Posco Holdings Inc. · KRX:005490
Posco — Investor Day (July 2024)
48 slides from Posco's investor day presentation, Jul 12, 2024
Slide 1: The 3rd POSCO Group LiB Materials Business Value Day
The 3rd POSCO Group LiB Materials Business Value Day
Slide 2: Disclaimer
Disclaimer posco HOLDINGS This presentation contains certain forward-looking statements relating to the businessjl financial performance and results of the company and/or the industry in which it operates. The forward-looking statements set forth herein concern future circumstances and results and o
Slide 3: New Corporate Vision & Enterprise Value Enhancement Strategy
New Corporate Vision & Enterprise Value Enhancement Strategy Jeong Ki-Seop Chief Strategy Officer & President, POSCO Holdings
Slide 4: New Corporate Vision & Enterprise Value Enhancement Strategy
New Corporate Vision & Enterprise Value Enhancement Strategy Jeong Ki-Seop Chief Strategy Officer & President, POSCO Holdings
Slide 5: New Corporate Vision: Materials for Tomorrow, Innovation for Excellence
New Corporate Vision Materials for Tomorrow. Innovation for Excellence
Slide 6: Materials for Tomorrow, Innovation for Excellence
Materials for Tomorrow, Innovation for Excellence * V*. * # ••••• mi m& Enhance e responsible ESG management system Foster e dynamic corporate culture to grow together Achieve predominant business leadership baaed on future technology ,
Slide 7: Focus on Steel and EV Battery Materials, the Two Core Businesses
Focus on Steel end EV Battery Materials, the two core biz posco HOLDINGS Become next technologies -generation materials leader by maximizing group synergy and acquiring unmatched Steel Global expansion driven mainly by upetreem investment Economicelly viable decerbonization Reetructuring of low-prof
Slide 8: Steel: Power the Transition to a Sustainable Future
i i Steel: Power the transition to e sustainable future with global No.l cost El technology leadership Qualitative growth through upstream-focused global expansion and economically viable decarbonization posco HOLDINGS Business Environment Block Economy Decarbonization / / 1 Supply chain realignment
Slide 9: EV Battery Materials: Become a Leading Global Provider of Raw and Active Materials
posco HOLDINGS EV Battery Materials: Become a Leading Global Provider of Raw and Active Materials Capitalize on the “chasm (industry slowdown)” to acquire high-quality assets, stake out future markets and grow inherent competence Business Environment EV market slowdown Cost and quality competitivene
Slide 10: Strengthen Portfolio Management to Improve Capital Efficiency
Strengthen Portfolio Management to Improve Capital Efficiency Exit from projects and assets that are underperforming with low profitability, nan-care, and businesses misaligned with Group strategy; divestment proceeds to be reinvested in core projects or returned to shareholders w l.gtr Restructurin
Slide 11: Cancel Treasury Shares (6%) within 3 Years
Cancel Treasury Shares (6%) within 3 years (wi.9tr based on current price) o â–¡ur shareholder return policy balances investment for growth and stable dividend. ‘23 dividend payout ratio at 44.7% Unencumbered portion (6%) of treasury shares to be cancelled over 3 years (excludes 4% used es underlyin
Slide 12: Repurchased Treasury Share to Be Immediately Cancelled
Repurchased treasury share to be immediately cancelled posco HOLDINGS In addition to existing treasury shsre csncellstion, Boerd resolved WlDDbn of new treasury shares buybsck snd csncellstion *Part of the proceeds from non-care asset divestment in Ql ‘24 wss used to fund the buybsck Treasury share
Slide 13: Improve Enterprise Value by Optimizing Capital Efficiency
