Financial Performance - Consolidated revenue for 2024 is projected at KRW 72,688,143 million, a decrease of 5.6% from KRW 77,127,197 million in 2023[5] - Consolidated operating income for 2024 is expected to be KRW 2,173,573 million, down 38.4% from KRW 3,531,423 million in the previous year[5] - Consolidated net income for 2024 is forecasted at KRW 947,580 million, a decline of 48.7% compared to KRW 1,845,850 million in 2023[5] - Total assets increased to KRW 103,404,199 million in 2024, up from KRW 100,945,394 million in 2023, reflecting a growth of 2.4%[5] Corporate Governance - The company maintains a 100% compliance rate with key corporate governance indicators[6] - The Board of Directors consists of 10 members, with 6 being outside directors, ensuring independent oversight[16] - In 2024, the Board held 10 meetings and its Special Committees convened 29 times to support decision-making on key management issues[18] - The company has adopted a new governance framework to enhance transparency in CEO succession processes, approved in December 2023[7] Shareholder Engagement - POSCO Holdings has provided e-voting at all regular AGMs since March 2019, facilitating shareholder participation[7] - The company held two AGMs during the reporting period, with full compliance in notifying shareholders through multiple channels including KRX and SEC systems[23] - The company has committed to providing shareholders with sufficient information 28 days in advance of AGMs[27] - The company has encouraged proxy voting and conducted AGMs outside peak dates to enhance shareholder convenience[29] Shareholder Returns - A new three-year shareholder return policy was announced, targeting a basic dividend of KRW 10,000 per share, funded by 50-60% of annual free cash flow[53] - The company paid cash dividends totaling KRW 2.82 trillion during the mid-term dividend policy period (2020-2022), achieving a consolidated dividend payout ratio of 24.8%[52] - In July 2024, the company announced a share buyback policy to repurchase and cancel 6% of outstanding shares over three years, along with a KRW 100 billion treasury share purchase[55] - Cash dividends for 2024 are set at KRW 757.5 billion, with a payout ratio of 69.2%[74] Investor Relations - The company has enhanced communication with shareholders through various channels, including a YouTube channel for retail investors, featuring 199 videos and 31 million views as of May 2025[94] - The company has implemented a system for investors to request IR meetings and actively engages in various IR activities to reflect investor interests[92] - The company will hold a conference call on January 31, 2024, to release its 2023 earnings and conduct a Q&A session with institutional investors and analysts[96] - The company has established a dedicated IR team to handle inquiries from foreign shareholders, ensuring effective communication and support[102] Risk Management - The company has a risk management system in place to monitor and respond to risks, reporting results to the Board of Directors[177] - The company has established a comprehensive risk management policy, integrating business risks related to management strategy, new business development, global M&A, and ESG into a single function within the Management Strategy Office[181] - The internal accounting management system has been in place since early 2001 and is subject to annual audits by external auditors, ensuring compliance with the Sarbanes-Oxley Act[187] - The company conducts quarterly reviews of its consolidated financial statements and internal accounting management system to strengthen financial risk controls[179] Leadership and Management - The CEO and Representative Director, Chang In Hwa, has served for 14 months and is set to continue until March 21, 2027[200] - Lee Ju Tae, Head of Corporate Strategy Division, has a term of 2 months remaining until March 20, 2026[200] - The Corporate Strategy Division is expected to play a crucial role in future business planning and investment strategies[200] - The company is committed to strategic planning and investment to drive future growth[200]

Group 1 - POSCO Future M has signed a memorandum of understanding with CNGR and FINO to expand its precursor production agreement into the lithium-iron-phosphate (LFP) cathode material business, focusing on constructing LFP production facilities and promoting their use in Energy Storage Systems (ESS) [1][7] - The global ESS market is predominantly composed of LFP batteries, which accounted for 80% of the market in 2023, due to their cost-effectiveness and longer lifespan compared to ternary batteries like nickel-cobalt-manganese (NCM) [2][7] - POSCO is diversifying its product portfolio beyond high-nickel NCMA and NCA batteries, developing lithium-manganese-rich (LMR) materials for entry-level electric vehicles (EVs) and conducting R&D on high-density LFP cathode materials to enhance energy performance and supply-chain competitiveness [3][7] Group 2 - PKX stock has experienced a decline of 14.3% over the past year, which is slightly better than the industry's decline of 17.4% [5] - PKX currently holds a Zacks Rank of 2 (Buy), indicating a favorable outlook compared to other stocks in the Basic Materials sector [6]

