POSCO : Non-consolidated 2021 - 1Q Audit Report

POSCO

Condensed Separate Interim Financial Statements (Unaudited)

March 31, 2021

(With Independent Auditors' Review Report Thereon)

Table of Contents
	Page
Independent Auditors' Review Report ................................................................................	1
Condensed Separate Interim Financial Statements
Condensed Separate Interim Statements of Financial Position ..............................................	3
Condensed Separate Interim Statements of Comprehensive Income ...................................	5
Condensed Separate Interim Statements of Changes in Equity.............................................	6
Condensed Separate Interim Statements of Cash Flows .......................................................	7
Notes to the Condensed Separate Interim Financial Statements...........................................	9

Independent Auditors' Review Report

Based on a report originally issued in Korean

The Board of Directors and Shareholders

POSCO:

Reviewed financial statements

We have reviewed the accompanying condensed separate interim financial statements of POSCO (the "Company"), which comprise the condensed separate interim statement of financial position as of March 31, 2021, the condensed separate interim statements of comprehensive income, changes in equity and cash flows for the three-month periods ended March 31, 2021 and 2020, and notes, comprising a summary of significant accounting policies and other explanatory information.

Management's responsibility

Management is responsible for the preparation and fair presentation of these condensed separate interim financial statements in accordance with Korean International Financial Reporting Standard ("K-IFRS") No. 1034 "Interim Financial Reporting". The Company's management is also responsible for the internal controls determined necessary to prepare condensed separate interim financial statements free of material misstatements due to error or fraud.

Auditor's review responsibility

Our responsibility is to issue a report on the condensed separate interim financial statements based on our reviews.

We conducted our reviews in accordance with the Review Standards for Quarterly and Semiannual Financial Statements established by the Securities and Futures Commission of the Republic of Korea. A review of interim financial statements consists of making inquiries primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Korean Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our reviews, nothing has come to our attention that causes us to believe that the accompanying condensed separate interim financial statements referred to above are not prepared, in all material respects, in accordance with K-IFRS No. 1034 "Interim Financial Reporting".

Other matters

The procedures and practices utilized in the Republic of Korea to review such condensed separate interim financial statements may differ from those generally accepted and applied in other countries.

The separate statement of financial position of the Company as of December 31, 2020, and the related separate statements of comprehensive income, changes in equity and cash flows for the year then ended, which are not accompanying this report, were audited by us in accordance with Korean Standards on Auditing and our report thereon, dated March 4, 2021, expressed an unqualified opinion. The accompanying condensed separate statement of financial position of the Company as of December 31, 2020, presented for comparative purposes, is consistent, in all material respect, with the audited separate financial statements from which it has been derived.

Seoul, Korea

May 14, 2021

This report is effective as of May 14, 2021, the review report date. Certain subsequent events or circumstances, which may occur between the review report date and the time of reading this report, could have a material impact on the accompanying condensed separate interim financial statements. Accordingly, the readers of the review report should understand that the above review report has not been updated to reflect the impact of such subsequent events or circumstances, if any.

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POSCO

Condensed Separate Interim Statements of Financial Position As of March 31, 2021 and December 31, 2020

(Unaudited)

(in millions of Won)				March 31,		December 31,
	Notes			2021	2020
Assets
Cash and cash equivalents	20	W	1,828,883	1,822,660
Trade accounts and notes receivable, net	4,14,20,25,32			4,106,907	3,693,535
Other receivables, net	5,20,32			472,246	279,555
Other short-term financial assets	6,20			9,133,419	9,607,632
Inventories	7,29			4,758,851	4,093,829
Assets held for sale	8			46,149	32,244
Other current assets	13			51,333		50,498
Total current assets				20,397,788		19,579,953
Long-term trade accounts and notes receivable, net	4,20			2,408	2,456
Other receivables, net	5,20			86,491	84,037
Other long-term financial assets	6,20			1,190,314	1,072,817
Investments in subsidiaries, associates
and joint ventures	9			15,609,637	14,883,152
Investment property, net	10			149,435	149,617
Property, plant and equipment, net	11			20,078,792	20,216,932
Intangible assets, net	12			590,373	621,926
Defined benefit assets, net	18			60,966	76,501
Other non-current assets	13			99,110		107,578
Total non-current assets				37,867,526		37,215,016
Total assets		W	58,265,314	56,794,969

See accompanying notes to the condensed separate interim financial statements.

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