International Csrc Investment Holdings Co. Ltd. · TWSE:2104
International Csrc Investment — China Synthetic Rubber — Q2 2016 Earnings Presentation
40 slides from International Csrc Investment's earnings presentation, Aug 18, 2016
Slide 1: China Synthetic Rubber Corporation 2Q/2016 Investors' Conference
China Synthetic Rubber Corporation 2Q/2016 Investors’ Conference August 18, 2016 1
Slide 2: Disclaimer
Disclaimer The forward-looking statements contained in this presentation are subject to risks and uncertainties and actual results may differ materially from those expressed or implied in these forward-looking statements. China Synthetic Rubber Corporation makes no representation or warranty as to t
Slide 3: Agenda
Agenda Company Snapshot 2Q/2016 Financial Results CB Industry Status Business Outlook/Strategy 3
Slide 4: Company Snapshot
Company Snapshot 2Q/2016 Financial Results CB Industry Status Business Outlook/Strategy 4
Slide 5: Company Snapshot
Company Snapshot Production Capacity of CSRC's Established in Taiwan June, 1973 Carbon Black Business Taiwan Lin-Yuan 120K MT Headquarter Taipei, Taiwan China Maanshan 125K MT IPO in TWSE July, 1986 Ashan 130K MT Chong Qing 30K MT Market Cap NT$ 14,128 million USA Phenix 90K MT (USS 450 million) Pon
Slide 6: CSRC Group Carbon Black Business Overview
CSRC Group Carbon Black Business Overview 6
Slide 7: Pollution Control and Waste Energy Recovery
Pollution Control and Waste Energy Recovery -Environment friendly and broaden revenue sources De-NOx De-Sox Boiler& Steam& Scrubber Electricity PM control Generator Energy Recovery Pollution control would recover would reach high Pollution Energy pollution control standards that Control Recovery cos
Slide 8: Young Organization for plant reactivation
Young Organization for plant reactivation 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 2014.12 Task Led An-Shan ,Lin-Yuan and 2015.02~04 supported Ma-Anshan force teamed up Chong-Qing by new generation Then formally taken over by Task force team What changes? An-Shan 1. Execution & Accountability 2.
Slide 9: Business Outlook/Strategy
Business Outlook/Strategy F. More Focus on Tier-One A. Streamline China Customers Production Operation to Standardize Specific Niched Products of Each E. Expand Export Plant Market and Non-Tire Young Products ORGANIZATION D. Source for More Competitive Feedstock C. Implementation of B. Consolidate G
Slide 10: A. Streamline China Production Operation
A. Streamline China Production Operation Streamline China Production Operation to Standardize Specific Niched Products of Each Plant 100,000 Sales Volume from 3 Plants in China (Continue the Uptrend) 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 2012 2013 2014 2015 2016/H1 2012 20
Slide 11: B. Consolidate Group Technology
B. Consolidate Group Technology 11
Slide 12: C. Implementation of Dynamic Control System
C. Implementation of Dynamic Control System 12
Slide 13: D. Source for More Competitive Feedstock
D. Source for More Competitive Feedstock CHANGE IN NUMBER OF DIRECT SUPPLIER OF FEEDSTOCK Change in Number of Direct Supplier of Feedstock 69% 70% 58% 2014 2015 2016 13
Slide 14: E. Expand Export Market and Non-Tire Products
E. Expand Export Market and Non-Tire Products EXPORT SALES PERCENTAGE Export Sales Percentage 11% 7% 6% 2014 2015 2016/H1 14
Slide 15: F. More Focus on Tier-One Customers
F. More Focus on Tier-One Customers FIRST TIER CUSTOMER PERCENTAGE First Tier Customer Percentage 25% 20% 15% 2014 2015 2016 15