Core Viewpoint - Centrus Energy has signed a Memorandum of Understanding (MOU) with Korea Hydro & Nuclear Power (KHNP) and POSCO International to explore investments for expanding its uranium enrichment plant in Piketon, Ohio, reflecting strong market demand for U.S.-owned uranium enrichment capabilities [1][2] Group 1: Agreement and Supply Expansion - The MOU aims to facilitate private sector capital for the potential expansion of Centrus' enrichment capacity in Ohio and includes an agreement to increase the supply volume of Low-Enriched Uranium (LEU) under a previous contract signed in February 2025 [1][4] - The entire supply commitment, including expanded volumes, is contingent upon Centrus receiving necessary federal funding to build new LEU production capacity [2][3] Group 2: Market Context and Competition - Centrus is competing for funding from the U.S. Department of Energy to expand U.S. enrichment capacity, which is crucial for achieving economies of scale and competing against foreign state-owned enterprises that dominate the global uranium enrichment market [3][4] - Korea is identified as a significant potential export market for U.S. enriched uranium, with KHNP being the world's third-largest nuclear plant operator, currently operating 26 reactors and constructing four more [5] Group 3: Company Background and Capabilities - Centrus Energy is a trusted supplier of nuclear fuel and services, having provided over 1,850 reactor years of fuel since 1998, equivalent to more than 7 billion tons of coal [6] - The company is pioneering the production of High-Assay, Low-Enriched Uranium and is focused on restoring America's uranium enrichment capabilities to meet clean energy and national security needs [7]

Group 1 - POSCO has signed a non-binding Heads of Agreement with JSW Steel to explore the establishment of a 6 million tons per annum integrated steel plant in India, combining POSCO's advanced technology with JSW's market presence [1][8] - The agreement outlines a proposed 50:50 joint venture, with a detailed feasibility study to determine the plant's location, investment structure, and resource requirements, with Odisha being a preferred site [2][8] - The partnership aims to align with India's self-reliance vision and create a globally competitive manufacturing hub for both domestic and export markets [3][8] Group 2 - PKX stock has experienced a decline of 15.7% over the past year, compared to the industry's decline of 19.2% [5] - PKX currently holds a Zacks Rank of 2 (Buy), indicating a favorable outlook among analysts [6] - Other top-ranked stocks in the Basic Materials sector include Nutrien Ltd., Carpenter Technology Corporation, and CF Industries Holdings, with varying degrees of performance and earnings estimates [6][7][9][10]

Group 1 - Compass Minerals (CMP) has significantly outperformed its peers in the Basic Materials sector, returning approximately 77.2% year-to-date compared to the sector average of 8.8% [4] - The Zacks Rank for Compass Minerals is currently 2 (Buy), indicating a positive outlook based on earnings estimates and revisions, with a 25% increase in the consensus estimate for full-year earnings over the past quarter [3] - Compass Minerals is part of the Chemical - Diversified industry, which has seen an average loss of 16.8% this year, further highlighting CMP's strong performance relative to its industry [5] Group 2 - The Basic Materials sector includes 238 individual stocks and holds a Zacks Sector Rank of 12 among 16 sector groups, indicating a relatively lower performance compared to other sectors [2] - Posco (PKX), another stock in the Basic Materials sector, has also outperformed with a year-to-date return of 26%, and it currently holds a Zacks Rank of 2 (Buy) [4][5] - The Steel - Producers industry, to which Posco belongs, has a year-to-date gain of 18.4%, ranking 208 among industries, which is lower than the performance of Compass Minerals [6]

