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 November, 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 Quarterly 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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November 30, 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
QUARTERLY REPORT
(From January 1, 2015 to September 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.
QUARTERLYREPORT
(From January 1, 2015 to September 30, 2015)
| To: |
Korean Financial Services Commission and Korea Exchange |
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| /s/ |
| 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 |
| 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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| (1) |
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Production and sale of crude steel and stainless steel products |
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No engagement in this business during the third quarter of fiscal year 2015 |
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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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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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| (6) |
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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) |
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Other businesses incidental or related, directly or indirectly, to the foregoing businesses |
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B. POSCO Business Group
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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.,, 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
4
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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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Exclusion of a Subsidiary: Daechang AT Co., Ltd. (July 16, 2015) |
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(b) |
Changes after September 30, 2015 |
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Exclusion of a Subsidiary: POREKA Co., Ltd. (October 21, 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) |
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 five overseas offices as follows: |
United Arab Emirates (Dubai), European Union (Dusseldorf, Germany),
Brazil (Rio de Janeiro), 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)
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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 September 30, 2015) |
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| Authorized Shares |
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Outstanding Shares |
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| 200,000,000 |
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87,186,835 |
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The currency of the Republic of Korea is Korean Won (“KRW”). |
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Par Value: KRW 5,000 per share |
B. Treasury Stock Holding and Cancellation
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| (As of September 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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640 |
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— |
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7,193,167 |
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| Special Money Trust |
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— |
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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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640 |
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7,193,167 |
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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. 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.
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Changes after September 30, 2015
On October 19, 2015, the Executive Management Committee resolved
its plan to dispose the treasury stocks and the actual disposal of 1,980 treasury stocks was completed on October 20, 2015.
5. Voting Rights
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| (As of September 30, 2015) |
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| Classification of Shares |
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Number of Shares |
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Remarks |
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| (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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7,193,167 |
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*Treasury Stock 7,193,167 shares |
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79,993,668 |
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6. Earnings and Dividend
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2015 3Q
(January 1, 2015
~ September 30, 2015) |
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2014 |
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2013 |
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| (Consolidated) Net Profit |
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(4,864 |
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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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(370 |
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7,432 |
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17,409 |
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| Cash Dividend Paid |
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159,987 |
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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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2,000 |
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8,000 |
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8,000 |
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| Dividend Yield (%) |
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0.9 |
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2.8 |
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2.4 |
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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 3Q
(January 1, 2015 ~
September 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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21,677,404 |
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1,604,824 |
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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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14,080,237 |
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178,809 |
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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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6,234,409 |
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167,246 |
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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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2,294,345 |
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118,618 |
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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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44,286,395 |
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2,069,497 |
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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 3Q
(January 1, 2015 ~
September 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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51.9 |
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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 |
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28.1 |
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54.1 |
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37.7 |
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52.7 |
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36.4 |
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55.2 |
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38.0 |
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54.6 |
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| Others |
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23.8 |
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45.9 |
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33.8 |
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47.3 |
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29.7 |
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44.8 |
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31.3 |
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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) |
(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) |
The project was temporarily suspended because India Government announced an Administrative Order of the auction system for assignment of mine. (January, 2015) |
(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) |
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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 temporarily suspended 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) |
| |
(i) |
Company cleared the crop fields designated for the construction of its steel mill site within the state owned property. (May, 2011). |
| |
(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) |
| |
(e) |
Electric generation work commenced (July, 2015) |
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) |
| |
(b) |
Construction of a steelwork with an annual capacity of 0.5 million tons commenced (September, 2015) |
| |
(5) |
Increase capability of non-oriented electrical steel at Pohang Works |
| |
(a) |
Board of Directors resolved to increase capability of non-oriented electrical steel at Pohang Works (May, 2015) |
2) Trading
A. Market Share
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Millions of Dollars, %) |
|
| Category |
|
2015 3Q
(January 1, 2015 ~
September 30, 2015) |
|
|
2014 3Q
(January 1, 2014 ~
September 30, 2014) |
|
|
Growth rate |
|
| All Trading Companies in Korea |
|
|
424,967 |
|
|
|
396,868 |
|
|
|
-6.6 |
|
| Daewoo International |
|
|
5,681 |
|
|
|
5,023 |
|
|
|
-11.6 |
|
|
|
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.
13
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.
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 |
|
|
43,842 |
|
|
|
12.7 |
|
| |
Cold-rolled Product (CR) |
|
Automobile, Home appliances, etc |
|
|
120,163 |
|
|
|
34.9 |
|
| |
Stainless Steel Products |
|
Western tableware, etc |
|
|
71,978 |
|
|
|
20.9 |
|
| |
By-Product |
|
Plates, Wire rods, etc |
|
|
108,476 |
|
|
|
31.5 |
|
| |
Gross Sum |
|
|
344,459 |
|
|
|
100.0 |
|
| |
Deduction of Internal Trade |
|
|
(127,685 |
) |
|
|
|
|
| |
Sub Total |
|
|
216,774 |
|
|
|
|
|
|
|
|
|
| Trading |
|
Steel, Metal |
|
|
115,041 |
|
|
|
55.8 |
|
| |
Chemical, Strategic Item, Energy |
|
|
4,643 |
|
|
|
2.3 |
|
| |
Etc |
|
|
86,461 |
|
|
|
41.9 |
|
| |
Gross Sum |
|
|
206,145 |
|
|
|
100.0 |
|
| |
Deduction of Internal Trade |
|
|
(65,343 |
) |
|
|
|
|
| |
Sub Total |
|
|
140,802 |
|
|
|
|
|
|
|
|
|
|
| Engineering & Construction |
|
Domestic Construction |
|
Architecture |
|
|
17,436 |
|
|
|
23.9 |
|
| |
|
Plant |
|
|
10,487 |
|
|
|
14.3 |
|
| |
|
Civil Engineering |
|
|
5,843 |
|
|
|
8.0 |
|
| |
Overseas Construction |
|
|
30,728 |
|
|
|
42.1 |
|
| |
Owned Construction |
|
|
5,536 |
|
|
|
7.6 |
|
| |
Etc |
|
|
3,009 |
|
|
|
4.1 |
|
| |
Gross Sum |
|
|
73,039 |
|
|
|
100.0 |
|
| |
Deduction of Internal Trade |
|
|
(10,695 |
) |
|
|
— |
|
| |
Sub Total |
|
|
62,344 |
|
|
|
|
|
|
|
|
|
| Others |
|
Electricity Sales, etc |
|
|
43,441 |
|
|
|
100.0 |
|
| |
Deduction of Internal Trade |
|
|
(20,497 |
) |
|
|
— |
|
| |
Sub Total |
|
|
22,944 |
|
|
|
— |
|
|
|
|
|
|
| Total Sum |
|
|
|
|
|
|
442,864 |
|
|
|
— |
|
15
B. Price Fluctuation Trend of Key Products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands of KRW/ Tons, kWh) |
|
| Business Area |
|
Products |
|
2015 3Q
(January 1, 2015 ~
September 30, 2015) |
|
|
2014 |
|
|
2013 |
|
|
2012 |
|
| Steel |
|
Hot-rolled Product (HR) |
|
|
575 |
|
|
|
686 |
|
|
|
728 |
|
|
|
828 |
|
| |
Cold-rolled Product (CR) |
|
|
743 |
|
|
|
822 |
|
|
|
877 |
|
|
|
999 |
|
|
|
|
|
|
|
| Others |
|
Electric Power |
|
|
109 |
|
|
|
142 |
|
|
|
156 |
|
|
|
161 |
|
| |
Lime |
|
|
117 |
|
|
|
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 |
|
|
60,076 (37.2 |
%) |
|
Iron Ore, Coal |
| |
|
Sub-materials |
|
Sub-materials for
Iron-making, Steelmaking |
|
|
56,058 (34.8 |
%) |
|
Iron Material,
Alloy Iron,
Non-ferrous Metal,
Limestone, etc. |
| |
|
Stainless Steel Materials |
|
Key Materials for
STS Production |
|
|
45,090 (28.0 |
%) |
|
Nickel, Ferrochrome,
STS Scrap Iron, etc. |
|
|
|
|
|
|
| Engineering & Construction |
|
Raw Materials |
|
Ready-mixed Concrete |
|
Construction of Structure |
|
|
1,371(19.3 |
%) |
|
|
| |
|
Steel Pile |
|
Foundation of Structure |
|
|
67 (0.9 |
%) |
|
|
| |
|
Steel
Reinforcement |
|
Strengthening Concrete |
|
|
1,547 (21.8 |
%) |
|
|
| |
|
Cable |
|
Electricity Transfer |
|
|
117(1.7 |
%) |
|
|
| |
|
Etc. |
|
— |
|
|
3,995 (56.3 |
%) |
|
|
|
|
|
|
|
|
| Others |
|
Raw Materials |
|
LNG |
|
Material for Power Generation |
|
|
8,659 (68.7 |
%) |
|
|
| |
|
Limestone |
|
Production of Lime |
|
|
771 (6.1 |
%) |
|
|
| |
|
Etc. |
|
— |
|
|
3,171(25.2 |
%) |
|
|
17
B. Price Fluctuation Trend of Major Raw Materials
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands of KRW) |
|
| Business Area |
|
Category |
|
2015 3Q
(January 1, 2015 ~
September 30, 2015) |
|
|
2014 |
|
|
2013 |
|
| Steel |
|
Iron Ore (per ton) |
|
|
64 |
|
|
|
93 |
|
|
|
148 |
|
| |
Coal (per ton) |
|
|
109 |
|
|
|
132 |
|
|
|
162 |
|
| |
Scrap Iron (per ton) |
|
|
263 |
|
|
|
382 |
|
|
|
428 |
|
| |
Nickel (per ton) |
|
|
12,333 |
|
|
|
17,769 |
|
|
|
16,455 |
|
|
|
|
|
|
| Engineering & Construction |
|
Ready-mixed Concrete (per m3) |
|
|
59 |
|
|
|
59 |
|
|
|
57 |
|
| |
Steel Pile (per m) |
|
|
39 |
|
|
|
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) |
|
|
776 |
|
|
|
1,056 |
|
|
|
979 |
|
| |
Lime (per ton) |
|
|
20 |
|
|
|
20 |
|
|
|
20 |
|
18
[Steel]
|
|
Key Factors in Price Fluctuations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
(In Dollars/ Tons) |
|
| |
|
‘15 3Q |
|
|
‘15 2Q |
|
|
‘15 1Q |
|
|
‘14 4Q |
|
|
‘14 3Q |
|
|
‘14 2Q |
|
|
‘14 1Q |
|
|
‘13 4Q |
|
|
‘13 3Q |
|
|
‘13 2Q |
|
|
‘13 1Q |
|
|
‘12 4Q |
|
| Trend of International Benchmark Price (Free On Board, “FOB”) |
|
|
49 |
|
|
|
54 |
|
|
|
58 |
|
|
|
66 |
|
|
|
82 |
|
|
|
94 |
|
|
|
111 |
|
|
|
123 |
|
|
|
123 |
|
|
|
118 |
|
|
|
141 |
|
|
|
113 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Dollars/ Tons) |
|
| |
|
‘15 3Q |
|
|
‘15 2Q |
|
|
‘15 1Q |
|
|
‘14 4Q |
|
|
‘14 3Q |
|
|
‘14 2Q |
|
|
‘14 1Q |
|
|
‘13 4Q |
|
|
‘13 3Q |
|
|
‘13 2Q |
|
|
‘13 1Q |
|
|
‘12 4Q |
|
| Trend of International Benchmark Price (FOB) |
|
|
93 |
|
|
|
109.5 |
|
|
|
117 |
|
|
|
119 |
|
|
|
120 |
|
|
|
120 |
|
|
|
143 |
|
|
|
152 |
|
|
|
145 |
|
|
|
172 |
|
|
|
165 |
|
|
|
170 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Dollars/ Tons) |
|
| |
|
‘15 3Q |
|
|
‘15 2Q |
|
|
‘15 1Q |
|
|
‘14 4Q |
|
|
‘14 3Q |
|
|
‘14 2Q |
|
|
‘14 1Q |
|
|
‘13 4Q |
|
|
‘13 3Q |
|
|
‘13 2Q |
|
|
‘13 1Q |
|
|
‘12 4Q |
|
| Trend of Purchase Price (Cost and Freight, “CFR”) |
|
|
225 |
|
|
|
256 |
|
|
|
268 |
|
|
|
331 |
|
|
|
376 |
|
|
|
365 |
|
|
|
379 |
|
|
|
396 |
|
|
|
367 |
|
|
|
379 |
|
|
|
421 |
|
|
|
379 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
‘15 3Q |
|
15 2Q |
|
‘15 1Q |
|
‘14 4Q |
|
‘14 3Q |
|
‘14 2Q |
|
‘14 1Q |
|
‘13 4Q |
|
‘13 3Q |
|
‘13 2Q |
| Trend of London Metal Exchange (“LME”) Cash Price |
|
USD
4.79/lb
USD 10,561/ton |
|
USD
5.90/lb
USD 13,008/ton |
|
USD
6.50/lb
USD 14,338/ton |
|
USD
7.17/lb
USD 15,799/ton |
|
USD
8.43/lb
USD 18,576/ton |
|
USD
8.37/lb
USD 18,463/ton |
|
USD
6.64/lb
USD 14,645/ton |
|
USD
6.31/lb
USD 13,904/ton |
|
USD
6.32/lb
USD 13,922/ton |
|
USD
6.78/lb
USD 14,952/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 |
| |
* |
Electricity price is affected by the 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 3Q
(January 1, 2015 ~
September 30, 2015) |
|
|
2014 |
|
|
2013 |
|
| Steel |
|
Crude Steel |
|
|
35,895 |
|
|
|
43,500 |
|
|
|
40,428 |
|
[Others]
(MW, Thousands of Tons)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Business Area |
|
Products |
|
2015 3Q
(January 1, 2015 ~
September 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 |
|
|
1,638 |
|
|
|
2,190 |
|
|
|
2,190 |
|
B. Production Result and Capacity Utilization Rate
[Steel]
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Thousands of Tons) |
|
| Products |
|
2015 3Q
(January 1, 2015 ~
September 30, 2015) |
|
|
2014 |
|
|
2013 |
|
| Crude Steel |
|
|
|
|
31,194 |
|
|
|
41,428 |
|
|
|
38,261 |
|
|
|
|
|
|
| Products |
|
Hot-Rolled Products |
|
|
7,138 |
|
|
|
8,124 |
|
|
|
8,109 |
|
| |
Plate |
|
|
4,797 |
|
|
|
6,433 |
|
|
|
5,649 |
|
| |
Wire Rod |
|
|
2,052 |
|
|
|
2,750 |
|
|
|
2,334 |
|
| |
Pickled-Oiled Steel Sheets |
|
|
2,177 |
|
|
|
2,785 |
|
|
|
2,640 |
|
| |
Cold-Rolled Products |
|
|
6,634 |
|
|
|
8,934 |
|
|
|
8,404 |
|
| |
Coated Steel |
|
|
4,593 |
|
|
|
6,164 |
|
|
|
5,762 |
|
| |
Electrical Steel |
|
|
956 |
|
|
|
1,253 |
|
|
|
1,125 |
|
| |
Stainless Steel |
|
|
1,773 |
|
|
|
2,453 |
|
|
|
2,372 |
|
| |
Others |
|
|
2,763 |
|
|
|
4,005 |
|
|
|
3,566 |
|
| |
Total |
|
|
32,883 |
|
|
|
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 third quarter of fiscal year of 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Thousands of Tons) |
|
| |
|
Company |
|
Capacity |
|
|
Production |
|
|
Utilization Rate |
|
| Crude Steel Production |
|
POSCO |
|
|
31,720 |
|
|
|
28,212 |
|
|
|
88.9 |
% |
| |
Zhangjiagang Pohang Stainless Steel |
|
|
1,100 |
|
|
|
870 |
|
|
|
79.1 |
% |
| |
PT.KRAKATAU POSCO |
|
|
2,250 |
|
|
|
1,981 |
|
|
|
88.0 |
% |
| |
POSCO SS-VINA |
|
|
825 |
|
|
|
131 |
|
|
|
15.9 |
% |
| |
Total |
|
|
35,895 |
|
|
|
31,194 |
|
|
|
86.9 |
% |
|
|
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]
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Gwh, Thousands of Tons) |
|
| |
|
Products |
|
2015 3Q
(January 1, 2015 ~
September 30, 2015) |
|
|
2014 |
|
|
2013 |
|
| Power Generation |
|
Electric Power |
|
|
11,829 |
|
|
|
15,442 |
|
|
|
15,983 |
|
| Lime |
|
Lime |
|
|
1,793 |
|
|
|
2,383 |
|
|
|
2,364 |
|
| (2) |
Capacity Utilization Rate for the third quarter of fiscal year of 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(hr, Thousands of Tons) |
|
| Business Area |
|
Products |
|
Capacity |
|
|
Production |
|
|
Utilization Rate |
|
| Power Generation |
|
Electric Power |
|
Inchon |
|
|
6,552 |
|
|
|
3,335 |
|
|
|
50.9 |
% |
| |
|
Gwangyang |
|
|
6,552 |
|
|
|
6,080 |
|
|
|
92.8 |
% |
| |
|
Pohang |
|
|
6,552 |
|
|
|
5,923 |
|
|
|
90.4 |
% |
| Lime |
|
Lime |
|
|
1,638 |
|
|
|
1,793 |
|
|
|
109.4 |
% |
22
C. Production Facilities
[Land]
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of KRW) |
|
| Business Area |
|
Beginning Book
Balance |
|
|
Increased |
|
|
Decreased |
|
|
Depreciation |
|
|
Ending Book
Balance |
|
| Steel |
|
|
2,019,939 |
|
|
|
61,109 |
|
|
|
(20,083 |
) |
|
|
(1,472 |
) |
|
|
2,059,493 |
|
| Trade |
|
|
61,169 |
|
|
|
2,220 |
|
|
|
— |
|
|
|
— |
|
|
|
63,389 |
|
| Engineering & Construction |
|
|
191,881 |
|
|
|
— |
|
|
|
(151,074 |
) |
|
|
— |
|
|
|
40,807 |
|
| Others |
|
|
528,299 |
|
|
|
13,370 |
|
|
|
65,221 |
) |
|
|
(45 |
) |
|
|
476,403 |
|
[Building]
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of KRW) |
|
| Business Area |
|
Beginning Book
Balance |
|
|
Increased |
|
|
Decreased |
|
|
Depreciation |
|
|
Ending Book
Balance |
|
| Steel |
|
|
4,573,200 |
|
|
|
123,993 |
|
|
|
(19,196 |
) |
|
|
(232,558 |
) |
|
|
4,445,439 |
|
| Trade |
|
|
104,702 |
|
|
|
840 |
|
|
|
(— |
) |
|
|
(1,975 |
) |
|
|
103,567 |
|
| Engineering & Construction |
|
|
147,278 |
|
|
|
19,902 |
|
|
|
(97,611 |
) |
|
|
(1,522 |
) |
|
|
68,047 |
|
| Others |
|
|
534,144 |
|
|
|
78,628 |
|
|
|
(19,320 |
) |
|
|
(19,558 |
) |
|
|
573,894 |
|
[Structures]
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of KRW) |
|
| Business Area |
|
Beginning Book
Balance |
|
|
Increased |
|
|
Decreased |
|
|
Depreciation |
|
|
Ending Book
Balance |
|
| Steel |
|
|
2,701,348 |
|
|
|
85,882 |
|
|
|
15,445 |
|
|
|
(147,819 |
) |
|
|
2,654,856 |
|
| Trade |
|
|
5,593 |
|
|
|
— |
|
|
|
(981 |
) |
|
|
(105 |
) |
|
|
4,507 |
|
| Engineering & Construction |
|
|
68,293 |
|
|
|
1,287 |
|
|
|
(13,209 |
) |
|
|
(1,233 |
) |
|
|
55,138 |
|
| Others |
|
|
254,929 |
|
|
|
11,296 |
|
|
|
(1,920 |
) |
|
|
(11,102 |
) |
|
|
253,203 |
|
[Machinery and Equipments]
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of KRW) |
|
| Business Area |
|
Beginning Book
Balance |
|
|
Increased |
|
|
Decreased |
|
|
Depreciation |
|
|
Ending Book
Balance |
|
| Steel |
|
|
18,231,086 |
|
|
|
1,730,340 |
|
|
|
(49,813 |
) |
|
|
(1,541,590 |
) |
|
|
18,370,023 |
|
| Trade |
|
|
333,469 |
|
|
|
271 |
|
|
|
(36,115 |
) |
|
|
(11,392 |
) |
|
|
286,233 |
|
| Engineering & Construction |
|
|
56,416 |
|
|
|
6,000 |
|
|
|
(28,149 |
) |
|
|
(5,232 |
) |
|
|
29,035 |
|
| Others |
|
|
2,578,914 |
|
|
|
263,336 |
|
|
|
(67,199 |
) |
|
|
(125,410 |
) |
|
|
2,649,641 |
|
23
[Vehicles]
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of KRW) |
|
| Business Area |
|
Beginning Book
Balance |
|
|
Increased |
|
|
Decreased |
|
|
Depreciation |
|
|
Ending Book
Balance |
|
| Steel |
|
|
34,534 |
|
|
|
10,185 |
|
|
|
(802 |
) |
|
|
(8,786 |
) |
|
|
35,131 |
|
| Trade |
|
|
3,516 |
|
|
|
1,426 |
|
|
|
(659 |
) |
|
|
(888 |
) |
|
|
3,395 |
|
| Engineering & Construction |
|
|
13,003 |
|
|
|
640 |
|
|
|
(671 |
) |
|
|
(2,407 |
) |
|
|
10,565 |
|
| Others |
|
|
5,642 |
|
|
|
1,119 |
|
|
|
(297 |
) |
|
|
(1,724 |
) |
|
|
4,740 |
|
[Tools and Fixtures]
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of KRW) |
|
| Business Area |
|
Beginning Book
Balance |
|
|
Increased |
|
|
Decreased |
|
|
Depreciation |
|
|
Ending Book
Balance |
|
| Steel |
|
|
43,508 |
|
|
|
26,713 |
|
|
|
(213 |
) |
|
|
(15,952 |
) |
|
|
54,056 |
|
| Trade |
|
|
1,684 |
|
|
|
148 |
|
|
|
(127 |
) |
|
|
(431 |
) |
|
|
1,274 |
|
| Engineering & Construction |
|
|
5,759 |
|
|
|
827 |
|
|
|
(4,195 |
) |
|
|
(625 |
) |
|
|
1,766 |
|
| Others |
|
|
13,118 |
|
|
|
5,824 |
|
|
|
(1,984 |
) |
|
|
(5,209 |
) |
|
|
11,749 |
|
[Equipment]
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of KRW) |
|
| Business Area |
|
Beginning Book
Balance |
|
|
Increased |
|
|
Decreased |
|
|
Depreciation |
|
|
Ending Book
Balance |
|
| Steel |
|
|
89,535 |
|
|
|
19,775 |
|
|
|
(377 |
) |
|
|
(22,510 |
) |
|
|
86,423 |
|
| Trade |
|
|
10,081 |
|
|
|
11,773 |
|
|
|
(162 |
) |
|
|
(4,479 |
) |
|
|
17,213 |
|
| Engineering & Construction |
|
|
12,829 |
|
|
|
4,346 |
|
|
|
(1,989 |
) |
|
|
(4,150 |
) |
|
|
11,036 |
|
| Others |
|
|
31,337 |
|
|
|
12,452 |
|
|
|
(518 |
) |
|
|
(14,329 |
) |
|
|
28,942 |
|
[Financial Lease Assets]
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of KRW) |
|
| Business Area |
|
Beginning Book
Balance |
|
|
Increased |
|
|
Decreased |
|
|
Depreciation |
|
|
Ending Book
Balance |
|
| Steel |
|
|
896 |
|
|
|
20,937 |
|
|
|
(82 |
) |
|
|
(4,205 |
) |
|
|
17,546 |
|
| Trade |
|
|
22,470 |
|
|
|
(90 |
) |
|
|
— |
|
|
|
(557 |
) |
|
|
21,823 |
|
| Engineering & Construction |
|
|
2,195 |
|
|
|
308 |
|
|
|
(38 |
) |
|
|
(507 |
) |
|
|
1,958 |
|
| Others |
|
|
54,520 |
|
|
|
(173 |
) |
|
|
— |
|
|
|
(760 |
) |
|
|
53,587 |
|
[Assets under Construction]
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of KRW) |
|
| Business Area |
|
Beginning Book
Balance |
|
|
Increased |
|
|
Decreased |
|
|
Depreciation |
|
|
Ending Book
Balance |
|
| Steel |
|
|
1,208,529 |
|
|
|
1,315,478 |
|
|
|
(1,518,126 |
) |
|
|
— |
|
|
|
1,005,881 |
|
| Trade |
|
|
119,856 |
|
|
|
42,586 |
|
|
|
(83,453 |
) |
|
|
— |
|
|
|
78,989 |
|
| Engineering & Construction |
|
|
72,691 |
|
|
|
6,508 |
|
|
|
(43,399 |
) |
|
|
(15,650 |
) |
|
|
20,150 |
|
| Others |
|
|
1,104,832 |
|
|
|
294,518 |
|
|
|
(309,703 |
) |
|
|
— |
|
|
|
1,089,647 |
|
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 |
|
|
|
185 |
|
|
|
2,369 |
|
| |
Renovation / Replacement |
|
August, 2013
~ April, 2016 |
|
P) Renovation of the Second Furnace, etc. |
|
|
3,940 |
|
|
|
3,851 |
|
|
|
89 |
|
| |
|
October, 2014 ~ December, 2016 |
|
G) Renovation of the Fifth Furnace, etc. |
|
|
5,087 |
|
|
|
1,113 |
|
|
|
3,974 |
|
| |
|
July, 2008 ~ December, 2018 |
|
P, G) Expansion of the Capacity of the Raw Material Treatment Facilities, etc |
|
|
27,562 |
|
|
|
10,401 |
|
|
|
17,161 |
|
| |
|
March, 2015 ~ December, 2017 |
|
P) Renovation of the Third Furnace, etc |
|
|
5,316 |
|
|
|
69 |
|
|
|
5,247 |
|
|
|
|
|
|
|
|
| POSCO Maharashtra Steel Private Limited |
|
Expansion |
|
November, 2011~
January, 2015 |
|
Establishment of a Cold-Rolling Mill in India
(1.8 million ton) |
|
|
7,710 |
|
|
|
7,710 |
|
|
|
— |
|
|
|
|
|
|
|
|
| POSCO (Chongqing) Automotive Processing Center Co., Ltd |
|
Expansion |
|
April, 2015~
February, 2016 |
|
Establishment of #2 facility |
|
|
116 |
|
|
|
116 |
|
|
|
— |
|
| |
|
P stands for Pohang Steel Works. |
| |
|
G stands for Gwangyang Steel Works. |
[Trade]
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In hundred millions of KRW) |
|
| Company |
|
Date |
|
Project |
|
Total
Investment |
|
|
Invested
Amount |
|
|
Amount
to Be
Invested |
|
| PT.BIO Intl Agrindo |
|
Expansion |
|
December, 2014 ~
February, 2016 |
|
CPO Mill |
|
|
217 |
|
|
|
94 |
|
|
|
123 |
|
[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 |
|
|
493 |
|
|
|
325 |
|
|
|
168 |
|
| |
Expansion |
|
September, 2012 ~August, 2015 |
|
#1 Construction of logistics complex |
|
|
218 |
|
|
|
213 |
|
|
|
5 |
|
| |
Expansion |
|
September, 2014 ~ December, 2015 |
|
#2-1 Construction of logistics complex |
|
|
269 |
|
|
|
179 |
|
|
|
90 |
|
| |
Expansion |
|
March, 2015 ~
December, 2016 |
|
#2-2 Construction of logistics complex |
|
|
280 |
|
|
|
56 |
|
|
|
224 |
|
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 |
|
|
|
107 |
|
|
|
231 |
|
| |
Expansion |
|
January, 2015 ~
December, 2015 |
|
Engineering |
|
|
290 |
|
|
|
35 |
|
|
|
255 |
|
|
|
|
|
|
|
|
| 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 ~
August, 2015 |
|
Construction of a Cell Manufacturing Plant Laboratory |
|
|
1,107 |
|
|
|
1,061 |
|
|
|
46 |
|
|
|
|
|
|
|
|
| POSCO Green Gas Technology |
|
Expansion |
|
April, 2014 ~
March, 2016 |
|
Establishment of SNG Plant |
|
|
10,500 |
|
|
|
7,944 |
|
|
|
2,556 |
|
|
|
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 |
|
|
8,148 |
|
|
|
7,418 |
|
|
|
10,155 |
|
| |
|
|
Capacity Increase |
|
|
1,504 |
|
|
|
3,499 |
|
|
|
4,733 |
|
| |
POSCO Thainox Public Company Limited |
|
Expansion, Renovation and Replacement of Existing Facilities |
|
Manufacture Process |
|
|
103 |
|
|
|
36 |
|
|
|
25 |
|
| |
|
|
|
|
18 |
|
|
|
165 |
|
|
|
— |
|
| |
POSCO
(Chongqing) Automotive Processing Center Co., Ltd |
|
Expansion, Renovation and Replacement of Existing Facilities |
|
Establishment of Facilities |
|
|
138 |
|
|
|
4 |
|
|
|
— |
|
|
|
|
|
|
|
|
| Trade |
|
PT. Bio Intl Agrindo |
|
Expansion, Renovation and Replacement of Existing Facilities |
|
CPO MILL |
|
|
113 |
|
|
|
11 |
|
|
|
— |
|
| |
DAEWOO TEXTILE FERGANA LLC |
|
Expansion, Renovation and Replacement of Existing Facilities |
|
Improvement of Productivity and Product Quality |
|
|
37 |
|
|
|
65 |
|
|
|
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 |
|
|
|
98 |
|
|
|
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 3Q
(January 1, 2015 ~
September 31, 2015) |
|
|
2014 |
|
|
2013 |
|
| Domestic |
|
Hot-Rolled Products |
|
|
17,574 |
|
|
|
42,090 |
|
|
|
37,828 |
|
| |
Cold-Rolled Products |
|
|
35,011 |
|
|
|
41,939 |
|
|
|
60,509 |
|
| |
Stainless Steel |
|
|
17,137 |
|
|
|
27,024 |
|
|
|
29,042 |
|
| |
Others |
|
|
60,475 |
|
|
|
102,892 |
|
|
|
103,308 |
|
|
|
|
|
|
| Export |
|
Hot-Rolled Products |
|
|
26,268 |
|
|
|
37,133 |
|
|
|
21,971 |
|
| |
Cold-Rolled Products |
|
|
85,152 |
|
|
|
104,078 |
|
|
|
110,668 |
|
| |
Stainless Steel |
|
|
54,840 |
|
|
|
79,856 |
|
|
|
71,356 |
|
| |
Others |
|
|
48,002 |
|
|
|
60,957 |
|
|
|
45,554 |
|
|
|
|
|
|
| Total |
|
Gross Sum |
|
|
344,459 |
|
|
|
495,969 |
|
|
|
480,236 |
|
| |
Internal Transaction |
|
|
(127,685 |
) |
|
|
(177,552 |
) |
|
|
(162,290 |
) |
| |
Total |
|
|
216,774 |
|
|
|
318,417 |
|
|
|
317,946 |
|
[Trading]
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In hundred millions of KRW) |
|
| Items |
|
2015 3Q
(January 1, 2015 ~
September 30, 2015) |
|
|
2014 |
|
|
2013 |
|
| Domestic |
|
Merchandise |
|
|
5,272 |
|
|
|
9,349 |
|
|
|
8,490 |
|
| |
Product |
|
|
— |
|
|
|
— |
|
|
|
— |
|
| |
Others |
|
|
185 |
|
|
|
111 |
|
|
|
116 |
|
|
|
|
|
|
| Export |
|
Merchandise |
|
|
60,636 |
|
|
|
88,947 |
|
|
|
86,296 |
|
| |
Product |
|
|
42 |
|
|
|
223 |
|
|
|
127 |
|
| |
Others |
|
|
463 |
|
|
|
596 |
|
|
|
145 |
|
|
|
|
|
| Trades among Korea, China & Japan |
|
|
139,547 |
|
|
|
213,383 |
|
|
|
164,020 |
|
|
|
|
|
| Gross Sum |
|
|
206,145 |
|
|
|
312,609 |
|
|
|
259,193 |
|
|
|
|
|
| Internal Transaction |
|
|
(65,343 |
) |
|
|
(100,951 |
) |
|
|
(76,114 |
) |
|
|
|
|
| Total |
|
|
140,802 |
|
|
|
211,658 |
|
|
|
183,079 |
|
27
[Engineering & Construction]
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In hundred millions of KRW) |
|
| Items |
|
2015 3Q
(January 1, 2015~
September 30, 2015) |
|
|
2014 |
|
|
2013 |
|
| Construction Contract Revenue |
|
Domestic |
|
Architecture |
|
|
17,436 |
|
|
|
19,514 |
|
|
|
16,185 |
|
| |
|
Plant |
|
|
10,487 |
|
|
|
24,785 |
|
|
|
41,670 |
|
| |
|
Civil Engineering |
|
|
5,843 |
|
|
|
7,378 |
|
|
|
6,969 |
|
| |
|
Others |
|
|
— |
|
|
|
— |
|
|
|
2 |
|
| |
Overseas |
|
|
30,728 |
|
|
|
42,980 |
|
|
|
32,039 |
|
|
|
|
|
| Own Construction |
|
|
5,536 |
|
|
|
6,976 |
|
|
|
7,060 |
|
|
|
|
|
| Other Subsidiary company sales |
|
|
3,009 |
|
|
|
1,404 |
|
|
|
3,895 |
|
|
|
|
|
| Gross Sum |
|
|
73,039 |
|
|
|
103,037 |
|
|
|
107,820 |
|
|
|
|
|
| Internal Transaction |
|
|
(10,695 |
) |
|
|
(21,845 |
) |
|
|
(38,852 |
) |
|
|
|
|
| Total |
|
|
62,344 |
|
|
|
81,192 |
|
|
|
68,968 |
|
[Others]
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In hundred millions of KRW) |
|
| Items |
|
2015 3Q
(January 1, 2015 ~
September 30, 2015) |
|
|
2014 |
|
|
2013 |
|
| Electric Power |
|
|
22,944 |
|
|
|
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
• Sale of shares of POSCO E&C to PIF was completed
(September 30). |
|
|
|
|
| DAEWOO INTERNATIONAL CORPORATION |
|
Gas Sales and
Purchase Agreement
(“GSPA”) Regarding
Shwe, Shwe Phyu and
Mya gas field in Myanmar |
|
December, 2008 |
|
1) Contract Parties
• 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 |
31
B. R&D Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
(In millions of KRW) |
|
| Category |
|
Business Area |
|
| |
Steel |
|
|
Trade |
|
|
Engineering &
Construction |
|
|
Others |
|
|
Total |
|
| Selling and Administrative Cost |
|
|
57,850 |
|
|
|
2,066 |
|
|
|
2,533 |
|
|
|
26,087 |
|
|
|
88,536 |
|
| Manufacturing Cost |
|
|
236,392 |
|
|
|
— |
|
|
|
3,694 |
|
|
|
3,258 |
|
|
|
243,344 |
|
| R&D Cost (Intangible Assets) |
|
|
13,573 |
|
|
|
— |
|
|
|
(2,533 |
) |
|
|
2,481 |
|
|
|
13,521 |
|
| Total |
|
|
307,815 |
|
|
|
2,066 |
|
|
|
3,694 |
|
|
|
31,826 |
|
|
|
345,401 |
|
| R&D/Sales Ratio |
|
|
1.42 |
% |
|
|
0.01 |
% |
|
|
0.06 |
% |
|
|
1.39 |
% |
|
|
0.78 |
% |
III. Financial Statements
1. Non-consolidated Financial Statements
A. Summary
of Fiscal Years 2013, 2014 and the Third Quarter of 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
(In millions of KRW) |
|
| Account |
|
2015 3Q
(January 1, 2015 ~
September 30, 2015) |
|
|
2014 |
|
|
2013 |
|
| [Current Assets] |
|
|
12,167,425 |
|
|
|
11,623,130 |
|
|
|
11,953,479 |
|
| Cash & Cash equivalents |
|
|
1,800,558 |
|
|
|
1,742,767 |
|
|
|
1,394,315 |
|
| Trade Accounts & Notes Receivable(net) |
|
|
2,869,609 |
|
|
|
3,157,266 |
|
|
|
3,393,444 |
|
| Other Current Financial Instruments |
|
|
3,186,378 |
|
|
|
1,256,659 |
|
|
|
2,599,977 |
|
| Inventories |
|
|
3,726,927 |
|
|
|
4,383,568 |
|
|
|
4,538,657 |
|
| Other Current Assets |
|
|
583,953 |
|
|
|
1,082,870 |
|
|
|
27,086 |
|
| [Non-current Assets] |
|
|
39,775,567 |
|
|
|
40,974,193 |
|
|
|
42,288,799 |
|
| Other Non-current Financial Instruments |
|
|
1,696,237 |
|
|
|
1,820,950 |
|
|
|
3,408,332 |
|
| Investment in Subsidiaries and Associates |
|
|
15,745,286 |
|
|
|
16,178,891 |
|
|
|
15,092,836 |
|
| Tangible Assets |
|
|
21,544,147 |
|
|
|
22,323,215 |
|
|
|
23,240,603 |
|
| Good Will & Other Intangible Assets |
|
|
487,228 |
|
|
|
403,907 |
|
|
|
438,783 |
|
| Other Non-current Assets |
|
|
302,669 |
|
|
|
247,230 |
|
|
|
108,245 |
|
| Total Assets |
|
|
51,942,992 |
|
|
|
52,597,323 |
|
|
|
54,242,278 |
|
| [Current Liabilities] |
|
|
4,263,653 |
|
|
|
3,516,052 |
|
|
|
3,704,520 |
|
| [Non-current Liabilities] |
|
|
4,991,315 |
|
|
|
6,605,840 |
|
|
|
8,226,296 |
|
| Total Liabilities |
|
|
9,254,968 |
|
|
|
10,121,892 |
|
|
|
11,930,816 |
|
| [Capital Stock] |
|
|
482,403 |
|
|
|
482,403 |
|
|
|
482,403 |
|
| [Capital Surplus] |
|
|
1,247,627 |
|
|
|
1,247,616 |
|
|
|
1,233,040 |
|
| [Hybrid bond] |
|
|
996,919 |
|
|
|
996,919 |
|
|
|
996,919 |
|
| [Retained Earnings] |
|
|
41,538,695 |
|
|
|
41,188,908 |
|
|
|
40,774,284 |
|
| [Other Equity] |
|
|
(1,577,620 |
) |
|
|
(1,440,415 |
) |
|
|
(1,175,184 |
) |
| Total Shareholders’ Equity |
|
|
42,688,024 |
|
|
|
42,475,431 |
|
|
|
42,311,462 |
|
| Total Sales |
|
|
19,661,927 |
|
|
|
29,218,854 |
|
|
|
30,543,545 |
|
| Operating Income |
|
|
1,867,075 |
|
|
|
2,350,035 |
|
|
|
2,215,133 |
|
| Net Income |
|
|
1,056,422 |
|
|
|
1,138,958 |
|
|
|
1,582,596 |
|
| Earnings per share(KRW) |
|
|
12,898 |
|
|
|
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 third quarter of fiscal year of
2015.
