Baoshan Iron & Steel Co.,Ltd. 3Q14 Results. October 2014

Transcription

1 Baoshan Iron & Stl Co.,Ltd. Q4 Rslts Octobr 04

2 Disclaimr Th following prsntation distribtd hrwith inclds forwardlooking statmnts. All statmnts, othr than statmnts of historical facts, that addrss activitis, vnts or dvlopmnts that Baoshan Iron & Stl Co.,Ltd.(Baostl) xpcts or anticipats will or may occr in th ftr ar forwardlooking statmnts. Baostl s actal rslts or dvlopmnts may diffr matrially from thos indicatd by ths forwardlooking statmnts as a rslt of varios factors and ncrtaintis, inclding bt not limitd to pric flctations, actal dmand, xchang rat flctations, comptition and othr risks and factors byond or control.

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4 Opration Ovrviw Unit Q4 QoQ YoY JanSp, 04 YoY Rvn billion RMB % 0.% 4.9.0% Cost billion RMB %.5% % Gross Profit billion RMB 4.9.% 9.% % Gross Margin % 0.7.8% 9.8% % Total Profit billion RMB.5 5.% 77.7% % Nt Profit billion RMB.9.9% 97.7% % Nt Profit Margin % % 98.4%.5 6.9% EPS RMB/Shar % 80.9% % BVPS RMB/Shar %.6% % Nt CFO pr shar RMB/Shar % 54.%.5 8.8% ROE (wightd) %.67.9% 97.6% % Lvrag % 46..%.8% 46..8% Bst Prformanc According to CISA,Baostl accontd for 6% of th total profit rgistrd by mdianlarg sizd stl mills, with only % crd stl otpt and 5% sals rvn.

5 HighlightsStl Bsinss Zhanjiang Stl # Blast Frnac main strctr roof saling was finishd ahad of schdl

6 HighlightsStl Bsinss Acqird all 0 thosand tons plat ordr of world s largst LNG projct Yamal (spply Rssia s natral gas to Erop and Asia)

7 HighlightsStl Bsinss Won th bid of TANAP (on of th main sorcs of natral gas to Erop in th ftr) Baostl will spply 70 km UOE pips

8 HighlightsE Commrc In JanSp. mn tons trading volm and thosand rgistrd srs in Shanghai Stl Trading Cntr

9 HighlightsIT Baosight (Clod Srvic and Soltions ) bcam th First ntrpris to acqir National Standardization Qalification Crtification

10 Crd Stl Otpt Unit: million tons Q4 QoQ YoY Otpt 5..6% 0.% Not:Otpt dcrasd QoQ mainly d to #4 blast frnac ovrhal in Baoshan bas sinc Sptmbr.

11 5.56 Sals of Finishd Prodcts Unit: million tons Q4 QoQ YoY Sals % 6.5% Inclding: xport % 7.8% Not:HRC and Plat graspd markt opportnity to boost xport by 0 thosand tons YoY, which contribtd to th larg incras in total xport.

12 Rvn Unit: billion RMB Q4 QoQ YoY Rvn % 0.%

13 Cost Unit: billion RMB Q4 QoQ YoY Cost %.5%

14 Gross Profit % 9.5% 0.7% Unit: billion RMB Q4 QoQ YoY Gross Profit 4.9.% 9.% Gross Margin 0.7%.8% 9.8%

15 Sals Brakdown CRC HRC Plat Tb Othrs

16 Gross Margins by Prodct HRC CRC Othrs Tb.8% 4.8% 4.4% 5.5% Plat 0.6%.7% 5.% JanSp,0 JanSp,04 0.% 4.%.7%

17 Rvn by Bsinss Sgmnts(JanSp). 9. Main Bsinss Unit: billion RMB Rvn Gross Margin YoY Stl Making 9. 0.%.8 ppts Distribtion..4% 0. ppts Not:RMB 0. bn offst btwn sgmnts

18 Rvn by Bsinss Sgmnts(JanSp) Divrsifid Bsinss Unit: billion RMB Rvn Gross Margin YoY Ecommrc % n.a. Chmicals % 0. ppts IT.6 8.6% 4.0 ppts Financ % 0.5 ppts

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20 Macro Economy GDP CPI.% 5.4% 8.4% 9.8% 7.9% 7.8%.%.6%.6%.% 7.% 7.% Q09 Q0 4Q0 Q Q Q 4Q Q JanSp,04 Data sorc: National Bra of Statistics GDP p 7.% YoY in Q, lowst in th past 5 yars. GDP p 7.4% YoY in JanSp, mt xpctation ndr domstic conomy s Nw Normal. Micro stimls policis will contin. CPI p.% YoY in JanSp. CPI p.6% YoY in Sp, lowst in th past 5 yars, p 0.5% MoM, th pric lvl is stabl and mildly incrasing.

