ACC — Investor Presentation 2021

Mar 25, 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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Nov 2020

Disclaimer

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This presentation contains forward-looking statements. These forward-looking statements are subject to risks, uncertainties and assumptions, some of which are beyond our control. Actual results may differ materially from those expressed or implied by these forward-looking statements. Because of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this presentation might not occur in the way we expect, or at all. You should not place undue reliance on any forward-looking information.

In preparing the information herein, ACC have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was provided to ACC or which was otherwise reviewed by ACC. Neither ACC nor its advisors have made any representation or warranty as to the accuracy or completeness of such information and nor do they assume any undertaking to supplement such information as further information becomes available or in light of changing circumstances. None of ACC, nor any of their respective affiliates, advisers or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation. Neither this presentation nor any of its contents may be reproduced to a third party without the prior written consent of ACC.

2

Table of Contents

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• ⚫ Company Snapshot

• ⚫ Financial Highlights

• ⚫ Asia Cement (China) Operating Data

• ⚫ Shanshui Cement Operating Data

• ⚫ PRC Industry Overview

• ⚫ Taiwan Industry Overview

• ⚫ Financials

• ⚫ CSR Achievements

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Company Snapshot

4

Company Snapshot

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Market Cap: US$ 5.1 bn / NT$ 147 bn (as of 13 Nov 2020)

Consolidated Entities

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Asia Cement
(1102 TT)
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•
Established in 1957
ACC •
2 [nd] largest cement producer
Taiwan
•
Cement capacity: 5.0 mtpa.
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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 (6% of revenue)

Equity Investments

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

ACC(Taiwan) & Other Business

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1. Cement: 2nd Largest Cement Player in Taiwan.

2. IPP: Expanding phase II project with 500MW, COD on 1Q21.

3. Stainless Steel: Producing 300 and 400 series products, export oriented.

Cement market share in TW

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TCC (As of 2019)
Import
30%
20%
ACC
Others
27% 23%
Capacity in TW
Hsinchu
plant
Nanhwa Hualian plant
grinding
station
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IPP Phase II project in TW

Phase I：670MW Phase II：500MW

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Phase I：670MW
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2018 1Q21
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AC(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 42% No. 1

Wuhan

Jiujiang and Nanchang

market share 36% and 25% No. 1 and No.2

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2019 Cement Capacity
33mtpa
Sichuan
11 mt Jiangxi
33% 14 mt
43%
Hubei
8 mt
24%
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market share

23% No. 1

7

Shanshui Cement Overview

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

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

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2019 Cement Capacity
102mtpa
Xinjiang
4 mt
4%
Northeast
China
27 mt
27%
Shandong
55 mt
Shanxi 54%
16 mt
15%
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Note: Northeast China region includes Liaoning province and Inner Mongolia. Source: China Shanshui Cement Group Ltd. 2019 financial report and 2019 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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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))

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Financial Highlights

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

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NT$ mn NT$ mn
120,000 Net Debt Net Gearing Ratio 60% CAPEX Operating Cash Flow
48% 37,272
90,000 39% 45%
60,763 29%
27%
60,000 54,341 30%
41,026
39,538
13,291
10,711
30,000 15% 8,139
4,275 3,755 4,297
1,157
0 0%
2017 2018 2019 3Q20 2017 2018 2019 9M20
NT$/share, % NT$/share
8
50 16%
Book Value ROE
6
45 12.3% 12%
43.5 42.4
10.0% 4
41.0
8.4%
40 8%
37.9 2
35 4.4% 4% 0
2017 2018 2019 9M20
EPS 1.63 3.31 5.19 3.08
DPS 1.20 2.80 3.00
30 0%
2017 2018 2019 3Q20 12
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Note: EPS is calculated using total outstanding shares.

