Posco Holdings Inc. · KRX:005490
Posco — Investor Day (July 2023)
50 slides from Posco's investor day presentation, Jul 12, 2023
Slide 1: The 2nd Annual Battery Materials Business Value Day
The 2nd Annual Battery Materials Business VALUE DAY Green Tomorrow with POSCO POSCO HOLDINGS
Slide 2: Disclaimer
Disclaimer This presentation contains certain forward-looking statements relating to the business, financial performance and results of the company and/or the industry in which it operates. The forward-looking statements set forth herein concern future circumstances and results and other statements
Slide 3: Opening Remarks
01 Opening Remarks Ki-Seop Jeong CSO Chief Strategy Officer & President, POSCO Holdings
Slide 4: Pushing Ahead with Growth Strategy and Accelerated Restructuring
Pushing Ahead with Growth Strategy and Accelerated Restructuring POSCO HOLDINGS POSCO 100% POSCO INTERNATIONAL 71% POSCO E&C 53% POSCO FUTURE M 60% POSCO Argentina 100% POSCO Pilbara LITHIUM SOLUTION 82% POSCO HY CLEAN METAL 65% POSCO Lithium Solution 100% Unlisted Listed Unlisted Listed Unlisted Un
Slide 5: Leading Global Provider of Eco-Friendly Future Materials
As Leading Global Provider of Eco-Friendly Future Materials, POSCO Group Delivers Sustainable Future Build with future technology Steel Lithium/Nickel LiB Materials Energy Apply to future industry Contribute to creating value for eco-friendly future Construction / Infrastructure Hydrogen Agri-Bio Gr
Slide 6: POSCO Group Invests for Future Growth
POSCO Group Invests for Future Growth CAPEX Breakdown by Division (Unit: %, Consolidated basis) Previous 100% 14.8 13.6 50% 71.6 ‘16 -’18 EV Battery Material Business Early Growth 17.3 20.8 61.9 ‘19 -’22 EV Battery Material Business Take-Off 14.9 Eco-friendly infrastructure 46.2 LiB materials 38.9 S
Slide 7: Improved Financials Provide Ample Room for Investment
Improved Financials Provide Ample Room for Investment POSCO Group’s net debt-to-equity ratio and changes in cashable asset (Unit: Trillion won, %, consolidated basis) 20 Trillion won 18.7 60% 49.1% Cash & Cash Equivalents Net-debt-to-equity ratio 10 Trillion won 30% 9.5% 2013 2014 2015 2016 2017 201
Slide 8: Speeding Up Investment for Next Years to Secure Market Dominance
Speeding Up Investment for Next 3 Years to Secure Market Dominance LiB Material Business CAPEX and Revenue Outlook (Unit: Trillion won) Focused investment to obtain global foothold Substantive profit generation 62 Trillion 43 Trillion 10 Trillion won Revenue 16 Trillion Capex 5 Trillion won 2023 202
Slide 9: Key Roadmap of LiB Materials Business
Key Roadmap of LiB Materials Business Anodes Business Commenced 2010 Cathodes Business Commenced 2011 Year One of Commercial Lithium Production 2023 EBITDA to exceed 3 Trillion won 2025 EBITDA to exceed 10 Trillion won 2028 Green Tomorrow, with POSCO POSCO HOLDINGS
Slide 10: Maximize Shareholder Value: Combined Market Cap Trend
POSCO Holdings Will Continue to Make Efforts to Maximize Shareholder Value POSCO Group’s Combined Market Cap Trend (Unit: Trillion won, KOSPI) 2,564 KOSP 2,333 2,108 71 Trillion won Other 7 POSCO International 27 POSCO Future M 31 Trillion won 2 22 Trillion won 8 2 5 33 POSCO Holdings 20 15 (Unit: W
Slide 11: Create Environmental Values through Eco-Friendly Production
Create Environmental Values through Eco-Friendly Production Reduce CO2 Emission Minimize CO2 emissions from mining and processing to final production to provide eco-friendly materials Mining Processing Production Eco-Friendly Batteries Expand Recycling Build recycling system including used battery c
Slide 12: Create Social Values Through Virtuous Cycle of Technology Leadership
Create Social Values Through Virtuous Cycle of Technology Leadership – Talent Development Develop Future Technology Channel Group’s R&D capacity into LiB materials Lead Next Generation battery material technology R&D Strategy POSCO N.EX.T Hub POSCO Group R&D Ecosystem R&D Commercialization Build Kno
Slide 13: Continued Shareholder Returns: Historic High Returns 2020-2022