Refer to the attached income statement for the third quarter 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 Third Quarter of 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
(In millions of KRW) |
|
| Account |
|
2015 3Q
(January 1, 2015 ~
September 30, 2015) |
|
|
2014 |
|
|
2013 |
|
| [Current Assets] |
|
|
31,553,420 |
|
|
|
32,627,382 |
|
|
|
31,666,211 |
|
| Cash & Cash equivalents |
|
|
5,242,357 |
|
|
|
3,811,202 |
|
|
|
4,280,562 |
|
| Other Current Financial Instruments |
|
|
5,413,452 |
|
|
|
3,419,136 |
|
|
|
4,861,088 |
|
| Accounts Receivable |
|
|
10,183,479 |
|
|
|
11,786,055 |
|
|
|
11,492,601 |
|
| Inventories |
|
|
9,091,097 |
|
|
|
10,471,330 |
|
|
|
9,798,381 |
|
| Other Current Assets |
|
|
1,623,035 |
|
|
|
3,139,659 |
|
|
|
1,305,579 |
|
| [Non-current Assets] |
|
|
51,648,923 |
|
|
|
52,624,791 |
|
|
|
52,789,196 |
|
| Other Non-current Financial Instruments |
|
|
3,209,749 |
|
|
|
3,600,060 |
|
|
|
5,263,185 |
|
| Investment Securities |
|
|
4,053,730 |
|
|
|
4,060,507 |
|
|
|
3,808,693 |
|
| Tangible Assets |
|
|
34,725,545 |
|
|
|
35,241,195 |
|
|
|
35,760,119 |
|
| Good Will & Other Intangible Assets |
|
|
6,496,593 |
|
|
|
6,884,989 |
|
|
|
5,929,840 |
|
| Other Non-current Assets |
|
|
3,163,306 |
|
|
|
2,838,040 |
|
|
|
2,027,359 |
|
| Total Assets |
|
|
83,202,343 |
|
|
|
85,252,173 |
|
|
|
84,455,407 |
|
| [Current Liabilities] |
|
|
22,065,868 |
|
|
|
21,877,009 |
|
|
|
20,241,159 |
|
| [Non-current Liabilities] |
|
|
16,137,490 |
|
|
|
18,083,799 |
|
|
|
18,392,218 |
|
| Total Liabilities |
|
|
38,203,358 |
|
|
|
39,960,808 |
|
|
|
38,633,377 |
|
| [Controlling Interest] |
|
|
41,043,825 |
|
|
|
41,587,368 |
|
|
|
42,046,037 |
|
| Capital Stock |
|
|
482,403 |
|
|
|
482,403 |
|
|
|
482,403 |
|
| Capital Surplus |
|
|
1,392,330 |
|
|
|
1,083,718 |
|
|
|
1,078,266 |
|
| Hybrid bond |
|
|
996,919 |
|
|
|
996,919 |
|
|
|
996,919 |
|
| Retained Earnings |
|
|
40,250,028 |
|
|
|
40,967,558 |
|
|
|
41,090,649 |
|
| Other Controlling Interest |
|
|
(2,077,855 |
) |
|
|
(1,943,230 |
) |
|
|
(1,602,200 |
) |
| [Minority Interest] |
|
|
3,955,160 |
|
|
|
3,703,997 |
|
|
|
3,775,993 |
|
| Total Shareholders’ Equity |
|
|
44,998,985 |
|
|
|
45,291,365 |
|
|
|
45,822,030 |
|
| Total Sales |
|
|
44,286,395 |
|
|
|
65,098,445 |
|
|
|
61,864,650 |
|
| Operating Income |
|
|
2,069,497 |
|
|
|
3,213,530 |
|
|
|
2,996,134 |
|
| Consolidated Net Profit |
|
|
(205,646 |
) |
|
|
556,659 |
|
|
|
1,355,180 |
|
| [Controlling Interest] |
|
|
(4,864 |
) |
|
|
626,099 |
|
|
|
1,376,396 |
|
| [Minority Interest] |
|
|
(200,782 |
) |
|
|
(69,440 |
) |
|
|
(21,216 |
) |
| Consolidated Total Comprehensive Income |
|
|
(345,755 |
) |
|
|
101,077 |
|
|
|
1,369,450 |
|
| [Controlling Interest] |
|
|
(180,784 |
) |
|
|
174,918 |
|
|
|
1,444,262 |
|
| [Minority Interest] |
|
|
(164,971 |
) |
|
|
(73,841 |
) |
|
|
(74,812 |
) |
| Earning Per Share |
|
|
(370 |
) |
|
|
7,432 |
|
|
|
17,409 |
|
| Number of Consolidated Companies |
|
|
222 |
|
|
|
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 third
quarter of fiscal year of 2015.
| |
(2) |
Consolidated Income Statements |
Refer to the attached consolidated financial report for the
third quarter 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
• President and Representative Director, IBM Korea |
|
None |
|
Chairman Board of Directors |
|
|
|
|
| Lee, Myoung-Woo |
|
• (Present) President and Representative Director,
Dongwon Industry
• Vice Chairman, Iriver
• CEO, SONY Korea |
|
None |
|
|
| Kim, Il-Sup |
|
• (Present) President, Seoul School of Integrated Science and
Technology
• Chairman, Deloitte Anjin Accounting Corporation
• Vice-Chairman, Samil PWC Accounting Corporation |
|
None |
|
|
| Sunwoo, Young |
|
• (Present) Managing Partner, Rhi & Partners
• Chief Public Prosecutor, Seoul Eastern District Prosecutor’s
Office
• Chief Public Prosecutor, Cheongju District Prosecutor’s
Office |
|
None |
|
|
|
|
|
|
| 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
• Chairman, Korea Federation Bank
• Senior Secretary to the President, Economic Policy
• Chairman, Woori Finance Holdings Co., Ltd |
|
None |
|
|
|
|
|
|
| Kim, Joo-Hyun |
|
• (Present) Advisory, Hyundai Research Institute
Chairman, Sub-Committee of Economy Presidential Committee, Unification Preparation
• President & CEO, Hyundai Research Institute
• Head, Business Strategy Division of Hyundai Research
Institute |
|
None |
|
|
| |
(4) |
List of Key Activities of the Board of Directors (January 1, 2015 ~ November 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 |
38
|
|
|
|
|
|
|
| 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 |
|
All 3 Cases |
|
|
|
|
|
|
|
|
2. Amendment of the operating rules of the Board of Directors
3. Amendment of the remuneration guideline for the Directors |
|
Approved |
|
|
|
|
| 2015-6 |
|
September 29 |
|
1. Settlement of Grain Oriented Electrical Steel lawsuit |
|
Approved |
|
|
|
|
| 2015-7 |
|
November 6 |
|
1. Delisting of American Depositary Shares from London Stock Exchange and Tokyo Stock Exchange
2. Lease contract of Limestone Calcinations Facility between POSCO and POSCO Chemtech
3. Plan of funding for Mir Foundation |
|
Approved
Approved
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) |
|
|
| 2015-6 |
|
September 29 |
|
7 (7) |
|
|
| 2015-7 |
|
November 6 |
|
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 ~ November 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 ~ November 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 |
|
—
—
— |
|
|
|
| September 29 |
|
1. Settlement of Grain Oriented Electrical Steel lawsuit |
|
— |
| |
(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 ~ November 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 |
|
— |
|
|
|
| November 5 |
|
1. Lease contract of Limestone Calcinations Facility between POSCO and POSCO Chemtech |
|
— |
| |
(e) |
Major Activities of Executive Management Committee (January 1, 2015 ~ November 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 equipment of the wharf in Gwangyang Works
3. Plan for information system of Continuous Galvanizing Line in Thailand and
Logistics |
|
Approved
Approved
Approved |
|
|
|
|
| 2015-6 |
|
July 21 |
|
1. Replacement of motor and drive at Gwangyang Works
2. Disposal of treasury stocks as Employee Award |
|
Approved
Approved |
|
|
|
|
| 2015-7 |
|
August 18 |
|
1. Replacement of old facilities in Gwangyang Works
2. Replacement of old controlling system in Pohang Works |
|
Approved
Approved |
|
|
|
|
| 2015-8 |
|
September 15 |
|
1. Enhancement of power facility in Pohang Works |
|
Approved |
|
|
|
|
| 2015-9 |
|
October 19 |
|
1. Replacement of old facilities in Gwangyang Works
2. Disposal of treasury stocks as Employee Award |
|
Approved
Approved |
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 ~ November 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
|
|
|
|
|
|
|
| 2015-2 |
|
February 13 |
|
• Deliberation Agenda
• Approval of designation of the director for internal audit
department
• Assessment of the operations of the internal accounting control system
for the fiscal year of 2014
• Internal audit result for the fiscal year of 2014 (Consolidated)
• Report Agenda
• External audit result for the fiscal year of 2014
(Consolidated) |
|
Approved
Approved
Approved |
|
|
|
|
| 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 |
|
|
|
|
|
|
| 2015-7 |
|
November 5 |
|
• Report Agenda
• Internal audit result for the third quarter of 2015 (Consolidated)
• External audit result for the third quarter of 2015 (Consolidated)
• Plan for the designation standard of the external auditor
• Audit plan for the fourth quarter of 2015 and the result of internal
audit for the third quarter of 2015 |
|
|
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. |
42
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 |
|
|
|
2,708 |
|
|
|
493 |
|
|
|
7,000 |
|
|
|
— |
|
| Outside Director |
|
|
4 |
|
|
|
184 |
|
|
|
41 |
|
|
|
|
— |
|
| Members of the Audit Committee |
|
|
3 |
|
|
|
157 |
|
|
|
45 |
|
|
|
|
|
|
|
— |
|
| Total |
|
|
12 |
|
|
|
3,049 |
|
|
|
230 |
|
|
|
|
|
|
|
— |
|
|
|
Payment Period: January 1, 2015 ~ September 30, 2015 |
|
|
Outside Directors also serving as the members of the Audit Committee are excluded in the count for the Outside Director. |
| |
(2) |
Individual remuneration amount |
|
|
|
|
|
|
|
|
|
(In millions KRW) |
|
| Name |
|
Experience |
|
Total Payment |
|
| Kwon, Oh-Joon |
|
Chief Executive Officer and Representative Director |
|
|
781 |
|
| Kim, Jin-Il |
|
President and Representative Director |
|
|
513 |
|
| |
(3) |
List of Stock Options Presented to the Executives (As of September 30, 2015) |
| |
• |
|
Exercise of the stock option ended on the final day of the stock options exercise period (April 28, 2012). |
43
POSCO
Condensed Separate Interim Financial Statements
(Unaudited)
September 30, 2015
(With Independent Auditors’ Review Report Thereon)
Table of Contents
|
|
|
|
|
| |
|
Page |
|
|
|
| Independent Auditors’ Review Report |
|
|
1 |
|
|
|
| Condensed Separate Interim Financial Statements |
|
|
|
|
|
|
| Condensed Separate Interim Statements of Financial Position |
|
|
3 |
|
|
|
| Condensed Separate Interim Statements of Comprehensive Income |
|
|
5 |
|
|
|
| Condensed Separate Interim Statements of Changes in Equity |
|
|
6 |
|
|
|
| Condensed Separate Interim Statements of Cash Flows |
|
|
7 |
|
|
|
| Notes to the Condensed Separate Financial Statements |
|
|
9 |
|
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 September 30, 2015, the condensed separate interim statements
of comprehensive income for the three-month and nine-month periods ended September 30, 2015, and 2014, the condensed separate interim statements of changes in equity and cash flows for the nine-month periods ended September 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
November 13, 2015
This report is effective as of November 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 September 30, 2015 and December 31, 2014
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Notes |
|
|
September 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 |
|
|
|
2,869,609 |
|
|
|
3,157,266 |
|
| Other receivables, net |
|
|
5,20,31 |
|
|
|
226,418 |
|
|
|
562,930 |
|
| Other short-term financial assets |
|
|
6,14,20 |
|
|
|
2,959,960 |
|
|
|
693,729 |
|
| Inventories |
|
|
7,28 |
|
|
|
3,726,927 |
|
|
|
4,383,568 |
|
| Assets held for sale |
|
|
8 |
|
|
|
531,051 |
|
|
|
1,051,177 |
|
| Other current assets |
|
|
9 |
|
|
|
52,902 |
|
|
|
31,692 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total current assets |
|
|
|
|
|
|
12,167,425 |
|
|
|
11,623,129 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Long-term trade accounts and notes receivable, net |
|
|
4,20 |
|
|
|
21,003 |
|
|
|
23,841 |
|
| Other receivables, net |
|
|
5,20 |
|
|
|
106,634 |
|
|
|
26,360 |
|
| Other long-term financial assets |
|
|
6,20 |
|
|
|
1,589,603 |
|
|
|
1,794,590 |
|
| Investments in subsidiaries, associates and joint ventures |
|
|
10 |
|
|
|
15,745,286 |
|
|
|
16,178,891 |
|
| Investment property, net |
|
|
11 |
|
|
|
87,231 |
|
|
|
90,137 |
|
| Property, plant and equipment, net |
|
|
12 |
|
|
|
21,544,147 |
|
|
|
22,323,215 |
|
| Intangible assets, net |
|
|
13 |
|
|
|
487,228 |
|
|
|
403,907 |
|
| Other long-term assets |
|
|
9 |
|
|
|
194,435 |
|
|
|
133,253 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total non-current assets |
|
|
|
|
|
|
39,775,567 |
|
|
|
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 September 30, 2015 and December 31, 2014
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Notes |
|
|
September 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 |
|
|
|
2,405,081 |
|
|
|
1,236,290 |
|
| Other payables |
|
|
15,20,31 |
|
|
|
836,381 |
|
|
|
1,032,496 |
|
| Other short-term financial liabilities |
|
|
16,20 |
|
|
|
34,454 |
|
|
|
9,236 |
|
| Current income tax liabilities |
|
|
|
|
|
|
236,530 |
|
|
|
304,362 |
|
| Provisions |
|
|
17 |
|
|
|
20,949 |
|
|
|
47,759 |
|
| Other current liabilities |
|
|
19 |
|
|
|
58,483 |
|
|
|
108,508 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total current liabilities |
|
|
|
|
|
|
4,263,652 |
|
|
|
3,516,052 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Long-term borrowings, excluding current installments |
|
|
6,14,20 |
|
|
|
3,674,337 |
|
|
|
5,300,927 |
|
| Other payables |
|
|
15,20 |
|
|
|
34,502 |
|
|
|
88,807 |
|
| Other long-term financial liabilities |
|
|
16,20 |
|
|
|
85,816 |
|
|
|
50,574 |
|
| Defined benefit liabilities, net |
|
|
18 |
|
|
|
157,427 |
|
|
|
86,158 |
|
| Deferred tax liabilities |
|
|
|
|
|
|
997,996 |
|
|
|
1,047,666 |
|
| Long-term provisions |
|
|
17,32 |
|
|
|
24,435 |
|
|
|
31,474 |
|
| Other long-term liabilities |
|
|
19 |
|
|
|
16,802 |
|
|
|
234 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total non-current liabilities |
|
|
|
|
|
|
4,991,315 |
|
|
|
6,605,840 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total liabilities |
|
|
|
|
|
|
9,254,967 |
|
|
|
10,121,892 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
| Share capital |
|
|
21 |
|
|
|
482,403 |
|
|
|
482,403 |
|
| Capital surplus |
|
|
21 |
|
|
|
1,247,627 |
|
|
|
1,247,616 |
|
| Hybrid bonds |
|
|
22 |
|
|
|
996,919 |
|
|
|
996,919 |
|
| Reserves |
|
|
23 |
|
|
|
(43,300 |
) |
|
|
94,042 |
|
| Treasury shares |
|
|
24 |
|
|
|
(1,534,320 |
) |
|
|
(1,534,457 |
) |
| Retained earnings |
|
|
|
|
|
|
41,538,696 |
|
|
|
41,188,908 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total shareholder’s equity |
|
|
|
|
|
|
42,688,025 |
|
|
|
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 nine-month periods ended September 30, 2015 and 2014
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won, except per share information) |
|
|
|
For the three-month periods
ended September 30 |
|
|
For the nine-month periods
ended September 30 |
|
| |
|
Notes |
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
| Revenue |
|
31 |
|
W |
|
|
|
|
7,290,135 |
|
|
|
19,661,927 |
|
|
|
22,073,769 |
|
| Cost of sales |
|
7,28,31 |
|
|
(5,179,880 |
) |
|
|
(6,176,963 |
) |
|
|
(16,399,165 |
) |
|
|
(18,964,939 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gross profit |
|
|
|
|
1,118,921 |
|
|
|
1,113,172 |
|
|
|
3,262,762 |
|
|
|
3,108,830 |
|
| Selling and administrative expenses |
|
25,28,31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Administrative expenses |
|
|
|
|
(218,689 |
) |
|
|
(230,177 |
) |
|
|
(654,469 |
) |
|
|
(679,972 |
) |
| Selling expenses |
|
|
|
|
(262,372 |
) |
|
|
(248,027 |
) |
|
|
(741,218 |
) |
|
|
(710,833 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating profit |
|
|
|
|
637,860 |
|
|
|
634,968 |
|
|
|
1,867,075 |
|
|
|
1,718,025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Finance income and costs |
|
20,26 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Finance income |
|
|
|
|
130,888 |
|
|
|
107,189 |
|
|
|
597,116 |
|
|
|
702,658 |
|
| Finance costs |
|
|
|
|
(346,426 |
) |
|
|
(302,835 |
) |
|
|
(659,665 |
) |
|
|
(610,981 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other non-operating income and expenses |
|
27,31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other non-operating income |
|
|
|
|
364,972 |
|
|
|
7,411 |
|
|
|
438,109 |
|
|
|
18,725 |
|
| Other non-operating expenses |
|
28 |
|
|
(477,033 |
) |
|
|
(137,282 |
) |
|
|
(870,408 |
) |
|
|
(527,589 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Profit before income tax |
|
|
|
|
310,261 |
|
|
|
309,451 |
|
|
|
1,372,227 |
|
|
|
1,300,838 |
|
| Tax benefit (expense) |
|
29 |
|
|
35,950 |
|
|
|
(87,876 |
) |
|
|
(315,805 |
) |
|
|
(420,508 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Profit |
|
|
|
|
346,211 |
|
|
|
221,575 |
|
|
|
1,056,422 |
|
|
|
880,330 |
|
| Other comprehensive loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Items that will not be reclassified subsequently to profit or loss : |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Remeasurements of defined benefit plans, net of tax |
|
18 |
|
|
(13,681 |
) |
|
|
(41,674 |
) |
|
|
(34,104 |
) |
|
|
(70,842 |
) |
| 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 |
|
|
(165,721 |
) |
|
|
(50,477 |
) |
|
|
(137,342 |
) |
|
|
(362,569 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total comprehensive income |
|
|
|
W |
|
|
|
|
129,424 |
|
|
|
884,976 |
|
|
|
446,919 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic and diluted earnings per share (in Won) |
|
30 |
|
W |
|
|
|
|
2,673 |
|
|
|
12,898 |
|
|
|
10,724 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the condensed separate interim financial statements.
5
POSCO
Condensed Separate Interim Statements of Changes in Equity
For the nine-month periods ended September 30, 2015 and 2014
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Share
capital |
|
|
Capital
surplus |
|
|
Hybrid
bonds |
|
|
Reserves |
|
|
Treasury
shares |
|
|
Retained
earnings |
|
|
Total |
|
| Balance as of January 1, 2014 |
|
W |
|
|
|
|
1,233,040 |
|
|
|
996,919 |
|
|
|
403,939 |
|
|
|
(1,579,124 |
) |
|
|
40,774,285 |
|
|
|
42,311,462 |
|
| Comprehensive income : |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Profit |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
880,330 |
|
|
|
880,330 |
|
| Other comprehensive loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Remeasurements of defined benefit plans, net of tax |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(70,842 |
) |
|
|
(70,842 |
) |
| Net changes in unrealized fair value of available-for-sale investments, net of tax |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(362,569 |
) |
|
|
— |
|
|
|
— |
|
|
|
(362,569 |
) |
| Transactions with owners of the Company, recognized directly in equity : |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Year-end dividends |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(478,702 |
) |
|
|
(478,702 |
) |
| Interim dividends |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(159,568 |
) |
|
|
(159,568 |
) |
| Interest of hybrid bonds |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(32,586 |
) |
|
|
(32,586 |
) |
| Disposal of treasury shares |
|
|
— |
|
|
|
50 |
|
|
|
— |
|
|
|
— |
|
|
|
138 |
|
|
|
— |
|
|
|
188 |
|
| Balance as of September 30, 2014 |
|
W |
|
|
|
|
1,233,090 |
|
|
|
996,919 |
|
|
|
41,370 |
|
|
|
(1,578,986 |
) |
|
|
40,912,917 |
|
|
|
42,087,713 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance as of January 1, 2015 |
|
W |
|
|
|
|
1,247,616 |
|
|
|
996,919 |
|
|
|
94,042 |
|
|
|
(1,534,457 |
) |
|
|
41,188,908 |
|
|
|
42,475,431 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Comprehensive income : |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Profit |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,056,422 |
|
|
|
1,056,422 |
|
| Other comprehensive loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Remeasurements of defined benefit plans, net of tax |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(34,104 |
) |
|
|
(34,104 |
) |
| Net changes in unrealized fair value of available-for-sale investments, net of tax |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(137,342 |
) |
|
|
— |
|
|
|
— |
|
|
|
(137,342 |
) |
| Transactions with owners of the Company, recognized directly in equity : |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Year-end dividends |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(479,958 |
) |
|
|
(479,958 |
) |
| Interim dividends |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(159,987 |
) |
|
|
(159,987 |
) |
| Interest of hybrid bonds |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(32,585 |
) |
|
|
(32,585 |
) |
| Disposal of treasury shares |
|
|
— |
|
|
|
11 |
|
|
|
— |
|
|
|
— |
|
|
|
137 |
|
|
|
— |
|
|
|
148 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance as of September 30, 2015 |
|
W |
|
|
|
|
1,247,627 |
|
|
|
996,919 |
|
|
|
(43,300 |
) |
|
|
(1,534,320 |
) |
|
|
41,538,696 |
|
|
|
42,688,025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the condensed separate interim financial statements.
6
POSCO
Condensed Separate Interim Statements of Cash Flows
For the nine-month periods ended September 30, 2015 and 2014
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Notes |
|
September 30, 2015 |
|
|
September 30, 2014 |
|
| Cash flows from operating activities |
|
|
|
|
|
|
|
|
|
|
| Profit |
|
|
|
W |
|
|
|
|
880,330 |
|
| Adjustments for : |
|
|
|
|
|
|
|
|
|
|
| Costs for defined benefit plans |
|
|
|
|
90,511 |
|
|
|
86,368 |
|
| Depreciation |
|
|
|
|
1,539,392 |
|
|
|
1,532,130 |
|
| Amortization |
|
|
|
|
52,025 |
|
|
|
56,033 |
|
| Finance income |
|
|
|
|
(440,569 |
) |
|
|
(503,190 |
) |
| Finance costs |
|
|
|
|
528,686 |
|
|
|
429,511 |
|
| Loss on valuation of inventories |
|
|
|
|
12,990 |
|
|
|
19,840 |
|
| Gain on disposal of property, plant and equipment |
|
|
|
|
(8,543 |
) |
|
|
(3,295 |
) |
| Loss on disposal of property, plant and equipment |
|
|
|
|
57,201 |
|
|
|
38,140 |
|
| Impairment loss on property, plant and equipment |
|
|
|
|
68,720 |
|
|
|
30,334 |
|
| Impairment loss on investments in subsidiaries, associates and joint ventures |
|
|
|
|
260,833 |
|
|
|
140,106 |
|
| Gain on disposal of assets held for sale |
|
|
|
|
(409,173 |
) |
|
|
— |
|
| Loss on disposal of assets held for sale |
|
|
|
|
20,133 |
|
|
|
14 |
|
| Impairment loss on assets held for sale |
|
|
|
|
95,737 |
|
|
|
— |
|
| Provision expense |
|
|
|
|
2,045 |
|
|
|
92,906 |
|
| Income tax expense |
|
|
|
|
315,805 |
|
|
|
420,508 |
|
| Others |
|
|
|
|
3,115 |
|
|
|
38,937 |
|
| Changes in operating assets and liabilities |
|
33 |
|
|
792,428 |
|
|
|
48,919 |
|
| Interest received |
|
|
|
|
59,051 |
|
|
|
67,201 |
|
| Interest paid |
|
|
|
|
(190,078 |
) |
|
|
(240,903 |
) |
| Dividends received |
|
|
|
|
493,850 |
|
|
|
136,338 |
|
| Income taxes paid |
|
|
|
|
(450,975 |
) |
|
|
(281,102 |
) |
|
|
|
|
|
|
|
|
|
|
|
| Net cash provided by operating activities |
|
|
|
W |
|
|
|
|
2,989,125 |
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the condensed separate interim financial statements.
7
POSCO
Condensed Separate Interim Statements of Cash Flows, Continued
For the nine-month periods ended September 30, 2015 and 2014
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Notes |
|
September 30, 2015 |
|
|
September 30, 2014 |
|
| Cash flows from investing activities |
|
|
|
|
|
|
|
|
|
|
| Proceeds from disposal of short-term financial instruments |
|
|
|
W |
|
|
|
|
3,389,409 |
|
| Proceeds from disposal of long-term financial instruments |
|
|
|
|
2 |
|
|
|
— |
|
| Proceeds from disposal of available-for-sale investments |
|
|
|
|
2,231 |
|
|
|
957 |
|
| Decrease in short-term loans |
|
|
|
|
69,443 |
|
|
|
— |
|
| Decrease in long-term loans |
|
|
|
|
495 |
|
|
|
4,478 |
|
| Proceeds from disposal of investments in subsidiaries, associates and joint ventures |
|
|
|
|
3,613 |
|
|
|
— |
|
| Proceeds from disposal of intangible assets |
|
|
|
|
3,147 |
|
|
|
1,627 |
|
| Proceeds from disposal of assets held for sale |
|
|
|
|
1,275,597 |
|
|
|
1,291 |
|
| Acquisition of short-term financial investments |
|
|
|
|
(8,642,765 |
) |
|
|
(1,976,508 |
) |
| Increase in short-term loans |
|
|
|
|
(65,208 |
) |
|
|
— |
|
| Acquisition of available-for-sale investments |
|
|
|
|
(1,152 |
) |
|
|
(25,779 |
) |
| Increase in long-term loans |
|
|
|
|
(139 |
) |
|
|
(14,476 |
) |
| Acquisition of investment in subsidiaries, associates and joint ventures |
|
|
|
|
(390,817 |
) |
|
|
(812,797 |
) |
| Acquisition of investment property |
|
|
|
|
(146 |
) |
|
|
— |
|
| Acquisition of property, plant and equipment |
|
|
|
|
(1,090,685 |
) |
|
|
(1,185,854 |
) |
| Payment for disposal of property, plant and equipment |
|
|
|
|
(15,977 |
) |
|
|
(12,284 |
) |
| Acquisition of intangible assets |
|
|
|
|
(28,941 |
) |
|
|
(25,836 |
) |
|
|
|
|
|
|
|
|
|
|
|
| Net cash used in investing activities |
|
|
|
|
(2,505,476 |
) |
|
|
(655,772 |
) |
|
|
|
|
|
|
|
|
|
|
|
| Cash flows from financing activities |
|
|
|
|
|
|
|
|
|
|
| Proceeds from borrowings |
|
|
|
|
21,067 |
|
|
|
1,402,395 |
|
| Increase in long-term financial liabilities |
|
|
|
|
3,086 |
|
|
|
1,544 |
|
| Repayment of borrowings |
|
|
|
|
(736,697 |
) |
|
|
(2,841,675 |
) |
| Decrease in long-term financial liabilities |
|
|
|
|
(3,486 |
) |
|
|
(2,219 |
) |
| Payment of cash dividends |
|
|
|
|
(639,998 |
) |
|
|
(638,363 |
) |
| Payment of interest of hybrid bonds |
|
|
|
|
(32,730 |
) |
|
|
(32,730 |
) |
|
|
|
|
|
|
|
|
|
|
|
| Net cash used in financing activities |
|
|
|
|
(1,388,758 |
) |
|
|
(2,111,048 |
) |
|
|
|
|
|
|
|
|
|
|
|
| Effect of exchange rate changes on cash held |
|
|
|
|
2,419 |
|
|
|
— |
|
| Net increase in cash and cash equivalents |
|
|
|
|
57,791 |
|
|
|
222,305 |
|
| 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 |
|
|
|
|
1,616,620 |
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the condensed separate interim financial statements.
8
POSCO
Notes to the Condensed Separate Interim Financial Statements
As of September 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 of its five overseas liaison offices.
As of September 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) Judgments, 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 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.
9
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
(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 September 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 Korea 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.
(b) Emission liability
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 September 30, 2015
(Unaudited)
4. Trade Accounts and Notes Receivable
Trade accounts and notes receivable as of September 30, 2015 and December 31, 2014 are as follows:
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
September 30, 2015 |
|
|
December 31, 2014 |
|
| Current |
|
|
|
|
|
|
|
|
| Trade accounts and notes receivable |
|
W |
|
|
|
|
3,166,238 |
|
| Less: Allowance for doubtful accounts |
|
|
(10,334 |
) |
|
|
(8,972 |
) |
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
3,157,266 |
|
|
|
|
|
|
|
|
|
|
| Non-current |
|
|
|
|
|
|
|
|
| Trade accounts and notes receivable |
|
W |
|
|
|
|
32,247 |
|
| Less: Present value discount |
|
|
(8,106 |
) |
|
|
(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 W790 million as of September 30, 2015 were included in short-term borrowings (Note 14).
5. Other Receivables
Other receivables as of September 30, 2015 and December 31, 2014 are as follows:
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
September 30, 2015 |
|
|
December 31, 2014 |
|
| Current |
|
|
|
|
|
|
|
|
| Short-term loans |
|
W |
|
|
|
|
4,748 |
|
| Other accounts receivable |
|
|
226,659 |
|
|
|
564,765 |
|
| Others |
|
|
10,297 |
|
|
|
3,950 |
|
| Less: Allowance for doubtful accounts |
|
|
(10,556 |
) |
|
|
(10,533 |
) |
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
562,930 |
|
|
|
|
|
|
|
|
|
|
| Non-current |
|
|
|
|
|
|
|
|
| Long-term loans |
|
W |
|
|
|
|
21,229 |
|
| Long-term other accounts receivable |
|
|
79,468 |
|
|
|
2,334 |
|
| Others |
|
|
2,994 |
|
|
|
2,797 |
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
26,360 |
|
|
|
|
|
|
|
|
|
|
12
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
6. Other Financial Assets
(a) Other financial assets as of September 30, 2015 and December 31, 2014 are as follows:
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
September 30, 2015 |
|
|
December 31, 2014 |
|
| Current |
|
|
|
|
|
|
|
|
| Short term derivatives assets held for trading |
|
W |
|
|
|
|
708 |
|
| Short-term financial instruments (*1,2) |
|
|
2,955,132 |
|
|
|
609,584 |
|
| Cash deposits (*3,4) |
|
|
4,828 |
|
|
|
83,437 |
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
693,729 |
|
|
|
|
|
|
|
|
|
|
| Non-current |
|
|
|
|
|
|
|
|
| Long-term derivatives assets held for trading (*5) |
|
W |
|
|
|
|
9,525 |
|
| Available-for-sale securities (equity instruments) |
|
|
1,509,784 |
|
|
|
1,767,621 |
|
| Available-for-sale securities (others) |
|
|
17,936 |
|
|
|
17,408 |
|
| Cash deposits (*6) |
|
|
33 |
|
|
|
36 |
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
1,794,590 |
|
|
|
|
|
|
|
|
|
|
| (*1) |
Short-term financial instruments amounting to W1,384 million are levied in relation to pending litigations as of September 30, 2015 and December 31, 2014. |
| (*2) |
Short-term financial instruments amounting to W5,200 million are provided as collateral in relation to long-term borrowings from National Forestry Cooperative Federation as of December 31, 2014.
|
| (*3) |
Deposits amounting to W4,828 million and W5,465 million as of September 30, 2015 and December 31, 2014, respectively, are restricted in relation to government assigned
project. |
| (*4) |
As of December 31, 2014, W77,972 million of deposits are provided as collateral for disposal of investments in subsidiaries. |
| (*5) |
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 Steel
Co., Ltd.). Accordingly, the Company has recognized derivatives assets amounting to W47,404 million and W2,088 million, respectively, as of September 30, 2015. |
| (*6) |
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 September 30, 2015
(Unaudited)
(b) Available-for-sale equity securities as of September 30, 2015 and December 31, 2014 are as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
September 30, 2015 |
|
|
December 31, 2014 |
|
| |
|
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 |
|
|
|
|
64,165 |
|
|
|
48,532 |
|
|
|
— |
|
|
|
64,165 |
|
|
|
77,776 |
|
| Nippon Steel & Sumitomo Metal Corporation |
|
|
238,352,000 |
|
|
|
2.51 |
|
|
|
719,622 |
|
|
|
515,207 |
|
|
|
(204,415 |
) |
|
|
— |
|
|
|
515,207 |
|
|
|
659,926 |
|
| Hyundai Heavy Industries Co., Ltd. (*1) |
|
|
1,477,000 |
|
|
|
1.94 |
|
|
|
343,506 |
|
|
|
142,531 |
|
|
|
— |
|
|
|
(200,975 |
) |
|
|
142,531 |
|
|
|
169,855 |
|
| Shinhan Financial group Inc. |
|
|
4,369,881 |
|
|
|
0.92 |
|
|
|
228,778 |
|
|
|
180,913 |
|
|
|
58,277 |
|
|
|
(106,142 |
) |
|
|
180,913 |
|
|
|
194,241 |
|
| KB Financial group Inc. |
|
|
11,590,550 |
|
|
|
3.00 |
|
|
|
536,516 |
|
|
|
408,567 |
|
|
|
12,170 |
|
|
|
(140,119 |
) |
|
|
408,567 |
|
|
|
418,998 |
|
| Seoul Semiconductor Co., Ltd. (*1) |
|
|
591,000 |
|
|
|
1.01 |
|
|
|
24,999 |
|
|
|
8,392 |
|
|
|
— |
|
|
|
(16,607 |
) |
|
|
8,392 |
|
|
|
11,938 |
|
| SAMWONSTEEL Co., Ltd. |
|
|
5,700,000 |
|
|
|
14.25 |
|
|
|
8,930 |
|
|
|
19,922 |
|
|
|
17,395 |
|
|
|
(6,403 |
) |
|
|
19,922 |
|
|
|
23,513 |
|
| Others (10 companies) (*1) |
|
|
|
|
|
|
|
|
|
|
92,110 |
|
|
|
62,256 |
|
|
|
10,527 |
|
|
|
(40,381 |
) |
|
|
62,256 |
|
|
|
64,143 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,970,094 |
|
|
|
1,401,953 |
|
|
|
(57,514 |
) |
|
|
(510,627 |
) |
|
|
1,401,953 |
|
|
|
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 (37 companies) (*2,4) |
|
|
|
|
|
|
|
|
|
|
110,273 |
|
|
|
95,174 |
|
|
|
250 |
|
|
|
(15,349 |
) |
|
|
95,174 |
|
|
|
100,264 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
238,187 |
|
|
|
107,831 |
|
|
|
250 |
|
|
|
(130,606 |
) |
|
|
107,831 |
|
|
|
147,231 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
1,509,784 |
|
|
|
(57,264 |
) |
|
|
(641,233 |
) |
|
|
1,509,784 |
|
|
|
1,767,621 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
During the nine-month period ended September 30, 2015, the Company recognized an additional impairment loss of W27,324 million, W3,546 million, W2,859 million,
W628 million and W17,295 million 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, due to the
continued prolonged decline in the fair value of the shares. |
| (*2) |
During the nine-month period ended September 30, 2015, the Company recognized W17,015 million and W6,554 million of impairment loss on securities of Tuwaurqi Steel Mill and Troika
Foreign Resource Development Fund, respectively, due to the significant decline in the fair value of the shares. |
| (*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 September 30, 2015
(Unaudited)
7. Inventories
Inventories as of September 30, 2015 and December 31, 2014 are as follows:
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
September 30, 2015 |
|
|
December 31, 2014 |
|
| Finished goods |
|
W |
|
|
|
|
901,524 |
|
| Semi-finished goods |
|
|
1,001,436 |
|
|
|
1,207,143 |
|
| By-products |
|
|
10,576 |
|
|
|
21,439 |
|
| Raw materials |
|
|
772,537 |
|
|
|
822,273 |
|
| Fuel and materials |
|
|
535,866 |
|
|
|
510,508 |
|
| Materials-in-transit |
|
|
576,157 |
|
|
|
944,966 |
|
| Others |
|
|
549 |
|
|
|
582 |
|
|
|
|
|
|
|
|
|
|
|
|
|
3,739,917 |
|
|
|
4,408,435 |
|
| Less: Allowance for inventories valuation |
|
|
(12,990 |
) |
|
|
(24,867 |
) |
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
4,383,568 |
|
|
|
|
|
|
|
|
|
|
The amount of losses on valuation of inventories recognized within cost of sales during the nine-month period ended
September 30, 2015 and the year ended December 31, 2014 were W12,990 million and W24,867 million, respectively.
8. Assets Held for Sale
Assets held for sale as of
September 30, 2015 and December 31, 2014 are as follows:
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
September 30, 2015 |
|
|
December 31, 2014 |
|
| Available-for-sale securities (*1) |
|
W |
|
|
|
|
580,062 |
|
| Investments in subsidiaries (*2,3,4,5,6) |
|
|
20,803 |
|
|
|
468,443 |
|
| Property, plant and equipment (*7) |
|
|
25,923 |
|
|
|
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 recognized W95,737 million of impairment loss on assets held for sale since fair value less costs to sell of Nacional Minerios S.A have
decreased during the nine-month period ended September 30, 2015. |
| (*2) |
The Company determined to dispose of 52.2% of its shares of SeAH Changwon Integrated Special Steel (formerly, POSCO Specialty Steel 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 nine-month period ended September 30, 2015 and the Company has recognized
W20,133 million of loss on disposal of the asset held for sale. |
15
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
| (*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 and
classified the investment in subsidiaries of W496,402 million as assets held for sale. Disposal of the asset held for sale was completed during the nine-month period ended September 30, 2015 and the Company has recognized
W346,221 million of gain on disposal of the asset held for sale. |
| (*4) |
The Company determined to dispose of the 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 nine-month period ended September 30, 2015 and the Company recognized
W33,577 million of gain on disposal of assets held for sale. |
| (*5) |
The Company determined to dispose of the its shares of Poreka Co., Ltd., a subsidiary of the Company, to COMM.TOGETHER Co., LTD. and classified the accompanying investment in the subsidiary amounting to
W1,000 million as assets held for sale. Disposal of the asset held for sale was completed during the nine-month period ended September 30, 2015 and the Company has recognized W1,798 million of gain on disposal
of the asset held for sale. |
| (*6) |
The Company determined to liquidate POSCO-Uruguay S.A, a subsidiary of the Company, during the nine-month period ended September 30, 2015 and classified the investment in subsidiaries of W20,803
million as assets held for sale. |
| (*7) |
The Company determined to make the investment in kind of 1 FINEX facilities according to incorporating joint venture, and has signed in MOA with Mideast Integrated Steel Ltd. in India. The Company has classified the
related facilities of W25,892 million as assets held for sale. |
16
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
9. Other Assets
Other current assets and other long-term assets as of September 30, 2015 and December 31, 2014 are as follows:
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
September 30, 2015 |
|
|
December 31, 2014 |
|
| Current |
|
|
|
|
|
|
|
|
| Advance payments |
|
W |
|
|
|
|
9,828 |
|
| Prepaid expenses |
|
|
42,868 |
|
|
|
21,864 |
|
| Others |
|
|
450 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
31,692 |
|
|
|
|
|
|
|
|
|
|
| Non-current |
|
|
|
|
|
|
|
|
| Long-term prepaid expenses |
|
W |
|
|
|
|
6,344 |
|
| Others (*1) |
|
|
188,118 |
|
|
|
126,909 |
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
133,253 |
|
|
|
|
|
|
|
|
|
|
| (*1) |
As of September 30, 2015 and December 31, 2014, the Company recognized assets amounting to W184,328 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 results of the Company’s request for appeal and claim for
rectification are finalized. |
17
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
10. Investments in Subsidiaries, Associates and Joint ventures
(a) Details of subsidiaries and carrying values as of September 30, 2015 and December 31, 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
|
|
|
|
September 30, 2015 |
|
|
December 31, 2014 |
|
| |
|
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 |
|
|
60.11 |
|
|
|
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. (*1) |
|
Korea |
|
Other structural metal
product manufacturing |
|
|
— |
|
|
|
— |
|
|
|
341,293 |
|
| SeAH Changwon Integrated Special Steel (formerly, POSCO Specialty Steel Co., Ltd.) (*2) |
|
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 Co., Ltd. |
|
Korea |
|
Investment in venture
companies |
|
|
95.00 |
|
|
|
103,780 |
|
|
|
103,780 |
|
| POSCO CHEMTECH |
|
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 (*3,4) |
|
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 (11 companies) |
|
|
|
|
|
|
|
|
|
|
162,944 |
|
|
|
134,196 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,100,365 |
|
|
|
8,089,784 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
18
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| [Foreign] |
|
|
|
|
|
|
|
|
|
|
|
|
|
| PT. KRAKATAU POSCO |
|
Indonesia |
|
Steel manufacturing and sales |
|
|
70.00 |
|
|
|
813,431 |
|
|
|
855,110 |
|
| POSCO WA PTY LTD |
|
Australia |
|
Mine development |
|
|
100.00 |
|
|
|
620,284 |
|
|
|
611,248 |
|
| POSCO Maharashtra Steel Private Limited |
|
India |
|
Steel manufacturing and sales |
|
|
100.00 |
|
|
|
488,879 |
|
|
|
465,788 |
|
| POSCO AUSTRALIA PTY LTD |
|
Australia |
|
Raw material sales |
|
|
100.00 |
|
|
|
330,623 |
|
|
|
330,623 |
|
| Zhangjiagang Pohang Stainless Steel Co., Ltd. |
|
China |
|
Stainless steel manufacturing |
|
|
58.60 |
|
|
|
283,845 |
|
|
|
284,392 |
|
| POSCO Thainox Public Company Limited (*4) |
|
Thailand |
|
Stainless steel manufacturing |
|
|
84.93 |
|
|
|
277,468 |
|
|
|
329,756 |
|
| POSCO SS-VINA |
|
Vietnam |
|
Steel manufacturing and sales |
|
|
100.00 |
|
|
|
241,426 |
|
|
|
— |
|
| 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 |
|
|
|
180,069 |
|
|
|
182,110 |
|
| POSCO America Corporation |
|
USA |
|
Trading-steel |
|
|
99.45 |
|
|
|
167,285 |
|
|
|
167,285 |
|
| POSCO-VIETNAM Co., Ltd. |
|
Vietnam |
|
Steel manufacturing |
|
|
100.00 |
|
|
|
160,572 |
|
|
|
156,778 |
|
| POSCO VST CO., LTD. |
|
Vietnam |
|
Stainless steel manufacturing |
|
|
95.65 |
|
|
|
144,573 |
|
|
|
145,049 |
|
| POSCO (Guangdong) Automotive Steel Co., Ltd. |
|
China |
|
Plate steel manufacturing |
|
|
83.64 |
|
|
|
130,751 |
|
|
|
131,051 |
|
| POSCO COATED STEEL (THAILAND) CO., LTD. |
|
Thailand |
|
Plate steel manufacturing |
|
|
100.00 |
|
|
|
121,592 |
|
|
|
90,012 |
|
| POSCO ASSAN TST STEEL INDUSTRY |
|
Turkey |
|
Steel manufacturing and sales |
|
|
60.00 |
|
|
|
92,800 |
|
|
|
95,213 |
|
| POSCO Investment Co., Ltd. |
|
Hong Kong |
|
Finance |
|
|
99.99 |
|
|
|
85,521 |
|
|
|
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 |
|
|
|
57,119 |
|
|
|
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 (*6) |
|
Uruguay |
|
Wood manufacturing and
sales |
|
|
98.11 |
|
|
|
— |
|
|
|
30,243 |
|
| Others (33 companies) |
|
|
|
|
|
|
|
|
|
|
367,829 |
|
|
|
333,211 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,378,480 |
|
|
|
5,167,498 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
13,257,282 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
During the nine-month period ended September 30, 2015, there is objective evidence of impairment due to the significant 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. In September 2015, in order to improve its financial
standing and normalize operation, the associate reached a workout agreement with its Creditor Financial Institutions Committee. As a result, the Company lost its control over POSCO PLANTEC Co., Ltd. and classified its shares as investment in
associate as of September 30, 2015. |
| (*2) |
During the nine-month period ended September 30, 2015, the Company disposed of 52.2% of shares of 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. |
| (*3) |
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.
