POSCO INTERNATIONAL

2Q 2020 Earnings Release

July 21, 2020

Contents &
Disclaimer
1. Consolidated Results Overview
2. Condensed Income Statement
2Q R esults
3. Condensed Financial Position
4. Results and Outlook by Business Group
Growth 1. Market Conditions and Achievements
Businesses of the 3 Growth Businesses
Appendix 1. Myanmar Gas Sales & Detailed Results

The financial information in this document are consolidated earnings results based on K-IFRS.
This document is provided solely for the convenience of investors, and has been prepared before the external audit on
our financial results has been completed. Therefore, some parts of this document may change depending on the audit
outcome.
This document contains "forward-looking statements" - that is, statements related to future, not past, events. “Forward-
looking statements" by their nature address matters that are, to different degrees, uncertain. These uncertainties may
cause our actual results to be different from those expressed in this document.
2Q Results 1. Consolidated Results Overview
KRW 5.3 Trillion in Sales / KRW 134.4 Billion in Operating Profit
 Minimized drop in operating profit through stable gas sales and expanding agro business despite a global industrial slowdown
【Trading and etc.】 Slight decrease in profit due to slow steel, chemicals, and automotive parts businesses despite
expanding agro business and efforts to reduce general costs
☞ Operating Profit : 48.3bn (3Q19)  -2.1bn (4Q19)  48.1bn (1Q20)  45.7bn (2Q20)
【Myanmar Gas Field】 ① Stable gas sales volume (Total 50.0 bcf, daily average of 550 mcf sold in 2Q)
② Limited impact from the plunge in crude oil prices (Gas sales price down 3% QoQ)

(Unit: KRW Billion)

5,252

180.0 134.4
(2.8%) 163.3 (2.6%)
(2.8%) 145.8
(2.6%)
121.5
97.6 90.5
(1.6%)
64.3
10.9
1.2

2Q19 3Q19 4Q19 1Q20 2Q20

Sales Operating Profit (Margin) Net Profit

1
2Q Results 2. Condensed Income Statement
2019 2020 2Q Results Details
(KRW Billion)
2Q 1H 2Q 1H QoQ YoY ▷ Sales & Operating Profit
(Refer to page 3~4, Results and Outlook
Sales 6,418.8 12,593.9 5,252.0 10,762.9 -259.0 -1,166.8
by Business Group)
Operating Profit 180.0 344.3 134.4 280.2 -11.4 -45.6
▷ Finance P/L : +\10.8bn
(OP Margin) 2.8% 2.7% 2.6% 2.6% - -0.2%p 1) Net Interest Expenses (-\22.1bn)
Trading & Etc. 55.8 117.2 45.7 93.8 -2.4 -10.1 - 4Q19(-\30.2bn), 1Q20(-\20.2bn)
2) Foreign Exchange P/L, etc (+\32.9bn)
Myanmar Gas 124.2 227.1 88.7 186.4 -9.0 -35.5 - Foreign currency translation gain on
USD denominated debt in Indonesia
Non-Operating P/L -19.9 -62.2 -4.2 -59.2 +50.8 +15.7
Palm Oil Business* (+\30.3bn)
Finance P/L -22.2 -64.9 10.8 -50.1 +71.7 +33.0 *(Note) Loss in 1Q : -\36.1bn

Equity Method P/L 25.8 26.6 2.5 7.3 -2.3 -23.3 ▷ Equity Method P/L : +\2.5bn
- Myanmar Gas Pipeline(\10.9bn),
Other P/L -23.5 -23.9 -17.5 -16.4 -18.6 +6.0 KOLNG (\2.9bn), Ambatovy Nickel(-\7.4bn),
Wetar Copper (-\1.7bn), etc
Profit Before Tax 160.1 282.1 130.2 221.0 +39.4 -29.9
▷ Others : -\17.4 bn
Net Profit 121.5 190.3 90.5 154.7 +26.2 -31.0
- Kwanika Copper PJT (-\6.4 bn), etc.
10.4%
* Based on
Yearly Equivalent
3.6% Net Profit 891.6
ROE 6.9%
5.4%
2.3% EBITDA 698.6
ROA 1.6% (KRW Billion)
439.9
Net Profit on 209.4 161.8
Controlling Interest 155.2
(KRW Billion)
ʹ18 ʹ19 ʹ20.1H ʹ18 ʹ19 ʹ20.1H

