SLC — Investor Presentation 2020

Aug 21, 2020

SHAN-LOONG TRANSPORTATION

Institutional Investors Conference

Date:2020.08.21

Disclaimer

==> picture [329 x 5] intentionally omitted <==

 The Company has not issued financial forecasts. If this presentation contains forward-looking statements and may differ from the actual results . Because it will have many factors which are out of our control. Such as market demand changes, price fluctuation, exchange rate, and changes in international economic conditions and so on.

1

Abstract

==> picture [329 x 5] intentionally omitted <==

 Company Overview

• Industry Overview

• Operation Overview

• Financial Performance

• Future and prospect

2

Company Overview

Company Introduction

==> picture [329 x 5] intentionally omitted <==

• Established in 1976

• IPO in 1997

• Capital ： NT$1.373 billon

• Consolidated revenue ： NT$18.0 billion in 2019

 Business Items ： Cargo transportation, Oil Product, Logistics and Warehousing, Shipping Declarations

3

Industry Overview

Relevance

==> picture [329 x 5] intentionally omitted <==

(1) Gas Station Business Upstream Midstream Downstream (Refinery) (Oil Product Sales) (User) CNPC Gas Consumer FPC Vehicle or power Station machinery users Other (2) Transportation Upstream Midstream Downstream Import and Shipping company Export Transportation Container yard Factory Domestic Distributors

4

Operation Overview

Service Contents

==> picture [329 x 5] intentionally omitted <==

5

Transportation Networks

==> picture [329 x 5] intentionally omitted <==

==> picture [360 x 260] intentionally omitted <==

6

Specialized Equipment -Cargo Transportaion

==> picture [329 x 5] intentionally omitted <==

==> picture [442 x 246] intentionally omitted <==

7

Specialized Equipment -Logistics and Warehousing

==> picture [329 x 5] intentionally omitted <==

==> picture [446 x 255] intentionally omitted <==

8

Networks of Gas Stations

==> picture [329 x 5] intentionally omitted <==

==> picture [248 x 296] intentionally omitted <==

9

Gas Station Diversified Services

==> picture [329 x 5] intentionally omitted <==

==> picture [429 x 258] intentionally omitted <==

10

Financial Overview

Consolidated Income Statement

==> picture [329 x 5] intentionally omitted <==

Unit：Million NTD	2020 H1	%	2019	%	2018	%	2017	%	2016	%
Operating income	7,674	100	18,012	100	19,016	100	17,029	100	15,561	100
Operating cost	6,857	89	16,532	92	17,552	91	15,540	91	14,082	90
Operating margin	817	11	1,480	8	1,464	9	1,489	9	1,479	10
Operating expenses	651	8	1,307	7	1,248	8	1,193	7	1,106	7
Operating netprofit	166	2	173	1	216	1	296	2	373	2
External income and expenses	14	0	281	2	97	0	347	2	70	0
Pre-Tax Income	180	2	455	3	313	2	643	4	443	3
Income Tax Expense	38	0	107	1	77	0	92	1	79	1
Net Income	142	2	348	2	236	1	551	3	364	2
Net Income- Not included land for sale	142		348		236		244		364
EPS(NTD)	1.01		2.14		1.76		4.24		3.09
EPS(NTD)- Not included land for sale	1.01		2.14		1.76		1.84		3.09
Cash divident(NTD)			1.80		1.60		2.56		2.06

11

Revenue

==> picture [329 x 5] intentionally omitted <==

Unit：Million NTD

==> picture [468 x 211] intentionally omitted <==

----- Start of picture text -----

19,016
20,000 18,012
17,029
15,561
5,142
15,000 5,326
5,134
4,884
7,674
10,000
13,874
11,895 12,686 2,698
5,000 10,677
4,976
0
2016 2017 2018 2019 2020 H1
Oil Department Department of transportation Total
----- End of picture text -----

12

Net Income

==> picture [329 x 5] intentionally omitted <==

==> picture [467 x 232] intentionally omitted <==

----- Start of picture text -----

Unit：Million NTD
551
600
500
364 348
400
236
300
200 142
100
0
2016 2017 2018 2019 2020 H1
Total
----- End of picture text -----

13

The Comparative Income Statement

==> picture [329 x 5] intentionally omitted <==

Unit：Million NTD	2020 H1	%	2019 H1	%	Yoy
Operating income	7,674	100	8,888	100	(14)
Operating cost	6,857	89	8,130	91	(16)
Operating margin	817	11	758	9	8
Operating expenses	651	8	629	7	3
Operating netprofit	166	2	129	1	29
External income and expenses	14	0	28	0	(50)
Pre-Tax Income	180	2	157	2	15
Income Tax Expense	38	0	36	0	6
Net Income	142	2	121	1	17
EPS(NTD)	1.01		0.38		166

14

Sales of Oil Products/Monthly Average

==> picture [396 x 5] intentionally omitted <==

Unit：Kiloliter

==> picture [426 x 187] intentionally omitted <==

----- Start of picture text -----

60,000
46,680
49,265 48,605
50,000 48,300 45,509
40,000 15,380 15,190 15,164 14,158 14,034
30,000
20,000
33,885 33,415 33,136 31,351 32,646
10,000
0
2016 2017 2018 2019 2020 H1
Diesel oil Gasoline Total
----- End of picture text -----

15

Dividends Policy: Steady Payout

==> picture [329 x 5] intentionally omitted <==

• Cash dividend payout ratio has maintained between 60% and 91% in recent years.

• In 2019, cash dividend payout ratio is 84%.

Unit： NTD

==> picture [471 x 153] intentionally omitted <==

----- Start of picture text -----

5.00 4.24
4.00
3.09
3.00 2.23 2.02 1.90 2.14
1.76
2.00
1.00 1.50 1.50 1.49 2.06 2.56
1.60 1.80
0.00
2013 2014 2015 2016 2017 2018 2019
Cash Dividend EPS
----- End of picture text -----

16

Future and prospect

17

Thank you! www.slc-new.slc.com.tw ir@slc.com.tw

Q&A