Posco Holdings Inc 6-K, filed Apr 27, 2020
Posco Holdings Inc. (PKX)
About this 6-K
Posco Holdings Inc filed this 6-K on April 27, 2020.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15D-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of April, 2020
Commission File Number: 1-13368
POSCO
(Translation of registrant’s name into English)
POSCO Center, 440 Teheran-ro, Gangnam-gu, Seoul, Korea, 06194
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.
POSCO is furnishing under cover of Form 6-K:
Exhibit 99.1: POSCO’s performance report of the first quarter in 2020 (English version)
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| POSCO | ||||||
| (Registrant) | ||||||
| Date: April 27, 2020 | By | /s/ Lim, Seung-Kyu | ||||
| (Signature) | ||||||
| Name: | Lim, Seung-Kyu | |||||
| Title: | Executive Vice President | |||||
Exhibit 99.1 1Q 2020 Earnings Release April 24, 2020Exhibit 99.1 1Q 2020 Earnings Release April 24, 2020
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 first quarter of 2019. As figures in this presentation are based on unaudited financial statements, certain contents may be subject to modification in the course of auditing process. This presentation contains certain forward-looking statements relating to the business, financial performance and results of the company and/or the industry in which it operates. The forward-looking statements set forth herein concern future circumstances and results and other statements that not historical facts, and are solely opinions and forecasts which are uncertain and subject to risks. Therefore, the recipients of this presentation shall be aware of that the forward-looking statements set forth herein may not correspond to the actual business performance of the company due to changes and risks in business environments and conditions. The sole purpose of this presentation is to assist persons in deciding whether they wish to proceed with certain investments to the company. The company does not make any representation or warranty, expressly or impliedly, as to the accuracy and completeness of this presentation or of the information contained herein and shall not have any liability for the informations contained in this presentation. 1Q20 Earnings Release │ April 24, 2020Disclaimer 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 first quarter of 2019. As figures in this presentation are based on unaudited financial statements, certain contents may be subject to modification in the course of auditing process. This presentation contains certain forward-looking statements relating to the business, financial performance and results of the company and/or the industry in which it operates. The forward-looking statements set forth herein concern future circumstances and results and other statements that not historical facts, and are solely opinions and forecasts which are uncertain and subject to risks. Therefore, the recipients of this presentation shall be aware of that the forward-looking statements set forth herein may not correspond to the actual business performance of the company due to changes and risks in business environments and conditions. The sole purpose of this presentation is to assist persons in deciding whether they wish to proceed with certain investments to the company. The company does not make any representation or warranty, expressly or impliedly, as to the accuracy and completeness of this presentation or of the information contained herein and shall not have any liability for the informations contained in this presentation. 1Q20 Earnings Release │ April 24, 2020
