POSCO Holdings Inc. · KRX:005490
POSCO — FY2021 Earnings Presentation
22 slides from POSCO's earnings presentation, Jan 28, 2022
Slide 1: 2021 Earnings Release
2021 Earnings Release Jan 28, 2022
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 fiscal year 2021. As figures in this presentation are based on unaudited financial sta
Slide 3: Contents
Contents 2021 Earnings Release 2022 Business Plan 2022 Business Outlook Appendix 2021 Earnings Release │ Jan 28, 2022
Slide 4: 2021 Business Performance
2021 Business Performance Parent Business Performance Consolidated Business Performance Financial Structure Subsidiary Performance 2021 Earnings Release │ Jan 28, 2022
Slide 5: Business Performance: Sales/Production (Parent)
Business Performance_Sales/Production(Parent) Sales Production YoY YoY (thousand tons, %) Utilization Rate* 89.7% 88.3% 94.1% +5.8%p (thousand tons) 35,990 +1,186 38,264 +2,329 Sales Volume 35,456 Crude Steel 38,006 34,270 +3.7%p 35,935 59.1 Domestic 35,897 35,801 +1,364 Sales Ratio 55.3 55.4 Produc
Slide 6: Business Performance: Parent
Business Performance_Parent 2021 4Q 2021 (billion KRW) (billion KRW) YoY QoQ 39,920 +13,410 Revenue 11,315 11,528 +213 30,374 16.7% +12.4%p 9,277 26,510 Revenue 20.3% 7,800 6,650 +5,515 17.3% 14.5% △5.8%p OP Margin 8.5% OP Margin 13.8% 2,296 4.3% 1,608 1,673 △623 Operating Operating Profit 2,586 1,0
Slide 7: Business Performance: Consolidated
Business Performance_Consolidated 2021 4Q 2021 (billion KRW) (billion KRW) YoY QoQ 76,332 +18,539 Revenue 20,637 21,334 +697 64,367 12.1% +7.9%p 18,292 Revenue 16,069 15.1% 57,793 OP Margin 9,238 +6,835 12.0% 3,117 11.1% △4.0%p 6.0% OP Margin 9.7% Operating 4.2% 2,368 △749 Operating 2,201 Profit 3,8
Slide 8: Financial Structure
Financial Structure Parent Consolidated 2.2 YoY YoY 3.5 1.3 3.0 Debt/EBITDA Debt/EBITDA* 0.9 △1.3 1.8 △1.7 11,648 +218 Total Debt Cash Balance 11,430 (billion KRW) 21,741 +1,243 (billion KRW) 8,822 8,202 +447 20,442 20,498 7,755 18,156 +1,791 Total Debt Cash Balance 16,365 6,338 (billion KRW) 12,463
Slide 9: Subsidiary Performance: Domestic
Subsidiary Performance_Domestic ※ Domestic performance result based on consolidated POSCO International POSCO E&C • Both revenue and profit improved as steel market upturned • Profit rose as major domestic projects and overseas and peformance of subsidiaries, as motor core for subsidiaries outperfor
Slide 10: Subsidiary Performance: Overseas
Subsidiary Performance_Overseas PT.Krakatau POSCO Zhangjiagang STS (PZSS) • Reached highest profit ever as price went up along with • Profit jumped due to widened WTP sales and low-priced scrap market upturn and swift response toward demand to secure usage, despite power rationing and production con
Slide 11: 2022 Business Plan
2022 Business Plan Steel Market Outlook Major Business Plan - Steel - New Growth 2021 Earnings Release │ Jan 28, 2022
Slide 12: Steel Market Outlook
Steel Market Outlook Market price to hold firm as demand recovers while low carbon trend restrains further supply expansion Expect global growth of 2% supported by economy Price to be adjusted after its surge in 2021 due to stimulus trend Steel slower demand growth, though the adjustment is to -
Slide 13: Major Business Plan: Steel
