Slide 1: 2Q 2013 Operating Performance
2Q 2013Operating Performance July 25, 2013
Slide 2: Agenda and unaudited figures notice
Figures provided 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. 2Q Operating Performance 2Q Operating Performance 2Q Operating Performance - Consolidated Performance -
Slide 3: Consolidated Performance: Income
3 POSCO Earnings Release |July 25, 2013 2012.2Q 2013.1Q 2013.2Q 2012.2Q 2013.1Q 2013.2Q 2012.2Q 2013.1Q 2013.2Q 16,488 14,582 1,300 717 7.9% 4.9% 466 292 15,603 5.8% 903 241 Revenue and operating profit improved while net profit decreased affected by forex translation losses Income Consolidated Perf
Slide 4: Income by Sector
2012.2Q 2013.2Q (billion KRW) Revenue Revenue Revenue Operating Profit Operating Profit Operating Profit Net Profit Net Profit Net Profit (billion KRW) 2012.2Q 2013.1Q 2013.2Q 2012.2Q 2013.1Q 2013.2Q 2012.2Q 2013.1Q 2013.2Q Steel 13,582 12,027 12,207 1,143 619 743 568 414 286 Trading 6,966 6,111 6,0
Slide 5: Financial Structure
5 2012.2Q 2013.1Q 2013.2Q 2012.2Q 2013.1Q 2013.2Q 2012.2Q 2013.1Q 2013.2Q 79,851 82,253 38,306 39,638 92.2% 93.0% 41,545 42,615 39,756 90.5% 43,951 83,707 Assets and liabilities went up due to ongoing domestic and overseas projects, and liabilities to equity ratio declined on equity increase POSCO E
Slide 6: Summarized Statements of Income
6 2012.2Q 2013.1Q 2013.2Q 2012.2Q 2013.1Q 2013.2Q QoQ(%) Revenue Revenue 16,488 14,582 15,603 7.0 Gross Profit Gross Profit 2,206 1,674 1,858 11.0 (Gross Margin) (Gross Margin) (13.4%) (11.5%) (12.0%) Selling & Admin. Expenses Selling & Admin. Expenses 907 957 955 ^0.2 Operating Profit Operating Pro
Slide 7: Summarized Statements of Financial Position
7 2012.2Q 2013.1Q 2013.2Q 2012.2Q 2013.1Q 2013.2Q QoQ (%) Current Assets Current Assets 35,288 31,985 32,079 0.3 Cash & Financial Goods 6,596 6,226 6,322 1.5 Accounts Receivable 12,667 11,812 12,208 3.4 Inventories 11,498 10,610 10,044 ^5.3 Non-Current Assets Non-Current Assets 44,563 50,268 51,628
Slide 8: Agenda
2Q Operating Performance 2Q Operating Performance 2Q Operating Performance - Consolidated Performance - Consolidated Performance - POSCO Operating Performance - POSCO Operating Performance - Subsidiaries Performance - Subsidiaries Performance Business Environment Business Environment Business Enviro
Slide 9: Production and Sales
9 2012.2Q 2013.1Q 2013.2Q 2012.2Q 2013.1Q 2013.2Q 2012.2Q 2013.1Q 2013.2Q Carbon Steel 8,907 8,608 8,385 S T S 498 461 464 2012.2Q 2013.1Q 2013.2Q Domestic 5,246 4,886 4,927 Export 3,423 3,552 3,487 Inventory 970 977 909 9,405 9,069 8,849 8,669 8,438 8,414 POSCO Earnings Release |July 25, 2013 Crude
Slide 10: Sales by Product
10 2012.2Q 2013.1Q 2013.2Q 2012.2Q 2013.1Q 2013.2Q 2012.2Q 2013.1Q 2013.2Q 1,981 2,030 666 578 838 682 2012.2Q 2013.1Q 2013.2Q 2012.2Q 2013.1Q 2013.2Q YoY QoQ Hot-Rolled 1,971 2,002 1,789 ^ 9.2% ^ 10.6% Plate** 1,501 1,398 1,464 ^ 2.5% + 4.7% Wire Rod 520 538 557 + 7.1% + 3.5% Cold-Rolled 3,411 3,41
Slide 11: POSCO Income
11 2012.2Q 2013.1Q 2013.2Q 2012.2Q 2013.1Q 2013.2Q 2012.2Q 2013.1Q 2013.2Q Carbon Steel 926 782 794 9,223 7,685 7,740 1,101 581 703 11.9% 7.6% 9.1% Rise in steel prices contributed to higher revenue and operating profit POSCO Earnings Release |July 25, 2013 Income POSCO Operating Performance Revenue
Slide 12: Financial Structure
12 2013.1Q 2013.2Q 2013.1Q 2013.2Q 2013.1Q 2013.2Q 53,082 13,924 39,158 53,345 35.6% 9,564Debt* 9,056 12,711 Debt*^ 508 40,634 31.3% Liabilities to equity ratio fell on the back of hybrid bond issuance and debt repayment POSCO Earnings Release |July 25, 2013 Financial Structure POSCO Operating Perfo
Slide 13: High value-added products and marketing reorganization
13 High value-added products Increase of high value-added products sales Expanded sales to 4 major industries of automobile / energy / shipbuilding / home appliances : 3,588K tons in 1Q2013 to 3,712K tons in 2Q - World First/World Best product sales volume (%) 2012 1H 2013 WF/WB Sales ratio 17.1 20.
