ACC — Investor Presentation 2021

Aug 12, 2021

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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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Aug 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)

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 3% Shanxi 14 mt 14% Northeast Shandong China 27 mt 58 mt 26% 57%

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.

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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 (2020) Operating Profit (2020)

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Stainless Steel 5% [Others 4%]
IPP 8%
ACC(TW)
AC(China)
25%
58%
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Others 5%
IPP 9%
ACC(TW) 7%
AC(China)
79%
Operating Profit
NT$mn
22,063 19,670
18,153
7,437
6,233
2016 2017 2018 2019 2020
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Revenue

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NT$mn
89,348
82,741
78,241
64,899
60,946
2016 2017 2018 2019 2020
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Note: ACC(TW)= Taiwan cement operation, RMC and other downstream value chain

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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

NT$ mn

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6,294
4,275
3,755
1,157
2017 2018 2019 2020
Future expenditure
•
IPP phase II commission
•
Circular Economy
•
Cement 4.0 manufacturing
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AC(China) Capex
470
RMB$ mn
239
154
135
2017 2018 2019 2020
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Future expenditure

• Emission & energy saving

• Process improvement

• 12mt aggregate capacity expansion in Jiangxi

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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$/t %
Inventory Level Market Price Inventory Level Market Price
600 90 600 80
550 550
80 70
500 500
70 60
450 450
400 60 400 50
350 350
50 40
300 300
40 30
250 250
200 30 200 20
Jan-20 Apr-20 Jul-20 Sep-20 Dec-20 Apr-21 Jul-21 Jan-20 Apr-20 Jul-20 Sep-20 Dec-20 Apr-21 Jul-21
Sichuan (Chengdu) Jiangsu (Nanjing)
R$/t Inventory Level Market Price % R$/t Inventory Level Market Price %
600 90 600 90
550 550
80 80
500 500
70 70
450 450
400 60 400 60
350 350
50 50
300 300
40 40
250 250
200 30 200 30
Jan-20 Apr-20 Jul-20 Sep-20 Dec-20 Apr-21 Jul-21 Jan-20 Apr-20 Jul-20 Sep-20 Dec-20 Apr-21 Jul-21
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Source: Digit Cement. Inventory level is based on the average of province.

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AC(China): 2Q21 Operating Data

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R$/t
ASP
RMC:R$/mm [3]
2Q20 2Q21
462
437
360
344
318
281
62 68
Cement Clinker RMC Aggregate
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mt
Shipment
RMC:mm [3]
2Q20 2Q21
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7.7 7.7
1.1 0.9
0.4 0.2 0.4 0.2
Cement Clinker RMC Aggregate
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Note: Net of VAT
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Gross Margin

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2Q20 2Q21
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76% 75%
42%
37% 39%
33%
16%
10%
Cement Clinker RMC
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Aggregate

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AC(China): 2Q21 Operating Data

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Cement Product by Regions

ASP

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R$/t
2Q20 2Q21
389
357 363 373 355
342 340 336
Jiangxi Hubei Sichuan Jiangsu
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Shipment

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mt
2Q20 2Q21
2.9 2.9
2.6
2.5
1.5 1.5
0.8 0.8
Jiangxi Hubei Sichuan Jiangsu
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Product Type

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AC(China): 1H21 Operating Data

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R$/t
ASP
RMC:R$/mm [3]
1H20 1H21
469
438
355 353
292 285
63 61
Cement Clinker RMC Aggregate
Note: Net of VAT
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mt
Shipment
RMC:mm [3]
13.5 1H20 1H21
10.3
2.6
1.9
0.8 0.6 0.5 0.4
Cement Clinker RMC Aggregate
Gross Margin
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1H20 1H21
74%
72%
43%
36% 37%
26%
14%
9%
Cement Clinker RMC Aggregate
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AC(China): 1H21 Operating Data

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Cement Product by Regions

ASP

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R$/t
1H20 1H21
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mt
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Shipment

