SPC — Investor Presentation 2021

Mar 19, 2021

==> picture [34 x 34] intentionally omitted <==

Success Prime Corporation Stock Code：2496

2021.03.19

==> picture [34 x 34] intentionally omitted <==

CONTENT 01 Overview of Success Prime Corporation and Subsidiaries 02 Operating Performance 03 Chen-Li Education 【 】Operating Mode and Future Outlook 04 Chen-Li Elm 【 】Operating Mode and Future Outlook

3

==> picture [34 x 34] intentionally omitted <==

Company Profile

Founding Time Chairman Min-Chun Chen CEO Shu-Ling Tseng Employees 235

Success Prime Corporation (2496) founded in 1991

NT$ 191,854 thousands

Capital

Education Business Unit：86% (Year of 2020) Optical Fiber Business Unit：14% (Year of 2020)

Major Service Item

Note：The Board of Directors Approved the disposition of Prime Optical Fiber Corporation in July, 2020.

4

==> picture [34 x 34] intentionally omitted <==

==> picture [399 x 276] intentionally omitted <==

Operating Performance

5

==> picture [34 x 34] intentionally omitted <==

Condensed Income Statement

Unit: NT$ thousands

	2020	2019	YOY
Operating Revenue	776,397	881,610	-11.93%
Operating Costs	404,425	486,638	-16.89%
Gross profit	371,972	394,972	-5.82%
Gross Profit Margin	47.91%	44.80%	－
Operating Expenses	300,429	309,424	-2.91%
Operating Profit	71,543	85,548	-16.37%
Operating Profit Margin	9.21%	9.70%	－
Non-operating Income and Expenses	12,261	1,438	752.64%
Net Income after Tax	62,913	76,977	-18.27%
EPS(NTD)	3.30	4.01	-17.71%

6

==> picture [34 x 34] intentionally omitted <==

==> picture [582 x 357] intentionally omitted <==

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

Profitability
60%
52%
51%
47%
50% 45% 45%
44% 44%
43%
40%
30%
17%
20%
13%
11% 11%
10%
8%
10% 5% 4%
14%
12%
10%
8%
7%
0% 5% 4% 5%
2019 2019 2019 2019 2020 2020 2020 2020
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Gross Profit Margin Operating Profit Margin Net Profit Margin
----- End of picture text -----

7

==> picture [34 x 34] intentionally omitted <==

Revenue of Education Business Unit

Unit: NT$ thousands

==> picture [521 x 297] intentionally omitted <==

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

181,516
175,686
166,656 [ 169,242 ]
164,508 154,135 157,812
146,138
2019 2019 2019 2019 2020 2020 2020 2020
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
----- End of picture text -----

8

==> picture [34 x 34] intentionally omitted <==

Dividend Policy

Unit：NTD；%

	2017	2018	2019	2020
EPS	9.37	7.18	4.41	3.30
Non-reimbursable rights
issue retroactively	8.92	7.18	4.01	-
adjusted EPS
Stock Dividend	0.5	-	1.0	-
Cash Dividend	6.5	4.0	1.5	4.5
Distribution Yield (NTD)	7.0	4.0	2.5	4.5
Dividend Payout Ratio (%) 75%		56%	57%	136%
ROE	21.65%	16.12%	9.75%	7.84%
ROA	15.3%	9.92%	5.86%	4.78%

9

==> picture [34 x 34] intentionally omitted <==

==> picture [405 x 231] intentionally omitted <==

==> picture [195 x 33] intentionally omitted <==

Chen Li Education Co., Ltd. Presenter：Chen Li Education Group CEO Xiao-Cheng Qiu

10

==> picture [34 x 34] intentionally omitted <==

Business Locations

North Applicants：17,535 percentage： 74%

Centre Applicants：3,558 percentage ： 15%

Southern Applicants：2,661 percentage ： 11%

11 Locations in Taiwan K12 Exam – oriented Administration office Taipei Shilin Neihu Banqiao Xindian Xinzhuang Headquarters Branch Branch Branch Branch Branch Hsinchu Fengyuan Taichung Branch Branch Branch Chiayi Tainan Branch Branch

11

==> picture [34 x 34] intentionally omitted <==

Operating Mode of Chen-Li Edu.

