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ACC Investor Presentation 2021

Nov 16, 2021

51736_rns_2021-11-16_c5547762-84f5-4eea-a88c-01d058fbe5c8.pdf

Investor Presentation

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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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Oct 2021

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

  • ⚫ Asia Cement (China) Operating Data

⚫ Shanshui Cement Operating Data

  • ⚫ PRC Industry Overview

  • ⚫ Taiwan Industry Overview

  • ⚫ Financials

  • ⚫ CSR Achievements

3

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Company Snapshot

4

Company Snapshot

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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

  • AC(China) • In Central and Southwest China

  • (743 HK) • Cement capacity: 33.0 mtpa.

• LNG fired IPP (8% of revenue) Other • Cold rolled stainless steel Business (5% of revenue)

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Equity Investments
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FENC U-Ming Shanshui
(1402 TW) Marine Cement
(2606 TW) (691 HK)
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5

ACC (Taiwan) Overview

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  1. 2nd Largest Cement Player in Taiwan, enjoys steady market share.

  2. Profit contribution has improved since 2020 thanks to springing up

demand and down-trended coal cost.

ACC (TW)

Cement

Hualien Capacity: 5mtpa

Ready-Mix

Ya-Tung ready-mix concrete

Cement value chain Prefab, gravel mining

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6

ACC (China) Overview

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1. Located in the Yangtze River Economic Belt.

2. Leading player in top-tier cities of each operating province.

Chengdu

market share 33% No. 1

Wuhan

market share 18% No. 2

Jiujiang and Nanchang

market share 29% and 24% No. 1 and No.2

2020 Cement Capacity 33mtpa

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Hubei
8 mt
Jiangxi
24%
14 mt
43%
Sichuan
11 mt
33%
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7

Shanshui Cement Overview

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1. One of the major cement producers in Northern China.

  1. 7[th] largest National wide and 2[nd] largest capacity in Shandong province.

2020 Cement Capacity 103mtpa Xinjiang 4 mt

Shanxi 14 mt Northeast Shandong China 27 mt 58 mt

Note: Northeast China region includes Liaoning province and Inner Mongolia. Source: China Shanshui Cement Group Ltd. 2020 annual report.

8

Investment in Shanshui

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Timeline

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ACC began
to invest
Shanshui
2010
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Reclassified
ACC
the stake as
entered the
equity
BOD
investment
5/2018 10/2018
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Shanshui Shareholder Structure

Prior EGM 2018/10/30

Current

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China
China Shanshui ACC & Voting
Alliance
Shanshui ACC & Voting Investment
20.74%
Investment Alliance 19.47%
25.09% 26.72%
CNBM
Tianrui
12.94%
Group
CNBM
Tianrui
21.85%
16.67%
Group Others
28.16%
Others 25.00%
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.

9

ACC (non-cement business)

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1. IPP: LNG fired IPP with stable profit contribution.

2. Stainless Steel: Cold rolled stainless steel with 130,000 tons capacity.

IPP

Stainless Steel

  • Phase I capacity 700MW

  • • Expanding phase II project with 510MW in 2021

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10

Revenue and Operating Profit Breakdown

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Revenue (1H21)

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Others 6%
Stainless Steel 7%
IPP 5%
ACC(TW) AC(China)
26% 57%
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Operating Profit (1H21)

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Others 11%
Stainless Steel 1%
IPP 4%
ACC(TW)
13%
AC(China)
71%
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NT$mn

Revenue

NT$mn Operating Profit

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89,348
82,741
78,241 22,063
19,670
18,153
39,962
9,030
2018 2019 2020 1H21 2018 2019 2020 1H21
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Note: ACC(TW)= Taiwan cement operation, RMC and other downstream value chain

11

Investment Portfolio in Far Eastern Group

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NT$ mn
Incor-
porated
Year		 Investees Stock
Code		 Holdings Category Company Introduction
2004
1997
1992
1975		 Asia Cement (China) Holdings Corp.
743 HK
67.7%
Consolidation Top 10 cement producer in China
Far EasTone Telecommunications Ltd.
4904 TT
1.0%
FVTOCI
Top 3 telecom company in Taiwan
Far Eastern International Bank
2845 TT
2.4%
FVTOCI
Provide diversified financial services in
Greater China
Oriental Union Chemical Corp.
1710 TT
7.2%
FVTOCI
Important supplier of EG and chemical
products in Asia-Pacific
1968 U-Ming Marine Transport Corp.
2606 TT
39.3%
Equity Method Largest dry bulk carrier in Taiwan
1967 Far Eastern Department Stores Ltd.
2903 TT
5.7%
FVTOCI
Leading retailer of department store and
supermarket in Taiwan
1949 Far Eastern New Century Corp.
1402 TT
23.8%
Equity Method
Holding Company of Far East Group.
Core business integrated from
petrochemical to textile.

