CSC — Investor Presentation 2021

Nov 17, 2021

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中鋼公司 CSC CSC Group Joint Conference

November 24, 2021

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Agenda Carbon Neutrality & 1 Sustainable Development 2 CSC Operation and Development Strategies 3 Steel & Raw Material Dynamics Appendixes: Sales Analysis, Financial Performance and Dividend Policy

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 current beliefs and upon management’s 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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Dedicated Unit to Promote Decarbonization 1

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Board
of Director
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Established on Feb. 2021, led by the Chairman

Task Force on Energy Saving ~~& Carbon~~ Reduction and Carbon Neutrality

Sustainability C ~~ommittee~~

Corporate Governance and Integrity Management Unit	Sustainable Environmental Development Unit	Energy Efficiency Raising Unit		Hydrogen Metallurgy Unit
Employee Care and Social Participation Unit	Risk Management Unit	Carbon Sequestration Technology Unit		Low-carbon Energy Technology Unit
				Information
				Collection and Communication
				Unit

Do ESG well  Get good EPS ! (CSC was included in the Emerging Market Index of Dow Jones Sustainability Index (DJSI) for the 10th consecutive year)

Commit to take practical actions on environmental protection and change

Set the short, mid, and long term target for carbon reduction

Action plan for 2025 carbon reduction: 314 scheduled action plan for carbon reduction with total reduction reaching 880,988 tons CO2e/yr

Plan for 2050 Carbon Neutrality Pathway

Cultivate in the Green Industry

• Green Power (offshore wind farm & solar energy)

• Circular Economy (Co-production of steel and chemicals & District Energy Integration)

• Green transportation (MRT & 4 LRT)

1 Carbon Neutrality Pathway 2025 2030 2050 Base year: 2018

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Carbon Neutrality
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7% reduction
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22% reduction
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Facing the challenges of technology, resource, and capital, resulted from the lack of mature technology and green hydrogen resources, as well as the required equipment modification. Currently evaluating the possibility of investment in the production of hot briquetted iron (HBI) through green hydrogen in Australia in order to cut CO2 emissions. Established a hydrogen metallurgy research center at National Cheng Kung University with 10 academia and research institutions such as NCKU, NTU, NTHU, etc. and 18 scholars and experts 5 for the basic research for mid-term carbon reduction programs.

1 Co-production of Steel and Chemicals

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2023 2025 2040
Phase 0：Pilot Line Phase 1：Demo Line Phase 2：Commercial Line
Build and run the pilot line for Construct the Demo line with Build the commercial line at Dalinpu
feasibility study during 2021~2023 CPC/CSCC in 2025 Industrial Park in 2040.
CO/CO2 CO
CO Methane
Methanol
Methanol
CO
2
Ethylene Acetic
Acid
A co-production strategy with chemical industry
which is to produce chemicals by capturing and Insole material
purifying CO/CO22 in BF & BOF gases from Low carbon
CSC and to achieve a “win-win goal” for End application EVA
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A co-production strategy with chemical industry which is to produce chemicals by capturing and purifying CO/CO22 in BF & BOF gases from CSC and to achieve a “win-win goal” for carbon emission as well as reducing production cost and creating 80 billion of production value.

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• 1 Sustainable Development Green transportation

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CSC Group holds 51% of shares

• The Kaohsiung MRT Red and Orange lines started regular service from 2008.

• CSC contracted light rail projects to increase the usage rate of public transportation, thereby achieving the goal of carbon reduction.

• 2014 turnkey project for Danhai Light Rail & 2016 turnkey project for 2[nd] phase of Kaohsiung Light Rail

• 2017 construction project for mechanical and electrical system of Ankeng Light Rail

	Inauguration	2020 Transport volume (passengers)
Kaohsiung MRT	2008.03	48.57 million
Kaohsiung LRT	2015.10	2.32 million
Danhai LRT	2018.12	3.49 million
Total		54.38 million

CO2

• 2020 Carbon reduction performance

• Carbon reduction reached 46 thousand tons CO2e.

• Equivalent to the CO2 absorption of .

