POSCO : 2021.3Q Earnings Release

2021 3Q Earnings Release

Oct 25, 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 third 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.

3Q21 Earnings Release │ Oct 25, 2021

Contents

3Q 2021 Earnings Release

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

2021 Business Outlook

Appendix

3Q21 Earnings Release │ Oct 25, 2021

Business Performance_Sales/Production(Parent)

Sales

				QoQ
(thousand tons, %)
		8,999	9,022	+23
Sales Volume	8,894
	61.2
		59.9	+1.3%p
Domestic	53.6
Sales Ratio
WTP		32.2	32.3	+0.1%p
25.2
Sales Ratio*
	3Q20	2Q21	3Q21

*Un-ordered and semi-product figure excluded in total sales volume

• As domestic demand held strong, sales volume increased from CR and coated products, and domestic M/S expanded
• Sales volume (QoQ, k tons) : HR △76, Plate △34, CR/Coated+129, etc

[WTP Sales Volume(k tons)]

	2,768	2,797	+29
2,142
WTP
3Q20	2Q21	3Q21	QoQ

Production

				QoQ
Utilization Rate*	92.9%	93.2%	94.6%	+1.4%p
(thousand tons)			9,703	+255
Crude Steel	9,498
9,448
		9,018	9,113	+95
Product	8,903

3Q20 2Q21 3Q21

* Utilization rate : Crude Steel Production / Crude Steel Capacity

• Crude steel production went up as major maintenance completed in 2Q, and product production increased to meet the demand from CR and coated products

• Product production (QoQ, k tons) : HR △72, CR/Coated+164

[Carbon Steel/STS Production Volume]

(k tons)	'20.3Q	'21.2Q	'21.3Q	QoQ
Carbon Steel	8,478	8,545	8,592	+47
STS	425	473	521	+48

3Q21 Earnings Release │ Oct 25, 2021 4

Business Performance_Parent/Consolidated

Parent

(billion KRW)	QoQ

			11,315	+2,038
Revenue
	9,277
	6,578		2,296	+688
Operating		1,608	20.3%	+3.0%p
4.0%	17.3%
Profit
OP Margin	262
	3Q20	2Q21	3Q21

• Rewrote the highest quarterly operating profit record due to price hike, despite increased raw material cost

【Operating Profit】	Production/sale
	Productprice	volume increase	△1,208	(billion KRW)
	increase	+59
+1,837		Costincreasefrom	2,296
1,608		laborandrawmaterials,
	etc
	'21.2Q			'21.3Q

• Sales price (carbon steel, thousand won/t) : 2Q21) 901 → 3Q21) 1,097 (+196)
• 3Q Rawmaterialappliedcost(2Q21price=100): Ironore117,cokingcoal136

Consolidated

(billion KRW)QoQ

		18,292	20,637	+2,345
Revenue
14,261
			3,117	+916
		2,201	15.1%	+3.1%p
Operating		12.0%
667
Profit
4.7%
OP Margin
	3Q20	2Q21	3Q21

• Recorded highest quarterly result, backed by continuing steel market uptrend from home and abroad, and stable profit from Global Infrastructure division

【Aggregated Operating Profit】

	(billion KRW)	'20.3Q	'21.2Q	'21.3Q
	QoQ
Steel	345	2,048	2,916	+873
	Overseas (U$ m)	70	353	452	+99
Global & Infra.	304	286	355	+69
New Growth	18	34	29	△5

3Q21 Earnings Release │ Oct 25, 2021 5