Slide 1: 2014 1Q Earnings Release
2014 1Q Earnings Release April 24, 2014
Slide 2: 1Q Operating Performance
1Q Operating Performance 1Q Operating Performance 1Q Operating Performance - Consolidated - Consolidated - POSCO - POSCO - Subsidiaries - Subsidiaries Business Environment Business Environment Business Environment 2014 Business Plan 2014 Business Plan 2014 Business Plan ^ Figures in this presentatio
Slide 3: Consolidated Performance: Income
Income 3 POSCO Earnings Release |April 24, 2014 Revenue Operating Profit Net Profit 2013.1Q 2013.4Q 2014.1Q 2013.1Q 2013.4Q 2014.1Q 2013.1Q 2013.4Q 2014.1Q 14,582 16,529 717 744 4.9% 4.5% 292 258 15,440 4.7% 731 56 (billion KRW) (billion KRW) (billion KRW) OP Margin Operating profit margin climbed a
Slide 4: Income by Sector
Income by Sector Revenue Operating Profit 2013.1Q 2014.1Q Steel Non-steel Revenue Revenue Revenue Operating Profit Operating Profit Operating Profit Net Profit Net Profit Net Profit 2013.1Q 2013.4Q 2014.1Q 2013.1Q 2013.4Q 2014.1Q 2013.1Q 2013.4Q 2014.1Q Steel 12,027 12,074 11,945 619 565 519 414 290
Slide 5: Financial Structure
Financial Structure 5 Assets Liabilities Equity 2013.1Q 2013.4Q 2014.1Q 2013.1Q 2013.4Q 2014.1Q 2013.1Q 2013.4Q 2014.1Q 82,253 84,455 39,638 38,633 93.0% 84.3% 42,615 45,822 Liabilities to Equity 40,580 89.6% 45,311 85,891 Liabilities went up as short-term debt of subsidiaries rise, including Daewoo
Slide 6: Summarized Statements of Income
Summarized Statements of Income 6 2013.1Q 2013.4Q 2014.1Q 2013.1Q 2013.4Q 2014.1Q QoQ(%) Revenue Revenue 14,582 16,529 15,440 ^ 6.6 Gross Profit Gross Profit 1,674 1,781 1,688 ^ 5.2 (Gross Margin) (Gross Margin) (11.5%) (10.8%) (10.9%) - Selling & Admin. Expenses Selling & Admin. Expenses 957 1,038
Slide 7: Summarized Statements of Financial Position
Summarized Statements of Financial Position 7 2013.1Q 2013.4Q 2014.1Q 2013.1Q 2013.4Q 2014.1Q QoQ (%) Current Assets Current Assets 31,985 31,666 32,780 + 3.5 Cash & Financial Goods* 6,226 7,179 6,725 ^ 6.3 Account Receivable 11,812 11,493 12,348 + 7.4 Inventories 10,610 9,798 10,760 + 9.8 Non-Curre
Slide 8: 1Q Operating Performance - POSCO
1Q Operating Performance 1Q Operating Performance 1Q Operating Performance - Consolidated - Consolidated - POSCO - POSCO - Subsidiaries - Subsidiaries Business Environment Business Environment Business Environment 2014 Business Plan 2014 Business Plan 2014 Business Plan ^
Slide 9: Production and Sales
Production · Sales 9 POSCO Operating Performance Crude Steel Production Product Sales 2013.1Q 2013.4Q 2014.1Q 2013.1Q 2013.4Q 2014.1Q 2013.1Q 2013.4Q 2014.1Q Carbon Steel 8,608 9,040 8,837 S T S 461 527 465 2013.1Q 2013.4Q 2014.1Q Domestic 4,886 4,808 4,679 Export 3,552 3,998 3,729 Inventories 977 8
Slide 10: Sales by Product
Sales by Product 10 Automobile* Shipbuilding/Off-shore Plants 2013.1Q 2013.4Q 2014.1Q 2013.1Q 2013.4Q 2014.1Q 599 723 2013.1Q 2013.4Q 2014.1Q 2013.1Q 2013.4Q 2014.1Q YoY QoQ Hot-Rolled 2,002 1,921 1,761 ^ 12.0% ^ 8.3% Plate 1,398 1,444 1,429 + 2.2% ^ 1.0% Wire Rod 538 619 646 + 20.1% + 4.4% Cold-Rol
Slide 11: POSCO Performance: Income
Income 11 Revenue Operating Profit 2013.1Q 2013.4Q 2014.1Q 2013.1Q 2013.4Q 2014.1Q 2013.1Q 2013.4Q 2014.1Q Carbon Steel 782 755 755 (billion KRW) (billion KRW) 7,685 7,708 7,364 581 488 518 7.6% 6.3% 7.0% OP Margin (thousand KRW /ton) Operating profit margin turn upward as selling price remained fla
Slide 12: Financial Structure
Financial Structure 12 2013.4Q 2014.1Q 2013.4Q 2014.1Q 2013.4Q 2014.1Q 54,242 11,931 42,311 Assets Liabilities Equity 54,407 (billion KRW) 28.2% Liabilities to Equity 8,663 Debt 8,452 12,702 Debt ^ 211 41,705 30.5% Liabilities rose as dividends payable and accounts payable increased POSCO Earnings R
Slide 13: Strengthened client-based sales by converging marketing and technology
13 Strengthened client-based sales by converging marketing and technology Customer-Oriented Marketing High-Value Added Products POSCO Earnings Release |April 24, 2014 Sales portion of high-value added industries up Focus on strategic industries, such as automobile, shipbuilding, and energy pipe, etc