• 118 Taipei Daan Park

Note: KRTC provides O&M service to Kaohsiung Light Rail and Danhai Light Rail; the carbon reduction is calculated based on the total transport volume, the

average length of the travel, and the difference in carbon emissions per kilometer between public transportation and automobiles.

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• 1 Sustainable Development Water diversification strategies

Water recycled rate 98.4% (higher than the 65% required by the government) Diversify water sources: Reclaimed water Desalination Tap water, , 2018 2019 18% Fengshan 2018 Creek 33% reclaimed 67% water Fengshan The first company Donggang Rivertap water東港溪自來水 Creek reclaimed in Taiwan to use 82% water Tap water 100%

2018 The first company in Taiwan to use reclaimed water

Tap water

Future

2023 (e) desalinated 16% water Linhai 11% reclaimed 16% water Tap water Linhai reclaimed 43% water

2022

16% water Linhai End of 2021 Linhai reclaimed 11% Tap water reclaimed 16% Linhai reclaimed 33% water Tap water water Tap water Linhai reclaimed 32% 3.68 Fengshan 51% 41% 43% water water will be Creek 41% Fengshan Creek reclaimed water reclaimed water Fengshan Creek introduced (alternative reclaimed water (alternative obligation for Hofa (alternative obligation obligation for Industrial Park for Hofa Industrial Park Hofa Industrial included) included) Park excluded) Target: Continue to develop an integrated seawater desalination process with low costs and evaluate the possibility of using 13,000 cubic meters of desalinated water/day. 8

ESG Performance 1

Strengthen the disclosure of ESG and climate related information. Got distinguished result in evaluation.

• CSC was included in 108 ESG funds according to the statistics by Bloomberg.

• CSC has the highest environmental score among Asian steelmakers in Bloomberg’s ESG evaluation which was also ranked 6[th] among global steelmakers.

• Enhance R&D and continue the efforts towards enhancing differentiated advantages.

• As of the end of 2020, CSC has 874 of accumulated valid patents and was ranked top 10 among domestic companies and 1[st] in traditional industry in the patent acquirement for the 7[th] consecutive year by Intellectual Property Office, Ministry of Economic Affairs.

Ranked 1st in the patent acquirement in the traditional industry for the 7th consecutive year

Passed TIPS verification Complete the intellectual property management system

• In order to effectively manage intellectual property resources and reduce intellectual property risks, CSC introduced the Taiwan Intellectual Property Management System (TIPS), which effectively improves the patent quality, protects R&D results, and reduces the risk of business secret leakage and intellectual property infringement.

Note: CSC has passed the review and the list is expected to be officially announced on the TIPS website at the end of December.

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2

1 Strategy Concept, 2 Operation Strategies, 3 Core Ca abilities 10 Measures p ,

Establish specialized core competitiveness for the next 50-year development. Promote to High Value-added Steel Mill Develop Green Energy Business Develop into a high value-added steel mill through intelligent innovation. Expand new business opportunity in promising industry through engagement in the green energy field.

Leading Technology Cutting-edge Manufacture Customer Trust 77 action projects were proposed in accordance with the abovementioned 10 measures. Put effort in the execution to fulfill the vision 11 . of becoming a high value-added steel mill

2 Develop Advanced Premium Steel

Definition of Advanced Premium Steel

Products with ”High Technical Content, High Profitability, High Industrial Benefit.”

Focus on 8 items (Meet customers' needs & Industry trend)

	'
Focus on 8 items (Meet customers needs & Industry trend) High- Quality Forging Steels Superior Hand Tool Steels High Performance Structural Steels Steel for Green Energy Ultra-High Strength and Toughness Steels Advanced Alloy Steels Cross- Generational Automotive Steels Ultra- High Efficiency Electrical Steels Year 2021 2022 2023 2024 2025 Advanced Premium Steel proportion target (%) (APS sales volume target divided by total sales volume target, which does not include leeways, secondary and salvage products, and semi-products) 4.2% 5.5% 6.9% 8.4% 10.0%	Focus on 8 items (Meet customers needs & Industry trend)

Sales volume of the 8 items of APS to achieve 10% in 2025 and 20% in 2030.

