Posco Holdings Inc. · KRX:005490
Posco — Q3 2024 Earnings Presentation
19 slides from Posco's earnings presentation, Oct 30, 2024
Slide 1: POSCO Holdings Q3 2024 Earnings Release
POSCO Holdings Q3 2024 Earnings Release October 30, 2024
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 3rd 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. Infrastructure - POSCO International - POSCO E&C III. Rechargeable Battery Materials - POSCO Futu
Slide 4: Q3 '24 Consolidated Performance
Q3 ’24 Consolidated Performance 4 Delayed recovery in steel and EV battery materials markets leads to OP similar to previous quarter Income (KRW billiion, %) Financial Structure (KRW billiion, %) Revenue OP Margin OP Margin Ratio QoQ Net Debt EBITDA(per quarter) Net Debt Ratio QoQ 9,748 9,807 +59 18
Slide 5: Business Partnership in India: POSCO-JSW MOU
Key Business Activities Business Partnership in India Integrated steel mill in India 5 POSCO-JSW sign MOU to cooperate in Steel/Battery Materials/Energy Businesses MOU • Building a strategic partnership in the fields of steel, battery materials and renewable energy, with the objective to Purpose ach
Slide 6: Upstream business through local partnership to seize growth opportunity
Key Business Activities Business Partnership in India Integrated steel mill in India 6 Upstream business through local partnership to seize growth opportunity Steel Business Strategy: Upstream-focused global expansion and economically-viable net-zero roadmap Market Fragmentaion Global Oversupply Rol
Slide 7: India: Stable profit generation in a fast-growing market
Key Business Activities Business Partnership in India Integrated steel mill in India 7 India: Stable profit generation in a fast-growing market through group synergy High-Growth • Steel demand likely to soar on government policy to expand steel production (190Mt by 2030, CAGR 6.7%) Steel Market - Es
Slide 8: JSW Group: Strategically-aligned JV partner
Key Business Activities Business Partnership in India Integrated steel mill in India 8 JSW Group: Strategically-aligned JV partner to hedge local risks and enter market with speed • No.1 steelmaker in India (27Mt capacity) As India’s No.1 steelmaker, Steel JSW Group is expanding its business to - 4
Slide 9: LiB Materials Business Update
Key Business Activities LiB Materials Business Update 9 POSCO Argentina: Completion of Brine Lithium Phase 1 Plant Construction (Up/Downstream) Lithium Project Status Acquiring Prominent Assets Build Lithium Hydroxide Production Base: 68Kt Explore opportunities to invest in key assets (ex. S. Americ
Slide 10: Portfolio Management
Key Business Activities Portfolio Management 10 Restructure to improve capital efficiency through enhanced portfolio management 55 under-performing projects; 70 non-core assets Project Scope * Five projects added from 2024 Value Day (Jul. ’24): Under-performing projects: 51→55; Non-core assets: 69→7
Slide 11: POSCO
POSCO 11 Production/Sales (KRW billion, %) Income (KRW billion, %) Crude Steel (Kt) Product Sales Volume (Kt) Utilization Rate* QoQ Revenue Operating Profit OP Margin QoQ % of Premium Plus Products Sold** 7.5% 90.8% 90.3% +0.1%p +11.2%p 4.5% 4.6% 79.1% 9,675 9,311 +1,233 9,234 9,277 9,479 +202 8,377
Slide 12: Steel (overseas)
Steel (overseas) 12 PT. Krakatau POSCO (Indonesia) (KRW billion) PZSS (China) (KRW billion) Revenue Operating Profit QoQ Revenue Operating Profit QoQ 763 862 +103 +1 710 800 801 607 51 +14 △7 △13 1 △11 △22 △29 ‘23.Q3 ‘24.Q2 ‘24.Q3 ‘23.Q3 ‘24.Q2 ‘24.Q3 POSCO Maharashtra (India) (KRW billion) PY VINA
Slide 13: POSCO International
POSCO International 13 Income (KRW billion, %) Revenue & OP by Business Division (KRW billion) Revenue Operating Profit OP Margin QoQ ‘23.Q3 ‘24.Q2 ‘24.Q3 QoQ Revenue 8,046 8,282 8,356 +74 4.2% 4.3% +0.1%p 3.9% Energy 1) 922 1,084 1,090 +6 2) Steel Mtrls, etc. 7,124 7,198 7,266 +68 8,282 8,356 +74 8
Slide 14: POSCO E&C
POSCO E&C 14 Income (KRW billion, %) Revenue & OP by Business Division (KRW billion) Revenue Operating Profit OP Margin QoQ Q3 2023 Q2 2024 Q3 2024 QoQ Revenue 2,438 2,588 2,178 △410 2.3% Plant 733 767 513 △254 2.1% +0.4%p Infrastructure 416 375 320 △55 1.7% Construction 1,226 1,454 1,266 △188 2,588
Slide 15: POSCO Future M
POSCO Future M 15 Income (KRW billion, %) Revenue & OP by Business Division (KRW billion) Revenue Operating Profit OP Margin QoQ Q3 2023 Q2 2024 Q3 2024 QoQ 2.9% Revenue 1,286 916 923 +7 Energy Mtrl 953 594 583 △11 1,286 923 +7 Base Mtrl 333 322 340 +18 916 Operating Profit 37 3 1 △2 37 Energy Mtrl
Slide 16: Appendix
Appendix 16 Progress on Battery Materials Plant Construction Summarized Income Statement Summarized Balance Sheet
Slide 17: Progress on Battery Materials Plant Construction
Progress on Battery Materials Plant Construction 17 Material Company Project ~2023 2024 2025~ Phase I, Completion Brine (Aug.) POSCO Argentina Phase II, Evaporation pond Brine Completion replenishment Completion Completion (up- (Aug.) (Q3) stream) (Q4) (Q2) Lithium Phase II, POSCO Brine Completion U
Slide 18: Summarized Consolidated Income Statement
Summarized Consolidated Income Statement 18 (KRW billion) Q3 '23 Q2 '24 Q3 '24 QoQ Revenue 18,961 18,510 18,321 △189 Gross Profit 1,888 1,495 1,507 +12 (Gross Margin) (10.0%) (8.1%) (8.2%) +0.1%p SG&A 691 743 763 +20 Operating Profit 1,196 752 743 △9 (Operating Margin) (6.3%) (4.1%) (4.1%) - Profit
Slide 19: Summarized Consolidated Balance Sheet
Summarized Consolidated Balance Sheet 19 (KRW billion) Q3 ‘23 Q2 ‘24 Q3 ’24 QoQ Current Assets 48,636 47,182 44,199 △2,983 Cash Balance* 19,694 18,911 16,104 △2,807 Accounts Receivable 11,521 11,405 10,873 △532 Inventories 14,154 13,486 13,699 +213 Non-Current Assets 54,384 58,105 58,103 △2 Tangible