#1中國西部水泥有限公司 WEST CHINA CEMENT LIMITED 2023 Annual Results March 2024#2Important Disclaimer and Notice to Recipients Institutional presentation materials By attending the meeting where this presentation is made, or by reading the presentation materials, you agree to be bound by the following limitations: 中国西部水泥有限公司 WEST CHINA CEMENT LIMITED The information in this presentation has been prepared by representatives of West China Cement Limited (the "Issuer") for use in presentations by the Issuer at investor meetings and does not constitute a recommendation or offer regarding the securities of the Issuer. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information, or opinions contained herein. None the Issuer, Credit Suisse Securities (Europe) Limited and Nomura International plc, or any of their respective advisors or representatives shall have any responsibility or liability whatsoever (for 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. The information set out herein may be subject to updating, completion, revision, verification and amendment and such information may change materially. This presentation is based on the economic, regulatory, market and other conditions as in effect on the date hereof. It should be understood that subsequent developments may affect the information contained in this presentation, which neither the Issuer nor its advisors or representatives are under an obligation to update, revise or affirm. The information communicated in this presentation contains certain statements that are or may be forward looking. These statements typically contain words such as "will", "expects" and "anticipates" and words of similar import. By their nature forward looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. Any investment in securities issued by the Issuer will also involve certain risks. There may be additional material risks that are currently not considered to be material or of which the Issuer and its advisors or representatives are unaware. Against the background of these uncertainties, readers should not rely on these forward-looking statements. The Issuer assumes no responsibility to update forward-looking statements or to adapt them to future events or developments. Market data, industry participants data, industry forecasts and statistics in this presentation have been obtained from both public and private sources, including market research, publicly available information and industry publications. This information has not been independently verified by us and we do not make any representation as to the accuracy or completeness of that information. In addition, third-party information providers may have obtained information from market participants and such information may not have been independently verified. Due to possibly inconsistent collection methods and other problems, such statistics herein may be inaccurate. You should not unduly rely on such market data, industry forecasts and statistics. This presentation and the information contained herein do not constitute or form part of any offer for sale or subscription of or solicitation or invitation of any offer to buy or subscribe for any securities of the Issuer. The securities of the Issuer have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), and may not be offered, sold or delivered within the United States absent registration under or an applicable exemption from the registration requirements of the United States securities laws. This presentation and the information contained herein are being furnished to you solely for your information and may not be reproduced or redistributed to any other person, in whole or in part. In particular, neither the information contained in this presentation nor any copy hereof may be, directly