PKX - Earnings call transcript Q1 2022

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Operator

Ladies and gentlemen, we will now begin the Earnings Call for POSCO Holdings for the First Quarter of 2022.

For today's conference call, you will begin with a presentation from the company side, followed by a Q&A session with the participant's presence. [Operator Instructions] We will now listen to the earnings presentation by POSCO Holdings.

Chon Jung-Son

Hello, everyone. I am Chon Jung-Son, Head of Corporate Strategy team at POSCO Holdings.

the company. release marks to we actually holding a today first after earnings transitioned So forward your look We to POSCO interest Holdings. to continued support and

X, a may Group on you well this on As know, POSCO Holdings. transitioned company holding March to structure centered year POSCO

businesses transition green major - materials green as following future about this to explain such energy. today's green from So [indiscernible] call company earnings fully our considered the as and

that, from the also key are POSCO us joining management from Holdings. operating have we today major five only have management We major the joining Not today. who from us companies companies operating

So, businesses continue as to Holdings, enhance value. to going steel a we've will best our our in in our achieving enterprise investors at forward, do we balanced growth promised new POSCO growth to and

team Head performance the on gives a few detailed share first overall our me of quarter. you presentation, a let Before words XXXX of the Finance

increased coal crisis, [ph] steel performance mitigate pressure of a As to business, strong the to operating prices, thanks to for due global we rebound of achieved margin XX%. despite our steel of hovering the including Ukraine, profit hike, price Russia

As for POSCO major POSCO improved on Q-o-Q materials, subsidiaries green the basis. and other profit greatly making and profit KRW infrastructure saw a thus our XXX billion future operating level, International operating Energy, exceed green to a consolidated

thereby coupled recession our capacity continued raw second of our much of lithium production of the monetary steel ton material stably core believe broke and Ukraine, expansion. and ground quarter. In Therefore we with a we lithium developed the XX,XXX as and concentrate, to countries, with all hydroxide secure policy our is venture Hombre pricing compared on in for Russia like to businesses, infrastructure price our uncertainty accelerating joint I for as agility. entity seven one Phase raw our production measures. to business, [ph] future capacity due As with facility secure the of Pilbara to due lithium Muerto economic crisis, Gwangyang the materials, production manage pre-emptive trends material industry the cost a transitioned for Argentina, with through at first lithium production, to green pressure salt-lake quarter, likely to for And which tightening EV hike, expand shift key to we will profitability business, we will closely to fluctuations monitor given outlook is price green Australia

our will our the We to meet on, give expectations. of Finance will now a market do team presentation you that, indeed Head best on from With earnings. QX

Unidentified Company Representative

I am everyone. Hag-Dong Holdings. team Hello Finance of POSCO Kim, at Head

Let my first briefing me quarter POSCO Holdings XXXX earnings Q-o-Q. earnings comparing begin of

profit profits First Reduced lesser cost X.XXX operating is and first down recording Q-o-Q consolidated domestic the business. sales earnings, is billion, trillion. XXX the for KRW consolidated KRW in resulted increase steel by quarter

of However, by demand greatly green overseas operating as Energy to X still and a keep and POSCO Chemical infrastructure, actively responding to level local improved, trillion. subsidiaries future like recorded us KRW strong International, profits profits green allowing materials POSCO profit POSCO in major operating

operating Next is performance the business details by of the subsidiary.

POSCO standalone POSCOs production presentation, newly product both X, was and investors spin-off. note that please our Crude Operating performance. Q-o-Q is First have to in but subsidiary, production established facilitate sales on and we went March Gwangyang reaching went understanding, included decreased to performance due Q-o-Q volume WTP up ton, by declined blast as POSCO Q-o-Q X.X% point this prior X.XXX including sales X. XX.X% revamping decreased facilities furnace reaching X.X% recording ratio million ratio Domestic ton. XXX,XXX major down point XX.X%. to Sales standalone

structure. and income Next is standalone financial POSCOs

KRW and profit middle by margin XXX while tightening, it billion, operating As with recording the sales KRW coal declined trillion. jumping, XQ coking dropping for price X.XXX

spin-off balance spin-off vertical the as As and POSCO March for net securities date to equity-based transferring a cash structure, Holdings, POSCOs X. declined financial following and asset standalone

