ACC — Investor Presentation 2019

Jun 18, 2019

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亞洲水泥股份有限公司 Asia Cement Corporation

Stock code: 1102 TT

IR presentation

Jun 2019

Disclaimer

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This presentation contains forward-looking statements. These forward-looking statements are subject to risks, uncertainties and assumptions, some of which are beyond our control. Actual results may differ materially from those expressed or implied by these forward-looking statements. Because of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this presentation might not occur in the way we expect, or at all. You should not place undue reliance on any forward-looking information.

In preparing the information herein, ACC have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was provided to ACC or which was otherwise reviewed by ACC. Neither ACC nor its advisors have made any representation or warranty as to the accuracy or completeness of such information and nor do they assume any undertaking to supplement such information as further information becomes available or in light of changing circumstances. None of ACC, nor any of their respective affiliates, advisers or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation. Neither this presentation nor any of its contents may be reproduced to a third party without the prior written consent of ACC.

2

Table of Contents

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 Company snapshot

• ’

• What s New

• PRC market overview

• Taiwan market overview

• Dividend Policy

• Financials

• CSR achievement

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Company Snapshot

4

Company Snapshot

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Market Cap: US$ 4.8 bn / NT$ 151.6 bn (as of 31 May 2019)

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• Establish in March 1957
ACC •
The second-largest cement player
Taiwan •
.
Cement capacity: 5.0 mtpa
•
Top 10 [th] clinker producer
ACC • Strategic location in Central and Western China
Asia Cement
China •
Cement capacity: 33.0 mtpa.
(1102 TT)
(743 HK) •
Listing in HKEx since May 2008
•
Consolidated entities: cement value-chain
business, IPP, stainless steel, transportation.
Investment
•
Equity investees: FENC (1402 TT), U-Ming
Marine (2606 TT) and Shanshui Cement (691 HK)
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Investment Portfolio in Far Eastern Group

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NT$ mn

Eit	Incor-		Stk	Holdins	Market	Equity Income	Equity Income	Equity Income	Equity Income
quy Hold(3)	porated Year	Investees	oc code	g (1)	Value(2)	2016	2017	2018	1Q19
2004 Asia Cement (China) Holdings Corp. 743 HK 67.7% 34,104 1997 Far EasTone Telecommunications Lt 4904 TT 1.0% 2,291 1992 Far Eastern International Bank 2845 TT 2.4% 857 1975 Oriental Union Chemical Corp. 1710 TT 7.2% 1,658
ˇ 1968 U-Ming Marine Transport Corp. 2606 TT 39.3% 10,257						(345) 392 655 37
1967 Far Eastern Department Stores Ltd. 2903 TT 5.7% 1,308
ˇ 1949 Far Eastern New Century Corp. 1402 TT 23.8% 38,586						1,347 1,694 2,343 331
Others						347 435 1,147 (33)
Total 89,059						1,350 2,522 4,144 335

Note1: Asia Cement comprehensively holds 72.0% of Asia Cement(China) Holdings.

(100%-owned AC(Singapore) holds a 4.1% stake and Asia Engineering Pte. holds a 0.2% stake of Asia Cement(China)) Note2: The market value is calculated on the basis of ACC's holding shares and the equity's closing price at 29 Mar 2019. Note3: Since 1 January 2013, Asia Cement (China) Holdings Corp. and most unlisted investees are classified as the consolidated entities.

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What’s New

7

What’s New ： Strong ASP and GP growth of ACCH

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ASP by quarter GP/t by quarter
R$/t
R$/t
2017 2018 1Q19 2018 2017 2019
368 149
391 167
133
339
127
319 285
314
104
99
55 48
230
233
221 23
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
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What’s New ： Undergoing Investments and Future Prospects

1. GM of aggregate reached 81% in 2018. Total capacity will raise to 6mt in 3Q19. 2. IPP phase II project is expected to start operation by the end of 2020. Total CAPEX budget is NT$10.7bn (NT$ 3.0bn was spent in 4Q18).

