ACC — Investor Presentation 2020

May 18, 2020

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亞洲水泥股份有限公司 Asia Cement Corporation Stock code: 1102 TT

IR presentation

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May 2020

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.

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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$ 4.9 bn / NT$ 147.2 bn (as of 14 May 2020)

Consolidated Entities

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Asia Cement
(1102 TT)
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• Established in 1957

• ACC • 2[nd] largest cement producer

• Taiwan • Cement capacity: 5.0 mtpa.

• 10[th] largest cement producer ACC China • In Central and Western China (743 HK) • Cement capacity: 33.0 mtpa.

• LNG fired IPP (8% of revenue) Other • Cold rolled stainless steel Business (6% of revenue)

Equity Investments

FENC U-Ming Shanshui (1402 TW) Marine Cement (2606 TW) (691 HK)

5

Investment Portfolio in Far Eastern Group

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NT$ mn

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Incor- Equity Income
Stock Holdings Market
porated Investees code (1) Value (2) 1Q19 2Q19 3Q19 4Q19 1Q20
Year
2004 Asia Cement (China) Holdings Corp. 743 HK 67.7% 38,629
1997 Far EasTone Telecommunications Ltd. 4904 TT 1.0% 2,040
1992 Far Eastern International Bank 2845 TT 2.4% 844
1975 Oriental Union Chemical Corp. 1710 TT 7.2% 1,062
1968 U-Ming Marine Transport Corp. 2606 TT 39.3% 9,320 37 13 338 249 (152)
1967 Far Eastern Department Stores Ltd. 2903 TT 5.7% 1,805
1949 Far Eastern New Century Corp. 1402 TT 23.8% 33,909 331 518 469 320 333
Others (33) 1,514 1,174 561 (23)
Total 87,609 335 2,046 1,980 1,130 158
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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 14 May 2020.

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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
2018 2019 2020 2018 2019 2020
186
403
178 178
385
380
151
391
368 167
366
149
133
127
339
104
319
314
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
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Note: According to IFRS, losses on work stoppages, which is the fixed operating cost RMB 115mn in 1Q20, were recognized as operating expense.

8

What’s New: Undergoing Investments and Future Prospects

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1. GM of aggregate recovered after the production resumed in 1Q20.

1. IPP phase II project is expected to start operation by the end of 2020. Total CAPEX budget is NT$10.7bn.

Aggregate Capacity in China IPP Phase II project in TW

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Jiangxi Huanggang GM(%)
mt
10 100%
79% 81% 670+500MW
8 80%
66% 71%
6 60% 670MW
4 40%
2 20%
0 0%
2018 End of 2020
2017 2018 2019 1Q20
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What’s New: Growing investment income

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1. U-Ming: The rebound of BDI is under pressure due to the weakness in bulk shipping demand.

2. FENC: PET spread could be supported by lower raw material costs amid weak oil prices. Development of the new office complex in Tpark could contribute to the property segment’s profits.

3. Shanshui Cement: Supply-demand could continue improving thanks to infrastructure and well-implemented off-peak production halt in the north. 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)
Investees	Holdings	2018	1Q19	2Q19	3Q19	4Q19	2019	1Q20
U-Ming Marine Transport Corp. 39.3% Far Eastern New Century Corp. 23.8% Shanshui Cement Co. Ltd. 17.5% Others (unlisted investees)		655 37 13 338 249 637 (152) 2,343 331 518 469 320 1,638 333 377 (169) 1,119 885 376 2,212 (342) 770 136 395 288 185 1,004 319

4,144 335 2,046 1,980 1,130 5,490 158

Total

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Asia Cement (1102 TW): Robust financial structure and high dividend Payout

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NT$ mn NT$ mn CAPEX Operating Cash Flow
CAPEX Operating Cash Flow
120,000 Net Debt Net Gearing Ratio 60% 37,272
37,272
48%
90,000 39% 45%
60,763 27% 28%
60,000 54,341 30%
12,817
39,538 39,966 10,711
8,139 10,711
30,000 15% 8,139
4,275 3,755
1,250 1,157 4,275 3,755
1,157 1,684 2,095
0 0%
2016 2017 2018 2019
2017 2018 2019 1Q20 2017 2018 2019 1Q20
NT$/share, % NT$/share
12
50 16%
Book Value ROE
9
45 12.3% 12%
43.5 6
10.7%
42.3
41.0
8.4%
40 8% 3
37.9
0
35 4.4% 4% 2017 2018 2019 1Q20
FCF 2.22 1.59 10.0 0.1
EPS 1.63 3.31 5.19 0.22
DPS 1.20 2.80 3.00
30 0%
2017 2018 2019 1Q20
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Note: EPS is calculated using total outstanding shares.