|
19
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
| (*4) |
As of September 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 18% control premium and disposal cost to the stock price as of September 30, 2015. As a result, the Company recognized an impairment loss of
W12,416 million and W52,288 million, respectively, as carrying values were higher than their recoverable amounts. |
| (*5) |
As of September 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. |
| (*6) |
The Company determined to liquidate POSCO-Uruguay S.A, a subsidiary of the Company, during the nine-month period ended September 30, 2015. The Company recognized an impairment loss of W9,441
million as the carrying value was higher than its recoverable amount as of September 30, 2015 and classified the investment in subsidiaries as assets held for sale. |
20
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
(b) Details of associates and carrying values as of September 30, 2015 and December 31, 2014 are as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
|
|
|
|
September 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 |
|
|
27.18 |
|
|
W |
|
|
|
|
169,106 |
|
| POSCO PLANTEC Co., Ltd. (*1) |
|
Korea |
|
Other structural metal product manufacturing |
|
|
60.84 |
|
|
|
168,526 |
|
|
|
— |
|
| SeAH Changwon Integrated Special Steel (formerly, POSCO Specialty Steel Co., Ltd.) (*2,3,4) |
|
Korea |
|
Manufacture and sale of specialty steel |
|
|
19.94 |
|
|
|
159,978 |
|
|
|
— |
|
| SNNC |
|
Korea |
|
STS material manufacturing and sales |
|
|
49.00 |
|
|
|
100,655 |
|
|
|
100,655 |
|
| Others (5 companies) |
|
|
|
|
|
|
|
|
|
|
24,847 |
|
|
|
21,867 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
623,112 |
|
|
|
291,628 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| [Foreign] |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Nickel Mining Company SAS |
|
New Caledonia |
|
Raw material manufacturing and sales |
|
|
49.00 |
|
|
|
189,197 |
|
|
|
189,197 |
|
| 7623704 Canada Inc. (*2) |
|
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 (6 companies) |
|
|
|
|
|
|
|
|
|
|
31,157 |
|
|
|
31,804 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
355,698 |
|
|
|
356,345 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
647,973 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
In September 2015, in order to improve its financial standing and normalize operation, the associate reached a workout agreement with its Creditor Financial Institutions Committee. As a result, the Company lost its
control over POSCO PLANTEC Co., Ltd. and classified its shares as investment in associate as of September 30, 2015. |
| (*2) |
As of September 30, 2015, it was classified as an associate in spite of its less than 20% of ownership since it is determined to have significant influence over the investee when considering its structure of the
Board of Directors. |
| (*3) |
During the nine-month period ended September 30, 2015, POSCO Specialty Steel Co., Ltd. changed its corporate name to SeAH Changwon Integrated Special Steel. |
| (*4) |
As of September 30, 2015, there is objective evidence of impairment including receipt of dividend upon disposal contract of SeAH Changwon Integrated Special Steel. (formerly, POSCO Specialty Steel 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 September 30, 2015. |
21
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
(c) Details of joint ventures and carrying values as of September 30, 2015 and December 31, 2014
are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
|
|
|
|
September 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 |
|
|
|
488,592 |
|
|
|
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 (4 companies) |
|
|
|
|
|
|
|
|
|
|
110,004 |
|
|
|
114,710 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
2,273,636 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
As of September 30, 2015 and December 31, 2014, the entire investment in the joint venture is provided as collateral in relation to loan from project financing of the joint venture. |
11. Investment Property, Net
Changes in the carrying
value of investment property for the nine-month period ended September 30, 2015 and the year ended December 31, 2014 were as follows:
1) For the nine-month period ended September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Beginning |
|
|
Acquisitions |
|
|
Depreciation (*1) |
|
|
Transfer (*2) |
|
|
Ending |
|
| Land |
|
W |
|
|
|
|
— |
|
|
|
— |
|
|
|
(463 |
) |
|
|
35,557 |
|
| Buildings |
|
|
50,112 |
|
|
|
146 |
|
|
|
(1,788 |
) |
|
|
(631 |
) |
|
|
47,839 |
|
| Structures |
|
|
4,005 |
|
|
|
— |
|
|
|
(124 |
) |
|
|
(46 |
) |
|
|
3,835 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
146 |
|
|
|
(1,912 |
) |
|
|
(1,140 |
) |
|
|
87,231 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*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. |
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. |
22
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
12. Property, Plant and Equipment, Net
Changes in the carrying value of property, plant and equipment for the nine-month period ended September 30, 2015 and the year ended December 31,
2014 were as follows:
1) For the nine-month period ended September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Beginning |
|
|
Acquisitions |
|
|
Disposals |
|
|
Depreciation |
|
|
Impairment (*1) |
|
|
Others (*2) |
|
|
Ending |
|
| Land |
|
W |
|
|
|
|
— |
|
|
|
(3,869 |
) |
|
|
— |
|
|
|
— |
|
|
|
(4,410 |
) |
|
|
1,412,715 |
|
| Buildings |
|
|
2,760,842 |
|
|
|
2,271 |
|
|
|
(2,640 |
) |
|
|
(182,238 |
) |
|
|
(7,926 |
) |
|
|
38,276 |
|
|
|
2,608,585 |
|
| Structures |
|
|
2,612,553 |
|
|
|
1,641 |
|
|
|
(1,978 |
) |
|
|
(144,516 |
) |
|
|
(499 |
) |
|
|
59,729 |
|
|
|
2,526,930 |
|
| Machinery and equipment |
|
|
14,503,266 |
|
|
|
50,549 |
|
|
|
(24,185 |
) |
|
|
(1,185,402 |
) |
|
|
(59,700 |
) |
|
|
934,768 |
|
|
|
14,219,296 |
|
| Vehicles |
|
|
12,953 |
|
|
|
834 |
|
|
|
— |
|
|
|
(4,494 |
) |
|
|
— |
|
|
|
2,493 |
|
|
|
11,786 |
|
| Tools |
|
|
23,324 |
|
|
|
2,062 |
|
|
|
— |
|
|
|
(8,451 |
) |
|
|
— |
|
|
|
1,816 |
|
|
|
18,751 |
|
| Furniture and fixtures |
|
|
37,584 |
|
|
|
1,299 |
|
|
|
(9 |
) |
|
|
(11,901 |
) |
|
|
(18 |
) |
|
|
3,450 |
|
|
|
30,405 |
|
| Finance lease assets |
|
|
6,370 |
|
|
|
— |
|
|
|
— |
|
|
|
(478 |
) |
|
|
— |
|
|
|
— |
|
|
|
5,892 |
|
| Construction-in-progress |
|
|
945,329 |
|
|
|
946,763 |
|
|
|
— |
|
|
|
— |
|
|
|
(577 |
) |
|
|
(1,181,728 |
) |
|
|
709,787 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W22,323,215 |
|
|
|
1,005,419 |
|
|
|
(32,681 |
) |
|
|
(1,537,480 |
) |
|
|
(68,720 |
) |
|
|
(145,606 |
) |
|
|
21,544,147 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
The Company has recognized an impairment loss since recoverable amounts on magnesium smelting plant in Gangneung and facilities which are related to the project for replacement deteriorated hot-rolling mill (1st and 2nd) in Pohang and electric furnace of high mill (1st) in Pohang are less than
their carrying values for the nine-month period ended September 30, 2015. |
| (*2) |
Represents assets transferred from construction-in-progress to intangible assets and other property, plant and equipment and assets transferred from property, plant and equipment to 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 in subsidiary (W558,915 million) and other property, plant and equipment, from investment property, to intangible assets, and to
assets held-for-sale. |
23
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
13. Intangible Assets, Net
Changes in the carrying value of intangible assets for the nine-month period ended September 30, 2015 and the year ended December 31, 2014 were as
follows:
1) For the nine-month period ended September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Beginning |
|
|
Acquisitions |
|
|
Disposals |
|
|
Amortization |
|
|
Transfer (*2) |
|
|
Ending |
|
| Intellectual property rights |
|
W |
|
|
|
|
— |
|
|
|
— |
|
|
|
(2,074 |
) |
|
|
4,279 |
|
|
|
19,799 |
|
| Membership (*1) |
|
|
53,154 |
|
|
|
2,861 |
|
|
|
(3,276 |
) |
|
|
— |
|
|
|
(266 |
) |
|
|
52,473 |
|
| Development expense |
|
|
127,941 |
|
|
|
121 |
|
|
|
— |
|
|
|
(35,866 |
) |
|
|
11,264 |
|
|
|
103,460 |
|
| Port facilities usage rights |
|
|
162,028 |
|
|
|
— |
|
|
|
— |
|
|
|
(8,049 |
) |
|
|
110,346 |
|
|
|
264,325 |
|
| Construction-in-progress |
|
|
16,756 |
|
|
|
23,736 |
|
|
|
— |
|
|
|
— |
|
|
|
(14,904 |
) |
|
|
25,588 |
|
| Other intangible assets |
|
|
26,434 |
|
|
|
345 |
|
|
|
— |
|
|
|
(6,036 |
) |
|
|
840 |
|
|
|
21,583 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
27,063 |
|
|
|
(3,276 |
) |
|
|
(52,025 |
) |
|
|
111,559 |
|
|
|
487,228 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*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 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. |
24
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
14. Borrowings
(a) Borrowings as of September 30, 2015 and December 31, 2014 are as follows:
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
September 30, 2015 |
|
|
December 31, 2014 |
|
| Short-term borrowings |
|
|
|
|
|
|
|
|
| Short-term borrowings |
|
W |
|
|
|
|
— |
|
| Current portion of long-term borrowings |
|
|
225,764 |
|
|
|
236,553 |
|
| Current portion of loans from foreign financial institutions |
|
|
420 |
|
|
|
418 |
|
| Current portion of debentures |
|
|
2,158,350 |
|
|
|
1,000,000 |
|
| Less : Current portion of discount on debentures issued |
|
|
(1,046 |
) |
|
|
(681 |
) |
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
1,236,290 |
|
|
|
|
|
|
|
|
|
|
| Long-term borrowings |
|
|
|
|
|
|
|
|
| Long-term borrowings |
|
W |
|
|
|
|
447,437 |
|
| Loans from foreign financial institutions |
|
|
210 |
|
|
|
627 |
|
| Debentures |
|
|
3,433,848 |
|
|
|
4,871,627 |
|
| Less : Discount on debentures issued |
|
|
(15,635 |
) |
|
|
(18,764 |
) |
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
5,300,927 |
|
|
|
|
|
|
|
|
|
|
(b) Short-term borrowings as of September 30, 2015 and December 31, 2014 are as follows:
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
September 30, 2015 |
|
|
December 31, 2014 |
|
| Associates borrowings |
|
W |
|
|
|
|
— |
|
| Transfers of account receivables that do not qualify for derecognition |
|
|
790 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
(c) Current portion of long-term borrowings as of September 30, 2015 and December 31, 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Lenders |
|
Issuance date |
|
Maturity date |
|
Annual
interest rate (%) |
|
September 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 |
|
2016.09.23~
2017.07.26 |
|
4.09~4.50 |
|
|
210,232 |
|
|
|
221,021 |
|
| Loans from foreign financial institutions |
|
NATIXIS (*1) |
|
1986.03.31 |
|
2017.03.31 |
|
2.00 |
|
|
420 |
|
|
|
418 |
|
| Debentures |
|
Domestic debentures 296 and others |
|
2010.11.16~
2011.09.07 |
|
2015.11.16~
2016.09.07 |
|
3.78~4.56 |
|
|
1,799,148 |
|
|
|
999,319 |
|
| Debentures |
|
Euro Bond 1st |
|
2006.08.10 |
|
2016.08.10 |
|
5.88 |
|
|
358,156 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
1,236,290 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
Korea Development Bank has provided guarantees to the Company for loans from foreign financial institutions. |
25
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
(d) Long-term borrowings excluding current portion, as of September 30, 2015 and December 31, 2014
are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Lenders |
|
Issuance date |
|
Maturity date |
|
Annual
interest rate (%) |
|
September 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 |
|
|
|
|
55,662 |
|
| Borrowings |
|
Korea National Oil Corporation |
|
2007.12.27~
2013.12.30 |
|
2022.06.25~
2026.12.29 |
|
3 year
Government bond |
|
|
15,386 |
|
|
|
14,159 |
|
| Borrowings |
|
Export-Import Bank of Korea |
|
2010.07.26~
2013.07.03 |
|
2017.07.26~
2018.03.23 |
|
4.09~4.50 |
|
|
200,123 |
|
|
|
377,616 |
|
| Loans from foreign financial institutions |
|
NATIXIS (*1) |
|
1986.03.31 |
|
2017.03.31 |
|
2.00 |
|
|
210 |
|
|
|
627 |
|
| Debentures |
|
Domestic debentures 304-1 and others |
|
2011.11.28~
2013.10.04 |
|
2018.11.28~
2023.10.04 |
|
3.35~4.12 |
|
|
997,619 |
|
|
|
2,295,585 |
|
| Debentures |
|
Samurai Bond 11 and others |
|
2010.10.28~
2013.12.11 |
|
2016.10.20~
2021.12.22 |
|
0.93~5.25 |
|
|
2,420,594 |
|
|
|
2,557,278 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
5,300,927 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
Korea Development Bank has provided guarantees to the Company for loans from foreign financial institutions. |
15. Other Payables
Other payables as of
September 30, 2015 and December 31, 2014 are as follows:
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
September 30, 2015 |
|
|
December 31, 2014 |
|
| Current |
|
|
|
|
|
|
|
|
| Accounts payable |
|
W |
|
|
|
|
627,337 |
|
| Accrued expenses |
|
|
354,861 |
|
|
|
386,014 |
|
| Dividend payable |
|
|
9,325 |
|
|
|
9,523 |
|
| Finance lease liabilities |
|
|
1,356 |
|
|
|
1,218 |
|
| Withholdings |
|
|
9,634 |
|
|
|
8,404 |
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
1,032,496 |
|
|
|
|
|
|
|
|
|
|
| Non-current |
|
|
|
|
|
|
|
|
| Long-term accounts payable |
|
W |
|
|
|
|
54,131 |
|
| Long-term accrued expenses |
|
|
23,600 |
|
|
|
22,767 |
|
| Finance lease liabilities |
|
|
3,287 |
|
|
|
4,006 |
|
| Long-term withholdings |
|
|
7,121 |
|
|
|
7,903 |
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
88,807 |
|
|
|
|
|
|
|
|
|
|
26
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
16. Other Financial Liabilities
Other financial liabilities as of September 30, 2015 and December 31, 2014 are as follows:
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
September 30, 2015 |
|
|
December 31, 2014 |
|
| Current |
|
|
|
|
|
|
|
|
| Derivative liabilities (*1) |
|
W |
|
|
|
|
— |
|
| Financial guarantee liabilities |
|
|
18,838 |
|
|
|
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 Steel
Co., Ltd.). Accordingly, the Company has recognized derivative liabilities amounting to W15,616 million as of September 30, 2015. |
17. Provisions
| (a) |
Provisions as of September 30, 2015 and December 31, 2014 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
September 30, 2015 |
|
|
December 31, 2014 |
|
| |
|
Current |
|
|
Non-current |
|
|
Current |
|
|
Non-current |
|
| Provision for bonus payments (*1) |
|
W |
|
|
|
|
— |
|
|
|
8,423 |
|
|
|
— |
|
| Provision for restoration (*2) |
|
|
16,754 |
|
|
|
24,024 |
|
|
|
39,336 |
|
|
|
31,063 |
|
| Provision for litigation (*3) |
|
|
— |
|
|
|
411 |
|
|
|
— |
|
|
|
411 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
24,435 |
|
|
|
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 currently available technologies and materials to recover the land. In addition, the Company has applied a discount rate of 2.62% 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 September 30, 2015. |
27
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
| (b) |
Changes in provisions for the nine-month period ended September 30, 2015 and the year ended December 31, 2014 were as follows: |
1) For the nine-month period ended September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Beginning |
|
|
Increase |
|
|
Utilization |
|
|
Ending |
|
| Provision for bonus payments |
|
W |
|
|
|
|
10,157 |
|
|
|
(14,385 |
) |
|
|
4,195 |
|
| Provision for restoration |
|
|
70,399 |
|
|
|
2,045 |
|
|
|
(31,666 |
) |
|
|
40,778 |
|
| Provision for litigation |
|
|
411 |
|
|
|
— |
|
|
|
— |
|
|
|
411 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
12,202 |
|
|
|
(46,051 |
) |
|
|
45,384 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 nine-month periods ended September 30, 2015 and 2014 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
For the three-month periods
ended September 30 |
|
|
For the nine-month periods
ended September 30 |
|
| |
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
| Expense related to post-employment benefit plans under defined contribution plans |
|
W |
|
|
|
|
4,433 |
|
|
|
15,406 |
|
|
|
13,783 |
|
| (b) |
Defined benefit plans |
| 1) |
The amounts recognized in relation to net defined benefit liabilities in the statements of financial position as of September 30, 2015 and December 31, 2014 are as follows: |
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
September 30, 2015 |
|
|
December 31, 2014 |
|
| Present value of funded obligations |
|
W |
|
|
|
|
1,017,164 |
|
| Fair value of plan assets |
|
|
(941,876 |
) |
|
|
(931,006 |
) |
|
|
|
|
|
|
|
|
|
| Net defined benefit liabilities |
|
W |
|
|
|
|
86,158 |
|
|
|
|
|
|
|
|
|
|
28
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
| 2) |
Changes in present value of defined benefit obligations for the nine-month period ended September 30, 2015 and the year ended December 31, 2014 were as follows: |
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
September 30, 2015 |
|
|
December 31, 2014 |
|
| Defined benefit obligation at the beginning of period |
|
W |
|
|
|
|
905,918 |
|
| Current service costs |
|
|
90,201 |
|
|
|
113,688 |
|
| Interest costs |
|
|
22,307 |
|
|
|
32,595 |
|
| Remeasurement |
|
|
39,044 |
|
|
|
47,604 |
|
| Transfer-in |
|
|
283 |
|
|
|
1,959 |
|
| Benefits paid |
|
|
(69,696 |
) |
|
|
(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 nine-month period ended September 30, 2015 and the year ended December 31, 2014 were as follows: |
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
September 30, 2015 |
|
|
December 31, 2014 |
|
| Fair value of plan assets at the beginning of period |
|
W |
|
|
|
|
805,268 |
|
| Interest on plan assets |
|
|
21,997 |
|
|
|
31,911 |
|
| Remeasurement of plan assets |
|
|
(5,949 |
) |
|
|
(8,417 |
) |
| Contributions to plan assets |
|
|
50,000 |
|
|
|
146,000 |
|
| Transfer-in |
|
|
283 |
|
|
|
1,959 |
|
| Benefits paid |
|
|
(55,461 |
) |
|
|
(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 for the three-month and nine-month periods ended September 30, 2015 and 2014 were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
For the three-month periods |
|
|
For the nine-month periods |
|
| (in millions of Won) |
|
ended September 30 |
|
|
ended September 30 |
|
| |
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
| Current service costs |
|
W |
|
|
|
|
27,769 |
|
|
|
90,201 |
|
|
|
85,855 |
|
| Net interest costs |
|
|
104 |
|
|
|
171 |
|
|
|
310 |
|
|
|
513 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
27,940 |
|
|
|
90,511 |
|
|
|
86,368 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
29
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
19. Other Liabilities
Other liabilities as of September 30, 2015 and December 31, 2014 are as follows:
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
September 30, 2015 |
|
|
December 31, 2014 |
|
| Current |
|
|
|
|
|
|
|
|
| Advances received |
|
W |
|
|
|
|
88,880 |
|
| Withholdings |
|
|
50,237 |
|
|
|
18,417 |
|
| Unearned revenue |
|
|
2,000 |
|
|
|
1,211 |
|
|
|
|
|
|
|
|
|
|
|
|
|
58,483 |
|
|
|
108,508 |
|
|
|
|
|
|
|
|
|
|
| Non-current |
|
|
|
|
|
|
|
|
| Unearned revenue |
|
W |
|
|
|
|
234 |
|
20. Financial Instruments
| (a) |
Classification of financial instruments |
| |
1) |
Financial assets as of September 30, 2015 and December 31, 2014 are as follows: |
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
September 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 |
|
|
1,527,720 |
|
|
|
1,785,029 |
|
| Loans and receivables |
|
|
7,875,391 |
|
|
|
6,024,798 |
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
7,820,060 |
|
|
|
|
|
|
|
|
|
|
| |
2) |
Financial liabilities as of September 30, 2015 and December 31, 2014 are as follows: |
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
September 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 |
|
|
671,774 |
|
|
|
777,401 |
|
| Borrowings |
|
|
6,079,418 |
|
|
|
6,537,217 |
|
| Financial guarantee liabilities (*1) |
|
|
104,654 |
|
|
|
59,810 |
|
| Others |
|
|
846,060 |
|
|
|
1,036,487 |
|
|
|
|
|
|
|
|
|
|
|
|
|
7,701,906 |
|
|
|
8,410,915 |
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
8,410,915 |
|
|
|
|
|
|
|
|
|
|
30
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
| (*1) |
Financial liabilities were recognized in connection with financial guarantee contracts as of September 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 |
|
|
|
41,808 |
|
|
|
USD |
|
|
|
35,000,000 |
|
|
|
41,808 |
|
| Automotive Steel Co., Ltd. |
|
BOA |
|
|
USD |
|
|
|
30,000,000 |
|
|
|
35,835 |
|
|
|
USD |
|
|
|
30,000,000 |
|
|
|
35,835 |
|
| Zhangjiagang Pohang |
|
MIZUHO |
|
|
USD |
|
|
|
50,000,000 |
|
|
|
59,725 |
|
|
|
USD |
|
|
|
50,000,000 |
|
|
|
59,725 |
|
| Stainless Steel Co., Ltd. |
|
Credit Agricole |
|
|
USD |
|
|
|
50,000,000 |
|
|
|
59,725 |
|
|
|
USD |
|
|
|
50,000,000 |
|
|
|
59,725 |
|
|
|
BTMU |
|
|
USD |
|
|
|
30,000,000 |
|
|
|
35,835 |
|
|
|
USD |
|
|
|
30,000,000 |
|
|
|
35,835 |
|
| POSCO Maharashtra |
|
Export-Import Bank of Korea |
|
|
USD |
|
|
|
193,000,000 |
|
|
|
230,539 |
|
|
|
USD |
|
|
|
187,800,000 |
|
|
|
224,327 |
|
| Steel Private Limited |
|
DBS |
|
|
USD |
|
|
|
100,000,000 |
|
|
|
119,450 |
|
|
|
USD |
|
|
|
100,000,000 |
|
|
|
119,450 |
|
|
|
HSBC |
|
|
USD |
|
|
|
80,000,000 |
|
|
|
95,560 |
|
|
|
USD |
|
|
|
68,000,000 |
|
|
|
81,226 |
|
|
|
SCB |
|
|
USD |
|
|
|
73,069,000 |
|
|
|
87,281 |
|
|
|
USD |
|
|
|
57,069,000 |
|
|
|
68,169 |
|
|
|
Citi |
|
|
USD |
|
|
|
60,000,000 |
|
|
|
71,670 |
|
|
|
USD |
|
|
|
48,000,000 |
|
|
|
57,336 |
|
|
|
ING |
|
|
USD |
|
|
|
30,000,000 |
|
|
|
35,835 |
|
|
|
USD |
|
|
|
18,000,000 |
|
|
|
21,501 |
|
|
|
KDB Bank |
|
|
USD |
|
|
|
30,000,000 |
|
|
|
35,835 |
|
|
|
USD |
|
|
|
30,000,000 |
|
|
|
35,835 |
|
| POSCO ASSAN TST STEEL INDUSTRY |
|
SMBC |
|
|
USD |
|
|
|
71,392,500 |
|
|
|
85,278 |
|
|
|
USD |
|
|
|
57,114,000 |
|
|
|
68,223 |
|
|
|
KDB Bank |
|
|
USD |
|
|
|
45,000,000 |
|
|
|
53,753 |
|
|
|
USD |
|
|
|
36,000,000 |
|
|
|
43,002 |
|
|
|
ING |
|
|
USD |
|
|
|
45,000,000 |
|
|
|
53,753 |
|
|
|
USD |
|
|
|
36,000,000 |
|
|
|
43,002 |
|
|
|
HSBC |
|
|
USD |
|
|
|
27,000,000 |
|
|
|
32,252 |
|
|
|
USD |
|
|
|
21,600,000 |
|
|
|
25,801 |
|
| POSCO Electrical Steel India Private Limited |
|
ING |
|
|
USD |
|
|
|
50,000,000 |
|
|
|
59,725 |
|
|
|
USD |
|
|
|
50,000,000 |
|
|
|
59,725 |
|
|
|
SCB |
|
|
USD |
|
|
|
33,784,000 |
|
|
|
40,355 |
|
|
|
USD |
|
|
|
33,784,000 |
|
|
|
40,355 |
|
| POSCO Investment Co., Ltd. |
|
HSBC |
|
|
USD |
|
|
|
50,000,000 |
|
|
|
59,725 |
|
|
|
USD |
|
|
|
50,000,000 |
|
|
|
59,725 |
|
|
|
JP Morgan |
|
|
USD |
|
|
|
50,000,000 |
|
|
|
59,725 |
|
|
|
USD |
|
|
|
50,000,000 |
|
|
|
59,725 |
|
|
|
MIZUHO |
|
|
USD |
|
|
|
50,000,000 |
|
|
|
59,725 |
|
|
|
USD |
|
|
|
50,000,000 |
|
|
|
59,725 |
|
|
|
NAB |
|
|
USD |
|
|
|
50,000,000 |
|
|
|
59,725 |
|
|
|
USD |
|
|
|
50,000,000 |
|
|
|
59,725 |
|
|
|
BOA |
|
|
USD |
|
|
|
45,000,000 |
|
|
|
53,753 |
|
|
|
USD |
|
|
|
29,500,000 |
|
|
|
35,238 |
|
|
|
BTMU |
|
|
USD |
|
|
|
30,000,000 |
|
|
|
35,835 |
|
|
|
USD |
|
|
|
14,500,000 |
|
|
|
17,320 |
|
|
|
ING |
|
|
USD |
|
|
|
30,000,000 |
|
|
|
35,835 |
|
|
|
USD |
|
|
|
14,500,000 |
|
|
|
17,320 |
|
|
|
SMBC |
|
|
USD |
|
|
|
30,000,000 |
|
|
|
35,835 |
|
|
|
USD |
|
|
|
14,500,000 |
|
|
|
17,320 |
|
| POSCO MEXICO S.A. DE |
|
SMBC |
|
|
USD |
|
|
|
109,725,000 |
|
|
|
131,067 |
|
|
|
USD |
|
|
|
109,725,000 |
|
|
|
131,067 |
|
|
|
MIZUHO |
|
|
USD |
|
|
|
45,000,000 |
|
|
|
53,753 |
|
|
|
USD |
|
|
|
45,000,000 |
|
|
|
53,753 |
|
|
|
BOA |
|
|
USD |
|
|
|
40,000,000 |
|
|
|
47,780 |
|
|
|
USD |
|
|
|
40,000,000 |
|
|
|
47,780 |
|
|
|
HSBC |
|
|
USD |
|
|
|
40,000,000 |
|
|
|
47,780 |
|
|
|
USD |
|
|
|
40,000,000 |
|
|
|
47,780 |
|
| POSCO SS-VINA |
|
Export-Import Bank of Korea |
|
|
USD |
|
|
|
249,951,050 |
|
|
|
298,567 |
|
|
|
USD |
|
|
|
249,951,050 |
|
|
|
298,567 |
|
|
|
BOA |
|
|
USD |
|
|
|
40,000,000 |
|
|
|
47,780 |
|
|
|
USD |
|
|
|
40,000,000 |
|
|
|
47,780 |
|
|
|
BTMU |
|
|
USD |
|
|
|
40,000,000 |
|
|
|
47,780 |
|
|
|
USD |
|
|
|
40,000,000 |
|
|
|
47,780 |
|
|
|
DBS |
|
|
USD |
|
|
|
24,400,000 |
|
|
|
29,146 |
|
|
|
USD |
|
|
|
24,400,000 |
|
|
|
29,146 |
|
| POSCO-VIETNAM Co., Ltd. |
|
Export-Import Bank of Korea |
|
|
USD |
|
|
|
196,000,000 |
|
|
|
234,122 |
|
|
|
USD |
|
|
|
196,000,000 |
|
|
|
234,122 |
|
| POSCO VST Co., Ltd. |
|
ANZ |
|
|
USD |
|
|
|
25,000,000 |
|
|
|
29,863 |
|
|
|
USD |
|
|
|
15,625,000 |
|
|
|
18,664 |
|
|
|
HSBC |
|
|
USD |
|
|
|
20,000,000 |
|
|
|
23,890 |
|
|
|
USD |
|
|
|
12,500,000 |
|
|
|
14,931 |
|
|
|
MIZUHO |
|
|
USD |
|
|
|
20,000,000 |
|
|
|
23,890 |
|
|
|
USD |
|
|
|
12,500,000 |
|
|
|
14,931 |
|
| PT. KRAKATAU POSCO |
|
Export-Import Bank of Korea |
|
|
USD |
|
|
|
567,000,000 |
|
|
|
677,282 |
|
|
|
USD |
|
|
|
524,391,304 |
|
|
|
626,385 |
|
|
|
SMBC |
|
|
USD |
|
|
|
140,000,000 |
|
|
|
167,230 |
|
|
|
USD |
|
|
|
129,652,174 |
|
|
|
154,870 |
|
|
|
BTMU |
|
|
USD |
|
|
|
119,000,000 |
|
|
|
142,146 |
|
|
|
USD |
|
|
|
108,652,174 |
|
|
|
129,785 |
|
|
|
SCB |
|
|
USD |
|
|
|
107,800,000 |
|
|
|
128,767 |
|
|
|
USD |
|
|
|
100,252,174 |
|
|
|
119,751 |
|
|
|
MIZUHO |
|
|
USD |
|
|
|
105,000,000 |
|
|
|
125,423 |
|
|
|
USD |
|
|
|
95,869,565 |
|
|
|
114,516 |
|
|
|
Credit Suisse AG |
|
|
USD |
|
|
|
91,000,000 |
|
|
|
108,700 |
|
|
|
USD |
|
|
|
83,086,957 |
|
|
|
99,247 |
|
|
|
HSBC |
|
|
USD |
|
|
|
91,000,000 |
|
|
|
108,700 |
|
|
|
USD |
|
|
|
83,086,957 |
|
|
|
99,247 |
|
|
|
ANZ |
|
|
USD |
|
|
|
73,500,000 |
|
|
|
87,796 |
|
|
|
USD |
|
|
|
68,934,783 |
|
|
|
82,343 |
|
|
|
BOA |
|
|
USD |
|
|
|
35,000,000 |
|
|
|
41,808 |
|
|
|
USD |
|
|
|
31,956,522 |
|
|
|
38,172 |
|
|
|
CTBC |
|
|
USD |
|
|
|
21,000,000 |
|
|
|
25,085 |
|
|
|
USD |
|
|
|
19,173,913 |
|
|
|
22,903 |
|
| POSCO COATED STEEL (THAILAND) CO., LTD. |
|
The Great & Co Co., Ltd. (SPC) |
|
|
THB |
|
|
|
5,501,000,000 |
|
|
|
180,323 |
|
|
|
THB |
|
|
|
5,501,000,000 |
|
|
|
180,323 |
|
| LLP POSUK Titanium |
|
KB Bank |
|
|
USD |
|
|
|
15,000,000 |
|
|
|
17,918 |
|
|
|
USD |
|
|
|
15,000,000 |
|
|
|
17,918 |
|
| CSP - Compania |
|
Export-Import Bank of Korea |
|
|
USD |
|
|
|
182,000,000 |
|
|
|
217,399 |
|
|
|
USD |
|
|
|
161,460,798 |
|
|
|
192,865 |
|
| Siderurgica do Pecem |
|
Santander |
|
|
USD |
|
|
|
47,600,000 |
|
|
|
56,858 |
|
|
|
USD |
|
|
|
42,332,179 |
|
|
|
50,566 |
|
|
|
BNP |
|
|
USD |
|
|
|
47,600,000 |
|
|
|
56,858 |
|
|
|
USD |
|
|
|
42,332,179 |
|
|
|
50,566 |
|
|
|
MIZUHO |
|
|
USD |
|
|
|
47,600,000 |
|
|
|
56,858 |
|
|
|
USD |
|
|
|
42,332,179 |
|
|
|
50,566 |
|
|
|
HSBC |
|
|
USD |
|
|
|
35,200,000 |
|
|
|
42,046 |
|
|
|
USD |
|
|
|
31,081,521 |
|
|
|
37,127 |
|
|
|
Credit Agricole |
|
|
USD |
|
|
|
20,000,000 |
|
|
|
23,890 |
|
|
|
USD |
|
|
|
17,860,946 |
|
|
|
21,335 |
|
|
|
SOCIETE GENERALE |
|
|
USD |
|
|
|
20,000,000 |
|
|
|
23,890 |
|
|
|
USD |
|
|
|
17,860,946 |
|
|
|
21,335 |
|
|
|
KfW |
|
|
USD |
|
|
|
20,000,000 |
|
|
|
23,890 |
|
|
|
USD |
|
|
|
17,860,946 |
|
|
|
21,335 |
|
|
|
BNDES |
|
|
BRL |
|
|
|
464,060,000 |
|
|
|
136,652 |
|
|
|
BRL |
|
|
|
274,129,418 |
|
|
|
80,723 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
USD |
|
|
|
4,003,621,550 |
|
|
|
4,782,334 |
|
|
|
USD |
|
|
|
3,670,246,267 |
|
|
|
4,384,111 |
|
|
|
|
|
|
BRL |
|
|
|
464,060,000 |
|
|
|
136,652 |
|
|
|
BRL |
|
|
|
274,129,418 |
|
|
|
80,723 |
|
|
|
|
|
|
THB |
|
|
|
5,501,000,000 |
|
|
|
180,323 |
|
|
|
THB |
|
|
|
5,501,000,000 |
|
|
|
180,323 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
| 3) |
Finance income and costs by category of financial instrument for the nine-month periods ended September 30, 2015 and 2014 were as follows: |
① September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Finance income and costs |
|
|
|
|
| |
|
Interest
income
(expense) |
|
|
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 |
|
|
|
|
— |
|
|
|
— |
|
|
|
(438 |
) |
|
|
— |
|
|
|
7,733 |
|
|
|
7,295 |
|
|
|
— |
|
| Available-for-sale financial assets |
|
|
34 |
|
|
|
43,148 |
|
|
|
— |
|
|
|
54 |
|
|
|
(75,221 |
) |
|
|
— |
|
|
|
(31,985 |
) |
|
|
(137,342 |
) |
| Loans and receivables |
|
|
66,904 |
|
|
|
— |
|
|
|
95,698 |
|
|
|
— |
|
|
|
— |
|
|
|
(419 |
) |
|
|
162,183 |
|
|
|
— |
|
| Financial liabilities at fair value through profit or loss |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6,579 |
|
|
|
6,579 |
|
|
|
— |
|
| Financial liabilities at amortized cost |
|
|
(183,653 |
) |
|
|
— |
|
|
|
(299,250 |
) |
|
|
— |
|
|
|
— |
|
|
|
2,025 |
|
|
|
(480,878 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
43,148 |
|
|
|
(203,552 |
) |
|
|
(384 |
) |
|
|
(75,221 |
) |
|
|
15,918 |
|
|
|
(336,806 |
) |
|
|
(137,342 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
Financial income in the statement of comprehensive income includes the dividends from subsidiaries, associates and joint ventures of W274,257 million for the nine-month period ended September 30,
2015. |
② September 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Finance income and costs |
|
|
|
|
| |
|
Interest
income
(expense) |
|
|
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 |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,972 |
|
|
|
2,972 |
|
|
|
— |
|
| Available-for-sale financial assets |
|
|
290 |
|
|
|
36,149 |
|
|
|
— |
|
|
|
198,717 |
|
|
|
(183,782 |
) |
|
|
— |
|
|
|
51,374 |
|
|
|
(362,569 |
) |
| Loans and receivables |
|
|
65,041 |
|
|
|
— |
|
|
|
22,558 |
|
|
|
— |
|
|
|
— |
|
|
|
(523 |
) |
|
|
87,076 |
|
|
|
— |
|
| Financial liabilities at fair value through profit or loss |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(24,956 |
) |
|
|
— |
|
|
|
(4,586 |
) |
|
|
(29,542 |
) |
|
|
— |
|
| Financial liabilities at amortized cost |
|
|
(188,746 |
) |
|
|
— |
|
|
|
101,996 |
|
|
|
(38,596 |
) |
|
|
— |
|
|
|
(130 |
) |
|
|
(125,476 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
|
|
|
|
36,149 |
|
|
|
124,554 |
|
|
|
135,165 |
|
|
|
(183,782 |
) |
|
|
(2,267 |
) |
|
|
(13,596 |
) |
|
|
(362,569 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
Financial income in the statement of comprehensive income includes the dividends from subsidiaries, associates and joint ventures of W105,273 million for the nine-month period ended September 30,
2014. |
32
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
| 4) |
Finance income and costs by category of financial instrument for the three-month periods ended September 30, 2015 and 2014 were as follows: |
① September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Finance income and costs |
|
|
|
|
| |
|
Interest
income
(expense) |
|
|
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 |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,786 |
|
|
|
2,786 |
|
|
|
— |
|
| Available-for-sale financial assets |
|
|
14 |
|
|
|
364 |
|
|
|
— |
|
|
|
71 |
|
|
|
(23,265 |
) |
|
|
— |
|
|
|
(22,816 |
) |
|
|
(165,721 |
) |
| Loans and receivables |
|
|
25,010 |
|
|
|
— |
|
|
|
70,450 |
|
|
|
— |
|
|
|
— |
|
|
|
(198 |
) |
|
|
95,262 |
|
|
|
— |
|
| Financial liabilities at fair value through profit or loss |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,093 |
|
|
|
1,093 |
|
|
|
— |
|
| Financial liabilities at amortized cost |
|
|
(61,204 |
) |
|
|
— |
|
|
|
(241,604 |
) |
|
|
— |
|
|
|
— |
|
|
|
2,072 |
|
|
|
(300,736 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
364 |
|
|
|
(171,154 |
) |
|
|
71 |
|
|
|
(23,265 |
) |
|
|
5,753 |
|
|
|
(224,411 |
) |
|
|
(165,721 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
Financial income in the statement of comprehensive income includes the dividends from subsidiaries, associates and joint ventures of W8,873 million for the three-month period ended September 30,
2015. |
② September 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Finance income and costs |
|
|
|
|
| |
|
Interest
income
(expense) |
|
|
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 |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
920 |
|
|
|
920 |
|
|
|
— |
|
| Available-for-sale financial assets |
|
|
54 |
|
|
|
994 |
|
|
|
— |
|
|
|
81,035 |
|
|
|
(179,209 |
) |
|
|
— |
|
|
|
(97,126 |
) |
|
|
(50,477 |
) |
| Loans and receivables |
|
|
17,592 |
|
|
|
— |
|
|
|
25,778 |
|
|
|
— |
|
|
|
— |
|
|
|
(73 |
) |
|
|
43,297 |
|
|
|
— |
|
| Financial liabilities at fair value through profit or loss |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
13,625 |
|
|
|
— |
|
|
|
(18,106 |
) |
|
|
(4,481 |
) |
|
|
— |
|
| Financial liabilities at amortized cost |
|
|
(63,395 |
) |
|
|
— |
|
|
|
(65,557 |
) |
|
|
(20,965 |
) |
|
|
— |
|
|
|
(39 |
) |
|
|
(149,956 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
994 |
|
|
|
(39,779 |
) |
|
|
73,695 |
|
|
|
(179,209 |
) |
|
|
(17,298 |
) |
|
|
(207,346 |
) |
|
|
(50,477 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
Financial income in the statement of comprehensive income includes the dividends from subsidiaries, associates and joint ventures of W11,700 million for the three-month period ended September 30,
2014. |
33
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
1) Fair value and book value
The carrying amount and the fair value of financial instruments as of September 30, 2015 and December 31, 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
September 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 |
|
|
|
|
1,408,849 |
|
|
|
1,648,567 |
|
|
|
1,648,567 |
|
| Derivatives assets held for trading (*2) |
|
|
61,850 |
|
|
|
61,850 |
|
|
|
10,233 |
|
|
|
10,233 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,470,699 |
|
|
|
1,470,699 |
|
|
|
1,658,800 |
|
|
|
1,658,800 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Assets measured at amortized cost (*3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents |
|
|
1,800,558 |
|
|
|
1,800,558 |
|
|
|
1,742,767 |
|
|
|
1,742,767 |
|
| Trade accounts and notes receivable, net |
|
|
2,890,612 |
|
|
|
2,890,612 |
|
|
|
3,181,107 |
|
|
|
3,181,107 |
|
| Loans and other receivables, net |
|
|
3,184,221 |
|
|
|
3,184,221 |
|
|
|
1,100,924 |
|
|
|
1,100,924 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,875,391 |
|
|
|
7,875,391 |
|
|
|
6,024,798 |
|
|
|
6,024,798 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities measured at fair value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Derivatives liabilities held for trading (*2) |
|
|
15,616 |
|
|
|
15,616 |
|
|
|
— |
|
|
|
— |
|
| Liabilities measured at amortized cost (*3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Trade accounts and notes payable |
|
|
671,774 |
|
|
|
671,774 |
|
|
|
777,401 |
|
|
|
777,401 |
|
| Borrowings |
|
|
6,079,418 |
|
|
|
6,552,437 |
|
|
|
6,537,217 |
|
|
|
6,918,972 |
|
| Financial guarantee liabilities |
|
|
104,654 |
|
|
|
104,654 |
|
|
|
59,810 |
|
|
|
59,810 |
|
| Others |
|
|
846,060 |
|
|
|
846,060 |
|
|
|
1,036,487 |
|
|
|
1,036,487 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
8,174,925 |
|
|
|
8,410,915 |
|
|
|
8,792,670 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*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 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 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. |
34
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
| 2) |
The fair value hierarchy |
The fair values of financial instruments by fair value hierarchy as
of September 30, 2015 and December 31, 2014 are as follows:
① September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
| Financial assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Available-for-sale financial assets |
|
W |
|
|
|
|
— |
|
|
|
6,896 |
|
|
|
1,408,849 |
|
| Derivatives assets held for trading |
|
|
— |
|
|
|
12,358 |
|
|
|
49,492 |
|
|
|
61,850 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
12,358 |
|
|
|
56,388 |
|
|
|
1,470,699 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Financial liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Derivatives liabilities held for trading |
|
W |
|
|
|
|
— |
|
|
|
15,616 |
|
|
|
15,616 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
② December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (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.
35
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
21. Share Capital and Capital Surplus
(a) Share capital as of September 30, 2015 and December 31, 2014 are as follows:
|
|
|
|
|
|
|
|
|
| (Share, Won) |
|
September 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 September 30, 2015, total shares of ADRs of 53,990,108 are equivalent to 13,497,527 of common stock. |
| (*2) |
As of September 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 September 30, 2015 and December 31, 2014 are as follows: |
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
September 30, 2015 |
|
|
December 31, 2014 |
|
| Additional paid in capital |
|
W |
|
|
|
|
463,825 |
|
| Gain on disposal of treasury shares |
|
|
783,802 |
|
|
|
783,791 |
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
1,247,616 |
|
|
|
|
|
|
|
|
|
|
36
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
22. Hybrid Bonds
Hybrid bonds classified as equity as of September 30, 2015 and December 31, 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Date of issue |
|
|
Date of maturity |
|
|
Rate of interest
(%) |
|
|
September 30, 2015 |
|
|
December 31, 2014 |
|
| Hybrid bond 1-1 (*1) |
|
|
2013-06-13 |
|
|
|
2043-06-13 |
|
|
|
4.3 |
|
|
W |
|
|
|
|
800,000 |
|
| Hybrid bond 1-2 (*1) |
|
|
2013-06-13 |
|
|
|
2043-06-13 |
|
|
|
4.6 |
|
|
|
200,000 |
|
|
|
200,000 |
|
| Issuance cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3,081 |
) |
|
|
(3,081 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
996,919 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) Details of hybrid bonds are 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% |
|
Issue date ~ 2023 -06 -12 : 4.6% |
| |
Reset every 5 years as follows; |
|
Reset every 10 years as follows; |
| |
• After 5 years : return on government bond (5 years) + 1.3% |
|
• After 10 years : return on government bond (10 years) + 1.4% |
| |
• After 10 years : additionally + 0.25% according to Step-up clauses |
|
• After 10 years : additionally + 0.25% according to Step-up clauses |
| |
• After 25 years : additionally + 0.75% |
|
• After 30 years : additionally + 0.75% |
|
|
|
| Interest payments |
|
Quarterly |
|
Quarterly |
| condition |
|
(Optional deferral of interest payment is available to the Company) |
|
(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 September 30, 2015 amounts to W2,156
million.
23. Reserves
Reserves as of
September 30, 2015 and December 31, 2014 are as follows:
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
September 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 September 30, 2015, the Company holds 7,193,167 shares of treasury stock for price stabilization and others in accordance with the Board of Director’s resolution.
