International CSRC Investment Holdings Co. Ltd. · TWSE:2104

International CSRC Investment — China Synthetic Rubber — Q2 2013 Earnings Presentation

32 slides from International CSRC Investment's earnings presentation, Sep 3, 2013

  1. Slide 1: 2Q/2013 Investors' Conference

    China Synthetic Rubber Corporation 2Q/2013 Investors’ Conference September 3 , 2013 CSRC

  2. 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

  3. Slide 3: Agenda

    Agenda  Company Snapshot  2Q/2013 Financial Results  CB Industry Status  Business Outlook/Strategy CSRC 2

  4. Slide 4: Company Snapshot

     Company Snapshot  2Q/2013 Financial Results  CB Industry Status  Business Outlook/Strategy CSRC 3

  5. 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$ 15,735 million USA Phenix 90K MT Market Cap (US$ 525 million) Ponca 135K MT (as of August 23, 2013) Share price a

  6. 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

  7. Slide 7: 2Q/2013 Financial Results

     Company Snapshot  2Q/2013 Financial Results  CB Industry Status  Business Outlook/Strategy CSRC 6

  8. Slide 8: 2Q/2013 Results Highlights

    2Q/2013 Results Highlights (In NT Millions except otherwise noted) 2Q/13 1Q/13 2Q/12 QoQ YoY Net Sales_Carbon Black 4,592 4,452 5,262 3% -13% EBITDA_Carbon Black 88 231 549 -62% -84% (1) Net Income 76 204 341 -63% -78% EPS (NT$) 0.14 0.38 0.63 -63% -78% Gross Margin(%)__Carbon Black 4.2% 6.6% 11.9%

  9. Slide 9: 1H/2013 Results Highlights

    1H / 2013 Results Highlights (In NT Millions except otherwise noted) 1H/13 1H/12 YoY Net Sales_Carbon Black 9,044 10,292 -12% EBITDA_Carbon Black 319 968 -67% Net Income(1) 280 736 -62% EPS (NT$) 0.52 1.37 -62% Gross Margin(%)__Carbon Black 5.4% 10.7% -5.3 ppt ROE(%) 1.7% 4.7% -3.0 ppt ROA(%) 0.7% 2

  10. Slide 10: 2Q/2013 Statement of Comprehensive Income (1/2)

    2Q/2013 Statement of Comprehensive Income (1/2) (In NT Millions except otherwise noted) 2Q/13 1Q/13 2Q/12 QoQ YoY Net Sales 5,690 5,423 6,346 5% -10% COGS 4,820 4,511 5,130 7% -6% Gross Profit 870 912 1,216 -5% -28% Gross Margin 15.3% 16.8% 19.2% -1.5 ppt -3.9 ppt Operating Expense 431 395 437 9% -1

  11. Slide 11: 2Q/2013 Statement of Comprehensive Income (2/2)

    2Q/2013 Statement of Comprehensive Income (2/2) (In NT Millions except otherwise noted) 2Q/13 1Q/13 2Q/12 QoQ YoY Net Income 20 201 362 -90% -94% Other Comprehensive Income (Loss) (45) 243 28 -119% -261% Total Comprehensive Income (25) 444 390 -106% -106% Net income attributed to: Owners of the Comp

  12. Slide 12: 1H/2013 Statement of Comprehensive Income (1/2)

    1H/2013 Statement of Comprehensive Income (1/2) (In NT Millions except otherwise noted) 1H/13 1H/12 YoY Net Sales 11,113 12,318 -10% COGS 9,331 10,028 -7% Gross Profit 1,782 2,290 -22% Gross Margin 16.0% 18.6% -2.6 ppt Operating Expense 826 840 -2% Operating Income 956 1,450 -34% Operating Margin 8.

  13. Slide 13: 1H/2013 Statement of Comprehensive Income (2/2)

    1H/2013 Statement of Comprehensive Income (2/2) (In NT Millions except otherwise noted) 1H/13 1H/12 YoY Net Income 221 788 -72% Other Comprehensive Income (Loss) 198 156 27% Total Comprehensive Income 419 944 -56% Net income attributed to: Owners of the Company 280 736 -62% Non-Controlling Interests

  14. Slide 14: Carbon Black Sales Volume in Recent Years

    Carbon Black Sales Volume in Recent 5 Years Unit: metric ton 600,000 Taiwan China USA India Total 500,000 400,000 300,000 200,000 100,000 0 2008 2009 2010 2011 2012 1H/2013 Taiwan 99,148 102,775 116,430 107,973 99,608 46,098 China 130,706 138,809 139,122 90,968 86,959 39,374 USA 209,880 135,787 188,

  15. Slide 15: Carbon Black Sales / GM

    Carbon Black Sales / GM NT $ Millions 6,000 14% 12% 5,000 10% 4,000 8% 3,000 6% 2,000 4% 1,000 2% 0 0% 1Q'12 2Q12 3Q12 4Q12 1Q13 2Q13 Sales 5,030 5,262 4,516 4,349 4,452 4,592 GM % 9.5% 11.9% 6.9% 4.9% 6.6% 4.2% CSRC 14

