed (4)

Veterans General HospitalParking lot

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Veterans General HospitalDormitory Phase I & II

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PV Project Developed (5)

Tainan Liujia Farmers Association

Yunlin Gukeng Ground-mounted

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PV Project Developed (6)

Taoyuan Youth Industrial Park –parking lot

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PV Project Developed (7)

Tai Seng Bavet SEZ, Cambodia

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Q & A

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