or indirectly, taken or transmitted into or distributed in the United States, Canada, Australia, Japan, Hong Kong, the PRC or any other jurisdiction which prohibits the same except in compliance with applicable securities laws. Any failure to comply with this restriction may constitute a violation of U.S. or other national securities laws. No money, securities or other consideration is being solicited, and, if sent in response to this presentation or the information contained herein, will not be accepted. No invitation is made by this presentation or the information contained herein to enter into, or offer to enter into, any agreement to purchase, acquire, dispose of, subscribe for or underwrite any securities or structured products, and no offer is made of any shares in or debentures of the Issuer for purchase or subscription, except as permitted under the laws of Hong Kong. By reviewing this presentation, you are deemed to have represented and agreed that you and any client you represent are outside of the United States. 2#3中國西部水泥有限公司 WEST CHINA CEMENT LIMITED Company Overview#4Company Overview Western China focus - Shaanxi, Xinjiang and Guizhou 中国西部水泥有限公司 WEST CHINA CEMENT LIMITED The largest cement producer in Shaanxi Province by NSP production capacity Market leader in Southern and Eastern Central Shaanxi - Africa focus – Mozambique, D.R. Congo and Ethiopia Cement capacity: 31.8mt Shaanxi: 21.7mt Xinjiang: 3.5mt Guizhou: 1.8mt Mozambique: 2.0mt D.R. Congo: 1.5mt Ethiopia: 1.3mt Aggregates capacity: 15.0mt Commercial concrete capacity: 12.4mcm ■ 100% NSP capacity. Matching Clinker/Cement volumes at each plant Southern Shaanxi core markets: Dominant market position Eastern Central Shaanxi core market: Access to Xi'an metropolitan market ■ Mozambique, D.R. Congo and Ethiopia: Growth opportunities ☐ Well positioned to capitalize on West China development ■ A key strategic cement asset in North West China#5中國西部水泥有限公司 WEST CHINA CEMENT LIMITED 2023 Annual Results#62023 Annual Results Highlights ■ Operational Cement: Period-end installed capacity of 31.8mt (31 Dec 2022: 33.3mt) Sales volume of 19.8mt (31 Dec 2022: 18.5mt). Including clinker sales 20.5mt (31 Dec 2022: 19.3mt) ASP of RMB360/t (31 Dec 2022: RMB358/t) 中国西部水泥有限公司 WEST CHINA CEMENT LIMITED Regional operational metrics (Cement) PRC Africa Market situation Highly Competitive ■Limited Competition Aggregates: Period-end installed capacity of 15.0mt (31 Dec 2022: 15.0mt) Cement 17.2 (2022: 17.3) Sales volume of 4.05mt (31 Dec 2022: 4.61mt) - ASP of RMB45/t (31 Dec 2022: RMB51/t) Sales volume (mt) Commercial Concrete: Period-end installed capacity of 12.4mcm (31 Dec 2022: 12.4mcm) Sales volume of 1.91mcm (31 Dec 2022: 1.74mcm) ASP of RMB378/cm (31 Dec 2022: RMB407/cm) Financial Product mix Low grade 18% 2.6 (2022: 1.2) Total 19.8 (2022: 18.5) High grade 82% High grade 100% High grade 84% - Gross Profit increase to RMB2,460.0m (31 Dec 2022: RMB2, 181.8m) EBITDA decrease to RMB2,948.6m (31 Dec 2022: RMB3, 176.4m) Average: 292 Average: 813 813 - Profit Attributable to Shareholders RMB421.3m (31 Dec 2022: RMB1,214.7m) Net Gearing 60.4% (31 Dec 2022: 55.9%) ASP 296 (RMB) 272 Cash & cash equivalents of RMB2, 120.3m (31 Dec 2022: RMB2,045.9m) Further Developments - The National Cement Plant, Ethiopia was commissioned in November 2022. The Great Lakes Plant, D.R. Congo was commissioned in December 2022. The Group fully repaid the medium-term notes at RMB700 million in September 2023. Low grade 16% Average: 359 376 272 High grade Low grade High grade Low grade High grade 6#7Financial Analysis and KPIs 中国西部水泥有限公司 WEST CHINA CEMENT LIMITED RMB Million Ended Ended % (unless otherwise specified) 31 Dec 2023 31 Dec 2022 Change Ended Ended 31 Dec 2023 31 Dec 2022 Sales Volume: Cement: Cement (mt) 