CHC — Interim / Quarterly Report 2020

May 28, 2020

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Disclaimer

The forward-looking statements contained in this presentation are subject to risks and uncertainties and actual results may differ materially from those expressed or implied in these forward-looking statements.

Chia Hsin Cement Corporation makes no representation or warranty as to the accuracy or completeness of these forward-looking statements and nor does Chia Hsin Cement Corporation undertake any obligation to update any forward-looking statements, whether as a result of new information or future events.

Enterprise Value�

Employee Care� Brand Social People�[Humanities ] and Arts� Feedback� Extension�

Local Participation�

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Our Core Asset �

Employee Care�

l Annual staff outing and year end party in Okinawa.�

l Provide internal training courses and external training subsidies to encourage employees to continue learning�

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People�

l Encourage employees to exercise and was awarded the “Taiwan iSport”Certification�

• l Recognize senior employee at the Company’s 65[th] anniversary fair�

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l Provide employee childcare subsidies and committed to creating a more friendly workplace environment �

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– Internal Stability Anti-epidemic Measures

l No layoffs or pay cuts�

l Suspend all foreign travel�

l Measure temperature for employee twice a day�

l Set up a temperature monitoring station at entrance and exit of the building�

l Allow employees to take turns to work from home� l Allow employee to work from home 14 days if the employee visits the hospital twice in the past week�

l Implement staggered worked schedule�

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CHC Group
B to C B to B
CHC Group Hospitality Business Foundation Business
Asset
Cement
Hospitality
Development Chia Hsin Cement
Business and Corp.
Management
Chia Hsin Asset Corp.
YJ Int’l Chia Storage and
Structure JAHO Chia Hsin Construction
Hsin Ryukyo
and Development Co., Lotistics
藍鈞
Tong Yang Chia Hsin
Int’l
Chia Pei Int’l
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Japan� Taiwan� Italy�
18,000 � 250,000 �
16,000 �
200,000 �
14,000 � Total
12,000 �
150,000 �
Coronavirus
10,000 �
8,000 �
Cases�
100,000 �
6,000 �
4,000 �
50,000 �
2,000 �
- � - �
15-Feb� 1-Mar� 16-Mar�31-Mar�
15-Apr� 30-Apr� Source：Worldometer�
Total Coronavirus Cases in Italy�
Total Coronavirus Cases in Taiwan or Japan�
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Hotel Business�

Anti-epidemic Measures �

• Ø Strengthen temperature management and personnel control�

• As of 2/15, staff is required to temperature check by security personnel before entering the premise.�

• During working hours, entire personnel have to wear masks.�

• Ø Strengthen disinfection measures�

• Disinfection sprays are installed at both indoor and outdoor public areas to enhance hands sterilizing frequency.�

• Regular disinfection operations such as hotel door handles and switches are implemented.�

• Ø Staff care�

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• If staff has suspected symptoms, encourage them to report to the

• supervisor. Allow paid leave, and help them to visit medical institutions.�

� Operation Adjustment

l Re-negotiation of all contracts.�

• l Stop using temp employees.�

• l Close down public facilities that are high risk such as:

sauna, swimming pool, etc.�

• l Re-examine the service process and strengthen operating

procedures.�

• l As of 4/9, Buffet has been cancelled and replaced by à la

carte meals.�

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F & B Lunch Guests

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Daily guests� ADD� 居易園�
250�
200�
150�
100�
50�
0�
2月1日� 2月16日� 3月2日� 3月17日�
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Recent Status of A. Roma�

l The EBITDA performance of January-February period showing YOY growth at double digits.�

l In February, led by sample and practiced the epidemic prevention measures.�

l Closing the business to in line with the government policy.�

l Italian government provides corporate relief funds.�

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Zhongshan 1[st] Center� Lively . Convenient�

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Ø Fitness� Ø Restaurant� Ø Ease of transportation� Ø Parking available�

Ø Extreme Privacy�

Ø Trendy design, floor to ceiling windows� Ø “Exhale” SPA Center Flagship Shop� Ø Designate floor for children�

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Close to Medical Center� Professional Team� Impression integration on � Babies development� Traditional Chinese medical support�

Essential Oil Treatment� Professional nursing care� WELL Building Standard�

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Gem Care-Dunhua�

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Anti-epidemic Measures�

• Ø Visitors must register on a named basis, and the number of visitors in each group is limited to three.�

• Ø Each room is limited to one visit per day, and is temporarily closed for visits.�

• Ø All personnel must wear masks, those with temperature over 37.5 degrees are restricted from enter the building.�

• Ø Use the health insurance card to check the travel history of those visitors, accompany guests and related personnel.�

• Ø Those with travel history or have contacted the positively diagnosed personnel are forbidden to enter the building for thirty days.�

• Ø On-site staff to fill out the TOCC (Travel Occupation Contact Cluster) epidemic prevention

• declaration information.�

• Ø Daily cleaning and disinfection of the baby room and counter at three regular intervals.�

• Ø Weekly disinfection for rooms and public areas using UV lamps. �

� Operation Adjustment

Ø360 degrees facilities tour offered online and orders can be placed offline.� ØStrengthen staff education and training.�

What is WELL?�

The WELL Building Standard is the first international certification for measuring and monitor features of the building environment that impact human health and wellbeing.

Why

We want to be the leading brand for Chinese postpartum care. We provide you a great environment and take care of all your postpartum needs.�

How�

In order to allow you to have a great rest in a highquality environment, we take care of every detail, including the building environment, public cleaning, meal design, employee benefits.

