International Csrc Investment Holdings Co. Ltd. · TWSE:2104
International Csrc Investment — China Synthetic Rubber — Q4 2012 Earnings Presentation
30 slides from International Csrc Investment's earnings presentation, Mar 29, 2013
Slide 1: China Synthetic Rubber Corporation 4Q/2012 Investors' Conference
China Synthetic Rubber Corporation 4Q/2012 Investors’ Conference March 29, 2013 CSRC
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 4Q/2012 Financial Results CB Industry Status Business Outlook/Strategy CSRC 2
Slide 4: Company Snapshot
Company Snapshot 4Q/2012 Financial Results CB Industry Status Business Outlook/Strategy CSRC 3
Slide 5: Company Snapshot
Company Snapshot Established in Taiwan June, 1973 Production Capacity Taiwan Lin-Yuan 120K MT Headquarter Taipei, Taiwan China Maanshan 125K MT IPO in Taiwan July, 1986 Ashan 155K MT NT$ 17,273 million USA Phenix 90K MT Market cap (US$ 578 million) Ponca 135K MT (as of March 26, 2013) Share price at
Slide 6: CSRC Group Carbon Black Business Overview
CSRC Group Carbon Black Business Overview Anshan Liaoning Ponca Oklahoma Chongqing Maanshan Sunray Anhui Phenix Texas Alabama Deli India Linyuan Kaoshiung 5
Slide 7: 4Q/2012 Financial Results
Company Snapshot 4Q/2012 Financial Results CB Industry Status Business Outlook/Strategy CSRC 6
Slide 8: 4Q/2012 Result Highlights
4Q/2012 Result Highlights (In NT Millions except otherwise noted) 4Q/12 3Q/12 4Q/11 QoQ YoY Net Sales_CB (consolidated) 4,349 4,516 4,504 -4% -3% EBITDA_CB (consolidated) 131 252 153 -48% -14% Net Income 163 614 249 -73% -35% EPS (NT$) 0.31 1.14 0.46 -73% -33% Gross Margin(%)_CB (consolidated) 4.9%
Slide 9: FY 2012 Result Highlights
FY 2012 Result Highlights 2012 2011 YoY (In NT Millions except otherwise noted) Net Sales_CB (consolidated) 19,157 18,747 2% EBITDA_CB (consolidated) 1,348 782 72% Net Income 1,512 1,094 38% EPS (NT$) 2.81 2.03 38% Gross Margin(%)_CB (consolidated) 8.5% 5.7% 2.8 ppt ROA(%) 8.3% 6.0% 2.3 ppt ROE(%) 9
Slide 10: 4Q/2012 Income Statements (Stand alone)
4Q/2012 Income Statements (Stand alone) (In NT Millions except otherwise noted) 4Q/12 3Q/12 4Q/11 QoQ YoY Net Sales 1,164 1,334 1,470 -13% -21% COGS 906 1,021 1,093 -11% -17% Gross Profit 258 313 377 -18% -32% Gross Margin 22.2% 23.5% 25.6% -1.3 ppt -3.4 ppt Operating Expense 58 85 (32) -32% 281% Op
Slide 11: FY 2012 Income Statements (Stand alone)
FY 2012 Income Statements (Stand alone) (In NT Millions except otherwise noted) 2012 2011 YoY Net Sales 5,626 6,107 -8% COGS 4,409 4,441 -1% Gross Profit 1,217 1,666 -27% Gross Margin 21.6% 27.3% -5.7 ppt Operating Expense 337 236 43% Operating Income 880 1,430 -38% Operating Margin 15.6% 23.4% -7.8
Slide 12: Carbon Black Sales Volume in Recent Years
Carbon Black Sales Volume in Recent 5 Years CSRC 11
Slide 13: Sales / GM & PAT-Taiwan
Sales / GM & PAT-Taiwan CSRC 12
Slide 14: Operating Income by Business Units –Consolidated
Operating Income by Business Units –Consolidated CSRC 13
Slide 15: 4Q/2012 Cash flow Statements (Stand alone)
4Q/2012 Cash flow Statements (Stand alone) (In NT Millions except otherwise noted) 4Q/12 3Q/12 4Q/11 Cash Flows From Operating Activities Net Income 163 614 249 Adjustments to reconcile income to net cash 157 (84) 185 provided by operating activities : Net Cash generated from Operating Activities 32
