Slide 1: 2003. 1H Performance
2003. 1H Performance July 14, 2003 http://www.posco.co.kr
Slide 2: Unaudited financial statements notice
The figures provided in this presentation are based on unaudited financial statements. Certain numbers may be presented differently once audited and the company takes no responsibility and accepts no liability for such changes. All financials in this presentation are based on non-consolidated financ
Slide 3: Contents
Contents ^ 2003. 1H Performance - Operating Performance - Key Business Activities ^ Steel Market Trends - Domestic Steel Market - Global Steel Market
Slide 4: Production / Sales
Production / Sales Refurbishment of #1 Blast Furnace in Kwang Yang ('02.3.5 ~ 6.30) Inventory continued to decrease (Unit:1,000 tons) '02 '02 '03 1H 2H 1H Crude Steel Crude Steel 13,697 14,368 14,031 Product Production Product Production 12,414 13,236 13,443 Sales Volume Sales Volume 13,306 13,887 1
Slide 5: Income Statement
Income Statement (Unit: KRW BN) '02 '02 '03 1H 2H 1H Sales Revenue 5,454 6,274 6,788 Operating Profit 606 1,227 1,559 Ordinary Profit 443 1,023 1,377 Net Income 359 743 1,019 Key Note - Increase in average sales price: 18.7% (YoY) - Recognize an impairment loss of #2 Minimill: KRW 78.8 bn
Slide 6: Financial Structure
Financial Structure (Unit: KRW BN) '02 '02 '03 1H 2H 1H Assets Assets 17,433 17,245 17,622 Current Fixed 3,591 13,843 3,750 13,494 4,683 12,939 Liabilities Liabilities 6,231 5,923 5,392 Debt (Foreign: bn U$) 4,874 (2.2) 4,229 (1.8) 3,835 (1.6) Equity Equity 11,202 11,322 12,230 Key Note - Current as
Slide 7: Key Financial Ratio
Key Financial Ratio '02 '02 '03 1H 2H 1H Operating Profit Margin (%) ROE (%) 11.1 6.6 19.6 10.2 23.0 17.3 Equity / Total Assets (%) EBITDA/Net Interest Expenses (x) Net Debt / Equity (%) 64.3 3.7 33.9 65.7 11.4 26.9 69.4 17.8 14.2
Slide 8: Major Management Activity
Major Management Activity Complete #3 STS Revamping of #1 CCL in Kwang Yang Complete FINEX Demo Plant Objective ? Heighten product-mix through STS capacity expansion ? Improve the quality & expand the strategic products, autos, API ? Reduce production cost & heighten competitiveness by new technolog
Slide 9: Major Management Activity: Sales-Mix
Major Management Activity ? Heighten Sales-Mix focusing on high profit product HR : High Carbon , API, Container, Automobile sheet CR: High tension, EDDQ, DDQ,DQ (Classify by processing convenience) * Ratio of high-profit sales : '02 - 5.0 (22.4%) ^ '03 target 6.2mm ton (25.7%) Corporative product d
Slide 10: Major Management Activity: China Investment
Major management Activity ? Solidifying China Investment Investment on Current Subsidiary ? Dalian: Color coated 50,000 ^ 150,000 ton ('02.3 ~ '03.3) ? Zhangjiagang: STS CR 140,000 ^ 280,000 ton ('02.3 ~ '03.9) ? Shunde: Color coated 150,000 creation ('02.1 ~ '03.3) New Investment ? Establish China
Slide 11: Corporate Governance
? Corporate Governance Strengthen Transparency and Responsibility ? Director Candidate Recommendation and Evaluation Committee: 2 Standing directors, 3 Outside directors ^ 5 Outside directors Declaration of POSCO Business Ethics: '03.6.2 ? Composition: 5 Code of Conduct / 7 Rules of Conduct ^ Design
Slide 12: Contents
Contents ^ 2003. 1H Performance - Operating Performance - Key Business Activities ^ Steel Market Trends - Domestic Steel Market - Global Steel Market
Slide 13: Domestic Steel Market
Domestic Steel Market ? Steel demand industry ^ Automobile : Flat in 2003 based on the strong export and slow domestic market ^ Construction : Slower in 2nd half due to the government's restrictive policy ^ Ship Building : Maintain the strong demand ^ Machinery : Higher demand on back of expectation
Slide 14: Demand-Supply Outlook
? Demand-Supply Outlook (Unit: '000 ton, %) 1H '03 2H '03 2003 YoY Domestic Demand 22.0 (3.6) 22.3 (-0.9) 44.3 1.3 Export 6.81 (5.2) 6.62 (3.7) 13.4 4.5 Production 26.3 (4.0) 26.5 (0.3) 52.8 2.1 Import (Include HRC) 2.56 (3.4) 5.01 (0.5) 2.37 (-2.4) 5.45 (1.5) 4.93 10.46 0.6 1.1 ^ Domestic : Slowdow
Slide 15: Global Steel Market
Global Steel Market ? Stabilizing after short-term correction ^ Demand : Delayed economy recovery in the developed countries - Forecast 4th quarter economy recovery ^ Production : Continue high production in China and the developing countries - Jan ~ May: Increase World crude steel production by 8.6