Slides
Page 1
Hyundai Steel 2Q ‘26 Financial Results 2026.08.03
Page 2
2 Disclaimer Accounting figures contained in the following presentation have been prepared by Hyundai Steel Company (hereafter ‘the Company’) only for the convenience of investors. Figures provided in this presentation are based on the unaudited financial statements of the Company. Certain content in this presentation may be subject to change during the auditing process. Figures contained herein are based on K-IFRS standards.
Page 3
5 6 7 9 11 Ⅰ. 2Q 2026 Financial Results - Financial Results (consolidated) - Financial Structure (consolidated) - Financial Results (non-consolidated) Ⅱ. Key Activities & Market Outlook - Key Activities - Market Outlook ※ Appendix Contents
Page 4
Ⅰ. 2Q 2026 Financial Results
Page 5
5 Financial Results (Consolidated) · Higher sales volumes and Key product prices lifted revenue and operating profit '25.2Q '25.3Q '25.4Q '26.1Q '26.2Q Operating Profit OPM 1.7% 1.6% 0.8% 0.3% 0.9% 4,680 4,533 4,298 4,474 4,838 1,266 1,202 1,192 1,265 1,269 '25.2Q '25.3Q '25.4Q '26.1Q '26.2Q Standalone 5,946 102 16 5,734 5,490 93 43 Income Statements Revenue / OP Trends ’25.4Q ’26.2Q QoQ Revenue 5,740 6,107 +368 Standalone 4,474 4,838 +364 Subsidiaries 1,265 1,269 +4 Operating Profit 16 58 +42 % 0.3% 0.9% +0.6%p Net Profit -39 12 +51 % -0.7% 0.2% +0.9%p (Unit : KRW bn) ○ Revenue ○ Operating Profit 5,740 (Unit : KRW bn) (Unit : KRW bn) 6,107 58
Page 6
6 Financial Status (Consolidated) FY 2025 ’26.2Q vs Year End Total Assets 34,442 35,766 +1,324 Cash & Cash Equiv. 2,298 2,649 +351 Total Liabilities 14,602 15,398 +796 Debt 9,262 10,163 +901 Shareholder’s Equity 19,840 20,367 +527 Liability to Equity 73.6% 75.6% +2.0%p Current Ratio 152.7% 162.4% +9.7%p · Enhancing financial stability through working capital management amid new investments, including the U.S. EAF mill 8,385 7,296 7,582 6,964 7,514 3,144 2,388 2,156 2,298 2,649 '22 '23 '24 '25 '26.2Q Net Debt Cash & Cash Equiv. (Unit : KRW bn) 92.4% 80.6% 79.7% 73.6% 75.6% '22 '23 '24 '25 '26.2Q (Unit : %) 9,7389,684 11,529 10,1639,262 (Unit : KRW bn) ○ Debt ○ L/E Ratio Debt & Liability to Equity Ratio TrendFinancial Statements
Page 7
7 7,133 6,065 6,400 6,099 6,627 2,845 2,197 1,874 1,972 2,329 '22 '23 '24 '25 '26.2Q Net Debt 911 980 1,091 981 242 121 229 508 424 995 '22 '23 '24 '25 '26.1H Maintaining, etc. Strategy ’26.1Q ’26.2Q QoQ Revenue 4,474 4,838 +364 Flat 3,182 3,347 +165 Long 1,293 1,491 +198 Operating Profit -73 11 +84 ’26.1Q ’26.2Q QoQ Flat 2,978 3,021 +43 Auto 1,196 1,275 +79 Long 1,285 1,400 +114 Total 4,263 4,421 +158 Financial Results (Non-consolidated) · Turned to an operating profit on increased sales of high-value-added products, higher selling prices and cost reductions 3,111 3,053 2,734 2,978 3,021 1,415 1,293 1,297 1,285 1,400 '25.2Q '25.3Q '25.4Q '26.1Q '26.2Q Flat Long 4,526 4,2634,346 4,031 8,2748,262 9,978 8,071 1,599 1,2081,031 1,405 8,956 1,237 -0.2% 1.0% 2.5% -1.6% 0.2% -8 47 106 -73 11 '25.2Q '25.3Q '25.4Q '26.1Q '26.2Q Sales Volume Operating Profit Debt / Capex (Unit : KRW bn)(Unit: kt) (Unit : KRW bn) (Unit : KRW bn) (Unit : KRW bn) ○ Debt ○ Capex (Unit: kt) 4,421
Page 8
Ⅱ. Key Activities & Market Outlook
Page 9
