ACC — Investor Presentation 2020

Apr 10, 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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Mar 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

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Company Snapshot

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Market Cap: US$ 4.3 bn / NT$ 131.4 bn (as of 30 Mar 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.
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• LNG fired IPP (8% of revenue)

• Other • Cold rolled stainless steel

• Business (6% of revenue)

Equity Investments

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FENC U-Ming Shanshui
(1402 TW) Marine Cement
(2606 TW) (691 HK)
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Investment Portfolio in Far Eastern Group

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NT$ mn

Incor-		Stk	Holdings	Market	Equity Income	Equity Income	Equity Income	Equity Income	Equity Income
2004 Asia Cement (China) Holdings Corp. 743 HK 67.7% 34,420 1997 Far EasTone Telecommunications Ltd. 4904 TT 1.0% 1,935 1992 Far Eastern International Bank 2845 TT 2.4% 789 1975 Oriental Union Chemical Corp. 1710 TT 7.2% 921 1968 U-Ming Marine Transport Corp. 2606 TT 39.3% 8,458 1967 Far Eastern Department Stores Ltd. 2903 TT 5.7% 1,705 1949 Far Eastern New Century Corp. 1402 TT 23.8% 28,756 Others Value(2) porated Year Investees oc code (1)					2018	1Q19	2Q19	3Q19	4Q19
					655 37 13 338 249 2,343 331 518 469 320 1,147 (33) 1,514 1,174 561
Total 76,984					4,144 335 2,046 1,980 1,130

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 30 Mar 2020.

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What’s New

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

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R$/t ASP by quarter R$/t GP/t by quarter
2017 2018 2019 2017 2018 2019
403 186
178
380
368 366 151
149
167
391
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

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1. GM of aggregate was 66% in 2019 due to the production disruption in Jiangxi in 4Q19. Production has resumed in 1Q20.

2. 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%
6 60%
670MW
4 40%
2 20%
0 0%
2017 2018 2019 2018 End of 2020
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What’s New: Growing investment income

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1. U-Ming: BDI index could be bottoming out as China stimulus would drive the global dry bulk demand.

2. FENC: Promising demand for R-PET will contribute polyester segment profits, while textile and real estate businesses are also expected to grow.

3. Shanshui Cement: 2019 profits have improved thanks to strong demand in northern China.

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)
Investees	Holdings	1Q18	2Q18	3Q18	4Q18	2018	1Q19	2Q19	3Q19	4Q19	2019
U-Ming Marine Transport Corp. 39.3% Far Eastern New Century Corp. 23.8% Shanshui Cement Co. Ltd. 17.5% Others (unlisted investees)		83 199 294 79 655 37 13 338 249 637 510 1,000 686 147 2,343 331 518 469 320 1,638 - - - 377 377 (169) 1,119 885 376 2,212 136 364 162 108 770 136 395 288 185 1,004
Total		729 1,564 1,142 710 4,144 335 2,046 1,980 1,130 5,490

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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
120,000 Net Debt Net Gearing Ratio 60%
51% 37,272
48%
90,000 39% 45%
62,064 60,763
27%
60,000 54,341 30%
39,538 12,817
10,711
30,000 15% 8,139
4,275 3,755
1,250 1,157
0 0%
2016 2017 2018 2019 2016 2017 2018 2019
NT$/share, % NT$/share
12
50 16%
Book Value ROE
9
12.3%
45 12%
43.5
6
41.0
8.4%
40 8%
37.9 3
36.5
4.4%
35 4% 0
2016 2017 2018 2019
3.1%
FCF 3.50 2.22 1.59 10.0
EPS 1.17 1.63 3.31 5.19
30 0%
DPS 0.90 1.20 2.80 3.00
2016 2017 2018 2019
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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 R$ mn
49.7% Net Debt Net Gearing Ratio CAPEX Operating Cash Flow
7,500 50%
40.0%
4,883
6,000 40%
4,653
4,500 3,963 30%
3,000 13.4% 20% 2,908
1,615
1,500 10%
1,681
(1,743)
0 0% 1,169
-1,500 -10% 177 135 154 293
-12.2%
-3,000 -20%
2016 2017 2018 2019
2016 2017 2018 2019
R$/share
R$/share, %
3.0
15 30%
Book Value ROE
2.5
23.9%
25%
12 22.0%
2.0
9.1 20%
9 1.5
7.7
6.4 15% 1.0
6.0
6
10% 0.5
5.6%
3 0.0
5% 2016 2017 2018 2019
FCF 0.82 0.49 1.62 2.93
1.4%
0 0% EPS 0.09 0.38 1.55 2.01
2016 2017 2018 2019
DPS 0.03 0.16 0.62 0.5
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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$/t Inventory Level Market Price
600 90
550
80
500
70
450
400 60
350
50
300
40
250
200 30
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Jiangxi (Nanchang)
R$/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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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): 4Q19 Operating data points