2
2Q Results 3. Condensed Financial Position
Financial stability▲ and liabilities ratio▼ through enhanced working capital management
Strengthened cash-focused management as a preemptive response to the market uncertainties
(KRW Billion)

Total Assets 9,881.0 8,959.4 9,155.9

Current Assets 5,980.2 5,032.3 5,297.5
Cash and Cash Equivalents 216.3 258.8 884.4
Non-Current Assets 3,900.8 3,927.1 3,858.4
Total Liabilities 6,991.5 5,911.3 6,001.3
Current Liabilities 5,421.1 3,561.2 3,820.1
Non-Current Liabilities 1,570.4 2,350.1 2,181.2
Debt 4,389.4 3,133.0 3,588.7
Shareholder's Equity 2,889.5 3,048.1 3,154.6
Issued Capital and
1,157.2 1,190.6 1,221.5
Capital Surplus
Retained Earnings 1,732.3 1,857.5 1,933.1

Liabilities Ratio 242.0% 193.9% 190.2%

Net Debt to Assets 42.2% 32.1% 29.5%
Debt to EBITDA 6.3 3.5 4.1

3
2Q Results 3. Results and Outlook by Business Group
STEEL BUSINESS
【 2Q Key Performance 】
• Slow sales due to factory shutdowns and production cuts of key
2019 2020
(KRW Billion) customers (auto manufacturers, steel producers, etc)
2Q 1H 2Q 1H • Expanded into new markets (US, Southwest Asia) for POSCO’s
Sales 3,168.5 6,112.1 2,459.7 5,054.6 hot-rolled steel products
• Increased sales of energy steel (API, steel plates for wind farm PJT)
OP 29.6 60.8 24.3 51.9
OP Margin 0.9% 1.0% 1.0% 1.0%
【 Outlook & Strategy 】
• Strengthen the overseas sales role of POSCO products
Volume (Mn Tons) 7.36 14.30 6.61 12.61 (Integration of sales channels in the US and Chinese markets)
Overseas 6.31 12.18 5.79 10.77 → Structural growth in sales expected (US 0.8mn tons, China 2.6mn tons)
• Expand sales of industrial/construction steel packages
D o m e st i c 1.05 2.12 0.82 1.84 (Processed products of POSCO and POSCO SPS, etc)

ENERGY & INFRASTRUCTURE

【 2Q Key Performance 】
2019 2020 • Stable revenue from the Myanmar gas field despite drop in gas
(KRW Billion) sales volume and sales price
2Q 1H 2Q 1H * 50.0bcf sold in 2Q(4%▼ QoQ), sales price 3%▼ QoQ
Sales 459.4 910.1 339.1 713.8 * Limited impact on sales price from the recent plunge in oil prices
• LNG trading volume exceeded 1mn tons in 1H
OP 129.1 233.3 87.0 180.6
【 Outlook & Strategy 】
OP Margin 28.1% 25.6% 25.0% 25.3% • Myanmar gas sales prices expected to decrease due to the
Gas Sales (Bn ft3) 53.9 105.3 50.0 101.9 prolongation of low oil prices
* To be overcome through reducing operating expenditure and
LNGSales(MnTons) 0.36 0.71 0.54 1.03 increasing sales volume during the winter season

