CHC Resources Corporation

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November 2, 2018

Outline

Products and Application

Performance

1

Strategy

Products and Application

2

Main business

GBFS Cement Division

The largest producer of GBFS powder in Taiwan

3

Resource Reutilization Division

Business model & concept ～Circular Economy 4R

IndustryInput

Material/Resource

Production processProduction/Sales

ReduceReuse

Resource

4

OutputBy-product

R&D and InnovationSatisfy

Customer demand

Production/SalesQuality/Service

RecycleRecovery

Resource

Sustainability

Main investment project

Mar., 2016CHC Resources Vietnam Corporation established

2017

2018

Dec., 2014Kaohsiung BOF slag Plant operation

5

19932008

2009

20152016

Aug.,1993Kaohsiung Grinding Plant operation

Dec., 2008Kaohsiung BOF slag aggregate for asphalt concrete Plant operation

Jun., 2009Taichung Grinding Plant operation

2017

May, 2017Taichung BOF BSSF slag production line construction completedJul., 2017Taichung mill scrap reutilization line construction completedAug., 2015Taichung Grinding Plant Mixer operation

Dec., 2015TaichungGrinding Plant phase2 extension construction completed

Feb, 2018Taichung BOF slag storage area constructionSep., 2018Taichung BOF slag aggregate for asphalt concrete production line construction completed

2014

GBFS powder series products and application

GBFS powder

Blast Furnace

Main products Series / Application

100 grade

IS type

Cementitious material of concrete

Ordinary structure

120 grade

IS(MS、MH) type Medium resistance to sulfate, medium hydration heat / Marine construction for salt corrosion

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Blast Furnace Cement

Special Material

Soil improvement agent

Improve compaction and durability of soil/Ground grouting and CLSM production

IS(WR) type

Wet grouting material

Containing mineral admixtures with high finesse/ Soft soil consolidating and ground grouting work

Excellence for mixing , liquidity and low exfoliation rate

IP type (H2F)Inhibit alkali-aggregate reaction and efflorescence/adhesive of ceramic tiles, bricks and stone

GBFS powder series products and application

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Production of one ton of molten iron will produce 300kg of blast furnace slag

air-cooled blast furnace slag water-quenched blast furnace slag

The advantages of blast furnace powder and blast furnace cement products(1) The material has a Pozzolanic Activity to increase the strength of theconcrete for a long time.(2) Effective against sulfate attack.(3) Reduce the risk of alkaline aggregate reaction.(4) Improve concrete compactness and reduce permeability.

GBFS powder series products and application

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(4) Improve concrete compactness and reduce permeability.(5) Reduce cement usage, reduce hydration heat, and avoid thermal stress.armor blocks used ordinary Type IPortland cement

armor blocks used Portland blast furnace cement

CO2 emissions from GBFS powder series products

No Products

CO2 output per ton of product (kg) (A)

CO2 output per ton of Portland cement (kg)

(B)

CO2 discount per ton of product (kg)(B)-(A)=(C)

1 GBFS powder 50.5 900 849.5

GBFS powder series products and application

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The CO2 emission of GBFS powder is only 5% of Portland cement!

2 Type H2F GBFS cement 459.4 900 440.6

3 Ordinary Type I Portland cement 512.6 900 387.4

4 Type HSC301 soil improvement agents 313.6 900 586.4

Note: Ordinary Portland cement CO2e source: 2013 GaBi databases, RER Portland cement (CEM I) 1ton is 900.4kgCO2e (IPCC 2007)

Taiwan High Speed Rail Kao Ping Hsi Cable Stayed Bridge

GBFS powder series products and application

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Taiwan High Speed Rail Kao-Ping-Hsi Cable-Stayed Bridge

National Stadium (Kaohsiung) China Steel Building

Resource Reutilization series products and application

BF Slag

BOF Slag

Main products Series / Application

BF Slag aggregate

Aggregate for asphalt concreteBOF Slag aggregate

Road grade ingredientsConcrete aggregateCement raw material

Pavement of asphalt concrete,Civil and Marine backing material, Landfill covering

material

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Steel-making by-product reutilization

Desulfurization Slag

Soil & Groundwater pollution remediation

Mineral sludge, used refractory, steel scrap

, znic content resources

Mineral finesPre-cast product

Pollution site remediation

Cement plant by-product,lusedrefractory utilization, steel mill

raw material, smelting znicfactory raw material

CLSM、Cement raw material

Environment protectionSoil & groundwater recovery

※CLSM：Controlled Low Strength Materials

Resource Reutilization series products and application

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BOF Slag aggregate look similar to natural pellets

Performance

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Consolidated Revenue & EPS

5

10

15

60

80

100

NTD 100million NTD per share

EPS 2.71~4.57(after tax) in recent years

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2012 2013 2014 2015 2016 2017 2018 Q1-Q3Revenue 54.7 62.5 70.3 77.2 68.5 72.7 67.9 EPS 3.0 3.9 4.6 4.0 2.7 3.4 2.4

(5)

0

0

20

40

※un-audited data during Q1~Q3 in 2018

Consolidated Revenue of Business

20

30

40

50 NTD 100million

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2012 2013 2014 2015 2016 2017 2018 Q1-Q2GBFS Cement Division 30.0 36.0 41.7 40.1 31.2 31.3 17.9Resource Reutilization

Division 21.2 22.8 24.4 32.2 32.4 37.2 24.3

0

10

20

Gross Margin of Main Business

10

15

20 NTD 100million

16

2012 2013 2014 2015 2016 2017 2018 Q1-Q2GBFS Cement Division 8.4 11.0 13.0 11.3 6.3 7.2 4.3Resource Reutilization

Division 4.0 3.6 4.1 3.4 4.1 4.7 2.2

0

5

Stock Price & PE Ratio

15

20

25

40

60

80

NTD per share P/E Ratio

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2012 2013 2014 2015 2016 2017Stock Price 45.6 54.9 70.1 69.1 57.0 54.2 P/E Ratio 15 14 15 17 21 16

0

5

10

0

20

40

Main Financial Index

40

60

80

100

% Getting up debt ratio due to the maininvestment projects in recent years, ex.Taichung Grinding Plant phase 2extension construction etc.