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Asia Cement (China)(743 HK): Excellent rofitabilit and rich cash flow p y

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R$ mn Net Debt Net Gearing Ratio
7,500 50%
40.0%
6,000 40%
4,500 3,957 30%
3,000 13.4% 20%
1,615
1,500 10%
(1,743) (2,094)
0 0%
-1,500 -10%
-3,000 -12.2% -14.5% -20%
2017 2018 2019 1Q20
R$/share, %
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R$ mn
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CAPEX Operating Cash Flow
4,883
2,908
1,681
1,169
177 135 154 228
2016 2017 2018 2019
R$/share
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15 Book Value ROE 30%
23.9%
25%
12 22.0%
20.6%
9.1 20%
9.2
9
7.7
6.4 15%
6
10%
5.6%
3
5%
0 0%
2017 2018 2019 1Q20
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3.0
2.5
2.0
1.5
1.0
0.5
0.0
2016 2017 2018 2019
FCF 0.82 0.49 1.62 2.93
EPS 0.09 0.38 1.55 2.01
DPS 0.03 0.16 0.62 0.5
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Asia Cement (China) Operating Data

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

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Unit: R$/t ; %

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Hubei (Wuhan)
%
R$/t
Inventory Level Market Price
600 90
550
80
500
70
450
400 60
350
50
300
40
250
200 30
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Jiangxi (Nanchang)
Inventory Level Market Price
R$/t %
600 90
550
80
500
70
450
400 60
350
50
300
40
250
200 30
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Sichuan (Chengdu)
R$/t %
Inventory Level Market Price
600 90
550
80
500
70
450
400 60
350
50
300
40
250
200 30
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Jiangsu (Nanjing)
R$/t Inventory Level Market Price %
600 90
550
80
500
70
450
400 60
350
50
300
40
250
200 30
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Source: Digit Cement. Inventory level is based on the average of province.

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AC(China): 1Q20 Operating data points

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R$/t
RMC:R$/mm [3] ASP
1Q19 1Q20
495 483
385
368
292 302
59 64
Cement Clinker RMC Aggregate
Note: Net of VAT
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mt
RMC:mm [3]
Shipment
1Q19 1Q20
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5.5
2.6
0.8 1.0 0.9
0.4 0.4 0.2
Cement Clinker RMC Aggregate
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Gross Margin

1Q19 1Q20

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78%
71%
46%
40%
37% 36%
17%
9%
Cement Clinker RMC
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Aggregate

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AC(China): 1Q20 Operating data points

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Cement Product by Regions

Shipment

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ASP
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R$/t
1Q19 1Q20
404 398 398
382 379 374
357
343
Jiangxi Hubei Sichuan Jiangsu
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mt
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1Q19 1Q20
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2.0 2.0
1.0 1.1 1.0
0.4 0.5 0.3
Jiangxi Hubei Sichuan Jiangsu
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Product Type

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Shanshui Cement Profile

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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$/t Inventory Level Market Price %
600 90
550
80
500
450 70
400
350 60
300
50
250
200 40
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Shanxi (Taiyuan)
R$/t Inventory Level Market Price %
600 90
550
80
500
450 70
400
350 60
300
50
250
200 40
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Inner Mongolia (Hohhot)

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R$/t Inventory Level Market Price %
600 90
550
80
500
450 70
400
350 60
300
50
250
200 40
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Liaoning (Shenyang)

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Inventory Level Market Price
R$/t %
600 90
550
80
500
450 70
400
350 60
300
50
250
200 40
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Source: Digit Cement. Inventory level is based on the average of province.

