POSCO : 2Q 2022 Dividend and Cancellation of Treasury Shares Merger of POSCO International & POSCO Energy - Form 6-K
08/12/2022 | 01:15pm EDT
POSCO HOLDINGS 2Q 2022 Dividend and Cancellation of Treasury Shares Merger of POSCO International & POSCO Energy
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2Q Dividend & Treasury Shares Cancellation Announcement ? 2Q 2022 Cash Dividend : KRW 4,000 per share 2020 2021 2022 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Dividend per share 1,500 500 1,500 4,500 3,000 4,000 5,000 5,000 4,000 4,000 (KRW) Total dividend amount 120.2 39.9 117.7 342.6 226.9 302.5 378.1 378.1 303.4 303.4 (bn KRW) ? Cancellation of Treasury Shares (3% of outstanding shares) -2,615,605 shares (KRW 672.2bn on market value* / KRW 567.5bn on book value) *Market value: W257k/share, 11 Aug 2022 ? Since 2020, Total Shareholders Return amounts to KRW 3.1tr by Cash Dividend and Treasury Share Cancellation -25% of adjusted profit attributable to owners of the controlling company(consolidated basis) from 2020 to 1H 2022 Cancellation Amount (in trillion KRW) Dividend Amount (in trillion KRW) 0.6 1.3 0.6 0.6 FY2020FY20211H 2022
Merger of POSCO International & POSCO Energy Outline of the Merger POSCO International will offer new shares and exchange with existing shares held by POSCO Energy, under a Method statutory merger of POSCO International to buy POSCO Energy -Remaining company: POSCO International -Extinguished company : POSCO Energy 1 common share of POSCO Energy will receive 1.1626920 shares of POSCO International, Merger After merger, POSCO HOLDINGSs stake of POSCO International will be increased from 62.9% to 70.7% Ratio -Based on merger unit price of POSCO International KRW 27,801 and POSCO Energy KRW 32,324, merger ratio will be 1 : 1.1626920 POSCO International will lead the group energy business to complete of LNG Value Chain and strengthen growth Change in Shareholder Structure Issuedshares 123,375,149 45,194,806 175,922,788 Major POSCOHoldings62.9% POSCO Holdings89.0% POSCO Holdings70.7% Shareholder
Merger of POSCO International & POSCO Energy Purpose of the Merger Respond to LNG demand growth Integrate operation of LNG business in group Expedite eco-friendly energy business +416 Concentrate group business capability inpreparation for global LNG demand 777 -With increasing electricity demand and growing renewable energy market, 361 LNG demand, as bridge energy, is growing at an average annual rate of 2.6% -Out of demand increase of 416 mn tons in 2050, 75% is concentrated in Asian region 20 50 (311 mn tons) *IHS Markit, 2021 In group, LNG business is divided into upstream led by POSCO International and downstream led by POSCO Energy Overlapping businesses includeLNG trading, bunkering, overseas IPP, new and renewable energy, hydrogen By completion of group-wide LNG Value Chain, raise synergy between upstream and downstream businesses and streamline overlapping functions Prepare for transition to hydrogen-based reduction ironmaking and growth of mid-to long-term renewable energy -Build ammonia storage infrastructure in steps to domestically supply hydrogen-Expand hydrogen blending and renewable energy businesses for groups carbon neutrality 510k ? 100k ? (10 units) Ammonia Storage Tank-(2 units) 2.4GW 0.7 0.1 Solar Wind Renewable Energy _21 _26 _30
Merger of POSCO International & POSCO Energy Expected Outcomes Upstream Gasfield Increase Senex output Develop new mining field assets Raise synergy across businesses and strengthen global competitiveness through completion of LNG Value Chain _ LNGBusiness Value Chain Midstream Downstream _ Expand LNG Midstream Export Terminal LNG Carrier Strengthen value chain on securing infrastructure asset -Export terminal, dedicated carrier, etc. Trading Expand captive-based LNG trading volume Secure raw material competitiveness Diversify power LNG Power generation portfolio Generation Expand business linked Test Operation with LNG infrastructure Import Terminal (storage facility) of LNG Carrier Increase capacityof Enter new businesses LNG import terminal -Bunkering, SSLNG1), etc. Bunkering, etc. 1) SSLNG(Small Scale LNG) : Supply small and medium-sized LNG using specialized trucks in islands and mountainous areas where installation of natural gas infrastructure is difficult Strengthen profitability and contribute to group synergy through integration and expansion of LNG business
POSCO Holdings Inc. published this content on 12 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 August 2022 17:14:02 UTC.