Operating Center

Chen-Li Brand & Business Development Strategy HR & Organizational Effectiveness Management Teachers Development

Development Integration Planning Course Development and Market Development

Planning, Course, Teacher Admission Developing, Marketing Charges

Sign up, Choose Course

Profit Coaching and relationship Start maintenance, the Brand build Class

Operating Activity

==> picture [695 x 405] intentionally omitted <==

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

Cumulative Enrollment in Each Subject
4,129 [ 4,227 ]
22,547 25,320
23,754
23,260
19,527
19,131
2,773
12
High School Middle School Total Cumulative
Enrollment
2018 2019 2020 2018 2019 2020 2018 2019 2020
----- End of picture text -----

13

==> picture [34 x 34] intentionally omitted <==

Revenue of High, Middle & Elementary School

==> picture [553 x 245] intentionally omitted <==

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

58,446
69,518 87,086
581,721
502,149 499,269
2018 2019 2020 Unit: NT$ thousands
----- End of picture text -----

==> picture [12 x 12] intentionally omitted <==

High School Middle & Elementary School

14

==> picture [34 x 34] intentionally omitted <==

Tuition

Second Year of High School as an Example

==> picture [418 x 166] intentionally omitted <==

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

16,000
14,000
13,000 13,000
12,000
16,000
9,000
13,000 13,000 14,000
12,000
9,000
20,000
20,000 20,000 19,000
18,000
17,000
18,000 20,000 19,000 20,000 21,000 23,000
----- End of picture text -----

2019 Spring 2019 Fall 2020 Spring 2020 Fall 2021 Spring 2021 Fall Semester Semester Semester Semester Semester Semester

Math English

Unit：NTD

Physical Chemistry

15

==> picture [34 x 34] intentionally omitted <==

Under Outline 108 Course, The advantages We own

 Professional team for new educational system

01

 Minimize class size (Version/Process/Level)  Experience of 30 years (Strong team of professional teachers)

==> picture [107 x 142] intentionally omitted <==

==> picture [160 x 142] intentionally omitted <==

==> picture [107 x 142] intentionally omitted <==

==> picture [190 x 142] intentionally omitted <==

16

==> picture [34 x 34] intentionally omitted <==

==> picture [117 x 76] intentionally omitted <==

Under Outline 108 Course, The advantages We own

==> picture [117 x 88] intentionally omitted <==

Planning & Design for new educational system Lesson planning/ Teaching material & test paper /Equipment/ Professional certification /1.0→3.0 Classroom

02

Classroom 3.0 (multipurpose)

Classroom 2.0 (Middle)

Classroom 1.0 (Big)

==> picture [163 x 113] intentionally omitted <==

==> picture [179 x 111] intentionally omitted <==

==> picture [148 x 111] intentionally omitted <==

17

==> picture [34 x 34] intentionally omitted <==

Under Outline 108 Course, The advantages We own

03

Integrated resource of Group Produced the core instructional videos Developed the new operating mode

==> picture [204 x 115] intentionally omitted <==

==> picture [205 x 115] intentionally omitted <==

==> picture [200 x 113] intentionally omitted <==

==> picture [34 x 34] intentionally omitted <==

Chen Li Elm

==> picture [175 x 245] intentionally omitted <==

==> picture [177 x 84] intentionally omitted <==

18

19

==> picture [34 x 34] intentionally omitted <==

Teaching Material

==> picture [165 x 199] intentionally omitted <==

==> picture [427 x 238] intentionally omitted <==

==> picture [282 x 82] intentionally omitted <==

20

==> picture [34 x 34] intentionally omitted <==

Business Model

Ａ：Introduction of formal courses in private schools（Math , Science）

• Cooperate with the pioneers , to achieve Profits maximization.

• Ｂ：Cooperated with famous School（Teachers＋Teaching material）

• Cooperate with the pioneer of area , to increase brand awareness, retention rate and price.

