2016 Earnings Release

January 25, 2017

Figures in this presentation are based on unaudited financial statements of the company.

Certain contents in this presentation are subject to change during the course of auditing process.

2016 Operating Performance

Major Business Activities

2017 Business Plan

▶

Figures in this presentation are based on unaudited financial statements of the company.

Certain contents in this presentation are subject to change during the course of auditing process.

Parent Income

2016 Operating Performance

Achieved 10.8% OP margin backed by increased WP products and cost-saving efforts

Production Sales Income

(thousand tons)

37,650

Crude Steel

37,965

37,496

35,942

Carbon Steel Price

Revenue

727

29,219

(billion KRW)

(thousand KRW/ton, billion KRW,

10.8%

thousand tons)

8.0%

8.7%

OP

Margin

606 566

ㅋ`

2,635

25,607 24,325

Product

35,08135,592

Product Sales Volume

Net

Profit

1,139

3,434

2,350

Operating

Profit

2,238

1,785

1,318

3,534 3,588

2014 2015 2016

2014

2015

2016

2014 2015 2016

[Financial Structure]

23.8%

(billion KRW)

Net Debt

[Production] [Domestic/Export Sales Volume & Inventory]

2014

2015

2016

Carbon Steel

33,376

33,730

33,971

S T S

1,705

1,862

1,971

2014

2015

2016

Domestic

18,368

17,155

18,141

Export

(%)

15,969

(46.5)

18,182

(51.5)

17,734

(49.4)

Inventory

1,280

1,240

1,045

Liabilities

to Equity

19.3%

17.4%

4,101

341

△109

2014

2015

2016

3

POSCO Earnings Release ｜January 25, 2017

Parent Income

2016 Operating Performance

Increased WP product sales, made corporate-wide efforts to improve profitability and save costs responding to negative sales environment

(trillion KRW)

External Causes: △1.0 Internal Efforts: +1.4

Operating

Profit

+0.4

+0.5

Increasing

WP Sales

+0.4

Saving Cost

2.2

'15

* Mill margin = Steel product price - major raw materials cost (iron ore/coking coal)

'16

△1.2

+0.5

Improving Profitability

2.6

Contraction

of mill margin* due to market slowdown

+0.02

Forex

-related

+0.2

Decrease of sub-materials cost

4

POSCO Earnings Release ｜January 25, 2017

POSCO published this content on 25 January 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 25 January 2017 08:06:03 UTC.

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