The figures in this document are consolidated earnings estimates

based on K-IFRS.

Please be advised that this document is provided solely for the purpose of investor convenience. It was prepared before the completion of external

auditor's review, and therefore is subject to change during this process.

3Q 2023 Earnings Release Summary

  • Amid widening economic uncertainties such as continued high interest rates and geopolitical risks, Samsung C&T has maintained a stable profitability momentum backed by its strong business competitiveness, posting KRW 11tn (YoY -0.3tn) in sales and KRW 830.4bn (YoY +33.6bn) in operating profit in 3Q23.
  • New orders reached KRW 15.6tn YTD with additional orders of KRW 1.2tn from housing business and others in 3Q23. Samsung C&T aims to meet its annual guidance of KRW 19.9tn by winning more orders from key products in 4Q23, such as domestic office buildings or overseas EPC projects.

[Key Financial Indicators]

(KRW)

2021

2022

3Q23

EBITDA1)

1.72tn (5.0%)2)

3.16tn (7.3%)

2.84tn (8.9%)

Total Debt

2.97tn

5.62tn

5.10tn

Debt/Equity (%)

66%

85%

69%

  1. (Cumulative) EBITDA : Operating profit + depreciation and amortization cost
  2. EBITDA margin : EBITDA / Sales

(KRW bn)

3Q23

2Q23

3Q22

YTD

YTD

Change

Change

(2023)

(2022)

Change

Sales

10,971

10,586

+385

11,256

(285)

31,796

32,514

(718)

E & C

5,282

4,751

+531

4,189

+1,093

14,632

10,567

+4,065

T & I

3,254

3,516

(262)

4,796

(1,542)

10,375

15,992

(5,617)

Fashion

456

524

(68)

471

(15)

1,506

1,459

+47

Leisure

219

225

(6)

227

(8)

568

534

+34

F & B*

726

704

+22

703

+23

2,094

1,926

+168

Biologics**

1,034

866

+168

870

+164

2,621

2,036

+585

Gross Profit

1,713

1,688

+25

1,744

(31)

4,910

4,394

+516

SG&A

883

916

(33)

947

(64)

2,667

2,500

+167

Operating Profit

830

772

+58

797

+33

2,243

1,894

+349

E & C

303

305

(2)

324

(21)

899

634

+265

T & I

89

114

(25)

59

+30

303

378

(75)

Fashion

33

57

(24)

29

+4

148

132

+16

Leisure

53

12

+41

48

+5

42

46

(4)

F & B*

40

37

+3

24

+16

106

72

+34

Biologics**

312

247

+65

313

(1)

745

632

+113

Non-Operating Profit

130

108

+22

175

(45)

458

741

(283)

Financial Profit

(5)

3

(8)

(115)

+110

35

(141)

+176

Equity Method Investment

32

40

(8)

17

+15

92

122

(30)

Pre-tax Profit

987

923

+64

874

+113

2,828

2,616

+212

Net Profit

701

695

+6

597

+104

2,148

1,879

+269

┗ Controlling

570

583

(13)

495

+75

1,831

1,571

+260

* F&B (Welstory) : 100% subsidiary, ** Bio (Biologics) : 43.06% subsidiary

(KRW bn)

3Q23

2Q23

3Q22

2023

Change

Change

YTD

Sales

5,282

4,751

+531

4,189

+1,093

14,632

Building

4,056

3,560

+496

3,078

+978

11,048

9,000

8,0007.7%

7,000

6,000

5,000 4,189

4,000

3,000

2,000

1,000

-

Sales

OP Margin

6.4%

4,751

10.0%

5.7%

5.0%

5,282

0.0%

-5.0%

-10.0%

Civil

336

236

+100

230

+106

830

Plant

768

805

846

(41)

+37

2,461

Domestic

2,572

2,547

+25

2,569

+3

7,654

Overseas

2,710

2,204

+506

1,620

+1,090

6,978

Gross Profit

493

489

+4

513

(20)

1,474

Operating

303

305

(2)

324

(21)

899

Profit

  • Total sales include figures falling under Other Sales

3Q222Q233Q23

  • E&C has maintained a solid earnings level backed by
    the increase in sales from overseas ongoing projects, etc.

