Baoshan Iron & Steel Co.,Ltd Full Year Results. April 2012

Transcription

1 Boshn Iron & Steel Co.,Ltd. 2 Full Yer Results April 22

2 Disclimer The following presenttion distributed herewith includes forwrdlooking sttements. All sttements, other thn sttements of historicl fcts, tht ddress ctivities, events or developments tht Boshn Iron & Steel Co.,Ltd.(Bosteel) expects or nticiptes will or my occur in the future re forwrdlooking sttements. Bosteel s ctul results or developments my differ mterilly from those indicted by these forwrdlooking sttements s result of vrious fctors nd uncertinties, including but not limited to price fluctutions, ctul demnd, exchnge rte fluctutions, competition nd other risks nd fctors beyond our control.

3 I. Opertion Results II. Industry Dynmics III.Compny Outlook

4 Production nd Sles unit:million tons YoY Crude steel output % Sles of finished products % including:domestic % export %

5 Sles Brekdown of Finished Products Note:BNA included,unit:million tons

6 Gross ProfitProducts unit:million tons billion Yun Sles Revenue YoY Cost YoY Gross mrgin YoY CRC % % 2.33%.2 ppts HRC % %.86% 6.4 ppts Plte % % 8.86% 7.48 ppts Tube % % 9.45%.82 ppts Stinless steel % %.37%.4 ppts Specil steel %.3 5.%.9%.68 ppts Others % %.%.86 ppts Totl % % 7.33% 6.67 ppts

7 Domestic Mrket Shre 6% 5% 5% 4% 39% 3% 2% 29% 26% 26% 24% 22% 9% 7% % 6% % Pckging steel Tin plte Home pplinces sheet Highstrength mchinery steel Auto sheet HFW pipe Silicon steel Boiler tube Oil explortion tube Ship plte

8 Income Sttement Summry unit:billion Yun YoY Revenue % Cost % Gross profit Gross mrgin% ppts Operting profit Operting mrgin% ppts Net profit Net profit mrgin% ppts

9 Dividend Distribution unit Dividend per shre Yun Dividend/Unconsolidted net income % Dividend/Consolidted net income % Note: 2 dividend is subject to pprovl of shreholders meeting.

10 Finncil Highlights unit:yun YoY EPS % BVPS % Net CFO per shre % Gross mrgin% ppts ROE (weighted)% ppts

11 Solvency nd Liquidity Finncil index unit Chnge Solvency Totl debts/ totl ssets % ppts Current rtio Quick rtio Finncil index unit Chnge Dys of receivbles dy % Liquidity Dys of inventories dy % Csh conversion cycle dy %

12 2 Accomplishments Improve Product Profitbility Auto sheet sles 4.55 million tons, mintining mrket shre of 5%. Reduce Cost Optimize col mix nd lloy mix to reduce the cost. Improve Customer Service Ability Build customeroriented sles mechnism. Strengthen customer technicl support nd coopertion.

13 2 Accomplishments Environment Protection Issue the first Green Purchsing Guideline in domestic steel industry. Cpex Cpex is 6.6 billion Yun in 2.

14 I. Opertion Results II. Industry Dynmics III.Compny Outlook

15 Mcro EconomyInterntionl 2: Developed economies still shdowed in the crisis. Domestic demnd of emerging economies grew fst. Development of min emerging economies slowed down. 22: High possibility of sovereign debt degrding in eurozone. Risk of doubledip recession increses. Globl economy growth slows down to bout 3%.

16 Mcro EconomyDomestic GDP growth, YoY(%) CPI growth, YoY(%) (E) 3 n Feb Mr Apr My un ul Aug Sep Oct Nov Dec Dt source: wind GDP up 9.2% in 2, down.2 ppts YoY due to government mcro control. CPI up 5.4% in 2,.4 ppts bove the trget. GDP growth trget is 7.5% in 22. 2H2 CPI slowed down, trgeting 4% in 22.

