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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Mar 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.

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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 2Q21.

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

Cement market share in TW

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Import, TCC, (As of 2020)
30%
21%
Others, ACC,
27%
23%
Capacity in TW
Hsinchu
plant
Nanhwa Hualian plant
grinding
station
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IPP Phase II project in TW

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Phase I：670MW
Phase II：500MW
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.

Jiujiang and Nanchang

Chengdu market share market share 29% and 24% 33% No. 1 and No.2 No. 1

Wuhan

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2020 Cement Capacity
33mtpa
Sichuan
11 mt Jiangxi
33% 14 mt
43%
Hubei
8 mt
24%
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market share

18% No. 2

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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.

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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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2020 Financials

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Summaryof P&L (2020) (NT$ mn)	Summaryof P&L (2020) (NT$ mn)
OperatingRevenue	78,241
Net Gross Profit	23,329
OperatingProfit	19,670
Pretax Income	24,144
Net income	18,774
Profit Attribute to Owners of Parent	14,710
EPS(NT$/share)	4.70
EPS(NT$/share, bytotal outstandingshares)	4.38
Summaryof Balance Sheets (2020) (NT$ mn)
Total Assets	297,087
Total Liabilities	127,200
Total Shareholders' Equity	147,769
Dividend Policy(2020)
Cash Dividend(NT$/share)	3.55

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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 13
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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 ; %

Jiangxi (Nanchang)

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%
R$/t Inventory Level Market Price
600 90
550
80
500
70
450
400 60
350
50
300
40
250
200 30
Jan-19 Apr-19 Jul-19 Sep-19 Dec-19 Apr-20 Jun-20 Sep-20 Dec-20 Mar-21
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Hubei (Wuhan)
R$/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 Dec-20 Mar-21
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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 Dec-20 Mar-21
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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 Dec-20 Mar-21
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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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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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Note: Net of VAT
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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$/t ; %
Shandong (Jinan) Shanxi (Taiyuan)
Inventory Level Market Price Inventory Level Market Price
R$/t % R$/t %
600 90 600 90
550 80 550
80
500 70 500
450 60 70
450
400 50
400 60
350 40
350
50
300 30
300
250 20 40
250
200 10
200 30
Jan-19 Apr-19 Jul-19 Sep-19 Dec-19 Apr-20 Jun-20 Sep-20 Dec-20 Mar-21
Jan-19 Apr-19 Jul-19 Sep-19 Dec-19 Apr-20 Jun-20 Sep-20 Dec-20 Mar-21
Inner Mongolia (Hohhot) Liaoning (Shenyang)
R$/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.

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Shanshui: 1H20 Operating Data

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R$/t

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RMC:R$/mm [3]
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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

23

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

25

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

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mt
3,000 YoY+1.6%
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
2016-2020:
1,629
1,500 1,388 2012-2015: “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 2020
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Source: ccement, National Bureau of Statistics

26

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”

27

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

28

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

29

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

30

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Taiwan Industry Overview

31

Taiwan Cement Market

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Demand getting warm since 2018

ASP remain steady

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mt
NT$/t
Cement Consumption
91.58% Anti-dumping tariff
20 YoY(%) 6% 8% 2,600
imposed on cement products from China
2011/5/30~2022/2/19
4% 2,500
15 2,400
12.5 12.1 0% 2,400
11.7 11.4
10.7
10.3 10.2
2,267
10 -4% 2,300
-8% 2,200
5
-12% 2,100
2,100
0 -16% 2,000
2014 2015 2016 2017 2018 2019 2020 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
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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

32

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 2020
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mt
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Cement and Clinker Sales

ACC(Taiwan) Gross Margin

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Local sales
14%
Export sales 11.8%
12%
YoY +7.7%
YoY +0.9% 2.8
2.6 2.6 10%
8%
6%
1.3
1.3
1.2
4%
2%
0%
2014 2015 2016 2017 2018 2019 2020
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2018

2019

2020

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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

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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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Performance by Segments	Performance by Segments	Performance by Segments	Performance by Segments	Performance by Segments	Performance by Segments	Performance by Segments
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)

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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.

39

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.

