POSCO Holdings Inc. · KRX:005490
POSCO — Q1 2017 Earnings Presentation
15 slides from POSCO's earnings presentation, Apr 19, 2017
Slide 1: POSCO 1Q 2017 Earnings Release
April 18, 2017 POSCO 1Q 2017 Earnings Release Exhibit 99.1
Slide 2: 1Q Operating Performance / Appendix
1Q Operating Performance Ⅰ Appendix 1. Outlook for Steel Demand and Raw Materials 2. Financial Statements Ⅱ Figures in this presentation are based on unaudited financial statements of the company. Certain contents in this presentation are subject to change during the course of auditing process.
Slide 3: Production and sales volume reduced QoQ due to #3 BF revamping
Production and sales volume reduced QoQ due to P)#3 BF revamping Parent Performance (Production/Sales) 1Q Operating Performance (thousand tons) 2016.1Q 2016.4Q 2017.1Q Carbon 8,304 8,509 8,226 STS 466 498 481 【 Crude Steel Production 】 2016.1Q 2016.4Q 2017.1Q 9,064 9,625 9,081 8,770 8,707 8,740 9,18
Slide 4: Revenue increased on sales price hike; OP margin marked 11.3%
Revenue increased on sales price hike backed by rising raw material prices, OP margin marked 11.3% Parent Performance 2016.1Q 2016.4Q 2017.1Q 5,767 6,442 7,067 OP Margin 10.1% 7.6% 11.3% 2016.1Q 2016.4Q 2017.1Q [ Financial Structure ] 2016.1Q 2016.4Q 2017.1Q Liabilities to Equity 19.2% 17.4% 17.6% N
Slide 5: Operating profit recorded 1.3tn KRW on E&C and overseas steel
Operating profit recorded 1.3tn KRW contributed by improved performance of E&C division and overseas steel business Consolidated Performance 【 Revenue 】 【 OP/NP 】 2016.1Q 2016.4Q 2017.1Q 12,461 15,017 15,077 OP Margin 5.3% 3.1% 9.1% 660 1,365 338 14 977 2016.1Q 2016.4Q 2017.1Q 472 Net Debt Cash Bala
Slide 6: Consolidated Performance (Aggregation of each segment)
Consolidated Performance (Aggregation of each segment) Steel and trading segments saw profit growth, aggregated OP enhanced significantly with E&C segment turning profit Revenue Operating Profit 2016.1Q 2016.4Q 2017.1Q 2016.1Q 2016.4Q 2017.1Q Steel 10,052 11,518 12,259 551 636 1,023 Trading 6,147 7,
Slide 7: Domestic Subsidiaries
Domestic Subsidiaries POSCO Daewoo’s revenue and operating profit rose, POSCO E&C turned profit 【 POSCO Chemtech 】 【 POSCO ICT 】 【 POSCO C&C 】 ‘16.4Q ‘17.1Q 280 280 ‘16.4Q ‘17.1Q 30 30 ‘16.4Q ‘17.1Q 250 223 ‘16.4Q ‘17.1Q 20 17 ‘16.4Q ‘17.1Q 213 216 ‘16.4Q ‘17.1Q 10 11 【 POSCO Daewoo 】 【 POSCO E&C 】
Slide 8: Overseas Steel Subsidiaries
Overseas Steel Subsidiaries Zhangjiagang STS and P-Maharashtra generated higher profits, PT-KP and SS-VINA narrowed operating loss 【 PT-KP 】 【 ZPSS(Zhangjiagang STS) 】 【 SS-VINA 】 【 P-Vietnam 】 【 P-Maharashtra 】 【 P-Mexico 】 ‘16.4Q ‘17.1Q 150 164 ‘16.4Q ‘17.1Q 2 6 ‘16.4Q ‘17.1Q 252 304 ‘16.4Q ‘17.1Q
Slide 9: Business Plan
2016 2017 POSCO Revenue (trillion KRW) 24.3 25.6 - Crude Steel Production (million tons) 37.5 37.0 - Product Sales (〃) 35.9 34.6 Capex (trillion KRW) 2.0 2.6 Net Debt (〃) -0.1 -1.4 Consolidated Revenue (trillion KRW) 53.1 54.8 Capex (〃) 2.5 3.5 Net Debt (〃) 15.1 13.4 Business Plan
Slide 10: Appendix
Figures in this presentation are based on unaudited financial statements of the company. Certain contents in this presentation are subject to change during the course of auditing process. 1Q Operating Performance Ⅰ Appendix 1. Outlook for Steel Demand and Raw Materials 2. Financial Statements Ⅱ
Slide 11: Global Steel Demand
Global Steel Demand China’s Steel Market Steel Demand in Major Countries * CRU(2017.4), China Federation of Logistics and Purchasing(2017.4) (million tons) * World Steel Association(2016.10), POSRI(2017.4) 2014 2015 2016 2017(f) YoY YoY U.S. 107.0 96.1 93.0 -3.2% 95.8 3.0% EU 149.3 153.6 154.8 0.8%
Slide 12: Domestic Steel Demand
Domestic Steel Demand Demand Outlook Steel Demand and Supply Outlook Shipbuilding Construction Automobile With slowed contraction of domestic demand and recovery in export volume, 1H production will decrease at minimal level 1H 2017 will see a drop in shipbuilding volume due to a drastic plunge of n
Slide 13: Raw Materials
Raw Materials Iron Ore Coking Coal 2017.1Q 2017.2Q * 62% Fe IODEX CFR China (Quarterly Spot Average) “2Q fine ore price forecast at U$65~70/ton” * Premium LV HCC FOB Australia (Quarterly Benchmark Price) 2017.1Q 2017.2Q Considering weak steel price trend and iron ore oversupply, 2Q iron price is lik
Slide 14: Consolidated Income Statement
2016.1Q 2016.4Q 2017.1Q QoQ Revenue 12,461 15,017 15,077 60 Gross Profit 1,541 1,617 2,258 641 (Gross Margin) (12.4%) (10.8%) (15.0%) SG&A 882 1,145 893 △252 Operating Profit 660 472 1,365 893 (Operating Margin) (5.3%) (3.1%) (9.1%) Other Non-Operating Profit △12 △344 △45 299 Share of Profit (Loss)
Slide 15: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position 2016.1Q 2016.4Q 2017.1Q QoQ Current Assets 28,590 29,304 29,690 386 Cash Balance* 8,514 7,623 7,821 198 Accounts Receivable 9,346 9,787 9,765 △22 Inventories 7,787 9,052 9,489 437 Non-Current Assets 50,864 50,459 49,133 △1,326 Other Long-term Financial As