China Steel Corporation · TWSE:2002
China Steel — Investor Presentation (June 2014)
20 slides from China Steel's investor presentation, Jun 26, 2014
Slide 1: China Steel Corporation
China Steel Corporation June 26, 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 Honours
Company Overview: Awards and Honours • 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) Q3 2014 CSCI Project (0.15 mmt) APRIL 2014 NGO Line (1.2 mmt) OCT 2013 March 2013 Q1 2013 CSVC Project HSM #2 BF Expansion (1.5 mmt) (2.5 m
Slide 7: Performance- Consolidated operating results
Performance- Consolidated operating results Amount: NT$ million Item 2013 2014.1Q *2014.1~5 Consolidated Operating Revenue 347,829 92,416 154,191 Consolidated Operating Income 24,553 4,726 9,300 Consolidated Income 23,207 5,073 9,362 Before Income Tax *preliminary result 6
Slide 8: Performance-Sales Revenue Breakdown
Performance-Sales Revenue Breakdown Unit：NTD Thousands Item 2013 2014.1Q 2014.1~5 1 Steel products 287,827,717 76,290,064 126,925,505 Non-steel industry 2 34,435,437 8,899,661 14,864,816 materials 3 Construction 16,219,774 4,400,755 7,784,674 Transportation and 4 5,042,379 1,784,167 2,967,809 servic
Slide 9: Performance-CSC group Segment revenues and operating results
Performance-CSC group Segment revenues and operating results Unit：NTD Thousands Adjustment Ocean Freight 2014.1Q Steel Forwarding Others and Total Elimination Revenues from external customers $ 75,285,794 $ 327,921 16,801,815 $ - $ 92,415,530 Inter-segment revenues 15,583,602 4,212,252 6,906,872 ( 2
Slide 10: Performance- consolidated basis
Performance- consolidated basis Consolidated Income Statement Units: NT$ millions IFRS 2013 2013.1Q 2014.1Q Revenues 347,829 88,461 92,416 Gross profit 37,280 9,087 8,109 Gross margins 10.72% 10.27% 8.77% Profit before tax 23,209 5,679 5,073 Net profit 18,354 4,878 4,277 Attributable to Owners of th
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 12/31/2013※ 03/31/2014※ Debt 206,337 255,206 299,578 312,393 362,630 365,108 Debt/Equity 78.22% 88.43% 95.99% 102.26% 113.55% 112.51% Asset 470,126 543,808 611,686 617,892 681,999 689,6
Slide 12: Performance- Historical EPS and dividends paid
Performance- Historical EPS and dividends paid (in NTD per share) Dividend 122 87 85 87 85 132 86 83 85 84 85 85 88 payout(%) 6.00 5.00 0.50 0.35 4.00 0.30 0.35 0.30 3.00 0.50 3.90 2.00 3.75 3.50 0.43 3.00 1.40 0.15 2.78 1.01 0.33 1.01 0.15 0.70 0.20 1.99 0.800.20 0.40 0.10 1.00 1.30 0.82 1.86 3.94
Slide 13: Sales (CSC standalone)
Sales (CSC standalone) 2014.1Q CSC sales volume totaled 2.38 million metric tons Domestic/Export sales volume breakdown of 2014.1Q Hot- Rolled, Cold- Semi 26.0% Rolled, Product, 20.1% Export 35.99% Vehicles 2.5% (0.86million metric tons) China Japan21.5% 26.3% Bar/Rod, Coated 21.3% Plate, Products,
Slide 14: Sales (CSC +DSC:HRC)
Sales (CSC +DSC:HRC) 2014.1Q sales volume (CSC & HRC of DSC) totaled 3.25 million metric tons Domestic/Export sales volume breakdown of 2014.1Q Semi Hot- Product, Rolled, 1.8% 45.9% Vehicles Bar/Rod, Cold- China Rolled, Export 38.81% Japan20.2% 15.5% Plate, 14.7% (1.26million 20.0% Coated 8.7% metri
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$30.5mm in China Steel Precision Materials to acquire 70% of the Chartered Capital. Capacity: 19,000 metric tones China Changshu Baoshunchang Steel Processing Co., Ltd
Slide 18: Increase the supply chain value of steel-related industries by developing advanced products and technology
Increase the supply chain value of steel-related industries by developing advanced products and technology and green manufacturing process Co-development for value-added products R&D alliances Total est. expenditure Industry R & D Alliance (US$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