China Steel Corporation · TWSE:2002
China Steel — Investor Presentation (June 2017)
19 slides from China Steel's investor presentation, Jun 23, 2017
Slide 1: China Steel Corporation
China Steel Corporation June 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 Item 2016 2017.1Q *2017.1~4 Consolidated Operating Revenue 293,056 82,984 110,871 Consolidated Operating Income 25,432 6,434 8,407 Consolidated Income 21,899 5,390 7,132 Before Income Tax *preliminary result 5
Slide 7: Performance-Sales Revenue Breakdown
Performance-Sales Revenue Breakdown Unit：NTD Thousands Item 2016 *2017.1Q *2017.1~5 1 Steel products 234,621,561 68,210,958 116,219,637 Non-steel industry 2 28,975,673 7,892,734 13,262,249 materials 3 Construction 19,760,229 4,692,135 7,842,623 Transportation and 4 7,254,353 1,524,371 2,625,395 serv
Slide 8: Performance-CSC group Segment revenues and operating results
Performance-CSC group Segment revenues and operating results Unit：NTD Thousands Ocean Freight Adjustment & 2017. Q1 Steel Others Total Forwarding Elimination Revenues from external $ 66,558,164 $ 101,845 $ 16,324,340 $ - $ 82,984,349 customers Inter-segment revenues 19,837,419 3,626,404 7,170,702 (
Slide 9: Performance- consolidated basis
Performance- consolidated basis Consolidated Income Statement Units: NT$ millions IFRSs 2016 2016.1Q 2017.1Q Revenues 293,056 64,959 82,984 Gross profit 39,723 4,171 9,952 Gross margins 13.55% 6.42% 11.99% Profit before tax 21,899 831 5,390 Net profit 19,187 730 4,681 Attributable to Owners of the c
Slide 10: 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※ 3/31/2017※ Debt 312,393 362,630 348,049 357,414 346,542 344,110 Debt/Equity 102.26% 113.55% 103.99% 111.44% 105.15% 103.71% Asset 617,892 681,999 682,737 678,139 676,122
Slide 11: 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 12: Sales (CSC standalone)
Sales (CSC standalone) 2017.1Q CSC sales volume totaled 2.70 million metric tons Domestic/Export sales volume breakdown of 2017.1Q Hot-Rolled, 25.8% Cold-Rolled, 16.3% Vehicles Export 33.47% Billet/Slab, (0.9 million 13.3% China Japan 16.2% Coated Products, metric tons) 16.1% 22.3% Bar/Rod, 19.8% Pl
Slide 13: Sales (CSC & BF products of DSC)
Sales (CSC & BF products of DSC) 2017.1Q sales volume (CSC & BF products of DSC) totaled 3.7 million Domestic/Export sales volume breakdown of 2017.1Q metric tons Hot-Rolled, Billet/Slab, 40.3% Cold- 15.2% Vehicles Rolled, 11.9% Export 34.87% China Japan 18.0% Bar/Rod, (1.29million 15.7% 14.4% Coate
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