Note: 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))

12

Highlights of Capex

Consolidated Capex

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NT$ mn 6,294
4,275
3,755
1,693
2018 2019 2020 1H21
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Future expenditure

  • Circular Economy

  • Cement 4.0 manufacturing

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AC(China) Capex
RMB$ mn 470
239
166
154
2018 2019 2020 1H21
Future expenditure
•
Emission & energy saving
•
Process improvement
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13

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Asia Cement (China) Operating Data

14

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

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Unit: R$/t ; %
Jiangxi (Nanchang) Hubei (Wuhan)
R$/t % R$/t %
Inventory Level Market Price Inventory Level Market Price
700 90 750 80
650 80 700 70
650
600
70 60
600
550
60 550 50
500
500
50 40
450
450
400 40 400 30
350 30 350 20
Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21
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Sichuan (Chengdu)

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R$/t Inventory Level Market Price %
700 90
650 80
600
70
550
60
500
50
450
400 40
350 30
Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21
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Jiangsu (Nanjing)
R$/t Inventory Level Market Price %
700 90
650 80
70
600
60
550
50
500
40
450
30
400 20
350 10
Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21
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Source: Digit Cement. Inventory level is based on the average of province.

15

AC(China): 3Q21 Operating Data

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R$/t ASP mt Shipment
RMC:R$/mm [3] RMC:mm [3]
3Q20 3Q21 3Q20 3Q21
463
438
327 340 7.4
309 6.8
273
58 69 1.0 0.9 1.3
0.3 0.1 0.5
Cement Clinker RMC Aggregate Cement Clinker RMC Aggregate
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Note: Net of VAT

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Gross Margin

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3Q20 3Q21
79%
76%
40% 41%
30%
26%
19%
3%
Cement Clinker RMC
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Aggregate

16

AC(China): 9M21 Operating Data

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R$/t ASP
RMC:R$/mm [3]
9M20 9M21
466
438
343 348
299
282
61 62
Cement Clinker RMC Aggregate
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Shipment

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mt
RMC:mm [3]
9M20 9M21
20.3
17.8
3.2 3.2
1.8 1.6
0.9 0.5
Cement Clinker RMC Aggregate
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Note: Net of VAT

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Gross Margin

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9M20 9M21
75% 73%
42%
39%
33%
28%
16%
7%
Cement Clinker RMC
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Aggregate

17

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Shanshui Cement Operating Data

18

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

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Unit: R$/t ; %
Shandong (Jinan)
Inventory Level Market Price
R$/t %
700 90
650 80
600 70
550 60
500 50
450 40
400 30
350 20
300 10
Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21
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Shanxi (Taiyuan)
Inventory Level Market Price
R$/t %
600 90
550
80
500
70
450
400 60
350
50
300
40
250
200 30
Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21
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Inner Mongolia (Hohhot)

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R$/t Inventory Level Market Price %
600 90
550
80
500
70
450
400 60
350
50
300
40
250
200 30
Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21
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Liaoning (Shenyang)

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R$/t Inventory Level Market Price %
800 90
700 80
70
600
60
500
50
400
40
300 30
200 20
Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21
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Source: Digit Cement. Inventory level is based on the average of province.

19

Shanshui: 1H21 Operating Data

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Operating Data by Products

Shipment

ASP

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mt
RMC:mm [[3 ]] 1H20 1H21
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R$/t
RMC:R$/mm [3] 1H20 1H21 RMC:mm [[3 ]] 1H20 1H21
470
410 25.1
338 338 20.6
257 264
3.7 4.0
1.3 1.5
Cement Clinker RMC Cement Clinker RMC
Note: Net of sales tax and surcharge.
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Cost breakdown

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Others 10% Others 11%
D&A 7% D&A 6%
Power
Power 9%
10%
Coal 22% Coal 24%
Materials Materials
51% 51%
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Others 10% Others 11%
D&A 7% D&A 6%
Power
Power 9%
10%
Coal 22% Coal 24%
Materials Materials
51% 51%
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1H20

1H21

20

Source: China Shanshui Cement Group Ltd. 2021 interim report.

