Posco Holdings Inc. · KRX:005490
Posco — Investor Presentation (February 2012)
31 slides from Posco's investor presentation, Feb 6, 2012
Slide 1: 2012 CEO Forum
Exhibit 99.1 Exhibit 2012 posco Feb. 3,CEO 2012 99.1FORUM
Slide 2: Consolidated Business Performance
posco -Consolidated 2011 2012 Business Figures POSCO Operating Key Business provided Plan Operating Business Operating Environment Performance in Activities this Performance Performance presentation are based on unaudited financial statements of the Company. Certain contents in this presentation are
Slide 3: Consolidated Income Performance
Income 36,855 (in Steel·Support Revenue Operating Net 2009 2010 2011 Sales FY09 3/30billion Profit Income 57,251 4,873 3,759 2010 46,666 3,354 5,261 3,253 4,100 by is47,887 Consolidated based sector: increased Operating 2009 Margin KRW) Income 2011 306 195 35 53 21 94 28,623 9,410 E&C on 36,934 68,9
Slide 4: Financial Structure
Financial 51,553 (in Steel·Support Assets 2009 2010 2011 Sales 4/30billion 69,263 24,134 45,129 2010 49,375 61,870 14,108 20,269 35,267 41,601 byLiabilities and 69,418 sector: Structure KRW) 2011 liabilities 12,121 9,707 2,414 1,347 9,606 838 7,519 509 2,087 E&C 78,372 includes Liability Return 4,07
Slide 5: Consolidated Summarized Income Statements
Consolidated Summarized Gross Revenue (Gross Other CG&A Operating (Operating Equity Finance Foreign & Net (Net Owners 2009 2010 2011 YoY FY09 5/30 Translation Income Profit (%) 68,939 36,855 47,887 Operating is Income Method Margin) of Currency Item based 44.0 Income the Margin) 9,115 5,818 8,165 St
Slide 6: Consolidated Summarized Financial Position
Consolidated Summarized (in Cash Notes Inventory Other Fixed Current Liabilities Long-term (Interest Controlling Equity Total 2009 2010 2011 *YoY 6/30 Cash billion (%) 33,557 Assets 20,430 27,672 Equivalents Liabilities Assets Financial Receivable equivalents: Assets Liabilities Bearing 21.3 KRW) As
Slide 7: POSCO Business Operating Performance
-posco POSCO 2011 2012 Business Consolidated Operating Key Business Operating Plan Business Environment Operating Performance Performance Activities Performance
Slide 8: Crude Steel Production and Sales
Production Crude (in 29,530 Export Carbon Domestic 2009 2010 -*2011 8/30 (Pohang) New thousand 35,374 21,169 2010 28,057 31,883 18,390 20,383 Steel facilities Ratio 33,716 Steel Export #3 2011 &Production 1,951 13,324 tons) 1,473 1,833 10,047 11,082 35.3% SSales Steelmaking 37,325 T2009 Inventory S(
Slide 9: Product Sales by Industry
Sales <Home <Auto> (in 4,246 2,992 3,369 2,442 2,498 1,996 7,521 6,977 5,386 <Shipbuilding> Hot Others 7,642 2009 7,758 2010 8,036 2011 3.6% YoY 5.8% *2.5% 9/30 Includes thousand Rolled 32.0% 53.4% to by 4,917 4,810 6,350 Total Appliances> automakers Product Demand HR Plate* 1,960 2,020 2,091 3.5% 9
Slide 10: Income Performance and Weak Operating Margin
Income Weak Operating (in 3,148 39,172 32,582 26,954 4,196 14.7% 4,785 Revenue Margin Prices Carbon (Price/ton) +10.5% YoY 250.4 159.9 986 2011 174.2 108.7 892 2010 149.5 68.1 835 *2009 10/30 Weighted billion 11.7% 10.7% market ofsqueezed steel POSCO +47.1% rose products KRW) Income average sales Op