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2012 2013 2014 2015 2016 2017 2018 Q1-Q2Debts Ratio 25.4 28.4 27.2 35.8 38.3 42.6 51.0ROA 12.9 15.7 17.0 13.9 9.0 10.8 4.4 ROE 16.7 21.4 23.5 20.1 14.1 18.0 8.0

0

20

40

EPS & Dividend

60%

80%

100%

120%

3

4

5

NTD per share Dividend payout ratio

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2012 2013 2014 2015 2016 2017EPS 2.96 3.92 4.57 3.99 2.71 3.37Dividend 2.8 3.3 4.2 3.5 2.8 2.0 Dividend Payout Ratio 95% 84% 92% 88% 103% 59%

0%

20%

40%

60%

0

1

2

Strategy

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Increase product value and strengthen supply channel, stable blast furnace cement business

Main Strategy

Develop the GBFS powder and the blast furnace cement 2

1

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Develop the GBFS powder and the blast furnace cement business in Vietnam

Promote research & development and technical ability, implement circular economy by resources utilization

3

GBFS Powder

(Main Product)

Wet grouting material

Promote product value and strengthened supply channel, stable blast furnace cement business1

Innovate high value product of Granulated Blast Furnace Slag(GBFS) power

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GBFS cement powder

Soil improvement

agentProduct Functions / Applications

GBFS cement powder

Highly resistant to sulfate, ultra low hydration heat / Maritime work and massive concrete structure engineering

Soil improvement agent

Soft soil and sensitive geology improvement / Dealing with the stability of foundation during excavation

Wet grouting material Low exfoliation rate / Excellent for mixing and pump transporting

Two production bases and distribution stations completed to satisfy customers demand

Changhua

Miaoli

Taipei

Taichung(1.3 million

MT/year)

Promote product value and strengthened supply channel, stable blast furnace cement business1

Build 76 storage silos, the total storage volume is 95,500 M3 Products diversityLayout completed, satisfy customers need

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Distribution station

Production base & Distribution station

Changhua

Ｋaohsiung(2.0 million

MT/year)

1 Export layout

• Objective: To expand the international channel of capacity expansion and reduce the fluctuation of supply and demand in the domestic market.

• Practice: International market information collection and contact, additional storage to enhance shipping capacity.

• Results: The sales area covers the Middle East, Southeast Asia, South Asia and so on.

Promote product value and strengthened supply channel, stable blast furnace cement business

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Develop the GBFS powder and the blast furnace cement business in Vietnam

2Unit: million tonsVietnam cement demand trend

cement demand

GDP growth rate

25

• In 2018, global cement demand is estimated to have grown from 4.2 billion tons to 5billion tons, and it has grown 2% to 3% annually by 2025.

• Vietnam's cement demand is estimated to exceed 60 million tons in 2018 (about 10million tons in Taiwan), and the potential demand for GBFS powder is estimated toexceed 8 million tons per year (about 5.5 million tons per year in Taiwan).

(F) (F)

2Name of company

CHC Resources Vietnam Corporation(CHCV)

Founding date Mar, 2016(Joint venture with Formosa Ha Tinh Steel Corporation)

Business Establish a production base, and make water-quenched blast furnace slag of Formosa Ha Tinh Steel (2 million tons per year) to GBFS power to sale, enhance product value and profit.

Situation In 2017.12, the board of directors passed the investment of Ha Tinhgrinding plant. CHC invested US20,400 ,000 in proportion according to the

Develop the GBFS powder and the blast furnace cement business in Vietnam

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grinding plant. CHC invested US20,400 ,000 in proportion according to the shareholding ratio, and invested in the investment capital demand.

BOF slag from CSC/DSC CHC

AC Pavement High-pressured Railway ballast

Transform into

Resource & Value-up

4 professional productionfactoriesKaohsiung：Yan-Hai, Li-ChangTaichung：Nan-Ti, Zhong-Gang

20 patents of process

Promote research & development and technical ability, implement circular economy by resources utilization

3

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AC Pavement

Tetrapods

High-pressured concrete brick

Railway ballast

Armor block

Promote research & development and technical ability, implement circular economy by resources utilization

3

Steel mill Cement plantMineral sludge Mill scale

Electronic factory Steel mill

Calcium fluoride sludge Artificial fluorite

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Smelting aluminumf

actory

Metal recycling industry 、Steel mill

Aluminum slagAluminum ingot & cone、

Aluminum slag amending agent

Steel millRefractory

manufacturer、CLSM plant

Used refractory Refractory、CLSM

Steel mill Cement plant、CLSM plantDesulfurization slag Mineral fines

※CLSM：Controlled Low Strength Materials

Commit to resource sustainability and value innovation,

Become an excellent enterprise in the circular economy

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