Activities & Accomplishments

Transcription

1 Activities & Accomplishments CONTENTS History of Korean Steel Industry & POSCO POSCO s Future POSCO s Business Plan & Investment Plan in 2010 Current German Procurement Status Win-Win Cooperation POSCO

2 Korea Steel Industry & POSCO s Challenge 2

3 History of Korea Steel Industry Korea Steel Industry recorded Rapid Growth Rate (YoY 11%) Product: 1.24Mt (1973) 53.6 Mt (2008) Export: 1.05Mt (1973) 20.8 Mt (2008) Steel Product/Export Progress Foundation Era Growth Era (in Million Ton) Maturity Era 40 Gwangyang Steel Works Completion Product Poshang Steel Works Completion Export 3

4 History of Korea Steel Industry One of the Leading Country in the Worldwide 6 th Place in Production, 9 th Place in Export Production by Countries (in Million Ton) Country Amount 1 China Japan U.S.A Russia India Korea Germany Ukraine Brazil Italy 30.6 Production by Companies (in Million Ton) Company Amount 1 ArcelorMittal NSC Bao Steel POSCO Hebei Steel JFE Wuhan Steel Tata Steel Jiangsu Shagang U.S. Steel 23.2 Source: World Steel Association (2008) 4

5 POSCO is Reached a world-class level in the shortest time possible Crude Steel Production Increased 12.7% (YoY) Crude Steel 29.5 Mt Admired Company (Meta (2004 ~ 2008) Privatization 94 IPO NYSE Automobile Production Ship Building Admired Company (Top3 ( 2006 ~ 2008) Gwangyang Works Completion The Most Admired Company in Asia ( 2003 ~ 2007) Pohang Works Completion The Most Competitive Enterprise (2002 ~ 2007) Excellent Sustainability Corporation ( 2005 ~ 2007) 0 68 Foundation ASEAN Knowledge Management Award (2005,2006,2008) 5

6 POSCO is Securing The Level of World s No. 1 in Competitiveness! Rank for Competitiveness Company 1 POSCO (Korea) 2 SAIL (India) 3 NLMK (Russia) 4 Severstal (Russia) 5 CSN (Brazil) 6 Nucor(U.S.A.) 7 JSW Steel (India) 8 Bao Steel (China) Source: WSA(2009) The Most Competitive Company Rank for Market Capt. Company (in Billion USD) World No.2 in Market Cap. Amount 1 ArcelorMittal POSCO NSC JFE Bao Steel TKS Sumitomo CSC 13.8 Source: POSCO (As of April, 2010) 6

7 POSCO is Transparent & Advanced Corporate Governance Structure Outside Directors Professional Management System Separating Ownership and Management Risk Increasing Tech. Developing Keen Competition Professional Management Win-Win to All Stakeholders Outside Directors (8 People) Outside Directors (Expert Group) Standing - Industrial/Academic/Legal/Financial Expert Directors (5 People) Standing Directors (Chief Officers) - CEO, CFO, CTO, CMO, CSO Separating CEO and Chairman of the Board ( 06.3) Strengthening Subcommittees and Building the Group Mgmt. System ( 09.4) 7

8 POSCO s Global Business Network Overseas Production Sites Overseas SCM Sites Overseas Offices Overseas Production Sites Overseas SCM Sites Overseas Offices 8

9 POSCO s Future Where to Head? 9

10 Securing Sustainable Growth Competency Leap to POSCO 3.0 Era III. POSCO New Era II. Growth I. Foundation POSCO 1.0 POSCO 2.0 POSCO 3.0 (UOP),, Multi Core Business Group (Steel : Non-Steel = 65 : 35) (JANG), Global Steel Maker, Seed Business (DONG),, Smart Way of Working, Family Mgmt. System 10

11 Securing Sustainable Growth Competency Global Growth, New Business Expansion, POSCO Family Mgmt. Ever-growing POSCO Globalization New Business POSCO Family Expanding Investment Green Field, Brown Field + Comprehensive + Materials Provider Preoccupying Green Business Synergy with Core Competency E&C, Energy, IT Business Carrying out Survival Management to Defend Long Recession & Offensive Management" to Seek Opportunities in post-crisis 11

12 CJY CJY CJY CJY Securing Sustainable Growth Competency Establishing Global Production Sales Network - Mine-based Upstream, Market-based Downstream Secure Leadership in Asia & Expansion to Emerging Market Captive Market & Stand-Alone Production Emerging Europe M&A Upstream CJY CJY Far East North America M&A Upstream China Korea India Upstream Downstream Raw Material South-East Asia, Australia Central & South America 12

13 Securing Sustainable Growth Competency Secure Long-Term Growth Green Growth Strengthening Eco-Friendly Business - CO 2 Free Mills, New Renewable Energy Seed Business Material Biz Leaping to Comprehensive Materials Provider - Innovative Light Weight, High Strength Material Production Ocean Biz Concretizing Ocean Business incl. Raw Material - Ocean Power Generation, Submarine Resources POSCO, Centennial Company + Green Growth (Mutual growth) Material Business (New Growth) Ocean Business (New Growth) 13