PTKP the subsidiaries. performance product Next material overseas profitability price defended business raw to major hike maximum declines. by sales of price is and Indonesia's ratio, expanding despite domestic

following As raw material as nickel energy profit to Maharashtra, stronger activities for delay edged despite edged standstill, operating revenue the down and both profit export despite increased up for search. sales volume fluctuation expansion. Zhangjiagang and improved price Vietnam's auto market Vietnam, India's through Q-o-Q sales and as recovery, China's, costs due PY for the costs so domestic price, large Q-o-Q recovery, increased POSCO price sales in as VINA rose and profit demand slightly

performance. POSCO is Next Internationals

thanks International, and to increase business steel both increased POSCO thus Q-o-Q. increased, price for hike, sales product profit materials revenue raw volume steel As revenue including coal, and

revenue. gas product business, sales construction agro field with due prolong in materials increased, to dropping temporarily new for energy resulting lower mining And volume connecting price to crisis performance lot platform. of declined revenue weakened Russia although with As as the the for Ukraine, due

increased to POSCO operating orders Q-o-Q with saw POSCO infrastructure saw Q-o-Q. to E&C. and business new profits building like move I'd adjust and on E&C Next, improved profits and

season, Q-o-Q. business effect to the a has led the construction decrease off the into With going seasonal in revenue

business the profits costs reduction due from infrastructure seen to of well litigation, lower debt [ph] wins improved bad However, expense. as as middle has

was increased profits from On the cash building as projects business recognized. Q-o-Q, side completed

generation POSCO profit including power energy POSCO and increase terminal. Energy. robust has and seen across revenue all LNG businesses Next on

stable prices and business, expanded revenue and generation home to ship increase abroad. price. season tank profits On sales increased LNG business and and surge profit With revenue fuel earnings both terminals LNG in the power commissioning increased the both growth at from terminal into to after which entering power both Q-o-Q due led and rentals related in side including peak in

revenue improved anode quarter-on-quarter. for Chemical. stemming seen leading profits price is business due rose in sales POSCO business, raw POSCO Chemical to and also rise of volumes increase sales has materials. And the for Next we'll and to sales POSCO from in move cathode improved improved profits Q-o-Q. Q-o-Q Chemicals revenue on earnings hike revenue to and volume in seen price

maintenance quick-lime of price side of the new top orders the of and and led to business, additional to business, the the and chemical furnace side For in in growth applications and sales hike non-ferrous steel on revenue. led line growth refractories the

like for major businesses, I seven Next, quarter plans. the first describe the and specifically future in activities key to the performance the

both stage carbon-neutral HMR strategies. has dedicated broke committee an expand five and POSCO as on launched council, cathode steel, anode issues, and operations the organization with lower high levels, For for materials. natural advisory our also take Pohang while outside to capacity a better to zero pellet in-house reviewing secondary and And production we and as four stage ground surrounding well construction net an we Gwangyang investment raw of supply two at of we Through in number materials, three will reduction we are implementation for construction review at prepare also in reached April for second graphite. plant of proceeding our mine at future equity of for targets production, mills. quarter Currently, for battery stake quarter diversify an carbon and in first chain a cathode we implementation the stage Australia begin to in electric steel graphite furnace EAS to emissions Sejong

XX for the POSCO in plant the on end schedule year. Gwangyang, in ore plant is business, of proceeding salt battery began maker Ravensthorpe and metal ore for by is aiming a HY refinery one plants POSCO, the March end MHP, this Muerto nickel slated by are the ground live nickel For for Pilbara environmental stage Australian With with our Salar brine the of recycling for brine completion of operations transition plant solution lithium The lithium refining del Hombre business, for in currently its recycling saltwater clean ferronickel completion quarter. underway production high the building material base Argentina. nickel the nickel while plants SNNCs in to is new second plant a targeting recycling intermediate this the impact use. to assessment year. break planned is is nickel purity The construction

a for opportunities For abundant Korea a major are develop with in blue and projects to surveying feasibility hydrogen, production study involving byproduct both in green project areas. abroad, together conducting hydrogen RE and we

core other efforts a in to secure company sector. also the investment We water electrolysis global with pursuing along opportunities possible technologies with

For energy, our portfolio. in RE strengthening we business are interested

We power. together Korea are plant offshore pursuing in with joint Trung power southeast of domestic wind development Nam Province

production participate the relevant Going rates. Incheon forward business in we power Airport at the secure bid and plant solar for will

PR orders. construction, new on book remodeling will through activities we business enhance our the more more to For and sharp gallery

a city demonstrated green certification building receiving building have capacity community. the We rhythm zero energy [ph] by Leeds Blues at

wheat agriculture, For a we for have cotton base secured and production.

