Posco Holdings Inc. · KRX:005490
Posco — FY2019 Earnings Presentation
20 slides from Posco's earnings presentation, Feb 3, 2020
Slide 1: 2019 Earnings Release
2019 Earnings Release January 31, 2020 Posco With 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 2019. As figures in this presentation are based on unaudited financial statem
Slide 3: Contents
Contents 2019 Business Performance- Parent Performance- Consolidated Performance- Subsidiary Performance 2020 Business Outlook Mid-term Dividend Policy (FY2020~FY2022) 2019 Earnings Release January 31, 2020
Slide 4: Parent Performance: Production / Sales
Parent Performance Production / Sales Production Sales38,007 YoY YoY(thousand tons) 37,738 (thousand tons, %)+269 35,99037,206 35,588 +402Crude Steel Sales Volume 34,70957.555.3 35,989 35,901 -88 Domestic Product 54.0 -2.2%p 35,210 Sales Ratio WTP +0.9%pSales Ratio 30.4 29.72017 2018 2019 2017 2018
Slide 5: Parent Performance: P/L and Financial Structure
Parent Performance P/L Financial Structure(billion KRW) 30,659 YoY YoY30,374 22.1% 19.6% -285 16.9%Revenue Liabilities28,554 +2.5%p Ratio3,809Operating 2,903Profit 2,586 -1,22312.4% 10.2%Net Debt -2.35% -3.9%p -2.5 +0.5 OP Margin (trillion KRW)-3.02017 2018 2019 2017 2018 2019 Operating profit reduc
Slide 6: Consolidated Performance
Consolidated Performance P/L Financial Structure(billion KRW) YoY YoY64,978 66.5% 67.3%64,367-611Revenue 60,655 Liabilities65.4%Ratio -1.9%pOperating 5,5434,622 -1,674 Profit 3,8698.5% 11.57.6% Net Debt 9.56.0% -2.5%p 8.0 -1.5 OP Margin (trillion KRW)2017 2018 2019 2017 2018 2019 While Global & Infr
Slide 7: Subsidiary Performance: Domestic
Subsidiary Performance Domestic POSCO International POSCO E&C· Achieved largest operating profit on strong performance in · Revenue increased by accelerating construction progress production/sales of Myanmar gas business while trading rate in housing segment, but operating profit went down revenue w
Slide 8: Subsidiary Performance: Overseas
Subsidiary Performance Overseas PT. Krakatau POSCO Zhangjiagang STS (PZSS)·Production/sales marked the highest, but operating · While sales volume peaked led by WTP sales growth, profit shrank due to raw material price hike and weaker operating profit decreased due to declined mill margin sales of h
Slide 9: 2020 Business Outlook
2020 Business Outlook Parent Consolidated (trillion KRW)30.0 Revenue 63.8Crude Steel Production 36.7 million tons Product Sales 35.0 million tons4.1 Capex* 6.07.2 Debt 22.0 * 2019 capex execution rate : Parent 70%, Consolidated 50% 9
Slide 10: Mid-term Dividend Policy (FY2020~FY2022)
Mid-term Dividend Policy (FY2020~FY2022)Improve predictability of dividend policy by announcing mid-term target Dividend Policy Dividend Per Share Target Pay-out Ratio around 30% (KRW)(Based on the profit attributable to owners of the controlling company)10,000 10,000In calculating the profit, one-o
Slide 11: Appendix
Appendix Market & Outlook- Global Steel Demand- Domestic Steel Demand- Raw Materials Outlook Summarized Financial Statements Aggregated Earnings by Segment Earnings Trend and Financial Soundness 2019 Earnings Release January 31, 2020
Slide 12: Global Steel Demand
Global Steel Demand Chinese Steel Demand Demand by Region “Chinese steel price continued to be strong with winter “Global steel demand growth in 2020 likely to slow down with production cut while steel demand sustained solid” low economic growth rate and continued trade dispute”? Construction sector
Slide 13: Domestic Steel Demand
Domestic Steel Demand Demand Industry Automobile Shipbuilding Construction In 2020, auto production may fall under 4 mn New orders expected to grow as global Construction investment will decrease yoy units due to delayed recovery in domestic and demand recovers along with environment- but the rate w
Slide 14: Raw Materials Outlook
Raw Materials Outlook Iron Ore Coking Coal Demand was significantly weakened due to Chinese While steel demand is slack, iron ore supply increased government’s strict regulation on coal import, credit by major miners, which lowered the price down under crunch in India and continued depression of ste
Slide 15: Summarized F/S: Parent Income Statement
Summarized F/S Parent Income Statement2017 2018 2019 YoY Crude Steel Production (thousand tons) 37,206 37,738 38,007 +269Product Sales (thousand tons) 34,709 35,588 35,990 +402STS 1,997 2,001 1,968 -33Carbon Steel Sales Price (thousand KRW) 691 733 722 -11(billion KRW)Revenue 28,554 30,659 30,374 -2
Slide 16: Summarized F/S: Parent Balance Sheet
Summarized F/S Parent Balance Sheet(billion KRW)2017 2018 2019 YoY Current Assets 14,840 16,796 18,216 +1,420 Cash Balance* 6,157 7,285 8,822 +1,537 Accounts Receivable 3,868 3,968 3,987 +19 Inventories 4,544 5,288 4,989 -299Current Ratio 415.7% 431.1% 546.8% +115.7%p Non-Current Assets 38,852 37,33
Slide 17: Summarized F/S: Consolidated Income Statement
Summarized F/S Consolidated Income Statement(billion KRW)2017 2018 2019YoYRevenue 60,655 64,978 64,367 -611Gross Profit 8,356 7,972 6,250 -1,722(Gross Margin) (13.8%) (12.3%) (9.7%) (-2.6%p)SG&A 3,734 2,430 2,382 -48Operating Profit 4,622 5,543 3,869 -1,674(Operating Margin) (7.6%) (8.5%) (6.0%) (-2
Slide 18: Summarized F/S: Consolidated Balance Sheet
Summarized F/S Consolidated Balance Sheet(billion KRW)2017 2018 2019 YoY Current Assets 31,127 33,651 34,842 +1,191Cash Balance* 9,595 10,678 12,463 +1,785 Accounts Receivable 8,951 9,283 9,078 -205 Inventories 9,951 11,500 10,920 -580 Current Ratio 164.3% 177.7% 213.5% +35.8%p Non-Current Assets 47
Slide 19: Aggregated Earnings by Segment
Aggregated Earnings by Segment (billion KRW)Revenue Operating Profit Net Profit Segment2017 2018 2019 2017 2018 2019 2017 2018 2019Steel 47,611 50,421 49,808 3,605 4,516 2,687 2,791 1,272 586 Global & Infra 45,892 50,409 49,808 995 1,033 1,180 304 -14 657 Trading 34,878 38,319 37,625 423 491 654 113
Slide 20: Earnings Trend and Financial Soundness
Earnings Trend and Financial Soundness Maintain profitability and improve financial structure continuously against market volatility Operating Profit Financial Structure (tn KRW) Parent Consolidated Consolidated (%) Parent Consolidated Cash Bal(L) Cash Bal(L) Liabilities Ratio(R) 6.0 (tn KRW) 5.6 5.