2019 investor conference±鋼法說會英文... · (expressed in millions of new taiwan dollars)...
TRANSCRIPT
2019 Investor Conference
Sep 26,2019
Ticker Symbol :2006
律己.愛智.樂觀律己.愛智.樂觀
Disclosure• The information contained in this presentation and its accompanying announcements,
including its business outlook, financial position and business forecasts, is based oninternal information and external economic developments as a whole.
• The Company’s actual results of operations, financial condition and results ofoperations may differ from the forecasted information, which may be due to variousfactors including but not limited to market demand, changes in various policies andregulations and the overall economic situation, and other factors or risks theCompany can not control.
• The information provided in this presentation reflects the Company’s views about thefuture so far as not expressly or implicitly expressed or warranted as to its correctness,completeness, or reliability. The contents of the presentation, if any changes oradjustments occur in the future, the Company is not responsible for updates oramendments.
• For the convenience of readers, this presentation has been translated into Englishfrom the original Chinese version. If there is any conflict between the English versionand the original Chinese version or any difference in the interpretation of the twoversions, the Chinese-language presentation shall prevail.
Agenda
1. Corporate Profile
2. Financial Performance
3. Key Messages
4. Q&A
Corporate Profile
• Date of incorporation : May 30, 1962
• Date of IPO :July 13,1988
• Issued common stock : 1,004,060 thousand shares
• Number of employees: 1,668
• Head Office:6F., No.9, Sec. 1, Chang-an E. Rd., Taipei City, Taiwan
• Corporate culture :Self-discipline. Love of knowledge. Optimism.
ScrapPig Iron
Billets
Bloom
Beam Blank
Slab
Taoyuan Works
Steel Making
Steel Making
Steel Rolling(1)
Steel Rolling
Steel Rolling
Re-Bar 75萬噸
40萬噸
80萬噸
Annual Capacity/10K metric tons
Steel Rolling(2)
Steel Making Steel RollingSection
Re-Bar60萬噸
75萬噸
140萬噸
125萬噸
100萬噸
Facilities and Products
MiaoliWorks
KaohsiungWorks
Vietnam Works
ScrapPig Iron
ScrapPig Iron Billets
Annual Capacity/10Kk metric tons
Section
Section
Agenda
1. Corporate Profile
2. Financial Performance
3. Key Messages
4. Q&A
2019 2018 %
Operating revenue,net 23,200.40 18,847.38 123.10%
Operating costs (21,265.96) (17,173.53) 123.83%
Gross profit,net 1,934.44 1,673.85 115.57%
Operating expenses,net (1,006.32) (981.78) 102.50%
Operating profits 928.12 692.07 134.11%
Non operating income and expenses 29.26 40.83 71.66%
Income tax expense (240.72) (168.69) 142.70%
Net income 716.66 564.21 127.02%
attributable to owners of parent 711.63 568.40
Non controlling interests 5.03 (4.19)
Earnings per share 0.71 0.57
Gross profit ratio (%) 8.34% 8.88%
Operating profit ratio (%) 4.00% 3.67%
Net profit ratio (%) 3.09% 2.99%
For the six months ended Jun. 30
(Expressed in Millions of New Taiwan Dollars)
Consolidated Statements of Comprehensive Income
(Expressed in Millions of New Taiwan Dollars) AMT % AMT % AMT %
Current assets 22,948.23 48% 22,968.95 47% 18,425.31 41%
Cash and Current financial assets 944.38 2% 1,232.54 3% 1,535.76 3%
Receivable,net 7,028.88 15% 5,042.96 10% 5,181.81 11%
Inventory 13,994.33 29% 15,453.08 32% 10,842.91 24%
other current assets 980.64 2% 1,240.37 3% 864.83 2%
Non current assets 25,202.66 52% 25,589.54 53% 26,841.86 59%
Real properties, plants and devices 20,245.96 43% 20,694.94 43% 20,785.64 45%
