China Steel Corporation · TWSE:2002
China Steel — Investor Presentation (November 2016)
20 slides from China Steel's investor presentation, Nov 16, 2016
Slide 1: China Steel Corporation
China Steel Corporation November 16 & 17, 2016 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, 2015 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 Honours
Company Overview: Awards and Honours • 2016.11 Sustainable Group Award, British Standards Institution. 1 • 2016.01 CSC was ranked as RobecoSAM 2016 Steel Industry Silver Class Sustainability leaders. 2 • 2015.12 Green Enterprise Award, British Standards Institution. 3 • 2015.11 CSC received “Ten Mos
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) Dragon Blast Furnace Dragon Electric Arc Furnace China Steel (0.2 mmt) MAY 2015 CSCI Project (0.15 mmt) APR 2014 5.0 5.0 5.0 NGO Line MAR 2013 Q1 201
Slide 7: Performance- Consolidated operating results
Performance- Consolidated operating results Amount: NT$ million Item *2016.9 *2016.3Q *2016.1~3Q Consolidated Operating Revenue 23,384 73,593 210,884 Consolidated Operating Income 2,604 9,220 18,422 Consolidated Income 2,761 8,825 16,674 Before Income Tax *preliminary result 6
Slide 8: Performance-Sales Revenue Breakdown
Performance-Sales Revenue Breakdown Unit：NTD Thousands Item 2016.3Q 2016.1~3Q 1 Steel products 58,835,037 167,701,254 Non-steel industry 2 7,281,122 21,404,390 materials 3 Construction 5,286,059 14,671,603 Transportation and 4 1,546,468 5,491,148 service 5 Others 644,544 1,616,086 Sales returns and
Slide 9: Performance-CSC group Segment revenues and operating results
Performance-CSC group Segment revenues and operating results Unit：NTD Thousands Adjustment & 2016. 1~3Q Steel Others Total Elimination Revenues from external $ 164,885,474 $ 45,999,007 $ -$ 210,884,481 customers Inter-segment revenues 42,187,124 29,207,916 ( 71,395,040) - Segment revenues $ 207,072,
Slide 10: Performance- consolidated basis
Performance- consolidated basis Consolidated Income Statement Units: NT$ millions IFRSs 2015.3Q 2016.3Q 2015.1~3Q 2016.1~3Q Revenues 67,694 73,593 222,060 210,884 Gross profit 4205 12,846 21,327 28,731 Gross margins 6.21% 17.46% 9.60% 13.62% Profit before tax 1,295 8,825 11,902 16,674 Net profit 1,1
Slide 11: Performance: financial review (Consolidated Basis)
Performance: financial review (Consolidated Basis) Units: NT$ millions 12/31/2011 12/31/2012 12/31/2013※ 12/31/2014※ 12/31/2015※ 9/30/2016※ Debt 299,578 312,393 362,630 348,049 357,414 345,495 Debt/Equity 95.99% 102.26% 113.55% 103.99% 111.44% 106.33% Asset 611,686 617,892 681,999 682,737 678,139 67
Slide 12: Performance- Historical EPS and dividends paid
Performance- Historical EPS and dividends paid (in NTD per share) Dividend 87 85 87 85 132 86 70 102 85 84 85 85 88 payout(%) Cash Dividend 67 102 76 74 78 78 78 64 66 70 74 105 70 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 2.78 1.01 0.33 0.70 0.20 1.01
Slide 13: Sales (CSC standalone)
Sales (CSC standalone) 2016.1~3Q CSC sales volume totaled 8.17 million metric tons Domestic/Export sales volume breakdown of 2016.1~3Q Hot-Rolled, Cold-Rolled, 23.0% 15.2% Vehicles Export 30.96% Billet/Slab , Coated Products, (2.53million Japan 16.3% 19.2% metric tons) China 14.9% 23.1% Bar/Rod, 18.
Slide 14: Sales (CSC & BF products of DSC)
Sales (CSC & BF products of DSC) 2016.1~3Q sales volume (CSC & BF products of DSC) totaled 11.36 million Domestic/Export sales volume breakdown of 2016.1~3Q metric tons Hot-Rolled, 38.8% Cold- Billet/Slab, Rolled, 19.7% Vehicles 10.9% Export 36.60% China Japan 16.3% (4.16million 14.0% Bar/Rod, Coate
Slide 15: Key strategies to achieve the vision
Key strategies to achieve the vision 1 Pass down corporate culture, implement career planning, create LOHAS environment and promote image of CSC Group 2 Improve customer lean service, strengthen strategic partnerships, solidify domestic market and expand sales channels of export 3 Integrate resource
Slide 16: Expand sales channels of export: overseas investment
Expand sales channels of export： overseas investment 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% stake CSC holds 70% of the equity intere
Slide 17: Increase self-sufficiency ratio of raw materials
Increase self-sufficiency ratio of raw materials 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 contract (volume) East Asia United Corp. Partner with partie
Slide 18: Engineering Research Center
Increase the supply chain value of steel-related industries by developing advanced products and technology and green manufacturing process Through an innovative Electric Motor Technology ERC approach, ERCs Physical Properties & Microstructure of Metals ERC Engineering strategically focus R&D Steel S
Slide 19: Improve customer lean service, strengthen strategic partnerships
Improve customer lean service, strengthen strategic partnerships 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 services
Slide 20: Reduce cost continuously, elaborate on energy saving and environmental protection
Reduce cost continuously, elaborate on energy saving and environmental protection, and strengthen occupational safety and health Cost Reduction Performance • 1.53 bn: Expense saving from nationalization of equipment and spare parts • 0.79 bn: Reduction of raw material procurement cost through 2015 n