19.8 18.5 7.0% ASP/t (RMB) 360 358 Aggregates (mt) 4.05 4.61 (12.2%) -PRC 292 340 Commercial Concrete (mcm) 1.91 1.74 9.8% -Africa: Mozambique 663 527 Revenue 9,020.9 8,489.1 6.3% D.R. Congo 1,272 1,715 Gross Profit 2,460.0 2,181.8 12.8% Ethiopia 872 743 EBITDA (1) 2,948.6 3,176.4 (7.2%) GP/t (RMB) 96 85 Profit/(Loss) Attributable to -PRC 44 71 421.3 1,214.7 (65.3%) Shareholders -Africa: Mozambique 358 237 Basic EPS (cents) 7.7 22.4 (65.6%) D.R. Congo 509 393 Dividend (cents) 2.3 6.7 (65.7)% Ethiopia 504 333 Gross Profit Margin EBITDA Margin 27.3% 25.7% 1.6ppt 32.7% As at 31 Dec 2023 37.4% As at 31 Dec 2022 (4.7ppt) Aggregates: ASP/t (RMB) GP/t (RMB) 45 51 24 34 Total Assets Net Debt (2) Net Gearing (3) Net Debt / EBITDA 32,902.9 30,239.3 8.8% 8,556.1 7,487.1 14.3% Commercial Concrete: 60.4% 55.9% 4.5ppt ASP/cm (RMB) 378 407 2.9 2.4 20.8% GP/cm (RMB) 52 39 53 EBITDA / Fixed Charge (4) Net Assets Per Share(cents) 5.0 6.3 (20.6%) 260 246 5.7% Trade receivable 1.EBITDA is defined as profit before tax minus net foreign exchange (losses) gains, interest income, hyperinflation restatement and gain on disposal of a joint venture, plus finance costs, impairment losses, total depreciation and amortization expenses, loss on derecognition of a subsidiary, provision of administrative penalty as well as fair value changes. 2. Net debt equal to bank borrowings and senior notes, less bank balances and cash as well as restricted / pledged bank deposits 3.Net Gearing is measured as net debt to equity 4.Fixed charge means gross interest expenses. 5.365 day/(Turnover / Average trade and bill receivables) 6.365 day/(Production cost/Average inventory) 7.365 day/(Production cost/Average trade and bill payables) Trade payable 70 72 Turnover Days (5) Inventory Turnover Days (6) 80 75 121 118 Turnover Days (7) 7#8Production Cost Analysis Production Cost (Cement) Average Coal Cost 中国西部水泥有限公司 WEST CHINA CEMENT LIMITED RMB (million) 6,000.0 (RMB per ton) 1,200 1,039 -15.5% 1,000 800 60.3% 779 33.4% 878 525 -7.4% 600 486 5,191.1 400 5,069.8 5,000.0 6.9% 200 6.3% 4,637.6 0 5.4% 6.2% 2019 2020 2021 2022 2023 6.6% 4,017.0 6.1% Average Electricity Cost 3,955.3 14.1% 14.2% 4,000.0 8.4% (RMB per kwh) 8.2% 14.1% 7.0% 6.5% 11.5% 11.6% 0.6 -2.5% 0.5 0.41 0.40 -5.0% 0.38 18.4% 0.45 -8.9% 0.41 14.1% 15.3% 0.4 3,000.0 12.4% 0.3 0.2 15.4% 15.6% 0.1 0.0 34.40% 2019 39.5% 2020 2021 2022 2023 2,000.0 35.8% 26.5% Average Limestone Cost 27.8% (RMB per ton) 1,000.0 20.0 16.6 5.4% 17.5 2.3% 17.9 -5.6% 16.9 0% 23.2% 16.9 28.1% 26.7% 27.1% 25.0% 15.0 10.0 0.0 5.0 2019 2020 2021 2022 2023 0.0 ■Raw material Coal cost Electricity cost Depreciation Labor cost ■ Others 2019 2020 2021 2022 2023 80#9中國西部水泥有限公司 WEST CHINA CEMENT LIMITED Operations & Markets#10WCC Position in Shaanxi NSP production capacity: 23.1 million tons WCC: 6.1m NSP production capacity: 12.6 million tons NSP production capacity: 14.1 million tons NSP production capacity: 5.5 million tons WCC:3.3m Source: Company information. Yulin Yan'an Tongchuan Xianyang Weinan Baoji Xi'an Shangluo Hanzhong Ankang Central South 中国西部水泥有限公司 WEST CHINA CEMENT LIMITED NSP production capacity: 3.6 million tons NSP production capacity: 11.0 million tons WCC: 7.0m NSP production capacity: 3.3 million tons WCC: 3.3m NSP production capacity: 3.1 million tons WCC:2.0m ■Southern Shaanxi - Shangluo, Ankang & Hanzhong ☑An area dominated by the Qingling Mountains Market shares of 60%-100% in each region ✓ Limited limestone deposits have resulted in relatively little new cement capacity over the past few years ✓ Long transportation distances from other markets ✓ Results in a disciplined supply side with good pricing power ■ Central Shaanxi - Weinan, Xi'an, Tongchuan, Xianyang and Baoji ✓ Dominated by the Xi'an market which is 30-40% of provincial