ACC — Investor Presentation 2021

Jun 10, 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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May 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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Market Cap: US$ 5.8 bn / NT$ 161 bn (as of May 2021)

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

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 670MW

• • 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

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

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
Future expenditure
•
Emission & energy saving
•
Process improvement
•
12mt aggregate capacity
expansion in Jiangxi
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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 ; %

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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-19 Apr-19 Jul-19 Sep-19 Dec-19 Apr-20 Jun-20 Sep-20 Dec-20 Mar-21 Jan-19 Apr-19 Jul-19 Sep-19 Dec-19 Apr-20 Jun-20 Sep-20 Dec-20 Mar-21
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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-19 Apr-19 Jul-19 Sep-19 Dec-19 Apr-20 Jun-20 Sep-20 Dec-20 Mar-21 Jan-19 Apr-19 Jul-19 Sep-19 Dec-19 Apr-20 Jun-20 Sep-20 Dec-20 Mar-21
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Source: Digit Cement. Inventory level is based on the average of province.

15

AC(China): 1Q21 Operating Data

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R$/t mt
ASP Shipment
RMC:R$/mm [3] RMC:mm [3]
1Q20 1Q21 1Q20 1Q21
483
439
5.8
385
342
302
272
2.6
1.7
64 57 0.9
0.4 0.5
0.2 0.2
Cement Clinker RMC Aggregate Cement Clinker RMC Aggregate
Note: Net of VAT
Gross Margin
1Q20 1Q21
71% 70%
46%
36%
33%
22%
9% 8%
Cement Clinker RMC Aggregate
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AC(China): 1Q21 Operating Data

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Cement Product by Regions

ASP

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R$/t
1Q20 1Q21
404 398
382 379 372
341 341 336
Jiangxi Hubei Sichuan Jiangsu
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Shipment

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mt
1Q20 1Q21
2.1
1.9
1.1
1.0 1.0
0.6
0.4
0.3
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-19 Apr-19 Jul-19 Sep-19 Dec-19 Apr-20 Jun-20 Sep-20 Dec-20 Mar-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-19 Apr-19 Jul-19 Sep-19 Dec-19 Apr-20 Jun-20 Sep-20 Dec-20 Mar-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-19 Apr-19 Jul-19 Sep-19 Dec-19 Apr-20 Jun-20 Sep-20 Dec-20 Mar-21
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Liaoning (Shenyang)

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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-19 Apr-19 Jul-19 Sep-19 Dec-19 Apr-20 Jun-20 Sep-20 Dec-20 Mar-21
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Source: Digit Cement. Inventory level is based on the average of province.

19

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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2019

2020

20

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

21

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PRC Industry Overview

22

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 strong demand for transport constructions and infrastructure projects.

: Property

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

• Construction activities are expected to continue to accelerate in 1H21.

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mt 2021-2023: Plateau Period with Well-controlled Supply and Stable Demand 3,000

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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:
1,388
1,500 2012-2015:
“New Normal
2009-2011:
Demand slowed Economy” urges
1,000 Demand boosted down and oversupply Supply-Side Reform YoY+47.3%
by R$4 trillion weakened ASP and industry evolution. 439
500 stimulus
0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 1Q21
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Source: ccement, National Bureau of Statistics

23

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”

24

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

25

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-speedrailways along theYangtzeRiver	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

26

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

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Wuhan
City
Guanggu Bridge
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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

27

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Taiwan Industry Overview

28

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% 2,600 91.58% Anti-dumping tariff
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
2,270
10 -4% 2,300
-8% 2,200
5
3.1
-12% 2,100
2,100
0 -16% 2,000
2015 2016 2017 2018 2019 2020 1Q21 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 1Q21
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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

29

ACC(Taiwan) Outlook: Improving sales and margins

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Domestic market shares

1. Local sales improved thanks to increasing demand.

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40%
30% 27% 27% 26%
24% 24% 24%
23% 23%
20%
10%
2014 2015 2016 2017 2018 2019 2020 1Q21
ACC(Taiwan) Gross Margin
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1. Gross margin continued to pick up

on lower coal cost.