9 AI Steel Solutions Leader Expanding Energy Materials Portfolio Key Activities · Enhancing Profitability by expanding sales to AI and Energy Industry ○ NewDemandfrom Korea’s three Mega Projects - Early completion of Semiconductor fabs & added investment (Southwest region KRW800trillionetc.) ㆍPortfolio to match all steel used in Fab (rebar, steel shapes, Plates, HRC) - Large-scale data center development (1st8.4GW(550trill, ~2029), 2ndphase10GW(~2035)) ㆍ7 data center orders by strengthening order winning capabilities(managing TFT**) - Pre-emptive power grid expansion to power AI growth ㆍIncrease sales by capitalizing on strengths in energy steel, ESS materials, and transmission tower products. ※ Competitive moats through patents on materials (transmission tower angles etc.) ○ Pipe Certification for high pressure Hydrogen - Expansion of Hydrogen infrastructure as supply chains become increasingly diversified - RINA-CSM certification* for 100-bar hydrogen pipeline(’26.03) ㆍPreviously gained certification for 80-bar products(Mar. 2025) - Strengthen competitiveness in bidding for domestic & overseas projects * RINA Consulting (Italy) - Centro SviluppoMaterialiS.p.A. * Source: Ministry of Trade, Industry and Energy (MOTIE) ** Next-Generation Power Infrastructure Sales Task Force (TFT)) ○ Developing heavy plates for next-generation nuclear plant - Growing energy demand & supply risk by renewable energy are driving demand for next-generation* nuclear power(SMRs) - Development and mass production of nuclear containment vessels by 2025 - Samples by 3Q 2026, expand sales of high value addedproducts * Next-generation: Enhanced modular structure and reliability ** SMR : Small Modular Reactor [Next-generation] Nuclear Containment Vessel ※ AI generated image Semiconductor Fab AI Data Center Transmission Tower Flat H Beams Rebar H beams Flats Rebar Angle H. Plate Pipe Supply of Key Steel Materials for AI Infrastructure
Page 10
10 Localization of High Value - added Materials Sustainable Competitiveness Key Activities ○ WSA* sustainability champion for 2 consecutive years - Recognized for innovation and sustainability achievements, including the development of 1.8GPa ultra-high-strength hot stamping steel and advancements in resource recycling - Demonstrated global competitiveness in eco-friendly and carbon-reduction tech by meeting climate, environmental, and ESG requirements - Leading the development of a sustainable steel ecosystem ○ High-Durability Steel used in Next-Generation Hybrid Transmissions’ Gear - Growing demand for high-strength, high-durability gears driven by hybrid vehicle growth and higher-torque systems - Develop new steel grade with enhanced durability and superior cost competitiveness versus imported products - Expanding vehicle applications to drive profitability growth [Hybrid Engine & Rear Gear] ○ Development of High-Strength Crane Rail - Developed 1.1GPa high-strength crane rails to replace imports · Achieved comparable mechanical properties and weldability to imported products - Driving profitability through import substitution in ports and steel mills ○ Joint research of CCUS Technology with Hyundai E&C - Advancing CO₂ capture technology to address growing decarbonization requirements ㆍDeveloping capture solutions utilizing emissions from steelmaking processes - Enhance competitiveness of low-carbon steel products and strengthening the foundation for carbon neutrality [CO₂ Capture Demonstration Unit] · Creating New Demand through High Value-Added Materials and Sustainability [WSA Sustainability Champion] [Crane Rail] * World Steel Association