37
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
25. Selling and Administrative Expenses
| (a) |
Administrative expenses |
Administrative expenses for the three-month and nine-month periods
ended September 30, 2015 and 2014 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
For the three-month periods
ended September 30 |
|
|
For the nine-month periods
ended September 30 |
|
| |
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
| Wages and salaries |
|
W |
|
|
|
|
54,579 |
|
|
|
163,800 |
|
|
|
155,511 |
|
| Expenses related to post-employment benefits |
|
|
8,026 |
|
|
|
5,281 |
|
|
|
24,785 |
|
|
|
18,427 |
|
| Other employee benefits |
|
|
12,067 |
|
|
|
15,379 |
|
|
|
37,849 |
|
|
|
40,120 |
|
| Travel |
|
|
3,037 |
|
|
|
3,409 |
|
|
|
9,730 |
|
|
|
9,996 |
|
| Depreciation |
|
|
4,491 |
|
|
|
5,927 |
|
|
|
14,536 |
|
|
|
17,823 |
|
| Amortization |
|
|
13,235 |
|
|
|
13,254 |
|
|
|
39,377 |
|
|
|
39,807 |
|
| Rental |
|
|
17,224 |
|
|
|
16,670 |
|
|
|
51,859 |
|
|
|
51,735 |
|
| Repairs |
|
|
1,879 |
|
|
|
1,972 |
|
|
|
5,965 |
|
|
|
8,197 |
|
| Advertising |
|
|
17,472 |
|
|
|
17,818 |
|
|
|
53,488 |
|
|
|
60,130 |
|
| Research & development |
|
|
25,027 |
|
|
|
25,073 |
|
|
|
62,936 |
|
|
|
81,485 |
|
| Service fees |
|
|
42,067 |
|
|
|
41,435 |
|
|
|
132,221 |
|
|
|
131,516 |
|
| Supplies expense |
|
|
1,211 |
|
|
|
1,231 |
|
|
|
4,049 |
|
|
|
3,942 |
|
| Vehicles maintenance |
|
|
1,748 |
|
|
|
1,749 |
|
|
|
5,233 |
|
|
|
5,250 |
|
| Industry association fee |
|
|
955 |
|
|
|
873 |
|
|
|
6,160 |
|
|
|
6,051 |
|
| Training |
|
|
1,841 |
|
|
|
2,536 |
|
|
|
9,335 |
|
|
|
7,361 |
|
| Conference |
|
|
1,245 |
|
|
|
1,264 |
|
|
|
4,057 |
|
|
|
3,626 |
|
| Bad debt expenses |
|
|
3,677 |
|
|
|
14,866 |
|
|
|
2,468 |
|
|
|
15,382 |
|
| Others |
|
|
7,110 |
|
|
|
6,861 |
|
|
|
26,621 |
|
|
|
23,613 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
230,177 |
|
|
|
654,469 |
|
|
|
679,972 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling expenses for the three-month and nine-month periods ended
September 30, 2015 and 2014 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
For the three-month periods
ended September 30 |
|
|
For the nine-month periods
ended September 30 |
|
| |
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
| Freight and custody expenses |
|
W |
|
|
|
|
222,558 |
|
|
|
676,925 |
|
|
|
641,339 |
|
| Operating expenses for distribution center |
|
|
2,446 |
|
|
|
2,424 |
|
|
|
7,860 |
|
|
|
7,317 |
|
| Sales commissions |
|
|
17,097 |
|
|
|
18,776 |
|
|
|
45,332 |
|
|
|
51,377 |
|
| Sales advertising |
|
|
374 |
|
|
|
543 |
|
|
|
1,549 |
|
|
|
1,313 |
|
| Sales promotion |
|
|
1,309 |
|
|
|
1,280 |
|
|
|
4,054 |
|
|
|
3,531 |
|
| Sample |
|
|
457 |
|
|
|
476 |
|
|
|
1,156 |
|
|
|
1,246 |
|
| Sales insurance premium |
|
|
1,664 |
|
|
|
1,970 |
|
|
|
4,342 |
|
|
|
4,710 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
248,027 |
|
|
|
741,218 |
|
|
|
710,833 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
38
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
26. Finance Income and Costs
Details of finance income and costs for the three-month and nine-month periods ended September 30, 2015 and 2014 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
For the three-month periods
ended September 30 |
|
|
For the nine-month periods
ended September 30 |
|
| |
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
| Finance income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest income |
|
W |
|
|
|
|
17,646 |
|
|
|
66,938 |
|
|
|
65,331 |
|
| Dividend income |
|
|
9,237 |
|
|
|
12,694 |
|
|
|
317,405 |
|
|
|
141,422 |
|
| Gain on foreign currency transactions |
|
|
75,669 |
|
|
|
48,378 |
|
|
|
156,480 |
|
|
|
199,468 |
|
| Gain on foreign currency translations |
|
|
14,567 |
|
|
|
(47,381 |
) |
|
|
38,074 |
|
|
|
71,597 |
|
| Gain on valuation of derivatives |
|
|
4,230 |
|
|
|
(20,732 |
) |
|
|
15,925 |
|
|
|
2,972 |
|
| Gain on derivative transactions |
|
|
— |
|
|
|
15,549 |
|
|
|
67 |
|
|
|
21,651 |
|
| Gain on disposals of available-for-sale investment |
|
|
71 |
|
|
|
81,035 |
|
|
|
137 |
|
|
|
198,717 |
|
| Gain on redemption of debentures |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,500 |
|
| Gain on financial guarantee |
|
|
2,090 |
|
|
|
— |
|
|
|
2,090 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
107,189 |
|
|
|
597,116 |
|
|
|
702,658 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Finance costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest expenses |
|
W |
|
|
|
|
63,395 |
|
|
|
183,653 |
|
|
|
188,746 |
|
| Loss on foreign currency transactions |
|
|
53,454 |
|
|
|
41,488 |
|
|
|
129,989 |
|
|
|
134,209 |
|
| Loss on foreign currency translations |
|
|
207,936 |
|
|
|
(712 |
) |
|
|
268,117 |
|
|
|
12,302 |
|
| Loss on valuation of derivatives |
|
|
352 |
|
|
|
(3,545 |
) |
|
|
1,613 |
|
|
|
4,586 |
|
| Loss on derivative transactions |
|
|
— |
|
|
|
1,924 |
|
|
|
505 |
|
|
|
46,607 |
|
| Impairment loss on available-for-sale investment |
|
|
23,265 |
|
|
|
179,209 |
|
|
|
75,221 |
|
|
|
183,782 |
|
| Loss on redemption of debentures |
|
|
— |
|
|
|
20,965 |
|
|
|
— |
|
|
|
40,096 |
|
| Others |
|
|
215 |
|
|
|
111 |
|
|
|
567 |
|
|
|
653 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
302,835 |
|
|
|
659,665 |
|
|
|
610,981 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
39
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
27. Other Non-Operating Income and Expenses
Details of other non-operating income and expenses for the three-month and nine-month periods ended September 30, 2015 and 2014 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
For the three-month periods
ended September 30 |
|
|
For the nine-month periods
ended September 30 |
|
| |
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
| Other non-operating income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gain on disposals of property, plant and equipment |
|
W |
|
|
|
|
336 |
|
|
|
8,543 |
|
|
|
3,295 |
|
| Gain on disposals of intangible assets |
|
|
136 |
|
|
|
289 |
|
|
|
518 |
|
|
|
289 |
|
| Gain on disposals of investment in subsidiaries, associates and joint ventures |
|
|
— |
|
|
|
— |
|
|
|
2,046 |
|
|
|
— |
|
| Gain on disposals of assets held for sale |
|
|
357,008 |
|
|
|
— |
|
|
|
409,173 |
|
|
|
— |
|
| Premium income |
|
|
2,138 |
|
|
|
825 |
|
|
|
8,887 |
|
|
|
1,284 |
|
| Others |
|
|
3,211 |
|
|
|
5,961 |
|
|
|
8,942 |
|
|
|
13,857 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
7,411 |
|
|
|
438,109 |
|
|
|
18,725 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other non-operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss on disposals of property, plant and equipment |
|
W |
|
|
|
|
8,371 |
|
|
|
57,201 |
|
|
|
38,140 |
|
| Impairment loss on property, plant and equipment |
|
|
22,284 |
|
|
|
30,334 |
|
|
|
68,720 |
|
|
|
30,334 |
|
| Loss on disposals of intangible assets |
|
|
175 |
|
|
|
97 |
|
|
|
647 |
|
|
|
134 |
|
| Other bad debt expense |
|
|
26 |
|
|
|
53 |
|
|
|
32 |
|
|
|
25,757 |
|
| Donations |
|
|
10,120 |
|
|
|
5,756 |
|
|
|
30,770 |
|
|
|
34,542 |
|
| Idle tangible assets expenses |
|
|
1,216 |
|
|
|
4,793 |
|
|
|
5,951 |
|
|
|
5,266 |
|
| Impairment loss on investment in subsidiaries, associates and joint ventures |
|
|
45,157 |
|
|
|
52,058 |
|
|
|
260,833 |
|
|
|
140,106 |
|
| Loss on disposals of assets held for sale |
|
|
— |
|
|
|
— |
|
|
|
20,133 |
|
|
|
14 |
|
| Impairment loss on assets held for sale |
|
|
83,741 |
|
|
|
— |
|
|
|
95,737 |
|
|
|
— |
|
| Contribution to provisions (reversal of contribution to provisions) |
|
|
(23 |
) |
|
|
23,454 |
|
|
|
2,045 |
|
|
|
92,906 |
|
| Others (*1, 2) |
|
|
301,373 |
|
|
|
12,366 |
|
|
|
328,339 |
|
|
|
160,390 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
137,282 |
|
|
|
870,408 |
|
|
|
527,589 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
The Company recorded litigation expense of W299,037 million in connection of its settlement with Nippon Steel & Sumitomo Metal Corporation for a civil lawsuit regarding improperly acquired
trade secrets and patents during the three-month and nine-month periods ended September 30, 2015 (Note 32). |
| (*2) |
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 W139,773 million, primarily
related to VAT, in the nine-month period ended September 30, 2014. |
40
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of September 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 nine-month period ended September 30, 2015 and 2014 were as follows (excluding finance costs and income tax expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
For the three-month periods
ended September 30 |
|
|
For the nine-month periods
ended September 30 |
|
| |
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
| Changes in inventories (*1) |
|
W |
|
|
|
|
63,833 |
|
|
|
263,422 |
|
|
|
(86,802 |
) |
| Raw materials and consumables used |
|
|
3,327,780 |
|
|
|
4,255,395 |
|
|
|
10,639,021 |
|
|
|
13,571,836 |
|
| Wages and salaries including expenses related to post-employment benefits |
|
|
381,951 |
|
|
|
385,482 |
|
|
|
1,126,438 |
|
|
|
1,102,903 |
|
| Outsourced processing cost |
|
|
540,911 |
|
|
|
535,396 |
|
|
|
1,624,228 |
|
|
|
1,639,814 |
|
| Depreciation (*2) |
|
|
517,002 |
|
|
|
531,059 |
|
|
|
1,539,392 |
|
|
|
1,532,130 |
|
| Amortization |
|
|
18,020 |
|
|
|
18,570 |
|
|
|
52,025 |
|
|
|
56,033 |
|
| Electricity and water expenses |
|
|
197,139 |
|
|
|
231,428 |
|
|
|
688,251 |
|
|
|
757,226 |
|
| Service fees |
|
|
56,061 |
|
|
|
55,506 |
|
|
|
171,448 |
|
|
|
173,391 |
|
| Rental |
|
|
21,424 |
|
|
|
21,204 |
|
|
|
65,588 |
|
|
|
65,934 |
|
| Advertising |
|
|
17,472 |
|
|
|
17,818 |
|
|
|
53,488 |
|
|
|
60,130 |
|
| Freight and custody expenses |
|
|
239,025 |
|
|
|
222,558 |
|
|
|
676,925 |
|
|
|
641,339 |
|
| Sales commissions |
|
|
17,097 |
|
|
|
18,776 |
|
|
|
45,332 |
|
|
|
51,377 |
|
| Loss on disposals of property, plant and equipment |
|
|
12,964 |
|
|
|
8,371 |
|
|
|
57,201 |
|
|
|
38,140 |
|
| Impairment loss on property, plant and equipment |
|
|
22,284 |
|
|
|
30,334 |
|
|
|
68,720 |
|
|
|
30,334 |
|
| Impairment loss on investments in subsidiaries, associates and joint ventures |
|
|
45,157 |
|
|
|
52,058 |
|
|
|
260,833 |
|
|
|
140,106 |
|
| Loss on disposals of assets held for sale |
|
|
— |
|
|
|
— |
|
|
|
20,133 |
|
|
|
14 |
|
| Impairment loss on assets held for sale |
|
|
83,741 |
|
|
|
— |
|
|
|
95,737 |
|
|
|
— |
|
| Contribution to provisions (reversal of contribution to provisions) |
|
|
(23 |
) |
|
|
23,454 |
|
|
|
2,045 |
|
|
|
92,906 |
|
| Other expenses |
|
|
575,544 |
|
|
|
321,207 |
|
|
|
1,215,033 |
|
|
|
1,016,522 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
6,792,449 |
|
|
|
18,665,260 |
|
|
|
20,883,333 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*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 nine-month periods ended September 30, 2015 and 2014 was 23.0% and 32.3%, respectively. The effective tax
rate for the nine-month period ended September 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).
41
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
30. Earnings per Share
Basic and diluted earnings per share for the three-month and nine-month periods ended September 30, 2015 and 2014 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
For the three-month periods
ended September 30 |
|
|
For the nine-month periods
ended September 30 |
|
| (in Won except per share information) |
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
| Profit for the period |
|
W |
|
|
|
|
221,575,392,443 |
|
|
|
1,056,421,687,190 |
|
|
|
880,329,830,672 |
|
| Interests of hybrid bonds |
|
|
(8,347,872,419 |
) |
|
|
(8,347,872,419 |
) |
|
|
(24,699,275,257 |
) |
|
|
(24,699,275,257 |
) |
| Weighted-average number of common shares outstanding (*1) |
|
|
79,993,620 |
|
|
|
79,784,263 |
|
|
|
79,993,350 |
|
|
|
79,784,063 |
|
| Basic and diluted earnings per share |
|
|
4,224 |
|
|
|
2,673 |
|
|
|
12,898 |
|
|
|
10,724 |
|
| (*1) |
The weighted-average number of common shares used to calculate basic and diluted earnings per share are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in share) |
|
For the three-month periods
ended September 30 |
|
|
For the nine-month periods
ended September 30 |
|
| |
|
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 |
|
|
(7,193,215 |
) |
|
|
(7,402,572 |
) |
|
|
(7,193,485 |
) |
|
|
(7,402,772 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted-average number of common shares outstanding |
|
W |
|
|
|
|
79,784,263 |
|
|
|
79,993,350 |
|
|
|
79,784,063 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Since there were no potential shares of common stock which had dilutive effects as of September 30, 2015, diluted
earnings per share is equal to basic earnings per share.
42
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
31. Related Party Transactions
| (a) |
Significant transactions with related companies for the nine-month periods ended September 30, 2015 and 2014 were as follows: |
| |
1) |
For the nine-month period ended September 30, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Sales and others (*1) |
|
|
Purchase and others (*2) |
|
| |
|
Sales |
|
|
Others |
|
|
Purchase of
material |
|
|
Purchase of
fixed assets |
|
|
Outsourced
processing cost |
|
|
Others |
|
| Subsidiaries (*3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| POSCO ENGINEERING & CONSTRUCTION., LTD. |
|
W |
|
|
|
|
114 |
|
|
|
19 |
|
|
|
358,910 |
|
|
|
1,822 |
|
|
|
29,398 |
|
| POSCO Processing & Service |
|
|
839,457 |
|
|
|
— |
|
|
|
338,817 |
|
|
|
— |
|
|
|
— |
|
|
|
1,829 |
|
| POSCO COATED & COLOR STEEL Co., Ltd. |
|
|
298,089 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7,510 |
|
|
|
56 |
|
| POSCO ICT (*4) |
|
|
893 |
|
|
|
5 |
|
|
|
— |
|
|
|
180,537 |
|
|
|
22,249 |
|
|
|
131,964 |
|
| eNtoB Corporation |
|
|
— |
|
|
|
— |
|
|
|
203,061 |
|
|
|
5,118 |
|
|
|
94 |
|
|
|
15,004 |
|
| POSCO CHEMTECH |
|
|
340,549 |
|
|
|
24,756 |
|
|
|
387,038 |
|
|
|
6,893 |
|
|
|
225,706 |
|
|
|
1,180 |
|
| POSCO ENERGY CO., LTD. |
|
|
140,252 |
|
|
|
999 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
13 |
|
| POSCO TMC Co., Ltd. |
|
|
202,421 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,058 |
|
|
|
1,017 |
|
| POSCO AST |
|
|
283,513 |
|
|
|
3 |
|
|
|
4,115 |
|
|
|
— |
|
|
|
29,363 |
|
|
|
412 |
|
| POSHIMETAL Co., Ltd. |
|
|
9,071 |
|
|
|
118 |
|
|
|
114,935 |
|
|
|
— |
|
|
|
— |
|
|
|
33 |
|
| Daewoo International Corporation |
|
|
2,652,467 |
|
|
|
34,341 |
|
|
|
37,732 |
|
|
|
— |
|
|
|
— |
|
|
|
865 |
|
| SeAH Changwon Integrated Special Steel (formerly, POSCO Specialty Steel Co., Ltd.) (*5) |
|
|
2,811 |
|
|
|
176,904 |
|
|
|
8,239 |
|
|
|
— |
|
|
|
515 |
|
|
|
75 |
|
| POSCO PLANTEC Co., Ltd. (*5) |
|
|
4,280 |
|
|
|
33 |
|
|
|
2,544 |
|
|
|
116,912 |
|
|
|
15,135 |
|
|
|
13,649 |
|
| POSCO Thainox Public Company Limited |
|
|
203,411 |
|
|
|
10 |
|
|
|
3,833 |
|
|
|
— |
|
|
|
— |
|
|
|
28 |
|
| PT. KRAKATAU POSCO |
|
|
— |
|
|
|
— |
|
|
|
115,557 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO America Corporation |
|
|
496,793 |
|
|
|
7 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
139 |
|
| POSCO Canada Ltd. |
|
|
— |
|
|
|
— |
|
|
|
95,936 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO Asia Co., Ltd. |
|
|
1,365,277 |
|
|
|
873 |
|
|
|
202,537 |
|
|
|
— |
|
|
|
182 |
|
|
|
1,120 |
|
| Qingdao Pohang Stainless Steel Co., Ltd. |
|
|
97,498 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
46 |
|
| POSCO JAPAN Co., Ltd. |
|
|
785,031 |
|
|
|
9,383 |
|
|
|
18,625 |
|
|
|
2,198 |
|
|
|
201 |
|
|
|
1,086 |
|
| POSCO MEXICO S.A. DE C.V. |
|
|
201,101 |
|
|
|
189 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
| POSCO Maharashtra Steel Private Limited |
|
|
302,720 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
31 |
|
| Others (*6) |
|
|
667,261 |
|
|
|
11,960 |
|
|
|
182,468 |
|
|
|
73,807 |
|
|
|
161,069 |
|
|
|
78,332 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,896,022 |
|
|
|
259,695 |
|
|
|
1,715,456 |
|
|
|
744,375 |
|
|
|
464,904 |
|
|
|
276,279 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Associates and joint ventures (*3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| SeAH Changwon Integrated Special Steel (formerly, POSCO Specialty Steel Co., Ltd.) (*5) |
|
|
3,547 |
|
|
|
— |
|
|
|
3,327 |
|
|
|
— |
|
|
|
268 |
|
|
|
1 |
|
| SNNC |
|
|
1,934 |
|
|
|
412 |
|
|
|
326,679 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO-SAMSUNG-Slovakia Processing Center |
|
|
19,187 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Others (*7,8) |
|
|
12,023 |
|
|
|
40,278 |
|
|
|
43,220 |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
36,691 |
|
|
|
40,690 |
|
|
|
373,226 |
|
|
|
— |
|
|
|
269 |
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
300,385 |
|
|
|
2,088,682 |
|
|
|
744,375 |
|
|
|
465,173 |
|
|
|
276,280 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*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 September 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) |
They are reclassified from subsidiaries to associates (Note 10). |
| (*6) |
The Company borrowed USD 17.42 million from POSCO-Uruguay S.A, a subsidiary of the Company, during the nine-month period ended September 30, 2015. |
| (*7) |
The Company lent USD 60 million to CSP, an associate of the Company, and the entire amount of loan was collected during the nine-month period ended September 30, 2015. |
| (*8) |
The Company collected the loan of USD 3.85 million from LLP POSUK Titanium, an associate of the Company, during the nine-month period ended September 30, 2015. |
43
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
| |
2) |
For the nine-month period ended September 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 |
|
|
|
|
16,731 |
|
|
|
— |
|
|
|
716,827 |
|
|
|
3,689 |
|
|
|
18,372 |
|
| POSCO Processing & Service |
|
|
794,689 |
|
|
|
8,648 |
|
|
|
632,748 |
|
|
|
— |
|
|
|
— |
|
|
|
1,199 |
|
| POSCO COATED & COLOR STEEL Co., Ltd. |
|
|
332,862 |
|
|
|
10 |
|
|
|
— |
|
|
|
— |
|
|
|
8,623 |
|
|
|
116 |
|
| POSCO ICT |
|
|
635 |
|
|
|
2,542 |
|
|
|
— |
|
|
|
139,152 |
|
|
|
19,364 |
|
|
|
117,870 |
|
| eNtoB Corporation |
|
|
— |
|
|
|
1 |
|
|
|
193,717 |
|
|
|
2,590 |
|
|
|
108 |
|
|
|
13,501 |
|
| POSCO CHEMTECH |
|
|
397,910 |
|
|
|
20,926 |
|
|
|
382,897 |
|
|
|
3,650 |
|
|
|
226,683 |
|
|
|
748 |
|
| POSCO M-TECH |
|
|
144 |
|
|
|
21 |
|
|
|
92,729 |
|
|
|
1,292 |
|
|
|
148,432 |
|
|
|
6,256 |
|
| POSCO ENERGY CO., LTD. |
|
|
131,365 |
|
|
|
918 |
|
|
|
— |
|
|
|
2,263 |
|
|
|
— |
|
|
|
20 |
|
| POSCO TMC Co., Ltd. |
|
|
180,327 |
|
|
|
38 |
|
|
|
— |
|
|
|
— |
|
|
|
795 |
|
|
|
1,152 |
|
| POSCO AST |
|
|
390,673 |
|
|
|
2 |
|
|
|
8,112 |
|
|
|
— |
|
|
|
47,431 |
|
|
|
1,526 |
|
| POSHIMETAL Co., Ltd. |
|
|
7,714 |
|
|
|
3,617 |
|
|
|
124,103 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Daewoo International Corporation |
|
|
2,661,942 |
|
|
|
20,628 |
|
|
|
84,180 |
|
|
|
— |
|
|
|
— |
|
|
|
2,077 |
|
| POSCO America Corporation |
|
|
524,797 |
|
|
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
179 |
|
| POSCO Canada Ltd. |
|
|
— |
|
|
|
— |
|
|
|
109,832 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO Asia Co., Ltd. |
|
|
1,605,969 |
|
|
|
89 |
|
|
|
131,006 |
|
|
|
— |
|
|
|
10,006 |
|
|
|
1,338 |
|
| Qingdao Pohang Stainless Steel Co., Ltd. |
|
|
51,238 |
|
|
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO JAPAN Co., Ltd. |
|
|
1,054,186 |
|
|
|
— |
|
|
|
10,363 |
|
|
|
892 |
|
|
|
3 |
|
|
|
766 |
|
| POSCO MEXICO S.A. DE C.V. |
|
|
203,241 |
|
|
|
775 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO Maharashtra Steel Private Limited |
|
|
307,527 |
|
|
|
610 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Others |
|
|
694,170 |
|
|
|
8,697 |
|
|
|
165,851 |
|
|
|
39,561 |
|
|
|
24,962 |
|
|
|
86,537 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,359,039 |
|
|
|
84,257 |
|
|
|
1,935,538 |
|
|
|
906,227 |
|
|
|
490,096 |
|
|
|
251,657 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Associates and joint ventures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| SNNC |
|
|
2,454 |
|
|
|
5,322 |
|
|
|
272,288 |
|
|
|
— |
|
|
|
— |
|
|
|
5 |
|
| POSCO PLANTEC Co., Ltd. |
|
|
11,764 |
|
|
|
43 |
|
|
|
2,358 |
|
|
|
65,962 |
|
|
|
10,643 |
|
|
|
11,748 |
|
| Others |
|
|
23,886 |
|
|
|
40,900 |
|
|
|
47,954 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
38,104 |
|
|
|
46,265 |
|
|
|
322,600 |
|
|
|
65,962 |
|
|
|
10,643 |
|
|
|
11,753 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
130,522 |
|
|
|
2,258,138 |
|
|
|
972,189 |
|
|
|
500,739 |
|
|
|
263,410 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
44
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
| (b) |
Significant transactions with related companies for the three-month periods ended September 30, 2015 and 2014 were as follows: |
| |
1) |
For the three-month period ended September 30, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (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 |
|
|
|
|
24 |
|
|
|
— |
|
|
|
67,549 |
|
|
|
— |
|
|
|
62 |
|
| POSCO Processing & Service |
|
|
305,176 |
|
|
|
— |
|
|
|
91,934 |
|
|
|
— |
|
|
|
— |
|
|
|
197 |
|
| POSCO COATED & COLOR STEEL Co., Ltd. |
|
|
99,689 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,812 |
|
|
|
2 |
|
| POSCO ICT |
|
|
213 |
|
|
|
1 |
|
|
|
— |
|
|
|
96,025 |
|
|
|
7,580 |
|
|
|
43,535 |
|
| eNtoB Corporation |
|
|
— |
|
|
|
— |
|
|
|
56,609 |
|
|
|
2,722 |
|
|
|
41 |
|
|
|
4,540 |
|
| POSCO CHEMTECH |
|
|
94,719 |
|
|
|
7,123 |
|
|
|
127,539 |
|
|
|
711 |
|
|
|
75,685 |
|
|
|
681 |
|
| POSCO ENERGY CO., LTD. |
|
|
44,075 |
|
|
|
384 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO TMC Co., Ltd. |
|
|
79,405 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
392 |
|
|
|
383 |
|
| POSCO AST |
|
|
84,368 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10,092 |
|
|
|
303 |
|
| POSHIMETAL Co., Ltd. |
|
|
2,554 |
|
|
|
43 |
|
|
|
32,811 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Daewoo International Corporation |
|
|
870,337 |
|
|
|
— |
|
|
|
10,983 |
|
|
|
— |
|
|
|
— |
|
|
|
96 |
|
| POSCO PLANTEC Co., Ltd. |
|
|
299 |
|
|
|
8 |
|
|
|
809 |
|
|
|
52,420 |
|
|
|
4,675 |
|
|
|
2,727 |
|
| POSCO Thainox Public Company Limited |
|
|
63,593 |
|
|
|
— |
|
|
|
533 |
|
|
|
— |
|
|
|
— |
|
|
|
3 |
|
| POSCO America Corporation |
|
|
160,721 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
54 |
|
| POSCO Canada Ltd. |
|
|
— |
|
|
|
— |
|
|
|
31,912 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO Asia Co., Ltd. |
|
|
443,568 |
|
|
|
294 |
|
|
|
77,282 |
|
|
|
— |
|
|
|
87 |
|
|
|
883 |
|
| Qingdao Pohang Stainless Steel Co., Ltd. |
|
|
16,647 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO JAPAN Co., Ltd. |
|
|
277,524 |
|
|
|
— |
|
|
|
6,691 |
|
|
|
524 |
|
|
|
201 |
|
|
|
567 |
|
| POSCO MEXICO S.A. DE C.V. |
|
|
68,672 |
|
|
|
36 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
| POSCO Maharashtra Steel Private Limited |
|
|
94,782 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
31 |
|
| Others (*1) |
|
|
204,367 |
|
|
|
1,835 |
|
|
|
61,956 |
|
|
|
28,633 |
|
|
|
54,226 |
|
|
|
32,070 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,911,809 |
|
|
|
9,748 |
|
|
|
499,059 |
|
|
|
248,584 |
|
|
|
154,791 |
|
|
|
86,136 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Associates and joint ventures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| SeAH Changwon Integrated Special Steel (formerly, POSCO Specialty Steel Co., Ltd.) |
|
|
1,894 |
|
|
|
— |
|
|
|
655 |
|
|
|
— |
|
|
|
39 |
|
|
|
— |
|
| SNNC |
|
|
729 |
|
|
|
129 |
|
|
|
114,537 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO-SAMSUNG-Slovakia Processing Center |
|
|
4,788 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Others (*2) |
|
|
2,787 |
|
|
|
8,879 |
|
|
|
14,925 |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,198 |
|
|
|
9,008 |
|
|
|
130,117 |
|
|
|
— |
|
|
|
40 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
18,756 |
|
|
|
629,176 |
|
|
|
248,584 |
|
|
|
154,831 |
|
|
|
86,136 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
The Company borrowed USD 17.42 million from POSCO-Uruguay S.A, a subsidiary of the Company, during the three-month period ended September 30, 2015. |
| (*2) |
The Company collected the loan of USD 60 million from CSP, an associate of the Company, during the three-month period ended September 30, 2015. |
45
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
| |
2) |
For the three-month period ended September 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 |
|
|
|
|
57 |
|
|
|
— |
|
|
|
126,342 |
|
|
|
429 |
|
|
|
5,853 |
|
| POSCO Processing & Service |
|
|
276,632 |
|
|
|
70 |
|
|
|
158,940 |
|
|
|
— |
|
|
|
— |
|
|
|
938 |
|
| POSCO COATED & COLOR STEEL Co., Ltd. |
|
|
104,224 |
|
|
|
9 |
|
|
|
— |
|
|
|
— |
|
|
|
3,353 |
|
|
|
50 |
|
| POSCO ICT |
|
|
28 |
|
|
|
52 |
|
|
|
— |
|
|
|
41,090 |
|
|
|
6,679 |
|
|
|
37,896 |
|
| eNtoB Corporation |
|
|
— |
|
|
|
1 |
|
|
|
70,830 |
|
|
|
911 |
|
|
|
73 |
|
|
|
4,437 |
|
| POSCO CHEMTECH |
|
|
130,111 |
|
|
|
5,492 |
|
|
|
130,166 |
|
|
|
902 |
|
|
|
73,985 |
|
|
|
191 |
|
| POSCO M-TECH |
|
|
49 |
|
|
|
5 |
|
|
|
29,117 |
|
|
|
402 |
|
|
|
46,955 |
|
|
|
1,745 |
|
| POSCO ENERGY CO., LTD. |
|
|
46,760 |
|
|
|
320 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO TMC Co., Ltd. |
|
|
64,923 |
|
|
|
38 |
|
|
|
— |
|
|
|
— |
|
|
|
267 |
|
|
|
388 |
|
| POSCO AST |
|
|
123,996 |
|
|
|
2 |
|
|
|
3,276 |
|
|
|
— |
|
|
|
14,852 |
|
|
|
675 |
|
| POSHIMETAL Co., Ltd. |
|
|
2,447 |
|
|
|
1,304 |
|
|
|
43,115 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Daewoo International Corporation |
|
|
954,810 |
|
|
|
23 |
|
|
|
14,115 |
|
|
|
— |
|
|
|
— |
|
|
|
421 |
|
| POSCO America Corporation |
|
|
162,205 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO Canada Ltd. |
|
|
— |
|
|
|
— |
|
|
|
27,343 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO Asia Co., Ltd. |
|
|
595,816 |
|
|
|
36 |
|
|
|
34,069 |
|
|
|
— |
|
|
|
1,125 |
|
|
|
670 |
|
| Qingdao Pohang Stainless Steel Co., Ltd. |
|
|
16,343 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO JAPAN Co., Ltd. |
|
|
334,806 |
|
|
|
— |
|
|
|
4,001 |
|
|
|
433 |
|
|
|
— |
|
|
|
319 |
|
| POSCO MEXICO S.A. DE C.V. |
|
|
67,186 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO Maharashtra Steel Private Limited |
|
|
195,744 |
|
|
|
29 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Others |
|
|
230,688 |
|
|
|
79 |
|
|
|
55,199 |
|
|
|
13,883 |
|
|
|
7,991 |
|
|
|
28,245 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,319,787 |
|
|
|
7,517 |
|
|
|
570,171 |
|
|
|
183,963 |
|
|
|
155,709 |
|
|
|
81,828 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Associates and joint ventures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| SNNC |
|
|
411 |
|
|
|
49 |
|
|
|
108,530 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO PLANTEC Co., Ltd. |
|
|
3,364 |
|
|
|
19 |
|
|
|
858 |
|
|
|
28,607 |
|
|
|
4,296 |
|
|
|
9,090 |
|
| Others |
|
|
9,748 |
|
|
|
11,434 |
|
|
|
15,355 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13,523 |
|
|
|
11,502 |
|
|
|
124,743 |
|
|
|
28,607 |
|
|
|
4,296 |
|
|
|
9,090 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
19,019 |
|
|
|
694,914 |
|
|
|
212,570 |
|
|
|
160,005 |
|
|
|
90,918 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
46
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
| (c) |
The related account balances of significant transactions with related companies as of September 30, 2015 and December 31, 2014 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Receivables |
|
|
Payables |
|
| |
|
Trade accounts
and notes
receivable |
|
|
Others |
|
|
Total |
|
|
Trade accounts
and notes
payable |
|
|
Accounts
payable |
|
|
Others |
|
|
Total |
|
| Subsidiaries |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| POSCO ENGINEERING & CONSTRUCTION., LTD. |
|
W |
|
|
|
|
39,327 |
|
|
|
39,391 |
|
|
|
— |
|
|
|
7,161 |
|
|
|
109 |
|
|
|
7,270 |
|
| POSCO Processing & Service |
|
|
85,326 |
|
|
|
125 |
|
|
|
85,451 |
|
|
|
4,215 |
|
|
|
237 |
|
|
|
— |
|
|
|
4,452 |
|
| POSCO COATED & COLOR STEEL Co., Ltd. |
|
|
72,065 |
|
|
|
49 |
|
|
|
72,114 |
|
|
|
— |
|
|
|
5 |
|
|
|
897 |
|
|
|
902 |
|
| POSCO ICT |
|
|
— |
|
|
|
66 |
|
|
|
66 |
|
|
|
1,076 |
|
|
|
34,810 |
|
|
|
2,088 |
|
|
|
37,974 |
|
| eNtoB Corporation |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7,501 |
|
|
|
11,642 |
|
|
|
13 |
|
|
|
19,156 |
|
| POSCO CHEMTECH |
|
|
31,285 |
|
|
|
4,088 |
|
|
|
35,373 |
|
|
|
55,481 |
|
|
|
11,930 |
|
|
|
20,094 |
|
|
|
87,505 |
|
| POSCO ENERGY CO., LTD. |
|
|
17,718 |
|
|
|
1,976 |
|
|
|
19,694 |
|
|
|
— |
|
|
|
— |
|
|
|
1,945 |
|
|
|
1,945 |
|
| POSCO TMC Co., Ltd. |
|
|
78,048 |
|
|
|
23 |
|
|
|
78,071 |
|
|
|
— |
|
|
|
20 |
|
|
|
203 |
|
|
|
223 |
|
| POSCO AST |
|
|
59,635 |
|
|
|
41 |
|
|
|
59,676 |
|
|
|
— |
|
|
|
1,711 |
|
|
|
3,803 |
|
|
|
5,514 |
|
| POSHIMETAL Co., Ltd. |
|
|
— |
|
|
|
4,804 |
|
|
|
4,804 |
|
|
|
— |
|
|
|
9,403 |
|
|
|
1 |
|
|
|
9,404 |
|
| Daewoo International Corporation |
|
|
172,299 |
|
|
|
— |
|
|
|
172,299 |
|
|
|
— |
|
|
|
95 |
|
|
|
— |
|
|
|
95 |
|
| POSCO Thainox Public Company Limited |
|
|
63,593 |
|
|
|
— |
|
|
|
63,593 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO America Corporation |
|
|
58,786 |
|
|
|
— |
|
|
|
58,786 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO Asia Co., Ltd. |
|
|
198,449 |
|
|
|
243 |
|
|
|
198,692 |
|
|
|
4,414 |
|
|
|
95 |
|
|
|
— |
|
|
|
4,509 |
|
| Qingdao Pohang Stainless Steel Co., Ltd. |
|
|
6,703 |
|
|
|
— |
|
|
|
6,703 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO MEXICO S.A. DE C.V. |
|
|
85,777 |
|
|
|
— |
|
|
|
85,777 |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
2 |
|
| POSCO Maharashtra Steel Private Limited |
|
|
285,965 |
|
|
|
— |
|
|
|
285,965 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Others(*1) |
|
|
142,439 |
|
|
|
3,780 |
|
|
|
146,219 |
|
|
|
13,176 |
|
|
|
29,692 |
|
|
|
45,949 |
|
|
|
88,817 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,358,152 |
|
|
|
54,522 |
|
|
|
1,412,674 |
|
|
|
85,863 |
|
|
|
106,803 |
|
|
|
75,102 |
|
|
|
267,768 |
|
| Associates and joint ventures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| SeAH Changwon Integrated Special Steel (formerly, POSCO Specialty Steel Co., Ltd.) |
|
|
1,605 |
|
|
|
— |
|
|
|
1,605 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| SNNC |
|
|
263 |
|
|
|
22 |
|
|
|
285 |
|
|
|
27,651 |
|
|
|
— |
|
|
|
— |
|
|
|
27,651 |
|
| POSCO PLANTEC Co., Ltd. |
|
|
94 |
|
|
|
4 |
|
|
|
98 |
|
|
|
1,213 |
|
|
|
10,692 |
|
|
|
6 |
|
|
|
11,911 |
|
| Others |
|
|
667 |
|
|
|
12,206 |
|
|
|
12,873 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,629 |
|
|
|
12,232 |
|
|
|
14,861 |
|
|
|
28,864 |
|
|
|
10,692 |
|
|
|
6 |
|
|
|
39,562 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
66,754 |
|
|
|
1,427,535 |
|
|
|
114,727 |
|
|
|
117,495 |
|
|
|
75,108 |
|
|
|
307,330 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
Other payables include a loan of USD 17.42 million borrowed from POSCO-Uruguay S.A. |
47
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
2) December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Receivables |
|
|
Payables |
|
| |
|
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 Integrated 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) |
Other receivables include a loan of USD 3.85 million lent to associates of the Company. |
| (d) |
For the nine-month periods ended September 30, 2015 and 2014 details of compensation to key management officers were as follows: |
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
September 30, 2015 |
|
|
September 30, 2014 |
|
| Short-term benefits |
|
W |
|
|
|
|
23,456 |
|
| Long-term benefits |
|
|
8,683 |
|
|
|
9,262 |
|
| Retirement benefits |
|
|
8,802 |
|
|
|
5,354 |
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
38,072 |
|
|
|
|
|
|
|
|
|
|
Key management officers include directors (including outside directors), and executive officials who have significant
influences and responsibilities in the Company’s business and operations.
48
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of September 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
September 30, 2015, 69 million tons of iron ore and 27 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 September 30, 2015, the Company entered into commitments with Korea National Oil Corporation for long-term foreign currency
borrowings, which are limited up to the amount of USD 24.50 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. 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 September 30, 2015, the remaining balance of the borrowings amount to USD
12.88 million.
| (b) |
As of September 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. |
49
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
| (c) |
Litigation in progress |
1) Civil lawsuits with Nippon Steel & Sumitomo Metal Corporation
In April 2012, Nippon Steel & Sumitomo Metal Corporation (“NSSMC”) filed a civil lawsuit in the Tokyo District Court of
Japan against POSCO and POSCO Japan Co., Ltd., a subsidiary of POSCO, alleging violation of trade secrets and seeking prohibition on production and sales of grain oriented electrical steel sheets and compensation from the Company of
W982.8 billion. Simultaneously, NSSMC filed a civil lawsuit in the New Jersey federal court, United States, against POSCO and POSCO America Corporation, a subsidiary of POSCO, claiming infringement of patent rights related to the
production of grain oriented electrical steel sheets. In connection with this, the Company has filed a lawsuit in Korea seeking confirmation of non-existence of debt. On September 30, 2015, pursuant to the agreement between POSCO and NSSMC, the
pending lawsuit filed by NSSMC in Japan was withdrawn, along with all related lawsuits in Korea and the United States of America, in the settlement amount of W299 billion from POSCO to strengthen the strategic partnership between
the two companies. On the same date, the Company paid W299 billion as the settlement to NSSMC, therefore all litigations were withdrawn and closed.
2) Other lawsuits and claims
The
Company is involved in 37 litigations for alleged damages aggregating to W155.6 billion as of September 30, 2015 which arose in the ordinary course of business. The Company has recognized provisions for 1 of 37 litigations
amounting to W0.4 billion by estimating the outcome of such litigations reasonably. Except 1 litigations, the Company has not recognized any provisions since the Company believes that it does not have a present obligation on other
litigations as of September 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. |
50
POSCO
Notes to the Condensed Separate Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
33. Cash Flows from Operating Activities
Changes in operating assets and liabilities for the nine-month period ended September 30, 2015 and 2014 were as follows:
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
September 30, 2015 |
|
|
September 30, 2014 |
|
| Trade accounts and notes receivable, net |
|
W |
|
|
|
|
268,038 |
|
| Other accounts receivable |
|
|
186,529 |
|
|
|
8,935 |
|
| Inventories |
|
|
643,641 |
|
|
|
(222,399 |
) |
| Prepaid expenses |
|
|
(20,977 |
) |
|
|
(21,391 |
) |
| Other short-term assets |
|
|
(206 |
) |
|
|
(1,056 |
) |
| Long-term guarantee deposits |
|
|
(202 |
) |
|
|
(254 |
) |
| Other long-term assets |
|
|
401 |
|
|
|
— |
|
| Trade accounts payable and notes payable |
|
|
(107,093 |
) |
|
|
180,452 |
|
| Other accounts payable |
|
|
(114,270 |
) |
|
|
(143,016 |
) |
| Accrued expenses |
|
|
(39,682 |
) |
|
|
100,329 |
|
| Advances received |
|
|
(10,305 |
) |
|
|
(12,341 |
) |
| Withholdings |
|
|
31,820 |
|
|
|
11,112 |
|
| Unearned revenue |
|
|
17,357 |
|
|
|
(307 |
) |
| Other short-term liabilities |
|
|
(35,944 |
) |
|
|
(3,532 |
) |
| Derivatives liabilities |
|
|
— |
|
|
|
(6,611 |
) |
| Payment of severance benefits |
|
|
(69,696 |
) |
|
|
(64,450 |
) |
| Plan assets |
|
|
5,461 |
|
|
|
(41,590 |
) |
| Other long-term liabilities |
|
|
— |
|
|
|
(3,000 |
) |
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
48,919 |
|
|
|
|
|
|
|
|
|
|
51
POSCO
and Subsidiaries
Condensed Consolidated Interim
Financial Statements
(Unaudited)
September 30, 2015
(With Independent
Auditors’ Review Report Thereon)
Table of Contents
|
|
|
|
|
| |
|
Page |
|
| Independent Auditors’ Review Report |
|
|
1 |
|
|
|
| Condensed Consolidated Interim Financial Statements |
|
|
|
|
|
|
| Condensed Consolidated Interim Statements of Financial Position |
|
|
3 |
|
|
|
| Condensed Consolidated Interim Statements of Comprehensive Income (Loss) |
|
|
5 |
|
|
|
| Condensed Consolidated Interim Statements of Changes in Equity |
|
|
6 |
|
|
|
| Condensed Consolidated Interim Statements of Cash Flows |
|
|
8 |
|
|
|
| Notes to the Condensed Consolidated Interim Financial Statements |
|
|
10 |
|
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 September 30, 2015, the condensed
consolidated interim statements of comprehensive income (loss) for three-month and nine-month periods ended September 30, 2015 and 2014, the changes in equity and cash flows for nine-month periods ended September 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
November 13, 2015
This report is effective as of November 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 September 30, 2015 and December 31, 2014
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Notes |
|
September 30, 2015 |
|
|
December 31, 2014 |
|
| Assets |
|
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents |
|
21 |
|
W |
|
|
|
|
3,811,202 |
|
| Trade accounts and notes receivable, net |
|
4,21,32 |
|
|
10,183,479 |
|
|
|
11,786,055 |
|
| Other receivables, net |
|
5,21,32 |
|
|
1,799,178 |
|
|
|
1,956,216 |
|
| Other short-term financial assets |
|
6,21 |
|
|
3,614,274 |
|
|
|
1,462,920 |
|
| Inventories |
|
7 |
|
|
9,091,097 |
|
|
|
10,471,330 |
|
| Current income tax assets |
|
|
|
|
42,159 |
|
|
|
36,147 |
|
| Assets held for sale |
|
8 |
|
|
626,644 |
|
|
|
2,127,087 |
|
| Other current assets |
|
14 |
|
|
954,232 |
|
|
|
976,425 |
|
|
|
|
|
|
|
|
|
|
|
|
| Total current assets |
|
|
|
|
31,553,420 |
|
|
|
32,627,382 |
|
|
|
|
|
|
|
|
|
|
|
|
| Long-term trade accounts and notes receivable, net |
|
4,21 |
|
|
127,891 |
|
|
|
79,336 |
|
| Other receivables, net |
|
5,21 |
|
|
1,035,406 |
|
|
|
1,144,160 |
|
| Other long-term financial assets |
|
6,21 |
|
|
2,174,343 |
|
|
|
2,455,900 |
|
| Investments in associates and joint ventures |
|
9 |
|
|
4,053,730 |
|
|
|
4,060,507 |
|
| Investment property, net |
|
11 |
|
|
1,114,987 |
|
|
|
1,055,592 |
|
| Property, plant and equipment, net |
|
12 |
|
|
34,725,545 |
|
|
|
35,241,195 |
|
| Intangible assets, net |
|
13 |
|
|
6,496,593 |
|
|
|
6,884,989 |
|
| Deferred tax assets |
|
|
|
|
1,216,759 |
|
|
|
1,195,563 |
|
| Other long-term assets |
|
14 |
|
|
703,669 |
|
|
|
507,549 |
|
|
|
|
|
|
|
|
|
|
|
|
| Total non-current assets |
|
|
|
|
51,648,923 |
|
|
|
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 September 30, 2015 and December 31, 2014
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Notes |
|
September 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 |
|
|
13,717,886 |
|
|
|
12,195,484 |
|
| Other payables |
|
16,21,32 |
|
|
2,055,667 |
|
|
|
2,194,713 |
|
| Other short-term financial liabilities |
|
17,21 |
|
|
244,640 |
|
|
|
111,637 |
|
| Current income tax liabilities |
|
|
|
|
349,908 |
|
|
|
453,613 |
|
| Liabilities of disposal group held for sale |
|
8 |
|
|
65,609 |
|
|
|
590,982 |
|
| Provisions |
|
18 |
|
|
89,636 |
|
|
|
150,030 |
|
| Other current liabilities |
|
20 |
|
|
2,323,532 |
|
|
|
2,229,764 |
|
|
|
|
|
|
|
|
|
|
|
|
| Total current liabilities |
|
|
|
|
22,065,868 |
|
|
|
21,877,009 |
|
|
|
|
|
|
|
|
|
|
|
|
| Long-term trade accounts and notes payable |
|
21 |
|
|
19,491 |
|
|
|
88,469 |
|
| Long-term borrowings, excluding current installments |
|
15,21 |
|
|
13,613,001 |
|
|
|
15,232,773 |
|
| Other payables |
|
16,21 |
|
|
97,574 |
|
|
|
169,986 |
|
| Other long-term financial liabilities |
|
17,21 |
|
|
58,836 |
|
|
|
91,095 |
|
| Defined benefit liabilities, net |
|
19 |
|
|
382,378 |
|
|
|
290,325 |
|
| Deferred tax liabilities |
|
|
|
|
1,680,824 |
|
|
|
1,832,260 |
|
| Long-term provisions |
|
18,33 |
|
|
213,177 |
|
|
|
223,239 |
|
| Other long-term liabilities |
|
20 |
|
|
72,209 |
|
|
|
155,653 |
|
|
|
|
|
|
|
|
|
|
|
|
| Total non-current liabilities |
|
|
|
|
16,137,490 |
|
|
|
18,083,800 |
|
|
|
|
|
|
|
|
|
|
|
|
| Total liabilities |
|
|
|
|
38,203,358 |
|
|
|
39,960,809 |
|
|
|
|
|
|
|
|
|
|
|
|
| Equity |
|
|
|
|
|
|
|
|
|
|
| Share capital |
|
22 |
|
|
482,403 |
|
|
|
482,403 |
|
| Capital surplus |
|
22 |
|
|
1,392,330 |
|
|
|
1,083,718 |
|
| Hybrid bonds |
|
23 |
|
|
996,919 |
|
|
|
996,919 |
|
| Reserves |
|
24 |
|
|
(543,535 |
) |
|
|
(408,773 |
) |
| Treasury shares |
|
25 |
|
|
(1,534,320 |
) |
|
|
(1,534,457 |
) |
| Retained earnings |
|
|
|
|
40,250,028 |
|
|
|
40,967,558 |
|
|
|
|
|
|
|
|
|
|
|
|
| Equity attributable to owners of the controlling company |
|
|
|
|
41,043,825 |
|
|
|
41,587,368 |
|
| Non-controlling interests |
|
23 |
|
|
3,955,160 |
|
|
|
3,703,996 |
|
|
|
|
|
|
|
|
|
|
|
|
| Total equity |
|
|
|
|
44,998,985 |
|
|
|
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 nine-month periods ended September 30, 2015 and 2014
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
For the three-month periods
ended September 30 |
|
|
For the nine-month periods
ended September 30 |
|
| (in millions of Won, except per share information) |
|
Notes |
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
| Revenue |
|
32,35 |
|
W |
|
|
|
|
16,269,845 |
|
|
|
44,286,395 |
|
|
|
48,413,545 |
|
| Cost of sales |
|
7,29,32 |
|
|
(12,397,755 |
) |
|
|
(14,410,837 |
) |
|
|
(39,197,778 |
) |
|
|
(43,053,988 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gross profit |
|
|
|
|
1,598,237 |
|
|
|
1,859,008 |
|
|
|
5,088,617 |
|
|
|
5,359,557 |
|
| Selling and administrative expenses |
|
26,29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Administrative expenses |
|
|
|
|
(541,056 |
) |
|
|
(551,185 |
) |
|
|
(1,722,846 |
) |
|
|
(1,638,792 |
) |
| Selling expenses |
|
|
|
|
(405,269 |
) |
|
|
(429,120 |
) |
|
|
(1,296,274 |
) |
|
|
(1,271,688 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating profit |
|
|
|
|
651,912 |
|
|
|
878,703 |
|
|
|
2,069,497 |
|
|
|
2,449,077 |
|
| Share of profit (loss) of equity-accounted investees, net |
|
9 |
|
|
(322,881 |
) |
|
|
(41,496 |
) |
|
|
(361,932 |
) |
|
|
(165,467 |
) |
| Finance income and costs |
|
21,27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Finance income |
|
|
|
|
926,715 |
|
|
|
364,451 |
|
|
|
2,023,457 |
|
|
|
1,750,757 |
|
| Finance costs |
|
|
|
|
(1,542,268 |
) |
|
|
(762,129 |
) |
|
|
(3,020,475 |
) |
|
|
(2,124,019 |
) |
| Other non-operating income and expenses |
|
28 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other non-operating income |
|
|
|
|
128,645 |
|
|
|
25,884 |
|
|
|
441,016 |
|
|
|
120,426 |
|
| Other non-operating expenses |
|
29 |
|
|
(617,789 |
) |
|
|
(134,330 |
) |
|
|
(1,019,615 |
) |
|
|
(711,283 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Profit (loss) before income tax |
|
35 |
|
|
(775,666 |
) |
|
|
331,083 |
|
|
|
131,948 |
|
|
|
1,319,491 |
|
| Tax benefit (expense) |
|
30,35 |
|
|
117,425 |
|
|
|
(107,083 |
) |
|
|
(337,593 |
) |
|
|
(552,687 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Profit (loss) |
|
|
|
|
(658,241 |
) |
|
|
224,000 |
|
|
|
(205,645 |
) |
|
|
766,804 |
|
| Other comprehensive income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Items that will not be reclassified subsequently to profit or loss: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Remeasurements of defined benefit pension plans |
|
19 |
|
|
(18,055 |
) |
|
|
(49,554 |
) |
|
|
(41,491 |
) |
|
|
(90,650 |
) |
| Items that are or may be reclassified subsequently to profit or loss: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Capital adjustment arising from investments in equity-accounted investees |
|
|
|
|
42,061 |
|
|
|
(27,360 |
) |
|
|
(25,414 |
) |
|
|
(82,281 |
) |
| Net changes in the unrealized fair value of available-for-sale investments |
|
21 |
|
|
(169,320 |
) |
|
|
(67,970 |
) |
|
|
(195,970 |
) |
|
|
(362,359 |
) |
| Foreign currency translation differences |
|
|
|
|
118,240 |
|
|
|
90,239 |
|
|
|
122,765 |
|
|
|
(99,339 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other comprehensive loss, net of tax |
|
|
|
|
(27,074 |
) |
|
|
(54,645 |
) |
|
|
(140,110 |
) |
|
|
(634,629 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total comprehensive income (loss) |
|
|
|
W |
|
|
|
|
169,355 |
|
|
|
(345,755 |
) |
|
|
132,175 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Profit (loss) attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Owners of the controlling company |
|
|
|
W |
|
|
|
|
237,817 |
|
|
|
(4,864 |
) |
|
|
818,828 |
|
| Non-controlling interests |
|
|
|
|
(116,614 |
) |
|
|
(13,817 |
) |
|
|
(200,781 |
) |
|
|
(52,024 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Profit (loss) |
|
|
|
W |
|
|
|
|
224,000 |
|
|
|
(205,645 |
) |
|
|
766,804 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total comprehensive income (loss) attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Owners of the controlling company |
|
|
|
W |
|
|
|
|
163,352 |
|
|
|
(180,784 |
) |
|
|
204,592 |
|
| Non-controlling interests |
|
|
|
|
(75,346 |
) |
|
|
6,003 |
|
|
|
(164,971 |
) |
|
|
(72,417 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total comprehensive income (loss) |
|
|
|
W |
|
|
|
|
169,355 |
|
|
|
(345,755 |
) |
|
|
132,175 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic and diluted earnings (loss) per share (in Won) |
|
31 |
|
W |
|
|
|
|
2,876 |
|
|
|
(370 |
) |
|
|
9,953 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the condensed consolidated interim financial statements.
