Posco Holdings Inc. · KRX:005490
Posco — Q1 2024 Earnings Presentation
19 slides from Posco's earnings presentation, Apr 25, 2024
Slide 1: POSCO Holdings Q1 2024 Earnings Release
POSCO Holdings Q1, 2024 Earnings Release April 25
Slide 2: Disclaimer
Disclaimer 2 / 19 This presentation was prepared and circulated to shareholders and investors to release information regarding the company’s business performance prior to completion of auditing for the period pertaining to the 1st quarter of 2024. Given that this presentation is based on unaudited f
Slide 3: Contents
Contents 3 / 19 New Corporate Vision Consolidated Business Performance Key Business Activities Business Performance by Key Area 2024 Targets Appendix
Slide 4: New Corporate Vision: Materials for Tomorrow, Innovation for Excellence
New Materials for Tomorrow, Innovation for Excellence 4 / 19 Corporate Vision Focus resources and capability in Steel and Rechargeable Battery Materials, POSCO Group’s core priorities Steel Achieve unrivaled cost competence through an economical decarbonized production system and transition to Intel
Slide 5: Rechargeable Battery Materials Business
Rechargeable Battery Materials Business 5 / 19 2024 marks the origin year of lithium production and our full EV battery materials value chain (FVC) By using the industry slowdown(chasm) to our advantage, acquire promising assets i.e. lithium, next-gen technologies To ensure quality return on our gro
Slide 6: Consolidated Business Performance
Consolidated Business Performance 6 / 19 Steel/Green Infrastructure performance equivalent to previous quarter; Rechargeable Battery Materials impacted by inventory impairment loss reversal Income Financial Structure QoQ QoQ 9,863 25, 000 (KRW billion, %) 20.00% 10, 000 (KRW billion, %) 50. 00% +1,8
Slide 7: Key Business Activities: POSCO Pilbara Lithium Solution
Key Business Activities_POSCO Pilbara Lithium Solution 7 / 19 Initial shipment of Korea’s first ore-based lithium hydroxide (LH) Since plant commissioning in March, ramp-up is underway; by year-end, the plant aims to build a 43K ton capacity. With IRA-compliant ‘LH,’ paving the path to a reliable do
Slide 8: Key Business Activities: POSCO Silicon Solution
Key Business Activities_POSCO Silicon Solution 8 / 19 Ready for launch: Silicon AAM downstream facility (Young-il Bay Industrial Complex, Pohang) Earlyoperationof550tpadownstreamproductionline;externally-sourcedSiO(intermediate)assistscustomerdemandreadiness Phase1(550tpa)constructiontobecompletedby
Slide 9: Performance by Key Area
Performance by Key Area 9 / 19 Steel Business - POSCO · Production/Sales · Income - Overseas Steel · PT-KP · PZSS · P-Maharashtra · PY-VINA Green Infrastructure Business - POSCO International - POSCO E&C Rechargeable Battery Materials Business - POSCO Future M
Slide 10: POSCO
POSCO 10 / 19 Production/Sales Income QoQ QoQ (KRWbillion, %) (KRWbillion, %) 88.0% 85.6% 3.1% △2.4%p 12, 000 2.6% 2.8% +0.3%p 11, 000 78.5% OP Margin 3.0 % Utilization 10, 500 80. 00% 11, 000 Rate* 2.0 % 90% 40,000 10, 000 70. 00% 9,622 80% 1.0 % Crude steel 9,019 △358 9,376 9,520 +144 9,5 00 10, 0
Slide 11: Steel (overseas)
Steel (overseas) 11 / 19 PT. Krakatau POSCO Zhangjiagang STS (PZSS) Despite increased sales volume, higher raw materials price and steel Despite lower sales and intense domestic competition, profits beat plate line repair in Q1 drive down profits previous quarter performance by securing low-cost
Slide 12: POSCO International
POSCO International 12 / 19 Income Highlights QoQ (KRW Billion) ○ Materials, etc.: solid profits supported by strong sales to NA and European eco-friendly industries 400 .00% OP Margin 3.4% 3.4% 13, 500 350 .00% +0.7%p 2.7% 300 .00% • Increased North American and European steel sales in high- streng
Slide 13: POSCO E&C
POSCO E&C 13 / 19 Income 13. 00% Highlights 4,8 00 11. 00% (KRW Billion) 3,8 00 9.0 0% ○ Stronger profits in Plant and Infrastructure businesses QoQ counter earnings slide in Construction caused by higher input 2,773 prices 7.0 0% Revenue 2,8 00 2,364 2,453 △320 • Plant, Infrastructure: Profits rise
Slide 14: POSCO Future M
POSCO Future M 14 / 19 Income Highlights QoQ (KRW Billion) ○ CAM: Despite price falls, higher sales keep revenue at level with 1,146 1,138 △8 Revenue 1,135 Q4 ’23. Improved yield and inventory impairment loss reversal 5 1,2 00 3.3% +9.7%p OP Margin 1,0 00 3 help to turn a profit. 1.8% 800 1 • CAM pr
Slide 15: 2024 Targets
2024 Targets 15 / 19 Consolidated Revenue 78 (KRW Trillion) CAPEX 10.8 (KRW Trillion) Note: Capital investment in 2023 totaled KRW 8.6 tril. (76% of the KRW 11.3 tril. budgeted for the year was executed)
Slide 16: Appendix
Appendix 16 / 19 Progress on Battery Materials Plant Construction Summarized Income Statement Summarized Balance Sheet
Slide 17: Progress on Battery Materials Plant Construction
Progress on Battery Materials Plant Construction 17 / 18 Material Company Project ~ '22.E '23. '24 '25 Construction commenced Pond & factory Utility installation Phase I (Plant 1. Oct.‘22 construction Plant 1. Plant 2. Completion of Brine Plant 2. Dec.‘22) (Q1) Apr. May (Q2) P- Argentina Phase II Ap
Slide 18: Summarized Consolidated Income Statement
Summarized Consolidated Income Statement 18 / 19 (KRW Billion) Q1 ‘23 Q4 ‘23 Q1 ‘24 QoQ Revenue 19,381 18,664 18,052 △612 Gross Profit 1,373 1,099 1,329 +230 (Gross Margin) (7.1%) (5.9%) (7.4%) +1.5%p SG&A 669 794 746 △48 Operating Profit 705 304 583 279 (Operating Margin) (3.6%) (1.6%) (3.2%) +1.6%
Slide 19: Summarized Consolidated Balance Sheet
Summarized Consolidated Balance Sheet 19 / 19 (KRW Billion) Q1 ‘23 Q4 ‘23 Q1 ‘24 QoQ Current Assets 50,016 46,212 46,774 +562 Cash Balance* 19,878 17,907 17,883 △24 Accounts Receivable 11,279 11,015 11,685 +670 Inventories 15,028 13,826 13,975 +149 Non-Current Assets 52,596 54,733 56,494 +1,761 Tang