demand Market shares of 64% in Weinan Region Plentiful limestone, more competition ✓ Positioned to benefit from Xi-Xian New Area development plans 10#11Central Shaanxi - Competitive Landscape 中国西部水泥有限公司 WEST CHINA CEMENT LIMITED Shengwei-Jingyang: 2.2mt Jidong-Jingyang: 4.4mt Conch-Liquan: 4.4mt Conch-Qianxian: 2.2mt Jidong-Fufeng: 4.4mt Conch-Qianyang: 2.2mt Tongchuan WCC-Hancheng: 2.0mt Manyi: 2.2mt Conch-Fenghuang: 2.0mt WCC-Yaowangshan: 1.1mt WCC-Tongchuan: 5.0mt Weinan Shaanxi Coal-Fuping: 4.0mt Xianyang WCC-Pucheng: 1.0mt Conch-Baoji JLH: 2.2mt Baoji Xi'an Jidong-Fengxiang: 2.2mt Conch-Baoji FHS: 3.8mt WCC Conch Indicated tonnage is annual cement capacity. Jidong Shengwei Other Source: Digital Cement, WCC. WCC-Shifeng: 2.0mt WCC-Fuping: 2.0mt Shengwei-Tongchuan: 6.4mt Jidong-Tongchuan: 6.4mt 11#12Southern Shaanxi - Competitive Landscape 中国西部水泥有限公司 WEST CHINA CEMENT LIMITED WCC-Xixiang: 1.1mt WCC-Yangxian: 1.1mt WCC-Mianxian: 1.1mt SINOMA-Hanjiang: 2.2mt Indicated tonnage is annual cement capacity. Source: Digital Cement, WCC. Hanzhong Ankang WCC Sinoma Other Shangluo WCC- Zhen'an: 0.7mt WCC-Danfeng 1: WCC-Danfeng 2: 1.1mt 1.5mt Jinlong: 1.1mt WCC-Xunyang: 2mt 12#13Emission Controls and Cost Savings New environmental standards - upgrades and cost savings Residual heat recovery systems Progress 70% of total capacity Impact ☐ Reduce 30% electricity consumption Denitration (De-NOx) equipment Installation completed at all plants in Shaanxi, Xinjiang and Guizhou. ■ NSP technology All plants Residual Heat Recovery - Electricity cost saving RMB (mn) 150 116.4 104.5 108.8 96.2 91.5 94.0 100 50 0 2018 2019 2020 2021 2022 2023 Source: Company Information. Decrease CO2 emissions by c.22,000 tons/year/mn tons Reduce nitrous oxide emissions by c.60% per ton of clinker produced Requires less energy to produce cement ■ More environmentally friendly 中国西部水泥有限公司 WEST CHINA CEMENT LIMITED 13#14Shaanxi Demand Outlook - Infrastructure Led 中国西部水泥有限公司 WEST CHINA CEMENT LIMITED Key infrastructure projects Xi'an-Yan'an High-Speed Railway ■ The Xi'an-Yan'an Railway is a component of the Baohai High-speed Railway Passage and Shaanxi's "*"-shaped high-speed railway network. It starts from north end of Xi'an East Railway Station, passes through the Trade & Logistics Park of Gaoling, Yanliang, Fuping, Yaozhou, Wangyi, Yintai, Yijun, Huangling, Luochuan, Fuxian, Ganquan, and then extends northward to Yan'an New District Station after being introduced into Yan'an Railway Station. Total distance of the Expressway is approx. 300 km with a total investment of 60 billion, and a speed of 350 kilometers per hour. ■Construction commenced in 2020 with total construction of approx. 1.5 million tons. In 2023, WCC supplied approx. 580,000 tons and expects to supply approx. 330,000 tons in 2024. Xi'an-Shiyan High-Speed Railway ■The project starts at Xi'an East Station to Shiyan city, passes through Lantian, Shangzhou, Shanyang and Yunxi, and ends at Shiyan, which connects with Shiyan East Station of Hanshi High-Speed Railway. Total distance of the railway is approx. 257 km, with a total investment of RMB 47.7 billion. Its consturction has been adopted 350 km/h high-speed railway standard. ■ Construction commenced in 2022 with the total consumption of approx. 2 million tons. In 2023, WCC supplied approx. 770,000 tons and expects to supply approx.510,000 tons in 2024. Xi'an-Ankang High-Speed Railway ■ Xi'an-Ankang Railway starts from Xi'an East Station to Ankang West Station via Zhashui, Zhen'an and Xunyang. Total distance of the Railway is approx. 170.2 km, with a total investment of RMB 32.92 billion. The planned construction period is 5 years. ■Construction commenced in 2021 with total construction of approx. 1.5 million tons. In 2023, WCC supplied approx. 