Posco Holdings Inc. · KRX:005490
Posco — Q3 2017 Earnings Presentation
13 slides from Posco's earnings presentation, Oct 26, 2017
Slide 1: POSCO 2017 3Q Earnings Release
October 26, 2017 POSCO 2017 3Q Earnings Release Exhibit 99.1
Slide 2: 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 third quarter of 2017. As figures in this presentation are based on unaudited financial state
Slide 3: Parent Performance (Production/Sales)
Parent Performance (Production/Sales) 3Q Business Performance 3Q 16 2Q 17 3Q 17 QoQ Crude Steel Production 9,800 8,801 9,751 +950 Product Production 9,304 8,520 9,026 +506 STS 504 518 518 - Product Sales 8,945 8,463 8,961 +498 STS 505 509 521 +12 Carbon Steel Sales Price 570 705 687 -18 WP Sales Rat
Slide 4: Parent Performance
Parent Performance 3Q 16 2Q 17 3Q 17 QoQ Revenue 6,106 7,134 7,255 +121 Cost of Goods Sold 4,816 6,133 6,082 -51 Gross Profit 1,290 1,001 1,173 +172 (Gross Margin) (21.1%) (14.0%) (16.2%) SG&A 438 416 451 +35 Operating Profit 852 585 722 +137 (Operating Margin) (14.0%) (8.2%) (9.9%) Non-Operating Pr
Slide 5: Consolidated Performance
Consolidated Performance 2Q 17 3Q 17 QoQ Steel 715 912 +197 POSCO 585 722 +137 Overseas Steel 64 143 +79 Non-Steel 253 239 -14 Total 968 1,151 +183 ※ Aggregated Operating Profit by Segment ○ Net profit grew by selling investment securities 3Q 16 2Q 17 3Q 17 QoQ Revenue 12,748 14,944 15,036 +92 Gross
Slide 6: Aggregated Earnings by Segment
Aggregated Earnings by Segment Segment Revenue Operating Profit Net Profit 3Q16 2Q17 3Q17 3Q16 2Q17 3Q17 3Q16 2Q17 3Q17 Steel 10,727 11,598 11,919 1,006 715 912 663 535 755 Trading 6,364 9,586 8,477 87 103 93 -5 15 13 E & C 1,903 1,808 1,821 -103 65 32 -169 -6 31 Energy 378 356 439 4 31 60 -18 10 34
Slide 7: Consolidated Performance (B/S)
Consolidated Performance (B/S) 3Q 16 2Q 17 3Q 17 QoQ Current Asset 27,439 29,876 30,892 +1,016 Cash Balance* 8,050 7,533 8,548 +1,015 Accounts Receivable 8,656 9,702 9,759 +57 Inventories 7,903 9,712 9,820 +108 Current Ratio (%) 161.9 157.6 167.8 +10.2%p Non-Current Asset 49,624 49,632 49,089 -543 O
Slide 8: Subsidiary Performance (Domestic, Parent Basis)
Subsidiary Performance (Domestic, Parent Basis) 8 POSCO Daewoo POSCO E&C 3Q 16 2Q 17 3Q 17 QoQ Revenue 4,191 5,663 5,110 -553 Operating Profit 74 87 91 +4 Net Profit 20 16 33 +17 3Q 16 2Q 17 3Q 17 QoQ Revenue 1,664 1,564 1,600 +36 Operating Profit -69 55 27 -28 Net Profit -119 23 19 -4 * Includes PE
Slide 9: Subsidiary Performance (Overseas, Parent Basis)
9 PT. Krakatau POSCO POSCO SS-VINA 3Q 16 2Q 17 3Q 17 QoQ Revenue 87 108 121 +13 Operating Profit -14 -20 -3 +17 Net Profit -19 -25 -8 +17 3Q Earnings Release │ October 26, 2017 Jiangjiagang STS (ZPSS) Size of loss contracted on expansion of section steel sales and rise of product price 3Q 16 2Q 17 3
Slide 10: Business Projection
Business Projection Business Plan 2016 2017 Plan Projection POSCO Revenue 24.3 25.6 28.8 Crude Steel Production 37.5 37.0 37.1 Product Sales 35.9 34.6 34.9 Capex 2.0 2.6 2.3 Net Debt -0.1 -1.4 -1.4 Consolidated Revenue 53.1 54.8 59.5 Capex 2.5 3.5 3.3 Net Debt 15.1 13.4 13.9 3Q Earnings Release │ Oc
Slide 11: (Appendix) Global Steel Demand
(Appendix) Global Steel Demand 3Q Earnings Release │ October 26, 2017 Chinese Steel Market Demand by Region “Strong market trend continues driven by supply reform” “Global steel demand will gradually increase in 2018 on strong demand in emerging market” * CRU(2017.10), CFLP(2017.10) (million tons) *
Slide 12: Industry Outlook: Steel Supply and Demand
3Q Earnings Release │ October 26, 2017 2014 2015 2016 2017(f) 1Q 2Q 3Q 4Q YoY Nominal Consumption 55.5 55.8 57.1 56.2 14.3 14.3 14.2 13.3 - 2.4% Export 32.3 31.6 31.0 32.4 8.0 7.9 8.2 8.1 + 1.9% Production 74.1 74.1 74.3 77.3 19.1 19.3 19.9 18.9 + 1.9% Import 13.7 13.2 13.7 11.2 3.2 2.9 2.5 2.6 - 16
Slide 13: (Appendix) Raw Materials Outlook
(Appendix) Raw Materials Outlook Coking Coal 2017.3Q 2017.4Q (US$/ton) [Coking Coal Price] 2016 1Q 2016 2Q 2016 3Q 2016 4Q 2017 1Q 200 285 2017 2Q 2015 4Q 191 2017 3Q 81 89 84 93 2017 4Q(f) Iron Ore 2017.3Q 2017.4Q (US$/ton) [Iron Ore Price] 2015 4Q 2016 1Q 2016 2Q 2016 4Q 2017 1Q 2017 2Q 86 2016 3Q