China Steel Corporation · TWSE:2002
China Steel — Investor Presentation (May 2018)
20 slides from China Steel's investor presentation, May 15, 2018
Slide 1: China Steel Corporation
China Steel Corporation May 15, 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 9 •EPS & Dividends (common stock) 10 •Sales 11 •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 2017.4Q *2018.3 *2018.1Q Consolidated Operating Revenue 90,245 33,904 93,390 Consolidated Operating Income 8,443 1,917 6,041 Consolidated Income 8,557 1,994 5,735 Before Income Tax *preliminary result 4
Slide 6: Performance-Sales Revenue Breakdown
Performance-Sales Revenue Breakdown Unit：NTD Thousands Item 2017.4Q *2018.3 *2018.1Q 1 Steel products 75,238,165 28,385,065 77,908,515 Non-steel 2 industry 8,197,899 3,375,133 8,915,040 materials 3 Construction 4,094,954 1,306,370 4,067,249 Transportation 4 1,945,711 655,039 1,772,296 and service 5
Slide 7: Performance-CSC group Segment revenues and operating results
Performance-CSC group Segment revenues and operating results Unit：NTD Thousands Adjustment & 2017 Steel Others Total Elimination Revenues from external $ 280,433,594 $ 66,578,408 $ - $ 347,012,002 customers Inter-segment revenues 83,222,397 49,759,201 ( 132,981,598) - Segment revenues $ 263,655,991
Slide 8: Performance-CSC group Segment revenues and operating results
Performance-CSC group Segment revenues and operating results Unit：NTD Thousands Adjustment & 2018.1Q Steel Others Total Elimination Revenues from external $ 75,351,150 $ 18,038,512 $ - $ 93,389,662 customers Inter-segment revenues 23,229,876 13,016,111 ( 36,245,987) - Segment revenues $ 98,581,026 $
Slide 9: Performance- consolidated basis
Performance- consolidated basis Consolidated Income Statement Units: NT$ millions IFRSs 2017 2017.1Q 2018.1Q Revenues 347,012 82,984 93,390 Gross profit 39,339 9,952 9,610 Gross margins 11.34% 11.99% 10.29% Profit before tax 23,403 5,390 5,735 Net profit 20,431 4,681 5,439 Attributable to Owners of
Slide 10: 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 9/30/2017 3/31/2018 Debt 362,630 348,049 357,414 346,542 335,764 328,888 Debt/Equity 113.55% 103.99% 111.44% 105.15% 101.15% 97.79% Asset 681,999 682,737 678,139 676,122 667,716 665,221
Slide 11: 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 12: Sales (CSC standalone)
Sales (CSC standalone) 2018.1Q CSC sales volume totaled 2.70 million metric tons Domestic/Export sales volume breakdown of 2018.1Q Hot-Rolled, 27.6% Cold-Rolled, 14.1% Vehicles Export 29.88% Billet/Slab, Coated (0.81 million 12.5% China Japan 16.5% Products, metric tons) 15.6% 25.0% Bar/Rod, 20.8% P
Slide 13: Sales (CSC & BF products of DSC)
Sales (CSC & BF products of DSC) 2018.1Q sales volume (CSC & BF products of DSC) totaled 3.67 million Domestic/Export sales volume breakdown of 2018.1Q metric tons Hot-Rolled, Billet/Slab, 43.3% 12.6% Cold- Vehicles Rolled, 10.4% Export 32.91% China Japan 17.4% Bar/Rod, (1.21million 19.9% 15.3% Coat
Slide 14: 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 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 Steel Precision Metals Kunshan Co., China China Ltd. China Steel Precision Materials Corporation PCMI Metal Products (Chongqing) Co., Ltd CSC holds 80% stake CSC holds 70% of th
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 D/E ratio 50%, CSC holds 100% of shar
Slide 18: Research and develop advanced products and applied technology for increasing chain value of steel industry
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 19: 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 20: Value Corporate Social Responsibility and achieve sustainable operation
Value Corporate Social Responsibility and achieve sustainable operation Awards and Honours • 2018.02 CSC was ranked as RobecoSAM Gold Class Sustainability leaders 2018 in the steel industry. 1 • 2017.12 CSC was the winner of best IR in materials sector of IR Magazine Awards － Greater China 2 2017. •