Aggregate Capacity in China

IPP Phase II project in TW

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Jiangxi Huanggang GM(%)
mt
10 100%
79% 81%
8 80% 670+500MW
6 60% 670MW
4 40%
2 20%
0 0% 2018 End of 2020
2017 2018 3Q 2019
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What’s New ： Growing investment income

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1. BDI index has rebounded after 04/2019, benefit to U-Ming Marine.

2. FENC’s new capacity in PTA and PET sector supports 2019 earnings growth. 3. Shanshui Cement was reclassified as Equity Investment from FVTOCI since 10/31/2018, loss has reduced in 1Q19.

NT$ mn

		Equity income (1102 TT)	Equity income (1102 TT)	Equity income (1102 TT)	Equity income (1102 TT)	Equity income (1102 TT)	Equity income (1102 TT)	Equity income (1102 TT)	Equity income (1102 TT)	Equity income (1102 TT)	Equity income (1102 TT)	Equity income (1102 TT)
Investees	Holdings	1Q17	2Q17	3Q17	4Q17	2017	1Q18	2Q18	3Q18	4Q18	2018	1Q19
U-Ming Marine Transport Corp. 39.3% Far Eastern New Century Corp. 23.8% Shanshui Cement Co. Ltd. 17.5% Others (unlisted investees)		(7) 54 189 156 392 83 199 294 79 655 37 312 290 791 302 1,694 510 1,000 686 147 2,343 331 - - - - - - - - 377 377 (169) 18 135 105 177 435 136 364 162 108 770 136
Total		323 479 1,085 635 2,522 729 1,564 1,142 710 4,144 335

R$ mn

		Profit Attributable to Shareholders of Parent (691 HK)	Profit Attributable to Shareholders of Parent (691 HK)	Profit Attributable to Shareholders of Parent (691 HK)	Profit Attributable to Shareholders of Parent (691 HK)	Profit Attributable to Shareholders of Parent (691 HK)	Profit Attributable to Shareholders of Parent (691 HK)	Profit Attributable to Shareholders of Parent (691 HK)	Profit Attributable to Shareholders of Parent (691 HK)
Shanshui Cement		1H17	2H17	2017	1Q18	2Q18	2H18	2018	1Q19
		601 (471) 1,223 2,197 (211) 1,445 (44) 645

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What’s New?

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1102 TT:

Improved Financial Fitness

CAPEX : Mainly for IPP phase II.

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NT$ mn Net Debt NT$ mn 4275
120,000 Net Gearing Ratio 60%
47.7%
45.6% 50%
90,000 39.4%
34.7% 40%
60,000 30%
20% 1157
30,000 679
10%
177
0 0%
2017 2018 1Q18 1Q19 2017 2018 1Q18 1Q19
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Generous Dividend Policy with Steadily High Payout Ratio

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Total dividend NT$/Share, %
Dividend payout(%)
100% -
100% 99%
- 89% 89%
2.8
-
2.2 -
-
1.1 0.9 1.2
2014 2015 2016 2017 2018
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What’s New?

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743 HK:

Healthier Debt Structure

Steady CAPEX

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R$ mn R$ mn
Net Debt
10,000 60%
Net Gearing Ratio
49.7%
177
50%
7,500 40.0% 154
40% 135
5,000 30%
20%
13.4%
2,500
10%
0 0%
2016 2017 2018 2016 2017 2018
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Stable and higher-than-average dividend payout

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Total Dividend R$/Share, %
Dividend payout
0.62
42% 40%
35%
0.16
0.03
2016 2017 2018
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Note: The average of industry peers’ dividend payout ratio in 2018 is 27%.

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Asia Cement (China) Operating Data

13

AC(China): Regional P.O42.5 Price & Inventory Level

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Unit: R$/t ; %

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Hubei (Wuhan)
R$/t %
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Jiangxi (Nanchang)
R$/t %
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Sichuan (Chengdu)
R$/t %
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Jiangsu (Nanjing) R$/t %

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Source: Digit Cement

AC(China) : 1Q19 Operating data points

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ASP

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R$/t
RMC:R$/mm [3 ] 1Q18 1Q19
495
423
368
314
292
259
54 59
Cement Clinker RMC Aggregate
Note: Net of VAT
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Shipment

