亞洲水泥股份有限公司

Asia Cement Corporation

IR presentation

Stock code:

1102 TT

Dec 2021

2

Disclaimer

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.

3

Company Snapshot

FENC(1402 TW)

• Established in 1957

• 2nd largest cement producer

• Cement capacity: 5.0 mtpa.

ACC

Taiwan

Asia Cement(1102 TT)

• 10th largest cement producer

• In Central and Southwest China

• Cement capacity: 33.0 mtpa.

AC(China)

(743 HK)

• LNG fired IPP (8% of revenue)

• Cold rolled stainless steel

(7% of revenue)

Other

Business

Consolidated Entities

Equity Investments

U-Ming

Marine(2606 TW)

Shanshui

Cement(691 HK)

4

Cement Business Overview

ACC (Taiwan)

1. Clinker capacity 5mt

2. Cement business

integrated from grave

mining to prefab.

ACC (China)

1. Located along Yangtze

River, total of 33mt(Jiangxi 14mt，Sichuan 11mt，Hubei 8mt)

2. 10th largest cement

player in China

5

Investment Portfolio in Far Eastern Group

2004 Asia Cement (China) Holdings Corp. 743 HK 67.7% Consolidation Top 10 cement producer in China

1968 U-Ming Marine Transport Corp. 2606 TT 39.3% Equity Method Largest dry bulk carrier in Taiwan

1949 Far Eastern New Century Corp. 1402 TT 23.8% Equity Method

Holding Company of Far Eastern Group.

Core business integrated from

petrochemical to textile.

1975 Oriental Union Chemical Corp. 1710 TT 7.2% FVTOCIImportant supplier of EG and chemical

products in Asia-Pacific

1967 Far Eastern Department Stores Ltd. 2903 TT 5.7% FVTOCILeading retailer of department store and

supermarket in Taiwan

1992 Far Eastern International Bank 2845 TT 2.4% FVTOCIProvide diversified financial services in

Greater China

1997 Far EasTone Telecommunications Ltd. 4904 TT 1.0% FVTOCI Top 3 telecom company in Taiwan

Stock

CodeHoldings Category Company Introduction

Incorporated

YearInvestees

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))

6

NT$ mn

3Q21 3Q20 YoY 9M21 9M20 YoY

Operating Revenue 21,849 20,736 5% 61,811 54,564 13%

Cement business 16,602 17,168 -3% 49,491 44,588 11%

Power business 2,689 1,744 54% 4,777 4,629 3%

Stainless Steel business 1,808 860 110% 4,539 2,878 58%

Others 751 964 -22% 3,004 2,469 22%

Revenue(3Q21)

Operating Revenue by Segments

Revenue(9M21)

Note: ACC(TW)= Taiwan cement operation, RMC and other downstream value chain

AC(China)53%

ACC(TW)23%

IPP 12%

Stainless Steel 8%

Others 3%

AC(China)55%ACC(TW)

25%

IPP 8%

Stainless Steel 7%

Others 5%

7

NT$ mn

3Q21 3Q20 YoY 9M21 9M20 YoY

Operating profit 3,502 5,645 -38% 12,533 13,077 -4%

Cement business 2,544 4,558 -44% 10,124 10,789 -6%

Power business 656 659 -1% 980 1,383 -29%

Stainless Steel business 139 0 NA 258 (28) NA

Others 164 427 -62% 1,171 933 25%

Operating Profits(3Q21)

Operating Profits by Segments

Operating Profits(9M21)

Note: ACC(TW)= Taiwan cement operation, RMC and other downstream value chain

AC(China)58%ACC(TW)

15%

IPP 19%

Stainless Steel 4%Others 5%

AC(China)67%

ACC(TW)14%

IPP 8%

Stainless Steel 2%

Others 9%

8

3Q21 3Q20 YoY

Coal 43% 31% +12bps

Power 12% 16% -4bps

Material 21% 19% +2bps

D&A 10% 12% -2bps

Others 15% 23% -8bps

Cost Breakdown

3Q21 3Q20 YoY 3Q21 3Q20 YoY 3Q21 3Q20 YoY

Cement 340 327 4% 6.8 7.4 -9% 26% 40% -14bps

Clinker 309 273 13% 0.9 1.0 -5% 30% 41% -11bps

RMC 438 463 -5% 0.1 0.3 -56% 3% 19% -13bps

Aggregate 69 58 19% 0.5 1.3 -60% 79% 76% +3bps

ASP (R$/t) Shipment (mt) Gross Margin (%)