  16. Slide 16: Operating Income by Business Units

    Operating Income by Business Units NT $ Millions 3,000 2,294 2,474 2,500 2,000 1,495 1,310 1,500 875 956 1,000 500 0 -500 -1,000 2008 2009 2010 2011 2012 1H/13 Carbon Black -921 -471 -46 198 742 17 Biotech 1,401 1,251 1,464 2,644 2,179 1,224 Energy 755 -496 -318 -578 -476 -282 Others 75 591 395 30 2

  17. Slide 17: 2Q/2013 Statement of Cash Flow

    2Q/2013 Statement of Cash flow (In NT Millions except otherwise noted) 2Q/13 1Q/13 2Q/12 Cash Flows From Operating Activities Income Before Tax 339 442 621 Adjustments to reconcile income to net cash 23 37 (586) provided by operating activities : Net Cash generated from Operating Activities 362 479

  18. Slide 18: 1H/2013 Statement of Cash Flow

    1H / 2013 Statement of Cash flow (In NT Millions except otherwise noted) 1H/13 1H/12 Cash Flows From Operating Activities Income Before Tax 781 1,247 Adjustments to reconcile income to net cash 60 738 provided by operating activities : Net Cash generated from Operating Activities 841 1,985 Cash Flow

  19. Slide 19: Solid Financial Structure

    Solid Financial Structure Leverage Ratios (%) 3 Current Ratio 1.9 2.1 2.1 100% 1.8 2 1.5 1.5 1 80% 0 2008 2009 2010 2011 2012 1H/13 60% 80% Debt Ratio ( L/A) 51% 44.3% 60% 44% 47% 45% 42% 40% 39.5% 40% 33.2% 33.3% 40% 30.6% 30.0% 31.7% 20% 22.2% 20.4% 20.6% 12.6% 0% 20% 10.5% 2008 2009 2010 2011 201

  20. Slide 20: CB Industry Status

     Company Snapshot  2Q / 2013 Financial Results  CB Industry Status  Business Outlook/Strategy CSRC 19

  21. Slide 21: Global Major Carbon Black Makers' Capacity

    Global Major Carbon Black makers’ Capacity MT (‘000) 2,500 2,000 1,500 1,000 500 0 Birla Cabot OEC JB CSRC PCBL SRCE Tokai Source : Notch Consulting Group, 2013 CSRC 20

  22. Slide 22: Major Carbon Black Makers in NA

    Major Carbon Black makers in NA MT (‘000) 500 450 400 350 300 250 200 150 300 100 50 0 Cabot Sid Birla / OEC CCC NHUMO Bridgestone Richardson Columbian Source : Notch Consulting Group, 2013 CSRC 21

  23. Slide 23: Business Outlook – NA

    Business Outlook – NA  Carbon Black Demand and Supply in NA Unit: 000’MT 2012(A) 2013(F) Growth CB Demand 1,672 1,772 5.63% CB Effective Capacity 1,709 1,810 5.58% Surplus 37 38 % 2% 2% Source : Notch Consulting Group, 2013  NA demand for tires continues to improve but is being met by imported tir

  24. Slide 24: 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 23

  25. Slide 25: Business Outlook – India

    Business Outlook – India  Carbon Black Demand and Supply in India Unit: 000’MT 2011Y 2012Y 2013Y(E) 2014Y(E) 2015Y(E) Demand 620 660 693 748 807 Capacity 925 980 1059 1059 1059 Import 70 97 110 120 130 Surplus capacity 375 417 476 431 382 % 38% 39% 41% 37% 32% Source： Company information Growth of

  26. Slide 26: Top Carbon Black Makers in China

    Top 10 Carbon Black makers in China MT (‘000) 900 850 800 750 700 650 600 550 500 450 400 60 350 300 250 200 150 280 100 50 0 江西黑 Cabot 蘇寶化 河北龍 德固賽 CSRC 山东华 北方君 遼濱 山東耐 貓 星 东 威 斯特 CSRC 25

  27. Slide 27: Business Outlook – China

    Business Outlook – China  Carbon Black Demand & Supply in China MT (‘000) Source：Notch Consulting Group, 2013.  China carbon black production increases more than demand, driven by strong exports to Asian countries.  To improve profit, following actions will be taken：  Improve quality and raise y

  28. Slide 28: Expansion Capital Expenditures

    Expansion Capital Expenditures USD $M 50 40 30 41 20 33 31 10 16 15 15 0 2008 2009 2010 2011 2012 2013(E) CSRC 27

  29. Slide 29: Business Outlook/Strategy

     Company Snapshot  2Q / 2013 Financial Results  CB Industry Status  Business Outlook/Strategy CSRC 28

  30. Slide 30: 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. Biotech and Pharmacy 1. Complete ph

  31. Slide 31: Recap of Recent Important Events

    Recap of Recent Important Events • CSRC – Completed REACH registration for China plants 2013/06 • Synpac Kingdom – 2013/06 Nearly complete ophthalmic drug plant construction CSRC 30

  32. Slide 32: Thank You

    €>CsRC Thank You 31

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