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PRC Industry Overview

21

China Cement Demand Outlook

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Infrastructure :

  • RMB$3.65 tn local government special bond for 2021 and raising the urbanization ratio in 14FYP indicates support for transport constructions and infrastructure projects.

: Property

  • Rigid demand for real estate in Tier 1&2 cities.

  • Construction investments are expected to sustain momentum 2021.

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mt 2021-2023: Plateau Period with Well-controlled Supply and Stable Demand
3,000
2,476
2,500 2,414 2,348 2,403 2,316 2,339 2,377
2,184 2,177
2,063
1,868
2,000 1,778
1,629
2016-2020:
1,388
1,500 2012-2015: YoY+5.3%
“New Normal
2009-2011:
Demand slowed Economy” urges
1,000
Demand boosted down and oversupply Supply-Side Reform
by R$4 trillion weakened ASP and industry evolution.
500
stimulus
0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 9M21
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Source: ccement, National Bureau of Statistics

22

China Cement Industry Policy Trend

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Capacity expansion control

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  1. Production halt normalized

  2. Tightening regulation for capacity swap

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Emission reduction

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  1. The industry is expected to be included in carbon trade system

  2. Higher standards of emission control and energy consumption

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Industry consolidation

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  1. Encouraging production relocation and consolidation

  2. Stricter environmental policies and higher production costs

Source: China Cement Association “De-capacity action plan”, ”Cement industry 14[th] five year plan”, PRC State Council “Guiding policies to facilitate structural upgrade of building materials industry”

23

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Taiwan Industry Overview

24

Taiwan Cement Market

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Demand getting warm since 2018

ASP remain steady

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mt
Cement Consumption NT$/t
20 YoY(%) 8% 91.58% Anti-dumping tariff
2,600
imposed on cement products from China
2011/5/30~2022/2/19
4% 2,500
15
2,400
11.7 12.1 0% 2,400
11.4
10.7
10.3 10.2 2,291
10 9.2 -4% 2,300
-8% 2,200
5
-12% 2,100
2,100
0 -16% 2,000
2015 2016 2017 2018 2019 2020 9M21 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 9M21
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  1. Central government proposed the Forward-looking Infrastructure Development Program (2018-2021) with a budget of NT$420 bn.

  2. ASP remains steady since antidumping tariff blocked import from China.

  3. Trade frictions prompt Taiwanese corporate to return to invest in Taiwan.

Note: consumption ＝ local ＋ imports

Source: National Development Council, Taiwan Cement Manufacturers’ Association

25

ACC(Taiwan) Outlook: Improving sales and margins

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Domestic market shares

  1. Local sales improved thanks to increasing demand.

  2. Gross margin continued to pick up on lower coal cost.

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40%
30% 27% 27% 26%
24% 24% 24%
23% 23%
20%
10%
2014 2015 2016 2017 2018 2019 2020 9M21
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mt Cement and Clinker Sales
Local sales
YoY +7.7% YoY +7.3%
2.8
2.6
2.2
2.1
2019 2020 9M20 9M21
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ACC(Taiwan) Gross Margin

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----- Start of picture text -----

20%
14.0%
15%
10%
5%
0%
2014 2015 2016 2017 2018 2019 2020 9M21
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26

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Financials

27

Steady Payout with Enjoyable Yields

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Note1: Payable EPS= Net income – Investment property adjustment Note2: Dividend yield= Cash dividend / Last 12-month average share price

28

Performance by Segments

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NT$ mn
2Q21
2Q20
YoY		 1H21
1H20
YoY
Operating Revenue 22,084
20,689
7%
17,968
17,304
4%
1,524
1,495
2%
1,342
1,011
33%
1,250
879
42%
15,874
14,012
13%
6,210
6,677
-7%
903
1,266
-29%
5,307
5,411
-2%
4,285
4,568
-6%
330
432
-24%
66
(4)
NA
627
416
51%		 39,962
33,828
18%
32,889
27,421
20%
2,088
2,885
-28%
2,731
2,018
35%
2,254
1,505
50%
29,391
24,453
20%
10,571
9,375
13%
1,540
1,943
-21%
9,030
7,432
21%
7,580
6,231
22%
324
723
-55%
119
(28)
NA
1,007
506
99%
Cement business
Power business
Stainless Steel business
Others
Operating Cost
Net Gross Profit
SG&A expenses
Operating profit
Cement business
Power business
Stainless Steel business
Others

