Posco Holdings Inc. · KRX:005490
Posco — Q3 2022 Earnings Presentation
19 slides from Posco's earnings presentation, Oct 24, 2022
Slide 1: 3Q 2022 Earnings Release
Oct 24, 2022 3Q 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 third quarter 2022. As figures in this presentation are based on unaudited financi
Slide 3: Contents
Contents Consolidated Business Performance Business Performance by Major Areas Appendix
Slide 4: Consolidated Business Performance
△1,855 △1,178 △4.8%p QoQ 20,637 23,010 21,155 9,238 3Q21 2Q22 3Q22 15.1% 3,117 2,098 920 4.3% 9.1% 【 Before Inter-company Transaction Adjustment 】 Steel profit weakened due to the flood and the slow demand, while LiB materials business showed resilient growth QoQ +205 7,752 2Q22 3Q22 7,547 3,007 2,6
Slide 5: Flood Impact on 3Q Result
Flood Impact on 3Q Result POSCO 408 billion KRW ○ Loss due to production and sales volume decline : 222 bil KRW - Based on IFRS, increased amount of fixed cost caused by temporary production drop was realized in 3Q COGS ○ One-off loss due to the flood damage : 186 bil KRW - Inventory impairment loss
Slide 6: Flood Damage and Repair Schedule
Flood Damage and Repair Schedule Exert all efforts to normalize the production to work to minimize the impact on supply and demand; timely respond towards customers’ urgent requests ○ Target to produce all type of products by the year end, Maximize production in Gwangyang Works - Prioritize based on
Slide 7: LiB Materials Business Progress
LiB Materials Business Progress Secured production base, enable to fluidly respond to change in business environment, as the IRA* Lithium Start construction of battery-grade nickel refinery in SNNC, lowered dependency to China through MHP procurement from RNO Nickel * IRA : Critical minerals should
Slide 8: Business Performance of Major Areas
POSCO Overseas Steel POSCO International POSCO Energy POSOC E&C POSCO Chemical Business Performance of Major Areas Steel Green Infrastructure Green Materials
Slide 9: Steel: Production and Sales Volume
+315 △441 QoQ +2.2%p 94.6% 84.2% 86.4% 3Q21 2Q22 3Q22 ○ Crude steel production went up as No.4 BF revamping completed in Gwangyang in 2Q, whereas product production dropped as downstream in Pohang flooded - Pohang : 2Q) 3,983 → 3Q) 3,309 △674 - Gwangyang : 2Q) 4,562 → 3Q) 5,551 +989 3Q21 2Q22 3Q22 Q
Slide 10: Steel: Prices, Costs and Flood Impact
Sales Price (carbon steel, thousand KRW/ton) : 2Q) 1,236 → 3Q) 1,186 (△50) - Domestic distribution price downtrend slightly halted after the flood, domestic demand remains weak Raw Material Input Cost : Iron Ore 2Q) 100→3Q) 107, Coking Coal 100→93.6 (2Q22 price=100) - Despite the fall in input cost,
Slide 11: Overseas Steel Subsidiaries: PT. Krakatau POSCO and others
PT. Krakatau POSCO Profitability dampened as demand faltered due to China’s Zero-COVID policy and weak construction market, and low- pricing competition with local competitors - Sales volume (k tons) : 2Q) 280 → 3Q) 270 (△10) - Sales price (QoQ) : △12.1% / Raw materials cost (QoQ) : △11.2% ＊Sales pr
Slide 12: Overseas Steel Subsidiaries Performance
Turned to loss as sales volume and price dropped due to weakened construction market and low-priced imports entered the market - Sales volume (k tons) : 2Q) 108 → 3Q) 90 (△18) - Product price (QoQ) : △11.7% 104 10 7 ’21.3Q ‘22.2Q 83 ‘22.3Q 78 △8 ’21.3Q ‘22.2Q ‘22.3Q 395 388 42 20 363 0.1 Profit slas
Slide 13: POSCO International
(bil KRW) 3Q21 2Q22 3Q22 QoQ Steel 8,390 10,047 7,968 △2,079 Energy 335 322 349 +27 Investment Co., etc. 426 701 724 +23 3Q21 2Q22 3Q22 △2,029 9,151 11,070 9,041 △124 △0.7%p 149 1.6% 2.9% 321 2.2% 197 ○ Trading Gas sales volume (bil ft3) : 2Q) 45.5 → 3Q) 49.7 Operating profit (bil KRW) : 2Q) 104 → 3
Slide 14: POSCO Energy
(bil KRW) 3Q21 2Q22 3Q22 QoQ Power Generation 495 620 977 +357 Terminal 71 28 47 +19 Fuel Cell, etc. 24 28 25 △3 3Q21 2Q22 3Q22 +373 676 1,049 +60 +4.4%p 11.9% 3.8% 26 8.2% 86 70 590 ○ Power generation : Electricity demand and utilization rate went up, lifting up profit Both revenue and operating pr
Slide 15: POSCO E&C
(bil KRW) 3Q21 2Q22 3Q22 QoQ Plant 475 592 568 △24 Infrastructure 224 397 356 △41 Building 1,033 1,170 990 △180 Consolidated subsidiaries 297 331 348 +17 3Q21 2Q22 3Q22 △228 2,029 2,490 2,262 △83 △3.2%p 111 5.5% 5.1% 126 1.9% 43 ○ Steady order won led by plant projects (3Q 2.6 trl KRW) Plant(1.5 trl
Slide 16: Green Materials: POSCO Chemical
○ Cathode : Both revenue and profit improved as sales volume and N65 price went up Sales price climbed due to raw material hike (QoQ +27%) Sales volume in total went up as volume to European EV increased and started to supply to domestic ESS (QoQ +25%) ○ Anode : Profitability improved as price went
Slide 17: Appendix
Appendix Summarized Income Statement Summarized Balance Sheet
Slide 18: Summarized Income Statement
3Q21 4Q21 1Q22 2Q22 3Q22 2022 Accumulated Accumulated YoY Revenue 20,637 21,334 21,338 23,010 21,155 65,503 +10,505 Gross Profit 3,779 3,142 2,929 2,733 1,590 7,251 △1,489 (Gross margin) (18.3%) (14.7%) (13.7%) (11.9%) (7.5%) (11.1%) △4.8%p SG&A 662 773 671 635 670 1,976 +106 Operating Profit 3,117
Slide 19: Summarized Consolidated Balance Sheet
(billion KRW) 3Q21 2Q22 3Q22 QoQ Current Assets 45,706 52,147 53,769 +1,622 Cash & Cash Equivalents 18,567 17,939 20,942 +3,003 Accounts Receivable 10,468 12,394 11,209 △1,185 Inventories 13,810 17,962 17,430 △532 Non-Current Assets 44,429 49,723 51,463 +1,740 Tangible Asset 29,414 30,407 31,289 +88