Revenue Performance - The Steel Segment generated revenue of ₩40,393 billion in 2023, accounting for 52.4% of total revenue, a decrease from ₩44,547 billion in 2022[119] - The Green Materials and Energy Segment's revenue increased to ₩3,816 billion in 2023, representing 5.0% of total revenue, up from ₩2,452 billion in 2022[119] - Revenue decreased by 9.3%, or ₩7,947 billion, from ₩85,004 billion in 2022 to ₩77,057 billion in 2023[272] - Total revenue from the Trading Segment of the Green Infrastructure Business decreased by 19.3%, or ₩10,252 billion, from ₩53,196 billion in 2022 to ₩42,944 billion in 2023[277] - External revenue from the Green Materials and Energy Segment surged by 55.6%, amounting to Won 3,816 billion in 2023, primarily due to increased sales of anode and cathode materials for electric batteries[283] - Total revenue from the Green Materials and Energy Segment, including internal transactions, rose by 42.3% to Won 4,822 billion, with internal revenue increasing by 7.4%[284] Production and Capacity - The company produced approximately 39.9 million tons of crude steel and stainless steel in 2023, with a production capacity of 45.3 million tons[130] - POSCO (Zhangjiagang) had an annual production capacity of 1,100 thousand tons of stainless steel products[178] - PT. Krakatau POSCO had an annual production capacity of 3,000 thousand tons of slabs, plates, and hot rolled coils in 2023[178] - POSCO YAMATO VINA had an annual production capacity of 550 thousand tons of shape steel products in 2023[178] - The annual production capacity of the lithium hydroxide plant upon completion of both stages is projected to be 25,000 tons, while the lithium carbonate capacity is expected to be 23,000 tons[209] Market Share and Sales - POSCO had a domestic market share for hot rolled products of approximately 52% in 2023[141] - POSCO's domestic market share for stainless steel products was approximately 46% in 2023[144] - The Steel Segment's export sales constituted 60.4% of total revenue in 2023, with major markets in Asia, China, and Japan[132] - The largest export market in 2023 was Asia (excluding China and Japan), accounting for 24.6% of export revenue from steel products[159] - Exports to China decreased by 20.5% from Won 8,625 billion in 2022 to Won 6,859 billion in 2023 due to decreased demand from the construction industry[160] Financial Performance - Operating profit fell by 36.9%, from ₩4,342 billion in 2022 to ₩2,738 billion in 2023[267] - Net profit decreased by 48.5%, from ₩3,586 billion in 2022 to ₩1,846 billion in 2023[267] - Gross profit decreased by 16.5% to Won 6,417 billion in 2023, with gross margin declining from 9.0% in 2022 to 8.3%[290] - Finance income decreased by 20.8%, from ₩4,834 billion in 2022 to ₩3,831 billion in 2023[267] - Income tax expense increased by 71.0%, from ₩462 billion in 2022 to ₩789 billion in 2023[267] Cost and Pricing - Cost of sales as a percentage of net sales increased from 84.4% in 2021 to 91.7% in 2023, leading to a decline in gross margin from 15.6% to 8.3%[254] - The weighted average unit price for principal steel products increased by 17.2% from 2021 to 2022, but decreased by 11.3% from 2022 to 2023 due to declining global demand[246][248] - The unit sales price of stainless steel products decreased by 13.4% in 2023 compared to 2022, while the unit sales price of plates decreased by 13.7% in the same period[249] - The average unit sales price for cold rolled products decreased from 1,254 thousand Won per ton in 2022 to 1,218 thousand Won per ton in 2023[252] Sustainability and Future Plans - The company aims for a 30% reduction in carbon emissions by 2035, 50% by 2040, and net zero emissions by 2050 as part of its sustainability strategy[123] - The construction of the lithium hydroxide commercialization plant in Argentina is expected to be completed by April 2024, with a total cost of ₩1,301 billion and remaining costs of ₩219 billion as of December 31, 2023[209] - The company is actively exploring diversification opportunities in promising business areas through its Others Segment[120] - The company continues to explore diversification opportunities in promising business areas to secure new growth engines[239] Operational Efficiency - The capacity utilization rate improved from 72.2% in 2022 to 75.5% in 2023, although it was significantly lower than the 104.9% achieved in 2021[236] - The company has implemented cost reduction measures, including enhancing product designs and improving productivity, to address declining profit margins[255] - Other operating expenses decreased by 19.5%, from ￦1,124 billion in 2022 to ￦904 billion in 2023, primarily due to decreases in impairment loss on intangible assets and loss on valuation of firm commitment[301] Challenges and Losses - The loss on disposal of assets held for sale increased significantly by 2,475% from ￦4 billion in 2022 to ￦103 billion in 2023, primarily due to the disposal of CSP — Compania Siderurgica do Pecem[302] - Impairment loss on other receivables rose dramatically by Won 274 billion, from Won 10 billion in 2022 to Won 284 billion in 2023[295] - Share of profit from equity-accounted investees decreased by 60.1%, from ￦676 billion in 2022 to ￦270 billion in 2023[303]

E x h i b i t 9 9 . 1 P O S C O H O L D I N G S I N C . a n d S u b s i d i a r i e s C o n s o l i d a t e d F i n a n c i a l S t a t e m e n t s D e c e m b e r 3 1 , 2 0 2 3 a n d 2 0 2 2 ( W i t h I n d e p e n d e n t A u d i t o r s ' R e p o r t T h e r e o n ) Table of Contents Ta b l e o f C o n t e n t s Opinion We have audited the consolidated financial statements of POSCO HOLDINGS INC. and its subsidiaries (the "Company"), which comprise the consolidated statements of financial position as of D ...