Slide 16: FY 2012 Cash flow Statements (Stand alone)
FY 2012 Cash flow Statements (Stand alone) (In NT Millions except otherwise noted) 2012 2011 Cash Flows From Operating Activities Net Income 1,512 1,094 Adjustments to reconcile income to net cash 678 1,807 provided by operating activities : Net Cash generated from Operating Activities 2,190 2,901 C
Slide 17: Solid Financial Structure
Solid Financial Structure CSRC 16
Slide 18: CB Industry Status
Company Snapshot 4Q / 2012 Financial Results CB Industry Status Business Outlook/Strategy CSRC 17
Slide 19: Major Carbon Black makers' market share
Major Carbon Black makers’ market share others' Birla 26% 22% JB 7% Cabot 21% CSRC 9% Orion 15% Source : Notch Consulting Group, 2012 Nov. CSRC 18
Slide 20: Major Carbon Black makers in NA
Major Carbon Black makers in NA MT (‘000) 300 CSRC 19
Slide 21: Business Outlook – NA
Business Outlook – NA Carbon Black Demand and Supply in NA Unit: 000’MT 2011(A) 2012(F) Growth CB Demand 1,794 1,762 -1.8% CB Effective Capacity 2,075 2,075 0.0% Surplus 281 313 % 14% 15% Source：Notch Consulting Estimate, 2012 Nov. The tire industry has started the year off slow and the replacement
Slide 22: Major Carbon Black makers in India
Major Carbon Black makers in India MT (‘000) MT ('000) 450 400 350 300 250 200 150 100 50 85 0 Phillips Carbon Hi-tech Carbon Himadri CCIL Ralson Carbon Black (Birla) CSRC 21
Slide 23: Business Outlook – India
Business Outlook – India Carbon Black Demand and Supply in India Unit: 000’MT 2011 2012 Growth CB Demand 620 660 6.5% CB Capacity 925 980 5.9% Surplus 305 320 % 33% 33% Source： Company information Slowdown in Indian automobile industry has adversely affected tyre production from December 2012. Benef
Slide 24: Top 10 Carbon Black makers in China
Top 10 Carbon Black makers in China MT (‘000) 60 280 CSRC 23
Slide 25: Business Outlook – China
Business Outlook – China Carbon Black Demand & Supply in China Unit: 000’MT 2011(A) 2012(F) Growth Demand 2,976 3,120 4.8% Capacity 5,600 6,000 7.1% Surplus 2,624 2,880 % 47% 48% Source：Notch Consulting Estimate, 2012 Nov. China carbon black production increases more than demand, driven by strong ex
Slide 26: Expansion Capital Expenditures
Expansion Capital Expenditures USD $M 50 40 30 41 20 33 24 10 16 15 15 0 2008(A) 2009(A) 2010(A) 2011(A) 2012(A) 2013(E) CSRC 25
Slide 27: Business Outlook/Strategy
Company Snapshot 4Q / 2012 Financial Results CB Industry Status Business Outlook/Strategy CSRC 26
Slide 28: Business Outlook/Strategy
Business Outlook/Strategy Carbon black 1. Maintain high utilization, extend profit gains from steam & electricity 2. Develop new technology for better yield and energy saving 3. Source for more competitive feedstock 4. Develop niche market and new applications Biotech and Pharmacy 1. Establish pharm
Slide 29: Recap of Recent Important Events
Recap of Recent Important Events • Synpac Venture Capital – Recognizing one time milestone amount to 2012/11 US$2.5 million. • Continental Carbon India Ltd – Completion of Carcass line 20,000MT capacity de- 2012/12 bottlenecking program. • Continental Carbon India Ltd – Commences of Specialty Engine
Slide 30: Thank You
@>csrRc Thank You 29
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