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 August, 2015
Commission File Number: 1-13368
POSCO
(Translation of registrant’s name into English)
POSCO Center, 892 Daechi 4-dong, Kangnam-gu, Seoul, Korea, 135-777
(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.)
Form 20-F x
Form 40-F ¨
[Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ¨ No
x
[If “Yes” is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b) : 82- .]
POSCO is furnishing under cover of Form 6-K:
Exhibit 99.1: An English-language translation of documents with respect to 2015 Interim Report.
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.
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POSCO |
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(Registrant) |
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| Date: |
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August 28, 2015 |
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By |
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/s/ Noh, Min-Yong |
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(Signature)* |
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Name: |
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Noh, Min-Yong |
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Title: |
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Senior Vice President |
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Print the name and title under the signature of the signing officer. |
Exhibit 99.1
INTERIM REPORT
(From January 1, 2015 to June 30, 2015)
THIS IS AN ENGLISH TRANSLATION OF THE INTERIM REPORT ORIGINALLY PREPARED IN THE KOREAN LANGUAGE (IN SUCH FORM AS REQUIRED BY THE KOREAN FINANCIAL SERVICES
COMMISSION). THIS ENGLISH TRANSLATION IS NOT OFFICIAL AND IS PROVIDED FOR INFORMATION PURPOSES ONLY.
UNLESS EXPRESSLY STATED OTHERWISE, ALL INFORMATION
CONTAINED HEREIN IS PRESENTED ON BOTH CONSOLIDATED AND NONCONSOLIDATED BASIS IN ACCORDANCE WITH THE KOREAN-INTERNATIONAL FINANCIAL REPORTING STANDARDS (K-IFRS) WHICH DIFFER IN CERTAIN RESPECTS FROM GENERALLY ACCEPTED ACCOUNTING PRINCIPLES IN CERTAIN
OTHER COUNTRIES, INCLUDING THE UNITED STATES. WE HAVE MADE NO ATTEMPT TO IDENTIFY OR QUANTIFY THE IMPACT OF THESE DIFFERENCES.
INTERIM REPORT
(From January 1, 2015 to June 30, 2015)
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| To: |
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Korean Financial Services Commission and Korea Exchange |
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| /s/ Kim, Jin-Il |
| Kim, Jin-Il |
| President and Representative Director |
| POSCO |
| 6261 Donghaean-ro (Goedong-dong), Pohang-si, Nam-gu, Gyungsangbuk-do, Korea |
| Telephone: +82-54-220-0114 |
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| /s/ Noh, Min-Yong |
| Noh, Min-Yong |
| Senior Vice President |
| POSCO |
| 6261 Donghaean-ro (Goedong-dong), Pohang-si, Nam-gu, Gyungsangbuk-do, Korea |
| Telephone: +82-2-3457-0114 |
2
TABLE OF CONTENTS
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| I. |
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Overview |
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4 |
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| II. |
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Business |
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10 |
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| III. |
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Financial Statements |
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32 |
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| IV. |
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Corporate Governance and Company Affiliates |
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36 |
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| Attachment: |
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Independent Auditors’ Review Report |
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(Non-consolidated and consolidated) |
3
I. OVERVIEW
1. Scope of Business
A. POSCO (the
“Company”)
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Business |
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Note |
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Production and sale of crude steel and stainless steel products |
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Port/harbor loading/unloading, warehousing and packaging |
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| (3) |
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Management of professional athletic organizations |
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No engagement in this business
during the first half of fiscal year 2015 |
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(4) |
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Power generation, renewable energy projects, liquefied natural gas
logistics and exploration and other incidental businesses |
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| (5) |
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Real property lease business |
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Public energy services and distribution system |
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Marine transportation of mineral resources; domestic and overseas processing and sales of mineral resources |
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| (8) |
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Educational services and other incidental services |
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| (9) |
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Production and sale of non-ferrous metals |
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| (10) Other businesses incidental or related, directly or indirectly, to the foregoing businesses |
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(1) |
Name of the Business Group: POSCO |
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(2) |
Companies Belonging to the Business Group |
POSCO, POSCO COATED & COLOR STEEL Co.,
Ltd., POSCO PLANTEC Co., Ltd., Daewoo International Corporation, POSCO ICT, POSCO CHEMTECH, POSCO M-TECH, POSCO ENGINEERING CO., Ltd., MegaAsset Co., Ltd., Busan E&E Co., Ltd., Suncheon Eco Trans Co., Ltd., SNNC, eNtoB Corporation, UITrans LRT
Co. Ltd., POREKA Co., Ltd., POSMATE, POSCO Humans, POSCO ENGINEERING & CONSTRUCTION CO., LTD., POSCO Research Institute, POSCO A&C, POSCO AST, POSCO LED Co., Ltd., Poscoene, POSCO TMC Co., Ltd., POSCO Processing&Service,
POSHIMETAL Co., Ltd., Pohang Scrap Recycling Distribution Center Co., Ltd., POSCO NIPPON STEEL RHF JOINT VENTURE CO., Ltd., Mapo Hibroad Parking co., Ltd., MTAPOLIS Co., Ltd., POSCO-TERMINAL Co., Ltd., POSCO ENERGY CO., LTD., , PSC Energy Global
Co., Ltd., PONUTech Co., Ltd., Daechang AT Co., Ltd., Gale International Korea, LLC, POS-HiAL, Tamra Offshore Wind Power Co., Ltd., BLUE O&M Co., Ltd., POSCO Venture Capital Co., Ltd., POSCO ES MATERIALS, Pohang Special Welding Co., Ltd., Steel
Processing and Fabricating Center Co., Ltd., POSCO MITSUBISHI CARBON TECHNOLOGY, POSCO Green Gas Technology, POSPOWER CO., LTD., Songdo POSCO Family Housing, HOTEL LAONZENA CO., LTD., POSCO Group University
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(a) |
Changes in Companies Belonging to the Business Group |
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Addition of a Subsidiary: Songdo POSCO Family Housing. (January 2, 2015) |
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Name change from POSCO Specialty Steel Co., Ltd. to Seah Changwon Special Steel Co., Ltd. (March 17, 2015) |
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Addition of a Subsidiary: HOTEL LAONZENA CO., LTD. (April 1, 2015) |
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Addition of a Subsidiary: POSCO Group University (April 1, 2015) |
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Name change from New Altec Co., Ltd. to Daechang AT Co., Ltd. (April 6, 2015) |
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Exclusion of a Subsidiary: Seah Changwon Special Steel Co., Ltd. (May 12, 2015) |
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Exclusion of a Subsidiary: POSFINE Co., Ltd. (June 19, 2015) |
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(b) |
Changes after June 30, 2015 |
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Exclusion of a Subsidiary: Daechang AT Co., Ltd. (July 16, 2015) |
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(3) |
Related Laws and Regulations |
The Korea Fair Trade Commission has designated POSCO as a company
subject to the limitations on Cross Shareholding and Debt Guarantee for Affiliates under the Monopoly Regulation and Fair Trade Act (the “MRFTA”).
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(a) |
Prohibition on Cross Shareholdings (Article 9 (1) of the MRFTA) |
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(b) |
Prohibition on Debt Guarantees for Affiliated Corporations (Article 10-2 of the MRFTA) |
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(c) |
Prohibition on Shareholding of Venture Capitals for Subsidiaries (Article 9 (3) of the MRFTA) |
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(d) |
Limitation of Voting Rights of Financial or Insurance Companies (Article 11 of the MRFTA) |
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(e) |
Resolution of the Board of Directors and Publication on Large-Scale Intra-Group Transaction (Article11-2 of the MRFTA) |
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(f) |
Disclosure of Important Facts such as Unlisted Shares (Article 11-3 of the MRFTA) |
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(g) |
Disclosure of a corporate group (Article 11-4 of the MRFTA) |
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(h) |
Report on Status of Shareholding (Article 13 of the MRFTA) |
5
2. Business Organization
A. Highlights of the Company’s Business Organization
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(1) |
Location of the Headquarters: 6261 Donghaean-ro (Goedong-dong), Nam-gu, Pohang-si, Gyeongsangbuk -do, Korea |
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(2) |
Steel Works and Offices |
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(a) |
Pohang Steel Works: 6262 Donghaean-ro (Dongchon-dong), Nam-gu, Pohang-si, Gyeongsangbuk -do, Korea |
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(b) |
Gwangyang Steel Works: 20-26 Pokposarang-gil (Kumho-dong), Gwangyang-si, Jeollanam -do, Korea |
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(c) |
Principal Executive Office: POSCO Center, 440 Teheran-ro (Daechi-dong), Gangnam-gu, Seoul, Korea |
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(d) |
Overseas Offices: For the purpose of supporting international business transactions, the Company operates six overseas offices as follows: |
United Arab Emirates (Dubai), European Union (Dusseldorf, Germany), Brazil (Rio de Janeiro), Mongolia (Ulaanbaatar), Australia (Perth), and
Argentina.
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(3) |
Major Changes in the Board of Directors (as of March 13, 2015) |
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New members: Oh, In-Hwan (2 years) |
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New members: Bahk, Byong-Won and Kim, Joo-Hyun (3 years) |
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(c) |
Representative Directors |
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Prior to March 13, 2015: Kwon, Oh-Joon, Kim, Jin-Il and Chang, In-Hwan |
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As of March 13, 2015: Kwon, Oh-Joon, Kim, Jin-Il and Yoon, Dong-Jun |
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After June 30, 2015: Kwon, Oh-Joon, and Kim, Jin-Il |
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(4) |
Changes of the Major Shareholders of POSCO |
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(a) |
National Pension Service holds the largest number of shares of POSCO. |
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(b) |
Date of Disclosure: January 30, 2007 |
(For further reference, please refer to the public
disclosures regarding the change of the major shareholders on January 30, 2007, July 27, 2007, January 29, 2008, July 25, 2008, January 21, 2009, March 2, 2009, July 22,
2009, October 9, 2009, January 26, 2010, July 20, 2010, January 28, 2011, July 22, 2011, January 31, 2012, August 1, 2012, February 1, 2013, August 1,
2013, January 14, 2014, January 23, 2014, July 29, 2014, January 23, 2015 and August 5, 2015)
6
B. Merger, Acquisition and Handover of Businesses
[None]
C. Major Changes in Production Facilities
Refer to the ‘II. Business (5. Production and Facilities)’
3. Equity Capital
A. New Issuance of Registered
Common Stock
There was no new issuance of registered common stock in the last five years.
B. Convertible Bonds
[None]
C. Bonds with Warrant
[None]
7
4. Other Information Regarding Shares
A. Total Number of Shares
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(As of June 30, 2015) |
| Authorized Shares |
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Outstanding Shares |
| 200,000,000 |
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87,186,835 |
The currency of the Republic of Korea is Korean Won (“KRW”).
Par Value: KRW 5,000 per share
B. Treasury Stock Holding and Cancellation
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(As of June 30, 2015) |
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| Method of Purchase |
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Type |
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Beginning* |
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Increased |
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Decreased |
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Cancelled |
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Balance |
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| Direct |
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Registered
Common |
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7,193,807 |
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— |
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430 |
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— |
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7,193,377 |
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| Special Money Trust |
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— |
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— |
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| Total |
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7,193,807 |
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— |
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430 |
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7,193,377 |
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Beginning Balance: as of December 31, 2014 |
Board of Directors approved the ‘Disposal of Treasury Stocks as Employee Award’ at the Meeting held on February 7, 2013, where the execution and responsibility of the disposal of the treasury stocks was
delegated to the Executive Management Committee. On March 5, 2013, the Executive Management Committee resolved its plan to dispose the treasury stocks and the actual disposal of 74 treasury stocks was completed on March 8, 2013. On
April 2, 2013, the Executive Management Committee resolved its plan to dispose the treasury stocks and the actual disposal of 387 treasury stocks was completed on April 9, 2013. On July 2, 2013, the Executive Management Committee
resolved its plan to dispose the treasury stocks and the disposal of 150 treasury stocks was completed on July 8, 2013. On October 1, 2013, the Executive Management Committee resolved its plan to dispose the treasury stocks and the actual
disposal of 2,009 treasury stocks was completed on October 7, 2013. On January 7, 2014, the Executive Management Committee resolved its plan to dispose the treasury stocks and the actual disposal of 139 treasury stocks was completed on
January 9, 2014. On April 15, 2014, the Executive Management Committee resolved its plan to dispose the treasury stocks and the actual disposal of 475 treasury stocks was completed on April 16, 2014. On July 15, 2014, the
Executive Management Committee resolved its plan to dispose the treasury stocks and the actual disposal of 30 treasury stocks was completed on July 16, 2014. On January 26, 2015, the Executive Management Committee resolved its plan to
dispose the treasury stocks and the actual disposal of 40 treasury stocks was completed on January 27, 2015. On April 21, 2015, the Executive Management Committee resolved its plan to dispose the treasury stocks and the actual disposal of
390 treasury stocks was completed on April 22, 2015.
8
Changes after June 30, 2015
On July 21, 2015, the Executive Management Committee resolved its
plan to dispose the treasury stocks and the actual disposal of 210 treasury stocks was completed on July 22, 2015.
5. Voting Rights
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(As of March 31, 2015) |
| Classification of Shares |
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Number of Shares |
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Remarks |
| (1) Number of Outstanding Shares |
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87,186,835 |
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| (2) Shares without Voting Rights * |
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7,193,377 |
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*Treasury Stock 7,193,377
shares |
| (3) Shares with Voting Rights |
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79,993,458 |
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6. Earnings and Dividend
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(In millions of KRW) |
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2015 2Q
(January 1, 2015 ~
June 30, 2015) |
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2014 |
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2013 |
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| (Consolidated) Net Profit |
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536,764 |
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626,099 |
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1,376,396 |
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| Earnings per Share (KRW) |
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6,506 |
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7,432 |
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17,409 |
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| Cash Dividend Paid |
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— |
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639,527 |
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633,192 |
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| (Consolidated) Pay-out Ratio (%) |
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102.1 |
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46.0 |
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| Dividend per Share (KRW) |
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— |
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8,000 |
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8,000 |
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| Dividend Yield (%) |
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— |
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2.90 |
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2.45 |
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9
II. BUSINESS
1. Overview
A. Classification of Business
We classify our business into four segments:
Steel, Trading, Engineering & Construction, and Others.
B. Segment Results
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(In millions of KRW) |
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| Category |
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2015 2Q
(January 1, 2015 ~
June 30, 2015) |
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2014 |
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2013 |
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Sales |
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Operating
Income (Loss) |
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Sales |
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Operating
Income (Loss) |
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Sales |
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Operating
Income (Loss) |
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| Steel |
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14,648,727 |
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1,059,540 |
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31,841,748 |
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2,267,825 |
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31,794,574 |
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2,363,377 |
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| Trading |
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9,775,495 |
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130,009 |
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21,165,806 |
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284,892 |
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18,307,888 |
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81,696 |
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| Engineering & Construction |
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4,250,096 |
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124,263 |
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8,119,207 |
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446,214 |
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6,896,838 |
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179,186 |
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| Others |
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1,616,085 |
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103,773 |
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3,971,684 |
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214,599 |
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4,865,350 |
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371,875 |
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| Total |
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30,290,403 |
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1,417,585 |
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65,098,445 |
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3,213,530 |
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61,864,650 |
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2,996,134 |
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2. Current Situation
1) Steel
A. Domestic Market Share
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(Millions of Tons, %) |
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| Category |
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2015 2Q
(January 1, 2015 ~
June 30, 2015) |
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2014 |
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2013 |
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2012 |
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Production |
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Market share |
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Production |
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Market share |
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Production |
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Market share |
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Production |
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Market share |
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| Crude Steel Production |
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34.5 |
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100 |
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71.5 |
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100 |
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66.1 |
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100 |
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69.3 |
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100 |
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| POSCO
Others |
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18.5
16.0 |
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53.6
46.4 |
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37.7
33.8 |
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52.7
47.3 |
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36.4
29.7 |
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55.2
44.8 |
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38.0
31.3 |
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54.6
45.4 |
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Source: Korea Iron and Steel Association
10
B. Characteristics of the Steel Market
The steel industry supplies materials to major industries such as the automobile, shipbuilding and electronic appliance industries.
C. Summary and Prospect of New Businesses
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1) |
Establishment of Steelworks in India |
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(a) |
Company entered into a memorandum of understanding with the Orissa state government for the development of iron ore captive mines and for the development and construction of an integrated steelworks facility with an
annual production capacity of 12 million tons. (June, 2005) |
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(1-1) |
Development of Iron Ore Captive Mines |
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(a) |
POSCO-India filed applications for mining exploration licenses for certain iron ore mines in the region of Khandadhar, Orissa (the “Khandadhar Licenses”). (September, 2005) |
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(b) |
Orissa State Government recommended the approval of the Khandadhar Licenses on behalf of POSCO-India to the Indian central government. (December, 2006) |
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(c) |
Indian central government denied the approval for the Khandadhar Licenses and remanded the matter to the Orissa State Government for further consideration. (July, 2007) |
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(d) |
Orissa State Government resubmitted its recommendation for the approval of the Khandadhar Licenses on behalf of POSCO-India to the Indian central government. (January, 2009) |
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(e) |
Orissa High Court set aside the Orissa State Government’s recommendation to grant the approval of the Khandadhar Licenses to POSCO-India. (July, 2010) |
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(f) |
Orissa State Government filed a special leave petition with the Indian Supreme Court. (November, 2010) |
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(g) |
Orissa State Government and POSCO-India completed the submission of the counter affidavit and the rejoinder. (October, 2011) |
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(h) |
Indian Supreme Court resumed the trial on the merit of the case. (May, 2012) |
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(i) |
Indian Supreme Court decided on the merit of the case. (March, 2013) |
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(j) |
Indian Supreme Court ordered to nullify judgment of the Orissa High Court regarding the right to explore the iron ore mines in the region of Kandahar; and the Indian central government reinitiated the approval
procedures for right to explore Kandahar. (May, 2013) |
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(k) |
India Government announced an Administrative Order of the auction system for assignment of mine. (January, 2015) |
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(1-2) |
Establishment of Steelworks |
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(a) |
Indian central government granted the approval for the environmental impact assessment for the construction of a captive port. (May, 2007) |
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(b) |
Indian central government granted the approval for the environmental impact assessment for the construction of steel mills. (July, 2007) |
11
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(c) |
Indian Supreme Court granted the transformation of the forest land with respect to 2,959 acres of the steel mill construction site. (August, 2008) |
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(d) |
Indian central government granted the final approval for the deforestation of steel mill construction sites. (December, 2009) |
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(e) |
Final plans for the rehabilitation and resettlement of indigenous population were approved by the Rehabilitation and Peripheral Development Advisory Committee (constituted by the Orissa state government). (July, 2010)
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(f) |
Forest Advisory Committee acting under the Ministry of Environment and Forest temporarilysuspended activities at the construction site pending investigation into alleged violation of the Forest Regulation Act. (August,
2010) |
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(g) |
Ministry of Environment and Forest of the Indian central government granted a conditional approval on the construction of the steel mills and the port. (January, 2011) |
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(h) |
Ministry of Environment and Forest of the Indian central government granted the final approval on the construction of the steel mills and the port. (May, 2011) |
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(i) |
Company cleared the crop fields designated for the construction of its steel mill site within the state owned property. (May, 2011). |
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(j) |
An environmental organization filed a lawsuit to nullify the approval for the environmental impact assessment in the National Green Tribunal. (August, 2011) |
| |
(k) |
National Green Tribunal dismissed the lawsuit of nullifying the approval for the environmental impact assessment and ruled that the Ministry of Environment and Forest should reassess the conditions on which clearance
was permitted for the project. (March, 2012) |
| |
(l) |
Procurement of the possessory right over 1,704 acres of the steel mill construction site. (March, 2013) |
| |
(m) |
Ministry of Environment and Forest of the Indian central government approved to gain environmental license for building the steel mill (January, 2014) |
| |
(2) |
Establishment of the Steelworks in Brazil |
| |
(a) |
Board of Directors resolved to invest a 20% interest in CSP Joint Venture established by POSCO, VALE S.A. and DONGKUK STEEL MILL CO., LTD. (May, 2011) |
| |
(b) |
CSP Joint Venture entered into an Engineering Procurement Construction contract with POSCO E&C. (December, 2011) |
| |
(c) |
Construction of a steelwork with an annual capacity of 3 million tons initiated. (September, 2012) |
| |
(d) |
Build 4 pillars sustaining the furnace (March, 2014) |
| |
(e) |
Receiving electrical power (July, 2015) |
| |
(3) |
Establishment of a Continuous Galvanizing Line in Thailand |
| |
(a) |
Approval of the Board of Directors (November, 2013) |
| |
(b) |
Contract of the Site Sales (March, 2014) |
| |
(c) |
Acquisition of the Land Use Rights (June, 2014) |
| |
(d) |
Construction of a steelwork with an annual capacity of 0.45 million tons commenced (September, 2014) |
12
| |
(4) |
Establishment of no.7 Continuous Galvanizing Line at Gwangyang Works |
| |
(a) |
Board of Directors resolved to construct a Continuous Galvanizing Line at Gwangyang Works (December, 2014) |
2) Trading
A. Market Share
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
(Millions of Dollars, %) |
|
| Category |
|
2015 2Q
(January 1, 2015 ~
June 30, 2015) |
|
|
2014 2Q
(January 1, 2014 ~
June 30, 2014) |
|
|
Growth rate |
|
| All Trading Companies in Korea |
|
|
268,698 |
|
|
|
283,208 |
|
|
|
-5.1 |
|
| Daewoo International |
|
|
3,388 |
|
|
|
3,753 |
|
|
|
-9.7 |
|
Source: Korea International Trade Association
B. Summary and Prospect of New Businesses
Daewoo International Corporation (“Daewoo International”) is playing a leading role in Korean export industry as the number one trading company based
on its wide range of trading network worldwide including about 100 overseas trading subsidiaries, overseas branches and representative offices through intermediary trading and exporting various products including steel, non-ferrous metals, and
chemical products. Moreover, Daewoo International is making tangible progress in resource development through Myanmar gas field. Daewoo International has newly entered into the food and forestry development business to secure the future food
resources and green energy resources. Daewoo International will aggressively drive this successful momentum of active investment and trading by establishing plantations for agro-resources such as rice, soybean, wheat and corn as well as oil palm and
afforestation businesses.
3) Engineering & Construction
A. Summary and Prospect of New Businesses
POSCO
Engineering & Construction Co. Ltd. (“POSCO Engineering & Construction”), established in February 1982, is currently expanding its business areas to civil engineering, architectural works, energy, urban development and
low carbon & green growth businesses. In reference to the number of the overseas contracts signed by POSCO Engineering & Construction in 2011, the business performance of the POSCO Engineering & Construction in the global
market has been satisfactory.
POSCO ENGINEERING COMPANY CO., LTD. succeeded in the development of a management system for the global market and the
Engineering, Procurement & Construction (“EPC”) business. POSCO ENGINEERING COMPANY CO., LTD. planed out its global sales strategy and stabilized its global network through its local agencies and localization strategies. Recently,
POSCO ENGINEERING COMPANY CO., LTD. expanded its business markets to the countries located in Central and South America, Africa and Europe.
13
4) Others
A. POSCO ENERGY CO., LTD
POSCO ENERGY CO., LTD.
(“POSCO ENERGY”) started its commercial operation in February, 1972 as the only privately-owned power plant in Korea. Since the early 90’s, POSCO ENERGY continuously remodeled and built additional power plants meeting the increased
demand of electricity in Korea.
B. POSCO ICT
POSCO
ICT has an expertise in IT and engineering, which was made in an effort to lead the trend of green growth and convergence. Based on its key technologies, POSCO ICT has been putting efforts to enhance competitiveness of the industries for 30 years,
in areas such as steel, railroad/transportation, environment/energy.
POSCO ICT has selected Smart Grid energy efficiency business as the strategic
business and focused to nurture it. Also the firm is pushing business to overseas, providing total solution to overseas steel mills and exporting railroad solution system. Based on its overseas network located in China India Vietnam, Indonesia, and
Brazil, POSCO ICT will speed up the penetration to the local market and increase overseas order volume by expanding businesses.
C. POSCO CHEMTECH
POSCO CHEMTECH, founded in 1963, specializes in manufacturing of refractories, lime used in steel manufacturing processes as well as a wide range of
chemical and environmentally friendly products. POSCO CHEMTECH provides refractories to a wide range of industries including steel, cement, and glass companies. To become a global company, POSCO CHEMTECH is currently expanding its markets to Japan,
China and Indonesia. Now, POSCO CHEMTECH is preparing for the leap towards the future industries of the comprehensive chemical and carbon material
14
3. Key Products
A. Sales of Key Products
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
(In hundred millions of KRW, %) |
|
| Business Area |
|
Item |
|
Specific Use |
|
Total Sales |
|
|
Ratio |
|
| Steel |
|
Hot-rolled Product (HR) |
|
Steel pipe, Shipbuilding, etc |
|
|
29,724 |
|
|
|
12.8 |
|
| |
Cold-rolled Product (CR) |
|
Automobile , Home appliances, etc |
|
|
80,462 |
|
|
|
34.6 |
|
| |
Stainless Steel Products |
|
Western tableware, etc |
|
|
49,129 |
|
|
|
21.1 |
|
| |
By-Product |
|
Plates, Wire rods, etc |
|
|
73,373 |
|
|
|
31.5 |
|
| |
Gross Sum |
|
|
232,688 |
|
|
|
100.0 |
|
| |
Deduction of Internal Trade |
|
|
(86,201 |
) |
|
|
|
|
| |
Sub Total |
|
|
146,487 |
|
|
|
|
|
| Trading |
|
Steel, Metal |
|
|
78,844 |
|
|
|
56.0 |
|
| |
Chemical, Strategic Item, Energy |
|
|
3,336 |
|
|
|
2.4 |
|
| |
Etc |
|
|
58,638 |
|
|
|
41.6 |
|
| |
Gross Sum |
|
|
140,818 |
|
|
|
100.0 |
|
| |
Deduction of Internal Trade |
|
|
(43,063 |
) |
|
|
|
|
| |
Sub Total |
|
|
97,755 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Engineering & Construction |
|
Domestic Construction |
|
Architecture |
|
|
11,008 |
|
|
|
22.0 |
|
| |
|
Plant |
|
|
7,492 |
|
|
|
15.0 |
|
| |
|
Civil Engineering |
|
|
3,637 |
|
|
|
7.3 |
|
| |
Overseas Construction |
|
|
21,970 |
|
|
|
44.0 |
|
| |
Owned Construction |
|
|
3,781 |
|
|
|
7.6 |
|
| |
Etc |
|
|
2,070 |
|
|
|
4.1 |
|
| |
Gross Sum |
|
|
49,958 |
|
|
|
100.0 |
|
| |
Deduction of Internal Trade |
|
|
(7,457 |
) |
|
|
— |
|
| |
Sub Total |
|
|
42,501 |
|
|
|
|
|
| Others |
|
Electricity Sales, etc |
|
|
29,751 |
|
|
|
100.0 |
|
| |
Deduction of Internal Trade |
|
|
(13,590 |
) |
|
|
— |
|
| |
Sub Total |
|
|
16,161 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Sum |
|
|
302,904 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15
B. Price Fluctuation Trend of Key Products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
(In thousands of KRW/ Tons, kWh) |
|
| Business Area |
|
Products |
|
2015 2Q
(January 1, 2015 ~
June 30, 2015) |
|
|
2014 |
|
|
2013 |
|
|
2012 |
|
| Steel |
|
Hot-rolled Product (HR) |
|
|
595 |
|
|
|
686 |
|
|
|
728 |
|
|
|
828 |
|
| |
Cold-rolled Product (CR) |
|
|
755 |
|
|
|
822 |
|
|
|
877 |
|
|
|
999 |
|
| Others |
|
Electric Power |
|
|
111 |
|
|
|
142 |
|
|
|
156 |
|
|
|
161 |
|
| |
Lime |
|
120 |
|
|
112 |
|
|
119 |
|
|
105 |
|
Figures for the trading and engineering & construction businesses are not reflected on the table.
[Steel]
| (1) |
Criteria for Calculation |
| |
(a) |
Subjects for Calculation: unit prices of the standard hot-rolled product and cold-rolled product |
| |
(b) |
Calculation Method and Unit: The average price of each product based on its total sales including the freight during the given period. |
| (2) |
Factors of Price Fluctuations |
Due to the weakened global demand in steel consumption and
oversupply from China, domestic and overseas steel price has decreased since the end of 2011.
[Others]
| (1) |
Criteria for Calculation |
| |
(a) |
Electric Power = price of electric power/total amount of generated power |
| |
(b) |
Lime: average sales price including shipping cost |
16
4. Major Raw Materials
A. Current Status of Major Raw Materials
|
|
|
|
|
|
|
|
|
|
|
| |
|
(In hundred millions of KRW) |
| Business Area |
|
Type of
Purchase |
|
Item |
|
Specific Use |
|
Purchase Amount
(Portion) |
|
Remarks |
| Steel |
|
Raw Materials |
|
Materials for
Iron-making, |
|
Iron Ore for Blast
Furnaces |
|
42,093 (38.3%) |
|
Iron Ore, Coal |
| |
|
Sub-materials |
|
Sub-materials for
Iron-making,
Steelmaking |
|
37,199 (33.9%) |
|
Iron Material,
Alloy Iron,
Non-ferrous
Metal, Limestone,
etc. |
| |
|
Stainless Steel
Materials |
|
Key Materials for
STS Production |
|
30,512 (27.8%) |
|
Nickel,
Ferrochrome,STS
Scrap Iron,
etc. |
|
|
|
|
|
|
| Engineering & Construction |
|
Raw Materials |
|
Ready-mixed
Concrete |
|
Construction of
Structure |
|
869 (18.8%) |
|
|
| |
|
Steel Pile |
|
Foundation of
Structure |
|
52 (1.1%) |
|
|
| |
|
Steel
Reinforcement |
|
Strengthening
Concrete |
|
1,006 (21.8%) |
|
|
| |
|
Cable |
|
Electricity Transfer |
|
76 (1.6%) |
|
|
| |
|
Etc. |
|
- |
|
2,621 (56.7%) |
|
|
|
|
|
|
|
|
| Others |
|
Raw Materials |
|
LNG |
|
Material for Power
Generation |
|
6,019 (69.2%) |
|
|
| |
|
Limestone |
|
Production of Lime |
|
468 (5.4%) |
|
|
| |
|
Etc. |
|
- |
|
2,210 (25.4%) |
|
|
17
B. Price Fluctuation Trend of Major Raw Materials
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
(In thousands of KRW) |
|
| Business Area |
|
Category |
|
2015 2Q
(January 1, 2015 ~
June 30, 2015) |
|
|
2014 |
|
|
2013 |
|
| Steel |
|
Iron Ore (per ton) |
|
|
66 |
|
|
|
93 |
|
|
|
148 |
|
| |
Coal (per ton) |
|
|
124 |
|
|
|
132 |
|
|
|
162 |
|
| |
Scrap Iron (per ton) |
|
|
288 |
|
|
|
382 |
|
|
|
428 |
|
| |
Nickel (per ton) |
|
|
15,039 |
|
|
|
17,769 |
|
|
|
16,455 |
|
| Engineering & Construction |
|
Ready-mixed Concrete (per m3) |
|
|
59 |
|
|
|
59 |
|
|
|
57 |
|
| |
Steel Pile (per m) |
|
|
67 |
|
|
|
67 |
|
|
|
70 |
|
| |
Steel Reinforcement (per kg) |
|
|
1.0 |
|
|
|
1.0 |
|
|
|
1.0 |
|
| |
Cable (per m) |
|
|
1.0 |
|
|
|
1.0 |
|
|
|
1.0 |
|
| Others |
|
LNG (per ton) |
|
|
796 |
|
|
|
1,056 |
|
|
|
979 |
|
| |
Lime (per ton) |
|
|
20 |
|
|
|
20 |
|
|
|
20 |
|
18
[Steel]
Key Factors in Price Fluctuations
(1) Iron Ore
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Dollars/ Tons) |
|
| |
|
‘15 2Q |
|
|
‘15 1Q |
|
|
‘14 4Q |
|
|
‘14 3Q |
|
|
‘14 2Q |
|
|
‘14 1Q |
|
|
‘13 4Q |
|
|
‘13 3Q |
|
|
‘13 2Q |
|
|
‘13 1Q |
|
|
‘12 4Q |
|
|
‘12 3Q |
|
| Trend of International Benchmark Price (Free On Board, “FOB”) |
|
|
54 |
|
|
|
58 |
|
|
|
66 |
|
|
|
82 |
|
|
|
94 |
|
|
|
111 |
|
|
|
123 |
|
|
|
123 |
|
|
|
118 |
|
|
|
141 |
|
|
|
113 |
|
|
|
105 |
|
(2) Coal
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Dollars/ Tons) |
|
| |
|
‘15 2Q |
|
|
‘15 1Q |
|
|
‘14 4Q |
|
|
‘14 3Q |
|
|
‘14 2Q |
|
|
‘14 1Q |
|
|
‘13 4Q |
|
|
‘13 3Q |
|
|
‘13 2Q |
|
|
‘13 1Q |
|
|
‘12 4Q |
|
|
‘12 3Q |
|
| Trend of International Benchmark Price (FOB) |
|
|
109.5 |
|
|
|
117 |
|
|
|
119 |
|
|
|
120 |
|
|
|
120 |
|
|
|
143 |
|
|
|
152 |
|
|
|
145 |
|
|
|
172 |
|
|
|
165 |
|
|
|
170 |
|
|
|
225 |
|
(3) Scrap Iron
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Dollars/ Tons) |
|
| |
|
‘15 2Q |
|
|
‘15 1Q |
|
|
‘14 4Q |
|
|
‘14 3Q |
|
|
‘14 2Q |
|
|
‘14 1Q |
|
|
‘13 4Q |
|
|
‘13 3Q |
|
|
‘13 2Q |
|
|
‘13 1Q |
|
|
‘12 4Q |
|
|
‘12 3Q |
|
| Trend of Purchase Price (Cost and Freight, “CFR”) |
|
|
256 |
|
|
|
268 |
|
|
|
331 |
|
|
|
376 |
|
|
|
365 |
|
|
|
379 |
|
|
|
396 |
|
|
|
367 |
|
|
|
379 |
|
|
|
421 |
|
|
|
379 |
|
|
|
400 |
|
(4) Nickel
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
15 2Q |
|
‘15 1Q |
|
‘14 4Q |
|
‘14 3Q |
|
‘14 2Q |
|
‘14 1Q |
|
‘13 4Q |
|
‘13 3Q |
|
‘13 2Q |
|
‘13 1Q |
| Trend of London Metal Exchange (“LME”) Cash Price |
|
USD |
|
USD |
|
USD |
|
USD |
|
USD |
|
USD |
|
USD |
|
USD |
|
USD |
|
USD |
| |
5.90/lb |
|
6.50/lb |
|
7.17/lb |
|
8.43/lb |
|
8.37/lb |
|
6.64/lb |
|
6.31/lb |
|
6.32/lb |
|
6.78/lb |
|
7.85/lb |
| |
USD |
|
USD |
|
USD |
|
USD |
|
USD |
|
USD |
|
USD |
|
USD |
|
USD |
|
USD |
| |
13,008/ton |
|
14,338/ton |
|
15,799/ton |
|
18,576/ton |
|
18,463/ton |
|
14,645/ton |
|
13,904/ton |
|
13,922/ton |
|
14,952/ton |
|
17,309/ton |
19
[Engineering and Construction]
(1) Criteria for Calculation
|
|
|
| Products |
|
Criteria for Calculation |
| Ready-mixed Concrete |
|
Standard 25-210-15 |
| Steel Pile |
|
SPS400 406.4x7.9T |
| Steel Reinforcement |
|
High Tensile Deformed Bar SD40 D10 |
| Cable |
|
TFR-CV, 0.6/1KV 2.5mm2 2core |
[Others]
(1) Criteria
for Calculation
| |
(a) |
Electric Power: purchase price of electricity from Korea Gas Corporation |
| |
* |
Increase in electricity price is due to the increase of raw material cost and foreign exchange rate. |
| |
(b) |
Lime: purchase price of lime and transportation fees |
20
5. Production and Facilities
A. Production Capacity
[Steel]
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
(Thousands of Tons) |
|
| Business Area |
|
Products |
|
2015 2Q
(January 1, 2015 ~
June 30, 2015) |
|
|
2014 |
|
|
2013 |
|
| Steel |
|
Crude Steel |
|
|
23,581 |
|
|
|
43,500 |
|
|
|
40,428 |
|
[Others]
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
(MW, Thousands of Tons) |
|
| Business Area |
|
Products |
|
2015 2Q
(January 1, 2015 ~
June 30, 2015) |
|
|
2014 |
|
|
2013 |
|
| Power Generation |
|
Electric Power |
|
Inchon |
|
|
3,412 |
|
|
|
2,992 |
|
|
|
3,052 |
|
| |
|
Gwangyang |
|
|
284 |
|
|
|
284 |
|
|
|
284 |
|
| |
|
Pohang |
|
|
290 |
|
|
|
290 |
|
|
|
145 |
|
| Lime |
|
Lime |
|
|
1,095 |
|
|
|
2,190 |
|
|
|
2,190 |
|
B. Production Result and Capacity Utilization Rate
[Steel]
(1) Production
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
(Thousands of Tons) |
|
| Products |
|
2015 2Q
(January 1, 2015 ~
June 30, 2015) |
|
|
2014 |
|
|
2013 |
|
| Crude Steel |
|
|
20,634 |
|
|
|
41,428 |
|
|
|
38,261 |
|
| Products |
|
Hot-Rolled Products |
|
|
4,744 |
|
|
|
8,124 |
|
|
|
8,109 |
|
| |
Plate |
|
|
3,158 |
|
|
|
6,433 |
|
|
|
5,649 |
|
| |
Wire Rod |
|
|
1,377 |
|
|
|
2,750 |
|
|
|
2,334 |
|
| |
Pickled-Oiled Steel Sheets |
|
|
1,390 |
|
|
|
2,785 |
|
|
|
2,640 |
|
| |
Cold-Rolled Products |
|
|
4,357 |
|
|
|
8,934 |
|
|
|
8,404 |
|
| |
Coated Steel |
|
|
3,076 |
|
|
|
6,164 |
|
|
|
5,762 |
|
| |
Electrical Steel |
|
|
600 |
|
|
|
1,253 |
|
|
|
1,125 |
|
| |
Stainless Steel |
|
|
1,165 |
|
|
|
2,453 |
|
|
|
2,372 |
|
| |
Others |
|
|
1,978 |
|
|
|
4,005 |
|
|
|
3,566 |
|
| |
Total |
|
|
21,845 |
|
|
|
42,901 |
|
|
|
39,961 |
|
The amount of products is the aggregate of the amount of products of POSCO and subsidiaries of POSCO, which may include interested party transactions.
21
(2) Capacity Utilization Rate for the first half of fiscal year of 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
(Thousands of Tons) |
|
| |
|
Company |
|
Capacity |
|
|
Production |
|
|
Utilization Rate |
|
| Crude Steel Production |
|
POSCO |
|
|
21,031 |
|
|
|
18,500 |
|
|
|
88.0 |
% |
| |
Zhangjiagang Pohang
Stainless Steel |
|
|
550 |
|
|
|
595 |
|
|
|
108.2 |
% |
| |
PT.KRAKATAU POSCO |
|
|
1,500 |
|
|
|
1,470 |
|
|
|
98.0 |
% |
| |
POSCO SS-VINA |
|
|
500 |
|
|
|
69 |
|
|
|
13.8 |
% |
| |
Total |
|
|
23,581 |
|
|
|
20,634 |
|
|
|
87.5 |
% |
Trade and engineering & construction businesses are not reflected on the table due to difficulties in measuring capacity, production and utilization rate of such businesses.
[Others]
(1) Production Result
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
(Gwh, Thousands of Tons) |
|
| |
|
Products |
|
2015 2Q
(January 1, 2015 ~
June 30, 2015) |
|
|
2014 |
|
|
2013 |
|
| Power Generation |
|
Electric Power |
|
|
8,006 |
|
|
|
15,442 |
|
|
|
15,983 |
|
| Lime |
|
Lime |
|
|
1,163 |
|
|
|
2,383 |
|
|
|
2,364 |
|
(2) Capacity Utilization Rate for the first half of fiscal year of 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
(hr, Thousands of Tons) |
|
| Business Area |
|
Products |
|
Capacity |
|
|
Production |
|
|
Utilization Rate |
|
| Power Generation |
|
|
Electric Power |
|
|
Inchon |
|
|
4,344 |
|
|
|
1,998 |
|
|
|
46.0 |
% |
| |
|
Gwangyang |
|
|
4,344 |
|
|
|
4,092 |
|
|
|
94.2 |
% |
| |
|
Pohang |
|
|
4,344 |
|
|
|
3,831 |
|
|
|
88.2 |
% |
| Lime |
|
|
Lime |
|
|
1,095 |
|
|
|
1,163 |
|
|
|
106.2 |
% |
22
C. Production Facilities
[Land]
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
(In millions of KRW) |
|
| Business Area |
|
Beginning Book
Balance |
|
|
Increased |
|
|
Decreased |
|
|
Depreciation |
|
|
Ending Book
Balance |
|
| Steel |
|
|
2,019,939 |
|
|
|
30,677 |
|
|
|
(23,918 |
) |
|
|
(1,472 |
) |
|
|
2,025,226 |
|
| Trade |
|
|
61,169 |
|
|
|
— |
|
|
|
(196 |
) |
|
|
— |
|
|
|
60,973 |
|
| Engineering & Construction |
|
|
191,881 |
|
|
|
409 |
|
|
|
(14,531 |
) |
|
|
— |
|
|
|
177,759 |
|
| Others |
|
|
528,299 |
|
|
|
14,561 |
|
|
|
(61,805 |
) |
|
|
(45 |
) |
|
|
481,010 |
|
[Building]
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
(In millions of KRW) |
|
| Business Area |
|
Beginning Book
Balance |
|
|
Increased |
|
|
Decreased |
|
|
Depreciation |
|
|
Ending Book
Balance |
|
| Steel |
|
|
4,573,200 |
|
|
|
38,775 |
|
|
|
(34,623 |
) |
|
|
(147,703 |
) |
|
|
4,429,649 |
|
| Trade |
|
|
104,702 |
|
|
|
840 |
|
|
|
(— |
) |
|
|
(1,267 |
) |
|
|
104,275 |
|
| Engineering & Construction |
|
|
147,278 |
|
|
|
11,253 |
|
|
|
(1,343 |
) |
|
|
(2,487 |
) |
|
|
154,701 |
|
| Others |
|
|
534,144 |
|
|
|
76,865 |
|
|
|
(18,270 |
) |
|
|
(13,409 |
) |
|
|
579,330 |
|
[Structures]
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
(In millions of KRW) |
|
| Business Area |
|
Beginning Book
Balance |
|
|
Increased |
|
|
Decreased |
|
|
Depreciation |
|
|
Ending Book
Balance |
|
| Steel |
|
|
2,701,348 |
|
|
|
77,903 |
|
|
|
(2,329 |
) |
|
|
(97,902 |
) |
|
|
2,679,020 |
|
| Trade |
|
|
5,593 |
|
|
|
121 |
|
|
|
(— |
) |
|
|
(130 |
) |
|
|
5,584 |
|
| Engineering & Construction |
|
|
68,293 |
|
|
|
1,452 |
|
|
|
(32 |
) |
|
|
(1,558 |
) |
|
|
68,155 |
|
| Others |
|
|
254,929 |
|
|
|
10,781 |
|
|
|
(2,589 |
) |
|
|
(7,360 |
) |
|
|
255,761 |
|
[Machinery and Equipments]
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
(In millions of KRW) |
|
| Business Area |
|
Beginning Book
Balance |
|
|
Increased |
|
|
Decreased |
|
|
Depreciation |
|
|
Ending Book
Balance |
|
| Steel |
|
|
18,231,086 |
|
|
|
1,278,132 |
|
|
|
(49,960 |
) |
|
|
(1,003,978 |
) |
|
|
18,455,280 |
|
| Trade |
|
|
333,469 |
|
|
|
1,217 |
|
|
|
(3,048 |
) |
|
|
(9,618 |
) |
|
|
322,020 |
|
| Engineering & Construction |
|
|
56,416 |
|
|
|
8,221 |
|
|
|
(383 |
) |
|
|
(6,795 |
) |
|
|
57,459 |
|
| Others |
|
|
2,578,914 |
|
|
|
256,110 |
|
|
|
(83,086 |
) |
|
|
(86,597 |
) |
|
|
2,665,341 |
|
23
[Vehicles]
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
(In millions of KRW) |
|
| Business Area |
|
Beginning Book
Balance |
|
|
Increased |
|
|
Decreased |
|
|
Depreciation |
|
|
Ending Book
Balance |
|
| Steel |
|
|
34,534 |
|
|
|
6,944 |
|
|
|
(779 |
) |
|
|
(6,008 |
) |
|
|
34,691 |
|
| Trade |
|
|
3,516 |
|
|
|
1,195 |
|
|
|
(63 |
) |
|
|
(642 |
) |
|
|
4,006 |
|
| Engineering & Construction |
|
|
13,003 |
|
|
|
550 |
|
|
|
(633 |
) |
|
|
(1,300 |
) |
|
|
11,620 |
|
| Others |
|
|
5,642 |
|
|
|
888 |
|
|
|
(128 |
) |
|
|
(1,151 |
) |
|
|
5,251 |
|
[Tools and Fixtures]
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
(In millions of KRW) |
|
| Business Area |
|
Beginning Book
Balance |
|
|
Increased |
|
|
Decreased |
|
|
Depreciation |
|
|
Ending Book
Balance |
|
| Steel |
|
|
43,508 |
|
|
|
19,847 |
|
|
|
(63 |
) |
|
|
(10,332 |
) |
|
|
52,960 |
|
| Trade |
|
|
1,684 |
|
|
|
359 |
|
|
|
(1 |
) |
|
|
(349 |
) |
|
|
1,693 |
|
| Engineering & Construction |
|
|
5,759 |
|
|
|
752 |
|
|
|
(35 |
) |
|
|
(1,224 |
) |
|
|
5,252 |
|
| Others |
|
|
13,118 |
|
|
|
4,661 |
|
|
|
(1,838 |
) |
|
|
(3,373 |
) |
|
|
12,568 |
|
[Equipment]
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
(In millions of KRW) |
|
| Business Area |
|
Beginning Book
Balance |
|
|
Increased |
|
|
Decreased |
|
|
Depreciation |
|
|
Ending Book
Balance |
|
| Steel |
|
|
89,535 |
|
|
|
7,908 |
|
|
|
(215 |
) |
|
|
(15,022 |
) |
|
|
82,206 |
|
| Trade |
|
|
10,081 |
|
|
|
6,020 |
|
|
|
(519 |
) |
|
|
(2,423 |
) |
|
|
13,159 |
|
| Engineering & Construction |
|
|
12,829 |
|
|
|
3,748 |
|
|
|
(384 |
) |
|
|
(3,326 |
) |
|
|
12,867 |
|
| Others |
|
|
31,337 |
|
|
|
10,087 |
|
|
|
(31 |
) |
|
|
(9,788 |
) |
|
|
31,605 |
|
[Financial Lease Assets]
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
(In millions of KRW) |
|
| Business Area |
|
Beginning Book
Balance |
|
|
Increased |
|
|
Decreased |
|
|
Depreciation |
|
|
Ending Book
Balance |
|
| Steel |
|
|
896 |
|
|
|
20,410 |
|
|
|
(48 |
) |
|
|
(3,630 |
) |
|
|
17,628 |
|
| Trade |
|
|
22,470 |
|
|
|
61 |
|
|
|
(678 |
) |
|
|
(482 |
) |
|
|
21,371 |
|
| Engineering & Construction |
|
|
2,195 |
|
|
|
1,987 |
|
|
|
(1,121 |
) |
|
|
(475 |
) |
|
|
2,586 |
|
| Others |
|
|
54,520 |
|
|
|
2,443 |
|
|
|
(1,588 |
) |
|
|
(670 |
) |
|
|
54,705 |
|
[Assets under Construction]
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
(In millions of KRW) |
|
| Business Area |
|
Beginning Book
Balance |
|
|
Increased |
|
|
Decreased |
|
|
Depreciation |
|
|
Ending Book
Balance |
|
| Steel |
|
|
1,208,529 |
|
|
|
868,974 |
|
|
|
(1,296,756 |
) |
|
|
(577 |
) |
|
|
780,170 |
|
| Trade |
|
|
119,856 |
|
|
|
70,723 |
|
|
|
(9,450 |
) |
|
|
— |
|
|
|
181,129 |
|
| Engineering & Construction |
|
|
72,691 |
|
|
|
11,999 |
|
|
|
(40,444 |
) |
|
|
(13,602 |
) |
|
|
30,644 |
|
| Others |
|
|
1,104,832 |
|
|
|
204,013 |
|
|
|
(260,582 |
) |
|
|
(1,471 |
) |
|
|
1,046,792 |
|
24
(2) Major Capital Expenditures
(a) Investments under Construction
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| [Steel] |
|
(In hundred millions of KRW) |
|
| Company |
|
Date |
|
Project |
|
Total
Investment |
|
|
Invested
Amount |
|
|
Amount
to Be
Invested |
|
| POSCO |
|
Expansion |
|
December, 2014 ~
June, 2017 |
|
G) Installation of no.7 CGL |
|
|
2,554 |
|
|
|
31 |
|
|
|
2,523 |
|
| |
Renovation / Replacement |
|
August, 2013 ~
April, 2016 |
|
P) Renovation of the Second Furnace, etc. |
|
|
4,387 |
|
|
|
3,752 |
|
|
|
635 |
|
| |
|
October, 2014 ~
June, 2016 |
|
G) Renovation of the Fifth Furnace, etc. |
|
|
5,206 |
|
|
|
854 |
|
|
|
4,352 |
|
| |
|
July, 2008~ December, 2016 |
|
P, G) Expansion of the Capacity of the Raw Material Treatment Facilities, etc |
|
|
27,666 |
|
|
|
18,709 |
|
|
|
8,957 |
|
| POSCO Maharashtra Steel Private Limited |
|
Expansion |
|
November, 2011 ~
January, 2015 |
|
Establishment of a Cold-Rolling Mill in India
(1.8 million ton) |
|
|
7,505 |
|
|
|
7,505 |
|
|
|
— |
|
| POSCO (Chongqing) Automotive Processing Center Co., Ltd |
|
Expansion |
|
April, 2015 ~
February, 2016 |
|
Establishment of #2 facility |
|
|
112 |
|
|
|
112 |
|
|
|
— |
|
P stands for Pohang Steel Works.
G stands for Gwangyang Steel Works.
[Engineering & Construction]
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
(In hundred millions of KRW) |
|
| Company |
|
Date |
|
Project |
|
Total
Investment |
|
|
Invested
Amount |
|
|
Amount
to be
Invested |
|
| Hunchun POSCO Hyundai International Logistics Complex Development Co., Ltd. |
|
Expansion |
|
July, 2012 ~
September, 2016 |
|
Land lease for construction of logistics complex |
|
|
197 |
|
|
|
187 |
|
|
|
10 |
|
| |
Expansion |
|
September, 2012 ~
August 1, 2015 |
|
#1 Construction of logistics complex |
|
|
446 |
|
|
|
294 |
|
|
|
152 |
|
| |
Expansion |
|
September, 2014 ~
December, 2015 |
|
#2-1 Construction of logistics complex |
|
|
254 |
|
|
|
51 |
|
|
|
203 |
|
| |
Expansion |
|
March, 2015 ~
December, 2016 |
|
#2-2 Construction of logistics complex |
|
|
244 |
|
|
|
80 |
|
|
|
164 |
|
[Trade]
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
(In hundred millions of KRW) |
|
| Company |
|
Date |
|
Project |
|
Total
Investment |
|
|
Invested
Amount |
|
|
Amount
to be
Invested |
|
| PT. Bio Intl Agrindo |
|
Expansion |
|
December, 2014 ~
December, 2015 |
|
CPOMILL |
|
|
225 |
|
|
|
3 |
|
|
|
222 |
|
25
[Others]
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
(In hundred millions of KRW) |
|
| Company |
|
|
|
Date |
|
Project |
|
Total
Investment |
|
|
Invested
Amount |
|
|
Amount to
be
Invested |
|
| POSCO ICT |
|
Expansion |
|
January, 2015~
December, 2015 |
|
Expansion of
Smart Management Server
For Smart Management
Operation Efficiency |
|
|
338 |
|
|
|
84 |
|
|
|
254 |
|
| |
Expansion |
|
January, 2015 ~ December, 2015 |
|
Engineering |
|
|
290 |
|
|
|
20 |
|
|
|
270 |
|
| POSCO Energy |
|
Expansion |
|
November 2012 ~
January, 2015 |
|
Incheon) Establishment of a
LNG Combined Cycle
Power Plant #7, #8, and #9 |
|
|
10,630 |
|
|
|
10,630 |
|
|
|
— |
|
| |
|
March 2013 ~
June, 2015 |
|
Construction of a Cell
Manufacturing Plant
Laboratory |
|
|
1,029 |
|
|
|
977 |
|
|
|
52 |
|
| POSCO Green Gas Technology |
|
Expansion |
|
April, 2014 ~ November, 2015 |
|
Establishment of SNG Plant |
|
|
10,500 |
|
|
|
8,211 |
|
|
|
2,289 |
|
|
|
The investments over KRW 10 billion are listed on the table while equity investment is not reflected thereon. |
(b) Future Investment Plans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
(In hundred millions of KRW) |
|
| Business |
|
Company |
|
Project |
|
Planned Investments |
|
| |
|
|
2015 |
|
|
2016 |
|
|
2017 |
|
| Steel |
|
POSCO |
|
Expansion, Renovation and Replacement of Existing Facilities |
|
Renovation of Existing Facilities |
|
|
7,811 |
|
|
|
11,056 |
|
|
|
13,719 |
|
| |
|
|
Capacity Increase |
|
|
329 |
|
|
|
2,043 |
|
|
|
962 |
|
| |
SPFC |
|
Expansion, Renovation and Replacement of Existing Facilities |
|
Establishment of Facilities |
|
|
— |
|
|
|
120 |
|
|
|
— |
|
| |
|
|
Acquisition of Land and Buildings |
|
|
155 |
|
|
|
— |
|
|
|
— |
|
| |
POSCO Thainox Public Company Limited |
|
Expansion, Renovation and Replacement of Existing Facilities |
|
Manufacture Process |
|
|
104 |
|
|
|
37 |
|
|
|
26 |
|
| |
|
|
|
|
19 |
|
|
|
167 |
|
|
|
— |
|
| |
POSCO(Chongqing) Automotive Processing Center Co., Ltd |
|
Expansion, Renovation and Replacement of Existing Facilities |
|
Establishment of Facilities |
|
|
133 |
|
|
|
3 |
|
|
|
— |
|
| Trade |
|
PT. Bio Intl Agrindo |
|
Expansion, Renovation and Replacement of Existing Facilities |
|
CPO MILL |
|
|
154 |
|
|
|
67 |
|
|
|
— |
|
| |
DAEWOO TEXTILE FERGANA LLC |
|
Expansion, Renovation and Replacement of Existing Facilities |
|
Improvement of Productivity and Product Quality |
|
|
35 |
|
|
|
61 |
|
|
|
12 |
|
| Others |
|
POSCO ICT |
|
Expansion, Renovation and Replacement of Existing Facilities |
|
Investment |
|
|
338 |
|
|
|
86 |
|
|
|
— |
|
| |
|
|
Development of Facilities |
|
|
95 |
|
|
|
146 |
|
|
|
— |
|
| |
|
|
Discover new business opportunities- |
|
|
99 |
|
|
|
93 |
|
|
|
— |
|
| |
POSMATE |
|
Expansion, Renovation and Replacement of Existing Facilities |
|
Renovation of Existing Facilities |
|
|
88 |
|
|
|
71 |
|
|
|
80 |
|
|
|
The investments over KRW 10 billion are listed on the table while equity investment is not reflected thereon. |
26
6. Product Sales
[Steel]
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
(In hundred millions of KRW) |
|
| Items |
|
|
|
2015 2Q
(January 1, 2015 ~
June 31, 2015) |
|
|
2014 |
|
|
2013 |
|
| Domestic |
|
Hot-Rolled Products |
|
|
12,472 |
|
|
|
42,090 |
|
|
|
37,828 |
|
| |
Cold-Rolled Products |
|
|
23,994 |
|
|
|
41,939 |
|
|
|
60,509 |
|
| |
Stainless Steel |
|
|
12,192 |
|
|
|
27,024 |
|
|
|
29,042 |
|
| |
Others |
|
|
43,351 |
|
|
|
102,892 |
|
|
|
103,308 |
|
| Export |
|
Hot-Rolled Products |
|
|
17,252 |
|
|
|
37,133 |
|
|
|
21,971 |
|
| |
Cold-Rolled Products |
|
|
56,468 |
|
|
|
104,078 |
|
|
|
110,668 |
|
| |
Stainless Steel |
|
|
36,937 |
|
|
|
79,856 |
|
|
|
71,356 |
|
| |
Others |
|
|
30,022 |
|
|
|
60,957 |
|
|
|
45,554 |
|
| Total |
|
Gross Sum |
|
|
232,688 |
|
|
|
495,969 |
|
|
|
480,236 |
|
| |
Internal Transaction |
|
|
(86,201 |
) |
|
|
(177,552 |
) |
|
|
(162,290 |
) |
| |
Total |
|
|
146,487 |
|
|
|
318,417 |
|
|
|
317,946 |
|
[Trading]
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
(In hundred millions of KRW) |
|
| Items |
|
|
|
2015 2Q
(January 1, 2015 ~
June 30, 2015) |
|
|
2014 |
|
|
2013 |
|
| Domestic |
|
Merchandise |
|
|
3,984 |
|
|
|
9,349 |
|
|
|
8,490 |
|
| |
Product |
|
|
— |
|
|
|
— |
|
|
|
— |
|
| |
Others |
|
|
119 |
|
|
|
111 |
|
|
|
116 |
|
| Export |
|
Merchandise |
|
|
40,902 |
|
|
|
88,947 |
|
|
|
86,296 |
|
| |
Product |
|
|
29 |
|
|
|
223 |
|
|
|
127 |
|
| |
Others |
|
|
310 |
|
|
|
596 |
|
|
|
145 |
|
| Trades among Korea, China & Japan |
|
|
95,474 |
|
|
|
213,383 |
|
|
|
164,020 |
|
| Gross Sum |
|
|
140,818 |
|
|
|
312,609 |
|
|
|
259,193 |
|
| Internal Transaction |
|
|
(43,063 |
) |
|
|
(100,951 |
) |
|
|
(76,114 |
) |
| Total |
|
|
97,755 |
|
|
|
211,658 |
|
|
|
183,079 |
|
27
[Engineering & Construction]
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
(In hundred millions of KRW) |
|
| Items |
|
|
|
|
|
2015 2Q
(January 1, 2015 ~
June 30, 2015) |
|
|
2014 |
|
|
2013 |
|
| Construction Contract Revenue |
|
Domestic |
|
Architecture |
|
|
11,008 |
|
|
|
19,514 |
|
|
|
16,185 |
|
| |
|
Plant |
|
|
7,492 |
|
|
|
24,785 |
|
|
|
41,670 |
|
| |
|
Civil Engineering |
|
|
3,637 |
|
|
|
7,378 |
|
|
|
6,969 |
|
| |
|
Others |
|
|
— |
|
|
|
— |
|
|
|
2 |
|
| |
Overseas |
|
|
21,970 |
|
|
|
42,980 |
|
|
|
32,039 |
|
| Own Construction |
|
|
|
|
|
|
3,781 |
|
|
|
6,976 |
|
|
|
7,060 |
|
| Other Subsidiary company sales |
|
|
|
|
|
|
2,070 |
|
|
|
1,404 |
|
|
|
3,895 |
|
| Gross Sum |
|
|
|
|
|
|
49,958 |
|
|
|
103,037 |
|
|
|
107,820 |
|
| Internal Transaction |
|
|
|
|
|
|
(7,457 |
) |
|
|
(21,845 |
) |
|
|
(38,852 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
|
|
|
|
|
42,501 |
|
|
|
81,192 |
|
|
|
68,968 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[Others]
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
(In hundred millions of KRW) |
|
| Items |
|
2015 1
(January 1, 2015 ~
March 31, 2015) |
|
|
2014 |
|
|
2013 |
|
| Electric Power |
|
|
16,161 |
|
|
|
39,717 |
|
|
|
48,653 |
|
7. Derivatives - Currency Forward Contracts
[None]
28
8. Significant Contracts
|
|
|
|
|
|
|
|
|
| Company |
|
Contract |
|
Date |
|
|
|
Remarks |
| POSCO |
|
Cooperation
Agreement with Roy Hill
Co., Ltd. |
|
January, 2010 |
|
The purpose of the Cooperation Agreement was to obtain 15% stake in Roy Hill Holdings Pty. Ltd. which was pursuing the
development of Roy Hill iron ore mine in Western Australia. |
| |
|
January, 2012 |
|
POSCO decided to acquire certain additional equity interest in Roy Hill Holdings Pty. Ltd. (2nd phase), which amounts to
approximately KRW 1,779 billion. |
| |
|
March, 2012 |
|
POSCO entered into a contract in March 2012 to invest an additional A$ 1,495 million to increase its interest to 15% of the total
outstanding and common stocks of Roy Hill Holdings Pty. Ltd. |
| |
|
April, 2012 |
|
POSCO entered into a contract to dispose its 2.5% interest in the total outstanding common stocks of Roy Hill Holdings Pty. Ltd.
to China Steel Corporation for A$ 305 million. |
| |
Sales of shares in POSCO Specialty Steel Co., Ltd. |
|
March, 2015 |
|
POSCO entered into a contract to sell its 52.3% interest in the total outstanding common stocks of POSCO Specialty Steel Co.,
Ltd. to SeAH Besteel Corp., Shinyoung Securities Co., Ltd., and Shinhan Investment Corp, which amounts to approximately KRW 418.5 billion. |
| |
Sales of shares in POSCO ENGINEERING & CONSTRUCTION |
|
June, 2015 |
|
• |
|
POSCO entered into a contract to sell its 38% interest in the total outstanding common stocks of POSCO Engineering & Construction Co.,
Ltd. to Public Investment Fund of the Ministry of Finance in Saudi Arabia(PIF) for the (i)sale of POSCO’s common stock (10,802,850 shares) in POSCO E&C to PIF, and (ii) POSCO E&C’s issuance and sale of new shares of common stock
(5,083,694 shares) to PIF |
|
|
Gas Sales and Purchase Agreement (“GSPA”) Regarding Shwe, Shwe Phyu and Mya gas field
in Myanmar |
|
December, 2008 |
|
1) Contract Parties |
| DAEWOO INTERNATIONAL CORPORATION |
|
|
|
• |
|
Seller: Daewoo International (51%), ONGC Videsh Limited (17%), Myanmar Oil and Gas Enterprise (15%), GAIL (India) Limited (8.5%) and Korea
Gas Corporation (8.5%) |
| |
|
|
• |
|
Buyer: China National United Oil Company (“CNUOC”)
|
| |
|
|
2) Signed Date: December 24, 2008 |
| |
|
|
3) Summary of the GSPA |
| |
|
|
• |
|
Gas produced from Shwe and Shwe Phyu gas field in Block A-1 and Mya field in Block A-3 in Myanmar will be transported via the offshore and
onshore gas pipelines to CNUOC in China. |
| |
|
|
• |
|
Gas production period is expected to be approximately 30 years.
|
| |
|
|
• |
|
Gas sales price will be fluctuated and recalculated quarterly in accordance with the contractual base price, averaged oil price and consumer
price. |
| |
|
|
4) Remarks |
| |
|
|
• |
|
CNUOC is one of subsidiaries of China National Petroleum Corporation (“CNPC”) and CNPC guarantees CNUOC’s contractual
obligations under gas sales and purchase agreement. |
| |
|
|
• |
|
Related Public Announcements: December 2, 2008; December 3, 2008; July 23, 2008; June 4,
2008; December 5, 2007; June 5, 2007; December 7, 2006; June 8, 2006; December 8, 2005; June 9, 2005; December 10, 2004; and June 11, 2004
|
29
|
|
|
|
|
|
|
|
|
|
|
Investment for Construction of Facilities (Offshore Gas Production Platform and
Onshore Gas Pipelines, etc) |
|
August, 2009 |
|
1) Total Investment: KRW 2,095,727,800,000 |
|
|
|
|
2) Purpose of Investment: construction of new facilities for gas production, processing and transportation
|
|
|
|
|
3) Total Period of Investment: October 1, 2009 ~ September 30, 2014
|
|
|
|
|
4) Remarks |
|
|
|
|
• |
|
Location: the north-western offshore and onshore in Myanmar
|
|
|
|
|
• |
|
Main facilities: offshore platform (gas production capacity: 64,000ft3/day), offshore pipeline (diameter: 32inch, length: 110km), onshore
pipeline (diameter: 40 inch, length: 825km) |
|
|
|
|
• |
|
Date of Gas Supply: May 1, 2013; daily gas production rate during the plateau period: 50,000ft3/day
|
|
|
|
|
• |
|
The aforementioned investment is for the phase 1 development; the phase 2 ~ 4 developments will commence consequently approximately
10 years after the completion of the phase 1 development. |
|
|
|
|
|
|
• |
|
Main business areas: Upstream offshore business (offshore platform, subsea system), Middle stream offshore business (gas pipeline, onshore
gas terminal) |
|
|
|
|
|
|
|
|
• Participants: Daewoo International (51%), ONGC Videsh Limited (17%),
Myanmar Oil and Gas Enterprise (15%), GAIL (India) Limited (8.5%) and Korean Gas Corporation (8.5%) |
|
|
Sale of Daewoo
Cement (Shandong)
Company Limited |
|
July, 2011 |
|
1) Purpose of the Sale: sale of non-core business, divestiture and collection of long term debt
|
|
|
|
|
2) Other information |
|
|
|
|
• |
|
The sale price of all of the shares of Daewoo Cement (Shandong) Company Limited has not been determined; the separate disclosure regarding
the sale price of Daewoo Cement (Shandong) Company Limited will be made when such information is available. |
|
|
|
|
• |
|
The sale price of all of the shares of Daewoo Cement (Shandong) Company Limited is KRW 37,422,000,000 as of December 27, 2000. At the
end of March, 2012, the book value of all of the shares of Daewoo Cement (Shandong) Company Limited was KRW 41,600 million under the K-IFRS. |
|
|
|
|
• |
|
The official sale date of all of the shares of Daewoo Cement (Shandong) Company Limited has not been determined; actual sale date of all of
the shares of Daewoo Cement (Shandong) Company Limited shall be set when the condition precedents of the share purchase agreement between Daewoo Cement (Shandong) Company Limited and a purchaser are satisfied.
|
|
|
|
|
• |
|
Sale agreement can be nullified when condition precedents of the contract (i.e. government approvals, etc) are not satisfied.
|
|
|
Sale of
Kyobo Life Insurance
Co., Ltd. stake |
|
August, 2012 |
|
1) Purpose of the sale was to strengthen financial structure and secure the core investment plan
|
|
|
|
|
2) Other information |
|
|
|
|
• |
|
The board of Directors resolved to sell the Kyobo Life Insurance Co., Ltd.’s stake, which amounts to KRW 1,205,400 million on
August 8, 2012. |
30
|
|
|
|
|
|
|
|
|
|
|
Acquisition of NEATT
(North East Asia Trade Tower) in Songdo, Incheon |
|
July 2013 |
|
1) Building |
|
|
|
|
• |
|
Name: NEATT (North East Asia Trade Tower) |
|
|
|
|
• |
|
Location: Songdo, Incheon, Korea |
|
|
|
|
2) Purchase Price: KRW 207,600,000,000 (2.8% of the total assets on consolidated basis as of the end of year 2012)
|
|
|
|
|
3) Closing Date: July 31, 2014 (tentative) |
|
|
|
|
4) Miscellaneous |
|
|
|
|
• |
|
Building is expected to be purchased by Daewoo International (60%) and POSCO E&C (40%)
|
| POSCO ENERGY |
|
Agreement of stock acquisition |
|
June, 2014 |
|
1) Contract Parties: TONGYANG Cement & Energy Corp., TONGYANG Leisure, and TONGYANG Inc.