17 Demnd nd Supply AnlysisSupply(Crude Steel) Unit: million tons YoY 22E Output % 72 Net export % 35 Apprent Consumption % 69 Crude steel output still grew fst in 2. Dt resource: CISA Dily output peked nerly 2 million tons in une, while grdully decresed in H2. The lowest level ws.66 million tons in November. 28 million tons cpcity ws eliminted in 2, environment complince will be the min criteri in 22. Output growth is expected to slow down to 6% in 22.

18 Demnd nd Supply AnlysisImport & Export Monthly net export million tons (E) Export 48.9 million tons in 2, up 5.% YoY. Dt resource: Wind, MIIT Export nd import re expected 5 nd 5 million tons respectively in 22.

19 Demnd nd Supply AnlysisDemnd(Infrstructure) FAI Yer YoY(%) billion yun Dt source: wind FAI 3.2 trillion Yun in 2, up 23.8% YoY, growth is expected to slow down in the future. Ministry of rilwys plns 5 billion Yun FAI in 22.

20 Demnd nd Supply AnlysisDemnd(Rel Estte) Investment New strt re Sles re 65 2 billion yun b illio n s q u re m e te rs Dt source: wind Due to government policy, growth in housing investment, new strt re nd sles slowed down. Mjor loosening is unlikely for rel estte nd monetry policy in million set socil housing project forms the mjor source of demnd.

21 Demnd nd Supply Anlysis Demnd(Automobile) Output Sles million output YoY% million sles YoY% Dt source: wind Growth significntly slowed down in 2. Growth will be lower thn previous yers, expected 8% in 22. Smller size, lightweight crs, nd rigid demnd in second nd third tier cities still ensure room for growth, but t lower rte.

22 Demnd nd Supply AnlysisDemnd(Home Applince) Output wshing mchine refrigertor irconditioner TV 5 In millions Dt source: wind Industry growth is stble. Demnd growth is expected to slow down in 22 with expirtion of subsidy policies. Airconditioner is expected to grow %, refrigertor nd wshing mchine 5% in 22.

23 Demnd nd Supply AnlysisDemnd(Mchinery) Mchinery industry growth,yoy 5% 45% 4% 35% 3% 25% 2% 5% % 5% % % 25.93% 25.62% 25.6% 29.7% 29.% 27.7% 26.95% 27.8% 26.43% 26.42% nfeb Mr Apr My un ul Aug Sep Oct Nov Dec Dt source: CMIF Mchinery industry hs peked out. In the subindustries:construction mchinery nd rilwy equipment downwrd, ship building in deep recession, import substitution nd nucler power equipment upwrd, col mining equipment flt. Growth rte is expected 5% in 22.

24 Demnd nd Supply AnlysisDemnd(Ship Building) Shipbuilding completion In million tonnge n Feb Mr Apr My un ul Aug Sep Oct Nov Dec Dt source: wind Completion, new order nd crrying order were :77, 36 nd 5 million tonnges respectively in 2, new order down 52% YoY, crrying order down 24% YoY. Oversupply in ship pltes will continue. Industry still in depression, growth rte is expected 5% in 22.

25 Steel Inventory Unit: million tons YoY Chnge % Rebr % Wire % HRC % CRC % Plte % Long product % Flt product % Totl % Dt source: Mysteel Yer end inventory down 2.6% YoY. Inventory climbed to historicl pek of 9 million tons in Feb. 22, mostly long product. Downwrd trend in the end of Q.

26 Iron Ore Inventory Iron ore port inventory 45. Austrlin Brzil Indi million tons n Mr My ul Aug Oct Dec Feb Apr un Aug Oct Dec Feb2 Dt source: Mysteel Iron ore port inventory up 29.3% in 2. Inventory remins high level in 22, 98 million tons in 25 min ports by 3th Mr.