Continued shareholder returns by achieving balance between growth and stable dividend payout Historic high shareholder returns under medium-term dividend policy (‘20~’22) (29.8%) 3.4 trillion won Total Shareholder Return Ratio Total Shareholder Return Amount (Unit: Billion won) 47% 39% 19% 1,478 1,2
Slide 14: 2023-2025 Shareholder Return Policy
Continued shareholder returns by achieving balance between growth and stable dividend payout ‘23~’25 Shareholder Return Policy Secure growth potential as leading supplier of eco-friendly future materials Responding to expectations of long-term investors with sustainable dividend Shareholder return f
Slide 15: Leading Supplier of Eco-Friendly Future Materials
Leading Supplier of Eco-Friendly Future Materials POSCO HOLDINGS
Slide 16: Business Strategy: Growth to Become Global Battery Materials Leader
02. Business Strategy Growth to Become Global Battery Materials Business Leader Kyung-Sup Lee, EVP Head of Battery Materials Business, POSCO Holdings Green Tomorrow, with POSCO POSCO HOLDINGS 15
Slide 17: Growing Attention on Korean Li-Ion Battery Industry
POSCO HOLDINGS Market Environment Growing Attention on Korean Li-Ion Battery Industry With Recent Trade Regulations and Changes in Geopolitical Environment USA IRA EU CRMA KOREA POSCO HOLDINGS Well positioned to adjust to upcoming changes Production facilities for key battery materials (lithium, nic
Slide 18: Next Years Essential for Supply Chain Building
POSCO HOLDINGS Market Environment Next 3 years to be essential period for supply chain building EV market to continue steady growth until 2030 Global Automobile and EV Market Forecast (Unit: Hundred thousand vehicles) Automobiles 822 833 847 859 864 870 873 878 EV 137 (17%) 168 220 (26%) 266 315 (36
Slide 19: Global Leader of Battery Materials by 2030
POSCO HOLDINGS Business Vision Global Leader of Battery Materials by 2030 Full Value chain Total solutions provider from key minerals to active materials Quantitative Growth Qualitative Growth Enhanced cathode and anode active materials capacity and focused investment into lithium and nickel for hig
Slide 20: Investments for Global Leadership and Upward Adjusted 2030 Targets
POSCO HOLDINGS Business Goals Investments for Global Leadership & Upward Adjusted 2030 Growth Targets 62 Trillion won 2030 Revenue Goal 15 Trillion won 2030 EBITDA * 2030 Goals announced in ‘22 Revenue KRW 41tn, EBITDA KRW 11tn 2030 Capacity Target As of 2022 As of 2023 (Unit: kilo ton) +123 +20 +39
Slide 21: Battery Materials Business Progress & Achievements
Li Ni Recycle Battery Materials Business Progress & Achievements Cathode Next- Generation Green Tomorrow, with POSCO 20
Slide 22: Lithium Progress & Achievements
POSCO HOLDINGS Li Progress Li & Achievements 1st Value Day (‘22) Acquired salt lake in Argentina (‘18) Broke ground for P-Pilbara Lithium Solution (‘21) 2022.08 2022.10 2023.06 P-Pilbara Lithium Solution construction begins (Ore lithium, 43ktpa) P-Argentina Phase 1 construction begins (brine lithium
Slide 23: Nickel Progress & Achievements
POSCO HOLDINGS Ni Progress & Achievements 1st Value Day (‘22) Project kickoff to convert to battery-grade nickel at SNNC (‘21) Acquired stake in nickel mining and smelting company, RNO (‘21) 2023.04 2023.06 JV with pyrometallurgical processing plant in Indonesia approved (matte, 52ktpa) JV with CNGR
Slide 24: Recycle Progress & Achievements
POSCO HOLDINGS Recycle Progress & Achievements 1st Value Day (‘22) Upstream recycle plant broke ground (‘21) Downsgream recycle plant broke ground (‘21) 2022.08 2022.10 2022.12 2023.05 Upstream recycle plant completed (Poland PLSC) JV agreement with GS Energy (POSCO GS Eco Materials) Downstream recy
Slide 25: Cathode Progress & Achievements
POSCO HOLDINGS Cathode Progress & Achievements 1st value day (‘22) Gwangyang Plant 90kt (Under construction) Gumi Plant 9.6kt Pohang Plant 30kt (Under construction) 2022.07 2022.11 2023.01 2023.04 2023.06 Ultium Cells NCMA cathode supply contract (approx. KRW 14tn, ‘23~’25) World’s largest cathode p