1 -w Improve enterprise vslue by optimizing cspitsl efficiency “ â– ^aM mm E Balance investment in growth with continuous restructuring and deliver more value to shareholders . * posco HOLDINGS—Exit from underperfarming assets J? Invest in growth Improve capital efficiency Increase shereholder retur
Slide 14: Enterprise Value Enhancement Report
Enterprise Vslue Enhsncement Report s-JLv 0 KPIs used for evaluation posco HOLDINGS Goals and plana are inf ormed by status analysis and Board discussion; revisit goals after KPI evaluation Disclose Enterprise Value Enhancement Plan by EoY Goals SI plans Y N Enterprise Value Enhancement Plan Investo
Slide 15: Turning the Chasm into Opportunities, Li-ion Battery Materials Business Strategy
Materials for Tomorrow, Innovation for Excellence Turning the Chasm into Opportunities, Li-ion Battery Materials Business Strategy posco HOLDINGS
Slide 16: The EV Market Has Entered a Chasm Due to a Slowdown
The EV market hes entered a chesm due to a slowdown h— Market situation in leading countries ******* ******* ******* ****** EPA* has lowered CD2 reduction target for 27- (Emissions regulation proposal) EV sales in Ql ‘24 fell short of forecast Sales (in thousand EVs) 4UU, Q4 ‘23—330, Ql ‘24—430, Q2
Slide 17: Market Environment: Metal Prices Stabilize in 1H
Market Environment Prices stsbilize in 1H 24 following a decline thet began in 2H 23 Metal Prices Li Lithium (US/kg, quarterly average) Ni Nickel 77.2 71 7D.1 75.1 32.3 54.7 45.4 15.2 VI 25.7 *\22.2 22.3 1B-B^1J.2 14.1 13.B 2D.3 12.D ‘22 ‘23 ‘24 Present ’22 (Jul. ‘24) ‘23 ‘24 Present (Jul. ‘24) Dema
Slide 18: Global Policy Likely to Keep China in Check
While uncertainties persist, global policy likely to continue to keep Chine in check posco HOLDINGS * Ten OHIO to S0330 } v vow ^ el CINCINNATI, OHIO US presidential lection in November If Trump is re-elected, changes in EV promotion policy is expected to ceuse market to shrink (Abolition/Reduction
Slide 19: Tariff Hikes on Chinese EVs
While uncertainties persist, global policy likely to continue to keep Chine in check posoo HOLDINGS Tariff hikes on Chinese EVs % 10% MAX.4B
Slide 20: POSCO Group's Strategy to Address the Market Chasm
Posco Group's strategy toaddress the marketchasm = *<<2
Slide 21: Three Strategic Pillars for the Battery Materials Business
11. Complete a Full Value Chain â–¡2. Boost Business Competitiveness â–¡3. Get ahead of the race to the pO€ Next-Generation battery market H0LC
Slide 22: From Raw to Active Materials, Multiple Projects Come Online in 2024
From raw to active materials, poec©—HOLDINGS aFunva^n multiple projects will come online in 24 ££SX£ZL PQSCD Group’s value chain —Bet ahead of the race â–¡ the Next-Generation batteryrnerket ^mm^^mmm^^ ^^^^^ m^m^^^m^ QCIQJI huhh^ BH^HmHHHHM ^BBBBBBBBBBBBl ^i^BBBBBBBBBV ^â–HBbBbV _________ , ^i^BBBBB
Slide 23: Synergies within POSCO Group to Promote Battery Materials Growth
Complete a Full Value Chain Synergies within PDSCD Group to promote the growth of the lithium ion battery materials business Synergies posco HOLDINGS . From steel to lithium ian battery materials Share knowhow of the world’s most competitive steelmaker • From rew materials to recycle Deliver tailore
Slide 24: Boost Business Competitiveness
â–¡1. Complete a Full Value Chain Competitiveness â–¡3. Get ahead of the race to the Next-Generation battery market OOSCO HOLDINGS ID
Slide 25: Hard Rock Lithium: Accelerate Ramp-up and Obtain Product Certification
- A Hard Rock Lithium: Accelerate ramp-up and obtain p”°-° Complete ^^^r _ _â– â– â– â– â– â– â–_ mmW _â– _ a Fun Va.ue Cham product ccrtif ication by leveraging experience in Demo Plant • Boast Business # . ‘ ‘ ’ * x .•!•«*•**’ # Competitiveness .. * • * . , • # # * u P-PLS (Herd Rack Lithium) 1- P
Slide 26: Brine Lithium: Minimize Trial and Error by Applying P-PLS Experience