27 Rw Mteril Cost 62% 粉矿 Pltts 价格指数 ( 美元 / 干吨 ) Pltts(62%Fe) 2 225, , , , n r p A 焦炭价格 Coke price l u t c O n 废钢价格 r p A Scrp price l u t c O 2 n 月 2 月 3 月 2 2 年 2 2 年 4 月 5 月 6 月 276, 6 7 月 8 月 9 月 月 227, 2 n Feb Mr Apr My un ul Aug Sep Oct Nov Dec 月 2 月 Dt source: Mysteel Iron ore price peked t 9 USD/ton in 3Q2, dropped to 2 USD/ton in Q4. In 2, import 686 million tons, verge price 64 USD/ton. Iron ore price is expected lower in n r p A l u t c O n r p A l u t c O 2 n

28 Steel Price Unit: Yun/ton 3Mr MoM% YoY% Averge 2 YoY% HRC CRC Plte Wire Rebr Dt source: Mysteel

29 In 2, steel price declined fter rise t first, with more fluctution of long product. Mcro economic growth slows down in 22. Steel consumption growth is expected low. High cost nd low profit remin, industry gross mrgin is expected 23%. Mrket Trend n 9 M r 9 M y 9 u l 9 S e p 9 N o v 9 n M r M y u l S e p N o v n M r M y u l S e p N o v n 2 M r 2 热轧 3. 冷轧. 螺纹 2Ⅲ 级 Dt source: Mysteel n 9 A p r 9 u l 9 O c t 9 n A p r u l O c t n A p r u l O c t n 2 冷轧. 镀锌. 彩涂.476 硅钢 6 HR3. CR. Rebr2III CR. Glvnized. Prepinted.476 Silicon6

30 I. Opertion Results II. Industry Dynmics III.Compny Outlook

31 22 Compny Outlook 22 Pln Highlights Production: iron million tons, steel25.25 million tons; Sles: million tons; Totl revenue: 26 billion Yun; Cost: 96 billion Yun. Promote synergy of production, sles nd reserch; Optimize product inventory mngement; Improve mnufcturing process to reduce the cost; Promote customer technicl service system nd customer oriented mrketing. Generl operting trget:sles revenue 26 billion Yun; Number One nd Only One products sles.6 million tons ; mintin outperformnce in the sector.

32 22 Plnned Sles Unit: million tons 2 % 22E % HRC % % Plte %.86 8% CRC.38 44%.56 47% Tube.5 6%.88 8% Others.84 7% 2.6 9% Stinless steel.35 5%.36 % Specil steel.96 4%.24 % Totl 26.8 % % Note:BNA included; Min chnges in 22 plnned sles: ()Stinless nd specil steel ssets sle completed on st April, which only includes Q sles; (2)Increse from new production line in Meishn Iron&Steel.

33 Stinless & Specil Steel Asset Sle Impct Asset sle profit 9.58 billion Yun. Csh inflow nd lon decrese will reduce finncil expenses by.4 billion Yun. Improve profitbility of the compny (sold ssets loss.54 billion Yun in 2). billion Yun Bse Price 45.9 Including:Csh Instllment Profit 9.58 Including:lnd pprecition Before the sle Impct % Output(million tons) Totl Asset(billion Yun) Revenue( billion Yun ) Net Profit( billion Yun ) Note:Since sle completed on st April, 22, the impct won t be reflected in 2 full yer nd Q22 finncil reports.

34 CAPEX billion Yun E Compny CAPEX is plnned 2.74 billion Yun in 22. Including: Meishn Iron&Steel product nd technicl optimiztion, oriented silicon steel 2nd phse project, new refining fcility in steel mking mill, etc.

35 Mjor Expnsion Projects Project Product Designed Cpcity (million tons) Investment (billion Yun) Completion Meishn product optimiztion HRC 4..5 une/22 Lubo tube project Tube H22 Power plnt unit project. 4Q22 High stndrd nonoriented silicon steel production line Oriented silicon steel 2nd phse project Silicon steel Q23 3Q23 23 GI unit project GI. 4Q24

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