21 Dmand and Spply Analysis Spply Crd Stl Otpt and Apparnt Consmption Crd stl otpt was 68 mn tons in JanSp, p.% YoY, growth rat sharply dcrasd. Unit: million tons Otpt 0 YoY Apparnt Consmption 0 0 JanSp,04 JanSp, 04 YoY Otpt % 68.% Nt Export 5 5.9% % MIIT disclosd th scond capacity shtdown list in Agst, targting to clos mn tons iron making capacity. So far, lists hav bn annoncd in 04, which targt 8.45 mn tons iron making and.6 stl making capacitis, rprsnts ovr 00% and 79% of th annal task rspctivly. Crd stl otpt growth slowd down, whil xport incrasd significantly, laving apparnt consmption a ngativ growth. Apparnt Consmption 78 7.% 560.0% Data sorc: National Bra of Statistics, Cstoms statistics

22 In JanSp, stl indstry FAI RMB 59.9 bn, down 5% YoY, inclding privat invstmnt of RMB 89. bn, down.4% YoY. Stl Indstry FAI Unit: billion RMB Dmand and Spply Analysis Spply 5% 5% 5% 5% F b M a y A g N o v F b M a y A g N o v F b M a y A g N o v F b 4 M a y 4 A g 4 Stl Indstry FAI Ytd,YoY

23 Dmand and Spply Analysis Import & Export.5 Monthly Nt Export Unit: million tons In JanSp, China xportd 65 mn tons (+9% YoY); importd mn tons (+5% YoY) of stl prodcts. Nt xport wr 6 mn tons, p 49% YoY. Stl prodcts xport hit historical high at 8.5 mn tons in Sp, p 7% YoY. Jan May Sp Jan May Sp Jan May Sp Jan4 May Sp Data sorc: Cstoms statistics Avrag stl xport pric was 785 USD/ton, down 8.6% YoY. Givn th ovrspplid sitation, xport is xpctd to maintain at high lvl.

24 Dmand and Spply Analysis Dmand(Infrastrctr) FAI Unit: trillion RMB China s ovrall FAI totalld RMB 5.8 trillion in JanSp, p 6.% YoY, contind to slow down JanSp,04 Data sorc: Wind

25 Invstmnt growth slowd to +.5% YoY in JanSp. Th rlaxation of first prchasd hos idntification indicats that govrnmnt has startd to spport ral stat and to carry ot micro stimls. Invstmnt Nw Start and Sals Ara Dmand and Spply Analysis Dmand(Ral Estat) Unit: billion RMB Unit: billion sqar mtrs Data sorc: Wind F b A p r J n A g O c t D c M a r M a y J l S p N o v F b A p r J n A g O c t D c M a r 4 M a y 4 J l 4 S p 4 Invstmnt Growth Ytd,YoY F b A p r J n A g O c t D c M a r M a y J l S p N o v F b A p r J n A g O c t D c M a r 4 M a y 4 J l 4 S p 4 Nw Start Sals

26 Dmand and Spply Analysis Dmand(Ato) Otpt Sals Unit: million nits Unit: million nits JanSp, JanSp, 04 Data sorc: CAAM Otpt and sals wr 7. and 7 mn nits,p 8% and 7% YoY rspctivly in JanSp, growth rat slowd down. Passngr car sals p 0% YoY in JanSp, otprformd commrcial car (down 6% YoY). Nw nrgy atos strong prformanc: otpt and sals p 90% and 80% rspctivly in JanSp. W xpct 04 ato sals to grow at 8%, considring macro conomy condition, ato prchas rstriction tc.

27 Dmand and Spply Analysis Dmand(Hom Appliancs) Washing Machin Rfrigrator Unit: million nits Unit: million nits 00 0% 00 0% 80 0% 80 0% % % 0 0% 0 0% JanSp, 0% JanSp, 0% Airconditionr TV 50 Unit: million nits 50% 50 Unit: million nits 0% 00 0% 00 0% 50 0% 50 0% 0 0% 0 0% JanSp, JanSp, Data sorc: Wind Washing machin and rfrigrator otpt growth dcrasd, whil airconditionr and TV grw fast in JanSp. Ral stat sals dcras will hav a long trm ngativ impact on hom appliancs. Expctd growth rat of whit goods in 04: %(washing machin), %(rfrigrator) and 0%(airconditionr).

