Posco Holdings Inc. · KRX:005490
Posco — FY2014 Earnings Presentation
29 slides from Posco's earnings presentation, Feb 5, 2015
Slide 1: 2015 Investor Forum
Exhibit 99.1 2015 Investor February 5, 2015 Forum
Slide 2: 2014 Business Performance, 2015 Business Plan, Major Activities
2014 Business 2015 Figures Operating Major in this Business presentation Plan Performance Activities are based on unaudited financial statements of the company. Certain contents in this presentation are subject to change during the course of auditing process.
Slide 3: 2014 Consolidated Operating Performance
*3POSCO 2014 Consolidated Operating Revenue 65,098 63,604 61,865 +3,233 2,386 3,214 2,996 +218 ·Temporary (in 2012 Steel Trade E IEnergy Chem/Mat’l/Others Devaluation C&billion TC52,869 Operating 2013 2012 1,132 557 798 26,414 9,726 5.7% OP Margin 3,653 2,881 based Operating KRW)(in KRW) profit 4.9%
Slide 4: 2014 Parent Operating Performance
2014 Parent Production (in 37,986 883 37,650 Crude 35,517 +408 Products Operating Profit [WP* 2012 Carbon S *Steel in *World 4POSCO (Gwangyang) TJuly thousand S 34,293 +1,234 Operating 2013 Revenue 1,969 Product 36,416 Income (Capacity Carbon Steel +785 36,017 Premium: Earnings 2,790 profit 2,215 20
Slide 5: 2014 Consolidated Financial Structure
2014 Consolidated (in 84,455 85,252 +797 79,266 Liabilities Equity to 36,836 38,633 2012 ·Borrowings on 5POSCO DWI marketable billion Operating 2013 45,822 +945, 39,961 86.8% 84.3% +1,328 Earnings KRW)(in ratio 42,430 2014 ofP-Energy Financial 88.2% 45,291 securities affiliates went Performance 2012
Slide 6: 2014 Business Operating Performance
2014 Business 2015 Operating Major Business Plan Performance Activities
Slide 7: 2014 Major Business Activities Overview
Strengthen Fortify Competitive- Steel ness Acti- Growth Financial Improve vities Corporate Renew Structure Consolidated Culture E Mid-term Target Result 6.2 6.5 5.4 2014 7POSCO B3.0 5.6 4.2 Ireinforce 2015 Prioritize T8.5 7.3 4.4 “Develop DBiz. Earnings “Conduct Management Result A “Spread Target 3.
Slide 8: Fortify Steel Competitiveness: Expanded Solution Marketing
2014 Fortify Expanded Solution -Provided and such [Case Renault high- Mg Automobile lowered (compact high-strength ·UAE Construction *High-Mn 8POSCO Lower Reinforced Cost Gained pickled-and-oiled plate services as Business No.4 strength studies reduction Steel light-weight weight LG weight Earnings
Slide 9: Fortify Steel Competitiveness: Normalized Overseas Operations
2014 Fortify Normalized Overseas Sales new [Technologies WF 17 *CEM Built 2013 *16 Indonesian since profit-making integrated FINEX—Capacity: ·demo CEM* 2014.1H 9POSCO Signed License WF/WB® types WB overseas mills Business 2014 base the of premium) plant engineering Steel overseas Earnings MOU (ex. 2
Slide 10: Prioritize New Growth Businesses: Lithium, Nickel
2014 Prioritize Lithium Verified for Argentina (Dec) -such #1 2Plant(‘11) POSCO FeNi(18%Ni) Process Dry process Wet Limonite(1.5%Ni) material 10 Completed Registered Reviewed tons/yr Pilot commercialization as Business Proved the #2 self-developed direct-extraction Nickel Earnings 20 New to Plant(‘1
Slide 11: Improve Financial Structure and Restructuring
2014 Improve Enhanced Raised Company Restruc- Posfine turing Vietnam/Masan Dept. USP Asset Non-core POS Sales Other Gilsan Assets Collect Liquida- *tion POSCO 11Account Liquidate Russia) Tower Business Store SKT Unused Steel, P-E&C, non-debt &Hahn Earnings Financial POSCO-SS Long-term Buyer Collect—
Slide 12: Renew Corporate Culture
2014 Renew Settled Stronger Formed QSS+, designed Provided through executives Type -Focused Research) PWS projects —Promoted QSS+ operating —Supported *SWP environment POSCO 12POSTIM Innovation Contents Business that Employee to SWP Corporate project-based organization expansion to Earnings improve
Slide 13: Major Daewoo International Business Activities
201470% Major Daewoo Profit gasfield reached market DWI Operating 2013 Explored Nigeria Region Over- seas(mgmt Dome- stic East Comprehensive and POSCO 13 financial Sea Total Business 2014 contribution Myanmar Subsidiaries remained development Mine Coal-fired its business Earnings International 6-1C
Slide 14: Major Subsidiaries Business Activities: Power
2014Fulfill Major Diversified coal-fired Tong power +229% 379 able Coal- fired 2013 [New Project Coil-fired Pos-Power Pohang Off-gas LNG POSCO 14 [Power Business 2014 2014—Natural Yang Incheon projects] manufacturing Subsidiaries plants Capacity 1,248 No.2 Indonesia Energy Earnings power Mong Power
Slide 15: 2015 Business Plan
2014 Business 2015 Operating Major Business Plan Performance Activities
Slide 16: Fortify Steel Competitiveness: Sales Expansion
