Posco Holdings Inc. · KRX:005490
Posco — Q1 2018 Earnings Presentation
13 slides from Posco's earnings presentation, Apr 24, 2018
Slide 1: POSCO 2018 1Q Earnings Release
POSCO 2018 1Q Earnings Release April 24, 2018
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 first quarter of 2018. As figures in this presentation are based on unaudited fina
Slide 3: Parent Performance (Production/Sales)
Parent Performance (Production/Sales) Sales Volume Went Up and Strong Steel Price Trend Continued while World Premium Product Sales Portion Increased (thousand tons, thousand KRW/ton) 1Q 17 4Q 17 1Q 18 QoQ Crude Steel Production 9,081 9,567 9,288 -279 Product Production 8,706 8,958 9,072 +114 STS 48
Slide 4: Parent Performance
Parent Performance Achieved 1 trillion KRW of Quarterly Operating Profit on Revenue Expansion and SG&A Cost Reduction (billion KRW) 1Q 17 4Q 17 1Q 18 QoQ Revenue 7,067 7,097 7,761 +664 Cost of Goods Sold 5,843 5,774 6,290 +516 Gross Profit 1,224 1,323 1,471 +148 (Gross Margin) (17.3%) (18.6%) (19.0%
Slide 5: Consolidated Performance
Consolidated Performance Recorded a Large Scale Profit Growth Driven by Enhanced Earnings in Steel and Non-Steel Segments Alike (billion KRW) 1Q 17 4Q 17 1Q 18 QoQ Revenue 15,077 15,597 15,862 +265 Gross Profit 2,258 2,230 2,386 +156 (Gross Margin) (15.0%) (14.3%) (15.0%) SG&A 893 1,078 898 -180 Ope
Slide 6: Aggregated Earnings by Segment
Aggregated Earnings by Segment Aggregated Profits Were Lifted on Improvement in Most Segments (billion KRW) Revenue Operating Profit Net Profit Segment 1Q 17 4Q 17 1Q 18 1Q 17 4Q 17 1Q 18 1Q 17 4Q 17 1Q 18 Steel 12,259 11,836 12,508 1,023 954 1,184 1,009 492 833 Trading 8,279 8,536 9,322 127 99 160
Slide 7: Consolidated Performance (B/S)
Consolidated Performance (B/S) Current Assets including Cash Balance Rose, Dividends Payable and Liabilities Temporarily Increased 1Q 17 4Q 17 1Q 18 QoQ Current Asset 29,351 31,127 33,049 +1,922 Cash Balance* 7,821 9,595 10,676 +1,081 Accounts Receivable 9,765 8,951 9,426 +475 Inventories 9,489 9,95
Slide 8: Domestic Subsidiaries (Parent-based)
Domestic Subsidiaries (Parent-based) POSCO Daewoo POSCO E&C Profits showed significant growth on strong performance Earnings gained on cost reduction including in steel trading SG&A despite slowed progress of major projects (billion KRW) 1Q 17 4Q 17 1Q 18 QoQ 1Q 17 4Q 17 1Q 18 QoQ Revenue 4,856 5,26
Slide 9: Overseas Subsidiaries (Parent-based)
Overseas Subsidiaries (Parent-based) PT. Krakatau POSCO Zhangjiagang STS (ZPSS) Crude steel production slipped due to maintenance but Earnings down due to the Chinese New Year holidays, operating profit went up on sales price increase and cost heightened competition from increasing low-priced reduct
Slide 10: 2018 Business Plan
2018 Business Plan (trillion KRW, million tons) Business Plan 2017(A) 2018 Revenue 28.6 30.1 Crude Steel 37.2 37.6 Production Parent Product Sales 34.7 35.9 Capex 1.7 2.9 Debt 3.9 3.8 Revenue 60.7 63.0 Consolidated Capex 2.6 4.2 Debt 21.1 20.1 2018 1Q Earnings Release â”, April 24, 2018
Slide 11: (Appendix) Global Steel Demand
(Appendix) Global Steel Demand Chinese Steel Market Demand by Region winter production cut ended” with recovery of emerging market” As the Chinese government’s winter curtailment policy is finished as of The U.S. and developed countries will show 2% range demand March 15, Chinese mills’ production i
Slide 12: (Appendix) Domestic Steel Demand
(Appendix) Domestic Steel Demand Demand Industry Outlook Automobile Shipbuilding Construction Production in 2H will remain weak due to New orders will pick up on the recovery of Construction investment softened due to the sluggish domestic and export markets and global shipbuilding market bottomed o
Slide 13: (Appendix) Raw Materials Outlook
(Appendix) Raw Materials Outlook Iron Ore Coking Coal In Jan. and Feb., iron ore price remained high at an average of With sound demand for coal in China and India, weather U$77/ton due to steelmakers’ restocking demand before the Chinese New Year. Decrease of steel product prices and disruptions in