Posco Holdings Inc. · KRX:005490
Posco — Q2 2014 Earnings Presentation
19 slides from Posco's earnings presentation, Jul 24, 2014
Slide 1: 2014 2Q Earnings Release
2014 2Q Earnings Release July 24, 2014
Slide 2: 2Q Operating Performance - Consolidated
2Q Operating Performance 2Q Operating Performance 2Q Operating Performance - Consolidated - Consolidated - POSCO - POSCO Major Business Activities Major Business Activities Major Business Activities Business Environment Business Environment Business Environment 2014 Business Plan 2014 Business Plan
Slide 3: Consolidated Performance: Income
Income 3 POSCO Earnings Release |July 24, 2014 Revenue Operating Profit Net Profit 2013.2Q 2014.1Q 2014.2Q 2013.2Q 2014.1Q 2014.2Q 2013.2Q 2014.1Q 2014.2Q Consolidated Performance 15,603 903 5.8% 4.7% 241 15,440 731 56 (billion KRW) (billion KRW) (billion KRW) OP Margin Operating profit increased as
Slide 4: Financial Structure
Financial Structure 4 Assets Liabilities Equity 2013.2Q 2014.1Q 2014.2Q 2013.2Q 2014.1Q 2014.2Q 2013.2Q 2014.1Q 2014.2Q 83,707 39,756 43,951 Liabilities to Equity 40,788 45,311 86,099 Liabilities to equity ratio improved as parent-based debt dropped (billion KRW) (billion KRW) (billion KRW) POSCO Ea
Slide 5: Summarized Statements of Income
Summarized Statements of Income 5 2013.2Q 2014.1Q 2014.2Q 2013.2Q 2014.1Q 2014.2Q QoQ Revenue Revenue 15,603 15,440 16,704 +1,264 Gross Profit Gross Profit 1,858 1,688 1,813 +125 (Gross Margin) (Gross Margin) (12.0%) (10.9%) (10.9%) ^ Selling & Admin. Expenses Selling & Admin. Expenses ^955 957 973
Slide 6: Summarized Statements of Financial Position
Summarized Statements of Financial Position 6 2013.2Q 2014.1Q 2014.2Q 2013.2Q 2014.1Q 2014.2Q QoQ Current Assets Current Assets 32,079 32,988 31,874 ^1,114 Cash & Financial Goods* 6,322 6,725 5,456 ^1,269 Account Receivable 12,208 12,348 12,276 ^72 Inventories 10,044 10,760 10,876 +116 Non-Current A
Slide 7: 2Q Operating Performance - POSCO
2Q Operating Performance 2Q Operating Performance 2Q Operating Performance - Consolidated - Consolidated - POSCO - POSCO Major Business Activities Major Business Activities Major Business Activities Business Environment Business Environment Business Environment 2014 Business Plan 2014 Business Plan
Slide 8: Production · Sales
Production · Sales 8 POSCO Earnings Release |July 24, 2014 Production Product Sales 2013.2Q 2014.1Q 2014.2Q 2013.2Q 2014.1Q 2014.2Q 2013.2Q 2014.1Q 2014.2Q Carbon Steel 8,385 8,837 8,827 S T S 464 465 433 2013.2Q 2014.1Q 2014.2Q Domestic 4,927 4,679 4,697 Export 3,487 3,729 3,845 Inventories 909 986
Slide 9: POSCO Operating Performance: Income
Income 9 Revenue Operating Profit 2013.2Q 2014.1Q 2014.2Q 2013.2Q 2014.1Q 2014.2Q 2013.2Q 2014.1Q 2014.2Q Carbon Steel Carbon Steel 794 755 742 (\/US$) 1,122 1,069 1,030 (billion KRW) 7,740 7,364 7,420 703 518 565 9.1% 7.0% 7.6% OP Margin (thousand KRW/ton) Profitability upturned, despite weak expor
Slide 10: Major Business Activities
2Q Operating Performance 2Q Operating Performance 2Q Operating Performance - Consolidated - Consolidated - POSCO - POSCO Major Business Activities Major Business Activities Major Business Activities Business Environment Business Environment Business Environment 2014 Business Plan 2014 Business Plan