WELL Building Standard Certification�

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Air Water Nourishment Light Movement

Paltinum� Thermal Sound� comfort

Materials Mind Community

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•
Cement sales is not affected •
The volume of loading
by the epidemic.� increased in the first
•
Cash dividend income from
quarter compare with last
cement investment
year, not being affected by
expected to be less than
the epidemic.�
last year.�
Cement Sales Storage
and and
investment� Logistics�
Asset
Development
Hospitality and
•
Performance is severely
Business�
Management�
affected by the epidemic.�
•
Prioritize epidemic prevention
and strengthen internal. • Main reason for decrease
lecturing and training�
in revenue is the change
•
Employee care and social in consolidated
responsibility.�
subsidiary.�
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Unit：Millions NTD�

2019 Consolidated Income Statements�

	2019	2018	YoY
Revenue	1,884	2,092	(10%)
Gross Margin (%)	10.5%	13.8%	(3.3ppts)
Operating Margin (%)	(23.1%)	(5.0%)	(18.1ppts)
Net Non-operating Items	1,421	531	168%
Net Income from Discontinued Operations	590	515	15%
EBITDA	1,863	1,281	45%
Net Income	1,409	769	83%
Basic EPS (NTD)	2.02	1.09	85%
Cash Dividend	1.00	1.00	NA

2020 Q1 Consolidated Income Statements�

Unit：Millions NTD	Unit：Millions NTD	Unit：Millions NTD	Unit：Millions NTD	Unit：Millions NTD	Unit：Millions NTD
	Q1/20	Q4/19	QoQ	Q1/19	YoY
Revenue	495	521	(5%)	452	10%
Gross Margin (%)	(3.9%)	7.4%	(11.3ppts)	14.4%	(18.3ppts)
Operating Margin (%)	(32.1%)	(40.1%)	8.0ppts	(12.4%)	(19.7ppts)
Net Non-operating Items	(47)	71	(166%)	227	(121%)
EBITDA	(72)	(63)	(14%)	241	(130%)
Net Income	(214)	(188)	(14%)	149	(244%)
Basic EPS (NTD)	(0.33)	(0.29)	(14%)	0.20	(265%)

Business Units Revenue breakdown Comparison�

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Hospitality
Unit：Millions NTD�
Hospitality
Storage and 3%
2020 2019
Logistics Storage and
YTQ1 YTQ1
Logistics
Cement 236 234
Real Estate 62 74
Cement
Storage and 150 131
Logistics Cement
Hospitality 47 13 Real Estate Real Estate
Total 495 452
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Steady Financial Status�

Note：Cash Assets=Cash and cash equivalents + Principle protected investments + Bank deposits + Restricted deposits�

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Bank Loan� Cash Assets� Debt Ratio�
Unit：Hundred Millions NTD�
60.0%� 120 �
50.0%� 100 �
48.7%�
40.8%�
40.0%� 80 �
38.9%�
32.0%�
30.0%� 60 �
20.0%� 40 �
10.0%� 20 �
0.0%� - �
2015� 2016� 2017� 2018� 2019� 2020/3/30� 2020 Q1 Investors’ Conference
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Employee Care� Enterprise Brand Social Human�[Humanities ] Value� and Arts� Feedback� Extension�

Local Participation�

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Humanities Social People� and Arts� Feedback�

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PX3 ipa tifa mifa

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Humanities
People�
and Arts�
Local
Participation�
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Social
People�
Feedback�
Local
Participation�
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CHC Social Responsibility�

Our social involvement during the Covid-19 epidemic�

• CHC took efforts in raising activities to support this downturned social atmosphere, not only in Taiwan, but also in other parts of the world with sincere hope and blessings for a speedy global recovery.�

• ◎Taiwan: Cooperate with local merchants, sending lunch boxes to support medical staff in Taipei area.�

• Japan: Hotel Collective, team providing lunch boxes to local welfare communities in Okinawa.�

◎ United States: Donated 20,000 masks to local medical institutions in Boston through the Massachusetts Institute of Technology Alumni Association�

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2020 Q1 Investors’ Conference
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THANK� YOU

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2020 China Assets Liquidation

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Unit：Thousands RMB� Company� Categories� Sale Value� Book Value� Gain on dis osals� p Shanghai Land and 105,430� 9,898� Record Jia Huan Buildings� upon Concrete� transaction com letion� p

Status of Land Properties Land/Project Location Land Area (ping) Status Domestic Gangshan Kaohsiung 47,690 Undergoing land preparation aiming to increase rental earnings. Kuojian Road Kaohsiung 4,400 Ongoing urban renewal applications Overseas HOTEL COLLECTIVE Okinawa 1,400 Opening in Spring, 2020 InterContinental Okinawa Chura SUN Resort Okinawa 11,100 Hotel Management Agreement with IHG entered on August 17, 2019 Location Total Land Area (square meter) Total Land Area (ping) Domestic 669,900 202,600 Overseas(Japan) 41,500 12,500		Land/Project	Land/Project	Location	Land Area (ping)	Status
	Domestic	Gangshan		Kaohsiung	47,690	Undergoing land preparation aiming to increase rental earnings.
		Kuojian Road		Kaohsiung	4,400	Ongoing urban renewal applications
	Overseas	HOTEL COLLECTIVE		Okinawa	1,400	Opening in Spring, 2020
		InterContinental Okinawa Chura SUN Resort		Okinawa	11,100	Hotel Management Agreement with IHG entered on August 17, 2019
	Location		Total Land Area (square meter)			Total Land Area (ping)
	Domestic		669,900			202,600
	Overseas(Japan)		41,500			12,500

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