UCC — Interim / Quarterly Report 2022

Sep 13, 2022

==> picture [74 x 74] intentionally omitted <==

Universal Cement Corporation Institutional Investor Conference, 1H22

A enda g

==> picture [74 x 74] intentionally omitted <==

 Profile

• Summary on Operation of 1H22

• Prospect on Operation of 2022

Disclaimer：Financial information of 1H22 disclosed in this report has been reviewed by external auditor and published on Aug. 10, 2022.

1

Profile

==> picture [74 x 74] intentionally omitted <==

• Universal Cement Corporation

• HQ address: 10F., No.125, Sec. 2, Nan-king E. Rd., Taipei, Taiwan

• Website ： www.ucctw.com

• Publicly listed on TWSE, Code: 1104

Headquarter

• Paid-in Capital: NTD 6.5 Billion

Haihu gypsum board plant

• Market Value: NTD 14.4 Billion (2022/06/30)

• Number of employee: 400

UNEO Inc.

Universal RMC IndustrialHsinchu Plant

• Milestone:

1960 ｜ Establishment of the Company

Huanchung Cement Int’l Universal RMC IndustrialWurhi Plant

• 1963 ｜ Completion of first integrated cement plant 1971 ｜ Publicly listed on TWSE

• 1988 ｜ Completion of first ready-mix concrete plant 1991 ｜ Completion of first gypsum board plant 2012 ｜ Establishment of UNEO Inc.

Yongkang RMC Plant

Tainan RMC Plant

Kaohsiung Harbor Transport Alien Cement Plant Nanzi RMC Plant

Dahu RMC Plant Luzhu gypsum board plant Hsiaogang RMC Plant Chaozhou RMC Plant

Fengshan RMC Plant

2

Financial Performance

==> picture [74 x 74] intentionally omitted <==

• Revenue: growth of 13% YOY , operating profit ratio of 11%, mainly due to the steady growth of sales of building material.

• Non-operating profit: growth of 108% YOY , mainly due to recognition of earnings of Tainan Concrete Industrial Corporation, as a subsidiary company instead of investment accounted under the equity method.

• Net profit after tax: growth of 60% YOY , and reporting EPS of NT$1.32 .

NT$ in million	1H22	1H21	YOY%
Revenue	3,281	2,905	13%
Gross Profit from Operation	605	522	16%
Operation Profit	354	303	17%
Non-operating Profit	605	291	108%
Net profit before tax	959	594	61%
Net profit after tax	878	548	60%
EPS (in NT$)	1.32	0.81	63%
Assets	26,603	24,478	9%
Liabilities	6,638	5,174	28%
Equity	19,965	19,304	3%

3

Financial Ratio

==> picture [74 x 74] intentionally omitted <==

Financial Ratio
Ratio	1H22	1H21	YOY%
Gross Margin (%)	18%	18%	0%
Operating Margin (%)	11%	10%	1%
Net Profit after Tax (%)	27%	19%	8%
Earnings per Share(NTD$)	1.32	0.81	63%
Net Valueper Share(NTD$)	29.96	29.32	2%
Return on Equity (%)	4%	3%	1%
Return on Asset(%)	3%	2%	1%
Current Ratio(%)	108%	139%	-31%
Debt Ratio(%)	25%	21%	4%

4

Investment income from Liuho Machinery

==> picture [74 x 74] intentionally omitted <==

 Profit has increase in 2022, due to decline in raw material prices and raise of sales on 2022.

Profit Recognized by Quarter (NT$ Million)

==> picture [458 x 182] intentionally omitted <==

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

184
154
143
121
85
11
----- End of picture text -----

5

Sales Performance by Sector

==> picture [74 x 74] intentionally omitted <==

Sales Performance by Sector	Sales Performance by Sector	Sales Performance by Sector	Sales Performance by Sector
Revenue
Sector (NT$ Mil)	1H22	1H21	YOY%
RMC	2,167	1,842	18%
Cement	658	650	1%
Gypsum Board	437	393	11%
Other	19	20	-6%
Total	3,281	2,905	13%
Sales Volume
Sector	1H22	1H21	YOY%
RMC(‘000 M3)	942	863	9%
Cement(‘000 T)	256	301	-15%
Gypsum Board(‘000 M2)	7,696	7,437	3%

6

Cement: Profitable Steadily

==> picture [74 x 74] intentionally omitted <==

 Demand for cement in domestic market grows steadily at 5%.

 Aim at satisfying customer's request and achieving steady profit.

Supply and Demand in Domestic Market (‘000 T)

==> picture [533 x 218] intentionally omitted <==

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

7,296 7,324
7,144
6,883
6,554
6,462
6,249
5,966
5,699
5,289
1H18 1H19 1H20 1H21 1H22
Supply Demand
----- End of picture text -----

7

Ready-mixed Concrete: expand market share

==> picture [74 x 74] intentionally omitted <==

• Despite the impact of pandemic on local market, building permit issued has grown 4% YOY.