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

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R$ mn R$ mn CAPEX Operating Cash Flow
Net Debt Net Gearing Ratio
7,500 50%
40.0%
6,000 40% 4,883
4,500 3,963 30%
3,000 13.4% 20%
2,908
1,621
1,500 10%
(1,728) (3,268)
0 0%
1,520
-1,500 -10% 1,169
-12.1%
-3,000 -20% 135 154 228 143
-21.6%
-4,500 -30%
2017 2018 2019 3Q20 2017 2018 2019 1H20
R$/share
R$/share, %
3.0
18 Book Value ROE 30%
2.5
23.9%
15 25%
22.0%
2.0
12 17.8% 20%
1.5
9.1
9.6
9 7.7 15% 1.0
6.3
0.5
6 10%
0.0
6.3% 2017 2018 2019 9M20
3 5%
EPS 0.38 1.55 2.01 1.04
DPS 0.16 0.62 0.50
0 0%
2017 2018 2019 3Q20
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Asia Cement (China) Operating Data

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

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Unit: R$/t ; %

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Jiangxi (Nanchang)
%
R$/t
Inventory Level Market Price
600 90
550
80
500
70
450
400 60
350
50
300
40
250
200 30
Jan-19 Apr-19 Jul-19 Sep-19 Dec-19 Apr-20 Jun-20 Sep-20
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Hubei (Wuhan)
R$/t %
Inventory Level Market Price
600 90
550
80
500
70
450
400 60
350
50
300
40
250
200 30
Jan-19 Apr-19 Jul-19 Sep-19 Dec-19 Apr-20 Jun-20 Sep-20
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Sichuan (Chengdu)

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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
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Jiangsu (Nanjing)

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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
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Source: Digit Cement. Inventory level is based on the average of province.

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AC(China): 3Q20 Operating Data

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R$/t ASP
RMC:R$/mm [3]
3Q19 3Q20
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483
463
366
327 329
273
64 58
Cement Clinker RMC Aggregate
Note: Net of VAT
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mt Shipment
RMC:mm [3]
3Q19 3Q20
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7.4 7.4
1.0 1.0 1.3
0.5 0.4 0.3
Cement Clinker RMC Aggregate
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Gross Margin

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3Q19 3Q20
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76%
71%
44%
41% 40% 41%
19%
15%
Cement Clinker RMC
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Aggregate

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AC(China): 3Q20 Operating Data

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Cement Product by Regions

ASP

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R$/t
3Q19 3Q20
413
378
340 316 345 324 342 331
Jiangxi Hubei Sichuan Jiangsu
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Shipment

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mt
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3Q19 3Q20

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2.8 2.8
2.1 2.2
1.7 1.7
0.8 0.8
Jiangxi Hubei Sichuan Jiangsu
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Product Type

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AC(China): 9M20 Operating Data

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R$/t
ASP
RMC:R$/mm [3]
9M19 9M20
487
466
372
343
315
282
64 61
Cement Clinker RMC Aggregate
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Note: Net of VAT
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mt
RMC:mm [3] Shipment
9M19 9M20
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21.0
17.8
3.0 3.2
1.6 1.8 1.2 0.9
Cement Clinker RMC Aggregate
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Gross Margin

9M19 9M20

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77%
75%
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44% 42% 43%
39%
15% 16%
Cement Clinker RMC
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Aggregate

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AC(China): 9M20 Operating Data

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Cement Product by Regions

ASP

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R$/t
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Shipment

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mt
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9M19 9M20
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9M19 9M20

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409
381
346 337 356 346 346 351
Jiangxi Hubei Sichuan Jiangsu
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7.7
6.7 6.6
5.8
4.6
3.5
2.1 1.9
Jiangxi Hubei Sichuan Jiangsu
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Product Type

20

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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
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
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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
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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
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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
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Source: Digit Cement. Inventory level is based on the average of province.

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Shanshui: 1H20 Operating Data

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R$/t

RMC:R$/mm[3]

ASP

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1H19 1H20
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mt
RMC:mm [3 ] Shipment
1H19 1H20
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496 20.4 20.6
470
369
338
275
257
3.6 3.7
1.5 1.3
Cement Clinker RMC Cement Clinker RMC
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Note: Net of sales tax and surcharge.

