Posco Holdings Inc. · KRX:005490
Posco — FY2018 Earnings Presentation
17 slides from Posco's earnings presentation, Jan 31, 2019
Slide 1: 2018 Earnings Release
Osco 2018 Earnings Release January 30, 2019 (ojith POSco
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 2018. As figures in this presentation are based on unaudited financial statem
Slide 3: Contents
Contents Parent Performance 4 Consolidated Performance 6 Subsidiary Performance 8 Mid-term Strategy 10 2019 Business Plan 12 [Appendix] 13· Global/Domestic Demand· Raw Materials Outlook· Annual Earnings Trend· Aggregated Earnings by Segment
Slide 4: Parent Performance (Production/Sales)
Parent Performance (Production/Sales) Production World and sales Premium(WP) volume increased and domestic on revamp sales of ratio Pohang jumped BF#3 in 2017, (thousand tons, thousand KRW/ton) 2016 2017 2018 YoY Crude Steel Production 37,496 37,206 37,738 +532 Product Production 35,940 35,210 35,98
Slide 5: Parent Performance (P/L)
Parent Performance (P/L) Operating Steel prices profit were recorded lifted on highest positive after market 2011 trend, (4.3tn KRW) (billion KRW) 2016 2017 2018 YoY Revenue 24,325 28,554 30,659 +2,105 Cost of Goods Sold 19,904 23,833 25,728 +1,895 Gross Profit 4,421 4,721 4,931 +210 (Gross Margin)
Slide 6: Consolidated Performance (P/L)
Consolidated Performance (P/L) Consolidated operating profit marked 5.5tn KRW, highest in 8 years after 2010(5.6tn KRW) (billion KRW) 2016 2017 2018 YoY Revenue 53,084 60,655 64,978 +4,323 Gross Profit 6,690 8,356 7,972 -384 (Gross Margin) (12.6%) (13.8%) (12.3%) SG&A 3,845 3,734 2,430 -1,304 Operat
Slide 7: Consolidated Performance (B/S)
Consolidated Performance (B/S) Cash Financial balance structure increased strengthened on largely by improved debt repayment earnings, (billion KRW) 2016 2017 2018 YoY Current Assets 29,304 31,127 33,651 +2,524 Cash Balance* 7,623 9,595 10,678 +1,083 (Parent-based Cash Balance) 4,252 6,157 7,284 +1,
Slide 8: Domestic Subsidiaries (Parent-based)
Domestic Subsidiaries (Parent-based) · Trading segment earnings strengthened contributed by positive steel market (billion KRW) 385 353 304 [Operating Profit] [Net Profit] 124 150 98 2016 2017 2018 · Operating of LNG and profit off-gas slipped power due generation, to price increase turned for net f
Slide 9: Overseas Subsidiaries (Parent-based)
Overseas Subsidiaries (Parent-based) · Achieved strongest performance since operation started in 2014 backed by growth of high-priced plate sales and price increase, also turned net profit - Plate sales : ‘17) 976k → ‘18) 1,154k tons (+178k182 tons) [Operating Profit] 28 [Net Profit] 13 (million U
Slide 10: Mid-term Business Strategy
Mid-term Business Strategy Fortify leadership in steel, Strengthen competitiveness of non-steel, Foster new growth businesses Expand premium product sales/Effectively respond Steel to trade protectionism [Premium] Optimize mass production of high-value added products incl. World First/World Best pro
Slide 11: New Growth Business – Energy Materials
New Growth Business – Energy Materials Strengthen secondary battery business and maximize synergy between cathode and anode materials through business integration Secondary battery material business aimed to achieve 2 trillion KRW revenue in 2021 Lithium Optimize operation technology, 65k ton capaci
Slide 12: 2019 Business Plan
2019 Business Plan (trillion KRW, million tons) Business Plan 2018 2019 Revenue 30.7 30.1 Crude Steel Production 37.7 37.5 Parent Product Sales 35.6 35.7 Capex 2.61) 5.42) Debt 4.3 4.5 Revenue 65.0 66.3 Consolidated Capex 2.71) 6.12) Debt 20.2 20.1 1) 90% on parent and 64% on consolidated of 2018 pl
Slide 13: [Appendix] Global Steel Demand
[Appendix] Global Steel Demand “Weak pricing continues due to relaxed supply reduction coupled with demand slowing down” ✓ Economic growth slows and demand industries are weak - Economic growth rate in ’18 down to 6.6%, car production reduced by 4.2% ✓ Eased environment control to stimulate depresse
Slide 14: [Appendix] Domestic Steel Demand
[Appendix] Domestic Steel Demand Automobile ✓ Production decrease will slow down on slight recovery of domestic demand supported by government policy in ‘19 Production (thousand cars) 4,229 4,115 4,029 3,991 2016 2017 2018 2019(f) Shipbuilding ✓ More new orders of environment-friendly ships will com
Slide 15: [Appendix] Raw Materials Outlook
[Appendix] Raw Materials Outlook · Increased demand with upcoming environmental control by Chinese government during winter season pushed 2018.4Q up the price higher than U$75/ton for a short period · With steel price coming down, 4Q iron ore price marked an average of $72/ton “1Q fine ore price out
Slide 16: [Appendix] Annual Earnings Trend
[Appendix] Annual Earnings Trend Recorded highest consolidated earnings since 2010(5.6tn KRW), Continued to enhance group financial structure (trillion KRW) Parent Consolidated 6 5.55 5.47 5.54 4.8 5 4.6 4.3 3.9 3.8 4 3.7 3.1 3.2 3.0 2.9 2.8 2.8 3 2.4 2.6 2.2 2.4 2.2 2 1 0 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘1
Slide 17: [Appendix] Aggregated Earnings by Segment
[Appendix] Aggregated Earnings by Segment Operating profit improved on domestic and overseas steel, trading segments (billion KRW) Segment Revenue Operating Profit Net Profit 2016 2017 2018 2016 2017 2018 2016 2017 2018 Steel 42,906 47,611 50,421 2,927 3,605 4,513 1,511 2,791 1,268 (+908) Trading 26