CHC — Investor Presentation 2021

Mar 30, 2021

Chia Hsin Cement Corporation 2020 Q4 Investors’ Presentation

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Disclaimer

The statements contained in this are forward-looking presentation 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.

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2020 Q4 Investors’ Presentation

1

CHC Group Business Structure

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CHC Group
B To C B To B
Foundation Business
Hospitality Business
Asset Development
Cement
Hospitality
and Management Chia Hsin Cement
Corp.
Chia Hsin Asset Corp.
Chia Hsin Construction
YJ Int’l Chia Storage and
JAHO
Logistics
Hsin Ryukyo and Development Co.,
Tong Yang Chia
藍鈞 Hsin Int’l
Chia Pei Int’l
2020 Q4 Investors’ Presentation
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ESG

2020 Consolidated Income Statements

Performance

2020 Consolidated Income Statements Performance ESG	2020 Consolidated Income Statements Performance ESG	2020 Consolidated Income Statements Performance ESG	2020 Consolidated Income Statements Performance ESG	2020 Consolidated Income Statements Performance ESG	2020 Consolidated Income Statements Performance ESG
Unit：Million NTD
	Q4/20	Q3/20	QoQ	Q4/19	YoY
Revenue	577	489	18%	521	11%
Gross Profit	(103) (17.8%)	(18) (3.7%)	(472%) (14.1ppts)	38 7.4%	(371%) (25.2ppts)
Operating Income(Loss)	1,318 228.4%	(178) (36.4%)	840% 264.8ppts	(209) (40.1%)	731% 268.5ppts
Net Non-operating Items	(6)	830	(101%)	71	(108%)
EBITDA	1,454	794	83%	(63)	2408%
Net Profit(Loss) Attributable to Owner of the company	1,239	595	108%	(188)	759%
Basic EPS(NTD)	1.92	0.93	106%	(0.29)	762%

2020 Q4 Investors’ Presentation

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Performance

ESG

2020 Consolidated Income Statements

Unit：Million NTD

	2020	2019	YoY
Revenue	2,058	1,884	9%
Gross Profit	(144) (7.0%)	199 10.5%	(172%) (17.5ppts)
Operating Income(Loss)	823 40.0%	(435) (23.1%)	289% 63.1ppts
Net Non-operating Items	1,283	1,421	(10%)
Net Income from Discontinued Operations	1	590	(100%)
EBITDA	2,675	1,863	44%
Net Profit(Loss) Attributable to Owner of the company	1,764	1,297	36%
Basic EPS(NTD)	2.74	2.02	36%

2020 Q4 Investors’ Presentation

4

ESG

Business Units Revenue Breakdown Comparison

Performance

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Hospitality
Hospitality
Unit: Million NTD
9%
3%
2020 2019
Cement
49%
Cement
Cement 1,009 1,028
Storage
Storage 54%
Real Estate 259 260 and and
Logistics 2020 2019
Logistics
Storage 29%
and 606 546 29%
Lo istics
g
Hospitality 184 50
Real Real
Total 2,058 1,884 Estate Estate
13% 14%
2020 Q4 Investors’ Presentation
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Solid Financial Position

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Performance ESG
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Bank Loan Cash Assets Debt Ratio Unit：Hundred Million NTD
60% 120
49%
50% 100
39%
38%
40% 80
32%
30% 60
20% 40
10% 20
0% -
2015 2016 2017 2018 2019 2020
Note：Cash Assets=Cash and cash equivalents + Principle protected
2020 Q4 Investors’ Presentation
investments + Bank deposits + Restricted deposits
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Note：Cash Assets=Cash and cash equivalents + Principle protected investments + Bank deposits + Restricted deposits

Overview of 2020

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2020 Q4 Investors’ Presentation

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ESG

Covid-19 Cases and Vaccination in Italy

Performance

Daily New Cases Total Cases

Data source ：NCHC、MacroMicro

Vaccination in Italy Doses administered (L) % of people partially vaccinated (R) % of people full vaccinated (R)

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2020 Q4 Investors’ Presentation

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Performance ESG
Covid-19 Cases and Vaccination in Japan
Daily New Cases Total Cases
Covid-19 Cases in Okinawa Vaccination in Japan
160 10000
120 7500
80 5000
40 2500
0 0
1-Apr-20 1-Jul-20 1-Oct-20 1-Jan-21
Daily New Cases Total Cases Doses administered (L) % of people vaccinated (R)
Data source ：NCHC、MacroMicro
2020 Q4 Investors’ Presentation
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Covid-19 Cases in Taiwan Performance ESG
Daily New Cases Total Cases
Covid-19 Cases in Taiwan
30 1500
20 1000
10 500
0 0
1-Jan-20 1-Apr-20 1-Jul-20 1-Oct-20 1-Jan-21
Daily New Cases Total Cases
Data source ：NCHC
2020 Q4 Investors’ Presentation
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2020 Operation Overview

Performance

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ESG
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• Cement trading is not affected by the pandemic.

• Cash dividend income from cement investment less than 2019.

• Sales is severely affected by the pandemic.

• Received a 9 and 9.1 rating on Hotels.com and agoda.

• Improve competitiveness and diversify hotel operation through strategic investment.