POSCO Holdings Inc. (NYSE:PKX) Q3 2023 Earnings Call Transcript October 24, 2023 2:00 AM ET The secondary battery materials business is now in its initial phase, as production facilities are being completed. At this stage, what is crucial is consistent and ongoing investment based on a long-term strategy. With regards to the market changes such as IRA, emergency, LFP battery and changes in the price of materials, we will be closely monitoring and partially supplementing the strategy if necessary and when th ...

POSCO Holdings Inc. (NYSE:PKX) Q2 2023 Earnings Conference Call July 23, 2023 10:00 PM ET Company Participants Jeong Ki-Seop - President, Co-CEO, CSO Han Young-Ah - Head of Investor Relations Lee Kyung-seop - Chief of LiB Materials Business Kim Seung-Jun - Head of Finance Team Jeong Dae-Hyung - Head of Corporate Strategy Team Conference Call Participants Yi Hyun-soo - Yuanta Securities Kim Sang-hoon - HI Investment & Securities Lee Eu-gene - Eugene Investment & Securities Sean Jou - Marshall Wace Jeong Ki ...

POSCO Holdings Inc. (NYSE:PKX) Q1 2023 Earnings Conference Call April 27, 2023 3:00 AM ET Company Participants Jeong Ki-Seop - President, Co-CEO, CSO Han Young-Ah - Head of Investor Relations Eom Gichen - Head of marketing strategy Kyungsub Lee - Chief of LiB Materials Business Kyung-Jin Chung - Executive Officer and Head of Finance Office Chon, Jung-Son - Head of Corporate Strategy Kyung-han Kim - Head of the International Trade Affairs Office Conference Call Participants Pat Canon - Hyundai Motor Securiti ...

Part I [Item 3. Key Information](index=5&type=section&id=Item%203.%20Key%20Information) This section details significant economic, competitive, operational, and geopolitical risks impacting the company's business and financial performance - The company's business is highly sensitive to the global economic cycle, with fluctuating demand and production levels influenced by economic slowdowns, rising interest rates, and geopolitical conflicts[12](index=12&type=chunk)[14](index=14&type=chunk) Financial Performance (2021 vs 2022) | Metric | 2021 (Billion Won) | 2022 (Billion Won) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 76,009 | 85,004 | +11.8% | | Profit | 7,176 | 3,586 | -50.0% | - The company faces intense competition across its segments, including price pressure in steel from Chinese overcapacity and rivalry from major trading and construction firms[17](index=17&type=chunk)[23](index=23&type=chunk)[25](index=25&type=chunk) - Korea is the company's most important market, accounting for **40.7% of 2022 revenue**, making performance highly dependent on the Korean economy and geopolitical stability[31](index=31&type=chunk)[101](index=101&type=chunk) - Heavy reliance on imported raw materials like iron ore and coal exposes the company to significant price volatility, with coal prices increasing from **US$226/ton in 2021 to US$364/ton in 2022**[43](index=43&type=chunk)[44](index=44&type=chunk) - Natural disasters, such as Typhoon Hinnamnor in September 2022, caused significant operational disruptions and expenses, including **Won 790 billion in unallocated overheads** and **Won 380 billion in restoration costs**[45](index=45&type=chunk)[47](index=47&type=chunk) - As a holding company, POSCO HOLDINGS INC. relies on subsidiary dividends for operations and its own dividend payments, subject to their financial performance and legal requirements[75](index=75&type=chunk)[78](index=78&type=chunk) [Item 4. Information on the Company](index=28&type=section&id=Item%204.%20Information%20on%20the%20Company) This section provides an overview of POSCO HOLDINGS INC.'s history, corporate structure, and diverse business operations across six segments [History and Development of the Company](index=28&type=section&id=Item%204.A.%20History%20and%20Development%20of%20the%20Company) Established in 1968, the company privatized by 2000 and transitioned to POSCO HOLDINGS INC., a holding company, in March 2022 - On **March 2, 2022**, the company transitioned to POSCO HOLDINGS INC., a holding company, after spinning off its domestic steel business into a wholly-owned subsidiary, POSCO[120](index=120&type=chunk)[122](index=122&type=chunk) [Business Overview](index=29&type=section&id=Item%204.B.%20Business%20Overview) The company's operations are structured into six segments, with Steel as the largest, contributing **52.4% of 2022 revenue**, alongside growing Green Infrastructure and Materials businesses Revenue by Segment (2022) | Segment | Revenue (Billion Won) | % of Total | | :--- | :--- | :--- | | Steel Segment | 44,547 | 52.4% | | Green Infrastructure - Trading | 25,955 | 30.5% | | Green Infrastructure - Construction | 7,668 | 9.0% | | Green Infrastructure - Energy and Other | 3,999 | 4.7% | | Green Materials and Energy Segment | 2,452 | 2.9% | | Others Segment | 129 | 0.2% | | **Total** | **85,004** | **100.0%** | [Organizational Structure](index=44&type=section&id=Item%204.C.