2) Signed Date: June 25, 2014
3) Amount: KRW 431,093 million
4) Purpose: Agreement of stock acquisition in order to acquire 100% stake of TONGYANG
Power |
9. Research and Development
A. Research and Development (“R&D”) Organization
|
|
|
|
|
|
|
| Business Area |
|
Company |
|
Organization |
| Steel |
|
POSCO |
|
POSCO’s Relevant Departments |
|
Technical Research Laboratory |
| |
|
|
Engineering Solution Center |
| |
|
|
Pohang Research Laboratory |
| |
|
|
Gwangyang Research Laboratory |
| |
|
|
Steel Solution Center |
| |
|
|
Steel Planning Department |
| |
|
|
New Business Planning Department |
| |
|
|
Environment, Energy, Social responsibility Department |
| |
POSCO COATED & COLOR STEEL |
|
Product Research Group |
| |
POSCO AST CO., LTD. |
|
Product Research Team |
| |
Zhangjiagang Pohang Stainless Steel Co., Ltd. |
|
Product Development Group |
| |
POSCO Thainox Public Company Ltd. |
|
Product Development and Research |
| Engineering & Construction |
|
POSCO Engineering & Construction |
|
R&D Center |
| |
POSCO Engineering Company |
|
R&D group |
| |
POSCO A&C |
|
R&D Center |
|
|
POSCO PLANTEC |
|
R&D Center |
| Others |
|
POSCO ENERGY |
|
Technology Strategy Department, Fuel Cell Department |
| |
POSCO ICT |
|
R&D Center |
| |
POSCO CHEMTECH |
|
R&D Center, Cathode Material Research Department |
| |
POSCO M-TECH CO., LTD. |
|
R&D Center |
| |
POS-HiMETAL CO., Ltd. |
|
Product Research Department |
| |
PNR CO., Ltd. |
|
Quality Innovation Department |
| |
PONUTech Co., Ltd. |
|
Technology Center |
B. R&D Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
(In millions of KRW) |
|
| Category |
|
Business Area |
|
| |
Steel |
|
|
Trade |
|
|
Engineering &
Construction |
|
|
Others |
|
|
Total |
|
| Selling and Administrative Cost |
|
|
34,304 |
|
|
|
1,365 |
|
|
|
2,858 |
|
|
|
17,103 |
|
|
|
55,630 |
|
| Manufacturing Cost |
|
|
156,925 |
|
|
|
— |
|
|
|
2,019 |
|
|
|
2,478 |
|
|
|
161,422 |
|
| R&D Cost (Intangible Assets) |
|
|
6,124 |
|
|
|
— |
|
|
|
(2,145 |
) |
|
|
1,893 |
|
|
|
5,872 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
|
197,353 |
|
|
|
1,365 |
|
|
|
2,732 |
|
|
|
21,474 |
|
|
|
222,924 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| R&D/Sales Ratio |
|
|
1.35 |
% |
|
|
0.01 |
% |
|
|
0.06 |
% |
|
|
1.33 |
% |
|
|
0.74 |
% |
31
III. Financial Statements
| 1. |
Non-consolidated Financial Statements |
A. Summary of Fiscal Years 2013, 2014 and the First Half of
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
(In millions of KRW) |
|
| Account |
|
2015 2Q
(January 1, 2015 ~
June 30, 2015) |
|
|
2014 |
|
|
2013 |
|
| [Current Assets] |
|
|
12,226,646 |
|
|
|
11,623,130 |
|
|
|
11,953,479 |
|
| Cash & Cash equivalents |
|
|
1,524,178 |
|
|
|
1,742,767 |
|
|
|
1,394,315 |
|
| Trade Accounts & Notes Receivable(net) |
|
|
3,199,479 |
|
|
|
3,157,266 |
|
|
|
3,393,444 |
|
| Other Current Financial Instruments |
|
|
2,420,714 |
|
|
|
1,256,659 |
|
|
|
2,599,977 |
|
| Inventories |
|
|
3,947,787 |
|
|
|
4,383,568 |
|
|
|
4,538,657 |
|
| Other Current Assets |
|
|
1,134,488 |
|
|
|
1,082,870 |
|
|
|
27,086 |
|
| [Non-current Assets] |
|
|
40,257,494 |
|
|
|
40,974,193 |
|
|
|
42,288,799 |
|
| Other Non-current Financial Instruments |
|
|
1,843,053 |
|
|
|
1,820,950 |
|
|
|
3,408,332 |
|
| Investment in Subsidiaries and Associates |
|
|
15,831,165 |
|
|
|
16,178,891 |
|
|
|
15,092,836 |
|
| Tangible Assets |
|
|
21,958,082 |
|
|
|
22,323,215 |
|
|
|
23,240,603 |
|
| Good Will & Other Intangible Assets |
|
|
381,489 |
|
|
|
403,907 |
|
|
|
438,783 |
|
| Other Non-current Assets |
|
|
243,705 |
|
|
|
247,230 |
|
|
|
108,245 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Assets |
|
|
52,484,140 |
|
|
|
52,597,323 |
|
|
|
54,242,278 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| [Current Liabilities] |
|
|
3,920,802 |
|
|
|
3,516,052 |
|
|
|
3,704,520 |
|
| [Non-current Liabilities] |
|
|
5,871,165 |
|
|
|
6,605,840 |
|
|
|
8,226,296 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Liabilities |
|
|
9,791,967 |
|
|
|
10,121,892 |
|
|
|
11,930,816 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| [Capital Stock] |
|
|
482,403 |
|
|
|
482,403 |
|
|
|
482,403 |
|
| [Capital Surplus] |
|
|
1,247,629 |
|
|
|
1,247,616 |
|
|
|
1,233,040 |
|
| [Hybrid bond] |
|
|
996,919 |
|
|
|
996,919 |
|
|
|
996,919 |
|
| [Retained Earnings] |
|
|
41,377,166 |
|
|
|
41,188,908 |
|
|
|
40,774,284 |
|
| [Other Equity] |
|
|
(1,411,944 |
) |
|
|
(1,440,415 |
) |
|
|
(1,175,184 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Shareholders’ Equity |
|
|
42,692,173 |
|
|
|
42,475,431 |
|
|
|
42,311,462 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Sales |
|
|
13,363,126 |
|
|
|
29,218,854 |
|
|
|
30,543,545 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating Income |
|
|
1,229,215 |
|
|
|
2,350,035 |
|
|
|
2,215,133 |
|
| Net Income |
|
|
710,210 |
|
|
|
1,138,958 |
|
|
|
1,582,596 |
|
| Earnings per share(KRW) |
|
|
8,674 |
|
|
|
13,858 |
|
|
|
20,052 |
|
32
B. The Standards Used for Reporting the Financial Statements
The company prepared its financial statements and its Certified Public Accountant’s audit opinions on financial statements in accordance with the Korean -
International Financial Reporting Standards (the “K-IFRS”).
C. Non-consolidated Financial Statements
Refer to the attached balance sheet for the first half of fiscal year of 2015.
Refer to the attached income statement for the first half of fiscal year of
2015.
| (3) |
The Note on the Financial Statement |
Refer to the auditor’s note about the financial
statement.
33
2. Consolidated Financial Statements
A. Summary of Fiscal Years 2013, 2014 and the First Half of 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
(In millions of KRW) |
|
| Account |
|
2015 2Q
(January 1, 2015 ~
June 30, 2015) |
|
|
2014 |
|
|
2013 |
|
| [Current Assets] |
|
|
31,403,402 |
|
|
|
32,627,382 |
|
|
|
31,666,211 |
|
| Cash & Cash equivalents |
|
|
4,208,728 |
|
|
|
3,811,202 |
|
|
|
4,280,562 |
|
| Other Current Financial Instruments |
|
|
5,067,660 |
|
|
|
3,419,136 |
|
|
|
4,861,088 |
|
| Accounts Receivable |
|
|
11,114,757 |
|
|
|
11,786,055 |
|
|
|
11,492,601 |
|
| Inventories |
|
|
9,343,886 |
|
|
|
10,471,330 |
|
|
|
9,798,381 |
|
| Other Current Assets |
|
|
1,668,371 |
|
|
|
3,139,659 |
|
|
|
1,305,579 |
|
| [Non-current Assets] |
|
|
52,233,294 |
|
|
|
52,624,791 |
|
|
|
52,789,196 |
|
| Other Non-current Financial Instruments |
|
|
3,401,016 |
|
|
|
3,600,060 |
|
|
|
5,263,185 |
|
| Investment Securities |
|
|
4,130,897 |
|
|
|
4,060,507 |
|
|
|
3,808,693 |
|
| Tangible Assets |
|
|
34,924,446 |
|
|
|
35,241,195 |
|
|
|
35,760,119 |
|
| Good Will & Other Intangible Assets |
|
|
6,803,335 |
|
|
|
6,884,989 |
|
|
|
5,929,840 |
|
| Other Non-current Assets |
|
|
2,973,600 |
|
|
|
2,838,040 |
|
|
|
2,027,359 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Assets |
|
|
83,636,696 |
|
|
|
85,252,173 |
|
|
|
84,455,407 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| [Current Liabilities] |
|
|
22,082,468 |
|
|
|
21,877,009 |
|
|
|
20,241,159 |
|
| [Non-current Liabilities] |
|
|
16,801,455 |
|
|
|
18,083,799 |
|
|
|
18,392,218 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Liabilities |
|
|
38,883,923 |
|
|
|
39,960,808 |
|
|
|
38,633,377 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| [Controlling Interest] |
|
|
41,512,308 |
|
|
|
41,587,368 |
|
|
|
42,046,037 |
|
| Capital Stock |
|
|
482,403 |
|
|
|
482,403 |
|
|
|
482,403 |
|
| Capital Surplus |
|
|
1,801,673 |
|
|
|
1,083,718 |
|
|
|
1,078,266 |
|
| Hybrid bond |
|
|
996,919 |
|
|
|
996,919 |
|
|
|
996,919 |
|
| Retained Earnings |
|
|
40,977,337 |
|
|
|
40,967,558 |
|
|
|
41,090,649 |
|
| Other Controlling Interest |
|
|
(2,026,024 |
) |
|
|
(1,943,230 |
) |
|
|
(1,602,200 |
) |
| [Minority Interest] |
|
|
3,240,465 |
|
|
|
3,703,997 |
|
|
|
3,775,993 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Shareholders’ Equity |
|
|
44,752,773 |
|
|
|
45,291,365 |
|
|
|
45,822,030 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Sales |
|
|
30,290,403 |
|
|
|
65,098,445 |
|
|
|
61,864,650 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating Income |
|
|
1,417,585 |
|
|
|
3,213,530 |
|
|
|
2,996,134 |
|
| Consolidated Net Profit |
|
|
452,596 |
|
|
|
556,659 |
|
|
|
1,355,180 |
|
| [Controlling Interest] |
|
|
536,764 |
|
|
|
626,099 |
|
|
|
1,376,396 |
|
| [Minority Interest] |
|
|
(84,168 |
) |
|
|
(69,440 |
) |
|
|
(21,216 |
) |
| Consolidated Total Comprehensive Income |
|
|
339,560 |
|
|
|
101,077 |
|
|
|
1,369,450 |
|
| [Controlling Interest] |
|
|
429,184 |
|
|
|
174,918 |
|
|
|
1,444,262 |
|
| [Minority Interest] |
|
|
(89,624 |
) |
|
|
(73,841 |
) |
|
|
(74,812 |
) |
| Earning Per Share |
|
|
6,506 |
|
|
|
7,432 |
|
|
|
17,409 |
|
| Number of Consolidated Companies |
|
|
228 |
|
|
|
229 |
|
|
|
212 |
|
34
B. The Standards Used for Reporting the Financial Statements
The Company prepared its financial statements in accordance with the Korean-International Financial Reporting Standards (the “K-IFRS”) and applied it
to each Company’s final financial statements.
C. Consolidated Financial Statements
| |
(1) |
Consolidated Balance Sheet |
Refer to the attached consolidated balance sheet for the first half
of fiscal year of 2015.
| |
(2) |
Consolidated Income Statements |
Refer to the attached consolidated financial report for the
first half of fiscal year of 2015.
35
IV. CORPORATE GOVERNANCE AND COMPANY AFFILIATES
1. Overview of Corporate Governance
A. Board of
Directors
Our board of directors has the ultimate responsibility for management of
our business affairs. Under our Articles of Incorporation, the board shall consist of five directors who also act as the executive officers (the “Inside Directors”) and seven directors who are to be outside directors (the “Outside
Directors”). Our shareholders elect both Inside Directors and Outside Directors at a general meeting of shareholders. Candidates for the Inside Directors are recommended to shareholders by the board of directors after the board reviews such
candidates’ qualifications; candidates for the Outside Directors are recommended to the shareholders by a separate board committee consisted of three Outside Directors and one Inside Director (the “Director Candidate Recommendation
Committee”) after the committee reviews such candidates’ qualifications. Any shareholder holding an aggregate of 0.5% or more of our outstanding shares with voting rights for at least six months may recommend candidates for Outside
Directors to the Director Candidate Recommendation Committee.
Our board of directors maintains the following six special committees:
| |
(a) |
Director Candidate Recommendation Committee; |
| |
(b) |
Evaluation and Compensation Committee; |
| |
(c) |
Finance and Operation Committee; |
| |
(d) |
Executive Management Committee; |
| |
(f) |
Related Party Transaction Committee. |
36
Composition of the Special Committees under the Board of Directors and their Functions (as of March 31, 2015)
|
|
|
|
|
|
|
|
|
| Category |
|
Composition |
|
Directors |
|
|
|
Major Functions |
|
|
|
|
|
| Director Candidate Recommendation Committee |
|
3 Outside Directors;
1 Inside Director |
|
Ahn, Dong-Hyun
(Chairman) Kim, Il-Sup
Kim, Joo-Hyun Kim, Jin-Il |
|
• |
|
Reviews the qualifications of potential candidates for Directors |
| |
|
|
• |
|
Proposes nominees for the Outside Directors |
| |
|
|
• |
|
Advances the nomination process for the Inside Directors and members of the special committees |
|
|
|
|
|
| Evaluation and
Compensation Committee |
|
4 Outside Directors |
|
Sunwoo, Young
(Chairman) Shin, Chae Chol
Lee, Myung-Woo Bahk,
Byong-Won |
|
• |
|
Executes management succession and development plans |
| |
|
|
• |
|
Establishes evaluation procedures of directors |
| |
|
|
• |
|
Reviews the retirement procedures and distribution of the allowance for directors |
|
|
|
|
|
| Finance and Operation Committee |
|
3 Outside Directors; 2 Inside Directors |
|
Lee, Myung-Woo (Chairman)
Ahn, Dong-Hyun Bahk, Byong-Won
Yoon, Dong-Jun Lee,
Young-Hoon |
|
• |
|
Advances deliberation of new investments in other companies |
| |
|
|
• |
|
Revises the internal regulations regarding the operation of the Board of Directors |
| |
|
|
• |
|
Deliberates financial matters and donations from the range of KRW 100 million and KRW 1 billion |
|
|
|
|
|
| Audit Committee |
|
3 Outside Directors |
|
Kim, Il-Sup (Chairman)
Sunwoo, Young Kim,
Joo-Hyun |
|
• |
|
Audits the accounting system and business operations |
| |
|
|
• |
|
Examines the agenda for financial statements and other reports to be submitted by the Board of Directors at each general meeting of shareholders |
|
|
|
|
|
| Related Party Transactions Committee |
|
3 Outside Directors |
|
Kim, Il-Sup (Chairman)
Sunwoo, Young Kim,
Joo-Hyun |
|
• |
|
Reviews matters related to the internal transactions under the MRFTA. |
| |
|
|
• |
|
Holds preliminary review on internal transactions exceeding the amount of KRW 10 billion. |
| |
|
|
• |
|
Holds a deliberation hearing on internal transactions exceeding KRW 3 billion but less than 10 billion. |
|
|
|
|
|
| Executive
Management Committee |
|
5 Inside Directors |
|
Kwon, Oh-Joon (Chairman)
Kim, Jin-Il Yoon, Dong-Jun
Lee, Young-Hoon Oh,
In-Hwan |
|
• |
|
Oversees decisions with respect to our operational and management matters |
| |
|
|
• |
|
Reviews management’s proposal for new strategic initiatives |
| |
|
|
• |
|
Reviews deliberation over critical internal matters related to the organization structure and development of personnel |
| |
|
|
• |
|
Reviews and revises work and welfare policies |
| |
(2) |
Establishment and Composition of the Director Candidate Recommendation Committee |
| |
(a) |
Established the Director Candidate Recommendation Committee (March 17, 2000) |
| |
(b) |
Changed the name from the Director Candidate Recommendation Committee to the Director Candidate Recommendation and Evaluation Committee (March 15, 2002) |
| |
(c) |
Changed the name from the Director Candidate Recommendation and Evaluation Committee to the Director Candidate Recommendation Committee (March 12, 2004) |
37
| |
(3) |
List of Outside Directors (as of March 13, 2015) |
|
|
|
|
|
|
|
|
|
| Name |
|
Experience |
|
Relation with
Majority
Shareholder |
|
Remarks |
| Shin, Chae-Chol |
|
• |
|
President and Representative Director, LG CNS |
|
None |
|
Chairman Board of
Directors |
| |
• |
|
President and Representative Director, IBM Korea |
|
|
| Lee, Myoung-Woo |
|
• |
|
(Present) President and Representative Director, Dongwon Industry |
|
None |
|
|
| |
• |
|
Vice Chairman, Iriver |
|
|
|
| |
• |
|
CEO, SONY Korea |
|
|
|
| Kim, Il-Sup |
|
• |
|
(Present) President, Seoul School of Integrated Science and Technology |
|
None |
|
|
| |
• |
|
Chairman, Deloitte Anjin Accounting Corporation |
|
|
|
| |
• |
|
Vice-Chairman, Samil PWC Accounting Corporation |
|
|
|
| Sunwoo, Young |
|
• |
|
(Present) Managing Partner, Rhi & Partners |
|
None |
|
|
| |
• |
|
Chief Public Prosecutor, Seoul Eastern District Prosecutor’s Office |
|
|
|
| |
• |
|
Chief Public Prosecutor, Cheongju District Prosecutor’s Office |
|
|
|
| Ahn, Dong-Hyun |
|
•
• |
|
(Present) Professor, School of Economics, Seoul National University
Head of Quant Strategy, Royal Bank of Scotland |
|
None |
|
Member of the Risk
Management committee of
the National Pension
Services (Non-Executive
Director) |
| Bahk, Byong-Won |
|
• |
|
(Present) President, National Happiness Fund |
|
None |
|
|
| |
• |
|
Chairman, Korea Federation Bank |
|
|
|
| |
• |
|
Senior Secretary to the President, Economic Policy |
|
|
|
| |
• |
|
Chairman, Woori Finance Holdings Co., Ltd |
|
|
|
| Kim, Joo-Hyun |
|
• |
|
(Present) Advisory, Hyundai Research Institute Chairman, Sub-Committee of Economy Presidential Committee, Unification Preparation |
|
None |
|
|
| |
• |
|
President & CEO, Hyundai Research Institute |
|
|
| |
• |
|
Head, Business Strategy Division of Hyundai Research Institute |
|
|
38
| |
(4) |
List of Key Activities of the Board of Directors (January 1, 2015 ~ August 13, 2015) |
|
|
|
|
|
|
|
| Session |
|
Date |
|
Agenda |
|
Approval |
| 2015-1 |
|
January 29 |
|
1. Approval of the financial statements for the 47th fiscal year and the convocation schedule for the 47th general meeting of
shareholders 2. Performance evaluation of executive officers and improvement of indemnification |
|
All 2 Cases
Approved |
| 2015-2 |
|
February 16 |
|
1. Agenda for the 47th general meeting of shareholders
2. Recommendation of candidates for the Inside Director position |
|
All 2 Cases
Approved |
| 2015-3 |
|
March 13 |
|
1. Appointment of the chairman of the Board of Directors
2. Appointment of the special committee members 3. Approval of
designation of Representative Directors and Inside Directors 4. Sale of shares in POSCO Engineering & Construction |
|
All 4 Cases
Approved |
| 2015-4 |
|
May 14 |
|
1. Increase capability of Pohang non-oriented electrical steel
2. Contribution to POSCO Educational Foundation 3. FY 2015
Transaction Plans with affiliated person 4. Reporting the result of compliance control system and appointment of compliance officer
5. Contribution to Korea Council of Sport for all |
|
All 5 Cases
Approved |
| 2015-5 |
|
August 4 |
|
1. Declaration of interim dividend for the fiscal year of 2015
2. Amendment of the operating rules of the Board of Directors 3.
Amendment of the remuneration guideline for the Directors |
|
All 3 Cases
Approved |
| |
|
Major Activities of the Outside Directors on the Board of Directors (January 1, 2015 ~ August 13, 2015) |
|
|
|
|
|
|
|
| Session |
|
Date |
|
Participation of the Outside Directors
(the Number of total members) |
|
Remarks |
| 2015-1 |
|
January 29 |
|
7 (7) |
|
|
| 2015-2 |
|
February 16 |
|
7 (7) |
|
|
| 2015-3 |
|
March 13 |
|
7 (7) |
|
|
| 2015-4 |
|
May 14 |
|
7 (7) |
|
|
| 2015-5 |
|
August 4 |
|
7 (7) |
|
|
| |
(5) |
Composition of the Special Committees and their Activities |
| |
(a) |
Major Activities of Director Candidate Recommendation Committee (January 1, 2015 ~ March 13, 2015) |
|
|
|
|
|
| Date |
|
Agenda |
|
Approval |
| February 9 |
|
1. Qualification Assessment and Recommendation of Outside Director Candidates |
|
Approved |
| February 16 |
|
1. Qualification assessment of Inside Director Candidates |
|
- |
| March 13 |
|
1. Appointment of Special Committee Members 2.
Appointment of the Representative Directors and Position for the Inside Directors |
|
- |
| |
(b) |
Major Activities of Evaluation and Compensation Committee (January 1, 2015 ~ March 13, 2015) |
|
|
|
|
|
| Date |
|
Agenda |
|
Approval |
| January 29 |
|
1. Performance evaluation of executive officers and improvement of indemnification
2. Evaluation of the management result for the fiscal year of 2014 |
|
-
Approved |
| |
|
Major Activities of Evaluation and Compensation Committee (March 13, 2014 ~ August 13, 2015) |
|
|
|
|
|
| Date |
|
Agenda |
|
Approval |
| August 4 |
|
1. Amendment of the remuneration guideline for the Directors |
|
- |
39
| |
(c) |
Major Activities of Finance and Operation Committee (January 1, 2014 ~ August 13, 2015) |
|
|
|
|
|
| Date |
|
Agenda |
|
Approval |
| March 13 |
|
1. Sale of shares in POSCO Engineering & Construction |
|
- |
| May 14 |
|
1. Contribution to Korea Council of Sport for all |
|
- |
| August 14 |
|
1. Amendment of the operating rules of the Board of Directors
2. Reporting of POSCO’s corporate social responsibility (CSR)
3. Reporting of POSCO’s foreign exchange risk |
|
-
- - |
| |
(d) |
Major Activities of Related Party Transaction Committee (January 1, 2014 ~ March 13, 2015) |
|
|
|
|
|
| Date |
|
Agenda |
|
Approval |
| January 23 |
|
1. Review of the operation of the Fair Trading Program |
|
- |
| February 13 |
|
1. Change in Director for voluntary compliance of Fair Trade
2. Investment increase of POSCO Group Academy |
|
Approved
Approved |
| |
|
Major Activities of Related Party Transaction Committee (March 13, 2014 ~ August 13, 2015) |
|
|
|
|
|
| Date |
|
Agenda |
|
Approval |
| May 12 |
|
1. Contribution to POSCO Educational Foundation |
|
- |
| July 30 |
|
1. Review of operation of the Fair Trading Compliance Program for the first half of 2015 |
|
- |
| |
(e) |
Major Activities of Executive Management Committee (January 1, 2015 ~ August 13, 2015) |
|
|
|
|
|
|
|
| Session |
|
Date |
|
Agenda |
|
Approval |
| 2015-1 |
|
January 26 |
|
1. Replacement of H2 production facility for COG refinement in Pohang Works
2. Replacement of Scarfer in Gwangyang Works 3. Disposal of
Treasury Stocks as Employee Award |
|
Approved
Approved Approved |
| 2015-2 |
|
March 17 |
|
1.The third renovation of #3 furnace in Pohang Works |
|
Approved |
| 2015-3 |
|
April 21 |
|
1. Increase capacity of Pohang non-oriented electrical steel
2. Replacement of old facilities in Pohang Works 3. Establishment
of POSCO Vietnam and management plan 4. Disposal of Treasury Stocks as Employee Award |
|
-
Approved Approved
Approved Approved |
| 2015-4 |
|
May 19 |
|
1. Closure of Sharegholders Register for 2015 Interim Dividends |
|
Approved |
| 2015-5 |
|
June 16 |
|
1. Gas recovery and Recycle of the by-products from #3 Finex in Pohang Works
2. Replacement of epuipment of the wharf in Gwangyang Works 3.
Plan for information system of Continuous Galvanizing Line in Thailand and Logistics |
|
Apporved
Apporved Approved |
| 2015-6 |
|
July 21 |
|
1. Replacement of motor and drive at Gwangyang Works
2. Disposal of treasury stocks in order to award |
|
|
40
B. Audit Committee
Under the Korean laws and our Articles of Incorporation, we are required to have an audit committee (the “Audit Committee”). The Audit Committee may
be composed of three or more directors; all members of the Audit Committee must be of Outside Directors. Members of the Audit Committee must also meet the applicable independent criteria set forth under the rules and regulations of the Financial
Investment Services and Capital Markets Act. Members of the Audit Committee are elected by the shareholders at the general meeting of shareholders. Our current Audit Committee is composed of three Outside Directors.
The duties of the Audit Committee include:
| • |
|
Engaging independent auditors; |
| • |
|
Approving independent audit fees; |
| • |
|
Approving audit and non-audit services; |
| • |
|
Reviewing annual financial statements; |
| • |
|
Reviewing audit results and reports, including management comments and recommendations; |
| • |
|
Reviewing our system of controls and policies, including those covering conflicts of interest and business ethics; |
| • |
|
Reviewing and approving all related party transactions; and |
| • |
|
Examining improprieties or suspected improprieties. |
Moreover, in connection with the general meeting of
shareholders, the Audit Committee examines the agenda, financial statements and other reports to be submitted by the Board of Directors at each general meeting of stockholders. Our internal and external auditors report directly to the Audit
Committee. The committee holds its regular meetings at least once each quarter and more frequently if needed.
| |
(1) |
Composition of the Audit Committee (Auditors) |
|
|
|
|
|
| Name |
|
Qualifications |
|
Remarks |
| Kim, Il-Sup Sunwoo, Young
Kim, Joo-Hyun |
|
Satisfies the requirements stipulated in the Articles of Incorporation |
|
Chairman
- - |
| |
(2) |
Major Activities of the Audit Committee (Auditors) (January 1, 2015 ~ August 13, 2015) |
|
|
|
|
|
|
|
|
|
| Session |
|
Date |
|
Agenda |
|
Approval |
| 2015-1 |
|
January 23 |
|
• |
|
Report Agenda |
|
|
| |
|
• |
|
Assessment of the operations of the internal accounting control system for the fiscal year of 2014 |
|
|
| |
|
• |
|
Reporting the consolidated internal control system for the fiscal year of 2014 |
|
|
| |
|
• |
|
Audit plans for the fiscal year of 2015 |
|
|
41
|
|
|
|
|
|
|
|
|
| Session |
|
Date |
|
Agenda |
|
Approval |
| 2015-2 |
|
February 13 |
|
• |
|
Deliberation Agenda |
|
|
| |
|
• |
|
Approval of designation of the director for internal auditary department |
|
Approved |
| |
|
• |
|
Assessment of the operations of the internal accounting control system for the fiscal year of 2014 |
|
Approved |
| |
|
• |
|
Internal audit result for the fiscal year of 2014 (Consolidated) |
|
Approved |
| |
|
• |
|
Report Agenda |
|
|
| |
|
• |
|
External audit result for the fiscal year of 2014 (Consolidated) |
|
|
| 2015-3 |
|
March 27 |
|
• |
|
Deliberation Agenda |
|
|
| |
|
• |
|
Approval of audit and non-audit services for POSCO and POSCO’s subsidiaries |
|
Approved |
| 2015-4 |
|
April 24 |
|
• |
|
Report Agenda |
|
|
| |
|
• |
|
Audit report of Form 20-F for the fiscal year 2014 |
|
|
| 2015-5 |
|
May 12 |
|
• |
|
Report Agenda |
|
|
| |
|
• |
|
Internal audit result for the first quarter of 2015 (Consolidated) |
|
|
| |
|
• |
|
External audit result for the first quarter of 2015 (Consolidated) and Audit result of Form 20-F for the fiscal year 2014 |
|
|
| 2015-6 |
|
July 30 |
|
• |
|
Report Agenda |
|
|
| |
|
• |
|
Internal audit result for the first half of 2015 (Consolidated) |
|
|
| |
|
• |
|
External audit result for the first half of 2015 (Consolidated) |
|
|
| |
|
• |
|
Audit plan for the second half of 2015 and the result of internal audit for the first half of 2015 |
|
|
| |
|
• |
|
Review of the designation standard of the external auditor |
|
|
C. Voting Rights by Shareholders
| |
(1) |
The Cumulative Voting System: The cumulative voting system was introduced at the thirty sixth general meeting of shareholders on March 12, 2004. |
| |
(2) |
Voting by Mail: The voting-by-mail system was introduced at the thirty sixth general meeting of shareholders on March 12, 2004. |
D. Compensation of Directors and Officers
| |
(1) |
Directors’ (including Outside Directors) and the Audit Committee members’ (Auditors’) Salaries |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
(In millions KRW) |
|
| Category |
|
Total
Numbers |
|
|
Total Payment |
|
|
Average Payment |
|
|
Ceiling Amount Approved at
the Shareholders Meeting |
|
|
Remarks |
|
| Inside Director |
|
|
5 |
|
|
|
1,408 |
|
|
|
239 |
|
|
|
7,000 |
|
|
|
— |
|
| Outside Director |
|
|
4 |
|
|
|
135 |
|
|
|
28 |
|
|
|
|
— |
|
| Members of the Audit Committee |
|
|
3 |
|
|
|
108 |
|
|
|
29 |
|
|
|
|
— |
|
| Total |
|
|
12 |
|
|
|
1,651 |
|
|
|
116 |
|
|
|
|
— |
|
|
|
Payment Period: January 1, 2015 ~ June 30, 2015 |
|
|
Outside Directors also serving as the members of the Audit Committee are excluded in the count for the Outside Director. |
42
| |
(2) |
Individual remuneration amount |
|
|
|
|
|
|
|
| Name |
|
Experience |
|
Total Payment |
|
| - |
|
- |
|
|
— |
|
* None reported since there was no individual remuneration exceeding 500 million KRW
| |
(3) |
List of Stock Options Presented to the Executives (As of June 30, 2015) |
| |
• |
|
Exercise of the stock option ended on the final day of the stock options exercise period (April 28, 2012). |
43
POSCO
and Subsidiaries
Condensed Consolidated Interim
Financial Statements
(Unaudited)
June 30, 2015
(With Independent Auditors’
Review Report Thereon)
Table of Contents
Independent Auditors’ Review Report
Based on a report originally issued in Korean
The Board of Directors and Shareholders
POSCO:
Reviewed financial statements
We have reviewed the
accompanying condensed consolidated interim financial statements of POSCO and its subsidiaries (the “Company”), which comprise the condensed consolidated interim statement of financial position as of June 30, 2015, the condensed
consolidated interim statements of comprehensive income (loss) for the three-month and six-month periods ended June 30, 2015 and 2014, the condensed consolidated interim statements of changes in equity and cash flows for the six-month periods
ended June 30, 2015 and 2014 and notes, comprising a summary of significant accounting policies and other explanatory information.
Management’s responsibility
Management is
responsible for the preparation and fair presentation of these condensed consolidated interim financial statements in accordance with Korean International Financial Reporting Standard (“K-IFRS”) No. 1034 “Interim Financial
Reporting”. The Company’s management is also responsible for the internal controls determined necessary to prepare condensed consolidated interim financial statements free of material misstatements due to error or fraud.
Auditor’s review responsibility
Our responsibility
is to issue a report on the condensed consolidated interim financial statements based on our reviews.
We conducted our reviews in accordance with the
Review Standards for Quarterly and Semiannual Financial Statements established by the Securities and Futures Commission of the Republic of Korea. A review of interim financial statements consists of making inquiries primarily of persons responsible
for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Korean Standards on Auditing and consequently does not enable us to obtain
assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our reviews, nothing has come to our
attention that causes us to believe that the accompanying condensed consolidated interim financial statements referred to above are not prepared, in all material respects, in accordance with K-IFRS No. 1034 “Interim Financial
Reporting”.
Other matters
The procedures and practices utilized in the Republic of Korea to review such condensed consolidated interim financial statements may differ from those
generally accepted and applied in other countries.
The consolidated statement of financial position of the Company as of December 31, 2014, and the
related consolidated statements of comprehensive income, changes in equity and cash flows for the year then ended, which are not accompanying this report, were audited by us in accordance with Korean Standards on Auditing and our report thereon,
dated February 25, 2015, expressed an unqualified opinion. The accompanying condensed consolidated statement of financial position of the Company as of December 31, 2014, presented for comparative purposes, is consistent, in all material
respects, with the audited consolidated financial statements from which it has been derived.
Seoul, Korea
August 13, 2015
This report is effective as of August 13, 2015, the review report date. Certain subsequent events or
circumstances, which may occur between the review report date and the time of reading this report, could have a material impact on the accompanying condensed consolidated interim financial statements. Accordingly, the readers of the review report
should understand that the above review report has not been updated to reflect the impact of such subsequent events or circumstances, if any.
2
POSCO and Subsidiaries
Condensed Consolidated Interim Statements of Financial Position
As of June 30, 2015 and December 31, 2014
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Notes |
|
|
June 30,
2015 |
|
|
December 31,
2014 |
|
| Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents |
|
|
21 |
|
|
W |
|
|
|
|
3,811,202 |
|
| Trade accounts and notes receivable, net |
|
|
4,21,32 |
|
|
|
11,114,757 |
|
|
|
11,786,055 |
|
| Other receivables, net |
|
|
5,21,32 |
|
|
|
1,882,001 |
|
|
|
1,956,216 |
|
| Other short-term financial assets |
|
|
6,21 |
|
|
|
3,185,659 |
|
|
|
1,462,920 |
|
| Inventories |
|
|
7 |
|
|
|
9,343,886 |
|
|
|
10,471,330 |
|
| Current income tax assets |
|
|
|
|
|
|
32,255 |
|
|
|
36,147 |
|
| Assets held for sale |
|
|
8 |
|
|
|
666,038 |
|
|
|
2,127,087 |
|
| Other current assets |
|
|
14 |
|
|
|
970,078 |
|
|
|
976,425 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total current assets |
|
|
|
|
|
|
31,403,402 |
|
|
|
32,627,382 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Long-term trade accounts and notes receivable, net |
|
|
4,21 |
|
|
|
83,252 |
|
|
|
79,336 |
|
| Other receivables, net |
|
|
5,21 |
|
|
|
1,008,314 |
|
|
|
1,144,160 |
|
| Other long-term financial assets |
|
|
6,21 |
|
|
|
2,392,702 |
|
|
|
2,455,900 |
|
| Investments in associates and joint ventures |
|
|
9 |
|
|
|
4,130,897 |
|
|
|
4,060,507 |
|
| Investment property, net |
|
|
11 |
|
|
|
1,093,882 |
|
|
|
1,055,592 |
|
| Property, plant and equipment, net |
|
|
12 |
|
|
|
34,924,446 |
|
|
|
35,241,195 |
|
| Intangible assets, net |
|
|
13 |
|
|
|
6,803,336 |
|
|
|
6,884,989 |
|
| Deferred tax assets |
|
|
|
|
|
|
1,154,928 |
|
|
|
1,195,563 |
|
| Other long-term assets |
|
|
14 |
|
|
|
641,537 |
|
|
|
507,549 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total non-current assets |
|
|
|
|
|
|
52,233,294 |
|
|
|
52,624,791 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total assets |
|
|
|
|
|
W |
|
|
|
|
85,252,173 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the condensed consolidated interim financial statements.
3
POSCO and Subsidiaries
Condensed Consolidated Interim Statements of Financial Position, Continued
As of June 30, 2015 and December 31, 2014
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Notes |
|
|
June 30,
2015 |
|
|
December 31,
2014 |
|
| Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Trade accounts and notes payable |
|
|
21,32 |
|
|
W |
|
|
|
|
3,950,786 |
|
| Short-term borrowings and current installments of long-term borrowings |
|
|
4,15,21 |
|
|
|
13,847,631 |
|
|
|
12,195,484 |
|
| Other payables |
|
|
16,21,32 |
|
|
|
1,950,742 |
|
|
|
2,194,713 |
|
| Other short-term financial liabilities |
|
|
17,21 |
|
|
|
199,602 |
|
|
|
111,637 |
|
| Current income tax liabilities |
|
|
|
|
|
|
362,043 |
|
|
|
453,613 |
|
| Liabilities of disposal group held for sale |
|
|
8 |
|
|
|
7,484 |
|
|
|
590,982 |
|
| Provisions |
|
|
18 |
|
|
|
95,049 |
|
|
|
150,030 |
|
| Other current liabilities |
|
|
20 |
|
|
|
2,136,678 |
|
|
|
2,229,764 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total current liabilities |
|
|
|
|
|
|
22,082,468 |
|
|
|
21,877,009 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Long-term trade accounts and notes payable |
|
|
21 |
|
|
|
74,424 |
|
|
|
88,469 |
|
| Long-term borrowings, excluding current installments |
|
|
15,21 |
|
|
|
13,937,659 |
|
|
|
15,232,773 |
|
| Other payables |
|
|
16,21 |
|
|
|
129,151 |
|
|
|
169,986 |
|
| Other long-term financial liabilities |
|
|
17,21 |
|
|
|
82,563 |
|
|
|
91,095 |
|
| Defined benefit liabilities, net |
|
|
19 |
|
|
|
366,044 |
|
|
|
290,325 |
|
| Deferred tax liabilities |
|
|
|
|
|
|
1,866,783 |
|
|
|
1,832,260 |
|
| Long-term provisions |
|
|
18,33 |
|
|
|
220,272 |
|
|
|
223,239 |
|
| Other long-term liabilities |
|
|
20 |
|
|
|
124,559 |
|
|
|
155,653 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total non-current liabilities |
|
|
|
|
|
|
16,801,455 |
|
|
|
18,083,800 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total liabilities |
|
|
|
|
|
|
38,883,923 |
|
|
|
39,960,809 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Share capital |
|
|
22 |
|
|
|
482,403 |
|
|
|
482,403 |
|
| Capital surplus |
|
|
22 |
|
|
|
1,081,673 |
|
|
|
1,083,718 |
|
| Hybrid bonds |
|
|
23 |
|
|
|
996,919 |
|
|
|
996,919 |
|
| Reserves |
|
|
24 |
|
|
|
(491,658 |
) |
|
|
(408,773 |
) |
| Treasury shares |
|
|
25 |
|
|
|
(1,534,365 |
) |
|
|
(1,534,457 |
) |
| Retained earnings |
|
|
|
|
|
|
40,977,336 |
|
|
|
40,967,558 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Equity attributable to owners of the controlling company |
|
|
|
|
|
|
41,512,308 |
|
|
|
41,587,368 |
|
| Non-controlling interests |
|
|
23 |
|
|
|
3,240,465 |
|
|
|
3,703,996 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total equity |
|
|
|
|
|
|
44,752,773 |
|
|
|
45,291,364 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total liabilities and equity |
|
|
|
|
|
W |
|
|
|
|
85,252,173 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the condensed consolidated interim financial statements.
4
POSCO and Subsidiaries
Condensed Consolidated Interim Statements of Comprehensive Income (Loss)
For the three-month and six-month periods ended June 30, 2015 and 2014
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
For the three-month periods
ended June 30 |
|
|
For the six-month periods
ended June 30 |
|
| (in millions of Won, except per share information) |
|
Notes |
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
| Revenue |
|
|
32,35 |
|
|
W |
|
|
|
|
16,703,572 |
|
|
|
30,290,403 |
|
|
|
32,143,700 |
|
| Cost of sales |
|
|
7,29,32 |
|
|
|
(13,468,091 |
) |
|
|
(14,890,994 |
) |
|
|
(26,771,402 |
) |
|
|
(28,643,151 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gross profit |
|
|
|
|
|
|
1,721,401 |
|
|
|
1,812,578 |
|
|
|
3,519,001 |
|
|
|
3,500,549 |
|
|
|
|
|
|
|
| Selling and administrative expenses |
|
|
26,29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Administrative expenses |
|
|
|
|
|
|
(582,852 |
) |
|
|
(540,675 |
) |
|
|
(1,210,411 |
) |
|
|
(1,087,607 |
) |
| Selling expenses |
|
|
|
|
|
|
(452,205 |
) |
|
|
(432,792 |
) |
|
|
(891,005 |
) |
|
|
(842,568 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating profit |
|
|
|
|
|
|
686,344 |
|
|
|
839,111 |
|
|
|
1,417,585 |
|
|
|
1,570,374 |
|
|
|
|
|
|
|
| Share of profit (loss) of equity-accounted investees, net |
|
|
9 |
|
|
|
23,877 |
|
|
|
(36,872 |
) |
|
|
(39,051 |
) |
|
|
(123,971 |
) |
|
|
|
|
|
|
| Finance income and costs |
|
|
21,27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Finance income |
|
|
|
|
|
|
488,057 |
|
|
|
868,199 |
|
|
|
1,096,743 |
|
|
|
1,386,305 |
|
| Finance costs |
|
|
|
|
|
|
(747,286 |
) |
|
|
(708,260 |
) |
|
|
(1,478,207 |
) |
|
|
(1,361,889 |
) |
|
|
|
|
|
|
| Other non-operating income and expenses |
|
|
28 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other non-operating income |
|
|
|
|
|
|
116,252 |
|
|
|
37,085 |
|
|
|
312,371 |
|
|
|
94,542 |
|
| Other non-operating expenses |
|
|
29 |
|
|
|
(263,733 |
) |
|
|
(278,929 |
) |
|
|
(401,826 |
) |
|
|
(576,953 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Profit before income tax |
|
|
|
|
|
|
303,511 |
|
|
|
720,334 |
|
|
|
907,615 |
|
|
|
988,408 |
|
| Income tax expense |
|
|
30,35 |
|
|
|
(186,115 |
) |
|
|
(233,176 |
) |
|
|
(455,019 |
) |
|
|
(445,604 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Profit |
|
|
|
|
|
|
117,396 |
|
|
|
487,158 |
|
|
|
452,596 |
|
|
|
542,804 |
|
|
|
|
|
|
|
| Other comprehensive income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Items that will not be reclassified subsequently to profit or loss : |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Remeasurements of defined benefit pension plans |
|
|
19 |
|
|
|
31,126 |
|
|
|
(25,610 |
) |
|
|
(23,436 |
) |
|
|
(41,096 |
) |
| Items that are or may be reclassified subsequently to profit or loss : |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Capital adjustment arising from investments in equity-accounted investees |
|
|
|
|
|
|
49,914 |
|
|
|
(119,209 |
) |
|
|
(67,474 |
) |
|
|
(54,921 |
) |
| Net changes in the unrealized fair value of available-for-sale investments |
|
|
21 |
|
|
|
(37,346 |
) |
|
|
(89,932 |
) |
|
|
(26,650 |
) |
|
|
(294,389 |
) |
| Foreign currency translation differences |
|
|
|
|
|
|
60,388 |
|
|
|
(265,158 |
) |
|
|
4,524 |
|
|
|
(189,578 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other comprehensive income (loss), net of tax |
|
|
|
|
|
|
104,082 |
|
|
|
(499,909 |
) |
|
|
(113,036 |
) |
|
|
(579,984 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total comprehensive income (loss) |
|
|
|
|
|
W |
|
|
|
|
(12,751 |
) |
|
|
339,560 |
|
|
|
(37,180 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Profit (loss) attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Owners of the controlling company |
|
|
|
|
|
W |
|
|
|
|
511,170 |
|
|
|
536,764 |
|
|
|
581,011 |
|
| Non-controlling interests |
|
|
|
|
|
|
(80,783 |
) |
|
|
(24,012 |
) |
|
|
(84,168 |
) |
|
|
(38,207 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Profit |
|
|
|
|
|
W |
|
|
|
|
487,158 |
|
|
|
452,596 |
|
|
|
542,804 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total comprehensive income (loss) attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Owners of the controlling company |
|
|
|
|
|
W |
|
|
|
|
66,220 |
|
|
|
429,185 |
|
|
|
41,240 |
|
| Non-controlling interests |
|
|
|
|
|
|
(70,079 |
) |
|
|
(78,971 |
) |
|
|
(89,625 |
) |
|
|
(78,420 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total comprehensive income (loss) |
|
|
|
|
|
W |
|
|
|
|
(12,751 |
) |
|
|
339,560 |
|
|
|
(37,180 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic and diluted earnings per share (in Won) |
|
|
31 |
|
|
|
2,374 |
|
|
|
6,304 |
|
|
|
6,506 |
|
|
|
7,077 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the condensed consolidated interim financial statements.
5
POSCO and Subsidiaries
Condensed Consolidated Interim Statements of Changes in Equity
For the six-month periods ended June 30, 2015 and 2014
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Attributable to owners of the controlling company |
|
|
Non-
controlling
interests |
|
|
Total |
|
| (in millions of Won) |
|
Share
capital |
|
|
Capital
surplus |
|
|
Hybrid
bonds |
|
|
Reserves |
|
|
Treasury
shares |
|
|
Retained
earnings |
|
|
Sub
total |
|
|
|
| Balance as of January 1, 2014 |
|
W |
|
|
|
|
1,078,266 |
|
|
|
996,919 |
|
|
|
(23,076 |
) |
|
|
(1,579,124 |
) |
|
|
41,090,649 |
|
|
|
42,046,037 |
|
|
|
3,775,993 |
|
|
|
45,822,030 |
|
| Comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Profit |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
581,011 |
|
|
|
581,011 |
|
|
|
(38,207 |
) |
|
|
542,804 |
|
| Other comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net changes in accumulated comprehensive income (loss) of investments in associates, net of tax |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(43,194 |
) |
|
|
— |
|
|
|
— |
|
|
|
(43,194 |
) |
|
|
(11,727 |
) |
|
|
(54,921 |
) |
| Net changes in the unrealized fair value of available-for-sale investments, net of tax |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(297,023 |
) |
|
|
— |
|
|
|
— |
|
|
|
(297,023 |
) |
|
|
2,634 |
|
|
|
(294,389 |
) |
| Foreign currency translation differences, net of tax |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(160,283 |
) |
|
|
— |
|
|
|
— |
|
|
|
(160,283 |
) |
|
|
(29,295 |
) |
|
|
(189,578 |
) |
| Remeasurements of defined benefit pension plans, net of tax |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(39,271 |
) |
|
|
(39,271 |
) |
|
|
(1,825 |
) |
|
|
(41,096 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total comprehensive income (loss) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(500,500 |
) |
|
|
— |
|
|
|
541,740 |
|
|
|
41,240 |
|
|
|
(78,420 |
) |
|
|
(37,180 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Transactions with owners of the controlling company, Recognized directly in equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Year-end dividends |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(478,702 |
) |
|
|
(478,702 |
) |
|
|
(30,886 |
) |
|
|
(509,588 |
) |
| Changes in subsidiaries |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,249 |
|
|
|
5,249 |
|
| Changes in ownership interests in subsidiaries |
|
|
— |
|
|
|
(3,843 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3,843 |
) |
|
|
37,223 |
|
|
|
33,380 |
|
| Interest of hybrid bonds |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(21,572 |
) |
|
|
(21,572 |
) |
|
|
(13,982 |
) |
|
|
(35,554 |
) |
| Disposal of treasury shares |
|
|
— |
|
|
|
48 |
|
|
|
— |
|
|
|
— |
|
|
|
131 |
|
|
|
— |
|
|
|
179 |
|
|
|
— |
|
|
|
179 |
|
| Others |
|
|
— |
|
|
|
1,078 |
|
|
|
— |
|
|
|
3,122 |
|
|
|
— |
|
|
|
(2,196 |
) |
|
|
2,004 |
|
|
|
(9,820 |
) |
|
|
(7,816 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total transactions with owners of the controlling company |
|
|
— |
|
|
|
(2,717 |
) |
|
|
— |
|
|
|
3,122 |
|
|
|
131 |
|
|
|
(502,470 |
) |
|
|
(501,934 |
) |
|
|
(12,216 |
) |
|
|
(514,150 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance as of June 30, 2014 |
|
W |
|
|
|
|
1,075,549 |
|
|
|
996,919 |
|
|
|
(520,454 |
) |
|
|
(1,578,993 |
) |
|
|
41,129,919 |
|
|
|
41,585,343 |
|
|
|
3,685,357 |
|
|
|
45,270,700 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the condensed consolidated interim financial statements.
6
POSCO and Subsidiaries
Condensed Consolidated Interim Statements of Changes in Equity, Continued
For the six-month periods ended June 30, 2015 and 2014
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Attributable to owners of the controlling company |
|
|
Non-
controlling
interests |
|
|
|
|
| (in millions of Won) |
|
Share
capital |
|
|
Capital
surplus |
|
|
Hybrid
bond |
|
|
Reserves |
|
|
Treasury
shares |
|
|
Retained
earnings |
|
|
Sub
total |
|
|
|
Total |
|
| Balance as of January 1, 2015 |
|
W |
|
|
|
|
1,083,718 |
|
|
|
996,919 |
|
|
|
(408,773 |
) |
|
|
(1,534,457 |
) |
|
|
40,967,558 |
|
|
|
41,587,368 |
|
|
|
3,703,996 |
|
|
|
45,291,364 |
|
| Comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Profit |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
536,764 |
|
|
|
536,764 |
|
|
|
(84,168 |
) |
|
|
452,596 |
|
| Net changes in accumulated comprehensive income (loss) of investments in associates, net of tax |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(69,692 |
) |
|
|
— |
|
|
|
— |
|
|
|
(69,692 |
) |
|
|
2,218 |
|
|
|
(67,474 |
) |
| Net changes in the unrealized fair value of available-for-sale investments, net of tax |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(24,039 |
) |
|
|
— |
|
|
|
— |
|
|
|
(24,039 |
) |
|
|
(2,611 |
) |
|
|
(26,650 |
) |
| Foreign currency translation differences, net of tax |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9,694 |
|
|
|
— |
|
|
|
— |
|
|
|
9,694 |
|
|
|
(5,170 |
) |
|
|
4,524 |
|
| Remeasurements of defined benefit pension plans, net of tax |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(23,542 |
) |
|
|
(23,542 |
) |
|
|
106 |
|
|
|
(23,436 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total comprehensive income (loss) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(84,037 |
) |
|
|
— |
|
|
|
513,222 |
|
|
|
429,185 |
|
|
|
(89,625 |
) |
|
|
339,560 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Transactions with owners of the controlling company, Recognized directly in equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Year-end dividends |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(479,959 |
) |
|
|
(479,959 |
) |
|
|
(32,410 |
) |
|
|
(512,369 |
) |
| Interim dividends |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(67,700 |
) |
|
|
(67,700 |
) |
| Changes in subsidiaries |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(282,217 |
) |
|
|
(282,217 |
) |
| Changes in ownership interests in subsidiaries |
|
|
— |
|
|
|
(2,354 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,354 |
) |
|
|
21,499 |
|
|
|
19,145 |
|
| Interest of hybrid bonds |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(21,572 |
) |
|
|
(21,572 |
) |
|
|
(11,994 |
) |
|
|
(33,566 |
) |
| Disposal of treasury shares |
|
|
— |
|
|
|
13 |
|
|
|
— |
|
|
|
— |
|
|
|
92 |
|
|
|
— |
|
|
|
105 |
|
|
|
— |
|
|
|
105 |
|
| Others |
|
|
— |
|
|
|
296 |
|
|
|
— |
|
|
|
1,152 |
|
|
|
— |
|
|
|
(1,913 |
) |
|
|
(465 |
) |
|
|
(1,084 |
) |
|
|
(1,549 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total transactions with owners of the controlling company |
|
|
— |
|
|
|
(2,045 |
) |
|
|
— |
|
|
|
1,152 |
|
|
|
92 |
|
|
|
(503,444 |
) |
|
|
(504,245 |
) |
|
|
(373,906 |
) |
|
|
(878,151 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance as of June 30, 2015 |
|
W |
|
|
|
|
1,081,673 |
|
|
|
996,919 |
|
|
|
(491,658 |
) |
|
|
(1,534,365 |
) |
|
|
40,977,336 |
|
|
|
41,512,308 |
|
|
|
3,240,465 |
|
|
|
44,752,773 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the condensed consolidated interim financial statements.
7
POSCO and Subsidiaries
Condensed Consolidated Interim Statements of Cash Flows
For the six-month periods ended June 30, 2015 and 2014
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Notes |
|
|
June 30, 2015 |
|
|
June 30, 2014 |
|
| Cash flows from operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
| Profit |
|
|
|
|
|
W |
|
|
|
|
542,804 |
|
| Adjustments for: |
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation |
|
|
|
|
|
|
1,396,845 |
|
|
|
1,388,151 |
|
| Amortization |
|
|
|
|
|
|
186,497 |
|
|
|
159,249 |
|
| Finance income |
|
|
|
|
|
|
(546,448 |
) |
|
|
(758,731 |
) |
| Finance costs |
|
|
|
|
|
|
925,813 |
|
|
|
776,888 |
|
| Income tax expense |
|
|
|
|
|
|
455,019 |
|
|
|
445,604 |
|
| Impairment loss of property, plant and equipment |
|
|
|
|
|
|
71,908 |
|
|
|
4,865 |
|
| Gain on disposal of property, plant and equipment |
|
|
|
|
|
|
(14,819 |
) |
|
|
(3,928 |
) |
| Loss on disposal of property, plant and equipment |
|
|
|
|
|
|
58,263 |
|
|
|
19,700 |
|
| Impairment loss of intangible assets |
|
|
|
|
|
|
40,933 |
|
|
|
28,082 |
|
| Share of loss of equity-accounted investees |
|
|
|
|
|
|
39,051 |
|
|
|
123,971 |
|
| Impairment loss of assets held for sale |
|
|
|
|
|
|
23,417 |
|
|
|
— |
|
| Gain on disposal of assets held for sale |
|
|
|
|
|
|
(219,180 |
) |
|
|
— |
|
| Cost for defined benefit plans |
|
|
|
|
|
|
127,612 |
|
|
|
117,821 |
|
| Bad debt expenses |
|
|
|
|
|
|
117,040 |
|
|
|
100,447 |
|
| Loss on valuation of inventories |
|
|
|
|
|
|
97,600 |
|
|
|
45,309 |
|
| Increase in provisions |
|
|
|
|
|
|
27,158 |
|
|
|
152,238 |
|
| Others, net |
|
|
|
|
|
|
41,841 |
|
|
|
10,415 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,828,550 |
|
|
|
2,610,081 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Changes in operating assets and liabilities |
|
|
34 |
|
|
|
1,076,817 |
|
|
|
(2,415,801 |
) |
|
|
|
|
| Interest received |
|
|
|
|
|
|
90,564 |
|
|
|
107,228 |
|
| Interest paid |
|
|
|
|
|
|
(421,272 |
) |
|
|
(431,948 |
) |
| Dividends received |
|
|
|
|
|
|
87,190 |
|
|
|
83,298 |
|
| Income taxes paid |
|
|
|
|
|
|
(440,389 |
) |
|
|
(416,641 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net cash provided by operating activities |
|
|
|
|
|
W |
|
|
|
|
79,021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the condensed consolidated interim financial statements.