Slide 11: Major Business Activities: High-end Products and Mill Operations
11 POSCO Earnings Release |July 24, 2014 ** WP: World Premium Product High-end Product Sales Domestic/Overseas Mill Operations WP Products with higher profitability [WP** Sales portion] 2013 2014.1Q 2014.2Q 30.8% 31.6% 32.8% Planned to increase efficiency of domestic production facilities No.1 Finex
Slide 12: Business Portfolio Reorganization
12 POSCO Earnings Release |July 24, 2014 Business Portfolio Reorganization Started Restructuring Non-core Businesses High profit Low profit Non-core Core A. Liquidation B. C. Pursue to enhance corporate value, focusing on core business with high profitability Disposal A C B D. Urban-mining business
Slide 13: Business Environment
2Q Operating Performance 2Q Operating Performance 2Q Operating Performance - Consolidated - Consolidated - POSCO - POSCO Major Business Activities Major Business Activities Major Business Activities Business Environment Business Environment Business Environment 2014 Business Plan 2014 Business Plan
Slide 14: Global Steel Demand
Global Steel Demand 14 POSCO Earnings Release |July 24, 2014 * World Steel Association(2014.4), POSRI 2012 2013 2014 2015 2012 2013 2014 yoy 2015 yoy US 96 96 99 4.0% 103 3.7% EU 139 139 143 3.1% 148 3.0% China 660 700 718 2.5% 737 2.7% India 72 74 76 3.3% 80 4.5% SE Asia 59 64 67 4.5% 70 4.3% Globa
Slide 15: Domestic Steel Demand
Domestic Steel Demand 15 Business Environment Automobile Home Appliance Shipbuilding 3Q production to decline QoQ due to weak export and seasonal effect Production (thousand units) : 4,587 ('14), 1,155 (1Q) ^1,188 (2Q) ^1,000 (3Q) 3Q production index to turn downward QoQ as domestic demand lags Prod
Slide 16: Raw Materials
Raw Materials Business Environment 16 POSCO Earnings Release |July 24, 2014 2014.2Q 2014.3Q Iron Ore (US$/ton) [Iron Ore Price] *Platts 62% Fe IODEX CFR China (Quarter Spot Avg.) 2012 3Q 2012 4Q 2013 1Q 2013 2Q 2013 3Q 2013 4Q 2014 1Q 126 113 122 133 120 148 135 "3Q Price: Fine Ore CFR US$103/ton" 2
Slide 17: Stainless Steel
Stainless Steel Business Environment POSCO Earnings Release |July 24, 2014 Raw Materials 2014.2Q 2014.3Q (Thousand US$/ton) Nickel Chrome [STS Raw Material Price] * Nickel: LME Official/ Chrome: Japanese Quarter Bench Mark(BM) Price 2012 4Q 2013 1Q 2013 2Q 2013 3Q 2013 4Q 2014 1Q 2014 2Q 2014 3Q(f)
Slide 18: 2014 Business Plan
2Q Operating Performance 2Q Operating Performance 2Q Operating Performance - Consolidated - Consolidated - POSCO - POSCO Major Business Activities Major Business Activities Major Business Activities Business Environment Business Environment Business Environment 2014 Business Plan 2014 Business Plan
Slide 19: 2014 Business Target
2014 Business Target Business Plan POSCO Earnings Release |July 24, 2014 2013 2014(F) Revenue (trillion KRW) 61.9 64.5 - POSCO Revenue (^) 30.5 30.0 Crude Steel Production (million tons) 36.4 37.5 Product Sales (^) 33.9 34.6 Investment (trillion KRW) 8.8 6.1 - POSCO Investment (^) 4.3 3.0 19