China Steel Corporation · TWSE:2002
China Steel — Investor Presentation (December 2018)
21 slides from China Steel's investor presentation, Dec 11, 2018
Slide 1: China Steel Corporation
China Steel Corporation December 11, 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 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, 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 *2018.10 *2018.1~10 2017.1~10 YoY Consolidated Operating Revenue 36,438 332,883 286,370 +16% Consolidated Operating Income 3,791 28,823 18,737 +54% Consolidated Operating Income 10.40% 8.66% 6.54% Margin Consolidated Income Before
Slide 6: Performance-Sales Revenue Breakdown
Performance-Sales Revenue Breakdown Unit：NTD Thousands Item *2018.1~10 2017.1~10 1 Steel products 276,759,044 236,824,218 Non-steel industry 2 31,795,158 26,693,832 materials 3 Construction 16,013,125 14,711,569 Transportation and 4 5,887,549 5,519,233 service 5 Others 2,428,325 2,621,075 Sales retu
Slide 7: Performance-CSC group Segment revenues and operating results
Performance-CSC group Segment revenues and operating results Unit：NTD Thousands Adjustment & 2018.1~3Q Steel Others Total Elimination Revenues from external $ 238,118,685 $ 58,327,004 $ - $ 296,445,689 customers Inter-segment revenues 72,327,939 39,898,164 ( 112,226,103) - Segment revenues $ 310,446
Slide 8: Performance- consolidated basis
Performance- consolidated basis Consolidated Income Statement Units: NT$ millions IFRSs 2018.1~3Q 2017.1~3Q YoY Revenues 296,446 256,767 +15% Gross profit 36,351 27,137 +34% Gross margins 12.26% 10.57% Profit before tax 23,594 14,846 +59% Net profit 21,233 12,935 +64% Attributable to Owners of the c
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 9/30/2018 Debt 362,630 348,049 357,414 346,542 335,764 334,217 Debt/Equity 113.55% 103.99% 111.44% 105.15% 101.15% 98.04% Asset 681,999 682,737 678,139 676,122 667,716 675,11
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) 2018.1~3Q CSC sales volume totaled 8.34 million metric tons Domestic/Export sales volume breakdown of 2018.1~3Q Hot-Rolled, 26.3% Cold-Rolled, 15.4% Vehicles Export 29.36% Billet/Slab, Coated (2.45 million 13.5% China Japan 18.2% Products, metric tons) 14.7% 21.8% Bar/Rod, 20.
Slide 12: Sales (CSC & BF products of DSC)
Sales (CSC & BF products of DSC) 2018.1~3Q sales volume (CSC & BF products of DSC) totaled 11.29 million Domestic/Export sales volume breakdown of 2018.1~3Q metric tons Hot-Rolled, Billet/Slab, 41.6% 13.9% Cold- Vehicles Rolled, 11.4% Export 32.43% China Japan 18.6% Bar/Rod, (3.66million 17.3% 15.3%
Slide 13: Sales (CSC & BF products of DSC)
Sales (CSC & BF products of DSC) Sales Volume (10 thousand tons) CSC DSC Total 450 370 386 382 379 384 400 356 354 367 350 300 250 200 150 100 50 0 2017.1Q 2017.2Q 2017.3Q 2017.4Q 2018.1Q 2018.2Q 2018.3Q 2018.4Qe 12
Slide 14: 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 15: 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 16: Solidify domestic market, expand export sales channels, and develop new market with customers
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., Co., Ltd. PCMI Metal Products (Chongqing) Co., Ltd Ltd. CSC holds 70% of the equity int
Slide 17: 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 equity ratio 50%, CSC holds 100% of s
Slide 18: 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 been developing products and technologies with National Cheng Kung University. Industry and Results of Phase 1: Products like AHSS Co-Development automotive steel and marine steel, an
Slide 19: Research and develop advanced products and applied technology
Research and develop advanced products and applied technology for increasing chain value of steel industry High Grade ES Applications Electrical vehicles High efficiency motors thickness: 0.35~0.25 mm Tesla-model S, X, 3 IE3/IE4 36,000 MT shipments Ultra high expected in 2018 Volkswagen- thickness:
Slide 20: 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 21: Value Corporate Social Responsibility and achieve sustainable operation
Value Corporate Social Responsibility and achieve sustainable operation Awards and Honours • 2018.09 CSC was included in the Emerging Market Index of Dow Jones Sustainability Index (DJSI) for 1 the 7th consecutive year. • 2018.05 CSC was ranked top 5% in TWSE listed companies in the 4th (2017) Corpo