√ New Orders

(KRW bn)

Category

3Q23

2023 YTD

3Q23 Backlog

Total

1,187

15,559

28,778

Building

1,112

15,080

19,398

Civil

39

319

2,627

Plant

36

160

6,753

Domestic

894

7,989

12,698

Overseas

293

7,570

16,078

  • 3Q23 major projects: Banpo the Palace 73 KRW 0.4tn
  • Total & Domestic include Leisure GSS (Green Space Solution, landscape) orders (New orders KRW 30.0bn, backlog KRW 110.7bn)

(KRW bn)

3Q23

2Q23

3Q22

2023

Change

Change

YTD

Sales

OP Margin

Sales

OP Margin

Sales

3,254

3,516

(262)

4,796

(1,542)

10,375

Chemicals

1,038

1,050

(12)

1,932

(894)

3,392

4,796

800

3.2%700

2.7% 600

10.9%

10.0%

6.1%

7.3%

524

0.0%

Steel

1,426

1,661

(235)

1,558

(132)

4,458

Energy

76

77

(1)

91

(15)

236

Materials

714

728

(14)

1,215

(501)

2,289

Gross Profit

253

289

(36)

297

(44)

797

Operating

89

114

(25)

59

+30

303

Profit

3,516

500

471

456

3,254

-10.0%

400

1.2%

300

-20.0%

200

-30.0%

100

-

-40.0%

3Q22

2Q23

3Q23

3Q22

2Q23

3Q23

  • KRW 8.6bn gain from the sale of US solar power development assets in 3Q (YTD Cumulative KRW 43.0bn)
    ※ Ontario wind power generation equity method gains KRW 2.7bn (YTD Cumulative KRW 35.1bn)

(KRW bn)

3Q23

2Q23

3Q22

2023

Change

Change

YTD

Sales

456

524

(68)

471

(15)

1,506

Operating

33

57

(24)

29

+4

148

Profit

  • Sales declined in QoQ mainly due to the decrease in steel trading volume, but the operating profit increased YoY thanks to improved profit generated from regional operation sites and trading business.
  • Sales dropped QoQ due to being off-peak season, but the improved performance of imported brands and business in China contributed to higher OP margin YoY.

(KRW bn)

3Q23

2Q23

3Q22

2023

Change

Change

YTD

Sales

219

225

(6)

227

(8)

568

2,700

Operating

53

12

+41

48

+5

42

Profit

(KRW bn)1,700

3Q23

2Q23

3Q22

2023

Change

Change

YTD

Sales

726

704

+22

703

+23

2,094

700

Operating

40

37

+3

24

+16

106

Profit

Sales

OP Margin

8,500

Sales

OP Margin

5.5%

24.2%25.0%

5.5%

5.3%

21.1%

7,500

703

704

726

20.0%

227

225

219

6,500

15.0%

3.4%

5,500

10.0%

5.3%

4,500

5.0%

3,500

. %

0.5%

3Q22

2Q23

3Q23

3Q22

2Q23

3Q23

* Welstory: 100% subsidiary

(KRW bn)

3Q23

2Q23

3Q22

2023

Change

Change

YTD

Sales

1,034

866

+168

870

+164

2,621

Operating

312

247

+65

313

(1)

745

Profit

* Biologics: 43.06% subsidiary, Bioepis: 100% subsidiary of Biologics

  • Leisure business saw a higher OP margin YoY on the back of the improved profitability driven by compelling park content and product value.
  • Profit rose both YoY and QoQ supported by expanding sales from food service for non- affiliate clients and food distribution business and efforts to improve the operational efficiency, etc.

