Posco Holdings Inc. · KRX:005490
Posco — Q2 2023 Earnings Presentation
19 slides from Posco's earnings presentation, Jul 24, 2023
Slide 1: Earnings Release Q2 2023
Global Eco-friendly Future Materials Provider Earnings Release Q2 2023 July 24, 2023
Slide 2: Disclaimer
2 / 19 Disclaimer This presentation was prepared and circulated to release the informations regarding the company’s business performance to shareholders and investors prior to the completion of auditing for the period of the second quarter 2023. As figures in this presentation are based on unaudited
Slide 3: Contents
3 / 19 Contents Consolidated Business Performance Major Business Activities Business Performance by Major Areas Appendix
Slide 4: Consolidated Business Performance
4 / 19 Consolidated Business Performance Recovery of KRW 1 trillion OP and profit normalization1), following full operation of Pohang Steel Works QoQ Income QoQ Financial Structure 13.3% +0.3%p (KRW Billion) 23,010 (KRW Trillion) 13.0% 20,121 +740 12.8% Revenue 19,381 Net Debt Ratio 9.1% +0.3 OP Mar
Slide 5: Release of Low-Carbon Steel Products
5 / 19 Major Business Activities Release of Low-Carbon Steel Products Released of Renewable energy steel ('23.1Q) and Greenate certified steel ('23.2Q) 【 Carbon Reduced Steel Product Lines】 Product Lines Description ‘23 Procure renewable energy such as solar, wind, Renewable energy steel Provide cer
Slide 6: Expanding Production for Eco-friendly Industries
6 / 19 Major Business Activities Expanding Production for Eco-friendly Industries High-grade NO capacity expansion of 300k tons in Gwnagyang for motor cores in eco-friendly cars, targeting to start operation in 4Q (Started construction in April, ’22; existing production capacity: 100k tons at Pohang
Slide 7: Hydrogen Projects for HyREX
Major Business Activities Hydrogen Projects for HyREX 7 / 19 POSCO Holdings-led global consortium acquired exclusive rights for development and operation of Green hydrogen business in Duqm, Oman for 47 years Targeting 500k tons of hydrogen production by 2030, progressing diverse projects aligned w
Slide 8: Nickel JV for Battery Business
Major Business Activities Nickel JV for Battery Business 8 / 19 Entered joint ventures with leading nickel smelting companies such as CNGR for collaborative businesses in Pyro/Hydrometallurgy of nickel in Indonesia and domestic refining/precursors Target to complete construction in 2025 for Pyro/H
Slide 9: Business Performance by Major Areas
9 / 19 Business Performance by Major Areas Steel - POSCO ·Production/Sales ·Income/Financial Structure - Overseas Steel ·PT-KP ·PZSS ·P-Maharashtra ·PY-VINA Green Infrastructure - POSCO International - POSCO E&C Green Materials - POSCO Future M
Slide 10: POSCO Production/Sales
10 / 19 POSCO Production/Sales Production QoQ Sales QoQ Utilization Rate* 84.2% 84.7% 87.3% +2.6%p (k tons, %) 8,352 +190 (k tons) 8,851 +352 Sales Volume 8,238 Crude Steel 8,545 60.1 8,162 8,499 Domestic Sales 55.4 +0.7%p Product Ratio 54.7 8,482 +178 8,340 8,304 WTP +0.2%p 28.5 Sales Ratio* 28.2 2
Slide 11: POSCO Income/Financial Structure
11 / 19 POSCO Income/Financial Structure Income QoQ (KRW Billion) 【Operating Profit QoQ】 (KRW Billion) Revenue 11,871 '23.2Q 10,298 +676 +110 OP Margin 9,622 +63 Raw material +376 Decrease in cost decrease, 1,322 841 '23.1Q flood losses etc. 11.1% +41 +5.6%p ASP Operating Profit 8.2% 841 Production/
Slide 12: Overseas Steel Subsidiaries Performance
12 / 19 Overseas Steel Subsidiaries Performance PT. Krakatau POSCO Zhangjiagang STS (PZSS) Increased profit through expanded HR domestic sales after the start of • Reduced operating loses through specialized product-focused sales amidst the new HR line(‘22.11) low-cost competition - Sales Volume(k
Slide 13: POSCO International Performance
13 / 19 POSCO International Performance Income Major Activities (KRW Billion) QoQ ○ Global Business (OP 150 (KRW Billion)) 11,747 - Steel : Increased sales of high-profit steel products for wind Revenue 8,865 and solar power 8,306 +559 • Sales volume to eco-friendly market(k tons) : 1Q) 420 → 2Q) 45
Slide 14: POSCO E&C Performance
14 / 19 POSCO E&C Performance Income Major Activities (KRW Billion) ○ Revenue increased due to speeding up the QoQ construction process, etc. 2,591 • Plant : Slightly decreased due to speeding up the construction Revenue +227 2,490 process in 1Q 2,364 • Infrastructure : Revenue and OP increased by s
Slide 15: POSCO Future M Performance
15 / 19 POSCO Future M Performance Income Major Activities 1,193 (KRW Billion) 1,135 QoQ ○ Cathode : Revenue and OP increased through share +58 expansion of N86 *Exchange rate : Revenue 803 KRW/U$ 1,2751,315 • Improvement in average price through increased sales proportion of high-priced N86 compar
Slide 16: Appendix
16 / 19 Appendix Progress in Battery Materials Business Summarized Income Statement Summarized Balance Sheet
Slide 17: Progress in Battery Materials Business
Progress in Battery Materials Business 17 / 19 Material Company PJT ~ ‘22.E ‘23.1Q ‘23.2Q ‘23.2H ‘24 ‘25 Construction Construction Construction Construction Phase I (Plant1. ’22.10, of Electricity of Electricity Completion of factory/pond of Brine Plant 2. ’22.12) (1Q) (Plant 1. ’23.4) (Plant2. ’23.
Slide 18: Summarized F/S Consolidated Income Statement
Summarized F/S Consolidated Income Statement 18 / 19 (KRW Billion) '22.2Q '23.1Q '23.2Q QoQ Revenue 23,010 19,381 20,121 740 Gross Profit 2,733 1,373 2,034 661 (Gross Margin) (11.9%) (7.1%) (10.1%) (3.0%p) SG&A 635 669 708 39 Operating Profit 2,098 705 1,326 621 (Operating Margin) (9.1%) (3.6%) (6.6
Slide 19: Summarized F/S Consolidated Balance Sheet
Summarized F/S Consolidated Balance Sheet 19 / 19 (KRW Billion) '22.2Q '23.1Q '23.2Q QoQ Current Assets 52,147 50,315 50,023 △292 Cash and Cash Equivalents 17,939 19,878 19,704 △174 Accounts Receivable 12,394 11,279 11,498 219 Inventories 17,962 15,028 15,042 14 Non-Current Assets 49,723 52,589 53,0