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mt Cement and Clinker Sales ACC(Taiwan) Gross Margin
Local sales
20% 17.5%
YoY +7.7%
2.8
2.6 15%
10%
YoY +13.7%
0.7 0.8 5%
0%
2014 2015 2016 2017 2018 2019 2020 1Q20
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1Q20

1Q21

2019

2020

30

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Financials

31

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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

32

Performance by Segments

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NT$ mn

	1Q21	1Q20	YoY	2020 2019 YoY
Operating Revenue Cement business Power business Stainless Steel business Others Operating Cost Net Gross Profit SG&A expenses Operating profit	17,877 14,921 563 1,389 1,004 13,517 4,360 637 3,723	13,139 10,116 1,390 1,007 626 10,441 2,698 676 2,022	36% 78,241 89,348 -12% 47% 64,907 73,849 -12% -59% 5,933 7,115 -17% 38% 4,212 5,439 -23% 60% 3,189 2,945 8% 29% 54,911 63,747 -14% 62% 23,329 25,601 -9% -6% 3,659 3,523 4% 84% 19,670 22,063 -11% 98% 16,839 19,974 -16% NA 1,815 1,382 31% NA (6) 85 NA 322% 1,022 622 64%
Cement business Power business Stainless Steel business Others	3,295 (6) 53 381	1,663 292 (24) 90

Revenue (1Q21)

Operating Profit (1Q21)

Others 6%

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Others 6% Others 10%
Stainless Steel 8%
Stainless Steel
IPP 3% 1%
ACC(TW) 20%
ACC(TW) 29% AC(China)
AC(China) 68%
55%
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Note: ACC(TW)= Taiwan cement operation, RMC and other downstream value chain

33

Summary of P&L

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NT$ mn
	1Q21	1Q20	YoY	2020 2019 YoY
Operating Revenue Operating Cost Net Gross Profit SG&A expenses Operating profit	17,877 13,517 4,360 637 3,723	13,139 10,441 2,698 676 2,022	36% 78,241 89,348 -12% 29% 54,911 63,747 -14% 62% 23,329 25,601 -9% -6% 3,659 3,523 4% 84% 19,670 22,063 -11% NA 4,474 6,330 -29% 273% 4,640 5,490 -15% 42% 1,066 1,638 -35% NA 345 637 -46% NA 2,146 2,212 -3% -40% 1,082 1,004 8% (78) (695) 334 451 (162) (260) (241) 1,129 238 198 (256) 16 24,144 28,393 240% 18,774 22,244 -16% 330% 14,710 17,460 -16% 330% 4.38 5.19 -16% 29.8% 28.7% 25.1% 24.7% 18.8% 19.5%
Non-operating income(net) Equity Income	1,021 590	(453)
		158
Far Eastern New Century Corp. U-Ming Marine Transport Corp. Shanshui Cement Co. Ltd. Others	472 134 (210) 193	333 (152) (342) 319
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	(12)	(81)
	3	3
	(30) 409	77 (641)
	31	34
	30	(3)
	4,744	1,568
	3,849	1,131
Profit Attributable to Owners of Parent EPS (NT$/share)	3,200 0.95	744 0.22
Gross margin	24.4%	20.5%
Operating margin	20.8%	15.4%
Net margin	17.9%	5.7%

Note: EPS is calculated using total outstanding shares.

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Summary of Balance Sheets

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NT$ mn
	1Q21		2020		2019
	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 Total Shareholders’ Equity Book Value(NT$/Share)	87,446 29% 26,264 9% 36,438 12% 24,743 8% 209,798 71% 96,543 32% 88,800 30% 7,154 2% 17,302 6% 297,244 100% 54,418 18% 42,552 14% 11,866 4% 69,352 23% 38,800 13% 16,998 6% 13,554 5% 123,771 42% 173,473 58% 44.9		87,024 29% 89,242 30% 25,912 9% 24,735 8% 35,693 12% 31,724 11% 25,419 9% 32,783 11% 210,063 71% 208,036 70% 96,054 32% 96,140 32% 89,409 30% 86,858 29% 7,254 2% 7,000 2% 17,345 6% 18,038 6% 297,087 100% 297,279 100% 64,028 22% 74,336 25% 49,238 17% 55,895 19% 14,790 5% 18,440 6% 63,172 21% 53,494 18% 38,800 13% 19,281 6% 10,945 4% 20,821 7% 13,427 5% 13,392 5% 127,200 43% 127,829 43% 169,887 57% 169,449 57% 44.0 43.5
ROE	11.7%		10.0% 12.3%
Net Gearing Ratio	23.6%		25.3% 27.1%
Net Debt	35,648		37,378 39,538
Net Debt/EBITDA	1.4		1.5 1.4