Cost Breakdown

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Others 11% Others 10%
D&A 8% D&A 7%
Power 9% Power 10%
Coal 23% Coal 22%
Materials Materials
49% 51%
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Others 11% Others 10%
D&A 8% D&A 7%
Power 9% Power 10%
Coal 23% Coal 22%
Materials Materials
49% 51%
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1H19

1H20

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

Shanshui: 1H20 Operating Data

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Cement Product by Regions

Shipment

ASP

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R$/t mt
1H19 1H20 1H19 1H20
449 469 12.7
421 11.7
389
283
268 265 257
5.8
4.6
2.3 2.5
0.8 0.6
Shandong Shanxi Northeast Xinjinag Shandong Shanxi Northeast Xinjinag
Note: Net of sales tax and surcharge.
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Product Type

Source: China Shanshui Cement Group Ltd. 2020 interim report

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24

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PRC Industry Overview

27

China Cement Demand Outlook

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Infrastructure :

• RMB$3.75 tn local government special bond for 2020 (RMB$2.15 tn for 2019) and RMB$1 tn special central government bond all indicate sufficient funding for infrastructure investment growth in 2H20 and 2021.

: Property

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

• Construction activities are expected to continue to accelerate in 2H20.

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

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3,000
2,476
2,414 2,403
2,500 2,348 2,316 2,330
2,184 2,177
2,063 YoY-1.1%
Cement Demand
1,868
2,000
1,629 2016-2020: 1,676
1,388 2012-2015:
1,500 “New Normal Economy”
2009-2011:
Demand slowed urges Supply-Side
1,000 Demand boosted by down and oversupply Reform and industry
R$4 trillion stimulus weakened ASP evolution.
500
0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 9M20
Source: ccement, National Bureau of Statistics
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28

China Cement Industry Policy Trend

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Control capacity expansion

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1. Prohibit using outdated pipelines for capacity swap.

2. Tightening regulation for crossprovincial capacity swap.

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Phase out capacities by lifting industry standards

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1. Raise UT rate from 70% to 80%.

2. Eliminate PC 32.5R grade of cement.

3. Promote intelligent manufacturing.

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Blue sky protection campaign carries on

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1. Production halt has continued to contribute to supply discipline since 2016.

2. Stricter regulations developing into ultra low emission and differentiation.

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Encourage consolidation

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

2. Subsidizing the exiting capacity with decapacity funds.

Source: China Cement Association “De-capacity action plan”, ”Cement industry 13[th] five year plan”, PRC State Council “Guiding policies to facilitate structural upgrade of building materials industry”

29

Jiangxi: Guaranteed Mid-long Term Demand

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Beijing
Nanchang-Jiujiang to be 1. 2020 annual investment plan reached
an important section of
RMB$239 bn, YoY+16.5%.
the national project
Jiujiang
Beijing-HK HSR 2. Major projects:
construction started in 2020
Estimated
Nanchang
Projects Construction
Period
Jian Nanchang-Jiujiang High-speed
2020~2023
Ganzhou Railway
Anqing-Jiujiang High-speed Railway 2018~2022
Nanchang-Huangshan High-speed
2019~2023
Railway
Shenzhen Expansion of Nanchang City Ring
2020~TBD
Expressway
Hong Kong
Nanchang-Huangshan
High-speed Railway
Huangshan
Jingdezhen
Jiujiang
Nanchang
Nanchang
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30
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Source: Jiangxi Provincial Development and Reform Commission, Sina news, people.cn

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

31

Hubei: Post-pandemic Surge of Infrastructure Projects

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Two Great Bridges to Be Constructed in Wuhan

infrastructure after Covid-19

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

32

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Taiwan Industry Overview

33

Taiwan Cement Market

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Demand getting warm since 2018