Contents § 1Q 2020 Business Performance - Parent Performance - Consolidated Performance - Subsidiary Performance § Treasury Share Buyback Plan § 2020 Business Outlook 1Q20 Earnings Release │ April 24, 2020Contents § 1Q 2020 Business Performance - Parent Performance - Consolidated Performance - Subsidiary Performance § Treasury Share Buyback Plan § 2020 Business Outlook 1Q20 Earnings Release │ April 24, 2020
4 Parent Performance_Production / Sales Production Sales QoQ QoQ (thousand tons) (thousand tons, %) 9,602 9,283 9,406 9,009 9,066 -536 8,620 -389 Crude Steel Sales Volume 9,040 8,966 55.3 -243 8,723 Domestic 54.8 +1.7%p 53.1 Product Sales Ratio WTP 29.7 -0.4%p Sales Ratio 28.0 27.6 ’19.1Q ’19.4Q ’20.1Q ’19.1Q ’19.4Q ’20.1Q ※ In WTP volume, semi-products and un-ordered products are excluded from total sales ○ Crude steel and product production declined QoQ due to revamp○ Product inventory remained same as previous quarter while of Gwangyang #3 Blast Furnace and maintenance of downstream product sales volume decreased affected by blast furnace revamp mills incl. HR and plate lines · Sales volume by product(k tons) : HR -89, CR -157, etc. · Molten iron production volume down due to G) #3 BF revamp(2.12~5.28) · WTP sales volume(k tons) : ’19.4Q) 2,386 → ’20.1Q) 2,266(-120) ·Downstream maintenance schedule - G) #4 HR rationalization (2.26~4.21), CR Mill (2.11~15), Plate Mill (1.9~20) - P) #4 Wire Rod (3.24~31), etc. [Product Sales] * G) Gwangyang Works, P) Pohang Works (thousand tons) ’19.1Q ’19.4Q ’20.1Q QoQ [Product Production] Domestic 5,131 4,729 -52 4,781 (thousand tons) ’19.1Q ’19.4Q ’20.1Q QoQ Export 4,152 4,228 3,891 -337 * Carbon 8,542 8,463 8,242 -221 Inventory 1,198 1,107 1,107 - STS 481 -22 498 503 * HR -59, CR -107, Plate -35, etc. *WTP(World Top Premium) includes World First/World Best products 1Q20 Earnings Release │ April 24, 20204 Parent Performance_Production / Sales Production Sales QoQ QoQ (thousand tons) (thousand tons, %) 9,602 9,283 9,406 9,009 9,066 -536 8,620 -389 Crude Steel Sales Volume 9,040 8,966 55.3 -243 8,723 Domestic 54.8 +1.7%p 53.1 Product Sales Ratio WTP 29.7 -0.4%p Sales Ratio 28.0 27.6 ’19.1Q ’19.4Q ’20.1Q ’19.1Q ’19.4Q ’20.1Q ※ In WTP volume, semi-products and un-ordered products are excluded from total sales ○ Crude steel and product production declined QoQ due to revamp○ Product inventory remained same as previous quarter while of Gwangyang #3 Blast Furnace and maintenance of downstream product sales volume decreased affected by blast furnace revamp mills incl. HR and plate lines · Sales volume by product(k tons) : HR -89, CR -157, etc. · Molten iron production volume down due to G) #3 BF revamp(2.12~5.28) · WTP sales volume(k tons) : ’19.4Q) 2,386 → ’20.1Q) 2,266(-120) ·Downstream maintenance schedule - G) #4 HR rationalization (2.26~4.21), CR Mill (2.11~15), Plate Mill (1.9~20) - P) #4 Wire Rod (3.24~31), etc. [Product Sales] * G) Gwangyang Works, P) Pohang Works (thousand tons) ’19.1Q ’19.4Q ’20.1Q QoQ [Product Production] Domestic 5,131 4,729 -52 4,781 (thousand tons) ’19.1Q ’19.4Q ’20.1Q QoQ Export 4,152 4,228 3,891 -337 * Carbon 8,542 8,463 8,242 -221 Inventory 1,198 1,107 1,107 - STS 481 -22 498 503 * HR -59, CR -107, Plate -35, etc. *WTP(World Top Premium) includes World First/World Best products 1Q20 Earnings Release │ April 24, 2020