Complete a Full Value Chain Brine Lithium: Minimize trial and error by applying P-PL5 operational experience posco HOLDINGS P-Argentina (Brine Lithium) PDSCD type plant operation rate (%) (as of end of quarter) 100% Recycle Cathode Anode Get ahead of the race to the Next-Generation battery market ‘2
Slide 27: Complete Full Value Chain: Acquire Top-Tier Assets and Expand
Complete a Fun Value Chain Boost Business CompetitivanssB Jhein nsss f1bbb RBcycIa Cathode Anode â–¡et ahead of the race to tha Next-Generation battery market Use the chasm to our advantage by acquiring top-tier assets end expending business posco HOLDINGS Hard Rock Australia: Increase production th
Slide 28: Diversified Technology Options Provide Flexibility
- 0 Diversified technology options provide flexibility p— b Full Value Chain tO SdSpt ‘ BH H H Competitiveness !_—» HHHB H| | l .1. . ‘ Nl Brine Hard Rock Beothermal brine Recycle—_ Cathode —’ Anode Technology Mechanism Advantages Operations _ . ,-——- Sustainable and proprietary Bet ahead of the rac
Slide 29: Breakthrough Technologies: BPED and DLE
- Breakthrough Technologies p™ Complete a Full Value Chain Boost Business â–¡â–¡mpetitivenBBB Bipolar Electradialyaia (BPED) Direct Lithium Extraction (IDLE) Li (Successfully applied in P-PLS Plant 1 S P-Argentina Phase 1) (Pilot Plant test using geDthermal brine, ~‘24.12) Ni I Lithium sulfate is el
Slide 30: Lithium Production Capacity
Ni Recycle Cathode Anode Get ahead of the race â–¡ the Next-Generation battery market posco HOLDINGS Li production capacity (Unit: kt) Hard Rack Brine Recycle 71 Recycle, 3 Brine, 5D Recycle, 3 Brine, 5D Recycle, 3 Herd Rack, 22 Recycle, 3 Brine. 25 Hard Rock, 43 Hard Rack, 43 Hard Rock, 43 2023 202
Slide 31: Build an IRA-Compliant Nickel Production System
Complete a Full Value Chain Recycle Cathode Anode Bet ahead of the rece to the Next-Generation battery market Increase synergy with Cathode business by building an IRA-compliant nickel production system â–¡nly 6% of global nickel supplies in ‘23 were IRA-compliant 30kt(B%) IRA-compliant nickel sulfa
Slide 32: Nickel Breakthrough Technologies
Complete a Full Value Chain ii Recycle Cathode Anode Get ahead of the race to the Next-Generation battery market _ Breakthrough Technologies Atmospheric Acid Leeching (AAL) (Pilot Plant) Hydrometallurgical process under development; Nickel ore is leached at atmospheric pressure and temperature As-is
Slide 33: Nickel Sulfate Production Capacity
Complete a Full Value Chain Bcycls Cathode Anode Get ahead of the race the Next-Generation battery market Nickel sulf ete(NiS04) production capacity (Unit: kt, contained nickel) Primary Recycle Recycle, 3 Primary, 45 Recycle, 3 Recycle, 3 Primary, 2D Recycle, 3 Primary, 2D 2023 2024 2025 2026 3& Exc
Slide 34: Recycle: Achieve Acceptance and Operation Rate Targets
Complete Recycle Cathode Anode Get ahead of the race to the Next-Generation battery market Recycle Achieve acceptance and operation rate targets; Attain profitability by diversifying customer bese P-HYCM I \n Acceptance rate / Operation rate (%) (Based Dn monthly average) Acceptance 100% 94% 100% 9E
Slide 35: Enter European and North American Markets
Complete Full Value Chain Boost Bueineae Compatitrvenaaa Enter European & North American markets based an experience in recycle hub operation Recycle Cathode AnadB â–¡et ahead of the race to the Next-Generation battery market OOSCO HOLDINGS Use various raw materials Scrap from cell makers * End of L
Slide 36: Recycle Breakthrough Technologies
Complet a Full Value Chai Boast Business Competitiveness Rec 1 Cathode Anode Get ahead of the rac to the Naxt-Ganarati battery mar Recycle Breakthrough Technologies posco HOLDINGS Pyrometallurgical ECL battery recycle process under development (Demo plent in operation since Jun. ‘24, commercial prod
Slide 37: Diversify Cathode Customer Base and Product Portfolio