%20Organizational%20Structure) As a holding company, POSCO HOLDINGS INC. oversees key subsidiaries including POSCO (100%), POSCO International (62.9%), and POSCO Future M (59.8%) Significant Subsidiaries and Ownership (as of Dec 31, 2022) | Name | Jurisdiction | Ownership % | | :--- | :--- | :--- | | POSCO | Korea | 100.0% | | POSCO International Corporation | Korea | 62.9% | | POSCO Engineering & Construction Co., Ltd | Korea | 52.8% | | POSCO DX Co, Ltd. | Korea | 65.4% | | POSCO Future M Co., Ltd. | Korea | 59.8% | | POSCO (Zhangjiagang) Stainless Steel Co., Ltd. | China | 82.5% | [Property, Plants and Equipment](index=44&type=section&id=Item%204.D.%20Property%2C%20Plants%20and%20Equipment) The company's principal steel production facilities in Korea and overseas saw a decrease in aggregate capacity utilization to **84.1% in 2022** Capacity Utilization Rates of Major Steel Facilities | Facility | 2021 Rate | 2022 Rate | | :--- | :--- | :--- | | Pohang & Gwangyang Works (Korea) | 94.1% | 84.1% | | PT. Krakatau POSCO (Indonesia) | 104.5% | 101.0% | | POSCO (Zhangjiagang) (China) | 89.9% | 99.6% | | POSCO YAMATO VINA (Vietnam) | 104.9% | 72.2% | [Item 5. Operating and Financial Review and Prospects](index=47&type=section&id=Item%205.%20Operating%20and%20Financial%20Review%20and%20Prospects) This section analyzes 2022 financial performance, highlighting a **50.5% decrease in operating profit** despite revenue growth, and discusses liquidity, capital resources, and R&D efforts [Operating Results](index=47&type=section&id=Item%205.A.%20Operating%20Results) In 2022, revenue grew **11.8% to Won 85.0 trillion**, but surging raw material costs led to a **50.5% drop in operating profit** to **Won 4.3 trillion** Consolidated Statement of Comprehensive Income Summary (2021 vs 2022) | Item (in billions of Won) | 2021 | 2022 | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 76,009 | 85,004 | 11.8% | | Cost of sales | 64,154 | 77,321 | 20.5% | | Gross profit | 11,855 | 7,682 | (35.2)% | | Operating profit | 8,775 | 4,342 | (50.5)% | | Profit | 7,176 | 3,586 | (50.0)% | - The Steel Segment's external revenue grew **8.4% to Won 44.5 trillion** in 2022, driven by a **17.2% increase in unit sales price** despite a **7.2% decrease in sales volume**[269](index=269&type=chunk) - Increased cost of sales was primarily due to higher raw material prices, including coal rising from **US$226/ton in 2021 to US$364/ton in 2022**, and Korean Won depreciation[283](index=283&type=chunk) - The gross profit margin declined from **15.6% in 2021 to 9.0% in 2022**, primarily due to raw material cost increases, lower trading margins, and Typhoon Hinnamnor expenses[284](index=284&type=chunk) [Liquidity and Capital Resources](index=63&type=section&id=Item%205.B.%20Liquidity%20and%20Capital%20Resources) The company maintains solid liquidity with **Won 24.8 trillion working capital** and stable operating cash flow, planning **Won 11 trillion in 2023 capex**, while improving its leverage ratio Summary of Cash Flows (in billions of Won) | Cash Flow Activity | 2021 | 2022 | | :--- | :--- | :--- | | Net cash from operating activities | 6,259 | 6,187 | | Net cash used in investing activities | (5,584) | (4,220) | | Net cash (used in) provided by financing activities | (769) | 1,319 | - Capital expenditures for property, plant, and equipment increased to **Won 4.9 trillion in 2022** from **Won 3.1 trillion in 2021**, with a projected **Won 11 trillion in 2023**[316](index=316&type=chunk)[330](index=330&type=chunk) - The net borrowings-to-equity ratio improved from **31.01% in 2021 to 27.93% in 2022**, reflecting an enhanced leverage position[326](index=326&type=chunk) [Research and Development, Patents and Licenses, Etc.](index=66&type=section&id=Item%205.C.%20Research%20and%20Development%2C%20Patents%20and%20Licenses%2C%20Etc.) The company's robust R&D programs focus on advanced steel, AI, battery materials, and hydrogen, with **872 personnel** and **11,300 registered industrial rights** - In 2022, the company launched the New Experience of Technology Hub, focusing on R&D in AI, rechargeable battery raw materials, and hydrogen/environmentally-friendly energy solutions[332](index=332&type=chunk) [Item 6. Directors, Senior Management and Employees](index=67&type=section&id=Item%206.%20Directors%2C%20Senior%20Management%20and%20Employees) This section details the company's governance, including a board with **seven independent directors**, and human resources, with **38,175 employees** as of 2022 - The Board of Directors comprises five Inside Directors and **seven Outside Directors**, ensuring an independent majority[337](index=337&type=chunk) - Aggregate compensation for Directors and executive officers in 2022 was approximately **Won 50.2 billion**, plus **Won 6.5 billion** for pension and retirement benefits[344](index=344&type=chunk) - The company maintains five special board committees, including an Audit Committee composed entirely of **three independent Outside Directors**[338](index=338&type=chunk)[349](index=349&type=chunk) - As of December 31, 2022, the company and its subsidiaries employed **38,175 people**, an increase from **36,619 in 2021**[352](index=352&type=chunk) [Item 7. Major Shareholders and Related Party Transactions](index=73&type=section&id=Item%207.