Posco Holdings Inc. · KRX:005490
Posco — Investor Presentation (December 2024)
32 slides from Posco's investor presentation, Dec 23, 2024
Slide 1: POSCO Holdings Corporate Value-up Plan
HOLDINGS POSCO Holdings Corporate Value-up Plan Dec. 2024 *
Slide 2: Disclaimer
• . * * ’ posco HOLDINGS Disclaimer This presentation contains certain forward-looking statements relating to future financial condition and business performance of the company and/or the industry in which it operates. The forward-looking statements set forth herein concern future circumstances that
Slide 3: Overview, Value-up Plan, Governance, Communication
CHAPTER CHAPTER CHAPTER CHAPTER I i in w I Overview Value-up Plan Governance Communication POSCO HOLDINGS CORPORATE VALUE-UP PLAN
Slide 4: Overview
Overview Vision Company Profile Core Business . History POSCO HOLIDNGS CORPORATE VALUE-UP
Slide 5: POSCO Holdings Vision
- posco vision HOLDINGS Materials for Tomorrow, Innovation for Excellence Secondary Battery j Materials Energy/ New Infrastructure J Business Flagship business Growth Engine Working as a key generator, Building production and propelled by unrivaled R&D competitiveness industry leadership Robust fact
Slide 6: Company Profile
Company Profile Foldings Overview Shareholders (As of sep.30,2024) Cnmrwinv POSCO HOLDINGS INC. NPS Other foreign institutions y (Representative Director CHANG, In-Hwa; JEONG, Ki-Seop) Headquarter 6261, Donghaean-ro, Nam-gu, Pohang-si, Gyeongsangbuk-do BlackRock Listed Market Korea KOSPI Overseas Ne
Slide 7: Core Business
OOSCO Core Business ^holdings I Pursue sustainable growth by cultivating new growth businesses such as secondary battery materials based on stable profit generation from steel and infrastructure businesses • POSCO and new secondary battery materials entities will remain unlisted to ensure the whole
Slide 8: History
History Global expansion & Evolving into Foundation Growth into a steelmaking legend Privatization business diversification a top-tier matenals company 1967-1973 1974-1992 1993-2002 2003-2018 2019-Present 1968.4. 1974.12. 1994.10. 2003.11. 2019.4. Pohang Iron &Steel Company is $100M achieved in stee
Slide 9: Value-up Plan Analysis
Value-upPlan Analysis Revenue growth/ ROIC / Shareholder return POSCO HOLIDNGS CORPORATE VALUE-UP PLAN
Slide 10: Analysis (Financial Performance)
posco Analysis (Financial Performance) holdings Asset has grown up due to continuous investment into core businesses including new EV battery materials Recent cyclical weakness in global steel industry and the chasm in the secondary battery market have caused a slow down in revenue and profit, resul
Slide 11: Steel and Secondary Battery Materials Analysis
Steel Secondary Battery Materials i Given the cyclical nature of the industry, profitability of major I Chasm in the EV market and early-stage production of recently global steel companies including POSCO Holdings fluctuate commissioned plants had affected the decline in revenue with market conditio
Slide 12: Analysis (Business): Energy/Infrastructure and New Business
posco Analysis (Business) HOLDINGS Energy/lnf rastructure New Business Upstream business expansion and portfolio restructuring Selection and commercialization of new business domains driving stable revenue and profit growth based on trends, core competencies, and value alignment—Key Businesses: Natu
Slide 13: Value-Up Target
Value-Up Target Shareholder Growth Value Capital Avenue Efficiency Shareholder Growth Return 68% (-2027) ROIC cBkase Dividend+a, * compound Annual Growth Rate Share Cancellation (CAGR) 6-9% (-2027) Transparent Governance
Slide 14: Rationales for selecting key indicators
Rationales for selecting key indicators Company is in an investment phase, allocating assets to expand its steelmaking operations overseas and grow its secondary battery materials business preparing for full-scale production mancia arge Given our diverse operations, strategic portfolio adjustments a
Slide 15: Boost Corporate Value by ROIC based Capital Allocation
Boost Corporate value by ROIC based Capital Allocation Allocate capital on high ROIC businesses with growth potential and continue decisive restructuring on low ROIC/non—core businesses (krw tn) Underperforming Restructuring Assets & Business 2.6. Restructuring Investment proportion External Financi
Slide 16: Plan: Revenue Growth
OOSCO Plan CD Revenue Growth holdings Targeting 6-8% CAGR revenue growth (2025-2027) New revenue contribution from EV battery materials investment to kick in (KRwtn) Revenue Action Plans CAGR c Focus on profitability enhancement with high-end product mix increase Start investment on upstream facilit
Slide 17: Steel: Expanding into growth markets
Steel Expanding into growth markets and strengthening global competitiveness Implement upstream-focused global investment roadmap; elevate product portfolio by region and industry; build low-carbon production system, e.g., electric furnace Offshore Upstream Strong Market Low carbon Investment Leader
Slide 18: Secondary Battery: Fortify competence
Secondary Battery Fortify competence by acquiring promising resources and innovating products and technologies Take advantage of the market chasm to acquire quality resources and enhance manufacturing competence to hit the ground running once the market recovers + —SB Quality upstream Efficient prod
Slide 19: Infra-New Biz.