5
POSCO and Subsidiaries
Condensed Consolidated Interim Statements of Changes in Equity
For the nine-month periods ended September 30, 2015 and 2014
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Attributable to owners of the controlling company |
|
|
Non- |
|
|
|
|
| (in millions of Won) |
|
Share
capital |
|
|
Capital
surplus |
|
|
Hybrid
bonds |
|
|
Reserves |
|
|
Treasury
shares |
|
|
Retained
earnings |
|
|
Sub
total |
|
|
controlling
interests |
|
|
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 (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Profit (loss) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
818,828 |
|
|
|
818,828 |
|
|
|
(52,024 |
) |
|
|
766,804 |
|
| Other comprehensive income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Remeasurements of defined benefit pension plans, net of tax |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(86,169 |
) |
|
|
(86,169 |
) |
|
|
(4,481 |
) |
|
|
(90,650 |
) |
| Net changes in accumulated comprehensive income of investments in associates, net of tax |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(78,351 |
) |
|
|
— |
|
|
|
— |
|
|
|
(78,351 |
) |
|
|
(3,930 |
) |
|
|
(82,281 |
) |
| Net changes in the unrealized fair value of available-for-sale investments, net of tax |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(362,499 |
) |
|
|
— |
|
|
|
— |
|
|
|
(362,499 |
) |
|
|
140 |
|
|
|
(362,359 |
) |
| Foreign currency translation differences, net of tax |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(87,217 |
) |
|
|
— |
|
|
|
— |
|
|
|
(87,217 |
) |
|
|
(12,122 |
) |
|
|
(99,339 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total comprehensive income (loss) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(528,067 |
) |
|
|
— |
|
|
|
732,659 |
|
|
|
204,592 |
|
|
|
(72,417 |
) |
|
|
132,175 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Transactions with owners of the controlling company, recognized directly in equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Year-end dividends |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(478,702 |
) |
|
|
(478,702 |
) |
|
|
(30,707 |
) |
|
|
(509,409 |
) |
| Interim dividends |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(159,568 |
) |
|
|
(159,568 |
) |
|
|
— |
|
|
|
(159,568 |
) |
| Changes in subsidiaries |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
27,922 |
|
|
|
27,922 |
|
| Changes in ownership interests in subsidiaries |
|
|
— |
|
|
|
(3,973 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3,973 |
) |
|
|
42,538 |
|
|
|
38,565 |
|
| Interest of hybrid bonds |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(32,585 |
) |
|
|
(32,585 |
) |
|
|
(20,079 |
) |
|
|
(52,664 |
) |
| Disposal of treasury shares |
|
|
— |
|
|
|
50 |
|
|
|
— |
|
|
|
— |
|
|
|
138 |
|
|
|
— |
|
|
|
188 |
|
|
|
— |
|
|
|
188 |
|
| Others |
|
|
— |
|
|
|
(694 |
) |
|
|
— |
|
|
|
3,141 |
|
|
|
— |
|
|
|
(2,202 |
) |
|
|
245 |
|
|
|
(1,315 |
) |
|
|
(1,070 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total transactions with owners of the controlling company |
|
|
— |
|
|
|
(4,617 |
) |
|
|
— |
|
|
|
3,141 |
|
|
|
138 |
|
|
|
(673,057 |
) |
|
|
(674,395 |
) |
|
|
18,359 |
|
|
|
(656,036 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance as of September 30, 2014 |
|
W |
|
|
|
|
1,073,649 |
|
|
|
996,919 |
|
|
|
(548,002 |
) |
|
|
(1,578,986 |
) |
|
|
41,150,251 |
|
|
|
41,576,234 |
|
|
|
3,721,935 |
|
|
|
45,298,169 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 nine-month periods ended September 30, 2015 and 2014
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Attributable to owners of the controlling company |
|
|
Non- |
|
|
|
|
| (in millions of Won) |
|
Share
capital |
|
|
Capital
surplus |
|
|
Hybrid
bond |
|
|
Reserves |
|
|
Treasury
shares |
|
|
Retained
earnings |
|
|
Sub
total |
|
|
controlling
interests |
|
|
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 (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4,864 |
) |
|
|
(4,864 |
) |
|
|
(200,781 |
) |
|
|
(205,645 |
) |
| Other comprehensive income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Remeasurements of defined benefit pension plans, net of tax |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(39,267 |
) |
|
|
(39,267 |
) |
|
|
(2,224 |
) |
|
|
(41,491 |
) |
| Net changes in accumulated comprehensive income of investments in associates, net of tax |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(44,971 |
) |
|
|
— |
|
|
|
— |
|
|
|
(44,971 |
) |
|
|
19,557 |
|
|
|
(25,414 |
) |
| Net changes in the unrealized fair value of available-for-sale investments, net of tax |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(193,956 |
) |
|
|
— |
|
|
|
— |
|
|
|
(193,956 |
) |
|
|
(2,014 |
) |
|
|
(195,970 |
) |
| Foreign currency translation differences, net of tax |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
102,274 |
|
|
|
— |
|
|
|
— |
|
|
|
102,274 |
|
|
|
20,491 |
|
|
|
122,765 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total comprehensive loss |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(136,653 |
) |
|
|
— |
|
|
|
(44,131 |
) |
|
|
(180,784 |
) |
|
|
(164,971 |
) |
|
|
(345,755 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Transactions with owners of the controlling company, recognized directly in equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Year-end dividends |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(479,958 |
) |
|
|
(479,958 |
) |
|
|
(32,410 |
) |
|
|
(512,368 |
) |
| Interim dividends |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(159,987 |
) |
|
|
(159,987 |
) |
|
|
(67,700 |
) |
|
|
(227,687 |
) |
| Changes in subsidiaries |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(308,832 |
) |
|
|
(308,832 |
) |
| Changes in ownership interests in subsidiaries |
|
|
— |
|
|
|
307,909 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
307,909 |
|
|
|
841,724 |
|
|
|
1,149,633 |
|
| Interest of hybrid bonds |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(32,585 |
) |
|
|
(32,585 |
) |
|
|
(18,090 |
) |
|
|
(50,675 |
) |
| Disposal of treasury shares |
|
|
— |
|
|
|
11 |
|
|
|
— |
|
|
|
— |
|
|
|
137 |
|
|
|
— |
|
|
|
148 |
|
|
|
— |
|
|
|
148 |
|
| Others |
|
|
— |
|
|
|
692 |
|
|
|
— |
|
|
|
1,891 |
|
|
|
— |
|
|
|
(869 |
) |
|
|
1,714 |
|
|
|
1,443 |
|
|
|
3,157 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total transactions with owners of the controlling company |
|
|
— |
|
|
|
308,612 |
|
|
|
— |
|
|
|
1,891 |
|
|
|
137 |
|
|
|
(673,399 |
) |
|
|
(362,759 |
) |
|
|
416,135 |
|
|
|
53,376 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance as of September 30, 2015 |
|
W |
|
|
|
|
1,392,330 |
|
|
|
996,919 |
|
|
|
(543,535 |
) |
|
|
(1,534,320 |
) |
|
|
40,250,028 |
|
|
|
41,043,825 |
|
|
|
3,955,160 |
|
|
|
44,998,985 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the condensed consolidated interim financial statements.
7
POSCO and Subsidiaries
Condensed Consolidated Interim Statements of Cash Flows
For the nine-month periods ended September 30, 2015 and 2014
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Notes |
|
September 30, 2015 |
|
|
September 30, 2014 |
|
| Cash flows from operating activities |
|
|
|
|
|
|
|
|
|
|
| Profit (loss) |
|
|
|
W |
|
|
|
|
766,804 |
|
| Adjustments for: |
|
|
|
|
|
|
|
|
|
|
| Depreciation |
|
|
|
|
2,095,456 |
|
|
|
2,134,605 |
|
| Amortization |
|
|
|
|
283,427 |
|
|
|
247,519 |
|
| Finance income |
|
|
|
|
(1,009,846 |
) |
|
|
(839,873 |
) |
| Finance costs |
|
|
|
|
1,950,651 |
|
|
|
1,230,302 |
|
| Income tax expense |
|
|
|
|
337,593 |
|
|
|
552,687 |
|
| Impairment loss on property, plant and equipment |
|
|
|
|
128,200 |
|
|
|
34,032 |
|
| Gain on disposal of property, plant and equipment |
|
|
|
|
(19,312 |
) |
|
|
(4,998 |
) |
| Loss on disposal of property, plant and equipment |
|
|
|
|
70,918 |
|
|
|
26,911 |
|
| Impairment loss on intangible assets |
|
|
|
|
114,074 |
|
|
|
30,753 |
|
| Share of loss of equity-accounted investees |
|
|
|
|
361,932 |
|
|
|
165,467 |
|
| Impairment loss on assets held for sale |
|
|
|
|
132,244 |
|
|
|
14,917 |
|
| Gain on disposal of assets held for sale |
|
|
|
|
(227,009 |
) |
|
|
— |
|
| Cost for defined benefit plans |
|
|
|
|
188,045 |
|
|
|
175,963 |
|
| Bad debt expenses |
|
|
|
|
208,289 |
|
|
|
147,112 |
|
| Loss on valuation of inventories |
|
|
|
|
123,745 |
|
|
|
46,103 |
|
| Contribution to provisions |
|
|
|
|
53,936 |
|
|
|
185,131 |
|
| Others, net |
|
|
|
|
(22,527 |
) |
|
|
763 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,769,816 |
|
|
|
4,147,394 |
|
|
|
|
|
|
|
|
|
|
|
|
| Changes in operating assets and liabilities |
|
34 |
|
|
1,961,949 |
|
|
|
(2,322,237 |
) |
| Interest received |
|
|
|
|
139,737 |
|
|
|
142,861 |
|
| Interest paid |
|
|
|
|
(591,912 |
) |
|
|
(632,772 |
) |
| Dividends received |
|
|
|
|
94,655 |
|
|
|
100,566 |
|
| Income taxes paid |
|
|
|
|
(640,427 |
) |
|
|
(572,332 |
) |
|
|
|
|
|
|
|
|
|
|
|
| Net cash provided by operating activities |
|
|
|
W |
|
|
|
|
1,630,284 |
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the condensed consolidated interim financial statements.
8
POSCO and Subsidiaries
Condensed Consolidated Interim Statements of Cash Flows, Continued
For the nine-month periods ended September 30, 2015 and 2014
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Notes |
|
|
September 30, 2015 |
|
|
September 30, 2014 |
|
| Cash flows from investing activities |
|
|
|
|
|
|
|
|
|
|
|
|
| Acquisitions of short-term financial instruments |
|
|
|
|
|
W |
|
|
|
|
(2,395,107 |
) |
| Proceeds from disposal of short-term financial instruments |
|
|
|
|
|
|
7,812,432 |
|
|
|
3,772,277 |
|
| Increase in loans |
|
|
|
|
|
|
(258,056 |
) |
|
|
(133,079 |
) |
| Collection of loans |
|
|
|
|
|
|
195,821 |
|
|
|
15,281 |
|
| Acquisitions of available-for-sale investments |
|
|
|
|
|
|
(65,334 |
) |
|
|
(72,819 |
) |
| Proceeds from disposal of available-for-sale investments |
|
|
|
|
|
|
169,280 |
|
|
|
22,941 |
|
| Acquisitions of investments in associates and joint ventures |
|
|
|
|
|
|
(62,794 |
) |
|
|
(677,647 |
) |
| Proceeds from disposal of investments in associates and joint ventures |
|
|
|
|
|
|
5,306 |
|
|
|
308 |
|
| Acquisition of investment property |
|
|
|
|
|
|
(64,265 |
) |
|
|
(359,930 |
) |
| Proceeds from disposal of investment property |
|
|
|
|
|
|
1,120 |
|
|
|
24,512 |
|
| Acquisitions of property, plant and equipment |
|
|
|
|
|
|
(2,021,288 |
) |
|
|
(2,774,984 |
) |
| Proceeds from disposal of property, plant and equipment |
|
|
|
|
|
|
62,941 |
|
|
|
40,551 |
|
| Acquisitions of intangible assets |
|
|
|
|
|
|
(250,838 |
) |
|
|
(258,592 |
) |
| Proceeds from disposal of intangible assets |
|
|
|
|
|
|
25,195 |
|
|
|
9,476 |
|
| Proceeds from disposal of assets held for sale |
|
|
|
|
|
|
121,002 |
|
|
|
1,291 |
|
| Cash paid in acquisition of business, net of cash acquired |
|
|
|
|
|
|
— |
|
|
|
(393,319 |
) |
| Cash received from disposal of business, net of cash transferred |
|
|
|
|
|
|
436,257 |
|
|
|
— |
|
| Others, net |
|
|
|
|
|
|
(29,604 |
) |
|
|
(21,171 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net cash used in investing activities |
|
|
|
|
|
|
(3,904,048 |
) |
|
|
(3,200,011 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash flows from financing activities |
|
|
|
|
|
|
|
|
|
|
|
|
| Proceeds from borrowings |
|
|
|
|
|
|
1,421,499 |
|
|
|
2,369,844 |
|
| Repayment of borrowings |
|
|
|
|
|
|
(2,008,296 |
) |
|
|
(2,644,667 |
) |
| Proceeds from (repayment of) short-term borrowings, net |
|
|
|
|
|
|
(225,555 |
) |
|
|
2,183,116 |
|
| Capital contribution from non-controlling interests and proceeds from disposal of subsidiary while maintaining control |
|
|
|
|
|
|
1,249,743 |
|
|
|
63,034 |
|
| Payment of cash dividends |
|
|
|
|
|
|
(821,293 |
) |
|
|
(669,073 |
) |
| Payment of interest of hybrid bonds |
|
|
|
|
|
|
(50,824 |
) |
|
|
(52,813 |
) |
| Other, net |
|
|
|
|
|
|
(27,379 |
) |
|
|
(17,319 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net cash provided by (used in) financing activities |
|
|
|
|
|
|
(462,105 |
) |
|
|
1,232,122 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Effect of exchange rate fluctuation on cash held |
|
|
|
|
|
|
59,331 |
|
|
|
(27,726 |
) |
| Net increase (decrease) in cash and cash equivalents |
|
|
|
|
|
|
1,221,351 |
|
|
|
(365,331 |
) |
| Cash and cash equivalents at beginning of the period |
|
|
8 |
|
|
|
4,022,136 |
|
|
|
4,208,562 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents at end of the period |
|
|
8 |
|
|
W |
|
|
|
|
3,843,231 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the condensed consolidated interim financial statements.
9
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
As of September 30, 2015
(Unaudited)
1. General Information
General information about POSCO, its 43 domestic subsidiaries including POSCO Engineering & Construction Co., Ltd., 178 foreign subsidiaries including
POSCO America Corporation (collectively, “the Company”) and its 96 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 five of its overseas liaison offices.
As of September 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 nine-month period ended September 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 |
|
February 2015 |
|
|
100.00 |
|
|
New establishment |
| COINSA INGENIERIA Y PETROQUIMICA S.R.L |
|
February 2015 |
|
|
50.00 |
|
|
New establishment |
| Miracle number four |
|
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 |
| POSCO-CDPC(POSCO ChengDu Processing Center) Co., Ltd |
|
July 2015 |
|
|
43.00 |
|
|
Reclassified to subsidiary
from joint venture |
10
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
| (c) |
Subsidiaries that were excluded from consolidation during the nine-month period ended September 30, 2015 are as follows: |
|
|
|
|
|
| Company |
|
Date of exclusion |
|
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 |
| Chun Sa wind |
|
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 |
| POREKA Co., Ltd. |
|
August 2015 |
|
Disposal |
| POSCO PLANTEC Co., Ltd. |
|
September 2015 |
|
Reclassified to associate due to loss of control through workout |
| POSCO PLANTEC Thiland CO. LTD |
|
September 2015 |
|
Exclusion upon reclassification of parent company, ‘POSCO PLANTEC Co., Ltd.’ to associates |
| Miracle number four |
|
September 2015 |
|
Exclusion upon reclassification of parent company, ‘POSCO PLANTEC Co., Ltd.’ to associates |
| POSCO Klappan Coal Limited |
|
September 2015 |
|
Exclusion upon liquidation |
| EPC INVESTMENTS C.V. |
|
September 2015 |
|
Exclusion upon liquidation |
| POSCO MPC Servicios S.A. de C.V. |
|
September 2015 |
|
Merged into POSCO MPPC S.A. de C.V. |
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.
11
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
Use of estimates and judgments
| (a) |
Judgments, 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.
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 21.
12
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of September 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 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 Korea 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.
13
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
4. Trade Accounts and Notes Receivable
Trade accounts and notes receivable as of September 30, 2015 and December 31, 2014 are as follows:
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
September 30, 2015 |
|
|
December 31, 2014 |
|
| Current |
|
|
|
|
|
|
|
|
| Trade accounts and notes receivable |
|
W |
|
|
|
|
10,814,600 |
|
| Finance lease receivables |
|
|
22,615 |
|
|
|
24,344 |
|
| Unbilled due from customers for contract work |
|
|
1,240,262 |
|
|
|
1,528,427 |
|
| Less: Allowance for doubtful accounts |
|
|
(525,318 |
) |
|
|
(581,316 |
) |
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
11,786,055 |
|
|
|
|
|
|
|
|
|
|
| Non-current |
|
|
|
|
|
|
|
|
| Trade accounts and notes receivable |
|
W |
|
|
|
|
60,583 |
|
| Finance lease receivables |
|
|
27,319 |
|
|
|
42,907 |
|
| Less: Allowance for doubtful accounts |
|
|
(27,273 |
) |
|
|
(24,154 |
) |
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
79,336 |
|
|
|
|
|
|
|
|
|
|
Trade accounts and notes receivable sold to financial institutions, for which the derecognition conditions were not met,
amounted to W1,412,836 million and W2,030,342 million as of September 30, 2015 and December 31, 2014, respectively, and are included in bank borrowings (Note 15).
14
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
5. Other Receivables
Other receivables as of September 30, 2015 and December 31, 2014 are as follows:
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
September 30, 2015 |
|
|
December 31, 2014 |
|
| Current |
|
|
|
|
|
|
|
|
| Short-term loans |
|
W |
|
|
|
|
254,108 |
|
| Other accounts receivable |
|
|
1,224,217 |
|
|
|
1,523,659 |
|
| Accrued income |
|
|
104,584 |
|
|
|
76,393 |
|
| Deposits |
|
|
80,917 |
|
|
|
58,384 |
|
| Others |
|
|
172,713 |
|
|
|
227,192 |
|
| Less: Allowance for doubtful accounts |
|
|
(239,528 |
) |
|
|
(183,520 |
) |
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
1,956,216 |
|
|
|
|
|
|
|
|
|
|
| Non-current |
|
|
|
|
|
|
|
|
| Long-term loans |
|
W |
|
|
|
|
960,652 |
|
| Long-term other accounts receivable |
|
|
127,842 |
|
|
|
158,018 |
|
| Accrued income |
|
|
1,166 |
|
|
|
1,533 |
|
| Deposits |
|
|
141,465 |
|
|
|
189,120 |
|
| Less: Allowance for doubtful accounts |
|
|
(139,721 |
) |
|
|
(165,163 |
) |
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
1,144,160 |
|
|
|
|
|
|
|
|
|
|
15
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
6. Other Financial Assets
Other financial assets as of September 30, 2015 and December 31, 2014 are as follows:
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
September 30, 2015 |
|
|
December 31, 2014 |
|
| Current |
|
|
|
|
|
|
|
|
| Derivatives assets held for trading |
|
W |
|
|
|
|
77,182 |
|
| Available-for-sale securities |
|
|
2,996 |
|
|
|
25,512 |
|
| Current portion of held-to-maturity securities |
|
|
21,180 |
|
|
|
15,297 |
|
| Short-term financial instruments (*1,2) |
|
|
3,505,744 |
|
|
|
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) |
|
|
1,906,518 |
|
|
|
2,294,244 |
|
| Available-for-sale securities (bonds) |
|
|
53,286 |
|
|
|
33,350 |
|
| Available-for-sale securities (others) |
|
|
65,966 |
|
|
|
67,135 |
|
| Held-to-maturity securities |
|
|
2,272 |
|
|
|
1,796 |
|
| Long-term financial instruments (*2) |
|
|
61,375 |
|
|
|
40,291 |
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
2,455,900 |
|
|
|
|
|
|
|
|
|
|
| (*1) |
As of September 30, 2015 and December 31, 2014, W4,828 million and W5,465 million, respectively, are restricted for the use in a government project. |
| (*2) |
As of September 30, 2015 and December 31, 2014, financial instruments amounting to W106,513 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 Steel
Co., Ltd.). Accordingly, the Company has recognized derivatives assets amounting to W47,404 million and W2,088 million, respectively, as of September 30, 2015. |
| (*4) |
During the nine-month period ended September 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 W93,874 million was recognized in profit or loss
during the nine-month period ended September 30, 2015. |
| (*5) |
As of September 30, 2015 and December 31, 2014, W115,586 million and W173,632 million of available-for-sale securities, respectively, have been provided as collateral for
construction projects and borrowings. |
16
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
7. Inventories
Inventories as of September 30, 2015 and December 31, 2014 are as follows:
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
September 30, 2015 |
|
|
December 31, 2014 |
|
| Finished goods |
|
W |
|
|
|
|
1,647,331 |
|
| Merchandise |
|
|
900,984 |
|
|
|
902,347 |
|
| Semi-finished goods |
|
|
1,456,963 |
|
|
|
1,654,556 |
|
| Raw materials |
|
|
2,145,888 |
|
|
|
2,334,992 |
|
| Fuel and materials |
|
|
824,560 |
|
|
|
759,193 |
|
| Construction inventories |
|
|
855,284 |
|
|
|
1,129,370 |
|
| Materials-in-transit |
|
|
1,481,767 |
|
|
|
2,109,207 |
|
| Others |
|
|
90,293 |
|
|
|
96,274 |
|
|
|
|
|
|
|
|
|
|
|
|
|
9,345,700 |
|
|
|
10,633,270 |
|
| Less: Allowance for inventories valuation |
|
|
(254,603 |
) |
|
|
(161,940 |
) |
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
10,471,330 |
|
|
|
|
|
|
|
|
|
|
The amounts of loss on valuation of inventories recognized within cost of sales during the nine-month period ended
September 30, 2015 and the year ended December 31, 2014 were W123,745 million and W41,713 million, respectively.
8. Assets Held for Sale
Details of assets held for sale
as of September 30, 2015 and December 31, 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
September 30, 2015 |
|
|
December 31, 2014 |
|
| |
|
The controlling
company (*1,2,4) |
|
|
Subsidiaries
(*3,4) |
|
|
Total |
|
|
The controlling
company (*1,4) |
|
|
Subsidiaries
(*4,5,6,7) |
|
|
Total |
|
| Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents (*8) |
|
W |
|
|
|
|
1,130 |
|
|
|
1,130 |
|
|
|
— |
|
|
|
210,934 |
|
|
|
210,934 |
|
| Trade accounts and notes receivable and other receivables |
|
|
— |
|
|
|
2,534 |
|
|
|
2,534 |
|
|
|
— |
|
|
|
90,811 |
|
|
|
90,811 |
|
| Other financial assets |
|
|
484,325 |
|
|
|
4,281 |
|
|
|
488,606 |
|
|
|
580,062 |
|
|
|
21,028 |
|
|
|
601,090 |
|
| Inventories |
|
|
— |
|
|
|
1,661 |
|
|
|
1,661 |
|
|
|
— |
|
|
|
289,716 |
|
|
|
289,716 |
|
| Property, plant and equipment, net |
|
|
25,923 |
|
|
|
29,309 |
|
|
|
55,232 |
|
|
|
2,672 |
|
|
|
895,391 |
|
|
|
898,063 |
|
| Goodwill and other intangible assets, net |
|
|
— |
|
|
|
74,633 |
|
|
|
74,633 |
|
|
|
— |
|
|
|
7,627 |
|
|
|
7,627 |
|
| Other assets |
|
|
— |
|
|
|
2,848 |
|
|
|
2,848 |
|
|
|
— |
|
|
|
28,846 |
|
|
|
28,846 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
116,396 |
|
|
|
626,644 |
|
|
|
582,734 |
|
|
|
1,544,353 |
|
|
|
2,127,087 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Trade accounts and notes payable and other payables |
|
W |
|
|
|
|
4,624 |
|
|
|
4,624 |
|
|
|
— |
|
|
|
225,403 |
|
|
|
225,403 |
|
| Borrowings |
|
|
— |
|
|
|
54,707 |
|
|
|
54,707 |
|
|
|
— |
|
|
|
330,059 |
|
|
|
330,059 |
|
| Other liabilities |
|
|
— |
|
|
|
6,278 |
|
|
|
6,278 |
|
|
|
— |
|
|
|
35,520 |
|
|
|
35,520 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
65,609 |
|
|
|
65,609 |
|
|
|
— |
|
|
|
590,982 |
|
|
|
590,982 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
17
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
| (*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 recognized W95,737 million of impairment loss on Nacional Minerios S.A for the nine-month period ended September 30, 2015 since
the fair value less cost to sell was below carrying amount. |
| (*2) |
The Company determined to make the investment in kind of 1 FINEX facilities according to incorporating joint venture, and has signed in MOA with Mideast Integrated Steel Ltd. in India. The Company has classified the
related facilities of W25,892 million as assets held for sale. |
| (*3) |
The Company determined to dispose of its shares in PONUTech Co., Ltd., a subsidiary of the Company, agreed to Memorandum of Understanding (MOU) with SUKWON INDUSTRIAL.Co.,LTD on October 8, 2015 and classified the
accompanying assets and liabilities as assets and liabilities held for sale. The Company recognized an impairment loss of W7,727 million since the fair value less cost to sell was below carrying amount. |
| (*4) |
The controlling company and subsidiaries of the Company (POSCO M-TECH, POSCO COATED & COLOR STEEL Co., Ltd., POSCO CHEMTECH, POSCO ICT and POSCO-VIETNAM Co., Ltd.) determined to dispose of certain tangible
assets including land and disused facilities and classified them as assets held for sale. |
| (*5) |
The Company determined to dispose of 52.2% of its shares in SeAH Changwon Integrated Special Steel (formerly, POSCO Specialty Steel 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 asset held for sale was completed during the nine-month period ended September 30, 2015, and the Company recognized
W161,579 million of gain on disposal of assets held for sale. |
| (*6) |
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 nine-month period ended September 30, 2015, and the Company recognized
W38,843 million of gain on disposal of assets held for sale. |
| (*7) |
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 during the year ended December 31, 2014. Disposal of the assets held for sale was completed during the nine-month period ended September 30, 2015, and the Company recognized W121 million of gain
on disposal of assets held for sale. |
| (*8) |
Cash and cash equivalents classified as assets held for sale are included in the beginning and ending balance of cash and cash equivalents in the statement of cash flows for the nine-month period ended
September 30, 2015. |
18
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
9. Investments in Associates and Joint Ventures
| (a) |
Details of investments in associates as of September 30, 2015 and December 31, 2014 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
September 30, 2015 |
|
|
December 31, 2014 |
|
| Company |
|
Number of shares |
|
|
Ownership (%) |
|
|
Acquisition cost |
|
|
Book value |
|
|
Book value |
|
| [Domestic] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| POSCO PLANTEC Co., Ltd. (*1) |
|
|
133,711,880 |
|
|
|
73.94 |
|
|
W |
|
|
|
W |
|
|
|
|
— |
|
| EQP POSCO Global NO1 Natural Resources PEF |
|
|
178,565 |
|
|
|
28.70 |
|
|
|
178,566 |
|
|
|
177,370 |
|
|
|
176,899 |
|
| SeAH Changwon Integrated Special Steel (formerly, POSCO Specialty Steel Co., Ltd.) (*2,3,5) |
|
|
7,190,000 |
|
|
|
19.94 |
|
|
|
159,978 |
|
|
|
165,283 |
|
|
|
— |
|
| SNNC |
|
|
18,130,000 |
|
|
|
49.00 |
|
|
|
90,650 |
|
|
|
118,436 |
|
|
|
131,671 |
|
| QSONE Co., Ltd. |
|
|
200,000 |
|
|
|
50.00 |
|
|
|
84,395 |
|
|
|
83,729 |
|
|
|
83,849 |
|
| Incheon-Gimpo Expressway Co., Ltd. (*4) |
|
|
9,032,539 |
|
|
|
23.11 |
|
|
|
45,163 |
|
|
|
43,009 |
|
|
|
43,045 |
|
| UITrans LRT Co., Ltd. (*4) |
|
|
5,296,953 |
|
|
|
38.19 |
|
|
|
26,485 |
|
|
|
35,716 |
|
|
|
30,098 |
|
| BLUE OCEAN Private Equity Fund |
|
|
333 |
|
|
|
27.52 |
|
|
|
33,300 |
|
|
|
33,311 |
|
|
|
31,439 |
|
| CHUNGJU ENTERPRISE CITY DEVELOPMENT Co., Ltd (*4) |
|
|
2,008,000 |
|
|
|
25.10 |
|
|
|
10,040 |
|
|
|
14,783 |
|
|
|
19,801 |
|
| KoFC POSCO HANWHA KB |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shared Growth NO. 2. Private Equity Fund (*5) |
|
|
16,850,000 |
|
|
|
12.50 |
|
|
|
16,850 |
|
|
|
16,073 |
|
|
|
12,268 |
|
| Keystone-HYUNDAI SECURITIES NO. 1. Private Equity Fund |
|
|
11,000,000 |
|
|
|
35.13 |
|
|
|
11,000 |
|
|
|
9,528 |
|
|
|
— |
|
| KONES, Corp. |
|
|
3,250,000 |
|
|
|
41.67 |
|
|
|
6,893 |
|
|
|
5,728 |
|
|
|
5,430 |
|
| Others (31 companies) (*4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
61,651 |
|
|
|
33,511 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
981,899 |
|
|
|
568,011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| [Foreign] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| South-East Asia Gas Pipeline Company Ltd. |
|
|
135,219,000 |
|
|
|
25.04 |
|
|
|
150,779 |
|
|
|
205,365 |
|
|
|
172,805 |
|
| AES-VCM Mong Duong Power Company Limited |
|
|
— |
|
|
|
30.00 |
|
|
|
74,161 |
|
|
|
143,767 |
|
|
|
93,021 |
|
| 7623704 Canada Inc. (*5) |
|
|
114,452,000 |
|
|
|
10.40 |
|
|
|
124,341 |
|
|
|
136,702 |
|
|
|
117,100 |
|
| KOREA LNG LTD. |
|
|
2,400 |
|
|
|
20.00 |
|
|
|
135,205 |
|
|
|
90,169 |
|
|
|
72,089 |
|
| Nickel Mining Company SAS |
|
|
3,234,698 |
|
|
|
49.00 |
|
|
|
157,585 |
|
|
|
90,122 |
|
|
|
107,408 |
|
| Eureka Moly LLC |
|
|
— |
|
|
|
20.00 |
|
|
|
240,123 |
|
|
|
89,588 |
|
|
|
228,004 |
|
| AMCI (WA) PTY LTD. |
|
|
49 |
|
|
|
49.00 |
|
|
|
209,664 |
|
|
|
74,190 |
|
|
|
88,050 |
|
| NCR LLC |
|
|
— |
|
|
|
29.41 |
|
|
|
32,348 |
|
|
|
36,014 |
|
|
|
32,598 |
|
| Zhongyue POSCO (Qinhuangdao) Tinplate Industrial Co., Ltd |
|
|
10,200,000 |
|
|
|
34.00 |
|
|
|
9,517 |
|
|
|
21,372 |
|
|
|
21,032 |
|
| PT. Batutua Tembaga Raya |
|
|
128,285 |
|
|
|
24.10 |
|
|
|
14,785 |
|
|
|
19,705 |
|
|
|
14,653 |
|
| PT. Wampu Electric Power (*4) |
|
|
8,708,400 |
|
|
|
20.00 |
|
|
|
10,044 |
|
|
|
8,426 |
|
|
|
7,611 |
|
| POSCO SeAH Steel Wire(Nantong) Co., Ltd. |
|
|
50 |
|
|
|
25.00 |
|
|
|
4,723 |
|
|
|
7,536 |
|
|
|
6,969 |
|
| CAML RESOURCES PTY LTD. |
|
|
3,239 |
|
|
|
33.34 |
|
|
|
40,388 |
|
|
|
2,105 |
|
|
|
38,240 |
|
| Others (22 companies) (*4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
47,394 |
|
|
|
59,210 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
972,455 |
|
|
|
1,058,790 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
1,626,801 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
In September 2015, in order to improve its financial standing and normalize operation, the associate reached a workout agreement with its Creditor Financial Institutions Committee. As a result, the Company lost its
control over POSCO PLANTEC Co., Ltd. and classified its shares as investment in associate, which was initially recognized at its fair value based on active market price as of September 30, 2015. The Company recognized W71,079
million of gain on disposal of investment in subsidiary. |
| (*2) |
During the nine-month period ended September 30, 2015, the Company disposed of 52.2% of shares in SeAH Changwon Integrated Special Steel (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. |
| (*3) |
During the nine-month period ended September 30, 2015, POSCO Specialty Steel Co., Ltd. changed its corporate name to SeAH Changwon Integrated Special Steel. |
19
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
| (*4) |
Investment in associates is provided as collateral related to associates’ borrowings amounting to W104,882 and W110,721 as of September 30, 2015 and December 31, 2014,
respectively. |
| (*5) |
As of September 30, 2015, it was classified as an associate in spite of less than 20% of ownership percentage since the Company has significant influence over the investee when considering its structure of the
Board of Directors. |
| (b) |
Details of investments in joint ventures as of September 30, 2015 and December 31, 2014 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
September 30, 2015 |
|
|
December 31, 2014 |
|
| Company |
|
Number of shares |
|
|
Ownership (%) |
|
|
Acquisition cost |
|
|
Book value |
|
|
Book value |
|
| [Domestic] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| POSCO MITSUBISHI CARBON TECHNOLOGY |
|
|
11,568,000 |
|
|
|
60.00 |
|
|
W |
|
|
|
W |
|
|
|
|
112,837 |
|
| POSCO ES MATERIALS |
|
|
1,000,000 |
|
|
|
50.00 |
|
|
|
43,000 |
|
|
|
38,236 |
|
|
|
38,021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
143,785 |
|
|
|
150,858 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| [Foreign] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Roy Hill Holdings Pty Ltd. (*1) |
|
|
13,117,972 |
|
|
|
12.50 |
|
|
|
1,528,672 |
|
|
|
1,127,615 |
|
|
|
1,268,678 |
|
| POSCO-NPS Niobium LLC |
|
|
325,050,000 |
|
|
|
50.00 |
|
|
|
364,609 |
|
|
|
388,340 |
|
|
|
357,874 |
|
| DMSA/AMSA (*2) |
|
|
— |
|
|
|
4.00 |
|
|
|
193,182 |
|
|
|
157,330 |
|
|
|
165,094 |
|
| BX STEEL POSCO Cold Rolled Sheet Co., Ltd. |
|
|
— |
|
|
|
25.00 |
|
|
|
61,961 |
|
|
|
104,582 |
|
|
|
98,893 |
|
| CSP - Compania Siderurgica do Pecem |
|
|
827,771,230 |
|
|
|
20.00 |
|
|
|
469,891 |
|
|
|
75,496 |
|
|
|
260,906 |
|
| KOBRASCO |
|
|
2,010,719,185 |
|
|
|
50.00 |
|
|
|
32,950 |
|
|
|
69,865 |
|
|
|
99,787 |
|
| Others (10 companies) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
32,363 |
|
|
|
31,616 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,955,591 |
|
|
|
2,282,848 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
2,433,706 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
As of September 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 September 30, 2015 and December 31, 2014, the entire investment in the joint venture is provided as collateral in relation to guarantees for the joint venture. |
20
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
| (c) |
The movements of investments in associates and joint ventures for the nine-month period ended September 30, 2015 and the year ended December 31, 2014 were as follows: |
| |
1) |
For the nine-month period ended September 30, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
December 31, 2014
Book value |
|
|
Acquisition |
|
|
Dividend |
|
|
Share of
profits (losses) |
|
|
Other increase
(decrease) (*1) |
|
|
September 30, 2015
Book value |
|
| Company |
|
|
|
|
|
|
| [Domestic] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| POSCO PLANTEC Co., Ltd. |
|
W |
|
|
|
|
217,282 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
217,282 |
|
| EQP POSCO Global NO1 Natural Resources PEF |
|
|
176,899 |
|
|
|
— |
|
|
|
— |
|
|
|
471 |
|
|
|
— |
|
|
|
177,370 |
|
| SeAH Changwon Integrated Special Steel (formerly, POSCO Specialty Steel Co., Ltd.) |
|
|
— |
|
|
|
159,978 |
|
|
|
— |
|
|
|
5,312 |
|
|
|
(7 |
) |
|
|
165,283 |
|
| SNNC |
|
|
131,671 |
|
|
|
— |
|
|
|
— |
|
|
|
(13,235 |
) |
|
|
— |
|
|
|
118,436 |
|
| QSONE Co., Ltd. |
|
|
83,849 |
|
|
|
— |
|
|
|
— |
|
|
|
(120 |
) |
|
|
— |
|
|
|
83,729 |
|
| Incheon-Gimpo Expressway Co., Ltd. |
|
|
43,045 |
|
|
|
— |
|
|
|
— |
|
|
|
(272 |
) |
|
|
236 |
|
|
|
43,009 |
|
| UITrans LRT Co., Ltd. |
|
|
30,098 |
|
|
|
4,506 |
|
|
|
— |
|
|
|
1,170 |
|
|
|
(58 |
) |
|
|
35,716 |
|
| BLUE OCEAN Private Equity Fund |
|
|
31,439 |
|
|
|
— |
|
|
|
— |
|
|
|
3,128 |
|
|
|
(1,256 |
) |
|
|
33,311 |
|
| CHUNGJU ENTERPRISE CITY DEVELOPMENT Co., Ltd |
|
|
19,801 |
|
|
|
— |
|
|
|
— |
|
|
|
(5,018 |
) |
|
|
— |
|
|
|
14,783 |
|
| KoFC POSCO HANWHA KB Shared Growth NO. 2. Private Equity Fund |
|
|
12,268 |
|
|
|
3,725 |
|
|
|
— |
|
|
|
80 |
|
|
|
— |
|
|
|
16,073 |
|
| Keystone-HYUNDAI SECURITIES NO. 1. Private Equity Fund |
|
|
— |
|
|
|
11,000 |
|
|
|
— |
|
|
|
(1,543 |
) |
|
|
71 |
|
|
|
9,528 |
|
| KONES, Corp. |
|
|
5,430 |
|
|
|
— |
|
|
|
— |
|
|
|
298 |
|
|
|
— |
|
|
|
5,728 |
|
| POSCO MITSUBISHI CARBON TECHNOLOGY |
|
|
112,837 |
|
|
|
— |
|
|
|
— |
|
|
|
(7,288 |
) |
|
|
— |
|
|
|
105,549 |
|
| POSCO ES MATERIALS |
|
|
38,021 |
|
|
|
— |
|
|
|
— |
|
|
|
236 |
|
|
|
(21 |
) |
|
|
38,236 |
|
| Others (31 companies) |
|
|
33,511 |
|
|
|
28,873 |
|
|
|
— |
|
|
|
3,078 |
|
|
|
(3,811 |
) |
|
|
61,651 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
718,869 |
|
|
|
425,364 |
|
|
|
— |
|
|
|
(13,703 |
) |
|
|
(4,846 |
) |
|
|
1,125,684 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| [Foreign] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| South-East Asia Gas Pipeline Company Ltd. |
|
|
172,805 |
|
|
|
— |
|
|
|
(18,602 |
) |
|
|
34,054 |
|
|
|
17,108 |
|
|
|
205,365 |
|
| AES-VCM Mong Duong Power Company Limited |
|
|
93,021 |
|
|
|
23,146 |
|
|
|
— |
|
|
|
18,526 |
|
|
|
9,074 |
|
|
|
143,767 |
|
| 7623704 Canada Inc. |
|
|
117,100 |
|
|
|
— |
|
|
|
(1,775 |
) |
|
|
10,843 |
|
|
|
10,534 |
|
|
|
136,702 |
|
| KOREA LNG LTD. |
|
|
72,089 |
|
|
|
— |
|
|
|
(10,031 |
) |
|
|
10,126 |
|
|
|
17,985 |
|
|
|
90,169 |
|
| Nickel Mining Company SAS |
|
|
107,408 |
|
|
|
— |
|
|
|
— |
|
|
|
(16,201 |
) |
|
|
(1,085 |
) |
|
|
90,122 |
|
| Eureka Moly LLC |
|
|
228,004 |
|
|
|
— |
|
|
|
— |
|
|
|
(146,076 |
) |
|
|
7,660 |
|
|
|
89,588 |
|
| AMCI (WA) PTY LTD. |
|
|
88,050 |
|
|
|
— |
|
|
|
— |
|
|
|
(7,892 |
) |
|
|
(5,968 |
) |
|
|
74,190 |
|
| NCR LLC |
|
|
32,598 |
|
|
|
— |
|
|
|
— |
|
|
|
(54 |
) |
|
|
3,470 |
|
|
|
36,014 |
|
| Zhongyue POSCO (Qinhuangdao) Tinplate Industrial Co., Ltd |
|
|
21,032 |
|
|
|
— |
|
|
|
(376 |
) |
|
|
(649 |
) |
|
|
1,365 |
|
|
|
21,372 |
|
| PT. Batutua Tembaga Raya |
|
|
14,653 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,052 |
|
|
|
19,705 |
|
| PT. Wampu Electric Power |
|
|
7,611 |
|
|
|
1,015 |
|
|
|
— |
|
|
|
(811 |
) |
|
|
611 |
|
|
|
8,426 |
|
| POSCO SeAH Steel Wire (Nantong) Co., Ltd. |
|
|
6,969 |
|
|
|
— |
|
|
|
— |
|
|
|
(55 |
) |
|
|
622 |
|
|
|
7,536 |
|
| CAML RESOURCES PTY LTD. |
|
|
38,240 |
|
|
|
— |
|
|
|
— |
|
|
|
(31,888 |
) |
|
|
(4,247 |
) |
|
|
2,105 |
|
| Roy Hill Holdings Pty Ltd. |
|
|
