Posco Holdings Inc. · KRX:005490
Posco — FY2020 Earnings Presentation
20 slides from Posco's earnings presentation, Jan 29, 2021
Slide 1: 2020 Earnings Release
2020 Earnings Release Jan 28, 2021 Exhibit 99.1
Slide 2: Disclaimer
Disclaimer This presentation was prepared and circulated to release the informations regarding the company’s business performance to shareholders and investors prior to the completion of auditing for the year 2020. As figures in this presentation are based on unaudited financial statements, certain
Slide 3: Contents
2020 Business Performance Parent Performance Consolidated Performance Financial Structure Subsidiary Performance Mid-term Business Strategies Appendix Contents
Slide 4: Parent Performance_Sales/Production
Parent Performance_Sales/Production 2018 2019 2020 37,735 35,991 Crude Steel Product △2,072 △1,461 YoY 35,898 38,006 35,934 34,437 Production Sales Sales Volume 35,588 35,990 57.5 55.3 34,270 55.4 Domestic Sales Ratio YoY (thousand tons, %) △1,720 +0.1%p 2018 2019 2020 (thousand tons) ’20.1Q ’20.2Q
Slide 5: Parent Performance_P/L
Parent Performance_P/L 2020 Revenue Operating Profit YoY (billion KRW) △3,864 OP Margin △1,451 △4.2%p 2018 30,659 3,809 12.4% 2020 4Q QoQ ○ Operating profit declined as product price fell and both production/sales volume decreased 【Operating Profit (billion KRW)】 Cost reduction includ. raw materials
Slide 6: Consolidated Performance_P/L
Consolidated Performance_P/L △6,574 △1,466 △1.8%p YoY 64,978 5,543 8.5% 64,367 3,869 6.0% 57,793 2,403 4.2% 2018 2019 2020 2020 QoQ +1,003 +196 +1.0%p ○ 4Q operating profit rose QoQ as steel sector profitability improved, supported by extended overseas steel profit and higher WTP product sales towar
Slide 7: Financial Structure
Financial Structure Separate (billion KRW) 2018 2019 2020 YoY Liabilities ratio 67.3% 65.4% 65.9% +0.5%p EBITDA 8,810 7,330 6,025 △1,305 ○ Cash grew in an effort to reduce net working capital, while total debt and liabilities ratio levelled off yearly despite OP drop Consolidated (billion KRW) 2018
Slide 8: Subsidiary Performance_Domestic
Subsidiary Performance_Domestic POSCO Energy POSCO E&C POSCO International Revenue Operating Profit (billion KRW) POSCO Chemical 6,626 341 2018 1,341 102 2018 7,209 314 2019 1,435 88 2019 · Profit from refractory and general chemicals slid due to slower steel production and lower oil price - Revenue
Slide 9: Subsidiary Performance_Overseas
PY VINA · Turned profit from August as business restructuring started to take effect, which pushed up 2H OP level - Operating profit (U$ million) : ’20.1H) △12.2 → ’20.2H) 2.3 (+14.5) Zhangjiagang STS (PZSS) · Profit improved YoY through WTP product sales expansion and cost reduction efforts as mana
Slide 10: Mid-term Business Strategy
Mid-term Business Strategy Strategic Direction Business Strategies by Sectors Major Business Target
Slide 11: Strategic Direction
Strategic Direction Push for growth and innovation under the corporate citizenship management philosophy Building a Better Future Together Become a figure of a sustainable company Society Secure new competitiveness in steel business Nurture next-generation growth business Business Strategic Directio
Slide 12: Steel and Global & Infra. Strategies
Steel Secure stable profitability source (“Multi-core”) by preoccupying future new demand Strengthen manufacturing competitiveness by building low-cost, high-quality, high-efficiency production system Strengthen quality competitiveness and increase high-end steel production capabilities through faci
Slide 13: Secondary Battery Materials and Hydrogen
Secondary battery materials Secure market up-hand by moving forward on capacity expansion Become a global top market player in secondary battery materials Lithium Coal tar NCM precursor Mn precursor Spherical graphite Needle cokes NCM LMO Natural graphite Artificial graphite Raw Materials Secondary
Slide 14: Revenue Target and 2021 Business Target
(Based on aggregated revenue, trillion KRW) Revenue Target 2020 2023 Steel Global Infrastructure New Growth 90 102 44 (49%) 44 (49%) 5 (5%) 51 (50%) 46 (45%) 1.6 (2%) 2021 Business Target Consolidated financial structure Liabilities ratio(%) Major Business Target Parent Consolidated Crude Steel prod
Slide 15: Appendix
Summarized Financial Statements Earnings Trend and Financial Soundness Appendix Summarized F/S_Parent (IS, BS) Summarized F/S_Consolidated (IS, BS)
Slide 16: Summarized F/S_Parent Income Statement
Summarized F/S_Parent Income Statement 2018 2019 2020 YoY Crude Steel Production (thousand tons) 37,735 38,006 35,934 △2,072 Product Sales (thousand tons) 35,588 35,990 34,270 △1,720 STS 2,001 1,968 1,819 △149 Carbon Steel Sales Price (thousand KRW) 733 722 662 △60 Revenue 30,659 30,374 26,510 △3,86
Slide 17: Summarized F/S_Parent Balance Sheet
Summarized F/S_Parent Balance Sheet 2018 2019 2020 YoY Current Assets 16,796 18,216 19,580 +1,364 Cash Balance* 7,284 8,822 11,430 +2,608 Accounts Receivable 3,968 3,987 3,694 △293 Inventories 5,288 4,989 4,094 △895 Current Ratio 431.1% 546.8% 384.7% △162.1%p Non-Current Assets 37,330 37,495 37,215
Slide 18: Summarized F/S_Consolidated Income Statement
Summarized F/S_Consolidated Income Statement 2018 2019 2020 YoY Revenue 64,978 64,367 57,793 △6,574 Gross Profit 7,972 6,250 4,720 △1,530 (Gross Margin) (12.3%) (9.7%) (8.2%) △1.5%p SG&A 2,430 2,382 2,317 △65 Operating Profit 5,543 3,869 2,403 △1,466 (Operating Margin) (8.5%) (6.0%) (4.2%) △1.8%p No
Slide 19: Summarized F/S_Consolidated Balance Sheet
2018 2019 2020 YoY Current Assets 33,651 34,842 35,831 +989 Cash Balance* 10,678 12,463 16,365 +3,902 Accounts Receivable 9,283 9,078 8,105 △973 Inventories 11,500 10,920 9,052 △1,868 Current Ratio 177.7% 213.4% 213.9% +0.5%p Non-Current Assets 44,597 44,216 43,256 △960 Other Long-term financial ass
Slide 20: Earnings Trend and Financial Soundness
Endeavour to keep sound profitability and continue improving financial structure ‘16 ‘17 ‘18 ’19 ’20 Consolidated D/E* 4.1 2.9 2.5 3.0 3.5 OP margin (%) ‘16 ‘17 ‘18 ’19 ’20 Consolidated 5.4 7.6 8.5 6.0 4.2 Parent 10.8 10.2 12.4 8.5 4.3 (trillion KRW) (%) Operating Profit Financial Structure * Debt/E