1H20 1H21

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382
353 340 366 354 348 356 366
Jiangxi Hubei Sichuan Jiangsu
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5.0
4.4
3.9
3.6
2.7
1.8
1.4
1.1
Jiangxi Hubei Sichuan Jiangsu
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Product Type

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Shanshui Cement Operating Data

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

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Unit: R$/t ; %
Shandong (Jinan)
Inventory Level Market Price
R$/t %
600 90
550 80
500 70
450 60
400 50
350 40
300 30
250 20
200 10
Jan-20 Apr-20 Jul-20 Sep-20 Dec-20 Apr-21 Jul-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
Jan-20 Apr-20 Jul-20 Sep-20 Dec-20 Apr-21 Jul-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
Jan-20 Apr-20 Jul-20 Sep-20 Dec-20 Apr-21 Jul-21
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Liaoning (Shenyang)

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Inventory Level Market Price
R$/t %
600 90
550
80
500
70
450
400 60
350
50
300
40
250
200 30
Jan-20 Apr-20 Jul-20 Sep-20 Dec-20 Apr-21 Jul-21
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Source: Digit Cement. Inventory level is based on the average of province.

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Shanshui: 2020 Operating Data

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Operating Data by Products

R$/t

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RMC:R$/mm [3]
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ASP

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2019 2020
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Shipment

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mt
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RMC:mm [3 ] 2019 2020
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51.3
493 47.5
452
361
329
276 262
Cement Clinker RMC Cement
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8.2 8.7
3.2 2.8
Clinker RMC
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Note: Net of sales tax and surcharge.

Cost Breakdown

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Others 22% Others 20%
D&A 8% D&A 7%
Power
Power 9%
10%
Coal 23% Coal 23%
Materials Materials
38% 39%
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Others 22% Others 20%
D&A 8% D&A 7%
Power
Power 9%
10%
Coal 23% Coal 23%
Materials Materials
38% 39%
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2019

2020

22

Source: China Shanshui Cement Group Ltd. 2020 annual report.

Shanshui: 2020 Operating Data

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Cement Product by Regions

Shipment

ASP

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R$/t
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mt
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2019 2020
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2019 2020
2019 2020
466 468
418 28.3 29.1
376
285 274 262 257
14.9
12.2
5.7 6.3
1.4 1.0
Shandong Shanxi Northeast Xinjinag Shandong Shanxi Northeast Xinjinag
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Note: Net of sales tax and surcharge.

Product Type

Source: China Shanshui Cement Group Ltd. 2020 annual report

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PRC Industry Overview

26

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
1,629
2016-2020:
YoY+14.1%
1,388
1,500 2012-2015:
“New Normal
1,147
2009-2011:
Demand slowed Economy” urges
1,000 Demand boosted down and oversupply Supply-Side Reform
by R$4 trillion weakened ASP and industry
500 stimulus evolution.
0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 1H21
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Source: ccement, National Bureau of Statistics

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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. Environmental leaders to mitigate production halt

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

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Industry consolidation

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1. Encouraging production relocation and consolidation

2. Stricter environmental 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”

28

Jiangxi: Guaranteed Mid-long Term Demand

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Nanchang-Jiujiang to be Beijing
an important section of
Jiujiang
the national project
Beijing-HK HSR construction started in 2020
Nanchang
Jian
Ganzhou
Shenzhen
Hong Kong
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ZheGanYue canal to be a national water system

1. Important connection to link Beijing, Yangtze delta and Pearl delta.

2. Major projects:

Projects	Estimated Construction Period
Nanchang-Jiujiang High-speed Railway	2020~2023
Anqing-JiujiangHigh-speed Railway	2018~2022
Nanchang-Huangshan High-speed Railway	2019~2023
Expansion of Nanchang City Ring Expressway	2020~TBD

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Jiujiang
Nanchang
Jiujiang
Nanchang
廣東
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Source: Jiangxi Provincial Development and Reform Commission, Sina news, people.cn

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Sichuan: Gateway to the West

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Sichuan-Tibet Railway

1. Hub of coordinated development between eastern and western regions.

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1. Primary beneficiary of Western Development.