8
POSCO and Subsidiaries
Condensed Consolidated Interim Statements of Cash Flows, Continued
For the six-month periods ended June 30, 2015 and 2014
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Notes |
|
|
June 30, 2015 |
|
|
June 30, 2014 |
|
| Cash flows from investing activities |
|
|
|
|
|
|
|
|
|
|
|
|
| Acquisitions of short-term financial instruments |
|
|
|
|
|
W |
|
|
|
|
(1,490,372 |
) |
| Proceeds from disposal of short-term financial instruments |
|
|
|
|
|
|
4,248,615 |
|
|
|
2,838,283 |
|
| Increase in loans |
|
|
|
|
|
|
(249,419 |
) |
|
|
(90,478 |
) |
| Collection of loans |
|
|
|
|
|
|
154,132 |
|
|
|
9,790 |
|
| Acquisitions of available-for-sale investments |
|
|
|
|
|
|
(63,136 |
) |
|
|
(39,019 |
) |
| Proceeds from disposal of available-for-sale investments |
|
|
|
|
|
|
112,615 |
|
|
|
6,599 |
|
| Acquisitions of investments and joint ventures |
|
|
|
|
|
|
(31,890 |
) |
|
|
(672,064 |
) |
| Proceeds from disposal of investments in associates and joint ventures |
|
|
|
|
|
|
3,958 |
|
|
|
134 |
|
| Acquisition of investment property |
|
|
|
|
|
|
(77,413 |
) |
|
|
(23 |
) |
| Proceeds from disposal of investment property |
|
|
|
|
|
|
— |
|
|
|
20,871 |
|
| Acquisitions of property, plant and equipment |
|
|
|
|
|
|
(1,428,934 |
) |
|
|
(1,604,740 |
) |
| Proceeds from disposal of property, plant and equipment |
|
|
|
|
|
|
60,815 |
|
|
|
40,604 |
|
| Acquisitions of intangible assets |
|
|
|
|
|
|
(159,851 |
) |
|
|
(146,576 |
) |
| Proceeds from disposal of intangible assets |
|
|
|
|
|
|
5,696 |
|
|
|
6,573 |
|
| Proceeds from disposal of assets held for sale |
|
|
|
|
|
|
72,766 |
|
|
|
1,291 |
|
| Cash paid in acquisition of business, net of cash acquired |
|
|
|
|
|
|
— |
|
|
|
(84 |
) |
| Cash received from disposal of business, net of cash transferred |
|
|
|
|
|
|
435,962 |
|
|
|
— |
|
| Others, net |
|
|
|
|
|
|
(6,710 |
) |
|
|
(27,004 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net cash used in investing activities |
|
|
|
|
|
|
(2,912,034 |
) |
|
|
(1,146,215 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash flows from financing activities |
|
|
|
|
|
|
|
|
|
|
|
|
| Proceeds from borrowings |
|
|
|
|
|
|
1,012,081 |
|
|
|
1,352,317 |
|
| Repayment of borrowings |
|
|
|
|
|
|
(1,118,369 |
) |
|
|
(3,190,831 |
) |
| Proceeds from short-term borrowings, net |
|
|
|
|
|
|
181,157 |
|
|
|
3,044,375 |
|
| Payment of cash dividends |
|
|
|
|
|
|
(656,648 |
) |
|
|
(509,682 |
) |
| Payment of interest of hybrid bonds |
|
|
|
|
|
|
(33,801 |
) |
|
|
(33,788 |
) |
| Other, net |
|
|
|
|
|
|
34,252 |
|
|
|
15,205 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net cash provided by (used in) financing activities |
|
|
|
|
|
|
(581,328 |
) |
|
|
677,596 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Effect of exchange rate fluctuation on cash held |
|
|
|
|
|
|
9,937 |
|
|
|
(62,093 |
) |
|
|
|
|
| Net increase (decrease) in cash and cash equivalents |
|
|
|
|
|
|
190,631 |
|
|
|
(451,691 |
) |
|
|
|
|
| Cash and cash equivalents at beginning of the period |
|
|
8 |
|
|
|
4,022,137 |
|
|
|
4,208,562 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents at end of the period |
|
|
8 |
|
|
W |
|
|
|
|
3,756,871 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the condensed consolidated interim financial statements.
9
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
As of June 30, 2015
(Unaudited)
1. General Information
General information about POSCO, its 46 domestic subsidiaries including POSCO Engineering & Construction Co., Ltd. 181 foreign subsidiaries including
POSCO America Corporation (collectively, “the Company”) and its 99 associates and joint ventures are as follows:
| (a) |
The controlling company |
POSCO, the controlling company, was incorporated on April 1,
1968, under the Commercial Code of the Republic of Korea to manufacture and sell steel rolled products and plates in the domestic and foreign markets.
The shares of POSCO have been listed on the Korea Exchange since 1988. POSCO owns and operates two steel plants (Pohang and Gwangyang) and one
office in Korea and it also operates internationally through six of its overseas liaison offices.
As of June 30, 2015, the shares of
the POSCO are listed on the Korea Exchange, while its depository receipts are listed on the New York, Tokyo and London Stock Exchanges.
| (b) |
Consolidated subsidiaries acquired or reclassified during the six-month period ended June 30, 2015 are as follows: |
|
|
|
|
|
|
|
|
|
| Company |
|
Date of acquisition |
|
Ownership(%) |
|
|
Reason |
| POSCO GROUP UNIVERSITY |
|
February 2015 |
|
|
100.00 |
|
|
New establishment |
| POSCO India Ahmedabad
Steel Processing Center Pvt.Ltd. |
|
February 2015 |
|
|
100.00 |
|
|
New establishment |
| HOTEL LAONZENA CO., LTD |
|
February 2015 |
|
|
100.00 |
|
|
New establishment |
| COINSA INGENIERIA Y PETROQUIMICA S.R.L |
|
February 2015 |
|
|
50.00 |
|
|
New establishment |
| Miracle 4th Co., Ltd. |
|
March 2015 |
|
|
— |
|
|
Acquisition |
| PT.Krakatau Posco Social Enterprise |
|
April 2015 |
|
|
100.00 |
|
|
New establishment |
| POSCO Vietnam Holdings Co., LTD. |
|
May 2015 |
|
|
100.00 |
|
|
New establishment |
| Growth Ladder POSCO K-Growth Global Fund |
|
May 2015 |
|
|
50.00 |
|
|
New establishment |
| 2015 POSCO New technology II Fund |
|
June 2015 |
|
|
25.00 |
|
|
New establishment |
| (c) |
Subsidiaries that were excluded from consolidation during the six-month period ended June 30, 2015 are as follows: |
|
|
|
|
|
| Company |
|
Date of disposal |
|
Reason |
| SeAH Changwon Integrated Special Steel
(formerly, POSCO Specialty Steel Co., Ltd.) |
|
March 2015 |
|
Reclassification to associates due to decline in ownership |
|
|
|
| Keystone-HYUNDAI SECURITIES
NO. 1. Private Equity Fund |
|
March 2015 |
|
Reclassification to associates due to decline in ownership |
|
|
|
| Cheonsa wind power |
|
March 2015 |
|
Exclusion upon reclassification of parent company, ‘Keystone-HYUNDAI SECURITIES NO. 1. Private Equity Fund’ to associates |
|
|
|
| Zeus(Cayman) |
|
April 2015 |
|
Exclusion upon liquidation |
|
|
|
| POSFINE Co., Ltd. |
|
April 2015 |
|
Disposal |
|
|
|
| PT. POSNESIA Stainless Steel Industry |
|
April 2015 |
|
Exclusion upon liquidation |
|
|
|
| TECHREN Solar, LLC |
|
May 2015 |
|
Disposal |
|
|
|
| New Altec Co., Ltd |
|
May 2015 |
|
Disposal |
|
|
|
| POS-HiAL |
|
June 2015 |
|
Loss of control due to administration by court |
|
|
|
| SUNGJIN CANADA LTD. |
|
June 2015 |
|
Exclusion upon liquidation |
10
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
2. Statement of Compliance
Statement of compliance
The condensed consolidated
interim financial statements have been prepared in accordance with Korean International Financial Reporting Standards (“K-IFRS”), as prescribed in the Act on External Audit of Corporations.
These condensed consolidated interim financial statements have been prepared in accordance with K-IFRS No. 1034 “Interim Financial
Reporting” as part of the period covered by the Company’s K-IFRS annual financial statements. Selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in
financial position and performance of the Company since the last annual consolidated financial statements as of and for the year ended December 31, 2014. These condensed consolidated interim financial statements do not include all of the
disclosures required for full annual financial statements.
Use of estimates and judgments
| (a) |
Judgements, assumptions and estimation uncertainties |
The preparation of the condensed interim
financial statements in conformity with K-IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results
may differ from these estimates.
In preparing these condensed consolidated interim financial statements, the significant judgments made by
management in applying the Company’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as of and for the year ended December 31, 2014.
| (b) |
Measurement of fair value |
The Company’s accounting policies and disclosures require the
measurement of fair values, for both financial and non-financial assets and liabilities. The Company has an established control framework with respect to the measurement of fair values. This includes a valuation team that has overall responsibility
for overseeing all significant fair value measurements, including Level 3 fair values, and reports directly to the financial officer.
The
valuation team regularly reviews significant unobservable inputs and valuation adjustments. If third party information, such as broker quotes or pricing services, is used to measure fair values, then the valuation team assesses the evidence obtained
from the third parties to support the conclusion that such valuations meet the requirements of K-IFRS including the level in the fair value hierarchy in which such valuation techniques should be classified.
The Company reports the significant valuation matters to the Audit Committee.
11
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
When measuring the fair value of an asset or a liability, the Company uses market observable
data as far as possible. Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows.
|
|
|
|
|
|
|
| • |
|
Level 1 |
|
- |
|
quoted prices (unadjusted) in active markets for identical assets or liabilities. |
|
|
|
|
| • |
|
Level 2 |
|
- |
|
inputs other than quoted prices included in Level 1 that are observable for the assets or liability, either directly or indirectly. |
|
|
|
|
| • |
|
Level 3 |
|
- |
|
inputs for the assets or liability that are not based on observable market data. |
If the inputs used to measure the fair value of an asset or a liability might be categorized in different
levels of the fair value hierarchy, then the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. The Company recognizes
transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.
Further
information about the assumptions made in measuring fair values is included in note 21.
3. Summary of Significant Accounting Policies
Except as described in K-IFRS No. 1034 “Interim Financial Reporting” and below, the accounting policies applied by the Company in these
condensed consolidated interim financial statements are the same as those applied by the Company in its consolidated financial statements as of and for the year ended December 31, 2014. The accounting policy for emission rights below is also
expected to be applied in the Company’s consolidated financial statements as of and for the year ending December 31, 2015.
Emission Rights
The Company accounts for greenhouse gases emission right and the relevant liability as below pursuant to the Act on Allocation and Trading of
Greenhouse Gas Emission which became effective in 2015.
| (a) |
Greenhouse Gases Emission Right |
Greenhouse Gases Emission Right consists of emission
allowances which are allocated from the government free of charge or purchased from the market. The cost includes any directly attributable costs incurred during the normal course of business.
Emission rights held for the purpose of performing the obligation are classified as intangible asset and are initially measured at cost and
subsequent to initial recognition, are carried at cost less accumulated impairment losses. Emission rights held for short-swing profits are classified as current asset and are measured at fair value with any changes in fair value recognized as
profit or loss in the respective reporting period.
12
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
The Company derecognizes an emission right asset when the emission allowance is unusable,
disposed or submitted to government in which the future economic benefits are no longer expected to be probable.
Emission liability is a present obligation of submitting emission rights to
the government with regard to emission of greenhouse gas. Emission liability is recognized when there is a high possibility of outflows of resources in performing the obligation and the costs required to perform the obligation are reliably
estimable. Emission liability is an amount of estimated obligation for emission rights to be submitted to the government for the performing period. The emission liability is measured based on the expected quantity of emission for the performing
period in excess of emission allowance in possession, and the unit price for such emission rights in the market as of the end of the reporting period.
4. Trade Accounts and Notes Receivable
Trade accounts
and notes receivable as of June 30, 2015 and December 31, 2014 are as follows:
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
June 30, 2015 |
|
|
December 31, 2014 |
|
| Current |
|
|
|
|
|
|
|
|
| Trade accounts and notes receivable |
|
W |
|
|
|
|
10,814,600 |
|
| Finance lease receivables |
|
|
23,192 |
|
|
|
24,344 |
|
| Unbilled due from customers for contract work |
|
|
1,477,194 |
|
|
|
1,528,427 |
|
| Less: Allowance for doubtful accounts |
|
|
(609,397 |
) |
|
|
(581,316 |
) |
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
11,786,055 |
|
|
|
|
|
|
|
|
|
|
| Non-current |
|
|
|
|
|
|
|
|
| Trade accounts and notes receivable |
|
W |
|
|
|
|
60,583 |
|
| Finance lease receivables |
|
|
31,899 |
|
|
|
42,907 |
|
| Less: Allowance for doubtful accounts |
|
|
(26,277 |
) |
|
|
(24,154 |
) |
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
79,336 |
|
|
|
|
|
|
|
|
|
|
The trade accounts and notes receivable sold to financial institutions, for which the derecognition conditions were not met,
amounted to W1,737,981 million and W2,030,342 million as of June 30, 2015 and December 31, 2014, respectively, and are included in bank borrowings (Note 15).
13
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
5. Other Receivables
Other receivables as of June 30, 2015 and December 31, 2014 are as follows:
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
June 30, 2015 |
|
|
December 31, 2014 |
|
| Current |
|
|
|
|
|
|
|
|
| Short-term loans |
|
W |
|
|
|
|
254,108 |
|
| Other accounts receivable |
|
|
1,279,128 |
|
|
|
1,523,659 |
|
| Accrued income |
|
|
85,260 |
|
|
|
76,393 |
|
| Deposits |
|
|
76,734 |
|
|
|
58,384 |
|
| Others |
|
|
173,843 |
|
|
|
227,192 |
|
| Less : Allowance for doubtful accounts |
|
|
(269,266 |
) |
|
|
(183,520 |
) |
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
1,956,216 |
|
|
|
|
|
|
|
|
|
|
| Non-current |
|
|
|
|
|
|
|
|
| Long-term loans |
|
W |
|
|
|
|
960,652 |
|
| Long-term other accounts receivable |
|
|
138,924 |
|
|
|
158,018 |
|
| Accrued income |
|
|
1,580 |
|
|
|
1,533 |
|
| Deposits |
|
|
148,002 |
|
|
|
189,120 |
|
| Less : Allowance for doubtful accounts |
|
|
(137,045 |
) |
|
|
(165,163 |
) |
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
1,144,160 |
|
|
|
|
|
|
|
|
|
|
14
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
6. Other Financial Assets
| (a) |
Other financial assets as of June 30, 2015 and December 31, 2014 are as follows: |
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
June 30, 2015 |
|
|
December 31, 2014 |
|
| Current |
|
|
|
|
|
|
|
|
| Derivatives assets held for trading |
|
W |
|
|
|
|
77,182 |
|
| Available-for-sale securities |
|
|
3,706 |
|
|
|
25,512 |
|
| Current portion of held-to-maturity securities(bonds) |
|
|
21,202 |
|
|
|
15,297 |
|
| Short-term financial instruments(*1,2) |
|
|
3,085,383 |
|
|
|
1,344,929 |
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
1,462,920 |
|
|
|
|
|
|
|
|
|
|
| Non-current |
|
|
|
|
|
|
|
|
| Derivatives assets held for trading(*3) |
|
W |
|
|
|
|
19,084 |
|
| Available-for-sale securities(equity instruments)(*4,5) |
|
|
2,166,928 |
|
|
|
2,294,244 |
|
| Available-for-sale securities(bonds) |
|
|
49,975 |
|
|
|
33,350 |
|
| Available-for-sale securities(others) |
|
|
64,430 |
|
|
|
67,135 |
|
| Held-to-maturity securities(bonds) |
|
|
2,240 |
|
|
|
1,796 |
|
| Long-term financial instruments(*2) |
|
|
41,239 |
|
|
|
40,291 |
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
2,455,900 |
|
|
|
|
|
|
|
|
|
|
| (*1) |
As of June 30, 2015 and December 31, 2014, W7,411 million and W5,465 million, respectively, are restricted for the use in a government project. |
| (*2) |
As of June 30, 2015 and December 31, 2014, financial instruments amounting to W70,052 million and W177,014 million, respectively, are restricted for use in financial
arrangements, pledge and others. |
| (*3) |
The Company assessed the values of its put option and earn-out consideration in relation to the residual equity upon the Company’s disposal of SeAH Changwon Integrated Special Steel (formerly, POSCO Specialty Co.,
Ltd). Accordingly, the Company has recognized derivatives assets amounting to W44,734 million and W1,620 million, respectively, as of June 30, 2015. |
| (*4) |
During the six-month period ended June 30, 2015, there were objective evidences of impairment for listed equity securities such as Hyundai Heavy Industries Co., Ltd., and non-listed equity securities such as Dongbu
Metal Co., Ltd and others due to the significant decline in the fair value of the shares or the continuous decline for a prolonged period. As a result, an impairment loss of W63,440 million was recognized in profit or loss during
the six-month period ended June 30, 2015. |
| (*5) |
As of June 30, 2015 and December 31, 2014, W166,226 million and W173,632 million of available-for-sale securities, respectively, have been provided as collateral for
construction projects and borrowings. |
15
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
7. Inventories
Inventories as of June 30, 2015 and December 31, 2014 are as follows:
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
June 30, 2015 |
|
|
December 31, 2014 |
|
| Finished goods |
|
W |
|
|
|
|
1,647,331 |
|
| Merchandise |
|
|
850,645 |
|
|
|
902,347 |
|
| Semi-finished goods |
|
|
1,553,851 |
|
|
|
1,654,556 |
|
| Raw materials |
|
|
2,259,451 |
|
|
|
2,334,992 |
|
| Fuel and materials |
|
|
798,133 |
|
|
|
759,193 |
|
| Construction inventories |
|
|
820,195 |
|
|
|
1,129,370 |
|
| Materials-in-transit |
|
|
1,622,831 |
|
|
|
2,109,207 |
|
| Others |
|
|
88,364 |
|
|
|
96,274 |
|
|
|
|
|
|
|
|
|
|
|
|
|
9,557,995 |
|
|
|
10,633,270 |
|
| Less: Allowance for inventories valuation |
|
|
(214,109 |
) |
|
|
(161,940 |
) |
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
10,471,330 |
|
|
|
|
|
|
|
|
|
|
The amounts of loss on valuation of inventories recognized within cost of sales during the six-month period ended
June 30, 2015 and the year ended December 31, 2014 were W97,600 million and W41,713 million, respectively.
16
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
8. Assets Held for Sale
Details of assets held for sale as of June 30, 2015 and December 31, 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
June 30, 2015 |
|
|
December 31, 2014 |
|
| (in millions of Won) |
|
The controlling
company(*1,2,6) |
|
|
Subsidiaries
(*3,4,5,6) |
|
|
Total |
|
|
The controlling
company(*1,6) |
|
|
Subsidiaries
(*5,6,7,8,9) |
|
|
Total |
|
| Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents(*10) |
|
W |
|
|
|
|
4,040 |
|
|
|
4,040 |
|
|
|
— |
|
|
|
210,934 |
|
|
|
210,934 |
|
| Trade accounts and notes receivable and other receivables |
|
|
— |
|
|
|
2,156 |
|
|
|
2,156 |
|
|
|
— |
|
|
|
90,811 |
|
|
|
90,811 |
|
| Other financial assets |
|
|
582,525 |
|
|
|
3 |
|
|
|
582,528 |
|
|
|
580,062 |
|
|
|
21,028 |
|
|
|
601,090 |
|
| Inventories |
|
|
— |
|
|
|
14 |
|
|
|
14 |
|
|
|
— |
|
|
|
289,716 |
|
|
|
289,716 |
|
| Investment property |
|
|
— |
|
|
|
2,276 |
|
|
|
2,276 |
|
|
|
— |
|
|
|
22,067 |
|
|
|
22,067 |
|
| Property, plant and equipment |
|
|
34,587 |
|
|
|
38,655 |
|
|
|
73,242 |
|
|
|
2,672 |
|
|
|
895,391 |
|
|
|
898,063 |
|
| Other assets |
|
|
— |
|
|
|
1,782 |
|
|
|
1,782 |
|
|
|
— |
|
|
|
14,406 |
|
|
|
14,406 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
48,926 |
|
|
|
666,038 |
|
|
|
582,734 |
|
|
|
1,544,353 |
|
|
|
2,127,087 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Trade accounts and notes payable and other payables |
|
W |
|
|
|
|
5,968 |
|
|
|
5,968 |
|
|
|
— |
|
|
|
225,403 |
|
|
|
225,403 |
|
| Borrowings |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
330,059 |
|
|
|
330,059 |
|
| Other liabilities |
|
|
— |
|
|
|
1,516 |
|
|
|
1,516 |
|
|
|
— |
|
|
|
35,520 |
|
|
|
35,520 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
7,484 |
|
|
|
7,484 |
|
|
|
— |
|
|
|
590,982 |
|
|
|
590,982 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
During the year ended December 31, 2014, the Company determined to dispose of its equity interests in Nacional Minerios S.A. in exchange for equity interests in the new entity as Nacional Minerios S.A. (which was
an available-for-sale investment of the Company) entered into a merger agreement with another entity through share exchange. The merger transaction was approved by the Company’s Board of Directors on December 12, 2014. Accordingly, the
Company classified its investment in Nacional Minerios S.A. as assets held for sale. The Company has recognized W11,996 million of impairment loss on Nacional Minerios S.A for the six-month period ended June 30, 2015 since the
fair value less cost to sell was below carrying amount. |
| (*2) |
The Company determined to make a contribution of 1 FINEX facilities in kind after inception of joint venture, and has signed in MOA with Mideast Integrated Steel Ltd. in India. The Company has classified the relating
facilities of W25,892 million as assets held for sale. |
| (*3) |
The Company determined to dispose of the shares in Poreka Co., Ltd., a subsidiary of the Company, to COMM.TOGETHER Co., LTD., and entered into a disposal contract on June 11, 2015. Accordingly, the Company
classified the accompanying assets and liabilities of the subsidiary as assets and liabilities held for sale during the six-month period ended June 30, 2015. |
| (*4) |
SPFC Co., Ltd., a subsidiary of the Company, determined to dispose of its department located in Gunsan, and classified the assets and liabilities of the accompanying department as assets and liabilities held for sale.
The Company entered into a disposal contract with DONG MYUNG Co., Ltd. on July 16, 2015, and recognized W11,118 million of impairment loss since the fair value less cost to sell was below carrying amount. |
| (*5) |
POSCO M-TECH, a subsidiary of the Company, determined to dispose of its rare metal department and some of its assets in the Molybdenum factory in Yeongwol, and classified them as assets held for sale. |
| (*6) |
The controlling company and subsidiaries of the Company (POSCO-VIETNAM Co., Ltd., PONUTech Co.,Ltd. and POSCO ICT) determined to dispose of certain tangible assets including land and disused facilities and classified
them as assets held for sale. |
17
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
| (*7) |
The Company determined to dispose of 52.2% of its shares in SeAH Changwon Integrated Special Steel (formerly, POSCO Specialty Co., Ltd) to SeAH Besteel Corp. and classified the accompanying investment in the subsidiary
as assets and liabilities held for sale during the year ended December 31, 2014. Disposal of the assets held for sale was completed during the six-month period ended June 30, 2015, and the Company recognized W161,579
million of gain on disposal of asset held for sale. |
| (*8) |
The Company determined to dispose of the shares in POSFINE Co., Ltd., a subsidiary of the Company, to Hahn & Company PRIVATE EQUITY FUND No.1, and classified the accompanying investment in the subsidiary as
assets and liabilities held for sale during the year ended December 31, 2014. Disposal of the assets and liabilities held for sale was completed during the six-month period ended June 30, 2015, and the Company recognized
W38,839 million of gain on disposal of assets held for sale. |
| (*9) |
Daewoo International Corporation, a subsidiary of the Company, determined to dispose its Daewoo Department Store located in Masan and classified the assets and liabilities of the accompanying department as assets and
liabilities held for sale. Disposal of the assets held for sale was completed during the six-month period ended June 30, 2015, and the Company recognized W121 million of gain on disposal of assets held for sale.
|
| (*10) |
Cash and cash equivalents classified as assets held for sale are included in the beginning and ending balance of statement of cash flows for the six-month period ended June 30, 2015. |
18
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
9. Investments in Associates and Joint Ventures
| (a) |
Details of investments in associates as of June 30, 2015 and December 31, 2014 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
June 30, 2015 |
|
|
December 31, 2014 |
|
| Company |
|
Number
of shares |
|
|
Ownership
(%) |
|
|
Acquisition
cost |
|
|
Book value |
|
|
Book value |
|
| [Domestic] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| EQP POSCO Global NO1 Natural Resources PEF |
|
|
178,565 |
|
|
|
28.70 |
|
|
W |
|
|
|
W |
|
|
|
|
176,899 |
|
| SeAH Changwon Integrated Special Steel (formerly, POSCO Specialty Steel Co., Ltd.) (*1,2,4) |
|
|
7,190,000 |
|
|
|
19.94 |
|
|
|
159,978 |
|
|
|
163,641 |
|
|
|
— |
|
| SNNC Co., Ltd. |
|
|
18,130,000 |
|
|
|
49.00 |
|
|
|
90,650 |
|
|
|
129,744 |
|
|
|
131,671 |
|
| QSONE Co., Ltd. |
|
|
200,000 |
|
|
|
50.00 |
|
|
|
84,395 |
|
|
|
84,010 |
|
|
|
83,849 |
|
| Incheon-Gimpo Highway Co., Ltd (*3) |
|
|
9,032,539 |
|
|
|
24.17 |
|
|
|
45,163 |
|
|
|
42,985 |
|
|
|
43,045 |
|
| UITrans LRT co., Ltd. (*3) |
|
|
4,762,293 |
|
|
|
38.19 |
|
|
|
23,811 |
|
|
|
33,033 |
|
|
|
30,098 |
|
| BLUE OCEAN private Equity Fund |
|
|
333 |
|
|
|
27.52 |
|
|
|
33,300 |
|
|
|
32,268 |
|
|
|
31,439 |
|
| CHUNGJU ENTERPRISE CITY DEVELOPMENT Co., Ltd. (*3) |
|
|
2,008,000 |
|
|
|
25.10 |
|
|
|
10,040 |
|
|
|
14,783 |
|
|
|
19,801 |
|
| KoFC POSCO HANHWA KB Shared Growth NO. 2. Private Equity Fund (*4) |
|
|
13,125,000 |
|
|
|
12.50 |
|
|
|
13,125 |
|
|
|
12,304 |
|
|
|
12,268 |
|
| Keystone-HYUNDAI SECURITIES NO. 1. Private Equity Fund |
|
|
11,000,000 |
|
|
|
35.13 |
|
|
|
11,000 |
|
|
|
9,992 |
|
|
|
— |
|
| KONES, Corp. |
|
|
3,250,000 |
|
|
|
41.67 |
|
|
|
6,893 |
|
|
|
5,935 |
|
|
|
5,430 |
|
| Others (32 companies) (*3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
61,357 |
|
|
|
33,511 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
766,384 |
|
|
|
568,011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| [Foreign] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Eureka Moly LLC |
|
|
— |
|
|
|
20.00 |
|
|
|
240,123 |
|
|
|
231,410 |
|
|
|
228,004 |
|
| South-East Asia Gas Pipeline Company Ltd. |
|
|
135,219,000 |
|
|
|
25.04 |
|
|
|
150,779 |
|
|
|
200,518 |
|
|
|
172,805 |
|
| 7623704 Canada Inc. (*4) |
|
|
114,452,000 |
|
|
|
10.40 |
|
|
|
124,341 |
|
|
|
131,658 |
|
|
|
117,100 |
|
| Nickel Mining Company SAS |
|
|
3,234,698 |
|
|
|
49.00 |
|
|
|
157,585 |
|
|
|
89,050 |
|
|
|
107,408 |
|
| AES-VCM Mong Duong Power Company Limited |
|
|
— |
|
|
|
30.00 |
|
|
|
74,161 |
|
|
|
99,619 |
|
|
|
93,021 |
|
| AMCI (WA) PTY LTD. |
|
|
49 |
|
|
|
49.00 |
|
|
|
209,664 |
|
|
|
80,154 |
|
|
|
88,050 |
|
| KOREA LNG LTD. |
|
|
2,400 |
|
|
|
20.00 |
|
|
|
135,205 |
|
|
|
76,805 |
|
|
|
72,089 |
|
| CAML RESOURCES PTY LTD. |
|
|
3,239 |
|
|
|
33.34 |
|
|
|
40,388 |
|
|
|
33,620 |
|
|
|
38,240 |
|
| NCR LLC |
|
|
— |
|
|
|
29.41 |
|
|
|
32,348 |
|
|
|
33,933 |
|
|
|
32,598 |
|
| Zhongyue POSCO (Qinhuangdao) Tinplate Industrial Co., Ltd |
|
|
10,200,000 |
|
|
|
34.00 |
|
|
|
9,517 |
|
|
|
21,464 |
|
|
|
21,032 |
|
| PT. Batutua Tembaga Raya |
|
|
128,285 |
|
|
|
24.10 |
|
|
|
14,785 |
|
|
|
14,659 |
|
|
|
14,653 |
|
| PT. Wampu Electric Power (*3) |
|
|
8,400,000 |
|
|
|
20.00 |
|
|
|
9,684 |
|
|
|
7,721 |
|
|
|
7,611 |
|
| POSCO SeAH Steel Wire(Nantong) Co., Ltd. |
|
|
50 |
|
|
|
25.00 |
|
|
|
4,723 |
|
|
|
7,372 |
|
|
|
6,969 |
|
| Others (24 companies) (*3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
54,424 |
|
|
|
59,210 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,082,407 |
|
|
|
1,058,790 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
1,626,801 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
During the six-month period ended June 30, 2015, the Company disposed of 52.2% of shares in SeAH Changwon Integrated Special Steel Corp. (formerly, POSCO Specialty Steel Co., Ltd), which resulted in the
Company’s loss of control, and the Company classified the remaining investment as investment in an associate, which was initially recognized at its fair value based on the external valuation report. |
| (*2) |
During the six-month period ended June 30, 2015, POSCO Specialty Steel Co., Ltd changed its corporate name to SeAH Changwon Integrated Special Steel Corp. |
| (*3) |
As of June 30, 2015, investment in associates amounting to W99,353 million is provided as collateral related to associates’ borrowings. |
| (*4) |
As of June 30, 2015, it was classified as an associate in spite of less than 20% of ownership percentage since the Company is determined to have significant influence over the investee when considering its
structure of the Board of Directors. |
19
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
| (b) |
Details of investments in joint ventures as of June 30, 2015 and December 31, 2014 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
June 30, 2015 |
|
|
December 31, 2014 |
|
| Company |
|
Number
of shares |
|
|
Ownership
(%) |
|
|
Acquisition
cost |
|
|
Book value |
|
|
Book value |
|
| [Domestic] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| POSCO MITSUBISHI CARBOND TECHNOLOGY |
|
|
11,568,000 |
|
|
|
60.00 |
|
|
W |
|
|
|
W |
|
|
|
|
112,837 |
|
| POSCO ES MATERIALS |
|
|
1,000,000 |
|
|
|
50.00 |
|
|
|
43,000 |
|
|
|
37,763 |
|
|
|
38,021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
147,717 |
|
|
|
150,858 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| [Foreign] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Roy Hill Holdings Pty Ltd. (*1) |
|
|
13,117,972 |
|
|
|
12.50 |
|
|
|
1,528,672 |
|
|
|
1,193,040 |
|
|
|
1,268,678 |
|
| POSCO-NPS Niobium LLC |
|
|
325,050,000 |
|
|
|
50.00 |
|
|
|
364,609 |
|
|
|
365,454 |
|
|
|
357,874 |
|
| CSP-Compania Siderurgica do Pecem |
|
|
827,771,230 |
|
|
|
20.00 |
|
|
|
469,891 |
|
|
|
205,635 |
|
|
|
260,906 |
|
| DMSA, AMSA (*2) |
|
|
— |
|
|
|
4.00 |
|
|
|
193,182 |
|
|
|
154,818 |
|
|
|
165,094 |
|
| BX STEEL POSCO Cold Rolled Sheet Co., Ltd. |
|
|
— |
|
|
|
25.00 |
|
|
|
61,961 |
|
|
|
101,070 |
|
|
|
98,893 |
|
| KOBRASCO |
|
|
2,010,719,185 |
|
|
|
50.00 |
|
|
|
32,950 |
|
|
|
75,332 |
|
|
|
99,787 |
|
| Others (11 companies) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
39,040 |
|
|
|
31,616 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,134,389 |
|
|
|
2,282,848 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
2,433,706 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
As of June 30, 2015 and December 31, 2014, the entire investment in the joint venture is provided as collateral in relation to loans from project financing of the joint venture. |
| (*2) |
As of June 30, 2015 and December 31, 2014, the entire investment in the joint venture is provided as collateral for the joint venture’s guarantees. |
20
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
| (c) |
The movements of investments in associates and joint ventures for the six-month period ended June 30, 2015 and the year ended December 31, 2014 were as follows: |
| |
1) |
For the six-month period ended June 30, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Company |
|
December 31, 2014
Book value |
|
|
Acquisition |
|
|
Dividend |
|
|
Share of
profits (losses) |
|
|
Other increase
(decrease) (*1) |
|
|
June 30, 2015
Book value |
|
| [Domestic] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| EQP POSCO Global NO 1 Natural Resources PEF |
|
W |
|
|
|
|
— |
|
|
|
— |
|
|
|
(567 |
) |
|
|
— |
|
|
|
176,332 |
|
| SeAH Changwon Integrated Special Steel (formerly, POSCO Specialty Steel Co., Ltd.) |
|
|
— |
|
|
|
159,978 |
|
|
|
— |
|
|
|
3,670 |
|
|
|
(7 |
) |
|
|
163,641 |
|
| SNNC Co., Ltd. |
|
|
131,671 |
|
|
|
— |
|
|
|
— |
|
|
|
(1,927 |
) |
|
|
— |
|
|
|
129,744 |
|
| QSONE Co., Ltd. |
|
|
83,849 |
|
|
|
— |
|
|
|
— |
|
|
|
161 |
|
|
|
— |
|
|
|
84,010 |
|
| Incheon-Gimpo Highway Co., Ltd |
|
|
43,045 |
|
|
|
— |
|
|
|
— |
|
|
|
(199 |
) |
|
|
139 |
|
|
|
42,985 |
|
| UITrans LRT co., Ltd. |
|
|
30,098 |
|
|
|
1,833 |
|
|
|
— |
|
|
|
1,160 |
|
|
|
(58 |
) |
|
|
33,033 |
|
| BLUE OCEAN private Equity Fund |
|
|
31,439 |
|
|
|
— |
|
|
|
— |
|
|
|
2,086 |
|
|
|
(1,257 |
) |
|
|
32,268 |
|
| CHUNGJU ENTERPRISE CITY DEVELOPMENT Co., Ltd. |
|
|
19,801 |
|
|
|
— |
|
|
|
— |
|
|
|
(5,018 |
) |
|
|
— |
|
|
|
14,783 |
|
| KoFC POSCO HANHWA KB Shared Growth NO. 2. Private Equity Fund |
|
|
12,268 |
|
|
|
— |
|
|
|
— |
|
|
|
36 |
|
|
|
— |
|
|
|
12,304 |
|
| Keystone-HYUNDAI SECURITIES NO. 1. Private Equity Fund |
|
|
— |
|
|
|
11,000 |
|
|
|
— |
|
|
|
(1,080 |
) |
|
|
72 |
|
|
|
9,992 |
|
| KONES, Corp. |
|
|
5,430 |
|
|
|
— |
|
|
|
— |
|
|
|
505 |
|
|
|
— |
|
|
|
5,935 |
|
| POSCO MITSUBISHI CARBOND TECHNOLOGY |
|
|
112,837 |
|
|
|
— |
|
|
|
— |
|
|
|
(2,883 |
) |
|
|
— |
|
|
|
109,954 |
|
| POSCO ES MATERIALS |
|
|
38,021 |
|
|
|
— |
|
|
|
— |
|
|
|
(237 |
) |
|
|
(21 |
) |
|
|
37,763 |
|
| Others (32 companies) |
|
|
33,511 |
|
|
|
27,873 |
|
|
|
— |
|
|
|
1,963 |
|
|
|
(1,990 |
) |
|
|
61,357 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
718,869 |
|
|
|
200,684 |
|
|
|
— |
|
|
|
(2,330 |
) |
|
|
(3,122 |
) |
|
|
914,101 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| [Foreign] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Eureka Moly LLC |
|
|
228,004 |
|
|
|
— |
|
|
|
— |
|
|
|
(968 |
) |
|
|
4,374 |
|
|
|
231,410 |
|
| South-East Asia Gas Pipeline Company Ltd. |
|
|
172,805 |
|
|
|
— |
|
|
|
— |
|
|
|
23,255 |
|
|
|
4,458 |
|
|
|
200,518 |
|
| 7623704 Canada Inc. |
|
|
117,100 |
|
|
|
— |
|
|
|
(52 |
) |
|
|
11,669 |
|
|
|
2,941 |
|
|
|
131,658 |
|
| Nickel Mining Company SAS |
|
|
107,408 |
|
|
|
— |
|
|
|
— |
|
|
|
(11,449 |
) |
|
|
(6,909 |
) |
|
|
89,050 |
|
| AES-VCM Mong Duong Power Company Limited |
|
|
93,021 |
|
|
|
— |
|
|
|
— |
|
|
|
1,798 |
|
|
|
4,800 |
|
|
|
99,619 |
|
| AMCI (WA) PTY LTD. |
|
|
88,050 |
|
|
|
— |
|
|
|
— |
|
|
|
(4,331 |
) |
|
|
(3,565 |
) |
|
|
80,154 |
|
| KOREA LNG LTD. |
|
|
72,089 |
|
|
|
— |
|
|
|
(7,791 |
) |
|
|
7,830 |
|
|
|
4,677 |
|
|
|
76,805 |
|
| CAML RESOURCES PTY LTD. |
|
|
38,240 |
|
|
|
— |
|
|
|
— |
|
|
|
(1,592 |
) |
|
|
(3,028 |
) |
|
|
33,620 |
|
| NCR LLC |
|
|
32,598 |
|
|
|
— |
|
|
|
— |
|
|
|
(5 |
) |
|
|
1,340 |
|
|
|
33,933 |
|
| Zhongyue POSCO (Qinhuangdao) Tinplate Industrial Co., Ltd |
|
|
21,032 |
|
|
|
— |
|
|
|
— |
|
|
|
(82 |
) |
|
|
514 |
|
|
|
21,464 |
|
| PT. Batutua Tembaga Raya |
|
|
14,653 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6 |
|
|
|
14,659 |
|
| PT. Wampu Electric Power |
|
|
7,611 |
|
|
|
656 |
|
|
|
— |
|
|
|
(703 |
) |
|
|
157 |
|
|
|
7,721 |
|
| POSCO SeAH Steel Wire(Nantong) Co., Ltd. |
|
|
6,969 |
|
|
|
— |
|
|
|
— |
|
|
|
198 |
|
|
|
205 |
|
|
|
7,372 |
|
| Roy Hill Holdings Pty Ltd. |
|
|
1,268,678 |
|
|
|
— |
|
|
|
— |
|
|
|
(33,397 |
) |
|
|
(42,241 |
) |
|
|
1,193,040 |
|
| POSCO-NPS Niobium LLC |
|
|
357,874 |
|
|
|
— |
|
|
|
(6,427 |
) |
|
|
5,909 |
|
|
|
8,098 |
|
|
|
365,454 |
|
| CSP - Compania Siderurgica do Pecem |
|
|
260,906 |
|
|
|
— |
|
|
|
— |
|
|
|
(33,107 |
) |
|
|
(22,164 |
) |
|
|
205,635 |
|
| DMSA/AMSA |
|
|
165,094 |
|
|
|
— |
|
|
|
— |
|
|
|
(13,760 |
) |
|
|
3,484 |
|
|
|
154,818 |
|
| BX STEEL POSCO Cold Rolled Sheet Co., Ltd. |
|
|
98,893 |
|
|
|
— |
|
|
|
— |
|
|
|
190 |
|
|
|
1,987 |
|
|
|
101,070 |
|
| KOBRASCO |
|
|
99,787 |
|
|
|
— |
|
|
|
(24,380 |
) |
|
|
12,799 |
|
|
|
(12,874 |
) |
|
|
75,332 |
|
| Others (35 companies) |
|
|
90,826 |
|
|
|
1,528 |
|
|
|
(1,666 |
) |
|
|
(975 |
) |
|
|
3,751 |
|
|
|
93,464 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,341,638 |
|
|
|
2,184 |
|
|
|
(40,316 |
) |
|
|
(36,721 |
) |
|
|
(49,989 |
) |
|
|
3,216,796 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
202,868 |
|
|
|
(40,316 |
) |
|
|
(39,051 |
) |
|
|
(53,111 |
) |
|
|
4,130,897 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
Other increase or decrease represents the changes in investments in associates and joint ventures due to capital adjustments arising from translations of financial statements of foreign investees and others.
|
21
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
| |
2) |
For the year ended December 31, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Company |
|
December 31, 2013
Book value |
|
|
Acquisition |
|
|
Dividend |
|
|
Share of
profits (losses) |
|
|
Other increase
(decrease) (*1) |
|
|
December 31, 2014
Book value |
|
| [Domestic] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| EQP POSCO Global NO 1 Natural Resources PEF |
|
W |
|
|
|
|
— |
|
|
|
— |
|
|
|
(664 |
) |
|
|
— |
|
|
|
176,899 |
|
| SNNC Co., Ltd. |
|
|
123,969 |
|
|
|
— |
|
|
|
(5,149 |
) |
|
|
13,873 |
|
|
|
(1,022 |
) |
|
|
131,671 |
|
| QSONE Co., Ltd. |
|
|
84,096 |
|
|
|
— |
|
|
|
— |
|
|
|
(247 |
) |
|
|
— |
|
|
|
83,849 |
|
| Incheon-Gimpo Highway Co., Ltd |
|
|
37,759 |
|
|
|
8,331 |
|
|
|
— |
|
|
|
(340 |
) |
|
|
(2,705 |
) |
|
|
43,045 |
|
| UITrans LRT co., Ltd. |
|
|
19,185 |
|
|
|
2,330 |
|
|
|
— |
|
|
|
8,583 |
|
|
|
— |
|
|
|
30,098 |
|
| BLUE OCEAN private Equity Fund |
|
|
29,391 |
|
|
|
— |
|
|
|
— |
|
|
|
2,193 |
|
|
|
(145 |
) |
|
|
31,439 |
|
| CHUNGJU ENTERPRISE CITY DEVELOPMENT Co., Ltd. |
|
|
23,733 |
|
|
|
— |
|
|
|
— |
|
|
|
(3,714 |
) |
|
|
(218 |
) |
|
|
19,801 |
|
| KoFC POSCO HANHWA KB Shared Growth NO. 2. Private Equity Fund |
|
|
6,685 |
|
|
|
6,113 |
|
|
|
— |
|
|
|
(530 |
) |
|
|
— |
|
|
|
12,268 |
|
| KONES, Corp. |
|
|
5,784 |
|
|
|
— |
|
|
|
— |
|
|
|
(378 |
) |
|
|
24 |
|
|
|
5,430 |
|
| POSCO MITSUBISHI CARBOND TECHNOLOGY |
|
|
115,708 |
|
|
|
— |
|
|
|
— |
|
|
|
(2,835 |
) |
|
|
(36 |
) |
|
|
112,837 |
|
| POSCO ES MATERIALS |
|
|
40,386 |
|
|
|
— |
|
|
|
— |
|
|
|
(2,229 |
) |
|
|
(136 |
) |
|
|
38,021 |
|
| POSCO PLANTEC Co., Ltd. |
|
|
234,203 |
|
|
|
25,356 |
|
|
|
— |
|
|
|
(210,616 |
) |
|
|
(48,943 |
) |
|
|
— |
|
| Others (32 companies) |
|
|
57,757 |
|
|
|
12,875 |
|
|
|
— |
|
|
|
(24,638 |
) |
|
|
(12,483 |
) |
|
|
33,511 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
956,219 |
|
|
|
55,005 |
|
|
|
(5,149 |
) |
|
|
(221,542 |
) |
|
|
(65,664 |
) |
|
|
718,869 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| [Foreign] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Eureka Moly LLC |
|
|
217,513 |
|
|
|
— |
|
|
|
— |
|
|
|
(37 |
) |
|
|
10,528 |
|
|
|
228,004 |
|
| South-East Asia Gas Pipeline Company Ltd. |
|
|
140,202 |
|
|
|
— |
|
|
|
— |
|
|
|
25,638 |
|
|
|
6,965 |
|
|
|
172,805 |
|
| 7623704 Canada Inc. |
|
|
119,516 |
|
|
|
— |
|
|
|
(5,505 |
) |
|
|
(1,678 |
) |
|
|
4,767 |
|
|
|
117,100 |
|
| Nickel Mining Company SAS |
|
|
135,178 |
|
|
|
— |
|
|
|
— |
|
|
|
(17,391 |
) |
|
|
(10,379 |
) |
|
|
107,408 |
|
| AES-VCM Mong Duong Power Company Limited |
|
|
81,436 |
|
|
|
— |
|
|
|
— |
|
|
|
(3,845 |
) |
|
|
15,430 |
|
|
|
93,021 |
|
| AMCI (WA) PTY LTD. |
|
|
98,467 |
|
|
|
— |
|
|
|
— |
|
|
|
(6,477 |
) |
|
|
(3,940 |
) |
|
|
88,050 |
|
| KOREA LNG LTD. |
|
|
64,453 |
|
|
|
— |
|
|
|
(18,668 |
) |
|
|
18,613 |
|
|
|
7,691 |
|
|
|
72,089 |
|
| CAML RESOURCES PTY LTD. |
|
|
43,820 |
|
|
|
— |
|
|
|
— |
|
|
|
(2,191 |
) |
|
|
(3,389 |
) |
|
|
38,240 |
|
| NCR LLC |
|
|
30,496 |
|
|
|
— |
|
|
|
— |
|
|
|
(3,984 |
) |
|
|
6,086 |
|
|
|
32,598 |
|
| Zhongyue POSCO (Qinhuangdao) Tinplate Industrial Co., Ltd |
|
|
20,600 |
|
|
|
— |
|
|
|
(352 |
) |
|
|
378 |
|
|
|
406 |
|
|
|
21,032 |
|
| PT. Batutua Tembaga Raya |
|
|
— |
|
|
|
14,785 |
|
|
|
— |
|
|
|
— |
|
|
|
(132 |
) |
|
|
14,653 |
|
| PT. Wampu Electric Power |
|
|
7,237 |
|
|
|
— |
|
|
|
— |
|
|
|
134 |
|
|
|
240 |
|
|
|
7,611 |
|
| POSCO SeAH Steel Wire(Nantong) Co., Ltd. |
|
|
6,083 |
|
|
|
— |
|
|
|
— |
|
|
|
679 |
|
|
|
207 |
|
|
|
6,969 |
|
| Roy Hill Holdings Pty Ltd. |
|
|
825,901 |
|
|
|
530,492 |
|
|
|
— |
|
|
|
(14,783 |
) |
|
|
(72,932 |
) |
|
|
1,268,678 |
|
| POSCO-NPS Niobium LLC |
|
|
343,590 |
|
|
|
— |
|
|
|
(16,414 |
) |
|
|
16,370 |
|
|
|
14,328 |
|
|
|
357,874 |
|
| CSP - Compania Siderurgica do Pecem |
|
|
263,419 |
|
|
|
75,966 |
|
|
|
— |
|
|
|
(57,127 |
) |
|
|
(21,352 |
) |
|
|
260,906 |
|
| DMSA/AMSA |
|
|
180,355 |
|
|
|
— |
|
|
|
— |
|
|
|
(21,793 |
) |
|
|
6,532 |
|
|
|
165,094 |
|
| BX STEEL POSCO Cold Rolled Sheet Co., Ltd. |
|
|
96,309 |
|
|
|
— |
|
|
|
— |
|
|
|
943 |
|
|
|
1,641 |
|
|
|
98,893 |
|
| KOBRASCO |
|
|
95,233 |
|
|
|
— |
|
|
|
(18,429 |
) |
|
|
30,356 |
|
|
|
(7,373 |
) |
|
|
99,787 |
|
| Others (35 companies) |
|
|
82,666 |
|
|
|
50,605 |
|
|
|
(2,708 |
) |
|
|
(42,156 |
) |
|
|
2,419 |
|
|
|
90,826 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,852,474 |
|
|
|
671,848 |
|
|
|
(62,076 |
) |
|
|
(78,351 |
) |
|
|
(42,257 |
) |
|
|
3,341,638 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
726,853 |
|
|
|
(67,225 |
) |
|
|
(299,893 |
) |
|
|
(107,921 |
) |
|
|
4,060,507 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
Other increase or decrease represents the changes in investments in associates and joint ventures due to capital adjustments arising from translations of financial statements of foreign investees and others.