Uzbekistan, palm business. possible in farm allocation value chain for continuously reviewing to expand for investment textile the we subsidiary cotton the are So our production that candidates

With on for to the is for on quarter be Lastly outlook revenue first consolidated our of trillion earnings at a KRWXX.X debt this, presentation year, conclude trillion. planned we basis, remaining KRWXX.X POSCO at with Holdings the expected trillion, XXXX. like to consolidated CapEx is business the KRWX.X

the We will now Q&A begin session.

the raise the of If you operator please have follow a instructions to your question. question,

Operator

to we're Investment the Now question So Hyundai [Operator Mr. going Q&A Instructions] Motor, the Security. session. from first is begin Park.

Park Chung Kook

I for am and I thank I you earnings Hello, like Securities, Kook. wonderful Hyundai would Park Chung questions this Investment performance, three from to for Motor, you. have

So the first question steel business. is regarding the

the going cost with the reflected first operating hikes, in quarter in the good quarter, is from believe raw that it's So be from decrease And steel profit second to earnings the the despite we the consensus. second the material the quarter. might market

to be but uncertainties, there – going made. there the steel as well you should is course prices need be know, some for of But at So and that the US efforts is a global price may up.

their nickel reflect Holdings well first hike? you industry, in demand view [ph] we the like demand in have the would do in electronics, stainless is - thinking POSCO that prices believe. quarter there quarter business I is raw the so is how know auto in what as the of must real the to the outlook? their actually March so as been And the products the to impacted soared, materials about raising So And prices second

was stainless in the in falls the like steel. demand. And profit business the the of first the increased I it also the I quarter, annual of you would And steel to think stainless of what capacity POSCO? know So short covering that

a you In So is if mobility And in for be to I there know the - And how political second be subsidiary. solution. as to will the quarter. do an increase Holdings, steel going increased or it view there's the capacity production? would business POSCO regarding production in profitability, stainless like

as - positive these valuation So company. there POSCO are like to a potential, with it any the impact do it so high have under make the improving can Holdings, have companies in plans holdings. companies of there And that other grandparents aren't companies growth of subsidiary high so a growth are

any whether Thank would adjusting changes or of the structure governance to or the you in I structure grandson know So very you much. ownership like company? subsidiaries - have the grandparent

Unidentified Company Representative

think that second it's quarter as was business. I for question, the think And carbon or related second regarding it regarding steel, So the with steel ore, much first or and the steel, profits that the of profitability. the iron for very I

can an And there is that actually And that we give the question the about the answer was that team, costs quarter? stainless be maybe for [ph] So marketing can about to prices reflect maybe going get Jung up? marketing so stainless, by the regarding that. up going answers the to and be second a Mr. the actually can - from question. going POSCO nickel price the covered So office

Unidentified Company Representative

hello. I'm POSCO office. from marketing strategy Yes, [indiscernible] good

a asked then please me know. out on I If So questions. the questions, any you of let miss lot of

and first in impacted Russia quarter, was So the dispute so and that inflation, actually crisis as nickel in mills, because the and Ukrainian soared. supply. of the the And first of the prices explosion the all, there vision, coal of global said, the you

line - on we second and And the surge. electronics, have we that reflect for So the in flip are second of quarter And that from cost. these fourth And we we price led and increases. POSCO And the we the price But a them as quarter, until quarter shipbuilding finalized February, the not this in fourth in completed of companies, or for situation, have we as for hikes. signed last until actually have going actually price the three were in automobiles, - completed not hike, so could also contract so the forth, yet. as March, the with we quarter the trend, to first to to per price able year. all actually

second reason actually you gone a actually the have So a level. nickel But XQ, overall situation, for compared to this be as to business, we price up next as cannot finalize $XXX,XXX. similar drop the quarter. but a we're we the as is price unprecedented. reasonable price. But that stainless basically, believe going as level actually believe increased know, look prices Q. onto a we week, the record be the increase. worrisome And believe the in the to we the high, KRWXXX,XXX out next well at we will second not there to And give steel our up. will may should The to month, that at it in of quarter, prices the if the compared for allow And last that be believe you nickel a you this go preserved this the time month, being it's picked level. huge believe real preserve basically It's increase think. the to we has the first quarter, may little for that level And in last bit going the not second that profitability And be we a for year of month in Q, that demand is and will the not believe because we going details us increase. it price prices I lower, now