%20Major%20Shareholders%20and%20Related%20Party%20Transactions) This section identifies major shareholders, with the National Pension Service holding **9.11%**, and details related party transactions disclosed in financial statements Major Shareholders as of December 31, 2022 | Shareholder | Percentage | | :--- | :--- | | National Pension Service | 9.11% | | BlackRock Fund Advisors | 5.19% | | Government of Singapore | 4.67% | | Nippon Steel Corporation | 3.42% | | FMR LLC | 3.29% | | Treasury shares | 10.31% | [Item 8. Financial Information](index=73&type=section&id=Item%208.%20Financial%20Information) This section references consolidated financial statements, details the dismissal of a **US$2.3 billion arbitration case**, and outlines the **Won 12,000 per share 2022 dividend** - A major arbitration claim of approximately **US$2.3 billion** against POSCO E&C was dismissed by the International Court of Arbitration in October 2022[367](index=367&type=chunk) Total Dividend per Common Stock (in Won) | Year | Dividend per Share | | :--- | :--- | | 2020 | 8,000 | | 2021 | 17,000 | | 2022 | 12,000 | [Item 10. Additional Information](index=76&type=section&id=Item%2010.%20Additional%20Information) This section details share capital, articles of association, exchange controls, and taxation, including Korean regulations for foreign investors and U.S. tax considerations - The company's authorized share capital is **200 million shares**, with **84.6 million common shares issued** and **8.7 million held as treasury shares** as of December 31, 2022[377](index=377&type=chunk) - Korean law requires foreign investors to register with the Financial Supervisory Service to trade shares, and report ownership of **5% or more** of a listed company's equity[417](index=417&type=chunk)[429](index=429&type=chunk) - Non-resident holders face a **22% Korean withholding tax on dividends** (or lower treaty rate), while capital gains from KRX KOSPI sales are generally exempt if ownership is less than **25%**[440](index=440&type=chunk)[443](index=443&type=chunk) - For U.S. holders, the company believes it was not a PFIC in 2022 and expects dividends to be 'qualified dividends' eligible for preferential U.S. tax rates[462](index=462&type=chunk)[468](index=468&type=chunk) [Item 11. Quantitative and Qualitative Disclosures about Market Risk](index=93&type=section&id=Item%2011.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company faces market risks from foreign exchange, interest rates, and commodity prices, with a **10% Won depreciation** impacting profit by **Won 344 billion** Sensitivity to 10% Foreign Exchange Rate Change vs. Won (2022) | Currency | Impact on Profit/Loss (Billion Won) | | :--- | :--- | | U.S. Dollar | (344) / 344 | | Euro | (186) / 186 | | Japanese Yen | 14 / (14) | Sensitivity to 1% Interest Rate Change (2022) | Change | Impact on Profit/Loss (Billion Won) | | :--- | :--- | | 1% Increase | (82) | | 1% Decrease | 82 | [Item 15. Controls and Procedures](index=97&type=section&id=Item%2015.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of **December 31, 2022**, based on the COSO framework - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of **December 31, 2022**[501](index=501&type=chunk) - Management assessed and concluded that internal control over financial reporting was effective as of **December 31, 2022**, based on the COSO framework[506](index=506&type=chunk) [Item 16. Corporate Governance](index=100&type=section&id=Item%2016.G.%20Corporate%20Governance) This section highlights differences between the company's Korean-law-based corporate governance and NYSE standards, particularly regarding committee structures and shareholder approvals - The company's board has a majority of **independent directors (7 out of 12)**, meeting NYSE standards, and maintains key committees composed primarily of Outside Directors[519](index=519&type=chunk)[530](index=530&type=chunk)[531](index=531&type=chunk) - Unlike NYSE standards, Korean law does not require shareholder approval for the Employee Stock Ownership Program, and the board can generally issue new shares without shareholder approval, with limitations[533](index=533&type=chunk)[534](index=534&type=chunk) Part III [Item 18. Financial Statements](index=102&type=section&id=Item%2018.%20Financial%20Statements) This section presents the company's audited consolidated financial statements for 2020-2022, with KPMG providing an unqualified opinion on both financial statements and internal controls - KPMG Samjong Accounting Corp. issued an unqualified opinion on the consolidated financial statements, affirming fair presentation of financial position and results in conformity with IFRS[545](index=545&type=chunk) - The auditor also issued an unqualified opinion on the effectiveness of internal control over financial reporting as of **December 31, 2022**, based on the COSO framework[546](index=546&type=chunk)[559](index=559&type=chunk) - Critical Audit Matters include goodwill impairment assessment for POSCO INTERNATIONAL and estimation of total contract costs for construction revenue recognition at POSCO E&C[550](index=550&type=chunk)[553](index=553&type=chunk) [Consolidated