Slide 11: Key Business Operating Activities
poscoKey 2011 2012 Business Operating Business Plan Business Environment performance Activities
Slide 12: Domestic Sales and Market Share
POSCO Facility -Crude 17.7 39% 41% Domestic (Mt) 3KAM 2.0 7.2 2009 97.1 5.0 8.0 2010 *2011 12/30 Production Prompt Domestic Efforts companies Based KAM: <Market 19.6 20.3 Sales steel expansion on Business made Key adjustment sales Market Sales Long-Term Long-term sales market Carbon production incre
Slide 13: Maintained WP Sales Ratio
Maintained WB Sales (thousand 2011 16.2% 4,684 2010 10.3% 2,920 2009 Ratio YoY *+ Cost-saving Continued Strengthened products Facility -200K 13/30 Profitability 613.3 (G) (P WB 18.2% 1.6%p )#4 WF Key 5,536 Plate Volume growth ton/yr WF(World billion Wire expansion inBusiness tons) investment heat-tr
Slide 14: Overseas Strategic Projects Progress
2011 Construction Overseas Strategic Vietnam [Project Up Down Indonesia India Turkey 1st Expansion Groundwork 2010/E -C Civil 2011/E Facility POSCO Notes Auto 2Vile Acquired 14/30 Indonesia Brazil Expansion Improved ivil SCMs stage stream Bhagad Key Works manufacturing CR Elec. stream STS CSP: Works
Slide 15: Stable Regular Dividend
Stable Regular Total (Interim Dividend *Based 21.3%* 2011 18.3% 2010 19.4% (1,500) 8,000 2009 17.2% (2,500) 10,000 2008 Relative Major (in 2011/E 15/30 21.2% 17.0 13.4 31.4% 24.5 16.8 52.2% 59.4 28.4 23.5% 37.4 28.6 Change billion Key Dividend steelmakers’ dividend Market on dividend dividend) compe
Slide 16: Business Subsidiaries Key Progress
Business 77% Subsidiaries 22,849 34,364 59,875 Newly Joint 20 133.1 700 -Key Greater CHEMTECH M-TECH Collaborative Overview 7Progress Total 16/30 ‘10(5 ‘11(6 CCPP Metropolitan Shipyard companies 2009 2011 projects YoY Contracts Cost 2010 join subsidiaries): 2009 2010 2011 in presence Selected expans
Slide 17: Steel, E&C, ICT, Energy, Chemicals Key Activities
2011 Steel E&C ICT Trade Energy coal-fired Chemicals -POSCO 17/30 Acquired Won Raised Improved Establish POSCO Offshore Started Completed POSCO Key POSCO Daewoo overseas POSCO M-TECH: the construction product Business power gas Materials urban PONUTech profitability share #5 secondary ICT: Specialty
Slide 18: Business Environment
poscoKey 2011 2012 Business Operating Business Plan Business Environment Performance Activities
Slide 19: 2012 Prospects: Global Macro Scenarios
2012 Prospects Intensifying S.Europe-triggered Financial Advanced Stagnant Amplified Emerging Spreading Heightened Diverse GLOBAL MACRO-SCENARIO Contingency Base “V Global 3.8% “Limited The 3.4% “Prolonged Orderly US 2.8% “Aggravating Uncontrollable Double-dip S 0.5% “Imminent 2nd Hard 19/30 1.5% 54
Slide 20: Steel Market Outlook
Steel “3.0% <Global 15.1 15.5 6.7 6.9 Despite “$610/t, Hot-Rolled ($) 657 658 610 Slow Domestic “56.7 Car Korean Shipbuilding Global Construction *Prolonged 20/30 Chinese 639 2011 2012(F) Production 2011. 2012. 2011 2012(F) Market progress million YoY Steel economic 2011. automakers strong similar s
Slide 21: Raw Materials Price Outlook