Revenue (2Q21)

Others 6%

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Operating Profit (2Q21)
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----- Start of picture text -----

Others 12%
Stainless Steel 6%
Stainless Steel 1%
IPP 7%
IPP 6%
ACC(TW) 8%
ACC(TW) 23% AC(China) AC(China)
58% 73%
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Note: ACC(TW)= Taiwan cement operation, RMC and other downstream value chain

29

Summary of P&L

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NT$ mn NT$ mn
2Q21
2Q20
YoY		 1H21
1H20
YoY
Operating Revenue
22,084
20,689
7%
39,962
33,828
18%
Operating Cost
15,874
14,012
13%
29,391
24,453
20%
Net Gross Profit
6,210
6,677
-7%
10,571
9,375
13%
SG&A expenses
903
1,266
-29%
1,540
1,943
-21%
Operating profit
5,307
5,411
-2%
9,030
7,432
21%
Non-operating income(net)
1,497
2,305
-35%
2,518
1,852
36%
Equity Income
2,263
1,833
23%
2,854
1,991
43%
Far Eastern New Century Corp.
591
241
145%
1,063
575
85%
U-Ming Marine Transport Corp.
405
40
908%
540
(112)
NA
Shanshui Cement Co. Ltd.
1,027
1,196
-14%
817
854
-4%
Others
241
355
-32%
434
675
-36%
Net Interest Income (Expense)
5
(5)
(7)
(86)
Dividend Income
332
298
335
301
Gain (loss) on exchange
(170)
(185)
(199)
(108)
Gain (loss) on FVTPL Financial Assets and Liabilities
(815)
219
(406)
(422)
Gain (loss) on Investment Property
41
96
72
130
Others
(160)
51
(130)
47
Pre tax Income
6,805
7,716
11,548
9,285
Net income
5,366
5,703
-6%
9,215
6,834
35%
Profit Attributable to Owners of Parent
4,515
4,667
-3%
7,715
5,411
43%
EPS (NT$/share)
1.34
1.39
-4%
2.29
1.61
42%
Gross margin
28.1%
32.3%
26.5%
27.7%
Operating margin
24.0%
26.2%
22.6%
22.0%
Net margin
20.4%
22.6%
19.3%
16.0%

Note: EPS is calculated using total outstanding shares.

30

Summary of Balance Sheets

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NT$ mn
2Q21 1Q21 2020
Amount % Amount % Amount %
Current Assets
Cash&Cash equivalents
Short-term Investments
Others
Non-Current Assets
Long-term Investment
Fixed Assets
Total Assets
Current Liabilities
Short-term debt
Others
Non-Current Liabilities
Bonds Payable
Bank Loans
Others
Total Liabilities
Capital Stock
Total Shareholders’ Equity
Book Value(NT$/Share)		 98,193
32%
87,446
29%
87,024
29%
34,504
11%
26,264
9%
25,912
9%
35,474
12%
36,438
12%
35,693
12%
28,215
9%
24,743
8%
25,419
9%
208,945
68%
209,798
71%
210,063
71%
96,003
31%
96,543
32%
96,054
32%
88,821
29%
88,800
30%
89,409
30%
307,138
100%
297,244
100%
297,087
100%
74,759
24%
54,418
18%
64,028
22%
49,729
16%
42,552
14%
49,238
17%
25,030
8%
11,866
4%
14,790
5%
67,598
22%
69,352
23%
63,172
21%
38,800
13%
38,800
13%
38,800
13%
15,395
5%
16,998
6%
10,945
4%
13,403
4%
13,554
5%
13,427
5%
142,357
46%
123,771
42%
127,200
43%
33,674
11%
33,614
11%
33,614
11%
164,780
54%
173,473
58%
169,887
57%
42.3
44.9
44.0
ROE 12.2%
11.7%
10.0%
Net Gearing Ratio 23.8%
23.6%
25.3%
Net Debt 33,946
35,648
37,378
Net Debt/EBITDA 1.3
1.4
1.5