Slide 14: Cost competitiveness and working capital reduction
14 Reduce Working Capital 324.8 billion KRW worth cost-saving (2Q cumulative) - Contributed by reduction in raw material blending cost and other expenses 45 50 87 Outsourcing/Energy Others 143 POSCO Earnings Release |July 25, 2013 Decrease of AR and inventory assets - Capital management efficiency r
Slide 15: Agenda
2Q Operating Performance 2Q Operating Performance 2Q Operating Performance - Consolidated Performance - Consolidated Performance - POSCO Operating Performance - POSCO Operating Performance - Subsidiaries Performance - Subsidiaries Performance Business Environment Business Environment Business Enviro
Slide 16: Subsidiaries Performance
16 POSCO Earnings Release |July 25, 2013 Daewoo International POSCO Chemtech 2012.2Q 2013.1Q 2013.2Q 8.2% 4.3% 6.5% 327 312 302 27 13 20 POSCO Energy 2012.2Q 2013.1Q 2013.2Q 6.1% 7.3% 10.3% 728 779 756 45 57 78 POSCO E&C 2012.2Q 2013.1Q 2013.2Q 3.8% 4.4% 6.5% 1,393 1,586 2,331 53 69 151 OP Margin 20
Slide 17: Subsidiaries highlights
17 Steel Trading Energy Chem · Mat'l Infrastructure POSCO Specialty Steel: Vietnam Electric Arc Furnace and long product project on schedule - Overall progress rate of 60% (Jun.'13) for EAF(1.2 million tons/yr) and section steel/rebar mill (1 million tons/yr) POSCO Earnings Release |July 25, 2013 PO
Slide 18: Agenda
^ 2Q Operating Performance 2Q Operating Performance 2Q Operating Performance - Consolidated Performance - Consolidated Performance - POSCO Operating Performance - POSCO Operating Performance - Subsidiaries Performance - Subsidiaries Performance Business Environment Business Environment Business Envi
Slide 19: Global Steel Market
Global Steel Market 19 Business Environment Steel demand in major countries Steel demand in China POSCO Earnings Release |July 25, 2013 2010 2011 2012 2013 2010 2011 2012 YoY 2013 YoY U.S. 80 89 97 8% 99 3% EU 145 154 140 ^9% 137 ^2% China 588 634 646 2% 678 5% India 65 70 72 3% 76 6% S.E.A 49 52 56
Slide 20: Domestic Steel Market
Domestic Steel Market 20 Business Environment 2011 2012 2013 ^ ^ ^ 2011 2012 2013 1Q 2Q 3Q QoQ Nominal Consumption Nominal Consumption 56,391 54,069 51,947 12,178 13,289 13,280 ^ 0.1% Export Export 29,091 30,485 30,375 7,304 7,162 7,950 + 11.0% Production Production 72,283 72,052 70,497 16,537 17,51
Slide 21: Raw Materials
Raw Materials 21 (US$/ton) (US$/ton) 2Q 2013 3Q 2013 2Q 2013 3Q 2013 POSCO Earnings Release |July 25, 2013 Amid concerns over hard-landing of ChineseEconomy, iron ore spot prices turned weak due to steel oversupply followed by falling steel price "Fine Ore US$125/ton, CFR" Seasonally weak trend expe
Slide 22: Nickel, chrome and other market outlook
22 2Q 2013 3Q 2013 2Q 2013 3Q 2013 POSCO Earnings Release |July 25, 2013 "Remain weak on economic uncertainties" Ni price is forecast to rebound after bottoming out in the second half of the quarter Cr price will stay weak as major producer countries increase supply to benefit from improved profitab
Slide 23: Agenda
^ 2Q Operating Performance 2Q Operating Performance 2Q Operating Performance - Consolidated Performance - Consolidated Performance - POSCO Performance - POSCO Performance - Subsidiaries Performance - Subsidiaries Performance Business Environment Business Environment Business Environment 2013 Busines
Slide 24: 2013 Business Plan
24 2012 2013(F) Revenue (Consolidated) (in trillion KRW) 63.6 64 - POSCO Revenue* (^) 35.7 32 Crude Steel Production (in million tons) 38.0 37 Product Sales (^) 35.0 35 Investment (Consolidated) (in trillion KRW) 7.2 7 ~ 8 - POSCO Investment* (^) 3.6 3.5 ~ 4 POSCO Earnings Release |July 25, 2013 201
Slide 25: 2Q 2013 Operating Performance
2Q 2013Operating Performance July 25, 2013