1,268,678 |
|
|
|
— |
|
|
|
— |
|
|
|
(69,662 |
) |
|
|
(71,401 |
) |
|
|
1,127,615 |
|
| POSCO-NPS Niobium LLC |
|
|
357,874 |
|
|
|
— |
|
|
|
(13,177 |
) |
|
|
12,448 |
|
|
|
31,195 |
|
|
|
388,340 |
|
| DMSA/AMSA |
|
|
165,094 |
|
|
|
— |
|
|
|
— |
|
|
|
(20,934 |
) |
|
|
13,170 |
|
|
|
157,330 |
|
| BX STEEL POSCO Cold Rolled Sheet Co., Ltd. |
|
|
98,893 |
|
|
|
— |
|
|
|
— |
|
|
|
239 |
|
|
|
5,450 |
|
|
|
104,582 |
|
| CSP - Compania Siderurgica do Pecem |
|
|
260,906 |
|
|
|
— |
|
|
|
— |
|
|
|
(157,815 |
) |
|
|
(27,595 |
) |
|
|
75,496 |
|
| KOBRASCO |
|
|
99,787 |
|
|
|
— |
|
|
|
(24,380 |
) |
|
|
22,570 |
|
|
|
(28,112 |
) |
|
|
69,865 |
|
| Others (32 companies) |
|
|
90,826 |
|
|
|
1,529 |
|
|
|
(1,719 |
) |
|
|
(4,998 |
) |
|
|
(5,881 |
) |
|
|
79,757 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,341,638 |
|
|
|
25,690 |
|
|
|
(70,060 |
) |
|
|
(348,229 |
) |
|
|
(20,993 |
) |
|
|
2,928,046 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
451,054 |
|
|
|
(70,060 |
) |
|
|
(361,932 |
) |
|
|
(25,839 |
) |
|
|
4,053,730 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*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 September 30, 2015
(Unaudited)
| |
2) |
For the year ended December 31, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
December 31, 2013
Book value |
|
|
Acquisition |
|
|
Dividend |
|
|
Share of
profits (losses) |
|
|
Other increase
(decrease) (*1) |
|
|
December 31, 2014
Book value |
|
| Company |
|
|
|
|
|
|
| [Domestic] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| POSCO PLANTEC Co., Ltd. |
|
W |
|
|
|
|
25,356 |
|
|
|
— |
|
|
|
(210,616 |
) |
|
|
(48,943 |
) |
|
|
— |
|
| EQP POSCO Global NO1 Natural Resources PEF |
|
|
177,563 |
|
|
|
— |
|
|
|
— |
|
|
|
(664 |
) |
|
|
— |
|
|
|
176,899 |
|
| SNNC |
|
|
123,969 |
|
|
|
— |
|
|
|
(5,149 |
) |
|
|
13,873 |
|
|
|
(1,022 |
) |
|
|
131,671 |
|
| QSONE Co., Ltd. |
|
|
84,096 |
|
|
|
— |
|
|
|
— |
|
|
|
(247 |
) |
|
|
— |
|
|
|
83,849 |
|
| Incheon-Gimpo Expressway 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 HANWHA 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 CARBON TECHNOLOGY |
|
|
115,708 |
|
|
|
— |
|
|
|
— |
|
|
|
(2,835 |
) |
|
|
(36 |
) |
|
|
112,837 |
|
| POSCO ES MATERIALS |
|
|
40,386 |
|
|
|
— |
|
|
|
— |
|
|
|
(2,229 |
) |
|
|
(136 |
) |
|
|
38,021 |
|
| 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] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| South-East Asia Gas Pipeline Company Ltd. |
|
|
140,202 |
|
|
|
— |
|
|
|
— |
|
|
|
25,638 |
|
|
|
6,965 |
|
|
|
172,805 |
|
| AES-VCM Mong Duong Power Company Limited |
|
|
81,436 |
|
|
|
— |
|
|
|
— |
|
|
|
(3,845 |
) |
|
|
15,430 |
|
|
|
93,021 |
|
| 7623704 Canada Inc. |
|
|
119,516 |
|
|
|
— |
|
|
|
(5,505 |
) |
|
|
(1,678 |
) |
|
|
4,767 |
|
|
|
117,100 |
|
| KOREA LNG LTD. |
|
|
64,453 |
|
|
|
— |
|
|
|
(18,668 |
) |
|
|
18,613 |
|
|
|
7,691 |
|
|
|
72,089 |
|
| Nickel Mining Company SAS |
|
|
135,178 |
|
|
|
— |
|
|
|
— |
|
|
|
(17,391 |
) |
|
|
(10,379 |
) |
|
|
107,408 |
|
| Eureka Moly LLC |
|
|
217,513 |
|
|
|
— |
|
|
|
— |
|
|
|
(37 |
) |
|
|
10,528 |
|
|
|
228,004 |
|
| AMCI (WA) PTY LTD. |
|
|
98,467 |
|
|
|
— |
|
|
|
— |
|
|
|
(6,477 |
) |
|
|
(3,940 |
) |
|
|
88,050 |
|
| 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 |
|
| CAML RESOURCES PTY LTD. |
|
|
43,820 |
|
|
|
— |
|
|
|
— |
|
|
|
(2,191 |
) |
|
|
(3,389 |
) |
|
|
38,240 |
|
| 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 |
|
| 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 |
|
| CSP - Compania Siderurgica do Pecem |
|
|
263,419 |
|
|
|
75,966 |
|
|
|
— |
|
|
|
(57,127 |
) |
|
|
(21,352 |
) |
|
|
260,906 |
|
| 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 September 30, 2015
(Unaudited)
| (d) |
Summarized financial information of associates and joint ventures as of and for the nine-month period ended September 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] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| POSCO PLANTEC Co., Ltd. |
|
W |
|
|
|
|
688,877 |
|
|
|
(63,896 |
) |
|
|
365,124 |
|
|
|
(278,992 |
) |
| EQP POSCO Global NO1 Natural Resources PEF |
|
|
618,718 |
|
|
|
1,023 |
|
|
|
617,695 |
|
|
|
— |
|
|
|
1,627 |
|
| SeAH Changw on Integrated Special Steel (formerly, POSCO Specialty Steel Co., Ltd.) |
|
|
1,255,828 |
|
|
|
533,254 |
|
|
|
722,574 |
|
|
|
700,209 |
|
|
|
18,056 |
|
| SNNC |
|
|
800,972 |
|
|
|
543,364 |
|
|
|
257,608 |
|
|
|
400,997 |
|
|
|
(40,743 |
) |
| QSONE Co., Ltd. |
|
|
249,910 |
|
|
|
82,452 |
|
|
|
167,458 |
|
|
|
9,862 |
|
|
|
(240 |
) |
| Incheon-Gimpo Expressway Co., Ltd. |
|
|
586,108 |
|
|
|
402,037 |
|
|
|
184,071 |
|
|
|
— |
|
|
|
(1,098 |
) |
| UITrans LRT Co., Ltd. |
|
|
247,925 |
|
|
|
185,233 |
|
|
|
62,692 |
|
|
|
— |
|
|
|
(626 |
) |
| BLUE OCEAN Private Equity Fund |
|
|
380,291 |
|
|
|
259,250 |
|
|
|
121,041 |
|
|
|
457,757 |
|
|
|
11,368 |
|
| CHUNGJU ENTERPRISE CITY DEVELOPMENT Co., Ltd |
|
|
220,614 |
|
|
|
193,360 |
|
|
|
27,254 |
|
|
|
7,716 |
|
|
|
(19,992 |
) |
| KoFC POSCO HANWHA KB Shared Growth NO. 2. Private Equity Fund |
|
|
129,104 |
|
|
|
520 |
|
|
|
128,584 |
|
|
|
2,943 |
|
|
|
639 |
|
| Keystone-HYUNDAI SECURITIES NO. 1. Private Equity Fund |
|
|
59,405 |
|
|
|
27,015 |
|
|
|
32,390 |
|
|
|
— |
|
|
|
(4,657 |
) |
| KONES, Corp. |
|
|
3,148 |
|
|
|
1,831 |
|
|
|
1,317 |
|
|
|
3,148 |
|
|
|
716 |
|
| POSCO MITSUBISHI CARBON TECHNOLOGY |
|
|
482,630 |
|
|
|
307,664 |
|
|
|
174,966 |
|
|
|
— |
|
|
|
(12,146 |
) |
| POSCO ES MATERIALS |
|
|
79,657 |
|
|
|
34,741 |
|
|
|
44,916 |
|
|
|
21,321 |
|
|
|
472 |
|
| [Foreign] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| South-East Asia Gas Pipeline Company Ltd. |
|
|
2,183,707 |
|
|
|
1,360,213 |
|
|
|
823,494 |
|
|
|
391,527 |
|
|
|
139,146 |
|
| 7623704 Canada Inc. |
|
|
1,326,599 |
|
|
|
2 |
|
|
|
1,326,597 |
|
|
|
75,508 |
|
|
|
117,704 |
|
| KOREA LNG LTD. |
|
|
427,553 |
|
|
|
28 |
|
|
|
427,525 |
|
|
|
52,069 |
|
|
|
50,630 |
|
| Nickel Mining Company SAS |
|
|
451,367 |
|
|
|
213,269 |
|
|
|
238,098 |
|
|
|
104,909 |
|
|
|
(26,081 |
) |
| Zhongyue POSCO (Qinhuangdao) Tinplate Industrial Co., Ltd |
|
|
128,039 |
|
|
|
59,682 |
|
|
|
68,357 |
|
|
|
90,858 |
|
|
|
(2,379 |
) |
| PT. Batutua Tembaga Raya |
|
|
271,980 |
|
|
|
236,214 |
|
|
|
35,766 |
|
|
|
— |
|
|
|
— |
|
| PT. Wampu Electric Power |
|
|
196,772 |
|
|
|
157,698 |
|
|
|
39,074 |
|
|
|
13,531 |
|
|
|
(4,056 |
) |
| POSCO SeAH Steel Wire (Nantong) Co., Ltd. |
|
|
63,348 |
|
|
|
34,550 |
|
|
|
28,798 |
|
|
|
47,866 |
|
|
|
(340 |
) |
| CAML RESOURCES PTY LTD. |
|
|
136,340 |
|
|
|
33,822 |
|
|
|
102,518 |
|
|
|
121,743 |
|
|
|
(9,972 |
) |
| Roy Hill Holdings Pty Ltd. |
|
|
8,894,618 |
|
|
|
6,296,920 |
|
|
|
2,597,698 |
|
|
|
— |
|
|
|
(557,293 |
) |
| POSCO-NPS Niobium LLC |
|
|
776,476 |
|
|
|
— |
|
|
|
776,476 |
|
|
|
— |
|
|
|
24,896 |
|
| DMSA/AMSA |
|
|
9,597,234 |
|
|
|
6,785,805 |
|
|
|
2,811,429 |
|
|
|
584,758 |
|
|
|
(442,165 |
) |
| BX STEEL POSCO Cold Rolled Sheet Co., Ltd. |
|
|
678,467 |
|
|
|
287,754 |
|
|
|
390,713 |
|
|
|
733,546 |
|
|
|
952 |
|
| CSP - Compania Siderurgica do Pecem |
|
|
3,796,205 |
|
|
|
3,291,133 |
|
|
|
505,072 |
|
|
|
— |
|
|
|
(767,674 |
) |
| KOBRASCO |
|
|
182,467 |
|
|
|
42,737 |
|
|
|
139,730 |
|
|
|
68,301 |
|
|
|
45,140 |
|
23
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Company |
|
Assets |
|
|
Liabilities |
|
|
Equity |
|
|
Sales |
|
|
Net income (loss) |
|
| [Domestic] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| EQP POSCO Global NO1 Natural Resources PEF |
|
W |
|
|
|
|
1,044 |
|
|
|
620,916 |
|
|
|
— |
|
|
|
(576 |
) |
| SNNC |
|
|
826,597 |
|
|
|
528,246 |
|
|
|
298,351 |
|
|
|
345,836 |
|
|
|
41,117 |
|
| QSONE Co., Ltd. |
|
|
247,590 |
|
|
|
79,891 |
|
|
|
167,699 |
|
|
|
13,674 |
|
|
|
(603 |
) |
| Incheon-Gimpo Expressway 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 HANWHA 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 CARBON 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 |
) |
| KOREA LNG LTD. |
|
|
393,581 |
|
|
|
45 |
|
|
|
393,536 |
|
|
|
94,936 |
|
|
|
93,067 |
|
| Nickel Mining Company SAS |
|
|
410,230 |
|
|
|
140,860 |
|
|
|
269,370 |
|
|
|
133,975 |
|
|
|
(24,800 |
) |
| 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 |
|
| CAML RESOURCES PTY LTD. |
|
|
159,281 |
|
|
|
38,591 |
|
|
|
120,690 |
|
|
|
172,093 |
|
|
|
(6,570 |
) |
| 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 |
|
| 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 |
|
| CSP - Compania Siderurgica do Pecem |
|
|
3,060,008 |
|
|
|
1,467,004 |
|
|
|
1,593,004 |
|
|
|
— |
|
|
|
(90,649 |
) |
| 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 September 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 September 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 nine-month period ended September 30, 2015 and the year ended December 31, 2014 were as
follows:
| |
(a) |
For the nine-month period ended September 30, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Beginning |
|
|
Acquisitions |
|
|
Business
combination |
|
|
Disposals |
|
|
Depreciation (*1) |
|
|
Others (*2) |
|
|
Ending |
|
| Land |
|
W |
|
|
|
|
2,665 |
|
|
|
5,964 |
|
|
|
(433 |
) |
|
|
(12 |
) |
|
|
(76,469 |
) |
|
|
347,227 |
|
| Buildings |
|
|
591,647 |
|
|
|
53,239 |
|
|
|
26,750 |
|
|
|
(909 |
) |
|
|
(19,285 |
) |
|
|
74,773 |
|
|
|
726,215 |
|
| Structures |
|
|
2,060 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(189 |
) |
|
|
234 |
|
|
|
2,105 |
|
| Construction-in-progress |
|
|
46,373 |
|
|
|
8,361 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(15,294 |
) |
|
|
39,440 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
64,265 |
|
|
|
32,714 |
|
|
|
(1,342 |
) |
|
|
(19,486 |
) |
|
|
(16,756 |
) |
|
|
1,114,987 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
Impairment losses of investment property amounting to W12 million are included. |
| (*2) |
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 September 30, 2015
(Unaudited)
12. Property, Plant and Equipment, Net
Changes in the carrying value of property, plant and equipment for the nine-month period ended September 30, 2015 and the year ended December 31,
2014 were as follows:
| |
(a) |
For the nine-month period ended September 30, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Beginning |
|
|
Acquisitions |
|
|
Business
combination |
|
|
Disposals |
|
|
Depreciation (*1) |
|
|
Others (*2) |
|
|
Ending |
|
| Land |
|
W |
|
|
|
|
42,673 |
|
|
|
12,520 |
|
|
|
(30,034 |
) |
|
|
(1,517 |
) |
|
|
(184,838 |
) |
|
|
2,640,092 |
|
| Buildings |
|
|
5,359,324 |
|
|
|
34,862 |
|
|
|
56,156 |
|
|
|
(18,249 |
) |
|
|
(257,124 |
) |
|
|
51,977 |
|
|
|
5,226,946 |
|
| Structures |
|
|
3,030,163 |
|
|
|
28,143 |
|
|
|
— |
|
|
|
(2,912 |
) |
|
|
(160,259 |
) |
|
|
72,569 |
|
|
|
2,967,704 |
|
| Machinery and equipment |
|
|
21,199,885 |
|
|
|
99,413 |
|
|
|
301 |
|
|
|
(56,408 |
) |
|
|
(1,682,113 |
) |
|
|
1,773,854 |
|
|
|
21,334,932 |
|
| Vehicles |
|
|
56,695 |
|
|
|
9,112 |
|
|
|
— |
|
|
|
(1,303 |
) |
|
|
(13,805 |
) |
|
|
3,132 |
|
|
|
53,831 |
|
| Tools |
|
|
64,069 |
|
|
|
13,507 |
|
|
|
1,714 |
|
|
|
(605 |
) |
|
|
(22,217 |
) |
|
|
12,377 |
|
|
|
68,845 |
|
| Furniture and fixtures |
|
|
143,782 |
|
|
|
29,029 |
|
|
|
1,497 |
|
|
|
(1,193 |
) |
|
|
(45,468 |
) |
|
|
15,967 |
|
|
|
143,614 |
|
| Finance lease assets |
|
|
80,081 |
|
|
|
62 |
|
|
|
157 |
|
|
|
(72 |
) |
|
|
(6,029 |
) |
|
|
20,715 |
|
|
|
94,914 |
|
| Construction-in-progress |
|
|
2,505,908 |
|
|
|
1,707,208 |
|
|
|
— |
|
|
|
(3,771 |
) |
|
|
(15,650 |
) |
|
|
(1,999,028 |
) |
|
|
2,194,667 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
1,964,009 |
|
|
|
72,345 |
|
|
|
(114,547 |
) |
|
|
(2,204,182 |
) |
|
|
(233,275 |
) |
|
|
34,725,545 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
Impairment losses of property, plant and equipment amounting to W128,200 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 |
|
| Finance 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 September 30, 2015
(Unaudited)
13. Goodwill and Other Intangible Assets, Net
Changes in the carrying value of goodwill and other intangible assets for the nine-month period ended September 30, 2015 and the year ended
December 31, 2014 were as follows:
| |
(a) |
For the nine-month period ended September 30, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Beginning |
|
|
Acquisitions |
|
|
Disposals |
|
|
Amortization |
|
|
Impairment
loss |
|
|
Others (*2) |
|
|
Ending |
|
| Goodwill |
|
W |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(99,052 |
) |
|
|
(231,716 |
) |
|
|
1,464,376 |
|
| Intellectual property rights |
|
|
2,762,679 |
|
|
|
106,194 |
|
|
|
— |
|
|
|
(138,908 |
) |
|
|
(3,819 |
) |
|
|
(6,945 |
) |
|
|
2,719,201 |
|
| Premium in rental (*1) |
|
|
130,942 |
|
|
|
10,968 |
|
|
|
(8,222 |
) |
|
|
(129 |
) |
|
|
(2,167 |
) |
|
|
(3,656 |
) |
|
|
127,736 |
|
| Development expense |
|
|
168,746 |
|
|
|
5,132 |
|
|
|
(1,084 |
) |
|
|
(41,871 |
) |
|
|
(3,034 |
) |
|
|
12,531 |
|
|
|
140,420 |
|
| Port facilities usage rights |
|
|
156,444 |
|
|
|
— |
|
|
|
— |
|
|
|
(8,017 |
) |
|
|
— |
|
|
|
110,347 |
|
|
|
258,774 |
|
| Exploratation and evaluation assets |
|
|
92,459 |
|
|
|
58,599 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,763 |
) |
|
|
148,295 |
|
| Customer relationships |
|
|
641,625 |
|
|
|
— |
|
|
|
— |
|
|
|
(39,215 |
) |
|
|
(5,384 |
) |
|
|
(1,379 |
) |
|
|
595,647 |
|
| Power generation permit |
|
|
539,405 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
539,405 |
|
| Other intangible assets |
|
|
597,545 |
|
|
|
70,972 |
|
|
|
(19,554 |
) |
|
|
(55,287 |
) |
|
|
(618 |
) |
|
|
(90,319 |
) |
|
|
502,739 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
251,865 |
|
|
|
(28,860 |
) |
|
|
(283,427 |
) |
|
|
(114,074 |
) |
|
|
(213,900 |
) |
|
|
6,496,593 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*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 |
|
| Exploratation 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 and other provisions 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 September 30, 2015
(Unaudited)
14. Other Assets
Other current assets and other long-term assets as of September 30, 2015 and December 31, 2014 are as follows:
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
|
|
|
|
|
| |
|
September 30, 2015 |
|
|
December 31, 2014 |
|
| Current |
|
|
|
|
|
|
|
|
| Advance payments |
|
W |
|
|
|
|
845,114 |
|
| Prepaid expenses |
|
|
155,443 |
|
|
|
129,914 |
|
| Others |
|
|
4,578 |
|
|
|
1,397 |
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
976,425 |
|
|
|
|
|
|
|
|
|
|
| Non-current |
|
|
|
|
|
|
|
|
| Long-term advance payments |
|
W |
|
|
|
|
3,454 |
|
| Long-term prepaid expenses |
|
|
408,712 |
|
|
|
243,933 |
|
| Others (*1) |
|
|
291,513 |
|
|
|
260,162 |
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
507,549 |
|
|
|
|
|
|
|
|
|
|
| (*1) |
As of September 30, 2015 and December 31, 2014, the Company recognized tax assets amounting to W192,475 million and W143,157 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 results of the Company’s request for appeal and claim for
rectification are finalized. |
15. Borrowings
| (a) |
Short-term borrowings and current portion of long-term borrowings as of September 30, 2015 and December 31, 2014 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
|
|
|
|
|
|
|
|
|
| |
|
Bank |
|
Interest (%) |
|
September 30, 2015 |
|
|
December 31, 2014 |
|
| Short-term borrowings |
|
|
|
|
|
|
|
|
|
|
|
|
| Bank overdrafts |
|
Bank of America and others |
|
0.3~5.0 |
|
W |
|
|
|
|
105,673 |
|
| Short-term borrowings |
|
HSBC and others |
|
0.1~11.2 |
|
|
9,098,925 |
|
|
|
9,138,804 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,230,563 |
|
|
|
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 |
|
|
1,413,139 |
|
|
|
1,159,090 |
|
| Current portion of foreign loan (*1) |
|
NATIXIS |
|
2.0 |
|
|
421 |
|
|
|
418 |
|
| Current portion of debentures |
|
KDB Bank and others |
|
1.3~5.9 |
|
|
3,074,895 |
|
|
|
1,793,252 |
|
| Less: Current portion of discount on debentures issued |
|
|
|
|
|
|
(1,132 |
) |
|
|
(1,753 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,487,323 |
|
|
|
2,951,007 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
12,195,484 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
Korea Development Bank has provided guarantees related to the foreign loan. |
28
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
| (b) |
Long-term borrowings, excluding current portion as of September 30, 2015 and December 31, 2014 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
|
|
|
|
|
|
|
|
|
| |
|
Bank |
|
Interest (%) |
|
September 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 |
|
|
|
|
|
|
(93,400 |
) |
|
|
(109,949 |
) |
| Foreign loan (*1) |
|
NATIXIS |
|
2.0 |
|
|
210 |
|
|
|
627 |
|
| Bonds |
|
KDB Bank and others |
|
0.9~6.3 |
|
|
6,383,848 |
|
|
|
8,009,547 |
|
| Less: Discount on debentures issued |
|
|
|
|
|
|
(22,645 |
) |
|
|
(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 W6,410,919 million,
W20,447 million (ninety eight sheets of note receivable), W75,796 million, W4,928 million, W339,527 million and W162,811 million, respectively, are provided as
collateral related to short-term borrowings, long-term borrowings and debentures. |
16. Other Payables
Other payables as of September 30, 2015 and December 31, 2014 are as follows:
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
|
|
|
|
|
| |
|
September 30, 2015 |
|
|
December 31, 2014 |
|
| Current |
|
|
|
|
|
|
|
|
| Accounts payable |
|
W |
|
|
|
|
1,082,676 |
|
| Accrued expenses |
|
|
703,578 |
|
|
|
740,250 |
|
| Dividend payable |
|
|
7,544 |
|
|
|
12,077 |
|
| Finance lease liabilities |
|
|
20,441 |
|
|
|
21,888 |
|
| Withholdings |
|
|
387,879 |
|
|
|
337,822 |
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
2,194,713 |
|
|
|
|
|
|
|
|
|
|
| Non-current |
|
|
|
|
|
|
|
|
| Accounts payable |
|
W |
|
|
|
|
81,344 |
|
| Accrued expenses |
|
|
27,287 |
|
|
|
25,886 |
|
| Finance lease liabilities |
|
|
22,220 |
|
|
|
24,815 |
|
| Long-term withholdings |
|
|
27,810 |
|
|
|
37,941 |
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
169,986 |
|
|
|
|
|
|
|
|
|
|
29
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
17. Other Financial Liabilities
Other financial liabilities as of September 30, 2015 and December 31, 2014 are as follows:
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
|
|
|
|
|
| |
|
September 30, 2015 |
|
|
December 31, 2014 |
|
| Current |
|
|
|
|
|
|
|
|
| Derivatives liabilities (*1) |
|
W |
|
|
|
|
84,146 |
|
| Financial guarantee liabilities |
|
|
54,915 |
|
|
|
27,491 |
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
111,637 |
|
|
|
|
|
|
|
|
|
|
| Non-current |
|
|
|
|
|
|
|
|
| Derivatives liabilities |
|
W |
|
|
|
|
64,926 |
|
| Financial guarantee liabilities |
|
|
19,675 |
|
|
|
26,169 |
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
91,095 |
|
|
|
|
|
|
|
|
|
|
| (*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 Steel
Co., Ltd.). Accordingly, the Company has recognized derivatives liabilities amounting to W15,616 million as of September 30, 2015. |
18. Provisions
| (a) |
Provisions as of September 30, 2015 and December 31, 2014 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
September 30, 2015 |
|
|
December 31, 2014 |
|
| |
|
Current |
|
|
Non-current |
|
|
Current |
|
|
Non-current |
|
| Provision for bonus payments |
|
W |
|
|
|
|
— |
|
|
|
49,505 |
|
|
|
— |
|
| Provision for construction warranties |
|
|
13,699 |
|
|
|
64,721 |
|
|
|
16,352 |
|
|
|
63,996 |
|
| Provision for legal contingencies and claims (*1) |
|
|
— |
|
|
|
38,600 |
|
|
|
— |
|
|
|
50,424 |
|
| Provision for restoration (*2) |
|
|
16,754 |
|
|
|
28,907 |
|
|
|
39,336 |
|
|
|
35,462 |
|
| Others (*3,4) |
|
|
24,007 |
|
|
|
80,949 |
|
|
|
44,837 |
|
|
|
73,357 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
213,177 |
|
|
|
150,030 |
|
|
|
223,239 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
The Company recognized probable outflow of resources amounting to W31,894 million and W44,309 million as provisions for legal contingencies and asserted claims in relation to lawsuits
against the Company as of September 30, 2015 and December 31, 2014, respectively. |
| (*2) |
Due to contamination of land near the Company’s magnesium smelting plant located in Gangneung province, 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 technologies and materials available for now to recover the land. In addition, the Company has applied a discount rate of 2.62% to assess present value of these costs.
|
30
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
| (*3) |
As of September 30, 2015 and December 31, 2014, POSCO ENERGY CO., LTD., a subsidiary of the Company, recognized W45,967 million and W31,577 million of provisions for
warranties, respectively, for the service contract on fuel cell cased on its estimate of probable outflow of resources. |
| (*4) |
As of September 30, 2015 and December 31, 2014, the amount includes a provision of W23,600 million for expected outflow of resources in connection with the the performance guarantee for the
Hwaseong-Dongtan complexes development project of POSCO ENGINEERING & CONSTRUCTION., Ltd. |
| (b) |
Changes in provisions for the nine-month period ended September 30, 2015 and the year ended December 31, 2014 were as follows: |
| 1) |
For the nine-month period ended September 30, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Beginning |
|
|
Increase |
|
|
Utilization |
|
|
Reversal |
|
|
Others (*1) |
|
|
Ending |
|
| Provision for bonus payments |
|
W |
|
|
|
|
38,696 |
|
|
|
(49,345 |
) |
|
|
(1,410 |
) |
|
|
(2,270 |
) |
|
|
35,176 |
|
| Provision for construction warranties |
|
|
80,348 |
|
|
|
25,147 |
|
|
|
(15,521 |
) |
|
|
(4,359 |
) |
|
|
(7,195 |
) |
|
|
78,420 |
|
| Provision for legal contingencies and claims |
|
|
50,424 |
|
|
|
1,758 |
|
|
|
(2,467 |
) |
|
|
(4,058 |
) |
|
|
(7,057 |
) |
|
|
38,600 |
|
| Provision for restoration |
|
|
74,798 |
|
|
|
2,142 |
|
|
|
(31,667 |
) |
|
|
— |
|
|
|
388 |
|
|
|
45,661 |
|
| Others |
|
|
118,194 |
|
|
|
40,278 |
|
|
|
(35,012 |
) |
|
|
(6,972 |
) |
|
|
(11,532 |
) |
|
|
104,956 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
108,021 |
|
|
|
(134,012 |
) |
|
|
(16,799 |
) |
|
|
(27,666 |
) |
|
|
302,813 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
Includes adjustments of foreign currency translation differences and others. |
| 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 nine-month periods ended September 30, 2015 and 2014 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
For the three-month periods
ended September 30 |
|
|
For the nine-month periods
ended September 30 |
|
| |
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
| Expense related to post-employment benefit plans under defined contribution plans |
|
W |
|
|
|
|
5,872 |
|
|
|
19,009 |
|
|
|
17,425 |
|
31
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
| |
1) |
The amounts recognized in relation to defined benefit obligations in the statements of financial position as of September 30, 2015 and December 31, 2014 are as follows: |
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
September 30, 2015 |
|
|
December 31, 2014 |
|
| Present value of funded obligations |
|
W |
|
|
|
|
1,713,074 |
|
| Fair value of plan assets |
|
|
(1,406,617 |
) |
|
|
(1,427,918 |
) |
| Present value of non-funded obligations |
|
|
9,152 |
|
|
|
5,169 |
|
|
|
|
|
|
|
|
|
|
| Net defined benefit liabilities |
|
W |
|
|
|
|
290,325 |
|
|
|
|
|
|
|
|
|
|
| |
2) |
Changes in present value of defined benefit obligations for the nine-month period ended September 30, 2015 and the year ended December 31, 2014 were as follows: |
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
September 30, 2015 |
|
|
December 31, 2014 |
|
| Defined benefit obligation at the beginning of period |
|
W |
|
|
|
|
1,520,643 |
|
| Current service costs |
|
|
183,179 |
|
|
|
230,445 |
|
| Interest costs |
|
|
35,618 |
|
|
|
54,737 |
|
| Remeasurement |
|
|
49,564 |
|
|
|
85,166 |
|
| Business combinations |
|
|
— |
|
|
|
48,695 |
|
| Benefits paid |
|
|
(131,489 |
) |
|
|
(160,792 |
) |
| Others |
|
|
(66,120 |
) |
|
|
(60,651 |
) |
|
|
|
|
|
|
|
|
|
| Defined benefit obligation at the end of period |
|
W |
|
|
|
|
1,718,243 |
|
|
|
|
|
|
|
|
|
|
| |
3) |
Changes in fair value of plan assets for the nine-month period ended September 30, 2015 and the year ended December 31, 2014 were as follows: |
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
September 30, 2015 |
|
|
December 31, 2014 |
|
| Fair value of plan assets at the beginning of period |
|
W |
|
|
|
|
1,247,483 |
|
| Interest on plan assets |
|
|
30,752 |
|
|
|
47,296 |
|
| Remeasurement of plan assets |
|
|
(5,836 |
) |
|
|
(11,236 |
) |
| Contributions to plan assets |
|
|
100,422 |
|
|
|
273,867 |
|
| Business combinations |
|
|
— |
|
|
|
30,863 |
|
| Benefits paid |
|
|
(106,466 |
) |
|
|
(109,352 |
) |
| Others |
|
|
(40,173 |
) |
|
|
(51,003 |
) |
|
|
|
|
|
|
|
|
|
| Fair value of plan assets at the end of period |
|
W |
|
|
|
|
1,427,918 |
|
|
|
|
|
|
|
|
|
|
32
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
| |
4) |
The amounts recognized in condensed consolidated interim statements of comprehensive income (loss) for the three-month and nine-month periods ended September 30, 2015 and 2014 were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
For the three-month periods
ended September 30 |
|
|
For the nine-month periods
ended September 30 |
|
| |
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
| Current service costs |
|
W |
|
|
|
|
56,072 |
|
|
|
183,179 |
|
|
|
170,010 |
|
| Net interest costs |
|
|
1,733 |
|
|
|
2,070 |
|
|
|
4,866 |
|
|
|
5,953 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
58,142 |
|
|
|
188,045 |
|
|
|
175,963 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
20. Other Liabilities
Other liabilities as of September 30, 2015 and December 31, 2014 are as follows:
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
September 30, 2015 |
|
|
December 31, 2014 |
|
| Current |
|
|
|
|
|
|
|
|
| Due to customers for contract work |
|
W |
|
|
|
|
1,041,946 |
|
| Advances received |
|
|
954,523 |
|
|
|
763,168 |
|
| Unearned revenue |
|
|
14,556 |
|
|
|
21,627 |
|
| Withholdings |
|
|
218,566 |
|
|
|
167,002 |
|
| Others (*1) |
|
|
187,203 |
|
|
|
236,021 |
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
2,229,764 |
|
|
|
|
|
|
|
|
|
|
| Non-current |
|
|
|
|
|
|
|
|
| Advances received |
|
W |
|
|
|
|
108,496 |
|
| Unearned revenue |
|
|
17,690 |
|
|
|
1,170 |
|
| Others (*1) |
|
|
54,519 |
|
|
|
45,987 |
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
155,653 |
|
|
|
|
|
|
|
|
|
|
| (*1) |
Includes other current liabilities amounting to W167,185 million, W214,731 million and other long-term liabilities amounting to W8,893 million and
W8,819 million as of September 30, 2015 and December 31, 2014, respectively, due to proportionate consolidation of joint operations which are owned by POSCO’s subsidiaries including MT. Thorley. |
33
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
21. Financial Instruments
| (a) |
Classification of financial instruments |
| |
1) |
Financial assets as of September 30, 2015 and December 31, 2014 are as follows: |
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
September 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 |
|
|
2,028,766 |
|
|
|
2,420,241 |
|
| Held-to-maturity investments |
|
|
23,452 |
|
|
|
17,093 |
|
| Loans and receivables |
|
|
21,487,048 |
|
|
|
19,501,763 |
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
22,035,363 |
|
|
|
|
|
|
|
|
|
|
| 2) |
Financial liabilities as of September 30, 2015 and December 31, 2014 are as follows: |
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
September 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 |
|
|
3,238,481 |
|
|
|
4,039,255 |
|
| Borrowings |
|
|
27,330,887 |
|
|
|
27,428,257 |
|
| Financial guarantee liabilities |
|
|
74,590 |
|
|
|
53,660 |
|
| Others |
|
|
2,086,552 |
|
|
|
2,101,354 |
|
|
|
|
|
|
|
|
|
|
|
|
|
32,730,510 |
|
|
|
33,622,526 |
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
33,771,598 |
|
|
|
|
|
|
|
|
|
|
| 3) |
Finance income and costs by category of financial instrument for the nine-month periods ended September 30, 2015 and 2014 were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Finance income and costs |
|
|
|
|
| |
|
Interest
income
(expense) |
|
|
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 |
|
|
|
|
111,468 |
|
|
|
— |
|
|
|
254,594 |
|
|
|
— |
|
|
|
— |
|
|
|
366,062 |
|
|
|
— |
|
| Available-for-sale financial assets |
|
|
1,902 |
|
|
|
— |
|
|
|
— |
|
|
|
80,868 |
|
|
|
(93,874 |
) |
|
|
48,782 |
|
|
|
37,678 |
|
|
|
(195,970 |
) |
| Held-to-maturity investments |
|
|
347 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(698 |
) |
|
|
(351 |
) |
|
|
— |
|
| Loans and receivables |
|
|
158,697 |
|
|
|
— |
|
|
|
432,904 |
|
|
|
(11,720 |
) |
|
|
— |
|
|
|
(156 |
) |
|
|
579,725 |
|
|
|
— |
|
| Financial liabilities at fair value through profit or loss |
|
|
— |
|
|
|
(128,580 |
) |
|
|
— |
|
|
|
(218,009 |
) |
|
|
— |
|
|
|
— |
|
|
|
(346,589 |
) |
|
|
— |
|
| Financial liabilities at amortized cost |
|
|
(629,007 |
) |
|
|
— |
|
|
|
(899,339 |
) |
|
|
— |
|
|
|
— |
|
|
|
(105,197 |
) |
|
|
(1,633,543 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
(17,112 |
) |
|
|
(466,435 |
) |
|
|
105,733 |
|
|
|
(93,874 |
) |
|
|
(57,269 |
) |
|
|
(997,018 |
) |
|
|
(195,970 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
34
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Finance income and costs |
|
|
|
|
| |
|
Interest
income
(expense) |
|
|
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 |
|
|
|
|
90,336 |
|
|
|
— |
|
|
|
143,594 |
|
|
|
— |
|
|
|
— |
|
|
|
233,930 |
|
|
|
— |
|
| Available-for-sale financial assets |
|
|
254 |
|
|
|
— |
|
|
|
— |
|
|
|
200,112 |
|
|
|
(195,956 |
) |
|
|
41,290 |
|
|
|
45,700 |
|
|
|
(362,359 |
) |
| Held-to-maturity investments |
|
|
27 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
56 |
|
|
|
83 |
|
|
|
— |
|
| Loans and receivables |
|
|
165,052 |
|
|
|
— |
|
|
|
16,011 |
|
|
|
(15,743 |
) |
|
|
— |
|
|
|
491 |
|
|
|
165,811 |
|
|
|
— |
|
| Financial liabilities at fair value through profit or loss |
|
|
— |
|
|
|
(94,825 |
) |
|
|
— |
|
|
|
(158,394 |
) |
|
|
— |
|
|
|
— |
|
|
|
(253,219 |
) |
|
|
— |
|
| Financial liabilities at amortized cost |
|
|
(610,863 |
) |
|
|
— |
|
|
|
96,131 |
|
|
|
(38,597 |
) |
|
|
— |
|
|
|
(12,238 |
) |
|
|
(565,567 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
(4,489 |
) |
|
|
112,142 |
|
|
|
130,972 |
|
|
|
(195,956 |
) |
|
|
29,599 |
|
|
|
(373,262 |
) |
|
|
(362,359 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 4) |
Finance income and costs by category of financial instrument for the three-month periods ended September 30, 2015 and 2014 were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Finance income and costs |
|
|
|
|
| |
|
Interest
income
(expense) |
|
|
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 |
|
|
|
|
38,618 |
|
|
|
— |
|
|
|
111,618 |
|
|
|
— |
|
|
|
— |
|
|
|
150,236 |
|
|
|
— |
|
| Available-for-sale financial assets |
|
|
453 |
|
|
|
— |
|
|
|
— |
|
|
|
23,108 |
|
|
|
(30,434 |
) |
|
|
1,775 |
|
|
|
(5,098 |
) |
|
|
(169,320 |
) |
| Held-to-maturity investments |
|
|
131 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(716 |
) |
|
|
(585 |
) |
|
|
— |
|
| Loans and receivables |
|
|
54,708 |
|
|
|
— |
|
|
|
334,168 |
|
|
|
(3,543 |
) |
|
|
— |
|
|
|
(72 |
) |
|
|
385,261 |
|
|
|
— |
|
| Financial liabilities at fair value through profit or loss |
|
|
— |
|
|
|
(65,660 |
) |
|
|
— |
|
|
|
(109,569 |
) |
|
|
— |
|
|
|
— |
|
|
|
(175,229 |
) |
|
|
— |
|
| Financial liabilities at amortized cost |
|
|
(204,606 |
) |
|
|
— |
|
|
|
(713,903 |
) |
|
|
— |
|
|
|
— |
|
|
|
(51,629 |
) |
|
|
(970,138 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
(27,042 |
) |
|
|
(379,735 |
) |
|
|
21,614 |
|
|
|
(30,434 |
) |
|
|
(50,642 |
) |
|
|
(615,553 |
) |
|
|
(169,320 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Finance income and costs |
|
|
|
|
| |
|
Interest
income
(expense) |
|
|
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 |
|
|
|
|
(40,094 |
) |
|
|
— |
|
|
|
5,819 |
|
|
|
— |
|
|
|
— |
|
|
|
(34,275 |
) |
|
|
— |
|
| Available-for-sale financial assets |
|
|
211 |
|
|
|
— |
|
|
|
— |
|
|
|
80,920 |
|
|
|
(182,072 |
) |
|
|
3,628 |
|
|
|
(97,313 |
) |
|
|
(67,970 |
) |
| Held-to-maturity investments |
|
|
6 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
19 |
|
|
|
25 |
|
|
|
— |
|
| Loans and receivables |
|
|
50,878 |
|
|
|
— |
|
|
|
211,096 |
|
|
|
(5,500 |
) |
|
|
— |
|
|
|
557 |
|
|
|
257,031 |
|
|
|
— |
|
| Financial liabilities at fair value through profit or loss |
|
|
— |
|
|
|
14,929 |
|
|
|
— |
|
|
|
(26,638 |
) |
|
|
— |
|
|
|
— |
|
|
|
(11,709 |
) |
|
|
— |
|
| Financial liabilities at amortized cost |
|
|
(204,724 |
) |
|
|
— |
|
|
|
(283,114 |
) |
|
|
(20,966 |
) |
|
|
— |
|
|
|
(2,633 |
) |
|
|
(511,437 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
(25,165 |
) |
|
|
(72,018 |
) |
|
|
33,635 |
|
|
|
(182,072 |
) |
|
|
1,571 |
|
|
|
(397,678 |
) |
|
|
(67,970 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
35
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
| |
1) |
Fair value and book value |
The carrying amount and the fair value of financial instruments as
of September 30, 2015 and December 31, 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
September 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 |
|
|
|
|
1,678,026 |
|
|
|
1,963,289 |
|
|
|
1,963,289 |
|
| Derivatives assets held for trading (*2) |
|
|
169,280 |
|
|
|
169,280 |
|
|
|
96,266 |
|
|
|
96,266 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,847,306 |
|
|
|
1,847,306 |
|
|
|
2,059,555 |
|
|
|
2,059,555 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Assets measured at amortized cost (*3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents |
|
|
5,242,357 |
|
|
|
5,242,357 |
|
|
|
3,811,202 |
|
|
|
3,811,202 |
|
| Trade accounts and notes receivable, net |
|
|
10,311,370 |
|
|
|
10,311,370 |
|
|
|
11,865,391 |
|
|
|
11,865,391 |
|
| Loans and other receivables, net |
|
|
5,933,321 |
|
|
|
5,933,321 |
|
|
|
3,825,170 |
|
|
|
3,825,170 |
|
| Held-to-maturity investments |
|
|
23,452 |
|
|
|
23,452 |
|
|
|
17,093 |
|
|
|
17,093 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21,510,500 |
|
|
|
21,510,500 |
|
|
|
19,518,856 |
|
|
|
19,518,856 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities measured at fair value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Derivatives liabilities held for trading (*2) |
|
|
228,886 |
|
|
|
228,886 |
|
|
|
149,072 |
|
|
|
149,072 |
|
| Liabilities measured at amortized cost (*3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Trade accounts and notes payable |
|
|
3,238,481 |
|
|
|
3,238,481 |
|
|
|
4,039,255 |
|
|
|
4,039,255 |
|
| Borrowings |
|
|
27,330,887 |
|
|
|
28,223,478 |
|
|
|
27,428,257 |
|
|
|
27,756,615 |
|
| Financial guarantee liabilities |
|
|
74,590 |
|
|
|
74,590 |
|
|
|
53,660 |
|
|
|
53,660 |
|
| Others |
|
|
2,086,552 |
|
|
|
2,086,552 |
|
|
|
2,101,354 |
|
|
|
2,101,354 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
33,623,101 |
|
|
|
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 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 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. |
36
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
| |
2) |
The fair value hierarchy |
The fair values of financial instruments by fair value hierarchy as
of September 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 |
|
|
|
|
— |
|
|
|
193,057 |
|
|
|
1,678,026 |
|
| Derivatives assets held for trading |
|
|
— |
|
|
|
119,788 |
|
|
|
49,492 |
|
|
|
169,280 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
119,788 |
|
|
|
242,549 |
|
|
|
1,847,306 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Financial liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Derivatives liabilities held for trading |
|
W |
|
|
|
|
213,270 |
|
|
|
15,616 |
|
|
|
228,886 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (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.