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•
Volume of loading increased in
the first three quarters of 2020
Cement Storage and
Sales and compared to last year.
Logistics
Investment
Asset
Development
Hospitality
Business and • Decrease in revenue is mainly due to
Management
changes in consolidation of
subsidiary.
•
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• Disposal of land and building at Lujhu Dist., Taoyuan City, contributing approximately NTD1,400 million in profit in 2020.

2020 Q4 Investors’ Presentation

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Hotel Portfolio

Performance

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ESG
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Hotel Portfolio Performance ESG	Hotel Portfolio Performance ESG	Hotel Portfolio Performance ESG
Investment in LDC ROME HOTELS S.R.L 2015/ 07 Trial operation 2020Q1 Trial operation Hotel Collective in Okinawa 2020Q4 Investment in LDC Hotels & Resorts 2024 Trial operation InterContinental Okinawa Chura SUN Resort (豐崎案) Investee Business model Accounting method LDC ROME HOTELS S.R.L Strategic Investment Equity method investment Hotel Collective New self- operated brand Consolidated Statement LDC Hotels & Resorts Strategic Investment Equity method investment InterContinental Okinawa Chura SUN Resort Entrust IHG Group to operate Consolidated Statement 2020 Q4 Investors’ Presentation
2020Q1 Trial operation Hotel Collective in Okinawa 2020Q4 Investment in LDC Hotels & Re 2024 Trial operation InterContinental Okinawa Chura SUN Resort (豐崎案) Investee Business model Accounting method LDC ROME HOTELS S.R.L Strategic Investment Equity method investment Hotel Collective New self- operated brand Consolidated Statement LDC Hotels & Resorts Strategic Investment Equity method investment InterContinental Okinawa Chura SUN Resort Entrust IHG Group to operate Consolidated Statement 2020 Q4 Investors’ Presentation
Investee	Business model	Accounting method
LDC ROME HOTELS S.R.L	Strategic Investment	Equity method investment
Hotel Collective	New self- operated brand	Consolidated Statement
LDC Hotels & Resorts	Strategic Investment	Equity method investment
InterContinental Okinawa Chura SUN Resort	Entrust IHG Group to operate	Consolidated Statement

12

Looking Ahead

• Outlook for 2021 Taiwan’s economy is promising, cement sales distributions and investment are trending positively.

• Cash dividends declarations are expected to increase.

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ESG
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Performance

• Bulk cargo loading and unloading volume is expected to Cement Storage and remain stable in 2021. Sales and Logistics Investment

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• Once the pandemic stabilizes, we expect Okinawa hospitality sector to gradually rebound.

• We expect to contract out the villa construction for InterContinental Okinawa Chura SUN Resort project in 2021.

Asset Development Hospitality and Business • Management Lease income expected to increase after the reorganization of the old factory land.

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2020 Q4 Investors’ Presentation

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Performance ESG

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品牌
延續
Environment Social
企業
價值
Governance
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2020 Q4 Investors’ Presentation

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Adopt SASB and TCFD, comply with international standards

Performance ESG

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Government Media
Improve information
transparency and
Investor
Employee promote sustainable SASB TCFD
operations
Actively strive to be
Included in ESG Index
Bank consumer
Risk
Management
NPO
Supplier
NGO
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2020 Q4 Investors’ Presentation

15

THANK YOU

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2020 Q4 Investors’ Presentation

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Performance

ESG

What is derived from the society, . contributes back to the society

• Employee care

• Strengthen the hygiene and safety of the workplace in response to COVID-19

• Foremost World Photography Exhibition and promote Okinawa’s “Bingata” Culture

• Culture 企業

• • COVID-19 in Taiwan and Japan, provided caring lunches for frontline medical staff 價值 and vulnerable groups, and sent face masks to the medical institution in the United States.

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Social
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品牌 延續

• Through Chia Hsin Foundation, continue to provide scholarships to outstanding disadvantaged children and students.

• Support new start-ups and foster young entrepreneurs

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2020 Q4 Investors’ Presentation

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Performance

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ESG
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Environment

企業 價值

Value the feedback from our stakeholders, offering personal wellness and hospitality service.

l

l Protect natural habitats and provide a guest journey with in-depth tourism experience. 社會 l Reduce energy consumption through energy-saving design and equipment. Social 品牌 l Prohibit the consumption of protective food ingredients 延續 to maintain ecological balance.

Participate and sponsor related activities to voice out continuous attention on environmental sustainability issues.

l

l Support companies with a circular economy concept through strategic investments for a sustainable future.

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2020 Q4 Investors’ Presentation

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Performance

ESG

Board Functions

• Sustainable Business

• Set up the independent director system, and the Audit Committee, • Established and elected the head of Information Transparency consisting of all 環境 corporate governance in July 2019. 社會 independent directors, •

• • English version of 2020

• prior to statutory Formulated sustainable organization requirement. Environment structure and induction of Risk Social Annual Report and Financial Report will be

• Management mechanism.

• • provided. Set up “Performance Evaluation of the Board of • 2019 Corporate Social

• Directors” in May 2019, Responsibility (CSR) report

• and evaluation was obtained BSI certification.

• compiled in the 1[st] quarter of 2020. • Start to provide the English

• Governance version of the CSR report

• • The Chairman no longer in 2021. serves as CEO after July 2019. 2020 Q4 Investors’ Presentation

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