China Steel Corporation · TWSE:2002
China Steel — Investor Presentation (September 2018)
19 slides from China Steel's investor presentation, Sep 6, 2018
Slide 1: China Steel Corporation
China Steel Corporation September 6, 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 2018.1H *2018.7 *2018.1~7 Consolidated Operating Revenue 193,714 35,015 228,729 Consolidated Operating Income 14,807 3,180 17,986 Consolidated Income 13,880 3,180 17,060 Before Income Tax *preliminary result 4
Slide 6: Performance-Sales Revenue Breakdown
Performance-Sales Revenue Breakdown Unit：NTD Thousands Item 2018.1H *2018.7 *2018.1~7 1 Steel products 160,872,260 28,780,097 189,652,357 Non-steel 2 industry 18,473,614 3,199,747 21,673,361 materials 3 Construction 9,493,961 2,007,591 11,501,552 Transportation 4 3,438,449 617,579 4,056,028 and serv
Slide 7: Performance-CSC group Segment revenues and operating results
Performance-CSC group Segment revenues and operating results Unit：NTD Thousands Adjustment & 2018.1H Steel Others Total Elimination Revenues from external $ 155,069,002 $ 38,645,075 $ - $ 193,714,077 customers Inter-segment revenues 47,090,937 25,706,739 ( 72,797,676) - Segment revenues $ 202,159,93
Slide 8: Performance- consolidated basis
Performance- consolidated basis Consolidated Income Statement Units: NT$ millions IFRSs 2017 2017.1H 2018.1H Revenues 347,012 167,849 193,714 Gross profit 39,339 18,732 22,133 Gross margins 11.34% 11.16% 11.43% Profit before tax 23,403 9,814 13,880 Net profit 20,431 8,686 13,053 Attributable to Owne
Slide 9: Performance: financial review (Consolidated Basis)
Performance: financial review (Consolidated Basis) Units: NT$ millions 12/31/2013 12/31/2014 12/31/2015 12/31/2016 12/31/2017 6/30/2018 Debt 362,630 348,049 357,414 346,542 335,764 355,004 Debt/Equity 113.55% 103.99% 111.44% 105.15% 101.15% 107.06% Asset 681,999 682,737 678,139 676,122 667,716 686,5
Slide 10: Performance- Historical EPS and dividends paid
Performance- Historical EPS and dividends paid (in NTD per share) Dividend 86 70 102 82 81 85 87 85 85 87 88 85 132 payout(%) Cash Dividend 78 78 78 64 66 70 74 105 67 70 102 82 81 payout(%) 6.00 5.00 0.35 4.00 0.30 0.30 3.00 0.50 3.75 2.00 3.50 0.43 2.78 1.01 0.33 1.01 0.15 1.99 1.00 0.700.20 1.30
Slide 11: Sales (CSC standalone)
Sales (CSC standalone) 2018.1H CSC sales volume totaled 5.54 million metric tons Domestic/Export sales volume breakdown of 2018.1H Hot-Rolled, 26.8% Cold-Rolled, 14.8% Vehicles Export 29.90% Billet/Slab, Coated (1.66 million 14.0% China Japan 18.8% Products, metric tons) 14.9% 22.4% Bar/Rod, 20.4% P
Slide 12: Sales (CSC & BF products of DSC)
Sales (CSC & BF products of DSC) 2018.1H sales volume (CSC & BF products of DSC) totaled 7.50 million Domestic/Export sales volume breakdown of 2018.1H metric tons Hot-Rolled, Billet/Slab, 42.3% 13.9% Cold- Vehicles Rolled, 11.0% Export 32.95% China Japan 19.1% Bar/Rod, (2.47million 17.9% 15.0% Coat
Slide 13: Secure stable sources of raw materials and semi-products through strategic investments
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 Changzhou China Steel Precision Materials China China Steel Precision Metals Kunshan Co., Ltd. PCMI Metal Products (Chongqing) Co., Ltd Co., Ltd. CSC holds 70% of the equity int
Slide 16: Integrate group resources and develop green energy businesses
Integrate group resources and develop green energy businesses Sing Da Marine Structure Corporation • Capacity: 50 jacket substructures/year. • Schedule: to finish the construction at the end of 2019 and start production in 2020. • Capital: NTD$6.842 billion with D/E ratio 50%, CSC holds 100% of shar
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. Co-Development Engineering Advanced Specially Alloy ERC, cooperating Research Center with National Tsing Hua University with Academic Forging Roll Forming ERC, c
Slide 18: 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 19: Value Corporate Social Responsibility and achieve sustainable operation
Value Corporate Social Responsibility and achieve sustainable operation Awards and Honours • 2018.05 CSC was ranked top 5% in TWSE listed companies in the 4th (2017) Corporate Governance 1 Evaluation. • 2018.02 CSC was ranked as RobecoSAM Gold Class Sustainability leaders 2018 in the steel industry.