China Steel Corporation · TWSE:2002
China Steel — Investor Presentation (March 2018)
18 slides from China Steel's investor presentation, Mar 8, 2018
Slide 1: China Steel Corporation
China Steel Corporation March 8, 2018 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 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, 2017 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 Trading and Logistics Businesses Chung Hung Steel China Steel Machinery Corporation China Steel Express Corporation Corporation China Steel Structure
Slide 5: Performance- Consolidated operating results
Performance- Consolidated operating results Amount: NT$ million Item *2017 *2018.1 Consolidated Operating Revenue 347,012 32,820 Consolidated Operating Income 24,922 2,480 Consolidated Income 23,403 2,325 Before Income Tax *preliminary result 4
Slide 6: Performance-Sales Revenue Breakdown
Performance-Sales Revenue Breakdown Unit：NTD Thousands Item *2017 *2018.1 1 Steel products 287,137,194 27,330,428 Non-steel industry 2 32,256,205 3,108,023 materials 3 Construction 17,496,736 1,379,307 Transportation and 4 6,935,731 604,385 service 5 Others 3,186,136 397,769 Sales returns and Less 0
Slide 7: Performance-CSC group Segment revenues and operating results
Performance-CSC group Segment revenues and operating results Unit：NTD Thousands Adjustment & 2017. 1~3Q Steel Others Total Elimination Revenues from external $ 207,844,578 $ 48,922,186 $ - $ 256,766,764 customers Inter-segment revenues 60,863,488 35,375,728 ( 96,239,216) - Segment revenues $ 268,708
Slide 8: Performance- consolidated basis
Performance- consolidated basis Consolidated Income Statement Units: NT$ millions IFRSs 2016.3Q 2017.3Q 2016.1~3Q 2017.1~3Q Revenues 73,593 88,917 210,884 256,767 Gross profit 12,846 8,405 28,731 27,137 Gross margins 17.46% 9.45% 13.62% 10.57% Profit before tax 8,825 5,032 16,674 14,846 Net profit 7
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※ 9/30/2017※ Debt 312,393 362,630 348,049 357,414 346,542 345,919 Debt/Equity 102.26% 113.55% 103.99% 111.44% 105.15% 105.75% 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 CSC sales volume totaled 10.85 million metric tons Domestic/Export sales volume breakdown of 2017 Hot-Rolled, 26.9% Cold-Rolled, 16.0% Vehicles Export 30.57% Billet/Slab, (3.32 million 12.6% Coated China Japan 18.1% Products, metric tons) 15.3% 22.4% Bar/Rod, 20.3% Plate,
Slide 12: Sales (CSC & BF products of DSC)
Sales (CSC & BF products of DSC) 2017 sales volume (CSC & BF products of DSC) totaled 14.66 million metric Domestic/Export sales volume breakdown of 2017 tons Hot-Rolled, Billet/Slab, 41.5% 13.8% Cold- Vehicles Rolled, 11.8% Export 33.63% China Japan 18.8% Bar/Rod, (4.93million 17.2% 15.0% Coated Co
Slide 13: 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 14: Key Strategies
Key Strategies 1 Solidify domestic market, expand export sales channels, and develop new market with customers 2 Integrate group resources and develop green energy businesses 3 Research and develop advanced products and applied technology for increasing chain value of steel industry 4 Elaborate on e
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 • 0.87 bn: Expense saving from nationalization of equipment and spare parts 2017 • 1.14 bn: Improvement of manufacturing process and promoting effectiveness and efficiency 3.96 • 0.61 bn: Reduction of energy consumpti
Slide 18: Value Corporate Social Responsibility and achieve sustainable operation
Value Corporate Social Responsibility and achieve sustainable operation Awards and Honours • 2018.02 CSC was ranked as RobecoSAM Gold Class Sustainability leaders 2018 in the steel industry. 1 • 2017.12 CSC was the winner of best IR in materials sector of IR Magazine Awards － Greater China 2 2017. •