I they enterprise become the and And potential, the regarding there about the was are would high POSCO that the holdings third if think So was that subsidiary Holdings? companies subsidiaries, grandson it have not the potential, that and question. company grandparent boost value of question,

plans value value. and and do because subsidiaries a POSCO the restructuring structure, our under ownership we Another a reason the structure have of are we and have wanted market to are that any about that assessment Actually, we why to holding company that going was, and hard fair to maximize forward? the we thinking Holdings companies maximize question to and all very enterprise the transitioned do of by grandparent adjustment, is do to the governance how synergy is

investigation by So deep company. under very this is something our

that indeed market. to today grandson of lithium a value the become this is are the businesses if future. like that holdings of in this going once businesses. and a are market. part decided will boost I Thank might there will concerns of and as we concerns And we business of much. So, other subsidiary, in the there inquire value you dilute that listed a believe new and make these we it company to so when for and communicate grandparent our actually we think about you the will drive that have and they But off. believe We all business, if that very based And our like in consider the market become company, decisions

Operator

hear question. to Securities Next like we'd Please your Sang, Yoon High ask [ph] Investment Kim

Unidentified Analyst

four Yes. Hello. have very Thank Investment Sang three for much or My High name presentation. you is I Securities. Kim from questions. about the Yoon

supply upwards know Can can situation in think that you have chain into last on? of and and is The that and ties supply COX side? Russian that sales can perhaps further. I the And is Right might increased US the situation exports be and cetera, is bit how recently, the also have a the people possible for little decreased. is scrap perhaps with question question export demand, is first understand quota has for fuel metal second not the or is on quota supply situation negotiations the commercial actually question because et China that. on us because cost I the third And been the right or you tell supply price that entering might the about construction, you The visibility on for gradually, on supply is and and that into that usage might local a guidance there if last about of you forward, of the out? now? on well? think bit plant markets, with that, year on in as this lithium. that have for and little know for I entering lower And elaborate going improving between The other to price might situation POSCO raw And countries volume you Argentina, for and European there My the has increased. have a can but now, now think be Europe supply and your your with XX,XXX in tell beginning this are means that do reduction, going that year you you XXXX you market I question us elevated community XXXk also right the are emissions do tons some uncertainty, the

Unidentified Company Representative

Thank you much question. your very for

iron. and First raw coal on raw

[indiscernible] iron of can supply, the that's Head Materials Raw raw I understand. Office the better think For of

Unidentified Company Representative

is One. name of Head my Office [indiscernible] Materials the Yes, Raw

steel, terms has market. tons. Of up this raw of not In the it Russia's global XX about come supply materials, XX about XX% particularly million of tons, takes supply, million raw is that the into X%

about Russia importer fact, also million tons. In is net a XX of

enter right Europe Russia. So we you impact to supply. an market. And that having into - expanded dependency priced month in the or in with in well. a PCR following seeing Russian is I so. Australia steel They market Europe. supply access means and are of of to they But a understand to is American we that and China, ban even Turkey XX ban to of importing has from for this Because are be India minus there an million cheap coke, issued we leading the bituminous the unable already, already from beginning in Europe May to in makers as from now from South we're going rebalancing here seen lot Russia. This this Russia And supply for and that expect this, this on about Canada, that market markets August, for US, in actually because have import million, But supply April, XX from are supply. outright the purchase if lot and think the

So the going given road. That current future in right to become the it down the is now, stable even believe to going is it is price, that all. somewhat stabilize we and more

peak For a for into Russia the that second impact positive expansion decrease this of steel, situation Russia quota might from from these question and on different the possible market because of US European terms question European price a Strategy markets Jung-Son was also US in US talking to with have the this POSCO about export can additional Chon in perhaps Mr. market that and and [ph] the exports at our the the seen has Europe. the to on analyst answer Office And Marketing question.