ASP remain steady

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mt
NT$/t
20 Cement Consumption 7% 8% 2,600 91.58% Anti-dumping tariff
imposed on cement products from China
YoY(%)
2011/5/30~2022/2/19
4% 2,500
15
2,400
12.5
11.7 11.4 0% 2,400
10.7
10.3 10.2
2,275
10 8.8 -4% 2,300
-8% 2,200
5
-12% 2,100
2,100
0 -16% 2,000
2014 2015 2016 2017 2018 2019 9M20 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 9M20
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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

34

ACC(Taiwan) Outlook: Improving sales and margins

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Domestic market shares

1. Local sales improved in 2020.

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

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40%
30% 27% 27%
26% 24% 24%
23% 23%
20%
10%
0%
2014 2015 2016 2017 2018 2019 9M20
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mt Cement and Clinker Sales
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Local sales
YoY +0.9% Export sales
2.6 2.6
YoY +9.7%
2.1
1.9
1.3
1.3
0.9
0.8
2018 2019 9M19 9M20
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ACC(Taiwan) Gross Margin

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14%
11.8%
12%
10%
8%
6%
4%
2%
0%
2014 2015 2016 2017 2018 2019 9M20
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Financials

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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

37

Summary of P&L

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NT$ mn

	3Q20	3Q19	YoY	9M20 9M19 YoY
Operating Revenue Operating Cost Net Gross Profit SG&A expenses Operating profit	20,736 14,333 6,403 758 5,645	22,401 16,031 6,370 1,038 5,332	-7% 54,564 66,207 -18% -11% 38,786 47,102 -18% 1% 15,778 19,105 -17% -27% 2,701 2,905 -7% 6% 13,077 16,200 -19% 27% 3,785 5,323 -29% -19% 3,590 4,361 -18% -9% 1,000 1,318 -24% -14% 180 388 -54% -19% 1,573 1,835 -14% -44% 837 819 2% (74) (604) 332 448 (114) 73 (252) 759 230 145 73 142 16,862 21,524 12% 12,988 16,937 -23% 14% 10,341 13,459 -23% 14% 3.08 4.00 -23% 28.9% 28.9% 24.0% 24.5% 19.0% 20.3%
Non-operating income(net) Equity Income	1,933 1,599	1,525 1,980
Far Eastern New Century Corp. U-Ming Marine Transport Corp. Shanshui Cement Co. Ltd. Others	425 292 719 163	469 338 885 288
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	13	(145)
	32	27
	(6) 171	(20) (405)
	100	64
	25	24
	7,578	6,857
	6,154	5,502
Profit Attributable to Owners of Parent EPS (NT$/share)	4,930 1.47	4,340 1.29
Gross margin	30.9%	28.4%
Operating margin	27.2%	23.8%
Net margin	23.8%	19.4%

Note: EPS is calculated using total outstanding shares.

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Performance by Segments

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NT$ mn Note: Cement revenue= Taiwan cement operation(cement, RMC and other downstream value chain) + China cement operation	NT$ mn Note: Cement revenue= Taiwan cement operation(cement, RMC and other downstream value chain) + China cement operation	NT$ mn Note: Cement revenue= Taiwan cement operation(cement, RMC and other downstream value chain) + China cement operation	NT$ mn Note: Cement revenue= Taiwan cement operation(cement, RMC and other downstream value chain) + China cement operation	NT$ mn Note: Cement revenue= Taiwan cement operation(cement, RMC and other downstream value chain) + China cement operation	NT$ mn Note: Cement revenue= Taiwan cement operation(cement, RMC and other downstream value chain) + China cement operation	NT$ mn Note: Cement revenue= Taiwan cement operation(cement, RMC and other downstream value chain) + China cement operation
	3Q20	3Q19		YoY	9M20 9M19	YoY
Operating Revenue Cement business Power business Stainless Steel business Others Operating Cost Net Gross Profit SG&A expenses Operating profit	20,736 17,168 1,744 860 964 14,333 6,403 758 5,645	22,401 18,072 2,215 1,213 901 16,031 6,370 1,038 5,332	-7% 54,564 66,207 -18% -5% 44,588 53,990 -17% -21% 4,629 5,694 -19% -29% 2,878 4,211 -32% 7% 2,469 2,313 7% -11% 38,786 47,102 -18% 1% 15,778 19,105 -17% -27% 2,701 2,905 -7% 6% 13,077 16,200 -19% 1% 10,789 14,455 -25% 24% 1,383 1,145 21% -98% (28) 59 NA 62% 933 541 72%
Cement business Power business Stainless Steel business Others	4,558 659 0 427	4,523 533 12 263