28 Volatility trnd in machinry, transportation qipmnt otprformd othr sctors in H, bt sharply dcrasd in Q. Growth is xpctd stabl in 04, indstry avrag %. Val Addd Growth, YoY Dmand and Spply Analysis Dmand(Machinry) Data sorc: National Bra of Statistics 5% 0% 5% 0% 5% 0% 5% 0% 0 A p r J n A g O c t D c M a r M a y J l S p N o v 0 A p r J n A g O c t D c 4 M a r 4 M a y 4 J l 4 S p Gnral Eqipmnt Spcial Eqipmnt Elctrical qipmnt Transportation Eqipmnt

29 Dmand and Spply Analysis Dmand(Ship Bilding) Compltion Unit: million tonnag Compltion, nw ordr and carrying ordr wr 6.06 (5%YoY), 5.49 (+8%YoY) and 55(+6%YoY) mn tonnags rspctivly in JanSp Jan Fb Mar Apr May Jn Jl Ag Sp Oct Nov Dc Dspit th rbond of ship making stl dmand, 04 indstry growth is xpctd ngativ d to ovrspply and firc comptition. Data sorc: CANSI

30 Stl Invntory Social Invntory Unit: million ton Stl Mills Invntory Unit: million ton Jan 年 月 Apr Jl 0 年 8 Oct 月 Jan4 04 年 Apr4 月 Jl404 Oct4 年 8 月 Total Long Prodcts Flat Prodcts Data sorc: Mystl Stl social invntory pakd at 0.9 mn tons in Fb, p 54% Ytd. Dstock sinc March. 0.4 mn tons on Octobr, down 50% sinc th nd of Fb and down 8% YoY. 5 0 年 月 0 年 8 月 04 年 月 04 年 8 Jan/ 月 Apr/ Jl/ Oct/ Jan/4 Apr/4 Jl/4 Oct/4 Data sorc: CISA As transfrrd from social invntory, stl mills invntory was in pward trnd, p 4% YoY and p % Ytd in arly Octobr. Entring 4Q, thr is still room for dstocking d to sasonality.

31 Raw Matrial Platts (6% F) Cok and Scrap Pric Jan Fb Mar Apr May Jn Jl Ag Sp 77.75Oct Nov Dc Jan Fb Fb Mar Mar Apr AprMay May Jn Jl Ag Ag Sp Sp Oct Oct Nov Nov Dc Dc Import iron or 699 mn tons in JanSp, p 6% YoY. Avrag import pric 08 USD/ton, down 6% YoY. Platts dcrasd rapidly in 04, d to th abndant spply, dprssd dmand and port invntory dstocking. Platts rachd 5 yar bottom lvl at in th nd of Sp. By 4 Novmbr, Platts was 77.8, down 4% Ytd and 4% YoY. Cok pric is still dropping and downward trnd is xpctd to contin Avrag 0 Avrag Jan May Sp Jan May Sp Jan4 Jn4 Oct4 Cok Scrap Data sorc: Wind

32 Iron Or Invntory Port Invntory Unit: million ton Port invntory incrasd rapidly and xcdd 00 mn tons in Fb. Growth slowd down rcntly bt rmaind high position, 07 mn tons by Octobr, p % YoY. 0 0 Jan Jn Oct Mar Ag Dc May4 Oct4 Total Astralia Brazil India Data sorc: Mystl

33 Stl Markt HRC, CRC and Rbar Pric CRC Prodcts Pric Jan May Oct Mar Ag Dc May4 Oct4 Jan May Oct Mar Ag Dc May4 Oct4 HRC.0 CRC.0 Rbar HRB400 CRC.0 Galvanizd.0 Prpaintd Silicon 600 Data sorc: Wind D to th wak downstram dmand and losing spport from raw matrial, stl pric was dprssd. Bt bnfitting from th largr dcras in raw matrial cost, stl indstry profit improvd qartr by qartr. Mdianlarg sizd stl mills sals margin was 0.7% in JanSp, otprformd 0 and nmbr of loss making stl mills droppd to 5% of total, down % YoY.

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