Posco Holdings Inc. · KRX:005490
Posco — FY2021 Earnings Presentation
22 slides from Posco's earnings presentation, Jan 28, 2022
Slide 1: 2021 Earnings Release
Jan 28, 2022 2021 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 fiscal year 2021. As figures in this presentation are based on unaudited financial sta
Slide 3: Contents
2022 Business Plan Appendix Contents 2022 Business Outlook 2021 Earnings Release
Slide 4: 2021 Business Performance
Parent Business Performance Consolidated Business Performance Financial Structure 2021 Business Performance Subsidiary Performance
Slide 5: Business Performance_Sales/Production (Parent)
2019 2020 2021 38,006 35,897 +2,329 +1,364 34,437 35,935 38,264 35,801 35,990 34,270 55.3 55.4 35,456 59.1 YoY +1,186 +3.7%p 2019 2020 2021 ○ Crude Steel and product production volume increased year-on-year to meet the demand accordingly ○ As market rebounded, sales expanded largely from domestic an
Slide 6: Business Performance_Parent
2021 YoY +13,410 OP Margin +5,515 +12.4%p 2019 30,374 2,586 8.5% 4Q 2021 QoQ +213 OP Margin △623 △5.8%p ○ Reached record profit as product price edged up despite the raw material cost increase 【Operating Profit (billion KRW)】 Sales price hike 6,650 1,135 2020 +11,520 △6,596 Cost including raw materi
Slide 7: Business Performance_Consolidated
+18,539 +6,835 +7.9%p 64,367 3,869 6.0% 57,793 2,403 4.2% 76,332 9,238 12.1% 2019 2020 2021 +697 △749 △4.0%p ○ Operating profit levelled down despite revenue increase QoQ as steel margin tightened due to raw material price increase (billion KRW) 1Q21 2Q21 3Q21 4Q21 QoQ Steel 1,333 2,048 2,916 2,068
Slide 8: Financial Structure
(billion KRW) 2019 2020 2021 YoY Liabilities ratio 65.4% 65.9% 66.9% +1.0%p EBITDA 7,330 6,025 12,794 +6,769 ○ Financial soundness improved, despite debt increase, as both cash-in-hand and EBITDA enhanced as profit from all sectors rose (billion KRW) 2019 2020 2021 YoY Liabilities ratio 22.1% 25.9%
Slide 9: Subsidiary Performance_Domestic
9 Subsidiary Performance_Domestic 1,484 90 2019 1,566 60 2020 2021 1,990 122 +424 +62 YoY 2019 1,845 147 2020 1,517 241 2021 1,976 203 Profit maintained its yearly level through expansion of terminal-related business, while power generation margin dropped as LNG price soared - LNG price increase YoY
Slide 10: Subsidiary Performance_Overseas
10 POSCO Maharashtra PT.Krakatau POSCO Reached highest profit ever as price went up along with market upturn and swift response toward demand to secure profitability - Product price increase YoY : +76% PY VINA Profit upturned through product price increase, defending domestic market share and joint-
Slide 11: 2022 Business Plan
Steel Market Outlook Major Business Plan 2022 Business Plan Steel New Growth
Slide 12: Steel Market Outlook
Steel Market Outlook Market price to hold firm as demand recovers while low carbon trend restrains further supply expansion 12 Steel/Raw material Price Steel price Steel Supply/Demand Expect global growth of 2% supported by economy stimulus trend - EM countries restocking demand to rebound and vacci
Slide 13: Major Business Plan_Steel
13 Major Business Plan_Steel Domestic Generate stable profit as sales toward domestic and eco-friendly market expands Develop low-carbon production technology and fortify control over carbon emission Strengthen review on reaching CO2 emission target through special carbon neutral council Continue to
Slide 14: Major Business Plan_New Growth (Hydrogen)
- Plan to sign to co-develop with major oil producers in Saudi (~Nov 22) - Conduct joint F/S to produce blue hydrogen with major US oil producers (~Dec 22) Set overseas production platform for clean hydrogen and secure related upcoming technology Hydrogen Review investment and conduct F/S for large-
Slide 15: 2022 Business Outlook
15 4.9 8.9 21.4 7.1 39.8 77.2 2022 Business Outlook Parent Consolidated CAPEX (trillion KRW) Revenue (trillion KRW) Debt (trillion KRW) Crude Steel Production 36.5 million tons Product Sales 34.7 million tons
Slide 16: Appendix
Earnings Trend Appendix Aggregated Business Performance by Sector Summarized Financial Statements Summarized F/S_Parent (IS, BS) Summarized F/S_Consolidated (IS, BS)
Slide 17: Summarized F/S_Parent Income Statement
2019 2020 2021 YoY Crude Steel Production (thousand tons) 38,006 35,935 38,264 +2,329 Product Sales (thousand tons) 35,990 34,270 35,456 +1,186 STS 1,968 1,819 1,983 +164 Carbon Steel Sales Price (thousand KRW) 722 663 975 +312 Revenue 30,373 26,510 39,920 +13,410 Cost of Goods Sold 26,701 24,323 32
Slide 18: Summarized F/S_Parent Balance Sheet
2019 2020 2021 YoY Current Assets 18,216 19,580 25,919 +6,339 Cash Balance* 8,822 11,430 11,648 +218 Accounts Receivable 3,987 3,694 6,018 +2,324 Inventories 4,989 4,094 7,623 +3,529 Current Ratio 546.8% 384.7% 329.4% △55.3%p Non-Current Assets 37,495 37,215 38,324 +1,109 Other Long-term financial a
Slide 19: Summarized F/S_Consolidated Income Statement
2019 2020 2021 YoY Revenue 64,367 57,793 76,332 +18,539 Gross Profit 6,250 4,720 11,881 +7,161 (Gross Margin) (9.7%) (8.2%) (15.6%) +7.4%p SG&A 2,382 2,317 2,643 +326 Operating Profit 3,869 2,403 9,238 +6,835 (Operating Margin) (6.0%) (4.2%) (12.1%) +7.9%p Non-Operating Profit △719 △296 △437 △141 Sh
Slide 20: Summarized F/S_Consolidated Balance Sheet
2019 2020 2021 YoY Current Assets 34,842 35,831 46,622 +10,791 Cash Balance* 12,463 16,365 18,156 +1,791 Accounts Receivable 9,078 8,121 10,046 +1,925 Inventories 10,920 9,052 15,231 +6,179 Current Ratio 213.4% 212.6% 221.3% +8.7%p Non-Current Assets 44,216 43,256 44,850 +1,594 Other Long-term finan
Slide 21: Aggregated Business Performance by Sector
(billion KRW) Revenue Operating Profit Net Profit 2019 2020 2021 2019 2020 2021 2019 2020 2021 Steel 49,808 43,546 63,549 2,687 1,205 8,365 586 701 6,600 Global Infra. 49,808 44,851 57,402 1,180 1,188 1,303 657 552 751 Trading 37,625 32,996 45,290 654 472 620 160 160 325 E & C 7,713 7,610 7,413 266
Slide 22: Earnings Trend
Operating profit edged up as profit from all sectors reached record high, Debt to EBITDA improved despite slight debt increase 2017 2018 2019 2020 2021 Consolidated D/E* 2.9 2.5 3.0 3.5 1.8 OP margin (%) 2017 2018 2019 2020 2021 Consolidated 7.6 8.5 6.0 4.2 12.1 Parent 10.2 12.4 8.5 4.3 16.7 22 Earn