Revenue (9M20)

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Summary of Balance Sheets

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NT$ mn
	3Q20		2Q20		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)	93,074 31% 37,610 12% 29,871 10% 25,593 8% 208,997 69% 93,688 31% 87,864 29% 7,209 2% 20,235 7% 302,070 100% 71,967 24% 58,409 19% 13,558 4% 63,411 21% 29,400 10% 20,698 7% 13,313 4% 135,378 45% 166,692 55% 42.4		92,590 31% 89,242 30% 20,375 7% 24,735 8% 43,251 15% 31,724 11% 28,964 10% 32,783 11% 203,678 69% 208,036 70% 92,136 31% 96,140 32% 87,130 29% 86,858 29% 6,713 2% 7,000 2% 17,699 6% 18,038 6% 296,268 100% 297,279 100% 75,561 26% 74,336 25% 52,365 18% 55,895 19% 23,196 8% 18,440 6% 61,188 21% 53,494 18% 32,525 11% 19,281 6% 15,387 5% 20,821 7% 13,276 4% 13,392 5% 136,749 46% 127,829 43% 159,519 54% 169,449 57% 40.7 43.5
ROE	10.0%		9.9% 12.3%
Net Gearing Ratio	28.8%		26.8% 27.1%
Net Debt	41,026		36,651 39,538
Net Debt/EBITDA	1.6		1.5 1.4

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

40

Summary of Cash Flow Statement

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NT$ mn
	3Q20	3Q19	YoY	9M20 9M19 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	4,930 1,256 425 (4,427) 3,487 5,671 (1,150) 17,479 (359) (2,198) 13,773 8,450 (10,085) (402) (2,036) (173) 17,234 4,521	4,340 1,210 (470) 4,383 4,204 13,666 (340) (1,310) 0 (33) (1,683) 836 (9,412) (317) (8,893) (419) 2,671 13,326	-59% NA NA 545% -66%	10,341 13,459 3,685 3,682 3,609 4,695 (5,261) 5,699 917 962 13,291 28,496 -53% (4,297) (2,468) 6,776 (10,756) (1,476) (57) (2,214) (2,293) (1,211) (15,573) NA 13,014 2,463 (10,085) (9,412) (1,508) (1,568) 1,421 (8,517) NA (627) (284) 12,874 4,122 212% 8,994 26,029 -65%

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

41

AC(China): Summary of P&L

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RMB$ mn
	3Q20	3Q19	YoY 9M20 9M19 YoY
Operating revenue Operating cost Gross Profit Other net income/(loss) Selling&marketing costs Administative expenses Operating income Finance costs Shares of results of jointly controlled entities Pre tax Income Tax Net Income	2,953 1,772 1,182 40 119 67 1,036 26 0 1,011 240 771	3,139 1,880 1,258 (13) 108 94 1,043 68 2 977 229 748	-6% 7,267 9,182 -21% -6% 4,299 5,281 -19% -6% 2,968 3,902 -24% 113 80 297 330 317 336 -1% 2,467 3,316 -26% 121 211 1 5 2,347 3,110 667 814 3% 1,680 2,297 -27% 3% 1,627 2,240 -27% 53 56 3% 1.04 1.43 -27% 40.8% 42.5% 33.9% 36.1% 22.4% 25.0% 43.4% 44.2% -8% 3,152 4,058 -22%
Profit Attributable to Owners of Parent Minority interests EPS (RMB$/share)	749 22 0.48	730 18 0.47
Gross margin	40.0%	40.1%
Operating margin	35.1%	33.2%
Net margin	25.4%	23.8%
EBITDA margin	42.8%	43.6%
EBITDA	1,264	1,369