2. Major projects:

Projects	Estimated Construction Period
Sichuan-Tibet Railway	2013~2026
High-speed railways alongthe Yangtze River	2020~2025
Xian-ChengduHigh-SpeedRailway	2019~2025
Transportation Integration of Chengdu- ChongqingTwin Cities Economic Circle	2020~2022

High-speed Railways along the Yangtze River

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Nanjing
Hefei
Chengdu
Jingzhou
Shanghai
Wuhan
Chongqing
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Chengdu
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Source: National Development and Reform Commission, Xinhua news agency, ccement, itw01.com

30

Hubei: Surge of Transportation Projects

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Two Great Bridges to Be Constructed in Wuhan

infrastructure

1. 14[th] Five-Year Comprehensive Transportation Plan of Wuhan 3. Major projects:

Shuangliu Bridge

Wuhan City Guanggu Bridge

Estimated Projects Construction Period Wuhan west railway station 2021~TBD Wuhan-Dawu Highway 2018~2021 Wuhan-Yangxin Expressway 2018~2020 Shuangliu Yangtze Great Bridge 2020~TBD Guanggu Yangtze Great Bridge 2020~TBD Expansion of Tianhe International Airport 2020~TBD

Wuhan West Railway Station

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Wuhan
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Source: Hubei Provincial Development and Reform Commission, ccement, Fang.com, Tencent news

31

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Taiwan Industry Overview

32

Taiwan Cement Market

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Demand getting warm since 2018

ASP remain steady

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mt
Cement Consumption NT$/t
91.58% Anti-dumping tariff
20 YoY(%) 8%
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
2,283
10 -4% 2,300
6.2
-8% 2,200
5
-12% 2,100
2,100
0 -16% 2,000
2015 2016 2017 2018 2019 2020 1H21 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 1H21
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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

33

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%
23% 23% 23%
20%
10%
2014 2015 2016 2017 2018 2019 2020 1H21
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mt Cement and Clinker Sales ACC(Taiwan) Gross Margin
Local sales 20%
YoY +7.7%
14.8%
2.8 15%
2.6
YoY +4.4%
10%
1.4 1.4
5%
0%
2019 2020 1H20 1H21 2014 2015 2016 2017 2018 2019 2020 1H21
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14.8%
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34

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Financials

35

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

36

Performance by Segments

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

Revenue (2Q21)

Others 6%

Operating Profit (2Q21)

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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

37

Summary of P&L

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NT$ mn

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

Note: EPS is calculated using total outstanding shares.

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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 Intangible Assets Other 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% 34,504 11% 35,474 12% 28,215 9% 208,945 68% 96,003 31% 88,821 29% 7,035 2% 17,085 6% 307,138 100% 74,759 24% 49,729 16% 25,030 8% 67,598 22% 38,800 13% 15,395 5% 13,403 4% 142,357 46% 33,674 11% 164,780 54% 42.3		87,446 29% 87,024 29% 26,264 9% 25,912 9% 36,438 12% 35,693 12% 24,743 8% 25,419 9% 209,798 71% 210,063 71% 96,543 32% 96,054 32% 88,800 30% 89,409 30% 7,154 2% 7,254 2% 17,302 6% 17,345 6% 297,244 100% 297,087 100% 54,418 18% 64,028 22% 42,552 14% 49,238 17% 11,866 4% 14,790 5% 69,352 23% 63,172 21% 38,800 13% 38,800 13% 16,998 6% 10,945 4% 13,554 5% 13,427 5% 123,771 42% 127,200 43% 33,614 11% 33,614 11% 173,473 58% 169,887 57% 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)

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Summary of Cash Flow Statement

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NT$ mn
	2Q21	2Q20	YoY	1H21 1H20 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	4,515 1,215 905 299 (1,819) 5,115 (1,226) (258) 93 (388) (1,779) 6,719 0 (1,564) 5,156 (251) 8,240 3,889	4,667 1,200 2,433 (1) (101) 8,199 (1,462) (3,544) 28 (2,569) (7,548) (8,455) 0 (1,147) (9,602) (361) (9,312) 6,737	-38% NA NA NA -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.