Statements of Financial Position](index=110&type=section&id=Consolidated%20Statements%20of%20Financial%20Position) Total assets increased to **Won 99.0 trillion** in 2022 from **Won 92.3 trillion** in 2021, with corresponding increases in liabilities and equity Key Balance Sheet Items (in millions of Won) | Item | Dec 31, 2021 | Dec 31, 2022 | | :--- | :--- | :--- | | Total current assets | 47,419,860 | 48,243,041 | | Total non-current assets | 44,879,030 | 50,778,709 | | **Total assets** | **92,298,890** | **99,021,750** | | Total current liabilities | 21,271,371 | 23,434,705 | | Total non-current liabilities | 16,313,553 | 17,395,148 | | **Total liabilities** | **37,584,924** | **40,829,853** | | **Total equity** | **54,713,966** | **58,191,897** | [Consolidated Statements of Comprehensive Income](index=112&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) In 2022, revenue grew to **Won 85.0 trillion**, but operating profit declined **50.5% to Won 4.3 trillion**, with basic EPS falling to **Won 41,634** Key Income Statement Items (in millions of Won) | Item | 2021 | 2022 | | :--- | :--- | :--- | | Revenue | 76,009,201 | 85,003,616 | | Gross profit | 11,854,862 | 7,682,417 | | Operating profit | 8,775,305 | 4,341,686 | | Profit | 7,175,982 | 3,585,957 | | Basic earnings per share (Won) | 87,191 | 41,634 | [Consolidated Statements of Cash Flows](index=116&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) In 2022, operating cash flow was stable at **Won 6.2 trillion**, investing cash outflow decreased, and financing cash flow turned positive, increasing cash and equivalents to **Won 8.1 trillion** Key Cash Flow Items (in millions of Won) | Cash Flow Activity | 2021 | 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | 6,259,365 | 6,186,765 | | Net cash used in investing activities | (5,583,507) | (4,219,871) | | Net cash provided by (used in) financing activities | (768,666) | 1,319,408 | | Net increase in cash and cash equivalents | 20,142 | 3,277,562 | | Cash and cash equivalents at end of period | 4,775,720 | 8,053,282 | [Note 41. Operating Segments and Geographic Information](index=244&type=section&id=Note%2041.%20Operating%20Segments%20and%20Geographic%20Information) This note details 2022 segment performance, with Steel generating **Won 1.7 trillion** in profit, Green Infrastructure contributing, and the 'Others' segment recording a **Won 1.1 trillion loss** Segment Profit (Loss) for the year ended Dec 31, 2022 | Segment (in millions of Won) | Segment Profit (Loss) | | :--- | :--- | | Steel | 1,711,940 | | Green Infrastructure - Construction | 137,911 | | Green Infrastructure - Trading | 525,500 | | Green Infrastructure - Energy and Others | 293,859 | | Green Materials and Energy | 109,209 | | Others | (1,087,428) | | **Total Segment Profit** | **1,690,991** | Revenue by Geographic Area (2022) | Region (in millions of Won) | Revenue | | :--- | :--- | | Domestic | 54,519,647 | | Japan | 2,651,584 | | China | 7,430,619 | | Asia-other | 12,614,612 | | North America | 2,413,054 | | Others | 5,120,688 |

Financial Performance - POSCO reported a revenue increase of 44% QoQ in Green Materials, contributing to a consolidated revenue of KRW 21,338 billion for Q1 2023[8]. - The operating profit margin improved by 5.8 percentage points to 10.6%, with operating profit reaching KRW 2,258 billion, up from KRW 1,199 billion in the previous quarter[33]. - The EBITDA for Q1 2023 was reported at KRW 1,915 billion, reflecting a significant recovery from the previous quarter's loss[33]. - The consolidated revenue for Q1 2023 was 19,381 KRW billion, with a net profit of 840 KRW billion, reflecting a significant recovery from a net loss of 737 KRW billion in Q4 2022[66]. Debt and Financial Structure - The net debt ratio decreased to 7.7%, reflecting a stronger financial structure with a cash balance increase to KRW 9.5 trillion[8]. - Current assets increased to KRW 50,929 billion in Q1 2023, up from KRW 47,650 billion in Q4 2022, reflecting a QoQ increase of KRW 2,366 billion[67]. - Cash and cash equivalents rose to KRW 19,584 billion in Q1 2023, compared to KRW 18,739 billion in Q4 2022, marking an increase of KRW 1,139 billion[67]. - Total assets reached KRW 98,627 billion in Q1 2023, up by KRW 4,205 billion from KRW 98,407 billion in Q4 2022[67]. - Total debt decreased to KRW 23,993 billion in Q1 2023 from KRW 24,306 billion in Q4 2022, a reduction of KRW 313 billion[67]. - Net debt improved to KRW 4,409 billion in Q1 2023, down from KRW 5,554 billion in Q4 2022, reflecting a decrease of KRW 1,145 billion[67]. - Net debt to equity ratio decreased to 7.7% in Q1 2023 from 9.5% in Q4 2022, indicating a 1.8 percentage point improvement[67]. - Non-current liabilities increased to KRW 17,888 billion in Q1 2023, up from KRW 16,961 billion in Q4 2022, an increase of KRW 927 billion[67]. Production and Sales - Steel production increased to 8,770 k tons, with a utilization rate of 87.4%, marking a 6.2 percentage point improvement QoQ[24]. - POSCO's overseas steel revenue showed a growth of 19% QoQ, reaching KRW 5,952 billion, driven by improved market