ACC — Investor Presentation 2017

Jul 27, 2017

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Asia Cement Corporation IR Presentation

CEO K.Y Lee Chief Executive VP Y.F. Chang CFO Doris Wu IRO Giselle Lin IRO Linus Chen

2017 07 27

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1. ACC 1H17 briefing

2

ACC: 1H17 Overview

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Cement

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Taiwan：inland ASP stays flat as shipment suffers from weak domestic property demand, export sales decreased due to highly competitive market.

China：recorded a turnaround from loss to profit, as cement ASP increased significantly yoy, and the adjusted debt portfolio eliminated 。 the risk of FX swings

Consolidated Subsidiaries

Equity investee

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IPP： profitability stays as 。 LNG cost keeps low

Stainless steel： benefited from strategic adjustment

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U-ming Marine: profitability improves as fundamental recovers.

FENC: the niche market and the expansion plan in Vietnam brought more upside potential

3

China Cement Sector: policy and market

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2017 demand stays flat, supply side reform is driving the sector to a healthier future in the mid to long term

Top-down

Raised industry 1 requirements

Regularly nationwide check on energy-consumption, eco-friendly, quality, safety standards

Capacity phrase Aim to retire 10~20% clinker capacity by 2020. 2 out

Bottom-up

Scheduled 3 production halt

Restrain output and inventory, stabilize the ASP and the profit

Explore the potential of jointly operation and Consolidation 4 the subsidy scheme to buy capacity out

4

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2. ACC’s mining site in Hualien

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太魯閣
國家公園
礦區
太魯閣
崇德村
國家公園
富世村
太
魯
閣
礦區
大
廠
橋
區
花蓮縣秀林鄉
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Asia Cement is no longer in the Taroko National Park

The mining in the overlapping area has stopped and finished the replantation since Oct 2015

Automatically monitor air and water quality, noise and vibration in and surrounding the mining site.

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水質檢測-2：立霧溪匯流口上游
水質檢測-3：立霧
噪音、振動檢測
溪匯流口下游
（共2站）
交通流量
水質檢測-1：沉砂池溢洪口
氣象、空氣檢測
（共2站）
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Good air quality approved by EPA

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Data of air quality monitoring （2016~2017)

監測項目	監測項目	礦區內(周界)	礦區內(周界)	礦區內(周界)	礦區內(周界)	礦區外鄰近民宅	礦區外鄰近民宅	礦區外鄰近民宅	礦區外鄰近民宅	法規 標準	符合 法規
		夏季	秋季	冬季	春季	夏季	秋季	冬季	春季
一氧化碳 (ppm)	最大小時值	0.3	0.5	0.4	0.2	0.3	0.3	0.7	0.3	<35	OK
	最大8小時值	0.2	0.3	0.3	0.2	0.2	0.2	0.6	0.2	<9	OK
二氧化硫 (ppm)	日平均值	0.003	0.005	0.005	<0.001	0.003	0.002	0.004	0.002	<0.1	OK
	最大小時值	0.007	0.011	0.025	0.002	0.007	0.013	0.026	0.010	<0.25	OK
二氧化氮 (ppm)	最大小時值	0.017	0.031	0.044	0.020	0.024	0.023	0.026	0.035	<0.25	OK
PM2.5 (μg/m3)	24小時平均值	12	8	15	22	12	12	21	26	<35	OK
PM10 (μg/m3)	日平均值	40	29	35	50	52	40	38	62	<125	OK
TSP (μg/m3)	24小時平均值	45	44	183	124	60	44	132	106	<250	OK

資料來源:日揚環境工程公司執行現場採樣及分析檢測工作均經環保署認可

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Low exposure to noise, approved by EPA

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Data of noise monitoring （2016~2017)

監測項目	礦區內(周界)	礦區內(周界)	礦區內(周界)	礦區內(周界)	礦區外鄰近民宅	礦區外鄰近民宅	礦區外鄰近民宅	礦區外鄰近民宅	管制 標準	符合 法規
	夏季	秋季	冬季	春季	夏季	秋季	冬季	春季
L日(dB) 06:00~20:00	53.2	56.9	52.9	44.9	57.2	54.9	54.9	53.7	<60	OK
L晚(dB) 20:00~22:00	50.9	52.7	50.6	40.9	53.8	52.0	50.7	51.3	<55	OK
L夜(dB) 22:00~06:00	42.7	48.8	42.6	38.6	58.7	48.7	50.3	34.5	<50	OK