AC(China): 3Q21 Operating Data

9

20

30

40

50

60

70

80

350

400

450

500

550

600

650

700

Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21

Inventory Level Market Price

30

40

50

60

70

80

90

350

400

450

500

550

600

650

700

Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21

Inventory Level Market Price

30

40

50

60

70

80

90

350

400

450

500

550

600

650

700

Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21

Inventory Level Market Price

10

20

30

40

50

60

70

80

90

350

400

450

500

550

600

650

700

Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21

Inventory Level Market Price

Unit: R$/t ; %

R$/t R$/t

R$/t R$/t

% %

% %

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

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

Jiangxi (Nanchang) Hubei (Wuhan)

Sichuan (Chengdu) Jiangsu (Nanjing)

10Source : 中國發改委；工信部；水泥協會

China Cement Industry Policy Trend

• Encouraging production

relocation and consolidation

• Big players pricing power

to improve

Consolidation

• Production halt normalized

• Stricter rules for capacity swap

• Leads the industry to cut

overcapacity

Supply Control

• Rising environmental standards

• Soaring energy prices

Environment• Improve emission and

energy efficiency helps to

lift competitiveness

11

11.7 10.3 10.2 10.7 11.4 12.1 9.2

-15%

-10%

-5%

0%

5%

10%

0

5

10

15

20

2015 2016 2017 2018 2019 2020 9M21

mtCement Consumption YoY(%)

3.2 2.7 2.5 2.6 2.6 2.8 2.2

-20%

-10%

0%

10%

20%

30%

0

1

2

3

4

5

2015 2016 2017 2018 2019 2020 9M21

mt

Local sales YoY(%)

Taiwan Cement Market

Market Demand

YoY+4%

YoY+7%

ACC Local Sales

Note: consumption＝local＋imports; Source: National Development Council, Taiwan Cement Manufacturers’ Association

12

Steady Payout with Enjoyable Yields

83% 80% 84% 81%

98%90%

100% 100% 99%89% 89%

61%

88%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Payout ratio(%)

1.8 1.8 1.9 2.3 1.7 1.8 2.2

1.1 0.9 1.2

2.8 3.0 3.460.3 0.3 0.2

0.3

0.2 0.2 -

- --

2.1 2.1 2.1 2.6

1.9 2.0

NT$/share Cash dividend Stock dividend

4.3%5.4%

6.2% 6.4%

4.7% 4.8%5.6%

3.1% 3.3%4.3%

8.2%7.0%

8.0%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Dividend yield(%)

Note1: Payable EPS= Net income – Investment property adjustment

Note2: Dividend yield= Cash dividend / Last 12-month average share price

13

TWSE Corporate Governance

Evaluation:

2020 Top 6%~20%

& 7 years listed in

“Taiwan High Salary 100 Index”

Taiwan & Global Corporate

Sustainability Award:

2020 TCSA award

2020 GCSA Great Practice

Included in the

FTSE4Good TIP Taiwan

Index by FTSE Russel

since 2018

Asia Responsible

Entrepreneurship Awards:

2020 Winner of

Green Leadership

Sustainability Recognition

AC(China) rewarded by

IR Magazine Awards –

Greater China 2021

Best in sector: materials

Source: Asia Cement CSR report

The target of emission

reduction approved by the

SBTi in 03/2021

14

Carbon Reduction Target

Note：Asia Cement committed that by 2025, including Taipei headquarter, Hsinchu Plant and Hualien Plant, the emission intensity of cementitious materials (scopes 1 and 2) will be reduced by 8% compared to 2019.Source: ACC CSR Report

The 4th cement

operator to

pass the SBTireview

The carbon

intensity to be

lowered by

8%*

ACC with GCCA:

Carbon neutrality for concrete

in 2050

2021 2025 2050

15

Thank youir@acc.com.tw

http:// www.acc.com.tw

Q&A: Mining Concerns

ACC Eco-friendly

Achievements

Download: ACC Financials

16

Appendix：Financial Results

17

NT$ mn

3Q21 3Q20 YoY 9M21 9M20 YoY

Operating Revenue 21,849 20,736 5% 61,811 54,564 13%

Operating Cost 17,381 14,333 21% 46,773 38,786 21%

Net Gross Profit 4,468 6,403 -30% 15,038 15,778 -5%

SG&A expenses 965 758 27% 2,505 2,701 -7%

Operating profit 3,502 5,645 -38% 12,533 13,077 -4%

Non-operating income(net) 1,331 1,933 -31% 3,849 3,785 2%

Equity Income 1,623 1,599 2% 4,477 3,590 25%

Far Eastern New Century Corp. 354 425 -17% 1,417 1,000 42%

U-Ming Marine Transport Corp. 699 292 140% 1,239 180 589%

Shanshui Cement Co. Ltd. 437 719 -39% 1,254 1,573 -20%

Others 133 163 -18% 567 837 -32%

Net Interest Income (Expense) 4 13 (4) (74)

Dividend Income 1 32 336 332

Gain (loss) on exchange 14 (6) (186) (114)