37
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
22. Share Capital and Capital Surplus
| (a) |
Share capital as of September 30, 2015 and December 31, 2014 are as follows: |
|
|
|
|
|
|
|
|
|
| (Share, in Won) |
|
September 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 September 30, 2015, total shares of ADRs of 53,990,108 are equivalent to 13,497,527 of common stock. |
| (*2) |
As of September 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 September 30, 2015 and December 31, 2014 are as follows: |
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
September 30, 2015 |
|
|
December 31, 2014 |
|
| Share premium |
|
W |
|
|
|
|
463,825 |
|
| Gain on disposal of treasury shares |
|
|
783,802 |
|
|
|
783,791 |
|
| Other capital surplus (deficits) |
|
|
144,703 |
|
|
|
(163,898 |
) |
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
1,083,718 |
|
|
|
|
|
|
|
|
|
|
38
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
23. Hybrid Bonds
(a) Hybrid bonds classified as equity as of September 30, 2015 and December 31, 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Date of issue |
|
|
Date of maturity |
|
|
Rate of interest (%) |
|
|
September 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 September 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) |
|
|
Issue date ~ 2018-06-12 : 4.3% |
|
Issue date ~ 2023-06-12 : 4.6% |
|
|
Reset every 5 years as follows: |
|
Reset every 10 years as follows: |
| Interest rate |
|
• After 5 years: return on government bond (5 years) + 1.3% |
|
• After 10 years: return on government bond (10 years) + 1.4% |
|
|
• After 10 years: additionally +0.25% according to Step-up clauses |
|
• After 10 years: additionally +0.25% according to Step-up clauses |
|
|
• After 25 years: additionally +0.75% |
|
• 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 September 30, 2015 amounts to W2,156
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 September 30, 2015 and December 31, 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Date of issue |
|
|
Date of maturity |
|
|
Rate of interest (%) |
|
|
September 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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
39
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
(*1) Details of hybrid bonds of POSCO ENERGY Co., Ltd. as of September 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% |
|
Issue date ~ 2018-08-29: 4.72% |
|
Issue date ~ 2018-08-29: 5.21% |
| |
Reset every 5 years as follows: |
|
Reset every 5 years as follows: |
|
Reset every 5 years as follows: |
| |
• After 5 years: return on government bond (5 years) + 1.39% |
|
• After 5 years: return on government bond (5 years) + 1.45% |
|
• After 5 years: return on government bond (5 years) + 1.55% |
| |
• After 10 years: additionally +0.25% according to Step-up clauses |
|
• After 10 years: additionally +0.25% according to Step-up clauses |
|
• After 10 years: additionally +0.25% according to Step-up clauses |
| |
• After 30 years: additionally +0.75% |
|
• After 30 years: additionally +0.75% |
|
• 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 September 30, 2015 amounts to W2,059
million.
24. Reserves
Reserves as of
September 30, 2015 and December 31, 2014 are as follows:
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
September 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 |
|
|
(49,164 |
) |
|
|
144,783 |
|
| Foreign currency translation differences |
|
|
(85,466 |
) |
|
|
(187,740 |
) |
| Others |
|
|
(18,992 |
) |
|
|
(20,874 |
) |
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
(408,773 |
) |
|
|
|
|
|
|
|
|
|
25. Treasury Shares
As
of September 30, 2015, the Company holds 7,193,167 shares of treasury stock for price stabilization and others in accordance with the Board of Director’s resolution.
40
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
26. Selling and Administrative Expenses
| (a) |
Administrative expenses |
Administrative expenses for the three-month and nine-month periods
ended September 30, 2015 and 2014 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
For the three-month periods
ended September 30 |
|
|
For the nine-month periods
ended September 30 |
|
| |
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
| Wages and salaries |
|
W |
|
|
|
|
195,904 |
|
|
|
617,202 |
|
|
|
572,349 |
|
| Expenses related to post-employment benefits |
|
|
20,766 |
|
|
|
16,176 |
|
|
|
64,850 |
|
|
|
49,858 |
|
| Other employee benefits |
|
|
44,492 |
|
|
|
47,594 |
|
|
|
155,070 |
|
|
|
129,559 |
|
| Travel |
|
|
11,927 |
|
|
|
12,563 |
|
|
|
35,912 |
|
|
|
36,218 |
|
| Depreciation |
|
|
25,316 |
|
|
|
26,676 |
|
|
|
82,270 |
|
|
|
79,922 |
|
| Amortization |
|
|
41,556 |
|
|
|
23,733 |
|
|
|
124,266 |
|
|
|
121,813 |
|
| Communication |
|
|
2,358 |
|
|
|
3,200 |
|
|
|
9,313 |
|
|
|
10,086 |
|
| Electric power |
|
|
1,765 |
|
|
|
2,925 |
|
|
|
7,403 |
|
|
|
9,440 |
|
| Taxes and public dues |
|
|
10,250 |
|
|
|
11,909 |
|
|
|
52,684 |
|
|
|
40,368 |
|
| Rental |
|
|
24,794 |
|
|
|
35,237 |
|
|
|
93,875 |
|
|
|
105,240 |
|
| Repairs |
|
|
2,293 |
|
|
|
3,333 |
|
|
|
8,942 |
|
|
|
9,408 |
|
| Entertainment |
|
|
3,725 |
|
|
|
4,467 |
|
|
|
11,714 |
|
|
|
12,552 |
|
| Advertising |
|
|
20,177 |
|
|
|
21,408 |
|
|
|
65,567 |
|
|
|
72,704 |
|
| Research & development |
|
|
32,906 |
|
|
|
36,500 |
|
|
|
88,536 |
|
|
|
108,205 |
|
| Service fees |
|
|
32,013 |
|
|
|
48,824 |
|
|
|
156,500 |
|
|
|
148,282 |
|
| Supplies |
|
|
1,816 |
|
|
|
3,487 |
|
|
|
7,935 |
|
|
|
8,371 |
|
| Vehicles maintenance |
|
|
2,031 |
|
|
|
2,978 |
|
|
|
8,234 |
|
|
|
9,012 |
|
| Industry association fee |
|
|
2,152 |
|
|
|
1,760 |
|
|
|
10,439 |
|
|
|
9,810 |
|
| Conference |
|
|
3,414 |
|
|
|
4,438 |
|
|
|
12,200 |
|
|
|
12,659 |
|
| Contribution to provisions |
|
|
3,318 |
|
|
|
3,197 |
|
|
|
9,745 |
|
|
|
12,363 |
|
| Bad debt allowance |
|
|
40,372 |
|
|
|
32,115 |
|
|
|
74,817 |
|
|
|
51,624 |
|
| Others |
|
|
5,026 |
|
|
|
12,761 |
|
|
|
25,372 |
|
|
|
28,949 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
551,185 |
|
|
|
1,722,846 |
|
|
|
1,638,792 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
41
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
Selling expenses for the three-month and nine-month periods ended
September 30, 2015 and 2014 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
For the three-month periods
ended September 30 |
|
|
For the nine-month periods
ended September 30 |
|
| |
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
| Freight and custody expenses |
|
W |
|
|
|
|
391,497 |
|
|
|
1,166,832 |
|
|
|
1,137,464 |
|
| Operating expenses for distribution center |
|
|
2,594 |
|
|
|
2,516 |
|
|
|
8,295 |
|
|
|
7,819 |
|
| Sales commissions |
|
|
15,829 |
|
|
|
7,802 |
|
|
|
47,717 |
|
|
|
43,882 |
|
| Sales advertising |
|
|
417 |
|
|
|
564 |
|
|
|
1,539 |
|
|
|
1,462 |
|
| Sales promotion |
|
|
5,740 |
|
|
|
7,998 |
|
|
|
16,147 |
|
|
|
18,731 |
|
| Sample |
|
|
707 |
|
|
|
1,004 |
|
|
|
2,027 |
|
|
|
2,568 |
|
| Sales insurance premium |
|
|
7,097 |
|
|
|
9,635 |
|
|
|
22,873 |
|
|
|
29,315 |
|
| Contract cost |
|
|
7,012 |
|
|
|
6,457 |
|
|
|
21,874 |
|
|
|
24,021 |
|
| Others |
|
|
3,674 |
|
|
|
1,647 |
|
|
|
8,970 |
|
|
|
6,426 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
429,120 |
|
|
|
1,296,274 |
|
|
|
1,271,688 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
27. Finance Income and Costs
Details of finance income and costs for the three-month and nine-month periods ended September 30, 2015 and 2014 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
For the three-month periods
ended September 30 |
|
|
For the nine-month periods
ended September 30 |
|
| |
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
| Finance income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest income |
|
W |
|
|
|
|
51,094 |
|
|
|
160,946 |
|
|
|
165,332 |
|
| Dividend income |
|
|
1,775 |
|
|
|
3,628 |
|
|
|
48,782 |
|
|
|
41,290 |
|
| Gain on foreign currency transactions |
|
|
350,549 |
|
|
|
214,729 |
|
|
|
755,144 |
|
|
|
697,992 |
|
| Gain on foreign currency translations |
|
|
339,103 |
|
|
|
(35,758 |
) |
|
|
578,411 |
|
|
|
336,627 |
|
| Gain on derivatives transactions |
|
|
112,768 |
|
|
|
67,707 |
|
|
|
258,456 |
|
|
|
212,373 |
|
| Gain on valuations of derivatives |
|
|
41,236 |
|
|
|
(21,149 |
) |
|
|
129,080 |
|
|
|
86,935 |
|
| Gain on disposals of available-for-sale investment |
|
|
23,132 |
|
|
|
81,031 |
|
|
|
81,180 |
|
|
|
200,433 |
|
| Others |
|
|
2,860 |
|
|
|
3,169 |
|
|
|
11,458 |
|
|
|
9,775 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
364,451 |
|
|
|
2,023,457 |
|
|
|
1,750,757 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Finance costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest expenses |
|
W |
|
|
|
|
204,723 |
|
|
|
629,007 |
|
|
|
610,862 |
|
| Loss on foreign currency transactions |
|
|
397,872 |
|
|
|
211,665 |
|
|
|
819,932 |
|
|
|
642,117 |
|
| Loss on foreign currency translations |
|
|
671,515 |
|
|
|
39,324 |
|
|
|
980,058 |
|
|
|
280,360 |
|
| Loss on derivatives transactions |
|
|
110,728 |
|
|
|
88,526 |
|
|
|
221,882 |
|
|
|
227,215 |
|
| Loss on valuation of derivatives |
|
|
68,278 |
|
|
|
5,558 |
|
|
|
146,192 |
|
|
|
95,764 |
|
| Impairment loss on available-for-sale investment |
|
|
30,434 |
|
|
|
182,072 |
|
|
|
93,874 |
|
|
|
195,956 |
|
| Others |
|
|
58,835 |
|
|
|
30,261 |
|
|
|
129,530 |
|
|
|
71,745 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
762,129 |
|
|
|
3,020,475 |
|
|
|
2,124,019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
42
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
28. Other Non-Operating Income and Expenses
Details of other non-operating income and expenses for the three-month and nine-month periods ended September 30, 2015 and 2014 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
For the three-month periods
ended September 30 |
|
|
For the nine-month periods
ended September 30 |
|
| |
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
| Other non-operating income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gain on disposals of assets held for sale |
|
W |
|
|
|
|
— |
|
|
|
227,009 |
|
|
|
— |
|
| Gain on disposals of investment in subsidiaries, associates and joint ventures |
|
|
72,678 |
|
|
|
236 |
|
|
|
79,114 |
|
|
|
8,214 |
|
| Gain on disposals of property, plant and equipment |
|
|
4,493 |
|
|
|
1,070 |
|
|
|
19,312 |
|
|
|
4,998 |
|
| Gain on disposals of intangible assets |
|
|
204 |
|
|
|
292 |
|
|
|
669 |
|
|
|
547 |
|
| Outsourcing income |
|
|
66 |
|
|
|
5,223 |
|
|
|
653 |
|
|
|
16,426 |
|
| Gain on disposals of wastes |
|
|
192 |
|
|
|
1,100 |
|
|
|
361 |
|
|
|
19,542 |
|
| Gain from claim compensation |
|
|
14,573 |
|
|
|
4,776 |
|
|
|
22,793 |
|
|
|
12,888 |
|
| Penalty income from early termination of contracts |
|
|
1,617 |
|
|
|
1,251 |
|
|
|
3,045 |
|
|
|
9,017 |
|
| Premium income |
|
|
2,138 |
|
|
|
825 |
|
|
|
8,887 |
|
|
|
1,284 |
|
| Others |
|
|
24,855 |
|
|
|
11,111 |
|
|
|
79,173 |
|
|
|
47,510 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
25,884 |
|
|
|
441,016 |
|
|
|
120,426 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other non-operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Impairment losses on assets held for sale |
|
W |
|
|
|
|
14,917 |
|
|
|
132,244 |
|
|
|
14,917 |
|
| Loss on disposals of investment in subsidiaries, associates and joint ventures |
|
|
338 |
|
|
|
— |
|
|
|
11,887 |
|
|
|
— |
|
| Loss on disposals of property, plant and equipment |
|
|
12,655 |
|
|
|
7,211 |
|
|
|
70,918 |
|
|
|
26,911 |
|
| Impairment losses on property, plant and equipment |
|
|
56,292 |
|
|
|
29,167 |
|
|
|
128,200 |
|
|
|
34,032 |
|
| Loss on disposals of intangible assets |
|
|
449 |
|
|
|
99 |
|
|
|
4,334 |
|
|
|
408 |
|
| Impairment losses on intangible assets |
|
|
73,141 |
|
|
|
2,671 |
|
|
|
114,074 |
|
|
|
30,753 |
|
| Other bad debt expenses |
|
|
50,452 |
|
|
|
14,550 |
|
|
|
133,492 |
|
|
|
95,488 |
|
| Donations |
|
|
11,729 |
|
|
|
7,424 |
|
|
|
36,659 |
|
|
|
41,498 |
|
| Idle tangible assets expenses |
|
|
2,967 |
|
|
|
5,558 |
|
|
|
10,448 |
|
|
|
7,330 |
|
| Contribution to provisions |
|
|
(2,954 |
) |
|
|
23,576 |
|
|
|
3,645 |
|
|
|
135,241 |
|
| Others (*1,2) |
|
|
303,893 |
|
|
|
29,157 |
|
|
|
373,714 |
|
|
|
324,705 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
134,330 |
|
|
|
1,019,615 |
|
|
|
711,283 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
The Company recorded litigation expense of W299,037 million in connection with its settlement with Nippon Steel & Sumitomo Metal Corporation for a civil lawsuit regarding improperly acquired
trade secrets and patents during the three-month and nine-month periods ended September 30, 2015. (Note 33) |
| (*2) |
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 W179,403 million, primarily
related to VAT, in the nine-month period ended September 30, 2014. |
43
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of September 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 nine-month periods ended September 30, 2015 and 2014 were as follows (excluding finance costs and income tax expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
For the three-month periods
ended September 30 |
|
|
For the nine-month periods
ended September 30 |
|
| |
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
| Changes in inventories including raw materials and consumables used |
|
W |
|
|
|
|
2,815,002 |
|
|
|
6,917,300 |
|
|
|
8,011,138 |
|
| Cost of merchandises sold |
|
|
5,936,311 |
|
|
|
7,694,213 |
|
|
|
19,506,704 |
|
|
|
22,748,297 |
|
| Wages and salaries including expenses related to post-employment benefits |
|
|
833,524 |
|
|
|
808,907 |
|
|
|
2,461,846 |
|
|
|
2,367,768 |
|
| Outsourced processing cost |
|
|
1,890,432 |
|
|
|
2,126,812 |
|
|
|
6,302,987 |
|
|
|
6,901,443 |
|
| Electricity expenses |
|
|
276,209 |
|
|
|
321,501 |
|
|
|
928,198 |
|
|
|
1,029,431 |
|
| Depreciation expenses (*1) |
|
|
698,611 |
|
|
|
746,454 |
|
|
|
2,095,456 |
|
|
|
2,134,605 |
|
| Amortization expenses |
|
|
96,930 |
|
|
|
88,270 |
|
|
|
283,427 |
|
|
|
247,519 |
|
| Freight and custody expenses |
|
|
362,199 |
|
|
|
391,497 |
|
|
|
1,166,832 |
|
|
|
1,137,464 |
|
| Sales commissions |
|
|
15,829 |
|
|
|
7,802 |
|
|
|
47,717 |
|
|
|
43,882 |
|
| Loss on disposals of property, plant and equipment |
|
|
12,655 |
|
|
|
7,211 |
|
|
|
70,918 |
|
|
|
26,911 |
|
| Impairment losses on property, plant and equipment |
|
|
56,292 |
|
|
|
29,167 |
|
|
|
128,200 |
|
|
|
34,032 |
|
| Impairment losses on intangible assets |
|
|
73,141 |
|
|
|
2,671 |
|
|
|
114,074 |
|
|
|
30,753 |
|
| Donations |
|
|
11,729 |
|
|
|
7,424 |
|
|
|
36,659 |
|
|
|
41,498 |
|
| Other expenses |
|
|
357,020 |
|
|
|
478,541 |
|
|
|
3,176,195 |
|
|
|
1,921,010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
15,525,472 |
|
|
|
43,236,513 |
|
|
|
46,675,751 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
Includes depreciation expense of investment property. |
30. Income Taxes
The effective tax rate of the Company for the nine-month periods ended September 30, 2015 and 2014 was 255.9% and 41.9%, respectively.
The effective tax rate for the nine-month period ended September 30, 2015 was higher than the statutory tax rate of 24% for the controlling company
mainly due to the followings: 1) 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 2) 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 nine-month period ended September 30, 2014 is higher than the statutory tax rate of 24% for the controlling company due to the
followings: 1) effect of additional income tax payment due to tax investigation and 2) 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.
44
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
31. Earnings per Share
Basic and diluted earnings (loss) per share for the three-month and nine-month periods ended September 30, 2015 and 2014 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in Won except per share information) |
|
For the three-month periods
ended September 30 |
|
|
For the nine-month periods
ended September 30 |
|
| |
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
| Profit attributable to controlling interest |
|
W |
|
|
|
|
237,817,137,569 |
|
|
|
(4,863,510,568 |
) |
|
|
818,828,287,027 |
|
| Interests of hybrid bonds |
|
|
(8,347,872,419 |
) |
|
|
(8,347,872,419 |
) |
|
|
(24,699,275,257 |
) |
|
|
(24,699,275,257 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(549,974,968,486 |
) |
|
|
229,469,265,150 |
|
|
|
(29,562,785,825 |
) |
|
|
794,129,011,770 |
|
| Weighted-average number of common shares outstanding (*1) |
|
|
79,993,620 |
|
|
|
79,784,263 |
|
|
|
79,993,350 |
|
|
|
79,784,063 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic and diluted earnings (loss) per share |
|
W |
|
|
|
|
2,876 |
|
|
|
(370 |
) |
|
|
9,953 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) The weighted-average number of common shares used to calculate basic and diluted earnings (loss) per share are as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Share) |
|
For the three-month periods
ended September 30 |
|
|
For the nine-month periods
ended September 30 |
|
| |
|
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 |
|
|
(7,193,215 |
) |
|
|
(7,402,572 |
) |
|
|
(7,193,485 |
) |
|
|
(7,402,772 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted-average number of common shares outstanding |
|
W |
|
|
|
|
79,784,263 |
|
|
|
79,993,350 |
|
|
|
79,784,063 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Since there were no potential shares of common stock which had dilutive effects as of September 30, 2015 and 2014, diluted
earnings (loss) per share is equal to basic earnings (loss) per share.
45
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
32. Related Party Transactions
| (a) |
Significant transactions between the controlling company and related companies for the nine-month periods ended September 30, 2015 and 2014 were as follows: |
| |
1) |
For the nine-month period ended September 30, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Sales and others (*1) |
|
|
Purchase and others (*2) |
|
| |
|
Sales |
|
|
Others |
|
|
Purchase of
material |
|
|
Purchase of
fixed assets |
|
|
Outsourced
processing cost |
|
|
Others |
|
| Subsidiaries (*3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| POSCO ENGINEERING & CONSTRUCTION., LTD. |
|
W |
|
|
|
|
114 |
|
|
|
19 |
|
|
|
358,910 |
|
|
|
1,822 |
|
|
|
29,398 |
|
| POSCO Processing & Service |
|
|
839,457 |
|
|
|
— |
|
|
|
338,817 |
|
|
|
— |
|
|
|
— |
|
|
|
1,829 |
|
| POSCO COATED & COLOR STEEL Co., Ltd. |
|
|
298,089 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7,510 |
|
|
|
56 |
|
| POSCO ICT (*4) |
|
|
893 |
|
|
|
5 |
|
|
|
— |
|
|
|
180,537 |
|
|
|
22,249 |
|
|
|
131,964 |
|
| eNtoB Corporation |
|
|
— |
|
|
|
— |
|
|
|
203,061 |
|
|
|
5,118 |
|
|
|
94 |
|
|
|
15,004 |
|
| POSCO CHEMTECH |
|
|
340,549 |
|
|
|
24,756 |
|
|
|
387,038 |
|
|
|
6,893 |
|
|
|
225,706 |
|
|
|
1,180 |
|
| POSCO ENERGY CO., LTD. |
|
|
140,252 |
|
|
|
999 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
13 |
|
| POSCO TMC Co., Ltd. |
|
|
202,421 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,058 |
|
|
|
1,017 |
|
| POSCO AST |
|
|
283,513 |
|
|
|
3 |
|
|
|
4,115 |
|
|
|
— |
|
|
|
29,363 |
|
|
|
412 |
|
| POSHIMETAL Co., Ltd. |
|
|
9,071 |
|
|
|
118 |
|
|
|
114,935 |
|
|
|
— |
|
|
|
— |
|
|
|
33 |
|
| Daewoo International Corporation |
|
|
2,652,467 |
|
|
|
34,341 |
|
|
|
37,732 |
|
|
|
— |
|
|
|
— |
|
|
|
865 |
|
| SeAH Changwon Integrated Special Steel (formerly, POSCO Specialty Steel Co., Ltd.) (*5) |
|
|
2,811 |
|
|
|
176,904 |
|
|
|
8,239 |
|
|
|
— |
|
|
|
515 |
|
|
|
75 |
|
| POSCO PLANTEC Co., Ltd. (*5) |
|
|
4,280 |
|
|
|
33 |
|
|
|
2,544 |
|
|
|
116,912 |
|
|
|
15,135 |
|
|
|
13,649 |
|
| POSCO Thainox Public Company Limited |
|
|
203,411 |
|
|
|
10 |
|
|
|
3,833 |
|
|
|
— |
|
|
|
— |
|
|
|
28 |
|
| PT. KRAKATAU POSCO |
|
|
— |
|
|
|
— |
|
|
|
115,557 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO America Corporation |
|
|
496,793 |
|
|
|
7 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
139 |
|
| POSCO Canada Ltd. |
|
|
— |
|
|
|
— |
|
|
|
95,936 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO Asia Co., Ltd. |
|
|
1,365,277 |
|
|
|
873 |
|
|
|
202,537 |
|
|
|
— |
|
|
|
182 |
|
|
|
1,120 |
|
| Qingdao Pohang Stainless Steel Co., Ltd. |
|
|
97,498 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
46 |
|
| POSCO JAPAN Co., Ltd. |
|
|
785,031 |
|
|
|
9,383 |
|
|
|
18,625 |
|
|
|
2,198 |
|
|
|
201 |
|
|
|
1,086 |
|
| POSCO MEXICO S.A. DE C.V. |
|
|
201,101 |
|
|
|
189 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
| POSCO Maharashtra Steel Private Limited |
|
|
302,720 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
31 |
|
| Others (*6) |
|
|
667,261 |
|
|
|
11,960 |
|
|
|
182,468 |
|
|
|
73,807 |
|
|
|
161,069 |
|
|
|
78,332 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,896,022 |
|
|
|
259,695 |
|
|
|
1,715,456 |
|
|
|
744,375 |
|
|
|
464,904 |
|
|
|
276,279 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Associates and joint ventures (*3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| SeAH Changwon Integrated Special Steel (formerly, POSCO Specialty Steel Co., Ltd.) (*5) |
|
|
3,547 |
|
|
|
— |
|
|
|
3,327 |
|
|
|
— |
|
|
|
268 |
|
|
|
1 |
|
| SNNC |
|
|
1,934 |
|
|
|
412 |
|
|
|
326,679 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO-SAMSUNG-Slovakia Processing Center |
|
|
19,187 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Others (*7,8) |
|
|
12,023 |
|
|
|
40,278 |
|
|
|
43,220 |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
36,691 |
|
|
|
40,690 |
|
|
|
373,226 |
|
|
|
— |
|
|
|
269 |
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
300,385 |
|
|
|
2,088,682 |
|
|
|
744,375 |
|
|
|
465,173 |
|
|
|
276,280 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*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 September 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 (Note 9). |
| (*6) |
The Company borrowed USD 17.42 million from POSCO-Uruguay S.A, a subsidiary of the Company, during the nine-month period ended September 30, 2015. |
| (*7) |
The Company lended USD 60 million to CSP, an associate of the Company, and the entire amount of loan was collected during the nine-month period ended September 30, 2015. |
| (*8) |
The Company collected the loan of USD 3.85 million from LLP POSUK Titanium, an associate of the Company, during the nine-month period ended September 30, 2015. |
46
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
| |
2) |
For the nine-month period ended September 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 |
|
|
|
|
16,731 |
|
|
|
— |
|
|
|
716,827 |
|
|
|
3,689 |
|
|
|
18,372 |
|
| POSCO Processing & Service |
|
|
794,689 |
|
|
|
8,648 |
|
|
|
632,748 |
|
|
|
— |
|
|
|
— |
|
|
|
1,199 |
|
| POSCO COATED & COLOR STEEL Co., Ltd. |
|
|
332,862 |
|
|
|
10 |
|
|
|
— |
|
|
|
— |
|
|
|
8,623 |
|
|
|
116 |
|
| POSCO ICT |
|
|
635 |
|
|
|
2,542 |
|
|
|
— |
|
|
|
139,152 |
|
|
|
19,364 |
|
|
|
117,870 |
|
| eNtoB Corporation |
|
|
— |
|
|
|
1 |
|
|
|
193,717 |
|
|
|
2,590 |
|
|
|
108 |
|
|
|
13,501 |
|
| POSCO CHEMTECH |
|
|
397,910 |
|
|
|
20,926 |
|
|
|
382,897 |
|
|
|
3,650 |
|
|
|
226,683 |
|
|
|
748 |
|
| POSCO M-TECH |
|
|
144 |
|
|
|
21 |
|
|
|
92,729 |
|
|
|
1,292 |
|
|
|
148,432 |
|
|
|
6,256 |
|
| POSCO ENERGY CO., LTD. |
|
|
131,365 |
|
|
|
918 |
|
|
|
— |
|
|
|
2,263 |
|
|
|
— |
|
|
|
20 |
|
| POSCO TMC Co., Ltd. |
|
|
180,327 |
|
|
|
38 |
|
|
|
— |
|
|
|
— |
|
|
|
795 |
|
|
|
1,152 |
|
| POSCO AST |
|
|
390,673 |
|
|
|
2 |
|
|
|
8,112 |
|
|
|
— |
|
|
|
47,431 |
|
|
|
1,526 |
|
| POSHIMETAL Co., Ltd. |
|
|
7,714 |
|
|
|
3,617 |
|
|
|
124,103 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Daewoo International Corporation |
|
|
2,661,942 |
|
|
|
20,628 |
|
|
|
84,180 |
|
|
|
— |
|
|
|
— |
|
|
|
2,077 |
|
| POSCO America Corporation |
|
|
524,797 |
|
|
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
179 |
|
| POSCO Canada Ltd. |
|
|
— |
|
|
|
— |
|
|
|
109,832 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO Asia Co., Ltd. |
|
|
1,605,969 |
|
|
|
89 |
|
|
|
131,006 |
|
|
|
— |
|
|
|
10,006 |
|
|
|
1,338 |
|
| Qingdao Pohang Stainless Steel Co., Ltd. |
|
|
51,238 |
|
|
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO JAPAN Co., Ltd. |
|
|
1,054,186 |
|
|
|
— |
|
|
|
10,363 |
|
|
|
892 |
|
|
|
3 |
|
|
|
766 |
|
| POSCO MEXICO S.A. DE C.V. |
|
|
203,241 |
|
|
|
775 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO Maharashtra Steel Private Limited |
|
|
307,527 |
|
|
|
610 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Others |
|
|
694,170 |
|
|
|
8,697 |
|
|
|
165,851 |
|
|
|
39,561 |
|
|
|
24,962 |
|
|
|
86,537 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,359,039 |
|
|
|
84,257 |
|
|
|
1,935,538 |
|
|
|
906,227 |
|
|
|
490,096 |
|
|
|
251,657 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Associates and joint ventures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| SNNC |
|
|
2,454 |
|
|
|
5,322 |
|
|
|
272,288 |
|
|
|
— |
|
|
|
— |
|
|
|
5 |
|
| POSCO PLANTEC Co., Ltd. |
|
|
11,764 |
|
|
|
43 |
|
|
|
2,358 |
|
|
|
65,962 |
|
|
|
10,643 |
|
|
|
11,748 |
|
| Others |
|
|
23,886 |
|
|
|
40,900 |
|
|
|
47,954 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
38,104 |
|
|
|
46,265 |
|
|
|
322,600 |
|
|
|
65,962 |
|
|
|
10,643 |
|
|
|
11,753 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
130,522 |
|
|
|
2,258,138 |
|
|
|
972,189 |
|
|
|
500,739 |
|
|
|
263,410 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
47
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
| (b) |
Significant transactions between the controlling company and related companies for the three-month periods ended September 30, 2015 and 2014 were as follows: |
| |
1) |
For the three-month period ended September 30, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (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 |
|
|
|
|
24 |
|
|
|
— |
|
|
|
67,549 |
|
|
|
— |
|
|
|
62 |
|
| POSCO Processing & Service |
|
|
305,176 |
|
|
|
— |
|
|
|
91,934 |
|
|
|
— |
|
|
|
— |
|
|
|
197 |
|
| POSCO COATED & COLOR STEEL Co., Ltd. |
|
|
99,689 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,812 |
|
|
|
2 |
|
| POSCO ICT |
|
|
213 |
|
|
|
1 |
|
|
|
— |
|
|
|
96,025 |
|
|
|
7,580 |
|
|
|
43,535 |
|
| eNtoB Corporation |
|
|
— |
|
|
|
— |
|
|
|
56,609 |
|
|
|
2,722 |
|
|
|
41 |
|
|
|
4,540 |
|
| POSCO CHEMTECH |
|
|
94,719 |
|
|
|
7,123 |
|
|
|
127,539 |
|
|
|
711 |
|
|
|
75,685 |
|
|
|
681 |
|
| POSCO ENERGY CO., LTD. |
|
|
44,075 |
|
|
|
384 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO TMC Co., Ltd. |
|
|
79,405 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
392 |
|
|
|
383 |
|
| POSCO AST |
|
|
84,368 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10,092 |
|
|
|
303 |
|
| POSHIMETAL Co., Ltd. |
|
|
2,554 |
|
|
|
43 |
|
|
|
32,811 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Daewoo International Corporation |
|
|
870,337 |
|
|
|
— |
|
|
|
10,983 |
|
|
|
— |
|
|
|
— |
|
|
|
96 |
|
| POSCO PLANTEC Co., Ltd. |
|
|
299 |
|
|
|
8 |
|
|
|
809 |
|
|
|
52,420 |
|
|
|
4,675 |
|
|
|
2,727 |
|
| POSCO Thainox Public Company Limited |
|
|
63,593 |
|
|
|
— |
|
|
|
533 |
|
|
|
— |
|
|
|
— |
|
|
|
3 |
|
| POSCO America Corporation |
|
|
160,721 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
54 |
|
| POSCO Canada Ltd. |
|
|
— |
|
|
|
— |
|
|
|
31,912 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO Asia Co., Ltd. |
|
|
443,568 |
|
|
|
294 |
|
|
|
77,282 |
|
|
|
— |
|
|
|
87 |
|
|
|
883 |
|
| Qingdao Pohang Stainless Steel Co., Ltd. |
|
|
16,647 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO JAPAN Co., Ltd. |
|
|
277,524 |
|
|
|
— |
|
|
|
6,691 |
|
|
|
524 |
|
|
|
201 |
|
|
|
567 |
|
| POSCO MEXICO S.A. DE C.V. |
|
|
68,672 |
|
|
|
36 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
| POSCO Maharashtra Steel Private Limited |
|
|
94,782 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
31 |
|
| Others (*1) |
|
|
204,367 |
|
|
|
1,835 |
|
|
|
61,956 |
|
|
|
28,633 |
|
|
|
54,226 |
|
|
|
32,070 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,911,809 |
|
|
|
9,748 |
|
|
|
499,059 |
|
|
|
248,584 |
|
|
|
154,791 |
|
|
|
86,136 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Associates and joint ventures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| SeAH Changwon Integrated Special Steel (formerly, POSCO Specialty Steel Co., Ltd.) |
|
|
1,894 |
|
|
|
— |
|
|
|
655 |
|
|
|
— |
|
|
|
39 |
|
|
|
— |
|
| SNNC |
|
|
729 |
|
|
|
129 |
|
|
|
114,537 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO-SAMSUNG-Slovakia Processing Center |
|
|
4,788 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Others (*2) |
|
|
2,787 |
|
|
|
8,879 |
|
|
|
14,925 |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,198 |
|
|
|
9,008 |
|
|
|
130,117 |
|
|
|
— |
|
|
|
40 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
18,756 |
|
|
|
629,176 |
|
|
|
248,584 |
|
|
|
154,831 |
|
|
|
86,136 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
The Company borrowed USD 17.42 million from POSCO-Uruguay S.A, a subsidiary of the Company, during the three-month period ended September 30, 2015. |
| (*2) |
The Company collected the loan of USD 60 million from CSP, an associate of the Company, during the three-month period ended September 30, 2015. |
48
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
| |
2) |
For the three-month period ended September 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 |
|
|
|
|
57 |
|
|
|
— |
|
|
|
126,342 |
|
|
|
429 |
|
|
|
5,853 |
|
| POSCO Processing & Service |
|
|
276,632 |
|
|
|
70 |
|
|
|
158,940 |
|
|
|
— |
|
|
|
— |
|
|
|
938 |
|
| POSCO COATED & COLOR STEEL Co., Ltd. |
|
|
104,224 |
|
|
|
9 |
|
|
|
— |
|
|
|
— |
|
|
|
3,353 |
|
|
|
50 |
|
| POSCO ICT |
|
|
28 |
|
|
|
52 |
|
|
|
— |
|
|
|
41,090 |
|
|
|
6,679 |
|
|
|
37,896 |
|
| eNtoB Corporation |
|
|
— |
|
|
|
1 |
|
|
|
70,830 |
|
|
|
911 |
|
|
|
73 |
|
|
|
4,437 |
|
| POSCO CHEMTECH |
|
|
130,111 |
|
|
|
5,492 |
|
|
|
130,166 |
|
|
|
902 |
|
|
|
73,985 |
|
|
|
191 |
|
| POSCO M-TECH |
|
|
49 |
|
|
|
5 |
|
|
|
29,117 |
|
|
|
402 |
|
|
|
46,955 |
|
|
|
1,745 |
|
| POSCO ENERGY CO., LTD. |
|
|
46,760 |
|
|
|
320 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO TMC Co., Ltd. |
|
|
64,923 |
|
|
|
38 |
|
|
|
— |
|
|
|
— |
|
|
|
267 |
|
|
|
388 |
|
| POSCO AST |
|
|
123,996 |
|
|
|
2 |
|
|
|
3,276 |
|
|
|
— |
|
|
|
14,852 |
|
|
|
675 |
|
| POSHIMETAL Co., Ltd. |
|
|
2,447 |
|
|
|
1,304 |
|
|
|
43,115 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Daewoo International Corporation |
|
|
954,810 |
|
|
|
23 |
|
|
|
14,115 |
|
|
|
— |
|
|
|
— |
|
|
|
421 |
|
| POSCO America Corporation |
|
|
162,205 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO Canada Ltd. |
|
|
— |
|
|
|
— |
|
|
|
27,343 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO Asia Co., Ltd. |
|
|
595,816 |
|
|
|
36 |
|
|
|
34,069 |
|
|
|
— |
|
|
|
1,125 |
|
|
|
670 |
|
| Qingdao Pohang Stainless Steel Co., Ltd. |
|
|
16,343 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO JAPAN Co., Ltd. |
|
|
334,806 |
|
|
|
— |
|
|
|
4,001 |
|
|
|
433 |
|
|
|
— |
|
|
|
319 |
|
| POSCO MEXICO S.A. DE C.V. |
|
|
67,186 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO Maharashtra Steel Private Limited |
|
|
195,744 |
|
|
|
29 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Others |
|
|
230,688 |
|
|
|
79 |
|
|
|
55,199 |
|
|
|
13,883 |
|
|
|
7,991 |
|
|
|
28,245 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,319,787 |
|
|
|
7,517 |
|
|
|
570,171 |
|
|
|
183,963 |
|
|
|
155,709 |
|
|
|
81,828 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Associates and joint ventures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| SNNC |
|
|
411 |
|
|
|
49 |
|
|
|
108,530 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO PLANTEC Co., Ltd. |
|
|
3,364 |
|
|
|
19 |
|
|
|
858 |
|
|
|
28,607 |
|
|
|
4,296 |
|
|
|
9,090 |
|
| Others |
|
|
9,748 |
|
|
|
11,434 |
|
|
|
15,355 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13,523 |
|
|
|
11,502 |
|
|
|
124,743 |
|
|
|
28,607 |
|
|
|
4,296 |
|
|
|
9,090 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
19,019 |
|
|
|
694,914 |
|
|
|
212,570 |
|
|
|
160,005 |
|
|
|
90,918 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
49
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
| (c) |
The related account balances of significant transactions between the controlling company and related companies as of September 30, 2015 and December 31, 2014 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Receivables |
|
|
Payables |
|
| |
|
Trade accounts and
notes receivable |
|
|
Others |
|
|
Total |
|
|
Trade accounts and
notes payable |
|
|
Accounts
payable |
|
|
Others |
|
|
Total |
|
| Subsidiaries |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| POSCO ENGINEERING & CONSTRUCTION., LTD. |
|
W |
|
|
|
|
39,327 |
|
|
|
39,391 |
|
|
|
— |
|
|
|
7,161 |
|
|
|
109 |
|
|
|
7,270 |
|
| POSCO Processing & Service |
|
|
85,326 |
|
|
|
125 |
|
|
|
85,451 |
|
|
|
4,215 |
|
|
|
237 |
|
|
|
— |
|
|
|
4,452 |
|
| POSCO COATED & COLOR STEEL Co., Ltd. |
|
|
72,065 |
|
|
|
49 |
|
|
|
72,114 |
|
|
|
— |
|
|
|
5 |
|
|
|
897 |
|
|
|
902 |
|
| POSCO ICT |
|
|
— |
|
|
|
66 |
|
|
|
66 |
|
|
|
1,076 |
|
|
|
34,810 |
|
|
|
2,088 |
|
|
|
37,974 |
|
| eNtoB Corporation |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7,501 |
|
|
|
11,642 |
|
|
|
13 |
|
|
|
19,156 |
|
| POSCO CHEMTECH |
|
|
31,285 |
|
|
|
4,088 |
|
|
|
35,373 |
|
|
|
55,481 |
|
|
|
11,930 |
|
|
|
20,094 |
|
|
|
87,505 |
|
| POSCO ENERGY CO., LTD. |
|
|
17,718 |
|
|
|
1,976 |
|
|
|
19,694 |
|
|
|
— |
|
|
|
— |
|
|
|
1,945 |
|
|
|
1,945 |
|
| POSCO TMC Co., Ltd. |
|
|
78,048 |
|
|
|
23 |
|
|
|
78,071 |
|
|
|
— |
|
|
|
20 |
|
|
|
203 |
|
|
|
223 |
|
| POSCO AST |
|
|
59,635 |
|
|
|
41 |
|
|
|
59,676 |
|
|
|
— |
|
|
|
1,711 |
|
|
|
3,803 |
|
|
|
5,514 |
|
| POSHIMETAL Co., Ltd. |
|
|
— |
|
|
|
4,804 |
|
|
|
4,804 |
|
|
|
— |
|
|
|
9,403 |
|
|
|
1 |
|
|
|
9,404 |
|
| Daewoo International Corporation |
|
|
172,299 |
|
|
|
— |
|
|
|
172,299 |
|
|
|
— |
|
|
|
95 |
|
|
|
— |
|
|
|
95 |
|
| POSCO Thainox Public Company Limited |
|
|
63,593 |
|
|
|
— |
|
|
|
63,593 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO America Corporation |
|
|
58,786 |
|
|
|
— |
|
|
|
58,786 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO Asia Co., Ltd. |
|
|
198,449 |
|
|
|
243 |
|
|
|
198,692 |
|
|
|
4,414 |
|
|
|
95 |
|
|
|
— |
|
|
|
4,509 |
|
| Qingdao Pohang Stainless Steel Co., Ltd. |
|
|
6,703 |
|
|
|
— |
|
|
|
6,703 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO MEXICO S.A. DE C.V. |
|
|
85,777 |
|
|
|
— |
|
|
|
85,777 |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
2 |
|
| POSCO Maharashtra Steel Private Limited |
|
|
285,965 |
|
|
|
— |
|
|
|
285,965 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Others (*1) |
|
|
142,439 |
|
|
|
3,780 |
|
|
|
146,219 |
|
|
|
13,176 |
|
|
|
29,692 |
|
|
|
45,949 |
|
|
|
88,817 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,358,152 |
|
|
|
54,522 |
|
|
|
1,412,674 |
|
|
|
85,863 |
|
|
|
106,803 |
|
|
|
75,102 |
|
|
|
267,768 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Associates and joint ventures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| SeAH Changwon Integrated Special Steel (formerly, POSCO Specialty Steel Co., Ltd.) |
|
|
1,605 |
|
|
|
— |
|
|
|
1,605 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| SNNC |
|
|
263 |
|
|
|
22 |
|
|
|
285 |
|
|
|
27,651 |
|
|
|
— |
|
|
|
— |
|
|
|
27,651 |
|
| POSCO PLANTEC Co., Ltd. |
|
|
94 |
|
|
|
4 |
|
|
|
98 |
|
|
|
1,213 |
|
|
|
10,692 |
|
|
|
6 |
|
|
|
11,911 |
|
| Others |
|
|
667 |
|
|
|
12,206 |
|
|
|
12,873 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,629 |
|
|
|
12,232 |
|
|
|
14,861 |
|
|
|
28,864 |
|
|
|
10,692 |
|
|
|
6 |
|
|
|
39,562 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
66,754 |
|
|
|
1,427,535 |
|
|
|
114,727 |
|
|
|
117,495 |
|
|
|
75,108 |
|
|
|
307,330 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
Other payables include a loan of USD 17.42 million borrowed from POSCO-Uruguay S.A. |
50
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Receivables |
|
|
Payables |
|
| |
|
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 Integrated 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) |
Other receivables of the accompanying associate includes loans amounting to USD 3.85 million. |
51
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
| (d) |
Significant transactions between the Company, excluding the controlling company, and related companies for the nine-month periods ended September 30, 2015 and 2014 were as follows: |
| |
1) |
For the nine-month period ended September 30, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Sales and others |
|
|
Purchase and others |
|
|
Finance
transaction(*1) |
|
| |
|
Sales |
|
|
Others |
|
|
Purchase of
material |
|
|
Others |
|
|
Loan (collection) |
|
| Associates and joint ventures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| SeAH Changwon Integrated Special Steel (formerly, POSCO Specialty Steel Co., Ltd.) |
|
W |
|
|
|
|
— |
|
|
|
36,866 |
|
|
|
1,982 |
|
|
|
— |
|
| New Songdo International City Development, LLC |
|
|
343,699 |
|
|
|
— |
|
|
|
— |
|
|
|
597 |
|
|
|
— |
|
| SNNC |
|
|
21,706 |
|
|
|
41 |
|
|
|
— |
|
|
|
52,790 |
|
|
|
— |
|
| Posco e&c Songdo International Building |
|
|
4,725 |
|
|
|
— |
|
|
|
— |
|
|
|
19,053 |
|
|
|
— |
|
| VSC POSCO Steel Corporation |
|
|
17,684 |
|
|
|
— |
|
|
|
2,149 |
|
|
|
3 |
|
|
|
(2,024 |
) |
| USS-POSCO Industries |
|
|
279,014 |
|
|
|
— |
|
|
|
912 |
|
|
|
— |
|
|
|
— |
|
| CSP - Compania Siderurgica do Pecem |
|
|
666,618 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Zhongyue POSCO (Qinhuangdao) Tinplate Industrial Co., Ltd |
|
|
57,267 |
|
|
|
— |
|
|
|
53,693 |
|
|
|
— |
|
|
|
(222 |
) |
| BX STEEL POSCO Cold Rolled Sheet Co., Ltd. |
|
|
3 |
|
|
|
— |
|
|
|
16,895 |
|
|
|
— |
|
|
|
— |
|
| POS-SEAHSTEELWIRE(TIANJIN)CO., Ltd |
|
|
6,762 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
429 |
|
| POSCO SeAH Steel Wire (Nantong) Co., Ltd. |
|
|
20,947 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
953 |
|
| Zhangjiagang Pohang Refractories Co., Ltd. |
|
|
715 |
|
|
|
12 |
|
|
|
16,470 |
|
|
|
1,368 |
|
|
|
— |
|
| Sebang Steel |
|
|
— |
|
|
|
— |
|
|
|
23,076 |
|
|
|
— |
|
|
|
— |
|
| SHANGHAI WAIGAOQIAO FREE TRADE ZONE LANSHENG DAEWOO IN’L TRADING CO., LTD. |
|
|
167,658 |
|
|
|
— |
|
|
|
3,040 |
|
|
|
3,190 |
|
|
|
— |
|
| DMSA/AMSA |
|
|
800 |
|
|
|
7,061 |
|
|
|
— |
|
|
|
— |
|
|
|
29,734 |
|
| South-East Asia Gas Pipeline Company Ltd. |
|
|
— |
|
|
|
21,854 |
|
|
|
— |
|
|
|
— |
|
|
|
4,513 |
|
| Others |
|
|
186,348 |
|
|
|
1,035 |
|
|
|
8,769 |
|
|
|
2,510 |
|
|
|
12,080 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
30,003 |
|
|
|
161,870 |
|
|
|
81,493 |
|
|
|
45,463 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*1) |
Most transactions in relation to loan agreements for related parties have arisen from Daewoo International Corporation and POSCO Investment Co., Ltd. |
52
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
| |
2) |
For the nine-month period ended September 30, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Sales and others |
|
|
Purchase and others |
|
|
Finance
transaction |
|
| |
|
Sales |
|
|
Others |
|
|
Purchase of
material |
|
|
Others |
|
|
Loan (collection) |
|
| Associates and joint ventures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| New Songdo International City Development, LLC |
|
W |
|
|
|
|
— |
|
|
|
— |
|
|
|
38 |
|
|
|
— |
|
| SNNC |
|
|
110,306 |
|
|
|
441 |
|
|
|
3,798 |
|
|
|
— |
|
|
|
— |
|
| Posco e&c Songdo International Building |
|
|
4,758 |
|
|
|
— |
|
|
|
— |
|
|
|
17,624 |
|
|
|
— |
|
| POSCO PLANTEC Co., Ltd. |
|
|
15,866 |
|
|
|
2 |
|
|
|
2,732 |
|
|
|
99,699 |
|
|
|
— |
|
| VSC POSCO Steel Corporation |
|
|
1,874 |
|
|
|
— |
|
|
|
12,599 |
|
|
|
— |
|
|
|
(2,396 |
) |
| USS-POSCO Industries |
|
|
358,627 |
|
|
|
— |
|
|
|
3,273 |
|
|
|
— |
|
|
|
— |
|
| Nickel Mining Company SAS |
|
|
5,558 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
15,759 |
|
| AN KHANH NEW CITY DEVELOPMENT J.V CO., LTD. |
|
|
22,605 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(235 |
) |
| CSP - Compania Siderurgica do Pecem |
|
|
1,236,414 |
|
|
|
— |
|
|
|
— |
|
|
|
5,766 |
|
|
|
— |
|
| Zhongyue POSCO (Qinhuangdao) Tinplate Industrial Co., Ltd |
|
|
109,094 |
|
|
|
— |
|
|
|
82,657 |
|
|
|
— |
|
|
|
(48 |
) |
| POSCO SeAH Steel Wire (Nantong) Co., Ltd. |
|
|
34,094 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,107 |
) |
| Zhangjiagang Pohang Refractories Co., Ltd. |
|
|
729 |
|
|
|
1 |
|
|
|
15,350 |
|
|
|
2,051 |
|
|
|
— |
|
| Sebang Steel |
|
|
— |
|
|
|
— |
|
|
|
32,586 |
|
|
|
— |
|
|
|
— |
|
| SHANGHAI WAIGAOQIAO FREE TRADE ZONE LANSHENG DAEWOO IN’L TRADING CO., LTD. |
|
|
160,424 |
|
|
|
— |
|
|
|
— |
|
|
|
11,542 |
|
|
|
— |
|
| DMSA/AMSA |
|
|
— |
|
|
|
5,547 |
|
|
|
— |
|
|
|
— |
|
|
|
14,506 |
|
| South-East Asia Gas Pipeline Company Ltd. |
|
|
— |
|
|
|
20,159 |
|
|
|
— |
|
|
|
— |
|
|
|
25,705 |
|
| Others |
|
|
138,437 |
|
|
|
2,595 |
|
|
|
31,485 |
|
|
|
3,896 |
|
|
|
(18,450 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
28,745 |
|
|
|
184,480 |
|
|
|
140,616 |
|
|
|
33,734 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and others, purchase and others and financial transaction for the year ended December 31, 2014 amount to
W3,330,435 million, W408,214 million and W102,447 million, respectively.