5 Parent Performance P/L Financial Structure (billion KRW) QoQ QoQ 28.3% 7,817 22.1% Liabilities 7,345 20.0% Revenue +6.2%p Ratio 6,970 -375 833 Operating Profit +91 458 Net Debt 367 -2.5 10.7% -3.1 (trillion KRW) -0.6 6.6% +1.6%p -3.5 OP Margin 5.0% ’19.1Q ’19.4Q ’20.1Q ’19.1Q ’19.4Q ’20.1Q ○ Operating profit gained with raw material prices declined despite○ Preemptively issued global bonds in preparation for debt sales volume contraction and softened price under worsening repayment, which increased liabilities and cash balance demand situation ·Raw material input cost (Indexed as of ’19.3Q=100) ·Global bond issued : 940 million USD, 500 million EUR - Iron ore : ’19.4Q) 100 → ’20.1Q) 95 * Repayment schedule : ’20) 1.0, ’21) KRW 1.5 trillion - Coking coal : ’19.4Q) 88 → ’20.1Q) 80 【Operating Profit】 (billion KRW) 【Cash Balance & Debt】 QoQ 458 (bn KRW) ’19.1Q ’19.4Q ’20.1Q +213 QoQ +91 -46 367 -76 Production/ Cash Balance 7,734 8,822 11,723 +2,901 Sales price, Raw material Sales volume cost etc. Debt +2,324 4,282 6,338 8,662 ’20.1Q ’19.4Q 1Q20 Earnings Release │ April 24, 20205 Parent Performance P/L Financial Structure (billion KRW) QoQ QoQ 28.3% 7,817 22.1% Liabilities 7,345 20.0% Revenue +6.2%p Ratio 6,970 -375 833 Operating Profit +91 458 Net Debt 367 -2.5 10.7% -3.1 (trillion KRW) -0.6 6.6% +1.6%p -3.5 OP Margin 5.0% ’19.1Q ’19.4Q ’20.1Q ’19.1Q ’19.4Q ’20.1Q ○ Operating profit gained with raw material prices declined despite○ Preemptively issued global bonds in preparation for debt sales volume contraction and softened price under worsening repayment, which increased liabilities and cash balance demand situation ·Raw material input cost (Indexed as of ’19.3Q=100) ·Global bond issued : 940 million USD, 500 million EUR - Iron ore : ’19.4Q) 100 → ’20.1Q) 95 * Repayment schedule : ’20) 1.0, ’21) KRW 1.5 trillion - Coking coal : ’19.4Q) 88 → ’20.1Q) 80 【Operating Profit】 (billion KRW) 【Cash Balance & Debt】 QoQ 458 (bn KRW) ’19.1Q ’19.4Q ’20.1Q +213 QoQ +91 -46 367 -76 Production/ Cash Balance 7,734 8,822 11,723 +2,901 Sales price, Raw material Sales volume cost etc. Debt +2,324 4,282 6,338 8,662 ’20.1Q ’19.4Q 1Q20 Earnings Release │ April 24, 2020
6 Consolidated Performance P/L Financial Structure (billion KRW) QoQ QoQ 16,043 16,014 73.5% Liabilities Revenue 68.8% 14,546 -1,497 +8.1%p Ratio 65.4% Operating 1,203 Profit 705 +147 9.0 Net Debt +0.2 8.2 8.0 7.5% 558 (trillion KRW) 4.8% OP Margin +1.3%p 3.5% ’19.1Q ’19.4Q ’20.1Q ’19.1Q ’19.4Q ’20.1Q ○ Consolidated operating profit improved on stronger ○ Liabilities ratio went up from bond issuing and short-term performance of global&Infra business incl. E&C and energy borrowings for preparing repayment · Debt : POSCO +2,324 billion KRW 【Aggregated Operating Profit】 (Incl. global bonds 940 million USD, 500 million EUR) (billion KRW) ’19.1Q ’19.4Q ’20.1Q POSCO International KRW 555 billion KRW QoQ (Short-term borrowings for maintaining cash balance), etc. Steel +104 893 279 383 Overseas steel 13 -89 -81 +8 【Cash Balance & Debt】 Global&Infra 293 266 375 +109 (billion KRW) ’19.1Q ’19.4Q ’20.1Q QoQ New Growth 21 20 14 -6 Cash Balance 10,887 12,463 15,351 +2,888 · Overseas steel subsidiaries operating profit in ’20.1Q (million USD) Debt 19,932 20,442 23,503 +3,061 PT.KP -38, PZSS -18, POSCO