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mt Shipment
RMC:mm [3 ]
1Q18 1Q19
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5.4 5.5
0.8 0.8 1.0
0.4 0.2 0.4
Cement Clinker RMC Aggregate
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Cost Breakdown

Gross Margin

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Others Others 1Q18 1Q19
18% 20% 82% 78%
D&A 14% D&A 12%
Coal Coal
35% 33% 40% 37%
33% 33%
Power
Power 17%
15% 14%
15%
Materials Materials
18% 21%
Cement Clinker RMC Aggregate
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1Q18

1Q19

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AC(China) : 1Q19 Operating data points

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Cement Product by Regions

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R$/t
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ASP

1Q18 1Q19

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mt
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Shipment

1Q18 1Q19

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398
374
357
343
308 329 309 319
Jiangxi Hubei Sichuan Jiangsu
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Product Type

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1Q19
Low Grade
Cement
10.3%
High Grade
Cement
89.7%
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2.1 2.0 2.0
1.7
1.1 1.1
0.5 0.5
Jiangxi Hubei Sichuan Jiangsu
1Q18
Low Grade
Cement
11.7%
High Grade
Cement
88.3%
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AC(China) : 2018 Operating data points

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R$/t ASP
RMC:R$/mm [3 ]
2017 2018
436
342 342
319
245
220
58
42
Cement Clinker RMC Aggregate
Note: Net of VAT
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mt
RMC:mm [3 ] Shipment
2017 2018
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28.2 29.0
3.1 3.5
1.8 1.5 1.0 1.4
Cement Clinker RMC Aggregate
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Cost Breakdown

Gross Margin

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Others Others 2017 2018
81%
17% 19% 79%
D&A 13% D&A 11%
Coal Coal 46%
37% 34% 39%
Power 25% 24%
Power
15%
17% 13%
Materials
Materials 4%
21%
16%
Cement Clinker RMC
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Aggregate

2017

2018

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AC(China) : 2018 Operating data points

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Cement Product by Regions

ASP

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R$/t
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FY17 FY18
362
331 351 343
261 270
239 231
Jiangxi Hubei Sichuan Jiangsu
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Shipment

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mt
10.9 11.0
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FY17 FY18
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9.0
7.6
6.8
6.5
2.9
2.5
Jiangxi Hubei Sichuan Jiangsu
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Product Type

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2017
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2018

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Low Grade
Cement
14.1%
High Grade
Cement
85.9%
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Low Grade
Cement
11.6%
High Grade
Cement
88.4%
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Shanshui Cement Profile

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Shanshui : Overview by Regions

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2018 Revenue by Regions

2018 Pretax Profit by Regions

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NorthEast
China
18%
Shanxi
Shanxi
6%
9%
Xinjiang Shandong Xinjiang
Shandong 3% 90% 4%
70%
Capacity by Regions
Cement Clinker
Xinjiang
4% Xinjiang
Total capacity: 100.38mt
3%
Total capacity: 50.27mt
Northeast Northeast
China China
27% 30% Shandong
Shandong 50%
54%
Shanxi
Shanxi
16%
17%
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Note: Western Shandong region includes the capacities in Tianjin city. Northeast China region includes Liaoning province and Inner Mongolia. 20 Source: China Shanshui Cement Group Ltd. 2018 annual report.

Shanshui : Revenue Breakdown

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2017
2018
Clinker
Clinker
15%
15%
RMC
RMC
8%
7%
Others
Others
2%
4%
Cement
Cement
75%
74%
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Source: China Shanshui Cement Group Ltd. 2018 annual report

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Shanshui : Regional P.O42.5 Price & Inventory Level

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Unit: R$/t ; %

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Shandong (Jinan)
R$/t %
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Inner Mongolia (Hohhot)
R$/t %
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Shanxi (Taiyuan)
R$/t %
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Liaoning (Shenyang) R$/t %

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Source: Digit Cement

Shanshui : 2018 Operating data points

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ASP Shipment
R$/t mt
RMC:R$/mm [3 ] 2017 2018 RMC:mm [3 ] 2017 2018
41.1
449 39.2
344
330
271 265
236
9.2 10.0
3.4 2.9
Cement Clinker RMC Cement Clinker RMC
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Note: Net of sales tax and surcharge.