720,000 tons and expects to supply approx. 560,000 tons in 2024. Ankang to Langao (Shanyujie) Expressway ■ The project connects the northern bank of Yue River in Hanbinqu in Ankang with Shiyan- Tianshui Expressway and ends at the intersection of two provinces inside Dabashan Tunnel in Shanyujie, which connects with the Kaixian-Chengkuo Expressway that is under construction in Chongqing, with a total distance of 88.583km. ■ Construction commenced at the end of 2017 with total consumption of approx. 1.5 million tons. In 2023, WCC supplied approx. 170,000 tons and expects to supply approx. 120,000 tons in 2024. Ankang - Chongqing High Speed Railway - ■ Ankang Chongqing Railway starts from Ankang in the north and ends in Chongqing in the south. Total distance of the Railway is approx. 478 km, of which the line in Shaanxi is about 80 km. The initial investment of Ankang - Chongqing Railway (Shaanxi Section) project is 16.642 billion, and a speed of 350 kilometers per hour. The approved construction period is 6 years. The whole line had been commenced construction on November 30, 2022, with the estimated cement demand of 2 million tons ■Construction commenced in 2022 with the total consumption of approx. 2 million tons. In 2023, WCC supplied approx. 150,000 tons and expects to supply approx. 320,000 tons in 2024. Micang Avenue ■ Micang Avenue is an important east-west horizontal line in the north of Bazhong. It starts from Tongjiang LiangHeKou, passes through Nanjiang, Nuoshuihe Town, Tiechang River, Huitan, Xiqing, Guanba, and the Yue-Banshan Expressway and ends at Zhaipo Ma Wanzi at Nanjiang County. Total distance of the avenue is 97 km, of which the main line is 85.3 km with a total estimated investment of 12.98 billion. The design standard follows 1st-grade highway with a subgrade span of 23 meters, the main line is twoway four-lane, and the speed is 60 km/hr. ■Construction scheduled to commence in 2021 with the total anticipated consumption of approx. 600,000 tons. In 2023, WCC supplied approx. 190,000 tons and expects to supply approx. 160,000 tons in 2024. Source: Shaanxi Province NDRC Data. 14#15Shaanxi Demand Outlook – Infrastructure Led 中国西部水泥有限公司 WEST CHINA CEMENT LIMITED Other infrastructure projects Project Name Railway Planned Construction Period Project Name Planned Construction Period Huaneng Power-Coal Transportation Railway (Central Region) 2021-2024 Hanzhong-Bazhong-Nanchong Railway (Shannan 2020-2024 Region) Expressway Lushi-Luanchuan Expressway (Shannan Region) Cangxi-Bazhong Expressway (Shannan Region) Chengkou-Kaizhou Expressway (Shannan Region) Danfeng-Ningshan Expressway (Shannan Region) Hydraulic Engineering 2019-2024 2020-2024 2021-2024 Beijing-Kunming Expresseay (Central Region) Kangxian-Lueyang Expressway (Shannan Region) Luonan-Lushi Expressway (Shannan Region) 2021-2024 2021-2025 2022-2026 2021-2024 Dongzhuang Reservoir (Central Region) 2013-2024 Han River-Wei River Phase II (Central Region) Yuehe Hydropower Station (Shannan Region) 2021-2024 Han River-Wei River (Huangjinxia) (Shannan Region) Tuxikou Reservoir (Shannan Region) 2018-2024 2020-2024 2017-2024 Others Xi'an Metro Municipal Projects (Central Region) 2014-long term Xi'an East Station (Central Region) Source: Shaanxi Province NDRC Data. 2023-2026 15#16Shaanxi Demand Outlook - Infrastructure Led 中国西部水泥有限公司 WEST CHINA CEMENT LIMITED Other infrastructure projects scheduled to commence construction Project Name Planned Construction Period Project Name Planned Construction Period Railway Xi'an-Hancheng Intercity Railway (Central Region) TBC Lanzhou-Hanzhong-Shiyan High-Speed Railway (Shannan Region) TBC Xi'an-FamenTemple Intercity Railway (Central Region) TBC Yanan-Yulin-Eerduosi High-Speed Railway (Central 2024-2029 Region) Yanliang-Xianyang International Airport