Posco Holdings Inc. · KRX:005490
Posco — Q2 2024 Earnings Presentation
17 slides from Posco's earnings presentation, Jul 25, 2024
Slide 1: POSCO Holdings Q2 2024 Earnings Release
POSCO Holdings Q2 2024 Earnings Release July 25, 2024
Slide 2: Disclaimer
Disclaimer 2 / 17 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 2nd quarter of 2024. Given that this presentation is based on unaudited f
Slide 3: Contents
Contents 3 / 17 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. Infrastructure - POSCO International - POSCO E&C III. Rechargeable Battery Materials - POSCO
Slide 4: Consolidated Business Performance
Consolidated Business Performance 4 / 17 Revenue and operating profit improved QoQ on enhanced Steel/Infrastructure performance Income Financial Structure QoQ QoQ (KRW billion, %) (KRW billion, %) 30.0% 20.0% 12, 000 25, 000 9,863 9,748 25.0% 20,121 15.0% △115 Revenue 10, 000 20, 000 18,052 18,510 +
Slide 5: Key Business Activities: HyREX Development
Key Business Activities_HyREX Development 5 / 17 Economically viable Green Transformation: Technology roadmap aligned to government R&D project Jan. '24 Mar. '24 Apr. '24 May '24 · Designated National · Selected as pre-feasibility · Selected as a Global R&D Strategic Technology (NST) study subject b
Slide 6: Key Business Activities: Li/Ni Production Update
Key Business Activities_Li/Ni Production Update 6 / 17 · Plant1 (21.5Kt) : Completed in Nov. ’23, reached the highest daily plant operation rate at 76% in Jun., full operation target in Feb. ’25 · Plant 2 (21.5Kt) : Completed in Sept. ’24, full operation target in Sept. ‘25 · Phase 1 (25Kt) : Test-r
Slide 7: Key Business Activities: NG Upstream Expansion
Key Business Activities_NG Upstream Expansion 7 / 17 ‘24.Q3 1,200 1,100 Annual NG output (Kt) Atlas gas delivery pipe 1,129 /Romanos gas 1Mtpa 1,000 processing facility begin ‘24.Q1 Production construction 900 800 Begin 727 System (‘26~) Construction of Atlas ‘25.Q4 700 POSCO INT’L Key Competence in
Slide 8: Key Business Activities: ESG
Key Business Activities_ESG 8 / 17 Climate Report2) published at group level Transparent controversies disclosure Broader ESG data consolidation - Analysis on physical & transition risks - Includes progress & prospects - 10 Korean & 5 overseas Group entities Korea Institute of Corporate Governance a
Slide 9: POSCO
POSCO 9 / 17 Production/Sales Income (KRWbillion, %) QoQ (KRWbillion, %) QoQ 87.3% 85.6% 12, 000 8.2% 10. 0% Utilization OP Margin 12, 000 79.1% Rate* 11, 500 8.0 % 80. 00% △6.5%p 4.5% +1.4%p 11, 000 11, 000 6.0 % 90% Revenue 10,298 3.1% 70. 00% 40, 000 10, 500 10, 000 4.0 % 80% 60. 00% Crude steel
Slide 10: Steel (overseas)
Steel (overseas) 10 / 17 PT. Krakatau POSCO PZSS (KRW billion) QoQ (KRW billion) 850 800 QoQ Revenue 812 750 800 715 1 800 1 Revenue 0.9 +85 700 606 △144 0.9 0.8 700 0.8 0.7 600 600 0.7 0.6 0.6 500 500 0.5 0.5 77 400 0.4 0.4 OP 400 0.3 △17 0.3 4 300 △13 OP △34 △24 △22 +2 0.2 0.2 300 200 0.1 0.1 100
Slide 11: POSCO International
POSCO International 11 / 17 【Revenue & OP by Business Division】 (KRW billion) Income Q2 '23 Q1 '24 Q2 '24 QoQ (KRW billion) QoQ 4.2% Revenue 8,871 7,761 8,282 +521 4.0% 450 .00% OP Margin +0.8%p Energy 1) 932 966 1,084 +118 13, 500 400 .00% 3.4% Ratio 350 .00% 11, 500 300 .00% Steel mtrls, etc.2) 7,
Slide 12: POSCO E&C
POSCO E&C 12 / 17 【Revenue & OP by Business Division】 (KRW billion) Income Q2 '23 Q1 '24 Q2 '24 QoQ (KRW billion) QoQ Revenue 2,591 2,453 2,588 +135 400 .00% 2.2% +0.3%p Plant 873 854 765 △89 OP Margin 13, 500 1.7% Infrastructure 402 326 377 +51 350 .00% Ratio 1.4% Construction 1,263 1,278 1,374 +96
Slide 13: POSCO Future M
POSCO Future M 13 / 17 【Revenue & OP by Business Division】 (KRW billion) Income Q2 '23 Q1 '24 Q2 '24 QoQ (KRW billion) QoQ Revenue 1,193 1,138 915 △223 4.4% 500 .00% OP Margin 13, 500 450 .00% △3.0%p Ratio 3.3% 400 .00% Energy Mtrl 843 782 593 △189 11, 500 1,193 350 .00% Revenue 9,5 00 1,138 300 .00
Slide 14: Appendix
Appendix 14 / 17 Progress on Battery Materials Plant Construction Summarized Income Statement Summarized Balance Sheet
Slide 15: Progress on Battery Materials Plant Construction
Progress on Battery Materials Plant Construction 15 / 17 Material Company Project ~'23. '24 '25~ Hot Test Phase I Completion Completion of Brine (Q2) (Jul.) P- Argentina Phase II Construction Evaporation fond Completion of Brine commenced (Jun.) replenishment (Q3) (Q2) (UP) Lithium Construction Util
Slide 16: Summarized Consolidated Income Statement
Summarized Consolidated Income Statement 16 / 17 (KRW billion) Q2 ‘23 Q1 ‘24 Q2 ’24 QoQ Revenue 20,121 18,052 18,510 +458 Gross Profit 2,034 1,329 1,495 +166 (Gross Margin) (10.1%) (7.4%) (8.1%) (+0.7%p) SG&A 708 746 743 △3 Operating Profit 1,326 583 752 +169 (Operating Margin) (6.6%) (3.2%) (4.1%)
Slide 17: Summarized Consolidated Balance Sheet
Summarized Consolidated Balance Sheet 17 / 17 (KRW billion) Q2 ‘23 Q1 ‘24 Q2 ’24 QoQ Current Assets 50,009 46,799 47,211 412 Cash Balance* 19,704 17,883 18,911 1,028 Accounts Receivable 11,498 11,675 11,405 △270 Inventories 15,028 13,975 13,486 △489 Non-Current Assets 53,070 56,497 58,093 1,626 Tang