Page 11
11 355 330 359 335 367 354 397 409 300 350 400 450 500 25/3/1 25/6/1 25/9/1 25/12/1 26/3/1 26/6/1 436 (7/28) 1,090 1,100 1,095 1,080 1,140 892 918 923 922 922 949 850 950 1,050 1,150 1,250 196 182 192 183 197 250 221 245 96 94 106 108 100 112 104 80 120 160 200 240 280 25/3/1 25/6/1 25/9/1 25/12/1 26/3/1 26/6/1 Market Outlook (Unit: USD/t) · HRC : Prices rose as declining low-cost imports and scheduled maintenance tightened supply · Coal : Prices softened on weak demand and rising supply Iron : Slight price weakness amid sluggish demand (Unit: KRW thousand/t) · Long : Prices rose on continued exports, supply adjustments by mills, and higher raw material costs · Scrap : Prices edged down as higher scrap inventories at mills eased purchasing competition [ HRC(SS275) Distribution Price ] [ Coking Coal Price (FOB) ] (Unit: KRW thousand/t) (Unit: KRW thousand/t)[ Domestic Scrap (Mid-weight A) Price ] · Product prices trending upward on improving supply-demand and cost pass-through · Flat raw materials – Prices turned weaker amid slowing demand and stable supply Scrap – Prices turned slightly weaker as purchasing competition eased Flat Long [ Iron Ore Price (CFR) ] [ Rebar Price to Construction (SD400) ] [ Domestic H Beam Distribution Price ] * Source : Platts, Steel Daily * Source : Steel Daily 810 800 830 830 820 830 960 750 850 950 1,050 960 (7/31) 98 (7/30) 217 (7/30) 1,002 (7/31) 1,220 (7/31)
Page 12
Appendix
Page 13
13 (Unit : KRW Bn) QoQ YoY Revenue 5,946 5,740 6,107 368 162 Gross Profit 412 353 379 26 -33 Operating Profit 102 16 58 42 -44 OP Margin 1.7% 0.3% 0.9% 0.7%p -0.8%p Gain/Loss (Financial, etc.) -96 -48 -58 -11 38 Pretax Profit 6 -32 -1 31 -6 Net Profit 37 -39 12 51 -25 Net Profit Margin 0.6% -0.7% 0.2% 0.9%p -0.4%p 2025.2Q 2026.2Q2026.1Q Financial Summary _ P/L
Page 14
14 (Unit : KRW Bn) Total Assets 34,442 100.0% 35,766 100.0% Current Assets 11,318 32.9% 11,553 32.3% (Cash & Cash Equiv.) 2,298 6.7% 2,649 7.4% Non-Current Assets 23,125 67.1% 24,213 67.7% Total Liabilities 14,602 42.4% 15,398 43.1% Current Liabilities 7,411 21.5% 7,112 19.9% Non-Current Liabilities 7,192 20.9% 8,287 23.2% (Interest-bearing Debt) 9,262 26.9% 10,163 28.4% Shareholder's Equity 19,840 57.6% 20,367 56.9% Capital Stock 667 1.9% 667 1.9% Liability to Equity 73.6% 75.6% Current Ratio 152.7% 162.4% 2025 2026.2Q Financial Summary _ B/S
Page 15
15 (Unit : KRW Bn) QoQ YoY Revenue 4,680 4,474 4,838 363 158 Gross Profit 237 194 264 70 27 Operating Profit -7 -72 11 84 19 OP Margin -0.2% -1.6% 0.2% 1.9%p 0.4%p Gain/Loss (Financial, etc.) -55 24 -44 -67 11 Pretax Profit -62 -49 -32 16 30 Net Profit -18 -23 -19 5 -1 Net Profit Margin -0.4% -0.5% -0.4% 0.1%p -0.0%p 2025.2Q 2026.2Q2026.1Q Financial Summary _ P/L
Page 16
16 (Unit: KRW Bn) Total Assets 31,455 100.0% 32,715 100.0% Current Assets 8,794 28.0% 8,980 27.4% (Cash & Cash Equiv.) 1,972 6.3% 2,329 7.1% Non-Current Assets 22,661 72.0% 23,735 72.6% Total Liabilities 12,488 39.7% 13,340 40.8% Current Liabilities 5,799 18.4% 5,515 16.9% Non-Current Liabilities 6,689 21.3% 7,825 23.9% (Interest-bearing Debt) 8,071 25.7% 8,956 27.4% Shareholder's Equity 18,967 60.3% 19,376 59.2% Capital Stock 667 2.1% 667 2.0% Liability to Equity 65.8% 68.8% Current Ratio 151.7% 162.8% 2025 2026. 2Q Financial Summary _ B/S