FILOIL EXPANSION PROGRAM3

04/11/23 1

FILOIL EXPANSION FILOIL EXPANSION PROGRAMPROGRAM

FOR THE PROVINCE OF PALAWAN

FILOIL

04/11/23 2

GoalsGoals

To come up with a business plan that would allow FILOIL to penetrate the existing petroleum distribution market in the province of Palawan.

To set-up a viable supply and distribution channel that would sustain FILOIL’s petroleum distribution efforts in the province.

04/11/23 3

DescriptionDescription

The Plan involves setting-up FOUR (4) Supply Depots (with 300 kl storage capacity) and at least TWENTY EIGHT (28) PORTAGAS Stations strategically dispersed within the province to ensure FILOIL’ competitiveness in the market.

FOR MORE INFO...

Complete Profile of the PROVINCE OF PALAWAN

04/11/23 4

WHAT IS A PORTAGAS STATION?

The FILOIL PORTAGAS Station is a fully transportable, single or multi-component PORTABLE GASOLINE STATION designed for easy installation. It is made of 100% fabricated steel materials welded and bolted together, complete with a cashier’s office, a service platform with digital fuel dispensing pump equipment. The PORTAGAS Station comes in three (3) designs that can be adopted with the area. Its steel canopy is conveniently foldable and detachable for transporting purposes. The PORTAGAS over-all design features its significant economy, not only in its construction/ installation phase, but more so in its operational stage. However, the materials and dimensions of the PORTAGAS Station fully complies with the Department of Energy specifications and standards.

04/11/23 5

The Competitive SceneThe Competitive Scene

04/11/23 6

Competitive AnalysisCompetitive Analysis The Palawan Petroleum Market is dominated by the Oil

Majors: PETRON, SHELL, and CALTEX. There are no Independent or Small Players in the province competing with the Oil Majors. Although, there are small “Takal Operators” that buy their fuel products from the Oil Majors in their small time retail operations

PETRON– Operates an all-products depot, with an LPG refilling plant

and lubricants warehouse in Puerto Princesa City– Is considered a major force in the retail and wholesale fuel

distribution industry, with at least one (1) gasoline retail station operating in almost all towns of the province

– Has an established number of dealers and distributors

04/11/23 7

Competitive AnalysisCompetitive Analysis

SHELL– Have product borrowing arrangement with

PETRON Depot in Puerto Princesa City for its fuel withdrawals.

– Is also considered a major force in the retail and wholesale fuel distribution industry in Palawan, with at least one (1) gasoline retail station operating in almost all towns of the province

– Has an established number of dealers and distributors also.

04/11/23 8


CALTEX– Also has product borrowing arrangement

with PETRON Depot in Puerto Princesa City for its fuel withdrawals.

– Through its appointed Distributor, Mr. William Tan, is also a major force to contend with in the retail and wholesale fuel distribution industry in Palawan.

– Has an established number of dealers and distributors in the province.

04/11/23 9


PETRON SHELL CALTEX FILOIL

SUPPLY ADVANTAGE

Has Own All- Products Depot in Puerto Princesa City

With Supply Arrangement with Petron

With Supply Arrangement with Petron

With OWN Supply Depots ( 300 KL capacity ) to be set-up in four strategic areas

LOGISTICAL ADVANTAGE

With Fleet of Haulers



With ready Fleet of Haulers

RETAIL MARKET PRESENCE

Has a retail station in almost every town

Has retail station in almost every town

Has retail station in almost every town

Will still set up retail stations through Business Partners

BRAND ACCEPTANCE

Nationwide Coverage

Nationwide Coverage

Nationwide Coverage

Via Market Niche strategy to attain province wide coverage

04/11/23 10

The Market StrategyThe Market Strategy

04/11/23 11

Market StrategyMarket Strategy

The Market strategy will involve the following course of action FILOIL will divide the Palawan market into FOUR

(4) MARKET TERRITORIES:– UPPER NORTH will include the municipalities

of Busuanga, Coron, Culion, Cuyo, Linapacan, Agutaya, Magsaysay

– NORTH will be El Nido, Taytay, San Vicente, Roxas, Dumararan, and Araceli

– CENTRAL will be Puerto Princesa City, Aborlan, Kalayaan, and Cagayancillo

– SOUTH will be Espanola, Narra, Quezon, Rizal, Brooke’s Point, Balabac, and Bataraza

04/11/23 12


The Market strategy will involve the following course of action FILOIL to set-up at least ONE (1) PORTAGAS Station per Town:

Upper North: 7 PORTAGAS Stations

North: 6 PORTAGAS Stations

Central: 7 PORTAGAS Stations

South: 8 PORTAGAS Stations

28 PORTAGAS Stations FILOIL to strategically locate and set-up a SUPPLY DEPOT within the

FOUR (4) MARKET TERRITORIES (with a storage capacity of 300 kl per Depot)

Upper North: Coron town North: Roxas townCentral: Puerto Princesa CitySouth: Narra town

04/11/23 13

Market Territory PROFILE FILOIL Expansion Program for Palawan Province

UPPER NORTH TERRITORY: Busuanga, Coron, Culion, Cuyo, Linapacan, Agutaya, Magsaysay