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R$/t mt
RMC:R$/mm [3] ASP RMC:mm [3] Shipment
4Q18 4Q19
4Q18 4Q19
469 477
391 403
366 365
7.7 7.7
64 65
0.9
0.4 0.2 0.5 0.4 0.4
Cement Clinker RMC Aggregate Cement Clinker RMC Aggregate
Note: Net of VAT
Gross Margin
4Q18 4Q19
81%
55%
43% 44% 44%
15%
12%
-32%
Cement Clinker RMC Aggregate
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AC(China): 4Q19 Operating data points

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Cement Product by Regions

Shipment

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R$/t ASP
4Q18 4Q19
428
400 399 406 401 413
384 382
Jiangxi Hubei Sichuan Jiangsu
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mt
4Q18 4Q19
2.9 3.2
2.5
2.2
1.6 1.6
0.6 0.7
Jiangxi Hubei Sichuan Jiangsu
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Product Type

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AC(China): 2019 Operating data points

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R$/t ASP mt Shipment
RMC:R$/mm [3] RMC:mm [3 ]
2018 2019
2018 2019 29.0 28.7
484
436
380
342
319 321
58 64 3.5 3.3
1.5 1.8 1.4 1.7
Cement Clinker RMC Aggregate Cement Clinker RMC Aggregate
Note: Net of VAT
Gross Margin
2018 2019
81%
66%
46%
44% 43%
39%
13% 14%
Cement Clinker RMC Aggregate
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AC(China): 2019 Operating data points

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Cement Product by Regions

ASP

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R$/t
FY18 FY19
407
389
362 351 369 343 362
331
Jiangxi Hubei Sichuan Jiangsu
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Shipment

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mt
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FY18 FY19
11.0 10.8
9.0 8.8
6.5
6.2
2.5 2.8
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$/t Inventory Level Market Price %
600 90
550
80
500
450 70
400
350 60
300
50
250
200 40
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Inner Mongolia (Hohhot)
R$/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$/t Inventory Level Market Price %
600 90
550
80
500
450 70
400
350 60
300
50
250
200 40
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Liaoning (Shenyang) R$/t Inventory Level Market Price % 600 90 550 80 500 450 70 400 350 60 300 50 250 200 40

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

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Xinjiang
4% Total capacity: 100.38mt
Northeast
China
27%
Shandong
54%
Shanxi
16%
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Clinker Capacity

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Xinjiang
Total capacity: 50.27mt
3%
Northeast
China
30%
Shandong
50%
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 1H19 interim report. 21

Shanshui: Revenue Breakdown

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Source: China Shanshui Cement Group Ltd. 2019 financial 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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2009-2011: Demand boosted by R$4 trillion stimulus

2012-2015:

Demand increase slowed down and oversupply weakened ASP

2016-2020: “New Normal Economy” urges Supply-Side Reform and industry evolution.

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mt
Cement Production
3,000
YoY+6.1
2,414 [2,476 ]
2,500 2,330
2,348 2,403 2,316 2,177
2,063 [2,184 ]
2,000
1,500
1,000
500
0
2011 2012 2013 2014 2015 2016 2017 2018 2019
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2020 cement demand :

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

• Demand from property could be stable for 2020 thanks to large under-construction GFA, but Covid-19 adds to the uncertainty.