Slide 14: Stabilized operation of new overseas steel mills
14 Stabilized operation and performance of new overseas steel mills Overseas Production Sites POSCO Guangdong 2013 35% 2014 1Q 60% Capacity: Automotive Steel 450 Sales volume to Japanese and local automakers expanded POSCO Maharashtr^a 2013 58% 2014 1Q 67% Capacity : Automotive Steel 450 Product-Mix
Slide 15: Financial Structure: Debt Redemption and CAPEX Reduction
15 Financial Structure Debt Redemption Continued to improve cash flow for financial soundness (billion KRW) Cash and cash equivalent 2013/E 1,394 2014 1Q 2,033 + 46% * Parent basis Paid off high interest rate bond Replace dollar-based high interest rate bond issued during the global financial crisis
Slide 16: 1Q Operating Performance - Subsidiaries
1Q Operating Performance 1Q Operating Performance 1Q Operating Performance - Consolidated - Consolidated - POSCO - POSCO - Subsidiaries - Subsidiaries Business Environment Business Environment Business Environment 2014 Business Plan 2014 Business Plan 2014 Business Plan ^
Slide 17: Income of Major Subsidiaries
Income of Major Subsidiaries 17 Subsidiaries Performance Daewoo International Consolidated POSCO Chemtech (billion KRW) 4.3% 5.9% 7.0% 312 340 335 14 20 23 POSCO Energy (billion KRW) 7.3% 7.2% 6.9% 779 691 673 57 50 47 OP Margin 4,014 5,135 4,928 42 46 64 1.0% 0.9% 1.3% POSCO Earnings Release |April
Slide 18: Key Activities
Key Activities 18 Construction Trade Energy Chem./ Materials/ I C T Steel POSCO Specialty Steel : Section steel/rebar plant in Vietnam (construction rate 92%) (Capacity of 1 million ton per year, scheduled to be completed in Dec.) POSCO Energy : Continued to increase power generating capacity and ex
Slide 19: Business Environment
^ 1Q Operating Performance 1Q Operating Performance 1Q Operating Performance - Consolidated - Consolidated - POSCO - POSCO - Subsidiaries - Subsidiaries Business Environment Business Environment Business Environment 2014 Business Plan 2014 Business Plan 2014 Business Plan
Slide 20: Global Steel Demand
Global Steel Demand 20 Business Environment Steel Demand in Major Countries Chinese Steel Market "Steel price rebound expected in 2Q with demand recovery and inventory adjustment" Steel price expected to rebound from April as supply and demand balance recovers due to rapid inventory adjustment after
Slide 21: Domestic Steel Demand
Domestic Steel Demand 21 Business Environment (thousand tons) Steel Demand & Supply Outlook Demand Industry Outlook Automobile Home Appliance Shipbuilding (thousand units) (trillion KRW) 2013.3Q 4Q (million GT) 1,271 966 52 55 3.8 5.9 Production Production Index ('10=100) Building 2Q production will
Slide 22: Raw Materials
2014.1Q 2014.2Q Raw Materials Business Environment Coking Coal (US$/ton) [Coking Coal Price] *Platts HCC Peak Downs Region FOB Australia (Quarterly Average Spot Price) 166 221 173 155 143 2012 2Q 2012 3Q 2012 4Q 2013 1Q 2013 2Q 2013 3Q 142 2013 4Q Iron Ore (US$/ton) [Iron Ore Price] *Platts 62% Fe I
Slide 23: Stainless Steel
Stainless Steel Business Environment Raw materials 2014.1Q 2014.2Q "Ni Price will rise due to limited supply and improved demand" Ni: Price uptrend to continue as Indonesian Nickel export ban remains and NPI* supply reduces Cr: Price is expected to be strong due to STS demand upturn in Europe, U.S.,
Slide 24: 2014 Business Plan
^ 1Q Operating Performance 1Q Operating Performance 1Q Operating Performance - Consolidated - Consolidated - POSCO - POSCO - Subsidiaries - Subsidiaries Business Environment Business Environment Business Environment 2014 Business Plan 2014 Business Plan 2014 Business Plan
Slide 25: Business Plan
Business Plan Business Plan POSCO Earnings Release |April 24, 2014 2013 2014(F) Revenue (consolidated) (trillion KRW) 61.9 63.5 - POSCO Revenue (^) 30.5 30.3 Crude Steel Production (million tons) 36.4 37.9 Product Sales (^) 33.9 34.9 CAPEX (consolidated) (trillion KRW) 8.8 5.7~5.9 - POSCO (^) 4.3 3.
Slide 26: 2014 1Q Earnings Release
2014 1Q Earnings Release April 24, 2014