Posco Holdings Inc. · KRX:005490
Posco — FY2017 Earnings Presentation
16 slides from Posco's earnings presentation, Jan 24, 2018
Slide 1: POSCO 2017 Earnings Release
January 24, 2018 POSCO 2017 Earnings Release 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 year 2017. As figures in this presentation are based on unaudited financial statem
Slide 3: Parent Performance (Production/Sales)
Parent Performance (Production/Sales) 2017 Earnings Release │ January 24, 2018 2015 2016 2017 YoY Crude Steel Production 37,965 37,496 37,207 -289 Product Production 35,592 35,940 35,210 -730 STS 1,862 1,971 2,028 +57 Product Sales 35,337 35,875 34,709 -1,166 STS 1,842 1,964 1,997 +33 Carbon Steel S
Slide 4: Parent Performance
Parent Performance 2017 Earnings Release │ January 24, 2018 2015 2016 2017 YoY Revenue 25,607 24,325 28,554 +4,229 Cost of Goods Sold 21,473 19,904 23,833 +3,929 Gross Profit 4,134 4,421 4,721 +300 (Gross Margin) (16.1%) (18.2%) (16.5%) SG&A 1,896 1,786 1,819 +33 Operating Profit 2,238 2,635 2,902 +
Slide 5: Consolidated Performance
2017 Earnings Release │ January 24, 2018 2016 2017 YoY Steel 2,927 3,605 +678 POSCO 2,635 2,902 +267 Overseas Steel 137 476 +339 Non-Steel 13 1,092 +1,079 Total 2,940 4,697 +1,757 ※ Aggregated Operating Profit by Segment 2015 2016 2017 YoY Revenue 58,192 53,083 60,655 +7,572 Gross Profit 6,534 6,689
Slide 6: Aggregated Earnings by Segment
2017 Earnings Release │ January 24, 2018 Aggregated Earnings by Segment Segment Revenue Operating Profit Net Profit 2015 2016 2017 2015 2016 2017 2015 2016 2017 Steel 44,837 42,906 47,611 1,843 2,927 3,605 182 1,511 2,791 Trading 27,008 26,420 34,878 374 361 423 39 53 113 E & C 9,868 7,482 7,286 147
Slide 7: Consolidated Performance (B/S)
2017 Earnings Release │ January 24, 2018 2015 2016 2017 Remarks YoY Current Asset 29,181 29,304 31,127 +1,823 Cash Balance* 8,686 7,623 9,595 +1,972 Accounts Receivable 9,596 9,787 8,951 -836 Inventories 8,225 9,052 9,951 +899 Current Ratio (%) 145.0 154.9 164.3 +9.4%p Non-Current Asset 51,228 50,45
Slide 8: Subsidiary Performance: POSCO C&C, Energy, Chemtech
POSCO C&C POSCO Energy POSCO Chemtech 8 2017 Earnings Release │ January 24, 2018 · Operating profit upped mainly due to improvement of trading* segment (billion KRW) 2015 2016 2017 304 353 345 82 124 150 · Earnings gained on increase of coal tar sales price and anode material sales volume 2015 2016
Slide 9: Overseas Subsidiary Performance
POSCO Maharashtra PT. Krakatau POSCO 9 2017 Earnings Release │ January 24, 2018 · Recorded first annual operating profit since the start of operation on strong sales price and expansion of domestic plate sales 2015 2016 2017 -72 14 -275 -423 -212 -142 · Sound export/domestic market contributed to ac
Slide 10: Business Restructuring
` ` Business Restructuring · Boost profitability (0.4tn/yr) : Exited from loss-making businesses · Eliminate potential insolvency (1.2tn) : Sold off high-risk PF, Excluded POSCO Plantec from consolidation 2017 Earnings Release │ January 24, 2018 Completed 150 Cases of Business Restructuring from 201
Slide 11: Steel Business with Unmatched Technology
Steel Business with Unmatched Technology * World Premium : World Best/First/Most 2017 Earnings Release │ January 24, 2018 · Lead technology by developing industry-oriented WP/WP+ · Applied high-Manganese steel in LNG-fueled bulker ‘Green Iris’ first time in the world · Fuel tanks manufactured with h
Slide 12: Future Growth by Differentiated Capabilities
Future Growth by Differentiated Capabilities Prepare for Electric Vehicle Ecosystem as a Total Solution Provider · Lithium Carbonate - Lithium production plant (PosLX) completed in Feb ’17 with 2,500 ton capacity, which can produce 100k EV batteries · Giga Steel - Next-generation steel used mainly f
Slide 13: 2018 Business Plan
2018 Business Plan 2017 Earnings Release │ January 24, 2018 (trillion KRW, million tons) Business Plan 2017 2018년 Result Plan POSCO Revenue 28.6 29.0 Crude Steel Production 37.2 37.4 Product Sales 34.7 35.3 Capex 1.7 2.9 Debt 3.9 4.4 Consolidated Revenue 60.7 61.9 Capex 2.6 4.2 Debt 21.1 21.5
Slide 14: Chinese Steel Market Demand by Region
2017 Earnings Release │ January 24, 2018 Chinese Steel Market Demand by Region “Strong price trend is expected to stay on insufficient supply due to winter production cut in China” “Global steel demand forecast to gradually increase in ’18 on sound demand in emerging markets” * CRU(2018.1), SteelHom
Slide 15: Demand Industry Outlook
2017 Earnings Release │ January 24, 2018 Demand Industry Outlook Steel Supply and Demand (million tons) Shipbuilding Construction Automobile Auto production expected at low level of 4.1 million cars due to slowdown of both domestic and export markets in ’18 While shipbuilding volume will decline in
Slide 16: Coking Coal and Iron Ore Prices
16 2017 Earnings Release │ January 24, 2018 Coking Coal 2017.4Q 2018.1Q (US$/ton) 2016 1Q 2016 2Q 2016 3Q 2016 4Q 2017 1Q 200 285 2017 2Q 191 2017 3Q 81 84 93 2017 4Q 204 “1Q HCC price forecast at U$220~240/ton” 189 While China regulated on steel and coke production, strong steel product market and