53
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
| (e) |
Significant transactions between the Company, excluding the controlling company, and related companies for the three-month periods ended September 30, 2015 and 2014 were as follows: |
| |
1) |
For the three-month period ended September 30, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Sales and others |
|
|
Purchase and others |
|
|
Finance
transaction |
|
| |
|
Sales |
|
|
Others |
|
|
Purchase of
material |
|
|
Others |
|
|
Loan (collection) |
|
| Associates and joint ventures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| SeAH Changwon Integrated Special Steel (formerly, POSCO Specialty Steel Co., Ltd.) |
|
W |
|
|
|
|
— |
|
|
|
17,865 |
|
|
|
— |
|
|
|
— |
|
| New Songdo International City Development, LLC |
|
|
95,687 |
|
|
|
— |
|
|
|
— |
|
|
|
512 |
|
|
|
— |
|
| SNNC |
|
|
9,569 |
|
|
|
3 |
|
|
|
— |
|
|
|
335 |
|
|
|
— |
|
| Posco e&c Songdo International Building |
|
|
1,604 |
|
|
|
— |
|
|
|
— |
|
|
|
6,269 |
|
|
|
— |
|
| VSC POSCO Steel Corporation |
|
|
4,630 |
|
|
|
— |
|
|
|
78 |
|
|
|
1 |
|
|
|
— |
|
| USS-POSCO Industries |
|
|
80,254 |
|
|
|
— |
|
|
|
476 |
|
|
|
— |
|
|
|
— |
|
| CSP - Compania Siderurgica do Pecem |
|
|
194,441 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Zhongyue POSCO (Qinhuangdao) Tinplate Industrial Co., Ltd |
|
|
12,768 |
|
|
|
— |
|
|
|
10,624 |
|
|
|
— |
|
|
|
(476 |
) |
| BX STEEL POSCO Cold Rolled Sheet Co., Ltd. |
|
|
3 |
|
|
|
— |
|
|
|
5,021 |
|
|
|
— |
|
|
|
— |
|
| POS-SEAHSTEELWIRE(TIANJIN)CO., Ltd |
|
|
1,241 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
317 |
|
| POSCO SeAH Steel Wire (Nantong) Co., Ltd. |
|
|
5,460 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
704 |
|
| Zhangjiagang Pohang Refractories Co., Ltd. |
|
|
243 |
|
|
|
4 |
|
|
|
4,869 |
|
|
|
731 |
|
|
|
— |
|
| Sebang Steel |
|
|
— |
|
|
|
— |
|
|
|
7,013 |
|
|
|
— |
|
|
|
— |
|
| SHANGHAI WAIGAOQIAO FREE TRADE ZONE LANSHENG DAEWOO IN’L TRADING CO., LTD. |
|
|
76,972 |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
| DMSA/AMSA |
|
|
793 |
|
|
|
2,531 |
|
|
|
— |
|
|
|
— |
|
|
|
17,859 |
|
| South-East Asia Gas Pipeline Company Ltd. |
|
|
— |
|
|
|
7,257 |
|
|
|
— |
|
|
|
— |
|
|
|
10,509 |
|
| Others |
|
|
72,024 |
|
|
|
333 |
|
|
|
2,975 |
|
|
|
176 |
|
|
|
12,269 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
10,128 |
|
|
|
48,921 |
|
|
|
8,025 |
|
|
|
41,182 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
2) |
For the three-month period ended September 30, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Sales and others |
|
|
Purchase and others |
|
|
Finance
transaction |
|
| |
|
Sales |
|
|
Others |
|
|
Purchase of
material |
|
|
Others |
|
|
Loan (collection) |
|
| Associates and joint ventures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| New Songdo International City Development, LLC |
|
W |
|
|
|
|
— |
|
|
|
— |
|
|
|
24 |
|
|
|
— |
|
| SNNC |
|
|
30,972 |
|
|
|
— |
|
|
|
3,798 |
|
|
|
— |
|
|
|
— |
|
| Posco e&c Songdo International Building |
|
|
1,652 |
|
|
|
— |
|
|
|
— |
|
|
|
5,874 |
|
|
|
— |
|
| POSCO PLANTEC Co., Ltd. |
|
|
5,909 |
|
|
|
— |
|
|
|
37 |
|
|
|
25,727 |
|
|
|
— |
|
| VSC POSCO Steel Corporation |
|
|
1,588 |
|
|
|
— |
|
|
|
4,220 |
|
|
|
— |
|
|
|
(2,346 |
) |
| USS-POSCO Industries |
|
|
107,336 |
|
|
|
— |
|
|
|
1,109 |
|
|
|
— |
|
|
|
— |
|
| Nickel Mining Company SAS |
|
|
2,177 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
543 |
|
| AN KHANH NEW CITY DEVELOPMENT J.V CO., LTD. |
|
|
5,524 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,810 |
|
| CSP - Compania Siderurgica do Pecem |
|
|
338,150 |
|
|
|
— |
|
|
|
— |
|
|
|
5,766 |
|
|
|
— |
|
| Zhongyue POSCO (Qinhuangdao) Tinplate Industrial Co., Ltd |
|
|
34,563 |
|
|
|
— |
|
|
|
22,930 |
|
|
|
— |
|
|
|
369 |
|
| POSCO SeAH Steel Wire (Nantong) Co., Ltd. |
|
|
7,944 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(616 |
) |
| Zhangjiagang Pohang Refractories Co., Ltd. |
|
|
279 |
|
|
|
1 |
|
|
|
3,853 |
|
|
|
670 |
|
|
|
— |
|
| Sebang Steel |
|
|
— |
|
|
|
— |
|
|
|
6,018 |
|
|
|
— |
|
|
|
— |
|
| SHANGHAI WAIGAOQIAO FREE TRADE ZONE LANSHENG DAEWOO IN’L TRADING CO., LTD. |
|
|
71,821 |
|
|
|
— |
|
|
|
— |
|
|
|
2,029 |
|
|
|
— |
|
| DMSA/AMSA |
|
|
— |
|
|
|
2,173 |
|
|
|
— |
|
|
|
— |
|
|
|
4,436 |
|
| South-East Asia Gas Pipeline Company Ltd. |
|
|
— |
|
|
|
7,069 |
|
|
|
— |
|
|
|
— |
|
|
|
9,829 |
|
| Others |
|
|
53,800 |
|
|
|
261 |
|
|
|
12,661 |
|
|
|
1,840 |
|
|
|
(2,662 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
9,504 |
|
|
|
54,626 |
|
|
|
41,930 |
|
|
|
11,363 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
54
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
| (f) |
The related account balances of significant transactions between the Company, excluding the controlling company, and related companies as of September 30, 2015 and December 31, 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Receivables |
|
|
Payables |
|
| |
Trade accounts and
notes receivable |
|
|
Loans |
|
|
Others |
|
|
Total |
|
|
Trade accounts and
notes payable |
|
|
Others |
|
|
Total |
|
| Associates and joint ventures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| SeAH Changwon Integrated Special Steel (formerly, POSCO Specialty Steel Co., Ltd.) |
|
W |
|
|
|
|
— |
|
|
|
— |
|
|
|
9,474 |
|
|
|
5,556 |
|
|
|
20 |
|
|
|
5,576 |
|
| New Songdo International City Development, LLC |
|
|
221,271 |
|
|
|
— |
|
|
|
32,809 |
|
|
|
254,080 |
|
|
|
— |
|
|
|
14 |
|
|
|
14 |
|
| Posco e&c Songdo International Building |
|
|
5,821 |
|
|
|
— |
|
|
|
12,743 |
|
|
|
18,564 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| VSC POSCO Steel Corporation |
|
|
10,895 |
|
|
|
— |
|
|
|
— |
|
|
|
10,895 |
|
|
|
23 |
|
|
|
— |
|
|
|
23 |
|
| USS-POSCO Industries |
|
|
149,220 |
|
|
|
— |
|
|
|
— |
|
|
|
149,220 |
|
|
|
120 |
|
|
|
— |
|
|
|
120 |
|
| Nickel Mining Company SAS |
|
|
3,783 |
|
|
|
17,918 |
|
|
|
67 |
|
|
|
21,768 |
|
|
|
— |
|
|
|
4,209 |
|
|
|
4,209 |
|
| AN KHANH NEW CITY DEVELOPMENT J.V CO., LTD. |
|
|
65,303 |
|
|
|
59,725 |
|
|
|
312 |
|
|
|
125,340 |
|
|
|
— |
|
|
|
3,984 |
|
|
|
3,984 |
|
| CSP - Compania Siderurgica do Pecem |
|
|
335,620 |
|
|
|
— |
|
|
|
134,162 |
|
|
|
469,782 |
|
|
|
— |
|
|
|
101,024 |
|
|
|
101,024 |
|
| Zhongyue POSCO (Qinhuangdao) Tinplate Industrial Co., Ltd |
|
|
12,513 |
|
|
|
10,989 |
|
|
|
6 |
|
|
|
23,508 |
|
|
|
940 |
|
|
|
— |
|
|
|
940 |
|
| PT. Batutua Tembaga Raya |
|
|
— |
|
|
|
37,537 |
|
|
|
— |
|
|
|
37,537 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| POSCO SeAH Steel Wire (Nantong) Co., Ltd. |
|
|
3,597 |
|
|
|
11,945 |
|
|
|
47 |
|
|
|
15,589 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| SHANGHAI WAIGAOQIAO FREE TRADE ZONE LANSHENG DAEWOO IN’L TRADING CO., LTD. |
|
|
85,134 |
|
|
|
— |
|
|
|
— |
|
|
|
85,134 |
|
|
|
35 |
|
|
|
— |
|
|
|
35 |
|
| DMSA/AMSA |
|
|
— |
|
|
|
170,278 |
|
|
|
2,927 |
|
|
|
173,205 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| South-East Asia Gas Pipeline Company Ltd. |
|
|
— |
|
|
|
299,866 |
|
|
|
— |
|
|
|
299,866 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Others |
|
|
169,856 |
|
|
|
52,532 |
|
|
|
13,551 |
|
|
|
235,939 |
|
|
|
10,806 |
|
|
|
31,244 |
|
|
|
42,050 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
660,790 |
|
|
|
196,624 |
|
|
|
1,929,901 |
|
|
|
17,480 |
|
|
|
140,495 |
|
|
|
157,975 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Receivables |
|
|
Payables |
|
| |
Trade accounts and
notes receivable |
|
|
Loans |
|
|
Others |
|
|
Total |
|
|
Trade accounts and
notes payable |
|
|
Others |
|
|
Total |
|
| Associates and joint ventures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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 nine-month periods ended September 30, 2015 and 2014, details of compensation to key management officers were as follows: |
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
September 30, 2015 |
|
|
September 30, 2014 |
|
| Short-term benefits |
|
W |
|
|
|
|
83,633 |
|
| Retirement benefits |
|
|
17,289 |
|
|
|
17,350 |
|
| Long-term benefits |
|
|
15,472 |
|
|
|
15,144 |
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
116,127 |
|
|
|
|
|
|
|
|
|
|
Key management officers include directors (including outside directors), and executive officials who have significant
influence and responsibilities in the Company’s business and operations.
55
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
33. Commitments and Contingencies
| (a) |
Details of guarantees |
Contingent liabilities on outstanding guarantees provided by the Company as of
September 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 |
|
|
|
225,036 |
|
|
USD |
|
|
150,714,000 |
|
|
|
180,028 |
|
|
|
POSCO COATED STEEL (THAILAND) CO., LTD. |
|
The Great & Co Co., Ltd. (SPC) |
|
THB |
|
|
5,501,000,000 |
|
|
|
180,323 |
|
|
THB |
|
|
5,501,000,000 |
|
|
|
180,323 |
|
|
|
POSCO Electrical Steel India Private Limited |
|
ING and others |
|
USD |
|
|
83,784,000 |
|
|
|
100,080 |
|
|
USD |
|
|
83,784,000 |
|
|
|
100,080 |
|
|
|
POSCO Investment Co., Ltd. |
|
BOA and others |
|
USD |
|
|
335,000,000 |
|
|
|
400,158 |
|
|
USD |
|
|
273,000,000 |
|
|
|
326,098 |
|
|
|
POSCO Maharashtra Steel Private Limited |
|
Export-Import Bank of Korea and others |
|
USD |
|
|
566,069,000 |
|
|
|
676,170 |
|
|
USD |
|
|
508,869,000 |
|
|
|
607,844 |
|
|
|
POSCO MEXICO S.A. DE C.V. |
|
HSBC and others |
|
USD |
|
|
234,725,000 |
|
|
|
280,380 |
|
|
USD |
|
|
234,725,000 |
|
|
|
280,380 |
|
|
|
POSCO SS-VINA |
|
Export-Import Bank of Korea and others |
|
USD |
|
|
354,351,050 |
|
|
|
423,273 |
|
|
USD |
|
|
354,351,050 |
|
|
|
423,273 |
|
|
|
POSCO VST CO., LTD. |
|
ANZ and others |
|
USD |
|
|
65,000,000 |
|
|
|
77,643 |
|
|
USD |
|
|
40,625,000 |
|
|
|
48,526 |
|
|
|
POSCO (Guangdong) Automotive Steel Co., Ltd. |
|
SMBC and others |
|
USD |
|
|
65,000,000 |
|
|
|
77,643 |
|
|
USD |
|
|
65,000,000 |
|
|
|
77,643 |
|
|
|
POSCO-VIETNAM Co., Ltd. |
|
Export-Import Bank of Korea |
|
USD |
|
|
196,000,000 |
|
|
|
234,122 |
|
|
USD |
|
|
196,000,000 |
|
|
|
234,122 |
|
|
|
PT. KRAKATAU POSCO |
|
Export-Import Bank of Korea and others |
|
USD |
|
|
1,350,300,000 |
|
|
|
1,612,937 |
|
|
USD |
|
|
1,245,056,523 |
|
|
|
1,487,219 |
|
|
|
Zhangjiagang Pohang Stainless Steel Co., Ltd. |
|
MIZUHO and others |
|
USD |
|
|
130,000,000 |
|
|
|
155,285 |
|
|
USD |
|
|
130,000,000 |
|
|
|
155,285 |
|
| Daewoo International Corporation |
|
Brazil Sao Paulo Steel Processing Center |
|
MIZUHO |
|
USD |
|
|
30,000,000 |
|
|
|
35,835 |
|
|
USD |
|
|
30,000,000 |
|
|
|
35,835 |
|
|
|
Daewoo International INDIA Private Ltd. |
|
Shinhan Bank |
|
USD |
|
|
50,000,000 |
|
|
|
59,725 |
|
|
USD |
|
|
2,856,682 |
|
|
|
3,412 |
|
|
|
Daewoo Paper Manufacturing Co., Ltd. |
|
HSBC |
|
USD |
|
|
12,500,000 |
|
|
|
14,931 |
|
|
USD |
|
|
12,500,000 |
|
|
|
14,931 |
|
|
|
DAEWOO TEXTILE BUKHARA LLC |
|
Export-Import Bank of Korea |
|
USD |
|
|
20,000,000 |
|
|
|
23,890 |
|
|
USD |
|
|
14,000,000 |
|
|
|
16,723 |
|
|
|
POSCO ASSAN TST STEEL INDUSTRY |
|
ING and others |
|
USD |
|
|
20,932,500 |
|
|
|
25,004 |
|
|
USD |
|
|
16,746,000 |
|
|
|
20,003 |
|
|
|
PT. Bio Inti Agrindo |
|
Export-Import Bank of Korea |
|
USD |
|
|
56,000,000 |
|
|
|
66,892 |
|
|
USD |
|
|
56,000,000 |
|
|
|
66,892 |
|
| POSCO ENGINEERING & CONSTRUCTION CO., LTD. |
|
HONG KONG POSCO E&C (CHINA) INVESTMENT Co., Ltd. |
|
Woori Bank and others |
|
USD |
|
|
147,000,000 |
|
|
|
175,592 |
|
|
USD |
|
|
135,500,000 |
|
|
|
161,855 |
|
|
|
POSCO E&C Vietnam Co., Ltd. |
|
Export-Import Bank of Korea |
|
USD |
|
|
16,500,000 |
|
|
|
19,709 |
|
|
USD |
|
|
16,500,000 |
|
|
|
19,709 |
|
|
|
POSCO ENGINEERING & CONSTRUCTION DO BRAZIL LTDA. |
|
HSBC |
|
USD |
|
|
100,000,000 |
|
|
|
119,450 |
|
|
USD |
|
|
100,000,000 |
|
|
|
119,450 |
|
|
|
SANTOSCMI S.A. |
|
SG BANK and others |
|
USD |
|
|
383,201,941 |
|
|
|
6,944 |
|
|
USD |
|
|
383,201,941 |
|
|
|
6,944 |
|
|
|
POSCO Engineering and Construction India Private Limited |
|
Shinhan Bank |
|
INR |
|
|
70,000,000 |
|
|
|
83,615 |
|
|
INR |
|
|
68,500,000 |
|
|
|
81,823 |
|
| POSCO ICT |
|
PT. POSCO ICT INDONESIA |
|
POSCO Investment |
|
USD |
|
|
2,400,000 |
|
|
|
2,867 |
|
|
USD |
|
|
2,400,000 |
|
|
|
2,867 |
|
| POSCO Engineering CO., Ltd |
|
PT PEN INDONESIA |
|
POSCO Investment |
|
USD |
|
|
6,000,000 |
|
|
|
7,167 |
|
|
USD |
|
|
6,000,000 |
|
|
|
7,167 |
|
|
|
POSCO ENGINEERING (THAILAND) CO., LTD. |
|
HSBC |
|
USD |
|
|
16,000,000 |
|
|
|
19,112 |
|
|
USD |
|
|
16,000,000 |
|
|
|
19,112 |
|
| POSCO CHEMTECH |
|
KRAKATAU POS-CHEM DONG-SUH CHEMICAL |
|
Hana Bank |
|
USD |
|
|
33,600,000 |
|
|
|
40,135 |
|
|
USD |
|
|
32,000,000 |
|
|
|
38,224 |
|
|
|
PT.Krakatau Posco Chemtech Calcination |
|
KEB Bank |
|
USD |
|
|
5,883,750 |
|
|
|
7,028 |
|
|
USD |
|
|
5,883,750 |
|
|
|
7,028 |
|
| POSCO Processing & Service |
|
POSCO Canada Ltd. |
|
Hana Bank |
|
USD |
|
|
12,484,500 |
|
|
|
14,913 |
|
|
USD |
|
|
9,214,750 |
|
|
|
11,007 |
|
|
|
POSCO Gulf SFC LLC |
|
KEB Bank and others |
|
USD |
|
|
33,000,000 |
|
|
|
39,419 |
|
|
USD |
|
|
30,000,000 |
|
|
|
35,835 |
|
| DAEWOO TEXTILE BUKHARA LLC |
|
DAEWOO TEXTILE FERGANA LLC |
|
National Bank of Uzbekistan |
|
USD |
|
|
6,127,060 |
|
|
|
7,319 |
|
|
USD |
|
|
6,127,060 |
|
|
|
7,319 |
|
| DAEWOO TEXTILE FERGANA LLC |
|
DAEWOO TEXTILE BUKHARA LLC |
|
Bukhara TEX |
|
USD |
|
|
2,487,570 |
|
|
|
2,971 |
|
|
USD |
|
|
2,487,570 |
|
|
|
2,971 |
|
| POSCO Investment Co., Ltd. |
|
Zhangjiagang Pohang Stainless Steel Co., Ltd. |
|
BOA and others |
|
USD |
|
|
103,000,000 |
|
|
|
123,034 |
|
|
USD |
|
|
73,000,000 |
|
|
|
87,199 |
|
| POSCO-China Holding Corp. |
|
DONG FANG JIN HONG |
|
Bank of Communications and others |
|
CNY |
|
|
1,590,000,000 |
|
|
|
298,459 |
|
|
CNY |
|
|
1,547,029,869 |
|
|
|
290,393 |
|
| POSCO-Japan Co., Ltd. |
|
POSCO-JEPC Co., Ltd. |
|
MIZUHO and others |
|
JPY |
|
|
1,021,811,730 |
|
|
|
10,185 |
|
|
JPY |
|
|
156,602,530 |
|
|
|
1,561 |
|
|
|
POSCO-JWPC Co., Ltd. |
|
Higo Bank and others |
|
JPY |
|
|
974,000,000 |
|
|
|
9,709 |
|
|
JPY |
|
|
821,800,000 |
|
|
|
8,192 |
|
|
|
Xenesys Inc. |
|
Aozora Bank |
|
JPY |
|
|
250,000,000 |
|
|
|
2,492 |
|
|
JPY |
|
|
200,000,000 |
|
|
|
1,994 |
|
| SANTOSCMI S.A. |
|
COMPANIADEAUTOMATIZACION & CONTROL, GENESYS S.A. |
|
Banco de Guayaquil and others |
|
USD |
|
|
550,000 |
|
|
|
657 |
|
|
USD |
|
|
541,388 |
|
|
|
647 |
|
| POSCO COATED & COLOR STEEL Co., Ltd. |
|
Myanmar POSCO C&C Company, Limited. |
|
POSCO Investment |
|
USD |
|
|
13,986,947 |
|
|
|
16,707 |
|
|
USD |
|
|
13,986,947 |
|
|
|
16,707 |
|
| PT. POSCO ICT INDONESIA |
|
POSCO LED Co., Ltd. |
|
UOB |
|
KRW |
|
|
8,000 |
|
|
|
8,000 |
|
|
KRW |
|
|
8,000 |
|
|
|
8,000 |
|
| POSCO ENERGY CO., LTD. |
|
PT. KRAKATAU POSCO ENERGY |
|
Export-Import Bank of Korea and others |
|
USD |
|
|
193,900,000 |
|
|
|
231,614 |
|
|
USD |
|
|
177,806,813 |
|
|
|
212,390 |
|
56
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of September 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 and others |
|
USD |
|
|
420,000,000 |
|
|
|
501,689 |
|
|
|
USD |
|
|
|
373,121,694 |
|
|
|
445,695 |
|
|
|
|
|
BNDES |
|
BRL |
|
|
464,060,000 |
|
|
|
136,652 |
|
|
|
BRL |
|
|
|
274,129,418 |
|
|
|
80,723 |
|
|
|
LLP POSUK Titanium |
|
KB Bank |
|
USD |
|
|
15,000,000 |
|
|
|
17,918 |
|
|
|
USD |
|
|
|
15,000,000 |
|
|
|
17,918 |
|
| Daewoo International Corporation |
|
DMSA/AMSA |
|
Export-Import Bank of Korea and others |
|
USD |
|
|
165,133,333 |
|
|
|
197,252 |
|
|
|
USD |
|
|
|
140,000,000 |
|
|
|
167,230 |
|
|
|
GLOBAL KOMSCO Daewoo LLC |
|
ICBC and others |
|
USD |
|
|
8,225,000 |
|
|
|
9,825 |
|
|
|
USD |
|
|
|
8,225,000 |
|
|
|
9,825 |
|
| POSCO ENGINEERING & CONSTRUCTION CO., LTD. |
|
New Songdo International City Development, LLC and others |
|
Others |
|
KRW |
|
|
696,600 |
|
|
|
696,600 |
|
|
|
KRW |
|
|
|
685,100 |
|
|
|
685,100 |
|
| POSCO CHEMTECH |
|
PT.INDONESIA POS CHEMTECH CHOSUN Ref |
|
KEB Bank |
|
USD |
|
|
6,000,000 |
|
|
|
7,167 |
|
|
|
USD |
|
|
|
5,100,000 |
|
|
|
6,092 |
|
| POSCO Processing & Service |
|
Sebang Steel |
|
Shinhan Bank |
|
JPY |
|
|
367,500,000 |
|
|
|
3,663 |
|
|
|
JPY |
|
|
|
367,500,000 |
|
|
|
3,663 |
|
| Daewoo (China) Co., Ltd. |
|
SHANGHAI LANSHENG DAEWOO CORP. |
|
Bank of Communications |
|
CNY |
|
|
30,000,000 |
|
|
|
5,631 |
|
|
|
CNY |
|
|
|
30,000,000 |
|
|
|
5,631 |
|
|
|
SHANGHAI WAIGAOQIAO FREE TRADE ZONE LANSHENG DAEWOO IN’L TRADING CO., LTD. |
|
Bank of Communications |
|
CNY |
|
|
50,000,000 |
|
|
|
9,386 |
|
|
|
CNY |
|
|
|
50,000,000 |
|
|
|
9,386 |
|
| [Others] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Daewoo International Corporation |
|
Ambatovy Project Investments Ltd. and others |
|
Export-Import Bank of Korea |
|
USD |
|
|
87,272,727 |
|
|
|
104,247 |
|
|
|
USD |
|
|
|
67,047,518 |
|
|
|
80,088 |
|
| POSCO ENGINEERING & CONSTRUCTION CO., LTD. |
|
Eco-city Corporation and others |
|
Others |
|
KRW |
|
|
735,150 |
|
|
|
735,150 |
|
|
|
KRW |
|
|
|
470,178 |
|
|
|
470,178 |
|
|
|
THE GALE INVESTMENTS COMPANY, L.L.C. |
|
Others |
|
USD |
|
|
50,000,000 |
|
|
|
59,725 |
|
|
|
USD |
|
|
|
50,000,000 |
|
|
|
59,725 |
|
| POSCO ICT |
|
SMS Energy and others |
|
Shinhan BNP Paribas asset management Co., LTD. and others |
|
KRW |
|
|
295,220 |
|
|
|
295,220 |
|
|
|
KRW |
|
|
|
295,220 |
|
|
|
295,220 |
|
|
|
JEONNONG BAEUMTEO JIKIMLEE CO., LTD and others |
|
Northeast Asia infra private offering special investment trust |
|
KRW |
|
|
1,999,015 |
|
|
|
1,999,015 |
|
|
|
KRW |
|
|
|
1,999,015 |
|
|
|
1,999,015 |
|
|
|
Hyochun |
|
Daegu Bank and others |
|
KRW |
|
|
40,100 |
|
|
|
40,100 |
|
|
|
KRW |
|
|
|
40,100 |
|
|
|
40,100 |
|
| POSCO Engineering CO., Ltd |
|
SAMJIN Solar Energy Co. and others |
|
Hana Bank and others |
|
KRW |
|
|
22,440 |
|
|
|
22,440 |
|
|
|
KRW |
|
|
|
12,653 |
|
|
|
12,653 |
|
| HUME COAL PTY LTD |
|
Department of Trade and Investment (NSW Government) |
|
Woori Bank |
|
AUD |
|
|
804,000 |
|
|
|
672 |
|
|
|
AUD |
|
|
|
804,000 |
|
|
|
672 |
|
| POSCO AUSTRALIA PTY LTD |
|
Department of Trade and Investment (NSW Government) |
|
Woori Bank |
|
AUD |
|
|
8,023,765 |
|
|
|
6,710 |
|
|
|
AUD |
|
|
|
8,023,765 |
|
|
|
6,710 |
|
| POSCO (Suzhou) Automotive Processing Center Co., Ltd. |
|
POS Infra auto |
|
Shinhan Bank |
|
CNY |
|
|
2,925,000 |
|
|
|
549 |
|
|
|
CNY |
|
|
|
2,242,500 |
|
|
|
421 |
|
|
|
|
|
|
|
USD |
|
|
405,000 |
|
|
|
484 |
|
|
|
USD |
|
|
|
405,000 |
|
|
|
484 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
USD |
|
|
5,586,211,878 |
|
|
|
6,221,949 |
|
|
|
USD |
|
|
|
5,083,776,686 |
|
|
|
5,621,782 |
|
|
|
|
|
|
|
KRW |
|
|
3,796,525 |
|
|
|
3,796,525 |
|
|
|
KRW |
|
|
|
3,510,266 |
|
|
|
3,510,266 |
|
|
|
|
|
|
|
CNY |
|
|
1,672,925,000 |
|
|
|
314,025 |
|
|
|
CNY |
|
|
|
1,629,272,369 |
|
|
|
305,831 |
|
|
|
|
|
|
|
THB |
|
|
5,501,000,000 |
|
|
|
180,323 |
|
|
|
THB |
|
|
|
5,501,000,000 |
|
|
|
180,323 |
|
|
|
|
|
|
|
INR |
|
|
70,000,000 |
|
|
|
83,615 |
|
|
|
INR |
|
|
|
68,500,000 |
|
|
|
81,823 |
|
|
|
|
|
|
|
JPY |
|
|
2,613,311,730 |
|
|
|
26,049 |
|
|
|
JPY |
|
|
|
1,545,902,530 |
|
|
|
15,410 |
|
|
|
|
|
|
|
AUD |
|
|
8,827,765 |
|
|
|
7,382 |
|
|
|
AUD |
|
|
|
8,827,765 |
|
|
|
7,382 |
|
|
|
|
|
|
|
BRL |
|
|
464,060,000 |
|
|
|
136,652 |
|
|
|
BRL |
|
|
|
274,129,418 |
|
|
|
80,723 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (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 W803,893 million as of September 30, 2015. |
57
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
Details of other commitments of the Company as of September 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 September 30, 2015, 69 million tons of iron ore and 27 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 September 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 24.50 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 September 30, 2015, the remaining balance of the borrowings 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., LTD. |
|
As of September 30, 2015, POSCO ENGINEERING & CONSTRUCTION., 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 ENGINEERING & CONSTRUCTION., 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 September 30, 2015, in relation to contract enforcement, POSCO ICT was provided with W63,945 million and W57,960 million guaranties from Korea Software Financial Cooperative and Seoul
Guarantee Insurance, respectively. |
58
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
| (d) |
Litigation in progress |
As of September 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 |
In April 2012, Nippon
Steel & Sumitomo Metal Corporation (“NSSMC”) filed a civil lawsuit in the Tokyo District Court of Japan against POSCO and POSCO Japan Co., Ltd., a subsidiary of POSCO, alleging violation of trade secrets and seeking prohibition on
production and sales of grain oriented electrical steel sheets and compensation from the Company of W982.8 billion. Simultaneously, NSSMC filed a civil lawsuit in the New Jersey federal court, United States, against POSCO and POSCO
America Corporation, a subsidiary of POSCO, claiming infringement of patent rights related to the production of grain oriented electrical steel sheets. In connection with this, the Company has filed a lawsuit in Korea seeking confirmation of
non-existence of debt. On September 30, 2015, pursuant to the agreement between POSCO and NSSMC, the pending lawsuit filed by NSSMC in Japan was withdrawn, along with all related lawsuits in Korea and the United States of America, in the settlement
amount of W299 billion from POSCO to strengthen the strategic partnership between the two companies. On the same date, the Company paid W299 billion as the settlement to NSSMC, therefore all litigations were
withdrawn and closed.
| 2) |
Other lawsuits and claims |
The Company is involved in 181 other lawsuits and claims for alleged
damages aggregating to W490.3 billion as defendant as of September 30, 2015, which arose in the ordinary course of business. The Company has recognized provisions amounting to W31.9 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 September 30, 2015.
Details of other contingencies of the Company as of September 30, 2015, are as
follows:
|
|
|
| Company |
|
Description |
| POSCO |
|
POSCO 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. |
|
|
| POSCO ENGINEERING & CONSTRUCTION., LTD. |
|
As of September 30, 2015, POSCO ENGINEERING & CONSTRUCTION., LTD. has provided thirty-five blank checks and eight blank promissory notes as collateral for agreements and outstanding loans. |
|
|
| Daewoo International Corporation |
|
As of September 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 September 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. |
59
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
34. Cash Flows from Operating Activities
Adjustments for operating cash flows for the nine-month periods ended September 30, 2015 and 2014 were as follows:
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
September 30, 2015 |
|
|
September 30, 2014 |
|
| Trade accounts and notes receivable |
|
W |
|
|
|
|
(604,867 |
) |
| Other receivables |
|
|
383,007 |
|
|
|
115,966 |
|
| Inventories |
|
|
1,358,663 |
|
|
|
(1,090,606 |
) |
| Other current assets |
|
|
(30,652 |
) |
|
|
(32,610 |
) |
| Other non-current assets |
|
|
(57,276 |
) |
|
|
(2,901 |
) |
| Trade accounts and notes payable |
|
|
(881,205 |
) |
|
|
(463,185 |
) |
| Other payables |
|
|
(274,247 |
) |
|
|
332,178 |
|
| Other current liabilities |
|
|
244,979 |
|
|
|
(278,854 |
) |
| Provisions |
|
|
(95,372 |
) |
|
|
(90,672 |
) |
| Payment of severance benefits |
|
|
(131,489 |
) |
|
|
(118,876 |
) |
| Plan assets |
|
|
6,044 |
|
|
|
(38,492 |
) |
| Other non-current liabilities |
|
|
(81,118 |
) |
|
|
(49,318 |
) |
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
(2,322,237 |
) |
|
|
|
|
|
|
|
|
|
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, trading, construction and others. The steel segment
includes production of steel products and revenue of such products. 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. The construction segment includes planning, designing and construction of industrial plants, civil engineering projects and commercial and residential buildings, both 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. Also, transactions between operating segments are made under the same condition as an independent third party transaction. |
60
POSCO and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements, Continued
As of September 30, 2015
(Unaudited)
| (b) |
Information about reportable segments for the nine-month periods ended September 30, 2015 and 2014 was as follows: |
| |
1) |
For the nine-month period ended September 30, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Steel |
|
|
Trading |
|
|
Construction |
|
|
Others |
|
|
Total |
|
| External revenues |
|
W |
|
|
|
|
14,080,237 |
|
|
|
6,234,409 |
|
|
|
2,294,345 |
|
|
|
44,286,395 |
|
| Internal revenues |
|
|
12,768,532 |
|
|
|
6,534,252 |
|
|
|
1,069,493 |
|
|
|
2,049,713 |
|
|
|
22,421,990 |
|
| Including inter segment revenue |
|
|
6,977,831 |
|
|
|
3,371,581 |
|
|
|
876,647 |
|
|
|
1,978,672 |
|
|
|
13,204,731 |
|
| Total revenues |
|
|
34,445,936 |
|
|
|
20,614,489 |
|
|
|
7,303,902 |
|
|
|
4,344,058 |
|
|
|
66,708,385 |
|
| Segment profits (losses) |
|
|
91,586 |
|
|
|
163,785 |
|
|
|
(287,923 |
) |
|
|
(11,295 |
) |
|
|
(43,847 |
) |
| |
2) |
For the nine-month period ended September 30, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
Steel |
|
|
Trading |
|
|
Construction |
|
|
Others |
|
|
Total |
|
| External revenues |
|
W |
|
|
|
|
15,672,300 |
|
|
|
5,886,613 |
|
|
|
2,917,939 |
|
|
|
48,413,545 |
|
| Internal revenues |
|
|
13,201,735 |
|
|
|
7,445,536 |
|
|
|
1,697,607 |
|
|
|
2,277,265 |
|
|
|
24,622,143 |
|
| Including inter segment revenue |
|
|
7,624,734 |
|
|
|
3,881,695 |
|
|
|
1,397,205 |
|
|
|
2,142,163 |
|
|
|
15,045,797 |
|
| Total revenues |
|
|
37,138,428 |
|
|
|
23,117,836 |
|
|
|
7,584,220 |
|
|
|
5,195,204 |
|
|
|
73,035,688 |
|
| Segment profits |
|
|
813,106 |
|
|
|
156,512 |
|
|
|
26,828 |
|
|
|
79,445 |
|
|
|
1,075,891 |
|
| (c) |
Reconciliations of total segment profit or loss, to their respective consolidated financial statement line items for the nine-month periods ended September 30, 2015 and 2014 were as follows: |
|
|
|
|
|
|
|
|
|
| (in millions of Won) |
|
September 30, 2015 |
|
|
September 30, 2014 |
|
| Total profit (loss) for reportable segments |
|
W |
|
|
|
|
1,075,891 |
|
| Corporate fair value adjustments |
|
|
(72,749 |
) |
|
|
(99,512 |
) |
| Elimination of inter-segment profits |
|
|
(89,049 |
) |
|
|
(209,575 |
) |
| Tax expense |
|
|
337,593 |
|
|
|
552,687 |
|
|
|
|
|
|
|
|
|
|
| Profit before income tax expense |
|
W |
|
|
|
|
1,319,491 |
|
|
|
|
|
|
|
|
|
|
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