Maharashtra -2, PY VINA* -3 * Posco Yamato Vina Steel Joint Stock Company 1Q20 Earnings Release │ April 24, 20206 Consolidated Performance P/L Financial Structure (billion KRW) QoQ QoQ 16,043 16,014 73.5% Liabilities Revenue 68.8% 14,546 -1,497 +8.1%p Ratio 65.4% Operating 1,203 Profit 705 +147 9.0 Net Debt +0.2 8.2 8.0 7.5% 558 (trillion KRW) 4.8% OP Margin +1.3%p 3.5% ’19.1Q ’19.4Q ’20.1Q ’19.1Q ’19.4Q ’20.1Q ○ Consolidated operating profit improved on stronger ○ Liabilities ratio went up from bond issuing and short-term performance of global&Infra business incl. E&C and energy borrowings for preparing repayment · Debt : POSCO +2,324 billion KRW 【Aggregated Operating Profit】 (Incl. global bonds 940 million USD, 500 million EUR) (billion KRW) ’19.1Q ’19.4Q ’20.1Q POSCO International KRW 555 billion KRW QoQ (Short-term borrowings for maintaining cash balance), etc. Steel +104 893 279 383 Overseas steel 13 -89 -81 +8 【Cash Balance & Debt】 Global&Infra 293 266 375 +109 (billion KRW) ’19.1Q ’19.4Q ’20.1Q QoQ New Growth 21 20 14 -6 Cash Balance 10,887 12,463 15,351 +2,888 · Overseas steel subsidiaries operating profit in ’20.1Q (million USD) Debt 19,932 20,442 23,503 +3,061 PT.KP -38, PZSS -18, POSCO Maharashtra -2, PY VINA* -3 * Posco Yamato Vina Steel Joint Stock Company 1Q20 Earnings Release │ April 24, 2020
7 Subsidiary Performance POSCO E&C POSCO International · Profit improved supported by housing segment and reduced · Operating profit jumped on stable gas sales while revenue shrank general & administrative expenses from weakened global trading sector due to COVID-19 - Housing projects incl. Songdo First Park +34 billion KRW QoQ QoQ 5,736 5,463 2,147 5,087 -376 1,829 -318 Revenue 1,516 Revenue 159 135 113 +8 +46 105 Operating Profit 89 Operating Profit (billion KRW) 38 (billion KRW) ’19.1Q ’19.4Q ’20.1Q ’19.1Q ’19.4Q ’20.1Q POSCO Energy POSCO Chemical · OP surged with lower cost of direct LNG import for Incheon #3 · Profit declined as chemical margin worsened with collapse of oil Power Plant, increased CP price and renewal of fuel cell LTSA prices and inventory valuation loss on cathode business - CP price (KRW/kWh) : (’19.4Q) 8.1 → (’20.1Q) 11.8 - Oil price applied in chemical segment(HSFO) : (’19.4Q) 393→(’20.1Q) U$276/ton - Average cathode sales price decreased by -12% QoQ QoQ QoQ 535 422 377 402 +2 +20 Revenue 375 Revenue 343 Operating Profit Operating Profit 84 +60 23 54 (billion KRW) 21 -7 24 16 (billion KRW) ‘19.1Q ‘19.4Q ’20.1Q ‘19.1Q ‘19.4Q ’20.1Q 1Q20 Earnings Release │ April 24, 20207 Subsidiary Performance POSCO E&C POSCO International · Profit improved supported by housing segment and reduced · Operating profit jumped on stable gas sales while revenue shrank general & administrative expenses from weakened global trading sector due to COVID-19 - Housing projects incl. Songdo First Park +34 billion KRW QoQ QoQ 5,736 5,463 2,147 5,087 -376 1,829 -318 Revenue 1,516 Revenue 159 135 113 +8 +46 105 Operating Profit 89 Operating Profit (billion KRW) 38 (billion KRW) ’19.1Q ’19.4Q ’20.1Q ’19.1Q ’19.4Q ’20.1Q POSCO Energy POSCO Chemical · OP surged with lower cost of direct LNG import for Incheon #3 · Profit declined as chemical margin worsened with collapse of oil Power Plant, increased CP price and renewal of fuel cell LTSA prices and inventory valuation loss on cathode business - CP price (KRW/kWh) : (’19.4Q) 8.1 → (’20.1Q) 11.8 - Oil price applied in chemical segment(HSFO) : (’19.4Q) 393→(’20.1Q) U$276/ton - Average cathode sales price decreased by -12% QoQ QoQ QoQ 535 422 377 402 +2 +20 Revenue 375 Revenue 343 Operating Profit Operating Profit 84 +60 23 54 (billion KRW) 21 -7 24 16 (billion KRW) ‘19.1Q ‘19.4Q ’20.1Q ‘19.1Q ‘19.4Q ’20.1Q 1Q20 Earnings Release │ April 24, 2020