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

31

Summary of Cash Flow Statement

==> picture [54 x 49] intentionally omitted <==

NT$ mn NT$ mn
Cash Flow
2Q21
2Q20		 YoY 1H21
1H20
YoY
Net Income
4,515
4,667
Depr&Amort
1,215
1,200
Changes of non-cash WC
905
2,433
Disposal/(Acquisition) of FVTPL FA(1)
299
(1)
Other Ope. CF Items
(1,819)
(101)
Operating Cash Flow
5,115
8,199
-38%
CAPEX
(1,226)
(1,462)
Disposal/(Acquisition) of AC FA(2)
(258)
(3,544)
Disposal/(Acquisition) of FVTOCI FA
93
28
Other Inv. CF Items
(388)
(2,569)
Investing Cash Flow
(1,779)
(7,548)
NA
Changes in Debt/Borrowings
6,719
(8,455)
Dividends Paid
0
0
Other Fin. CF Items
(1,564)
(1,147)
Financing Cash Flow
5,156
(9,602)
NA
Effect of FX
(251)
(361)
Net Changes in Cash
8,240
(9,312)
NA
Free Cash Flow
3,889
6,737
-42%		 7,715
5,411
2,444
2,428
173
5,917
298
(834)
(3,677)
(2,569)
6,952
10,352
-33%
(1,693)
(3,147)
(241)
(10,704)
93
(1,118)
(447)
(2,650)
(2,287)
(17,618)
NA
6,045
4,563
0
0
(1,734)
(1,204)
4,311
3,359
28%
(385)
(454)
8,592
(4,360)
NA
5,260
7,206
-27%

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

32

AC(China): Summary of P&L

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RMB$ mn
3Q21 3Q20 YoY 9M21 9M20 YoY
Operating revenue 2,720 2,953 -8% 8,021 7,267 10%
Operating cost 1,991 1,772 12% 5,419 4,299 26%
Gross Profit 729 1,182 -38% 2,602 2,968 -12%
Other net income/(loss) 25 40 65 113
Selling&marketing costs 124 119 357 297
Administative expenses 128 67 271 317
Operating income 502 1,036 -52% 2,038 2,467 -17%
Finance costs 21 26 42 121
Shares of results of jointly controlled entities (3) 0 (4) 1
Pre tax Income 479 1,011 1,992 2,347
Tax 172 240 578 667
Net Income 307 771 -60% 1,413 1,680 -16%
Profit Attributable to Owners of Parent 296 749 -60% 1,370 1,627 -16%
Minority interests 11 22 44 53
EPS (RMB$/share) 0.19 0.48 -60% 0.87 1.04 -16%
Gross margin 26.8% 40.0% 32.4% 40.8%
Operating margin 18.5% 35.1% 25.4% 33.9%
Net margin 10.9% 25.4% 17.1% 22.4%
EBITDA margin 26.6% 42.8% 33.7% 43.4%
EBITDA 722 1,264 -43% 2,704 3,152 -14%

