Posco Holdings Inc. · KRX:005490
Posco — Q1 2019 Earnings Presentation
19 slides from Posco's earnings presentation, Apr 25, 2019
Slide 1: 1Q 2019 Earnings Release
1Q 2019 Earnings Release April 24, 2019 posco
Slide 2: Disclaimer
1Q 2019 Earnings Release â”, April 24, 2019 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 first quarter of 2019. As figures in t
Slide 3: Contents
1Q 2019 Earnings Release â”, April 24, 2019 Contents 1Q 2019Business Performance 2019 Business Plan Appendix
Slide 4: Business Performance
1Q 2019 Business Performance —Parent Performance—Consolidated Performance—Subsidiary Performance 1Q 2019 Earnings Release â”, April 24, 2019
Slide 5: Parent Performance: Production/Sales
Parent Performance_Production/Sales Production Sales QoQ QoQ 9,504 9,294 9,288 9,406 9,283 -98 +930 Crude Steel Sales Volume (thousand tons) 8,353 9,072 9,040 +245 8,795 60.4 Product 56.9 Domestic Sales .3 -5.1%p (%) WTP (thousand tons) Sales Ratio (%) 29.7 +0.2%p 29.5 1Q18 4Q18 1Q19 1Q18 4Q18 1Q19
Slide 6: Parent Performance: Financials
1Q 2019 Earnings Release â”, April 24, 2019 Parent Performance_Financials P/L Financial Structure â—‹Liabilities ratio moderately rose on the increase of dividends payable, net debt decreased due to cash balance build -3.01 -3.45 7.76 7.29 7.82 Revenue Operating Profit (billion KRW) 18.5% 19.6% 20.0
Slide 7: Consolidated Performance
1Q 2019 Earnings Release â”, April 24, 2019 9.5 9.0 15.9 16.6 16.0 67.8% 67.3% 68.9% 1Q18 4Q18 1Q19 1,488 1,272 1,203 -0.6 9.4% 7.6% 7.5% -69 10.4 Net Debt Consolidated Performance â—‹While liabilities ratio is slightly up due to modification of lease accounting standards*, financial structure enhan
Slide 8: Subsidiary Performance: Domestic
1Q 2019 Earnings Release â”, April 24, 2019 Subsidiary Performance_Domestic POSCO E&C POSCO International POSCO Energy POSCO Chemical · Operatingprofit more than doubled on improvement of Myanmar gas business performance -Sales volume : (‘18.4Q) 37 → (‘19.1Q) 52 billion ft3 Revenue Operating Profi
Slide 9: Subsidiary Performance: Overseas
1Q 2019 Earnings Release â”, April 24, 2019 Subsidiary Performance_Overseas ZhangjiagangSTS (ZPSS) PT. Krakatau POSCO POSCO Maharashtra POSCO SS VINA · Sales price decrease led to a shrink in earnings whilevolume improved -Sales volume(+52k tons): (‘18.4Q) 691 → (‘19.1Q) 743-Product price(-5%): Sl
Slide 10: 2019 Business Plan
1Q 2019 Earnings Release â”, April 24, 2019 2019 Business Plan
Slide 11: 2019 Business Plan
1Q 2019 Earnings Release â”, April 24, 2019 2019 Business Plan Parent Consolidated Revenue Crude Steel Production 37.5 million tons Product Sales 35.7 million tons 30.1 5.4 4.5 6.1 20.1 66.3 1.3 tril KRW Reserved (trillion KRW) Capex Debt 1.3 tril KRW Reserved 11
Slide 12: Appendix
1Q 2019 Earnings Release â”, April 24, 2019 ?Appendix Market & Outlook Summarized F/S Parent ï,§Summarized F/S_Consolidated -Global Steel Demand -Domestic Steel Demand -Raw Materials Outlook
Slide 13: Global Steel Demand
1Q 2019 Earnings Release â”, April 24, 2019 Global Steel Demand Chinese Steel Market Demand by Region “Prices will steadily increase on the expectations of Chinese government’s economic stimulus measures” “Global steel demand growth will weaken in 2019 due to uncertainties in the global economy” * B
Slide 14: Domestic Steel Demand
1Q 2019 Earnings Release â”, April 24, 2019 Domestic Steel Demand Demand Industry Steel Supply and Demand (million tons) Shipbuilding Construction Automobile In 1Q 2019, new order volume was down due to ahike in ship price, but is expected to recover from 2Q Construction investment will decrea
Slide 15: Raw Materials Outlook
Raw Materials Outlook Iron Ore Collapse of Vale dam in Brazil in January and March cyclone in West Australia caused supply disruptions, 2019.1Q which skyrocketed iron ore price to record an average of U$83/ton “2Q fine ore price expected at U$82~87/ton” Supply uncertainties will continue until major
Slide 16: Summarized F/S: Parent Income Statement
Summarized F/S _Parent Income Statement 1Q 18 4Q 18 1Q 19 QoQ Crude Steel Production (thousand tons) 9,288 9,504 9,406 -98 Product Sales (thousand tons) 9,294 8,353 9,283 +930 STS 510 446 506 +60 Carbon Steel Sales Price (thousand KRW) 710 746 722 -24 (billion KRW) Revenue 7,761 7,288 7,817 +529 Cos
Slide 17: Summarized F/S: Parent Balance Sheet
Summarized F/S _Parent Balance Sheet (billion KRW) 1Q 18 4Q 18 1Q 19 QoQ Current Assets 16,292 16,796 17,603 +807 Cash Balance* 7,168 7,284 7,734 +450 Accounts Receivable 4,235 3,968 4,449 +481 Inventories 4,530 5,288 4,998 -290 Current Ratio(%) 384.4 431.1 422.7 -8.4%p Non-Current Assets 38,643 37,
Slide 18: Summarized F/S: Consolidated Income Statement
Summarized F/S _Consolidated Income Statement (billion KRW) 1Q 18 4Q 18 1Q 19 QoQ Revenue 15,862 16,621 16,014 -607 Gross Profit 2,386 1,032 1,813 +782 (Gross Margin) (15.0%) (6.2%) (11.3%) (+5.1%p) SG&A 898 -240* 610 +851 Operating Profit 1,488 1,272 1,203 -69 (Operating Margin) (9.4%) (7.6%) (7.5%
Slide 19: Summarized F/S: Consolidated Balance Sheet
Summarized F/S _Consolidated Balance Sheet (billion KRW) 1Q 18 4Q 18 1Q 19 QoQ Current Assets 32,908 33,651 34,743 +1,092 Cash Balance* 10,676 10,678 10,887 +209 Accounts Receivable 9,284 9,283 10,067 +784 Inventories 10,303 11,500 11,259 -241 Current Ratio(%) 168.0 177.7 183.5 +5.8%p Non-Current As