Housing Business

  • Aim for growth in housing business by expanding urban

improvement/remodeling projects in blue-chip locations and

* Reconstruction/redevelopment

participating in stable development projects

  • Urban improvement/remodeling business will mainly target Seoul's key projects and also prime locations in Seoul metropolitan area and other provinces
  • Development business will promptly respond to shifting trends and diversify accordingly, such as own development project, urban mixed-use development, etc.
    • Discover business opportunities in overseas housing markets including
      South East Asia, Middle East, etc.
  • Strengthen the Raemian's competitiveness via "The Next Home"

Battery Recycling

  • Plan to preoccupy the battery recycling market by establishing a recycling closed loop
  • The pre-treatment plant will be constructed in Germany (targeted for operation in 2025); total four plants are to be built in Europe by 2027 and
    the construction/operation of post-treatment plant will be reviewed afterwards
  • C&T is currently operating a trading business for waste battery material and battery powder and will seize additional business opportunities in major recycling markets (e.g. USA) by enlarging the sourcing pool

[Recycling business operation structure in Europe]

Nickel, Cobalt (closed loop)

  • Customized space design according to each individual customer's lifestyle
    • Apply Next rahmen structure, Infill system (modular, versatile wall, etc.)
  • Launched the next-gen home platform, "Homeniq" and plans to strengthen
    • Launched in August 31 (Banpo One Bailey)

the competitiveness by expanding soft business

Battery/EV

manufacturer

Reuse company

Defective products,

Pre-treatment plants

waste batteries

in Europe

(Germany, Spain, etc.)

★Review the mid- to long-term execution (Establish the closed loop within the region)

Post-treatment plants in Korea

Post-treatment plants in Europe (2027 onwards)

Bio

□ Raising an additional fund for Life Science venture CVC

□ Continue to invest in promising firms with advanced technologies

*Total KRW 72bn (C&T KRW 49.9bn)

and in production plants to secure next-gen ADC capabilities

- Aim for preemptive response to the latest trend and changing demands

in the life science sector as well as discovering new business opportunities

- Invested in Aimedbio, a domestic ADC developer, using CVC fund (Sept. 2023)

* Collaboration such as joint research for ADC toolbox development is planned

  • Biologics is carrying out the ADC-exclusive production plant project; commercial production is scheduled to begin within 2024

(KRW bn)

3Q23

2Q23

End of 2022

Change

Change

Assets

62,484

62,833

(349)

58,981

+3,503

Current

19,069

18,482

+587

20,313

(1,244)

┗ C&CE*

5,069

5,193

(124)

6,829

(1,760)

Non-current

43,415

44,351

(936)

38,668

+4,747

Liabilities

25,540

25,896

(356)

27,017

(1,477)

Current

15,141

14,448

+693

16,413

(1,272)

Non-current

10,399

11,448

(1,049)

10,604

(205)

※ Total debt

5,097

5,444

(347)

5,615

(518)

Equity

36,944

36,937

+7

31,964

+4,980

Controlling

31,457

31,471

(14)

26,681

+4,776

Non-controlling

5,487

5,466

+21

5,283

+204

Debt/Equity (%)

69%

70%

(1%p)

85%

(16%p)

* C&CE: Cash and cash equivalents + short-term financial instruments, etc.

(KRW bn)

3Q23

2Q23

2022

Cash (Beginning of period)

3,337

4,950

2,255

Cash flows from operating activities

+308

+380

+2,618

Net profit

+701

+694

+2,545

Changes in operating assets and liabilities

(831)

(855)

(576)

Others

+438

+541

+649

Cash flows from investing activities

(128)

(1,005)

(3,196)

Changes in tangible/intangible assets

(216)

(220)

(1,207)

Changes in equities

+253

(1,090)

(977)

Others

(165)

+305

(1,012)

Cash flows from financing activities

(412)

(988)

+2,523

Changes in borrowings

(353)

(586)

+1,654

Others

(59)

(402)

+869

Increase in cash

(232)

(1,613)

+1,945

Cash (End of period)

3,105

3,337

4,200

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

Samsung C&T Corporation published this content on 25 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 October 2023 07:50:36 UTC.