POSCO Holdings Achieves Up to 8% Sales Growth Rate Over 3 Years

Value-Up Program Unveiled
'Steel, Battery Materials + Promising New Business Discovery'
6% Total Treasury Stock Cancellation Over 3 Years

POSCO Holdings is reorganizing into a '2 Core + New Engine' business structure, focusing on steel and secondary battery materials while discovering future promising new businesses. Additionally, it plans to achieve a sales growth rate of 6-8% over the next three years.

POSCO Holdings announced this corporate value enhancement plan (Value-Up Program) on the 23rd.

First, it will actively invest in future growth over the next three years. Through efficient invested capital management, it aims to achieve a sales growth rate of 6-8% and an ROIC (Return on Invested Capital) of 6-9%, while enhancing corporate value through continuous shareholder return policies and governance innovation.

To achieve the 6-8% sales growth rate, POSCO Holdings plans to expand investments focused on high-growth and high-profit regions in steel and strengthen product competitiveness. In the secondary battery materials business, it will secure high-quality resources proactively and enhance business competitiveness through product and process technological innovation.

Furthermore, by discovering and promoting new businesses centered on domains aligned with group value, strategy suitability, and business growth potential, it will establish a foundation for sustainable growth. To improve group ROIC, it will restructure 'low ROIC' assets and businesses and promote capital efficiency through growth investments focused on 'high ROIC' areas.

To implement the '2 Core + New Engine' portfolio, the group will apply the ROIC indicator, which simultaneously evaluates profitability and invested capital for each business unit, not only in restructuring but also in future business management, thereby enhancing corporate value with a focus on profitability.

POSCO Holdings plans to balance shareholder value enhancement through corporate growth with shareholder returns via treasury stock cancellation and basic dividends.

According to the mid-term treasury stock cancellation plan announced last July, POSCO Holdings will cancel a total of 6% of its treasury stock holdings over three years. The dividend policy maintains a basic dividend of 10,000 KRW per share, funded by 50-60% of separate free cash flow, with additional payments if residual funds remain, aiming for a minimum dividend payout of 2.3 trillion KRW.

This year, 2% of the existing treasury stock has already been canceled, and an additional 100 billion KRW worth of treasury stock was newly purchased and canceled. The cash dividend for this year has been paid at 7,500 KRW per share up to the third quarter.

This content was produced with the assistance of AI translation services.