Posco Holdings Inc. · KRX:005490
Posco — Q4 2023 Earnings Presentation
18 slides from Posco's earnings presentation, Jan 31, 2024
Slide 1: Global Eco-friendly Future Materials Provider Earnings Release 2023
Global Eco-friendly Future Materials Provider Earnings Release 2023 January 31, 2024
Slide 2: Disclaimer
2 / 18 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 4th quarter 2023. As figures in this presentation are based on unaudited fin
Slide 3: Contents
3 / 18 Contents Consolidated Business Performance Major Business Activities Business Performance by Major Areas Appendix
Slide 4: Consolidated Business Performance
4 / 18 Consolidated Business Performance Revenue and profits shrank due to declining steel market and key material price falls Income Financial Structure YoY YoY (KRW Billion, %) 20.00% 84,750 (KRW Billion, %) 18, 000 20. 00% 90, 000 Revenue 80, 000 76,332 77,127 △7,623 15.00% 16, 000 13.5% 15. 00%
Slide 5: Major Business Activities in 2023
5 / 18 Major Business Activities in 2023 Enhanced exectution capabilities by committing to eco-friendly future materials leadership and implementing growth roadmaps in each business sectors Steel Green Infrastructure Green Materials P-International and P-Energy merge 1 Expanded High-grade NO product
Slide 6: Major Business Activities in 2023 ESG
6 / 18 Major Business Activities in 2023 ESG Enhanced ESG governance and responses to key issues to achieve positive external evaluation E ▪-POSCO's Carbon Neutrality Roadmap Establishing a goal: 30% reduction by '35 S ▪ Group Safety Council governs preventive index G ▪theESGBoard performance manage
Slide 7: Dividends and Dividend Record Date
7 / 18 Dividends and Dividend Record Date 2023 total dividend payout set to KRW 759 billion aligned to the Shareholder Return Policy 2023-2025 Dividend reserve: 50-60% of annual free cash flow (FCF) Shareholder Base dividend: KRW 10,000 per share Return Policy After payment of the base dividend, rem
Slide 8: Business Performance by Major Areas
8 / 18 Business Performance by Major Areas Steel - POSCO ·Production/Sales ·Income - Overseas Steel ·PT-KP ·PZSS ·P-Maharashtra ·PY-VINA Green Infrastructure - POSCO International - POSCO E&C Green Materials - POSCO Future M
Slide 9: POSCO
9 / 18 POSCO Production/Sales Income YoY YoY (KRW Billion, %) (KRW Billion, %) Utilization 94.1% 16.7% 87.7% +3.6%p OP Margin 50, 000 Rate* 84.1% 42,695 15. 0% 45, 000 39,920 90. 00% 38,972 △3,723 40, 000 38,264 Revenue 5.4% 10. 0% Crude 40, 000 80. 00% Steel △0.1%p 35, 000 5.3% 70. 00% 38, 000 5.0
Slide 10: Overseas Steel Subsidiaries
10 / 18 Overseas Steel Subsidiaries PT. Krakatau POSCO Zhangjiagang STS (PZSS) Despite the sluggish market conditions, the decline in OP mitigated Mitigated the decline in OP through cost optimization despite delayed through cost reduction measures and increased domestic sales of HR economic rec
Slide 11: POSCO International
11 / 18 POSCO International Income Major Activities YoY ○ Global Business (’22) 538 → ’23) 490 (KRW Billion)) (KRW Billion) +1.1% : Mitigated OP decline through expansion of sales in 3.5% 60. 00% 13, 500 2.8% p the U.S. and Japan, focusing on infrastructure PJTs OP Margin 2.2% 50. 00% 11, 500 41,697
Slide 12: POSCO E&C
12 / 18 POSCO E&C Income Major Activities (KRW Billion) ○ Revenue increased(KRW 0.7 tril.) due to new projects 13, 800 7.0 0% and speeding up the construction, while profits YoY 5.4% decreased(KRW 0.1 tril.) because of cost increase OP Margin 11, 800 10,166 +731 9,435 5.0 0% 9,8 00 8,199 • Plant : R
Slide 13: POSCO Future M
13 / 18 POSCO Future M Income Major Activities YoY (KRW Billion) 5,0 00 4,760 +1,458 7.0 0% ○ Cathode: High-priced new product (N86) sales 6.1% • With the initiation of N86 sales (incl. single crystal) to Ultium, sales volume increased(YoY 4,5 00 OP Margin 6.0 0% 4,0 00 5.0% 3,5 00 5.0 0% +44%) with
Slide 14: Appendix
14 / 18 Appendix Progress in Battery Materials Business Construction Summarized Income Statement Summarized Balance Sheet Summarized Cash Flow Statement
Slide 15: Progress in Battery Materials Business Construction
Progress in Battery Materials Business Construction 15 / 18 Material Company PJT ~ '22.E '23. '24 '25 Construction Construction Phase I (Plant1.’22.10, offactory/pond Plantelectricals Plant2.’22.12) Completion of Brine (1Q) (Plant2. ’23.5) (’24.2Q) P- Argentina Plantelectricals Phase II Approval (Pl
Slide 16: Summarized F/S Consolidated Income Statement
Summarized F/S Consolidated Income Statement 16 / 18 (KRW Billion) 2021 2022 2023 YoY Revenue 76,332 84,750 77,127 △7,623 Gross Profit 11,881 7,649 6,417 △1,233 (Gross Margin) (15.6%) (9.0%) (8.3%) (△0.7%p) SG&A 2,643 2,799 2,886 +86 Operating Profit 9,238 4,850 3,531 △1,319 (Operating Margin) (12.1
Slide 17: Summarized F/S Consolidated Balance Sheet
Summarized F/S Consolidated Balance Sheet 17 / 18 (KRW Billion) 2021 2022 2023 YoY Current Assets 46,622 47,650 46,212 △1,438 Cash Balance* 18,156 18,800 17,907 △893 Accounts Receivable 10,062 9,770 11,015 1,245 Inventories 15,215 15,472 13,826 △1,647 Non-Current Assets 44,850 50,757 54,733 3,976 Ta
Slide 18: Summarized F/S Consolidated Cash Flow Statement
Summarized F/S Consolidated Cash Flow Statement 18 / 18 (KRW Billion) 2022 2023 Ⅰ. Operating Activities 6,187 5,881 1. Net Profit 3,560 1,846 2. Depreciation and Amortization 3,694 3,823 3. Changes in Accounts Receivable, Accounts Payable, etc. △1,067 212 Ⅱ. Investing Activities △4,220 △7,127 1. Fin