|
22
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
(d) Summarized financial information of associates and joint ventures as of and for the six-month period
ended June 30, 2015 and as of and for the year ended December 31, 2014 is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Company |
|
Assets |
|
|
Liabilities |
|
|
Equity |
|
|
Sales |
|
|
Net income
(loss) |
|
| [Domestic] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| EQP POSCO Global NO1 Natural Resources PEF |
|
W |
|
|
|
|
1,032 |
|
|
|
614,080 |
|
|
|
— |
|
|
|
(1,989 |
) |
| SeAH Changwon Integrated Special Steel (formerly, POSCO Specialty Steel Co., Ltd.) |
|
|
1,254,147 |
|
|
|
539,702 |
|
|
|
714,445 |
|
|
|
541,686 |
|
|
|
9,932 |
|
| SNNC Co., Ltd. |
|
|
840,776 |
|
|
|
555,957 |
|
|
|
284,819 |
|
|
|
278,695 |
|
|
|
(13,532 |
) |
| QSONE Co.,Ltd. |
|
|
249,542 |
|
|
|
81,521 |
|
|
|
168,021 |
|
|
|
6,069 |
|
|
|
322 |
|
| Incheon-Gimpo Highway Co., Ltd |
|
|
512,665 |
|
|
|
336,840 |
|
|
|
175,825 |
|
|
|
— |
|
|
|
(788 |
) |
| UITrans LRT co., Ltd. |
|
|
208,695 |
|
|
|
152,757 |
|
|
|
55,938 |
|
|
|
— |
|
|
|
(415 |
) |
| BLUE OCEAN private Equity Fund |
|
|
376,501 |
|
|
|
259,250 |
|
|
|
117,251 |
|
|
|
305,172 |
|
|
|
7,578 |
|
| CHUNGJU ENTERPRISE CITY DEVELOPMENT Co., Ltd. |
|
|
220,614 |
|
|
|
193,360 |
|
|
|
27,254 |
|
|
|
7,716 |
|
|
|
(19,992 |
) |
| KoFC POSCO HANHWA KB Shared Growth NO. 2. Private Equity Fund |
|
|
99,907 |
|
|
|
1,477 |
|
|
|
98,430 |
|
|
|
1,944 |
|
|
|
284 |
|
| Keystone-HYUNDAI SECURITIES NO. 1. Private Equity Fund |
|
|
46,808 |
|
|
|
13,099 |
|
|
|
33,709 |
|
|
|
— |
|
|
|
(3,338 |
) |
| KONES, Corp. |
|
|
3,319 |
|
|
|
1,505 |
|
|
|
1,814 |
|
|
|
2,022 |
|
|
|
1,214 |
|
| POSCO MITSUBISHI CARBOND TECHNOLOGY |
|
|
434,036 |
|
|
|
251,728 |
|
|
|
182,308 |
|
|
|
— |
|
|
|
(4,804 |
) |
| POSCO ES MATERIALS |
|
|
72,387 |
|
|
|
28,417 |
|
|
|
43,970 |
|
|
|
10,861 |
|
|
|
(475 |
) |
| [Foreign] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| South-East Asia Gas Pipeline Company Ltd. |
|
|
2,080,830 |
|
|
|
1,280,047 |
|
|
|
800,783 |
|
|
|
232,357 |
|
|
|
92,869 |
|
| 7623704 Canada Inc. |
|
|
1,278,099 |
|
|
|
2 |
|
|
|
1,278,097 |
|
|
|
— |
|
|
|
125,647 |
|
| Nickel Mining Company SAS |
|
|
424,046 |
|
|
|
188,044 |
|
|
|
236,002 |
|
|
|
65,849 |
|
|
|
(13,292 |
) |
| KOREA LNG LTD. |
|
|
402,453 |
|
|
|
76 |
|
|
|
402,377 |
|
|
|
40,198 |
|
|
|
39,151 |
|
| CAML RESOURCES PTY LTD. |
|
|
148,679 |
|
|
|
37,646 |
|
|
|
111,033 |
|
|
|
88,002 |
|
|
|
(4,775 |
) |
| Zhongyue POSCO (Qinhuangdao)
Tinplate Industrial Co., Ltd |
|
|
140,369 |
|
|
|
71,659 |
|
|
|
68,710 |
|
|
|
66,205 |
|
|
|
(279 |
) |
| PT. Batutua Tembaga Raya |
|
|
203,512 |
|
|
|
188,682 |
|
|
|
14,830 |
|
|
|
— |
|
|
|
— |
|
| PT. Wampu Electric Power |
|
|
168,398 |
|
|
|
132,895 |
|
|
|
35,503 |
|
|
|
6,203 |
|
|
|
(3,516 |
) |
| POSCO SeAH Steel Wire(Nantong) Co., Ltd. |
|
|
65,183 |
|
|
|
36,373 |
|
|
|
28,810 |
|
|
|
34,174 |
|
|
|
674 |
|
| Roy Hill Holdings Pty Ltd. |
|
|
8,475,432 |
|
|
|
5,501,729 |
|
|
|
2,973,703 |
|
|
|
— |
|
|
|
(267,177 |
) |
| POSCO-NPS Niobium LLC |
|
|
730,706 |
|
|
|
— |
|
|
|
730,706 |
|
|
|
— |
|
|
|
11,817 |
|
| CSP - Compania Siderurgica do Pecem |
|
|
3,871,854 |
|
|
|
2,623,800 |
|
|
|
1,248,054 |
|
|
|
— |
|
|
|
(145,524 |
) |
| DMSA/AMSA |
|
|
8,979,157 |
|
|
|
6,166,016 |
|
|
|
2,813,141 |
|
|
|
403,448 |
|
|
|
(269,181 |
) |
| BX STEEL POSCO Cold Rolled Sheet Co., Ltd. |
|
|
653,872 |
|
|
|
277,206 |
|
|
|
376,666 |
|
|
|
513,427 |
|
|
|
756 |
|
| KOBRASCO |
|
|
193,285 |
|
|
|
42,621 |
|
|
|
150,664 |
|
|
|
39,217 |
|
|
|
37,747 |
|
23
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Company |
|
Assets |
|
|
Liabilities |
|
|
Equity |
|
|
Sales |
|
|
Net income
(loss) |
|
| [Domestic] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| EQP POSCO Global NO 1 Natural Resources PEF |
|
W |
|
|
|
|
1,044 |
|
|
|
620,916 |
|
|
|
— |
|
|
|
(576 |
) |
| SNNC Co., Ltd. |
|
|
826,597 |
|
|
|
528,246 |
|
|
|
298,351 |
|
|
|
345,836 |
|
|
|
41,117 |
|
| QSONE Co., Ltd. |
|
|
247,590 |
|
|
|
79,891 |
|
|
|
167,699 |
|
|
|
13,674 |
|
|
|
(603 |
) |
| Incheon-Gimpo Highway Co., Ltd |
|
|
337,639 |
|
|
|
172,464 |
|
|
|
165,175 |
|
|
|
— |
|
|
|
(1,148 |
) |
| UITrans LRT co., Ltd. |
|
|
169,574 |
|
|
|
117,996 |
|
|
|
51,578 |
|
|
|
— |
|
|
|
(887 |
) |
| BLUE OCEAN private Equity Fund |
|
|
361,810 |
|
|
|
247,573 |
|
|
|
114,237 |
|
|
|
574,476 |
|
|
|
8,489 |
|
| CHUNGJU ENTERPRISE CITY DEVELOPMENT Co., Ltd. |
|
|
256,207 |
|
|
|
208,960 |
|
|
|
47,247 |
|
|
|
5,240 |
|
|
|
(14,798 |
) |
| KoFC POSCO HANHWA KB Shared Growth NO. 2. Private Equity Fund |
|
|
100,063 |
|
|
|
1,917 |
|
|
|
98,146 |
|
|
|
1,932 |
|
|
|
(4,238 |
) |
| KONES, Corp. |
|
|
3,756 |
|
|
|
3,155 |
|
|
|
601 |
|
|
|
7,269 |
|
|
|
(907 |
) |
| POSCO MITSUBISHI CARBOND TECHNOLOGY |
|
|
405,387 |
|
|
|
218,275 |
|
|
|
187,112 |
|
|
|
— |
|
|
|
(4,725 |
) |
| POSCO ES MATERIALS |
|
|
64,088 |
|
|
|
19,602 |
|
|
|
44,486 |
|
|
|
13,403 |
|
|
|
(4,459 |
) |
|
|
|
|
|
|
| [Foreign] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| South-East Asia Gas Pipeline Company Ltd. |
|
|
1,997,068 |
|
|
|
1,306,957 |
|
|
|
690,111 |
|
|
|
353,439 |
|
|
|
102,385 |
|
| 7623704 Canada Inc. |
|
|
1,138,126 |
|
|
|
4 |
|
|
|
1,138,122 |
|
|
|
— |
|
|
|
(612 |
) |
| Nickel Mining Company SAS |
|
|
410,230 |
|
|
|
140,860 |
|
|
|
269,370 |
|
|
|
133,975 |
|
|
|
(24,800 |
) |
| KOREA LNG LTD. |
|
|
393,581 |
|
|
|
45 |
|
|
|
393,536 |
|
|
|
94,936 |
|
|
|
93,067 |
|
| CAML RESOURCES PTY LTD. |
|
|
159,281 |
|
|
|
38,591 |
|
|
|
120,690 |
|
|
|
172,093 |
|
|
|
(6,570 |
) |
| Zhongyue POSCO (Qinhuangdao) Tinplate Industrial Co., Ltd |
|
|
148,077 |
|
|
|
80,538 |
|
|
|
67,539 |
|
|
|
186,733 |
|
|
|
1,112 |
|
| PT. Batutua Tembaga Raya |
|
|
100,142 |
|
|
|
151,591 |
|
|
|
(51,449 |
) |
|
|
1,309 |
|
|
|
(2,110 |
) |
| PT. Wampu Electric Power |
|
|
172,950 |
|
|
|
138,012 |
|
|
|
34,938 |
|
|
|
43,184 |
|
|
|
670 |
|
| POSCO SeAH Steel Wire(Nantong) Co., Ltd. |
|
|
66,097 |
|
|
|
38,572 |
|
|
|
27,525 |
|
|
|
80,059 |
|
|
|
2,636 |
|
| Roy Hill Holdings Pty Ltd. |
|
|
6,809,416 |
|
|
|
3,431,438 |
|
|
|
3,377,978 |
|
|
|
— |
|
|
|
(118,264 |
) |
| POSCO-NPS Niobium LLC |
|
|
715,546 |
|
|
|
— |
|
|
|
715,546 |
|
|
|
— |
|
|
|
32,741 |
|
| CSP - Compania Siderurgica do Pecem |
|
|
3,060,008 |
|
|
|
1,467,004 |
|
|
|
1,593,004 |
|
|
|
— |
|
|
|
(90,649 |
) |
| DMSA/AMSA |
|
|
8,938,860 |
|
|
|
5,918,665 |
|
|
|
3,020,195 |
|
|
|
695,505 |
|
|
|
(544,837 |
) |
| BX STEEL POSCO Cold Rolled Sheet Co., Ltd. |
|
|
816,813 |
|
|
|
448,854 |
|
|
|
367,959 |
|
|
|
1,290,490 |
|
|
|
3,771 |
|
| KOBRASCO |
|
|
234,595 |
|
|
|
35,021 |
|
|
|
199,574 |
|
|
|
99,677 |
|
|
|
60,712 |
|
24
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
10. Joint Operations
Details of significant joint operations that the Company is participating in as a party to a joint arrangement as of June 30, 2015 are as follows:
|
|
|
|
|
|
|
| Joint operations |
|
Operation |
|
Ownership (%) |
|
Location |
| Myanmar A-1/A-3 mine |
|
Mine development |
|
51.00 |
|
Myanmar |
| Offshore midstream |
|
Mine development |
|
51.00 |
|
Myanmar |
| Greenhills mine |
|
Mine development |
|
20.00 |
|
Canada |
| Actos Anthracite coal project |
|
Mine development |
|
50.00 |
|
Canada |
| Mt. Thorley J/V |
|
Mine development |
|
20.00 |
|
Australia |
| POSMAC J/V |
|
Mine development |
|
20.00 |
|
Australia |
| CD J/V |
|
Mine development |
|
5.00 |
|
Australia |
| Intergra Coal J/V |
|
Mine development |
|
2.35 |
|
Australia |
| RUM J/V |
|
Mine development |
|
10.00 |
|
Australia |
| Camberwell Coal J/V |
|
Mine development |
|
8.39 |
|
Australia |
11. Investment Property, Net
Changes in the carrying value of investment property for the six-month period ended June 30, 2015 and the year ended December 31, 2014 were as
follows:
| (a) |
For the six-month period ended June 30, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Beginning |
|
|
Acquisitions |
|
|
Business
combination |
|
|
Depreciation |
|
|
Others(*1) |
|
|
Ending |
|
| Land |
|
W |
|
|
|
|
2,665 |
|
|
|
5,964 |
|
|
|
— |
|
|
|
(82,771 |
) |
|
|
341,370 |
|
| Buildings |
|
|
591,647 |
|
|
|
50,046 |
|
|
|
26,750 |
|
|
|
(12,469 |
) |
|
|
56,671 |
|
|
|
712,645 |
|
| Structures |
|
|
2,060 |
|
|
|
— |
|
|
|
— |
|
|
|
(118 |
) |
|
|
725 |
|
|
|
2,667 |
|
| Construction-in-progress |
|
|
46,373 |
|
|
|
8,209 |
|
|
|
— |
|
|
|
— |
|
|
|
(17,382 |
) |
|
|
37,200 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
60,920 |
|
|
|
32,714 |
|
|
|
(12,587 |
) |
|
|
(42,757 |
) |
|
|
1,093,882 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
Includes reclassification resulting from changing purpose of use, adjustment of foreign currency translation difference and others. |
| (b) |
For the year ended December 31, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Beginning |
|
|
Acquisitions |
|
|
Business
combination |
|
|
Disposals |
|
|
Depreciation(*1) |
|
|
Others(*2) |
|
|
Ending |
|
| Land |
|
W |
|
|
|
|
97,883 |
|
|
|
13 |
|
|
|
(20,500 |
) |
|
|
— |
|
|
|
176,614 |
|
|
|
415,512 |
|
| Buildings |
|
|
239,193 |
|
|
|
195,722 |
|
|
|
208 |
|
|
|
(19,212 |
) |
|
|
(12,858 |
) |
|
|
188,594 |
|
|
|
591,647 |
|
| Structures |
|
|
3,599 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(413 |
) |
|
|
(1,126 |
) |
|
|
2,060 |
|
| Construction-in-progress |
|
|
20,935 |
|
|
|
112,998 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(87,560 |
) |
|
|
46,373 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
406,603 |
|
|
|
221 |
|
|
|
(39,712 |
) |
|
|
(13,271 |
) |
|
|
276,522 |
|
|
|
1,055,592 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
Impairment losses of investment property amounting to W23 million are included. |
| (*2) |
Includes reclassification resulting from changing purpose of use, adjustment of foreign currency translation difference and others. |
25
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
12. Property, Plant and Equipment, Net
Changes in the carrying value of property, plant and equipment for the six-month period ended June 30, 2015 and the year ended December 31, 2014 were
as follows:
| (a) |
For the six-month period ended June 30, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Beginning |
|
|
Acquisitions |
|
|
Business
combination |
|
|
Disposals |
|
|
Depreciation
(*1) |
|
|
Others(*2) |
|
|
Ending |
|
| Land |
|
W |
|
|
|
|
33,080 |
|
|
|
12,520 |
|
|
|
(26,878 |
) |
|
|
(1,517 |
) |
|
|
(73,525 |
) |
|
|
2,744,968 |
|
| Buildings |
|
|
5,359,324 |
|
|
|
8,402 |
|
|
|
56,156 |
|
|
|
(15,415 |
) |
|
|
(164,866 |
) |
|
|
24,354 |
|
|
|
5,267,955 |
|
| Structures |
|
|
3,030,163 |
|
|
|
21,833 |
|
|
|
— |
|
|
|
(2,377 |
) |
|
|
(106,950 |
) |
|
|
65,851 |
|
|
|
3,008,520 |
|
| Machinery and equipment |
|
|
21,199,885 |
|
|
|
90,244 |
|
|
|
301 |
|
|
|
(54,915 |
) |
|
|
(1,106,988 |
) |
|
|
1,371,573 |
|
|
|
21,500,100 |
|
| Vehicles |
|
|
56,695 |
|
|
|
6,684 |
|
|
|
— |
|
|
|
(534 |
) |
|
|
(9,101 |
) |
|
|
1,824 |
|
|
|
55,568 |
|
| Tools |
|
|
64,069 |
|
|
|
13,344 |
|
|
|
1,714 |
|
|
|
(455 |
) |
|
|
(15,278 |
) |
|
|
9,079 |
|
|
|
72,473 |
|
| Furniture and fixtures |
|
|
143,782 |
|
|
|
17,538 |
|
|
|
1,497 |
|
|
|
(393 |
) |
|
|
(30,559 |
) |
|
|
7,972 |
|
|
|
139,837 |
|
| Capital lease assets |
|
|
80,081 |
|
|
|
58 |
|
|
|
157 |
|
|
|
(22 |
) |
|
|
(5,257 |
) |
|
|
21,273 |
|
|
|
96,290 |
|
| Construction-in-progress |
|
|
2,505,908 |
|
|
|
1,148,958 |
|
|
|
— |
|
|
|
(3,269 |
) |
|
|
(15,650 |
) |
|
|
(1,597,212 |
) |
|
|
2,038,735 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
1,340,141 |
|
|
|
72,345 |
|
|
|
(104,258 |
) |
|
|
(1,456,166 |
) |
|
|
(168,811 |
) |
|
|
34,924,446 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
Impairment losses of property, plant and equipment amounting to W71,908 million are included. |
| (*2) |
Includes reclassifications for changing purpose of use, adjustments of foreign currency translation differences and others. |
| (b) |
For the year ended December 31, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Beginning |
|
|
Acquisitions |
|
|
Business
combination |
|
|
Disposals |
|
|
Depreciation
(*1) |
|
|
Others(*2) |
|
|
Ending |
|
| Land |
|
W |
|
|
|
|
92,645 |
|
|
|
146,755 |
|
|
|
(10,410 |
) |
|
|
(1,839 |
) |
|
|
(133,873 |
) |
|
|
2,801,288 |
|
| Buildings |
|
|
4,888,835 |
|
|
|
97,701 |
|
|
|
72,483 |
|
|
|
(18,968 |
) |
|
|
(372,445 |
) |
|
|
691,718 |
|
|
|
5,359,324 |
|
| Structures |
|
|
2,784,587 |
|
|
|
42,341 |
|
|
|
15,525 |
|
|
|
(3,517 |
) |
|
|
(223,487 |
) |
|
|
414,714 |
|
|
|
3,030,163 |
|
| Machinery and equipment |
|
|
19,442,836 |
|
|
|
372,448 |
|
|
|
26,998 |
|
|
|
(45,777 |
) |
|
|
(2,194,014 |
) |
|
|
3,597,394 |
|
|
|
21,199,885 |
|
| Vehicles |
|
|
51,033 |
|
|
|
17,665 |
|
|
|
614 |
|
|
|
(2,136 |
) |
|
|
(20,166 |
) |
|
|
9,685 |
|
|
|
56,695 |
|
| Tools |
|
|
62,853 |
|
|
|
29,351 |
|
|
|
4,210 |
|
|
|
(578 |
) |
|
|
(33,480 |
) |
|
|
1,713 |
|
|
|
64,069 |
|
| Furniture and fixtures |
|
|
173,152 |
|
|
|
41,113 |
|
|
|
1,599 |
|
|
|
(2,291 |
) |
|
|
(70,938 |
) |
|
|
1,147 |
|
|
|
143,782 |
|
| Capital lease assets |
|
|
100,524 |
|
|
|
2,710 |
|
|
|
— |
|
|
|
(31 |
) |
|
|
(29,825 |
) |
|
|
6,703 |
|
|
|
80,081 |
|
| Construction-in-progress |
|
|
5,548,289 |
|
|
|
2,804,568 |
|
|
|
19,156 |
|
|
|
(14,088 |
) |
|
|
— |
|
|
|
(5,852,017 |
) |
|
|
2,505,908 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
3,500,542 |
|
|
|
287,340 |
|
|
|
(97,796 |
) |
|
|
(2,946,194 |
) |
|
|
(1,262,816 |
) |
|
|
35,241,195 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
Impairment losses of property, plant and equipment amounting to W64,833 million are included. |
| (*2) |
Includes reclassifications for changing purpose of use, adjustments of foreign currency translation differences and others. |
26
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
13. Goodwill and Other Intangible Assets, Net
Changes in the carrying value of goodwill and other intangible assets for the six-month period ended June 30, 2015 and the year ended December 31,
2014 were as follows:
| (a) |
For the six-month period ended June 30, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Beginning |
|
|
Acquisitions |
|
|
Disposals |
|
|
Amortization |
|
|
Impairment
loss |
|
|
Others(*2) |
|
|
Ending |
|
| Goodwill |
|
W |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(37,531 |
) |
|
|
(8,581 |
) |
|
|
1,749,032 |
|
| Intellectual property rights |
|
|
2,762,679 |
|
|
|
74,919 |
|
|
|
— |
|
|
|
(86,238 |
) |
|
|
— |
|
|
|
(5,003 |
) |
|
|
2,746,357 |
|
| Premium in rental(*1) |
|
|
130,942 |
|
|
|
7,060 |
|
|
|
(5,462 |
) |
|
|
(121 |
) |
|
|
(5 |
) |
|
|
2,663 |
|
|
|
135,077 |
|
| Development expense |
|
|
168,746 |
|
|
|
3,306 |
|
|
|
— |
|
|
|
(28,667 |
) |
|
|
(3,034 |
) |
|
|
5,120 |
|
|
|
145,471 |
|
| Port facilities usage rights |
|
|
156,444 |
|
|
|
— |
|
|
|
— |
|
|
|
(4,600 |
) |
|
|
— |
|
|
|
— |
|
|
|
151,844 |
|
| Exploration and evaluation assets |
|
|
92,459 |
|
|
|
45,854 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(47 |
) |
|
|
138,266 |
|
| Customer relationships |
|
|
641,625 |
|
|
|
— |
|
|
|
— |
|
|
|
(26,427 |
) |
|
|
— |
|
|
|
(376 |
) |
|
|
614,822 |
|
| Power generation permit |
|
|
539,405 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
539,405 |
|
| Other intangible assets |
|
|
597,545 |
|
|
|
33,105 |
|
|
|
(3,287 |
) |
|
|
(40,444 |
) |
|
|
(363 |
) |
|
|
(3,494 |
) |
|
|
583,062 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
164,244 |
|
|
|
(8,749 |
) |
|
|
(186,497 |
) |
|
|
(40,933 |
) |
|
|
(9,718 |
) |
|
|
6,803,336 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
Premium in rental includes memberships with indefinite useful lives. |
| (*2) |
Includes translation adjustment and reclassifications. |
| (b) |
For the year ended December 31, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Beginning |
|
|
Acquisitions |
|
|
Business
combination |
|
|
Disposals |
|
|
Amortization |
|
|
Impairment
loss |
|
|
Others(*3) |
|
|
Ending |
|
| Goodwill(*1) |
|
W |
|
|
|
|
— |
|
|
|
187,285 |
|
|
|
— |
|
|
|
— |
|
|
|
(11,297 |
) |
|
|
3,218 |
|
|
|
1,795,144 |
|
| Intellectual property rights |
|
|
1,474,859 |
|
|
|
199,850 |
|
|
|
32 |
|
|
|
(218 |
) |
|
|
(143,548 |
) |
|
|
(27,720 |
) |
|
|
1,259,424 |
|
|
|
2,762,679 |
|
| Premium in rental(*2) |
|
|
131,267 |
|
|
|
8,775 |
|
|
|
1,661 |
|
|
|
(4,484 |
) |
|
|
(265 |
) |
|
|
(2,609 |
) |
|
|
(3,403 |
) |
|
|
130,942 |
|
| Development expense |
|
|
61,102 |
|
|
|
18,032 |
|
|
|
2,659 |
|
|
|
(3,484 |
) |
|
|
(56,453 |
) |
|
|
(9,366 |
) |
|
|
156,256 |
|
|
|
168,746 |
|
| Port facilities usage rights |
|
|
167,111 |
|
|
|
433 |
|
|
|
— |
|
|
|
— |
|
|
|
(12,462 |
) |
|
|
— |
|
|
|
1,362 |
|
|
|
156,444 |
|
| Exploration and evaluation assets |
|
|
359,748 |
|
|
|
32,191 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(718 |
) |
|
|
(298,762 |
) |
|
|
92,459 |
|
| Mining development assets |
|
|
968,191 |
|
|
|
1,484 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(969,675 |
) |
|
|
— |
|
| Customer relationships |
|
|
692,880 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(53,969 |
) |
|
|
— |
|
|
|
2,714 |
|
|
|
641,625 |
|
| Power generation permit(*4) |
|
|
— |
|
|
|
— |
|
|
|
539,405 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
539,405 |
|
| Other intangible assets(*5) |
|
|
458,744 |
|
|
|
262,076 |
|
|
|
88,808 |
|
|
|
(665 |
) |
|
|
(77,243 |
) |
|
|
(717 |
) |
|
|
(133,458 |
) |
|
|
597,545 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
522,841 |
|
|
|
819,850 |
|
|
|
(8,851 |
) |
|
|
(343,940 |
) |
|
|
(52,427 |
) |
|
|
17,676 |
|
|
|
6,884,989 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
During the year ended December 31, 2014, goodwill arising from business combination amounting to W180,418 million were included in relation to the acquisition of POSCO Plantec Co., Ltd.
|
| (*2) |
Premium in rental includes memberships with indefinite useful lives. |
| (*3) |
Includes translation adjustment and reclassifications. |
| (*4) |
POSCO ENERGY CO., LTD. recognized power generation permit amounting to W539,405 million in relation to operation permit for electricity business when acquiring POSPOWER CO., Ltd. |
| (*5) |
During the year ended December 31, 2014, POSCO ENGINEERING & CONSTRUCTION., LTD. recognized other intangible assets amounting to W169,000 million in relation to project financing
agreements on the Urban Development Project in Gaepo-dong, Seoul. |
27
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
14. Other Assets
Other current assets and other long-term assets as of June 30, 2015 and December 31, 2014 are as follows:
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
June 30, 2015 |
|
|
December 31, 2014 |
|
| Current |
|
|
|
|
|
|
|
|
| Advance payment |
|
W |
|
|
|
|
845,114 |
|
| Prepaid expenses |
|
|
125,150 |
|
|
|
129,914 |
|
| Others |
|
|
2,673 |
|
|
|
1,397 |
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
976,425 |
|
|
|
|
|
|
|
|
|
|
| Non-current |
|
|
|
|
|
|
|
|
| Long-term advance payment |
|
W |
|
|
|
|
3,454 |
|
| Long-term prepaid expenses |
|
|
399,037 |
|
|
|
243,933 |
|
| Others(*1) |
|
|
239,098 |
|
|
|
260,162 |
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
507,549 |
|
|
|
|
|
|
|
|
|
|
| (*1) |
As of June 30, 2015 and December 31, 2014, the Company recognized tax assets amounting to W124,982 million and W132,060 million, respectively, in connection with the
additional income tax payment for prior years as a result of tax audits that were finalized in 2014 based on the Company’s best estimate of the tax amounts to be paid when the result of the Company’s appeal is finalized. |
28
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
15. Borrowings
| (a) |
Short-term borrowings and current portion of long-term borrowings as of June 30, 2015 and December 31, 2014 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
|
|
|
|
| |
Bank |
|
Interest (%) |
|
June 30, 2015 |
|
|
December 31, 2014 |
|
| Short-term borrowings |
|
|
|
|
|
|
|
|
|
|
|
|
| Bank overdrafts |
|
Bank of America and others |
|
0.3~5.6 |
|
W |
|
|
|
|
105,673 |
|
| Short-term borrowings |
|
HSBC Bank and others |
|
0.1~11.5 |
|
|
9,413,299 |
|
|
|
9,138,804 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,625,577 |
|
|
|
9,244,477 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Current portion of long-term liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
| Current portion of
long-term borrowings |
|
Export-Import Bank of Korea and others |
|
0.5~8.5 |
|
|
1,267,639 |
|
|
|
1,159,090 |
|
| Current portion of foreign loan(*1) |
|
NATIXIS |
|
2.0 |
|
|
394 |
|
|
|
418 |
|
| Current portion of debentures |
|
Korean Development Bank and others |
|
1.3~5.7 |
|
|
2,955,080 |
|
|
|
1,793,252 |
|
| Less : Current portion of discount on debentures issued |
|
|
|
|
|
|
(1,059 |
) |
|
|
(1,753 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,222,054 |
|
|
|
2,951,007 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
12,195,484 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
Korea Development Bank has provided guarantees related to the foreign loan. |
| (b) |
Long-term borrowings, excluding current portion as of June 30, 2015 and December 31, 2014 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
|
|
|
|
|
|
|
|
|
| |
Bank |
|
Interest (%) |
|
June 30, 2015 |
|
|
December 31, 2014 |
|
| Long-term borrowings |
|
Export-Import Bank of Korea and others |
|
0.4~9.8 |
|
W |
|
|
|
|
7,359,773 |
|
| Less : Present value discount |
|
|
|
|
|
|
(93,211 |
) |
|
|
(109,949 |
) |
| Foreign loan(*1) |
|
NATIXIS |
|
2.0 |
|
|
395 |
|
|
|
627 |
|
| Bonds |
|
Korean Development Bank and others |
|
0.9~6.3 |
|
|
6,911,673 |
|
|
|
8,009,547 |
|
| Less : Discount on debentures issued |
|
|
|
|
|
|
(23,506 |
) |
|
|
(27,225 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
15,232,773 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
Korea Development Bank has provided guarantees related to the foreign loan. |
| (c) |
Property, plant and equipment, trade accounts and notes receivable, financial assets, available-for-sale financial assets, inventories and other assets amounting to W6,360,096 million,
W20,550 million (one hundred seven sheets of notes receivable), W42,063 million, W6,852 million, W369,980 million and W157,034 million, respectively, are provided
as collateral related to short-term borrowings, long-term borrowings and debentures. |
29
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
16. Other Payables
Other payables as of June 30, 2015 and December 31, 2014 are as follows:
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
June 30, 2015 |
|
|
December 31, 2014 |
|
| Current |
|
|
|
|
|
|
|
|
| Accounts payable |
|
W |
|
|
|
|
1,082,676 |
|
| Accrued expenses |
|
|
720,188 |
|
|
|
740,250 |
|
| Dividend payable |
|
|
12,116 |
|
|
|
12,077 |
|
| Finance lease liabilities |
|
|
25,063 |
|
|
|
21,888 |
|
| Withholdings |
|
|
362,124 |
|
|
|
337,822 |
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
2,194,713 |
|
|
|
|
|
|
|
|
|
|
| Non-current |
|
|
|
|
|
|
|
|
| Accounts payable |
|
W |
|
|
|
|
81,344 |
|
| Accrued expenses |
|
|
24,444 |
|
|
|
25,886 |
|
| Finance lease liabilities |
|
|
18,047 |
|
|
|
24,815 |
|
| Long-term withholdings |
|
|
27,291 |
|
|
|
37,941 |
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
169,986 |
|
|
|
|
|
|
|
|
|
|
17. Other Financial Liabilities
Other financial liabilities as of June 30, 2015 and December 31, 2014 are as follows:
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
June 30, 2015 |
|
|
December 31, 2014 |
|
| Current |
|
|
|
|
|
|
|
|
| Derivatives liabilities(*1) |
|
W |
|
|
|
|
84,146 |
|
| Financial guarantee liabilities |
|
|
71,103 |
|
|
|
27,491 |
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
111,637 |
|
|
|
|
|
|
|
|
|
|
| Non-current |
|
|
|
|
|
|
|
|
| Derivatives liabilities |
|
W |
|
|
|
|
64,926 |
|
| Financial guarantee liabilities |
|
|
20,313 |
|
|
|
26,169 |
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
91,095 |
|
|
|
|
|
|
|
|
|
|
| (*1) |
The Company assessed the values of the call option of SeAH Besteel Corp. in relation to the residual equity held by the Company upon the disposal of SeAH Changwon Integrated Special Steel (formerly, POSCO Specialty Co.,
Ltd). Accordingly, the Company has recognized derivatives liabilities amounting to W16,710 million as of June 30, 2015. |
30
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
18. Provisions
| (a) |
Provisions as of June 30, 2015 and December 31, 2014 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
June 30, 2015 |
|
|
December 31, 2014 |
|
| |
Current |
|
|
Non-current |
|
|
Current |
|
|
Non-current |
|
| Provision for bonus payments |
|
W |
|
|
|
|
— |
|
|
|
49,505 |
|
|
|
— |
|
| Provision for construction warranties |
|
|
13,710 |
|
|
|
62,031 |
|
|
|
16,352 |
|
|
|
63,996 |
|
| Provision for legal contingencies and claims(*1) |
|
|
— |
|
|
|
50,559 |
|
|
|
— |
|
|
|
50,424 |
|
| Provision for restoration(*2) |
|
|
23,438 |
|
|
|
24,694 |
|
|
|
39,336 |
|
|
|
35,462 |
|
| Others (*3,4) |
|
|
17,127 |
|
|
|
82,988 |
|
|
|
44,837 |
|
|
|
73,357 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
220,272 |
|
|
|
150,030 |
|
|
|
223,239 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
The Company recognized probable outflow of resources amounting to W44,227 million and W44,309 million as provisions for legal contingencies and asserted claims in relation to lawsuits
against the Company as of June 30, 2015 and December 31, 2014, respectively. |
| (*2) |
Due to contamination of land near the Company’s magnesium smelting plant located in Gangneung, a provision has been recognized with a present value of estimated costs for recovery. In order to compute the estimated
costs, the Company has assumed that it would use all of the currently available technologies and materials to recover the land. In addition, the Company has applied a discount rate of 2.64% to measure present value of these costs. |
| (*3) |
During the six-month period ended June 30, 2015 and the year ended December 31, 2014, POSCO ENERGY CO., LTD., a subsidiary of the Company, recognized W41,850 million and
W31,577 million of provisions for warranties, respectively, for the service contract on fuel cell based on its best estimate of probable outflow of resources. |
| (*4) |
As of June 30, 2015 and December 31, 2014, the amount includes a provision of W23,600 million for expected outflow of resources in connection with the performance guarantee for the
Hwaseong-Dongtan complexes development projects of POSCO ENGINEERING & CONSTRUCTION Co., Ltd. |
| (b) |
Changes in provisions for the six-month period ended June 30, 2015 and the year ended December 31, 2014 were as follows: |
| |
1) |
For the six-month period ended June 30, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Beginning |
|
|
Increase |
|
|
Utilization |
|
|
Reversal |
|
|
Others(*1) |
|
|
Ending |
|
| Provision for bonus payments |
|
W |
|
|
|
|
23,290 |
|
|
|
(30,902 |
) |
|
|
(1,020 |
) |
|
|
(99 |
) |
|
|
40,774 |
|
| Provision for construction warranties |
|
|
80,348 |
|
|
|
11,636 |
|
|
|
(9,504 |
) |
|
|
(1,355 |
) |
|
|
(5,384 |
) |
|
|
75,741 |
|
| Provision for legal contingencies and claims |
|
|
50,424 |
|
|
|
1,566 |
|
|
|
— |
|
|
|
— |
|
|
|
(1,431 |
) |
|
|
50,559 |
|
| Provision for restoration |
|
|
74,798 |
|
|
|
2,131 |
|
|
|
(28,898 |
) |
|
|
— |
|
|
|
101 |
|
|
|
48,132 |
|
| Others |
|
|
118,194 |
|
|
|
16,963 |
|
|
|
(31,014 |
) |
|
|
(3,783 |
) |
|
|
(245 |
) |
|
|
100,115 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
55,586 |
|
|
|
(100,318 |
) |
|
|
(6,158 |
) |
|
|
(7,058 |
) |
|
|
315,321 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
Includes adjustments of foreign currency translation differences and others. |
31
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
| |
2) |
For the year ended December 31, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Beginning |
|
|
Increase |
|
|
Utilization |
|
|
Reversal |
|
|
Others(*1) |
|
|
Ending |
|
| Provision for bonus payments |
|
W |
|
|
|
|
45,071 |
|
|
|
(46,761 |
) |
|
|
(1,646 |
) |
|
|
464 |
|
|
|
49,505 |
|
| Provision for construction warranties |
|
|
55,696 |
|
|
|
34,410 |
|
|
|
(15,719 |
) |
|
|
(4,677 |
) |
|
|
10,638 |
|
|
|
80,348 |
|
| Provision for legal contingencies and claims |
|
|
30,330 |
|
|
|
15,289 |
|
|
|
— |
|
|
|
(7,716 |
) |
|
|
12,521 |
|
|
|
50,424 |
|
| Provision for restoration |
|
|
4,385 |
|
|
|
89,565 |
|
|
|
(19,328 |
) |
|
|
— |
|
|
|
176 |
|
|
|
74,798 |
|
| Others |
|
|
110,813 |
|
|
|
282,406 |
|
|
|
(258,571 |
) |
|
|
(19,523 |
) |
|
|
3,069 |
|
|
|
118,194 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
466,741 |
|
|
|
(340,379 |
) |
|
|
(33,562 |
) |
|
|
26,868 |
|
|
|
373,269 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
Includes adjustments of foreign currency translation differences and others. |
19. Employee Benefits
| (a) |
Defined contribution plans |
The expenses related to post-employment benefit plans under defined
contribution plans for the three-month and six-month periods ended June 30, 2015 and 2014 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
For the three-month periods
ended June 30 |
|
|
For the six-month periods
ended June 30 |
|
| |
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
| Expense related to post-employment benefit plans under defined contribution plans |
|
W |
|
|
|
|
5,812 |
|
|
|
13,026 |
|
|
|
11,553 |
|
| |
1) |
The amounts recognized in relation to defined benefit obligations in the statements of financial position as of June 30, 2015 and December 31, 2014 are as follows: |
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
June 30, 2015 |
|
|
December 31, 2014 |
|
| Present value of funded obligations |
|
W |
|
|
|
|
1,713,074 |
|
| Fair value of plan assets |
|
|
(1,418,780 |
) |
|
|
(1,427,918 |
) |
| Present value of non-funded obligations |
|
|
8,884 |
|
|
|
5,169 |
|
|
|
|
|
|
|
|
|
|
| Net defined benefit liabilities |
|
W |
|
|
|
|
290,325 |
|
|
|
|
|
|
|
|
|
|
32
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
| |
2) |
Changes in present value of defined benefit obligations for the six-month period ended June 30, 2015 and the year ended December 31, 2014 were as follows: |
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
June 30, 2015 |
|
|
December 31, 2014 |
|
| Defined benefit obligation at the beginning of period |
|
W |
|
|
|
|
1,520,643 |
|
| Current service costs |
|
|
124,479 |
|
|
|
230,445 |
|
| Interest costs |
|
|
24,255 |
|
|
|
54,737 |
|
| Remeasurement |
|
|
29,981 |
|
|
|
85,166 |
|
| Business combinations |
|
|
— |
|
|
|
48,695 |
|
| Benefits paid |
|
|
(114,644 |
) |
|
|
(160,792 |
) |
| Others |
|
|
2,510 |
|
|
|
(60,651 |
) |
|
|
|
|
|
|
|
|
|
| Defined benefit obligation at the end of period |
|
W |
|
|
|
|
1,718,243 |
|
|
|
|
|
|
|
|
|
|
| |
3) |
Changes in fair value of plan assets for the six-month period ended June 30, 2015 and the year ended December 31, 2014 were as follows: |
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
June 30, 2015 |
|
|
December 31, 2014 |
|
| Fair value of plan assets at the beginning of period |
|
W |
|
|
|
|
1,247,483 |
|
| Interest on plan assets |
|
|
21,122 |
|
|
|
47,296 |
|
| Remeasurement of plan assets |
|
|
(2,511 |
) |
|
|
(11,236 |
) |
| Contributions to plan assets |
|
|
64,444 |
|
|
|
273,867 |
|
| Business combinations |
|
|
— |
|
|
|
30,863 |
|
| Benefits paid |
|
|
(86,854 |
) |
|
|
(109,352 |
) |
| Others |
|
|
(5,339 |
) |
|
|
(51,003 |
) |
|
|
|
|
|
|
|
|
|
| Fair value of plan assets at the end of period |
|
W |
|
|
|
|
1,427,918 |
|
|
|
|
|
|
|
|
|
|
| |
4) |
The amounts recognized in condensed consolidated interim statements of comprehensive income (loss) for the three-month and six-month periods ended June 30, 2015 and 2014 were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
For the six-month periods
ended June 30 |
|
|
For the six-month periods
ended June 30 |
|
| (in millions of Won) |
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
| Current service costs |
|
W |
|
|
|
|
56,720 |
|
|
|
124,479 |
|
|
|
113,938 |
|
| Net interest costs |
|
|
1,693 |
|
|
|
2,083 |
|
|
|
3,133 |
|
|
|
3,883 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
58,803 |
|
|
|
127,612 |
|
|
|
117,821 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
33
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
20. Other Liabilities
Other liabilities as of June 30, 2015 and December 31, 2014 are as follows:
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
June 30, 2015 |
|
|
December 31, 2014 |
|
| Other current liabilities |
|
|
|
|
|
|
|
|
| Due to customers for contract work |
|
W |
|
|
|
|
1,041,946 |
|
| Advances received |
|
|
766,675 |
|
|
|
763,168 |
|
| Unearned revenue |
|
|
17,881 |
|
|
|
21,627 |
|
| Withholdings |
|
|
182,143 |
|
|
|
167,002 |
|
| Others (*1) |
|
|
187,016 |
|
|
|
236,021 |
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
2,229,764 |
|
|
|
|
|
|
|
|
|
|
| Other long-term liabilities |
|
|
|
|
|
|
|
|
| Advances received |
|
W |
|
|
|
|
108,496 |
|
| Unearned revenue |
|
|
970 |
|
|
|
1,170 |
|
| Others (*1) |
|
|
52,042 |
|
|
|
45,987 |
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
155,653 |
|
|
|
|
|
|
|
|
|
|
| (*1) |
Includes other current liabilities amounting to W168,648 million, W214,731 million and other long-term liabilities amounting to W9,084 million and
W8,819 million as of June 30, 2015 and December, 31 2014, respectively, due to proportionate consolidation of joint operations which are owned by POSCO’s subsidiaries. |
21. Financial Instruments
| (a) |
Classification of financial instruments |
| |
1) |
Financial assets as of June 30, 2015 and December 31, 2014 are as follows: |
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
June 30, 2015 |
|
|
December 31, 2014 |
|
| Financial assets at fair value through profit or loss Derivatives assets held for trading |
|
W |
|
|
|
|
96,266 |
|
| Available-for-sale financial assets |
|
|
2,285,039 |
|
|
|
2,420,241 |
|
| Held-to-maturity investments |
|
|
23,442 |
|
|
|
17,093 |
|
| Loans and receivables |
|
|
20,993,223 |
|
|
|
19,501,763 |
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
22,035,363 |
|
|
|
|
|
|
|
|
|
|
34
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
| |
2) |
Financial liabilities as of June 30, 2015 and December 31, 2014 are as follows: |
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
June 30, 2015 |
|
|
December 31, 2014 |
|
| Financial liabilities at fair value through profit or loss |
|
|
|
|
|
|
|
|
| Derivatives liabilities held for trading |
|
W |
|
|
|
|
149,072 |
|
|
|
|
|
|
|
|
|
|
| Financial liabilities measured at amortized cost |
|
|
|
|
|
|
|
|
| Trade accounts payable |
|
|
3,557,663 |
|
|
|
4,039,255 |
|
| Borrowings |
|
|
27,785,290 |
|
|
|
27,428,257 |
|
| Financial guarantee liabilities |
|
|
91,416 |
|
|
|
53,660 |
|
| Others |
|
|
2,008,422 |
|
|
|
2,101,354 |
|
|
|
|
|
|
|
|
|
|
|
|
|
33,442,791 |
|
|
|
33,622,526 |
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
33,771,598 |
|
|
|
|
|
|
|
|
|
|
| |
3) |
Finance income and costs by category of financial instrument for the six-month periods ended June 30, 2015 and 2014 were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Finance income and costs |
|
| (in millions of Won) |
|
Interest
income (cost) |
|
|
Gain and loss
on valuation |
|
|
Gain and loss
on foreign
currency |
|
|
Gain and loss
on disposal |
|
|
Impairment
loss |
|
|
Others |
|
|
Total |
|
|
Other
comprehensive
income (loss) |
|
| Financial assets at fair value through profit or loss |
|
W |
|
|
|
|
72,851 |
|
|
|
— |
|
|
|
142,976 |
|
|
|
— |
|
|
|
— |
|
|
|
215,827 |
|
|
|
— |
|
| Available-for-sale financial assets |
|
|
1,449 |
|
|
|
— |
|
|
|
— |
|
|
|
57,760 |
|
|
|
(63,440 |
) |
|
|
47,007 |
|
|
|
42,776 |
|
|
|
(26,650 |
) |
| Held-to-maturity investments |
|
|
216 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
18 |
|
|
|
234 |
|
|
|
— |
|
| Loans and receivables |
|
|
103,989 |
|
|
|
— |
|
|
|
98,736 |
|
|
|
(8,177 |
) |
|
|
— |
|
|
|
(84 |
) |
|
|
194,464 |
|
|
|
— |
|
| Financial liabilities at fair value through profit or loss |
|
|
— |
|
|
|
(62,920 |
) |
|
|
— |
|
|
|
(108,440 |
) |
|
|
— |
|
|
|
— |
|
|
|
(171,360 |
) |
|
|
— |
|
| Financial liabilities at amortized cost |
|
|
(424,401 |
) |
|
|
— |
|
|
|
(185,437 |
) |
|
|
— |
|
|
|
— |
|
|
|
(53,567 |
) |
|
|
(663,405 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
9,931 |
|
|
|
(86,701 |
) |
|
|
84,119 |
|
|
|
(63,440 |
) |
|
|
(6,626 |
) |
|
|
(381,464 |
) |
|
|
(26,650 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Finance income and costs |
|
| (in millions of Won) |
|
Interest
income (cost) |
|
|
Gain and loss
on valuation |
|
|
Gain and loss
on foreign
currency |
|
|
Gain and loss
on disposal |
|
|
Impairment
loss |
|
|
Others |
|
|
Total |
|
|
Other
comprehensive
income (loss) |
|
| Financial assets at fair value through profit or loss |
|
W |
|
|
|
|
130,430 |
|
|
|
— |
|
|
|
137,775 |
|
|
|
— |
|
|
|
— |
|
|
|
268,205 |
|
|
|
— |
|
| Available-for-sale financial assets |
|
|
43 |
|
|
|
— |
|
|
|
— |
|
|
|
119,192 |
|
|
|
(13,884 |
) |
|
|
37,662 |
|
|
|
143,013 |
|
|
|
(294,389 |
) |
| Held-to-maturity investments |
|
|
21 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
37 |
|
|
|
58 |
|
|
|
— |
|
| Loans and receivables |
|
|
114,174 |
|
|
|
— |
|
|
|
(195,085 |
) |
|
|
(10,243 |
) |
|
|
— |
|
|
|
(66 |
) |
|
|
(91,220 |
) |
|
|
— |
|
| Financial liabilities at fair value through profit or loss |
|
|
— |
|
|
|
(109,754 |
) |
|
|
— |
|
|
|
(131,756 |
) |
|
|
— |
|
|
|
— |
|
|
|
(241,510 |
) |
|
|
— |
|
| Financial liabilities at amortized cost |
|
|
(406,139 |
) |
|
|
— |
|
|
|
379,245 |
|
|
|
(17,631 |
) |
|
|
— |
|
|
|
(9,605 |
) |
|
|
(54,130 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
20,676 |
|
|
|
184,160 |
|
|
|
97,337 |
|
|
|
(13,884 |
) |
|
|
28,028 |
|
|
|
24,416 |
|
|
|
(294,389 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
35
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
| |
4) |
Finance income and costs by category of financial instrument for the three-month periods ended June 30, 2015 and 2014 were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Finance income and costs |
|
|
|
|
| |
|
Interest
income (cost) |
|
|
Gain and loss
on valuation |
|
|
Gain and loss
on foreign
currency |
|
|
Gain and loss
on disposal |
|
|
Impairment
loss |
|
|
Others |
|
|
Total |
|
|
Other
comprehensive
income (loss) |
|
| Financial assets at fair value through profit or loss |
|
W |
|
|
|
|
7,815 |
|
|
|
— |
|
|
|
64,660 |
|
|
|
— |
|
|
|
— |
|
|
|
72,475 |
|
|
|
— |
|
| Available-for-sale financial assets |
|
|
796 |
|
|
|
— |
|
|
|
— |
|
|
|
55,206 |
|
|
|
(38,904 |
) |
|
|
9,035 |
|
|
|
26,133 |
|
|
|
(37,346 |
) |
| Held-to-maturity investments |
|
|
99 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9 |
|
|
|
108 |
|
|
|
— |
|
| Loans and receivables |
|
|
40,187 |
|
|
|
— |
|
|
|
123,814 |
|
|
|
(4,235 |
) |
|
|
— |
|
|
|
(44 |
) |
|
|
159,722 |
|
|
|
— |
|
| Financial liabilities at fair value through profit or loss |
|
|
— |
|
|
|
(875 |
) |
|
|
— |
|
|
|
(58,261 |
) |
|
|
— |
|
|
|
— |
|
|
|
(59,136 |
) |
|
|
— |
|
| Financial liabilities at amortized cost |
|
|
(210,057 |
) |
|
|
— |
|
|
|
(201,514 |
) |
|
|
— |
|
|
|
— |
|
|
|
(46,960 |
) |
|
|
(458,531 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
6,940 |
|
|
|
(77,700 |
) |
|
|
57,370 |
|
|
|
(38,904 |
) |
|
|
(37,960 |
) |
|
|
(259,229 |
) |
|
|
(37,346 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Finance income and costs |
|
|
|
|
| |
|
Interest
income (cost) |
|
|
Gain and loss
on valuation |
|
|
Gain and loss
on foreign
currency |
|
|
Gain and loss
on disposal |
|
|
Impairment
loss |
|
|
Others |
|
|
Total |
|
|
Other
comprehensive
income (loss) |
|
| Financial assets at fair value through profit or loss |
|
W |
|
|
|
|
107,611 |
|
|
|
— |
|
|
|
92,873 |
|
|
|
— |
|
|
|
— |
|
|
|
200,484 |
|
|
|
— |
|
| Available-for-sale financial assets |
|
|
(21 |
) |
|
|
— |
|
|
|
— |
|
|
|
110,487 |
|
|
|
(12,306 |
) |
|
|
8,215 |
|
|
|
106,375 |
|
|
|
(89,932 |
) |
| Held-to-maturity investments |
|
|
11 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
15 |
|
|
|
26 |
|
|
|
— |
|
| Loans and receivables |
|
|
53,233 |
|
|
|
— |
|
|
|
(329,056 |
) |
|
|
(5,140 |
) |
|
|
— |
|
|
|
(29 |
) |
|
|
(280,992 |
) |
|
|
— |
|
| Financial liabilities at fair value through profit or loss |
|
|
— |
|
|
|
(131,327 |
) |
|
|
— |
|
|
|
(94,593 |
) |
|
|
— |
|
|
|
— |
|
|
|
(225,920 |
) |
|
|
— |
|
| Financial liabilities at amortized cost |
|
|
(226,321 |
) |
|
|
— |
|
|
|
612,150 |
|
|
|
(19,131 |
) |
|
|
— |
|
|
|
(6,732 |
) |
|
|
359,966 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
(23,716 |
) |
|
|
283,094 |
|
|
|
84,496 |
|
|
|
(12,306 |
) |
|
|
1,469 |
|
|
|
159,939 |
|
|
|
(89,932 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
36
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
| |
1) |
Fair value and book value |
The carrying amount and the fair value of financial instruments as
of June 30, 2015 and December 31, 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
June 30, 2015 |
|
|
December 31, 2014 |
|
| |
|
Book value |
|
|
Fair value |
|
|
Book value |
|
|
Fair value |
|
| Assets measured at fair value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Available-for-sale financial assets(*1) |
|
W |
|
|
|
|
1,909,302 |
|
|
|
1,963,289 |
|
|
|
1,963,289 |
|
| Derivatives assets held for trading(*2) |
|
|
143,258 |
|
|
|
143,258 |
|
|
|
96,266 |
|
|
|
96,266 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,052,560 |
|
|
|
2,052,560 |
|
|
|
2,059,555 |
|
|
|
2,059,555 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Assets measured amortized cost(*3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents |
|
|
4,208,728 |
|
|
|
4,208,728 |
|
|
|
3,811,202 |
|
|
|
3,811,202 |
|
| Trade accounts and notes receivable, net |
|
|
11,198,009 |
|
|
|
11,198,009 |
|
|
|
11,865,391 |
|
|
|
11,865,391 |
|
| Loans and other receivables, net |
|
|
5,586,486 |
|
|
|
5,586,486 |
|
|
|
3,825,170 |
|
|
|
3,825,170 |
|
| Held-to-maturity investments |
|
|
23,442 |
|
|
|
23,442 |
|
|
|
17,093 |
|
|
|
17,093 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21,016,665 |
|
|
|
21,016,665 |
|
|
|
19,518,856 |
|
|
|
19,518,856 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities measured at fair value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Derivatives liabilities held for trading(*2) |
|
|
190,749 |
|
|
|
190,749 |
|
|
|
149,072 |
|
|
|
149,072 |
|
| Liabilities measured amortized cost(*3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Trade accounts and notes payable |
|
|
3,557,663 |
|
|
|
3,557,663 |
|
|
|
4,039,255 |
|
|
|
4,039,255 |
|
| Borrowings |
|
|
27,785,290 |
|
|
|
28,199,284 |
|
|
|
27,428,257 |
|
|
|
27,756,615 |
|
| Financial guarantee liabilities |
|
|
91,416 |
|
|
|
91,416 |
|
|
|
53,660 |
|
|
|
53,660 |
|
| Others |
|
|
2,008,422 |
|
|
|
2,008,422 |
|
|
|
2,101,354 |
|
|
|
2,101,354 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
33,856,785 |
|
|
|
33,622,526 |
|
|
|
33,950,884 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
The fair value of available-for-sale financial assets publicly traded is measured at the closing bid price quoted at the end of the reporting period. Meanwhile, the fair value of unquoted available-for-sale financial
assets is calculated using the valuation results from an external pricing service in which weighted average cost of capital of evaluated companies are used as a discount rate. The book value of available-for-sale financial assets accounted for at
cost is not included. |
| (*2) |
The fair value of derivatives is measured using valuation models such as Black-Scholes model, binominal lattice model and others in which the market yields on government bonds are used as a discount rate.
|
| (*3) |
The fair value of financial assets and liabilities measured at amortized cost is determined at the present value of estimated future cash flows discounted at the current market interest rate. The fair value is
calculated for the disclosures in the notes. On the other hand, the Company has not performed fair value measurement for the financial assets and liabilities measured at amortized cost except borrowings since the fair value is close to their
carrying amounts. |
37
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
| |
2) |
The fair value hierarchy |
The fair values of financial instruments by fair value hierarchy as
of June 30, 2015 and December 31, 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
| Financial assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Available-for-sale financial assets |
|
W |
|
|
|
|
— |
|
|
|
196,736 |
|
|
|
1,909,302 |
|
| Derivatives assets held for trading |
|
|
— |
|
|
|
96,904 |
|
|
|
46,354 |
|
|
|
143,258 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
96,904 |
|
|
|
243,090 |
|
|
|
2,052,560 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Financial liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Derivatives liabilities held for trading |
|
W |
|
|
|
|
174,039 |
|
|
|
16,710 |
|
|
|
190,749 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
| Financial assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Available-for-sale financial assets |
|
W |
|
|
|
|
— |
|
|
|
154,905 |
|
|
|
1,963,289 |
|
| Derivatives assets held for trading |
|
|
— |
|
|
|
96,266 |
|
|
|
— |
|
|
|
96,266 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
96,266 |
|
|
|
154,905 |
|
|
|
2,059,555 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Financial liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Derivatives liabilities held for trading |
|
W |
|
|
|
|
149,072 |
|
|
|
— |
|
|
|
149,072 |
|
| (c) |
Financial risk management |
The Company is exposed to credit risk, liquidity risk and market risk arising from
financial assets and liabilities. The Company’s financial risk management objectives and policies are consistent with those disclosed in the consolidated financial statements as of and for the year ended December 31, 2014.
38
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
22. Share Capital and Capital Surplus
| (a) |
Share capital as of June 30, 2015 and December 31, 2014 are as follows: |
|
|
|
|
|
|
|
|
|
| (Share, in Won) |
|
June 30, 2015 |
|
|
December 31, 2014 |
|
| Authorized shares |
|
W |
|
|
|
|
200,000,000 |
|
| Par value |
|
|
5,000 |
|
|
|
5,000 |
|
| Issued shares(*1) |
|
|
87,186,835 |
|
|
|
87,186,835 |
|
| Shared capital(*2) |
|
W |
|
|
|
|
482,403,125,000 |
|
| (*1) |
As of June 30, 2015, total shares of ADRs of 54,029,300 are equivalent to 13,507,325 of common stock. |
| (*2) |
As of June 30, 2015, the difference between the ending balance of common stock and the par value of issued common stock is W46,469 million due to retirement of 9,293,790 treasury stocks.
|
| (b) |
Capital surplus as of June 30, 2015 and December 31, 2014 are as follows: |
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
June 30, 2015 |
|
|
December 31, 2014 |
|
| Share premium |
|
W |
|
|
|
|
463,825 |
|
| Gain on disposal of treasury shares |
|
|
783,804 |
|
|
|
783,791 |
|
| Other capital surplus |
|
|
(165,956 |
) |
|
|
(163,898 |
) |
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
1,083,718 |
|
|
|
|
|
|
|
|
|
|
39
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
23. Hybrid Bonds
| (a) |
Hybrid bonds classified as equity as of June 30, 2015 and December 31, 2014 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Date of issue |
|
Date of maturity |
|
Rate of
interest (%) |
|
|
June 30, 2015 |
|
|
December 31, 2014 |
|
| Hybrid bond 1-1(*1) |
|
2013-06-13 |
|
2043-06-13 |
|
|
4.30 |
|
|
W |
|
|
|
|
800,000 |
|
| Hybrid bond 1-2(*1) |
|
2013-06-13 |
|
2043-06-13 |
|
|
4.60 |
|
|
|
200,000 |
|
|
|
200,000 |
|
| Issuance cost |
|
|
|
|
|
|
|
|
|
|
(3,081 |
) |
|
|
(3,081 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
996,919 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
Details of hybrid bonds as of June 30, 2015 is as follows: |
|
|
|
|
|
| (in millions of Won) |
|
Hybrid bond 1-1 |
|
Hybrid bond 1-2 |
| Issue price |
|
800,000 |
|
200,000 |
|
|
|
| Maturity date |
|
30 years (The Company has a right to extend the maturity date) |
|
30 years (The Company has a right to extend the maturity date) |
|
|
|
| Interest rate |
|
Issue date ~ 2018-06-12 : 4.3% reset every 5
years as follows; · After 5 years : return on government bond (5 years) + 1.3%
· After 10 years : additionally +0.25% according to Step-up clauses
· After 25 years : additionally +0.75% |
|
Issue date ~ 2023-06-12 : 4.6% reset every
10 years as follows; · After 10 years : return on government bond (10 years) + 1.4%
· After 10 years : additionally +0.25% according to Step-up clauses
· After 30 years : additionally +0.75% |
|
|
|
| Interest payments condition |
|
Quarterly (Optional deferral of interest
payment is available to the Company) |
|
Quarterly (Optional deferral of interest
payment is available to the Company) |
|
|
|
| Others |
|
The Company can call the hybrid bond at year 5 and interest payment date afterwards |
|
The Company can call the hybrid bond at year 10 and interest payment date afterwards |
The interest accumulated but not paid on the hybrid bonds as of June 30, 2015 amounts to
W2,133 million.
| (b) |
POSCO ENERGY Co., Ltd., a subsidiary of the Company, issued hybrid bonds during the year ended December 31, 2014, the entire amount of which is classified as non-controlling interests in the consolidated financial
statements. Hybrid bonds as of June 30, 2015 and December 31, 2014 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Date of issue |
|
Date of maturity |
|
Rate of
interest (%) |
|
|
June 30, 2015 |
|
|
December 31, 2014 |
|
| Hybrid bond 1-1(*1) |
|
2013-08-29 |
|
2043-08-29 |
|
|
4.66 |
|
|
W |
|
|
|
|
165,000 |
|
| Hybrid bond 1-2(*1) |
|
2013-08-29 |
|
2043-08-29 |
|
|
4.72 |
|
|
|
165,000 |
|
|
|
165,000 |
|
| Hybrid bond 1-3(*1) |
|
2013-08-29 |
|
2043-08-29 |
|
|
4.72 |
|
|
|
30,000 |
|
|
|
30,000 |
|
| Hybrid bond 1-4(*1) |
|
2013-08-29 |
|
2043-08-29 |
|
|
5.21 |
|
|
|
140,000 |
|
|
|
140,000 |
|
| Issuance cost |
|
|
|
|
|
|
|
|
|
|
(1,532 |
) |
|
|
(1,532 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
498,468 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
40
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
| (*1) |
Details of hybrid bonds of POSCO ENERGY Co., Ltd. as of June 30, 2015 are as follows : |
|
|
|
|
|
|
|
| (in millions of Won) |
|
Hybrid bond 1-1 |
|
Hybrid bond 1-2 and 1-3 |
|
Hybrid bond 1-4 |
| Issue price |
|
165,000 |
|
195,000 |
|
140,000 |
|
|
|
|
| Maturity date |
|
30 years (The Company has a right to extend the maturity date) |
|
30 years (The Company has a right to extend the maturity date) |
|
30 years (The Company has a right to extend the maturity date) |
|
|
|
|
| Interest rate |
|
Issue date ~ 2018-08-29 : 4.66% reset every 5
years as follows; · After 5 years : return on government bond (5 years) + 1.39%
· After 10 years : additionally +0.25% according to Step-up clauses
· After 30 years : additionally +0.75% |
|
Issue date ~ 2018-08-29 : 4.72% reset every 5
years as follows; · After 5 years : return on government bond (5 years) + 1.45%
· After 10 years : additionally +0.25% according to Step-up clauses
· After 30 years : additionally +0.75% |
|
Issue date ~ 2018-08-29 : 5.21% reset every 5
years as follows; · After 5 years : return on government bond (5 years) + 1.55%
· After 10 years : additionally +0.25% according to Step-up clauses
· After 30 years : additionally +0.75% |
|
|
|
|
| Interest payments condition |
|
Quarterly (Optional deferral of interest
payment is available to the Company) |
|
Quarterly (Optional deferral of interest
payment is available to the Company) |
|
Quarterly (Optional deferral of interest
payment is available to the Company) |
|
|
|
|
| Others |
|
The Company can call the hybrid bond at year 5 and interest payment date afterwards |
|
The Company can call the hybrid bond at year 5 and interest payment date afterwards |
|
The Company can call the hybrid bond at year 5 and interest payment date afterwards |
The interest accumulated but not paid on the hybrid bonds as of June 30, 2015 amounts to
W1,996 million.
24. Reserves
Reserves as of June 30, 2015 and December 31, 2014 are as follows:
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
June 30, 2015 |
|
|
December 31, 2014 |
|
| Accumulated comprehensive loss of investments in associates and joint ventures |
|
W |
|
|
|
|
(344,942 |
) |
| Changes in the unrealized fair value of available-for-sale investments |
|
|
120,753 |
|
|
|
144,783 |
|
| Currency translation differences |
|
|
(178,046 |
) |
|
|
(187,740 |
) |
| Others |
|
|
(19,731 |
) |
|
|
(20,874 |
) |
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
(408,773 |
) |
|
|
|
|
|
|
|
|
|
25. Treasury Shares
As
of June 30, 2015, the Company holds 7,193,377 shares of treasury stock for price stabilization in accordance with the Board of Directors’ resolution.
41
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
26. Selling and Administrative Expenses
| (a) |
Administrative expenses |
Administrative expenses for the three-month and six-month periods
ended June 30, 2015 and 2014 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
For the three-month periods
ended June 30 |
|
|
For the six-month periods
ended June 30 |
|
| (in millions of Won) |
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
| Wages and salaries |
|
W |
|
|
|
|
180,611 |
|
|
|
408,613 |
|
|
|
376,445 |
|
| Expenses related to defined benefit plan |
|
|
13,733 |
|
|
|
15,621 |
|
|
|
44,084 |
|
|
|
33,682 |
|
| Other employee benefits |
|
|
49,880 |
|
|
|
39,594 |
|
|
|
110,578 |
|
|
|
81,965 |
|
| Travel |
|
|
12,829 |
|
|
|
12,887 |
|
|
|
23,985 |
|
|
|
23,655 |
|
| Depreciation |
|
|
22,835 |
|
|
|
29,027 |
|
|
|
56,954 |
|
|
|
53,246 |
|
| Amortization |
|
|
30,869 |
|
|
|
53,563 |
|
|
|
82,710 |
|
|
|
98,080 |
|
| Communication |
|
|
3,809 |
|
|
|
3,330 |
|
|
|
6,955 |
|
|
|
6,886 |
|
| Electric power |
|
|
2,917 |
|
|
|
2,138 |
|
|
|
5,638 |
|
|
|
6,515 |
|
| Taxes and public dues |
|
|
22,638 |
|
|
|
15,209 |
|
|
|
42,434 |
|
|
|
28,459 |
|
| Rental |
|
|
35,620 |
|
|
|
34,656 |
|
|
|
69,081 |
|
|
|
70,003 |
|
| Repairs |
|
|
4,041 |
|
|
|
3,202 |
|
|
|
6,649 |
|
|
|
6,075 |
|
| Entertainment |
|
|
3,534 |
|
|
|
3,607 |
|
|
|
7,989 |
|
|
|
8,085 |
|
| Advertising |
|
|
23,634 |
|
|
|
26,264 |
|
|
|
45,390 |
|
|
|
51,296 |
|
| Research & development |
|
|
30,808 |
|
|
|
36,456 |
|
|
|
55,630 |
|
|
|
71,705 |
|
| Service fees |
|
|
74,695 |
|
|
|
48,504 |
|
|
|
153,108 |
|
|
|
99,458 |
|
| Supplies |
|
|
3,531 |
|
|
|
2,436 |
|
|
|
6,119 |
|
|
|
4,884 |
|
| Vehicles maintenance |
|
|
3,192 |
|
|
|
3,176 |
|
|
|
6,203 |
|
|
|
6,034 |
|
| Industry association fee |
|
|
4,656 |
|
|
|
2,704 |
|
|
|
8,287 |
|
|
|
8,050 |
|
| Training |
|
|
7,000 |
|
|
|
429 |
|
|
|
9,319 |
|
|
|
3,506 |
|
| Conference |
|
|
4,250 |
|
|
|
3,985 |
|
|
|
8,786 |
|
|
|
8,221 |
|
| Warranty expense |
|
|
2,581 |
|
|
|
4,018 |
|
|
|
6,427 |
|
|
|
9,166 |
|
| Bad debt allowance |
|
|
27,850 |
|
|
|
13,747 |
|
|
|
34,445 |
|
|
|
19,509 |
|
| Others |
|
|
3,067 |
|
|
|
5,511 |
|
|
|
11,027 |
|
|
|
12,682 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
540,675 |
|
|
|
1,210,411 |
|
|
|
1,087,607 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling expenses for the three-month and six-month periods ended
June 30, 2015 and 2014 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
For the three-month periods
ended June 30 |
|
|
For the six-month periods
ended June 30 |
|
| (in millions of Won) |
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
| Freight and custody expenses |
|
W |
|
|
|
|
382,005 |
|
|
|
804,633 |
|
|
|
745,967 |
|
| Operating expenses for distribution center |
|
|
3,009 |
|
|
|
2,586 |
|
|
|
5,701 |
|
|
|
5,303 |
|
| Sales commissions |
|
|
17,252 |
|
|
|
18,454 |
|
|
|
31,888 |
|
|
|
36,080 |
|
| Sales advertising |
|
|
564 |
|
|
|
607 |
|
|
|
1,122 |
|
|
|
898 |
|
| Sales promotion |
|
|
5,626 |
|
|
|
5,733 |
|
|
|
10,407 |
|
|
|
10,733 |
|
| Sample |
|
|
569 |
|
|
|
692 |
|
|
|
1,320 |
|
|
|
1,564 |
|
| Sales insurance premium |
|
|
7,904 |
|
|
|
9,503 |
|
|
|
15,776 |
|
|
|
19,680 |
|
| Contract cost |
|
|
7,912 |
|
|
|
11,352 |
|
|
|
14,862 |
|
|
|
17,564 |
|
| Others |
|
|
3,898 |
|
|
|
1,860 |
|
|
|
5,296 |
|
|
|
4,779 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
432,792 |
|
|
|
891,005 |
|
|
|
842,568 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
42
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
27. Finance Income and Costs
Details of finance income and costs for the three-month and six-month periods ended June 30, 2015 and 2014 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
For the three-month periods
ended June 30 |
|
|
For the six-month periods
ended June 30 |
|
| (in millions of Won) |
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
| Finance income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest income |
|
W |
|
|
|
|
53,223 |
|
|
|
105,654 |
|
|
|
114,238 |
|
| Dividend income |
|
|
9,035 |
|
|
|
8,215 |
|
|
|
47,007 |
|
|
|
37,662 |
|
| Gain on foreign currency transactions |
|
|
194,933 |
|
|
|
290,650 |
|
|
|
404,595 |
|
|
|
483,263 |
|
| Gain on foreign currency translations |
|
|
98,357 |
|
|
|
268,532 |
|
|
|
239,307 |
|
|
|
372,385 |
|
| Gain on derivatives transactions |
|
|
67,456 |
|
|
|
92,955 |
|
|
|
145,689 |
|
|
|
144,666 |
|
| Gain on valuations of derivatives |
|
|
13,907 |
|
|
|
38,911 |
|
|
|
87,845 |
|
|
|
108,084 |
|
| Gain on disposals of available-for-sale investment |
|
|
55,484 |
|
|
|
110,568 |
|
|
|
58,048 |
|
|
|
119,402 |
|
| Others |
|
|
7,802 |
|
|
|
5,145 |
|
|
|
8,598 |
|
|
|
6,605 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
868,199 |
|
|
|
1,096,743 |
|
|
|
1,386,305 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Finance costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest expenses |
|
W |
|
|
|
|
226,321 |
|
|
|
424,401 |
|
|
|
406,139 |
|
| Loss on foreign currency transactions |
|
|
213,407 |
|
|
|
215,506 |
|
|
|
422,060 |
|
|
|
430,452 |
|
| Loss on foreign currency translations |
|
|
157,583 |
|
|
|
60,582 |
|
|
|
308,543 |
|
|
|
241,036 |
|
| Loss on derivatives transactions |
|
|
61,057 |
|
|
|
94,719 |
|
|
|
111,153 |
|
|
|
138,689 |
|
| Loss on valuation of derivatives |
|
|
6,967 |
|
|
|
66,583 |
|
|
|
77,914 |
|
|
|
90,206 |
|
| Impairment loss on available-for-sale investment |
|
|
38,904 |
|
|
|
12,306 |
|
|
|
63,440 |
|
|
|
13,884 |
|
| Others |
|
|
59,310 |
|
|
|
32,243 |
|
|
|
70,696 |
|
|
|
41,483 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
708,260 |
|
|
|
1,478,207 |
|
|
|
1,361,889 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
43
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
28. Other Non-Operating Income and Expenses
Details of other non-operating income and expenses for the three-month and six-month periods ended June 30, 2015 and 2014 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
For the three-month periods
ended June 30 |
|
|
For the six-month periods
ended June 30 |
|
| (in millions of Won) |
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
| Other non-operating income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gain on disposals of assets held for sale |
|
W |
|
|
|
|
— |
|
|
|
219,180 |
|
|
|
— |
|
| Gain on disposals of investment in subsidiaries, associates and joint ventures |
|
|
6,378 |
|
|
|
314 |
|
|
|
6,435 |
|
|
|
7,978 |
|
| Gain on disposals of property, plant and equipment |
|
|
7,961 |
|
|
|
2,539 |
|
|
|
14,819 |
|
|
|
3,928 |
|
| Gain on disposals of intangible assets |
|
|
196 |
|
|
|
255 |
|
|
|
465 |
|
|
|
255 |
|
| Premium income |
|
|
1,761 |
|
|
|
424 |
|
|
|
6,749 |
|
|
|
459 |
|
| Grant income |
|
|
285 |
|
|
|
663 |
|
|
|
461 |
|
|
|
1,061 |
|
| Others |
|
|
43,700 |
|
|
|
32,890 |
|
|
|
64,262 |
|
|
|
80,861 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
37,085 |
|
|
|
312,371 |
|
|
|
94,542 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other non-operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Impairment losses on assets held for sale |
|
W |
|
|
|
|
— |
|
|
|
23,417 |
|
|
|
— |
|
| Loss on disposals of investment in subsidiaries, associates and joint ventures |
|
|
11,549 |
|
|
|
— |
|
|
|
11,549 |
|
|
|
— |
|
| Loss on disposals of property, plant and equipment |
|
|
46,878 |
|
|
|
11,109 |
|
|
|
58,263 |
|
|
|
19,700 |
|
| Impairment losses on property, plant and equipment |
|
|
61,906 |
|
|
|
3,112 |
|
|
|
71,908 |
|
|
|
4,865 |
|
| Loss on disposals of intangible assets |
|
|
3,284 |
|
|
|
294 |
|
|
|
3,885 |
|
|
|
309 |
|
| Impairment losses on intangible assets |
|
|
40,921 |
|
|
|
27,329 |
|
|
|
40,933 |
|
|
|
28,082 |
|
| Other bad debt expenses |
|
|
47,066 |
|
|
|
18,568 |
|
|
|
83,040 |
|
|
|
80,938 |
|
| Donations |
|
|
8,354 |
|
|
|
14,232 |
|
|
|
24,930 |
|
|
|
34,074 |
|
| Idle tangible assets expenses |
|
|
3,336 |
|
|
|
884 |
|
|
|
7,481 |
|
|
|
1,772 |
|
| Contribution to provisions |
|
|
(1,447 |
) |
|
|
111,665 |
|
|
|
6,598 |
|
|
|
111,665 |
|
| Others(*1) |
|
|
30,465 |
|
|
|
91,736 |
|
|
|
69,822 |
|
|
|
295,548 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
278,929 |
|
|
|
401,826 |
|
|
|
576,953 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
As a result of Korea National Tax Service’s periodic audit of tax payments and refunds of the Company, the Company recognized additional tax payments amounting to W178,640 million, primarily
related to VAT, in the six-month period ended June 30, 2014. |
44
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
29. Expenses by Nature
Expenses that are recorded by nature as cost of sales, selling and administrative expenses and other non-operating expenses in the statements of comprehensive
income for the three-month and six-month periods ended June 30, 2015 and 2014 were as follows (excluding finance costs and income tax expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
For the three-month periods
ended June 30 |
|
|
For the six-month periods
ended June 30 |
|
| (in millions of Won) |
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
| Changes in inventories |
|
W |
|
|
|
|
2,870,507 |
|
|
|
3,576,313 |
|
|
|
5,196,136 |
|
| Cost of merchandises sold |
|
|
6,551,767 |
|
|
|
7,853,275 |
|
|
|
13,570,393 |
|
|
|
15,054,084 |
|
| Employee benefits expenses |
|
|
783,853 |
|
|
|
735,821 |
|
|
|
1,628,322 |
|
|
|
1,558,861 |
|
| Outsourced processing cost |
|
|
2,170,622 |
|
|
|
2,333,814 |
|
|
|
4,412,555 |
|
|
|
4,774,631 |
|
| Electricity expenses |
|
|
324,320 |
|
|
|
360,330 |
|
|
|
651,989 |
|
|
|
707,930 |
|
| Depreciation expenses(*1) |
|
|
675,986 |
|
|
|
707,229 |
|
|
|
1,396,845 |
|
|
|
1,388,151 |
|
| Amortization expenses |
|
|
91,407 |
|
|
|
81,990 |
|
|
|
186,497 |
|
|
|
159,249 |
|
| Freight and custody expenses |
|
|
405,471 |
|
|
|
382,005 |
|
|
|
804,633 |
|
|
|
745,967 |
|
| Sales commissions |
|
|
17,252 |
|
|
|
18,454 |
|
|
|
31,888 |
|
|
|
36,080 |
|
| Loss on disposals of property, plant and equipment |
|
|
46,878 |
|
|
|
11,109 |
|
|
|
58,263 |
|
|
|
19,700 |
|
| Impairment losses on property, plant and equipment |
|
|
61,906 |
|
|
|
3,112 |
|
|
|
71,908 |
|
|
|
4,865 |
|
| Loss on disposals of intangible assets |
|
|
3,284 |
|
|
|
294 |
|
|
|
3,885 |
|
|
|
309 |
|
| Impairment losses on intangible assets |
|
|
40,921 |
|
|
|
27,329 |
|
|
|
40,933 |
|
|
|
28,082 |
|
| Donations |
|
|
8,354 |
|
|
|
14,232 |
|
|
|
24,930 |
|
|
|
34,074 |
|
| Other expenses |
|
|
2,033,639 |
|
|
|
743,889 |
|
|
|
2,815,290 |
|
|
|
1,442,160 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
16,143,390 |
|
|
|
29,274,644 |
|
|
|
31,150,279 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
Includes depreciation expense of investment property. |
30. Income Taxes
The effective tax rate of the Company for the six-month periods ended June 30, 2015 and 2014 was 50.13% and 45.08%, respectively. The effective tax rate
for the six-month period ended June 30, 2015 was higher than the statutory tax rate of 24% for the controlling company mainly due to the increase in deferred tax liabilities related to the controlling company’s investment in POSCO
ENGINEERING & CONSTRUCTION., LTD. as a result of changes in management’s expectations on repatriation of the investment and the effect of deductible temporary difference in the Company’s investments in subsidiaries and associates,
for which no deferred tax assets are recognized due to the expectations on repatriation of the investments. Effective tax rate for the six-month period ended June 30, 2014 is higher than the statutory tax rate of 24% for the controlling company
due to the effect of additional income tax payment due to tax investigation and non-deductible expense primarily related to additional VAT payment (Note 28) and the effect of deductible temporary difference in the Company’s investments in
subsidiaries and associates, for which no deferred tax assets are recognized due to the expectations on repatriation of the investments.