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AC(China): Summary of P&L

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RMB$ mn		2Q20 YoY 1H21 1H20 YoY 3,027 -1% 5,301 4,314 23% 1,799 5% 3,428 2,528 36% 1,228 -10% 1,873 1,786 5% 17 40 74 115 233 179 66 144 251 1,063 -16% 1,536 1,431 7% 42 21 95 3 (2) 1 1,024 1,513 1,337 335 407 427 690 -9% 1,106 910 22% 668 -9% 1,073 878 22% 21 33 31 0.43 -9% 0.69 0.56 22% 40.6% 35.3% 41.4% 35.1% 29.0% 33.2% 22.1% 20.2% 20.4% 43.0% 37.4% 43.8% 1,302 -14% 1,982 1,888 -17%
	2Q21	2Q20
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	3,003	3,027 1,799 1,228 17 115 66 1,063 42 3 1,024 335 690
	1,892
	1,111
	(8)
	132
	78
	893
	11
	(1)
	880
	254
	626
Profit Attributable to Owners of Parent Minority interests EPS (RMB$/share)	606	668 21 0.43
	20
	0.39
Gross margin	37.0%	40.6%
Operating margin	29.7%	35.1%
Net margin	20.2%	22.1%
EBITDA margin	37.1%	43.0%
EBITDA	1,115	1,302

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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RMB$ mn
	2Q21		1Q21		2020
	Amount	%	Amount	%	Amount	%
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)	12,505 54% 816 4% 4,502 19% 7,116 31% 10,681 46% 7,299 31% 23,186 100% 4,038 17% 2,563 11% 1,130 5% 2,345 10% 2,150 9% 6,383 28% 16,803 72% 16,422 71% 10.5		10,855 50% 10,674 49% 685 3% 608 3% 4,750 22% 4,786 22% 5,353 25% 5,276 24% 10,848 50% 10,960 51% 7,448 34% 7,587 35% 21,703 100% 21,634 100% 2,351 11% 2,820 13% 977 5% 873 4% 1,005 5% 1,204 6% 2,340 11% 2,283 11% 2,152 10% 2,099 10% 4,691 22% 5,103 24% 17,012 78% 16,531 76% 16,616 77% 16,149 75% 10.6 10.3
ROE	18.6%		18.8% 17.5%
ROA	12.3%		12.3% 11.7%
Net Gearing Ratio	-15.0%		-13.4% -14.3%
Net Debt	(2,467)		(2,224) (2,303)

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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RMB$ mn		2Q20 YoY 1,073 -23% (1) NA (2,498) NA (1,426) NA	1H21 1H20 YoY 928 1,520 -39% (166) (143) 27 (21) NA 885 (285) NA 1,840 1,214 52%	YoY
	2Q21	2Q20
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 Net Changes in Cash	831 194 738 1,763	1,073 (1) (2,498) (1,426)

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Shanshui: Summary of P&L

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RMB$ mn
	2Q21	2Q20
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	7,272 5,003 2,270 126 191 366 1,839 62 20 1,797 242 1,555	6,914 4,331 2,583 247 170 374 2,286 101 7 2,191 414 1,778
Profit Attributable to Owners of Parent Minority interests EPS (RMB/share)	1,455 100 0.33	1,679 98 0.39
Gross margin	31.2%	37.4%
Operating margin	25.3%	33.1%
Net margin	20.0%	24.3%

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Shanshui: Summary of Balance Sheets

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RMB$ mn
	2Q21		1Q21		2020
	Amount	%	Amount	%	Amount	%
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)	7,549 27% 2,287 8% 2,393 8% 1,473 5% 20,756 73% 18,159 64% 28,306 100% 10,270 36% 2,299 8% 4,116 15% 921 3% 230 1% 11,192 40% 17,114 60% 16,909 60% 3.9		7,423 27% 20,103 73% 27,527 100% 9,884 36% 2,016 7% 11,899 43% 15,628 57%		7,178 26% 2,288 8% 2,319 8% 1,401 5% 20,499 74% 18,022 65% 27,677 100% 9,839 36% 2,197 8% 3,605 13% 1,956 7% 1,233 4% 11,795 43% 15,882 57% 15,703 57% 3.6
ROE	20.2%		22.6%
ROA	11.0%		11.7%
Net Gearing Ratio	4.6%		11.2%
Net Debt	779		1,764