Infra-New Biz. Support the group business growth and expand into new and future materials Energy E&C DX New Business Strengthen LNG value chain Build sustainable and high Intelligent Factory-assisted M&A in promising areas and expand terminal related value-added business Group productivity innovatio
Slide 20: Enhance ROIC by optimizing business portfolio
Enhance ROIC by optimizing business portfolio and resource allocation Group ROIC Action Plan Portfolio Rebalancing Restructuring Focus Group resources on Restructure underperforming steel and battery materials business and non-core assets 4.7% . 3.3- 3.5% Explore new areas to cultivate Liquidity gen
Slide 21: Business portfolio management based on WACC-ROIC index
Business portfolio management based on the WACC-ROIC index Formulate strategy to achieve long-term structural profit growth and value enhancement utilizing ROIC which considers both profitability and invested capital Control Process Hurdle rate ROIC by Company/Business unit Meet or Exceed Group WACC
Slide 22: Business Portfolio Rebalancing
Business Portfolio Rebalancing business portfolio focusing on 2 Core + New Engine’ 2 Core Businesses New Engines Main Growth Steel Expansion of high value-added products and business busine technology innovation for cost reduction steel Secondary Battery New Improvement of investment efficiency and
Slide 23: Restructuring
Restructuring Restructuring Underperforming and Non-core businesses/assets Reallocate restructuring proceeds (over KRW 2.6 tn) into core biz investment or additional shareholder return Restructuring Targets • Underperforming • Non-core business assets (KRW tn) Under- Cumulative performing Non core c
Slide 24: Plan: Shareholder Return
pOSCO Plan Shareholder Return holdings Proactive implementation of global standard shareholder return policies 2016 2020-2022 2023 2023 -2024 1st large corporation in Korea Share buyback (KRW 1 tn) Balance corporate growth Determining dividends to initiate the program (2015) Share cancellation (3%)
Slide 25: TSR with balanced dividend and share cancellation
TSR, with balanced combination of dividend and share cancellation Maximizing of shareholder value through balance between business growth and stable shareholder return Treasury share Dividend I Share Cancellation of 6% over 3 years C24-26) I 50-60% of annual FCF (parentbase) will be used to pay base
Slide 26: Governance
* Shareholder return in 2026 is based on maintaining current policy (2026 onwards will be reviewed later) 2 5 Governance Board of Directors H Appointment of CEO and Outside Directors ESG Governance 4 POSCO HOLIDNGS CORPORATE VALUE-UP PLAN O O O “
Slide 27: Board of Directors
Board of Directors HOLDINGS All BoD committees are headed by outside directors including the chair of the board Taking the lead in appointing outside directors in 1997 and separating the roles of CEO and Chairman of the Board in 2006 Board of Directors 10 directors (6 outside, 4 inside) Includes 1 f
Slide 28: Appointment of CEO and Outside Directors
Appointment of CEO and Outside Directors HOLDINGS Improvement in appointment process with board-led governance CEO Intemal/External |nitiation of Verification/Confirmation Final candidate General Meeting of appointment recommendation Shareholders , (CEO Candidate Pool (CEO Candidate Mgmt, Committee)
Slide 29: ESG Governance
Governance POSCO Holdings Board oversees ESG risks across the Group In the ESG Session, Board members and CEO of each affiliated company discuss long-term ESG strategies ESG Governance Board of Directors ; (ESG Committee) ESG Sesslon Group Level Corporate Compliance & Ethics Team (ESG) Group ESG Cou
Slide 30: Communication
Communication—POSCO HOLIDNGS CORPORATE VALUE-UP PLAN
Slide 31: Reinforce IR communication
Communication Reinforce IR communication throughout diverse shareholders and channels Board of Directors, C-level ESG investors Earnings Release Sustainability Report Transparent disclosure of ESG in English “ management performance Direct communication of ESG C-Level & BoD IR Corporate Governance A
Slide 32: Thank You
posco HOLDINGS Thank You * Above information is based on simple aggregation that includes internal transactions; the ‘Others’ segment (15 companies including POSCO Holdings) has been excluded
POSCO Holdings — Investor Presentation (December 2024) on 6ix