Major Business Plan_Steel Generate stable profit as sales toward domestic and Conduct feasibility study on projects to secure growth eco-friendly market expands market demand Domestic sales ratio rise by taking shares of imports Indonesia : Review ways to expand up/downstream in PT.KP - Domestic
Slide 14: Major Business Plan: New Growth
Major Business Plan_New Growth Cathode/Anode materials : Expand production capacity Set overseas production platform for clean hydrogen and based on customer partnership secure related upcoming technology 10.5 (10 k tons) (10 k tons) Review investment and conduct F/S for large-scale green/blue 8.2
Slide 15: 2022 Business Outlook
2022 Business Outlook Parent Consolidated 39.8 Revenue 77.2 (trillion KRW) Crude Steel Production 36.5 million tons Product Sales 34.7 million tons 4.9 CAPEX (trillion KRW) 8.9 7.1 Debt 21.4 (trillion KRW) 2021 Earnings Release │ Jan 28, 2022 15
Slide 16: Appendix
Appendix Summarized Financial Statements - Summarized F/S_Parent (IS, BS) - Summarized F/S_Consolidated (IS, BS) Aggregated Business Performance by Sector Earnings Trend 2021 Earnings Release │ Jan 28, 2022
Slide 17: Summarized F/S: Parent Income Statement
Summarized F/S_Parent Income Statement (billion KRW) 2019 2020 2021 YoY Crude Steel Production (thousand tons) 38,006 35,935 38,264 +2,329 Product Sales (thousand tons) 35,990 34,270 35,456 +1,186 STS 1,968 1,819 1,983 +164 Carbon Steel Sales Price (thousand KRW) 722 663 975 +312 Revenue 30,373 26,5
Slide 18: Summarized F/S: Parent Balance Sheet
Summarized F/S_Parent Balance Sheet (billion KRW) 2019 2020 2021 YoY Current Assets 18,216 19,580 25,919 +6,339 Cash Balance* 8,822 11,430 11,648 +218 Accounts Receivable 3,987 3,694 6,018 +2,324 Inventories 4,989 4,094 7,623 +3,529 Current Ratio 546.8% 384.7% 329.4% △55.3%p Non-Current Assets 37,49
Slide 19: Summarized F/S: Consolidated Income Statement
Summarized F/S_Consolidated Income Statement (billion KRW) 2019 2020 2021 YoY Revenue 64,367 57,793 76,332 +18,539 Gross Profit 6,250 4,720 11,881 +7,161 (Gross Margin) (9.7%) (8.2%) (15.6%) +7.4%p SG&A 2,382 2,317 2,643 +326 Operating Profit 3,869 2,403 9,238 +6,835 (Operating Margin) (6.0%) (4.2%)
Slide 20: Summarized F/S: Consolidated Balance Sheet
Summarized F/S_Consolidated Balance Sheet (billion KRW) 2019 2020 2021 YoY Current Assets 34,842 35,831 46,622 +10,791 Cash Balance* 12,463 16,365 18,156 +1,791 Accounts Receivable 9,078 8,121 10,046 +1,925 Inventories 10,920 9,052 15,231 +6,179 Current Ratio 213.4% 212.6% 221.3% +8.7%p Non-Current
Slide 21: Aggregated Business Performance by Sector
Aggregated Business Performance by Sector (billion KRW) Revenue Operating Profit Net Profit 2019 2020 2021 2019 2020 2021 2019 2020 2021 Steel 49,808 43,546 63,549 2,687 1,205 8,365 586 701 6,600 Global Infra. 49,808 44,851 57,402 1,180 1,188 1,303 657 552 751 Trading 37,625 32,996 45,290 654 472 62
Slide 22: Earnings Trend
Earnings Trend Operating profit edged up as profit from all sectors reached record high, Debt to EBITDA improved despite slight debt increase Operating Profit Financial Structure (trillion KRW) (trillion KRW) (%) Parent Consolidated Parent Cash(L) Consolidated Cash(L) Consolidated Liabilities Ratio(