Financial Data and Key Metrics Changes - Consolidated revenue for Q2 2025 reached KRW 17.6 trillion, with an operating profit of KRW 610 billion, marking growth for two consecutive quarters [3][9] - Operating profit margin improved from 3.9% to 5.7%, with EBITDA recorded at KRW 1.6 trillion [4][10] - Net debt decreased slightly quarter on quarter due to effective investment and working capital management [9] Business Line Data and Key Metrics Changes - Steel operating margin increased by 35.6% to KRW 610 billion, with improvements noted in both domestic and overseas steel operations [10][12] - The rechargeable battery materials segment faced increased deficits due to initial operational costs and falling lithium prices, although future losses are not expected to increase [7][10] - POSCO International showed robust performance, while POSCO E&C's overseas projects incurred additional costs leading to marginal decreases [10][22] Market Data and Key Metrics Changes - The domestic market showed moderate improvements contributing to mill margin growth, while overseas steel operations in Indonesia and Vietnam diversified sales channels [4][13] - The lithium market is seen as opportune, with a significant joint investment in Argentina expected to generate synergies [8][10] Company Strategy and Development Direction - POSCO is committed to ongoing efficiency improvements and restructuring of non-core assets, aiming to generate KRW 1 trillion in cash flow [11][12] - The company is focusing on high-value added steel products and has initiated projects for advanced technologies like HiRX, which is designated as a national strategic technology [16][17] - Future investments are planned in high-growth markets such as the U.S. and India, with a focus on premium products [80][81] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about sustaining profit levels into Q3 despite global tariff uncertainties [5][6] - The potential decrease in Chinese steel production is expected to positively impact POSCO's profits in the second half of the year [27] - The company anticipates that lithium prices will rebound, contributing to improved profitability in the rechargeable battery materials segment [36][67] Other Important Information - The sale of the POSCO Changjiegang Stainless Steel subsidiary is underway due to ongoing deficits from oversupply and local government policies in China [6][10] - The company is actively pursuing customer certifications and commercial production in its lithium business, with significant investments in new plants [7][21] Q&A Session All Questions and Answers Question: Steel market outlook and price negotiations - Management noted that while there are expectations of decreased production in China, domestic demand has increased, which is expected to positively impact profits [26][27] - Price negotiations in the automotive and shipbuilding industries are ongoing, with optimism about maintaining favorable terms despite raw material fluctuations [28][30] Question: Update on Indian joint venture and potential acquisitions - Discussions regarding the Indian joint venture are progressing, with environmental feasibility studies ongoing [31][32] - The potential acquisition of the Waiala steelmaker is under review, focusing on mining opportunities and renewable energy [33][34] Question: Lithium market developments - Management believes lithium prices will not fall below $8, with expectations of gradual increases in the coming years [36][67] Question: U.S. and European market strategies - The company plans to adapt to the U.S. market despite tariffs, with a focus on maintaining competitive pricing and exploring other regions [39][44] - In the European market, management anticipates limited volume increases due to quota restrictions but aims to keep prices competitive [46][47] Question: PZSS sale and product deficits - The sale of PZSS is progressing, with final details being negotiated, and management expects to cover losses through divestments [51][52] - Currently, there are hardly any steel products recording deficits due to restructuring efforts [55] Question: Lithium certification progress and safety incidents - Certification for lithium products is ongoing, with three customers already certified [59] - The impact of a safety incident in E&C is still being assessed, with potential effects expected in Q4 [61][62]