Gain (loss) on FVTPL Financial Assets and Liabilities (171) 171 (577) (252)

Others (140) 125 (198) 302

Pre tax Income 4,833 7,578 16,381 16,862

Tax 1,051 1,424 3,384 3,875

Net income 3,782 6,154 -39% 12,998 12,988 0%

Profit Attributable to Owners of Parent 3,355 4,930 -32% 11,070 10,341 7%

EPS (NT$/share) 0.95 1.47 -35% 3.12 3.08 2%

Gross margin 20.4% 30.9% 24.3% 28.9%

Operating margin 16.0% 27.2% 20.3% 24.0%

Net margin 15.4% 23.8% 17.9% 19.0%

Summary of P&L

Note: EPS is calculated using total outstanding shares, 3,544 mn shares in 9M21.

18

NT$ mn

Cash Flow 9M21 2020

Net Income 11,070 14,710

Depr&Amort 3,665 4,948

Changes of non-cash WC (1,296) 7,129

Acquisition of FVTPL FA(1) (2,127) (9,770)

Operating Cash Flow 9,631 19,615

CAPEX (2,586) (6,294)

Disposal of AC FA(2) 158 5,931

Investing Cash Flow (2,315) (4,506)

Changes in Debt/Borrowings 13,711 3,614

Dividends Paid (11,933) (10,085)

Financing Cash Flow 663 (14,010)

Effect of FX (485) 77

Net Changes in Cash 7,494 1,176

Free Cash Flow 7,045 13,322

NT$ mn

Balance Sheets 3Q21 2020

Current Assets 98,149 87,024

Cash&Cash equivalents 33,406 25,912

Short-term Investments 36,941 35,693

Non-Current Assets 209,139 210,063

Long-term Investment 97,351 96,054

Fixed Assets 78,250 89,409

Total Assets 307,288 297,087

Current Liabilities 57,033 64,028

Short-term debt 43,664 49,238

Non-Current Liabilities 76,016 63,172

Bonds Payable 45,179 38,800

Bank Loans 17,396 10,945

Total Liabilities 133,049 127,200

Capital Stock 35,442 33,614

Total Shareholders’ Equity 174,239 169,887

Book Value(NT$/Share) 42.8 44.0

ROE 10.5% 10.0%

Net Gearing Ratio 23.7% 25.3%

Net Debt 35,892 37,378

Summary of Balance Sheets & Cash Flow

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

Note1: Under the IFRS 9 applied since 2018, mutual fund investment

has been classified as operating activities.

Note2: Mainly over 3 months time deposit.

19

AC(China): Summary of P&L

RMB$ mn

3Q21 3Q20 YoY 9M21 9M20 YoY

Operating revenue 2,720 2,953 -8% 8,021 7,267 10%

Operating cost 1,991 1,772 12% 5,419 4,299 26%

Gross Profit 729 1,182 -38% 2,602 2,968 -12%

Other net income/(loss) 25 40 65 113

Selling&marketing costs 124 119 357 297

Administative expenses 128 67 271 317

Operating income 502 1,036 -52% 2,038 2,467 -17%

Finance costs 21 26 42 121

Shares of results of jointly controlled entities (3) 0 (4) 1

Pre tax Income 479 1,011 1,992 2,347

Tax 172 240 578 667

Net Income 307 771 -60% 1,413 1,680 -16%

Profit Attributable to Owners of Parent 296 749 -60% 1,370 1,627 -16%

Minority interests 11 22 44 53

EPS (RMB$/share) 0.19 0.48 -60% 0.87 1.04 -16%

Gross margin 26.8% 40.0% 32.4% 40.8%

Operating margin 18.5% 35.1% 25.4% 33.9%

Net margin 10.9% 25.4% 17.1% 22.4%

20

RMB$ mn

Cash Flow 9M21 2020

Operating Cash Flow 1,584 5,017

Investing Cash Flow 750 (3,750)

Financing Cash Flow (1,082) (4,249)

Net Changes in Cash 1,252 (2,982)

RMB$ mn

Balance Sheets 3Q21 2020

Current Assets 11,247 10,674

Trade and other receivables 3,757 4,786

Bank balances and cash 6,527 5,276

Non-Current Assets 10,521 10,960

Property,Plant&Equipment 7,159 7,587

Total Assets 21,767 21,634

Current Liabilities 3,415 2,820

Borrowings- due within one year 1,725 873

Non-Current Liabilities 1,242 2,283

Borrowings- due after one year 1,042 2,099

Total Liabilities 4,657 5,103

Total Equity 17,110 16,531

Book Value(RMB/Share) 10.7 10.3

ROE 15.1% 17.5%

Net Gearing Ratio -22.9% -14.3%

Net Debt (3,826) (2,303)

AC(China): Balance Sheets & Cash flow

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