Posco Holdings Inc. · KRX:005490
Posco — Q4 2022 Earnings Presentation
23 slides from Posco's earnings presentation, Jan 27, 2023
Slide 1: 2022 Earnings Release
Exhibit 99.1 Leading Provider of Sustainable Future Materials 2022 Earnings Release 2023. 1. 27.
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 2022. As figures in this presentation are based on unaudited financial sta
Slide 3: Contents
Contents Consolidated Business Performance Major Business Activities Business Performance by Major Areas 2023 Business Outlook Appendix 4Q22 Earnings Release │ January 27, 2023 3
Slide 4: Consolidated Business Performance
Consolidated Business Performance Green infrastructure · Green materials businesses showed growth, while steel profit weakened due to the flood and slow demand YoY Financial Structure Income 84,750 12.8 9.5% (billion KRW) 76,332 (trillion KRW) 8.7% YoY Net Debt Ratio △4.3 8.5 Revenue 57,793 12.1% +8
Slide 5: Major Business Activities_Expansion of Future Growth Businesses
Major Business Activities_Expansion of Future Growth Businesses Secured long-term growth engines for Green materials·energysector and put continuous efforts to improve business structure under a holding company in 2022 3.23 4.12 6.28 10.11 10.31 11.10 3.2 11.4 3.29 6.22 8.26 10.14 12. Steel/Non-Stee
Slide 6: Full restoration from the flood damage
Full restoration from the flood damage Completed the restoration of Pohang Steel Works on Jan. 20, and reinforced its disaster prevention system Recovery Progress Prevention of Recurrence ○ System : Established BCP(Business Continuity Planning) ○ Completed the restoration of all 17 steel-processing
Slide 7: Completed construction of PLSC, POSCO HY Clean Metal
Completed construction of PLSC, POSCO HY Clean Metal Started commercial production of cathode materials by recycling with construction completion of PLSC · POSCO HY Clean Metal [Upstream] PLSC* * Poland Legnica Sourcing Center ○ Outline ○ Outline - Business model : extracting cathode materials such
Slide 8: Mid-to Long-term Strategies of Recycling Business
Mid-to Long-term Strategies of Recycling Business Expand global supply chain of materials through localization by region, in connection with POSCO Chemical’s cathode business ○ Build the ‘Closed Loop’ of ‘scrap→cathode’ by recycling business associated with cathode orders - Secondary battery manufac
Slide 9: Technology Development for LiB Recycling
[Downstream] POSCO HY Clean Metal [Upstream] PLSC Technology Development for LiB Recycling Developing next-generation pyrometallurgical technology by combining POSCO’s smelting technology with currently existed production process Current Process ○ Background ○ Process Highlights - Currently, workers
Slide 10: Integrated corporation of P-International and P-Energy
Integrated corporation of P-International and P-Energy Create synergy through integration of value chain in energy sector → Strengthen the group’s business portfolio Statutory merger of P-International(remaining company) to buy P-Energy(extinguished company), Outline the integrated corporation offic
Slide 11: Business Performance by Major Areas
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 Energy - POSCO E&C Green Materials - POSCO Chemical 4Q22 Earnings Release │ January 27, 2023
Slide 12: POSCO_Production/Sales
POSCO_Production/Sales Production Sales YoY * Utilization Rate 88.3% 94.1% 84.1%△10.0%p (thousand tons, %) YoY 35,456 38,264 Sales Volume (thousand tons) 34,270 35,935 Crude Steel △3,312 59.1 32,144 Domestic 34,219△4,045 56.3 △2.8%p Sales Ratio 35,801 55.4 34,437 Product △3,528 WTP 32.5 32,273 Sales
Slide 13: POSCO_Income/Financial Structure
POSCO_Income/Financial Structure Income 【Operating Profit YoY】 YoY (billion KRW) (billion KRW) +2,775 42,695 △8,526 39,920 6,650 Revenue△1,330 16.7% 6,766 △475 Production 26,510 OP Margin /Sales 5.4% Repair cost △11.3%p 6,650 Volume△790 and losses 4.3% Drop, etc. from ASP Raw material Production 2,2
Slide 14: Overseas Steel Subsidiaries_Performance
Overseas Steel Subsidiaries_Performance Turned to losses as of 4Q due to slow global steel demand in 2H 2022 PT. Krakatau POSCO Zhangjiagang STS (PZSS) • Sales volume and profit dropped year-on-year due to raw material • Recorded profit loss as shrunk margin due to the Chinese Zero cost increase and
Slide 15: POSCO International_Performance
POSCO International_Performance Major Activities Income YoY 37,990 (billion KRW) ○ Trading +4,041 33,949 - Steel : Recorded the highest revenue as of POSCO products Revenue sales over 10 million tons 21,472 • Sales volume of POSCO products(million tons) : 2021) 9.4 → 2022) 10.3 - Agriculture : Showe
Slide 16: POSCO Energy_Performance
POSCO Energy_Performance Major Activities Income YoY 3,707 +1,731 (billion KRW) ○ Power Generation : Operating profit went up due to electricity demand increase and sales price impact 000 Revenue • The end of social distancing and a revival of industries lead 1,976 electricity demand increase • SMP
Slide 17: POSCO E&C_Performance
POSCO E&C_Performance Major Activities Income (billion KRW) YoY ○ Operating Profit decreased due to construction materials price hike, while revenue increased Revenue • Plant : Profit increased year-on-year(+35 bil KRW) due to new 9,435 +1,236 construction PJT and profit improvement of overseas PJT,
Slide 18: POSCO Chemical_Performance
POSCO Chemical_Performance Major Activities Income ○ Cathode : Both revenue and profit increased, (billion KRW) YoY 3,302 profitability improved +1,312 • Sales volume increased(+40%) due to maximizing production/ Revenue 1,990 sales of N65 and having ZPHE on a consolidated basis 1,566 • Revenue went
Slide 19: 2023 Business Outlook
2023 Business Outlook Consolidated Revenue 86 (trillion KRW) CAPEX 11 (trillion KRW) Net Debt 11 (trillion KRW) 4Q22 Earnings Release │ January 27, 2023 19
Slide 20: Appendix
Appendix 2022 POSCO Safety Management Activities Summarized Income Statement Summarized Balance Sheet 4Q22 Earnings Release │ January 27, 2023 20
Slide 21: 2022 POSCO Safety Management Activities
2022 POSCO Safety Management Activities Established safety-first culture and secured practical safety management system Established practical and strong health and safety management system §【Budget】 Strengthened safety control by creating a process for pre-executing the safety budget Safety §【System
Slide 22: Summarized F/S_Consolidated Income Statement
Summarized F/S_Consolidated Income Statement (billion KRW) 2020 2021 2022 1Q 2Q 3Q 4Q YoY Revenue 57,793 76,332 84,750 21,338 23,010 21,155 19,247 8,418 Gross Profit 4,720 11,881 7,649 2,929 2,733 1,608 379 4,232 △ (Gross margin) (8.2%) (15.6%) (9.0%) (13.7%) (11.9%) (7.6%) (2.0%) ( 6.6%) △ SG&A 2,3
Slide 23: Summarized F/S_Consolidated Balance Sheet
Summarized F/S_Consolidated Balance Sheet (billion KRW) 2020 2021 2022 YoY Current Assets 35,831 46,622 47,650 1,028 Cash & Cash Equivalents 16,365 18,156 18,739 583 Accounts Receivable 8,121 10,062 9,770 292 △ Inventories 9,052 15,215 15,472 257 Non-Current Assets 43,256 44,850 50,757 5,907 Tangibl