Cost Breakdown

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Others
Others
19%
22%
D&A 10%
D&A 8%
Coal Coal
27% 25%
Power 11% Power 9%
Materials Materials
33% 36%
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2017

2018

23

Source: China Shanshui Cement Group Ltd. 2018 annual report.

Shanshui : 2018 Operating data points

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Cement Product by Regions

ASP

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R$/t
2017 2018
398
364
310
289
247 257 267
227
Shandong Shanxi Northeast Xinjiang
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Note: Net of sales tax and surcharge.

Product Type

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2017
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Low Grade
Cement
27%
High Grade
Cement
73%
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Shipment

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mt
2017 2018
25.9
24.8
9.9
9.1
3.7 4.2
1.6 1.1
Shandong Shanxi Northeast Xinjiang
2018
Low Grade
Cement
22%
High Grade
Cement
78%
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Source: China Shanshui Cement Group Ltd. 2018 annual report.

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Shanshui : Shareholder Structure

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Prior EGM 2018/10/30

Current

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China
China
Shanshui Asia Cement
Shanshui
Asia Cement Investment & Voting
Investment
19.47% Alliance
& Voting
25.09%
20.74%
Alliance
26.72%
CNBM
Tianrui 12.94%
Group
CNBM 21.85%
Tianrui 16.67%
Group
28.16%
Others
25.00%
Others
3.36%
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Note: Asia Cement holds 17.46%, and 3.28% of the interests are held through agreement to acquire interests in the Company, required to be disclosed under s.317(1)(a) and s.318 of the SFO.

Source: http://www3.hkexnews.hk/listedco/listconews/SEHK/2018/1030/LTN20181030956_C.pdf.

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PRC Market Overview

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China Cement Demand: The New Normal

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2016-2020:

2009-2011: Demand boosted by R$4 trillion stimulus

2012-2015:

Demand increase slowed down and oversupply weakened ASP

“New Normal Economy” urges Supply-Side Reform and industry evolution.

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mt
3,000 Cement Production
2,432 [ 2,476 ]
2,500 2,348
2,403 2,316 2,210
2,063 [ 2,184 ]
2,000 1,868
1,629
1,500
1,000
500
0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
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2019 cement demand :

• Demand from infrastructure is expected to pick up as government is carrying out a R$2.6tn transportation investment in 2019.

• Demand from real estate could be stable for 2019H1 and slowing down in 2019H2.

• Some cities has loosen the property restriction measures, providing upside risk of the property demand.

Source: Ministry of Industry and Information Technology(MIIT), National Development and Reform Commission(NDRC), China Cement Association(CCA)

27

China Cement Supply-side Reform:

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• Control capacity expansion

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1. Stricter policy for clinker replacement 2. Tightening regulation for crossprovincial capacity replacement.

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• Phase out capacities by lifting industry standards

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1. Raise UT rate from 70% to 80% 2. Eliminate PC 32.5R grade of cement 3. Promote intelligent manufacturing

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1. Government to play a more active Schedule production role on implementing. halt to restrain output 2. Differentiation measures provide

2. Differentiation measures provide uncertainty in 2019.

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1. M&A, cross holding, JVs, sales platform

Encourage consolidation 2. Carry out pilot program to subsidize capacity out

Source: China Cement Association “De-capacity action plan”, ”Cement industry 13[th] five year plan”, PRC State Council “Guiding policies to facilitate structural upgrade of building materials industry”

28

AC(China): Survival of the Fittest

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Strength of AC(China)