Slide 26: Anode Progress & Achievements
POSCO HOLDINGS Anode Progress & Achievements 1st Value Day (‘22) Sejong Plant (natural) 71kt Incorporated P-Silicon Solution Pohang Plant (artificial) 8kt 2022.12 Ultium Cells artificial graphite anode material supply contract (approx. KRW 0.9tn, ‘23~’28) 2023.04 P-INTERNATIONAL flake graphite off-t
Slide 27: Next-Generation Progress & Achievements
Next- Generation Progress & Achievements POSCO HOLDINGS 1st Value Day (‘22) Incorporated P-JK Solid Solution with Korea’s No.1 Solid Electrolyte company (‘22) Equity investment into Prologium, All-Solid-State battery maker (‘22) 2022.07 2022.10 2022.12 2023.05 2023.06 Joint research agreement With P
Slide 28: Battery Materials Business Strategies
Li Ni Recycle Battery Materials Business Strategies Cathode Anode Next-Generation
Slide 29: Lithium: Market Entry and Capacity Expansion Using Unconventional Resources
Li Ni Recycle Cathode Anode Next-Generation Successful market entry with existing investments made in salt lake and mines. Business expansion by utilizing unconventional resources Australia Argentina Canada North America brine Capacity expansion with Argentina salt lake (Lithium hydroxide 100kt) Ore
Slide 30: Early Completion of Brine Lithium Capacity in Argentina by 2027
Li Anode Cathode Recycle Ni Next-Generation POSCO HOLDINGS Early completion of brine lithium capacity of 100,000 tons in Argentina by 2027, made possible by integrating phases 3 & 4 Phase 1 25,000 tons Construction period: ‘22~’24 25,000 tons annually Phase 2 +25,000 tons Construction period : ‘23 ~
Slide 31: Lithium Business Roadmap
Li Anode Cathode Recycle Ni Next-Generation Business Roadmap POSCO HOLDINGS POSCO Pilbara LITHIUM SOLUTION Ore lithium production start (POSCO Pilbara Lithium Solution) Brine lithium phase 1 completion (POSCO Argentina, 25ktpa) Ore lithium phase 2&3 completion (60ktpa) 2023.10 2024.2 2024.4 2025.6 2
Slide 32: Lithium 2030 Business Goals: Global Top 3 Producer
Li Ni Recycle Cathode Anode 차세대 POSCO HOLDINGS Achieve 423 kiloton capacity by 2030, To emerge as Global Top 3 lithium producer 2030 Business Goals Production Capacity (Unit: kiloton) 71 2024 96 2025 166 2026 300 Prev (‘22) +123 423 New(‘23) 2030 * Including 30kt of lithium capacity through recycle
Slide 33: Diversified Nickel Sourcing for Stable Cathode Supply
Li Ni Recycle Cathode Anode Next-Generation POSCO HOLDINGS Diversified Nickel Sourcing For a Stable Cathode Supply Network Expedite procurement of nickel intermediate material (Nickel Matte, MHP) Additional procurement of low carbon minerals with new hydrometallurgical processing technology Nickel s
Slide 34: Nickel Business Roadmap
Li Ni Recycle Cathode Anode Next-Generation Business Roadmap POSCO Holdings Ni Matte plant completion (Gwangyang Dongho Bay, 20kt) CNGR JV refining plant completion (Pohang, 50kt) Pyrometallurgical processing JV plant completion (Indonesia, 52kt) PJT on New Hydrometallurgical Processing Technology (
Slide 35: 40 Kilotons of Nickel by 2030
Li Ni Recycle Cathode Anode Next-Generation POSCO HOLDINGS 240 kilotons of nickel by 2030, positioned to become a leading eco-friendly high-purity nickel provider 2030 Business Goals Production Capacity (Unit: kiloton) 41 79 143 240 New(‘23) 220 Prev(‘22) +20 2024 2025 2026 2030 * Including 70kt sec
Slide 36: Recycle Market Growth and Closed-Loop Ecosystem
The recycle market is expected to pick up speed; we are prepared to stay ahead by localizing upstream & downstream processes and developing new technologies recycle Market Growth (Battery Plant Scrap/Used Batteries and Nickel Production Volume) Used Batteries Scrap from Plant 2.5 Recycled Ni (Unit:
Slide 37: Recycle Business Roadmap
Business Roadmap Europe recycle Phase 2 upstream completion 2H 2025 Europe recycle Phase 2 downstream complete (Ni 5kt) 2H2026 recycle Phase 2 downstream complete (Ni 5kt) Expand hubs & spokes in the U.S. and Europe 2027~ Secure 12.5kt of lithium, 12.5kt of nickel and 4kt of cobalt by 2026 Green Tom
