Slide 1: 2021 2Q Earnings Release
2021 2Q Earnings Release July 22, 2021 Exhibit 99.1
Slide 2: Disclaimer
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 fin
Slide 3: Contents
2Q 2021 Earnings Release Appendix Contents 2021 Business Outlook Major Business Strategies Global Steel Business Strategies 2021 Safety Management Enhancement Strategies Technology Development Plan to Reach Net Zero Business Performance (Parent/Consolidated) Financial Structure Subsidiary Performanc
Slide 4: Business Performance_Sales/Production (Parent)
7,793 7,852 △111 +98 8,920 9,559 9,448 9,018 7,762 8,812 54.5 57.4 8,999 59.9 +187 +2.5%p 2Q20 2Q21 ○ Product production went up in an effort to meet the demand, while crude steel production lowered due to maintenance ○ Sales volume and domestic portion increased as domestic sales, mostly from HR an
Slide 5: Business Performance_Parent/Consolidated
+1,477 +535 +3.5%p ○ Reached the highest OP level since 3Q10, led by price and sales volume increase, despite raw material price hike 【Operating Profit】 7,800 9,277 Sales price (carbon steel, thousand won/t) : 1Q21) 763 → 2Q21) 901 (+138) 2Q Raw material applied cost (’1Q21 price =100 ): Iron ore 12
Slide 6: Financial Structure
○ Liabilities ratio dropped by 4.1%p QoQ, as major group affiliates as POSCO and POSCO E&C repaid debt ○ Debt/EBITDA improved as debt and cash decreased due to debt repayment and operating profit increased Debt : The 3rd Global bond △U$0.7 billion, Public Bond △150 billion KRW △1,348 △567 △885 QoQ Q
Slide 7: Subsidiary Performance_Domestic
7 466 424 350 OP downturned as electricity price declined as entering the slow season and LNG unit price hike pressured the margin - Capacity Price per unit declined (QoQ) : △63% - LNG direct purchase price per unit increase (QoQ) : +33% 4,686 6,303 7,747 Both revenue and OP went up supported by imp
Slide 8: Subsidiary Performance_Overseas
8 765 824 647 Margin better off as price uptrend continued as demand picked up from auto and white goods and preemptive low-cost raw material purchase took place - Average Sales Price increase (QoQ) : +6% 619 344 455 Profitability enhanced as sales volume for plate and export portion went up, on top
Slide 9: Global Steel Business Strategies
Global Steel Business Strategies Build global crude steel capacity to reach over 60 million tons+α by 2030 9 Maintain the “Global Top Tier” level through stabilizing existing business and expanding in growth markets Capacity : (2020) 46 million tons (Domestic 41, Indonesia 3, China 1, Vietnam 1) → (
Slide 10: 2021 Safety Management Enhancement Strategies
2021 Safety Management Enhancement Strategies Prohibit serious accidents from occurring by levelling up the basic safety management standards 2019 2020 1Q21 2Q21 25 3 21 5 4 1 5 Zero Zero serious accidents since Mar 2021 No. of Injured employees No. of seriously injured employees Pohang) Raw materia
Slide 11: Technology Development Plan to Reach Net Zero
Technology Development Plan to Reach Net Zero 11 Improve efficiency of operations & energy efficiency by smartization Fulfill the vision become net zero by 2050 through BF process enhancement and technology development for HyREX* Reduce coal usage through Smart technology (~2025) - Detect uneven usa
Slide 12: 2021 Business Outlook
12 4.2 6.4 19.1 6.9 37.0 66.4 2021 Business Outlook Parent Consolidated CAPEX (trillion KRW) Revenue (trillion KRW) Debt (trillion KRW) Crude Steel Production 38.2 million tons Product Sales 35.6 million tons
Slide 13: Summarized Financial Statements
Summarized Financial Statements Appendix Summarized F/S_Parent (IS, BS) Summarized F/S_Consolidated (IS, BS)
Slide 14: Summarized F/S_Parent Income Statement
14 Summarized F/S_Parent Income Statement (billion KRW) 2Q20 1Q21 2Q21 QoQ Crude Steel Production (thousand tons) 7,793 9,559 9,448 △111 Product Sales (thousand tons) 7,762 8,812 8,999 +187 STS 415 480 480 - Carbon Steel Sales Price (thousand KRW) 643 763 901 +138 Revenue 5,885 7,800 9,277 +1,477 Co
Slide 15: Summarized F/S_Parent Balance Sheet
15 Summarized F/S_Parent Balance Sheet (billion KRW) 2Q20 1Q21 2Q21 QoQ Current Assets 20,017 20,398 21,058 +660 Cash Balance* 12,065 10,938 10,371 △567 Accounts Receivable 3,143 4,107 4,920 +813 Inventories 4,216 4,759 5,325 +566 Current Ratio 422.5% 354.5% 393.8% +39.2%p Non-Current Assets 37,603
Slide 16: Summarized F/S_Consolidated Income Statement
16 Summarized F/S_Consolidated Income Statement (billion KRW) 2Q20 1Q21 2Q21 QoQ Revenue 13,722 16,069 18,293 +2,224 Gross Profit 734 2,138 2,823 +685 (Gross Margin) (5.3%) (13.3%) (15.4%) (+2.1%p) SG&A 566 585 623 +38 Operating Profit 168 1,552 2,201 +649 (Operating Margin) (1.2%) (9.7%) (12.0%) (+
Slide 17: Summarized F/S_Consolidated Balance Sheet
17 Summarized F/S_Consolidated Balance Sheet (billion KRW) 2Q20 1Q21 2Q21 QoQ Current Assets 37,746 39,442 40,182 +740 Cash Balance* 16,892 17,568 16,683 △885 Accounts Receivable 8,562 8,954 9,422 +468 Inventories 9,744 10,253 11,427 +1,174 Current Ratio 206.7% 215.7% 226.4% +10.7%p Non-Current Asse