33

AC(China): Balance Sheets & Cash flow

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RMB$ mn
Cash Flow
3Q21
3Q20
YoY
9M21
9M20
YoY
Operating Cash Flow
656
1,159
-43%
1,584
2,679
-41%
Investing Cash Flow
723
(135)
NA
750
(156)
NA
Financing Cash Flow
(1,967)
(647)
NA
(1,082)
(932)
NA
Net Changes in Cash
(588)
377
NA
1,252
1,591
-21%
RMB$ mn
Amount
%
Amount
%
Amount
%
Current Assets
11,247
52%
12,505
54%
10,674
49%
Non-Current Assets
10,521
48%
10,681
46%
10,960
51%
Current Liabilities
3,415
16%
4,038
17%
2,820
13%
Non-Current Liabilities
1,242
6%
2,345
10%
2,283
11%
Total Equity
17,110
79%
16,803
72%
16,531
76%
Book Value(RMB/Share)
10.7
10.5
10.3
ROE
15.1%
18.6%
17.5%
ROA
10.6%
12.3%
11.7%
Net Gearing Ratio
-22.9%
-15.0%
-14.3%
Net Debt
(3,826)
(2,467)
(2,303)
Balance Sheets
3Q21
2Q21
2020		 RMB$ mn
Cash Flow
3Q21
3Q20
YoY
9M21
9M20
YoY
Operating Cash Flow
656
1,159
-43%
1,584
2,679
-41%
Investing Cash Flow
723
(135)
NA
750
(156)
NA
Financing Cash Flow
(1,967)
(647)
NA
(1,082)
(932)
NA
Net Changes in Cash
(588)
377
NA
1,252
1,591
-21%
RMB$ mn
Amount
%
Amount
%
Amount
%
Current Assets
11,247
52%
12,505
54%
10,674
49%
Non-Current Assets
10,521
48%
10,681
46%
10,960
51%
Current Liabilities
3,415
16%
4,038
17%
2,820
13%
Non-Current Liabilities
1,242
6%
2,345
10%
2,283
11%
Total Equity
17,110
79%
16,803
72%
16,531
76%
Book Value(RMB/Share)
10.7
10.5
10.3
ROE
15.1%
18.6%
17.5%
ROA
10.6%
12.3%
11.7%
Net Gearing Ratio
-22.9%
-15.0%
-14.3%
Net Debt
(3,826)
(2,467)
(2,303)
Balance Sheets
3Q21
2Q21
2020		 RMB$ mn
Cash Flow
3Q21
3Q20
YoY
9M21
9M20
YoY
Operating Cash Flow
656
1,159
-43%
1,584
2,679
-41%
Investing Cash Flow
723
(135)
NA
750
(156)
NA
Financing Cash Flow
(1,967)
(647)
NA
(1,082)
(932)
NA
Net Changes in Cash
(588)
377
NA
1,252
1,591
-21%
RMB$ mn
Amount
%
Amount
%
Amount
%
Current Assets
11,247
52%
12,505
54%
10,674
49%
Non-Current Assets
10,521
48%
10,681
46%
10,960
51%
Current Liabilities
3,415
16%
4,038
17%
2,820
13%
Non-Current Liabilities
1,242
6%
2,345
10%
2,283
11%
Total Equity
17,110
79%
16,803
72%
16,531
76%
Book Value(RMB/Share)
10.7
10.5
10.3
ROE
15.1%
18.6%
17.5%
ROA
10.6%
12.3%
11.7%
Net Gearing Ratio
-22.9%
-15.0%
-14.3%
Net Debt
(3,826)
(2,467)
(2,303)
Balance Sheets
3Q21
2Q21
2020
Amount
%
3Q21		 Amount
%
2Q21		 Amount
2020		 %

34

Shanshui: Summary of P&L

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RMB$ mn
3Q21 3Q20 YoY 9M21 9M20 YoY
Operating revenue 7,180 6,565 9% 17,572 15,311 15%
Operating cost 5,383 4,511 19% 12,781 10,236 25%
Gross Profit 1,797 2,054 -12% 4,791 5,076 -6%
Other net income/(loss) (68) 92 103 388
Selling&marketing costs 211 210 540 461
Administative expenses 408 393 1,557 1,500
Operating income 1,109 1,543 -28% 2,798 3,502 -20%
Finance costs 96 143 223 328
Shares of results of jointly controlled entities (7) 18 15 27
Pre tax Income 1,007 1,418 2,590 3,202
Tax 397 326 728 786
Net Income 611 1,092 -44% 1,862 2,416 -23%
Profit Attributable to Owners of Parent 577 1,035 -44% 1,780 2,332 -24%
Minority interests 34 57 82 84
EPS (RMB/share) 0.13 0.24 0.41 0.54
Gross margin 25.0% 31.3% 27.3% 33.1%
Operating margin 15.5% 23.5% 15.9% 22.9%
Net margin 8.5% 15.8% 10.6% 15.2%

35

Shanshui: Balance Sheets & Cash flow

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RMB$ mn

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----- Start of picture text -----

3Q21 2Q21 2020
Balance Sheets
Amount % Amount % Amount %
Current Assets 8,634 30% 7,549 27% 7,178 26%
Non-Current Assets 20,470 70% 20,756 73% 20,499 74%
Current Liabilities 10,521 36% 10,270 36% 9,839 36%
Non-Current Liabilities 840 3% 921 3% 1,956 7%
Total Equity 17,742 61% 17,114 60% 15,882 57%
ROE 20.2% 22.6%
ROA 11.0% 11.7%
Net Gearing Ratio 4.6% 11.2%
Net Debt 779 1,764
----- End of picture text -----

RMB$ mn

Cash Flow 1H21 1H20 YoY
Operating Cash Flow 2,021 1,602 26%
Investing Cash Flow (1,014) (456) NA
Financing Cash Flow (936) (742) NA
Net Changes in Cash 71 404 -82%

36

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CSR Achievements

37

Sustainability Recognition

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The target of emission reduction approved by the SBTi in 03/2021

Included in the FTSE4Good TIP Taiwan Index by FTSE Russel since 2018

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TWSE Corporate Governance Evaluation: 2020 Top 6%~20% & 7 years listed in “Taiwan High Salary 100 Index”