NORTH TERRITORY: El Nido, Dumaran, Roxas, Taytay, San Vicente, Araceli

CENTRAL TERRITORY:Puerto Princesa City, Kalayaan, Aborlan, Cagayancillo

SOUTH TERRITORY:

Espanola, Narra, Brookes Point, Rizal, Quezon, Bataraza, Balabac

LEGEND:

SUPPLY DEPOT FACILITIES(Coron, Roxas, Puerto Princesa City, Narra)

04/11/23 14


FILOIL to SELECT and APPOINT FOUR (4) BUSINESS PARTNERS who will each manage and operate an assigned Market Territory. Scope of responsibilities include the following:

– Operate and Manage the Supply Depot

– Operate their own PORTAGAS STATION

– Recruit and Appoint PORTAGAS STATION OPERATORS in each town within the assigned market territory

– Supervise and Assist the PORTAGAS STATION OPERATORS in their retail operations

04/11/23 15


FILOIL’s FOUR (4) BUSINESS PARTNERS will focus on the PORTAGAS STATION RETAIL OPERATIONS AND SUPPLY DEPOT OPERATIONS ONLY.

FILOIL to Solely HANDLE the WHOLESALE, COMMERCIAL & INDUSTRIAL FUEL SALES OPERATIONS through its designated Palawan

Business Representative.

04/11/23 16

Market Strategy OverviewMarket Strategy Overview

FILOIL

RETAIL MARKET WHOLESALE, COMMERCIAL, INDUSTRIAL MARKET

BUSINESS PARTNERPALAWAN BUSINESS REPRESENTATIVE

04/11/23 17

Market Strategy OverviewMarket Strategy Overview

RETAIL MARKET

Tricycle

Multicabs & Jeepneys

Trucks

Buses

Motorcycle

Cars & SUVs

Small & Medium Marine Transport Units

WHOLESALE, COMMERCIAL, INDUSTRIAL MARKET

Wholesalers/Traders

Mining Companies

Shipping Companies

PALECO & NAPOCOR

Multinational/ Big Companies with Distribution (Warehouse) & motorpool facilities

04/11/23 18

Project ViabilityProject Viability

04/11/23 19


Capital Investment for SUPPLY DEPOT Land Development & Construction Cost: Php 7.5M (including piping, lighting & electrical, and concreting & other structures)

Storage Tanks (30,000 Liters capacity x 10): Php 3 M

(Fabrication Cost/Tank: Php 300,000 x 10 units) ESTD TOTAL COST FOR FOUR (4) SUPPLY DEPOTS:

Php 10.5M x 4 = Php 42 M

Land dev’t & constn cost Php 30M

Storage Tan Fabrication Php 12M

04/11/23 20


Capital Investment for PORTAGAS STATIONS Complete set-up including structures, pavement, pump and tanks,

pipings, signages, and lightings: Php 2.5 M

ESTD TOTAL COST FOR TWENTY EIGHT (28) PORTAGAS STATIONS: Php 2.5M x 28 units = PHP 70 M

04/11/23 21

Projected VolumeProjected Volume

ESTD TOTAL VOLUME FOR TWENTY EIGHT (28) PORTAGAS STATIONS:

Average Daily Volume: 2,000 Liters per PORTAGAS STATION

Average Monthly Volume: 60,000 Liters per PORTAGAS STATION

Estd Total Volume per Month for 28 PORTAGAS STATIONS: 28 X 60,000 Liters = 1,680,0000 Liters per Month

ESTD TOTAL VOLUME FOR COMMERCIAL/ INDUSTRIAL SALES: 1,000,000 Liters per Month

ESTD COMBINED VOLUME PER MONTH: 2,680,000 Liters per Month

04/11/23 22

ResourcesResources

FILOIL has a dedicated Self propelled Motorized Fuel Barge with a storage capacity of 1,000,000 liters per voyage.

FILOIL has a team of personnel that would handle the entire business operations.

FILOIL has a standing Supply Arrangement with TOTAL PHILS. that may be explored to sustain the project.

FILOIL was already able to identify and appoint the FOUR (4) Business Partners for Palawan, although contract finalization is still up for the three (3) Business Partners.

04/11/23 23

ScheduleSchedule

Construction & Operational schedule milestones for Supply Depot Facilities

Jan Feb Mar Apr May Jun July Sep Oct Nov Dec

Central Depot Const’nCentral Depot Const’n

South Depot Const’nSouth Depot Const’n

North Depot Const’nNorth Depot Const’n

Central Depot Operational phase

South Depot Operational phase

North Depot Operational phase

Upper North Depot Const’n Upper North Depot Operational phase

2008

04/11/23 24

Current StatusCurrent Status High-level overview of progress against schedule

– Central Depot already in permitting and documentation stage. The site is ready for construction

– South Depot is finalizing its contract with Business Partner. The site is ready and identified.

– North Depot is identified and contract is still up for finalizing with Business Partner

Overview of PORTAGAS STATION progress We have one (1) PORTAGAS Station already in its operational phase,

located at North Road, Tiniguiban, Puerto Princesa City. It is situated on the Central Depot site. Construction of ONE (1) PORTAGAS Station each for the South and North Territory will commence at the same time the South and North Depot Facilities are begun.

Documents

FILOIL EXPANSION PROGRAM3