14 Securing Sustainable Growth Competency Global Human Resource with the DNA of sustainable competitiveness Diversity & Harmony Creative Talents Innovation 1 2 Open Culture Human Resource Challenge Creative Win-Win Open Consilience Talents Global Human Asset 3 Innovative DNA Adopting Innovative Mindset 14

15 POSCO Business & Investment Plan 15

16 Business Plan and Investment Plan FY 2010 Business Plan (in Million Ton/in Trillion KRW) 2009 (Actual) 2010 (Forecast) Consolidated Stand-Alone Consolidated Stand-Alone Production (Crude Steel) 31, Sales Volume Revenue 37, Investment FY 2010 Investment Plan : KRW 10.4 Trillion Domestic 4.9 New Growth 4.0 Overseas 1.5 The data above represents the company s internal objectives, thus should not be used as a basis for investment decisions. 16

17 Major Investment Projects in 2010 Facility Addition Upgrade for 41Mt Domestic Capacity Capacity Expansion G) New Steel making & Plate Plant (~Jul. 2010): +2Mt.yr P) New Steel making Plant (~Sept. 2010): Mt/yr Total: 4.65Mt/yr Blast P) No. Furnace 2 CGL ( BF ) #2 Caster Revamping Rationalization (~Oct. 2010): + 0.6Mt/yr P) No. 4 BF Rationalization (Jul.~Sept.): Capacity Increase from 3,795 m3 to 5,500 m3 High-Value-Added Product Capacity Increase G) No.1 EGL Revamping ( 10.5~ 11.8): 40OKt 480Kt/yr P) Setting up PGL ( 09.1~12.3): 750Kt/yr G) Setting up No.4 POL ( 10.10~11.9) : 400Kt/yr Overseas Integrated Steel Mills India Orissa (1 st 4Mt): Socio-Economic-Survey (Jun.), Initiate Ground Work (2H) India SAIL J/V (1 st 3Mt): Approval in Principle by SAIL BOD (May), Joint F/S (Jul.~Aug.) Indonesia Krakatau J/V (1 st 3Mt): Finalizing JVA Terms, Initiate Ground Work (3Q 17

18 Major Investment Projects in 2010 Raw Material & Comprehensive Material Investment Investment in Raw Material Mine Development Australia Roy Hill Iron-Ore mine: Increase Stake up to 15% (~Dec. 2010) Mozambique Revuboe Coal Mine: Acquired 7.8% Stake (May 2010) Australia Sutton Forest Coal mine: Acquired 70% Stake (Jul. 2010) Lay Basis for Comprehensive Material Business G) Synthetic Natural Gas Plant (~2013): 500Kt/yr G) Fe-Mn Plant (Apr. 2010~Sept.2011): High Purity Fe-Mn 75Kt/yr JVA with UKTMP to Build Titanium Slab Plant in Kazakhstan (Apr.) MoU with KEPCO for Localization of Core Nuclear Plant Material (May) MoU with Zimbabwe Anchor Holdings for Resource Development (Jun.) 18

19 POSCO Current Status of German Procurement 19

20 Current Status of German Procurement Machinery Steady Growth of German Machinery and Equipments Procurement Machinery for Plant is purchased by Consortium and EIC equipments can be contracted with Foreign Supplier alone Scopes of Foreign Suppliers Alone Participation - Engineering, Key Parts Supply, Supervising and etc. Actual Record by Items (in Billion KRW) ` Machinery Electric & Electron Instrument Measurement Etc Total

21 Current Status of German Procurement MRO Materials 2009: KRW 23.1 Billion (1.5% of Total Purchase in 2009) Major Items: Lechler Nozzle, TLT TURBO Impeller, KME Copper Mould Actual Record by Items `2009 Remark (in Billion KRW) Machinery ㅁ Procuring Way Instrument Grind Wheel Refractory Electrical ETC Direct Purchasing & Contract by HQ - throughout Sales Offices or Agent in Korea Total

22 POSCO Win-Win Cooperation 22

23 Win-Win Cooperation Win-Win Management begins from Trust with the Stakeholders Creative Management Open Management Suppliers Local Community Mutual Trust Outsourcing Partners Eco-friendly Management Customers When there is a conflict between stakeholders trust and POSCO s interests, PUT TRUST FIRST by CEO Joon-Yang CHUNG 23

24 Win-Win Cooperation Internalization of Win-Win Cooperation as a Corporate Culture Practical Realization of Mutual Growth with Securing Global Competitiveness of the entire Supply Chain Long-Term Competitiveness Pursuit Fair Trading & Performance Mutual Cooperation Ongoing Practice Finance Support Technology Development Sales/ Procurement Cooperation Innovation Consulting Education/ Training 24

25 Program for Win-Win Cooperation Support for Foreign Investors Settlement Customized Techno Partnership Program Granting the Supply Priority for the FDI Companies which produce the product that can not be procured in Korea Registering as a member of sourcing group equivalent with Domestic companies (Manufacturing Company) Joining Win-Win Research Institute and Benefit Sharing Program Supporting for Education & Consulting Education Supporting e.g. Korean Culture Experience Program Management Consulting by POSCO HQ One Stop Service for POSCO s Procurement 25