CSC — Investor Presentation 2018

Oct 30, 2018

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China Steel Corporation

November 1[st] , 2018

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Sustainability, our STEEL commitment. http://www.csc.com.tw/csc/hr/csr/index.htm

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• Global Steel Market Analysis

• Sales Analysis

• Operation and Development Strategies

• Dividend Policy

• Appendixes: Financial Status & Performance

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1

Safe Harbor Statement

This presentation may contains forward-looking statements. All statements other than historical and current fact, without limitation, including business outlook, predictions, estimates, are forward-looking statements.

Such statements are based upon management’s current beliefs and expectations and are subject to various risks, uncertainties and other factors that could cause actual outcomes and results to differ materially.

We caution readers not to place undue reliance on forward-looking statements as these statements speak only as of the date they are made, and we disclaim any obligation to, update or alter any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law or regulation.

This cautionary statement is applicable to all forward-looking statements contained in this presentation.

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•
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- Global Steel Market Analysis the US & EU

• The US market sees downward correction after prices soaring for months.

Prices in the US peaked in July and August after imposing steel tariffs under Section 232 on steels and started to decrease since September. Although US mills claim the price has reached the bottom and will increase in the near future, local downstream users are still in a wait and see mode and expect the price will go down further.

• Steel demand in the EU remains flat, while limited effect of provisional safeguard measures is expected. European price is supported by the safeguard measures. However, predatory priced imports and the lower-thanexpected demand growth remain the main concerns going forward.

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- Global Steel Market Analysis Japan

• High Inventory :

Due to consecutive typhoons, pre-stocking of steel mills for equipment revamping, and conservative forecast for global markets.

• Tight Supply-demand Balance Due to Robust Demand ：

• and Tight Upstream Supply Domestic flat steel consuming industry performs well and supply side is affected by production line failures and natural disasters.

• Market Outlook ：

• The post-disaster reconstruction would raise potential demand, but the lack of manpower supply may affect the releasing schedule.

• .

• Demand should remain stable with some softening expected

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•
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- Global Steel Market Analysis ASEAN

• ：

• Upstream Supply Increases in Southeast Asia Southeast Asia shows strong demand growth potential, and new expansion projects are expected to replace imports with local supplies.

• ：

• Continuous Growth in Auto Industry Both sales and production volume of automobile and motorcycle in Thailand and Indonesia has been growing this year compared to last.

• Market Outlook ：

• Although the HR price was weak in Q3, the market still remains cautiously optimistic towards Q4 with the support of winter output cuts in China.

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- Global Steel Market Analysis China

• ： Steel Price Remains High The market price of HR coils has been at historically high levels, comparing to the same period, throughout the year.

• ： Steady Inventory Consumption Steel inventory remains relatively low, seeing no signs of destocking by cutting price.

• ： Limited Supply The steel market is still supported by the limited production even though the detailed cutting rates will be set by local authorities.

• Market Outlook ： The steel price is expected to fluctuate narrowly at a high level in Q4 owing to positive and negative factors such as low inventory, limited production and the US-China trade war.

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- Global Steel Market Analysis Taiwan

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Oct-18 YoY Price
change (NTD)
23300
21300
PLT +1,700
23200
WR +3,000 20200
HR +1,800 20900 22600
CR +1,700 19600 21300
GI +2,000
18000 19800
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Sources: company data

• Plate/ Bar and Rod ：

• Plate ： Shipbuilding demand has recovered and plate consumption is expected to be boosted gradually by the demand from infrastructures, building constructions and substructures.

• Bar/Rod ： Downstream customers’ export orders show stable outlook, owing to strong economic growth in the US and EU, NTD depreciation and transfer of orders from China.

• Flat Products ：

• Steel export of re-rollers hit a bottleneck as a result of the US & EU trade barriers. CSC proactively assists customers to transfer sales into other markets.

• Domestic spot price is expected to stay supported through the recovery of construction industry, stable demand of automobiles and home appliances, and reduction in imports.