Slide 16: 2Q/2016 Financial Results
Company Snapshot 2Q/2016 Financial Results CB Industry Status Business Outlook/Strategy 16
Slide 17: 2Q/2016 Results Highlights
2Q/2016 Results Highlights 17
Slide 18: 1H/2016 Results Highlights
1H/2016 Results Highlights 18
Slide 19: 2Q/2016 Statement of Comprehensive Income
2Q/2016 Statement of Comprehensive Income 19
Slide 20: 2Q/2016 Statement of Comprehensive Income
2Q/2016 Statement of Comprehensive Income 20
Slide 21: 1H/2016 Statement of Comprehensive Income
1H/2016 Statement of Comprehensive Income 21
Slide 22: 1H/2016 Statement of Comprehensive Income
1H/2016 Statement of Comprehensive Income 22
Slide 23: Carbon Black Sales Volume in Recent Years
Carbon Black Sales Volume in Recent 5 Years MT 23
Slide 24: Carbon Black Sales / GM
Carbon Black Sales / GM 3,000 2,500 2,000 1,500 500 GM% 1Q15 2Q15 3Q15 4Qis 1016 2Q16 3,555 ss Ft UF be 3,077 2,575 2,493 2,639 7.2% 1.9% 3.4% 0.4% 7.1% 3.5% 6% 5% A% 3% 2% 1% 24
Slide 25: Operating Income by Business Units
Operating Income by Business Units 25
Slide 26: 2Q/2016 Statement of Cash flow
2Q/2016 Statement of Cash flow 26
Slide 27: 1H/2016 Statement of Cash flow
1H/2016 Statement of Cash flow 27
Slide 28: Solid Financial Structure
Solid Financial Structure 28
Slide 29: CB Industry Status
Company Snapshot 2Q / 2016 Financial Results CB Industry Status Business Outlook/Strategy 29
Slide 30: Global Major Carbon Black Makers' Capacity
Global Major Carbon Black Makers’ Capacity MT (‘000) Source : Notch Consulting Group, 2016 30
Slide 31: Major Carbon Black Makers in NA
Major Carbon Black Makers in NA MT (‘000) Source : Notch Consulting Group, 2016 31
Slide 32: Business Outlook – NA
Business Outlook – NA MT (‘000) 2013(A) 2014(A) 2015(A) 2016(F) Growth CB Demand 1,637 1,730 1,740 1,800 3.2% CB Effective 2,100 2,100 2,100 2,100 0.0% Capacity Surplus 463 370 360 300 % 22% 18% 17% 14% Source : Notch Consulting Group, 2016 NA market has yet to see obvious positive effect with imple
Slide 33: Major Carbon Black Makers in India
Major Carbon Black Makers in India 33
Slide 34: Business Outlook – India
Business Outlook – India Carbon Black Demand and Supply in India Unit: 000’MT Source : Notch Consulting Group, 2016 The GDP growth in India forecast at between 7% and 7.5% in 2016 Local CB demand is expected to grow at about 7% in 2016. Imports of about 50,000 MT per annum continue mainly from China
Slide 35: Major Carbon Black Makers in China
Major Carbon Black Makers in China MT (‘000) 35
Slide 36: Business Outlook – China
Business Outlook – China Carbon Black Demand & Supply in China Source：Notch Consulting Group, 2016 Tire plants utilization rate has seen some improvements in 2Q16 followed by export volume increase CB price starts to rise in 2Q16 in reaction of coal tar oil price increase and demand recovery from ti
Slide 37: Capital Expenditures
Capital Expenditures US $M 37
Slide 38: Business Outlook/Strategy
Company Snapshot 2Q / 2016 Financial Results CB Industry Status Business Outlook/Strategy 38
Slide 39: Business Outlook/Strategy
Business Outlook/Strategy Carbon black 1. Streamline China production operation to standardize specific niched products of each plant. 2. Consolidate group technology. 3. Source for more competitive feedstock. 4. Further expand export market and non-tire products. 5. More focus on and develop Tier I
Slide 40: Thank You
Thank You @>acsRc
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