Complete a Full Value Chain Recycled de Catho Anode Get ahead of the race to the Next-Generation battery market !athode Diversify Cathode customer base and product portfolio posco HOLDINGS Diversify customer bese Global DEMs and Cell makera SAMSUNG SDI HONDA ULTIUM L L7VN XI Cb LG Energy Solution SK
Slide 38: Cathode Breakthrough Technologies
Compleff a Full Value Chaii Recycled Cathod â– i Anode â–¡at ahead of the rei to the Next-Generetii battery mark Cathode Breakthrough Technologies Mn-Rich LMR* <p«ot pianti * Lithium Manganese Rich First to pursue commercialize cost-competitive LMR (Sample test) Particle size control â–¡ensification
Slide 39: Cathode Production Capacity
Complete a Full Value Chain Recycled Cethod Anode Get ahead of the race the Next-Generation battery market Cathode production capa Domestic China North America China, 25 Domestic, 130 2023 2024 â– â–(Unit: kt) North America, 3d China, 25 Domestic, 1BD North America, Ed China, 25 Domestic, 2BD posco
Slide 40: Full Anode Line-up to Supply IRA-Compliant Products
Get eheed of the race to the Next-Generation battery market Anode Full Anode line-up to supply IRA-compliant products posco HOLDINGS Natural graphite * Offtake for African flake graphite (Tanzania, Mozambique, etc.) * Construction of spherical graphite /acid treetment facilities in Korea completed C
Slide 41: Anode Breakthrough Technology
Camplet a Full Value Chai Boost Business Competitiveness Recycled Cathode An Get ahead of the rai to the Next-Generatii battery mark Anodi Breakthrough Technology Natural graphite anode (Mass production in Sejong factory) high-performance (fast-charging/low-swelling) products As-is To- High-density!
Slide 42: Anode Production Capacity
Complete a Full Value Chain Boost Business Competitiveness Li Ni Recycled Cathode Anode Get eheed of the race o the Next-Generation battery market Anode production capaci Natural graphite Artificial graphite Silicon Artificial graphite, B Natural graphite, 74 2023 2024 posco HOLDINGS (Unit: kt) Sili
Slide 43: Get Ahead to the Next-Generation Battery Market
â–¡1. â–¡E. Complete a Full Value Chain Boost Buainess Competi Get a Next-Generation LA to the posco HOLDINGS 29
Slide 44: Commercialization of All-Solid-State Batteries and Industry Trend
Complete e Full Velue Chain Commercialization of all- industry trend 2027 tor ‘27 “B” company “All-solid-stair battery-mounted EVs will r launched in 207 â–¡lid-state batteries in 27 Demand outlook 140 ED Primarily applied to premium EVa Expected demend between ED end 12DGWh in 2032 I a DOSCO HOLDIN
Slide 45: Supply All Key Components for All-Solid-State Batteries
Complete a Full Value Chain Supply all key components All-solid-state batteries e + separator ; â–º Solid electrolyte i E V.___________________________________________________’ Enhanced safety ithn â– anode Increased energy density for all-solid-state batteries posco HOLDINGS Products by PDSCD Group
Slide 46: Expedite Entry into Next-Generation Battery Materials
Complete a Full Value Chain Expedite entry into next generation bettery meteriels by eccelerating technology development beeed on pertnerehipe with customers posco HOLDINGS Solid electrolyte (p-jksolid solution) Cost competitiveness through sourcing low-cost raw materials (Product certification ongo
Slide 47: Summary: POSCO Group's Strategy to Stay Competitive
Summary PD5CD Group’s strategy to stey competitive Build competencies the full value chain Acquire high-quality assets (Salt lakes, mines) â–¡a- Bet ahead of the race to the Next-Generation battery merket 3.4 ‘23 trillion won tathode. Anode B.B Lithium, Nickel 2.2 ‘26 Revenue â– ‘23 1.6 Anode 1.1 Li
Slide 48: Thank You for Your Attention
Materials for Tomorrow, • u/ m Innovation for Excellence fr Hl h Thank vdu for vour attention