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- Global Steel Market Analysis Conclusion

• The World Steel Association (worldsteel) projects global steel demand will reach 1,658 Mt in 2018, an increase of *2.1% over 2017. In 2019, the global steel demand will further grow by 1.4% to 1,681 Mt.

• ： The real global growth rate considering the adjustment of production supplied by illegal induction furnaces in China in 2017.

• Steel prices in the US & EU rangebound at a high level benefiting from trade protectionism; however, local downstream users being in a wait and see mode and lower-priced imports remain the curbing factors for steel price.

• Spot price in Asia experienced slight downward correction recently because of predatory pricing of imports from Russia and India. However, with productions reduced by natural disasters in Japan and output restrictions in China, the price is expected to stabilize.

• Benefiting from NTD depreciation and the increase in domestic steel demand, the price outlook for 2019 Q1 in Taiwan is cautiously optimistic.

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- Sales (CSC & BF products of DSC)

2018.1~3Q sales volume (CSC & BF products of DSC) totaled 11.29 million metric tons

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2018.1~3Q sales volume (CSC & BF
Domestic/Export sales volume breakdown of 2018.1~3Q
products of DSC) totaled 11.29 million
metric tons
Hot-Rolled,
41.6% Vehicles
Billet/Slab,
13.9% Cold-
Rolled,
11.4% China 17.3% Japan 18.6%
Coil center Export 32.43%
Bar/Rod,
15.3% Coated Piping (3.66million
Products,
Plate, 6.9% 10.9% metric tons) Others 23.1%
Wire-rope 0.5%
Hand tools 0.7%
Re-rolling
Ship-building 1.1% Domestic
Bolts-nuts
Vehicles 2.8%
67.57% S.E. Asia 41.0%
Trader 3.6%
Steel structure 4.3% Ship-building (7.63million
Piping 7.0% metric tons)
Bolts-nuts 10.8%
Coil center 11.0%
Direct users 15.2%
Others 20.5%
Re-rolling 22.5%
0% 5% 10% 15% 20% 25% 30%
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(CSC & BF Products of DSC) Sales Analysis

Sales Volume (10 thousand tons)

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CSC DSC Total
450
386 382 379 384
400 370 367
356 354
350
300
250
200
150
100
50
0
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2017.1Q 2017.2Q 2017.3Q 2017.4Q 2018.1Q 2018.2Q 2018.3Q 2018.4Qe

• Although the sales volume of CSC Group in 2018.H2 enter a plateau period as a result of the effects of trade barrier from the US and EU, the profit margin is getting higher quarter-byquarter attributed to increasing steel price out of growing global economy.

• For those downstream customers impaired by the trade war, CSC will keep assisting them in transferring sales into other markets and fulfilling their requirements on quality and delivery period.

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Operation and Development Strategies

CSC maps out its 2018~2022 operation and development strategies in steel business based on its vision “We aspire to be a trustworthy steel company of global distinction that pursues growth, environmental protection, energy saving and value-innovation.” as follows:

To pass down corporate culture, implement career planning, create LOHAS environment and promote image of CSC Group;

To improve customer lean service, strengthen strategic partnerships, solidify domestic market and expand sales channels of export;

To integrate resources of CSC Group, integrate related industries and promote synergy of CSC Group;

To research and develop advanced products, materials for defensive, applied technologies, innovate intelligent production and increase chain value of steel industry;

To enhance engineering capabilities of CSC Group, and develop green and rail businesses carefully;

To reduce cost continuously, elaborate on energy saving and environmental protection, strengthen occupational safety and health, and raise value and volumes of CSC Group steel products.

.