Raw Spot “Limited Continued Obscure 4Q -Price 2012 “Spot 1Q PCI Demand Robust Iron 181 160 Jul. Coking ($/ton) 336 313 307 Sep. *Platts 21/30 Both Shrinkage Spot price: Oct. 181 140 308 273 171, Ore Dec. Materials price Business Outlook drop price downward 189 331 62%Fe HCC supply Coal 179 125 330 2
Slide 22: Stainless Steel Market Outlook
Stainless Sales Market “Demand -Slow 4Q global 2012 “Decline Ni: STS Europe 4,160 ($/ton) Korea 3,680 3,430 China 3,020 3,110 2,750 2,720 3,050 Nickel/Chrome 26.9 Ni 2.9 Cr 3.2 18.3 20.5 22.1 24.3 2011. 2.7 *1Q 22/30 Crude LME ‘12.1Q 26.9 Price 2Q 2.8 Overall Oversupply CR (thousand Outlook growth 2
Slide 23: 2012 Business Plan
poscoBusiness 2011 2012 Business Operating Plan Activities Environment Performance
Slide 24: Business Plan: Continue Overseas Expansion and Raw Material Self-Sufficiency
Business Continue Overseas Target 70% STS 2.28 1.59 Raise Raw Self-sufficiency ‘11 50.9% 47.4% 42.3% *33.9% Achieve Product Technology POSCO Materials POSTECH RIST -Widen 24/30 With Widen Upstream: Downstream: Perform Strengthen Raise Support Global Raw ‘12 2million Global Materials profit 2.15 emer
Slide 25: 2012 Key Business Activities
2012upBusiness Maintain Steel “Maintain Reduce Strengthen Maximize Scenario-based Set Future “Accelerate Accelerate Enter Expand Create Prioritize 25/30 Key upstream solid response Results Growth costs domestic downstream best business Business top Profitability efficiency Overseas Financial result
Slide 26: Profitability, Financial Soundness and Raw Material Security
Profitability/Financial Secure Raw Investment Flexible Production Develop Sales/ -Expand Enhance “Ensure Set Keep Invest Adjust Maximize Examine *Consider 26/30 Secured Increase Halt Commercialize Continue Establish Prior upMaterial investment operation Marketing in solid maintenance/recurring stabl
Slide 27: Business Growth Acceleration Plans
Business Get Acceleration “Expand & AS-IS Downstream Upstream 2012 Guangdong Vietnam Indonesia 2013 India 2014 Brazil 2015 “Establish “Build Note: Result “Commecialize Future Foster Materials JV Wide-width Collaboration Energy -“Resource 27/30 Ti: Li: Mg: Create Consolidate downstream plant results
Slide 28: Scenario-based Response Plan
Response High “Overcome “Maximize likelihood “Implement Low Scenario-based Establish Keep Respond -Draw Set (Production) (Investment) “Achieve 28/30 SetupNegative up S1 monthly up contingency detailed S2 response proactively management monitoring global Strategy biz crisis S3 contingency Adjust Impa
Slide 29: Subsidiaries Business Plan
Subsidiaries :Steel Energy E&C Daewoo Chemicals -POSCO 29/30 (‘11) 20K Win Steeland Ratio MCCL Build Focus Increase Boost Myanmar Produce Pursue Needle Indonesian more (2011) 27.5% bar of overseas and sales on Specialty C&C: Power: ICT: E&C: M-TECH: early International: production cokes Trade strate
Slide 30: Consolidated Business Plan Targets
Consolidated Business Revenue Crude -Product Investment ((in 37.7~41.2 70.6~74.3 2012* 5.7 8.1 34.5 37.3 39.2 68.9 2011 These 4.5~5.1 8.3~9.5 30/30 )POSCO (in trillion million data Steel Sales targets Revenue investment 38.3 KRW) represent Production Business tons) 35.4 to be ( the ) achieved Plan c
Slide 31: 2012 CEO Forum
20123,CEO posco Feb. 2012FORUM