8 Treasury Share Buyback Plan Share repurchase worth of KRW 1 trillion to be carried out through trust agreement for one year period ○ Purpose of Share Buyback - Raise shareholders’ value by stabilizing the stock price and increasing shareholder return ○ Trust Agreement Period - April 13, 2020 ~ April 12, 2021 ※ History of Share Repurchase, Disposal and Cancellation Year ‘000 shares Purpose Repurchase ’94~’07 30,655 Raise shareholders’ value and stabilize stock price List the stock on London and Tokyo Stock Exchanges Disposal ‘95~’14 14,290 and raise capital for ESOP Cancellation ‘01~’04 9,294 Raise shareholders’ value * Treasury stock as of April 24, 2020 : 7,071 thousand shares (8.1%) 1Q20 Earnings Release │ April 24, 20208 Treasury Share Buyback Plan Share repurchase worth of KRW 1 trillion to be carried out through trust agreement for one year period ○ Purpose of Share Buyback - Raise shareholders’ value by stabilizing the stock price and increasing shareholder return ○ Trust Agreement Period - April 13, 2020 ~ April 12, 2021 ※ History of Share Repurchase, Disposal and Cancellation Year ‘000 shares Purpose Repurchase ’94~’07 30,655 Raise shareholders’ value and stabilize stock price List the stock on London and Tokyo Stock Exchanges Disposal ‘95~’14 14,290 and raise capital for ESOP Cancellation ‘01~’04 9,294 Raise shareholders’ value * Treasury stock as of April 24, 2020 : 7,071 thousand shares (8.1%) 1Q20 Earnings Release │ April 24, 2020
9 2020 Business Outlook (Modified) Parent Consolidated (trillion KRW) 25.2 Revenue 57.5 Crude steel production 34.1 million tons Product sales 32.4 million tons Capex 3.2 5.2 Debt 7.2 22.09 2020 Business Outlook (Modified) Parent Consolidated (trillion KRW) 25.2 Revenue 57.5 Crude steel production 34.1 million tons Product sales 32.4 million tons Capex 3.2 5.2 Debt 7.2 22.0
※ Appendix § Summarized Financial Statements § Aggregated Earnings by Segment 1Q20 Earnings Release │ April 24, 2020※ Appendix § Summarized Financial Statements § Aggregated Earnings by Segment 1Q20 Earnings Release │ April 24, 2020
11 Summarized F/S_Parent Income Statement ’19.1Q ’19.4Q ’20.1Q QoQ Crude Steel Production (thousand tons) 9,406 9,602 9,066 -536 Product Sales (thousand tons) 9,283 9,009 8,620 -389 STS 507 481 469 -12 Carbon Steel Sales Price (thousand KRW) 722 697 692 -5 (billion KRW) Revenue 6,970 -375 7,817 7,345 Cost of Goods Sold 6,728 6,676 6,230 -446 Gross Profit 1,089 669 740 +71 SG&A 256 302 282 -20 Operating Profit 833 367 458 +91 +1.6%p (Operating Margin) (10.7%) (5.0%) (6.6%) Non-Operating Profit 90 -896 159 +1,055 Net Profit 671 -540 453 +993 (Net Margin) +13.9%p (8.6%) (-7.4%) (6.5%) 1Q20 Earnings Release │ April 24, 202011 Summarized F/S_Parent Income Statement ’19.1Q ’19.4Q ’20.1Q QoQ Crude Steel Production (thousand tons) 9,406 9,602 9,066 -536 Product Sales (thousand tons) 9,283 9,009 8,620 -389 STS 507 481 469 -12 Carbon Steel Sales Price (thousand KRW) 722 697 692 -5 (billion KRW) Revenue 6,970 -375 7,817 7,345 Cost of Goods Sold 6,728 6,676 6,230 -446 Gross Profit 1,089 669 740 +71 SG&A 256 302 282 -20 Operating Profit 833 367 458 +91 +1.6%p (Operating Margin) (10.7%) (5.0%) (6.6%) Non-Operating Profit 90 -896 159 +1,055 Net Profit 671 -540 453 +993 (Net Margin) +13.9%p (8.6%) (-7.4%) (6.5%) 1Q20 Earnings Release │ April 24, 2020