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Overseas Production Sites and Sales Channels

Overseas Production Sites and Sales Channels	Overseas Production Sites and Sales Channels
Malaysia CSCSteel Sdn. Bhd. CSC holds 46% of C Capacity: CR 0.48 m including PO, GI 0.1 T S (T China PCMI Metal Products (Chongqing) Co., Ltd Italy Ardemagni SpA India China Steel Corporation India Pvt. Ltd. (CSCI) CSC holds 100% of CSCI Capacity: ES 0.2 mmt Malaysia Tatt Giap Steel Centre Sdn. Bhd. Thaila Thai Comp Thail TSK India Mahindra Auto Steel Private Limited Co., Ltd	SHB mt (CRC 0.24 mmt 7 mmt, PPGI 0.07 mmt) Vietnam CSGT Metals Vietnam Joint Stock Company Vietnam China Steel Sumikin Vietnam Joint Stock Co. (CSVC) CSC holds 56% of CSVC Capacity: 1.2 mmt (CR 0.5 mmt, GA/GI 0.3 mmt, ES 0.2 mmt, PO 0.2 mmt) China Xiamen Chunyuan Precision Mechatronic Co., Ltd China Changshu Baoshunchang Steel Processing Co., Ltd hailand B Coil Center hailand) Ltd. China Qingdao China Steel Precision Metal Co., Ltd China Maruichi Metal Product (Foshan) Co., Ltd Vietnam Hanoi Steel Center Co., Ltd. nd Sumilox any Limited and Steel Co. Ltd. China China Steel Precision Metals Kunshan Co., Ltd. China China Steel Precision Materials Corporation CSC holds 70% of the equity interest Capacity: 8,000mt(Titanium 4,000mt, Nickel Alloy 1,000mt, Die Steel 3,000mt)

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Overseas Investments of CSC group

Co-invest in coil centers with peers and customers through China Steel Global Trading Co.

- Sales Channels CSGT

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Shanghai, China
CSGT(Shanghai) Co., Ltd.
Osaka, Japan
CSGT Japan Co., Ltd.
Kaohsiung, Taiwan
CSGT Headquarter Hong Kong
CSGT Hong Kong Ltd.
Mexico
Ho Chi Minh City, CSGT Mexico Rep. Office
Vietnam
CSGT HCMC Rep.
Office
CSGT(Singapore) Pte.
Ltd. Manila Rep. Office
Singapore
Mumbai, India CSGT(Singapore) Pte. Ltd.
CSGT Trading India Private
Limited.
Jakarta, Indonesia
CSGT(Singapore) Pte. Ltd. Jakarta Rep. Office
Bangkok, Thailand
CSGT(Singapore) Pte. Ltd. Bangkok Rep. Office
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Overseas Subsidiaries:5 ； Representative offices:5

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－ Production Site CSVC & CSCI

 CSVC and CSCI officially started operation in Nov 2013 and May 2015 respectively.

 Operating performance in recent years:

Oeratin erformance in recent ears:	Oeratin erformance in recent ears:	Oeratin erformance in recent ears:
Unit：USD Thousands；tons pg p y
CSVC	2016	2017
OperatingRevenues	432,741	563,428
Profit Before Income Tax(loss)	1,052	1,917
Sales Volume	877,233	883,495

• CSVC may experience worse performance in 2018 due to rising protectionism in the US and Europe, higher utilities cost in Vietnam, depreciation of VND against USD and higher interest rate.

• CSVC’s estimated sales volume reachs 969,000MT in 2018, a 9.7% increase over 2017.

CSCI 2016 2017 OperatingRevenues 4,021,765 7,932,498 ProfitBeforeIncomeTax(loss) (1,085,247) 136,412 Sales Volume 105,632 176,724 Unit：Indian Rupee Thousands；tons	CSCI 2016 2017 OperatingRevenues 4,021,765 7,932,498 ProfitBeforeIncomeTax(loss) (1,085,247) 136,412 Sales Volume 105,632 176,724 Unit：Indian Rupee Thousands；tons	CSCI 2016 2017 OperatingRevenues 4,021,765 7,932,498 ProfitBeforeIncomeTax(loss) (1,085,247) 136,412 Sales Volume 105,632 176,724 Unit：Indian Rupee Thousands；tons
	2016	2017
	4,021,765	7,932,498
	(1,085,247)	136,412
	105,632	176,724

• CSCI may experience loss in 2018 resulting from the deep depreciation of INR against USD.

• CSCI’s estimated sales volume reachs 182,000MT in 2018, a 3% increase over 2017.