conditions[9]. - PT. Krakatau POSCO reported a 1.5% increase in sales price QoQ and a 3.2% decrease in raw material price QoQ, with HR sales volume rising from 127k tons in Q4 2022 to 430k tons in Q1 2023[35]. - POSCO Maharashtra's sales volume increased from 346k tons in Q4 2022 to 363k tons in Q1 2023, with a 3.8% increase in sales price QoQ[35]. - Zhangjiagang STS experienced a valuation loss of $17.1 million in Q1 2023 due to high inventory levels and low-price competition, despite a production increase to 7.8 million tons YoY[36]. - PY VINA expanded domestic sales volume by 13.7% from 47.4k tons in Q4 2022 to 53.9k tons in Q1 2023, with a 1.05% increase in sales price QoQ[37]. Strategic Initiatives - The company plans to expand its silicon anode production capacity to 25,000 tons by 2030, with an initial investment of KRW 59 billion for a 450-ton facility[14]. - POSCO acquired a domestic startup, Teratechnos, to enhance its capabilities in silicon anode materials, supporting its strategic expansion in the battery materials market[15]. - The company aims for a 50% reduction in carbon emissions by 2040 as part of its Carbon Neutral Roadmap, with ongoing investments in innovative technologies[20]. Segment Performance - Revenue from the Global Business segment decreased to 7,020 KRW billion in Q1 2023, while Energy segment revenue was 1,286 KRW billion, down 295 KRW billion QoQ[41]. - POSCO International's revenue decreased by 811 KRW billion QoQ, while operating profit increased by 70 KRW billion, resulting in an operating profit margin of 3.4%[40]. - POSCO E&C's revenue decreased to 2,571 KRW billion in Q1 2023, with operating profit increasing by 33 KRW billion, resulting in an operating profit margin of 5.6%[45]. - Future M's revenue increased to 1,135 KRW billion in Q1 2023, with a significant rise in cathode materials revenue to 713 KRW billion, up 328 KRW billion QoQ[50]. Inventory and Assets - Inventories slightly decreased to KRW 16,079 billion in Q1 2023 from KRW 15,472 billion in Q4 2022, a decline of KRW 607 billion[67]. - Tangible assets decreased to KRW 29,709 billion in Q1 2023 from KRW 31,781 billion in Q4 2022, a reduction of KRW 2,072 billion[67]. - Shareholders' equity was reported at KRW 57,162 billion in Q1 2023, down from KRW 58,258 billion in Q4 2022, a decrease of KRW 1,096 billion[67].

[Notice of the 55th Ordinary General Meeting of Shareholders](index=4&type=section&id=Notice%20of%20the%2055th%20Ordinary%20General%20Meeting%20of%20Shareholders) POSCO HOLDINGS INC. announces its 55th Ordinary General Meeting of Shareholders to approve FY2022 financials, amend Articles of Incorporation, elect directors, and set remuneration ceiling - The 55th Ordinary General Meeting of Shareholders is scheduled for **March 17, 2023**, at **9:00 am (KST)** at the POSCO Center in Seoul, Korea[8](index=8&type=chunk) - The main agenda items for the meeting are: - Approval of FY2022 Financial Statements - Amendments to the Articles of Incorporation - Election of Inside, Non-Standing, and Outside Directors - Approval of the Ceiling for Director Remuneration[8](index=8&type=chunk)[9](index=9&type=chunk)[18](index=18&type=chunk) [Meeting Details and Agenda Overview](index=4&type=section&id=Meeting%20Details%20and%20Agenda%20Overview) POSCO HOLDINGS INC. announced its 55th Ordinary General Meeting of Shareholders on **March 17, 2023**, covering FY2022 financials, Articles of Incorporation, director elections, and remuneration [Agenda 1: Approval of Financial Statements for the 55th FY](index=4&type=section&id=Agenda%201%3A%20Approval%20of%20Financial%20Statements%20for%20the%2055th%20FY) The agenda seeks approval for the fiscal year 2022 financial statements and proposes a year-end dividend of **KRW 2,000 per share** - The proposal seeks approval for the financial statements for the fiscal year from January 1, 2022, to December 31, 2022[8](index=8&type=chunk) - A year-end dividend of **KRW 2,000 per share** is proposed[8](index=8&type=chunk) [Agenda 2: Partial Amendments of the Articles of Incorporation](index=5&type=section&id=Agenda%202%3A%20Partial%20Amendments%20of%20the%20Articles%20of%20Incorporation) Proposed amendments include relocating the head office to Pohang, deleting the paper voting option due to **99.92%** electronic voting usage, and revising the dividend record date - The company proposes to change the location of its head office from Seoul to Pohang, Gyeongsangbuk-do[10](index=10&type=chunk) - Article 25, which allows for exercising voting rights in writing (paper voting), is proposed to be deleted due to the successful adoption of the electronic voting system (**99.92% usage**) and to promote environmental protection[11](index=11&type=chunk)[17](index=17&type=chunk) - The articles regarding dividends (Article 56) are being revised to change the record date for year-end dividends, which will be determined by a Board of Directors resolution and publicly noticed two weeks prior[14](index=14&type=chunk)[16](index=16&type=chunk) [Agenda 3: Election of Inside Directors](index=6&type=section&id=Agenda%203%3A%20Election%20of%20Inside%20Directors) Three