• As of June 2022, the total volume to be supplied is 2.61million M[3] .

• In Hsinchu: aim at commercial projects such as AI Smart Park and TSMC 2-nm Plant.

• In Taichung: aim at mega projects, Entertainment and Shopping Center in HSR Station and International Convention Center.

• In Tainan, Kaohsiung, Pingtung: aim at residential projects and major

• infrastructures as Tainan Railway Underground Project, Kaohsiung Metro and TSMC Plants.

Floor areas of building permit issued

( within service area,’000M[2] )*

==> picture [286 x 89] intentionally omitted <==

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

9,414
9,088 YOY
+4%
----- End of picture text -----

*Service Area：Hsin-Chu, Taichung, Tainan, Kao-hsiung, Pint-tung.

8

RMC: Sales by region

==> picture [74 x 74] intentionally omitted <==

Region	Sales	Volume to be supplied
Hsinchu	5%	7%
Taichung	8%	8%
Tainan	41%	37%
Kaohsiung	35%	41%
Pingtung	11%	7%
Total	100%	100%

*Sales: 1H22, volume to be supplied: till June 2022.

9

RMC: by categories of project

==> picture [74 x 74] intentionally omitted <==

Category Region	Residential	Industrial & Commercial	Civil Engineering	Infrastructure	Total
Hsinchu	44%	44%	12%	0%	100%
Taichung	73%	14%	3%	10%	100%
Tainan	59%	25%	2%	14%	100%
Kaohsiung	45%	15%	8%	32%	100%
Pingtung	77%	8%	3%	12%	100%

*Sales:1H22.

10

Building Material: Diversified Application of G sum Board yp

==> picture [74 x 74] intentionally omitted <==

• Continuous effort in improving the gypsum board performance of waterproof, fire-proof, thermal-insulation, noise-insulation and easy to install.

• By incorporating the Wall-panel system with Nichiha Fiber Cement Board, we developed diversified pre-fabrication solution that can be used for indoor decoration, wall panel, double wall and reduce the number of working hours and workforce and maintain consistent quality of work.

• Continuous promotion of reward for recycled gypsum board with a 100% reuse rate.

==> picture [180 x 228] intentionally omitted <==

==> picture [167 x 228] intentionally omitted <==

==> picture [154 x 228] intentionally omitted <==

11

Highlight Tech CORP.

Puyong CORP.

Taota Construction CORP.

Building Material: by categories of project

==> picture [74 x 74] intentionally omitted <==

Category	Volume to be supplied
Residential	35%
Industrial & Commercial	33%
Hotel	10%
Infrastructure	6%
Other	16%
Total	100%
* Volume to be supplied: till June 2022.

12

UNEO: Supply of Pressure Sensor

==> picture [74 x 74] intentionally omitted <==

Supply of Pressure Sensor

• In collaboration with internationally renowned manufacturer of Smart Medical Monitoring Product to supply components for medical beds.

• In collaboration with major touch IC developers for next generation touch writing pad and supply both domestically and abroad.

• In collaboration with manufacturers of stylus to supply comprehensive choices of components.

• In collaboration with international major manufacturers to develop next generation smart door with touching pad.

==> picture [143 x 103] intentionally omitted <==

==> picture [151 x 106] intentionally omitted <==

==> picture [143 x 97] intentionally omitted <==

==> picture [143 x 95] intentionally omitted <==

13

UNEO：Pressure Sensor System

==> picture [74 x 74] intentionally omitted <==

Provide complete solution of Pressure Sensor System

• Provide high-precision pressure sensor system for these industries,  Semiconductor

• Panel

• Precision manufacturing

 In collaboration with renowned international warehouse management system developer to accomplish intelligent Logistics.  In collaboration with manufacturers of stylus to expand market applications.

==> picture [143 x 103] intentionally omitted <==

==> picture [151 x 106] intentionally omitted <==

==> picture [143 x 97] intentionally omitted <==

==> picture [143 x 95] intentionally omitted <==

14

Outlook 2022: Cautiously Optimistic

==> picture [74 x 74] intentionally omitted <==

• COVID-19 has limited impact on the operation of the Company in 2021, and we will keep monitoring the influence in the future.

 With Taiwan government’s continuous promotion of Foresight Project, the growth in public infrastructure is foreseeable. Demand for commercial building is expected to increase significantly due to the return of oversea Taiwanese business, foreign investment and relocation of farming land and factories. Residential building is expected to face increasing demand as a result of newly established factories in the vicinity. In light of factors above along with promotion of Urban Renewal Plan for Unsafe and old building, the overall sales is expected to see a growth.

 The new production line of Luzhu Gypsum Board plant and second production line from Dahu RMC plant will be ready to contribute its production capacity in 3Q22.

15