China Steel Corporation · TWSE:2002
China Steel — Investor Presentation (March 2017)
19 slides from China Steel's investor presentation, Mar 23, 2017
Slide 1: China Steel Corporation
China Steel Corporation March 23, 2017 Sustainability, our STEEL commitment. http://www.csc.com.tw/csc/hr/csr/index.htm 0
Slide 2: Table of Contents
Table of Contents •Company Overview 2 •Performance 5 •Financial Review 9 •EPS & Dividends (common stock) 10 •Sales 11 •Key Strategies 13 1
Slide 3: Company overview: Business snapshot (CSC standalone)
Company overview: Business snapshot (CSC standalone) Leading Taiwanese steel manufacturer with integrated production capabilities Overview Headquartered in Kaohsiung with major production sites located in Kaohsiung Annual capacity of 9.9 mmt as of Dec 31, 2016 Steel Sales revenue breakdown by
Slide 4: Company overview: Business snapshot (CSC Group)
Company overview: Business snapshot (CSC Group) Steel Core Businesses Other Group Businesses China Steel Corporation Engineering Businesses Logistic Businesses Chung Hung Steel China Steel Machinery Corporation China Steel Express Corporation Corporation China Steel Structure Co., Ltd. C
Slide 5: Company overview: Group capacity & Production lines
Company overview: Group capacity & Production lines Commencement of new capacity/production lines: CSC Group capacity group Crude steel capacity (mmt) Dragon Blast Furnace Dragon Electric Arc Furnace China Steel (0.2 mmt) MAY 2015 CSCI Project (0.15 mmt) APR 2014 5.0 NGO Line MAR 2013 Q1 2013 2.5 2.
Slide 6: Performance- Consolidated operating results
Performance- Consolidated operating results Amount: NT$ million *Accumulated Item *2016 *February 2017 of 2017 Consolidated Operating Revenue 293,043 25,869 51,027 Consolidated Operating Income 25,432 2,149 4,268 Consolidated Income 21,899 1,706 3,341 Before Income Tax *preliminary result 5
Slide 7: Performance-Sales Revenue Breakdown
Performance-Sales Revenue Breakdown Unit：NTD Thousands *February *Accumulated Item *2016 2017 of 2017 1 Steel products 234,611,501 21,494,489 41,758,007 Non-steel industry 2 28,975,673 2,292,587 4,855,676 materials 3 Construction 19,760,229 1,353,387 2,973,846 Transportation and 4 7,253,209 503,817
Slide 8: Performance-CSC group Segment revenues and operating results
Performance-CSC group Segment revenues and operating results Unit：NTD Thousands Adjustment & 2016. 1~3Q Steel Others Total Elimination Revenues from external $ 164,885,474 $ 45,999,007 $ -$ 210,884,481 customers Inter-segment revenues 42,187,124 29,207,916 ( 71,395,040) - Segment revenues $ 207,072,
Slide 9: Performance- consolidated basis
Performance- consolidated basis Consolidated Income Statement Units: NT$ millions IFRSs 2015.3Q 2016.3Q 2015.1~3Q 2016.1~3Q Revenues 67,694 73,593 222,060 210,884 Gross profit 4205 12,846 21,327 28,731 Gross margins 6.21% 17.46% 9.60% 13.62% Profit before tax 1,295 8,825 11,902 16,674 Net profit 1,1
Slide 10: Performance: financial review (Consolidated Basis)
Performance: financial review (Consolidated Basis) Units: NT$ millions 12/31/2011 12/31/2012 12/31/2013※ 12/31/2014※ 12/31/2015※ 9/30/2016※ Debt 299,578 312,393 362,630 348,049 357,414 345,495 Debt/Equity 95.99% 102.26% 113.55% 103.99% 111.44% 106.33% Asset 611,686 617,892 681,999 682,737 678,139 67
Slide 11: Performance- Historical EPS and dividends paid
Performance- Historical EPS and dividends paid (in NTD per share) Dividend 87 85 87 85 132 86 70 102 85 84 85 85 88 payout(%) Cash Dividend 67 102 76 74 78 78 78 64 66 70 74 105 70 payout(%) 6.00 5.00 0.50 0.35 4.00 0.30 0.35 0.30 3.00 0.50 3.90 3.75 2.00 3.50 0.43 3.00 2.78 1.01 0.33 0.70 0.20 1.01
Slide 12: Sales (CSC standalone)
Sales (CSC standalone) 2016 CSC sales volume totaled 11.14 million metric tons Domestic/Export sales volume breakdown of 2016 Hot-Rolled, 24.0% Cold-Rolled, 15.4% Vehicles Export 30.76% Billet/Slab , (3.43million 18.3% Coated Products, China Japan 16.2% 14.7% metric tons) 22.8% Bar/Rod, 18.4% Plate,
Slide 13: Sales (CSC & BF products of DSC)
Sales (CSC & BF products of DSC) 2016 sales volume (CSC & BF products of DSC) totaled 15.33 million metric Domestic/Export sales volume breakdown of 2016 tons Hot-Rolled, 39.2% Billet/Slab, Cold- 18.9% Vehicles Rolled, 11.1% Export 36.22% China Japan 16.5% (5.55million 14.1% Bar/Rod, Coated Coil cen
Slide 14: Key Strategies
Key Strategies 1 Secure stable sources of raw materials and semi-products through strategic investments and long term contracts 2 Solidify domestic market, expand export sales channels, and develop new market with customers 3 Integrate group resources and develop green energy businesses 4 Research a
Slide 15: Secure stable sources of raw materials and semi-products
Secure stable sources of raw materials and semi-products through strategic investments and long term contracts Major raw materials Semi-products Ferroalloy Acquired 5% of Dongbu Metal Co Major raw materials ($47.8bn WON, approximately USD$43.9mm) Iron ore and coking coals are secured by long-term
Slide 16: Solidify domestic market, expand export sales channels, and develop new market
Solidify domestic market, expand export sales channels, and develop new market with customers New Asia Project China United Steel Engineering and Construction China China Co., Ltd (Kunshan coil center) China Steel Precision Materials Corporation PCMI Metal Products (Chongqing) Co., Ltd CSC holds 80%
Slide 17: Research and develop advanced products and applied technology
Research and develop advanced products and applied technology for increasing chain value of steel industry CSC has established 8 ERCs. For example: Co-Development Engineering Advanced Specially Alloy ERC, cooperating with Academic Research Center with National Tsing Hua University Partners Forgi
Slide 18: Elaborate on energy saving and reduce cost continuously
Elaborate on energy saving and reduce cost continuously Cost Reduction Performance • 1.06 bn: Expense saving from nationalization of equipment and spare parts 2016 • 1.03 bn: Improvement of manufacturing process and promoting effectiveness and efficiency 4.05 • 0.64 bn: Provide saturated steam and i
Slide 19: Value Corporate Social Responsibility and achieve sustainable operation
Value Corporate Social Responsibility and achieve sustainable operation Awards and Honours • 2017.01 CSC was ranked as RobecoSAM Silver Class Sustainability leaders 2017 in 1 the steel industry. • 2016.12 CSC received “Ten Most Prestigious Sustainability Award”, ”Taiwan Top 50 Corporate Sustainabili