Ps: no mining operation in the mining site at night

資料來源:日揚環境工程公司執行現場採樣及分析檢測工作均經環保署認可

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Water quality and the level of vibration all fit the re ulation re uirements g q

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	監測項目 Vibration	礦區內(周界)	礦區內(周界)	礦區內(周界)	礦區內(周界)	礦區外鄰近民宅	礦區外鄰近民宅	礦區外鄰近民宅	礦區外鄰近民宅	管制 標準	符合 法規
		夏季	秋季	冬季	春季	夏季	秋季	冬季	春季
	LV10日(dB) 8:00~22:00	40.2	34.9	50.4	30.2	30.0	30.4	31.9	38.8	<65.0	OK
	LV10晚(dB) 22:00~8:00	36.8	33.4	31.6	30.0	30.0	30.0	30.0	36.8	<60.0	OK

	監測項目 quality	立霧溪上游	立霧溪上游	立霧溪上游	立霧溪上游	立霧溪下游	立霧溪下游	立霧溪下游	立霧溪下游	河川 水體 標準	沉砂池放流口	沉砂池放流口	沉砂池放流口	沉砂池放流口	放流水 標準	符合 法規
Water
		夏季	秋季	冬季	春季	夏季	秋季	冬季	春季		夏季	秋季	冬季	春季
	pH值	8.0	7.8	8.1	8.0	8.1	7.9	8.2	8.0	6.5~8 .5	8.0	8.1	8.3	8.0	6.0~9.0	OK
	水溫(°C)	31.6	23.7	17.4	21.9	30.3	24.1	17.1	22.0	-	28.4	27.1	17.9	25.8	5~9月 <38 4~10月 <35	OK
	導電度 (μmho/cm)	362	345	399	386	354	377	375	369	-	528	545	525	432	-	OK
	DO(mg/L)	10.1	6.7	8.3	8.1	9.3	7.1	8.4	8.0	≧6.5	6.9	5.3	6.2	6.8	-	OK
	SS(mg/L)	3.8	27.4	52.7	15.4	16.8	35.0	23.6	24.4	25	13.1	7.2	46.3	23.8	<50	OK
	BOD5(mg/L)	<1.0	<1.0	<1.0	<1.0	<1.0	<1.0	<1.0	<1.0	2.0	<1.0	<1.0	<1.0	<1.0	-	OK
	COD(mg/L)	N.D.	3.8	N.D.	2.6	2.9	4.3	4.4	N.D.	-	3.3	2.8	N.D.	N.D.	<100	OK
	油脂(mg/L)	<0.5	0.9	<0.5	<0.5	<0.5	<0.5	<0.5	<0.5	-	<0.5	<0.5	<0.5	<0.5	-	OK

資料來源:日揚環境工程公司執行現場採樣及分析檢測工作均經環保署認可

10

Effective flood channel and anti-landslide instalment

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Survived though all the historical mega typhoons

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Horizontal and vertical flood channel
395
295
Served as temporary
detention pond
120
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Designed
detention
To the Li-wu river
pond
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Drainage facilities

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殘壁橫向排水溝
SL295m
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殘壁縱向排水溝
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寬1m
深1m
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內降階段採礦法

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No landslide even during 921 & 331 earthquake

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2016年攝
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• 1986.11.15 Epicenter Hualien (magnitude 6.8）

• 1990.12.14 Epicenter Hualien (magnitude 6.7）

• 1999.09.21 Epicenter Nantou (magnitude7.3）

• 2002.03.31 Epicenter Hualien (magnitude6.8）

• 2015.01.07 Epicenter Hualien (magnitude 5.4）

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Epicenter of 921 earthquake Epicenter of 331 earthquake

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Immediate replantation after the concave mining

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1. Concave mining for security concern。

2. Replantation right after the mining to reduce the impact to the landscape。

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Trees are 5~6m tall 5 years after the replantation

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The eco-system of the primary forest can be restored after 18 years

Oct 2016

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ACC’s replantation achievement has became global benchmark

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日本琦玉縣秩父郡武甲山礦區 義大利馬蕯卡拉拉礦區
亞泥花蓮新城山礦場
日本九州大分縣太平洋水泥津久見礦區 澳洲 Kalgoorlie 礦區 瑞士霍爾希姆 (Holcim) 礦區
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The promise and the future

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Reuse and regeneration of the mining site (Botanical garden, museum etc)

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Learn from experience of Butchart Garden: Used to be a mining site of a cement company.

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Now one of the most popular tourist spot in Canada

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