Posco Holdings Inc. · KRX:005490
Posco — Q3 2020 Earnings Presentation
16 slides from Posco's earnings presentation, Oct 23, 2020
Slide 1: 3Q 2020 Earnings Release
3Q 2020 Earnings Release October 23, 2020 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 independent auditing for the period of the third quarter of 2020. As figures in this presentation are based on un
Slide 3: Contents
3Q 2020 Business Performance Parent Performance Consolidated Performance Subsidiary Performance Key Business Activity 2020 Business Outlook Contents
Slide 4: 3Q 2020 Business Performance: Production and Sales
’19.3Q ’20.2Q ’20.3Q 8,952 7,762 55.6 54.5 8,894 53.6 (thousand tons) ’19.3Q ’20.2Q ’20.3Q QoQ Domestic 4,973 4,234 4,770 +536 Export 3,979 3,528 4,124 +596 Inventory 1,220 1,121 1,038 -83 29.9 23.8 25.2 +1.4%p +1,132 -0.9%p ’19.3Q ’20.2Q ’20.3Q ○ Shipments recorded 3Q19 level with strong sales of h
Slide 5: Parent Performance
-3.5 -3.8 19.6% 26.9% 28.6% · Sales price continued to rise from the June lowest · Raw material cost down from weaker coking coal price and using more low-priced raw material * Coal input cost : -26k KRW/ton QoQ +371 -3.0 (billion KRW) ’19.3Q ’20.2Q ’20.3Q QoQ Cash Balance 7,850 12,065 12,905 +840 D
Slide 6: Consolidated Performance
7.2 5.7 65.4% 72.5% 71.8% 9.1 (billion KRW) ’19.3Q ’20.2Q ’20.3Q QoQ Cash Balance 10,709 16,892 17,887 +994 Debt 19,855 24,089 23,582 -507 (billion KRW) ’19.3Q ’20.2Q ’20.3Q QoQ Steel 710 -197 345 +542 Overseas steel 8 -93 70 +163 Global&Infra 322 282 304 +22 New Growth 26 1 18 +17 -1.5 -0.7%p ’19.3
Slide 7: Subsidiary Performance
7 · Profit more than doubled backed by expanded direct purchase of LNG to Incheon LNG Power Plant Unit 4 (Jul 1~) and increased capacity payment during peak season - CP(KRW/kWh) : ‘20.2Q) 4.6 → 3Q) 12.1 466 279 394 34 80 41 ‘19.3Q ‘20.2Q ’20.3Q QoQ +115 +46 · While revenue declined with major projec
Slide 8: Overseas Subsidiary Performance
8 POSCO Maharashtra PY VINA · Well on track to seeing positive impact of business restructuring, it has turned around since August narrowing the size of operating loss QoQ - Sales volume (thousand tons) : ’20.2Q) 120 → 3Q) 140 (+20) - Monthly operating profit (million USD) : Jul) -1.8 → Aug) 0.1 → S
Slide 9: Key Business Activity: Raw Material Cost Competitiveness
9 Key Business Activity_Raw Material Cost Competitiveness Gain profits by investing in raw material assets Reduce input cost by enhancing competitiveness in procuring and using raw materials ○ Strengthen competitiveness in raw material use by expanding technology for using low-cost materials and ope
Slide 10: 2020 Business Outlook
25.7 3.3 8.3 4.7 23.5 55.4 10 2020 Business Outlook Parent Consolidated Revenue Capex Debt Crude steel production 35.3 million tons Product sales 33.8 million tons (trillion KRW)
Slide 11: Appendix: Summarized Financial Statements, Aggregated Earnings by Segment
※ Appendix Summarized Financial Statements Aggregated Earnings by Segment
Slide 12: Summarized F/S_Parent Income Statement
’19.3Q ’20.2Q ’20.3Q QoQ Crude Steel Production (thousand tons) 9,554 7,793 9,498 +1,705 Product Sales (thousand tons) 8,952 7,762 8,894 +1,132 STS 533 415 451 +36 Carbon Steel Sales Price (thousand KRW) 734 643 634 -9 Revenue 7,736 5,885 6,578 +693 Cost of Goods Sold 6,813 5,743 6,064 +321 Gross Pr
Slide 13: Summarized F/S_Parent Balance Sheet
13 ’19.3Q ’20.2Q ’20.3Q QoQ Current Assets 17,717 20,017 20,873 +856 Cash Balance* 7,850 12,065 12,905 +840 Accounts Receivable 4,046 3,143 3,687 +544 Inventories 5,286 4,216 3,853 -363 Current Ratio 627.1% 422.5% 369.7% -52.8%p Non-Current Assets 37,712 37,603 37,452 -151 Other Long-term financial
Slide 14: Summarized F/S_Consolidated Income Statement
14 ’19.3Q ’20.2Q ’20.3Q QoQ Revenue 15,988 13,722 14,261 +539 Gross Profit 1,613 734 1,207 +473 (Gross Margin) (10.1%) (5.3%) (8.5%) +3.2%p SG&A 573 566 540 -26 Operating Profit 1,040 168 667 +499 (Operating Margin) (6.5%) (1.2%) (4.7%) +3.5%p Non-Operating Profit -186 -0.7 0.3 +1 Share of Profit(Lo
Slide 15: Summarized F/S_Consolidated Balance Sheet
15 ’19.3Q ’20.2Q ’20.3Q QoQ Current Assets 34,710 37,746 38,249 +503 Cash Balance* 10,709 16,892 17,887 +995 Accounts Receivable 9,714 8,562 8,894 +332 Inventories 11,770 9,744 9,021 -723 Current Ratio 207.1% 206.7% 207.7% +1.0%p Non-Current Assets 44,909 44,366 43,842 -524 Other Long-term financial
Slide 16: Aggregated Earnings by Segment
16 Segment Revenue Operating Profit Net Profit ’19.3Q ’20.2Q ’20.3Q ’19.3Q ’20.2Q ’20.3Q ’19.3Q ’20.2Q ’20.3Q Steel 12,725 9,788 11,348 710 -197 345 395 -148 203 Global&Infra 12,067 10,906 10,189 322 282 304 288 284 205 Trading 9,072 8,030 7,477 161 115 107 0.1 72 58 E & C 1,877 1,986 1,705 92 97 84