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Posco Holdings to target 8 percent annual sales growth over next 3 years

Published: 23 Dec. 2024, 15:43

SARAH CHEA
[email protected]

Posco Holdings Chairman Chang In-hwa speaks at a press conference held in southern Seoul in March. [POSCO HOLDINGS]

Posco Holdings announced Monday that it would target up to 8 percent annual growth in sales over the next three years as part of its "value-up program" aimed at boosting corporate value.

The program also includes a 9 percent return on invested capital (ROIC) to expand shareholders' returns, with the growth to be driven by sustained investments in steelmaking and secondary battery materials.

ROIC is a financial term measuring how well a company uses its capital to generate income and profit.

Posco Holdings plans to focus its steelmaking investments on high-growth, high-margin regions to bolster product competitiveness.

In the secondary battery business, the company aims to proactively secure resources and innovate both products and process technologies. Posco Future M, its battery material and chemical subsidiary, is expected to play a central role in these efforts.

Additionally, the company will focus more on exploring new business opportunities to secure stable growth engines for the future.

To enhance shareholder value, Posco Holdings plans to repurchase 6 percent of its treasury shares over the next three years, completing the buyback by 2026. This follows the cancellation of 2 percent of its shares earlier this year.

The value-up program also includes plans to pay at least 2.3 trillion won ($1.6 billion) in dividends during this period.

Under its environmental, social and governance (ESG) framework, Posco Holdings has improved its processes for appointing independent directors and managing ESG risks at the corporate level. These measures aim to ensure robust governance and sustainable growth.

BY SARAH CHEA, YONHAP [[email protected]]