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－ Overseas Investment FHS

• Off-take Statistics

Unit ： ten thousand tons

	Item	2017 Realized volume	Jan.~Sep. 2018	Jan.~Sep. 2018	2019 Plan
			Supply*	Realized volume
	HR	13.8	16.2	15.0	24.0
	WR	5.3	8.8	6.9	24.0
	SLAB	1.1	21.5	21.5	60.0
Foreign market		20.2	46.5	43.4	108.0
	HR	2.5	4.5	3.2	planning
Vietnam		2.5	4.5	3.2

*1.FHS decided to offer the available volume by month instead of yearly plan because the launch schedule of No.2 BF had not confirmed yet at the time of drafting the yearly plan.

2.The realized volume here means “booked orders”, and there is some time lag for the final delivery.

• Ex port Destination of FHS HR&WR Products Sold by CSGT

Country Ratio	Malaysia	Indonesia	Thailand	Others
	60%	24%	12%	4%

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Raw Materials Investment

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Major raw materials Semi-products Ferroalloy
East Asia United Corp.
Acquired 20.45% (USD$1.11
bn) of Formosa Ha Tinh Steel
Corporation
Acquired 40.80% of
Acquired 19% of Sakura Hsin Hsin Cement
Ferroalloys Sdn. Bhd. for lime stone
(USD$76 mm)
Acquired 3.68% of 2 subsidiaries of
ArcelorMittal Mines Canada
(investment amount USD$270mm)
Iron
Coal &
Iron ore
Iron Acquired 5% of Sonoma coal project
(investment amount AUD$16.44mm)
Acquired 0.41% of CSN
Mineracao S.A. (investment Acquired 2.5% of Roy Hill iron ore
amount USD$56.13mm) project (investment amount
AUD$315mm)
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Major raw materials

• Iron ore and coking coals are secured by long-term contract (volume)

• Partner with parties in Japan, South Korea, Canada, Australia and Brazil

• Secure lime stone - acquired 40.80% (group shareholding) in Hsin Hsin Cement

Semi-products

• Secure supplies from strategic partnerships and JV’s

• East Asia United Steel Corp.

• NSSMC’s Wakayama plant as a reliable supply source for slab

• Formosa Ha-Tinh Steel Corporation

• As a mutual supply of hot-rolled and slab products.

Ferro-alloy

• Long-term contract to reduce market risks

• Purchased 19% stake in Sakura Ferroalloys Sdn. Bhd.

• Ensures a long-term stable supply of ferro-alloy, and lowers the acquisition cost.

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- Green Energy Business Substructures

Sing Da Marine Structure Corporation

• Capacity: 50 jacket substructures/year.

• Schedule: to finish the construction at the end of 2019 and start production in 2020.

• Capital: NTD$6.842 billion with equity ratio 50%, CSC holds 100% of shares.

• CSC Subsidiaries Included in the Supply Chain

• CSMC ： TP 、 Pin Pile 、 Node

• CSSC ： Node 、 Stabbing Pin 、 Secondary Steel

• CSAC ： Anode

• CEC ： Electric works

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Offshore Wind Farm Substructure Supply Chain Plan
HC
CSMC
CSMC WanChi
CSBC
SC
CTCI TP Qi Ye
CSSC
Le An
Node HC
SC
CSSC
JC Secondary
Wanchi
Steel
Bracing
FEM
RS
CJMI
HM
WanChi LEG
Le An
CSSC
LL
CSAC Stabbin MRY
g
FM Anode CSBC
Potential Domestic Supply Chain list: FHI
CSMC、CSSC、CSAC、CSBC、Formosa Heavy Industries(FHI)、CTCI、Fer Mo(FM)、Rong CTCI
Sheng(RS) 、Cheng Jan(CJMI) 、WanChi 、Far East Machinery(FEM) 、Liang Lian(LL) 、
CSMC CM
Xinguang Steel(XS) 、Ming Rong Yuan(MRY) 、Heng Chang(HC) 、Sheng Chun(SC) 、Jin
Pin pile
Qing(JQ)、Le An、Chang Mao(CM)、Qi Ye。 XS
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#29 Offshore Wind Farm

• Developers: China Steel Corporation, CIP and DGA.