Intercity Railway (Central Region) TBC Expressway Yangxian-Xixiang Expressway (Shannan Region) TBC G5 Beijing-Kunming Expressway - Guanghan Section (Shannan Region) 2024-2029 Zhengba-Guangan Expressway (Shannan Region) TBC Tongmu-Xunyang High-Speed Railway (Shannan Region) TBC Huyi-Zhuozhi-Meixian Expressway (Central Region) 2024-2029 Gaoxin-Huyuan Expressway (Central Region) TBC Beijing-Kunming Expressway Reconstruction and Expansion - Puhe Section (Central Region) Hancheng-Huanglong Expressway (Central Region) TBC 2024-2029 Qujiang-Taiyigong Expressway Reconstruction (Central Region) 2024-2029 Xi'an-Xingping Expressway (Central Region) TBC Hanyin Phoenix Mountain Tunnel (Shannan Region) 2024-2029 Hydraulic Engineering Hengkou Reservoir (Shannan Region) TBC Fuping Pumped Storage Hydro Power Plant (Central Region) TBC Xingping Reservoir (Shannan Region) TBC Shangluo Caoping Pumped Storage Hydro Power station (Shannan Region) TBC Guxian Reservoir (Central Region) TBC Shanyang Pumped Storage Hydro Power Plant (Shannan Region) TBC Han River - Wei River Phase III (Central Region) 2024-2027 Source: Shaanxi Province NDRC Data. 16#17Xinjiang, Guizhou and Sichuan- Diversified Revenue Source 中国西部水泥有限公司 WEST CHINA CEMENT LIMITED Yining City Yili District Urumgi Prefecture Hetian District Level City Guiyang Huaxi Plant Annual Capacity (mt): 1.8 Commissioned: April 2015 Guizhou ✓ Strategic location close to Guiyang city within "Gui- An New Area" ✓ Buoyant infrastructure led cement market ✓ Well positioned for ongoing infrastructure demand Yili Plant Annual Capacity (mt): 1.5 Commissioned: April 2015 ■ Northern Xinjiang ✓ Direct beneficiary of "Silk Road Economic Belt Development❞ ✓ Benefiting from trade connections to Central Asia ☐ Southern Xinjiang Moyu Plant Annual Capacity (mt): 2.0 Commissioned: December 2020 ✓ Established presence in Hetian area with 50% market share by NSP production capacity ✓ Key energy and resource supply area. Abundant cheap coal 17#18Africa - Diversified Revenue Source ■ D.R. Congo ✓ Strategic location close to the Lake Tanganyika which enabling exports to nearby countries, i.e. Rwanda, Burundi, western Tanzania ✓ Buoyant infrastructure led cement market Well positioned for ongoing infrastructure demand ■ Mozambique ✓ Little new capacities with increasing cement demand ✓ Buoyant infrastructure led cement market Well positioned for ongoing infrastructure demand National Cement Plant Annual Capacity (mt): 1.3 Commissioned: November 2022 NATIONAL CEMENT 中国西部水泥有限公司 WEST CHINA CEMENT LIMITED Great Lakes Plant Annual Capacity (mt): 1.5 Commissioned: December 2022 ■ Ethiopia ☑Little new capacities with increasing cement demand ☑Buoyant infrastructure led cement market Well positioned for ongoing infrastructure demand Mozambique Plant Annual Capacity (mt): 2.0 Commissioned: December 2020 18#19中國西部水泥有限公司 WEST CHINA CEMENT LIMITED Financial Performance#20Operational Performance 中国西部水泥有限公司 WEST CHINA CEMENT LIMITED 20 Sales volume of cement (RMB per ton) 24 22 Revenue (RMB mn) 10,000 9,021 8,489 19.6 19.9 19.8 8,003 18.5 8,000 7,131 16 6,000 12 4,000 8 2,000 4 0 0 2020 2021 2022 2023 2020 2021 2022 2023 Gross profit and gross profit margin EBITDA and EBITDA margin (RMB mn) (RMB mn) 42.0% 3,000 32.9% 35.0% 39.9% 44.0% 4,000 37.4% 29.7% 27.3% 2,500 32.7% 25.7% 28.0% 2,343 2,377 2,460 33.0% 3,000 3,195 2,000 2,182 2,997 3,176 2,949 21.0% 1,500 2,000 22.0% 14.0% 1,000 1,000 11.0% 500 7.0% 0 0.0% 0 0.0% 2020 2021 2022 2023 2020 2021 2022 EBITDA Margin 2023 Gross Profit Gross Profit Margin Source: Company information. 