• Superior to regulatory requirements in energy efficiency and GHG emission

• Sufficient limestone resources and reserves

• 85% sales are high-grade cement

• 90% UT rate and no ≦ 2500 t/d clinker lines

Energy Consumption and Emission

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2017 2018
120.0
110.2 109.9
110.0 103.3 102.8
100.0 94.8 94.6
90.0
79.3 78.9
80.0
70.0
57.0 57.2
60.0
50.0
40.0
Coal Power Energy Power Energy
consumption consumption consumption consumption consumption
of clinker of clinker of clinker of cement of cement
(kgce/t) (kWh/t) (kgce/t) (kWh/t) (kgce/t)
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Unit: mg/m3	SO2	SO2	NOX	NOX	Dust Particles	Dust Particles
	2017	2018	2017	2018	2017	2018
ACC Jiangxi	80 59		309 282		10 16
ACC Hubei	40 18		262 252		12 8
ACC Sichuan	13 4		294 130		14 5
National Standard	200		400		30
Special Limit	100		320		20
Ultra-low Standard	35		100		10

Note: Averaged by capacity

29

AC(China): Foreseeable Solid Regional Demand

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Yangtze River Economic Belt

Rise of Metropolitan Regions

Rigid demand for real estate

Hubei & Sichuan: Production Halt well-implemented, forming market efficiency

Source: National & Provincial Development and Reform Commission

AC(China) Strategy: to Dominate Locally

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2018: Capacity Rank top 10 nationwide

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：
Capacity 11 mt / year
：
Capacity 14 mt / year
Chengdu - Sichuan
Jiujiang - Jiangxi
：
Capacity 8 mt / year
Nanchang - Jiangxi
Wuhan - Hubei
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Source: ACC(C) annual report

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Taiwan Market Overview

32

TW Cement Market: Sophisticated and Highly Concentrated

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Mature and net export cement market

Oligopoly keep ASP steady

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91.58% Anti-dumping tariff

imposed on cement products from China

2011/5/30~2022/2/19

• Demand bottomed in 2017 due to private sector weakness.

• Catalyst: NT$420 billion infrastructure budget from 2018~2021

• ACC & TCC dominate 75% of production

• ASP remains steady since anti-dumping tariff blocked import from China

33

Source: Taiwan Cement Manufacturers’ Association, TCMA

ACC: 2[nd] Largest Cement Player in Taiwan

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• Domestic market shares

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• ACC: Cement & Clinker Sales Volume

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• 1Q19 Export market coverage

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Guam, 2%
Others,
Hawaii,
15%
15%
Malaysia,
17%
Philippines
51%
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Dividend & Financials

35

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Steady Payout with Enjoyable Yields

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•
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• Payout guide: >= 80%

*Dividend yield= Cash dividend / Last 12-month average share price

36

Operating Performance (IFRS-consolidated basis)

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NT$ mn
	1Q19	1Q18	YoY	2018 2017 YoY
Operating Revenue Operating Cost Net Gross Profit SG&A expenses Operating profit	19,386 14,727 4,659 881 3,778	16,574 13,244 3,329 656 2,674	17% 82,741 64,899 27% 11% 61,585 54,728 13% 40% 21,156 10,171 108% 34% 3,018 2,734 10% 41% 18,153 7,437 144% 2,217 1,062 -54% 4,144 2,522 64% (1,673) (1,772) 435 326 98 217 91 (455) (878) 224 20,370 8,499 5,481 1,834 58% 14,889 6,666 123% 54% 11,117 5,469 103% 55% 3.54 1.74 103% 25.6% 15.7% 21.9% 11.5% 27.6% 19.4% 22,803 12,614
Non-operating income(net) Equity Income Finance Cost Dividend Income Gain(loss) on Investment Property Gain (loss) on exchange Others Pre tax Income Tax Net income	966 335 (475) 3 35 22 1,046	377
		729
		(408)
		2
		27
		(96)
		122
	4,743	3,051
	933 3,810	635 2,415
Profit Attributable to Owners of Parent EPS (NT$/share)	2,929 0.93	1,897 0.60
Gross margin	24.0%	20.1%
Operating margin	19.5%	16.1%
EBITDA margin	25.9%	23.6%
EBITDA	5,017	3,915

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Performance by Segments (IFRS-consolidated basis)

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Note: Cement revenue= Taiwan cement operation(cement, RMC and other downstream value chain) + China cement operation

