Posco Holdings Inc. · KRX:005490

Posco — Q3 2015 Earnings Presentation

19 slides from Posco's earnings presentation, Oct 20, 2015

  1. Slide 1: 2015 3Q Earnings Release

    Exhibit 99.1 2015 3Qcontents October Figures Certain in 20, Earnings this 2015 presentation inRelease this presentation are basedare onsubject unaudited to change financial during statements the course of the ofcompany. auditing process.

  2. Slide 2: 3Q Operating Performance

    3Q Operating Major 2015 Business Business Performance Plan Activities

  3. Slide 3: 3Q Parent Performance

    3QInventories Parent Production 9,524 Crude Product 8,815 [Steel S (Feb.6 Sales Carbon 715 Steel Price 47.5% 8,673 *Exports [WP 32.7% 14.3Q Income OP 9.2% 10.1% 7,290 Margin 635 Revenue Operating 608 [Net (in 222 2014.3Q 3POSCO Pohang) Tbillion thousand Operating went 8.7% S210 638 Profit] Product 8

  4. Slide 4: 3Q Consolidated Performance

    3Q Consolidated Revenue 13,996 15,189 16,270 Operating OP Margin 652 686 879 Net ROE 658 117 224 0.6% 1.0% (in 2014.3Q Steel Trade E lIEnergy *Total 4POSCO Chem/Mat’ C Impairment &billion Operating T 5.4% profit Profit C12,622 2.2% 24,498 258 7,809 2,322 704 4.5% Earnings 2015.2Q 241 turned KRW) Pro

  5. Slide 5: 3Q Impairment Breakdown and Net Profit

    3Q Breakdown Impairment (in Operating 388 Settlement 299 Forex-related Equity —Equity Investment —Thainox, Interest Tax -151 Gain 5POSCO Tax \/$billion Operating expense Net 658 1,124 from reduction loss 94 Expenses/ Earnings losses KRW) Forex-related selling 1,194 Profit Asset 149 Santos of losses

  6. Slide 6: 3Q Consolidated Assets and Financial Structure

    3Q billion Consolidated Assets 83,202 83,637 84,847 Liabilities 87.3 39,548 84.9 38,203 (in Equity 45,298 2014.3Q 6POSCO Operating 86.9 increased (%) 38,884 44,753 Earnings 2015.2Q KRW) to Financial Performance 44,999 while Release 2015.3Q liabilities Structure Octoberratio 20, fell 2015 due to stak

  7. Slide 7: Major Business Activities

    3Q Operating Major 2015 Business Business Performance Plan Activities

  8. Slide 8: Major Business Activities: Restructuring Enhanced

    Major Business Enhanced Disposed ’15 E&C 3Q 2015.1H -Arctos POS-Uruguay —Overseas P-Investment —Merged 19 2015.3Q~ Restructuring Reached P-Plantec Excluded (Sept) POS-HiAL(high-purity Initiate PONUTECH(nuclear Disposal *—Named 8POSCO Canadian Sales Affiliates Results 1Hstake —No Business (’15.Jul) R

  9. Slide 9: Major Business Activities: Profitability Strengthened, Cost Reduction

    Major Strengthened Pushed (in 53% Aug~Sept 213 2015 Type Out- sourcing, Labor cost Ex- penses (exclud. Manufacturing (YoY) Maintenance Energy Materials 14.3Q Speed-up Utilized Saved Upgrade Minimized 9POSCO billion Reduced Froze reached Competition Reduction (Aug-Dec) Labor Business electricity 15.3

  10. Slide 10: Major Commercialized Technology

    Major Commercialized Technology POIST1 Undergoing MOU FINEX Warm-up —POIST Signed German *—Sold TPB3 European Expanded —Cross-evaluate Built —Sample 1Sold POSCO 10Produce POSCO license production-sales MOA Strategy Business CEM2 CEM Technology company, Earnings (FINEX+CEM2) 3European Innovative mark

  11. Slide 11: Major Daewoo International and Resource Business

    Major Daewoo Resource Proceed Sold *Orders Doubled [Vietnam [Samcheok Sales -First POSCO 11 Conducted Prepared Scheduled “L-City” Successfully Hired Heightened Capacity Sales Plan Became Public stakes to of to Business Subsidiaries Volume volume went and produce secondary additional E&C Energy ChemT

  12. Slide 12: 2015 Business Plan

    3Q Operating 2015 BusinessPerformance Plan Major Business Activities

  13. Slide 13: 2015 Business Plan: Production, Sales, Investment

    2015 Crude 2014 Investment Revenue Consolidated tons) (in () KRW) POSCO 13 34.3 5.4 million trillion Business 2015(F) 3.3 Steel 35.3 Earnings 29.2 3.0 65.1 37.7 Production Business 2.4 Plan 26.0 60.6 37.9 Release Target Product October Sales 20,Investment 2015

  14. Slide 14: Appendix: Business Environment and Financial Statements

    1.Steel –Appendix Business Demand Environment and Raw Materials 2. Financial Statements

  15. Slide 15: Appendix #1. China's Supply-Demand and Steel Demand

    Appendix#1. China’s “Supply-Demand Business —Steel —While Steel “2016 consumption [China’s 93.8 93.1 92.6 48.2 43.0 ‘15.1 37.4 41.0 [Outlook 2013 US EU China India ASEAN5 MENA *Global POSCO World China 95.7 140.9 93.8(‘00=100) 93.0 92.4 Steel 45.1 Demand 2014 73.7 2735.1 :global Steel 1,528.9 366.4

  16. Slide 16: Appendix #2. Domestic Steel Demand Industries

    Appendix#2. Domestic Automobile Exports Shipbuilding Order 4Q Construction Engineering (thousand 1,206 1,108 (million (trillion Building 4.9 5.1 54.8 53.2 ‘14.4Q Investment “4Q Outlook (in Consumption Nominal Export Production Import *Incl. Products POSCO POSRI(Oct, thousand production building inve

  17. Slide 17: Appendix #3. Raw Materials Iron Ore and Coking Coal

    Appendix#3. Raw Iron After “Fine Coking The “Hard While 2015.4Q [Iron 74 90 103 120 135 [Coking 113 122 142 84 88 105 2013 4Q *Platts POSCO 62 81 1Q 112 price Ore Materials Ore 2014 the Ore 58 Coking the 2Q 62% HCC Coal 111 Earnings Coal China’s 55 price Price](US$/ton) will leveled oversupply aroun

  18. Slide 18: Appendix #4. Summarized Income Statements

    Appendix Summarized (in 2014.3Q Revenue Gross (Gross Selling Operating (Operating Other Share Equity-accounted Finance Foreign & Net (Net Owners Company POSCO Translation billion Profit Margin)(1.4%)(0.8%)( Operating of Profit Margin)(11.4%)(11.3%)(11.2%) &of Currency Items Earnings Profit 2015.2Q 1

  19. Slide 19: Appendix #5. Consolidated Financial Position

    Appendix Consolidated (in 2014.3Q Cash Account Inventories Other Financial PP&E Liabilities Current Non-Current (Interest-bearing Equity Owners Controlling *Total and POSCO Cash billion Derivatives Assets & Liabilities Long-term 35,362 45,298 &Assets Financial Liabilities of Earnings Receivable 2015

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