• Plan: Got allocation of 300MW grid capacity for gird connection in 2024.

 Assuming 8MW turbines are used, with installed capacity of offshore 5.5GW(690) wind power of 5.5 GW targeted by 2025, the market demand for 500MW(65) steel from offshore wind 8MW(2) 1200MW(450) 1200MW(450) farm could reach 1.7 614MW(320) 647MW(330) million tons (turbine + 2013 2016 2020 2025 substructures). Resource: Ministry of Economic Affairs

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 Current Status of Offshore Wind Farm Development Current target is to get all the 18 required documents for Establishment Permit. There are still 4 items and 3 parallel investigation documents ongoing. We endeavor to sign the Power Purchase Agreement in this year while the schedule is subject to the reviewing authority .

 Status of the Supply Chain Development

In order to establish Taiwan’s offshore wind industry and avoid overlapping investment, CSC acts as a facilitator in Wind-Team, assists local component manufacturers in improving their capabilities through the development of #29 wind farm, and encourages integration of nearby wind farm developers. For 19 industrial localization items covered in the wind farm development and substructure manufacturing plans, there are total 60 companies joining the team with 24 Tier 1 companies and 40 Tier 2 companies (4 repetitions included).

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In order
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Green Energy Business : Solar Power

In order to put Corporate Social Responsibility into practice and respond to government’s green energy policy, China Steel, together with its’ subsidiaries, including CEC, CSCC, and DSC, has established CSC Solar, a solar energy company. CSC Solar plans to invest TWD 4.36 billion in order to create 80MW electricity capacity .

Planning PV System in CSC Group (80MWp 2017-2019)	Planning PV System in CSC Group (80MWp 2017-2019)
Capacity(kWp)	80,000
Annual Energy Output(kWh)	102,000,000
Require Area(m2)	800,000

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100 million kwh electricity output and NTD 400 million revenue p.a.

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Reduce CO2 emission by 52,900 tons p.a.

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Electricity output is equivalent to the power demand of 1,430 households.

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The effect of CO2 emission reduction equals to the effect of planting 4,831,050 trees.

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-
R&D on High End Products : High Grade ES Applications
Electrical vehicles High efficiency motors
thickness:
0.35~0.25 mm
Tesla-model S, X, 3 IE3/IE4
36,000 MT shipments
expected in 2018 Volkswagen- Ultra high power
(40,000 MT expected in Passat thickness: industrial motors
2019) (Hybrid) 0.50~0.35 mm
High-value home appliance High-end applications Transformer
Commercial
Inverter Servo motors
High speed spindle transformers
Blender Reactor
compressors motors
High speed vacuum
thickness:
thickness: thickness:
Unmanned
0.35~0.15 mm
0.35~0.20 mm Aerial Vehicle 0.35~0.15 mm
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- - R&D on High End Products : Cold Rolled Steel for Vehicle

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- R&D on High End Products : Hot Stamping Steel

• In order to fulfill the growing demand for lightweight and safety from automotive industry, CSC and Engley cooperatively established Honley Auto. Parts Co.,Ltd., which focus on hot stamping die design and parts production in Taiwan. To stay close to the auto parts market, Honley has established production lines in Changchun, Chongqing, and Kunshan successively.

• Honley’s parts demand and CSC's hot stamping steel consumption forecasts are as follows:

Year Parts Demand[CSC's hot stamping steel ] consum tion p 2018e 70K PCS 3,000ton 2019e 4,000K PCS 14,500ton 2020e 6,000K PCS 23,000ton

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- R&D on High End Products ： Aluminum for Vehicle

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Approval Certificates

Outer Hood Inner Hood

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Electric Scooter Bumper

Sales volume in 2018 ： 852 tons in domestic market and 873 tons in overseas market. Products are tested and received 6 certificates from General Motor and 3 from FCA Group.