NT$ mn
	1Q19	1Q18	YoY	2018 2017 YoY
Operating Revenue	19,386	16,574	17% 82,741 64,899 27% 24% 67,340 49,651 36% 20% 6,682 6,115 9% -14% 5,677 6,037 -6% -29% 3,042 3,097 -2% 11% 61,585 54,728 13% 40% 21,156 10,171 108% 34% 3,018 2,734 10% 41% 18,153 7,437 144% 61% 15,952 5,554 187% 10% 1,206 1,039 16% -46% 120 165 -27% N.A. 876 679 29%
Cement business Power business Stainless Steel business Others	15,641 1,577 1,649 519	12,597 1,318 1,926 734
Operating Cost Net Gross Profit SG&A expenses Operating profit	14,727 4,659 881 3,778	13,244 3,329 656 2,674
Cement business Power business Stainless Steel business Others	3,550 245 30 (48)	2,202 223 55 193

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Revenue (1Q19)
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Operating Profit (1Q19)
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Summary of Balance Sheets (IFRS-consolidated basis)

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Summary of Balanc	e Sheets(IFRS-consolidated basis)	e Sheets(IFRS-consolidated basis)
NT$ mn
	1Q19	2018 2017
Current Assets Cash&Cash equivalents Short-term Investments Others Non-Current Assets Long-term Investment Fixed Assets Intangible Assets Other Assets Total Assets Current Liabilities Short-term debt Others Non-Current Liabilities Bonds Payable Bank Loans Others Total Liabilities Total Shareholders’ Equity Book Value(NT$/Share)	81,800 15,998 30,958 34,844 205,109 93,038 89,012 3,755 19,305 286,910 62,634 51,385 11,249 58,306 12,215 33,223 12,868 120,939 165,970 42.7	80,359 50,263 14,929 7,739 27,170 12,508 38,259 30,015 198,829 196,802 88,646 84,383 88,515 89,484 3,695 4,553 17,975 18,382 279,188 247,064 62,804 53,948 50,655 43,733 12,150 10,215 57,335 47,320 12,193 10,000 33,594 27,278 11,549 10,042 120,140 101,268 159,048 145,796 41.0 37.9
ROE	8.9%	8.4% 4.4%
Net Debt Net Gearing Ratio Net Debt/EBITDA	49,867 34.7% 2.1	54,341 60,763 39.4% 47.7% 2.4 4.8

Note: Net gearing = Nebt debt / (total shareholders' equity - minority interest)

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YoY

14%

Summary of Cash Flow Statement (IFRS-consolidated basis)

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NT mn		1Q18 YoY 1,897 1,242 (1,890) (116) (525) 607 936% (177) 2,253 - 10 2,086 -363% (187) - (51) 238 -75% 11 2,465 -57% 429 1206%	YoY
	1Q19	1Q18		2018 2017
Net Income Depr&Amort Changes of non-cash WC Increase of FVTPL FA(1) Other Ope. CF Items Operating Cash Flow CAPEX Disposal/(Acquisition) of AC financial assets(2) Disposal/(Acquisition) of FVTOCI financial assets Other Inv. CF Items Investing Cash Flow Changes in Debt/Borrowings Dividends Paid Other Fin. CF Items Financing Cash Flow Effect of FX Net Changes in Cash Free Cash Flow	2,929 1,239 3,854 (436) (1,302) 6,285 (679) (2,448) (57) (2,296) (5,479) (92) - 153 60 203 1,069 5,606	1,897 1,242 (1,890) (116) (525) 607 (177) 2,253 - 10 2,086 (187) - (51) 238 11 2,465 429		11,117 5,469 4,919 5,178 (8,926) (3,786) (3,051) 37 5,205 1,278 9,264 8,139 (4,275) (1,157) (9,538) (2,037) (556) (1,110) (90) (2,447) (14,459) (6,785) 15,793 2,832 (4,034) (3,025) 679 (586) 12,439 (780) (54) (285) 7,190 289 4,989 6,982

-113%

1696% 2384% -29%

Note1: Under the IFRS 9 applied since 2018, mutual fund investment has been classified as operating activities. Note2: Mainly over 3 months time deposit.

