China Steel Corporation · TWSE:2002
China Steel — Investor Presentation (March 2014)
20 slides from China Steel's investor presentation, Mar 18, 2014
Slide 1: China Steel Corporation
China Steel Corporation March 18, 2014 0
Slide 2: Table of Contents
Table of Contents •Company Overview 2 •Performance 6 •Financial Review 10 •EPS & Dividends (common stock) 11 •Sales 12 •Strategy 14 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, 2013 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: Awards and Honors
Company Overview: Awards and Honors • 2013.11 The ROC Enterprise Environmental Protection Award, EPA, Executive 1 Yuan. Only 19 enterprises received the Award. • 2013.11 CSC’s 2012 CSR report receives the “Best Report Award of the Manufacturing Industry” by TAISE. Also CSC’s sustainable development
Slide 6: 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) (0.2 mmt) Q2 2014 CSCI Project (0.15 mmt) MAY 2014 NGO Line (1.2 mmt) OCT 2013 March 2013 Q1 2013 CSVC Project HSM #2 BF Expansion (1.5 mmt) (2.5 mmt
Slide 7: Performance- Consolidated operating results
Performance- Consolidated operating results Amount: NT$ million *February *Accumulated Item *2013 2014 of 2014 Consolidated Operating Revenue 347,829 28,559 60,872 Consolidated Operating Income 24,553 1,264 2,943 Consolidated Income 23,207 1,510 3,009 Before Income Tax *preliminary result 6
Slide 8: Performance-Sales Revenue Breakdown
Performance-Sales Revenue Breakdown Unit：NTD Thousands February, Accumulated Item 2013 2014 of 2014 1 Steel products 287,827,717 23,727,131 50,439,754 Non-steel industry 2 34,435,437 2,732,950 5,773,396 materials 3 Construction 16,219,774 1,432,845 3,078,759 Transportation and 4 5,042,379 500,244 1,
Slide 9: Performance-CSC group Segment revenues and operating results
Performance-CSC group Segment revenues and operating results Unit：NTD Thousands Ocean Adjustment 2013/1~3Q Steel Freight Forwarding CSCC Others and Elimination Total Revenues from $ 212,184,125 $ 1,372,340 $ 6,673,123 $ 40,186,254 $ - $ 260,415,842 external customers Inter-segment 36,832,139 11,133,
Slide 10: Performance- consolidated basis
Performance- consolidated basis Consolidated Income Statement Units: NT$ millions IFRS 2013.Q3 2012.Q3 2013.1~3Q 2012.1~3Q Revenues 87,260 83,812 260,416 274,421 Gross profit 8,931 4,273 27,948 13,920 Gross margins 10.23% 5.10% 10.73% 5.07% Profit before tax 5,828 1,647 18,039 4,914 Net profit 4,284
Slide 11: Performance: financial review (Consolidated Basis)
Performance: financial review (Consolidated Basis) Units: NT$ millions 12/31/2009 12/31/2010 12/31/2011 12/31/2012 09/30/2013※ Debt 206,337 255,206 299,578 312,393 360,788 Debt/Equity 78.22% 88.43% 95.99% 102.26% 115.81% Asset 470,126 543,808 611,686 617,892 672,309 Debt / Asset 43.89% 46.93% 48.98%
Slide 12: Performance- Historical EPS and dividends paid
Performance- Historical EPS and dividends paid (in NTD per share) Dividend 122 83 85 84 85 87 85 85 88 132 87 85 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 1.40 0.15 2.78 1.01 0.33 1.01 0.15 1.99 0.800.20 0.40 0.10 1.00 1.30 1.86 3.94 5.26 4.83 3.56 4.4
Slide 13: Sales (CSC standalone)
Sales (CSC standalone) 2013 CSC sales volume totaled 9.48 million metric tons Domestic/Export sales volume breakdown of 2013 Hot- Rolled, Cold- Semi 25.8% Rolled, Product, 20.8% Vehicles Export 34.97% 3.2% (3.32million metric tons) China Japan20.6% 25.0% Bar/Rod, Coated 21.4% Products, Others 20.2%
Slide 14: Sales (CSC +DSC:HRC)
Sales (CSC +DSC:HRC) 2013 sales volume (CSC & HRC of DSC) totaled 12.36 million metric tons Domestic/Export sales volume breakdown of 2013 Hot- Semi Rolled, Product, 43.1% 2.5% Vehicles Cold- China Japan19.7% Export 36.33% Bar/Rod, Rolled, (4.49million 21.8% 16.4% 15.9% Plate, metric tons) Coated 8.
Slide 15: Key strategies to achieve the vision
Key strategies to achieve the vision 1 Secure self-sufficiency in raw materials through strategic upstream investment 2 Strengthen sales channels through overseas investment 3 Increase the supply chain value of steel-related industries by developing advanced products & technology and green manufactu
Slide 16: Secure self-sufficiency in raw materials through strategic upstream investment
Secure self-sufficiency in raw materials through strategic upstream investment Major raw materials Semi-products Ferroalloy Acquired 5% in Dongbu Metal Co Major raw materials ($47.8bn WON, approximately US$43.9mm) Iron ore and coking coals are secured by long-term contract (volume) East Asia Unite
Slide 17: Strengthen sales channels through overseas investment
Strengthen sales channels through overseas investment New Asia Project China China PCMI Metal Products (Chongqing) Co., Ltd Invest US$30.5mm in China Steel Precision Materials to acquire 70% of the Chartered Capital. Capacity: 19,000 metric tones China Changshu Baoshunchang Steel Processing Co., Ltd
Slide 18: Increase the supply chain value of steel-related industries by developing advanced products
Increase the supply chain value of steel-related industries by developing advanced products and technology and green manufacturing process Co-development for value-added products R&D alliances Total est. expenditure Industry R & D Alliance (US$mm) Fasteners High value-added fasteners 2.4 Development
Slide 19: Enhance client relationship and networks through value-added services
Enhance client relationship and networks through value- added services Engineering and Technical Customer services Others services Real-time information Domestic and oversea Plant Construction services of order status consulting services regarding Technical Consulting Applied technology ser
Slide 20: Implement cost reduction measures, enhance energy-saving & environmental protection
Implement cost reduction measures, enhance energy-saving & environmental protection, and strengthen workplace safety Cost Reduction Performance • 2.07 billion: Use of low cost raw material and reduction of procurement cost 2012 • 1.47 billion: Cogeneration/ Provide saturated steam 6.03 billion and i