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Shanshui: Overview by Regions

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Cement Capacity
Xinjiang
4% Total capacity: 101.66mt
Northeast
China
27%
Shandong
54%
Shanxi
15%
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Clinker Capacity
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Xinjiang
Total capacity: 52.35mt
3%
Northeast
China
29%
Shandong
52%
Shanxi
17%
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Note: Western Shandong region includes the capacities in Tianjin city. Northeast China region includes Liaoning province and Inner Mongolia. Source: China Shanshui Cement Group Ltd. 2019 financial report and 2019 annual report. 19

Shanshui: Revenue Breakdown

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Source: China Shanshui Cement Group Ltd. 2019 financial report

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Shanshui: 2019 Operating data points

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R$/t ASP mt Shipment
RMC:R$/mm [3] RMC:mm [3 ]
2018 2019 2018 2019
47.5
493
39.2
456
361
335
269 276
10.0
8.2
Cement Clinker RMC Cement Clinker
Note: Net of sales tax and surcharge.
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10.0
8.2
2.9 3.2
Clinker RMC
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Source: China Shanshui Cement Group Ltd. 2019 annual report.

Shanshui: 2019 Operating data points

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Cement Product by Regions

Shipment

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R$/t ASP mt Shipment
2018 2019 2018 2019
28.3
466
418 410 24.8
372
253 285 272 262
12.2
9.1
5.7
4.2
1.1 1.4
Shandong Shanxi Northeast Xinjinag Shandong Shanxi Northeast Xinjinag
Note: Net of sales tax and surcharge.
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Product Type

Source: China Shanshui Cement Group Ltd. 2019 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
Cement Production
3,000
2,414 [2,476 ] 2,403
2,500 2,348 2,316 2,330
2,177
2,063 [2,184 ]
2,000
1,500
1,000
YoY-23.9
500 299
0
2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q20
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2020 cement demand :

• Infrastructure: China government is proactively taking counter-cyclical measures and issuing more special bonds to offset the economic downturn.

• Property: Housing demand could benefit from more policy easing.

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

25

China Cement Supply-side Reform:

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1. Prohibit using outdated pipelines for

Control capacity capacity swap expansion 2. Tightening regulation for crossprovincial capacity swap

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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

2. Promote intelligent manufacturing

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• Schedule production halt to restrain output

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1. The government plays a more active role on implementing.

2. Differentiation measures provide uncertainty in 2020.

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Encourage consolidation

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

2. Carry out pilot program to subsidize the exiting capacity

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”

26

AC(China): Survival of the Fittest

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Strength of AC(China)

• Superior to regulatory requirements in energy efficiency and GHG emission

• ＞ 90% sales are high-grade cement

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

• Sufficient limestone resources and reserves

Energy Consumption and Emission

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2018 2019
120
109.9110.3
110
102.8103.3
100 94.6 93.7
90
78.9 78.6
80
70
57.2 57.1
60
50
40
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
	2018	2019	2018	2019	2018	2019
ACC Jiangxi	59	63	282	267	16	9
ACC Hubei	18	25	252	198	8	8
ACC Sichuan	4	6	130	85	5	5
National Standard	200		400		30
Special Limit	100		320		20
Ultra-low Standard	35		100		10

Note: Averaged by capacity

27

AC(China): Foreseeable Solid Regional Demand

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Yangtze River Economic Belt

Rise of Metropolitan Regions

Rigid Demand for Property

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

Source: National & Provincial Development and Reform Commission

28

AC(China) Strategy: to Dominate Locally

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2019: Capacity Rank top 10 nationwide

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：
Capacity 11 mt / year
Chengdu - Sichuan
60%
Market Share
50%
41% 42%
40%
31% 32% 31%
28%
30%
20%
2014 2015 2016 2017 2018 2019
：
Capacity 8 mt / year
Wuhan - Hubei
40%
Market Share
35%
30% 27% 27% 27%
26%
25% 24% 23%
20%
2014 2015 2016 2017 2018 2019
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：
Capacity 14 mt / year
Jiujiang - Jiangxi
Market Share
45%
38% 38% 39%
40% 37% 36%
35%
35%
30%
25%
2014 2015 2016 2017 2018 2019
Nanchang - Jiangxi
40%
Market Share
35%
29%
30% 28%
26% 26% 26%
25%
25%
20%
2014 2015 2016 2017 2018 2019
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Source: ACC(C) annual report

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Taiwan Market Overview

30

TW Cement Market: Sophisticated and Highly Concentrated

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Mature and net export cement market

Oligopoly keeps ASP steady

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NT$/t 91.58% Anti-dumping tariff
imposed on cement products from China
2,600
2011/5/30~2022/2/19
2,400
2,400
2,289
2,200
YoY +7.2%
2,100
2,000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q20
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• 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