• Ｃ：Provided supplementary education Know how to cooperator（Teachers training + Course）

• •Based on benchmark school ,our teaching will be satisfied with parents.

• •Authorization method : cooperate first , and then pay. More friendly to cooperators.

21

==> picture [34 x 34] intentionally omitted <==

Cooperative partner

==> picture [145 x 131] intentionally omitted <==

==> picture [156 x 135] intentionally omitted <==

==> picture [185 x 133] intentionally omitted <==

==> picture [137 x 130] intentionally omitted <==

==> picture [622 x 50] intentionally omitted <==

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

WAGOR Pu Tai
Hua Wen Micro Einstein Academy
INTERNATIONAL Elementary
School
School
SCHOOL
----- End of picture text -----

22

==> picture [34 x 34] intentionally omitted <==

Alliance Authorized Unit

==> picture [228 x 84] intentionally omitted <==

==> picture [102 x 80] intentionally omitted <==

==> picture [226 x 55] intentionally omitted <==

==> picture [149 x 117] intentionally omitted <==

==> picture [113 x 99] intentionally omitted <==

==> picture [139 x 150] intentionally omitted <==

==> picture [146 x 18] intentionally omitted <==

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

Renren Giraffe
----- End of picture text -----

==> picture [145 x 145] intentionally omitted <==

==> picture [145 x 145] intentionally omitted <==

==> picture [34 x 34] intentionally omitted <==

Market Explore Focus on Localization

Taipei Hsinchu Taichung Changhua Nantou Chiayi Tainan Kaohsiung

A、Online Merger Offline B、Professional teacher team for Affiliate School C、Authorized teacher training

The flexible and diversified cooperative business model is more in line with the market needs. We will be a trend lead in this industry.

Increase benchmark school’s student retention rate

In-depth development of indicative private schools all over Taiwan

Expand Authorized school actively

23

==> picture [34 x 34] intentionally omitted <==

Three year Authorized School Promoting Plan

==> picture [362 x 290] intentionally omitted <==

24

==> picture [410 x 168] intentionally omitted <==

==> picture [209 x 208] intentionally omitted <==

Chen-Li is everywhere 100 Authorized Schools

==> picture [250 x 165] intentionally omitted <==

==> picture [34 x 34] intentionally omitted <==

In Q2, We will increase 15 Affiliate Schools.

==> picture [194 x 155] intentionally omitted <==

==> picture [194 x 153] intentionally omitted <==

==> picture [203 x 161] intentionally omitted <==

==> picture [203 x 160] intentionally omitted <==

==> picture [203 x 161] intentionally omitted <==

==> picture [203 x 160] intentionally omitted <==

26

==> picture [34 x 34] intentionally omitted <==

Be trusted by parent widely In-depth development of indicative private schools The number of new open class increases than last year

==> picture [248 x 175] intentionally omitted <==

==> picture [248 x 175] intentionally omitted <==

==> picture [247 x 173] intentionally omitted <==

==> picture [248 x 173] intentionally omitted <==

27

28

==> picture [180 x 201] intentionally omitted <==

==> picture [180 x 201] intentionally omitted <==

==> picture [34 x 34] intentionally omitted <==

Future Development of SPC Group

In the post-pandemic era, accelerate group resource integration

==> picture [359 x 205] intentionally omitted <==

Exert the core competitiveness of teaching materials, management guidance, marketing planning, etc. Through online and offline parallel strategies, we establish middle & elementary school branches widely and actively to expand business in this field.

29

==> picture [34 x 34] intentionally omitted <==

Future Prospect of SPC Group

Systematization, intelligence, internationalization

Provide opportunities for expansion of cooperation between cram schools, private schools, international schools, etc. Through a complete mathematics learning platform, we enhance the overall operating performance in 2021, and further focus on Vietnam, Thailand, Indonesia, etc. countries in Southeast Asia. It will bring positive influence to SPC Group’s operations in 2022.。

30

==> picture [34 x 34] intentionally omitted <==

THANK YOU FOR LISTENING