CSCC — Investor Presentation 2016

Apr 15, 2016

China Steel Chemical Corp.

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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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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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The Brief Introduction to CSCC

The structure of shareholder

unit：per thousand stocks 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.~~ 4

The Brief Introduction to CSCC

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

Academic Degree Number Percentage Doctor Degree 6 3％ Master Degree 59 29％ Bachelor Degree 76 37％ Junior college and 64 31％ Senior high school Total 205 100％ As of：Jan, 2016

~~China Steel Chemical Corp. 5~~

The Brief Introduction to CSCC

	Unit: NT$ thousands	Unit: NT$ thousands	Unit: NT$ thousands	Unit: NT$ thousands	Unit: NT$ thousands	Unit: NT$ thousands	Unit: NT$ thousands	Unit: NT$ thousands	Unit: NT$ thousands
		**2014/1 **	**2014/2 **	2014/3		2014/10	2014/11	2014/12	YTD
	Revenue	863,026	741,066	786,704		717,381	553,649	539,091	8,903,971
OperatingIncome		259,635	215,325	227,866		187,511	114,598	65,958	2,380,954
Net income before tax		268,295	222,259	251,402		193,038	125,325	100,894	2,567,847
Oil Price		102	105	104		86	77	61	96
		**2015/1 **	**2015/2 **	2015/3		2015/10	2015/11	2015/12	YTD
Revenue		522,952	483,543	580,212		472,108	313,467	379,087	5,737,199
OperatingIncome		119,655	99,624	136,281		100,534	37,230	58,628	1,199,918
Netincome before tax		122,152	170,883	156,163		100,394	50,927	79,659	1,441,863
Oil Price		48	55	53		47	44	37	51
		2016/1	2016/2	2016/3		2016/10	2016/11	2016/12	YTD
Revenue		412,419	394,262	419,290					1,225,971
OperatingIncome		59,721	85,753	113,773					259,247
Netincome before tax		78,000	87,832	112,981					278,813
Oil Price		30	31	37					33

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The Brief Introduction to CSCC

Unit: NT$ millions

	2011	2012		2013	2013	2014	2014	2015	2015	2016/ 1~3	2016/ 1~3
Revenue	8,915	8,257		8,820		8,904		5,737		*1,225
Net income after tax	2,247	1,974		2,221		2,189		1,239		*278
EPS(NT$)	9.76	8.58		9.60		9.50		5.37		－
* The announcement is based on self-reported consolidated net income before tax.
					2015/1Q		2015/2Q		2015/3Q		2015/4Q
			EPS		1.70		1.53		1.30		0.84

China Steel Chemical Corp. 7

~~Dividend Payout~~

	2010	2011	2012	2013	2014	2015
EPS	8.3	9.7	8.5	9.6	9.5	5.37
Cash Div.	7.2	8.0	7.4	8.3	8.3	4.5
Stock Div	0	0	0	0	0	0

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The Brief Introduction to CSCC

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unit：metric tons
Period
2011 2012 2013 2014 2015 2016/1~3
Input
Coal Tar 213,284 203,920 264,578 266,814 257,506 66,075
Light Oil 80,921 77,971 93,609 100,930 100,220 26,247
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Sales Revenue breakdown by products

	2014	2015	2016/1Q
Light Oil	35%	33%	35%
Benzene	29%	27%	29%
Coal Tar	47%	44%	41%
Creosote Oils	30%	23%	21%
Soft Pitch	7%	10%	9%
Naphthalene	8%	9%	9%
Mesophase	5%	9%	10%
Coke Breeze	9%	10%	10%

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The Relating Product Map of Coal Chemical Industries

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Upstream Midstream
Downstream
、
CSC DS CSCC
Coke Small size
Coal Coke Carbon Additive
Oven coke
Hard Pitch
Soft
Negative Electrode
Pitch
Others
Dyes
Coal
Naphthalene
Tar Mothball
Carbon Black
Creosote Oils
Wood Preservative Oil
Styrene
Benzene
Alkyl benzene
Light
oil Toluene Solvent
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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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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
China Steel Chemical Corp. 9
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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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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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The Relating Product Map of Coal Chemical Industries

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The Process of the Green Mesophase Powder plant

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

Primary electrode rod

Hard Pitch

Water and rust Green Mesophase proofing materials Powder Active Carbon for Supercapacitor Mesophase Graphite Powder

Roofing Pitch

Electrode binder

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Lithium Ion Battery

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The Appliance of Naphthalene ~~Naphthalene~~

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Sulfonated naphthalene formaldehyde condensates

Β-naphthol, Phthalic Tobias acid, J- anhydride (PA) acid Mothballs PEN resin BON-6 Plasticizer

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Water-reducing admixture

Dyestuffs pigment

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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 Caprolactam Alkyl-benzene Epoxy resin paint detergents Nylon 6

External shell for 3C’s product and sport materials

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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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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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Applications of Supercapacitors

~~PHEV~~

(Plug in hybrid electric vehicles )

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Also in…

E-Bus

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Light Rail Transit

Wind turbine

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Thank You