candidates are proposed for election as Inside Directors, selected for their expertise in corporate strategy, green materials, and technology development - Three candidates are proposed for election as Inside Directors, each for a 1-year term: - Jeong, Ki-Seop - Yoo, Byeong-Og - Kim, Ji-Yong[19](index=19&type=chunk)[20](index=20&type=chunk) - The Board of Directors recommends the candidates based on their extensive experience in corporate strategy, green materials, and technology development, which are expected to enhance business competitiveness and support new growth areas[22](index=22&type=chunk) [Agenda 4: Election of Non-Standing Director](index=8&type=section&id=Agenda%204%3A%20Election%20of%20Non-Standing%20Director) One candidate is proposed for election as a Non-Standing Director, recommended for contributions to steel business competitiveness and synergy generation - One candidate, Kim, Hag-Dong, is proposed for election as a Non-Standing Director for a 1-year term[23](index=23&type=chunk) - The Board recommends him for his contributions to the competitiveness of the core steel business and to generate synergy between the holding company and its steel subsidiary[25](index=25&type=chunk) [Agenda 5: Election of Outside Director](index=9&type=section&id=Agenda%205%3A%20Election%20of%20Outside%20Director) One candidate, a law professor, is proposed for election as an Outside Director, valued for expertise in international trade law and corporate governance - One candidate, Kim, Joon-Ki, a Professor of Law at Yonsei University, is proposed for election as an Outside Director for a 3-year term[26](index=26&type=chunk) - The candidate is recommended for his expertise in international trade law and corporate governance, which is expected to provide diverse insights and improve the company's international competitiveness[27](index=27&type=chunk) [Agenda 6: Approval of the Ceiling Amount of Total Remuneration for Directors](index=11&type=section&id=Agenda%206%3A%20Approval%20of%20the%20Ceiling%20Amount%20of%20Total%20Remuneration%20for%20Directors) The proposed ceiling for total director remuneration for FY 2023 is **KRW 10.0 billion**, remaining unchanged from the previous fiscal year - The proposed ceiling for the total remuneration for directors for FY 2023 is **KRW 10.0 billion**, which is unchanged from the approved ceiling for FY 2022[29](index=29&type=chunk) [Financial Statements](index=12&type=section&id=Financial%20Statements) The financial statements detail POSCO HOLDINGS' consolidated and separate performance for FY2022, reflecting significant changes due to the holding company transition [Consolidated Financial Statements (FY2022)](index=12&type=section&id=Consolidated%20Financial%20Statements%20(FY2022)) For FY2022, consolidated revenue grew **11%** to **KRW 84.75 trillion**, but operating and net profits significantly declined, while total assets expanded to **KRW 98.41 trillion** [Consolidated Statements of Financial Position](index=14&type=section&id=Consolidated%20Statements%20of%20Financial%20Position) The consolidated balance sheet shows total assets increased by **7.6%** to **KRW 98.41 trillion**, with liabilities up **9.5%** and equity up **6.3%** by year-end 2022 Consolidated Financial Position as of Dec 31, 2022 vs 2021 | Metric | Dec 31, 2022 (KRW millions) | Dec 31, 2021 (KRW millions) | Change | | :--- | :--- | :--- | :--- | | **Total Assets** | **98,406,781** | **91,471,614** | **+7.6%** | | Total Current Assets | 47,649,466 | 46,621,630 | +2.2% | | Total Non-current Assets | 50,757,315 | 44,849,984 | +13.2% | | **Total Liabilities** | **40,149,380** | **36,666,671** | **+9.5%** | | Total Current Liabilities | 23,188,190 | 21,083,623 | +10.0% | | Total Non-current Liabilities | 16,961,190 | 15,583,048 | +8.8% | | **Total Equity** | **58,257,401** | **54,804,943** | **+6.3%** | [Consolidated Statements of Comprehensive Income](index=16&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Consolidated revenue grew **11.0%** to **KRW 84.75 trillion** in FY2022, while operating profit and net profit significantly declined by **47.5%** and **50.5%** respectively Consolidated Income Statement for FY2022 vs FY2021 | Metric | 2022 (KRW millions) | 2021 (KRW millions) | Change | | :--- | :--- | :--- | :--- | | **Revenue** | **84,750,204** | **76,332,345** | **+11.0%** | | Gross Profit | 7,649,292 | 11,881,126 | -35.6% | | **Operating Profit** | **4,850,053** | **9,238,089** | **-47.5%** | | Profit Before Income Tax | 4,014,366 | 9,416,073 | -57.4% | | **Profit for the year** | **3,560,484** | **7,195,890** | **-50.5%** | | Profit attributable to owners | 3,144,087 | 6,617,239 | -52.5% | | Basic Earnings Per Share (in Won) | 41,456 | 87,330 | -52.5% | [Consolidated Statements of Changes in Equity](index=17&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Equity) Total consolidated equity increased from **KRW 54.80 trillion** to **KRW 58.26 trillion**, driven by **KRW 3.14 trillion** profit attributable to owners, despite **KRW 1.14 trillion** in dividends - Total equity increased from **KRW 54.80 trillion** at the end of 2021 to **KRW 58.26 