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AC(China):Summary of P&L

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R$ mn
	1Q19	1Q18		YoY	2018 2017	YoY
Operating revenue Operating cost Gross Profit Other net income/(loss) Selling&marketing costs Administative expenses Operating income Finance costs Shares of results of jointly controlled entities Pre tax Income Tax Net Income	2,513 1,528 985 46 99 112 821 67 0 753 171 582	1,949 1,310 639 24 101 72 489 61 1 429 110 319		29% 11,330 7,816 45% 17% 6,944 5,905 18% 54% 4,386 1,910 130% (4) 20 446 398 316 276 68% 3,620 1,257 188% 244 275 8 3 3,383 985 882 349 83% 2,501 636 293% 85% 2,421 602 302% 80 34 85% 1.55 0.38 302% 38.7% 24.4% 31.9% 16.1% 22.1% 8.1% 39.7% 27.5% 45% 4,499 2,151 109%
Profit Attributable to Owners of Parent Minority interests EPS (RMB/share)	568 14 0.36	308 11 0.20
Gross margin	39.2%	32.8%
Operating margin	32.7%	25.1%
Net margin	23.2%	16.4%
EBITDA margin	40.7%	36.1%
EBITDA	1,023	704

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AC(China):Summary of Balance Sheets

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R$ mn
	1Q19	2018 2017
Current Assets Inventories Trade and other receivables Bank balances and cash Non-Current Assets Property,Plant&Equipment Total Assets Current Liabilities Borrowings- due within one year Trade and other payables Non-Current Liabilities Borrowings- due after one year Total Liabilities Total Equity Equity Attributable to Parent Book Value(RMB/Share)	10,148 699 3,772 5,527 10,722 8,423 20,870 4,194 2,888 864 3,652 3,486 7,846 13,025 12,656 8.1	10,452 5,259 726 728 4,105 2,960 5,009 940 10,271 11,151 8,598 9,302 20,722 16,410 4,055 4,235 2,475 2,991 988 1,011 4,225 1,964 4,155 1,912 8,280 6,200 12,442 10,210 12,088 9,910 7.7 6.4
ROE	23.4%	22.0% 5.6%
ROA	14.4%	13.0% 3.0%
Net Gearing Ratio	6.7%	13.4% 40.0%
Net Debt	844	1,615 3,963

Note: Net gearing = Net debt / (total shareholders’ equity – minority interests)

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AC(China):Summary of Cash Flow

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R$ mn		2017 YoY 602 891 (880) 555 1,169 149% (135) (2) (138) 48% (288) (47) (289) (624) 297% 407 900% 1,034 166%	YoY
	2018	2017
Net Income Depr&Amort Changes of non-cash WC Other Ope. CF Items Operating Cash Flow CAPEX Other Inv. CF Items Investing Cash Flow Changes in Debt/Borrowings Dividends Paid Other Fin. CF Items Financing Cash Flow Effect of FX Net Changes in Cash Free Cash Flow	2,421 871 (1,071) 687 2,908 (154) 83 (71) 1,727 (243) (252) 1,232 4,068 2,754	602 891 (880) 555 1,169 (135) (2) (138) (288) (47) (289) (624) 407 1,034

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Shanshui:Summary of P&L

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R$ mn
	1Q19	1Q18		YoY	2H18 2H17	YoY	2018 2017	YoY
Operating revenue Operating cost Gross Profit Other net income/(loss) Selling&marketing costs Administative expenses Operating income Finance costs Shares of results of jointly controlled entities Pre tax Income Tax Net Income	2,576 1,894 682 12 99 614 (20) 181 3 (198) 74 (272)	1,820 1,345 476 53 94 691 (257) 229 1 (485) 47 (532)	41% 41% 43% -92% -49% -55% -57%		10,989 8,450 30% 17,638 14,765 19% 7,446 5,912 26% 11,715 10,361 13% 3,543 2,539 40% 5,923 4,404 34% 195 239 407 228 327 325 528 581 1,087 1,047 2,023 2,071 2,324 1,406 65% 3,779 1,981 91% 377 490 778 1,021 37 8 46 8 1,984 924 3,047 967 526 277 878 421 1,458 647 125% 2,169 546 297% 1,445 645 124% 2,197 601 266% 13 2 (28) (54) 0.41 0.19 114% 0.62 0.18 248% 32.2% 30.0% 33.6% 29.8% 21.1% 16.6% 21.4% 13.4% 13.3% 7.7% 12.3% 3.7% 28.1% 25.5% 29.7% 23.4% 3,086 2,155 43% 5,231 3,448 52%
Profit Attributable to Owners of Parent Minority interests EPS(RMB/share)	(211) (61) (0.06)	(471) (61) (0.14)
Cash Dividend
Gross margin	26.5%	26.1%
Operating margin	-0.8%	-14.1%
Net margin	-10.6%	-29.2%
EBITDA margin
EBITDA