2015portion Fortify Sales Expand start (thousand Pohang) Domestic Gwangyang) Overseas India) Reinforce TSC* —Global based WP Strengthen —Target activities raw Raw 2014 *TSC: **Including POSCO 16 material operating—Upgrade materials Business 2015 Volume sales expansion CR Technical Steel global sales
Slide 17: Fortify Steel Competitiveness: Reinforce Strategy
*17 2015 Fortify Reinforce Strategy Sign Chongqing —Grade 1Q) 2Q) 3Q) 4Q) pursue Make Subsidiaries FINEX/CEM Steel [S] [A] [B] proceed Optimize -Vietnam inFINEX) CEM) technology 50 POSCO95 76 Ratification Korean Decide BOD JVA [Technology] Business successful types types, JV Steel Joint-marketing fe
Slide 18: Prioritize New Growth Businesses: Commercialize Fundamental Technology
*18 2015 Prioritize Commercialize Fundamental Pursue direct — technology know-how Secure Gwangyang Gradual Yeosu -smelting in —Review stable (Indonesia, first Conduct Set advance Make POSCO domestic the Business lithium supply salar global commercialization MCFC(Molten optimal technology options New
Slide 19: Improve Financial Structure: Restructuring and CAPEX
2015 Improve Restructuring/CAPEX Speed asset -which loss-making Consolidated —Focus core Steel) Non-steel) materials, 2014 [Consolidated] POSCO 19Finalize Execute competitiveness disposal Business 2015 WP upEarnings wasFinancial only the group exit strategic etc development, Resource planned 2014 bu
Slide 20: Renew Corporate Culture: Streamline and Delegate
11 2015 Renew Streamline Delegate —Put improving Reorganize as and -Improve in Africa POSCO entity, Increase Operate aE&C/Energy/IT fortify group Business P-China, P-Thai, 20 efforts in POSCO Corporate Australia Russia POSCO South Middle-management and operating charge middle-management regional eff
Slide 21: Major Daewoo International Business Plan
2015 Major Daewoo Resource regions, Trade: —Finalize provisions, -Expand — developing Overseas: regions Region Middle *S.America POSCO 21 Continue Expand Energy Steel Planning/Engineering/Procurement/Construction/Operating/Maintenance Produce Business Subsidiaries Nurture :Order East/Africa Group pl
Slide 22: 2015 Business Plan Targets
2015 2015(F) Consolidated 2014 Revenue(trillion Crude Product Investment(trillion —POSCO POSCO 22 Business Steel Sales(“) Earnings Revenue(“) Investment(“) Production Business Plan KRW) 34.3. Release KRW)35.9 Target 29.2. (million 65.1 3.0 5.4 February 29.3 67.4 2.9 4.2tons) 5, 37.7 201538.4
Slide 23: Appendix: Financial Statements, Business Environment
1. Financial Appendix 2. Business Environment Statements – Steel Demand, Raw Materials
Slide 24: Global Steel Demand and China's Economy
Appendix#1. Global China’s “Steel Domestic Demand economy [China’s 52.6 48.3 46.4 44.2 40.7 20.9 15.6 14.2 ‘14.1 [Steel (million US India *SE POSCO World Mysteel, Asia 96 Steel 48.6 46.0 43.6 39.9 19.4 16.7 13.4 72 2Demand price 96 Steel 3Steel 59 Steel tons) 2012 Earnings 74 in Inventories 4growth
Slide 25: Domestic Steel Demand
Appendix#1. Domestic Demand sales 4,559 Automobile Building Shipbuilding Investment Construction Orders Steel (in 2012 YoY Nominal Export Production Import *Incl. POSCO POSRI(Jan, thousand YoY Semi-Product despite Demand 2013 (million (trillion sales 30,485 12,502 Earnings Outlook Consumption toStee
Slide 26: Raw Materials: Iron Ore and Coking Coal Prices
Appendix#1. Raw Iron Monthly (Oct) 2014.4Q with environmental “Annual within 2015 Outlook major not high [Iron 133 148 120 126 103 143 90 74 2013 1Q *Platts POSCO 113 74 2Q yet 135 155 122 Ore Chinese production Materials Ore 2015 2013 to suppliers US$$US75/ton” 3Q 112 62% seen US69/ton, Earnings 16
Slide 27: What It Takes: Steel Solution Marketing
“What It “Steel Support” S + = Solution Software Hardware Downstream Cheaper Prompt Parts Welding Painting Forming Commercial Application POSCO Cost Support Business Logistics Delivery Evaluation Technology teel is solving Product” isEarnings Solution (Software) customers’ Financial (hardware) Relea
Slide 28: Summarized Consolidated Income Statements
Appendix#2. Summarized (in 2012 Revenue Gross (Gross Selling Operating (Operating Other Share Equity-accounted Finance Foreign & Net (Net Owners Company POSCO Translation billion Profit Margin)(3.8%)(2.2%)(0.9%) 2013 Operating of Profit Margin)(11.7%)(11.1%)(11.2%) &of Currency Items Earnings Profit
Slide 29: Summarized Consolidated Financial Position
Appendix#2. Consolidated (in 2012 Cash Account Inventories Other Financial PP&E Liabilities Current Non-Current (Interest-bearing Equity Owners Controlling *Total and POSCO Cash billion Derivatives Assets 2013 & Liabilities Long-term 32,276 42,430 &Assets Financial Liabilities of Earnings Receivable