4
2Q Results 3. Results and Outlook by Business Group
AGRO & INDUSTRIAL MATERIALS
【 2Q Key Performance 】
• Increased sales of corn and soybeans to China & Vietnam
2019 2020
(KRW Billion) • Sales of raw materials and industrial materials (chemicals,
2Q 1H 2Q 1H nonferrous metals, automotive parts) down due to slow global
demand caused by COVID-19 and low oil prices
Sales 2,223.8 4,355.8 1,884.5 3,790.5
【 Outlook & Strategy 】
OP 15.9 36.2 12.4 24.6 • Recovery of demand for raw materials and industrial materials expected
OP Margin 0.7% 0.8% 0.6% 0.7% to be slow due to the resurgence of COVID-19
• Profitability to be maintained through risk management centered
Agro Sales strategy, full-fledged operation of the Ukraine Grain Terminal and
(Mn Tons)
1.13 2.59 2.48 4.05
increasing trade volume linked with the terminal
* Main Items : Agro, Nonferrous Metals, Automotive Parts, Chemicals

FOREIGN SUBSIDIARIES
【 2Q Key Performance 】
• [Trading Subsidiaries (Total 15)]
2019 2020
(KRW Billion) * Earnings recovered QoQthrough increased agro trade volume
2Q 1H 2Q 1H • [Investment Subsidiaries (Total 15)]
Trading Subsidiaries * Indonesia Palm : 77k tons produced, 18.3bn in operating profit in 1H
Sales 2,043.4 3,889.9 1,865.3 3,745.6 * Manufacturing subsidiaries and Myanmar hotel : weak performance
due to the effects of COVID-19
OP 6.7 12.2 1.9 -1.3
【 Outlook & Strategy 】
Investment Subsidiaries • Ukraine Grain Terminal : secured 1.5mn tons in volume to be
Sales 107.8 204.2 315.3 431.1 handled during the 2020~2021 season
6.7 15.7 6.4 21.4
• Indonesia Palm : slight drop in production expected due to the cyclical
OP
low-season (dry season)

5
Growth 1. Market Conditions and Achievements
Businesses of the 3 Growth Businesses
Fostering 3 growth businesses based on growth potential and competency
A g ro E&P
Active entry by followers with differentiated strategies despite being Global demand for natural gas expected to rise
an Oligopolistic market dominated by a few major companies with the expansion of low-emission policies worldwide
① Continued growth of global consumption and trade + Food scarcity (population & economic growth)
* AAGR of 2.5% for agro consumption and 6.1% for global agro trade ① Demand for natural gas to rise in the long term as a source of clean energy
* Global population expected to reach 9.7 billion by 2050 (Source: UN) * Demand for clean energy rising in response to growing environmental concerns
⇨ Continued growth of international trade volume → Market growth ↑ Global 2018 2025(F) 2035(F)
② Market with an imbalance between production and consumption Gas Demand 130 TCF 154 TCF 179 TCF
(Export/import volume concentrated in a few countries) (Proportion) (23%) (24%) (26%)
③ Government led procurement system non-existent in Korea (price driven market)
* ABCD traders and Japanese trading companies hold approx. 90% of domestic market share
② Percentage of natural gas as an energy source expected to rise continually
* Excluding rice, Korea’s food self-sufficiency rate is lowest among the OECD and expected to reach a similar level as crude oil by 2040
(Soybeans 6%, Wheat 1%, Corn 1%) * The proportion of gas power generation is increasing globally including in China(Source: BP)
⇨ A need for a procurement system in response to food security
Business Status and Achievements Business Status and Achievements
■ 6.5x increase in agro handling volume (In operating profit since 2018) ■ Stable earnings through steady gas sales from Myanmar gas field
【Handling Volume (mn tons)】 5.45 (thousand tons) 2015 2019 Growth Rate 〮 Gas sales : 216.2BCF in 2019, 101.9BCF in 1H of 2020
4.38 Corn 164 2,614 1,494% ■ Stage 2 and 3 development in progress in order to maintain production levels
Wheat 240 1,070 346%
2.77
3.19 〮 Stage 2(2018.07~) : drilling of 8 production wells / Stage 3 : Installation of compressor
Soybeans 124 1,026 727%
0.84 Rice 164 317 93% ■ New gas structure discovered in Myanmar (Mahar structure) - Feb 2020
Crude Palm Oil 85 250 194%
2015 2016 2017 2018 2019 Others 68 169 149% Myanmar Shwe
Current structures in production
Gas Field Phyu
■ 3 Investment assets acquired in the strategic markets (Black Sea region, SE Asia) (over 500mmscfd )
Shwe
Farm Inland Logistics Processing Export Terminal Trading Import Terminal Distribution A-1 <Discovery of new gas field>
• Contingent Resources : 660BCF
A-3 Mya
• Drilling of 2~3 appraisal wells planned for the
structure with gas discovery (2021)