45
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
31. Earnings per Share
| (a) |
Basic and diluted earnings per share for the three-month and six-month periods ended June 30, 2015 and 2014 were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
For the three-month periods
ended June 30 |
|
|
For the six-month periods
ended June 30 |
|
| (in Won except per share information) |
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
| Profit attributable to controlling interest |
|
W |
|
|
|
|
511,169,853,485 |
|
|
|
536,763,585,499 |
|
|
|
581,011,149,458 |
|
| Interests of hybrid bonds |
|
|
(8,240,301,971 |
) |
|
|
(8,240,301,971 |
) |
|
|
(16,351,402,838 |
) |
|
|
(16,351,402,838 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
189,938,914,566 |
|
|
|
502,929,551,514 |
|
|
|
520,412,182,661 |
|
|
|
564,659,746,620 |
|
| Weighted-average number of common shares outstanding(*1) |
|
|
79,993,372 |
|
|
|
79,784,165 |
|
|
|
79,993,215 |
|
|
|
79,783,960 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic and diluted earnings per share |
|
W |
|
|
|
|
6,304 |
|
|
|
6,506 |
|
|
|
7,077 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
The weighted-average number of common shares used to calculate basic and diluted earnings per share are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
For the three-month periods
ended June 30 |
|
|
For the six-month periods
ended June 30 |
|
| (Share) |
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
| Total number of common shares issued |
|
W |
|
|
|
|
87,186,835 |
|
|
|
87,186,835 |
|
|
|
87,186,835 |
|
| Weighted-average number of treasury shares |
|
|
(7,193,463 |
) |
|
|
(7,402,670 |
) |
|
|
(7,193,620 |
) |
|
|
(7,402,875 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted-average number of common shares outstanding |
|
W |
|
|
|
|
79,784,165 |
|
|
|
79,993,215 |
|
|
|
79,783,960 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Since there were no potential shares of common stock which had dilutive effects as of June 30, 2015 and
2014, diluted earnings per share is equal to basic earnings per share.
46
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
32. Related Party Transactions
| (a) |
Significant transactions with related companies for the six-month periods ended June 30, 2015 and 2014 were as follows: |
| |
1) |
For the six-month period ended June 30, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Sales and others(*1) |
|
|
Purchase and others(*2) |
|
| (in millions of Won) |
|
Sales |
|
|
Others |
|
|
Purchase of
material |
|
|
Purchase of
fixed assets |
|
|
Outsourced
processing cost |
|
|
others |
|
| Subsidiaries(*3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| POSCO ENGINEERING & CONSTRUCTION., LTD. |
|
W |
|
|
|
|
90 |
|
|
|
19 |
|
|
|
291,361 |
|
|
|
1,822 |
|
|
|
29,336 |
|
| POSCO Processing & Service |
|
|
534,281 |
|
|
|
— |
|
|
|
246,883 |
|
|
|
— |
|
|
|
— |
|
|
|
1,632 |
|
| POSCO COATED & COLOR STEEL Co., Ltd. |
|
|
198,400 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,698 |
|
|
|
54 |
|
| POSCO ICT(*4) |
|
|
680 |
|
|
|
4 |
|
|
|
— |
|
|
|
84,512 |
|
|
|
14,669 |
|
|
|
88,429 |
|
| eNtoB Corporation |
|
|
— |
|
|
|
— |
|
|
|
146,452 |
|
|
|
2,396 |
|
|
|
53 |
|
|
|
10,464 |
|
| POSCO CHEMTECH |
|
|
245,830 |
|
|
|
17,633 |
|
|
|
259,499 |
|
|
|
6,182 |
|
|
|
150,021 |
|
|
|
499 |
|
| POSCO ENERGY CO., LTD. |
|
|
96,177 |
|
|
|
615 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
13 |
|
| POSCO TMC Co., Ltd. |
|
|
123,016 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
666 |
|
|
|
634 |
|
| POSCO AST |
|
|
199,145 |
|
|
|
3 |
|
|
|
4,115 |
|
|
|
— |
|
|
|
19,271 |
|
|
|
109 |
|
| POSHIMETAL Co., Ltd. |
|
|
6,517 |
|
|
|
75 |
|
|
|
82,124 |
|
|
|
— |
|
|
|
— |
|
|
|
33 |
|
| Daewoo International Corporation |
|
|
1,782,130 |
|
|
|
34,341 |
|
|
|
26,749 |
|
|
|
— |
|
|
|
— |
|
|
|
769 |
|
| SeAH Changwon Intergrated Special Steel (formerly, POSCO Specialty Steel Co., Ltd.)(*5) |
|
|
2,811 |
|
|
|
176,904 |
|
|
|
8,239 |
|
|
|
— |
|
|
|
515 |
|
|
|
75 |
|
| POSCO PLANTEC CO., LTD |
|
|
3,981 |
|
|
|
25 |
|
|
|
1,735 |
|
|
|
64,492 |
|
|
|
10,460 |
|
|
|
10,922 |
|
| POSCO Thainox Public Company Limited |
|
|
139,818 |
|
|
|
10 |
|
|
|
3,300 |
|
|
|
— |
|
|
|
— |
|
|
|
25 |
|
| PT. KRAKATAU POSCO |
|
|
— |
|
|
|
— |
|
|
|
115,557 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO America Corporation |
|
|
336,072 |
|
|
|
7 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
85 |
|
| POSCO Canada Ltd. |
|
|
— |
|
|
|
— |
|
|
|
64,024 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO Asia Co., Ltd. |
|
|
921,709 |
|
|
|
579 |
|
|
|
125,255 |
|
|
|
— |
|
|
|
95 |
|
|
|
237 |
|
| Qingdao Pohang Stainless Steel Co., Ltd. |
|
|
80,851 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
46 |
|
| POSCO JAPAN Co., Ltd. |
|
|
507,507 |
|
|
|
9,383 |
|
|
|
11,934 |
|
|
|
1,674 |
|
|
|
— |
|
|
|
519 |
|
| POSCO MEXICO S.A. DE C.V. |
|
|
132,429 |
|
|
|
153 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO Maharashtra Steel Private Limited |
|
|
207,938 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Others |
|
|
462,894 |
|
|
|
10,125 |
|
|
|
120,512 |
|
|
|
45,174 |
|
|
|
106,843 |
|
|
|
46,262 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,984,213 |
|
|
|
249,947 |
|
|
|
1,216,397 |
|
|
|
495,791 |
|
|
|
310,113 |
|
|
|
190,143 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Associates and joint ventures(*3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| SeAH Changwon Intergrated Special Steel (formerly, POSCO Specialty Steel Co., Ltd.)(*5) |
|
|
1,653 |
|
|
|
— |
|
|
|
2,672 |
|
|
|
— |
|
|
|
229 |
|
|
|
1 |
|
| SNNC |
|
|
1,205 |
|
|
|
283 |
|
|
|
212,142 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| CSP - Compania Siderurgica do Pecem(*6) |
|
|
3,358 |
|
|
|
537 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Others |
|
|
19,541 |
|
|
|
30,862 |
|
|
|
28,295 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
25,757 |
|
|
|
31,682 |
|
|
|
243,109 |
|
|
|
— |
|
|
|
229 |
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
281,629 |
|
|
|
1,459,506 |
|
|
|
495,791 |
|
|
|
310,342 |
|
|
|
190,144 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
Sales and others are mainly consist of sales of steel products to subsidiaries, associates and joint ventures. These are priced on an arm’s length basis. |
| (*2) |
Purchases and others are mainly consist of subsidiaries’ purchases of construction services and purchases of raw materials to manufacture steel products. These are priced on an arm’s length basis.
|
| (*3) |
As of June 30, 2015, the Company provided guarantees to related parties (Note 33). |
| (*4) |
Others (purchase) mainly consist of service fees related to maintenance and repair of ERP System. |
| (*5) |
It is reclassified from subsidiary to associate. |
| (*6) |
It has borrowed loans of W67,664 million from the Company during the six-month period ended June 30, 2015. |
47
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
| |
2) |
For the six-month period ended June 30, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Sales and others |
|
|
Purchase and others |
|
| (in millions of Won) |
|
Sales |
|
|
Others |
|
|
Purchase of
material |
|
|
Purchase of
fixed assets |
|
|
Outsourced
processing cost |
|
|
others |
|
| Subsidiaries |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| POSCO ENGINEERING & CONSTRUCTION., LTD. |
|
W |
|
|
|
|
16,674 |
|
|
|
— |
|
|
|
590,485 |
|
|
|
3,260 |
|
|
|
12,519 |
|
| POSCO Processing & Service |
|
|
518,057 |
|
|
|
8,578 |
|
|
|
473,808 |
|
|
|
— |
|
|
|
— |
|
|
|
261 |
|
| POSCO COATED & COLOR STEEL Co., Ltd. |
|
|
228,638 |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
5,270 |
|
|
|
66 |
|
| POSCO ICT |
|
|
607 |
|
|
|
2,490 |
|
|
|
— |
|
|
|
98,062 |
|
|
|
12,685 |
|
|
|
79,974 |
|
| eNtoB Corporation |
|
|
— |
|
|
|
— |
|
|
|
122,887 |
|
|
|
1,679 |
|
|
|
35 |
|
|
|
9,064 |
|
| POSCO CHEMTECH |
|
|
267,799 |
|
|
|
15,434 |
|
|
|
252,731 |
|
|
|
2,748 |
|
|
|
152,698 |
|
|
|
557 |
|
| POSCO M-TECH |
|
|
95 |
|
|
|
16 |
|
|
|
63,612 |
|
|
|
890 |
|
|
|
101,477 |
|
|
|
4,511 |
|
| POSCO ENERGY CO., LTD. |
|
|
84,605 |
|
|
|
598 |
|
|
|
— |
|
|
|
2,263 |
|
|
|
— |
|
|
|
20 |
|
| POSCO TMC Co., Ltd. |
|
|
115,404 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
528 |
|
|
|
764 |
|
| POSCO AST |
|
|
266,677 |
|
|
|
— |
|
|
|
4,836 |
|
|
|
— |
|
|
|
32,579 |
|
|
|
851 |
|
| POSHIMETAL Co., Ltd. |
|
|
5,267 |
|
|
|
2,313 |
|
|
|
80,988 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Daewoo International Corporation |
|
|
1,707,132 |
|
|
|
20,605 |
|
|
|
70,065 |
|
|
|
— |
|
|
|
— |
|
|
|
1,656 |
|
| POSCO America Corporation |
|
|
362,592 |
|
|
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
179 |
|
| POSCO Canada Ltd. |
|
|
— |
|
|
|
— |
|
|
|
82,489 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO Asia Co., Ltd. |
|
|
1,010,153 |
|
|
|
53 |
|
|
|
96,937 |
|
|
|
— |
|
|
|
8,881 |
|
|
|
668 |
|
| Qingdao Pohang Stainless Steel Co., Ltd. |
|
|
34,895 |
|
|
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO JAPAN Co., Ltd. |
|
|
719,380 |
|
|
|
— |
|
|
|
6,362 |
|
|
|
459 |
|
|
|
3 |
|
|
|
447 |
|
| POSCO MEXICO S.A. DE C.V. |
|
|
136,055 |
|
|
|
775 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO Maharashtra Steel Private Limited |
|
|
111,783 |
|
|
|
581 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Others |
|
|
463,482 |
|
|
|
8,618 |
|
|
|
110,652 |
|
|
|
25,678 |
|
|
|
16,971 |
|
|
|
58,292 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,039,252 |
|
|
|
76,740 |
|
|
|
1,365,367 |
|
|
|
722,264 |
|
|
|
334,387 |
|
|
|
169,829 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Associates and joint ventures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| SNNC |
|
|
2,043 |
|
|
|
5,273 |
|
|
|
163,758 |
|
|
|
— |
|
|
|
— |
|
|
|
5 |
|
| POSCO PLANTEC CO., LTD |
|
|
8,400 |
|
|
|
24 |
|
|
|
1,500 |
|
|
|
37,355 |
|
|
|
6,347 |
|
|
|
2,658 |
|
| Others(*1) |
|
|
14,138 |
|
|
|
29,466 |
|
|
|
32,599 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
24,581 |
|
|
|
34,763 |
|
|
|
197,857 |
|
|
|
37,355 |
|
|
|
6,347 |
|
|
|
2,663 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
111,503 |
|
|
|
1,563,224 |
|
|
|
759,619 |
|
|
|
340,734 |
|
|
|
172,492 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
The Company collected loans of W158 million from LLP POSUK Titanium during the six-month period ended June 30, 2014. |
48
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
| (b) |
Significant transactions with related companies for the three-month periods ended June 30, 2015 and 2014 were as follows: |
| |
1) |
For the three-month period ended June 30, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Sales and others |
|
|
Purchase and others |
|
| (in millions of Won) |
|
Sales |
|
|
Others |
|
|
Purchase of
material |
|
|
Purchase of
fixed assets |
|
|
Outsourced
processing cost |
|
|
others |
|
| Subsidiaries |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| POSCO ENGINEERING & CONSTRUCTION., LTD. |
|
W |
|
|
|
|
26 |
|
|
|
— |
|
|
|
133,824 |
|
|
|
536 |
|
|
|
7,331 |
|
| POSCO Processing & Service |
|
|
254,405 |
|
|
|
— |
|
|
|
102,440 |
|
|
|
— |
|
|
|
— |
|
|
|
325 |
|
| POSCO COATED & COLOR STEEL Co., Ltd. |
|
|
96,959 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,431 |
|
|
|
30 |
|
| POSCO ICT |
|
|
386 |
|
|
|
— |
|
|
|
— |
|
|
|
49,262 |
|
|
|
7,234 |
|
|
|
43,976 |
|
| eNtoB Corporation |
|
|
— |
|
|
|
— |
|
|
|
68,462 |
|
|
|
1,869 |
|
|
|
27 |
|
|
|
4,914 |
|
| POSCO CHEMTECH |
|
|
117,465 |
|
|
|
5,833 |
|
|
|
126,055 |
|
|
|
4,449 |
|
|
|
75,237 |
|
|
|
127 |
|
| POSCO ENERGY CO., LTD. |
|
|
48,575 |
|
|
|
313 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO TMC Co., Ltd. |
|
|
68,482 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
407 |
|
|
|
355 |
|
| POSCO AST |
|
|
94,030 |
|
|
|
— |
|
|
|
1,340 |
|
|
|
— |
|
|
|
10,399 |
|
|
|
74 |
|
| POSHIMETAL Co., Ltd. |
|
|
3,346 |
|
|
|
41 |
|
|
|
44,991 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Daewoo International Corporation |
|
|
884,194 |
|
|
|
6 |
|
|
|
15,036 |
|
|
|
— |
|
|
|
— |
|
|
|
769 |
|
| POSCO PLANTEC CO., LTD |
|
|
1,608 |
|
|
|
7 |
|
|
|
857 |
|
|
|
36,665 |
|
|
|
4,834 |
|
|
|
5,267 |
|
| POSCO Thainox Public Company Limited |
|
|
67,861 |
|
|
|
— |
|
|
|
1,431 |
|
|
|
— |
|
|
|
— |
|
|
|
25 |
|
| PT. KRAKATAU POSCO |
|
|
— |
|
|
|
— |
|
|
|
31,921 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO America Corporation |
|
|
160,145 |
|
|
|
7 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
49 |
|
| POSCO Canada Ltd. |
|
|
— |
|
|
|
— |
|
|
|
31,027 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO Asia Co., Ltd. |
|
|
456,563 |
|
|
|
579 |
|
|
|
74,436 |
|
|
|
— |
|
|
|
95 |
|
|
|
145 |
|
| Qingdao Pohang Stainless Steel Co., Ltd. |
|
|
44,122 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
46 |
|
| POSCO JAPAN Co., Ltd. |
|
|
241,267 |
|
|
|
— |
|
|
|
6,711 |
|
|
|
717 |
|
|
|
— |
|
|
|
250 |
|
| POSCO MEXICO S.A. DE C.V. |
|
|
54,686 |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO Maharashtra Steel Private Limited |
|
|
105,543 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Others |
|
|
235,743 |
|
|
|
4,782 |
|
|
|
58,141 |
|
|
|
19,975 |
|
|
|
53,429 |
|
|
|
22,481 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,936,482 |
|
|
|
11,595 |
|
|
|
562,848 |
|
|
|
246,761 |
|
|
|
154,629 |
|
|
|
86,164 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Associates and joint ventures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| SeAH Changwon Intergrated Special Steel (formerly, POSCO Specialty Steel Co., Ltd.) |
|
|
1,653 |
|
|
|
— |
|
|
|
2,672 |
|
|
|
— |
|
|
|
229 |
|
|
|
1 |
|
| SNNC |
|
|
567 |
|
|
|
77 |
|
|
|
114,966 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| CSP - Compania Siderurgica do Pecem |
|
|
— |
|
|
|
537 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Others |
|
|
11,112 |
|
|
|
24,433 |
|
|
|
13,982 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13,332 |
|
|
|
25,047 |
|
|
|
131,620 |
|
|
|
— |
|
|
|
229 |
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
36,642 |
|
|
|
694,468 |
|
|
|
246,761 |
|
|
|
154,858 |
|
|
|
86,165 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
49
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
| |
2) |
For the three-month period ended June 30, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Sales and others |
|
|
Purchase and others |
|
| |
Sales |
|
|
Others |
|
|
Purchase of
material |
|
|
Purchase of
fixed assets |
|
|
Outsourced
processing cost |
|
|
others |
|
| Subsidiaries |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| POSCO ENGINEERING & CONSTRUCTION., LTD. |
|
W |
|
|
|
|
91 |
|
|
|
— |
|
|
|
162,999 |
|
|
|
1,170 |
|
|
|
1,547 |
|
| POSCO Processing & Service |
|
|
262,753 |
|
|
|
— |
|
|
|
213,359 |
|
|
|
— |
|
|
|
— |
|
|
|
155 |
|
| POSCO COATED & COLOR STEEL Co., Ltd. |
|
|
105,886 |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
2,841 |
|
|
|
36 |
|
| POSCO ICT |
|
|
380 |
|
|
|
2,486 |
|
|
|
— |
|
|
|
22,978 |
|
|
|
6,420 |
|
|
|
42,509 |
|
| eNtoB Corporation |
|
|
— |
|
|
|
— |
|
|
|
64,674 |
|
|
|
1,019 |
|
|
|
22 |
|
|
|
3,814 |
|
| POSCO CHEMTECH |
|
|
138,227 |
|
|
|
10,493 |
|
|
|
120,529 |
|
|
|
1,298 |
|
|
|
76,782 |
|
|
|
171 |
|
| POSCO M-TECH |
|
|
75 |
|
|
|
16 |
|
|
|
26,642 |
|
|
|
397 |
|
|
|
51,051 |
|
|
|
4,455 |
|
| POSCO ENERGY CO., LTD. |
|
|
48,472 |
|
|
|
299 |
|
|
|
— |
|
|
|
671 |
|
|
|
— |
|
|
|
— |
|
| POSCO TMC Co., Ltd. |
|
|
65,517 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
251 |
|
|
|
343 |
|
| POSCO AST |
|
|
134,277 |
|
|
|
— |
|
|
|
3,114 |
|
|
|
— |
|
|
|
17,681 |
|
|
|
601 |
|
| POSHIMETAL Co., Ltd. |
|
|
2,258 |
|
|
|
1,128 |
|
|
|
40,541 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Daewoo International Corporation |
|
|
816,532 |
|
|
|
1 |
|
|
|
22,988 |
|
|
|
— |
|
|
|
— |
|
|
|
104 |
|
| POSCO America Corporation |
|
|
192,983 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
174 |
|
| POSCO Canada Ltd. |
|
|
— |
|
|
|
— |
|
|
|
35,119 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO Asia Co., Ltd. |
|
|
495,611 |
|
|
|
30 |
|
|
|
56,743 |
|
|
|
— |
|
|
|
7,502 |
|
|
|
589 |
|
| Qingdao Pohang Stainless Steel Co., Ltd. |
|
|
20,811 |
|
|
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO JAPAN Co., Ltd. |
|
|
358,272 |
|
|
|
— |
|
|
|
4,087 |
|
|
|
459 |
|
|
|
3 |
|
|
|
250 |
|
| POSCO MEXICO S.A. DE C.V. |
|
|
74,931 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO Maharashtra Steel Private Limited |
|
|
47,316 |
|
|
|
367 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Others |
|
|
224,810 |
|
|
|
8,421 |
|
|
|
56,717 |
|
|
|
21,109 |
|
|
|
7,733 |
|
|
|
35,151 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,994,237 |
|
|
|
23,335 |
|
|
|
644,513 |
|
|
|
210,930 |
|
|
|
171,456 |
|
|
|
89,899 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Associates and joint ventures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| SNNC |
|
|
1,480 |
|
|
|
5,210 |
|
|
|
75,512 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO PLANTEC CO., LTD |
|
|
5,580 |
|
|
|
6 |
|
|
|
928 |
|
|
|
23,972 |
|
|
|
3,387 |
|
|
|
1,944 |
|
| Others(*1) |
|
|
7,959 |
|
|
|
29,465 |
|
|
|
15,986 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15,019 |
|
|
|
34,681 |
|
|
|
92,426 |
|
|
|
23,972 |
|
|
|
3,387 |
|
|
|
1,944 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
58,016 |
|
|
|
736,939 |
|
|
|
234,902 |
|
|
|
174,843 |
|
|
|
91,843 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
The Company collected loans of W210 million from LLP POSUK Titanium during the three-month period ended June, 30, 2014. |
50
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
| (c) |
The related account balances of significant transactions with related companies as of June 30, 2015 and December 31, 2014 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Receivables |
|
|
Payables |
|
| (in millions of Won) |
|
Trade accounts
and
notes receivable |
|
|
Others |
|
|
Total |
|
|
Trade accounts
and
notes payable |
|
|
Accounts payable |
|
|
Others |
|
|
Total |
|
| Subsidiaries |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| POSCO ENGINEERING & CONSTRUCTION., LTD. |
|
W |
|
|
|
|
40,205 |
|
|
|
40,299 |
|
|
|
— |
|
|
|
23,345 |
|
|
|
720 |
|
|
|
24,065 |
|
| POSCO Processing & Service |
|
|
78,867 |
|
|
|
84 |
|
|
|
78,951 |
|
|
|
4,309 |
|
|
|
89 |
|
|
|
— |
|
|
|
4,398 |
|
| POSCO COATED & COLOR STEEL Co., Ltd. |
|
|
79,538 |
|
|
|
32 |
|
|
|
79,570 |
|
|
|
— |
|
|
|
5 |
|
|
|
1,220 |
|
|
|
1,225 |
|
| POSCO ICT |
|
|
— |
|
|
|
44 |
|
|
|
44 |
|
|
|
914 |
|
|
|
56,216 |
|
|
|
2,581 |
|
|
|
59,711 |
|
| eNtoB Corporation |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8,737 |
|
|
|
12,961 |
|
|
|
13 |
|
|
|
21,711 |
|
| POSCO CHEMTECH |
|
|
41,814 |
|
|
|
5,008 |
|
|
|
46,822 |
|
|
|
57,395 |
|
|
|
12,127 |
|
|
|
19,338 |
|
|
|
88,860 |
|
| POSCO ENERGY CO., LTD. |
|
|
18,286 |
|
|
|
1,338 |
|
|
|
19,624 |
|
|
|
— |
|
|
|
— |
|
|
|
1,945 |
|
|
|
1,945 |
|
| POSCO TMC Co., Ltd. |
|
|
66,357 |
|
|
|
15 |
|
|
|
66,372 |
|
|
|
— |
|
|
|
10 |
|
|
|
215 |
|
|
|
225 |
|
| POSCO AST |
|
|
60,773 |
|
|
|
27 |
|
|
|
60,800 |
|
|
|
— |
|
|
|
2,449 |
|
|
|
3,855 |
|
|
|
6,304 |
|
| POSHIMETAL Co., Ltd. |
|
|
— |
|
|
|
2,484 |
|
|
|
2,484 |
|
|
|
— |
|
|
|
16,427 |
|
|
|
— |
|
|
|
16,427 |
|
| Daewoo International Corporation |
|
|
151,078 |
|
|
|
1,068 |
|
|
|
152,146 |
|
|
|
6,514 |
|
|
|
— |
|
|
|
— |
|
|
|
6,514 |
|
| POSCO PLANTEC CO.,LTD |
|
|
1,636 |
|
|
|
8 |
|
|
|
1,644 |
|
|
|
2,217 |
|
|
|
20,106 |
|
|
|
12 |
|
|
|
22,335 |
|
| POSCO Thainox Public Company Limited |
|
|
67,860 |
|
|
|
— |
|
|
|
67,860 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO America Corporation |
|
|
46,449 |
|
|
|
— |
|
|
|
46,449 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO Asia Co., Ltd. |
|
|
149,247 |
|
|
|
593 |
|
|
|
149,840 |
|
|
|
24,274 |
|
|
|
39 |
|
|
|
— |
|
|
|
24,313 |
|
| Qingdao Pohang Stainless Steel Co., Ltd. |
|
|
30,423 |
|
|
|
— |
|
|
|
30,423 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO MEXICO S.A. DE C.V. |
|
|
79,684 |
|
|
|
31 |
|
|
|
79,715 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO Maharashtra Steel Private Limited |
|
|
298,469 |
|
|
|
958 |
|
|
|
299,427 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Others |
|
|
152,820 |
|
|
|
3,328 |
|
|
|
156,148 |
|
|
|
10,963 |
|
|
|
25,260 |
|
|
|
26,291 |
|
|
|
62,514 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,323,395 |
|
|
|
55,223 |
|
|
|
1,378,618 |
|
|
|
115,323 |
|
|
|
169,034 |
|
|
|
56,190 |
|
|
|
340,547 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Associates and joint ventures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| SeAH Changwon Intergrated Special Steel
(formerly, POSCO Specialty Steel Co., Ltd.) |
|
|
1,326 |
|
|
|
— |
|
|
|
1,326 |
|
|
|
1,074 |
|
|
|
21 |
|
|
|
2 |
|
|
|
1,097 |
|
| SNNC |
|
|
222 |
|
|
|
35 |
|
|
|
257 |
|
|
|
30,822 |
|
|
|
— |
|
|
|
— |
|
|
|
30,822 |
|
| CSP - Compania Siderurgica do Pecem(*1) |
|
|
— |
|
|
|
71,354 |
|
|
|
71,354 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Others |
|
|
337 |
|
|
|
12,202 |
|
|
|
12,539 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,885 |
|
|
|
83,591 |
|
|
|
85,476 |
|
|
|
31,896 |
|
|
|
21 |
|
|
|
2 |
|
|
|
31,919 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
138,814 |
|
|
|
1,464,094 |
|
|
|
147,219 |
|
|
|
169,055 |
|
|
|
56,192 |
|
|
|
372,466 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
Others include loans of W67,664 million. |
51
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Receivables |
|
|
Payables |
|
| (in millions of Won) |
|
Trade accounts
and
notes receivable |
|
|
Others |
|
|
Total |
|
|
Trade accounts
and
notes payable |
|
|
Accounts payable |
|
|
Others |
|
|
Total |
|
| Subsidiaries |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| POSCO ENGINEERING & CONSTRUCTION., LTD. |
|
W |
|
|
|
|
71,967 |
|
|
|
72,009 |
|
|
|
— |
|
|
|
41,878 |
|
|
|
— |
|
|
|
41,878 |
|
| POSCO Processing & Service |
|
|
94,790 |
|
|
|
92 |
|
|
|
94,882 |
|
|
|
15,202 |
|
|
|
867 |
|
|
|
— |
|
|
|
16,069 |
|
| POSCO COATED & COLOR STEEL Co., Ltd. |
|
|
69,314 |
|
|
|
67 |
|
|
|
69,381 |
|
|
|
— |
|
|
|
5 |
|
|
|
1,936 |
|
|
|
1,941 |
|
| POSCO ICT |
|
|
13 |
|
|
|
103 |
|
|
|
116 |
|
|
|
920 |
|
|
|
70,823 |
|
|
|
5,425 |
|
|
|
77,168 |
|
| eNtoB Corporation |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
12,564 |
|
|
|
28,432 |
|
|
|
43 |
|
|
|
41,039 |
|
| POSCO CHEMTECH |
|
|
49,456 |
|
|
|
4,283 |
|
|
|
53,739 |
|
|
|
57,610 |
|
|
|
9,890 |
|
|
|
17,864 |
|
|
|
85,364 |
|
| POSCO ENERGY CO., LTD. |
|
|
17,326 |
|
|
|
2,809 |
|
|
|
20,135 |
|
|
|
— |
|
|
|
— |
|
|
|
1,962 |
|
|
|
1,962 |
|
| POSCO TMC Co., Ltd. |
|
|
27,429 |
|
|
|
30 |
|
|
|
27,459 |
|
|
|
— |
|
|
|
117 |
|
|
|
115 |
|
|
|
232 |
|
| POSCO AST |
|
|
44,281 |
|
|
|
54 |
|
|
|
44,335 |
|
|
|
— |
|
|
|
2,458 |
|
|
|
3,364 |
|
|
|
5,822 |
|
| POSHIMETAL Co., Ltd. |
|
|
1,269 |
|
|
|
14 |
|
|
|
1,283 |
|
|
|
— |
|
|
|
12,846 |
|
|
|
— |
|
|
|
12,846 |
|
| Daewoo International Corporation |
|
|
164,029 |
|
|
|
3,178 |
|
|
|
167,207 |
|
|
|
8 |
|
|
|
210 |
|
|
|
1 |
|
|
|
219 |
|
| SeAH Changwon Intergrated Special Steel
(formerly, POSCO Specialty Steel Co., Ltd.) |
|
|
822 |
|
|
|
201,823 |
|
|
|
202,645 |
|
|
|
4,800 |
|
|
|
140 |
|
|
|
184 |
|
|
|
5,124 |
|
| POSCO America Corporation |
|
|
57,164 |
|
|
|
— |
|
|
|
57,164 |
|
|
|
— |
|
|
|
1,511 |
|
|
|
— |
|
|
|
1,511 |
|
| POSCO Canada Ltd. |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,534 |
|
|
|
— |
|
|
|
4,534 |
|
| POSCO Asia Co., Ltd. |
|
|
197,104 |
|
|
|
221 |
|
|
|
197,325 |
|
|
|
10,995 |
|
|
|
— |
|
|
|
— |
|
|
|
10,995 |
|
| Qingdao Pohang Stainless Steel Co., Ltd. |
|
|
14,748 |
|
|
|
41 |
|
|
|
14,789 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO JAPAN Co., Ltd. |
|
|
42,692 |
|
|
|
89 |
|
|
|
42,781 |
|
|
|
344 |
|
|
|
1,552 |
|
|
|
— |
|
|
|
1,896 |
|
| POSCO MEXICO S.A. DE C.V. |
|
|
96,800 |
|
|
|
— |
|
|
|
96,800 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO Maharashtra Steel Private Limited |
|
|
364,899 |
|
|
|
7,714 |
|
|
|
372,613 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Others |
|
|
140,282 |
|
|
|
58,769 |
|
|
|
199,051 |
|
|
|
15,150 |
|
|
|
68,965 |
|
|
|
29,076 |
|
|
|
113,191 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,382,460 |
|
|
|
351,254 |
|
|
|
1,733,714 |
|
|
|
117,593 |
|
|
|
244,228 |
|
|
|
59,970 |
|
|
|
421,791 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Associates and joint ventures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| SNNC |
|
|
219 |
|
|
|
125 |
|
|
|
344 |
|
|
|
7,017 |
|
|
|
— |
|
|
|
— |
|
|
|
7,017 |
|
| LLP POSUK Titanium(*1) |
|
|
— |
|
|
|
4,235 |
|
|
|
4,235 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Others |
|
|
258 |
|
|
|
18 |
|
|
|
276 |
|
|
|
1,396 |
|
|
|
— |
|
|
|
— |
|
|
|
1,396 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
477 |
|
|
|
4,378 |
|
|
|
4,855 |
|
|
|
8,413 |
|
|
|
— |
|
|
|
— |
|
|
|
8,413 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
355,632 |
|
|
|
1,738,569 |
|
|
|
126,006 |
|
|
|
244,228 |
|
|
|
59,970 |
|
|
|
430,204 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
Others include loans of W4,235 million. |
52
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
| (d) |
Significant transactions with related companies, excluding the controlling company, for the six-month periods ended June 30, 2015 and 2014 were as follows: |
| |
1) |
For the six-month period ended June 30, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Sales and others |
|
|
Purchases and others |
|
|
Finance
transaction(*1) |
|
| |
Sales |
|
|
Others |
|
|
Purchase of
material |
|
|
Others |
|
|
Loan (Collection) |
|
| SeAH Changwon Intergrated Special Steel (formerly, POSCO Specialty Steel Co., Ltd.) |
|
W |
|
|
|
|
— |
|
|
|
19,001 |
|
|
|
1,982 |
|
|
|
— |
|
| New Songdo International City Development, LLC |
|
|
248,012 |
|
|
|
— |
|
|
|
— |
|
|
|
85 |
|
|
|
— |
|
| SNNC |
|
|
12,137 |
|
|
|
38 |
|
|
|
— |
|
|
|
52,455 |
|
|
|
— |
|
| Posco e&c Songdo International Building |
|
|
3,121 |
|
|
|
— |
|
|
|
— |
|
|
|
12,784 |
|
|
|
— |
|
| VSC POSCO Steel Corporation |
|
|
13,054 |
|
|
|
— |
|
|
|
2,071 |
|
|
|
2 |
|
|
|
(2,024 |
) |
| USS-POSCO Industries |
|
|
198,760 |
|
|
|
— |
|
|
|
436 |
|
|
|
— |
|
|
|
— |
|
| CSP - Compania Siderurgica do Pecem |
|
|
472,177 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Zhongyue POSCO (Qinhuangdao)
Tinplate Industrial Co., Ltd |
|
|
44,499 |
|
|
|
— |
|
|
|
43,069 |
|
|
|
— |
|
|
|
254 |
|
| BX STEEL POSCO Cold Rolled Sheet Co., Ltd. |
|
|
— |
|
|
|
— |
|
|
|
11,874 |
|
|
|
— |
|
|
|
— |
|
| POS-SEAHSTEELWIRE(TIANJIN)CO.,Ltd |
|
|
5,521 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
112 |
|
| POSCO SeAH Steel Wire(Nantong) Co., Ltd. |
|
|
15,487 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
249 |
|
| Zhangjiagang Pohang Refractories Co., Ltd. |
|
|
472 |
|
|
|
8 |
|
|
|
11,601 |
|
|
|
637 |
|
|
|
— |
|
| Sebang Steel |
|
|
— |
|
|
|
— |
|
|
|
16,063 |
|
|
|
— |
|
|
|
— |
|
| SHANGHAI WAIGAOQIAO FREE TRADE ZONE LANSHENG DAEWOO IN’L TRADING CO., LTD. |
|
|
90,686 |
|
|
|
— |
|
|
|
3,040 |
|
|
|
3,189 |
|
|
|
— |
|
| DMSA/AMSA |
|
|
7 |
|
|
|
4,530 |
|
|
|
— |
|
|
|
— |
|
|
|
11,875 |
|
| South-East Asia Gas Pipeline Company Ltd. |
|
|
— |
|
|
|
14,597 |
|
|
|
— |
|
|
|
— |
|
|
|
(5,996 |
) |
| Others |
|
|
114,324 |
|
|
|
702 |
|
|
|
5,794 |
|
|
|
2,334 |
|
|
|
(189 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
19,875 |
|
|
|
112,949 |
|
|
|
73,468 |
|
|
|
4,281 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
Mainly includes the transactions between Daewoo International Corporation and POSCO Investment Co., Ltd. and related companies. |
53
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
| |
2) |
For the six-month period ended June 30, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Sales and others |
|
|
Purchases and others |
|
|
Finance
transaction |
|
| |
Sales |
|
|
Others |
|
|
Purchase of
material |
|
|
Others |
|
|
Loan (Collection) |
|
| New Songdo International City Development, LLC |
|
W |
|
|
|
|
— |
|
|
|
— |
|
|
|
14 |
|
|
|
— |
|
| SNNC |
|
|
79,334 |
|
|
|
441 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Posco e&c Songdo International Building |
|
|
3,106 |
|
|
|
— |
|
|
|
— |
|
|
|
11,750 |
|
|
|
— |
|
| POSCO PLANTEC CO.,LTD |
|
|
9,957 |
|
|
|
2 |
|
|
|
2,695 |
|
|
|
73,972 |
|
|
|
— |
|
| VSC POSCO Steel Corporation |
|
|
286 |
|
|
|
— |
|
|
|
8,379 |
|
|
|
— |
|
|
|
(50 |
) |
| USS-POSCO Industries |
|
|
251,291 |
|
|
|
— |
|
|
|
2,164 |
|
|
|
— |
|
|
|
— |
|
| Nickel Mining Company SAS |
|
|
3,381 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
15,216 |
|
| AN KHANH NEW CITY DEVELOPMENT J.V CO., LTD. |
|
|
17,081 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,045 |
) |
| CSP - Compania Siderurgica do Pecem |
|
|
898,264 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Zhongyue POSCO (Qinhuangdao) Tinplate Industrial Co., Ltd |
|
|
74,531 |
|
|
|
— |
|
|
|
59,727 |
|
|
|
— |
|
|
|
(417 |
) |
| POSCO SeAH Steel Wire(Nantong) Co., Ltd. |
|
|
26,150 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(491 |
) |
| Zhangjiagang Pohang Refractories Co., Ltd. |
|
|
450 |
|
|
|
— |
|
|
|
11,497 |
|
|
|
1,381 |
|
|
|
— |
|
| Sebang Steel |
|
|
— |
|
|
|
— |
|
|
|
26,568 |
|
|
|
— |
|
|
|
— |
|
| SHANGHAI WAIGAOQIAO FREE TRADE ZONE LANSHENG DAEWOO IN’L TRADING CO., LTD. |
|
|
88,603 |
|
|
|
— |
|
|
|
— |
|
|
|
9,513 |
|
|
|
— |
|
| DMSA/AMSA |
|
|
— |
|
|
|
3,374 |
|
|
|
— |
|
|
|
— |
|
|
|
10,070 |
|
| South-East Asia Gas Pipeline Company Ltd. |
|
|
— |
|
|
|
13,090 |
|
|
|
— |
|
|
|
— |
|
|
|
15,876 |
|
| Others |
|
|
84,637 |
|
|
|
2,334 |
|
|
|
18,824 |
|
|
|
2,056 |
|
|
|
(15,788 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
19,241 |
|
|
|
129,854 |
|
|
|
98,686 |
|
|
|
22,371 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and others, purchases and others, and finance transactions for the year ended December 31, 2014 amounted to
W3,330,435 million, W408,214 million and W102,447 million, respectively.
54
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
| (e) |
Significant transactions with related companies, excluding the controlling company, for the three-month periods ended June 30, 2015 and 2014 were as follows: |
| |
1) |
For the three-month period ended June 30, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Sales and others |
|
|
Purchases and others |
|
|
Finance
transaction |
|
| (in millions of Won) |
|
Sales |
|
|
Others |
|
|
Purchase of
material |
|
|
Others |
|
|
Loan (Collection) |
|
| SeAH Changwon Intergrated Special Steel
(formerly, POSCO Specialty Steel Co., Ltd.) |
|
W |
|
|
|
|
— |
|
|
|
19,001 |
|
|
|
1,982 |
|
|
|
— |
|
| New Songdo International City Development, LLC |
|
|
139,830 |
|
|
|
— |
|
|
|
— |
|
|
|
64 |
|
|
|
— |
|
| SNNC |
|
|
3,529 |
|
|
|
— |
|
|
|
— |
|
|
|
5,618 |
|
|
|
— |
|
| Posco e&c Songdo International Building |
|
|
1,568 |
|
|
|
— |
|
|
|
— |
|
|
|
6,401 |
|
|
|
— |
|
| VSC POSCO Steel Corporation |
|
|
10,417 |
|
|
|
— |
|
|
|
874 |
|
|
|
— |
|
|
|
— |
|
| USS-POSCO Industries |
|
|
78,362 |
|
|
|
— |
|
|
|
364 |
|
|
|
— |
|
|
|
— |
|
| CSP - Compania Siderurgica do Pecem |
|
|
214,432 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Zhongyue POSCO (Qinhuangdao)
Tinplate Industrial Co., Ltd |
|
|
18,652 |
|
|
|
— |
|
|
|
38,156 |
|
|
|
— |
|
|
|
195 |
|
| BX STEEL POSCO Cold Rolled Sheet Co., Ltd. |
|
|
— |
|
|
|
— |
|
|
|
9,217 |
|
|
|
— |
|
|
|
— |
|
| POS-SEAH STEEL WIRE(TIANJIN) CO., Ltd |
|
|
2,587 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
86 |
|
| POSCO SeAH Steel Wire(Nantong) Co., Ltd. |
|
|
9,316 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
191 |
|
| Zhangjiagang Pohang Refractories Co., Ltd. |
|
|
167 |
|
|
|
1 |
|
|
|
5,991 |
|
|
|
637 |
|
|
|
— |
|
| Sebang Steel |
|
|
— |
|
|
|
— |
|
|
|
6,771 |
|
|
|
— |
|
|
|
— |
|
| SHANGHAI WAIGAOQIAO FREE TRADE ZONE
LANSHENG DAEWOO IN’L TRADING CO., LTD. |
|
|
32,300 |
|
|
|
— |
|
|
|
3,040 |
|
|
|
3,189 |
|
|
|
— |
|
| DMSA/AMSA |
|
|
— |
|
|
|
4,530 |
|
|
|
— |
|
|
|
— |
|
|
|
11,133 |
|
| South-East Asia Gas Pipeline Company Ltd. |
|
|
— |
|
|
|
7,206 |
|
|
|
— |
|
|
|
— |
|
|
|
1,822 |
|
| Others |
|
|
105,650 |
|
|
|
141 |
|
|
|
5,693 |
|
|
|
1,489 |
|
|
|
(3,106 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
11,878 |
|
|
|
89,107 |
|
|
|
19,380 |
|
|
|
10,321 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
2) |
For the three-month period ended June 30, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Sales and others |
|
|
Purchases and others |
|
|
Finance
transaction |
|
| (in millions of Won) |
|
Sales |
|
|
Others |
|
|
Purchase of
material |
|
|
Others |
|
|
Loan (Collection) |
|
| New Songdo International City Development, LLC |
|
W |
|
|
|
|
— |
|
|
|
— |
|
|
|
14 |
|
|
|
— |
|
| SNNC |
|
|
44,324 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Posco e&c Songdo International Building |
|
|
1,553 |
|
|
|
— |
|
|
|
— |
|
|
|
5,874 |
|
|
|
— |
|
| POSCO PLANTEC CO., LTD |
|
|
4,871 |
|
|
|
— |
|
|
|
2,671 |
|
|
|
22,504 |
|
|
|
— |
|
| VSC POSCO Steel Corporation |
|
|
22 |
|
|
|
— |
|
|
|
3,067 |
|
|
|
— |
|
|
|
(414 |
) |
| USS-POSCO Industries |
|
|
123,451 |
|
|
|
— |
|
|
|
999 |
|
|
|
— |
|
|
|
— |
|
| Nickel Mining Company SAS |
|
|
3,357 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7,734 |
|
| AN KHANH NEW CITY DEVELOPMENT J.V CO., LTD. |
|
|
3,916 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,720 |
) |
| CSP - Compania Siderurgica do Pecem |
|
|
452,432 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Zhongyue POSCO (Qinhuangdao)
Tinplate Industrial Co., Ltd |
|
|
33,084 |
|
|
|
— |
|
|
|
24,994 |
|
|
|
— |
|
|
|
(555 |
) |
| POSCO SeAH Steel Wire(Nantong) Co., Ltd. |
|
|
12,166 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(653 |
) |
| Zhangjiagang Pohang Refractories Co., Ltd. |
|
|
349 |
|
|
|
— |
|
|
|
5,483 |
|
|
|
629 |
|
|
|
— |
|
| Sebang Steel |
|
|
— |
|
|
|
— |
|
|
|
13,718 |
|
|
|
— |
|
|
|
— |
|
| SHANGHAI WAIGAOQIAO FREE TRADE ZONE
LANSHENG DAEWOO IN’L TRADING CO., LTD. |
|
|
53,795 |
|
|
|
— |
|
|
|
— |
|
|
|
4,873 |
|
|
|
— |
|
| DMSA/AMSA |
|
|
— |
|
|
|
1,412 |
|
|
|
— |
|
|
|
— |
|
|
|
4,827 |
|
| South-East Asia Gas Pipeline Company Ltd. |
|
|
— |
|
|
|
6,509 |
|
|
|
— |
|
|
|
— |
|
|
|
6,418 |
|
| Others |
|
|
39,831 |
|
|
|
1,655 |
|
|
|
10,707 |
|
|
|
844 |
|
|
|
12,356 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
9,576 |
|
|
|
61,639 |
|
|
|
34,738 |
|
|
|
26,993 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
55
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
| (f) |
The related account balances of significant transactions with related companies, excluding the controlling company, as of June 30, 2015 and December 31, 2014 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Receivables |
|
|
Payables |
|
| (in millions of Won) |
|
Trade accounts
and
notes receivable |
|
|
Loans |
|
|
Others |
|
|
Total |
|
|
Trade accounts
and
notes payable |
|
|
Others |
|
|
Total |
|
| SeAH Changwon Intergrated Special Steel
(formerly, POSCO Specialty Steel Co., Ltd.) |
|
W |
|
|
|
|
— |
|
|
|
1,194 |
|
|
|
12,156 |
|
|
|
4,324 |
|
|
|
21 |
|
|
|
4,345 |
|
| New Songdo International City Development, LLC |
|
|
270,681 |
|
|
|
— |
|
|
|
32,810 |
|
|
|
303,491 |
|
|
|
— |
|
|
|
52 |
|
|
|
52 |
|
| Posco e&c Songdo International Building |
|
|
5,821 |
|
|
|
— |
|
|
|
12,915 |
|
|
|
18,736 |
|
|
|
— |
|
|
|
2 |
|
|
|
2 |
|
| VSC POSCO Steel Corporation |
|
|
8,162 |
|
|
|
— |
|
|
|
— |
|
|
|
8,162 |
|
|
|
38 |
|
|
|
— |
|
|
|
38 |
|
| USS-POSCO Industries |
|
|
183,482 |
|
|
|
— |
|
|
|
— |
|
|
|
183,482 |
|
|
|
181 |
|
|
|
— |
|
|
|
181 |
|
| Nickel Mining Company SAS |
|
|
881 |
|
|
|
16,862 |
|
|
|
60 |
|
|
|
17,803 |
|
|
|
— |
|
|
|
4,670 |
|
|
|
4,670 |
|
| AN KHANH NEW CITY DEVELOPMENT J.V CO., LTD. |
|
|
60,913 |
|
|
|
56,205 |
|
|
|
290 |
|
|
|
117,408 |
|
|
|
— |
|
|
|
3,984 |
|
|
|
3,984 |
|
| CSP - Compania Siderurgica do Pecem |
|
|
351,782 |
|
|
|
— |
|
|
|
150,465 |
|
|
|
502,247 |
|
|
|
— |
|
|
|
71,659 |
|
|
|
71,659 |
|
| Zhongyue POSCO (Qinhuangdao)
Tinplate Industrial Co., Ltd |
|
|
19,088 |
|
|
|
11,466 |
|
|
|
5 |
|
|
|
30,559 |
|
|
|
6,689 |
|
|
|
— |
|
|
|
6,689 |
|
| PT. Batutua Tembaga Raya |
|
|
— |
|
|
|
35,325 |
|
|
|
— |
|
|
|
35,325 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO SeAH Steel Wire(Nantong) Co., Ltd. |
|
|
8,472 |
|
|
|
11,241 |
|
|
|
44 |
|
|
|
19,757 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| SHANGHAI WAIGAOQIAO FREE TRADE ZONE
LANSHENG DAEWOO IN’L TRADING CO., LTD. |
|
|
101,998 |
|
|
|
— |
|
|
|
— |
|
|
|
101,998 |
|
|
|
33 |
|
|
|
— |
|
|
|
33 |
|
| DMSA/AMSA |
|
|
4,736 |
|
|
|
152,419 |
|
|
|
219 |
|
|
|
157,374 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| South-East Asia Gas Pipeline Company Ltd. |
|
|
— |
|
|
|
289,356 |
|
|
|
— |
|
|
|
289,356 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Others |
|
|
167,654 |
|
|
|
46,732 |
|
|
|
13,842 |
|
|
|
228,228 |
|
|
|
9,000 |
|
|
|
22,899 |
|
|
|
31,899 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
619,606 |
|
|
|
211,844 |
|
|
|
2,026,082 |
|
|
|
20,265 |
|
|
|
103,287 |
|
|
|
123,552 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Receivables |
|
|
Payables |
|
| (in millions of Won) |
|
Trade accounts
and
notes receivable |
|
|
Loans |
|
|
Others |
|
|
Total |
|
|
Trade accounts
and
notes payable |
|
|
Others |
|
|
Total |
|
| METAPOLIS Co., Ltd. |
|
W |
|
|
|
|
26,000 |
|
|
|
6,712 |
|
|
|
61,149 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| New Songdo International City Development, LLC |
|
|
336,796 |
|
|
|
— |
|
|
|
52,969 |
|
|
|
389,765 |
|
|
|
— |
|
|
|
20 |
|
|
|
20 |
|
| SNNC |
|
|
19,173 |
|
|
|
— |
|
|
|
1,937 |
|
|
|
21,110 |
|
|
|
3,395 |
|
|
|
98 |
|
|
|
3,493 |
|
| CHUNGJU ENTERPRISE CITY DEVELOPMENT Co.,Ltd |
|
|
48,804 |
|
|
|
— |
|
|
|
— |
|
|
|
48,804 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| UITrans LRT Co., Ltd. |
|
|
33,424 |
|
|
|
— |
|
|
|
— |
|
|
|
33,424 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| USS-POSCO Industries |
|
|
150,557 |
|
|
|
— |
|
|
|
— |
|
|
|
150,557 |
|
|
|
153 |
|
|
|
— |
|
|
|
153 |
|
| Nickel Mining Company SAS |
|
|
609 |
|
|
|
16,488 |
|
|
|
58 |
|
|
|
17,155 |
|
|
|
— |
|
|
|
4,729 |
|
|
|
4,729 |
|
| AN KHANH NEW CITY DEVELOPMENT J.V CO., LTD. |
|
|
51,166 |
|
|
|
54,960 |
|
|
|
282 |
|
|
|
106,408 |
|
|
|
— |
|
|
|
4,020 |
|
|
|
4,020 |
|
| CSP - Compania Siderurgica do Pecem |
|
|
366,914 |
|
|
|
— |
|
|
|
114,041 |
|
|
|
480,955 |
|
|
|
— |
|
|
|
167,302 |
|
|
|
167,302 |
|
| Zhongyue POSCO (Qinhuangdao)
Tinplate Industrial Co., Ltd |
|
|
31,521 |
|
|
|
11,212 |
|
|
|
5 |
|
|
|
42,738 |
|
|
|
12,000 |
|
|
|
— |
|
|
|
12,000 |
|
| PT. Batutua Tembaga Raya |
|
|
— |
|
|
|
34,342 |
|
|
|
— |
|
|
|
34,342 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO SeAH Steel Wire(Nantong) Co., Ltd. |
|
|
13,539 |
|
|
|
10,992 |
|
|
|
43 |
|
|
|
24,574 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| SHANGHAI WAIGAOQIAO FREE TRADE ZONE
LANSHENG DAEWOO IN’L TRADING CO., LTD. |
|
|
139,831 |
|
|
|
— |
|
|
|
— |
|
|
|
139,831 |
|
|
|
35 |
|
|
|
— |
|
|
|
35 |
|
| DMSA/AMSA |
|
|
4,211 |
|
|
|
140,544 |
|
|
|
445 |
|
|
|
145,200 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| South-East Asia Gas Pipeline Company Ltd. |
|
|
— |
|
|
|
295,352 |
|
|
|
— |
|
|
|
295,352 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Others |
|
|
80,772 |
|
|
|
25,437 |
|
|
|
10,676 |
|
|
|
116,885 |
|
|
|
8,402 |
|
|
|
23,919 |
|
|
|
32,321 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
615,327 |
|
|
|
187,168 |
|
|
|
2,108,249 |
|
|
|
23,985 |
|
|
|
200,088 |
|
|
|
224,073 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (g) |
For the six-month periods ended June 30, 2015 and 2014, details of compensation to key management officers were as follows: |
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
June 30, 2015 |
|
|
June 30, 2014 |
|
| Short-term benefits |
|
W |
|
|
|
|
55,740 |
|
| Retirement benefits |
|
|
13,119 |
|
|
|
14,524 |
|
| Long-term benefits |
|
|
9,728 |
|
|
|
10,301 |
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
80,565 |
|
|
|
|
|
|
|
|
|
|
56
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
33. Commitments and Contingencies
| (a) |
Details of guarantees |
Contingent liabilities on outstanding guarantees provided by the Company as of
June 30, 2015, are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
|
|
|
|
Guarantee
limit |
|
|
Guarantee
amount |
|
| Guarantor |
|
Guarantee
beneficiary |
|
Financial
institution |
|
Foreign
currency |
|
|
Won
equivalent |
|
|
Foreign
currency |
|
|
Won
equivalent |
|
| [The Company] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| POSCO |
|
POSCO ASSAN TST STEEL INDUSTRY |
|
HSBC and others |
|
USD |
|
|
188,392,500 |
|
|
|
211,773 |
|
|
USD |
|
|
150,714,000 |
|
|
|
169,419 |
|
|
|
POSCO COATED STEEL (THAILAND) CO., LTD. |
|
The Great & Co Co., Ltd.(SPC) |
|
THB |
|
|
5,501,000,000 |
|
|
|
182,963 |
|
|
THB |
|
|
5,501,000,000 |
|
|
|
182,963 |
|
|
|
POSCO Electrical Steel India Private Limited |
|
ING and others |
|
USD |
|
|
83,784,000 |
|
|
|
94,182 |
|
|
USD |
|
|
83,784,000 |
|
|
|
94,182 |
|
|
|
POSCO Investment Co., Ltd. |
|
BOA and others |
|
USD |
|
|
285,000,000 |
|
|
|
320,369 |
|
|
USD |
|
|
253,000,000 |
|
|
|
284,397 |
|
|
|
POSCO Maharashtra Steel Private Limited |
|
Export-Import Bank of Korea and others |
|
USD |
|
|
566,069,000 |
|
|
|
636,318 |
|
|
USD |
|
|
523,169,000 |
|
|
|
588,094 |
|
|
|
POSCO MEXICO S.A. DE C.V. |
|
HSBC and others |
|
USD |
|
|
234,725,000 |
|
|
|
263,855 |
|
|
USD |
|
|
234,725,000 |
|
|
|
263,855 |
|
|
|
POSCO SS-VINA |
|
Export-Import Bank of Korea and others |
|
USD |
|
|
354,351,050 |
|
|
|
398,326 |
|
|
USD |
|
|
354,351,050 |
|
|
|
398,326 |
|
|
|
POSCO VST CO., LTD. |
|
ANZ and others |
|
USD |
|
|
65,000,000 |
|
|
|
73,067 |
|
|
USD |
|
|
48,750,000 |
|
|
|
54,801 |
|
|
|
POSCO(Guangdong)
Automotive Steel Co., Ltd. |
|
SMBC and others |
|
USD |
|
|
65,000,000 |
|
|
|
73,067 |
|
|
USD |
|
|
65,000,000 |
|
|
|
73,067 |
|
|
|
POSCO-VIETNAM Co., Ltd. |
|
Export-Import Bank of Korea and others |
|
USD |
|
|
196,000,000 |
|
|
|
220,324 |
|
|
USD |
|
|
196,000,000 |
|
|
|
220,324 |
|
|
|
PT. KRAKATAU POSCO |
|
Export-Import Bank of Korea and others |
|
USD |
|
|
1,350,300,000 |
|
|
|
1,517,873 |
|
|
USD |
|
|
1,245,056,523 |
|
|
|
1,399,567 |
|
|
|
Zhangjiagang Pohang Stainless Steel Co., Ltd. |
|
MIZUHO and others |
|
USD |
|
|
130,000,000 |
|
|
|
146,133 |
|
|
USD |
|
|
130,000,000 |
|
|
|
146,133 |
|
| Daewoo International Corporation |
|
Brazil Sao Paulo Steel Processing Center |
|
MIZUHO |
|
USD |
|
|
30,000,000 |
|
|
|
33,723 |
|
|
USD |
|
|
30,000,000 |
|
|
|
33,723 |
|
|
|
Daewoo International INDIA Private Ltd. |
|
Shinhan Bank |
|
USD |
|
|
30,000,000 |
|
|
|
33,723 |
|
|
USD |
|
|
5,800,000 |
|
|
|
6,520 |
|
|
|
Daewoo Paper Manufacturing Co., Ltd. |
|
HSBC |
|
USD |
|
|
12,500,000 |
|
|
|
14,051 |
|
|
USD |
|
|
12,500,000 |
|
|
|
14,051 |
|
|
|
DAEWOO TEXTILE BUKHARA LLC |
|
Export-Import Bank of Korea |
|
USD |
|
|
20,000,000 |
|
|
|
22,482 |
|
|
USD |
|
|
14,000,000 |
|
|
|
15,737 |
|
|
|
POSCO ASSAN TST STEEL INDUSTRY |
|
ING and others |
|
USD |
|
|
20,932,500 |
|
|
|
23,530 |
|
|
USD |
|
|
16,746,000 |
|
|
|
18,824 |
|
|
|
PT. Bio Inti Agrindo |
|
Export-Import Bank of Korea |
|
USD |
|
|
56,000,000 |
|
|
|
62,950 |
|
|
USD |
|
|
56,000,000 |
|
|
|
62,950 |
|
| POSCO ENGINEERING &
CONSTRUCTION CO.,LTD. |
|
HONG KONG POSCO E&C (CHINA) INVESTMENT Co.,Ltd. |
|
Woori Bank and others |
|
USD |
|
|
147,000,000 |
|
|
|
165,243 |
|
|
USD |
|
|
134,000,000 |
|
|
|
150,629 |
|
|
|
POSCO E&C Vietnam Co., Ltd. |
|
Export-Import Bank of Korea |
|
USD |
|
|
16,500,000 |
|
|
|
18,548 |
|
|
USD |
|
|
16,500,000 |
|
|
|
18,548 |
|
|
|
POSCO ENGINEERING & CONSTRUCTION DO BRAZIL LTDA. |
|
HSBC |
|
USD |
|
|
100,000,000 |
|
|
|
112,410 |
|
|
USD |
|
|
100,000,000 |
|
|
|
112,410 |
|
|
|
SANTOSCMI S.A. |
|
SG BANK and others |
|
USD |
|
|
70,000,000 |
|
|
|
78,687 |
|
|
USD |
|
|
68,500,000 |
|
|
|
77,001 |
|
|
|
POSCO Engineering and Construction India Private Limited |
|
Shinhan Bank |
|
INR |
|
|
383,201,941 |
|
|
|
6,760 |
|
|
INR |
|
|
383,201,941 |
|
|
|
6,760 |
|
| POSCO ICT |
|
PT.POSCO ICT INDONESIA |
|
POSCO Investment |
|
USD |
|
|
2,400,000 |
|
|
|
2,698 |
|
|
USD |
|
|
2,400,000 |
|
|
|
2,698 |
|
| POSCO Engineering CO.,Ltd |
|
PT PEN INDONESIA |
|
POSCO Investment |
|
USD |
|
|
6,000,000 |
|
|
|
6,745 |
|
|
USD |
|
|
6,000,000 |
|
|
|
6,745 |
|
| POSCO CHEMTECH |
|
KRAKATAU POS-CHEM DONG-SUH CHEMICAL |
|
Hana Bank |
|
USD |
|
|
5,883,750 |
|
|
|
6,614 |
|
|
USD |
|
|
5,204,992 |
|
|
|
5,851 |
|
|
|
PT.Krakatau Posco Chemtech
Calcination |
|
KEB Bank |
|
USD |
|
|
33,600,000 |
|
|
|
37,770 |
|
|
USD |
|
|
30,117,647 |
|
|
|
33,855 |
|
| POSCO PLANTEC Co., Ltd. |
|
POSCO PLANTEC Thailand CO. LTD |
|
Woori Bank |
|
THB |
|
|
45,000,000 |
|
|
|
1,497 |
|
|
THB |
|
|
45,000,000 |
|
|
|
1,497 |
|
| POSCO Processing&Service |
|
POSCO Canada Ltd. |
|
Hana Bank |
|
USD |
|
|
12,484,500 |
|
|
|
14,034 |
|
|
USD |
|
|
12,484,500 |
|
|
|
14,034 |
|
|
|
POSCO Gulf SFC LLC |
|
KEB Bank and others |
|
USD |
|
|
33,000,000 |
|
|
|
37,095 |
|
|
USD |
|
|
33,000,000 |
|
|
|
37,095 |
|
| DAEWOO TEXTILE BUKHARA LLC |
|
DAEWOO TEXTILE FERGANA LLC |
|
National Bank of Uzbekistan |
|
USD |
|
|
6,127,060 |
|
|
|
6,887 |
|
|
USD |
|
|
6,127,060 |
|
|
|
6,887 |
|
| DAEWOO TEXTILE FERGANA LLC |
|
DAEWOO TEXTILE BUKHARA LLC |
|
Bukhara TEX |
|
USD |
|
|
2,551,229 |
|
|
|
2,868 |
|
|
USD |
|
|
2,551,229 |
|
|
|
2,868 |
|
| POSCO ENGINEERING &
CONSTRUCTION DO BRAZIL LTDA. |
|
SANTOS CMI ENGENHARIA E CONSTRUCOES LTDA |
|
MILLS ESTRUTURAS E SERVICOS DE ENGENHARIA S.A |
|
BRL |
|
|
2,000,000 |
|
|
|
721 |
|
|
BRL |
|
|
2,000,000 |
|
|
|
721 |
|
| POSCO Investment Co., Ltd. |
|
Zhangjiagang Pohang Stainless Steel Co., Ltd. |
|
BOA and others |
|
USD |
|
|
103,000,000 |
|
|
|
115,782 |
|
|
USD |
|
|
73,000,000 |
|
|
|
82,059 |
|
| POSCO-China Holding Corp. |
|
DONG FANG JIN HONG |
|
Bank of Communications and others |
|
CNY |
|
|
1,300,000,000 |
|
|
|
235,365 |
|
|
CNY |
|
|
1,257,029,869 |
|
|
|
227,585 |
|
| POSCO-Japan Co., Ltd. |
|
POSCO-JEPC Co., Ltd. |
|
MIZUHO and others |
|
JPY |
|
|
1,021,811,730 |
|
|
|
9,372 |
|
|
JPY |
|
|
223,470,040 |
|
|
|
2,050 |
|
|
|
POSCO-JWPC Co., Ltd. |
|
Higo Bank and others |
|
JPY |
|
|
974,000,000 |
|
|
|
8,933 |
|
|
JPY |
|
|
821,800,000 |
|
|
|
7,537 |
|
|
|
Xenesys Inc. |
|
Aozora Bank |
|
JPY |
|
|
250,000,000 |
|
|
|
2,293 |
|
|
JPY |
|
|
200,000,000 |
|
|
|
1,834 |
|
| SANTOSCMI S.A. |
|
COMPANIADEAUTOMATIZACION
&CONTROL, GENESYS S.A. |
|
Banco de Guayaquil and others |
|
USD |
|
|
550,000 |
|
|
|
618 |
|
|
USD |
|
|
541,388 |
|
|
|
609 |
|
| POSCO COATED & COLOR STEEL Co., Ltd. |
|
Myanmar POSCO C&C Company, Limited. |
|
POSCO Investment |
|
USD |
|
|
13,986,947 |
|
|
|
15,723 |
|
|
USD |
|
|
13,986,947 |
|
|
|
15,723 |
|
| POSCO ENERGY CO., LTD. |
|
PT. KRAKATAU POSCO ENERGY |
|
Export-Import Bank of Korea and others |
|
USD |
|
|
193,900,000 |
|
|
|
217,963 |
|
|
USD |
|
|
177,806,814 |
|
|
|
199,873 |
|
57
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
|
|
|
|
Guarantee limit |
|
|
Guarantee amount |
|
| Guarantors |
|
Guarantee
beneficiary |
|
Financial
institution |
|
Foreign
currency |
|
|
Won
equivalent |
|
|
Foreign
currency |
|
|
Won
equivalent |
|
| [Associates and joint ventures] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| POSCO |
|
CSP - Compania Siderurgica do Pecem |
|
KDB Bank |
|
USD |
|
|
420,000,000 |
|
|
|
472,121 |
|
|
USD |
|
|
237,777,547 |
|
|
|
267,285 |
|
|
|
|
|
BNDES and others |
|
BRL |
|
|
464,060,000 |
|
|
|
167,396 |
|
|
BRL |
|
|
187,340,618 |
|
|
|
67,578 |
|
|
|
LLP POSUK Titanium |
|
KB Bank |
|
USD |
|
|
15,000,000 |
|
|
|
16,862 |
|
|
USD |
|
|
15,000,000 |
|
|
|
16,862 |
|
| Daewoo International Corporation |
|
DMSA/AMSA |
|
Export-Import Bank of Korea
and others |
|
USD |
|
|
165,133,333 |
|
|
|
185,626 |
|
|
USD |
|
|
140,000,000 |
|
|
|
157,374 |
|
|
|
GLOBAL KOMSCO Daewoo LLC |
|
ICBC and others |
|
USD |
|
|
8,225,000 |
|
|
|
9,246 |
|
|
USD |
|
|
8,225,000 |
|
|
|
9,246 |
|
| POSCO ENGINEERING & CONSTRUCTION CO.,LTD. |
|
New Songdo International City Development, LLC |
|
Others |
|
KRW |
|
|
340,000 |
|
|
|
340,000 |
|
|
KRW |
|
|
327,400 |
|
|
|
327,400 |
|
|
|
Posco e&c Songdo International Building |
|
Others |
|
KRW |
|
|
356,600 |
|
|
|
356,600 |
|
|
KRW |
|
|
356,600 |
|
|
|
356,600 |
|
| POSCO ICT |
|
Incheon-Gimpo Expressway Co., Ltd. |
|
KDB Bank |
|
KRW |
|
|
100,000 |
|
|
|
100,000 |
|
|
KRW |
|
|
100,000 |
|
|
|
100,000 |
|
|
|
UITrans LRT Co., Ltd. |
|
KB Bank |
|
KRW |
|
|
76,000 |
|
|
|
76,000 |
|
|
KRW |
|
|
76,000 |
|
|
|
76,000 |
|
| POSCO CHEMTECH |
|
PT.INDONESIA POS CHEMTECH CHOSUN Ref |
|
KEB Bank |
|
USD |
|
|
6,000,000 |
|
|
|
6,745 |
|
|
USD |
|
|
5,100,000 |
|
|
|
5,733 |
|
| POSCO Processing&Service |
|
Sebang Steel |
|
Shinhan Bank |
|
JPY |
|
|
245,000,000 |
|
|
|
2,247 |
|
|
JPY |
|
|
245,000,000 |
|
|
|
2,247 |
|
| Daewoo (China) Co., Ltd. |
|
SHANGHAI LANSHENG DAEWOO CORP. |
|
Bank of Communications |
|
CNY |
|
|
30,000,000 |
|
|
|
5,432 |
|
|
CNY |
|
|
30,000,000 |
|
|
|
5,432 |
|
|
|
SHANGHAI WAIGAOQIAO FREE TRADE
ZONE LANSHENG DAEWOO IN’L TRADING CO., LTD. |
|
Bank of Communications |
|
CNY |
|
|
50,000,000 |
|
|
|
9,053 |
|
|
CNY |
|
|
50,000,000 |
|
|
|
9,053 |
|
| [Others] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Daewoo International Corporation |
|
Ambatovy Project Investments Limited and others |
|
Export-Import Bank of korea |
|
USD |
|
|
87,272,727 |
|
|
|
98,103 |
|
|
USD |
|
|
67,047,518 |
|
|
|
75,368 |
|
| BLUE O&M Co., Ltd. |
|
Korea Electric Power Corporation |
|
Seoul Guarantee Insurance Co., Ltd. |
|
KRW |
|
|
2 |
|
|
|
2 |
|
|
KRW |
|
|
2 |
|
|
|
2 |
|
| POSCO ENGINEERING & CONSTRUCTION CO.,LTD. |
|
Eco-city Corporation and others |
|
Others |
|
KRW |
|
|
735,150 |
|
|
|
735,150 |
|
|
KRW |
|
|
493,580 |
|
|
|
493,580 |
|
|
|
THE GALE INVESTMENTS COMPANY, L.L.C. |
|
Others |
|
USD |
|
|
50,000,000 |
|
|
|
56,205 |
|
|
USD |
|
|
50,000,000 |
|
|
|
56,205 |
|
| POSCO ICT |
|
SMS Energy and others |
|
Hana Bank and others |
|
KRW |
|
|
198,960 |
|
|
|
198,960 |
|
|
KRW |
|
|
198,960 |
|
|
|
198,960 |
|
|
|
BTL business and others |
|
Kyobo Life Insurance Co.,Ltd and others |
|
KRW |
|
|
1,821,615 |
|
|
|
1,821,615 |
|
|
KRW |
|
|
1,821,615 |
|
|
|
1,821,615 |
|
|
|
Hyochun |
|
Daegu Bank and others |
|
KRW |
|
|
40,100 |
|
|
|
40,100 |
|
|
KRW |
|
|
40,100 |
|
|
|
40,100 |
|
| POSCO Engineering CO., Ltd |
|
GD |
|
Hana Bank and others |
|
KRW |
|
|
22,440 |
|
|
|
22,440 |
|
|
KRW |
|
|
13,069 |
|
|
|
13,069 |
|
| POSCO PLANTEC Co., Ltd. |
|
Gyopo Wind Power Co., Ltd. and others |
|
NH Investment & Securities Co., Ltd. and others |
|
KRW |
|
|
161,768 |
|
|
|
161,768 |
|
|
KRW |
|
|
161,768 |
|
|
|
161,768 |
|
| HUME COAL PTY LTD |
|
Department of Trade and Investment (NSW Government) |
|
Woori Bank |
|
AUD |
|
|
804,000 |
|
|
|
694 |
|
|
AUD |
|
|
804,000 |
|
|
|
694 |
|
| POSCO AUSTRALIA PTY LTD |
|
Department of Trade and Investment (NSW Government) |
|
Woori Bank |
|
AUD |
|
|
8,023,765 |
|
|
|
6,923 |
|
|
AUD |
|
|
8,023,765 |
|
|
|
6,923 |
|
| POSCO ENGINEERING & CONSTRUCTION DO BRAZIL LTDA. |
|
SEIL DO BRASIL CONSTRUCAO LTDA |
|
MILLS ESTRUTURAS E SERVICOS DE ENGENHARIA S.A |
|
BRL |
|
|
1,100,000 |
|
|
|
397 |
|
|
BRL |
|
|
1,100,000 |
|
|
|
397 |
|
| POSCO(Suzhou) Automotive Processing Center Co., Ltd. |
|
POS Infra auto |
|
Shinhan Bank |
|
CNY |
|
|
2,925,000 |
|
|
|
530 |
|
|
CNY |
|
|
2,242,500 |
|
|
|
406 |
|
|
|
|
|
|
|
USD |
|
|
405,000 |
|
|
|
455 |
|
|
USD |
|
|
405,000 |
|
|
|
455 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
USD |
|
|
5,187,073,596 |
|
|
|
5,830,794 |
|
|
USD |
|
|
4,625,371,215 |
|
|
|
5,199,383 |
|
|
|
|
|
|
|
KRW |
|
|
3,852,635 |
|
|
|
3,852,635 |
|
|
KRW |
|
|
3,589,094 |
|
|
|
3,589,094 |
|
|
|
|
|
|
|
CNY |
|
|
1,382,925,000 |
|
|
|
250,380 |
|
|
CNY |
|
|
1,339,272,369 |
|
|
|
242,476 |
|
|
|
|
|
|
|
THB |
|
|
5,546,000,000 |
|
|
|
184,460 |
|
|
THB |
|
|
5,546,000,000 |
|
|
|
184,460 |
|
|
|
|
|
|
|
INR |
|
|
383,201,941 |
|
|
|
6,760 |
|
|
INR |
|
|
383,201,941 |
|
|
|
6,760 |
|
|
|
|
|
|
|
JPY |
|
|
2,490,811,730 |
|
|
|
22,845 |
|
|
JPY |
|
|
1,490,270,040 |
|
|
|
13,668 |
|
|
|
|
|
|
|
AUD |
|
|
8,827,765 |
|
|
|
7,617 |
|
|
AUD |
|
|
8,827,765 |
|
|
|
7,617 |
|
|
|
|
|
|
|
BRL |
|
|
467,160,000 |
|
|
|
168,514 |
|
|
BRL |
|
|
190,440,618 |
|
|
|
68,696 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (b) |
POSCO ENGINEERING & CONSTRUCTION Co., Ltd. has provided completion guarantees for Samsung C&T Corporation amounting to W1,154,593 million while Samsung C&T Corporation has provided
construction guarantees or payment guarantees on customers’ borrowings on behalf of POSCO ENGINEERING & CONSTRUCTION Co., Ltd. amounting to W805,411 million as of June 30, 2015. |
58
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
Details of other commitments of the Company as of June 30, 2015, are as follows:
|
|
|
| POSCO |
|
POSCO entered into long-term contracts to purchase iron ore, coal, nickel and others. The contracts of iron ore and coal generally have terms of more than three years and the contracts of nickel have terms of more than one year.