Become the customer's favorite material and establish an irreplaceable trust relationship. In 2021Q1~Q3, the sales volume of APS reached 461.1 thousand tons, accounting for 7.31% of total orders (target 4.2%), 9.00% of sales revenues, and 12.83% of gross profits. 12

2 Ultra-High Efficiency Electrical Steels

Low iron loss

Performance requirement Quality requirement of ES of motor Energy saving Low iron loss Small volume Thin thickness High horsepower High magnetic flux

High magnetic Permeability flux

• Key material supplier to the motor of EV. Mainly supplies to American and European EV makers, actively contacts the supply chain of European, Chinese and Japanese makers, and cooperates with domestic customers to enter the supply chain of commercial electric bus.

• Expected shipments to the global EV market is over 100 thousand tons in 2021. Developed self-bonding electrical steel (SBES) with thin film thickness and rapid cure features, 2,000 tons of which is supplied as materials for new EV motor to an American EV maker. Expected usage is 3,000 tons in 2021, which is expected to double or triple year by year.

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High
strength
Thickness
Target Status quo Top grade of standard product
Traditional method Advanced method
Interlock Welding Bonding
Decreased Increased
High magnetic flux,
magnetic flux core loss Low core loss
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Cross-Generational Automotive Steels 2

High Strength Weight-reducing and energy saving High Ductility Easily processing

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Ductility
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year

CSC has developed a series of high-strength automotive steels: BH steel, HSLA, DP and AHSS, whose strength is 4.3 times of the regular mild steel and able to decrease the vehicle weight by 35%. 254 verifications from 27 automakers has been acquired. The sales volume of auto steel in 2020 reached 430 thousand tons.

Keep developing the cross-generational AHSS with higher strength and ductility to improve the energy saving and crashworthiness of vehicles.

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• 2 Introduce AIOT BF Iron-making Smart Center

BF

• Core process of steel mill

 Large volume, high temperature and high pressure V:3400 m[3] T>2000 ℃、 P>3.4 atm、

Reduction reaction of iron ore is unobservable.

AI calculations, Value smart modules, innovation decision-making assistance Data collection Big data by sensors collection

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8 smart instructions

Channeling treatment, Equipment condition, Smart burden charging, BF operation, etc.

5 smart indices

Energy Balances, BF condition index, Channeling index, Thermal index, etc.

Developed 27 AI models

Decreasing fuel cost 13million NTD/y Decreasing GHG 2,200 tons/y

5 smart condition monitoring system

Main conveyor monitoring, Burden profile, BF equipment monitoring9 項 Level gauge monitoring, etc. 智 能 9 AI prediction model 預 Tuyere image, 測 Hot metal temperature, 模 Smart hot stove, 組 Stave thickness, etc.

Turn the black box system into a visible, predictable and easily controlled progress by introducing AIOT to improve the stability of blast furnace condition, process efficiency and energy saving benefit. The Smart Center will be introduced horizontally to the 6 blast furnaces in CSC group. 15

2 Cultivate in Green Industry Business –Substructure

CSC Shareholding : 100% Total investment : NTD 6.842 billion Progress:

• .

• Officially commenced operation in Jan, 2020

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 Currently producing the substructures for Orsted - Greater Changhua Offshore Wind Farm Project. The first 100% domestically made substructure was completed in . July, 2021 4 substructures are completed and 2 sets of upper and lower jackets are being welded.

Future order: Signed a contract to produce 31 substructures for

Zhongneng Wind Farm. Started production of components in Oct.

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Cultivate in Green Industry Business–Zhongneng Wind Farm 2

Advantage:

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Location Off the coast of Changhua
#26 Wind
Offshore Distance 10 ~17 km
Farm
Fuhai Wind Farm
#27 Wind
Farm Xidao Wind Farm Area 36.54 km [2]
36.54 km2
#28 Wind 27 ~ 40 m
#29 Wind Farm Depth
Farm
Annual Average
Changhua County Wind Speed [9.66 m/s]
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• #29 Wind Farm is close to the coast, at shallow water, with decent wind resources, and away from the fault and ecologically sensitive area, leading to easier construction and .