other non current assets 4,956.70 9% 4,894.60 10% 6,056.22 13%
Total assets 48,150.89 100% 48,558.49 100% 45,267.17 100%
Current liabilities 17,706.91 36% 17,489.73 36% 15,769.00 35%
Short term loans 11,968.21 25% 13,252.10 27% 9,948.89 22%
other current liabilities 5,738.70 11% 4,237.63 10% 5,820.11 12%
Non-current liabilities 6,826.57 14% 7,058.00 15% 6,052.97 13%
Total liabilities 24,533.48 51% 24,547.73 51% 21,821.97 48%
Total equity 23,617.41 49% 24,010.76 49% 23,445.20 52%
Total liabilities & equity 48,150.89 100% 48,558.49 100% 45,267.17 100%
2019.6.30 2018.12.31 2018.6.30
Consolidated Balance Sheets
(Expressed in Millions of New Taiwan Dollars)
2019 2018
Cash at beginning of period 1,097.98 1,020.46
Cash flows from operating activities 1,457.70 (1,937.59)
Cash flows from investing activities (286.01) (866.41)
Cash flows from financing activities (1,535.77) 3,163.09
Effect of exchange rate changes 55.83 (60.00)
Cash at beginning of period 789.73 1,319.55
Free Cash flows 1,171.69 (2,804.00)
Cash dividends 1,204.87 1,405.69
For the six months ended Jun. 30
Consolidated Statements of Cash Flows
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
2014 2015 2016 2017 2018 2019/1~6
Operating revenue
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2014 2015 2016 2017 2018 2019/1~6
Gross profit
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2014 2015 2016 2017 2018 2019/1~6
Operating income
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2014 2015 2016 2017 2018 2019/1~6
Net income attributable to owners of parent
Historical Operating Results(NT$Millions)
■Earnings per share ■ Dividend per share
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
2.00
2014 2015 2016 2017 2018
每股盈餘 每股股利
(NT$)
Historical Dividend
12
Agenda
1. Corporate Profile
2. Financial Performance
3. Key Messages
4. Q&A
13
Key Messages
1. Improvement of Taoyuan Works’ capabilities
and efficiency
2. THSVC new rolling mill put into production
3. Corporate Governance Performance
Steel Making
Rolling LINE 1
Rolling LINE 2
Improvement of Taoyuan Works’ capabilities and efficiency
130-140萬噸
75-80萬噸
75-80萬噸
Annual Capacity/10K metric tons
63.04
72.93 80.35
89.33 85.00
91.57 88.33
66.85 70.85
92.66
102.37
10K metric tons
Tung Ho Steel’ annual rebar production
Improvement of Taoyuan Works’ capabilities and efficiency
Floor area of building permit(Million m2)
*依1-6月統計數據推估
19.9
31.2
34.132.8
39.838.6
32.6
26.2
29.9
34.0 33.7
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019*
3.90 4.99 5.66 5.73 5.79 6.06 5.65 4.77 4.71 5.23 5.44*台灣鋼筋年需求量(百萬噸)
Improvement of Taoyuan Works’ capabilities and efficiency
Billet
Steel Making Rebar
Section steel
100萬噸 60萬噸
Wire rod coil
Products
40萬噸
THSVC new rolling mill put into production
Annual Capacity/10K metric tons
Annual Demand of long steel products in Vietnam domestic market
THSVC new rolling mill put into production
422 428
489
614
751
810
863
928
2012 2013 2014 2015 2016 2017 2018 2019(估)
10K metric tons
19
• Tung Ho Steel Enterprise Corporation was endowed with the honor
to win the “Traditional Manufacturing – Gold Award” of “TCSA
Taiwan Enterprise Sustainability Award ”, in year 2018。
• It’s the fourth year that Tung Ho Steel Enterprise Corporation has
been evaluated for 6% to 20% in corporate governance evaluation
system from TWSE。
• Tung Ho Steel Enterprise Corporation was included in the “ Taiwan
Stock Exchange Corporate Governance Index 100 ” for two
consecutive years.
Corporate Governance Performance
www.tunghosteel.com