POSCO : 2021.2Q Earnings Release

2021 2Q Earnings Release

July 22, 2021

Disclaimer

This presentation was prepared and circulated to release the informations regarding the company's business performance to shareholders and investors prior to the completion of auditing for the period of the second quarter of 2021. As figures in this presentation are based on unaudited financial statements, certain contents may be subject to modification in the course of auditing process.

This presentation contains certain forward-looking statements relating to the business, financial performance and results of the company and/or the industry in which it operates. The forward-looking statements set forth herein concern future circumstances and results and other statements that not historical facts, and are solely opinions and forecasts which are uncertain and subject to risks. Therefore, the recipients of this presentation shall be aware of that the forward-looking statements set forth herein may not correspond to the actual business performance of the company due to changes and risks in business environments and conditions.

The sole purpose of this presentation is to assist persons in deciding whether they wish to proceed with certain investments to the company. The company does not make any representation or warranty, expressly or impliedly, as to the accuracy and completeness of this presentation or of the information contained herein and shall not have any liability for the informations contained in this presentation.

2Q21 Earnings Release │ Jul 22, 2021

Contents

2Q 2021 Earnings Release

• Business Performance (Parent/Consolidated)
• Financial Structure
• Subsidiary Performance

Major Business Strategies

• Global Steel Business Strategies
• 2021 Safety Management Enhancement Strategies
• Technology Development Plan to Reach Net Zero

2021 Business Outlook

Appendix

2Q21 Earnings Release │ Jul 22, 2021

Business Performance_Sales/Production(Parent)

Sales

				QoQ
(thousand tons, %)
Sales Volume		8,812	8,999	+187
7,762
Domestic	57.4	59.9	+2.5%p
54.5
Sales Ratio
WTP		32.5	32.2	△0.3%p
Sales Ratio*	23.8
	2Q20	1Q21	2Q21
*Un-ordered and semi-product figure excluded in total sales volume

• Sales volume and domestic portion increased as domestic sales, mostly from HR and Plate, expanded
• Sales volume (QoQ, k tons) : HR +256, Plate+57, CR/Coated △117, etc

[WTP Sales Volume(k tons)]

	2,728	2,768	+40
1,711
WTP
2Q20	1Q21	2Q21	QoQ

Production

				QoQ
Utilization Rate*	77.0%	95.3%	93.2%	△2.1%p
(thousand tons)		9,559	9,448	△111
Crude Steel
	7,793	8,920	9,018	+98
Product	7,852

2Q20 1Q21 2Q21

• Utilization rate : Crude Steel Production / Crude Steel Capacity

• Product production went up in an effort to meet the demand, while crude steel production lowered due to maintenance
• • Production(QoQ, k tons) : HR +252, Plate+106, CR/Coated △229, etc
  • • Major maintenance : [Pohang] 3 FINEX(5 days), 2CAL (15 days), etc. [Gwangyang] No.1, 2, 4 BF wall repair, CR #2 (18 days), etc

[Carbon Steel/STS Production Volume]

(k tons)	2Q20	1Q21	2Q21	QoQ
Carbon Steel	7,460	8,432	8,543	+111
STS	392	488	475	△13

2Q21 Earnings Release │ Jul 22, 2021 4

Business Performance_Parent/Consolidated

Parent

(billion KRW)	QoQ

			9,277	+1,477
Revenue		7,800
	5,885		1,608	+535
		1,073	17.3%	+3.5%p
Operating		13.8%
Profit	△1.8%
OP Margin	△108
	2Q20	1Q21	2Q21

• Reached the highest OP level since 3Q10, led by price and sales volume increase, despite raw material price hike

【Operating Profit】	Sales volume
	Price uptrend	increase
	+25	△755
		(billion KRW)
+1,265		Production decline,	1,608
1,073		raw material cost
	hike , etc
	1Q21			2Q21

• Sales price (carbon steel, thousand won/t) : 1Q21) 763 → 2Q21) 901 (+138)
• 2Q Rawmaterialappliedcost('1Q21price=100): Ironore122,cokingcoal115

Consolidated

(billion KRW)QoQ

Revenue		16,069	18,293	+2,224
13,722
			2,201	+649
		1,552	12.0%	+2.3%p
Operating		9.7%
Profit
OP Margin 1.2%168
	2Q20	1Q21	2Q21

• Consolidated OP recorded 2.2 trillion KRW as both domestic and overseas steel businesses, including POSCO and PT.KP, outperformed

【Aggregated Operating Profit】

	(billion KRW)	2Q20	1Q21	2Q21
	QoQ
Steel	△197	1,334	2,048	+714
	Overseas (U$ m)	△77	212	353	+141
Global & Infra.	282	347	286	△61
New Growth	△10	43	44	+1

2Q21 Earnings Release │ Jul 22, 2021 5