• better operation outlook

Total investment: NTD 55 billion

Total installed capacity: 300MW

Progress:

• Obtained preparatory permit , signed power purchase agreement (PPA) with Taipower, .

• and being expected to connect to the grid in 2024

• Signed the contract with Sing Da Marine Structure to procure jacket substructures needed in the wind farm.

• A syndicated loan will be signed with banks recently to ensure the funds for wind farm development.

Power generation(e) : 1.1 billion kwh/yr

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– 2 Cultivate in Green Industry Business solar power

55% 15% CSC group shareholding: 100% 20% 10% Total investment: NTD 4.36 billion (until the end of 2021) Capacity Installed: 84.8MW (until the end of 2020) Operating performance: (until the end of Sep, 2021)

CO2 Equivalent to the Electricity output Revenues from Carbon reduction CO2 absorption of 308 electricity sales around 397 1.418 billion million kwh 155k tons Taipei Daan Park

*Estimated based on the 2020 Taipower electricity carbon emission factor, 0.502 kg CO2e/kwh

Year	2017~2019	2020	2021	Total
Actual Capacity Installed (MW)	83.2	1.6	Under installation	84.8
Electricity Output (100m kwh)	1.25	1.04	0.79(until Sep.)	3.08

Future installation: 3~5MW / yr ; installation target: over 100MW

• Keep developing rooftop PV Systems in CSC group supply chain based on the regulation on users with high power consumption in Renewable Energy Development Act.

• Transform from Type III to Type I renewable energy facility to obtain a license for selling green energy, increasing renewable energy usage of CSC group companies.

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3 Major Steel Market Dynamics & Outlook

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US & EU

• Inflation higher than expected: Supply chain bottlenecks driven by port congestion, China’s power rationing, and chip shortages, coupled with rising wages and the recovery of consumer demand, have caused inflation to be higher than market expectations.

• Supply chain instability drags down demand: EU steel demand is stagnated and buyers stay on the sidelines; Steel price in the US remains high, but the uptrend is not as strong as previously seen.

• Tariff agreement: The US replace Section 232 tariff for EU with quota, benefiting EU's export to the US and steel price in EU.

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Japan

• Inventory increases: The newly announced inventory of flat steels increased to 4.318 million tons, higher than the normal level of 4 million tons, due to the traditional low season and the production cut of automakers.

• Stable domestic demand in 2022: Japanese automakers has planned to resume production in January, 2022. Overall, domestic demand in Japan is stable, but the slightly declining global price may bring uncertainty to the steel market in Japan.

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China

• Continuous tight steel supply: Under the backdrop of carbon neutrality and dual control system on energy consumption and energy intensity policies, the reduction of steel production exceeds expectations. The latest winter production cut policy in 2+26 cities shows that the restriction will not be relaxed going forward.

• Cost remains supported: The costs of coking coal and iron ore remain at a high level, and the end demand is stable. However, it remains to be seen how the government’s price curb policy affects the steel price and market confidence.

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Southeast Asia

• Pandemic is easing and the downstream is resuming production: The COVID-19 pandemic in Southeast Asia is easing. Countries like Vietnam and Malaysia adopted policy that coexists with the coronavirus. Downstream industries such as auto, motorcycle and home appliances have resumed production, driving up the steel demand. The market appears to have stabilized, but the outlook remains to be seen due to the fluctuation of international price.

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3 Major Steel Market Dynamics & Outlook

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Taiwan

• Steady domestic demand and sustained economic growth: With relatively stable pandemic situation in Taiwan, demand for steel structures will be driven up by various constructions such as TSMC’s Kaohsiung plant and approximately 75 billion of investments from the urban renewal project in the No.3 special economic zone in Asia New Bay Area; in addition, the demand for 3C also remains strong, driving up the consumption of galvanized steel. Overall, the economic growth in Taiwan remains steady, supporting the momentum of steel market.

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Prediction on 2022 steel market by international agencies : Demand keeps growing, steel price remains rangebound

• According to the World Steel Association (worldsteel), 2021 has seen a stronger than expected recovery in steel demand. Global steel demand outside China is expected to return to its pre-pandemic level this year. With further progress in vaccinations, steel demand may see an increase of 2.2% to 1,896.4 million tons in 2022.

