POSCO Holdings announced on the 23rd that it aims to achieve a revenue growth rate of 6 to 8% and a return on invested capital (ROIC) of 6 to 9% over the next three years. The return on invested capital refers to operating profit relative to the assets invested in business activities. It also indicated plans to retire a total of 6% of its own shares and to distribute a minimum of 2.3 trillion won in dividends over the next three years.

On the same day, POSCO Holdings announced its corporate value enhancement plan (value-up program). To achieve the revenue growth rate, POSCO Holdings plans to expand investments in high-growth and high-profit regions within the steel sector while enhancing competitiveness through product and process innovation in the secondary battery materials sector.

POSCO logo. /Courtesy of POSCO

POSCO Holdings is implementing the '2Core+New Engine' strategy, focusing on steel and secondary battery materials while identifying future promising businesses. It plans to enhance corporate value by utilizing the ROIC metric to evaluate profitability and capital input simultaneously across different units within the group.

According to the medium-term share retirement plan announced in July, POSCO Holdings will retire a total of 6% of its shares over the next three years starting this year. Additionally, after distributing a basic dividend of 10,000 won per share using 50 to 60% of its standalone free cash flow, it plans to distribute the remaining funds for a minimum total of 2.3 trillion won in dividends.

This year, POSCO Holdings retired 2% of its own shares and newly repurchased and retired shares worth 100 billion won. By the third quarter of this year, it paid out cash dividends of 7,500 won per share.