Mahar • Detailed development plan to be established

after precise assessment of the resources
Indonesia Palm (CPO) Myanmar RPC Ukraine Grain Terminal

6
Growth 1. Market Conditions and Achievements
Businesses of the 3 Growth Businesses
Fostering 3 growth businesses based on growth potential and competency
LNG
Market expected to expand along with growth in both supply and demand
① LNG demand to grow with increasing gas power generation and transition to green energy
② Infrastructure developments(liquefactions plants, etc) to increase to meet the growing demand
* Long-term developments planned despite delays in some liquefaction projects due to COVID-19
→ (Liquefaction projects) 115mn tons in construction in 2020 and over 97mn tons planned until 2030
※ Global LNG demand outlook (Source : Wood Mackenzie )
8 Total LNG Demand
6
MMTPA

4
2
Liquefaction Plant Capacity In Operation In Construction Pre-FID
0
2020 2025 2030 2035 2040

Business Status and Achievements

■ Expanded trading volume through focusing on major customers and the
captive demand of POSCO group companies
〮 Diversification of trade and strengthening of procurement competitiveness through
the unification of the purchasing channel within the POSCO Group
【Handling Volume (mn tons)】 (thousand tons) 2018 2019 2020(F)
2.70
2.00 Supplied to POSCO 131 270 250
1.59
Supplied to
0.47 POSCO Energy
3 190 220

2018 2019 2020(F) 2022(F) Total 134 460 470

■ Seeking to expand the LNG value chain through cooperation with POSCO group companies
〮 Overseas IPP projects, expanding LNG supply to domestic customers with direct demand, etc

7
Appendix 1. Myanmar Gas Sales & Detailed Results
 Myanmar Gas Sales Volume
56.9
Sales Volume 53.9 54.0
(625) 51.9
(billion ft3) 50.0
(592) (592)
(570)
(Daily average) (550)
(million ft3)

Operating Profit
(billion KRW) 124.3 114.9 99.7 97.6 88.7
2Q19 3Q19 4Q19 1Q20 2Q20
 Detailed Results
(KRW Billion) 2Q19 3Q19 4Q19 1Q20 2Q20
Total Operating Profit 180.0 163.3 97.6 145.8 134.4
Operating Trading & Etc. 42.3 44.7 -4.3 36.5 37.4
Profit Foreign Subsidiaries 13.4 3.7 2.2 11.8 8.3
Myanmar Gas Field 124.3 114.9 99.7 97.7 88.7
Total Non-Operating Profit/Loss -19.8 -136.9 -76.2 -55.0 -4.2
Net Interest Expense -31.7 -27.6 -30.2 -20.2 -22.1
Non- F/X Profit/Loss -9.0 9.1 -8.7 -38.4 30.5
Operating
Profit/Loss
Equity Method Profit/Loss 25.8 20.1 8.4 4.8 2.5
Myanmar Gas Pipeline (SEAGP, 25%) 19.5 20.7 11.7 13.8 10.9
Others -4.9 -138.5 -45.7 -1.2 -15.1

KRW/USD (Quarter-End) 1,156.80 1,201.30 1,157.80 1,222.60 1,203.00

Market Indices WTI (USD/Bbl, Avg.) 59.9 56.4 56.9 45.8 28.0
Libor 3M (USD, Avg.) 2.50665 2.19759 1.93177 1.52913 0.59578