• According to the report by World Steel Dynamics (WSD), in order to ensure the air quality during the Beijing Winter Olympics in Feb. 2022, the steel production cut policy will be continued until early 2022. The price is expected to rise in 2022Q1 thanks to the steel shortage driven by the supply restriction; however, WSD believes that the market will no longer be in a shortage in the second half of next year, so the steel prices may curb in the second half.

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3

Major Steel Market Dynamics & Outlook

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Global steel market outlook: Demand remains steady; there is no need to be pessimistic about the future market.

• The impact of pandemic gradually alleviates with the growing vaccination rates globally. Considering that the downstream demand for steel is getting steady with the roll-out of infrastructure plan, and the price of raw material remains at a high level, the steel price is expected to be supported.

• With the consistent policy on carbon neutrality, dual control system on energy consumption and energy intensity and steel production cut, steel supply in China is expected to be more constrained. However, the Chinese market is declining recently, and Baosteel also decreased the price in its latest December pricing, impact of which to other Asian markets remains to be seen.

• The steel demand is affected by the supply chain bottleneck driven by port congestion and the chip shortage in this year. The shipping capacity and supply of key components is expected to be improved, boosting the steel consumption outlook.

• Overall, the global steel markets have stabilized from the pandemic impact, and the medium to long-term outlook are promising, but there are still uncertainty in the short-term.

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– 3 Raw material trend iron ore & coking coal

Percentage change of incoming raw material price (compared to Dec. 2020)

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150.59%
160.00%
H1: The iron ore price kept climbing and the
140.00% coking coal price also surged since June.
Q3: The iron ore price started to decline,
120.00%
slightly mitigating the upward trend of costs.
100.00% Q4: The coking coal price soared to new
highs, which offset the decline of iron ore
80.00% price and pushed up the incoming raw
material price again.
60.00% 50.09%
40.00%
11.69%
20.00%
0.00%
202012 202101 202102 202103 202104 202105 202106 202107 202108 202109 202110
-20.00%
Iron Ore Coking Coal Raw Material Cost Contained in Hot Metal 23
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3 Sales Analysis (CSC & BF Products of DSC)

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Sales volume
(10 thousand tons)
CSC DSC Total
500
371
400 363
346 345 340
316 323 328
273
300 264
232 245 249 243 233 238
200
90 84 100 107 96 97 90 90
100
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0

2020.1Q 2020.2Q 2020.3Q 2020.4Q 2021.1Q 2021.2Q 2021.3Q 2021.4Q(E) As the supply of slabs from Nippon Steel’s Wakayama Steel Works reduced since 2021, CSC no longer arranges these slabs and the procurement shifted to Chung Hung Steel, leading to the decrease of CSC’s standalone sales of slabs. However, the sales of finished steel products increased.

Steel demand in 2021 remains at a high level . The market saw correction during the . traditional low season in Q3, and remains cautiously optimistic in Q4 24

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Consolidated Financial Performance 3

Latest operating results

Item	*2021.10	2021.9	MoM	2021.1~10	2020.1~10	YoY
Operating Revenue	43,199	41,982	3%	382,047	254,266	50%
Operating Income	7,861	8,200	-4%	65,964	(2,173)	3135%
Operating Income Margin	18.20%	19.53%		17.27%	-0.85%
Income Before Income Tax	8,650	8,936	-3%	70,583	(2,138)	3401%