31

Source: Taiwan Cement Manufacturers’ Association, TCMA

ACC: 2nd Largest Cement Player in Taiwan

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• Domestic market shares

• ACC: Cement & Clinker Sales Volume

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Local sales Export sales Trading
mt
6
5.5
5.2
0.5
5
0.6
4.5
1.6 0.3 3.8 3.9 3.9
4
1.4 0.2 0.4 0.2
1.5
3 1.1 0.9 1.0
2 YoY -0.8%
3.4
3.2
2.7 2.5 2.6 2.6 1.0
1 0.0
0.2
0.7
0
2014 2015 2016 2017 2018 2019 1Q20
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• Stable local market share and shipments

• Pressure from imports still exists.

• 1Q20 Export market coverage

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32

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Dividend & Financials

33

Steady Payout with Enjoyable Yields

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3.0
2.8
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Note1: Payable EPS= Net income – Investment property adjustment

Note2: Dividend yield= Cash dividend / Last 12-month average share price

34

Summary of P&L

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NT$ mn
	1Q20	1Q19		YoY	2019 2018	YoY
Operating Revenue Operating Cost Net Gross Profit SG&A expenses Operating profit	13,139 10,441 2,698 676 2,022	19,386 14,727 4,659 881 3,778	-32% 89,348 82,741 -29% 63,747 61,585 -42% 25,601 21,156 -23% 3,523 3,018 -46% 22,063 18,153 6,330 2,217 -53% 5,490 4,144 (695) (1,303) 451 435 198 98 (260) 91 1,129 (256) 16 (992) 28,393 20,370 6,149 5,481 -70% 22,244 14,889 -75% 17,460 11,117 -75% 5.56 3.54 28.7% 25.6% 24.7% 21.9% 31.5% 27.6% 28,183 22,803			8% 4% 21% 17% 22% 32% 49% 57% 57%
Non-operating income(net) Equity Income Net Interest Expense Dividend Income Gain (loss) on Investment Property Gain (loss) on exchange Gain (loss) on FVTPL Financial Assets and Liabilities Others Pre tax Income Tax Net income	(453) 158 (81)	966 335 (262) 3 35 22 760
	3
	34
	77 (641) (3)
		73
	1,568	4,743
	438 1,131	933 3,810
Profit Attributable to Owners of Parent EPS (NT$/share)	744 0.24	2,929 0.93
Gross margin	20.5%	24.0%
Operating margin	15.4%	19.5%
EBITDA margin	24.7%	25.9%
EBITDA	3,250	5,017