trillion** at the end of 2022[38](index=38&type=chunk)[40](index=40&type=chunk) - Key changes in equity during 2022 include a profit of **KRW 3.14 trillion** attributable to owners, payment of year-end and interim dividends totaling **KRW 1.14 trillion**, and retirement of treasury stock[40](index=40&type=chunk) [Consolidated Statements of Cash Flows](index=19&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities remained strong at **KRW 6.15 trillion**, leading to a significant increase in cash and cash equivalents to **KRW 8.05 trillion** by year-end 2022 Consolidated Cash Flows for FY2022 vs FY2021 | Metric | 2022 (KRW millions) | 2021 (KRW millions) | | :--- | :--- | :--- | | **Net cash provided by operating activities** | **6,145,548** | **6,259,365** | | Net cash used in investing activities | (4,181,425) | (5,583,507) | | Net cash provided by financing activities | 1,322,179 | (768,666) | | **Net increase in cash and cash equivalents** | **3,277,562** | **20,142** | | Cash and cash equivalents at end of the period | 8,053,282 | 4,775,720 | [Separate Financial Statements (FY2022)](index=21&type=section&id=Separate%20Financial%20Statements%20(FY2022)) Separate FY2022 financials show revenue sharply decreased to **KRW 8.59 trillion** and a net loss of **KRW 468 billion**, reflecting the holding company transition and steel business spin-off [Separate Statements of Financial Position](index=23&type=section&id=Separate%20Statements%20of%20Financial%20Position) The separate balance sheet reflects a **20.4%** decrease in total assets to **KRW 51.15 trillion**, primarily due to the spin-off of the core steel business Separate Financial Position as of Dec 31, 2022 vs 2021 | Metric | Dec 31, 2022 (KRW millions) | Dec 31, 2021 (KRW millions) | Change | | :--- | :--- | :--- | :--- | | **Total Assets** | **51,149,119** | **64,242,759** | **-20.4%** | | Investments in subsidiaries, etc. | 45,187,628 | 16,002,640 | +182.4% | | **Total Liabilities** | **3,977,256** | **15,207,334** | **-73.8%** | | **Total Equity** | **47,171,863** | **49,035,425** | **-3.8%** | [Separate Statements of Comprehensive Income](index=25&type=section&id=Separate%20Statements%20of%20Comprehensive%20Income) Separate revenue sharply decreased by **78.5%** to **KRW 8.59 trillion**, resulting in a net loss of **KRW 468 billion** for FY2022 due to the holding company transition Separate Income Statement for FY2022 vs FY2021 | Metric | 2022 (KRW millions) | 2021 (KRW millions) | Change | | :--- | :--- | :--- | :--- | | **Revenue** | **8,589,819** | **39,920,201** | **-78.5%** | | Operating Profit | 1,674,893 | 6,649,600 | -74.8% | | **Profit (Loss) for the year** | **(467,852)** | **5,181,227** | **N/A** | | Basic Earnings Per Share (in Won) | (6,185) | 68,360 | N/A | [Separate Statements of Changes in Equity](index=26&type=section&id=Separate%20Statements%20of%20Changes%20in%20Equity) Separate total equity slightly decreased from **KRW 49.04 trillion** to **KRW 47.17 trillion**, primarily due to the net loss of **KRW 468 billion** and **KRW 1.14 trillion** in dividend payments - Total equity decreased slightly from **KRW 49.04 trillion** at the end of 2021 to **KRW 47.17 trillion** at the end of 2022[55](index=55&type=chunk) - The decrease in equity was primarily driven by a net loss of **KRW 468 billion** and dividend payments of **KRW 1.14 trillion**, partially offset by transactions like the disposal and retirement of treasury stock[55](index=55&type=chunk) [Separate Statements of Cash Flows](index=27&type=section&id=Separate%20Statements%20of%20Cash%20Flows) Separate net cash from operating activities turned negative at **KRW 730 billion**, leading to a net decrease in cash and cash equivalents to **KRW 1.42 trillion** by year-end 2022 Separate Cash Flows for FY2022 vs FY2021 | Metric | 2022 (KRW millions) | 2021 (KRW millions) | | :--- | :--- | :--- | | **Net cash (used in) provided by operating activities** | **(730,240)** | **4,780,338** | | Net cash provided by (used in) investing activities | 930,718 | (3,413,276) | | Net cash used in financing activities | (831,469) | (1,149,297) | | **Net decrease in cash and cash equivalents** | **(627,073)** | **219,614** | | Cash and cash equivalents at end of the period | 1,415,201 | 2,042,274 |

Green Tomorrow, (Jith POSCO DOSCO HOLDINGS 3Q 2022 Earnings Release Oct 24, 2022 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 the third quarter 2022. As figures in this presentation are based on unaudited financial statements, certain contents may be subject to modification in the course of auditing process. This presentation contains certai ...

POSCO Holdings Inc. (NYSE:PKX) Q3 2022 Earnings Conference Call October 24, 2022 3:00 AM ET Company Participants Han Young-Ah - Head of IR team, SVP Lee Kyung-Seop - Head of the LiB Materials Business Project Team Conference Call Participants Pat Canon - Hyundai Kim SungYung - Hai Investment Yi Jiang Wang - NHN Operator Ladies and gentlemen, now we will begin POSCO Holdings Earnings Release for Q3 of 2022. Today's conference call will begin with the earnings presentation of POSCO Holdings followed by a Q -- ...