Slide 38: Recycle 2030 Business Goals
First to build the battery recycle ecosystem. 2030 Business Goals Production Capacity (Unit: kiloton) 70 70 30 Lithium 29 30 Nickel 6 6 10 Prev New (‘22) (‘23) Cobalt 2024 2025 2026 2030 Revenue / EBITDA (Unit: KRW trillion) Revenue EBITDA 2.2 0.6 0.2 0.2 0.2 2024 2025 2026 2030 Before inter-company
Slide 39: Qualitative and Quantitative Growth; Diversifying Cathode Product Portfolio
Pushing to achieve both qualitative and quantitative growth; diversifing product portfolio to meet growing customer needs Qualitative Growth Strengthen investment competitiveness by integrating domestic production base and cost reduction LFP NCA LLO Ent Level Cars Premium Cars NCM Diversified Portfo
Slide 40: Cathode Business Roadmap
POSCO HOLDINGS Li Ni Recycle Cathode Anode Next-Generation Business Roadmap POSCO FUTURE M Cathode Phase 1 in Canada complete (Ultium CAM, Quebec, 30kt) Cathode Phase 2 in Canada complete (30kt) 2023.8 2024.9 2025.1 2025.4 2025.7 Pohang cathode phase 1 complete (30kt) Pohang cathode phase 2-1 comple
Slide 41: Cathode 2030 Business Goals
POSCO HOLDINGS Li Ni Recycle Cathode Anode Next-Generation 2030 Business Goals Production Capacity (Unit: kiloton) +390 215 395 445 610 Prev (‘22) 1,000 New (‘23) 2024 2025 2026 2030 Revenue / EBITDA (Unit: KRW trillion) Revenue EBITDA +15.2 +1.7 7.9 11.7 14.6 21.0 Prev (‘22) 36.2 New (‘23) 1.6 Prev
Slide 42: Providing All Anode Products: Natural, Artificial Graphite and Silicon
Li Ni Recycle Cathode Anode Next-Generation POSCO HOLDINGS Aiming to provide all products associated with anode: natural graphite, artificial graphite and silicon. Natural Graphite Internalize entire process for customers in N.America (flake graphite off-take, spheronizing performed in-house) Artifi
Slide 43: Anode Business Roadmap
Li Ni Recycle Cathode Anode Next-Generation Business Roadmap POSCO HOLDINGS POSCO Future M Si-C DP complete (POSCO Future M, 50t) Artificial Graphite phases 1-2 complete (POSCO Future M, 10kt) SiOx Anode phase 2 complete (POSCO Silicon Solution, 5kt) Artificial Graphite N. America phase 1 complete (
Slide 44: Anode 2030 Business Goals
Li Ni Recycle Cathode Anode Next-Generation Sustain world No. 1 position ex-China, with 370 kiloton capacity by 2030 2030 Business Goals Production Capacity (Unit: kiloton) +50 93 2024 134 2025 221 2026 320 Prev (‘22) 370 New (‘23) 2030 182 Natural Graphite 153 Artificial Graphite 35 Silicon Revenue
Slide 45: First-Mover in the Next-Generation Battery Industry
Li Ni Recycle Cathode Anode Next-Generation First-Mover in the Next-Generation Battery Industry Earlier Commercialization of All-Solid-State Batteries (2030 2027) (Unit : Ten thousand vehicles / kiloton) All-solid-state batteries Li-ion Battery Evs Solid electrolyte Lithium metal anode 84 11 ‘30 192
Slide 46: Next-Generation Business Roadmap
Li Ni Recycle Cathode Anode Next-Generation Business Roadmap All-Solid-State battery materials verified by Prologium Build PP process for lithium metal anode Solid Electrolyte phase 3 complete (POSCO JK Solid Solution, 7,200t) 2022~ 3 Key materials for All-Solid-State battery Cathode Solid Electroly
Slide 47: Summary
Summary POSCO HOLDINGS Precursor Nickel Recycle Lithium Cathode Silicon Anodes Graphite Needle coke 46
Slide 48: Most Competitive Battery Material Player with All-Inclusive Portfolio
Summary Most Competitive Battery Material Player with All-Inclusive Portfolio 47
Slide 49: Unrivaled Eco-Friendly Future Materials Provider
Together with steelmaking, POSCO Holdings is unrivaled as the eco-friendly future materials provider. Recycle Gwangyang Cathode Pohang, Gwangyang Lithium Hydroxide Gwangyang High-Purity Nickel Gwangyang POSCO HOLDINGS Anode Pohang, Sejong 48
Slide 50: Global Total Solutions Provider of Battery Materials
Global Total Solutions Provider of Battery Materials Canada Cathodes Poland Recycle (Upstream) United States Lithium Tanzania Natural Graphite Mine Argentina Lithium Salt Lake Australia, New Caledonia Lithium and Nickel Mines 49