Posco Holdings Inc. · KRX:005490
Posco — Q4 2024 Earnings Presentation
18 slides from Posco's earnings presentation, Feb 3, 2025
Slide 1: POSCO Holdings 2024 Earnings Release
POSCO Holdings 2024 Earnings Release February 3, 2025
Slide 2: Disclaimer
2 Disclaimer This presentation was prepared and circulated to shareholders and investors to release information regarding the company’s business performance prior to completion of auditing for the period pertaining to the 4th quarter of 2024. Given that this presentation is based on unaudited financ
Slide 3: Contents
Contents 3 Consolidated Business Performance Key Business Activities Business Performance by Key Area I. Steel - POSCO · Production/Sales · Income - Overseas · PT-KP · PZSS · P-Maharashtra · PY-VINA II. Energy Materials - POSCO Future M III. Infrastructure - POSCO International - POSCO E&C Appendix
Slide 4: 2024 Consolidated Performance
2024 Consolidated Performance 4 Earnings declined due to concurrent downturns in both Steel and Energy Materials Income (KRW bil.,%, %p) Financial Structure (KRW bil., %, %p) Revenue Operating Profit OP Margin Ratio YoY Net Debt EBITDA Net Debt Ratio YoY +4.7%p 84,750 18.2% 77,127 72,688 △4,439 13.5
Slide 5: 2024 Consolidated Performance Details of One-time Losses
2024 Consolidated Performance Details of One-time Losses 5 Application of KRW 1.3 tril. non-cash losses, resulting from impairment of low-profit assets and valuation due to market downturn △1,195.9 bil. KRW (Q4 △1,007.7 bil.) △88.2 bil. KRW (Q4 △146.2 bil.) Asset Impairment (Non-operating loss) Inve
Slide 6: Key Business Activities Performance by Business Division in 2024
Key Business Activities Performance by Business Division in 2024 6 Steel Energy Materials Infrastructure Invest in low-carbon steelmaking & New plant commissioning & Continue to drive gas field explore offshore growth markets initial ramp-up operations expansion project 1 HyREX technology developmen
Slide 7: Key Business Activities Energy Materials Business Update
Key Business Activities Energy Materials Business Update 7 Building stability into new plants and rebalancing the portfolio (acquire high-quality assets, downsize less competitive businesses) Focus on stabilizing new operations Rebalance the Energy Materials business 1 Brine lithium (POSCO Argentina
Slide 8: Key Business Activities Portfolio Management
Key Business Activities Portfolio Management 8 Restructuring under-performing projects and non-essential assets to enhance capital efficiency Project Scope 125 projects including 55 under-performing projects and 70 non-core assets 2024 Performance 45 projects completed → Cumulative cash generation o
Slide 9: POSCO
POSCO 9 Production/Sales (KRW bil., %) Income (KRW bil., %) Crude Steel (Kt) Product Sales Volume (Kt) Utilization Rate* YoY Revenue Operating Profit OP Margin YoY % of Premium Plus Products Sold** 5.4% 87.7% 5.3% 86.6% 84.1% △1.1%p 3.9% △1.4%p 42,695 35,682 35,047 △635 38,972 34,219 37,556 △1,416 3
Slide 10: Steel (overseas)
Steel (overseas) 10 PZSS (China) (KRW bil.) PT. Krakatau POSCO (Indonesia) (KRW bil.) Revenue Operating Profit YoY Revenue Operating Profit YoY 4,209 3,130 3,359 △317 3,006 △313 3,042 2,817 285 232 +38 △129 17 △215 △78 △167 2022 2023 2024 2022 2023 2024 POSCO Maharashtra (India) (KRW bil.) PY VINA (
Slide 11: POSCO FUTURE M
POSCO FUTURE M 11 Income (KRW bil., %) Revenue & OP by Segment (KRW bil.) Revenue Operating Profit OP Margin YoY 2022 2023 2024 YoY Revenue 3,302 4,760 3,700 △1,060 5.0% 4,760 Energy Material 1,938 3,362 2,340 △1,022 3,700 3,302 △ 1,060 Base Material 1,364 1,398 1,360 △38 Operating Profit 166 36 1 △
Slide 12: POSCO International
POSCO International 12 Income (KRW bil., %) Revenue & OP by Segment (KRW bil.) Revenue Operating Profit OP Margin YoY 2022 2023 2024 YoY Revenue 37,990 33,133 32,341 △792 3.5% 3.5% - %p 2.4% Energy 1) 1,558 4,084 4,041 △43 37,990 Steel Mtrls,etc. 2) 36,432 29,049 28,300 △749 33,133 △792 32,341 Opera
Slide 13: POSCO E&C
POSCO E&C 13 Income (KRW bil., %) Revenue & OP by Segment (KRW bil.) Revenue Operating Profit OP Margin YoY 2022 2023 2024 YoY Revenue 9,435 10,166 9,469 △697 3.3% Plant 2,629 3,285 2,601 △684 △1.3%p 2.0% Infrastructure 1,349 1,602 1,376 △226 Construction 4,562 5,045 5,189 +144 0.7% Consolidated Acc
Slide 14: Appendix
Appendix 14 Progress on Battery Materials Plant Construction Summarized Income Statement Summarized Balance Sheet Summarized Cash Flow Statement
Slide 15: Progress on Battery Materials Plant Construction
Progress on Battery Materials Plant Construction 15 Material Company Project ~2023 2024 2025~ Phase I, Completion Brine (Aug.) POSCO Argentina Phase II, Evaporation pond Brine Groundbreaking replenishment Completion (up- (Aug.) (‘24.4Q → ‘25.1Q) (3Q) stream) Lithium Phase II, POSCO Brine Groundbreak
Slide 16: Summarized Consolidated Income Statement
Summarized Consolidated Income Statement 16 (KRW bil., %, %p, No of K shares) 2022 2023 2024 YoY Revenue 84,750 77,127 72,688 △4,439 Gross Profit 7,649 6,417 5,413 △1,004 (Gross Margin) 9.0% 8.3% 7.4% △0.9%p SG&A 2,799 2,885 3,239 +354 Operating Profit 4,850 3,531 2,174 △1,358 (Operating Margin) 5.7
Slide 17: Summarized Consolidated Balance Sheet
Summarized Consolidated Balance Sheet 17 (KRW bil.) 2022 2023 2024 YoY Current Assets 47,649 46,212 43,980 △2,257 Cash Balance* 18,739 17,907 14,802 △3,105 Accounts Receivable 9,770 11,015 10,822 △193 Inventories 15,472 13,826 14,143 +317 Non-Current Assets 50,757 54,733 59,395 +4,662 Tangible Asset
Slide 18: Summarized Cash Flow Statement
Summarized Cash Flow Statement 18 (KRW bil.) 2022 2023 2024 Ⅰ. Operating Activities 5,706 7,062 7,078 1. Net Profit 3,560 1,846 948 2. Depreciation and Amortization 3,694 3,845 3,985 3. Changes in Accounts Receivable, Accounts Payable, etc. △1,548 1,371 2,145 Ⅱ. Investing Activities △6,433 △7,732 △8