Posco Holdings Inc. · KRX:005490
Posco — Q1 2023 Earnings Presentation
23 slides from Posco's earnings presentation, Apr 27, 2023
Slide 1: Earnings Release Q1 2023
Global Eco-friendly Future Materials Provider Earnings Release Q1 2023 April 27, 2023
Slide 2: Disclaimer
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 first quarter 2023. As figures in this presentation are based on unaudited financi
Slide 3: Contents
Contents Consolidated Business Performance Major Business Activities Business Performance by Major Areas 2023 Business Outlook Appendix
Slide 4: Consolidated Business Performance
Consolidated Business Performance Profits recovered both in domestic and overseas steel businesses, and showed growth in revenue of Green Materials by 44% QoQ Financial QoQ Income QoQ Structure 13.0% +3.5%p (KRW Billion) 21,338 19,381 +133 (KRW Trillion) 9.5% 7.7% Revenue 19,248 Net Debt Ratio 7.7 +
Slide 5: Major Business Activities: Progress in Secondary Battery Materials
Major Business Activities_Progress in Secondary Battery Materials 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. ’
Slide 6: Major Business Activities: POSCO Silicon Solution
Major Business Activities_POSCO Silicon Solution Approved the 450-ton first phase investment for POSCO Silicon Solution, and plan to expand production capacity up to 25k tons by 2030 through four phases of investment 【Market Trends】 Si-based anode material demand expected to rise with increased 【 Ma
Slide 7: POSCO Silicon Solution expansion plan
Major Business Activities_POSCO Silicon Solution Built and verified the first phase of SiOx 450 tons/year, followed by a four-phase Expansion (2nd~4th phase) 1st phase, expansion plan up to 25k tons/year by 450 tons 2030 (M/S 16%) 27km 10km 1st phase, Developing integrated Silicon Anode 50 tons Expa
Slide 8: Journey to Eco-friendly Steel Making
Major Business Activities_Journey to Eco-friendly Steel Making 【 POSCO’s Carbon Neutral Roadmap 2050 】 Target Compared to the base year △10% (~’30) △50% (~’40) Carbon Neutralization (~’50) Improvement of Efficiency of Existing Expansion of Innovative Gradual Equipment and Development of Technology E
Slide 9: Business Performance by Major Areas
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
POSCO_Production/Sales Production QoQ Sales Utilization Rate* 87.4% 78.5% 84.7% +6.2%p (k tons, %) QoQ (k tons) Sales Volume 8,454 8,770 8,162 +615 Crude Steel 8,499 +452 58.7 7,547 8,047 Domestic Sales 54.7 +4.3%p Product 8,452 Ratio 50.4 8,304 +726 7,578 30.2 WTP 28.3 +1.5%p Sales Ratio* 26.8 ’22.
Slide 11: POSCO: Income/Financial Structure
POSCO_Income/Financial Structure Income QoQ (KRW Billion) 【Operating Profit QoQ】 ASP (KRW Billion) 11,272 decreased 9,622 +947 Revenue +140 251 8,675 +414 Cost decrease, ’22.4Q +234 △311 etc. OP Margin 10.6% ’23.1Q Losses from +9.8%p Raw material cost the flood 2.6% +397 decrease, etc. decrease Oper
Slide 12: Overseas Steel Subsidiaries: Performance
Overseas Steel Subsidiaries_Performance Improved in profitability of subsidiaries in the East and Southeast Asia due to gradual recovery of the global steel market conditions PT. Krakatau POSCO Zhangjiagang STS (PZSS) Improved profitability due to increased sales after the start of the new HR • Pr
Slide 13: POSCO International: Performance
POSCO International_Performance Income Major Activities (KRW Billion) ○ Global Business 10,745 - Steel : Profitability improved as a result of an expansion QoQ 9,117 of sales in high-profit market such as Europe, while Revenue 8,306 △811 revenue dropped due to decrease in steel sales volume - Agricu
Slide 14: POSCO E&C: Performance
POSCO E&C_Performance Income Major Activities (KRW Billion) QoQ ○ [OP] Continued with profitability-focused business strategy, profitability improved due to construction Revenue 2,571 △207 2,364 sector turning a profit 2,112 • Plant : Revenue increased QoQ by speeding up the construction process, et
Slide 15: POSCO Future M: Performance
POSCO Future M_Performance Income Major Activities 1,135 (KRW Billion) QoQ ○ Cathode : Achieved the highest sales and revenue of 780 +355 the quarter Revenue 665 • Revenue increased due to recovery of sales in N65(+73% QoQ) after customer inventory adjustments in the previous quarter, and new sales
Slide 16: 2023 Business Outlook
2023 Business Outlook Consolidated Revenue 86 (KRW Trillion) CAPEX 11 (KRW 2 trillion, separated] (KRW Trillion) Net Debt 1 (KRW Trillion) 1 - Notice of the 2nd POSCO Group Secondary Battery Materials Business Value Day – Date : [Domestic] ’23.7.11(Tue.) / [Overseas] ’23.7.12(Wed.)~14(Fri.) Venu
Slide 17: Shareholder Return Policy
Shareholder Return Policy 1Q23 Earnings Release │ April 27, 2023 17
Slide 18: Shareholder Return Policy: Progress (~2022)
Shareholder Return Policy_Progress(~2022) Enhancing shareholder value through the preemptive implementation of quarterly dividend policy, establishment of performance-linked midterm dividend policy, share buyback and cancellation ① Quarterly dividend ③ Share buyback & ② Midterm dividend policy cance
Slide 19: New Shareholder Return Policy (2023~2025)
Shareholder Return Policy_New Shareholder Return Policy(2023~2025) Balancing shareholder value enhancement through growth and stable dividends through the midterm shareholder return policy from 2023 to 2025 Achieving sustainable growth Stable dividends in order to meet as a global eco-friendly futur
Slide 20: Appendix
Appendix ESG Management Activities Summarized Income Statement Summarized Balance Sheet
Slide 21: ESG Management Activities
ESG Management Activities_ESG Reduced serious accidents by establishing safety governance at a group level and strengthening preventive safety management Established POSCO group’s Safety Concil(starting Apr. 2022, quarterly) - A head of Safety Health Environment Division at POSCO leads CEOs and sa
Slide 22: Summarized Consolidated Income Statement
Summarized F/S_Consolidated Income Statement (KRW Billion) 22.1Q 22.4Q 23.1Q QoQ Revenue 21,338 19,248 19,381 133 Gross Profit 2,929 379 1,386 1,007 (Gross Margin) (13.7%) (2.0%) (7.2%) (5.2%p) SG&A 671 805 681 △124 Operating Profit 2,258 △425 705 1,130 (Operating Margin) (10.6%) (△2.2%) (3.6%) (5.8
Slide 23: Summarized Consolidated Balance Sheet
Summarized F/S_Consolidated Balance Sheet (KRW Billion) 22.1Q 22.4Q 23.1Q QoQ Current Assets 50,929 47,650 50,016 2,366 Cash and Cash Equivalents 19,584 18,739 19,878 1,139 Accounts Receivable 11,708 9,770 11,279 1,509 Inventories 16,079 15,472 15,028 △444 Non-Current Assets 47,698 50,757 52,596 1,8