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
	3Q20		2Q20		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)	12,728 53% 718 3% 2,453 10% 9,534 40% 11,073 47% 7,691 32% 23,801 100% 5,303 22% 3,437 14% 1,208 5% 3,037 13% 2,829 12% 8,340 35% 15,461 65% 15,108 63% 9.6		12,274 52% 12,620 53% 726 3% 674 3% 2,367 10% 3,963 17% 9,157 39% 7,943 33% 11,112 48% 11,366 47% 7,803 33% 8,077 34% 23,387 100% 23,986 100% 6,199 27% 7,695 32% 4,592 20% 4,770 20% 1,246 5% 2,174 9% 2,497 11% 1,647 7% 2,295 10% 1,444 6% 8,696 37% 9,343 39% 14,690 63% 14,643 61% 14,359 61% 14,264 59% 9.2 9.1
ROE	17.8%		18.6% 23.9%
ROA	10.9%		11.1% 14.1%
Net Gearing Ratio	-21.6%		-15.8% -12.1%
Net Debt	(3,268)		(2,270) (1,728)

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	3Q20 3Q19 YoY 1,159 1,028 13% (135) (34) NA (647) (297) NA 377 697 -46%	3Q20 3Q19 YoY 1,159 1,028 13% (135) (34) NA (647) (297) NA 377 697 -46%	9M20 9M19 YoY 2,679 3,336 -20% (156) (242) NA (932) (527) NA 1,591 2,567 -38%
	3Q20	3Q19 1,028 (34) (297) 697
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	1,159 (135) (647) 377

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Shanshui: Summary of P&L

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RMB$ mn
	3Q20	3Q19
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	6,565 4,511 2,054 92 210 393 1,543 143 18 1,418 326 1,092	6,611 4,414 2,197 199 200 364 1,832 114 18 1,735 372 1,364
Profit Attributable to Owners of Parent Minority interests EPS (RMB/share)	1,035 57 0.24	1,304 61
Gross margin	31.3%	33.2%
Operating margin	23.5%	27.7%
Net margin	15.8%	20.6%

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Shanshui: Summary of Balance Sheets

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RMB$ mn
	3Q20		2Q20		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)	8,428 30% 20,113 70% 28,541 100% 10,749 38% 2,679 9% 13,428 47% 15,113 53%		7,421 27% 6,217 23% 2,226 8% 1,995 7% 2,427 9% 1,937 7% 1,754 6% 1,364 5% 20,364 73% 20,611 77% 17,982 65% 18,331 68% 27,784 100% 26,828 100% 11,105 40% 11,182 42% 3,372 12% 3,911 15% 4,011 14% 3,742 14% 2,770 10% 3,046 11% 2,021 7% 2,249 8% 13,876 50% 14,227 53% 13,909 50% 12,600 47% 13,778 50% 12,497 47% 3.2 2.9
ROE			25.1% 27.0%
ROA			11.3% 11.2%
Net Gearing Ratio			24.2% 36.5%
Net Debt			3,329 4,567