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- Increasing High End Product Ratio

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High-End Product Ratio
CATEGORY ( ％ )
50
46.98
47 45.76
45.72 45.4
HIGH
PERFORMANCE
44 43.01
41
HIGH
TECHNICAL 38.63 [38.36 ]
CONTENT
38
35
HIGH 2012 2013 2014 2015 2016 2017 2018.09
VALUE-ADDED Accumulated
＊ In early 2017, CSC reviewed and revised the definition of high-end product. The high-
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＊ In early 2017, CSC reviewed and revised the definition of high-end product. The highend product ratio for the past few years is adjusted accordingly.

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- Upgrading Steel using Industries

Increasing value of industrial chain

Broadening differentiation of products

Strengthening partnerships

Developing collaboratively customized products

Promoting Joint Research Laboratories

Enhancing added value of products

Strengthening Early Vendor Involvement and technical marketing

Expanding Cultivating demand of high Alliance for grade steel at Steel Industries terminal market

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Dividend Policy

(in NTD per share)

Dividend payout(%)

Cash Dividend payout(%)

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85 87 85 85 87 88 85 132 86 70 102 82 81
78 78 78 64 66 70 74 105 67 70 102 82 81
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6.00
5.00
4.00
3.00
2.00
1.00
-
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Cash Dividend Stock Dividend EPS
0.35
0.30
0.30
0.50
3.75
3.50
0.43
2.78
0.33
0.15
1.99
0.20
1.30
4.83 3.56 4.49 2.03 1.54 1.01 2.83 1.36 1.01 0.38 0.10 1.05 0.70 1.43 1.00 0.49 0.5 1.04 0.85 1.09 0.88
0.40
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Closing Remarks

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Thank you!

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Appendix1: Consolidated Operating Results

Unit: NTD millions

Item 2017.1~9 *2018.1~9 YoY Consolidated 256,767 296,446 +15% Operating Revenue Consolidated 16,478 25,032 +52% Operating Income Consolidated 6.42% 8.44% Operating Income Margin Consolidated Income 14,850 23,594 +59% Before Income Tax

*preliminary result

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Appendix2: Consolidated Income Statement

IFRSs	Unit: NTD millions	Unit: NTD millions	Unit: NTD millions	Unit: NTD millions
	2017.1H		2018.1H
Revenues	167,849		193,714
Gross profit	18,732		22,133
Gross margins	11.16%		11.43%
Profit before tax		9,814		13,880
Net profit		8,686		13,053
Attributable to
Owners of the corporation		7,087		11,169
Non-controlling interests		1,599		1,885
Earnings Per Share(NTD)		$0.46		$0.72

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Appendix3:

Consolidated Financial Status

12/31/2013 12/31/2014 12/31/2015 12/31/2016 12/31/2017 6/30/2018 Debt 362,630 348,049 357,414 346,542 335,764 355,004 Debt/Equity 113.55% 103.99% 111.44% 105.15% 101.15% 107.06% Asset 681,999 682,737 678,139 676,122 667,716 686,598 Debt/Asset 53.17% 50.98% 52.71% 51.25% 50.29% 51.70% Net Debt＊ 264,285 250,540 269,034 254,390 238,426 228,869 Net Debt/Asset 49.51% 46.88% 39.67% 37.62% 35.71% 33.33% Unit: NTD millions	12/31/2013 12/31/2014 12/31/2015 12/31/2016 12/31/2017 6/30/2018 Debt 362,630 348,049 357,414 346,542 335,764 355,004 Debt/Equity 113.55% 103.99% 111.44% 105.15% 101.15% 107.06% Asset 681,999 682,737 678,139 676,122 667,716 686,598 Debt/Asset 53.17% 50.98% 52.71% 51.25% 50.29% 51.70% Net Debt＊ 264,285 250,540 269,034 254,390 238,426 228,869 Net Debt/Asset 49.51% 46.88% 39.67% 37.62% 35.71% 33.33% Unit: NTD millions	12/31/2013 12/31/2014 12/31/2015 12/31/2016 12/31/2017 6/30/2018 Debt 362,630 348,049 357,414 346,542 335,764 355,004 Debt/Equity 113.55% 103.99% 111.44% 105.15% 101.15% 107.06% Asset 681,999 682,737 678,139 676,122 667,716 686,598 Debt/Asset 53.17% 50.98% 52.71% 51.25% 50.29% 51.70% Net Debt＊ 264,285 250,540 269,034 254,390 238,426 228,869 Net Debt/Asset 49.51% 46.88% 39.67% 37.62% 35.71% 33.33% Unit: NTD millions	12/31/2013 12/31/2014 12/31/2015 12/31/2016 12/31/2017 6/30/2018 Debt 362,630 348,049 357,414 346,542 335,764 355,004 Debt/Equity 113.55% 103.99% 111.44% 105.15% 101.15% 107.06% Asset 681,999 682,737 678,139 676,122 667,716 686,598 Debt/Asset 53.17% 50.98% 52.71% 51.25% 50.29% 51.70% Net Debt＊ 264,285 250,540 269,034 254,390 238,426 228,869 Net Debt/Asset 49.51% 46.88% 39.67% 37.62% 35.71% 33.33% Unit: NTD millions	12/31/2013 12/31/2014 12/31/2015 12/31/2016 12/31/2017 6/30/2018 Debt 362,630 348,049 357,414 346,542 335,764 355,004 Debt/Equity 113.55% 103.99% 111.44% 105.15% 101.15% 107.06% Asset 681,999 682,737 678,139 676,122 667,716 686,598 Debt/Asset 53.17% 50.98% 52.71% 51.25% 50.29% 51.70% Net Debt＊ 264,285 250,540 269,034 254,390 238,426 228,869 Net Debt/Asset 49.51% 46.88% 39.67% 37.62% 35.71% 33.33% Unit: NTD millions	12/31/2013 12/31/2014 12/31/2015 12/31/2016 12/31/2017 6/30/2018 Debt 362,630 348,049 357,414 346,542 335,764 355,004 Debt/Equity 113.55% 103.99% 111.44% 105.15% 101.15% 107.06% Asset 681,999 682,737 678,139 676,122 667,716 686,598 Debt/Asset 53.17% 50.98% 52.71% 51.25% 50.29% 51.70% Net Debt＊ 264,285 250,540 269,034 254,390 238,426 228,869 Net Debt/Asset 49.51% 46.88% 39.67% 37.62% 35.71% 33.33% Unit: NTD millions	12/31/2013 12/31/2014 12/31/2015 12/31/2016 12/31/2017 6/30/2018 Debt 362,630 348,049 357,414 346,542 335,764 355,004 Debt/Equity 113.55% 103.99% 111.44% 105.15% 101.15% 107.06% Asset 681,999 682,737 678,139 676,122 667,716 686,598 Debt/Asset 53.17% 50.98% 52.71% 51.25% 50.29% 51.70% Net Debt＊ 264,285 250,540 269,034 254,390 238,426 228,869 Net Debt/Asset 49.51% 46.88% 39.67% 37.62% 35.71% 33.33% Unit: NTD millions
	12/31/2013	12/31/2014	12/31/2015	12/31/2016	12/31/2017	6/30/2018
Debt	362,630	348,049	357,414	346,542	335,764	355,004
Debt/Equity	113.55%	103.99%	111.44%	105.15%	101.15%	107.06%
Asset	681,999	682,737	678,139	676,122	667,716	686,598
Debt/Asset	53.17%	50.98%	52.71%	51.25%	50.29%	51.70%
Net Debt＊	264,285	250,540	269,034	254,390	238,426	228,869
Net Debt/Asset	49.51%	46.88%	39.67%	37.62%	35.71%	33.33%

Since 2009, CSC group have issued corporate bonds and signed syndicated bank loans for DSC’s expansion project and overseas investments.

＊ 2013~2017 ：

Net debt = Interest Bearing Debt – cash & cash equivalents – ( financial assets at fair value through profit or loss-

current+ available-for-sale financial assets-current +held-to-maturity financial assets-current+ derivative financial assets for hedging-current)

＊ 2018~ ：

Net debt = Interest Bearing Debt – cash & cash equivalents – ( financial assets at fair value through profit or losscurrent+ financial assets at fair value through other comprehensive income-current)

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