Unidentified Company Representative

name My of POSCO. is Jung-son Marketing Chon, Strategy the at Office

peak as First possible these has was at the has Because price we prolonged, the on it US right mentioned, now that Europe conflict markets. the different becoming Ukrainian, levels. is Russian believe on more price question peaked is and in that of those maintaining and analyst

with lifting coming tariffs, wars is With the of market. of the into the the the trade US supply Europe US in some

So European million us March for mentioned, as for EU quota, and analyst this we and is POSCO, leading for there's about have the minimal to the February market to the steel that on, overall. already the the that rolled exports means a for has and hot a with global already EU And managed increase HR is Russia then. open to since is the into quota weak direct markets price for XX so which

question plants The construction. lithium Argentina, commercial third on was

from there is in and expansion. expansion a Argentina Green Infrastructure any we uncertainty Mr. Holdings supply have for increased Head if can Lee of subsidiary Argentina possible the from [ph] site For the can if capacity business. future, capacity the Perhaps Tong hear possible we

Unidentified Company Representative

as Tong, my green and Lee infrastructure is name Ladies gentlemen, serve business. a

And in we CEO these already the XX,XXX ceremony attended visited lithium XX, capacity. of in Regarding territories. have ceremony business, ground for as March from to the broken person fact, groundbreaking the [indiscernible] and Argentina production the

these We municipal the licensing many also have governments the to The invited and permits. governments local different rights local groundbreaking come to heads of ceremony. the

different relevant governments. We permits licenses municipal from and these the and have received all necessary

now construction. are going the we So engineering for stage into the

ground to break beginning beginning start hoping - are year. construction this actually We

government that will head [indiscernible], complete of deliberations so We municipal we continue can this have the on to schedule. with

assessment and impact permits environmental by believe this we that going get of are to the year. the finished necessary the we have We all end

scheduling be So are XXk the when Umberto, a supply production that comes a it we by for about there XX,XXX XXXX. a of don't by XX,XXX about we end can or begin of capacity the production. to to expect production from We this going possible to year. And uncertainty lot construction have of of of about this

lots, With and the infrastructures. the infrastructure roads all the lands, we are looking different the the at

- believe we're The So all local and challenges because mine. nearing going have cleared profitability because higher community infrastructure, almost and have the licenses Salt we the much of have to permits governments. close almost We receiving the of receiving, EIA the that are Lake don't the and relations we we extra to and we good municipal than away the with the there's is road. much be the down

So market are also we Argentina more to hoping for candidates. into these salt lakes, to entering looking get we're why is and research which possible access in

from on COX Soo Soo, the possible iron line Tang the last hear the on on can the Mr. for on scrap use was scrap a perhaps guidance going forward question, iron, so if of also past of [ph] use metal, Paun he from you from Tang scrap In and we emissions Paun reduction, hear on can the As guidance. Pohang. on is

Unidentified Company Representative

of and technology and the steel hello strategy office at head production Pohang. Yes,

are asking carbon in You use of the metal about terms possibly scrap neutrality.

just Gwangyang, our by furnaces, carbon gradually in in is we are thus to the And using For neutrality that the also scrap scrap road million this but have according X.X going from newly goals, change iron, including XXXX, are comes down of all about going of Pohang. installed capacity because we tons to all the not far. to

there's mining we're believe after lot iron. scrap additional that, of on going XXXX X to be see million after we about to XXXX, on after Since going more So hydrogen tons of that a supply.

more offset emissions. of you very these hopefully going much. this is to carbon So Thank

Operator

Securities. Investment ahead. Next Chan. Please go is NH from Mr.

Unidentified Analyst

the already to a regarding follow that was ask up like asked. would question question I Hello.

price the But the the increase to so have to that price, price So But actually but Was sector. you costs you you reflect than that is increased said be So question you you would hike, of know ask. - so shipbuilding cut That's that first - that like did other the and what we I would actually and finalized want output And that forth? regarding increase? the - all sufficient? really regarding do on the increase in you the level to the cut question believe us. that is steel US an sufficient that's was also China, impact second But about the Europe. with in the a question may also have price.