Financial Data and Key Metrics Changes - Consolidated revenue for Q2 2025 reached KRW 17.6 trillion, with an operating profit of KRW 610 billion, marking growth for two consecutive quarters [3][9] - Operating profit margin improved from 3.9% to 5.7%, indicating a recovery in profitability [10][12] - EBITDA for the quarter was KRW 1.6 trillion, and cumulative CapEx for the first half was KRW 3.1 trillion [9][10] - Net debt decreased slightly quarter on quarter due to effective investment and working capital management [9] Business Line Data and Key Metrics Changes - Steel segment operating margin increased by 35.6% to KRW 610 billion, driven by improved mill margins from lower raw material costs [10][12] - The rechargeable battery materials segment faced increased deficits due to falling lithium prices and initial operational costs from new plants [10][22] - POSCO International showed robust performance in infrastructure, although overseas projects incurred additional costs leading to marginal decreases [10][12] Market Data and Key Metrics Changes - Domestic market improvements contributed to the growth in mill margins, while overseas steel sales also increased quarter on quarter [4][10] - The lithium market is seen as opportune, with a recent joint investment in Argentina expected to generate significant synergies [8][10] Company Strategy and Development Direction - The company is focused on restructuring non-core assets and improving operational efficiency through AI and robotics [14][15] - Ongoing projects include the development of high-value-added steel products and the HiRX technology for long-term strategic growth [16][17] - The company is exploring opportunities in high-growth markets such as the U.S. and India, with plans for local production plants [84][85] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about sustaining profit levels into Q3 despite global tariff uncertainties [5][10] - The company is monitoring the potential decrease in Chinese steel production, which could positively impact profits in the second half [28][29] - Future profitability in the lithium segment is contingent on market conditions and cost management [70][71] Other Important Information - The sale of the POSCO Changjiegang Stainless Steel subsidiary is underway, which will be removed from consolidated accounts upon completion [6][12] - The company is committed to ongoing restructuring efforts, aiming to generate KRW 1 trillion in cash flow [11][12] Q&A Session Summary Question: Steel market outlook and price negotiations - Management noted that while there are expectations of decreased production in China, domestic demand is increasing, which could positively impact profits [28][29] - Price negotiations in the automotive and shipbuilding sectors are ongoing, with expectations of slight upward adjustments due to anti-dumping tariffs [32][33] Question: Update on Indian joint venture and potential acquisitions - Discussions regarding the Indian joint venture are progressing, with environmental feasibility studies ongoing [34][35] - The company is exploring the acquisition of the Waiala steelmaker, focusing on mining opportunities and renewable energy [36][37] Question: Lithium market developments - Management anticipates a rebound in lithium prices, with expectations that prices will not fall below $8 [39][40] Question: Sales projections for U.S. and European markets - The company expects to maintain a small profit margin despite tariffs, with plans to explore other regions for sales [46][47] - The impact of anti-dumping tariffs on pricing strategies is being assessed, with a focus on maintaining competitiveness [48][49] Question: PZSS sale and product deficits - The sale of PZSS is progressing, with final details being negotiated, and management expects to cover losses through divestments [55][56] - Currently, there are few products recording deficits due to operational adjustments and facility shutdowns [58] Question: CapEx investment plans and potential losses - The CapEx investment plan remains unchanged, with no significant changes expected in the near term [77][78] - The company is confident in covering any potential EBITDA deficits through divestments and operational efficiencies [80][81]

POSCO Holdings 2025. Q2 Earnings Release July 31, 2025 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 2nd quarter of 2025. Given that this presentation is based on unaudited financial statements, certain figures may be modified in the course of the audit process. This presentation contains certain forward-looking statements relating to t ...

Core Insights - POSCO Future M has signed an agreement with a Japanese battery company to supply natural graphite anode materials for electric vehicle batteries, produced at its Sejong plant [1][6] - This partnership is part of POSCO's strategy to expand its global market presence and diversify its customer base, although specific details about the partner and scale of the agreement remain undisclosed [2][6] - The company is focused on establishing a comprehensive supply chain from raw materials to production, responding to supply chain diversification and trade regulations in the US and EU [3][6] Company Performance - Over the past year, PKX stock has decreased by 7.7%, while the industry has seen a decline of 21.4% [3] - POSCO Future M is actively working on commercializing silicon anode materials and enhancing its technological capabilities to improve competitiveness in the market [2][3]

Core Insights - POSCO's unit POSCO E&C has secured a KRW 1.5 trillion contract for the Gulf MTP LNG Terminal project in Thailand, enhancing its position in the global LNG sector [1][7] - The project involves constructing two 250,000 cubic meter LNG storage tanks, unloading facilities, and regasification systems with a capacity to process 8 million tons of LNG annually [1][7] - This terminal marks Thailand's first LNG terminal developed through a public-private partnership, led by Gulf Development and PTT Tank Terminal [2] Company Performance - POSCO E&C has a strong track record in Thailand, having executed over 20 projects since 2002, which distinguishes the company in the local construction industry [3] - The recent contract was won amid competition from major global firms from Japan, China, and Lebanon, highlighting POSCO E&C's extensive experience in LNG terminal projects [4] - In the past year, shares of POSCO (PKX) have decreased by 19.8%, while the industry as a whole has seen a decline of 25% [4]