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
	1Q21	1Q20		YoY	2020 2019	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(3) Financing Cash Flow Effect of FX Net Changes in Cash Free Cash Flow	3,200 1,229 (733) (1) (1,858) 1,838 (467) 18 0 (59) (508) (674) 0 (170) (844) (133) 352 1,371	744 1,228 2,178 (834) (1,163) 2,153 (1,684) (7,159) (1,145) (81) (10,070) 13,018 0 (116) 12,902 (93) 4,893 469	-15% NA NA -93% 192%		14,710 17,460 4,948 6,120 7,129 5,798 (9,770) 5,660 2,598 2,234 19,615 37,272 -47% (6,294) (3,755) 5,931 (8,716) (688) (275) (3,455) (2,721) (4,506) (15,466) NA 3,614 254 (10,085) (9,412) (7,540) (2,005) (14,010) (11,163) NA 77 (836) 1,176 9,806 -88% 13,322 33,517 -60%

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

Note3: 2020 mainly from acquisition of minority interest of Chiahui .

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AC(China): Summary of P&L

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RMB$ mn		1Q20 YoY 2020 2019 YoY 1,287 79% 10,824 12,609 -14% 729 111% 6,305 7,290 -14% 559 36% 4,519 5,319 -15% 57 132 170 63 436 447 185 397 429 367 75% 3,819 4,613 -17% 53 136 268 (2) 4 5 312 3,687 4,350 92 936 1,120 220 118% 2,750 3,230 -15% 210 122% 2,669 3,147 -15% 10 82 83 0.13 122% 1.70 2.01 -15% 43.4% 41.7% 42.2% 28.5% 35.3% 36.6% 16.3% 25.4% 25.6% 45.6% 43.7% 45.4% 587 48% 4,729 5,724 -17%
	1Q21	1Q20
Operating revenue Operating cost Gross Profit Other net income/(loss) Selling&marketing costs Administative expenses Operating income Finance costs Shares of results of jointly controlled entities Pre tax Income Tax Net Income	2,298	1,287 729 559 57 63 185 367 53 (2) 312 92 220
	1,536
	762
	48
	101
	66
	643
	10
	(0)
	633
	152
	481
Profit Attributable to Owners of Parent Minority interests EPS (RMB$/share)	467	210 10 0.13
	13
	0.30
Gross margin	33.2%	43.4%
Operating margin	28.0%	28.5%
Net margin	20.3%	16.3%
EBITDA margin	37.7%	45.6%
EBITDA	866	587

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
	1Q21		2020		2019
	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)	10,855 50% 685 3% 4,750 22% 5,353 25% 10,848 50% 7,448 34% 21,703 100% 2,351 11% 977 5% 1,005 5% 2,340 11% 2,152 10% 4,691 22% 17,012 78% 16,616 77% 10.6		10,674 49% 12,620 53% 608 3% 674 3% 4,786 22% 3,963 17% 5,276 24% 7,943 33% 10,960 51% 11,366 47% 7,587 35% 8,077 34% 21,634 100% 23,986 100% 2,820 13% 7,695 32% 873 4% 4,770 20% 1,204 6% 2,174 9% 2,283 11% 1,647 7% 2,099 10% 1,444 6% 5,103 24% 9,343 39% 16,531 76% 14,643 61% 16,149 75% 14,264 59% 10.3 9.1
ROE	18.8%		17.5% 23.9%
ROA	12.3%		11.7% 14.1%
Net Gearing Ratio	-13.4%		-14.3% -12.1%
Net Debt	(2,224)		(2,303) (1,728)

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

38

AC(China): Summary of Cash Flow Statement

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RMB$ mn		1Q20 YoY 210 447 -78% (20) NA 2,213 -93% 2,640 -97%	2020 2019 YoY 2,669 3,147 906 1,106 1,386 240 57 390 5,017 4,883 -97% (470) (239) (3,279) (472) (3,750) (712) NA (3,242) (416) (783) (971) (224) (346) (4,249) (1,733) NA (2,982) 2,439 NA	YoY
	1Q21	1Q20
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	467 98 (167) 147 77	210 447 (20) 2,213 2,640