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fight that it margin Q-o-Q the I did down. regarding to I profit X%, it And to POSCO decreased. your fee as profitability do revenue so of actually the that going kind would going government not And and going forward. is that the happen? about Why at utilities you hike, if up very for like of increase, And willing Chemical, so. revenue margin trend up. the to has is is seems like if their think look is So going operating or is and has know continue gone And business

its we do a that to is for there types what go so price account say hike, because of generate profitability, you we because natural and And can have But is about International, business, have for mentioned you lithium doing POSCO maybe price brine, Or from maybe the Or we as reflect like so have Gwangyang of to just and and failed secured or agro because we your we to a as after so of the as capacity. forth. forth. grain as take So logic hike, other but the profitability. to cost? know a And it's that far food, - smelting also about have [ph] towards business company? you into it's process the iron brine, I know, expanding would like include to the

I agro the materials is think with much business. very the not business related

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appreciate would Thank much. I for question. So you brief each very answer

Unidentified Company Representative

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to is So we increase enough cost. to cost, like price the compared know actual would if the

name - office. the from I'm my So marketing

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this. Zhon Corporate Kim POSCO Finance will explain, the Planning Finance [ph] Mr. Yuang sorry POSCO and will about office So, explain Office from Energy

Unidentified Company Representative

two profitability Energy. are for drivers of there So POSCO

And power is we terminal entered generation, the the recently as power generation So in the profits good terminal, season. because our LNG the and the the of second per the all, is have - first And peak business. soared. prices were power first because LNG quarter, the

So XX% marginal year-on-year. following the increased SMP, also system that, about actually price the

profitability. revenue Gwangyang business, to terminal for terminal as that in our LNG and the So second terminal generates increased the And And there is led so is that increased and revenue profits. business. stable

of try focused So but remain also as generation making a or profits private, and of as independent for But about [ph] on the a and seeing we also that similar. as for trying believe to is I ITPs the KEPCO business, limitations. the business, will terminal be will actually the we are lot power price, our said, lot - you the know, KEPCO there will efforts gen-cos are defend best we to deficits

because higher quarter, off the second monitor closely the in our as that season the even is But which QX, we season. second make remain have power there the there clear are to profitable. prices and trend sure high, per and will between we a high SMP outlook, we but go though, though distinction quarter we per the down. generation raw peak our sector, will material So was material try of as raw CP prices, may

So, expect you. as in as profits second the not quarter much may Thank we first quarter.

Unidentified Company Representative

[indiscernible], materials? and for anode is So, answer. is what a question the first going POSCO outlook the Mr. which is the to the lot materials Chemicals, give regarding declined anode revenue, So,

Unidentified Company Representative

Finance and Hello, I'm Office. Planning Chemical Corporate [indiscernible]

this prices So went raw first account. up, prices, quarter, material declined, our the material But raw because fully quite for increased their it magnesium has operating been because this prices margin - And was up. profit drastically year. material into as not declined last is high the taken went - first

for product they in the that in lot anode you most China, we owned So of will the actually magnesium as in prices raw materials be quarter, of - the and area. know, are well have this that - as price. materials, may a we reflected increased second the that in this And by believe competitiveness

So that even though material price on impact out, prices. they from low is there prices, add have of our prices our product coming volumes a is sales lot an gone having on because China,

go to the also three players is our we're long to quarter, that's in quarter, something the in a domestic take to that's so So with the competitiveness. [ph] that for And note we're second markets. the so in contract going in term top of. invest your going second like undermining But

normalize believe for cathode we In was able profitability the then year the happens, business. material past, our that materials. about about this we'll to as And X%. be X% anode if So to X%, the

supply the increase that actually a for that going an Chemical at will POSCO or is for going there's materials our boost I So – the Holdings plan raw forward. profitability for but materialized level, if POSCO sales, believe that also

lithium is that the in So profitability the is question the fifth in our smelting. ores, or about

supply $XX,XXX. continued tight, will last price long was about lithium But So mid to lithium to be the term, tight. week, be to

lithium the for believe we that our price the $XX,XXX. for lithium as believe And - $XX,XXX will a price changed. price then outlook, the depending ore, there's for the if ore the lithium lithium about ore average be the go outlook up. about as price profitability as brine, [indiscernible] on go up, So up, we is prices will goes that But projection and also

will profitability the goes up, goes price and if So, up up. lithium also go the

and and the smelting So, the mining prices going because both up going the is up. mention lithium profitability are about

much be And is very included is of POSCO terms profitability, other actually agro concern. that low. about with should was - I included in adapt that last question the business, really there business should that our agro the should materials Chemical in its be the our and business, we not connectivity So business, in food think

International, to company, company. at market, trading had its actually POSCO business Myanmar business a like total pure And after So, or lot a we on trading has after holding like energy mentioned but generated strategy stream it has And revenues. the added also a focusing basically simple that, and long the about transitioning our to of we mid discussions a is term board.