35

Performance by Segments

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Note: Cement revenue= Taiwan cement operation(cement, RMC and other downstream value chain) + China cement operation NT$ mn 1Q20 1Q19 YoY 2019 2018 YoY Operating Revenue 13,139 19,386 -32% 89,348 82,741 8% Cement business 10,116 15,641 -35% 73,849 67,340 10% Power business 1,390 1,577 -12% 7,115 6,682 6% Stainless Steel business 1,007 1,649 -39% 5,439 5,677 -4% Others 626 519 21% 2,945 3,042 -3% Operating Cost 10,441 14,727 -29% 63,747 61,585 4% Net Gross Profit 2,698 4,659 -42% 25,601 21,156 21% SG&A expenses 676 881 -23% 3,523 3,018 17% Operating profit 2,022 3,778 -46% 22,063 18,153 22% Cement business 1,663 3,550 -53% 19,974 15,952 25% Power business 292 245 19% 1,382 1,206 15% Stainless Steel business (24) 30 NA 85 120 -29% Others 90 (48) NA 622 876 -29%	Note: Cement revenue= Taiwan cement operation(cement, RMC and other downstream value chain) + China cement operation NT$ mn 1Q20 1Q19 YoY 2019 2018 YoY Operating Revenue 13,139 19,386 -32% 89,348 82,741 8% Cement business 10,116 15,641 -35% 73,849 67,340 10% Power business 1,390 1,577 -12% 7,115 6,682 6% Stainless Steel business 1,007 1,649 -39% 5,439 5,677 -4% Others 626 519 21% 2,945 3,042 -3% Operating Cost 10,441 14,727 -29% 63,747 61,585 4% Net Gross Profit 2,698 4,659 -42% 25,601 21,156 21% SG&A expenses 676 881 -23% 3,523 3,018 17% Operating profit 2,022 3,778 -46% 22,063 18,153 22% Cement business 1,663 3,550 -53% 19,974 15,952 25% Power business 292 245 19% 1,382 1,206 15% Stainless Steel business (24) 30 NA 85 120 -29% Others 90 (48) NA 622 876 -29%	Note: Cement revenue= Taiwan cement operation(cement, RMC and other downstream value chain) + China cement operation NT$ mn 1Q20 1Q19 YoY 2019 2018 YoY Operating Revenue 13,139 19,386 -32% 89,348 82,741 8% Cement business 10,116 15,641 -35% 73,849 67,340 10% Power business 1,390 1,577 -12% 7,115 6,682 6% Stainless Steel business 1,007 1,649 -39% 5,439 5,677 -4% Others 626 519 21% 2,945 3,042 -3% Operating Cost 10,441 14,727 -29% 63,747 61,585 4% Net Gross Profit 2,698 4,659 -42% 25,601 21,156 21% SG&A expenses 676 881 -23% 3,523 3,018 17% Operating profit 2,022 3,778 -46% 22,063 18,153 22% Cement business 1,663 3,550 -53% 19,974 15,952 25% Power business 292 245 19% 1,382 1,206 15% Stainless Steel business (24) 30 NA 85 120 -29% Others 90 (48) NA 622 876 -29%	Note: Cement revenue= Taiwan cement operation(cement, RMC and other downstream value chain) + China cement operation NT$ mn 1Q20 1Q19 YoY 2019 2018 YoY Operating Revenue 13,139 19,386 -32% 89,348 82,741 8% Cement business 10,116 15,641 -35% 73,849 67,340 10% Power business 1,390 1,577 -12% 7,115 6,682 6% Stainless Steel business 1,007 1,649 -39% 5,439 5,677 -4% Others 626 519 21% 2,945 3,042 -3% Operating Cost 10,441 14,727 -29% 63,747 61,585 4% Net Gross Profit 2,698 4,659 -42% 25,601 21,156 21% SG&A expenses 676 881 -23% 3,523 3,018 17% Operating profit 2,022 3,778 -46% 22,063 18,153 22% Cement business 1,663 3,550 -53% 19,974 15,952 25% Power business 292 245 19% 1,382 1,206 15% Stainless Steel business (24) 30 NA 85 120 -29% Others 90 (48) NA 622 876 -29%	Note: Cement revenue= Taiwan cement operation(cement, RMC and other downstream value chain) + China cement operation NT$ mn 1Q20 1Q19 YoY 2019 2018 YoY Operating Revenue 13,139 19,386 -32% 89,348 82,741 8% Cement business 10,116 15,641 -35% 73,849 67,340 10% Power business 1,390 1,577 -12% 7,115 6,682 6% Stainless Steel business 1,007 1,649 -39% 5,439 5,677 -4% Others 626 519 21% 2,945 3,042 -3% Operating Cost 10,441 14,727 -29% 63,747 61,585 4% Net Gross Profit 2,698 4,659 -42% 25,601 21,156 21% SG&A expenses 676 881 -23% 3,523 3,018 17% Operating profit 2,022 3,778 -46% 22,063 18,153 22% Cement business 1,663 3,550 -53% 19,974 15,952 25% Power business 292 245 19% 1,382 1,206 15% Stainless Steel business (24) 30 NA 85 120 -29% Others 90 (48) NA 622 876 -29%
	1Q20	1Q19		YoY
Operating Revenue Cement business Power business Stainless Steel business Others Operating Cost Net Gross Profit SG&A expenses Operating profit	13,139 10,116 1,390 1,007 626 10,441 2,698 676 2,022	19,386 15,641 1,577 1,649 519 14,727 4,659 881 3,778
Cement business Power business Stainless Steel business Others	1,663 292 (24) 90	3,550 245 30 (48)

Revenue (1Q20)

