Posco Holdings Inc. · KRX:005490
Posco — Q2 2022 Earnings Presentation
21 slides from Posco's earnings presentation, Jul 22, 2022
Slide 1: 2Q 2022 Earnings Release
July 21, 2022 2Q 2022 Earnings Release Exhibit 99.1
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 second quarter 2022. As figures in this presentation are based on unaudited financ
Slide 3: Contents
Appendix Contents 2022 Business Outlook Major Business Activities Consolidated Business Performance Business Performance of Major Units
Slide 4: Consolidated Business Performance
Income +1,672 △160 △1.5%p QoQ 18,292 21,338 23,010 9,238 2Q21 1Q22 2Q22 (billion KRW) Revenue Operating Profit 2Q21 1Q22 2Q22 2Q21 1Q22 2Q22 QoQ QoQ Steel 15,770 18,423 19,331 +908 2,060 1,678 1,762 +84 POSCO 9,277 11,272 11,871 +599 1,608 1,199 1,322 +123 Overseas Steel 5,360 5,952 6,463 +511 395 3
Slide 5: Business Performance of Major Units
Business Performance of Major Units Steel Business Unit Green Infrastructure Business Unit Green Materials & Energy Business Unit POSCO Overseas Steel POSCO International POSCO E&C POSCO Energy POSCO Chemical
Slide 6: POSCO Production and Sales
△225 △112 △3.2%p 93.2% 87.4% 84.2% ○ Crude steel and product production volume decreased as major facilities went through revamping BF Revamping: Gwangyang No.4 BF, Feb 11~Jun 10, 2022 (120 days) Major large-scale maintenance: [Pohang] HR No.2 (14 days), STS 3 ∙ 4 steelmaking (14 days) [Gwangyang] H
Slide 7: POSCO Steel Business Performance
* Including POSCO parent results before the vertical spin-off 2Q21 1Q22 2Q22 ○ Operating profit increased despite raw material cost hike Sales price(carbon steel, thousand won/ton) : ’22.1Q) 1,136 → 2Q) 1,236 (+100) Iron ore applied cost(‘22.1Q price=100) : ’22.1Q) 100 → ’2Q) 98.8 Coking coal applie
Slide 8: Overseas Steel Subsidiaries Performance
824 857 883 38 10 △29 2Q21 1Q22 2Q22 Operating profit increased QoQ through sales mix based on the market situation and selling HR with slab, after being processed from KS - Sales price hiked as slab supply declined due to ongoing Russia-Ukraine situation : QoQ [Slab] +29% [Plate] +17% - Processed t
Slide 9: Overseas Steel Subsidiaries Performance
POSCO Maharashtra PY VINA 85 102 104 12 4 7 147 370 419 388 62 54 20 Sales volume and price both went down due to steel export tax imposed by Indian government and slow demand from construction and distribution - Sales volume (k tons) : 1Q22) 340 → 2Q22) 322k tons (△18) - Sales price (QoQ) : △8% Sal
Slide 10: POSCO International Performance
(billion KRW) 2Q21 1Q22 2Q22 QoQ Steel 5,172 6,901 7,993 +1,092 Energy 336 346 322 △24 Agri.& Materials 2,237 1,317 1,609 +292 +1,360 7,745 8,567 9,927 +60 +0.3%p 109 1.4% 1.4% 116 1.7% 176 ○ Steel : Revenue increased as product and raw material sales price went up Steel product sales volume up : (1
Slide 11: POSCO E&C Performance
(billion KRW) 2Q21 1Q22 2Q22 QoQ Plant 368 562 592 +30 Infrastructure 199 223 397 +174 Building 1,065 1,019 1,170 +151 ’21.2Q ‘22.1Q ‘22.2Q +355 1,632 1,804 2,159 +24 +0.3%p 109 6.7% 5.2% 94 5.5% 118 ○ Continued to win orders majorly from city housing projects (2Q 2.7 trillion KRW) Plant : Pohang No
Slide 12: POSCO Energy Performance
○ Power Generation : Profit dropped as electricity demand declined and electricity price fell Profit edged down due to the drop in CP and SMP, entering the slow season, and scheduled revamping of No.3 and 7 power plant ○ Terminal : Profit declined as number of LNG ship commissions dropped Number of
Slide 13: POSCO Chemical Performance
○ Cathode : Profit improved by lithium and metal price hike Sales price increased as raw material cost went up (QoQ +40%) Rise in product display price due to rise in exchange rates ○ Anode : Revenue increased as exchange rate went up ○ Refractories, Furnace Maintenance/Construction : Profitability
Slide 14: Major Business Activities
Major Business Activities Major Business Activities Appendix 2022 Business Outlook Secondary Battery Materials Next Generation Battery Materials Business Energy Business
Slide 15: Major Business Activities: Secondary Battery Materials
Major Business Activities_Secondary Battery Materials Nickel ○ Completed construction of PLSC, Poland (Black Mass production capacity 8k tons/yr) (Jun) : Plan to start production in September ○ Construction for HY Clean Metal in Gwangyang underway (construction progress rate 47%) : Scheduled to comp
Slide 16: Major Business Activities: Next Generation Battery Materials Business
Major Business Activities_Next Generation Battery Materials Business • Joint Venture for solid electrolyte (Jeong Kwan 60%, P-Holdings 40%) • Co-test underway with battery makers/OEMs (~2026) - Commercial production targeted to start in 2027 (7.2k tons by 2030) • 100% stake acquired for company hold
Slide 17: Major Business Activities: Energy Business
• Triple the production volume by 2025 - Production volume*(10k tons) : 42(22)→ 86(24)→ 120(25) - Mine lots : 168(22)→258(23)→ 562(25) - CAPEX : A$0.61 bil (drilling 0.21, gas refining 0.31, water process 0.09) . CAPEX will be injected 50% by stakeholders and 50% debt * Production volume is shown as
Slide 18: 2022 Business Outlook
8.6 23.7 86.0 2022 Business Outlook POSCO Holdings Consolidated CAPEX (trillion KRW) Revenue (trillion KRW) Debt (trillion KRW)
Slide 19: Appendix: Summarized Financial Statements
Summarized Income Statement Appendix Summarized Balance Sheet
Slide 20: Summarized Consolidated Income Statement
2Q21 1Q22 2Q22 QoQ Revenue 18,292 21,338 23,010 1,672 Gross Profit 2,823 2,929 2,733 △196 (Gross Margin) (15.4%) (13.7%) (11.9%) △1.8%p SG&A 623 671 635 △36 Operating Profit 2,201 2,258 2,098 △160 (Operating Margin) (12.0%) (10.6%) (9.1%) △1.5%p Non-Operating Profit 63 103 △5 △108 Share of Profit(Lo
Slide 21: Summarized Consolidated Balance Sheet
2Q21 1Q22 2Q22 QoQ Current Assets 40,182 50,929 52,132 +1,203 Cash Balance* 16,683 19,584 17,939 △1,645 Accounts Receivable 9,422 11,708 12,394 +686 Inventories 11,427 16,079 17,962 +1,883 Non-Current Assets 43,288 47,698 49,738 +2,040 PPE 29,334 29,709 30,402 +693 Intangible Assets 4,318 4,206 5,22