20 20#21Debt Profile & Key Credit Ratios 中国西部水泥有限公司 WEST CHINA CEMENT LIMITED Debt profile 1 Total debt/EBITDA 4.0x Net debt/EBITDA 3.5x 3.6x 3.0x 2.9x 2.8x 2.9x 2.4x 3.0x 2.1x 1.6x 2.0x 1.2x 1.0x 1.4x 0.7x 0.7x 0.0x 0.0x Bank 2020 2021 2022 2023 2020 2021 2022 2023 Senior notes borrowings 59.5% 40.5% Total debt/total capitalization 2 Interest coverage ratio 3 100.0% 80.0% 60.0% 40.0% 30.0% 20.0% 20.0x 15.1x 15.0x 51.7% 50.0% 50.3% 10.0x 5.0x 8.4x 6.3x 5.0x 0.0% 0.0x 2020 2021 2022 2023 2020 2021 2022 2023 Source: Company information 1. As of December 31, 2023 2. 3. Total capitalization equals non-current borrowings plus total equity. EBITDA/Gross interest expense. 24 21#22中國西部水泥有限公司 WEST CHINA CEMENT LIMITED Appendices#23Financial Information Summary of Consolidated Income Statement RMB '000 Revenue Cost of Sales Gross Profit For the year ended 31 December 中国西部水泥有限公司 WEST CHINA CEMENT LIMITED 2020 7,131,052 2021 8,002,791 2022 2023 8,489,135 (4,788,586) (5,626,224) (6,307,305) 9,020,901 (6,560,882) 2,342,466 2,376,567 2,181,830 2,460,019 Selling and marketing expenses (63,413) (74,499) (75,197) (132,386) Administrative expenses (405,389) (554,316) (604,845) (796,404) Other expenses (77,819) (24,326) (64,937) (200,429) Other income 285,476 252,958 451,912 142,719 Other gains/(losses) - net (152,663) 386,608 (52,454) (277,668) Impairment losses, under expected credit loss (128,408) (189,450) (68,885) (18,489) model, net of reversal Share of result of an associates 16,628 1,904 Share of result of a joint venture (190) (6,407) (3,403) Interest income Finance cost 195,762 169,416 168,898 88,189 (165,184) (261,081) (416,616) (307,839) Profit/(Loss) before income tax 1,847,456 2,083,591 1,513,299 954,309 Income tax expense (264,494) (300,639) (169,184) (268,608) Profit/(Loss) for the year 1,582,962 1,782,952 1,344,115 685,701 23 23#24Financial Information Summary of Consolidated Balance Sheet Assets RMB '000 2020 As at 31 December 2021 Liabilities and Equity 中国西部水泥有限公司 WEST CHINA CEMENT LIMITED As at 31 December 2022 2023 RMB '000 2020 2021 2022 2023 Non-current assets Non-current liabilities Property, plant and equipment ("PPE") 11,161,110 13,884,979 18,195,355 20,809,466 Borrowings 600,548 Investment Properties 47,059 47,059 Senior Notes Right-of-use assets Mining rights Other intangible assets 643,185 539,903 823,707 1,117,095 827,334 833,809 MT Notes 1,232,842 1,291,448 1,457,917 3,876,911 4,204,158 712,284 2,719,404 4,324,193 208,186 232,195 1,528,031 543,560 1,728,434 Asset retirement obligation 347,413 430,705 Deferred income tax liabilities Interest in an associate 77,643 8,000 Deferred income 78,701 35,301 337,043 335,693 83,783 454,456 27,771 28,254 358,178 409,578 20,804 Interest in a joint venture 9,810 Equity investment at FVTPL 162,181 3,403 92,593 Amount due to a non- 37,128 controlling shareholder of a subsidiary 1,138,506 Loans receivables 524,091 323 401,847 396,109 Deferred income tax assets 42,673 92,463 190,639 Other long-term payables 165,980 Prepayment for right-of-use assets 3,433,311 792,826 887,028 7,122,106 7,372,506 100,278 58,506 38,511 26,600 1,093,088 8,925,245 Prepayment for mining rights 49,170 9,500 Deposit paid for acquisition of PPE 199,497 317,301 9,500 858,013 9,500 Current liabilities 395,357 Trade and other payables 3,003,112 4,375,905 5,423,026 5,981,403 Deposit paid for acquisition of subsidiaries 85,200 404,200 Current income tax liabilities 63,698 Deposits paid for acquisition of an associate MT Notes 164,257 Other deposits 23,123 Amount due from a joint venture 2,884 534,064 18,472 634,827 134,637 Borrowings Investment in entrusted product 81,855 Total liabilities 108,877 181,106 524,132 714,431 1,878,894 2,725,704 3,156,533 4,945,704 7,734,618 9,474,996 8,379,015 14,856,724 16,847,502 195,439 3,632,813 9,809,655 18,734,900 Restricted/ pledged bank deposits 13,735,914 17,813,465 23,389,144 70,000 25,092,784 Equity Current assets Inventories 731,434 1,111,169 1,488,858 Properties under development Trade and