Quarterly profits trend

NT$ million

	25 Quarterly profits trend NT$ million Thanks to the increase of both monthly and quarterly pricing, especially the significant price increase in Q2, the ASP increase was larger than that of ASC in the same period. As a result, the profit keeps growing from 2020Q4 to 2021Q3. EPS reached NTD 1.28 in Q3 and NTD 2.88 in Q1~Q3. 12,489 20,758 24,855 13,099 22,102 26,732 12.77% 17.98% 19.79% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% 20.00% - 2,500 5,000 7,500 10,000 12,500 15,000 17,500 20,000 22,500 25,000 27,500 30,000 2021.1Q 2021.2Q 2021.3Q Operating Profit Pretax Income Operating Margin 25	25 Quarterly profits trend NT$ million Thanks to the increase of both monthly and quarterly pricing, especially the significant price increase in Q2, the ASP increase was larger than that of ASC in the same period. As a result, the profit keeps growing from 2020Q4 to 2021Q3. EPS reached NTD 1.28 in Q3 and NTD 2.88 in Q1~Q3. 12,489 20,758 24,855 13,099 22,102 26,732 12.77% 17.98% 19.79% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% 20.00% - 2,500 5,000 7,500 10,000 12,500 15,000 17,500 20,000 22,500 25,000 27,500 30,000 2021.1Q 2021.2Q 2021.3Q Operating Profit Pretax Income Operating Margin 25
	20,000 22,500 25,000 27,500 30,000	25 Thanks to the increase of both monthly and quarterly pricing, especially the significant price increase in Q2, the ASP increase was larger than that of ASC in the same period. As a result, the profit keeps growing from 2020Q4 to 2021Q3. EPS reached NTD 1.28 in Q3 and NTD 2.88 in Q1~Q3. 12,489 20,758 24,855 13,099 22,102 26,732 12.77% 17.98% 19.79% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% 20.00% 2021.1Q 2021.2Q 2021.3Q Operating Profit Pretax Income Operating Margin 25
- 2,500 5,000 7,500 10,000 12,500 15,000 17,500	- 2,500 5,000 7,500 10,000 12,500 15,000 17,500

 EPS reached NTD 1.28 in Q3 and NTD 2.88 in Q1~Q3. 25 25

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Thank you Q & A

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4 Company overview - Business snapshot

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 CSC is the leading Taiwanese steel manufacturer
with integrated production capabilities. CSC Group domestic market share ( 2021.1~3Q )
Crude steel capacity of CSC Group reached
about 16 mmt. 88%
 CSC: 9.9 mmt 26%
50%
 DSC: EAF & No.1&2 BF around 6 mmt
11% 35%
 76% 82%
Dominant position in the domestic market 51% 60%
 39%
Focus on Leading-edge Steel Mill & 26% 27%
green energy business. Hot- Bar/Rod Electro- Plate Cold-rolled Hot-rolled Electrical
中鋼集團 Galvanized Galvanized Steel
Improve the percentage of high-end and
Steel
high-margin products. CSC Dragon Steel Chung Hung
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Steel

Engineering

Industrial Materials

Trading and Service and Logistics Investments

• CSC • CSSC

• CHS • China Ecotek

• DSC • CSMC

• CSC Steel Sdn. • Info-Champ Bhd. Systems

• • CSVC • SDMS

• CSCI

• CSCC

• CHC Resources

• CSAC

• Himag Magnetic

• CSPM

• China Steel Resources

• CSE

• CSGT

• CSMQ

• CSMK

• Gains Investment

• China Steel Security

• CPDC

• CMC

• CSC Solar

• China Steel Power

• KRTC

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4 Standalone Production / Sales Performance

Sales analysis

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thousand tons
2,490 2,432
2,330
67% 66%
64%
Sales Volume
Domestic Sales
2021.1Q 2021.2Q 2021.3Q
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• CSC completed the revamping of No.2 blast furnace in advance at the end of 2020 and caught up with a wave of strong demand.

• CSC operated at full capacity because of the strong market demand in Q1 and Q2.

• The sales volume in Q3 declined slightly, partly because of the rainy season and delay of the export shipping schedule.

2020.1Q sales volume (outsourced slab excluded) is around 2.3 million tons.