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Summary of Balance Sheets

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NT$ mn
	1Q20	2019 2018
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)	98,317 29,628 39,551 29,138 205,122 92,957 87,357 6,897 17,912 303,439 71,389 56,236 15,153 66,218 19,303 33,606 13,309 137,607 165,832 42.3	89,242 80,359 24,735 14,929 31,724 27,170 32,783 38,259 208,036 198,829 96,140 88,646 86,858 88,515 7,000 3,695 18,038 17,975 297,279 279,188 74,336 62,804 55,895 50,655 18,440 12,150 53,494 57,335 19,281 12,193 20,821 33,594 13,392 11,549 127,829 120,140 169,449 159,048 43.5 41.0
ROE	10.7%	12.3% 8.4%
Net Debt Net Gearing Ratio Net Debt/EBITDA	39,966 28.1% 1.5	39,538 54,341 27.1% 39.4% 1.4 2.4

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

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Summary of Cash Flow Statement

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NT$ mn		1Q19 YoY 2,929 1,239 3,852 (436) (1,300) 6,285 -67% (679) (2,448) (57) (2,296) (5,479) NA (56) 0 116 60 21396% 203 1,069 358% 5,606 -93%		2018 YoY 11,117 4,919 (7,479) (3,051) 5,205 10,711 248% (4,275) (9,538) (556) (90) (14,459) NA 15,793 (4,034) (768) 10,992 NA (54) 7,190 36% 6,436 421%	YoY
	1Q20	1Q19	2019	2018
Net Income Depr&Amort Changes of non-cash WC Disposal/(Acquisition) of FVTPL FA(1) Other Ope. CF Items Operating Cash Flow CAPEX Disposal/(Acquisition) of AC FA(2) Disposal/(Acquisition) of FVTOCI FA 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	744 1,228 2,119 (834) (1,163) 2,095 (1,684) (7,159) (1,145) (81) (10,070) 13,018 0 (57) 12,961 (93) 4,893 410	2,929 1,239 3,852 (436) (1,300) 6,285 (679) (2,448) (57) (2,296) (5,479) (56) 0 116 60 203 1,069 5,606	17,460 6,120 5,798 5,660 2,234 37,272 (3,755) (8,716) (275) (2,721) (15,466) 254 (9,412) (2,005) (11,163) (836) 9,806 33,517	11,117 4,919 (7,479) (3,051) 5,205 10,711 (4,275) (9,538) (556) (90) (14,459) 15,793 (4,034) (768) 10,992 (54) 7,190 6,436

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
	1Q20	1Q19	YoY 2019 2018 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	1,287 729 559 57 63 185 367 53 (2) 312 92 220	2,513 1,528 985 46 99 112 821 67 0 753 171 582	-49% 12,609 11,330 11% -52% 7,290 6,944 5% -43% 5,319 4,386 21% 170 (4) 447 446 429 316 -55% 4,613 3,620 27% 268 244 5 8 4,350 3,383 1,120 882 -62% 3,230 2,501 29% -63% 3,147 2,421 30% 83 80 -63% 2.01 1.55 30% 42.2% 38.7% 36.6% 31.9% 25.6% 22.1% 45.4% 39.7% -43% 5,724 4,499 27%
Profit Attributable to Owners of Parent Minority interests EPS (RMB/share)	210 10 0.13	568 14 0.36
Gross margin	43.4%	39.2%
Operating margin	28.5%	32.7%
Net margin	17.1%	23.2%
EBITDA margin	45.6%	40.7%
EBITDA	587	1,023

Note: According to IFRS, losses on work stoppages, which is the fixed operating cost RMB 115mn in 1Q20, were recognized as operating expense.

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AC(China): Summary of Balance Sheets

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R$ mn
	1Q20	2019 2018
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)	14,490 803 3,079 10,583 11,239 7,918 25,729 6,539 4,387 1,807 4,327 4,105 10,866 14,863 14,474 9.2	12,620 10,452 674 726 3,963 4,105 7,943 5,009 11,366 10,271 8,077 8,598 23,986 20,722 7,695 4,055 4,770 2,475 2,174 988 1,647 4,225 1,444 4,155 9,343 8,280 14,643 12,442 14,264 12,088 9.1 7.7
ROE	20.6%	23.9% 22.0%
ROA	12.0%	14.1% 13.0%
Net Gearing Ratio	-14.5%	-12.2% 13.4%
Net Debt	(2,094)	(1,743) 1,615

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

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AC(China): Summary of Cash Flow Statement

