CSCC — Investor Presentation 2015

Jul 22, 2015

China Steel Chemical Corp.

July , 2015

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Table of Content

1.The Brief Introduction to CSCC

2.The Introduction of Coal Chemical Industries

3.The Industrial Use for CSCC

4.The New Products Development

~~China Steel Chemical Corp.~~

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1、 The Brief Introduction to CSCC

Chronology of Major Events

• 1.CSCC established in February 1989.

• 2.Plants completed during 1991~1993.

• 3.CSCC IPO listed in Taiwan in November, 1998

• 4.CSCC was awarded “Industrial Excellence Award “ and “National Outstanding SMES Award” in 2000 and 2001.

• 5.CSCC achieved OHSAS 18001 certification during 2001~2008.

• 6.CSCC achieved CNLA in April, 2002. And granted authentication in April 2005 and November, 2008.

• 7.Refined Naphthalene Unit expansion completed in April 2009.

• The capacity 1,400 MT/YR of Green Mesophase Powder Plant completed in January 2010.

• 9.The Light Oil Distillation plant phase 2 completed in April 2010.

• 10.The line G5/G6 of Green Mesophase Powder Plant reaching capacity to 2,600 MT/YR completed during the third

quarter 2011.

• 11.The line G1N/G2N of Green Mesophase Powder Plant reaching capacity to 5,000 MT/YR completed by the end of 2012.

~~China Steel Chemical Corp.~~

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1 、 The Brief Introduction to CSCC

The structure of shareholder

unit： er thousand stocks p

Major shareholder Shares Percentage China Steel Corporation 68,787 29.04% China Synthetic Rubber Corp 11,759 4.96% Fubon Life Insurance Co., Ltd. 7,910 3.34% Ever Wealthy International Corp. 5,827 2.46%

As of: July , 2015

China Steel Chemical Corp.

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1. The Brief Introduction to CSCC

’ ~~Table of academic degree in CSCC s employees~~

Academic Degree Number Percentage Doctor Degree 6 3％ Master Degree 50 27％ Bachelor Degree 93 49％ Junior college and 39 21％ Senior high school Total 188 100％ As of：Dec 31, 2014

~~China Steel Chemical Corp. 5~~

The Brief Introduction to CSCC

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unit：metric tons
Period
2011 2012 2013 2014 2015/1~6
Input
Coal Tar 213,284 203,920 264,578 266,814 134,227
Light Oil 80,921 77,971 93,609 100,930 53,383
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~~China Steel Chemical Corp. 6~~

1、 The Brief Introduction to CSCC

Unit: NT$ millions

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2015
2011 2012 2013 2014
1~6
Revenue 8,915 8,257 8,820 8,904 3,178
Net income
2,247 1,974 2,221 2,189 861
after tax
EPS(NT$) 9.76 8.58 9.60 9.50 3.71
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* The announcement is based on Net income before tax.

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China Steel Chemical Corp.

1. The Relating Product Map of Coal Chemical Industries

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COAL TAR
COKE
COAL
LIGHT OIL
OVEN
COKE
Coke
BREEZE
For Blast
Furnaces
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2. The Relating Product Map of Coal Chemical Industries ~~The Process of the Coal Tar Distillation~~ Products Plant

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PITCH
NAPHTHALENE
CREOSOTE OILS
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2. The Relating Product Map of Coal Chemical Industries

The Process of the Light Oil Distillation Plant

Products
Benzene
Toluene

~~China Steel Chemical Corp.~~

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2. The Relating Product Map of Coal Chemical Industries

The Process of the Coke Breeze Plant

Products

Small size coke Fine size coke L size Coke arge

~~China Steel Chemical Corp.~~

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2. The Relating Product Map of Coal Chemical Industries

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The Process of the Green Mesophase Powder plant

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Soft Pitch
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Heating
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Drying
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Products

Green Mesophase Powder Graphitization

Mesophase Graphite Powder

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The Industrial Use for CSCC

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The Appliance of Soft Pitch

Soft Pitch

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Primary Water and rust
electrode rod proofing materials
Mesophase Pitch
Powder
Hard Pitch
Special
pitch
Electrode binder
Roofing Pitch
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The Appliance of Naphthalene

~~Naphthalene~~

Sulfonated Β-naphthol, Phthalic naphthalene Tobias acid, J- anhydride (PA) formaldehyde acid Mothballs condensates PEN resin Water-reducing Dyestuffs Plasticizer admixture pigment 15

BON-6

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The Appliance of Creosote oils

Creosote oils

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Carbon black

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Wood preservative oil

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Wash oil

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The Appliance of Benzene

~~Benzene~~

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Phenol Styrene

External shell for 3C’s Epoxy resin paint product and sport materials

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Caprolactam

Nylon 6

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Alkyl-benzene detergents

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The Appliance of Coal Tar Pitch

~~Coal Tar Pitch~~

Graphite Block

Lithium Ion Battery

Active Carbon for Supercapacitor

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4. New Products Development

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High Soft Point Pitch (HSP):utilized as wrapping materials to cover carbon for Li-ion Batteries anode or as binder material for fireproofing material.

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High Soft Point Pitch is a special pitch which possesses a soft point higher than 260℃and have high fixed carbon ratio (ca. 80-85%). It is also utilized as carbon fiber precursor, because the production procedure of HSP is similar to the one of carbon fiber procedure.

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Nowadays, the pre-launch sample is provided to customers for testing as wrapping material for Li-ion batteries anode and fireproofing material. Mass production process design had been completed and evaluation of mass product line will be made after market expands.

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4. New Products Development

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The quality of AC is great as Japan leading brand. The AC has already been sold worldwide.

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Due to the expansion of Li-ion batteries anode material, establishing graphitizing factory is planning. Studying abroad techniques of graphitization, evaluation of inductive graphitizing furnace and mass production plan are progressing.

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Thank You