China Steel Corporation · TWSE:2002
China Steel — Investor Presentation (November 2017)
18 slides from China Steel's investor presentation, Nov 15, 2017
Slide 1: China Steel Corporation
China Steel Corporation November 15-16, 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 4 •Financial Review 8 •EPS & Dividends (common stock) 9 •Sales 10 •Key Strategies 12 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: Performance- Consolidated operating results
Performance- Consolidated operating results Amount: NT$ million Item *2017.9 *2017.3Q *2017.1~3Q Consolidated Operating Revenue 29,808 88,917 256,767 Consolidated Operating Income 2,006 4,841 16,478 Consolidated Income 2,281 5,032 14,846 Before Income Tax *preliminary result 4
Slide 6: Performance-Sales Revenue Breakdown
Performance-Sales Revenue Breakdown Unit：NTD Thousands Item *2017.3Q *2017.1~3Q 1 Steel products 73,751,732 211,899,029 Non-steel industry 2 8,168,854 24,058,306 materials 3 Construction 4,232,210 13,401,782 Transportation and 4 1,728,948 4,990,020 service 5 Others 1,035,755 2,417,627 Sales returns
Slide 7: Performance-CSC group Segment revenues and operating results
Performance-CSC group Segment revenues and operating results Unit：NTD Thousands Ocean Freight Adjustment & 2017. 1H Steel Others Total Forwarding Elimination Revenues from external $ 135,535,015 $ 160,376 $ 32,153,874 $ - $ 167,849,265 customers Inter-segment revenues 39,876,318 7,602,695 15,466,007
Slide 8: Performance- consolidated basis
Performance- consolidated basis Consolidated Income Statement Units: NT$ millions IFRSs 2016.1H 2017.1H Revenues 137,291 167,849 Gross profit 15,885 18,732 Gross margins 11.57% 11.16% Profit before tax 7,849 9,814 Net profit 7,081 8,686 Attributable to Owners of the corporation 5,762 7,087 Non-contr
Slide 9: Performance: financial review (Consolidated Basis)
Performance: financial review (Consolidated Basis) Units: NT$ millions 12/31/2012 12/31/2013※ 12/31/2014※ 12/31/2015※ 12/31/2016※ 6/30/2017※ Debt 312,393 362,630 348,049 357,414 346,542 363,420 Debt/Equity 102.26% 113.55% 103.99% 111.44% 105.15% 112.68% Asset 617,892 681,999 682,737 678,139 676,122
Slide 10: Performance- Historical EPS and dividends paid
Performance- Historical EPS and dividends paid (in NTD per share) Dividend 86 70 102 82 84 85 87 85 85 87 88 85 132 payout(%) Cash Dividend 66 70 74 105 67 70 102 82 74 78 78 78 64 payout(%) 6.00 5.00 0.50 0.35 4.00 0.30 0.30 3.00 0.50 3.90 3.75 2.00 3.50 0.43 2.78 1.01 0.33 0.20 1.01 0.15 1.99 - 1.
Slide 11: Sales (CSC standalone)
Sales (CSC standalone) 2017.1~3Q CSC sales volume totaled 8.23 million metric tons Domestic/Export sales volume breakdown of 2017.1~3Q Hot-Rolled, 27.2% Cold-Rolled, 16.3% Vehicles Export 31.60% Billet/Slab, (2.60 million 12.0% Coated China Japan 17.1% Products, metric tons) 15.5% 21.8% Bar/Rod, 20.
Slide 12: Sales (CSC & BF products of DSC)
Sales (CSC & BF products of DSC) 2017.1~3Q sales volume (CSC & BF products of DSC) totaled 11.12 million Domestic/Export sales volume breakdown of 2017.1~3Q metric tons Hot-Rolled, Billet/Slab, 41.5% 13.5% Cold- Vehicles Rolled, 12.0% Export 34.14% China Japan 18.2% Bar/Rod, (3.80million 16.9% 14.9%
Slide 13: 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 14: 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 Major raw materials Iron ore and coking coals are secured by long-term contract East Asia United Corp. (volume) Partner with parties in Japa
Slide 15: 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 China Steel Precision Metals Kunshan China China Co., Ltd. China Steel Precision Materials Corporation PCMI Metal Products (Chongqing) Co., Ltd CSC holds 80% stake CSC holds 70% of th
Slide 16: 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 17: 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 18: Value Corporate Social Responsibility and achieve sustainable operation
Value Corporate Social Responsibility and achieve sustainable operation Awards and Honours • 2017.06 CSC has become a constituent of the FTSE4Good Index Series. 1 • 2017.01 CSC was ranked as RobecoSAM Silver Class Sustainability leaders 2017 in the 2 steel industry. • 2016.12 CSC received “Ten Most