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

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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1. Raise UT rate from 70% to 80%

Phase out capacities by 2. Eliminate PC 32.5R grade of cement

lifting industry standards

1. Promote intelligent manufacturing

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1. The government plays a more active

Schedule production role on implementing. halt to restrain output 2. Differentiation measures provide

1. 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”

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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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2017 2018
120.0
110.2 109.9
110.0 103.3102.8
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

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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

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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

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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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NT$/t
91.58% Anti-dumping tariff
2,600 imposed on cement products from China
2011/5/30~2022/2/19
2,400
2,400
YoY +6.1%
2,268
2,200
2,100
2,000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
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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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YoY -1.5%
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• 2019 Export market coverage

• Stable local market share and shipments

• Pressure from imports still exists.

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
	4Q19	4Q18		YoY	2019 2018	YoY
Operating Revenue Operating Cost Net Gross Profit SG&A expenses Operating profit	23,141 16,645 6,496 619 5,863	21,833 15,604 6,228 450 5,793	6% 89,348 82,741 7% 63,747 61,585 4% 25,601 21,156 37% 3,523 3,018 1% 22,063 18,153 6,330 2,217 59% 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 78% 22,244 14,889 120% 17,460 11,117 120% 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	1,007	(675)
	1,130	710
	(90)	(309)
	3	4
	53	22
	(333) 370	103 (475)
	(125)	(730)
	6,870	5,118
	1,562 5,307	2,131 2,987
Profit Attributable to Owners of Parent EPS (NT$/share)	4,001 1.27	1,819 0.58
Gross margin	28.1%	28.5%
Operating margin	25.3%	26.5%
EBITDA margin	35.9%	30.9%
EBITDA	8,301	6,756

35

Performance by Segments

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NT$ mn Note: Cement revenue= Taiwan cement operation(cement, RMC and other downstream value chain) + China cement operation
4Q19 4Q18 YoY 2019 2018 YoY
Operating Revenue 23,141 21,833 6% 89,348 82,741 8%
Cement business 19,859 19,826 73,849 67,340
Power business 1,422 1,514 7,115 6,682
Stainless Steel business 1,228 (57) 5,439 5,677
Others 632 550 2,945 3,042
Operating Cost 16,645 15,604 7% 63,747 61,585 4%
Net Gross Profit 6,496 6,228 4% 25,601 21,156 21%
SG&A expenses 619 450 37% 3,523 3,018 17%
Operating profit 5,863 5,793 1% 22,063 18,153 22%
Cement business 5,519 5,643 19,974 15,952
Power business 237 149 1,382 1,206
Stainless Steel business 25 (60) 85 120
Others 81 61 622 876
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Revenue (2019)

Operating Profit (2019)

36

Summary of Balance Sheets

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NT$ mn
	2019	3Q19 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)	89,242 24,735 31,724 32,783 208,036 96,140 86,858 7,000 18,038 297,279 74,336 55,895 18,440 53,494 19,281 20,821 13,392 127,829 169,449 43.5	86,685 80,359 19,051 14,929 33,515 27,170 34,119 38,259 203,707 198,829 94,045 88,646 87,111 88,515 3,630 3,695 18,922 17,975 290,393 279,188 64,963 62,804 52,604 50,655 12,359 12,150 59,751 57,335 19,259 12,193 27,337 33,594 13,156 11,549 124,714 120,140 165,679 159,048 42.6 41.0
ROE	12.3%	10.9% 8.4%
Net Debt Net Gearing Ratio Net Debt/EBITDA	39,538 27.1% 1.4	46,633 54,341 32.6% 39.4% 1.8 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
	2019	2018	YoY
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	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	248% -7% -202% 36% 421%