12 Summarized F/S_Parent Balance Sheet (billion KRW) ’19.1Q ’19.4Q ’20.1Q QoQ Current Assets 17,604 18,216 20,774 +2,558 Cash Balance* 7,734 8,822 11,723 +2,901 Accounts Receivable 4,449 3,987 3,680 307 - Inventories 4,998 4,989 4,768 -221 Current Ratio 422.7% 546.8% 497.1% -49.7%p Non-Current Assets 37,608 37,495 37,662 +167 Other Long-term financial assets 61 1,200 1,258 1,197 - PP&E 19,953 20,132 20,182 +50 Total Assets 55,212 55,711 58,436 +2,725 Liabilities 9,211 10,097 12,886 +2,789 Current Liabilities 4,164 3,331 4,179 +848 Non-Current Liabilities 5,047 6,765 8,707 +1,942 Interesting-bearing Debt 4,282 6,338 8,662 +2,324 Liabilities Ratio 20.0% 22.1% 28.3% +6.2%p Equity 46,001 45,614 45,550 -64 * Cash Balance : Cash and cash equivalents, Short-term financial instruments, Short-term trading securities, Short-term securities, Current portion of held-to-maturity securities 1Q20 Earnings Release │ April 24, 202012 Summarized F/S_Parent Balance Sheet (billion KRW) ’19.1Q ’19.4Q ’20.1Q QoQ Current Assets 17,604 18,216 20,774 +2,558 Cash Balance* 7,734 8,822 11,723 +2,901 Accounts Receivable 4,449 3,987 3,680 307 - Inventories 4,998 4,989 4,768 -221 Current Ratio 422.7% 546.8% 497.1% -49.7%p Non-Current Assets 37,608 37,495 37,662 +167 Other Long-term financial assets 61 1,200 1,258 1,197 - PP&E 19,953 20,132 20,182 +50 Total Assets 55,212 55,711 58,436 +2,725 Liabilities 9,211 10,097 12,886 +2,789 Current Liabilities 4,164 3,331 4,179 +848 Non-Current Liabilities 5,047 6,765 8,707 +1,942 Interesting-bearing Debt 4,282 6,338 8,662 +2,324 Liabilities Ratio 20.0% 22.1% 28.3% +6.2%p Equity 46,001 45,614 45,550 -64 * Cash Balance : Cash and cash equivalents, Short-term financial instruments, Short-term trading securities, Short-term securities, Current portion of held-to-maturity securities 1Q20 Earnings Release │ April 24, 2020
13 Summarized F/S_Consolidated Income Statement (billion KRW) ’19.1Q ’19.4Q ’20.1Q QoQ Revenue -1,497 16,014 16,043 14,546 Gross Profit 1,813 1,210 1,310 +100 (Gross Margin) (11.3%) (7.5%) (9.0%) (+1.5%p) SG&A 610 652 605 -47 Operating Profit 1,203 558 705 +147 (Operating Margin) (+1.3%p) (7.5%) (3.5%) (4.8%) Non-Operating Profit -66 -372 -51 +321 Share of Profit(Loss) of Equity-accounted Investees 67 44 32 -12 Finance Income and Costs -57 -147 -26 +121 Foreign Currency Transaction & 18 6 -168 -174 Translation Gain(Loss) Net Profit 778 26 435 +409 (Net Margin) (+2.8%p) (4.9%) (0.2%) (3.0%) Profit Attributable to Owners of the 741 51 395 +344 Controlling Company 1Q20 Earnings Release │ April 24, 202013 Summarized F/S_Consolidated Income Statement (billion KRW) ’19.1Q ’19.4Q ’20.1Q QoQ Revenue -1,497 16,014 16,043 14,546 Gross Profit 1,813 1,210 1,310 +100 (Gross Margin) (11.3%) (7.5%) (9.0%) (+1.5%p) SG&A 610 652 605 -47 Operating Profit 1,203 558 705 +147 (Operating Margin) (+1.3%p) (7.5%) (3.5%) (4.8%) Non-Operating Profit -66 -372 -51 +321 Share of Profit(Loss) of Equity-accounted Investees 67 44 32 -12 Finance Income and Costs -57 -147 -26 +121 Foreign Currency Transaction & 18 6 -168 -174 Translation Gain(Loss) Net Profit 778 26 435 +409 (Net Margin) (+2.8%p) (4.9%) (0.2%) (3.0%) Profit Attributable to Owners of the 741 51 395 +344 Controlling Company 1Q20 Earnings Release │ April 24, 2020
