Posco Holdings Inc. · KRX:005490
Posco — Q1 2022 Earnings Presentation
21 slides from Posco's earnings presentation, Apr 25, 2022
Slide 1: 1Q 2022 Earnings Release
April 25, 2022 1Q 2022 Earnings Release Exhibit 99.1
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 the first quarter 2022. As figures in this presentation are based on unaudited financi
Slide 3: Contents
Consolidated Business Performance Business Performance of Major Subsidiaries Appendix Contents 2022 Business Outlook Business Performance of Key 7 Businesses
Slide 4: Consolidated Business Performance
Consolidated Business Performance Income Major Activities 1) Including performance result of POSCO parent basis before the vertical spin-off ○ Profit levelled up from subsidiaries of Green Infra., Green Materials & Energy Business units P-Int’l : Profit rose as steel product sales and raw materials
Slide 5: Business Performance of Major Subsidiaries
Steel Business Unit Green Infrastructure Business Unit Green Materials & Energy Business Unit Business Performance of Major Subsidiaries POSCO Overseas Steel POSCO International POSCO E&C POSCO Energy POSCO Chemical
Slide 6: POSCO Production/Sales
POSCO_Production/Sales △785 △300 QoQ Production △5.8%p 95.3% 93.2% 87.4% 1Q21 4Q21 1Q22 ○ Crude steel and product production decreased due to major facilities revamping BF revamping : Gwangyang No.4 BF (Feb 11~ Jun 10, 120 days) Major downstream : [Pohang] 1, 4 Wire rod (13 days), 3 Plate (22 days)
Slide 7: POSCO Income/Financial Structure
POSCO_Income/Financial Structure +100 Financial Structure Income 1Q21 4Q21 1Q22 ○ Profit lowered as sales volume dropped and coking coal price jumped 【Operating Profit (billion KRW)】 STS price increase, etc. 4Q21 △413 Raw materials cost Increase, etc. 1Q22 Production·sales decline △161 QoQ (billion
Slide 8: Overseas Steel Subsidiaries Performance
PT. Krakatau POSCO 1Q21 4Q21 1Q22 455 573 508 51 117 82 765 833 857 20 13 10 Overseas Steel Subsidiaries_Performance Zhangjiagang STS (PZSS) Revenue Operating Profit (USD million) Revenue Operating Profit (USD million) 1Q21 4Q21 1Q22 Secured profitability level by expanding domestic sales ratio desp
Slide 9: Overseas Steel Subsidiaries Performance
PY VINA POSCO Maharashtra 316 386 419 52 23 54 85 99 102 10 3 4 Overseas Steel Subsidiaries_Performance Profit improved slightly through stronger sales activities and export expansion, against the delayed market recovery - Sales volume(k tons) : 4Q21) 93 → 1Q22) 110 (+17) - Product price(QoQ) : △0.1
Slide 10: POSCO International Performance
POSCO International_Performance Major Activities Income (billion KRW) 1Q21 4Q21 1Q22 QoQ Steel 4,605 6,240 6,901 +661 Energy 262 514 346 △168 Agri.& Materials 1,459 1,531 1,317 △214 【Revenue by Business】 1Q21 4Q21 1Q22 Revenue Operating Profit QoQ (billion KRW) +281 OP Margin 6,303 8,286 8,567 +40 +
Slide 11: POSCO E&C Performance
(billion KRW) 1Q21 4Q21 1Q22 QoQ Plant 378 617 562 △55 Infrastructure 155 264 223 △41 Building 1,034 1,207 1,019 △188 △283 1,567 2,087 1,804 +18 +1.5%p 129 8.2% 3.7% 76 5.2% 94 ○ Increased new orders, mostly from building projects (+0.2 tril. KRW, QoQ) Plant : Pohang No.4 Cokes, Gwangyang electrical
Slide 12: POSCO Energy Performance
○ Power Generation : Profit improved as entering into peak power season and rise in sales prices Profit of power generation sector improved due rise in winter season electricity demand and rise in sales price(SMP) due to surge in fuel costs ○ Terminal : Profit increased due to stable rental earnings
Slide 13: POSCO Chemical Performance
○ Cathode : Improved profit due to increased sales volume and rise in sales price Increased sales volume (+27% QoQ) Rise in sales price due to rise in prices of raw materials (Lithium +14%, etc.) Rise in product display price due to rise in exchange rates * 1,155 ('21.4Q) → 1,200 KRW/USD ('22.1Q) ○
Slide 14: Business Performance of Key 7 Businesses
Performance of Key 7 Businesses Business Performance of Key 7 Businesses Steel Cathode/Anode Lithium·Nickel Hydrogen Renewable Energy Construction Agriculture
Slide 15: Steel and Cathode/Anode
Steel Steel Emission (Domestic) 78.5 → 71 mil tons CO2 ○ Fortified organizational control to lower CO2 emissions • Set up and run organization to take on carbon neutral action plan • Launched carbon neutral committee and outside council for advisory Cathode/Anode Cathode/Anode Capacity 110 → 930 k t
Slide 16: Lithium·Nickel and Hydrogen
Lithium ·Nickel 2030 Lithium ·Nickel Capacity 0 → 520 k tons 2021 Lithium Nickel ○ Conduct feasibility study on major production project and infrastructure, Start development of projects in RE abundant areas • Grey hydrogen : Target to complete F/S of 70k tons within 2022 • Blue/Green : Review Join
Slide 17: Renewable Energy, Construction and Agriculture
○ Build the ground for joint development of domestic wind-power plant • Under discussion of Joint Development Agreement and launching SPC with Korea South-East Power corp. on off-shore wind power plant in Jeonnam area (300MW, 1.6 tri. KRW) ○ Strengthen green energy business portfolio including solar
Slide 18: 2022 Business Outlook
2022 Business Outlook POSCO Holdings Consolidated 8.9 21.4 77.2 CAPEX (trillion KRW) Revenue (trillion KRW) Debt (trillion KRW)
Slide 19: Appendix
Summarized Income Statement Appendix Summarized Balance Sheet
Slide 20: Summarized Consolidated Income Statement
1Q21 4Q21 1Q22 QoQ Revenue 16,069 21,334 21,338 +4 Gross Profit 2,137 3,142 2,929 △213 (Gross Margin) (13.3%) (14.7%) (13.7%) △1.0%p SG&A 585 773 671 △102 Operating Profit 1,552 2,369 2,258 △111 (Operating Margin) (9.7%) (11.1%) (10.6%) △0.5%p Non-Operating Profit - △427 103 +530 Share of Profit(Los
Slide 21: Summarized Consolidated Balance Sheet
1Q21 4Q21 1Q22 QoQ Current Assets 39,442 46,622 50,977 +4,355 Cash Balance* 17,568 18,156 19,584 +1,428 Accounts Receivable 8,954 10,062 11,708 +1,646 Inventories 10,253 15,215 16,079 +864 Current Ratio 215.7% 221.1% 215.8% △5.3%p Non-Current Assets 43,380 44,850 45,569 +719 Other Long-term financia