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Shanshui: Summary of P&L

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RMB$ mn				YoY 2020 2019 70% 20,891 21,479 72% 13,927 14,207 65% 6,965 7,272 416 337 681 673 2,040 2,243 NA 4,659 4,693 347 510 22 43 4,334 4,226 1,059 1,198 NA 3,274 3,028 NA 3,187 2,973 87 55 0.73 0.68 33.3% 33.9% 22.3% 21.8% 15.3% 14.1%	YoY
	1Q21	1Q20
					-3% -2% -4% -1% 8% 7%
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	3,120 2,395 725 45 138 783 (151) 66 2 (214) 89 (303)	1,833 1,394 439 48 81 733 (327) 84 2 (408) 46 (454)
Profit Attributable to Owners of Parent Minority interests EPS (RMB/share)	(251) (52) (0.06)	(383) (71) (0.09)
Gross margin Operating margin	23.2% -4.8%	24.0% -17.8%
Net margin	-8.0%	-20.9%

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Shanshui: Summary of Balance Sheets

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RMB$ mn
	1Q21		2020		2019
	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)	7,423 27% 20,103 73% 27,527 100% 9,884 36% 2,016 7% 11,899 43% 15,628 57%		7,178 26% 6,217 23% 2,288 8% 1,995 7% 2,319 8% 1,937 7% 1,401 5% 1,364 5% 20,499 74% 20,611 77% 18,022 65% 18,331 68% 27,677 100% 26,828 100% 9,839 36% 11,182 42% 2,197 8% 3,911 15% 3,605 13% 3,742 14% 1,956 7% 3,046 11% 1,233 4% 2,249 8% 11,795 43% 14,227 53% 15,882 57% 12,600 47% 15,703 57% 12,497 47% 3.6 2.9
ROE			22.6% 27.0%
ROA			11.7% 11.2%
Net Gearing Ratio			11.2% 36.5%
Net Debt			1,764 4,567

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		2019 YoY 2,973 1,533 (181) (158) 4,167 -16% (1,348) (173) (1,521) NA (2,563) (37) (2,600) NA 14 46 7% 2,819	YoY
	2020	2019
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	3,187 1,507 (897) (290) 3,507 (1,521) 195 (1,325) (2,097) (36) (2,133) (12) 49 1,986	2,973 1,533 (181) (158) 4,167 (1,348) (173) (1,521) (2,563) (37) (2,600) 14 46 2,819

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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(%)
76.5%
24/7 vibration monitoring 74.2%
73.6%
Detention basins building
No landslide caused by
2017 2018 2019
mining in 40 years operation
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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 (%)
8.94%
8.67%
8.52%
2017 2018 2019
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Certification

• ISO14067 product carbon footprint

• ISO14046 product water footprint

• BS8001 Circular economy highest standard level

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Source: Asia Cement CSR report

Emission Control and Energy Saving: ACC (Taiwan)

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ACC(Taiwan)	ACC(Taiwan)	ACC(Taiwan)
Emission (ton/yr)	National Standard	2019
SO2	715	541
NOx	5,813	4,894
Particles	1,528	1,386
Energy Consumption	The Previous Year	2019
Total consumption(MWh)	3,714,425	3,836,881
Consumption per unit (MWh/ton)	1.43	1.38

Green Power Purchasing

Complying with the green energy policy, a total of 67 certificates of renewable energy were purchased in 2019.

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

Local Hiring Communication Construction Education
Provide job Open to inspections Assist community Support aboriginal
opportunities to eliminate doubts construction education
Hualien
Aboriginals
plant
Employee 44%
Asia
Cement Local hiring
(China)
Employee 71%
Plant visit in Hualien Free house repairing After-school tutoring
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Source: Asia Cement & Asia Cement (China) CSR report

Sustainable Workforce

Occupational Health

• Safety & heath management

Hualien plant Carry out converted to conversion OHSAS 18001 ISO 45001 in other CNS 15006 CNS 45001 subsidiaries

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Gender Equality Workplace

Year Resumption Equal pay for rate after equal work parental leave 2017 100% 2018 100% 2019 100%

2018 2019 2020

• Lower than average injury rate Location FR SR FSI Asia Cement(TW) 0 0 0 Asia Cement(CN) 3.03 72 0.47 2017~2019 2.78 1039 1.70 Cement industry

FR：actual disable injuries per million hours worked SR：total work days lost cause by injury per million hours worked FSI=√【(FR×SR)÷1000】

Supply Chain Management

Ethic Human Guideline Right Health & Environment Safety

A total of 507 suppliers had signed “Social 。 Responsibility Commitment letter” in 2019

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

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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	2019 Results	2030 Goal
Environmental Protection	Effective use of resource	Quantity of water re-used	85% of water re-used in Hualian plant	>85% of water re-used in Hualien plant
Climate Strategy	Reduction of emission	SBTi	SBTi evaluation	Reduced 8% by 2025*
		ton of CO2/ ton of cement
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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