14 Summarized F/S_Consolidated Balance Sheet (billion KRW) ’19.1Q ’19.4Q ’20.1Q QoQ Current Assets 34,678 34,843 37,813 +2,970 Cash Balance* 10,887 12,463 15,351 +2,888 Accounts Receivable 10,110 9,078 9,344 +266 Inventories 11,259 10,920 10,712 -208 Current Ratio 183.0% 213.4% 206.8% -6.6%p Non-Current Assets 45,062 44,216 44,433 +217 Other Long-term financial assets 1,667 1,669 1,604 -65 PP&E +426 30,486 29,926 30,352 Total Assets 79,740 79,059 82,246 +3,187 Liabilities 32,495 31,264 34,831 +3,567 Current Liabilities 18,945 16,324 18,285 +1,961 Non-Current Liabilities 13,550 14,940 16,546 +1,606 Interesting-bearing Debt 19,932 20,442 23,503 +3,061 Liabilities Ratio 68.8% 65.4% 73.5% +8.1%p Equity 47,245 47,795 47,415 -380 Owners of the Controlling Company 43,945 44,472 43,990 -482 * Cash Balance : Cash and cash equivalents, Short-term financial instruments, Short-term trading securities, Short-term securities, Current portion of held-to-maturity securities 1Q20 Earnings Release │ April 24, 202014 Summarized F/S_Consolidated Balance Sheet (billion KRW) ’19.1Q ’19.4Q ’20.1Q QoQ Current Assets 34,678 34,843 37,813 +2,970 Cash Balance* 10,887 12,463 15,351 +2,888 Accounts Receivable 10,110 9,078 9,344 +266 Inventories 11,259 10,920 10,712 -208 Current Ratio 183.0% 213.4% 206.8% -6.6%p Non-Current Assets 45,062 44,216 44,433 +217 Other Long-term financial assets 1,667 1,669 1,604 -65 PP&E +426 30,486 29,926 30,352 Total Assets 79,740 79,059 82,246 +3,187 Liabilities 32,495 31,264 34,831 +3,567 Current Liabilities 18,945 16,324 18,285 +1,961 Non-Current Liabilities 13,550 14,940 16,546 +1,606 Interesting-bearing Debt 19,932 20,442 23,503 +3,061 Liabilities Ratio 68.8% 65.4% 73.5% +8.1%p Equity 47,245 47,795 47,415 -380 Owners of the Controlling Company 43,945 44,472 43,990 -482 * Cash Balance : Cash and cash equivalents, Short-term financial instruments, Short-term trading securities, Short-term securities, Current portion of held-to-maturity securities 1Q20 Earnings Release │ April 24, 2020
15 Aggregated Earnings by Segment (billion KRW) Revenue Operating Profit Net Profit Segment ’19.1Q ’19.4Q ’20.1Q ’19.1Q ’19.4Q ’20.1Q ’19.1Q ’19.4Q ’20.1Q Steel 12,556 12,018 11,075 893 279 383 635 -964 285 Global&Infra 12,155 12,710 11,435 293 266 375 178 45 261 Trading 9,371 9,232 8,424 180 107 148 73 -3 78 E & C 1,638 2,315 1,937 25 96 124 21 -61 103 Energy 568 443 454 66 36 84 68 99 63 I C T 223 282 269 11 13 11 7 8 8 New Growth* 383 387 388 21 20 14 30 16 33 Total 25,094 25,115 22,898 1,207 565 772 843 -903 579 * New Growth segment includes the segment previously categorized as chemical business 1Q20 Earnings Release │ April 24, 202015 Aggregated Earnings by Segment (billion KRW) Revenue Operating Profit Net Profit Segment ’19.1Q ’19.4Q ’20.1Q ’19.1Q ’19.4Q ’20.1Q ’19.1Q ’19.4Q ’20.1Q Steel 12,556 12,018 11,075 893 279 383 635 -964 285 Global&Infra 12,155 12,710 11,435 293 266 375 178 45 261 Trading 9,371 9,232 8,424 180 107 148 73 -3 78 E & C 1,638 2,315 1,937 25 96 124 21 -61 103 Energy 568 443 454 66 36 84 68 99 63 I C T 223 282 269 11 13 11 7 8 8 New Growth* 383 387 388 21 20 14 30 16 33 Total 25,094 25,115 22,898 1,207 565 772 843 -903 579 * New Growth segment includes the segment previously categorized as chemical business 1Q20 Earnings Release │ April 24, 2020