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2021.1~3Q Sales value breakdown Production analysis
thousand tons
2,564
2,521
2,480
Billet/Slab, 2% 2,451
Hot Rolled,
Bar, 9%
26%
Plate, 10% Export 33% 2,314
2,214
Wire Rod,
Domestic 67%
16%
Cold Rolled,
37% 2021.1Q 2021.2Q 2021.3Q
Crude Steel Production Product Production
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– CSC standalone 4 Sales Analysis

2021.1~3Q sales volume totaled 7.25 million tons – Sales Breakdown

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Hot-Rolled,
28.0%
Cold-Rolled,
18.3%
Billet/Slab, 3.4%
China
21.5% Japan 14.6%
Bar/Rod, 22.9% Coated Products,
16.7%
Plate, 10.7% Export
Ship-building 0.3% 34.57%
Wire-rope 0.6% 2.51 million Others 34.9%
Hand tools 1.3% Domestic
tons
Vehicles 4.9%
Others 5.2% 65.43%
Piping 5.7% 4.74 million tons
Trader 6.4% S.E Asia 29.0%
Steel structure 7.3%
Re-rolling 12.8%
Coil center 14.0%
Bolts-nuts 17.0%
Direct users 24.5%
0% 5% 10% 15% 20% 25% 30%
30
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• 4 Sales Analysis CSC & BF products of DSC

2021.1~3Q sales volume totaled 10.07 million tons – Sales Breakdown

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Hot-Rolled,
42.2%
Cold-Rolled,
13.2%
China
17.8% Japan 14.9%
Billet/Slab, 8.4%
Coated Products,
12.0%
Plate, 7.7%
Bar/Rod, 16.5% Export
Ship-building 0.3% 36.03%
Wire-rope 0.4% 3.63 million Others 32.6%
Hand tools 1.0% Domestic
tons
Vehicles 3.6%
63.97%
Trader 5.1%
Steel structure 5.7% 6.44 million tons
Piping 7.8% S.E Asia 34.7%
Coil center 11.5%
Bolts-nuts 12.5%
Others 13.1%
Direct users 18.2%
Re-rolling 20.8%
0% 5% 10% 15% 20% 25% 30%
31
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Consolidated Income Statement 4

	IFRSs	Units: NT$ millions	Units: NT$ millions	Units: NT$ millions
		2021.1~3Q	2020.1~3Q	YoY
	Revenues	338,848	227,177	+49%
	Gross profit	69,246	5,860	+1082%
	Gross margins	20.44%	2.58%
	Profit (loss) before tax	61,933	(3,492)	+1874%
	Net profit (loss)	50,125	(3,823)	+1411%
	Attributable to
	Owners of the corporation	44,498	(4,360)	+1121%
	Non-controlling interests	5,627	537	+948%
	Earnings Per Share(NTD)	$ 2.88	($ 0.28)	+1129%

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4

Consolidated Financial Position

Units: NT$ millions

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105.15%
101.15% 100.66%
96.77% 96.86%
83.42%
676,122 667,716 674,527 666,632
678,240
636,083
51.25% 50.29% 49.18% 50.17% 49.20%
45.48%
346,542 335,764 331,729 334,417
312,976 308,462
37.62%
35.71% 34.50%
31.57% 31.95%
254,390 238,426 212,949 229,965 203,225 25.52%
173,098
12/31/2016 12/31/2017 12/31/2018 12/31/2019 12/31/2020 09/30/2021
Asset Debt Net Debt ＊ Debt/Equity Debt/Asset Net Debt/Asset
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• Cash flows from operating activities remains steady; keep paying back debts and reducing debt ratio.

• Keep reducing financial costs by issuing corporate bonds and paying back US dollardenominated debt in recent years.

• Credit rating: Taiwan Ratings twAA- ; Outlook Stable (2021.04.23) Fitch Ratings AA (twn); Outlook Stable (2021.10.18)

＊ 2014~2017 ：

• Net debt = Interest Bearing Debt – cash & cash equivalents – ( financial assets at fair value through profit or loss-current+ available-for-sale financial assetscurrent +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 loss-current+ financial assets at fair value through other comprehensive income-current)

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4

Historical EPS and Dividends Paid

	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020
Dividend payout(%)	85	132	86	70	102	82	81	63	88	600
Cash Dividend payout(%)	74	105	67	70	102	82	81	63	88	600
1.01 0.40 0.70 1.00 0.5 0.85 0.88 1.00 0.5 0.3 0.15 0.10 0.20 1.36 0.38 1.05 1.43 0.49 1.04 1.09 1.58 0.57 0.05 - 1.00 2.00 Cash Dividend Stock Dividend EPS 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 in NTD per share

34