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Shanshui:Summary of Balance Sheets

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R$ mn
	1Q19	2018 2017
Current Assets Inventories Trade and other receivables Bank balances and cash Non-Current Assets Property,Plant&Equipment Total Assets Current Liabilities Borrowings- due within one year Trade and other payables Non-Current Liabilities Borrowings- due after one year Total Liabilities Total Equity Equity Attributable to Parent Book Value(RMB/Share)	6,073 19,390 25,463 12,816 3,394 16,210 9,253	5,858 4,337 1,459 1,507 2,127 1,806 1,304 308 20,215 20,753 18,131 19,012 26,073 25,090 13,228 19,745 5,919 12,505 3,240 3,226 3,258 1,328 1,868 801 16,486 21,072 9,586 4,018 9,522 3,915 2.7 1.2
ROE		32.7% 17.1%
ROA		8.6% 2.4%
Net Gearing Ratio		67.8% 330.4%
Net Debt		6,452 12,935

Note: Net gearing = Net debt / (total shareholders’ equity – minority interests)

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Shanshui:Summary of Cash Flow

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R$ mn	2018	2017 YoY 601 1,442 (133) 1,334 3,243 -32% (463) (115) (577) -47% (1,317) - - 63 (1,253) 69% (3) 35 2714% 2,781 -46%	YoY
Net Income Depr&Amort Changes of non-cash WC Other Ope. CF Items Operating Cash Flow CAPEX Other Inv. CF Items Investing Cash Flow Changes in Debt/Borrowings Issuance of Common Stock Dividends Paid Other Fin. CF Items Financing Cash Flow Effect of FX Net Changes in Cash Free Cash Flow *	2,197 1,395 (1,350) (25) 2,216 (713) (136) (849) (1,639) 339 - 917 (384) 13 983 1,503

Note: Mainly increase of Proceed from bills discounted.

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CSR Achievement

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ACC: 1[st] -tier Partner in Building a Sustainable Home

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Awards/ Recognition

• Taiwan Corporate Sustainability Awards : Top 50, Platinum Medal in non-tech industrials

• included as a member of the FTSE4Good Index Series

• Asia Responsible Entrepreneurship Awards : Winner of Green Leadership

• 6 times award winner of Excellent Company in GHG Reduction

• Listed in “Taiwan Corporate Governance 100 Index ” and “Taiwan High Salary 100 Index”

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Commitment

• Go green : take part in Circular Economy to process and utilize urban & industrial waste

• Go digital and Go smart : develop Cement 4.0 project to improve the efficiency in mining, manufacturing, maintenance, and warehouse management.

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ACC: Pioneer in Safe and Clean Mining

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Dust Control

Ensure air quality by enclosed belt conveyor and water sprinkling in the quarry site

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Noise Reduction Upgrade conveyor, 24x7 monitoring to ensure low noise exposure

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Blast Vibration Management Superior to global regulatory requirements ( ≦ 0.15cm/sec)

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Slope Stability Enhancement

Install rockfall barrier, conduct geological assessment prior to the law

Soil and Water Conservation Integrate concave mining, drainage system, detention pond to prevent landslide

Replantation

“Sustainable Mining Paragon” recognized by APEC; cultivate indigenous plants and restore the eco-system

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Capacity in Jiangxi, China

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Capacity in Hualien, Taiwan Capacity in Jiangxi, China

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Thank you

ir@acc.com.tw http:// www.acc.com.tw

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Q&A: Mining Concerns

ACC Eco-friendly Achievements

Download: ACC Financials

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