40

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)

41

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

42

Shanshui: Summary of P&L

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RMB$ mn				YoY 2020 2019 3% 20,891 21,479 2% 13,927 14,207 5% 6,965 7,272 416 337 681 673 2,040 2,243 25% 4,659 4,693 347 510 22 43 4,334 4,226 1,059 1,198 87% 3,274 3,028 81% 3,187 2,973 87 55 0.73 0.68 33.3% 33.9% 22.3% 21.8% 15.3% 14.1%	YoY
	4Q20	4Q19
					-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	5,580 3,691 1,889 28 220 540 1,157 20 (6) 1,132 274 858	5,427 3,634 1,793 22 198 695 922 152 6 777 318 459
Profit Attributable to Owners of Parent Minority interests EPS (RMB/share)	855 3 0.20	473 (14) 0.11
Gross margin Operating margin	33.9% 20.7%	33.0% 17.0%
Net margin	15.3%	8.5%

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Shanshui: Summary of Balance Sheets

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RMB$ mn
	2020		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)	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		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	22.6%		25.1% 27.0%
ROA	11.7%		11.3% 11.2%
Net Gearing Ratio	11.2%		24.2% 36.5%
Net Debt	1,764		3,329 4,567

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

44

Shanshui: Summary of Cash Flow Statement

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RMB$ mn		2019 YoY 2,973 1,533 (181) (158) 4,167 -16% (1,105) (416) (1,521) NA (2,563) 0 0 (37) (2,600) NA 14 46 7% 3,061	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 Issuance of Common Stock Dividends Paid Other Fin. CF Items(1) Financing Cash Flow Effect of FX Net Changes in Cash Free Cash Flow	3,187 3,507 (1,521) (1,325) (2,133) (12) 49 1,986	2,973 1,533 (181) (158) 4,167 (1,105) (416) (1,521) (2,563) 0 0 (37) (2,600) 14 46 3,061

45

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CSR Achievements

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Sustainable Mining Mountain

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Environment Restoration
Cumulated greenary area greenary area(%)
65.1
80%
63.3
64
61.3
75%
59 76.5%
74.2%
73.6%
54 70%
2017 2018 2019
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Mining Safety

• 24/7 vibration monitoring

• Detention basins building

• No landslide caused by mining in 40 years operation

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Certification

Circular Economy

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Recycleable material (mt)
Recycleable material used (%)
1.8 10.0%
1.6 1.4 1.4 9.5%
1.4 1.1 9.0%
1.2
8.5%
0.81 8.67% 8.94% 8.0%
8.52%
0.6 7.5%
2017 2018 2019
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• ISO14067 product carbon footprint

• ISO14046 product water footprint • BS8001 Circular economy highest standard level

47

Source: Asia Cement CSR report

Emission Control and Energy Saving

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	Asia Cement(Taiwan)	Asia Cement(Taiwan)	as of 2019
	Emission (ton)
	SO2		541
	NOx		4,894
	Particles		1,386
	Energy Consumption (TJ)
	Power		1,154
	Coal		12,555
	Gasoline		0.31
	Diesel		25
	Substitute Fuel		75

	Asia Cement(China)	as of 2020
	Emission (mg/m3) Jiangxi Hubei	Sichuan
	SO2 28 31	5
	NOx 269 193	76
	Particles 7 7	3
	Energy Consumption
	Coal Consumption of Clinker(kgce/t)	102.7
	Power Consumption of Clinker(kwh/t)	56.5
	Energy Consumption of Clinker(kgce/t)	109.6
	Power Consumption of Cement(kwh/t)	78.1
	Energy Consumption of Cement(kgce/t)	93.9

Note： superior to ultra-low standard

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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48

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
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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49

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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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

51

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、TCFD	SBTi &TCFD evaluation	SBTi & TCFD implementation
		ton of CO2/ ton of cement	Reduced by 1.77%*	Reduced by 6%*
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*: Linking to National GHG Control Target of 2005 baseline year. Source: ACC CSR report

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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

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Capacity in Jiangxi, China

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Capacity in Hualien, Taiwan Capacity in Jiangxi, China

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Thank you

ir@acc.com.tw http:// www.acc.com.tw

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Q&A: Mining Concerns

ACC Eco-friendly Achievements

Download: ACC Financials

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