Posco Holdings Inc. · KRX:005490
Posco — Q3 2023 Earnings Presentation
17 slides from Posco's earnings presentation, Oct 24, 2023
Slide 1: Earnings Release Q3 2023
Global Eco-friendly Future Materials Provider Earnings Release Q3 2023 October 24, 2023
Slide 2: Disclaimer
2 / 19 Disclaimer This presentation was prepared and circulated to release the information regarding the company’s business performance to shareholders and investors prior to the completion of auditing for the period of the 3rd quarter 2023. As figures in this presentation are based on unaudited fin
Slide 3: Contents
3 / 19 Contents Consolidated Business Performance Major Business Activities Business Performance by Major Areas Appendix
Slide 4: Consolidated Business Performance
4 / 17 Consolidated Business Performance Decreased profits in Steel due to weak market conditions, while sustained steady profits in Green Infrastructure QoQ Income QoQ Financial Structure 13.3 13.7% +0.4%p (KRW Billion) (KRW Trillion) % 21,155 12.9% Revenue 20,121 18,961 △1,160 Net Debt Ratio 8.2 +
Slide 5: Progress in Battery Materials Business Construction
5 / 17 Major Business Activities Progress in Battery Materials Business Construction Material Company PJT ~ ‘22.E '23.1H ‘23.2H ‘24 ‘25 Construction Construction Construction Phase I (Plant 1. ’22.10,of factory/pond of Electricity Completion of Brine Plant 2. ’22.12) (1Q) (Plant 2. ’23.5) (’24.2Q) P
Slide 6: Establishment of Joint Automotive Steel Plants in China
6 / 17 Major Business Activities Establishment of Joint Automotive Steel Plants in China In response to the China’s policy to improve self-sufficiency of materials, establishing automotive steel plants in China through a JV with HBIS Plant 1(annual cap. 450k tons) completed in October 2023, with Pla
Slide 7: Building EV Materials Value Chain
7 / 17 Major Business Activities Building EV Materials Value Chain Completion of a motor core plant in Mexico and an expansion plan of the global supply chain with the enhancement of the high-grade NO facility POSCO P-International [ ] Steel (POSCO) Motor core (P-International) Parts company OEM (An
Slide 8: Business Performance by Major Areas
8 / 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 9: POSCO Production/Sales
9 / 17 POSCO Production/Sales Production QoQ Sales QoQ Utilization Rate* 86.4% 87.3% 90.8% +3.5%p (k tons, %) 8,352 (k tons) 9,311 +458 Sales Volume 8,300 △52 Crude Steel 8,857 8,853 7,904 55.4 Domestic Sales 55.1 Product Ratio 52.3 △3.1%p △105 8,377 +1.7%p 7,900 8,482 WTP 30.2 Sales Ratio* 29.0 28.
Slide 10: POSCO Income/Financial Structure
10 / 17 POSCO Income/Financial Structure Income (KRW Billion) QoQ Revenue 【Operating Profit QoQ】 (KRW Billion) 10,878 10,298 9,675 △623 '23.2Q OP Margin 545 '23.3Q 841 8.2% +469 7.5% △0.7%p 38 727 Operating Profit 841 ASP 397 3.6% 841 727 △114 decrease Production/ Raw material Sales volume cost decr
Slide 11: Overseas Steel Subsidiaries Performance
11 / 17 Overseas Steel Subsidiaries Performance PT. Krakatau POSCO Zhangjiagang STS (PZSS) Decrease in prices due to weak demand, actively expanding domestic • Despite persistent oversupply, a decline in raw material costs(△6%) sales to secure profits and maximum price leverage lead to a reduction
Slide 12: POSCO International Performance
POSCO International Performance 12 / 17 Income Major Activities (KRW Billion) QoQ ○ Global Business (OP 125 (KRW Billion)) 10,091 Revenue 8,871 - Steel : Decrease in sales due to worsening global conditions 8,046 △825 • OP(KRW Billion) : 2Q) 118.8 → 3Q) 91.5 - Agriculture : Profits reduced due to de
Slide 13: POSCO E&C Performance
14 / 17 POSCO E&C Performance Income Major Activities (KRW Billion) ○ Revenue decreased due to the completion of mega QoQ 2,591 2,438 PJTs in 2Q, while profits slightly increased through cost △153 cutting measures Revenue 2,262 • Plant/Construction : Due to the completion of mega PJTs in 2Q, revenue
Slide 14: POSCO Future M Performance
15 / 17 POSCO Future M Performance Income Major Activities 1,286 (KRW Billion) 1,193 QoQ ○ Cathode : Increased sales of N86 and others resulting in +93 revenue growth *Exchange rate : KRW/U$ :1,3151,311 Revenue 1,053 • Increased in sales with the sales of N86 single crystal to Ultium • Minimized de
Slide 15: Appendix
15 / 19 Appendix Summarized Income Statement Summarized Balance Sheet
Slide 16: Summarized F/S Consolidated Income Statement
Summarized F/S Consolidated Income Statement 16 / 17 (KRW Billion) '22.3Q '23.2Q '23.3Q QoQ Revenue 21,155 20,121 18,961 △1,160 Gross Profit 1,608 2,034 1,888 △146 (Gross Margin) (7.6%) (10.1%) (10.0%) (△0.1%p) SG&A 688 708 691 △17 Operating Profit 920 1,326 1,196 △130 (Operating Margin) (4.3%) (6.6
Slide 17: Summarized F/S Consolidated Balance Sheet
Summarized F/S Consolidated Balance Sheet 17 / 17 (KRW Billion) '22.3Q '23.2Q '23.3Q QoQ Current Assets 53,769 50,008 48,636 △1,373 Cash and Cash Equivalents 20,942 19,704 19,694 △10 Accounts Receivable 11,099 11,498 11,521 23 Inventories 17,430 15,028 14,154 △874 Non-Current Assets 51,456 53,070 54