These contracts provide for periodic price adjustments based on the market price. As of June 30, 2015, 79 million tons of iron ore and 28 million tons of coal remained to be purchased under such long-term contracts. |
|
|
|
|
POSCO entered into an agreement with Tangguh Liquefied Natural Gas (LNG) Consortium in Indonesia to purchase 550 thousand tons of LNG annually for 20 years commencing in August 2005. The purchase price is subject to change, based
on changes of the monthly standard oil price (JCC) and with a price ceiling. |
|
|
|
|
As of June 30, 2015, POSCO entered into commitments with Korea National Oil Corporation for long-term foreign currency borrowings, which are limited up to the amount of USD 12.01 million, USD 8.25 million and USD 6.49 million.
The borrowings are related to the exploration of gas hydrates in Aral Sea, Uzbekistan, the exploration of gas hydrates in Namangan-Chust and the exploration of gas hydrates in Western Fergana-Chenavard, respectively. The repayment of the borrowings
depends on the success of the projects. POSCO is not liable for the repayment of full or part of the money borrowed if the respective projects fail. POSCO has agreed to pay a certain portion of its profits under certain conditions, as defined by the
borrowing agreements. As of June 30, 2015, the remaining balance of the borrrowings amount to USD 12.88 million. |
|
|
|
|
POSCO has provided a supplemental funding agreement, as the largest shareholder, as requested from the creditors, including Norddeutsche Landesbank, for seamless funding to POSCO Energy Co., Ltd. under construction of new power
plant. |
|
|
| POSCO ENGINEERING & CONSTRUCTION Co., LTD. |
|
As of June 30, 2015, POSCO ENGINEERING & CONSTRUCTION Co., LTD. has comprehensive loan agreements of up to W283.5 billion and USD 268 million with Woori Bank and W98 billion and USD 843
million with Korea Exchange Bank. Also, POSCO E&C Co.,Ltd. has bank overdraft agreements of up to W20 billion with WooriBank which is included in the limit of comprehensive loan agreements and W3 billion with
Korea Exchange Bank. |
|
|
| POSCO ICT |
|
As of June 30, 2015, in relation to contract enforcement, POSCO ICT Co., Ltd. was provided with W72,667 million and W39,799 million guaranties from Korea Software Financial Cooperative and Seoul
Guarantee Insurance, respectively. |
59
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
| (d) |
Litigation in progress |
As of June 30, 2015, the Company and certain subsidiaries are defendants in legal
actions arising from the normal course of business.
| |
1) |
Civil lawsuits with Nippon Steel & Sumitomo Metal Corporation |
During the April, 2012,
Nippon Steel & Sumitomo Metal Corporation filed a civil lawsuit in the Tokyo District Court of Japan against POSCO and POSCO Japan Co., Ltd., a subsidiary of POSCO, to prohibit production and sales of grain oriented electrical steel sheets
using improperly acquired trade secrets and seeking compensation from the Company of W904.3 billion. Through preparatory procedures up to June 30, 2015, the Company asserts that applicable jurisdiction and law of this lawsuit
are the Republic of Korea and Korean laws and as the related manufacturing technology of grain oriented electrical steel sheets were publicly available, it should not be regarded as trade secrets. Also, the Company asserts that the related facts
occurred a long time ago, resulting in expiration of the claims to seek any compensation due to the statute of limitation. As of June 30, 2015, the Japan court has not made any judgments on this matter. Since the Company does not believe that
it has any present obligation, the Company has not recorded any provision for this lawsuit as of June 30, 2015.
| |
2) |
Other lawsuits and claims |
The Company is involved in 207 other lawsuits and claims for alleged
damages aggregating to W511.2 billion as defendant as of June 30, 2015, which arose in the ordinary course of business. The Company has recognized provisions amounting to W44.2 billion for three lawsuits based
on its reliable estimate of outflow of resources. However, the Company has not recognized any provisions for the other lawsuits and claims since the Company believes that it does not have a present obligation as of June 30, 2015.
|
|
|
| Company |
|
Description |
| POSCO |
|
POSCO has provided two blanks check to Korea Resources Corporation and six blank promissory notes and three blank checks to Korea National Oil Corporation as collateral for outstanding loans. |
|
|
| POSCO ENGINEERING & CONSTRUCTION Co., LTD. |
|
As of June 30, 2015, POSCO E&C Co., Ltd. has provided thirty-five blank checks and eight blank promissory notes as collateral for agreements and outstanding loans. |
|
|
| Daewoo International Corporation |
|
As of June 30, 2015, Daewoo International Corporation has provided forty-five blank promissory notes and seventeen blank checks to Korea National Oil Corporation as collateral for the guarantee on performance for contracts and
others. |
|
|
| POSCO ICT |
|
As of June 30, 2015, POSCO ICT has provided two blank promissory notes and sixteen blank checks to financial institutions as collateral for the guarantee on performance for contracts and others. |
60
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
34. Cash Flows from Operating Activities
Adjustments for operating cash flows for the six-month periods ended June 30, 2015 and 2014 were as follows:
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
June 30, 2015 |
|
|
June 30, 2014 |
|
| Trade accounts and notes receivable |
|
W |
|
|
|
|
(891,569 |
) |
| Other receivables |
|
|
333,630 |
|
|
|
163,543 |
|
| Inventories |
|
|
997,492 |
|
|
|
(1,192,340 |
) |
| Other current assets |
|
|
(31,932 |
) |
|
|
(296,217 |
) |
| Other long-term assets |
|
|
12,090 |
|
|
|
(44,084 |
) |
| Trade accounts and notes payable |
|
|
(543,579 |
) |
|
|
(70,736 |
) |
| Other payables |
|
|
(156,297 |
) |
|
|
(65,356 |
) |
| Other current liabilities |
|
|
(51,087 |
) |
|
|
258,609 |
|
| Provisions |
|
|
(98,564 |
) |
|
|
(98,405 |
) |
| Payment of severance benefits |
|
|
(114,644 |
) |
|
|
(91,000 |
) |
| Plan assets |
|
|
22,410 |
|
|
|
(37,810 |
) |
| Other long-term liabilities |
|
|
(24,258 |
) |
|
|
(50,436 |
) |
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
(2,415,801 |
) |
|
|
|
|
|
|
|
|
|
35. Operating Segments
| (a) |
The Company’s operating businesses are organized based on the nature of markets and customers. The Company has four reportable operating segments— steel, construction, trading and other. The steel segment
includes production of steel products and revenue of such products. The engineering and construction segment includes planning, designing and construction of industrial plants, civil engineering projects and commercial and residential buildings,
both in Korea and overseas. The trading segment consists of exporting and importing a wide range of steel products and raw materials that are both obtained from and supplied to POSCO, as well as between other suppliers and purchasers in Korea and
overseas. Other segment includes power generation, liquefied natural gas production, network and system integration and logistics. The policies of classification and measurement on operating segments were the same as those that applied to the
consolidated financial statements. |
61
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
| (b) |
Information about reportable segments for the six-month periods ended June 30, 2015 and 2014 was as follows: |
| |
1) |
For the six-month period ended June 30, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Steel |
|
|
Trading |
|
|
Construction |
|
|
Others |
|
|
Total |
|
| External revenues |
|
W |
|
|
|
|
9,775,495 |
|
|
|
4,250,096 |
|
|
|
1,616,085 |
|
|
|
30,290,403 |
|
| Internal revenues |
|
|
8,620,111 |
|
|
|
4,306,312 |
|
|
|
745,678 |
|
|
|
1,358,963 |
|
|
|
15,031,064 |
|
| Including inter segment revenue |
|
|
4,690,929 |
|
|
|
2,193,268 |
|
|
|
618,535 |
|
|
|
1,296,045 |
|
|
|
8,798,777 |
|
| Total revenues |
|
|
23,268,838 |
|
|
|
14,081,807 |
|
|
|
4,995,774 |
|
|
|
2,975,048 |
|
|
|
45,321,467 |
|
| Segment profits |
|
|
342,388 |
|
|
|
155,537 |
|
|
|
(213,421 |
) |
|
|
54,675 |
|
|
|
339,179 |
|
| |
2) |
For the six-month period ended June 30, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Steel |
|
|
Trading |
|
|
Construction |
|
|
Others |
|
|
Total |
|
| External revenues |
|
W |
|
|
|
|
10,507,270 |
|
|
|
4,070,253 |
|
|
|
1,897,073 |
|
|
|
32,143,700 |
|
| Internal revenues |
|
|
8,858,480 |
|
|
|
4,801,245 |
|
|
|
1,192,426 |
|
|
|
1,533,804 |
|
|
|
16,385,955 |
|
| Including inter segment revenue |
|
|
4,973,084 |
|
|
|
2,463,935 |
|
|
|
1,043,356 |
|
|
|
1,432,504 |
|
|
|
9,912,879 |
|
| Total revenues |
|
|
24,527,584 |
|
|
|
15,308,515 |
|
|
|
5,262,679 |
|
|
|
3,430,877 |
|
|
|
48,529,655 |
|
| Segment profits |
|
|
662,963 |
|
|
|
125,709 |
|
|
|
28,704 |
|
|
|
26,474 |
|
|
|
843,850 |
|
| (c) |
Reconciliations of total segment profit or loss, to their respective consolidated financial statement line items for the six-month periods ended June 30, 2015 and 2014 were as follows: |
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
June 30, 2015 |
|
|
June 30, 2014 |
|
| Total profit for reportable segments |
|
W |
|
|
|
|
843,850 |
|
| Corporate fair value adjustments |
|
|
(48,176 |
) |
|
|
(77,936 |
) |
| Elimination of inter-segment profits |
|
|
161,593 |
|
|
|
(223,110 |
) |
| Income tax expense |
|
|
455,019 |
|
|
|
445,604 |
|
|
|
|
|
|
|
|
|
|
| Profit before income tax expense |
|
W |
|
|
|
|
988,408 |
|
|
|
|
|
|
|
|
|
|
62
POSCO
Condensed Separate Interim Financial Statements
(Unaudited)
June 30, 2015
(With Independent Auditors’ Review Report Thereon)
Table of Contents
Independent Auditors’ Review Report
Based on a report originally issued in Korean
The Board of Directors and Shareholders
POSCO:
Reviewed financial statements
We have reviewed the
accompanying condensed separate interim financial statements of POSCO (the “Company”), which comprise the condensed separate interim statement of financial position as of June 30, 2015, the condensed separate interim statements of
comprehensive income for the three-month and six-month periods ended June 30, 2015, and 2014, the condensed separate interim statements of changes in equity and cash flows for the six-month periods ended June 30, 2015 and 2014, and notes,
comprising a summary of significant accounting policies and other explanatory information.
Management’s responsibility
Management is responsible for the preparation and fair presentation of these condensed separate interim financial statements in accordance with Korean
International Financial Reporting Standard (“K-IFRS”) No. 1034 “Interim Financial Reporting”. The Company’s management is also responsible for the internal controls determined necessary to prepare condensed separate
interim financial statements free of material misstatements due to error or fraud.
Auditor’s review responsibility
Our responsibility is to issue a report on the condensed separate interim financial statements based on our reviews.
We conducted our reviews in accordance with the Review Standards for Quarterly and Semiannual Financial Statements established by the Securities and Futures
Commission of the Republic of Korea. A review of interim financial statements consists of making inquiries primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is
substantially less in scope than an audit conducted in accordance with Korean Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit.
Accordingly, we do not express an audit opinion.
Conclusion
Based on our reviews, nothing has come to our attention that causes us to believe that the accompanying condensed separate interim financial statements
referred to above are not prepared, in all material respects, in accordance with K-IFRS No. 1034 “Interim Financial Reporting”.
Other matters
The procedures and practices utilized in the Republic of Korea to review such condensed separate interim financial statements may differ from those generally
accepted and applied in other countries.
The separate statement of financial position of the Company as of December 31, 2014, and the related
separate statements of comprehensive income, changes in equity and cash flows for the year then ended, which are not accompanying this report, were audited by us in accordance with Korean Standards on Auditing and our report thereon, dated
February 25, 2015, expressed an unqualified opinion. The accompanying condensed separate statement of financial position of the Company as of December 31, 2014, presented for comparative purposes, is consistent, in all material respect,
with the audited separate financial statements from which it has been derived.
Seoul, Korea
August 13, 2015
This report is effective as of August 13, 2015, the review report date. Certain subsequent events or
circumstances, which may occur between the review report date and the time of reading this report, could have a material impact on the accompanying condensed separate interim financial statements. Accordingly, the readers of the review report should
understand that the above review report has not been updated to reflect the impact of such subsequent events or circumstances, if any.
2
POSCO
Condensed Separate Interim Statements of Financial Position
As of June 30, 2015 and December 31, 2014
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Notes |
|
|
June 30,
2015 |
|
|
December 31,
2014 |
|
| Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents |
|
|
20 |
|
|
W |
|
|
|
|
1,742,767 |
|
| Trade accounts and notes receivable, net |
|
|
4,14,20,31 |
|
|
|
2,924,919 |
|
|
|
3,157,266 |
|
| Other receivables, net |
|
|
5,20,31 |
|
|
|
274,560 |
|
|
|
562,930 |
|
| Other short-term financial assets |
|
|
6,14,20 |
|
|
|
2,420,714 |
|
|
|
693,729 |
|
| Inventories |
|
|
7,28 |
|
|
|
3,947,787 |
|
|
|
4,383,568 |
|
| Assets held for sale |
|
|
8 |
|
|
|
1,114,514 |
|
|
|
1,051,177 |
|
| Other current assets |
|
|
9 |
|
|
|
19,974 |
|
|
|
31,692 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total current assets |
|
|
|
|
|
|
12,226,646 |
|
|
|
11,623,129 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Long-term trade accounts and notes receivable, net |
|
|
4,20 |
|
|
|
23,441 |
|
|
|
23,841 |
|
| Other receivables, net |
|
|
5,20 |
|
|
|
27,739 |
|
|
|
26,360 |
|
| Other long-term financial assets |
|
|
6,20 |
|
|
|
1,815,314 |
|
|
|
1,794,590 |
|
| Investments in subsidiaries, associates and joint ventures |
|
|
10 |
|
|
|
15,831,165 |
|
|
|
16,178,891 |
|
| Investment property, net |
|
|
11 |
|
|
|
87,861 |
|
|
|
90,137 |
|
| Property, plant and equipment, net |
|
|
12 |
|
|
|
21,958,082 |
|
|
|
22,323,215 |
|
| Intangiable assets, net |
|
|
13 |
|
|
|
381,489 |
|
|
|
403,907 |
|
| Other long-term assets |
|
|
9 |
|
|
|
132,403 |
|
|
|
133,253 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total non-current assets |
|
|
|
|
|
|
40,257,494 |
|
|
|
40,974,194 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total assets |
|
|
|
|
|
W |
|
|
|
|
52,597,323 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the condensed separate interim financial statements.
3
POSCO
Condensed Separate Interim Statements of Financial Position, Continued
As of June 30, 2015 and December 31, 2014
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Notes |
|
|
June 30,
2015 |
|
|
December 31,
2014 |
|
| Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Trade accounts and notes payable |
|
|
20,31 |
|
|
W |
|
|
|
|
777,401 |
|
| Short-term borrowings and current installments of long-term borrowings |
|
|
4,14,20 |
|
|
|
2,038,230 |
|
|
|
1,236,290 |
|
| Other payables |
|
|
15,20,31 |
|
|
|
799,496 |
|
|
|
1,032,496 |
|
| Other short-term financial liabilities |
|
|
16,20 |
|
|
|
27,547 |
|
|
|
9,236 |
|
| Current income tax liabilities |
|
|
|
|
|
|
256,023 |
|
|
|
304,362 |
|
| Provisions |
|
|
17 |
|
|
|
29,713 |
|
|
|
47,759 |
|
| Other current liabilities |
|
|
19 |
|
|
|
34,234 |
|
|
|
108,508 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total current liabilities |
|
|
|
|
|
|
3,920,802 |
|
|
|
3,516,052 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Long-term borrowings, excluding current installments |
|
|
6,14,20 |
|
|
|
4,433,464 |
|
|
|
5,300,927 |
|
| Other payables |
|
|
15,20 |
|
|
|
73,404 |
|
|
|
88,807 |
|
| Other long-term financial liabilities |
|
|
16,20 |
|
|
|
61,874 |
|
|
|
50,574 |
|
| Defined benefit liabilities, net |
|
|
18 |
|
|
|
143,820 |
|
|
|
86,158 |
|
| Deferred tax liabilities |
|
|
|
|
|
|
1,137,979 |
|
|
|
1,047,666 |
|
| Long-term provisions |
|
|
17,32 |
|
|
|
20,542 |
|
|
|
31,474 |
|
| Other long-term liabilities |
|
|
19 |
|
|
|
82 |
|
|
|
234 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total non-current liabilities |
|
|
|
|
|
|
5,871,165 |
|
|
|
6,605,840 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total liabilities |
|
|
|
|
|
|
9,791,967 |
|
|
|
10,121,892 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
| Share capital |
|
|
21 |
|
|
|
482,403 |
|
|
|
482,403 |
|
| Capital surplus |
|
|
21 |
|
|
|
1,247,629 |
|
|
|
1,247,616 |
|
| Hybrid bonds |
|
|
22 |
|
|
|
996,919 |
|
|
|
996,919 |
|
| Reserves |
|
|
23 |
|
|
|
122,421 |
|
|
|
94,042 |
|
| Treasury shares |
|
|
24 |
|
|
|
(1,534,365 |
) |
|
|
(1,534,457 |
) |
| Retained earnings |
|
|
|
|
|
|
41,377,166 |
|
|
|
41,188,908 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total shareholder’s equity |
|
|
|
|
|
|
42,692,173 |
|
|
|
42,475,431 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total liabilities and shareholders’ equity |
|
|
|
|
|
W |
|
|
|
|
52,597,323 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the condensed separate interim financial statements.
4
POSCO
Condensed Separate Interim Statements of Comprehensive Income
For the three-month and six-month periods ended June 30, 2015 and 2014
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
For the three-month periods
ended June 30 |
|
|
For the six-month periods
ended June 30 |
|
| (in millions of Won, except per share informations) |
|
Notes |
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
| Revenue |
|
|
31 |
|
|
W |
|
|
|
|
7,419,784 |
|
|
|
13,363,126 |
|
|
|
14,783,634 |
|
| Cost of sales |
|
|
7,28,31 |
|
|
|
(5,507,224 |
) |
|
|
(6,394,538 |
) |
|
|
(11,219,285 |
) |
|
|
(12,787,976 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gross profit |
|
|
|
|
|
|
1,068,295 |
|
|
|
1,025,246 |
|
|
|
2,143,841 |
|
|
|
1,995,658 |
|
| Selling and administrative expenses |
|
|
25,28,31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Administrative expenses |
|
|
|
|
|
|
(222,541 |
) |
|
|
(224,245 |
) |
|
|
(435,781 |
) |
|
|
(449,796 |
) |
| Selling expenses |
|
|
|
|
|
|
(238,246 |
) |
|
|
(235,649 |
) |
|
|
(478,845 |
) |
|
|
(462,806 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating profit |
|
|
|
|
|
|
607,508 |
|
|
|
565,352 |
|
|
|
1,229,215 |
|
|
|
1,083,056 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Finance income and costs |
|
|
20,26 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Finance income |
|
|
|
|
|
|
107,385 |
|
|
|
351,467 |
|
|
|
466,228 |
|
|
|
595,469 |
|
| Finance costs |
|
|
|
|
|
|
(170,049 |
) |
|
|
(88,256 |
) |
|
|
(313,239 |
) |
|
|
(308,145 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other non-operating income and expenses |
|
|
27,31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other non-operating income |
|
|
|
|
|
|
59,509 |
|
|
|
7,931 |
|
|
|
73,137 |
|
|
|
11,313 |
|
| Other non-operating expenses |
|
|
28 |
|
|
|
(274,590 |
) |
|
|
(117,246 |
) |
|
|
(393,375 |
) |
|
|
(390,307 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Profit before income tax |
|
|
|
|
|
|
329,763 |
|
|
|
719,248 |
|
|
|
1,061,966 |
|
|
|
991,386 |
|
| Income tax expense |
|
|
29 |
|
|
|
(119,313 |
) |
|
|
(172,013 |
) |
|
|
(351,756 |
) |
|
|
(332,632 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Profit |
|
|
|
|
|
|
210,450 |
|
|
|
547,235 |
|
|
|
710,210 |
|
|
|
658,754 |
|
| Other comprehensive income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Items that will never be reclassified subsequently to profit or loss : |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Remeasurements of defined benefit pension plans, net of tax |
|
|
18 |
|
|
|
15,385 |
|
|
|
(19,744 |
) |
|
|
(20,422 |
) |
|
|
(29,167 |
) |
|
|
|
|
|
|
| Items that are or may be reclassified subsequently to profit or loss : |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net changes in unrealized fair value of available-for-sale investments, net of tax |
|
|
6,20,23 |
|
|
|
267 |
|
|
|
(92,665 |
) |
|
|
28,379 |
|
|
|
(312,092 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total comprehensive income |
|
|
|
|
|
W |
|
|
|
|
434,826 |
|
|
|
718,167 |
|
|
|
317,495 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic and diluted earnings per share (in Won) |
|
|
30 |
|
|
W |
|
|
|
|
6,756 |
|
|
|
8,674 |
|
|
|
8,052 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the condensed separate interim financial statements.
5
POSCO
Condensed Separate Interim Statements of Changes in Equity
For the six-month periods ended June 30, 2015 and 2014
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Share
capital |
|
|
Capital
surplus |
|
|
Hybrid
bonds |
|
|
Reserves |
|
|
Tresury
shares |
|
|
Retained
earnings |
|
|
Total |
|
| Balance as of January 1, 2014 Comprehensive income : |
|
W |
|
|
|
|
1,233,040 |
|
|
|
996,919 |
|
|
|
403,939 |
|
|
|
(1,579,123 |
) |
|
|
40,774,284 |
|
|
|
42,311,462 |
|
| Profit |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
658,754 |
|
|
|
658,754 |
|
| Other comprehensive loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Remeasurements of defined benefit pension plans, net of tax |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(29,167 |
) |
|
|
(29,167 |
) |
| Net changes in unrealized fair value of of available-for-sale investments, net of tax |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(312,092 |
) |
|
|
— |
|
|
|
— |
|
|
|
(312,092 |
) |
| Transactions with owners of the Company, recognized directly in equity : |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Year-end dividends |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(478,702 |
) |
|
|
(478,702 |
) |
| Interest of hybrid bonds |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(21,572 |
) |
|
|
(21,572 |
) |
| Disposal of treasury shares |
|
|
— |
|
|
|
48 |
|
|
|
— |
|
|
|
— |
|
|
|
131 |
|
|
|
— |
|
|
|
179 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance as of June 30, 2014 |
|
W |
|
|
|
|
1,233,088 |
|
|
|
996,919 |
|
|
|
91,847 |
|
|
|
(1,578,992 |
) |
|
|
40,903,597 |
|
|
|
42,128,862 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance as of January 1, 2015 Comprehensive income : |
|
W |
|
|
|
|
1,247,616 |
|
|
|
996,919 |
|
|
|
94,042 |
|
|
|
(1,534,457 |
) |
|
|
41,188,908 |
|
|
|
42,475,431 |
|
| Profit |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
710,210 |
|
|
|
710,210 |
|
| Other comprehensive income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Remeasurements of defined benefit pension plans, net of tax |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(20,422 |
) |
|
|
(20,422 |
) |
| Net changes in unrealized fair value of available-for-sale investments, net of tax |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
28,379 |
|
|
|
— |
|
|
|
— |
|
|
|
28,379 |
|
| Transactions with owners of the Company, recognized directly in equity : |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Year-end dividends |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(479,958 |
) |
|
|
(479,958 |
) |
| Interest of hybrid bonds |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(21,572 |
) |
|
|
(21,572 |
) |
| Disposal of treasury shares |
|
|
— |
|
|
|
13 |
|
|
|
— |
|
|
|
— |
|
|
|
92 |
|
|
|
— |
|
|
|
105 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance as of June 30, 2015 |
|
W |
|
|
|
|
1,247,629 |
|
|
|
996,919 |
|
|
|
122,421 |
|
|
|
(1,534,365 |
) |
|
|
41,377,166 |
|
|
|
42,692,173 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the condensed separate interim financial statements.
6
POSCO
Condensed Separate Interim Statements of Cash Flows
For the six-month periods ended June 30, 2015 and 2014
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Notes |
|
|
June 30,
2015 |
|
|
June 30,
2014 |
|
| Cash flows from operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
| Profit |
|
|
|
|
|
W |
|
|
|
|
658,754 |
|
| Adjustments for : |
|
|
|
|
|
|
|
|
|
|
|
|
| Costs for defined benefit plans |
|
|
|
|
|
|
61,879 |
|
|
|
58,428 |
|
| Depreciation |
|
|
|
|
|
|
1,022,390 |
|
|
|
1,001,071 |
|
| Amortization |
|
|
|
|
|
|
34,005 |
|
|
|
37,463 |
|
| Finance income |
|
|
|
|
|
|
(385,349 |
) |
|
|
(438,278 |
) |
| Finance costs |
|
|
|
|
|
|
235,929 |
|
|
|
170,200 |
|
| Loss on valuation of inventories |
|
|
|
|
|
|
9,219 |
|
|
|
7,541 |
|
| Gain on disposal of property, plant and equipment |
|
|
|
|
|
|
(6,063 |
) |
|
|
(2,959 |
) |
| Loss on disposal of property, plant and equipment |
|
|
|
|
|
|
44,238 |
|
|
|
29,769 |
|
| Impairment loss on property, plant and equipment |
|
|
|
|
|
|
46,436 |
|
|
|
— |
|
| Impairment loss on investments in subsidiaries, associates and joint ventures |
|
|
|
|
|
|
215,676 |
|
|
|
88,048 |
|
| Gain on disposal of assets held for sale |
|
|
|
|
|
|
(52,165 |
) |
|
|
— |
|
| Increase in provisions |
|
|
|
|
|
|
2,068 |
|
|
|
69,452 |
|
| Income tax expense |
|
|
|
|
|
|
351,756 |
|
|
|
332,632 |
|
| Others |
|
|
|
|
|
|
28,685 |
|
|
|
26,472 |
|
|
|
|
|
| Changes in operating assets and liabilities |
|
|
33 |
|
|
|
583,333 |
|
|
|
(57,073 |
) |
|
|
|
|
| Interest received |
|
|
|
|
|
|
35,586 |
|
|
|
50,126 |
|
| Interest paid |
|
|
|
|
|
|
(133,829 |
) |
|
|
(170,103 |
) |
| Dividends received |
|
|
|
|
|
|
484,612 |
|
|
|
122,713 |
|
| Income taxes paid |
|
|
|
|
|
|
(311,263 |
) |
|
|
(215,767 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net cash provided by operating activities |
|
|
|
|
|
W |
|
|
|
|
1,768,489 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the condensed separate interim financial statements.
7
POSCO
Condensed Separate Interim Statements of Cash Flows, Continued
For the six-month periods ended June 30, 2015 and 2014
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Notes |
|
June 30,
2015 |
|
|
June 30,
2014 |
|
| Cash flows from investing activities |
|
|
|
|
|
|
|
|
|
|
| Proceeds from disposal of short-term financial instruments |
|
|
|
W |
|
|
|
|
2,614,240 |
|
| Proceeds from disposal of available-for-sale financial assets |
|
|
|
|
435 |
|
|
|
900 |
|
| Decrease in short-term loans |
|
|
|
|
4,235 |
|
|
|
— |
|
| Decrease in long-term loans |
|
|
|
|
452 |
|
|
|
3,456 |
|
| Proceeds from disposal of investments in subsidiaries, associates and joint venture |
|
|
|
|
3,613 |
|
|
|
— |
|
| Proceeds from disposal of intangible assets |
|
|
|
|
2,685 |
|
|
|
464 |
|
| Proceeds from disposal of assets held for sale |
|
|
|
|
411,280 |
|
|
|
1,291 |
|
| Acquisition of short-term financial investments |
|
|
|
|
(5,010,999 |
) |
|
|
(1,217,219 |
) |
| Increase in short-term loans |
|
|
|
|
(65,208 |
) |
|
|
— |
|
| Acquisition of available-for-sale financial assets |
|
|
(752 |
) |
|
|
(21,412 |
) |
| Increase in long-term loans |
|
|
|
|
(75 |
) |
|
|
(14,475 |
) |
| Acquisition of investment in subsidiaries, associates and joint ventures |
|
|
|
|
(355,555 |
) |
|
|
(704,054 |
) |
| Acquisition of investment property |
|
|
|
|
(146 |
) |
|
|
— |
|
| Acquisition of property, plant and equipment |
|
|
(812,326 |
) |
|
|
(876,842 |
) |
| Payment for disposal of property, plant and equipment |
|
|
|
|
(18,886 |
) |
|
|
(9,597 |
) |
| Acquisition of intangible assets |
|
|
|
|
(17,037 |
) |
|
|
(25,480 |
) |
|
|
|
|
|
|
|
|
|
|
|
| Net cash used in investing activities |
|
|
|
|
(2,574,978 |
) |
|
|
(248,728 |
) |
|
|
|
|
|
|
|
|
|
|
|
| Cash flows from financing activities |
|
|
|
|
|
|
|
|
|
|
| Proceeds from borrowings |
|
|
|
|
1,348 |
|
|
|
1,369,225 |
|
| Increase in long-term financial liabilities |
|
|
|
|
2,560 |
|
|
|
1,217 |
|
| Repayment of borrowings |
|
|
|
|
(120,588 |
) |
|
|
(2,456,884 |
) |
| Decrease in long-term financial liabilities |
|
|
|
|
(2,545 |
) |
|
|
(1,600 |
) |
| Payment of cash dividends |
|
|
|
|
(479,999 |
) |
|
|
(478,775 |
) |
| Payment of interest of hybrid bonds |
|
|
|
|
(21,740 |
) |
|
|
(21,740 |
) |
|
|
|
|
|
|
|
|
|
|
|
| Net cash used in financing activities |
|
|
|
|
(620,964 |
) |
|
|
(1,588,557 |
) |
|
|
|
|
|
|
|
|
|
|
|
| Net decrease in cash and cash equivalents |
|
|
(218,589 |
) |
|
|
(68,796 |
) |
|
|
|
|
| Cash and cash equivalents |
|
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents at beginning of the period |
|
|
|
|
1,742,767 |
|
|
|
1,394,315 |
|
|
|
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents at end of the period |
|
|
|
W |
|
|
|
|
1,325,519 |
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the condensed separate interim financial statements.
8
POSCO
Notes to the Condensed Separate Interim Financial Statements
As of June 30, 2015
(Unaudited)
1. Reporting Entity
POSCO (the “Company”) is the largest steel producer in Korea which was incorporated on April 1, 1968, under the Commercial Code of the Republic
of Korea to manufacture and sell steel rolled products and plates in the domestic and overseas markets.
The shares of the Company have been listed on the
Korea Exchange since 1988. The Company owns and operates two steel plants (Pohang and Gwangyang) and one office in Korea, and it also operates internationally through six of its overseas liaison offices.
As of June 30, 2015, the shares of the Company are listed on the Korea Exchange, while its depository receipts are listed on the New York, Tokyo and
London Stock Exchanges.
2. Statement of Compliance
Statement of compliance
The condensed separate interim
financial statements have been prepared in accordance with Korean International Financial Reporting Standards (“K-IFRS”), as prescribed in the Act on External Audit of Corporations.
These condensed separate interim financial statements have been prepared in accordance with K-IFRS No. 1034 “Interim Financial
Reporting” as part of the period covered by the Company’s K-IFRS annual financial statements. Selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in
financial position and performance of the Company since the last annual separate financial statements as of and for the year ended December 31, 2014. These condensed separate interim financial statements do not include all of the disclosures
required for full annual financial statements.
These condensed interim financial statements are separate interim financial statements in accordance with
K-IFRS No. 1027 “Separate Financial Statements” presented by a parent, an investor in a subsidiary, an associate or a venture in a jointly controlled entity, in which the investments are accounted for on the basis of the direct
equity interest rather than on the basis of the reported results and net assets of the investees.
Use of estimates and judgments
| (a) |
Judgements, assumptions and estimation uncertainties |
The preparation of the condensed interim
financial statements in conformity with K-IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results
may differ from these estimates.
In preparing these condensed separate interim financial statements, the significant judgments made
9
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
by management in applying the Company’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the separate financial statements as of and
for the year ended December 31, 2014.
| (b) |
Measurement of fair value |
The Company’s accounting policies and disclosures require the
measurement of fair values, for both financial and non-financial assets and liabilities. The Company has an established control framework with respect to the measurement of fair values. This includes a valuation team that has overall responsibility
for overseeing all significant fair value measurements, including Level 3 fair values, and reports directly to the financial officer.
The
valuation team regularly reviews significant unobservable inputs and valuation adjustments. If third party information, such as broker quotes or pricing services, is used to measure fair values, then the valuation team assesses the evidence obtained
from the third parties to support the conclusion that such valuations meet the requirements of K-IFRS including the level in the fair value hierarchy in which such valuation techniques should be classified.
The Company reports the significant valuation matters to the Audit Committee.
When measuring the fair value of an asset or a liability, the Company uses market observable data as far as possible. Fair values are
categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows.
|
|
|
|
|
| • |
|
Level 1 – |
|
unadjusted quoted prices in active markets for identical assets or liabilities. |
| • |
|
Level 2 – |
|
inputs other than quoted prices included in Level 1 that are observable for the assets or liability, either directly or indirectly. |
| • |
|
Level 3 – |
|
inputs for the assets or liability that are not based on observable market data. |
If the inputs used to measure the fair value of an asset or a liability might be categorized in different
levels of the fair value hierarchy, then the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. The Company recognizes
transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.
Further
information about the assumptions made in measuring fair value is included in note 20.
10
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
3. Summary of Significant Accounting Policies
Except as described in K-IFRS No. 1034 “Interim Financial Reporting” and below, the accounting policies applied by the Company in these
condensed separate interim financial statements are the same as those applied by the Company in its separate financial statements as of and for the year ended December 31, 2014. The accounting policy for emission rights below is also expected
to be applied in the Company’s separate financial statements as of and for the year ending December 31, 2015.
Emission Rights
The Company accounts for greenhouse gases emission right and the relevant liability as below pursuant to the Act on Allocation and Trading of Greenhouse Gas
Emission which became effective in 2015.
| (a) |
Greenhouse Gases Emission Right |
Greenhouse Gases Emission Right consists of emission
allowances which are allocated from the government free of charge or purchased from the market. The cost includes any directly attributable costs incurred during the normal course of business.
Emission rights held for the purpose of performing the obligation are classified as intangible asset and are initially measured at cost and
subsequent to initial recognition, are carried at cost less accumulated impairment losses. Emission rights held for short-swing profits are classified as current asset and are measured at fair value with any
changes in fair value recognized as profit or loss in the respective reporting period.
The Company derecognizes an emission right asset
when the emission allowance is unusable, disposed or submitted to government in which the future economic benefits are no longer expected to be probable.
Emission liability is a present obligation of submitting emission rights to
the government with regard to emission of greenhouse gas. Emission liability is recognized when there is a high possibility of outflows of resources in performing the obligation and the costs required to perform the obligation are reliably
estimable. Emission liability is an amount of estimated obligation for emission rights to be submitted to the government for the performing period. The emission liability is measured based on the expected quantity of emission for the performing
period in excess of emission allowance in possession, and the unit price for such emission rights in the market as of the end of the reporting period.
11
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
4. Trade Accounts and Notes Receivable
Trade accounts and notes receivable as of June 30, 2015 and December 31, 2014 are as follows:
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
June 30, 2015 |
|
|
December 31, 2014 |
|
| Current |
|
|
|
|
|
|
|
|
| Trade accounts and notes receivable |
|
W |
|
|
|
|
3,166,238 |
|
| Less: Allowance for doubtful accounts |
|
|
(6,696 |
) |
|
|
(8,972 |
) |
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
3,157,266 |
|
|
|
|
|
|
|
|
|
|
| Non-current |
|
|
|
|
|
|
|
|
| Trade accounts and notes receivable |
|
W |
|
|
|
|
32,247 |
|
| Less: Present value discount |
|
|
(8,340 |
) |
|
|
(7,396 |
) |
| Less: Allowance for doubtful accounts |
|
|
(2,020 |
) |
|
|
(1,010 |
) |
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
23,841 |
|
|
|
|
|
|
|
|
|
|
Trade accounts and notes receivable sold to financial institutions, for which the derecognition conditions were not met,
amounted to W1,354 million as of June 30, 2015 were included in short-term borrowings (Note 14).
5. Other Receivables
Other receivables as of June 30, 2015 and December 31, 2014 are as follows:
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
June 30, 2015 |
|
|
December 31, 2014 |
|
| Current |
|
|
|
|
|
|
|
|
| Short-term loans |
|
W |
|
|
|
|
4,748 |
|
| Other accounts receivable |
|
|
206,913 |
|
|
|
564,765 |
|
| Others |
|
|
10,679 |
|
|
|
3,950 |
|
| Less: Allowance for doubtful accounts |
|
|
(10,540 |
) |
|
|
(10,533 |
) |
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
562,930 |
|
|
|
|
|
|
|
|
|
|
| Non-current |
|
|
|
|
|
|
|
|
| Long-term loans |
|
W |
|
|
|
|
21,229 |
|
| Long-term other accounts receivable |
|
|
2,252 |
|
|
|
2,334 |
|
| Others |
|
|
2,946 |
|
|
|
2,797 |
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
26,360 |
|
|
|
|
|
|
|
|
|
|
12
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
6. Other Financial Assets
| (a) |
Other financial assets as of June 30, 2015 and December 31, 2014 are as follows: |
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
June 30, 2015 |
|
|
December 31, 2014 |
|
| Current |
|
|
|
|
|
|
|
|
| Short term derivatives assets held for trading |
|
W |
|
|
|
|
708 |
|
| Short-term financial instruments(*1,2) |
|
|
2,412,902 |
|
|
|
609,584 |
|
| Cash deposits(*3) |
|
|
7,812 |
|
|
|
83,437 |
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
693,729 |
|
|
|
|
|
|
|
|
|
|
| Non-current |
|
|
|
|
|
|
|
|
| Long-term derivatives assets held for trading(*4) |
|
W |
|
|
|
|
9,525 |
|
| Available-for-sale securities (equity instruments) |
|
|
1,738,287 |
|
|
|
1,767,621 |
|
| Available-for-sale securities (others) |
|
|
17,926 |
|
|
|
17,408 |
|
| Cash deposits(*5) |
|
|
36 |
|
|
|
36 |
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
1,794,590 |
|
|
|
|
|
|
|
|
|
|
| (*1) |
Short-term financial instruments amounting to W4,100 and W5,200 million are provided as collateral in relation to long-term borrowings from National Forestry Cooperative Federation as
of June 30, 2015 and December 31, 2014, respectively. |
| (*2) |
Short-term financial instruments amounting to W1,384 million are levied in relation to pending litigations as of June 30, 2015 and December 31, 2014. |
| (*3) |
Deposits amounting to W7,411 million and W5,465 million as of June 30, 2015 and December 31, 2014, respectively, are restricted in relation to government assigned project.
|
| (*4) |
The Company assessed the values of its put option and earn-out consideration in relation to the residual equity upon the Company’s disposal of SeAH Changwon Integrated Special Steel (formerly, POSCO Specialty Co.,
Ltd). Accordingly, the Company has recognized derivatives assets amounting to W44,734 million and W1,620 million, respectively, as of June 30, 2015. |
| (*5) |
The Company is required to provide deposits to maintain checking accounts and accordingly the withdrawal of these deposits is restricted. |
13
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
| (b) |
Available-for-sale equity securities as of June 30, 2015 and December 31, 2014 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Number of
shares |
|
|
Ownership
(%) |
|
|
Acquisition
cost |
|
|
Fair value |
|
|
Net changes in
fair value
of
available-for-sale
investments |
|
|
Accumulated
impairment loss |
|
|
Book
value |
|
|
Book
value |
|
| Marketable equity securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Hana Financial group Inc. |
|
|
2,430,498 |
|
|
|
0.84 |
|
|
W |
|
|
|
|
70,606 |
|
|
|
54,973 |
|
|
|
— |
|
|
|
70,606 |
|
|
|
77,776 |
|
| Nippon Steel & Sumitomo Metal Corporation |
|
|
238,352,000 |
|
|
|
2.51 |
|
|
|
719,622 |
|
|
|
693,851 |
|
|
|
(25,771 |
) |
|
|
— |
|
|
|
693,851 |
|
|
|
659,926 |
|
| Hyundai Heavy Industries Co., Ltd.(*1) |
|
|
1,477,000 |
|
|
|
1.94 |
|
|
|
343,506 |
|
|
|
163,947 |
|
|
|
— |
|
|
|
(179,559 |
) |
|
|
163,947 |
|
|
|
169,855 |
|
| Shinhan Financial group Inc. |
|
|
4,369,881 |
|
|
|
0.92 |
|
|
|
228,778 |
|
|
|
181,569 |
|
|
|
58,932 |
|
|
|
(106,141 |
) |
|
|
181,569 |
|
|
|
194,241 |
|
| KB Financial group Inc. |
|
|
11,590,550 |
|
|
|
3.00 |
|
|
|
536,516 |
|
|
|
427,691 |
|
|
|
31,294 |
|
|
|
(140,119 |
) |
|
|
427,691 |
|
|
|
418,998 |
|
| Seoul Semiconductor Co., Ltd.(*1) |
|
|
591,000 |
|
|
|
1.01 |
|
|
|
24,999 |
|
|
|
9,456 |
|
|
|
— |
|
|
|
(15,543 |
) |
|
|
9,456 |
|
|
|
11,938 |
|
| SAMWONSTEEL Co., Ltd. |
|
|
5,700,000 |
|
|
|
14.25 |
|
|
|
8,930 |
|
|
|
21,204 |
|
|
|
18,677 |
|
|
|
(6,403 |
) |
|
|
21,204 |
|
|
|
23,513 |
|
| Others (10 companies)(*1) |
|
|
|
|
|
|
|
|
|
|
92,110 |
|
|
|
61,065 |
|
|
|
8,551 |
|
|
|
(39,596 |
) |
|
|
61,065 |
|
|
|
64,143 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,970,094 |
|
|
|
1,629,389 |
|
|
|
146,656 |
|
|
|
(487,361 |
) |
|
|
1,629,389 |
|
|
|
1,620,390 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-marketable equity securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Dongbu Metal Co., Ltd.(*1,3) |
|
|
3,000,000 |
|
|
|
10.00 |
|
|
|
98,242 |
|
|
|
— |
|
|
|
— |
|
|
|
(98,242 |
) |
|
|
— |
|
|
|
17,295 |
|
| Poongsan Special Metal Corp.(*4) |
|
|
315,790 |
|
|
|
5.00 |
|
|
|
7,657 |
|
|
|
7,657 |
|
|
|
— |
|
|
|
— |
|
|
|
7,657 |
|
|
|
7,657 |
|
| Intellectual Discovery(*4) |
|
|
1,000,000 |
|
|
|
14.27 |
|
|
|
5,000 |
|
|
|
5,000 |
|
|
|
— |
|
|
|
— |
|
|
|
5,000 |
|
|
|
5,000 |
|
| Tuwaurqi Steel Mill(*2) |
|
|
129,600,000 |
|
|
|
16.18 |
|
|
|
17,015 |
|
|
|
— |
|
|
|
— |
|
|
|
(17,015 |
) |
|
|
— |
|
|
|
17,015 |
|
| Others (38 companies)(*2,4) |
|
|
|
|
|
|
|
|
|
|
111,341 |
|
|
|
96,241 |
|
|
|
248 |
|
|
|
(15,348 |
) |
|
|
96,241 |
|
|
|
100,264 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
239,255 |
|
|
|
108,898 |
|
|
|
248 |
|
|
|
(130,605 |
) |
|
|
108,898 |
|
|
|
147,231 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
1,738,287 |
|
|
|
146,904 |
|
|
|
(617,966 |
) |
|
|
1,738,287 |
|
|
|
1,767,621 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
The Company has recognized W5,908 million, W2,482 million, W2,074 million, W628 million and W17,295 million of impairment loss on
securities of Hyundai Heavy Industries Co., Ltd., Seoul Semiconductor Co., Ltd., PT. Krakatau Steel, Steel Flower Co., Ltd. and Dongbu Metal Co., Ltd, respectively, since the fair values of the securities have decreased continuously during the
six-month period ended June 30, 2015. |
| (*2) |
The Company has recognized W17,015 million and W6,554 million of impairment loss on securities of Tuwaurqi Steel Mill and Troika Foreign Resource Development Fund since the fair values
of the securities have decreased significantly during the six-month period ended June 30, 2015. |
| (*3) |
Fair value is based on an analysis performed by an external professional evaluation agency. |
| (*4) |
These non-marketable equity securities are recorded at cost since its fair value cannot be reliably measured. |
14
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
7. Inventories
Inventories as of June 30, 2015 and December 31, 2014 are as follows:
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
June 30, 2015 |
|
|
December 31, 2014 |
|
| Finished goods |
|
W |
|
|
|
|
901,524 |
|
| Semi-finished goods |
|
|
1,079,889 |
|
|
|
1,207,143 |
|
| By-products |
|
|
15,120 |
|
|
|
21,439 |
|
| Raw materials |
|
|
851,643 |
|
|
|
822,273 |
|
| Fuel and materials |
|
|
528,414 |
|
|
|
510,508 |
|
| Materials-in-transit |
|
|
660,901 |
|
|
|
944,966 |
|
| Others |
|
|
587 |
|
|
|
582 |
|
|
|
|
|
|
|
|
|
|
|
|
|
3,957,006 |
|
|
|
4,408,435 |
|
| Less: Allowance for inventories valuation |
|
|
(9,219 |
) |
|
|
(24,867 |
) |
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
4,383,568 |
|
|
|
|
|
|
|
|
|
|
The amount of valuation losses of inventories recognized within cost of sales during the six-month period ended June 30,
2015 and the year ended December 31, 2014 were W9,219 million and W24,867 million, respectively.