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R$ mn		1Q19 YoY 2019 3,147 1,071 240 425 913 -51% 4,883 (228) 12 410 NA (217) (416) (971) (346) (805) NA (1,733) 519 409% 2,934 4,655	2018 YoY 2,421 871 (1,071) 687 2,908 68% (154) 83 (71) NA 1,727 (243) (252) 1,232 NA 4,068 -28% 2,754
	1Q20	1Q19
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	447 (20) 2,213 2,640	913 410 (805) 519

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Shanshui: Summary of P&L

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R$ mn
	1Q20	1Q19
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	1,833 1,394 439 48 81 614 (327) 84 2 (408) 46 (454)	2,576 1,894 682 12 99 733 (19) 181 3 (198) 74 (272)
Profit Attributable to Owners of Parent Minority interests EPS (RMB/share)	(383) (71) (0.09)	(211) (61) (0.06)
Gross margin	24.0%	26.5%
Operating margin	-17.8%	-0.8%
Net margin	-24.7%	-10.6%

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Shanshui: Summary of Balance Sheets

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R$ mn
	1Q20	2019 2018
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 Minority interests Total Liabilities & Shareholders’ Equity Book Value(RMB/Share)	6,420 20,040 26,460 11,305 2,985 14,290 12,170	6,217 5,858 1,995 1,459 1,937 2,127 1,364 1,304 20,611 20,215 18,331 18,131 26,828 26,073 11,182 13,228 3,911 5,919 3,742 3,240 3,046 3,258 2,249 2,501 14,227 16,486 12,600 9,586 12,497 9,522 64 26,073 2.9 2.2
ROE		27.0% 32.7%
ROA		11.2% 8.6%
Net Gearing Ratio		36.5% 71.8%
Net Debt		4,567 6,839

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

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Shanshui: Summary of Cash Flow Statement

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R$ mn
	2019	2018	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(1) Financing Cash Flow Effect of FX Net Changes in Cash Free Cash Flow	2,973 1,533 (181) (158) 4,167 (1,105) (461) (1,567) (2,563) 0 0 9 (2,554) 14 46 3,061	2,197 1,395 (1,645) 234 2,180 (713) (136) (849) (1,639) 339 0 952 (349) 13 983 1,467	91% NA NA -95%

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CSR Achievement

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ESG Awards: ACC

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Taiwan Corporate Sustainability Awards: 2018 Top 50

5 years listed in

“Taiwan Corporate Governance 100 Index” and “Taiwan High Salary 100 Index”

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Included as a member of the FTSE4Good TIP Taiwan Index by FTSE Russel

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Ministry of Economics Affairs:

6 times award winner of Excellent Company in GHG Reduction

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Asia Responsible Entrepreneurship Awards: Winner of Green Leadership

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Carbon Disclosure Project: 2018 B List

by TWSE

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Sustainable Green Cycling

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Local Communication

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Mining Area Safety

• Conducting “mining area safety” hearing in Fushi village.

• Create LINE group talk for instant message and communicating.

• Feelingless explosion ： Vibration value under 1.5mm/s.

• Water draining and flood detention.

• • Slope stability enhancement.

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Mining Mountain Greenery

• Mimic natural eco vegetation.

• 23.7 thousand tons of CO2 reduction.

• 25% waste heat power used in the plant.

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Community Caring

• 25% aboriginal hiring in Hualien plant.

• • Electric bill subsidy and property repair.

• Promoting tribe education.

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ESG Awards: AC(China)

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Awards/Recognition

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• Jiangxi Yadong and Huanggang Yadong awarded the third prize of Green Mines Techniques by Green Mine Industry Alliance

• Jiangxi Yadong awarded the name Remarkable Eco-friendly Cement Corporation by China Cement Association

• AC(China) assessed by China Building Materials Federation to be the Demonstration Company of Energy conservation and Emission Reduction

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Low-carbon Green Intelligent Manufacturing

• Greatly reduce the use of ammonia water and NO x by applying the denitrification

• techniques of low-nitrogen combustion.

• Reduced the amount of clinker used and saved electricity, equivalent to decrease of 0.21mt on CO emission in 2018. 2

• 29.6% waste heat power used in the plant.

• Emissions of pollutants all above the .

• national requirements

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Sustainable Mines

Completed the experimental scheme for green mines in 2018.

Circular Economy

Disposed 12 thousand tons of wastes in 2018 and strictly follow classification, recycling, and reuse . Actively engage in waste co-processing.

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Social Care

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Donate cement to the neighboring communities, help the disadvantaged , and actively participate in charity activities.

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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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