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

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Shanshui: Summary of Cash Flow Statement

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RMB$ mn		1H20 YoY 1,297 737 (465) 33 1,602 26% (505) 50 (456) NA (751) 9 (742) NA (14) 404 -82% 1,097	YoY
	1H21	1H20
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 Other Fin. CF Items(1) Financing Cash Flow Effect of FX Net Changes in Cash Free Cash Flow	2,021 (1,078) (1,014) (936) 1 71 943	1,297 737 (465) 33 1,602 (505) 50 (456) (751) 9 (742) (14) 404 1,097

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CSR Achievements

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Sustainable Mining Mountain

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----- 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
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• 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
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Certification

• ISO14067 product carbon footprint

• ISO14046 product water footprint

• BS8001 Circular economy highest standard level

Source: Asia Cement CSR report

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The Path to Carbon Reduction

Instruments to evaluate the effectiveness of cutting emissions.

Internal Carbon Price

SBTi Targets Net Zero

Lower the carbon intensity of Scope 1&2 by 8% by 2025.

Realize carbon neutrality in cement and concrete by 2050.

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

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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.

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

Local Community Care

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Local Hiring Communication Construction Education Provide job Open to inspections Assist community Support aboriginal opportunities to eliminate doubts construction education

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

Hualien
Aboriginals
plant
Employee 45%
Asia
Cement Local hiring
(China)
Employee 71% Open to society &
academic
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Free house repairing

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After-school tutoring

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

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Sustainable Workforce

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Occupational Health Safety & heath management

OHSAS 18001 CNS 15006

、 、 Hualien plant Yuan Long converted to ISO 45001 、 CNS 45001

Carry out conversion in other subsidiaries

2018

2019~2020

2021

Gender Equality Workplace

Supply Chain Management

Equal pay for equal work

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Ethic Human Guideline Right Health & Environment Safety

Evaluation of low risk for the supply chain in 2018~2020.

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

Corporate Sustainability Management

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Expertise in…

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

Environ Operati
ment ons
Board
Financi
Industry
al
Diversity
Internati
Legal
onal
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Industry

Ethical Management

• Behavioral Principles Intellectual AntiProperty Legal corruption Rights

ACC dedicates to meet the standards, and implement training to employees.

• Unethical Behavior Report

0 Whistleblower cases of ethical Protection violations

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Source: Asia Cement & Asia Cement official website

Pushing on the Goal to Sustainability

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z	Objective	KPI	2020 Results	2030 Goal
Environmental Protection	Effective use of resource	Quantity of water re-used	86% of water re-used in Hualian plant	>85% of water re-used in Hualien plant
Climate Strategy	Reduction of emission	SBTi	Reduced 1.5% From 2019	Reduced 8% by 2025*
		CO2 Emission intensity
Circular Economy	Application of substitute fuel	Quantity of substitute fuel used	2% of substitute fuel used	15% of substitute fuel used
Labor Safety	Avoiding occupational injury	ISO 45001	Certified in Hualien plant & Yuan Long	Carry out in other subsidiaries

Note*: equivalent to reduce 258 thousand tons of GHG. Source: ACC CSR report

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ACC ESG Awards

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

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Asia Responsible Entrepreneurship Awards: 2020 Winner of Green Leadership

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

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TWSE Corporate Governance Evaluation: Top 6%~20%

& 7 years listed in

“Taiwan High Salary 100 Index”

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Taiwan & Global Corporate Sustainability Award: 2020 TCSA award

2020 GCSA Great Practice

Carbon Disclosure Project: 2020 B List

Ministry of Economics Affairs:

6 times awarded of Company in GHG Voluntary Reduction

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Source: ACC CSR report

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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