8. Assets Held
for Sale
Assets held for sale as of June 30, 2015 and December 31, 2014 are as follows:
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
June 30, 2015 |
|
|
December 31, 2014 |
|
| Available-for-sale securities(*1) |
|
W |
|
|
|
|
580,062 |
|
| Investments in subsidiaries(*2,3,4,5) |
|
|
497,402 |
|
|
|
468,443 |
|
| Property, plant and equipment(*6) |
|
|
34,587 |
|
|
|
2,672 |
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
1,051,177 |
|
|
|
|
|
|
|
|
|
|
| (*1) |
During the year ended December 31, 2014, the Company determined to dispose of its equity interests in Nacional Minerios S.A. in exchange for equity interests in the new entity as Nacional Minerios S.A. (which was
an available-for-sale investment of the Company) entered into a merger agreement with another entity through share exchange. The merger transaction was approved by the Company’s Board of Directors on December 12, 2014. Accordingly, the
Company classified its investment in Nacional Minerios S.A. as assets held for sale. The Company has recognized W11,996 million of impairment loss on Nacional Minerios S.A for the six-month period ended June 30, 2015 since the
fair value less cost to sell was below carrying amount. |
15
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
| (*2) |
The Company determined to dispose of 52.2% of its shares of SeAH Changwon Intergrated Special Steel (formerly, POSCO Specialty Co., Ltd) to SeAH Besteel Corp. and classified the investment in subsidiaries of
W454,943 million as assets held for sale during the year ended December 31, 2014. Disposal of the asset held for sale was completed during the six-month period ended June 30, 2015, and the Company recognized
W20,133 million of loss on disposal of the asset held for sale. |
| (*3) |
The Company determined to dispose of 29.4% of its shares of POSCO ENGINEERING & CONSTRUCTION., LTD., a subsidiary of the Company, to special purpose company established by PIF, Saudi Arabia National Fund, upon
approval of the Company’s Board of Directors on March 13, 2015, and classified the investment in subsidiaries of W496,402 million as assets held for sale. |
| (*4) |
The Company determined to dispose of its shares of POSFINE Co., Ltd., a subsidiary of the Company, to Hahn & Company PRIVATE EQUITY FUND No. 1 and classified the investment in subsidiaries of
W13,500 million as assets held for sale during the year ended December 31, 2014. Disposal of the assets held for sale was completed during the six-month period ended June 30, 2015 and the Company recognized
W33,577 million of gain on disposal of the assets held for sale. |
| (*5) |
The Company determined to dispose of its shares of Poreka Co., Ltd. a subsidiary of the Company, to COMM.TOGETHER Co., LTD. and entered into a disposal contract during the six-month period ended June 30, 2015.
Accordingly, the Company classified the accompanying investment in the subsidiary amounting to W1,000 million as assets held for sale. |
| (*6) |
The Company determined to make a contribution of 1 FINEX facilities in kind after inception of joint venture, and has signed in MOA with Mideast Integrated Steel Ltd. in India. The Company has classified the relating
facilities of W25,892 million as assets held for sale. |
16
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
9. Other Assets
Other current assets and other long-term assets as of June 30, 2015 and December 31, 2014 are as follows:
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
June 30, 2015 |
|
|
December 31, 2014 |
|
| Current |
|
|
|
|
|
|
|
|
| Advance payments |
|
W |
|
|
|
|
9,828 |
|
| Prepaid expenses |
|
|
3,191 |
|
|
|
21,864 |
|
| Others |
|
|
451 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
31,692 |
|
|
|
|
|
|
|
|
|
|
| Non-current |
|
|
|
|
|
|
|
|
| Long-term prepaid expenses |
|
W |
|
|
|
|
6,344 |
|
| Others(*1) |
|
|
125,976 |
|
|
|
126,909 |
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
133,253 |
|
|
|
|
|
|
|
|
|
|
| (*1) |
As of June 30, 2015 and December 31, 2014, the Company recognized tax assets amounting to W122,186 million and W123,110 million, respectively, in connection with the
additional income tax payment for prior years as a result of tax audits that were finalized in 2014 based on the Company’s best estimate of the tax amounts to be paid when the result of the Company’s appeal is finalized. |
17
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
10. Investments in Subsidiaries, Associates and Joint ventures
| (a) |
Details of subsidiaries and carrying values as of June 30, 2015 and December 31, 2014 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
June 30, 2015 |
|
|
December 31, 2014 |
|
| (in millions of Won) |
|
Country |
|
Principal operations |
|
Ownership
(%) |
|
|
Book
value |
|
|
Book
value |
|
| [Domestic] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Daewoo International Corporation |
|
Korea |
|
Trading |
|
|
60.31 |
|
|
W |
|
|
|
|
3,371,481 |
|
| POSCO ENGINEERING & CONSTRUCTION., LTD. |
|
Korea |
|
Engineering and construction |
|
|
89.53 |
|
|
|
1,014,314 |
|
|
|
1,510,716 |
|
| POSCO Green Gas Technology |
|
Korea |
|
Gas production and sales |
|
|
100.00 |
|
|
|
682,600 |
|
|
|
682,600 |
|
| POSCO ENERGY CO., LTD. |
|
Korea |
|
Generation of electricity |
|
|
89.02 |
|
|
|
658,176 |
|
|
|
658,176 |
|
| POSCO Processing & Service |
|
Korea |
|
Steel sales and service |
|
|
96.01 |
|
|
|
624,678 |
|
|
|
624,678 |
|
| POSCO PLANTEC Co., Ltd.(*3) |
|
Korea |
|
Other structural metal product manufacturing |
|
|
60.84 |
|
|
|
168,526 |
|
|
|
341,293 |
|
| SeAH Changwon Intergrated Special Steel
(formerly, POSCO Specialty Steel Co., Ltd.)(*1) |
|
Korea |
|
Manufacture and sale of specialty steel |
|
|
— |
|
|
|
— |
|
|
|
173,899 |
|
| POSCO COATED & COLOR STEEL Co., Ltd. |
|
Korea |
|
Coated steel manufacturing |
|
|
56.87 |
|
|
|
108,421 |
|
|
|
108,421 |
|
| POSCO CAPITAL |
|
Korea |
|
Investment in venture companies |
|
|
95.00 |
|
|
|
103,780 |
|
|
|
103,780 |
|
| POSCO Chemtech Company Ltd. |
|
Korea |
|
Refractory Manufacturing and Sales |
|
|
60.00 |
|
|
|
100,535 |
|
|
|
100,535 |
|
| POSMATE |
|
Korea |
|
Business facility maintenance |
|
|
57.30 |
|
|
|
73,374 |
|
|
|
72,804 |
|
| POSCO ICT |
|
Korea |
|
Computer hardware and software distribution |
|
|
65.38 |
|
|
|
70,990 |
|
|
|
70,990 |
|
| POSCO M-TECH(*2,4) |
|
Korea |
|
Steel manufacturing and Sales |
|
|
48.85 |
|
|
|
53,651 |
|
|
|
66,067 |
|
| POSCO Family Strategy Fund |
|
Korea |
|
Investment in venture companies |
|
|
69.90 |
|
|
|
45,273 |
|
|
|
40,000 |
|
| Busan E&E Co,. Ltd.(*5) |
|
Korea |
|
Municipal solid waste fuel and power generation |
|
|
70.00 |
|
|
|
30,148 |
|
|
|
30,148 |
|
| Others (12 companies) |
|
|
|
|
|
|
|
|
|
|
162,703 |
|
|
|
134,196 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
8,089,784 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
18
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| [Foreign] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| PT. KRAKATAU POSCO |
|
Indonesia |
|
Steel manufacturing and sales |
|
|
70.00 |
|
|
|
850,242 |
|
|
|
855,110 |
|
| POSCO WA PTY LTD |
|
Australia |
|
Mine development |
|
|
100.00 |
|
|
|
616,689 |
|
|
|
611,248 |
|
| POSCO Maharashtra Steel Private Limited |
|
India |
|
Steel manufacturing and sales |
|
|
100.00 |
|
|
|
480,571 |
|
|
|
465,788 |
|
| POSCO AUSTRALIA PTY LTD |
|
Australia |
|
Raw material Sales |
|
|
100.00 |
|
|
|
330,623 |
|
|
|
330,623 |
|
| POSCO Thainox Public Company Limited(*4) |
|
Thailand |
|
Stainless steel manufacturing |
|
|
84.93 |
|
|
|
313,185 |
|
|
|
329,756 |
|
| Zhangjiagang Pohang Stainless Steel Co., Ltd. |
|
China |
|
Stainless steel manufacturing |
|
|
58.60 |
|
|
|
284,214 |
|
|
|
284,392 |
|
| POSCO SS-VINA |
|
Vietnam |
|
Steel manufacturing and sales |
|
|
100.00 |
|
|
|
249,183 |
|
|
|
— |
|
| POSCO-China Holding Corp. |
|
China |
|
Investment management |
|
|
100.00 |
|
|
|
240,430 |
|
|
|
240,430 |
|
| POSCO-India Private Limited |
|
India |
|
Steel manufacturing and sales |
|
|
99.99 |
|
|
|
184,815 |
|
|
|
184,815 |
|
| POSCO MEXICO S.A. DE C.V. |
|
Mexico |
|
Plate steel manufacturing |
|
|
84.84 |
|
|
|
181,451 |
|
|
|
182,110 |
|
| POSCO America Corporation |
|
USA |
|
Trading-Steel |
|
|
99.45 |
|
|
|
167,285 |
|
|
|
167,285 |
|
| POSCO-VIETNAM Co., Ltd. |
|
Vietnam |
|
Steel manufacturing |
|
|
100.00 |
|
|
|
162,392 |
|
|
|
156,778 |
|
| POSCO VST CO., LTD. |
|
Vietnam |
|
|
|
|
95.65 |
|
|
|
144,912 |
|
|
|
|
|
| POSCO(Guangdong) Automotive Steel Co., Ltd. |
|
China |
|
Plate steel manufacturing |
|
|
83.64 |
|
|
|
130,962 |
|
|
|
131,051 |
|
| POSCO COATED STEEL (THAILAND) CO., LTD. |
|
Thailand |
|
Plate steel manufacturing |
|
|
100.00 |
|
|
|
123,884 |
|
|
|
90,012 |
|
| POSCO ASSAN TST STEEL INDUSTRY |
|
Turkey |
|
Steel manufacturing and sales |
|
|
60.00 |
|
|
|
94,555 |
|
|
|
95,213 |
|
| POSCO Investment Co., Ltd. |
|
Hong Kong |
|
Finance |
|
|
99.99 |
|
|
|
86,319 |
|
|
|
86,775 |
|
| POSCO JAPAN Co., Ltd. |
|
Japan |
|
Trading-Steel |
|
|
100.00 |
|
|
|
68,436 |
|
|
|
68,436 |
|
| Qingdao Pohang Stainless Steel Co., Ltd. |
|
China |
|
Stainless steel manufacturing |
|
|
70.00 |
|
|
|
65,982 |
|
|
|
65,982 |
|
| POSCO(Suzhou) Automotive Processing Center Co., Ltd. |
|
China |
|
Steel manufacturing and sales |
|
|
90.00 |
|
|
|
62,494 |
|
|
|
62,494 |
|
| POSCO Electrical Steel India Private Limited |
|
India |
|
Electrical steel manufacturing and sales |
|
|
100.00 |
|
|
|
58,327 |
|
|
|
58,441 |
|
| POSCO AFRICA (PROPRIETARY) LIMITED |
|
South Africa |
|
Trading |
|
|
100.00 |
|
|
|
50,297 |
|
|
|
50,297 |
|
| POSCO-Malaysia SDN. BHD. |
|
Malaysia |
|
Steel manufacturing and sales |
|
|
81.79 |
|
|
|
45,479 |
|
|
|
45,479 |
|
| POSCO China Dalian Plate Processing Center Co., Ltd. |
|
China |
|
Heavy plate processing and marketing |
|
|
80.00 |
|
|
|
32,992 |
|
|
|
32,992 |
|
| POSCO Asia Co., Ltd. |
|
Hong Kong |
|
Steel transit trade |
|
|
100.00 |
|
|
|
32,189 |
|
|
|
32,189 |
|
| POSCO(Guangdong) Steel Co., Ltd. |
|
China |
|
Plate steel sheet manufacturing |
|
|
87.04 |
|
|
|
31,299 |
|
|
|
31,299 |
|
| POSCO-Uruguay S.A |
|
Uruguay |
|
Wood manufacturing and sales |
|
|
98.11 |
|
|
|
30,243 |
|
|
|
30,243 |
|
| Others (33 companies) |
|
|
|
|
|
|
|
|
|
|
351,474 |
|
|
|
333,211 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,470,924 |
|
|
|
5,167,498 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
13,257,282 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
During the six-month period ended June 30, 2015, the Company disposed of 52.2% of shares of SeAH Changwon Intergrated Special Steel Corp. (formerly, POSCO Specialty Steel Co., Ltd), which resulted in the
Company’s loss of control, and the Company classified the remaining investment as investment in an associate. |
| (*2) |
It was classified as an investment in a subsidiary as the Company has control over of more than half of the voting rights by virtue of an agreement with Postech, which has 4.72% of ownership in POSCO M-TECH Co., Ltd.
|
| (*3) |
As of June 30, 2015, there is objective evidence of impairment due to the prolonged decline in the fair value of the accompanying share below its cost. Recoverable amount was measured based on fair value less cost
to sell, and the Company recognized an impairment loss of W172,767 million as the carrying value was higher than its recoverable amount. |
19
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
| (*4) |
As of June 30, 2015, there is objective evidence of impairment due to the prolonged decline in the fair value of POSCO M-TECH and POSCO Thainox Public Company Limited below
their costs. Recoverable amount was determined based on fair value less cost to sell, which was calculated by adding a 13.7% control premium and disposal cost to the stock price as of June 30, 2015. As a result, the Company recognized an
impairment loss of W12,416 million and W16,571 million, respectively, as carrying values were higher than their recoverable amounts. |
| (*5) |
As of June 30, 2015, the investments in subsidiaries amounting to W30,148 million were provided as collateral in relation to the loan agreements of Busan E&E Co,. Ltd. |
| (b) |
Details of associates and carrying values as of June 30, 2015 and December 31, 2014 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
|
|
|
|
June 30, 2015 |
|
|
December 31, 2014 |
|
| |
|
Country |
|
Principal operations |
|
Ownership
(%) |
|
|
Book
value |
|
|
Book
value |
|
| [Domestic] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| EQP POSCO Global 1st Natural Resource Private Equity Fund |
|
Korea |
|
Mine investment |
|
|
26.97 |
|
|
W |
|
|
|
|
169,106 |
|
| SeAH Changwon Intergrated Special Steel (formerly, POSCO Specialty Steel Co., Ltd.)(*1,2,3) |
|
Korea |
|
Manufacture and sale of specialty steel |
|
|
19.94 |
|
|
|
159,978 |
|
|
|
— |
|
| SNNC Co., Ltd. |
|
Korea |
|
STS material Manufacturing and sales |
|
|
49.00 |
|
|
|
100,655 |
|
|
|
100,655 |
|
| Others (5 companies) |
|
|
|
|
|
|
|
|
|
|
21,867 |
|
|
|
21,867 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
451,606 |
|
|
|
291,628 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| [Foreign] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Nickel Mining Company SAS |
|
New
Caledonia |
|
Raw material manufacturing and Sales |
|
|
49.00 |
|
|
|
189,197 |
|
|
|
189,197 |
|
| 7623704 Canada Inc.(*1) |
|
Canada |
|
Mine investment |
|
|
10.40 |
|
|
|
124,341 |
|
|
|
124,341 |
|
| Zhongyue POSCO (Qinhuangdao) Tinplate Industrial Co., Ltd |
|
China |
|
Tinplate manufacturing and sales |
|
|
24.00 |
|
|
|
11,003 |
|
|
|
11,003 |
|
| Others (7 companies) |
|
|
|
|
|
|
|
|
|
|
31,788 |
|
|
|
31,804 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
356,329 |
|
|
|
356,345 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
647,973 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
As of June 30, 2015, it was classified as associate in spite of less than 20% of ownership percentage since the Company is determined to have significant influence over the investee when considering its structure
of the Board of Directors. |
| (*2) |
During the six-month period ended June 30, 2015, POSCO Specialty Steel Co., Ltd changed its corporate name to SeAH Changwon Intergrated Special Steel Corp. |
| (*3) |
As of June 30, 2015, there is objective evidence of impairment including receipt of dividend upon disposal contract of SeAH Changwon Intergrated Special Steel Corp. (formerly, POSCO Specialty Co., Ltd), and,
accordingly, the impairment test was performed. Recoverable amount was determined based on value-in-use, which was calculated by applying 7.9% discount rate and 1.0% growth rate. As a result, the Company recognized an impairment loss of
W13,921 million as the carrying value was higher than its recoverable amount as of June 30, 2015. |
20
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
| (c) |
Details of joint ventures and carrying values as of June 30, 2015 and December 31, 2014 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
|
|
|
|
June 30, 2015 |
|
|
December 31, 2014 |
|
| |
|
Country |
|
Principal operations |
|
Ownership
(%) |
|
|
Book
value |
|
|
Book
value |
|
| Roy Hill Holdings Pty Ltd(*1) |
|
Australia |
|
Mine development |
|
|
10.00 |
|
|
W |
|
|
|
|
1,225,464 |
|
| CSP - Compania Siderurgica do Pecem |
|
Brazil |
|
Steel manufacturing and Sales |
|
|
20.00 |
|
|
|
479,911 |
|
|
|
469,891 |
|
| POSCO-NPS Niobium LLC |
|
USA |
|
Mine development |
|
|
50.00 |
|
|
|
364,609 |
|
|
|
364,609 |
|
| KOBRASCO |
|
Brazil |
|
Facilities lease |
|
|
50.00 |
|
|
|
98,962 |
|
|
|
98,962 |
|
| Others (5 companies) |
|
|
|
|
|
|
|
|
|
|
114,710 |
|
|
|
114,710 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
2,273,636 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
As of June 30, 2015 and December 31, 2014, the entire investment in the joint venture is provided as collateral in relation to loans from project financing of the joint venture. |
11. Investment Property, Net
Changes in the carrying
value of investment property for the six-month period ended June 30, 2015 and the year ended December 31, 2014 were as follows:
| |
1) |
For the six-month period ended June 30, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Beginning |
|
|
Acquisitions |
|
|
Depreciation(*1) |
|
|
Transfer(*2) |
|
|
Ending |
|
| Land |
|
W |
|
|
|
|
— |
|
|
|
— |
|
|
|
(463 |
) |
|
|
35,557 |
|
| Buildings |
|
|
50,112 |
|
|
|
146 |
|
|
|
(1,197 |
) |
|
|
(631 |
) |
|
|
48,430 |
|
| Structures |
|
|
4,005 |
|
|
|
— |
|
|
|
(84 |
) |
|
|
(47 |
) |
|
|
3,874 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
146 |
|
|
|
(1,281 |
) |
|
|
(1,141 |
) |
|
|
87,861 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
The useful life and depreciation method of investment property are identical to those of property, plant and equipment. |
| (*2) |
Mainly includes assets transferred from property, plant and equipment in relation to change in rental ratio and the purpose of use. |
| |
2) |
For the year ended December 31, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Beginning |
|
|
Acquisitions |
|
|
Disposals |
|
|
Depreciation(*1) |
|
|
Transfer(*2) |
|
|
Ending |
|
| Land |
|
W |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
36,020 |
|
| Buildings |
|
|
52,682 |
|
|
|
41 |
|
|
|
(18 |
) |
|
|
(2,404 |
) |
|
|
(189 |
) |
|
|
50,112 |
|
| Structures |
|
|
4,177 |
|
|
|
— |
|
|
|
— |
|
|
|
(160 |
) |
|
|
(12 |
) |
|
|
4,005 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
41 |
|
|
|
(18 |
) |
|
|
(2,564 |
) |
|
|
(201 |
) |
|
|
90,137 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
The useful life and depreciation method of investment property are identical to those of property, plant and equipment. |
| (*2) |
Mainly includes assets transferred to property, plant and equipment in relation to change in rental ratio and the purpose of use. |
21
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
12. Property, Plant and Equipment, Net
Changes in the carrying value of property, plant and equipment for the six-month period ended June 30, 2015 and the year ended December 31, 2014 were
as follows:
| |
1) |
For the six-month period ended June 30, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Beginning |
|
|
Acquisitions |
|
|
Disposals |
|
|
Depreciation |
|
|
Impairment(*1) |
|
|
Others(*2) |
|
|
Ending |
|
| Land |
|
W |
|
|
|
|
— |
|
|
|
(2,484 |
) |
|
|
— |
|
|
|
— |
|
|
|
(4,408 |
) |
|
|
1,414,102 |
|
| Buildings |
|
|
2,760,842 |
|
|
|
1,422 |
|
|
|
(690 |
) |
|
|
(121,592 |
) |
|
|
(7,503 |
) |
|
|
29,305 |
|
|
|
2,661,784 |
|
| Structures |
|
|
2,612,553 |
|
|
|
850 |
|
|
|
(1,314 |
) |
|
|
(96,894 |
) |
|
|
(401 |
) |
|
|
52,662 |
|
|
|
2,567,456 |
|
| Machinery and equipment |
|
|
14,503,266 |
|
|
|
31,828 |
|
|
|
(14,794 |
) |
|
|
(784,766 |
) |
|
|
(37,955 |
) |
|
|
754,619 |
|
|
|
14,452,198 |
|
| Vehicles |
|
|
12,953 |
|
|
|
639 |
|
|
|
— |
|
|
|
(3,208 |
) |
|
|
— |
|
|
|
2,302 |
|
|
|
12,686 |
|
| Tools |
|
|
23,324 |
|
|
|
749 |
|
|
|
— |
|
|
|
(5,934 |
) |
|
|
— |
|
|
|
1,048 |
|
|
|
19,187 |
|
| Furniture and fixtures |
|
|
37,584 |
|
|
|
797 |
|
|
|
(7 |
) |
|
|
(8,397 |
) |
|
|
— |
|
|
|
2,313 |
|
|
|
32,290 |
|
| Finance lease assets |
|
|
6,370 |
|
|
|
— |
|
|
|
— |
|
|
|
(318 |
) |
|
|
— |
|
|
|
— |
|
|
|
6,052 |
|
|
|
|
945,329 |
|
|
|
723,445 |
|
|
|
— |
|
|
|
— |
|
|
|
(577 |
) |
|
|
(875,870 |
) |
|
|
792,327 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
759,730 |
|
|
|
(19,289 |
) |
|
|
(1,021,109 |
) |
|
|
(46,436 |
) |
|
|
(38,029 |
) |
|
|
21,958,082 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
The Company has recognized an impairment loss since recoverable amounts on magnesium smelting plant located in Gangneung and some of the facilities are less than their carrying values for the six-month period ended
June 30, 2015. |
| (*2) |
Represents assets transferred from construction-in-progress to intangible assets, other property, plant and equipment and investment property and assets held-for-sale. |
| |
2) |
For the year ended December 31, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Beginning |
|
|
Acquisitions |
|
|
Disposals |
|
|
Depreciation |
|
|
Impairment(*1) |
|
|
Others(*2) |
|
|
Ending |
|
| Land |
|
W |
|
|
|
|
39 |
|
|
|
(392 |
) |
|
|
— |
|
|
|
— |
|
|
|
24,076 |
|
|
|
1,420,994 |
|
| Buildings |
|
|
2,637,774 |
|
|
|
5,941 |
|
|
|
(1,912 |
) |
|
|
(249,792 |
) |
|
|
(3,681 |
) |
|
|
372,512 |
|
|
|
2,760,842 |
|
| Structures |
|
|
2,469,046 |
|
|
|
11,239 |
|
|
|
(1,750 |
) |
|
|
(194,088 |
) |
|
|
(8,072 |
) |
|
|
336,178 |
|
|
|
2,612,553 |
|
| Machinery and equipment |
|
|
13,202,710 |
|
|
|
125,297 |
|
|
|
(29,430 |
) |
|
|
(1,574,903 |
) |
|
|
(18,543 |
) |
|
|
2,798,135 |
|
|
|
14,503,266 |
|
| Vehicles |
|
|
10,769 |
|
|
|
792 |
|
|
|
(8 |
) |
|
|
(7,884 |
) |
|
|
— |
|
|
|
9,284 |
|
|
|
12,953 |
|
| Tools |
|
|
25,680 |
|
|
|
5,795 |
|
|
|
(54 |
) |
|
|
(15,996 |
) |
|
|
— |
|
|
|
7,899 |
|
|
|
23,324 |
|
| Furniture and fixtures |
|
|
47,394 |
|
|
|
7,150 |
|
|
|
(5 |
) |
|
|
(21,929 |
) |
|
|
(38 |
) |
|
|
5,012 |
|
|
|
37,584 |
|
| Finance lease assets |
|
|
7,007 |
|
|
|
— |
|
|
|
— |
|
|
|
(637 |
) |
|
|
— |
|
|
|
— |
|
|
|
6,370 |
|
| Construction-in-progress |
|
|
3,442,952 |
|
|
|
1,628,325 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4,125,948 |
) |
|
|
945,329 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
1,784,578 |
|
|
|
(33,551 |
) |
|
|
(2,065,229 |
) |
|
|
(30,334 |
) |
|
|
(572,852 |
) |
|
|
22,323,215 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
The Company has recognized an impairment loss since the recoverable amounts of FINEX 1 plant and STS 1 steelmaking plant were lower than their book value. |
| (*2) |
Represents assets transferred from construction-in-progress to investment to subsidiary (W558,915 million), property, plant and equipment, from investment property, to intangible assets, and to assets
held-for-sale. |
22
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
13. Intangible Assets, Net
Changes in the carrying value of intangible assets for the six-month period ended June 30, 2015 and the year ended December 31, 2014 were as follows:
| |
1) |
For the six-month period ended June 30, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Beginning |
|
|
Acquisitions |
|
|
Disposals |
|
|
Amortization |
|
|
Transfer(*2) |
|
|
Ending |
|
| Intellectual property rights |
|
W |
|
|
|
|
— |
|
|
|
— |
|
|
|
(1,319 |
) |
|
|
2,646 |
|
|
|
18,921 |
|
| Membership(*1) |
|
|
53,154 |
|
|
|
2,861 |
|
|
|
(2,775 |
) |
|
|
— |
|
|
|
— |
|
|
|
53,240 |
|
| Development expense |
|
|
127,941 |
|
|
|
— |
|
|
|
— |
|
|
|
(23,791 |
) |
|
|
4,248 |
|
|
|
108,398 |
|
| Port facilities usage rights |
|
|
162,028 |
|
|
|
— |
|
|
|
— |
|
|
|
(4,622 |
) |
|
|
— |
|
|
|
157,406 |
|
| Construction-in-progress |
|
|
16,756 |
|
|
|
10,700 |
|
|
|
— |
|
|
|
— |
|
|
|
(6,844 |
) |
|
|
20,612 |
|
| Other intangible assets |
|
|
26,434 |
|
|
|
2 |
|
|
|
— |
|
|
|
(4,273 |
) |
|
|
749 |
|
|
|
22,912 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
13,563 |
|
|
|
(2,775 |
) |
|
|
(34,005 |
) |
|
|
799 |
|
|
|
381,489 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
Economic useful life of membership is indefinite. |
| (*2) |
Represents assets transferred from construction-in-progress to intangible assets and assets transferred from property, plant and equipment. |
| |
2) |
For the year ended December 31, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Beginning |
|
|
Acquisitions |
|
|
Disposals |
|
|
Amortization |
|
|
Impairment(*2) |
|
|
Transfer(*3) |
|
|
Ending |
|
| Intellectual property rights |
|
W |
|
|
|
|
— |
|
|
|
(217 |
) |
|
|
(2,261 |
) |
|
|
— |
|
|
|
6,260 |
|
|
|
17,594 |
|
| Membership(*1) |
|
|
48,877 |
|
|
|
5,896 |
|
|
|
(2,209 |
) |
|
|
— |
|
|
|
590 |
|
|
|
— |
|
|
|
53,154 |
|
| Development expense |
|
|
29,468 |
|
|
|
381 |
|
|
|
— |
|
|
|
(48,766 |
) |
|
|
— |
|
|
|
146,858 |
|
|
|
127,941 |
|
| Port facilities usage rights |
|
|
172,209 |
|
|
|
— |
|
|
|
— |
|
|
|
(12,018 |
) |
|
|
— |
|
|
|
1,837 |
|
|
|
162,028 |
|
| Construction-in-progress |
|
|
153,719 |
|
|
|
16,414 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(153,377 |
) |
|
|
16,756 |
|
| Other intangible assets |
|
|
20,698 |
|
|
|
13,577 |
|
|
|
— |
|
|
|
(11,067 |
) |
|
|
— |
|
|
|
3,226 |
|
|
|
26,434 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
36,268 |
|
|
|
(2,426 |
) |
|
|
(74,112 |
) |
|
|
590 |
|
|
|
4,804 |
|
|
|
403,907 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
Economic useful life of membership is indefinite. |
| (*2) |
The Company reversed the accumulated impairment loss up to the carrying value before recognition of any impairment loss since recoverable amounts of some memberships exceeded the carrying value. |
| (*3) |
Represents assets transferred from construction-in-progress to intangible assets and assets transferred from property, plant and equipment. |
23
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
14. Borrowings
| (a) |
Borrowings as of June 30, 2015 and December 31, 2014 are as follows: |
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
June 30, 2015 |
|
|
December 31, 2014 |
|
| Short-term borrowings |
|
|
|
|
|
|
|
|
| Short-term borrowings |
|
W |
|
|
|
|
— |
|
| Current portion of long-term borrowings |
|
|
237,261 |
|
|
|
236,553 |
|
| Current portion of loans from foreign financial institutions |
|
|
394 |
|
|
|
418 |
|
| Current portion of debentures |
|
|
1,800,000 |
|
|
|
1,000,000 |
|
| Less : Current portion of discount on debentures issued |
|
|
(779 |
) |
|
|
(681 |
) |
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
1,236,290 |
|
|
|
|
|
|
|
|
|
|
| Long-term borrowings |
|
|
|
|
|
|
|
|
| Long-term borrowings |
|
W |
|
|
|
|
447,437 |
|
| Loans from foreign financial institutions |
|
|
395 |
|
|
|
627 |
|
| Debentures |
|
|
4,111,673 |
|
|
|
4,871,627 |
|
| Less : Discount on debentures issued |
|
|
(16,286 |
) |
|
|
(18,764 |
) |
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
5,300,927 |
|
|
|
|
|
|
|
|
|
|
| (b) |
Short-term borrowings as of June 30, 2015 and December 31, 2014 are as follows: |
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
|
|
|
|
|
|
|
| Lenders |
|
June 30, 2015 |
|
|
December 31, 2014 |
|
| Transfers of account receivables that do not qualify for derecognition |
|
W |
|
|
|
|
— |
|
| (c) |
Current portion of long-term borrowings as of June 30, 2015 and December 31, 2014 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Lenders |
|
Issuance
date |
|
Maturity
date |
|
Annual
interest rate (%) |
|
June 30, 2015 |
|
|
December 31, 2014 |
|
| Borrowings |
|
Woori Bank and others |
|
2006.10.31~
2011.04.28 |
|
2017.03.15~
2024.06.15 |
|
0.75~1.75 |
|
W |
|
|
|
|
15,532 |
|
| Borrowings |
|
Export-Import Bank of Korea |
|
2010.02.18~
2011.03.23 |
|
2015.09.23~
2017.07.26 |
|
4.09~4.50 |
|
|
221,729 |
|
|
|
221,021 |
|
| Loans from foreign financial institutions |
|
NATIXIS(*1) |
|
1986.03.31 |
|
2017.03.31 |
|
2.00 |
|
|
394 |
|
|
|
418 |
|
| Debentures |
|
Domestic debentures 294 and others |
|
2010.08.04~
2011.05.04 |
|
2015.08.04~
2016.05.04 |
|
4.28~4.81 |
|
|
1,799,221 |
|
|
|
999,319 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
1,236,290 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
Korea Development Bank has provided guarantees to the Company for loans from foreign financial institutions. |
24
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
| (d) |
Long-term borrowings excluding current portion, as of June 30, 2015 and December 31, 2014 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Lenders |
|
Issuance
date |
|
Maturity
date |
|
Annual
interest rate (%) |
|
June 30, 2015 |
|
|
December 31, 2014 |
|
| Borrowings |
|
Woori Bank and others(*1) |
|
2006.10.31~
2013.05.08 |
|
2017.03.15~
2041.05.08 |
|
0.75~1.75 |
|
W |
|
|
|
|
55,662 |
|
| Borrowings |
|
Korea National Oil Corporation |
|
2007.12.27~
2013.12.30 |
|
2022.06.25~
2026.12.29 |
|
3 year
Government bond |
|
|
14,479 |
|
|
|
14,159 |
|
| Borrowings |
|
Export-Import Bank of Korea |
|
2010.07.26~
2013.07.03 |
|
2017.07.26~
2018.03.23 |
|
4.09~4.50 |
|
|
275,306 |
|
|
|
377,616 |
|
| Loans from foreign financial institutions |
|
NATIXIS(*2) |
|
1986.03.31 |
|
2017.03.31 |
|
2.00 |
|
|
395 |
|
|
|
627 |
|
| Debentures |
|
Domestic debentures 301 and others |
|
2011.09.07~
2013.10.04 |
|
2016.09.07~
2023.10.04 |
|
3.35~4.12 |
|
|
1,496,965 |
|
|
|
2,295,585 |
|
| Debentures |
|
Samurai Bond 11 and others |
|
2006.08.10~
2013.12.11 |
|
2016.08.20~
2021.12.22 |
|
0.93~5.88 |
|
|
2,598,422 |
|
|
|
2,557,278 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
5,300,927 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
Short-term financial instruments, amounting to W4,100 million and W5,200 million, respectively, as of June 30, 2015 and December 31, 2014 are collateralized for long-term
borrowings from National Forestry Cooperative Federation. |
| (*2) |
Korea Development Bank has provided guarantees to the Company for loans from foreign financial institutions. |
15. Other Payables
Other payables as of June 30,
2015 and December 31, 2014 are as follows:
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
June 30, 2015 |
|
|
December 31, 2014 |
|
| Current |
|
|
|
|
|
|
|
|
| Accounts payable |
|
W |
|
|
|
|
627,337 |
|
| Accrued expenses |
|
|
368,970 |
|
|
|
386,014 |
|
| Dividend payable |
|
|
9,313 |
|
|
|
9,523 |
|
| Finance lease liabilities |
|
|
1,271 |
|
|
|
1,218 |
|
| Withholdings |
|
|
10,017 |
|
|
|
8,404 |
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
1,032,496 |
|
|
|
|
|
|
|
|
|
|
| Non-current |
|
|
|
|
|
|
|
|
| Long-term accounts payable |
|
W |
|
|
|
|
54,131 |
|
| Accrued expenses |
|
|
20,855 |
|
|
|
22,767 |
|
| Finance lease liabilities |
|
|
3,443 |
|
|
|
4,006 |
|
| Long-term withholdings |
|
|
7,309 |
|
|
|
7,903 |
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
88,807 |
|
|
|
|
|
|
|
|
|
|
25
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
16. Other Financial Liabilities
Other financial liabilities as of June 30, 2015 and December 31, 2014 are as follows:
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
June 30, 2015 |
|
|
December 31, 2014 |
|
| Current |
|
|
|
|
|
|
|
|
| Derivative liabilities(*1) |
|
W |
|
|
|
|
— |
|
| Financial guarantee liabilities |
|
|
10,837 |
|
|
|
9,236 |
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
9,236 |
|
|
|
|
|
|
|
|
|
|
| Non-current |
|
|
|
|
|
|
|
|
| Financial guarantee liabilities |
|
W |
|
|
|
|
50,574 |
|
| (*1) |
The Company assessed the values of call option of SeAH Besteel Corp. in relation to the residual equity held by the Company upon the disposal of SeAH Changwon Integrated Special Steel (formerly, POSCO Specialty Co.,
Ltd. ). Accordingly, the Company has recognized derivatives liabilities amounting to W16,710 million as of June 30, 2015. |
17. Provisions
| (a) |
Provisions as of June 30, 2015 and December 31, 2014 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
June 30, 2015 |
|
|
December 31, 2014 |
|
| (in millions of Won) |
|
Current |
|
|
Non-current |
|
|
Current |
|
|
Non-current |
|
| Provision for bonus payments(*1) |
|
W |
|
|
|
|
— |
|
|
|
8,423 |
|
|
|
— |
|
| Provision for restoration(*2) |
|
|
23,438 |
|
|
|
20,131 |
|
|
|
39,336 |
|
|
|
31,063 |
|
| Provision for litigation(*3) |
|
|
— |
|
|
|
411 |
|
|
|
— |
|
|
|
411 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
20,542 |
|
|
|
47,759 |
|
|
|
31,474 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
Represents the provision for bonuses for executives. |
| (*2) |
Due to contamination of land near the Company’s magnesium smelting plant located in Gangneung, a provision has been recognized with a present value of estimated costs for recovery. In order to compute the estimated
costs, the Company has assumed that it would use all of the currently available technologies and materials to recover the land. In addition, the Company has applied a discount rate of 2.64% to measure present value of these costs. |
| (*3) |
The Company has recognized provisions for a litigation in which the Company is more likely than not to lose as of June 30, 2015. |
26
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
| (b) |
Changes in provisions for the six-month period ended June 30, 2015 and the year ended December 31, 2014 were as follows: |
| |
1) |
For the six-month period ended June 30, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Beginning |
|
|
Increase |
|
|
Utilization |
|
|
Ending |
|
| Provision for bonus payments |
|
W |
|
|
|
|
6,827 |
|
|
|
(8,975 |
) |
|
|
6,275 |
|
| Provision for restoration |
|
|
70,399 |
|
|
|
2,068 |
|
|
|
(28,898 |
) |
|
|
43,569 |
|
| Provision for litigation |
|
|
411 |
|
|
|
— |
|
|
|
— |
|
|
|
411 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
8,895 |
|
|
|
(37,873 |
) |
|
|
50,255 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
2) |
For the year ended December 31, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Beginning |
|
|
Increase |
|
|
Utilization |
|
|
Ending |
|
| Provision for bonus payments |
|
W |
|
|
|
|
10,643 |
|
|
|
(10,721 |
) |
|
|
8,423 |
|
| Provision for restoration |
|
|
— |
|
|
|
89,433 |
|
|
|
(19,034 |
) |
|
|
70,399 |
|
| Provision for litigation |
|
|
— |
|
|
|
411 |
|
|
|
— |
|
|
|
411 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
100,487 |
|
|
|
(29,755 |
) |
|
|
79,233 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
18. Employee Benefits
| (a) |
Defined contribution plans |
The expense related to post-employment benefit plans under defined
contribution plans for the three-month and six-month periods ended June 30, 2015 and 2014 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
For the three-month periods
ended June 30 |
|
|
For the six-month periods
ended June 30 |
|
| (in millions of Won) |
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
| Expense related to post-employment benefit plans under defined contribution plans |
|
W |
|
|
|
|
4,888 |
|
|
|
10,518 |
|
|
|
9,351 |
|
| (b) |
Defined benefit plans |
| |
1) |
The amounts recognized in relation to net defined benefit liabilities in the statements of financial position as of June 30, 2015 and December 31, 2014 are as follows: |
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
June 30, 2015 |
|
|
December 31, 2014 |
|
| Present value of funded obligations |
|
W |
|
|
|
|
1,017,164 |
|
| Fair value of plan assets |
|
|
(919,593 |
) |
|
|
(931,006 |
) |
|
|
|
|
|
|
|
|
|
| Net defined benefit liabilities |
|
W |
|
|
|
|
86,158 |
|
|
|
|
|
|
|
|
|
|
27
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
| |
2) |
Changes in present value of defined benefit obligations for the six-month period ended June 30, 2015 and the year ended December 31, 2014 were as follows: |
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
June 30, 2015 |
|
|
December 31, 2014 |
|
| Defined benefit obligation at the beginning of period |
|
W |
|
|
|
|
905,918 |
|
| Current service costs |
|
|
61,673 |
|
|
|
113,688 |
|
| Interest costs |
|
|
14,871 |
|
|
|
32,595 |
|
| Remeasurement |
|
|
24,652 |
|
|
|
47,604 |
|
| Transfer-in |
|
|
— |
|
|
|
1,959 |
|
| Benefits paid |
|
|
(54,947 |
) |
|
|
(84,600 |
) |
|
|
|
|
|
|
|
|
|
| Defined benefit obligation at the end of period |
|
W |
|
|
|
|
1,017,164 |
|
|
|
|
|
|
|
|
|
|
| |
3) |
Changes in the fair value of plan assets for the six-month period ended June 30, 2015 and the year ended December 31, 2014 were as follows: |
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
June 30, 2015 |
|
|
December 31, 2014 |
|
| Fair value of plan assets at the beginning of period |
|
W |
|
|
|
|
805,268 |
|
| Interest on plan assets |
|
|
14,665 |
|
|
|
31,911 |
|
| Remeasurement of plan assets |
|
|
(2,290 |
) |
|
|
(8,417 |
) |
| Contributions to plan assets |
|
|
15,283 |
|
|
|
146,000 |
|
| Transfer-in |
|
|
— |
|
|
|
1,959 |
|
| Benefits paid |
|
|
(39,071 |
) |
|
|
(45,715 |
) |
|
|
|
|
|
|
|
|
|
| Fair value of plan assets at the end of period |
|
W |
|
|
|
|
931,006 |
|
|
|
|
|
|
|
|
|
|
| |
4) |
The amounts recognized in the statements of comprehensive income (loss) for the three-month and six-month periods ended June 30, 2015 and 2014 were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
For the three-month periods
ended June 30 |
|
|
For the six-month periods
ended June 30 |
|
| (in millions of Won) |
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
| Current service costs |
|
W |
|
|
|
|
28,401 |
|
|
|
61,673 |
|
|
|
58,086 |
|
| Net interest costs |
|
|
103 |
|
|
|
171 |
|
|
|
206 |
|
|
|
342 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
28,572 |
|
|
|
61,879 |
|
|
|
58,428 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
28
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
19. Other Liabilities
Other liabilities as of June 30, 2015 and December 31, 2014 are as follows:
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
June 30, 2015 |
|
|
December 31, 2014 |
|
| Current |
|
|
|
|
|
|
|
|
| Advances received |
|
W |
|
|
|
|
88,880 |
|
| Withholdings |
|
|
22,154 |
|
|
|
18,417 |
|
| Unearned revenue |
|
|
1,401 |
|
|
|
1,211 |
|
|
|
|
|
|
|
|
|
|
|
|
|
34,234 |
|
|
|
108,508 |
|
|
|
|
|
|
|
|
|
|
| Non-current |
|
|
|
|
|
|
|
|
| Unearned revenue |
|
W |
|
|
|
|
234 |
|
20. Financial Instruments
| (a) |
Classification of financial instruments |
| |
1) |
Financial assets as of June 30, 2015 and December 31, 2014 are as follows: |
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
June 30, 2015 |
|
|
December 31, 2014 |
|
| Financial assets at fair value through profit or loss |
|
|
|
|
|
|
|
|
| Derivatives assets held for trading |
|
W |
|
|
|
|
10,233 |
|
|
|
|
|
|
|
|
|
|
| Available-for-sale financial assets |
|
|
1,756,213 |
|
|
|
1,785,029 |
|
| Loans and receivables |
|
|
7,104,171 |
|
|
|
6,024,798 |
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
7,820,060 |
|
|
|
|
|
|
|
|
|
|
| |
2) |
Financial liabilities as of June 30, 2015 and December 31, 2014 are as follows: |
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
June 30, 2015 |
|
|
December 31, 2014 |
|
| Financial liabilities at fair value through profit or loss
Derivatives liabilities held for trading |
|
W |
|
|
|
|
— |
|
| Financial liabilities measured at amortized cost |
|
|
|
|
|
|
|
|
| Trade accounts and notes payable |
|
|
735,559 |
|
|
|
777,401 |
|
| Borrowings |
|
|
6,471,694 |
|
|
|
6,537,217 |
|
| Financial guarantee liabilities(* 1) |
|
|
72,711 |
|
|
|
59,810 |
|
| Others |
|
|
836,847 |
|
|
|
1,036,487 |
|
|
|
|
|
|
|
|
|
|
|
|
|
8,116,811 |
|
|
|
8,410,915 |
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
8,410,915 |
|
|
|
|
|
|
|
|
|
|
29
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
| (*1) |
Financial liabilities were recognized in connection with financial guarantee contracts as of June 30, 2015. The details of the amount of guarantees provided are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
|
|
Guarantee
limit |
|
|
Guarantee
amount |
|
| Guarantee
beneficiary |
|
Financial
institution |
|
Foreign
currency |
|
|
Won
equivalent |
|
|
Foreign
currency |
|
|
Won
equivalent |
|
| POSCO(Guangdong) |
|
SMBC |
|
USD |
|
|
35,000,000 |
|
|
|
39,344 |
|
|
|
USD |
|
|
|
35,000,000 |
|
|
|
39,344 |
|
| Automotive Steel Co., Ltd. |
|
BOA |
|
USD |
|
|
30,000,000 |
|
|
|
33,723 |
|
|
|
USD |
|
|
|
30,000,000 |
|
|
|
33,723 |
|
| Zhangjiagang Pohang |
|
MIZUHO |
|
USD |
|
|
50,000,000 |
|
|
|
56,205 |
|
|
|
USD |
|
|
|
50,000,000 |
|
|
|
56,205 |
|
| Stainless Steel Co., Ltd. |
|
Credit Agricole |
|
USD |
|
|
50,000,000 |
|
|
|
56,205 |
|
|
|
USD |
|
|
|
50,000,000 |
|
|
|
56,205 |
|
|
|
BTMU |
|
USD |
|
|
30,000,000 |
|
|
|
33,723 |
|
|
|
USD |
|
|
|
30,000,000 |
|
|
|
33,723 |
|
| POSCO Maharashtra Steel |
|
Export-Import Bank of Korea |
|
USD |
|
|
193,000,000 |
|
|
|
216,951 |
|
|
|
USD |
|
|
|
189,100,000 |
|
|
|
212,567 |
|
| Private Limited |
|
DBS |
|
USD |
|
|
100,000,000 |
|
|
|
112,410 |
|
|
|
USD |
|
|
|
100,000,000 |
|
|
|
112,410 |
|
|
|
HSBC |
|
USD |
|
|
80,000,000 |
|
|
|
89,928 |
|
|
|
USD |
|
|
|
71,000,000 |
|
|
|
79,811 |
|
|
|
SCB |
|
USD |
|
|
73,069,000 |
|
|
|
82,137 |
|
|
|
USD |
|
|
|
61,069,000 |
|
|
|
68,648 |
|
|
|
Citi |
|
USD |
|
|
60,000,000 |
|
|
|
67,446 |
|
|
|
USD |
|
|
|
51,000,000 |
|
|
|
57,329 |
|
|
|
ING |
|
USD |
|
|
30,000,000 |
|
|
|
33,723 |
|
|
|
USD |
|
|
|
21,000,000 |
|
|
|
23,606 |
|
|
|
KDB |
|
USD |
|
|
30,000,000 |
|
|
|
33,723 |
|
|
|
USD |
|
|
|
30,000,000 |
|
|
|
33,723 |
|
| POSCO ASSAN TST |
|
SMBC |
|
USD |
|
|
71,392,500 |
|
|
|
80,252 |
|
|
|
USD |
|
|
|
57,114,000 |
|
|
|
64,202 |
|
| STEEL INDUSTRY |
|
KDB |
|
USD |
|
|
45,000,000 |
|
|
|
50,585 |
|
|
|
USD |
|
|
|
36,000,000 |
|
|
|
40,468 |
|
|
|
ING |
|
USD |
|
|
45,000,000 |
|
|
|
50,585 |
|
|
|
USD |
|
|
|
36,000,000 |
|
|
|
40,468 |
|
|
|
HSBC |
|
USD |
|
|
27,000,000 |
|
|
|
30,351 |
|
|
|
USD |
|
|
|
21,600,000 |
|
|
|
24,281 |
|
| POSCO Electrical Steel |
|
ING |
|
USD |
|
|
50,000,000 |
|
|
|
56,205 |
|
|
|
USD |
|
|
|
50,000,000 |
|
|
|
56,205 |
|
| India Private Limited |
|
SCB |
|
USD |
|
|
33,784,000 |
|
|
|
37,977 |
|
|
|
USD |
|
|
|
33,784,000 |
|
|
|
37,977 |
|
| POSCO Investment Co., Ltd. |
|
HSBC |
|
USD |
|
|
50,000,000 |
|
|
|
56,205 |
|
|
|
USD |
|
|
|
50,000,000 |
|
|
|
56,205 |
|
|
|
JP Morgan |
|
USD |
|
|
50,000,000 |
|
|
|
56,205 |
|
|
|
USD |
|
|
|
50,000,000 |
|
|
|
56,205 |
|
|
|
MIZUHO |
|
USD |
|
|
50,000,000 |
|
|
|
56,205 |
|
|
|
USD |
|
|
|
50,000,000 |
|
|
|
56,205 |
|
|
|
BOA |
|
USD |
|
|
45,000,000 |
|
|
|
50,585 |
|
|
|
USD |
|
|
|
37,000,000 |
|
|
|
41,592 |
|
|
|
BTMU |
|
USD |
|
|
30,000,000 |
|
|
|
33,723 |
|
|
|
USD |
|
|
|
22,000,000 |
|
|
|
24,730 |
|
|
|
ING |
|
USD |
|
|
30,000,000 |
|
|
|
33,723 |
|
|
|
USD |
|
|
|
22,000,000 |
|
|
|
24,730 |
|
|
|
SMBC |
|
USD |
|
|
30,000,000 |
|
|
|
33,723 |
|
|
|
USD |
|
|
|
22,000,000 |
|
|
|
24,730 |
|
| POSCO MEXICO S.A. DE |
|
SMBC |
|
USD |
|
|
109,725,000 |
|
|
|
123,342 |
|
|
|
USD |
|
|
|
109,725,000 |
|
|
|
123,342 |
|
|
|
MIZUHO |
|
USD |
|
|
45,000,000 |
|
|
|
50,585 |
|
|
|
USD |
|
|
|
45,000,000 |
|
|
|
50,585 |
|
|
|
BOA |
|
USD |
|
|
40,000,000 |
|
|
|
44,964 |
|
|
|
USD |
|
|
|
40,000,000 |
|
|
|
44,964 |
|
|
|
HSBC |
|
USD |
|
|
40,000,000 |
|
|
|
44,964 |
|
|
|
USD |
|
|
|
40,000,000 |
|
|
|
44,964 |
|
| POSCO SS-VINA |
|
Export-Import Bank of Korea |
|
USD |
|
|
249,951,050 |
|
|
|
280,970 |
|
|
|
USD |
|
|
|
249,951,050 |
|
|
|
280,970 |
|
|
|
BOA |
|
USD |
|
|
40,000,000 |
|
|
|
44,964 |
|
|
|
USD |
|
|
|
40,000,000 |
|
|
|
44,964 |
|
|
|
BTMU |
|
USD |
|
|
40,000,000 |
|
|
|
44,964 |
|
|
|
USD |
|
|
|
40,000,000 |
|
|
|
44,964 |
|
|
|
DBS |
|
USD |
|
|
24,400,000 |
|
|
|
27,428 |
|
|
|
USD |
|
|
|
24,400,000 |
|
|
|
27,428 |
|
| POSCO-VIETNAM Co., Ltd. |
|
Export-Import Bank of Korea |
|
USD |
|
|
196,000,000 |
|
|
|
220,324 |
|
|
|
USD |
|
|
|
196,000,000 |
|
|
|
220,324 |
|
| POSCO VST CO., LTD. |
|
ANZ |
|
USD |
|
|
25,000,000 |
|
|
|
28,103 |
|
|
|
USD |
|
|
|
18,750,000 |
|
|
|
21,077 |
|
|
|
HSBC |
|
USD |
|
|
20,000,000 |
|
|
|
22,482 |
|
|
|
USD |
|
|
|
15,000,000 |
|
|
|
16,862 |
|
|
|
MIZUHO |
|
USD |
|
|
20,000,000 |
|
|
|
22,482 |
|
|
|
USD |
|
|
|
15,000,000 |
|
|
|
16,862 |
|
| LLP POSUK Titanium |
|
Kookmin Bank |
|
USD |
|
|
15,000,000 |
|
|
|
16,862 |
|
|
|
USD |
|
|
|
15,000,000 |
|
|
|
16,862 |
|
| PT. KRAKATAU POSCO |
|
Export-Import Bank of Korea |
|
USD |
|
|
567,000,000 |
|
|
|
637,365 |
|
|
|
USD |
|
|
|
524,391,304 |
|
|
|
589,468 |
|
|
|
SMBC |
|
USD |
|
|
140,000,000 |
|
|
|
157,374 |
|
|
|
USD |
|
|
|
129,652,174 |
|
|
|
145,742 |
|
|
|
BTMU |
|
USD |
|
|
119,000,000 |
|
|
|
133,768 |
|
|
|
USD |
|
|
|
108,652,174 |
|
|
|
122,136 |
|
|
|
SCB |
|
USD |
|
|
107,800,000 |
|
|
|
121,178 |
|
|
|
USD |
|
|
|
100,252,174 |
|
|
|
112,693 |
|
|
|
MIZUHO |
|
USD |
|
|
105,000,000 |
|
|
|
118,031 |
|
|
|
USD |
|
|
|
95,869,565 |
|
|
|
107,767 |
|
|
|
Credit Suisse AG |
|
USD |
|
|
91,000,000 |
|
|
|
102,293 |
|
|
|
USD |
|
|
|
83,086,957 |
|
|
|
93,398 |
|
|
|
HSBC |
|
USD |
|
|
91,000,000 |
|
|
|
102,293 |
|
|
|
USD |
|
|
|
83,086,957 |
|
|
|
93,398 |
|
|
|
ANZ |
|
USD |
|
|
73,500,000 |
|
|
|
82,621 |
|
|
|
USD |
|
|
|
68,934,783 |
|
|
|
77,490 |
|
|
|
BOA |
|
USD |
|
|
35,000,000 |
|
|
|
39,344 |
|
|
|
USD |
|
|
|
31,956,522 |
|
|
|
35,922 |
|
|
|
CTBC |
|
USD |
|
|
21,000,000 |
|
|
|
23,606 |
|
|
|
USD |
|
|
|
19,173,913 |
|
|
|
21,553 |
|
| CSP - Compania |
|
Export-Import Bank of Korea |
|
USD |
|
|
182,000,000 |
|
|
|
204,586 |
|
|
|
USD |
|
|
|
103,051,827 |
|
|
|
115,841 |
|
| Siderurgica do Pecem |
|
Santander |
|
USD |
|
|
47,600,000 |
|
|
|
53,507 |
|
|
|
USD |
|
|
|
26,945,144 |
|
|
|
30,289 |
|
|
|
BNP |
|
USD |
|
|
47,600,000 |
|
|
|
53,507 |
|
|
|
USD |
|
|
|
26,945,144 |
|
|
|
30,289 |
|
|
|
MIZUHO |
|
USD |
|
|
47,600,000 |
|
|
|
53,507 |
|
|
|
USD |
|
|
|
26,945,144 |
|
|
|
30,289 |
|
|
|
HSBC |
|
USD |
|
|
35,200,000 |
|
|
|
39,568 |
|
|
|
USD |
|
|
|
19,925,920 |
|
|
|
22,399 |
|
|
|
Credit Agricole |
|
USD |
|
|
20,000,000 |
|
|
|
22,482 |
|
|
|
USD |
|
|
|
11,321,456 |
|
|
|
12,726 |
|
|
|
SOCIETE GENERALE |
|
USD |
|
|
20,000,000 |
|
|
|
22,482 |
|
|
|
USD |
|
|
|
11,321,456 |
|
|
|
12,726 |
|
|
|
KfW |
|
USD |
|
|
20,000,000 |
|
|
|
22,482 |
|
|
|
USD |
|
|
|
11,321,456 |
|
|
|
12,726 |
|
|
|
BNDES |
|
BRL |
|
|
464,060,000 |
|
|
|
167,396 |
|
|
|
BRL |
|
|
|
187,340,618 |
|
|
|
67,578 |
|
| POSCO COATED STEEL (THAILAND) CO., LTD. |
|
The Great & Co Co., Ltd.(SPC) |
|
THB |
|
|
5,501,000,000 |
|
|
|
182,963 |
|
|
|
THB |
|
|
|
5,501,000,000 |
|
|
|
182,963 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
USD |
|
|
3,953,621,550 |
|
|
|
4,444,270 |
|
|
|
USD |
|
|
|
3,537,327,120 |
|
|
|
3,976,312 |
|
|
|
|
|
BRL |
|
|
464,060,000 |
|
|
|
167,396 |
|
|
|
BRL |
|
|
|
187,340,618 |
|
|
|
67,578 |
|
|
|
|
|
THB |
|
|
5,501,000,000 |
|
|
|
182,963 |
|
|
|
THB |
|
|
|
5,501,000,000 |
|
|
|
182,963 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
| |
3) |
Finance income and costs by category of financial instrument for the six-month periods ended June 30, 2015 and 2014 were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Finance income and costs |
|
|
|
|
| |
Interest
income(cost) |
|
|
Dividend
income(*1) |
|
|
Gain and loss
on foreign
currency |
|
|
Gain and loss
on disposal |
|
|
Impairment
loss |
|
|
Others |
|
|
Total |
|
|
Other
comprehensive
income |
|
| Financial assets at fair value through profit or loss |
|
W |
|
|
|
|
— |
|
|
|
— |
|
|
|
(438 |
) |
|
|
— |
|
|
|
4,947 |
|
|
|
4,509 |
|
|
|
— |
|
| Available-for-sale financial assets |
|
|
20 |
|
|
|
42,784 |
|
|
|
— |
|
|
|
(16 |
) |
|
|
(51,956 |
) |
|
|
— |
|
|
|
(9,168 |
) |
|
|
28,379 |
|
| Loans and receivables |
|
|
41,894 |
|
|
|
— |
|
|
|
25,248 |
|
|
|
— |
|
|
|
— |
|
|
|
(221 |
) |
|
|
66,921 |
|
|
|
— |
|
| Financial liabilities at fair value through profit or loss |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,486 |
|
|
|
5,486 |
|
|
|
— |
|
| Financial liabilities at amortized cost |
|
|
(122,449 |
) |
|
|
— |
|
|
|
(57,646 |
) |
|
|
— |
|
|
|
— |
|
|
|
(48 |
) |
|
|
(180,143 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
42,784 |
|
|
|
(32,398 |
) |
|
|
(454 |
) |
|
|
(51,956 |
) |
|
|
10,164 |
|
|
|
(112,395 |
) |
|
|
28,379 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
Financial income in the statement of comprehensive income includes the dividends from subsidiaries, associates and joint ventures of W265,384 million for the six-month period ended June 30, 2015.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Finance income and costs |
|
|
|
|
| |
Interest
income(cost) |
|
|
Dividend
income(*1) |
|
|
Gain and loss
on foreign
currency |
|
|
Gain and loss
on disposal |
|
|
Impairment
loss |
|
|
Others |
|
|
Total |
|
|
Other
comprehensive
loss |
|
| Financial assets at fair value through profit or loss |
|
W |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,053 |
|
|
|
2,053 |
|
|
|
— |
|
| Available-for-sale financial assets |
|
|
236 |
|
|
|
35,155 |
|
|
|
— |
|
|
|
117,682 |
|
|
|
(4,573 |
) |
|
|
— |
|
|
|
148,500 |
|
|
|
(312,092 |
) |
| Loans and receivables |
|
|
47,449 |
|
|
|
— |
|
|
|
(3,220 |
) |
|
|
— |
|
|
|
— |
|
|
|
(450 |
) |
|
|
43,779 |
|
|
|
— |
|
| Financial liabilities at fair value through profit or loss |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(38,581 |
) |
|
|
— |
|
|
|
13,520 |
|
|
|
(25,061 |
) |
|
|
— |
|
| Financial liabilities at amortized cost |
|
|
(125,351 |
) |
|
|
— |
|
|
|
167,553 |
|
|
|
(17,631 |
) |
|
|
— |
|
|
|
(91 |
) |
|
|
24,480 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
35,155 |
|
|
|
164,333 |
|
|
|
61,470 |
|
|
|
(4,573 |
) |
|
|
15,032 |
|
|
|
193,751 |
|
|
|
(312,092 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
Financial income in the statement of comprehensive income includes the dividends from subsidiaries, associates and joint ventures of W93,573 million for the six-month period ended June 30, 2014.
|
| |
4) |
Finance income and costs by category of financial instrument for the three-month periods ended June 30, 2015 and 2014 were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Finance income and costs |
|
|
Other
comprehensive
income |
|
| |
Interest
income(cost) |
|
|
Dividend
income(*1) |
|
|
Gain and loss
on foreign
currency |
|
|
Gain and loss
on disposal |
|
|
Impairment
loss |
|
|
Others |
|
|
Total |
|
|
| Financial assets at fair value through profit or loss |
|
W |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,790 |
|
|
|
4,790 |
|
|
|
— |
|
| Available-for-sale financial assets |
|
|
11 |
|
|
|
7,269 |
|
|
|
— |
|
|
|
(16 |
) |
|
|
(27,619 |
) |
|
|
— |
|
|
|
(20,355 |
) |
|
|
267 |
|
| Loans and receivables |
|
|
9,249 |
|
|
|
— |
|
|
|
14,195 |
|
|
|
— |
|
|
|
— |
|
|
|
(125 |
) |
|
|
23,319 |
|
|
|
— |
|
| Financial liabilities at fair value through profit or loss |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,486 |
|
|
|
5,486 |
|
|
|
— |
|
| Financial liabilities at amortized cost |
|
|
(59,165 |
) |
|
|
— |
|
|
|
(44,604 |
) |
|
|
— |
|
|
|
— |
|
|
|
(23 |
) |
|
|
(103,792 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
7,269 |
|
|
|
(30,409 |
) |
|
|
(16 |
) |
|
|
(27,619 |
) |
|
|
10,128 |
|
|
|
(90,552 |
) |
|
|
267 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
| (*1) |
Financial income in the statement of comprehensive income includes the dividends from subsidiaries, associates and joint ventures of W27,888 million for the three-month period ended June 30, 2015.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Finance income and costs |
|
|
Other
comprehensive
loss |
|
| (in millions of Won) |
|
Interest
income(cost) |
|
|
Dividend
income(*1) |
|
|
Gain and loss
on foreign
currency |
|
|
Gain and loss
on disposal |
|
|
Impairment
loss |
|
|
Others |
|
|
Total |
|
|
| Financial assets at fair value through profit or loss |
|
W |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,297 |
|
|
|
1,297 |
|
|
|
— |
|
| Available-for-sale financial assets |
|
|
172 |
|
|
|
7,277 |
|
|
|
— |
|
|
|
110,609 |
|
|
|
(3,309 |
) |
|
|
— |
|
|
|
114,749 |
|
|
|
(92,665 |
) |
| Loans and receivables |
|
|
16,652 |
|
|
|
— |
|
|
|
(35,800 |
) |
|
|
4 |
|
|
|
— |
|
|
|
(122 |
) |
|
|
(19,266 |
) |
|
|
— |
|
| Financial liabilities at fair value through profit or loss |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(43,859 |
) |
|
|
— |
|
|
|
(19,566 |
) |
|
|
(63,425 |
) |
|
|
— |
|
| Financial liabilities at amortized cost |
|
|
(52,292 |
) |
|
|
— |
|
|
|
276,345 |
|
|
|
(19,131 |
) |
|
|
— |
|
|
|
(46 |
) |
|
|
204,876 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
7,277 |
|
|
|
240,545 |
|
|
|
47,623 |
|
|
|
(3,309 |
) |
|
|
(18,437 |
) |
|
|
238,231 |
|
|
|
(92,665 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
Financial income in the statement of comprehensive income includes the dividends from subsidiaries, associates and joint ventures of W24,980 million for the three-month period ended June 30, 2014.
|
| |
1) |
Fair value and book value |
The carrying amount and the fair value of financial instruments as
of June 30, 2015 and December 31, 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
June 30, 2015 |
|
|
December 31, 2014 |
|
| (in millions of Won) |
|
Book value |
|
|
Fair value |
|
|
Book value |
|
|
Fair value |
|
| Assets measured at fair value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Available-for-sale financial assets(*1) |
|
W |
|
|
|
|
1,636,284 |
|
|
|
1,648,567 |
|
|
|
1,648,567 |
|
| Derivatives assets held for trading(*2) |
|
|
59,065 |
|
|
|
59,065 |
|
|
|
10,233 |
|
|
|
10,233 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,695,349 |
|
|
|
1,695,349 |
|
|
|
1,658,800 |
|
|
|
1,658,800 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Assets measured amortized cost(*3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents |
|
|
1,524,178 |
|
|
|
1,524,178 |
|
|
|
1,742,767 |
|
|
|
1,742,767 |
|
| Trade accounts and notes receivable, net |
|
|
2,948,360 |
|
|
|
2,948,360 |
|
|
|
3,181,107 |
|
|
|
3,181,107 |
|
| Loans and other receivables, net |
|
|
2,631,633 |
|
|
|
2,631,633 |
|
|
|
1,100,924 |
|
|
|
1,100,924 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,104,171 |
|
|
|
7,104,171 |
|
|
|
6,024,798 |
|
|
|
6,024,798 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities measured at fair value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Derivatives liabilities held for trading(*2) |
|
|
16,710 |
|
|
|
16,710 |
|
|
|
— |
|
|
|
— |
|
| Liabilities measured amortized cost(*3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Trade accounts and notes payable |
|
|
735,559 |
|
|
|
735,559 |
|
|
|
777,401 |
|
|
|
777,401 |
|
| Borrowings |
|
|
6,471,694 |
|
|
|
6,840,557 |
|
|
|
6,537,217 |
|
|
|
6,918,972 |
|
| Financial guarantee liabilities |
|
|
72,711 |
|
|
|
72,711 |
|
|
|
59,810 |
|
|
|
59,810 |
|
| Others |
|
|
836,847 |
|
|
|
836,847 |
|
|
|
1,036,487 |
|
|
|
1,036,487 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
8,485,674 |
|
|
|
8,410,915 |
|
|
|
8,792,670 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
32
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
| (*1) |
The fair value of available-for-sale financial assets publicly traded is measured at the closing bid price quoted at the end of the reporting period. Meanwhile, the fair value of unquoted available-for-sale financial
assets is calculated using the valuation results from an external pricing service in which weighted average cost of capital of evaluated companies are used as a discount rate. Available-for-sale financial assets which are not measured at fair value
are not included. |
| (*2) |
The fair value of derivatives is measured using valuation models such as Black-scholes model, binominal lattice model and others in which the market yields on government bonds are used as a discount rate.
|
| (*3) |
The fair value of financial assets and liabilities measured at amortized cost is determined at the present value of estimated future cash flows discounted at the current market interest rate. The fair value is
calculated for the disclosures in the notes. On the other hand, the Company has not performed fair value measurement for the financial assets and liabilities measured at amortized cost except borrowings since their carrying amounts approximate fair
value. |
| |
2) |
The fair value hierarchy |
The fair values of financial instruments by fair value hierarchy as
of June 30, 2015 and December 31, 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
| Financial assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Available-for-sale financial assets |
|
W |
|
|
|
|
— |
|
|
|
6,895 |
|
|
|
1,636,284 |
|
| Derivatives assets held for trading |
|
|
— |
|
|
|
12,711 |
|
|
|
46,354 |
|
|
|
59,065 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
12,711 |
|
|
|
53,249 |
|
|
|
1,695,349 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Financial liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Derivatives liabilities held for trading |
|
W |
|
|
|
|
— |
|
|
|
16,710 |
|
|
|
16,710 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
| Financial assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Available-for-sale financial assets |
|
W |
|
|
|
|
— |
|
|
|
28,177 |
|
|
|
1,648,567 |
|
| Derivatives assets held for trading |
|
|
— |
|
|
|
10,233 |
|
|
|
— |
|
|
|
10,233 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
10,233 |
|
|
|
28,177 |
|
|
|
1,658,800 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
3) |
Financial risk management |
The Company is exposed to credit risk, liquidity risk and market
risk arising from financial assets and liabilities. The Company’s financial risk management objectives and policies are consistent with those disclosed in the separate financial statements as of and for the year ended December 31, 2014.