well Internationals will And infrastructure, our had believe - So to of focus in food some lot and And - has like and to so need trade or given been simply trading that trading, discussions on Korea, forth. require have made. agro like expertise. been as the have we equity need materials. business been farms, may course, like And POSCO investments agro food International may believe at that we as trading assume situation outlook. in business role has for POSCO security stake a terminals, the be like good a of business agro we We the the adequate

long that options further. of further will some we or exploring plan our our and strategy. to to it the our And make So is term expand these we're mid expand that are to business agro regarding agro business, sure

Operator

like to Next year, we'd please. hear from Asset [indiscernible] Security,

Unidentified Analyst

hello. name questions ask Asset company. [indiscernible] like My to Yes, that the I Securities. have I also three about would

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Unidentified Company Representative

much Thank questions. your you for very

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Unidentified Company Representative

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acid. a have they Ravensthorpe For that creates plant sulphuric

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show carbon green is compared comes from for SNNC of in And is the think nickel comes emissions. this of it the emissions ore terms just existing it is you low. I the can to that melts And and this it neutral to ratio XX% when also Caledonia New So technologies, methods.

is think process. there So on that we great actually this strengths

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take the even is to and know, for tried with and market come producers years but as fluctuate, into longer, the about have long term. to of off you So term much enter package lithium continuing have to suppliers three these

the new all on the they prices very lithium flexible, change for being market a continue demand. So, depending spot to really the market time are basis, on

lithium Another And is on used as the are use ore method also competitors, are technology. POSCOs by thing we for existing other we other in using mine production - lithium, materials, that technologies China. method such for lithium proprietary and PASCO

methodology, with keeping chloride, in the new using intensity saltwater. of of that For as we the kind much absorption brine, of an of very well, type lithium are is our production process

we the we the so switch and needs use according kinds conditions that of to have different the at And time. processes and

vaporization. to with we of I'm look lithium processes so to that question. it purity a optimal for that is for me come is And continue to to For don't if production of in we up with many I experiment But last can is processes for time question, recall I have But the please let production, sorry, brine lithium, missed different work at. know. very there takes terms it the a there us kinds have helpful production.

quarter. that mentioned last changed For hasn't the since our financial guidance, have it analysts

we were work first on This going consolidated the this to able - guidance. For We're revise second not our to in quarter. was quarter. the

Thank with can revised Thank update earnings you. you So July, guidance. much. provide very a for you call in we the forward on next

Operator

is question Keum Next Securities [indiscernible]

Unidentified Analyst

Hello, I'm from Securities. Keum

short to I think, going ask questions. I'm two time, given

First is regarding OP.

KRW actually a XXX you there's with compare a consolidated. basis [ph] XQ And its But consolidated about on billion sits So the if lower. KRWXXX billion. about Pembury

is then that you So about not if infrastructure, that see And quarter. increase of - in you the in there detail much there's performance KRWXXX. increase fourth so at first the look an of subsidiary, can green

seems it So billion. a - is KRWXXX like gap KRWXXX of there's billion

And you the how was a the second about some there treasury media is recognize that there's So coverage the the of Or payout? a cancellation question billion? is there shares, that stock of Why is kind Chairman. by is mentioned KRWXXX adjustments? actually of also about dividend gap because And the that.

So have in half, shares to you the cancel do any stock? or plans first treasury

Unidentified Company Representative

you much. Thank very

consolidated elaborate standalone little OP the So are can little there's that OP, a you a And gap, bit. about that different. a was bit

Unidentified Company Representative

Hello, I am Chon Jung-Son.

So is the spin-off March date Xst.

that the So income little income was And different. operating non-operating of gap. a the the accounting and explains bit method

communicated treasury that try by stock, our parts holding the of our the that to when sometime we are to shareholders, said best going so I think cancel this treasury this board cancellation so we're this transitioned end will of considering when option. discussion a year. we this promised we be shares decision we of the needed with end regarding our to shareholders, we further and and we at our And company, before to will So so year this believe of as the year, confirm

Operator

you. Thank

for no [Operator asked. analysts much that, Thank there good the are questions, believe like joining wrap and would you, first quarter So so with up that I POSCO and I you earnings to further bye. Thank all Instructions] there are call. us Holdings no further today. investors questions very

Chon Jung-Son	Representative Director & Senior Executive Vice President, Head of Corporate Strategy & Finance Center
Hyundai Motor	Investment Security

POSCO (PKX) 25 Apr 222022 Q1 Earnings call transcript