Posco International : "Solid Portfolio"？POSCO INTERNATIONAL's Secret to Generating 30 Trillion KRW in Sales ？ Its ongoing effort to improve the corporate structure was revealed through performance

"Solid Portfolio", POSCO INTERNATIONAL's

Secret to Generating 30 Trillion KRW in Sales

Its ongoing effort to improve the corporate structure

was revealed through performance

- The sources of income were well balanced with 39% coming from trading, 31% from resource development, and 30% from investment corporation.

- By generating more profits from trading and investment corporations, POSCO INTERNATIONAL improved the profit structure driving sales to exceed 30 trillion won.

- The conversion to holding company established the foundation for stable revenue generation through the expansion of eco-friendly future businesses.

POSCO INTERNATIONAL has been building a stable business portfolio with trading, resource development, and investment business as its three main axes despite the uncertain business environment, such as the spread of COVID-19 variants, the tendency of protectionism demonstrated by many countries, and the crisis in global supply chain.

Last year, POSCO INTERNATIONAL achieved sales of 33 trillion 948.9 billion KRW, which is a record high in its history, and an operating profit of 585.4 billion KRW. The even growth of the trading, resource development, and investment corporation businesses was the foundation for such exceptional performance.

POSCO INTERNATIONAL's main businesses are divided mainly into three sectors: trading, resource development through gas sales, and investment corporations. The performance of the trading and investment corporation sectors grew significantly last year, accounting for 38.8% of trading, 30.9% of resource development, and 30.3% of investment corporations in total operating profit, thus establishing a balanced portfolio.

In 2018, more than 90% of its operating profit was generated from trading and resource development (43.4% and 50.1%, respectively) and the minor proportion of 6.5% from investment corporations. By significantly improving the operating profit from its investment corporation sector, POSCO INTERNATIONAL was able to successfully achieve the well-balanced proportion in just four years.

POSCO INTERNATIONAL is also accelerating the performance of its core businesses this year, foretelling the transition to future industries such as eco-friendly businesses and presenting detailed strategic directions for a balanced business portfolio.

In the trading sector, POSCO plans to increase the supply of POSCO materials by 10% from 9.47 million tons to 10.42 million tons per year based on the POSCO Group's steel export channels integrated last year and focus on creating synergies by increasing transactions among the Group's affiliates. Also, in response to the Group's Carbon Neutrality strategy, it decided to stabilize its supply of iron scrap, which is a recyclable raw material, and actively develop market demands from environmentally friendly industries, such as eco-friendly vehicles and wind power generation.

The outstanding performance of POSCO MOBILITY SOLUTION's eco-friendly car parts business, Indonesian PT.BIA palm oil business, and Uzbekistan cotton-spinning business makes these the mainstays of the strategies to create outcome in the investment business sector. POSCO MOBILITY SOLUTION is in the process of setting up production bases in Europe, next to Korea, China and Mexico, in hopes of establishing a production ecosystem of 4 million units worldwide by 2025. PT.BIA in Indonesia plans to expand its production from about 160,000 tons last year to 330,000 tons by 2025 and is actively considering advancing into downstream areas such as palm oil refining and biodiesel business by diversifying its business portfolio. In addition, POSCO INTERNATIONAL TEXTILE LLC in Uzbekistan, which achieved high performance last year, is going to establish a stable raw cotton procurement system through more investment in the cotton cultivation business cluster.

In the resource development sector, the company plans to participate in carbon-neutral and hydrogen economy projects by expanding the energy map. This was once limited to Myanmar, but is now open to the world through the acquisition of Senex Energy, an Australian E&P (Exploration & Production) company, as well as the exploration of offshore petroleum license blocks in Malaysia and Indonesia.

"Our efforts to evolve into a company strong in crisis beyond the framework of traditional trading based on trade are bearing fruit thanks to our executives and employees," said President Joo Si-bo, who has been focusing on improving the corporate structure since taking office. "We will further solidify the foundation for sustainable growth through bold investments in the eco-friendly future business areas in accord with the holding company's strategy."