Asia Responsible Entrepreneurship Awards: 2020 Winner of Green Leadership

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Taiwan & Global Corporate Sustainability Award: 2020 TCSA award 2020 GCSA Great Practice

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AC(China) is nominated by IR Magazine :

IR Magazine Awards – Greater China 2021

Best in sector: materials

38

Source: Asia Cement CSR report

450 400 350

300

250

Path to Net Zero

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Asia Cement Scope 1+2 carbon emission

10,000 t

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----- Start of picture text -----

382
----- End of picture text -----

200 150 100

50

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----- Start of picture text -----

0
----- End of picture text -----

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----- Start of picture text -----

321 324
2025 Target
Net Zero
concrete
Reduced by
-8%
2015 2016 2017 2018 2019 2020 2025 2030 2035 2040 2045 2050
----- End of picture text -----*

Net Zero concrete

Note*; Compare to 2019 Source: Asia Cement CSR report

39

Science Based Target for Carbon Reduction

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SBT reduction path

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----- Start of picture text -----

Target volume of carbon reduction(RHS) Target value of SBT(LHS)
0.878
0.864
0.9 0.854 0.842 50
0.830
0.819
0.807
0.8
0
0.7
5.8
0.6 29.6 -50
2019 2020 2021 2022 2023 2024 2025
Alternative Material Alternative Fuel Clinker/Cement
1,500 1,300 20% 0.96 0.94
15%
15%
1,000 0.92
10% 0.88
500 0.88
219 5% 3%
0 0% 0.84
2020 2021 2025 2030 2020 2021 2025 2030 2020 2021 2025 2030
10,000 tCO2e
Emission Intensity
(tCO2/Cementitious Materials)
----- End of picture text -----

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----- Start of picture text -----

0.96
0.94
0.92
0.88
0.88
0.84
2020 2021 2025 2030
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Source: Asia Cement CSR report

40

Sustainable Mining Mountain

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==> picture [692 x 193] intentionally omitted <==

----- Start of picture text -----

Mining Safety Environment Restoration
greenary area(%)
77.0%
76.5%
24/7 vibration monitoring 74.2%
Detention basins building
No landslide caused by
mining in 40 years operation 2018 2019 2020
----- End of picture text -----

  • 24/7 vibration monitoring

  • Detention basins building

  • • No landslide caused by mining in 40 years operation

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----- Start of picture text -----

Circular Economy
Recycleable material used (%)
9.83%
8.94%
8.67%
2018 2019 2020
----- End of picture text -----

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Certification

  • ISO14067 product carbon footprint

  • ISO14046 product water footprint

  • BS8001 Circular economy highest standard level

Source: Asia Cement CSR report

41

Emission Control and Energy Saving: ACC (Taiwan)

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ACC(Taiwan) ACC(Taiwan) ACC(Taiwan)
Emission (ton/yr) National Standard 2020
SO2 715 486
NOx 5,813 5,153
Particles 1,528 1,409
Energy Consumption The Previous Year 2020
Total consumption(MWh) 3,714,425 3,789,847
Consumption per unit
(MWh/ton)		 1.43 1.37

Green Power Purchasing

Complying with the green energy policy, a total of 67 certificates of renewable energy were purchased.

==> picture [78 x 80] intentionally omitted <==

42

Source: Asia Cement & Asia Cement (China) CSR report

Emission Control and Energy Saving : ACC (China)

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----- Start of picture text -----

Note： superior to ultra-low standard
as of 2020
Asia Cement (China)
Emission (mg/m [3] ) Jiangxi Hubei Sichuan
SO 28 31 5
2
NO 269 193 76
x
Particles 7 7 3
National
Energy Consumption 2020
Standard
Coal Consumption of Clinker (kgce/t) 112 103
Power Consumption of Clinker (kwh/t) 64 57
Energy Consumption of Clinker (kgce/t) 120 110
Power Consumption of Cement (kwh/t) 90 78
Energy Consumption of Cement (kgce/t) 98 94
----- End of picture text -----

43

Source: Asia Cement & Asia Cement (China) CSR report

Capacity in Jiangxi, China

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45

Capacity in Hualien, Taiwan Capacity in Jiangxi, China

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46

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Thank you

[email protected] http:// www.acc.com.tw

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Q&A: Mining Concerns

ACC Eco-friendly Achievements

Download: ACC Financials

47

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