Posco Holdings Inc. · KRX:005490
Posco — Q1 2015 Earnings Presentation
19 slides from Posco's earnings presentation, Apr 22, 2015
Slide 1: POSCO 2015 1Q Earnings Release
posco 2015 1Q Earnings Release April 21, 2015
Slide 2: 1Q Operating Performance, Major Business Activities, 2015 Business Plan
1Q Operating Performance Major Business Activities 2015 Business Plan 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: 1Q Operating Performance: Consolidated Income
1Q Operating Performance Consolidated Income OP remained flat YoY as steel, trade, and energy improved, while E&C sector struggled Revenue (in billion KRW) 15,440 16,685 15,101 2014.1Q 2014.4Q 2015.1Q Operating Profit (in billion KRW) 4.7% 4.6% 4.8% OP Margin 731 764 731 2014.1Q 2014.4Q 2015.1Q Net
Slide 4: 1Q Operating Performance: Parent Income
1Q Operating Performance Parent Income Enhanced profitability by expanding high-end product sales, despite product price decline Production (in thousand tons) 9,302 9,565 9,183 Crude Steel 8,589 9,068 8,600 Steel Product 2014.1Q 2014.4Q 2015.1Q 2014.1Q 2014.4Q 2015.1Q Carbon Steel 8,837 9,118 8,700
Slide 5: 1Q Operating Performance: Consolidated Financial Structure
1Q Operating Performance Consolidated Financial Structure Liabilities to equity ratio rose as equity decreased due to dividend payment and stake sale of POSCO Specialty Steel Assets (in billion KRW) 86,099 85,252 84,665 2014.1Q 2014.4Q 2015.1Q Liabilities (in billion KRW) 90.2% 88.2% 89.8% Liabiliti
Slide 6: Major Business Activities
1Q Operating Performance Major Business Activities 2015 Business Plan
Slide 7: Stronger Steel Competitiveness: High-end Product Sales
Major Business Activities Stronger Steel Competitiveness Actively responded to market trend by increasing high-end product sales Added value to the product with solution marketing [Product Sales through Solution Marketing activities] Sales Volume 425 +9% 465 (thousand tons) 2014.4Q 2015.1Q [WP* Prod
Slide 8: Stronger Steel Competitiveness: Global Automotive Steel Market
Major Business Activities Stronger Steel Competitiveness Led the global automotive steel market by combining marketing, quality, and technology Auto steel sales volume went up from the year before, including volume to Japanese and European carmakers [thousand tons] 1,960 +6% 2.071 2014.1Q 2015.1Q 1
Slide 9: Select and Focus New Businesses
Major Business Activities Select and Focus New Businesses Discovered new profit sources using POSCO’s own technology in steel and materials Global POIST* Signed MOA to sell existing FINEX (Mar) - Built ground for selling FINEX technology and building the facilities through deal with Mesco Steel, Ind
Slide 10: Improved Business Structure
Major Business Activities Improved Business Structure Proceed restructuring and non-core asset sales 2014 2015. 1Q 2015. 2Q~ (mid/long term) Set priorities and concluded several deals POSCO Specialty Steel -Sold 72.1% stake to SeAhBesteel (52.1% sold first) Vietnam IBC/Masan Dept. - Sold non-core as
Slide 11: Subsidiaries Performance
Major Business Activities Subsidiaries Performance Daewoo International Stabilized profitability of Myanmar gasfield - Despite oil price drop, OP remained steady as the field reached full production (OP down by 3% QoQ) Continued effort to find “The next Myanmar gasfield” - Start drilling AD-7 mine l
Slide 12: 2015 Business Plan
1Q Operating Performance Major Business Activities 2015 Business Plan
Slide 13: 2015 Business Plan: Consolidated Business Target
2015 Business Plan Consolidated Business Target 2014 2015(F) Revenue (trillion KRW) 65.1 67.4 - POSCO Revenue (“) 29.2 29.3 Crude Steel Production (million tons) 37.7 38.4 Product Sales (“) 34.3 35.9 Investment (trillion KRW) 5.4 4.2 - POSCO Investment (“) 3.0 2.9 POSCO Earnings Release | April 21,
Slide 14: Appendix
Appendix 1. Business Environment – Steel Demand, Raw Materials 2. Financial Statements
Slide 15: Business Environment: Global Steel Demand
Appendix 1. Business Environment Global Steel Demand China’s Steel Economy “Downtrend in price will ease as capacity reduction effect is seen” 1Q crude steel production decreased by 1.7% YoY due to slow demand and environmental regulations - Major steel mills cut production : Baoshan Steel 4%, Angan
Slide 16: Business Environment: Domestic Steel Demand
Appendix 1. Business Environment Domestic Steel Demand Outlook for Demand Industries Automobile 1Q domestic/exports decreased, 2Q will rise slightly QoQ Domestic (thousand units): 1,464 (’14) 1,481 (’15), 345 (1Q) 380 (2Q) Exports (thousand units): 3,063 (’14) 2,969 (’15), 736 (1Q) 777 (2Q) Shipbuil
Slide 17: Business Environment: Raw Materials
Appendix 1. Business Environment Raw Materials Iron Ore 2015.1Q Price fell to the lowest since 2008 financial crisis, due to the oversupply and sluggish trading as China’s demand shows slow recovery Jan: US$68/ton Mar: US$57/ton “Fine Ore CFR within US$50/ton” 2015.2Q Weak price will continue as pur
Slide 18: Financial Statements: Summarized Statements of Income
Appendix 2. Financial Statements Summarized Statements of Income (in billion KRW) 2014.1Q 2014.4Q 2015.1Q QoQ Revenue 15,440 16,685 15,101 1,584 Gross Profit 1,688 1,924 1,815 109 (Gross Margin) (10.9%) (11.5%) (12.0%) - Selling & Admin. Expenses 957 1,159 1,083 76 Operating Profit 731 764 731 33 (O
Slide 19: Financial Statements: Consolidated Statements of Financial Position
Appendix 2. Financial Statements Consolidated Statements of Financial Position (in billion KRW) 2014.1Q 2014.4Q 2015.1Q QoQ Current Assets 32,988 32,627 31,979 648 Cash & Financial Goods* 6,725 5,274 6,577 +1,303 Account Receivable 12,348 11,786 11,653 133 Inventories 10,760 10,471 10,046 425 Non-Cu