21. Share Capital and Capital Surplus
33
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
| (a) |
Share capital as of June 30, 2015 and December 31, 2014 are as follows: |
|
|
|
|
|
|
|
|
|
| (Share, Won) |
|
June 30, 2015 |
|
|
December 31, 2014 |
|
| Authorized shares |
|
|
200,000,000 |
|
|
|
200,000,000 |
|
| Par value |
|
W |
|
|
|
|
5,000 |
|
| Issued shares(*1) |
|
|
87,186,835 |
|
|
|
87,186,835 |
|
| Shared capital(*2) |
|
W |
|
|
|
|
482,403,125,000 |
|
| (*1) |
As of June 30, 2015, total shares of ADRs of 54,029,300 are equivalent to 13,507,325 of common stock. |
| (*2) |
As of June 30, 2015, the difference between the ending balance of common stock and the par value of issued common stock is W46,469 million due to retirement of 9,293,790 treasury stocks.
|
| (b) |
Capital surplus as of June 30, 2015 and December 31, 2014 are as follows: |
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
June 30, 2015 |
|
|
December 31, 2014 |
|
| Additional paid in capital |
|
W |
|
|
|
|
463,825 |
|
| Gain on disposal of treasury shares |
|
|
783,804 |
|
|
|
783,791 |
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
1,247,616 |
|
|
|
|
|
|
|
|
|
|
34
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
22. Hybrid Bonds
Hybrid bonds classified as equity as of June 30, 2015 and December 31, 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Date of issue |
|
|
Date of maturity |
|
|
Rate of
interest (%) |
|
|
June 30, 2015 |
|
|
December 31, 2014 |
|
| Hybrid bond 1-1(*1) |
|
|
6/13/2013 |
|
|
|
6/13/2043 |
|
|
|
4.30 |
|
|
W |
|
|
|
|
800,000 |
|
| Hybrid bond 1-2(*1) |
|
|
6/13/2013 |
|
|
|
6/13/2043 |
|
|
|
4.60 |
|
|
|
200,000 |
|
|
|
200,000 |
|
| Issuance cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3,081 |
) |
|
|
(3,081 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
996,919 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
Details of hybrid bonds as of June 30, 2015 as follows: |
|
|
|
|
|
| (in millions of Won) |
|
Hybrid bond 1-1 |
|
Hybrid bond 1-2 |
| Issue price |
|
800,000 |
|
200,000 |
|
|
|
| Maturity date |
|
30 years (The Company has a right to extend the maturity date) |
|
30 years (The Company has a right to extend the maturity date) |
|
|
|
| Interest rate |
|
Issue date ~ 2018-06-12 : 4.3% reset every 5 years as follows;
· After 5 years : return on government bond (5 years) + 1.3%
· After 10 years : addtionally + 0.25% according to Step-up clauses
· After 25 years : addtionally + 0.75% |
|
Issue date ~ 2023-06-12 : 4.6% reset every 10 years as follows;
· After 10 years : return on government bond (10 years) + 1.4%
· After 10 years : addtionally + 0.25% according to Step-up clauses
· After 30 years : addtionally + 0.75% |
|
|
|
| Interest payments condition |
|
Quarterly (Optional deferral of interest payment is available to the Company) |
|
Quarterly (Optional deferral of interest payment is available to the Company) |
|
|
|
| Others |
|
The Company can call the hybrid bond at year 5 and interest payment date afterwards |
|
The Company can call the hybrid bond at year 10 and interest payment date afterwards |
The interest accumulated but not paid on the hybrid bonds as of June 30, 2015 amounts to W2,133 million.
23. Reserves
Reserves as of June 30, 2015 and
December 31, 2014 are as follows:
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
June 30, 2015 |
|
|
December 31, 2014 |
|
| Accumulated changes in the unrealized fair value of available-for-sale investments, net of tax |
|
W |
|
|
|
|
94,042 |
|
24. Treasury Shares
As
of June 30, 2015, the Company holds 7,193,377 shares of treasury stock for price stabilization in accordance with the Board of Directors’ resolution.
35
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
25. Selling and Administrative Expenses
| (a) |
Administrative expenses |
Administrative expenses for the three-month and six-month periods
ended June 30, 2015 and 2014 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
For the three-month periods
ended June 30 |
|
|
For the six-month periods
ended June 30 |
|
| (in millions of Won) |
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
| Wages and salaries |
|
W |
|
|
|
|
48,564 |
|
|
|
107,423 |
|
|
|
100,932 |
|
| Expenses related to post-employment benefits |
|
|
6,557 |
|
|
|
5,311 |
|
|
|
16,759 |
|
|
|
13,146 |
|
| Other employee benefits |
|
|
11,460 |
|
|
|
12,699 |
|
|
|
25,782 |
|
|
|
24,741 |
|
| Travel |
|
|
3,603 |
|
|
|
3,566 |
|
|
|
6,693 |
|
|
|
6,587 |
|
| Depreciation |
|
|
4,947 |
|
|
|
5,964 |
|
|
|
10,045 |
|
|
|
11,896 |
|
| Amortization |
|
|
13,058 |
|
|
|
13,490 |
|
|
|
26,142 |
|
|
|
26,553 |
|
| Rental |
|
|
16,257 |
|
|
|
17,275 |
|
|
|
34,635 |
|
|
|
35,065 |
|
| Repairs |
|
|
2,699 |
|
|
|
2,549 |
|
|
|
4,086 |
|
|
|
6,225 |
|
| Advertising |
|
|
17,967 |
|
|
|
21,396 |
|
|
|
36,016 |
|
|
|
42,312 |
|
| Research & development |
|
|
19,215 |
|
|
|
32,813 |
|
|
|
37,909 |
|
|
|
56,412 |
|
| Service fees |
|
|
48,626 |
|
|
|
43,317 |
|
|
|
90,154 |
|
|
|
90,081 |
|
| Supplies expense |
|
|
1,463 |
|
|
|
1,271 |
|
|
|
2,838 |
|
|
|
2,711 |
|
| Vehicles maintenance |
|
|
1,690 |
|
|
|
1,755 |
|
|
|
3,485 |
|
|
|
3,501 |
|
| Industry association fee |
|
|
3,626 |
|
|
|
1,638 |
|
|
|
5,205 |
|
|
|
5,178 |
|
| Training |
|
|
6,681 |
|
|
|
3,204 |
|
|
|
7,494 |
|
|
|
4,825 |
|
| Conference |
|
|
1,388 |
|
|
|
1,147 |
|
|
|
2,812 |
|
|
|
2,362 |
|
| Bad debt expenses(Reversal of bad debt expenses) |
|
|
(912 |
) |
|
|
13 |
|
|
|
(1,209 |
) |
|
|
516 |
|
| Others |
|
|
12,401 |
|
|
|
8,273 |
|
|
|
19,512 |
|
|
|
16,753 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
224,245 |
|
|
|
435,781 |
|
|
|
449,796 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling expenses for the three-month and six-month periods ended
June 30, 2015 and 2014 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
For the three-month periods
ended June 30 |
|
|
For the six-month periods
ended June 30 |
|
| (in millions of Won) |
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
| Freight and custody expenses |
|
W |
|
|
|
|
212,706 |
|
|
|
437,900 |
|
|
|
418,781 |
|
| Operating expenses for distribution center |
|
|
2,895 |
|
|
|
2,424 |
|
|
|
5,414 |
|
|
|
4,893 |
|
| Sales commissions |
|
|
12,691 |
|
|
|
17,188 |
|
|
|
28,235 |
|
|
|
32,601 |
|
| Sales advertising |
|
|
557 |
|
|
|
510 |
|
|
|
1,175 |
|
|
|
770 |
|
| Sales promotion |
|
|
1,475 |
|
|
|
1,114 |
|
|
|
2,745 |
|
|
|
2,251 |
|
| Sample |
|
|
335 |
|
|
|
327 |
|
|
|
699 |
|
|
|
770 |
|
| Sales insurance premium |
|
|
1,398 |
|
|
|
1,380 |
|
|
|
2,677 |
|
|
|
2,740 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
235,649 |
|
|
|
478,845 |
|
|
|
462,806 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
36
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
26. Finance Income and Costs
Details of finance income and costs for the three-month and six-month periods ended June 30, 2015 and 2014 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
For the three-month periods
ended June 30 |
|
|
For the six-month periods
ended June 30 |
|
| (in millions of Won) |
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
| Finance income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest income |
|
W |
|
|
|
|
16,825 |
|
|
|
41,914 |
|
|
|
47,685 |
|
| Dividend income |
|
|
35,157 |
|
|
|
32,257 |
|
|
|
308,168 |
|
|
|
128,728 |
|
| Gain on foreign currency transactions |
|
|
39,714 |
|
|
|
97,704 |
|
|
|
80,811 |
|
|
|
151,090 |
|
| Gain on foreign currency translations |
|
|
11,651 |
|
|
|
109,479 |
|
|
|
23,507 |
|
|
|
118,978 |
|
| Gain on valuation of derivatives |
|
|
11,537 |
|
|
|
(15,407 |
) |
|
|
11,695 |
|
|
|
23,704 |
|
| Gain on derivative transactions |
|
|
— |
|
|
|
— |
|
|
|
67 |
|
|
|
6,102 |
|
| Gain on disposals of available-for-sale investment |
|
|
66 |
|
|
|
110,609 |
|
|
|
66 |
|
|
|
117,682 |
|
| Gain on redemption of debentures |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
351,467 |
|
|
|
466,228 |
|
|
|
595,469 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Finance costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest expenses |
|
W |
|
|
|
|
52,293 |
|
|
|
122,449 |
|
|
|
125,351 |
|
| Loss on foreign currency transactions |
|
|
38,200 |
|
|
|
38,039 |
|
|
|
76,535 |
|
|
|
92,721 |
|
| Loss on foreign currency translations |
|
|
43,574 |
|
|
|
(71,401 |
) |
|
|
60,181 |
|
|
|
13,014 |
|
| Loss on valuation of derivatives |
|
|
1,261 |
|
|
|
2,862 |
|
|
|
1,261 |
|
|
|
8,131 |
|
| Loss on derivative transactions |
|
|
— |
|
|
|
43,859 |
|
|
|
505 |
|
|
|
44,683 |
|
| Impairment loss on available-for-sale investment |
|
|
27,619 |
|
|
|
3,309 |
|
|
|
51,956 |
|
|
|
4,573 |
|
| Loss on redemption of debentures |
|
|
— |
|
|
|
19,131 |
|
|
|
— |
|
|
|
19,131 |
|
| Others |
|
|
230 |
|
|
|
164 |
|
|
|
352 |
|
|
|
541 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
88,256 |
|
|
|
313,239 |
|
|
|
308,145 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
37
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
27. Other Non-Operating Income and Expenses
Details of other non-operating income and expenses for the three-month and six-month periods ended June 30, 2015 and 2014 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
For the three-month periods
ended June 30 |
|
|
For the six-month periods
ended June 30 |
|
| (in millions of Won) |
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
| Other non-operating income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gain on disposals of property, plant and equipment |
|
W |
|
|
|
|
1,810 |
|
|
|
6,063 |
|
|
|
2,959 |
|
| Gain on disposals of intangible assets |
|
|
194 |
|
|
|
— |
|
|
|
382 |
|
|
|
— |
|
| Gain on disposals of investment in subsidiaries, associates and joint ventures |
|
|
2,046 |
|
|
|
— |
|
|
|
2,046 |
|
|
|
— |
|
| Gain on disposals of assets held for sale |
|
|
50,482 |
|
|
|
— |
|
|
|
52,165 |
|
|
|
— |
|
| Premium income |
|
|
1,761 |
|
|
|
424 |
|
|
|
6,749 |
|
|
|
459 |
|
| Others |
|
|
641 |
|
|
|
5,697 |
|
|
|
5,732 |
|
|
|
7,895 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
7,931 |
|
|
|
73,137 |
|
|
|
11,313 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other non-operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss on disposals of property, plant and equipment |
|
W |
|
|
|
|
12,100 |
|
|
|
44,238 |
|
|
|
29,769 |
|
| Impairment loss on property, plant and equipment |
|
|
45,859 |
|
|
|
— |
|
|
|
46,436 |
|
|
|
— |
|
| Loss on disposals of intangible assets |
|
|
14 |
|
|
|
37 |
|
|
|
472 |
|
|
|
37 |
|
| Other bad debt expense |
|
|
5 |
|
|
|
— |
|
|
|
6 |
|
|
|
25,704 |
|
| Donations |
|
|
6,346 |
|
|
|
9,828 |
|
|
|
20,650 |
|
|
|
28,786 |
|
| Idle tangible assets expenses |
|
|
1,282 |
|
|
|
235 |
|
|
|
4,735 |
|
|
|
473 |
|
| Impairment loss on investment in subsidiaries, associates and joint ventures |
|
|
195,604 |
|
|
|
20,319 |
|
|
|
215,676 |
|
|
|
88,048 |
|
| Loss on disposals of assets held for sale |
|
|
— |
|
|
|
— |
|
|
|
20,133 |
|
|
|
14 |
|
| Contribution to provisions |
|
|
(2,995 |
) |
|
|
69,452 |
|
|
|
2,068 |
|
|
|
69,452 |
|
| Others (*1) |
|
|
3,597 |
|
|
|
5,275 |
|
|
|
38,961 |
|
|
|
148,024 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
117,246 |
|
|
|
393,375 |
|
|
|
390,307 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
As a result of Korea National Tax Service’s periodic audit of tax payments and refunds of the Company, the Company recognized additional tax payments amounting to W139,569 million, primarily
related to VAT, for the six-month period ended June 30, 2014. |
38
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
28. Expenses by Nature
Expenses that are recorded by nature as cost of sales, selling and administrative expenses and other non-operating expenses in the statements of comprehensive
income for the three-month and six-month period ended June 30, 2015 and 2014 were as follows (excluding finance costs and income tax expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
For the three-month periods
ended June 30 |
|
|
For the six-month periods
ended June 30 |
|
| (in millions of Won) |
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
| Changes in inventories(*1) |
|
W |
|
|
|
|
27,641 |
|
|
|
198,997 |
|
|
|
(150,635 |
) |
| Raw materials and consumables used |
|
|
3,462,381 |
|
|
|
4,564,616 |
|
|
|
7,311,241 |
|
|
|
9,316,441 |
|
| Employee benefits expenses |
|
|
367,356 |
|
|
|
342,482 |
|
|
|
744,487 |
|
|
|
717,421 |
|
| Outsourced processing cost |
|
|
539,360 |
|
|
|
563,096 |
|
|
|
1,083,317 |
|
|
|
1,104,418 |
|
| Depreciation(*2) |
|
|
515,056 |
|
|
|
501,517 |
|
|
|
1,022,390 |
|
|
|
1,001,071 |
|
| Amortization |
|
|
16,682 |
|
|
|
18,948 |
|
|
|
34,005 |
|
|
|
37,463 |
|
| Electricity and water expenses |
|
|
243,718 |
|
|
|
269,269 |
|
|
|
491,112 |
|
|
|
525,798 |
|
| Service fees |
|
|
61,540 |
|
|
|
57,724 |
|
|
|
115,387 |
|
|
|
117,885 |
|
| Rental |
|
|
20,668 |
|
|
|
21,654 |
|
|
|
44,164 |
|
|
|
44,730 |
|
| Advertising |
|
|
17,967 |
|
|
|
21,396 |
|
|
|
36,016 |
|
|
|
42,312 |
|
| Freight and custody expenses |
|
|
218,895 |
|
|
|
212,706 |
|
|
|
437,900 |
|
|
|
418,781 |
|
| Sales commissions |
|
|
12,691 |
|
|
|
17,188 |
|
|
|
28,235 |
|
|
|
32,601 |
|
| Loss on disposals of property, plant and equipment |
|
|
24,878 |
|
|
|
12,100 |
|
|
|
44,238 |
|
|
|
29,769 |
|
| Impairment loss on property, plant and equipment |
|
|
45,860 |
|
|
|
— |
|
|
|
46,436 |
|
|
|
— |
|
| Impairment loss on investments in subsidiaries, associates and joint ventures |
|
|
195,604 |
|
|
|
20,319 |
|
|
|
215,676 |
|
|
|
88,048 |
|
| Contribution to provisions(Reversal of contribution to provisions) |
|
|
(2,995 |
) |
|
|
69,452 |
|
|
|
2,068 |
|
|
|
69,452 |
|
| Other expenses |
|
|
316,730 |
|
|
|
251,570 |
|
|
|
671,617 |
|
|
|
695,330 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
6,971,678 |
|
|
|
12,527,286 |
|
|
|
14,090,885 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
Changes in inventories are the changes in product, semi-finished products and by-product. |
| (*2) |
Includes depreciation of investment property. |
29. Income Taxes
The effective tax rate of the Company for the six-month periods ended June 30, 2015 and 2014 was 33.12% and 33.55%, respectively. The effective tax rate
for the six-month period ended June 30, 2015 was higher than the statutory tax rate of 24% for the Company mainly due to increase in deferred tax liability related to the Company’s investments in POSCO ENGINEERING & CONSTRUCTION.,
LTD. as a result of changes in management’s expectations on repatriation of the investment. The effective tax rate for the six-month period ended June 30, 2014 was higher than the statutory tax rate of 24% for the Company due to the effect
of additional income tax payment due to tax investigation and non-deductible expense primarily related to additional VAT payment (Note 27).
39
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
30. Earnings per Share
Basic and diluted earnings per share for the three-month and six-month periods ended June 30, 2015 and 2014 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
For the three-month periods
ended June 30 |
|
|
For the six-month periods
ended June 30 |
|
| (in Won except per share information) |
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
| Profit for the period |
|
W |
|
|
|
|
547,235,317,164 |
|
|
|
710,210,219,982 |
|
|
|
658,754,438,229 |
|
| Interests of hybrid bonds |
|
|
(8,240,301,971 |
) |
|
|
(8,240,301,971 |
) |
|
|
(16,351,402,838 |
) |
|
|
(16,351,402,838 |
) |
| Weighted-average number of common shares outstanding(*1) |
|
|
79,993,372 |
|
|
|
79,784,165 |
|
|
|
79,993,215 |
|
|
|
79,783,960 |
|
| Basic and diluted earnings per share |
|
|
2,528 |
|
|
|
6,756 |
|
|
|
8,674 |
|
|
|
8,052 |
|
| (*1) |
The weighted-average number of common shares used to calculate basic and diluted earnings per share are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
For the three-month periods
ended June 30 |
|
|
For the six-month periods
ended June 30 |
|
| (in share) |
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
| Total number of common shares issued |
|
|
87,186,835 |
|
|
|
87,186,835 |
|
|
|
87,186,835 |
|
|
|
87,186,835 |
|
| Weighted-average number of treasury shares |
|
|
(7,193,463 |
) |
|
|
(7,402,670 |
) |
|
|
(7,193,620 |
) |
|
|
(7,402,875 |
) |
| Weighted-average number of common shares outstanding |
|
|
79,993,372 |
|
|
|
79,784,165 |
|
|
|
79,993,215 |
|
|
|
79,783,960 |
|
Since there were no potential shares of common stock which had dilutive effects as of June 30, 2015, diluted earnings per
share is equal to basic earnings per share.
40
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
31. Related Party Transactions
| (a) |
Significant transactions with related companies for the six-month periods ended June 30, 2015 and 2014 were as follows: |
| |
1) |
For the six-month period ended June 30, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Sales and others(*1) |
|
|
Purchase and others(*2) |
|
| (in millions of Won) |
|
Sales |
|
|
Others |
|
|
Purchase of
material |
|
|
Purchase of
fixed assets |
|
|
Outsourced
processing cost |
|
|
others |
|
| Subsidiaries(*3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| POSCO ENGINEERING & CONSTRUCTION., LTD. |
|
W |
|
|
|
|
90 |
|
|
|
19 |
|
|
|
291,361 |
|
|
|
1,822 |
|
|
|
29,336 |
|
| POSCO Processing & Service |
|
|
534,281 |
|
|
|
— |
|
|
|
246,883 |
|
|
|
— |
|
|
|
— |
|
|
|
1,632 |
|
| POSCO COATED & COLOR STEEL Co., Ltd. |
|
|
198,400 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,698 |
|
|
|
54 |
|
| POSCO ICT(*4) |
|
|
680 |
|
|
|
4 |
|
|
|
— |
|
|
|
84,512 |
|
|
|
14,669 |
|
|
|
88,429 |
|
| eNtoB Corporation |
|
|
— |
|
|
|
— |
|
|
|
146,452 |
|
|
|
2,396 |
|
|
|
53 |
|
|
|
10,464 |
|
| POSCO CHEMTECH |
|
|
245,830 |
|
|
|
17,633 |
|
|
|
259,499 |
|
|
|
6,182 |
|
|
|
150,021 |
|
|
|
499 |
|
| POSCO ENERGY CO., LTD. |
|
|
96,177 |
|
|
|
615 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
13 |
|
| POSCO TMC Co., Ltd. |
|
|
123,016 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
666 |
|
|
|
634 |
|
| POSCO AST |
|
|
199,145 |
|
|
|
3 |
|
|
|
4,115 |
|
|
|
— |
|
|
|
19,271 |
|
|
|
109 |
|
| POSHIMETAL Co., Ltd. |
|
|
6,517 |
|
|
|
75 |
|
|
|
82,124 |
|
|
|
— |
|
|
|
— |
|
|
|
33 |
|
| Daewoo International Corporation |
|
|
1,782,130 |
|
|
|
34,341 |
|
|
|
26,749 |
|
|
|
— |
|
|
|
— |
|
|
|
769 |
|
| SeAH Changwon Intergrated Special Steel (formerly, POSCO Specialty Steel Co., Ltd.)(*5) |
|
|
2,811 |
|
|
|
176,904 |
|
|
|
8,239 |
|
|
|
— |
|
|
|
515 |
|
|
|
75 |
|
| POSCO PLANTEC CO., LTD |
|
|
3,981 |
|
|
|
25 |
|
|
|
1,735 |
|
|
|
64,492 |
|
|
|
10,460 |
|
|
|
10,922 |
|
| POSCO Thainox Public Company Limited |
|
|
139,818 |
|
|
|
10 |
|
|
|
3,300 |
|
|
|
— |
|
|
|
— |
|
|
|
25 |
|
| PT. KRAKATAU POSCO |
|
|
— |
|
|
|
— |
|
|
|
115,557 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO America Corporation |
|
|
336,072 |
|
|
|
7 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
85 |
|
| POSCO Canada Ltd. |
|
|
— |
|
|
|
— |
|
|
|
64,024 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO Asia Co., Ltd. |
|
|
921,709 |
|
|
|
579 |
|
|
|
125,255 |
|
|
|
— |
|
|
|
95 |
|
|
|
237 |
|
| Qingdao Pohang Stainless Steel Co., Ltd. |
|
|
80,851 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
46 |
|
| POSCO JAPAN Co., Ltd. |
|
|
507,507 |
|
|
|
9,383 |
|
|
|
11,934 |
|
|
|
1,674 |
|
|
|
— |
|
|
|
519 |
|
| POSCO MEXICO S.A. DE C.V. |
|
|
132,429 |
|
|
|
153 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO Maharashtra Steel Private Limited |
|
|
207,938 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Others |
|
|
462,894 |
|
|
|
10,125 |
|
|
|
120,512 |
|
|
|
45,174 |
|
|
|
106,843 |
|
|
|
46,262 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,984,213 |
|
|
|
249,947 |
|
|
|
1,216,397 |
|
|
|
495,791 |
|
|
|
310,113 |
|
|
|
190,143 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Associates and joint ventures(* 3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| SeAH Changwon Intergrated Special Steel (formerly, POSCO Specialty Steel Co., Ltd.)(*5) |
|
|
1,653 |
|
|
|
— |
|
|
|
2,672 |
|
|
|
— |
|
|
|
229 |
|
|
|
1 |
|
| SNNC |
|
|
1,205 |
|
|
|
283 |
|
|
|
212,142 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| CSP - Compania Siderurgica do Pecem(*6) |
|
|
3,358 |
|
|
|
537 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Others |
|
|
19,541 |
|
|
|
30,862 |
|
|
|
28,295 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
25,757 |
|
|
|
31,682 |
|
|
|
243,109 |
|
|
|
— |
|
|
|
229 |
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
281,629 |
|
|
|
1,459,506 |
|
|
|
495,791 |
|
|
|
310,342 |
|
|
|
190,144 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
Sales and others are mainly consist of sales of steel products to subsidiaries, associates and joint ventures. These are priced on an arm’s length basis. |
| (*2) |
Purchases and others are mainly consist of subsidiaries’ purchases of construction services and purchases of raw materials to manufacture steel products. These are priced on an arm’s length basis.
|
| (*3) |
As of June 30, 2015, the Company provided guarantees to related parties (Note 20). |
| (*4) |
Others (purchase) mainly consist of service fees related to maintenance and repair of ERP System. |
| (*5) |
It is reclassified from subsidiary to associate (Note 10). |
| (*6) |
It borrowed loans of W67,664 million from the Company during the six-month period ended June 30, 2015. |
41
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
| |
2) |
For the six-month period ended June 30, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Sales and others |
|
|
Purchase and others |
|
| (in millions of Won) |
|
Sales |
|
|
Others |
|
|
Purchase of
material |
|
|
Purchase of
fixed assets |
|
|
Outsourced
processing cost |
|
|
others |
|
| Subsidiaries |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| POSCO ENGINEERING & CONSTRUCTION., LTD. |
|
W |
|
|
|
|
16,674 |
|
|
|
— |
|
|
|
590,485 |
|
|
|
3,260 |
|
|
|
12,519 |
|
| POSCO Processing & Service |
|
|
518,057 |
|
|
|
8,578 |
|
|
|
473,808 |
|
|
|
— |
|
|
|
— |
|
|
|
261 |
|
| POSCO COATED & COLOR STEEL Co., Ltd. |
|
|
228,638 |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
5,270 |
|
|
|
66 |
|
| POSCO ICT |
|
|
607 |
|
|
|
2,490 |
|
|
|
— |
|
|
|
98,062 |
|
|
|
12,685 |
|
|
|
79,974 |
|
| eNtoB Corporation |
|
|
— |
|
|
|
— |
|
|
|
122,887 |
|
|
|
1,679 |
|
|
|
35 |
|
|
|
9,064 |
|
| POSCO CHEMTECH |
|
|
267,799 |
|
|
|
15,434 |
|
|
|
252,731 |
|
|
|
2,748 |
|
|
|
152,698 |
|
|
|
557 |
|
| POSCO M-TECH |
|
|
95 |
|
|
|
16 |
|
|
|
63,612 |
|
|
|
890 |
|
|
|
101,477 |
|
|
|
4,511 |
|
| POSCO ENERGY CO., LTD. |
|
|
84,605 |
|
|
|
598 |
|
|
|
— |
|
|
|
2,263 |
|
|
|
— |
|
|
|
20 |
|
| POSCO TMC Co., Ltd. |
|
|
115,404 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
528 |
|
|
|
764 |
|
| POSCO AST |
|
|
266,677 |
|
|
|
— |
|
|
|
4,836 |
|
|
|
— |
|
|
|
32,579 |
|
|
|
851 |
|
| POSHIMETAL Co., Ltd. |
|
|
5,267 |
|
|
|
2,313 |
|
|
|
80,988 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Daewoo International Corporation |
|
|
1,707,132 |
|
|
|
20,605 |
|
|
|
70,065 |
|
|
|
— |
|
|
|
— |
|
|
|
1,656 |
|
| POSCO America Corporation |
|
|
362,592 |
|
|
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
179 |
|
| POSCO Canada Ltd. |
|
|
— |
|
|
|
— |
|
|
|
82,489 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO Asia Co., Ltd. |
|
|
1,010,153 |
|
|
|
53 |
|
|
|
96,937 |
|
|
|
— |
|
|
|
8,881 |
|
|
|
668 |
|
| Qingdao Pohang Stainless Steel Co., Ltd. |
|
|
34,895 |
|
|
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO JAPAN Co., Ltd. |
|
|
719,380 |
|
|
|
— |
|
|
|
6,362 |
|
|
|
459 |
|
|
|
3 |
|
|
|
447 |
|
| POSCO MEXICO S.A. DE C.V. |
|
|
136,055 |
|
|
|
775 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO Maharashtra Steel Private Limited |
|
|
111,783 |
|
|
|
581 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Others |
|
|
463,482 |
|
|
|
8,618 |
|
|
|
110,652 |
|
|
|
25,678 |
|
|
|
16,971 |
|
|
|
58,292 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,039,252 |
|
|
|
76,740 |
|
|
|
1,365,367 |
|
|
|
722,264 |
|
|
|
334,387 |
|
|
|
169,829 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Associates and joint ventures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| SNNC |
|
|
2,043 |
|
|
|
5,273 |
|
|
|
163,758 |
|
|
|
— |
|
|
|
— |
|
|
|
5 |
|
| POSCO PLANTEC CO., LTD |
|
|
8,400 |
|
|
|
24 |
|
|
|
1,500 |
|
|
|
37,355 |
|
|
|
6,347 |
|
|
|
2,658 |
|
| Others(*1) |
|
|
14,138 |
|
|
|
29,466 |
|
|
|
32,599 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
24,581 |
|
|
|
34,763 |
|
|
|
197,857 |
|
|
|
37,355 |
|
|
|
6,347 |
|
|
|
2,663 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
111,503 |
|
|
|
1,563,224 |
|
|
|
759,619 |
|
|
|
340,734 |
|
|
|
172,492 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
The Company collected loans of W158 million from LLP POSUK Titanium during the six-month period ended June, 30, 2014. |
42
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
| (b) |
Significant transactions with related companies for the three-month periods ended June 30, 2015 and 2014 were as follows: |
| |
1) |
For the three-month period ended June 30, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Sales and others |
|
|
Purchase and others |
|
| (in millions of Won) |
|
Sales |
|
|
Others |
|
|
Purchase of
material |
|
|
Purchase of
fixed assets |
|
|
Outsourced
processing cost |
|
|
others |
|
| Subsidiaries |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| POSCO ENGINEERING & CONSTRUCTION., LTD. |
|
W |
|
|
|
|
26 |
|
|
|
— |
|
|
|
133,824 |
|
|
|
536 |
|
|
|
7,331 |
|
| POSCO Processing & Service |
|
|
254,405 |
|
|
|
— |
|
|
|
102,440 |
|
|
|
— |
|
|
|
— |
|
|
|
325 |
|
| POSCO COATED & COLOR STEEL Co., Ltd. |
|
|
96,959 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,431 |
|
|
|
30 |
|
| POSCO ICT |
|
|
386 |
|
|
|
— |
|
|
|
— |
|
|
|
49,262 |
|
|
|
7,234 |
|
|
|
43,976 |
|
| eNtoB Corporation |
|
|
— |
|
|
|
— |
|
|
|
68,462 |
|
|
|
1,869 |
|
|
|
27 |
|
|
|
4,914 |
|
| POSCO CHEMTECH |
|
|
117,465 |
|
|
|
5,833 |
|
|
|
126,055 |
|
|
|
4,449 |
|
|
|
75,237 |
|
|
|
127 |
|
| POSCO ENERGY CO., LTD. |
|
|
48,575 |
|
|
|
313 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO TMC Co., Ltd. |
|
|
68,482 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
407 |
|
|
|
355 |
|
| POSCO AST |
|
|
94,030 |
|
|
|
— |
|
|
|
1,340 |
|
|
|
— |
|
|
|
10,399 |
|
|
|
74 |
|
| POSHIMETAL Co., Ltd. |
|
|
3,346 |
|
|
|
41 |
|
|
|
44,991 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Daewoo International Corporation |
|
|
884,194 |
|
|
|
6 |
|
|
|
15,036 |
|
|
|
— |
|
|
|
— |
|
|
|
769 |
|
| POSCO PLANTEC CO., LTD |
|
|
1,608 |
|
|
|
7 |
|
|
|
857 |
|
|
|
36,665 |
|
|
|
4,834 |
|
|
|
5,267 |
|
| POSCO Thainox Public Company Limited |
|
|
67,861 |
|
|
|
— |
|
|
|
1,431 |
|
|
|
— |
|
|
|
— |
|
|
|
25 |
|
| PT. KRAKATAU POSCO |
|
|
— |
|
|
|
— |
|
|
|
31,921 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO America Corporation |
|
|
160,145 |
|
|
|
7 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
49 |
|
| POSCO Canada Ltd. |
|
|
— |
|
|
|
— |
|
|
|
31,027 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO Asia Co., Ltd. |
|
|
456,563 |
|
|
|
579 |
|
|
|
74,436 |
|
|
|
— |
|
|
|
95 |
|
|
|
145 |
|
| Qingdao Pohang Stainless Steel Co., Ltd. |
|
|
44,122 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
46 |
|
| POSCO JAPAN Co., Ltd. |
|
|
241,267 |
|
|
|
— |
|
|
|
6,711 |
|
|
|
717 |
|
|
|
— |
|
|
|
250 |
|
| POSCO MEXICO S.A. DE C.V. |
|
|
54,686 |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO Maharashtra Steel Private Limited |
|
|
105,543 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Others |
|
|
235,743 |
|
|
|
4,782 |
|
|
|
58,141 |
|
|
|
19,975 |
|
|
|
53,429 |
|
|
|
22,481 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,936,482 |
|
|
|
11,595 |
|
|
|
562,848 |
|
|
|
246,761 |
|
|
|
154,629 |
|
|
|
86,164 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Associates and joint ventures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| SeAH Changwon Intergrated Special Steel (formerly, POSCO Specialty Steel Co., Ltd.) |
|
|
1,653 |
|
|
|
— |
|
|
|
2,672 |
|
|
|
— |
|
|
|
229 |
|
|
|
1 |
|
| SNNC |
|
|
567 |
|
|
|
77 |
|
|
|
114,966 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| CSP - Compania Siderurgica do Pecem |
|
|
— |
|
|
|
537 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Others |
|
|
11,112 |
|
|
|
24,433 |
|
|
|
13,982 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13,332 |
|
|
|
25,047 |
|
|
|
131,620 |
|
|
|
— |
|
|
|
229 |
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
36,642 |
|
|
|
694,468 |
|
|
|
246,761 |
|
|
|
154,858 |
|
|
|
86,165 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
43
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
| |
2) |
For the three-month period ended June 30, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Sales and others |
|
|
Purchase and others |
|
| (in millions of Won) |
|
Sales |
|
|
Others |
|
|
Purchase of
material |
|
|
Purchase of
fixed assets |
|
|
Outsourced
processing cost |
|
|
others |
|
| Subsidiaries |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| POSCO ENGINEERING & CONSTRUCTION., LTD. |
|
W |
|
|
|
|
91 |
|
|
|
— |
|
|
|
162,999 |
|
|
|
1,170 |
|
|
|
1,547 |
|
| POSCO Processing & Service |
|
|
262,753 |
|
|
|
— |
|
|
|
213,359 |
|
|
|
— |
|
|
|
— |
|
|
|
155 |
|
| POSCO COATED & COLOR STEEL Co., Ltd. |
|
|
105,886 |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
2,841 |
|
|
|
36 |
|
| POSCO ICT |
|
|
380 |
|
|
|
2,486 |
|
|
|
— |
|
|
|
22,978 |
|
|
|
6,420 |
|
|
|
42,509 |
|
| eNtoB Corporation |
|
|
— |
|
|
|
— |
|
|
|
64,674 |
|
|
|
1,019 |
|
|
|
22 |
|
|
|
3,814 |
|
| POSCO CHEMTECH |
|
|
138,227 |
|
|
|
10,493 |
|
|
|
120,529 |
|
|
|
1,298 |
|
|
|
76,782 |
|
|
|
171 |
|
| POSCO M-TECH |
|
|
75 |
|
|
|
16 |
|
|
|
26,642 |
|
|
|
397 |
|
|
|
51,051 |
|
|
|
4,455 |
|
| POSCO ENERGY CO., LTD. |
|
|
48,472 |
|
|
|
299 |
|
|
|
— |
|
|
|
671 |
|
|
|
— |
|
|
|
— |
|
| POSCO TMC Co., Ltd. |
|
|
65,517 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
251 |
|
|
|
343 |
|
| POSCO AST |
|
|
134,277 |
|
|
|
— |
|
|
|
3,114 |
|
|
|
— |
|
|
|
17,681 |
|
|
|
601 |
|
| POSHIMETAL Co., Ltd. |
|
|
2,258 |
|
|
|
1,128 |
|
|
|
40,541 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Daewoo International Corporation |
|
|
816,532 |
|
|
|
1 |
|
|
|
22,988 |
|
|
|
— |
|
|
|
— |
|
|
|
104 |
|
| POSCO America Corporation |
|
|
192,983 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
174 |
|
| POSCO Canada Ltd. |
|
|
— |
|
|
|
— |
|
|
|
35,119 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO Asia Co., Ltd. |
|
|
495,611 |
|
|
|
30 |
|
|
|
56,743 |
|
|
|
— |
|
|
|
7,502 |
|
|
|
589 |
|
| Qingdao Pohang Stainless Steel Co., Ltd. |
|
|
20,811 |
|
|
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO JAPAN Co., Ltd. |
|
|
358,272 |
|
|
|
— |
|
|
|
4,087 |
|
|
|
459 |
|
|
|
3 |
|
|
|
250 |
|
| POSCO MEXICO S.A. DE C.V. |
|
|
74,931 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO Maharashtra Steel Private Limited |
|
|
47,316 |
|
|
|
367 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Others |
|
|
224,810 |
|
|
|
8,421 |
|
|
|
56,717 |
|
|
|
21,109 |
|
|
|
7,733 |
|
|
|
35,151 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,994,237 |
|
|
|
23,335 |
|
|
|
644,513 |
|
|
|
210,930 |
|
|
|
171,456 |
|
|
|
89,899 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Associates and joint ventures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| SNNC |
|
|
1,480 |
|
|
|
5,210 |
|
|
|
75,512 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO PLANTEC CO., LTD |
|
|
5,580 |
|
|
|
6 |
|
|
|
928 |
|
|
|
23,972 |
|
|
|
3,387 |
|
|
|
1,944 |
|
| Others(*1) |
|
|
7,959 |
|
|
|
29,465 |
|
|
|
15,986 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15,019 |
|
|
|
34,681 |
|
|
|
92,426 |
|
|
|
23,972 |
|
|
|
3,387 |
|
|
|
1,944 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
58,016 |
|
|
|
736,939 |
|
|
|
234,902 |
|
|
|
174,843 |
|
|
|
91,843 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
The Company collected loans of W210 million from LLP POSUK Titanium during the three-month period ended June, 30, 2014. |
44
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
| (c) |
The related account balances of significant transactions with related companies as of June 30, 2015 and December 31, 2014 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Receivables |
|
|
Payables |
|
| (in millions of Won) |
|
Trade accounts
andnote
receivable |
|
|
Others |
|
|
Total |
|
|
Trade accounts
and note payable |
|
|
Accounts payable |
|
|
Others |
|
|
Total |
|
| Subsidiaries |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| POSCO ENGINEERING & CONSTRUCTION., LTD. |
|
W |
|
|
|
|
40,205 |
|
|
|
40,299 |
|
|
|
— |
|
|
|
23,345 |
|
|
|
720 |
|
|
|
24,065 |
|
| POSCO Processing & Service |
|
|
78,867 |
|
|
|
84 |
|
|
|
78,951 |
|
|
|
4,309 |
|
|
|
89 |
|
|
|
— |
|
|
|
4,398 |
|
| POSCO COATED & COLOR STEEL Co., Ltd. |
|
|
79,538 |
|
|
|
32 |
|
|
|
79,570 |
|
|
|
— |
|
|
|
5 |
|
|
|
1,220 |
|
|
|
1,225 |
|
| POSCO ICT |
|
|
— |
|
|
|
44 |
|
|
|
44 |
|
|
|
914 |
|
|
|
56,216 |
|
|
|
2,581 |
|
|
|
59,711 |
|
| eNtoB Corporation |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8,737 |
|
|
|
12,961 |
|
|
|
13 |
|
|
|
21,711 |
|
| POSCO CHEMTECH |
|
|
41,814 |
|
|
|
5,008 |
|
|
|
46,822 |
|
|
|
57,395 |
|
|
|
12,127 |
|
|
|
19,338 |
|
|
|
88,860 |
|
| POSCO ENERGY CO., LTD. |
|
|
18,286 |
|
|
|
1,338 |
|
|
|
19,624 |
|
|
|
— |
|
|
|
— |
|
|
|
1,945 |
|
|
|
1,945 |
|
| POSCO TMC Co., Ltd. |
|
|
66,357 |
|
|
|
15 |
|
|
|
66,372 |
|
|
|
— |
|
|
|
10 |
|
|
|
215 |
|
|
|
225 |
|
| POSCO AST |
|
|
60,773 |
|
|
|
27 |
|
|
|
60,800 |
|
|
|
— |
|
|
|
2,449 |
|
|
|
3,855 |
|
|
|
6,304 |
|
| POSHIMETAL Co., Ltd. |
|
|
— |
|
|
|
2,484 |
|
|
|
2,484 |
|
|
|
— |
|
|
|
16,427 |
|
|
|
— |
|
|
|
16,427 |
|
| Daewoo International Corporation |
|
|
151,078 |
|
|
|
1,068 |
|
|
|
152,146 |
|
|
|
6,514 |
|
|
|
— |
|
|
|
— |
|
|
|
6,514 |
|
| POSCO PLANTEC CO.,LTD |
|
|
1,636 |
|
|
|
8 |
|
|
|
1,644 |
|
|
|
2,217 |
|
|
|
20,106 |
|
|
|
12 |
|
|
|
22,335 |
|
| POSCO Thainox Public Company Limited |
|
|
67,860 |
|
|
|
— |
|
|
|
67,860 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO America Corporation |
|
|
46,449 |
|
|
|
— |
|
|
|
46,449 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO Asia Co., Ltd. |
|
|
149,247 |
|
|
|
593 |
|
|
|
149,840 |
|
|
|
24,274 |
|
|
|
39 |
|
|
|
— |
|
|
|
24,313 |
|
| Qingdao Pohang Stainless Steel Co., Ltd. |
|
|
30,423 |
|
|
|
— |
|
|
|
30,423 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO MEXICO S.A. DE C.V. |
|
|
79,684 |
|
|
|
31 |
|
|
|
79,715 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO Maharashtra Steel Private Limited |
|
|
298,469 |
|
|
|
958 |
|
|
|
299,427 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Others |
|
|
152,820 |
|
|
|
3,328 |
|
|
|
156,148 |
|
|
|
10,963 |
|
|
|
25,260 |
|
|
|
26,291 |
|
|
|
62,514 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,323,395 |
|
|
|
55,223 |
|
|
|
1,378,618 |
|
|
|
115,323 |
|
|
|
169,034 |
|
|
|
56,190 |
|
|
|
340,547 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Associates and joint ventures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| SeAH Changwon Intergrated Special Steel (formerly, POSCO Specialty Steel Co., Ltd.) |
|
|
1,326 |
|
|
|
— |
|
|
|
1,326 |
|
|
|
1,074 |
|
|
|
21 |
|
|
|
2 |
|
|
|
1,097 |
|
| SNNC |
|
|
222 |
|
|
|
35 |
|
|
|
257 |
|
|
|
30,822 |
|
|
|
— |
|
|
|
— |
|
|
|
30,822 |
|
| CSP - Compania Siderurgica do Pecem(*1) |
|
|
— |
|
|
|
71,354 |
|
|
|
71,354 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Others |
|
|
337 |
|
|
|
12,202 |
|
|
|
12,539 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,885 |
|
|
|
83,591 |
|
|
|
85,476 |
|
|
|
31,896 |
|
|
|
21 |
|
|
|
2 |
|
|
|
31,919 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
138,814 |
|
|
|
1,464,094 |
|
|
|
147,219 |
|
|
|
169,055 |
|
|
|
56,192 |
|
|
|
372,466 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
Others include loans of W67,664 million. |
45
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Receivables |
|
|
Payables |
|
| (in millions of Won) |
|
Trade accounts
and
note receivable |
|
|
Others |
|
|
Total |
|
|
Trade accounts
and note payable |
|
|
Accounts payable |
|
|
Others |
|
|
Total |
|
| Subsidiaries |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| POSCO ENGINEERING & CONSTRUCTION., LTD. |
|
W |
|
|
|
|
71,967 |
|
|
|
72,009 |
|
|
|
— |
|
|
|
41,878 |
|
|
|
— |
|
|
|
41,878 |
|
| POSCO Processing&Service |
|
|
94,790 |
|
|
|
92 |
|
|
|
94,882 |
|
|
|
15,202 |
|
|
|
867 |
|
|
|
— |
|
|
|
16,069 |
|
| POSCO COATED & COLOR STEEL Co., Ltd. |
|
|
69,314 |
|
|
|
67 |
|
|
|
69,381 |
|
|
|
— |
|
|
|
5 |
|
|
|
1,936 |
|
|
|
1,941 |
|
| POSCO ICT |
|
|
13 |
|
|
|
103 |
|
|
|
116 |
|
|
|
920 |
|
|
|
70,823 |
|
|
|
5,425 |
|
|
|
77,168 |
|
| eNtoB Corporation |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
12,564 |
|
|
|
28,432 |
|
|
|
43 |
|
|
|
41,039 |
|
| POSCO CHEMTECH |
|
|
49,456 |
|
|
|
4,283 |
|
|
|
53,739 |
|
|
|
57,610 |
|
|
|
9,890 |
|
|
|
17,864 |
|
|
|
85,364 |
|
| POSCO ENERGY CO., LTD. |
|
|
17,326 |
|
|
|
2,809 |
|
|
|
20,135 |
|
|
|
— |
|
|
|
— |
|
|
|
1,962 |
|
|
|
1,962 |
|
| POSCO TMC Co., Ltd. |
|
|
27,429 |
|
|
|
30 |
|
|
|
27,459 |
|
|
|
— |
|
|
|
117 |
|
|
|
115 |
|
|
|
232 |
|
| POSCO AST |
|
|
44,281 |
|
|
|
54 |
|
|
|
44,335 |
|
|
|
— |
|
|
|
2,458 |
|
|
|
3,364 |
|
|
|
5,822 |
|
| POSHIMETAL Co., Ltd. |
|
|
1,269 |
|
|
|
14 |
|
|
|
1,283 |
|
|
|
— |
|
|
|
12,846 |
|
|
|
— |
|
|
|
12,846 |
|
| Daewoo International Corporation |
|
|
164,029 |
|
|
|
3,178 |
|
|
|
167,207 |
|
|
|
8 |
|
|
|
210 |
|
|
|
1 |
|
|
|
219 |
|
| SeAH Changwon Intergrated Special Steel (formerly, POSCO Specialty Steel Co., Ltd.) |
|
|
822 |
|
|
|
201,823 |
|
|
|
202,645 |
|
|
|
4,800 |
|
|
|
140 |
|
|
|
184 |
|
|
|
5,124 |
|
| POSCO America Corporation |
|
|
57,164 |
|
|
|
— |
|
|
|
57,164 |
|
|
|
— |
|
|
|
1,511 |
|
|
|
— |
|
|
|
1,511 |
|
| POSCO Canada Ltd. |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,534 |
|
|
|
— |
|
|
|
4,534 |
|
| POSCO Asia Co., Ltd. |
|
|
197,104 |
|
|
|
221 |
|
|
|
197,325 |
|
|
|
10,995 |
|
|
|
— |
|
|
|
— |
|
|
|
10,995 |
|
| Qingdao Pohang Stainless Steel Co., Ltd. |
|
|
14,748 |
|
|
|
41 |
|
|
|
14,789 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO JAPAN Co., Ltd. |
|
|
42,692 |
|
|
|
89 |
|
|
|
42,781 |
|
|
|
344 |
|
|
|
1,552 |
|
|
|
— |
|
|
|
1,896 |
|
| POSCO MEXICO S.A. DE C.V. |
|
|
96,800 |
|
|
|
— |
|
|
|
96,800 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO Maharashtra Steel Private Limited |
|
|
364,899 |
|
|
|
7,714 |
|
|
|
372,613 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Others |
|
|
140,282 |
|
|
|
58,769 |
|
|
|
199,051 |
|
|
|
15,150 |
|
|
|
68,965 |
|
|
|
29,076 |
|
|
|
113,191 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,382,460 |
|
|
|
351,254 |
|
|
|
1,733,714 |
|
|
|
117,593 |
|
|
|
244,228 |
|
|
|
59,970 |
|
|
|
421,791 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Associates and joint ventures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| SNNC |
|
|
219 |
|
|
|
125 |
|
|
|
344 |
|
|
|
7,017 |
|
|
|
— |
|
|
|
— |
|
|
|
7,017 |
|
| LLP POSUK Titanium(*1) |
|
|
— |
|
|
|
4,235 |
|
|
|
4,235 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Others |
|
|
258 |
|
|
|
18 |
|
|
|
276 |
|
|
|
1,396 |
|
|
|
— |
|
|
|
— |
|
|
|
1,396 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
477 |
|
|
|
4,378 |
|
|
|
4,855 |
|
|
|
8,413 |
|
|
|
— |
|
|
|
— |
|
|
|
8,413 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
355,632 |
|
|
|
1,738,569 |
|
|
|
126,006 |
|
|
|
244,228 |
|
|
|
59,970 |
|
|
|
430,204 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
Others include loans of W4,235 million. |
| (d) |
For the six-month periods ended June 30, 2015 and 2014 details of compensation to key management officers were as follows: |
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
June 30, 2015 |
|
|
June 30, 2014 |
|
| Short-term benefits |
|
W |
|
|
|
|
15,982 |
|
| Long-term benefits |
|
|
5,966 |
|
|
|
6,137 |
|
| Retirement benefits |
|
|
7,407 |
|
|
|
4,419 |
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
26,538 |
|
|
|
|
|
|
|
|
|
|
Key management officers include directors (including non-standing directors), executive officials and fellow officials who
have significant influence and responsibilities in the Company’s business and operations.
46
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
32. Commitments and Contingencies
The Company entered into long-term contracts to purchase iron ore, coal, nickel
and others. The contracts of iron ore and coal generally have terms of more than three years and the contracts of nickel have terms of more than one year. These contracts provide for periodic price adjustments based on the market price. As of
June 30, 2015, 79 million tons of iron ore and 28 million tons of coal remained to be purchased under such long-term contracts.
The Company entered into an agreement with Tangguh Liquefied Natural Gas (LNG) Consortium in Indonesia to purchase 550 thousand tons of
LNG annually for 20 years commencing in August 2005. The purchase price is subject to change, based on changes of the monthly standard oil price (JCC) and with a price ceiling.
As of June 30, 2015, the Company entered into commitments with Korea National Oil Corporation for long-term foreign currency borrowings,
which enables the Company to borrow up to the amount of USD 12.01 million, USD 8.25 million and USD 6.49 million. The borrowings are related to the Company’s exploration of gas hydrates in Aral Sea, Uzbekistan, the exploration of gas
hydrates in Namangan-Chust and the exploration of gas hydrates in Western Fergana-Chenavard, respectively. The repayment of the borrowings depends on the success of the projects. The Company is not liable for the repayment of full or part of the
money borrowed if the respective projects fail. The Company has agreed to pay a certain portion of its profits under certain conditions, as defined by the borrowing agreements. As of June 30, 2015, the borrowings related to the commitments
amount to USD 12.88 million.
| (b) |
As of June 30, 2015, the Company has provided two blank checks to Korea Resources Corporation as collateral for long-term domestic borrowings, and has provided six blank promissory notes and three blank checks to
Korea National Oil Corporation as collateral for long-term foreign currency borrowings. |
| (c) |
Litigation in progress |
| |
1) |
Civil lawsuits with Nippon Steel & Sumitomo Metal Corporation |
During the April, 2012,
Nippon Steel & Sumitomo Metal Corporation filed a civil lawsuit in the Tokyo District Court of Japan against POSCO and POSCO Japan Co., Ltd., a subsidiary of POSCO, to prohibit production and sales of grain oriented electrical steel sheets
using improperly acquired trade secrets and seeking compensation from the Company of W904.3 billion. Through preparatory procedures up to June 30, 2015, the Company asserts that this lawsuit should be judged by Korean law and
the production secrets of grain oriented electrical steel sheets were publicly available which should not be regarded as trade secrets. Also, the Company asserts that the related facts occurred a long time ago, resulting in expiration of the claims
to seek any compensation due to the statute of limitation. As of June 30, 2015, the Japan court has not made any judgments on this matter. Since the Company does not believe that it has any present obligation, the Company has not recorded any
provision for this lawsuit as of June 30, 2015.
| |
2) |
Other lawsuits and claims |
The Company is involved in 44 other lawsuits and claims for alleged
damages aggregating to W121 billion as of June 30, 2015 which arose in the ordinary course of business. The Company has recognized provisions amounting to W0.4 billion for 1 lawsuit based on its reliable
47
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of June 30, 2015
(Unaudited)
estimate of outflow of resources. However, the Company has not recognized any provisions for other 43 lawsuits and claims since the Company believes that it does not have a present obligation as
of June 30, 2015.
| (d) |
The Company has provided a supplemental funding agreement, as the largest shareholder, as requested from the creditors, including Norddeutsche Landesbank, for seamless funding to the construction of new power plant by
POSCO Energy Co., Ltd. |
33. Cash Flows from Operating Activities
Changes in operating assets and liabilities for the six-month period ended June 30, 2015 and 2014 were as follows:
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
June 30, 2015 |
|
|
June 30, 2014 |
|
| Trade accounts and notes receivable, net |
|
W |
|
|
|
|
331,687 |
|
| Other accounts receivable |
|
|
181,689 |
|
|
|
(17,661 |
) |
| Advance payments |
|
|
(6,954 |
) |
|
|
(14 |
) |
| Prepaid expenses |
|
|
19,005 |
|
|
|
(9,271 |
) |
| Inventories |
|
|
430,348 |
|
|
|
(504,422 |
) |
| Long-term guarantee deposits |
|
|
(164 |
) |
|
|
(173 |
) |
| Other long-term assets |
|
|
(14 |
) |
|
|
— |
|
| Trade accounts payable and notes payable |
|
|
(44,508 |
) |
|
|
269,796 |
|
| Other accounts payable |
|
|
(160,419 |
) |
|
|
(113,353 |
) |
| Accrued expenses |
|
|
(18,581 |
) |
|
|
105,486 |
|
| Advances received |
|
|
(6,157 |
) |
|
|
(11,691 |
) |
| Withholdings |
|
|
3,737 |
|
|
|
2,318 |
|
| Unearned revenue |
|
|
39 |
|
|
|
(125 |
) |
| Other short-term liabilities |
|
|
(30,635 |
) |
|
|
(1,306 |
) |
| Derivatives Liabilities |
|
|
— |
|
|
|
(6,611 |
) |
| Payment severance benefits |
|
|
(54,947 |
) |
|
|
(49,719 |
) |
| Plan assets |
|
|
23,788 |
|
|
|
(49,014 |
) |
| Other long-term liabilities |
|
|
— |
|
|
|
(3,000 |
) |
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
(57,073 |
) |
|
|
|
|
|
|
|
|
|
48
POSCO (NYSE:PKX)
Historical Stock Chart
From Mar 2024 to Apr 2024
POSCO (NYSE:PKX)
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From Apr 2023 to Apr 2024
