POSCO International announces 'Corporate and Shareholder Value-up Plan' to double shareholder return ratio to 50%

- Expands shareholder return ratio to 50% and adopt interim dividends, aiming to become South Korea's leading shareholder-friendly company

- Promote sustainable growth through the expansion of agro and energy business and the advancement of the business portfolio

SEOUL and INCHEON, South Korea, Dec. 22, 2024 /PRNewswire/ -- On December 23, POSCO International Corporation unveiled its 'Corporate and Shareholder Value-Up Plan', which includes key mid-to-long-term indicators and specific action plans to maximize corporate and shareholder value. Through this plan, the company aims to double its shareholder return ratio from current 25% to 50% starting from next year and establish itself as a leading shareholder-friendly corporation in South Korea while pursuing sustainable growth.

POSCO International had previously set a mid-term shareholder-friendly policy earlier this year with a shareholder return ratio of 25%. However, in this new plan, the company will significantly increase this to 50% from 2025 and introduce interim dividends, further strengthening its shareholder return policy. Moreover, POSCO International aims to achieve an average annual growth rate of at least 8% in pre-tax income and set a target for Return on Invested Capital (ROIC) that exceeds the Weighted Average Cost of Capital (WACC), currently at 8.0%. This is part of a strategy to continuously enhance corporate value while ensuring stable profitability.

The company has further strengthened its market dominance by aggressively expanding its energy and agro businesses. In its steel and mobility businesses, the company aims to maximize profitability through synergy creation in cooperation with the POSCO Group and to achieve stable profit growth by diversifying risk with complementary portfolios among its key businesses.

Since being incorporated into the POSCO Group in 2010, POSCO International has restructured its core business portfolios and achieved remarkable success by surpassing 1 trillion KRW in operating profit for the first time last year through large-scale M&As and proactive investments. Building on this foundation, the company plans to continue enhancing sustainable growth and profitability.

Furthermore, the plan includes measures to strengthen communication in line with the government's value-up program. By actively engaging in IR activities and implementing innovative IR strategies, the C-Level management aims to transparently share the company's mid-to-long-term strategic direction, pursuing trust-based sustainable growth.

A spokesperson from POSCO International stated, "Through this plan to simultaneously enhance shareholder and corporate value, we will leap forward as South Korea's leading shareholder-friendly company. We will continue to drive the growth of our key businesses and strengthen trust with our stakeholders."

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SOURCE POSCO International