China Steel Corporation · TWSE:2002
China Steel — Investor Presentation (September 2014)
20 slides from China Steel's investor presentation, Sep 10, 2014
Slide 1: China Steel Corporation
China Steel Corporation September 10, 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 • 2014.01 CSC is awarded RobecoSAM Steel Industry Leader and ranked as Gold Class 1 Sustainability leaders. • 2013.11 CSC was included in CDP ‘s (Carbon Disclosure Project) 2013 Climate Disclosure 2 Leadership Index for Asia ex-Japan, and ranked 5th in Materials
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) APR 2014 NGO Line (1.2 mmt) OCT 2013 MAR 2013 Q1 2013 CSVC Project HSM #2 BF Expansion (1.5 mmt) (2.5 mmt)
Slide 7: Performance- Consolidated operating results
Performance- Consolidated operating results Amount: NT$ million Item 2014.1H *2014.1~7 Consolidated Operating Revenue 184,577 215,220 Consolidated Operating Income 11,680 14,390 Consolidated Income 11,694 14,429 Before Income Tax *preliminary result 6
Slide 8: Performance-Sales Revenue Breakdown
Performance-Sales Revenue Breakdown Unit：NTD Thousands Item 2014.1H 2014.1~7 1 Steel products 151,892,836 177,384,517 Non-steel industry 2 17,689,004 20,784,501 materials 3 Construction 9,560,285 10,865,961 Transportation and 4 3,412,582 3,897,706 service 5 Others 2,022,469 2,287,191 Sales returns a
Slide 9: Performance-CSC group Segment revenues and operating results
Performance-CSC group Segment revenues and operating results Unit：NTD Thousands Adjustment and 2014.1H Steel Others Elimination Total Revenues from external $ 149,502,605 $ 35,074,572 $ - $ 184,577,177 customers Inter-segment revenues 32,328,753 22,104,885 ( 54,433,638) - Segment revenues $ 181,831,
Slide 10: Performance- consolidated basis
Performance- consolidated basis Consolidated Income Statement Units: NT$ millions IFRSs 2013.1H 2014.1H Revenues 173,156 184,577 Gross profit 19,017 18,532 Gross margins 10.98% 10.04% Profit before tax 12,210 11,694 Net profit 10,235 9,973 Attributable to Owners of the corporation 8,678 8,782 Non-co
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※ 06/30/2014※ Debt 206,337 255,206 299,578 312,393 362,630 376,939 Debt/Equity 78.22% 88.43% 95.99% 102.26% 113.55% 118.87% Asset 470,126 543,808 611,686 617,892 681,999 694,0
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) 2014.1H CSC sales volume totaled 4.80 million metric tons Domestic/Export sales volume breakdown of 2014.1H Vehicles Export 35.60% (1.71 million metric tons) China Japan 20.2% 26.4% Coil center Others 21.9% Piping Wire-rope 1.0% Re-rolling Hand tools 1.4% S.E. Asia 31.5% Other
Slide 14: Sales (CSC +DSC:HRC)
Sales (CSC +DSC:HRC) 2014.1H sales volume (CSC & HRC of DSC) totaled 6.54 million metric tons Domestic/Export sales volume breakdown of 2014.1H Vehicles China Japan 18.7% Export 38.99% (2.55million 19.7% metric tons) Coil center Others 22.2% Wire-rod 0.7% Piping Hand tools 1.1% Re-rolling Ship-build
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 On March 21st 2014, the Board of China China Directors passed the resolution of Invest US$30.5mm in China Steel Precision PCMI Metal Products (Chongqing) Co., Ltd investing the coil center in Kunshan,. Materials to acquire
Slide 18: Increase the supply chain value of steel-related industries by developing advanced products and technology
Increase the supply chain value of steel-related industries by developing advanced products and technology and green manufacturing process Co-development for value-added products R&D alliances Total est. expenditure Industry R & D Alliance (US$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, and strengthen workplace safety
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