Posco Holdings Inc. · KRX:005490
Posco — Q2 2020 Earnings Presentation
18 slides from Posco's earnings presentation, Jul 22, 2020
Slide 1: 2Q 2020 Earnings Release
2Q 2020 Earnings Release July 21, 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 auditing for the period of the second quarter of 2019. As figures in this presentation are based on unaudited fin
Slide 3: Contents
2Q 2020 Business Performance Parent Performance Consolidated Performance Subsidiary Performance Key Business Activities 2020 Business Outlook Contents
Slide 4: Parent Performance: Production / Sales
’19.2Q ’20.1Q ’20.2Q 8,746 8,620 57.4 54.8 7,762 54.5 (thousand tons) ’19.2Q ’20.1Q ’20.2Q QoQ Domestic 5,024 4,728 4,234 -494 Export 3,722 3,892 3,528 -364 Inventory 1,227 1,107 1,121 +14 29.6 27.6 23.8 -3.8%p *WTP(World Top Premium) includes World First/World Best products -858 -0.3%p ’19.2Q ’20.1
Slide 5: Parent Performance: P/L and Financial Structure
-3.1 -3.5 17.8% 28.3% 26.9% QoQ -567 Cost Production/ Sales volume -109 458 ’20.1Q ’20.2Q -567 -3.1 (bn KRW) ’19.2Q ’20.1Q ’20.2Q QoQ Cash Balance 7,110 11,723 12,064 +341 Debt 3,991 8,662 8,562 -100 【Operaing Profit】 -0.4 -8.4%p -1.4%p -1,085 ’19.2Q ’20.1Q ’20.2Q ’19.2Q ’20.1Q ’20.2Q 6,970 458 6.6%
Slide 6: Consolidated Performance
8.2 7.3 65.0% 73.5% 72.8% 9.2 (billion KRW) ’19.2Q ’20.1Q ’20.2Q QoQ Cash Balance 10,021 15,351 16,913 +1,562 Debt 19,199 23,503 24,238 +735 (billion KRW) ’19.2Q ’20.1Q ’20.2Q QoQ Steel 805 383 -197 -580 Overseas steel 38 -81 -93 -12 Global&Infra 299 375 304 -71 New Growth 15 14 1 -13 -0.9 -0.7%p ’1
Slide 7: Subsidiary Performance
7 6,075 5,087 4,682 ‘19.2Q ‘20.1Q ’20.2Q 178 135 123 -405 -12 1,782 1,829 1,912 72 113 ’19.2Q ’20.1Q ’20.2Q 114 +83 +1 399 422 279 ‘19.2Q ‘20.1Q ’20.2Q 84 34 2 358 377 329 16 16 3 ‘19.2Q ’20.1Q ’20.2Q -143 -50 -48 -13 Subsidiary Performance POSCO E&C POSCO International POSCO Energy POSCO Chemical Q
Slide 8: Key Business Activities: Steel
8 Key Business Activities_Steel - Replace imported products from China and Japan for domestic customers by providing tailored solutions Enhance Sales Profitability Boost Sales to Industries Leading Future Trend · Strengthen domestic sales responding to trade protectionism in major countries · Optimi
Slide 9: Key Business Activities: Group Companies
Stable operation of Myanmar gasfield Increase food trading and fully operate grain terminal Risk management in plant business Enhance profits in Building Works Business Continue to improve financial soundness Raise profitability of LNG power generation Grow businesses utilizing LNG terminal POSCO In
Slide 10: Key Business Activities
10 Key Business Activities Heighten production yield by applying smart factory system in more sites Develop technology encompassing upstream and downstream to maximize efficiency Improve productivity through AI-based automated process control - CI2020 is an initiative to strengthen manufacturing cos
Slide 11: ESG management system
11 Established ESG management system to minimize risks under Corporate Citizenship Philosophy E · [2H20] Separate publication of climate report containing low-carbon strategy, Start operation of Gwangyang #3 Blast Furnace reinforced with environment-friendly facilities S G · [2H20] Corporate citizen
Slide 12: 2020 Business Outlook (Modified)
25.7 3.3 8.3 4.7 23.5 55.4 12 2020 Business Outlook (Modified) Parent Consolidated Revenue Capex Debt (trillion KRW) Crude steel production 35.3 million tons Product sales 33.8 million tons
Slide 13: Appendix: Summarized Financial Statements, Aggregated Earnings by Segment
※ Appendix Summarized Financial Statements Aggregated Earnings by Segment
Slide 14: Summarized F/S Parent Income Statement
14 ’19.2Q ’20.1Q ’20.2Q QoQ Crude Steel Production (thousand tons) 9,444 9,066 7,793 -1,273 Product Sales (thousand tons) 8,746 8,620 7,762 -858 STS 448 469 415 -54 Carbon Steel Sales Price (thousand KRW) 735 692 643 -49 Revenue 7,476 6,970 5,885 -1,085 Cost of Goods Sold 6,484 6,230 5,743 -487 Gros
Slide 15: Summarized F/S Parent Balance Sheet
15 ’19.2Q ’20.1Q ’20.2Q QoQ Current Assets 17,599 20,774 20,017 -758 Cash Balance* 7,110 11,723 12,064 +341 Accounts Receivable 4,281 3,680 3,143 -537 Inventories 5,385 4,768 4,216 -552 Current Ratio 566.7% 497.1% 422.5% -74.6%p Non-Current Assets 37,038 37,662 37,603 -59 Other Long-term financial a
Slide 16: Summarized F/S Consolidated Income Statement
16 ’19.2Q ’20.1Q ’20.2Q QoQ Revenue 16,321 14,546 13,722 -824 Gross Profit 1,614 1,310 734 -576 (Gross Margin) (9.9%) (9.0%) (5.3%) -3.7%p SG&A 545 605 566 -39 Operating Profit 1,069 705 168 -537 (Operating Margin) (6.5%) (4.8%) (1.2%) -3.6%p Non-Operating Profit -96 -51 -1 +50 Share of Profit(Loss)
Slide 17: Summarized F/S Consolidated Balance Sheet
17 ’19.2Q ’20.1Q ’20.2Q QoQ Current Assets 34,058 37,813 37,869 +56 Cash Balance* 10,021 15,351 16,913 +1,562 Accounts Receivable 9,939 9,344 8,562 -782 Inventories 11,708 10,726 9,744 -982 Current Ratio 192.6% 206.8% 205.6% -1.2%p Non-Current Assets 44,933 44,448 44,392 -56 Other Long-term financia
Slide 18: Aggregated Earnings by Segment
18 Segment Revenue Operating Profit Net Profit ’19.2Q ’20.1Q ’20.2Q ’19.2Q ’20.1Q ’20.2Q ’19.2Q ’20.1Q ’20.2Q Steel 12,509 11,075 9,788 805 383 -197 520 285 -148 Global&Infra 12,875 11,435 10,906 299 375 304 147 260 306 Trading 9,950 8,424 8,030 206 148 115 90 78 72 E & C 1,884 1,937 1,986 53 124 97