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

46

Shanshui: Summary of Cash Flow Statement

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RMB$ mn
1H20 1H19 YoY		2019 2018 YoY
Net Income 1,297 1,196 Depr&Amort 737 721 Changes of non-cash WC (465) (401) Other Ope. CF Items 33 126 Operating Cash Flow 1,602 1,642 -2% CAPEX (505) (682) Other Inv. CF Items 50 (76) Investing Cash Flow (456) (758) NA Changes in Debt/Borrowings (751) (819) Issuance of Common Stock 0 0 Dividends Paid 0 0 Other Fin. CF Items(1) 9 (11) Financing Cash Flow (742) (830) NA Effect of FX (14) (2) Net Changes in Cash 404 54 647% Free Cash Flow 1,097 960	2,973 2,197 1,533 1,395 (181) (1,645) (158) 234 4,167 2,180 91% (1,105) (713) (461) (136) (1,567) (849) NA (2,563) (1,639) 0 339 0 0 9 952 (2,554) (349) NA 14 13 46 983 -95% 3,061 1,467

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CSR Achievements

48

ACC: Sustainable Mining Mountain

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Mining Monitoring

• 24/7 vibration monitoring to make explosion feelingless.

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Green Manufacturing

• Realizing waste reduction and energy reuse in production.

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Safe Mining Technique

• Inward stepping down method to lower the impact to the landscape.

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Flood Detention

• No landslide caused by the mining for 40 years.

49

Source: ACC CSR report

ACC: Local Care and Interactions

Providing job opportunities to local aboriginal people

Type	Total	Local Employees	Local Employees	Aboriginal People	Aboriginal People
		Number	%	Number	%
Employee	306	293	96%	86	28%
Subcontractor	898	268	30%	446	50%
Total	1,204	561	47%	532	44%

Satisfying the needs of the community by applying the engineering expertise

Offering house repairing service, installing water tank and mountain spring water pipes, and electricity bill subsidy free of charge Source: ACC CSR report

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Communicating with outside and eliminating the doubts A global model mining mountain

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Periodically inviting local people to visit the limestone quarry and reporting water/soil preservation work, greening with vegetation, mining site safety Highly recognized by scholars from Japan, Australia, etc Supporting the education for aboriginal youth

Aboriginal students’ after-school learning

50

ACC: ESG Awards

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Taiwan & Global Corporate Sustainability Award: 2019 TCSA Top 50 2019 GCSA Great Practice

6 years listed in

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

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2019 Included as a member of the FTSE4Good TIP Taiwan Index by FTSE Russel

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TWSE Corporate Governance Evaluation: Top 6%~20%

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Asia Responsible Entrepreneurship Awards: 2019 Winner of Green Leadership

Carbon Disclosure Project:

2019 B List Ministry of Economics Affairs:

6 times award winner of Excellent Company in GHG Voluntary Reduction

Source: ACC CSR report

51

AC(China): Sustainable Green Cycling

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Strive to improve energy
•
4 mines listed as 2019 National
efficiency
Green Mine mcal / t 水泥耗能Energy consumption of cement
661.5
• Jiangxi Yadong awarded the 2 [nd] 662 658.8
658 654.3
prize of Green Mine Techniques
654
by Zhongguancun Green Mine 650
2017 2018 2019
Industry Alliance
Low-carbon
Sustainable
Mines Green Intelligent
Manufacturing
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Circular Social Economy Care

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Performance of Waste Disposal
廢棄物處置量
Amount of waste disposed
t
19,616
20,000
10,000 5,268
1,200
0
2017 2018 2019
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Assisting in community
infrastructure
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Source: AC(China) CSR report

52

AC(China): Lower Emissions and Energy Consumption

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Emissions
mg/m [3]
ACC Jiangxi ACC Hubei ACC Sichuan superior to ultra-low standard
267
198
85
63
25
6 9 8 5
SOSO22 NOXNOx Dust ParticlesDust Particles
Note: Averaged by capacity
Energy Consumption
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National standard

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120
110
110.3
100
103.3
90 93.7
80
78.6
70
60
50 57.1
40
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Coal consumption of Power consumption of Energy consumption of Power consumption of Energy consumption of clinker (kgce/t) clinker (kWh/t) clinker (kgce/t) cement (kWh/t) cement (kgce/t) Source: AC(China) CSR report

53

Capacity in Jiangxi, China

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Capacity in Hualien, Taiwan Capacity in Jiangxi, China

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55

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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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