other receivables & prepayments 1,398,662 944,082 Minority interest Total equity Total Equity attributable to shareholders 10,330,802 11,313,548 12,031,353 12,283,445 1,748,635 Loans receivable 1,214,955 2,497,218 1,004,581 2,990,695 324,654 3,175,323 241,668 Total equity and liabilities 196,415 478,079 1,360,398 10,527,217 11,791,627 13,391,751 18,906,232 26,648,351 30,239,253 32,902,850 1,884,505 14,167,950 Structure deposits 100,000 Investment in entrusted product Restricted/ pledged bank deposits 723,831 81,855 632,348 621,627 Bank balances and cash 651,463 3,507,715 5,170,318 Total assets 18,906,232 8,834,886 26,648,351 1,424,275 6,850,109 30,239,253 1,127,669 922,662 7,810,066 32,902,850 24 24#25Financial Information Summary Consolidated Cash Flow Statements For the year ended 31 December 中国西部水泥有限公司 WEST CHINA CEMENT LIMITED RMB '000 Net cash generated from operating activities 2020 2021 2022 2023 2,702,612 1,959,650 2,134,538 2,700,141 Net cash used in investing activities (3,122,968) (3,516,628) (3,275,319) (3,353,393) Net cash generated from/ (used in) financing activities 322,040 4,453,422 (1,079,799) 139,807 Net increase / (decrease) in cash and cash equivalents (98,316) 2,896,444 (2,220,580) (513,445) Cash and cash equivalent at period end 651,463 3,507,715 1,424,275 922,662 25 25#26Board of Directors 中国西部水泥有限公司 WEST CHINA CEMENT LIMITED Mr. Zhang Jimin Chairman & Executive Director Mr. Cao Jianshun CEO & Executive Director Mr. Wang Fayin CEO (Overseas Business Group) Mr. Chu Yufeng CFO Mr. Ma Zhaoyang Non-executive Director Mr. Fan Zhan Non-executive Director Mr. Wang Zhixin Non-executive Director Independent Non-executive Directors Over 32 years of cernent industry experience Chairman of the Shaanxi Cement Association and Vice Chairman of the China Cement Association Received professional training course in economic management from Peking University ■ Over 26 years of management experience in the building materials industry Has held senior management positions in the Group for over 26 years MBA from Northwest University Won the "Shaanxi Provincial Building Materials Industry Advanced Individual" award for his extensive experience in the building materials industry Over 26 years of production technology experience in the cement industry Has held senior technical positions in the Group for over 26 years Won the "National Building Materials Industry Role Model" award for his extensive experience in the building materials industry Has held senior financial management positions in the Group for over 11 years Member of the Association of Chartered Certified Accountants MBA from an international business program jointly organised by Maastricht School of Management of Netherlands and Independent University of Bangladesh Professor of Management, Northwestern Polytechnic University; extensive academic expertise and experience in strategic planning Graduate of Tongling University, majoring in accounting Deputy head of the finance department of Anhui Conch Cement Company Limited and executive director of China Conch Environmental Protection Holdings Limited (Stock code:0587) Anhui Conch board representative Executive president of Anhui Conch in Shaangan Graduate of Wuhan University of Technology, majoring in inorganic non-metallic materials Anhui Conch board representative Mr. Lee Kong Wai, Conway Mr. Zhu Dong Mr. Tam King Ching, Kenny Mr. Feng Tao 26 26#27中國西部水泥有限公司 WEST CHINA CEMENT LIMITED Contact Us WEST CHINA CEMENT LIMITED YAOBAI SPECIAL CEMENT GROUP CO., LTD. No. 336 4th Shenzhou Road Aerospace Industrial Base Chang'an District Xi'an, Shaanxi, China Tel: +8629 8925 4988 Fax: +86 29 8925 4088 Email: [email protected] 中国西部水泥有限公司 尧柏特种水泥集团有限公司 中国陕西省西安市 长安区 航天基地 神舟四路336号 电话: +86 29 8925 4988 传真: +8629 8925 4088 电邮:[email protected]