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
	4Q19	4Q18	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	3,426 2,009 1,417 90 118 93 1,297 57 0 1,240 306 933	3,441 2,006 1,435 3 118 99 1,222 71 2 1,153 304 848	0% 12,609 11,330 11% 0% 7,290 6,944 5% -1% 5,319 4,386 21% 170 (4) 447 446 429 316 6% 4,613 3,620 27% 268 244 5 8 4,350 3,383 1,120 882 10% 3,230 2,501 29% 10% 3,147 2,421 30% 83 80 10% 2.01 1.55 30% 42.2% 38.7% 36.6% 31.9% 25.6% 22.1% 45.4% 39.7% 15% 5,724 4,499 27%
Profit Attributable to Owners of Parent Minority interests EPS (RMB/share)	907 26 0.58	822 26 0.52
Gross margin	41.4%	41.7%
Operating margin	37.8%	35.5%
Net margin	27.2%	24.7%
EBITDA margin	48.6%	42.0%
EBITDA	1,666	1,445

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AC(China): Summary of Balance Sheets

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R$ mn
	2019	3Q19 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)	12,620 674 3,963 7,943 11,366 8,077 23,986 7,695 4,770 2,174 1,647 1,444 9,343 14,643 14,264 9.1	12,405 10,452 729 726 3,955 4,105 7,575 5,009 10,412 10,271 8,101 8,598 22,817 20,722 6,620 4,055 5,058 2,475 969 988 2,487 4,225 2,285 4,155 9,107 8,280 13,710 12,442 13,357 12,088 8.5 7.7
ROE	23.9%	24.9% 22.0%
ROA	14.1%	14.6% 13.0%
Net Gearing Ratio	-12.2%	-1.8% 13.4%
Net Debt	(1,743)	(241) 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		2018 YoY 2,421 871 (1,071) 687 2,908 68% (154) 83 (71) NA 1,727 (243) (252) 1,232 -241% 4,068 -28% 2,754
	2019	2018
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	4,883 (217) (1,733) 2,934	2,421 871 (1,071) 687 2,908 (154) 83 (71) 1,727 (243) (252) 1,232 4,068 2,754

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Shanshui: Summary of P&L

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R$ mn		4Q18 YoY 2019 2018 YoY 5,145 5% 21,479 17,638 22% 3,454 5% 14,207 11,715 21% 1,691 6% 7,272 5,923 23% 63 337 407 140 673 528 696 2,243 2,023 917 1% 4,693 3,779 24% 211 510 778 21 43 46 728 4,226 3,047 252 1,198 878 476 -4% 3,028 2,169 40% 491 -4% 2,973 2,197 35% (15) 55 (28) 0.11 0.68 0.62 32.9% 33.9% 33.6% 17.8% 21.8% 21.4% 9.3% 14.1% 12.3%
	4Q19	4Q18
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	5,427 3,634 1,793 22 198 695 922 152 6 777 318 459	5,145 3,454 1,691 63 140 696 917 211 21 728 252 476
Profit Attributable to Owners of Parent Minority interests EPS (RMB/share)	473 (14) 0.11	491 (15) 0.11
Gross margin	33.0%	32.9%
Operating margin	17.0%	17.8%
Net margin	8.5%	9.3%

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Shanshui: Summary of Balance Sheets

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R$ mn
	2019	1H19 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)	6,217 1,995 1,937 1,364 20,611 18,331 26,828 11,182 3,911 3,742 3,046 2,249 14,227 12,600 12,497 2.9	6,573 5,858 1,951 1,459 2,305 2,127 1,356 1,304 20,252 20,215 18,073 18,131 26,825 26,073 11,785 13,228 4,093 5,919 3,740 3,240 4,267 3,258 3,459 2,501 16,051 16,486 10,774 9,586 10,717 9,522 2.5 2.2
ROE	27.0%	34.5% 32.7%
ROA	11.2%	10.1% 8.6%
Net Gearing Ratio	36.5%	56.0% 71.8%
Net Debt	4,567	6,002 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	4,167 (1,567) (2,554) 46	2,180 (849) (349) 983	91% N.A. N.A. -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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