REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
POSCO HOLDINGS INC. |
The Republic of | |
(Translation of Registrant’s name into English) |
(Jurisdiction of incorporation or organization) |
Title of Each Class |
Trading symbol |
Name of Each Exchange on Which Registered | ||
g one-fourth of one share of common stock |
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* | Not for trading, but only in connection with the registration of the American Depositary Shares. |
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10 5 |
“ADR” |
American Depositary Receipt evidencing ADSs. | |
“ADR depositary” |
Citibank, N.A. | |
“ADS” |
American Depositary Share representing one-fourth of one share of Common Stock. | |
“Commercial Code” |
Commercial Code of the Republic of Korea. | |
“common stock” |
Common stock, par value Won 5,000 per share, of POSCO HOLDINGS INC. | |
“deposit agreement” |
Deposit Agreement, dated as of July 19, 2013, among POSCO (currently named POSCO HOLDINGS INC.), the ADR Depositary and all holders and beneficial owners from time to time of ADRs issued thereunder. | |
“Dollars,” “$” or “US$” |
The currency of the United States of America. | |
“FSCMA” |
Financial Investment Services and Capital Markets Act of the Republic of Korea. | |
“Government” |
The government of the Republic of Korea. | |
“Gwangyang Works” |
Gwangyang Steel Works. | |
“IASB” |
International Accounting Standards Board. | |
“IFRS” |
International Financial Reporting Standards. | |
“Korea” |
The Republic of Korea. | |
“K-IFRS” |
Korean International Financial Reporting Standards. | |
“Pohang Works” |
Pohang Steel Works. | |
“POSCO Group” |
POSCO HOLDINGS INC. and its consolidated subsidiaries. | |
“Renminbi” |
The currency of the People’s Republic of China. | |
“Securities Act” |
The United States Securities Act of 1933, as amended. | |
“Securities Exchange Act” |
The United States Securities Exchange Act of 1934, as amended. | |
“SEC” |
The United States Securities and Exchange Commission. | |
“tons” |
Metric tons (1,000 kilograms), equal to 2,204.6 pounds. | |
“U.S. GAAP” |
Generally accepted accounting principles in the United States of America. | |
“We” |
POSCO HOLDINGS INC. and its consolidated subsidiaries, unless otherwise specified or the context otherwise requires. Accordingly, in the context of discussing our steel operations, “we” refers to the steel producing operations of the subsidiaries of POSCO HOLDINGS INC., including POSCO, POSCO (Zhang-jiagang), PT. Krakatau POSCO and POSCO VINA. | |
“Won” or “ ₩ ” |
The currency of the Republic of Korea. | |
“Yen” |
The currency of Japan. |
• | an increase in unemployment among, and/or decrease in disposable income of, consumers who purchase the products manufactured by our customers and a decline in overall consumer confidence and spending levels, which in turn may decrease demand for our products; |
• | disruption in the normal operations of the businesses of our customers, which in turn may decrease demand for our products; |
• | disruption in supply of raw materials from our vendors; |
• | disruption in delivery of our products to our customers; |
• | disruption in the normal operations of our business resulting from contraction of COVID-19 by our employees or quarantine measures imposed by governments, which may necessitate our employees to be quarantined and/or our manufacturing facilities, construction projects, energy and mineral development projects or offices to be temporarily shut down; |
• | disruption resulting from the necessity for social distancing, including implementation of temporary adjustment of work arrangements requiring employees to work remotely, which may lead to a reduction in labor productivity (for example, from time to time, we implemented staggered remote working arrangements for our employees at our headquarters); |
• | depreciation of the Won against major foreign currencies, which in turn may increase the cost of imported raw materials; |
• | unstable global and Korean financial markets, which may adversely affect our ability to meet our funding needs on a timely and cost-effective basis; and |
• | impairments in the fair value of our investments in companies that may be adversely affected by the pandemic. |
• | declines in consumer confidence and a slowdown in consumer spending, including as a result of the ongoing global COVID-19 pandemic; |
• | adverse conditions or developments in the economies of countries and regions that are important export markets for Korea, such as China, the United States, Europe and Japan, or in emerging market economies in Asia or elsewhere, including as a result of the deteriorating economic and trade relations between the United States and China and increased uncertainties resulting from the United Kingdom’s exit from the European Union; |
• | adverse changes or volatility in foreign currency reserve levels, commodity prices (including oil prices), exchange rates (including fluctuation of the U.S. dollar, the Euro or the Japanese Yen exchange rates or revaluation of the Chinese Renminbi), interest rates, inflation rates or stock markets; |
• | the occurrence of severe health epidemics in Korea or other parts of the world, such as the COVID-19 pandemic; |
• | deterioration in economic or diplomatic relations between Korea and its trading partners or allies, including deterioration resulting from territorial or trade disputes or disagreements in foreign policy (such as the ongoing trade disputes with Japan); |
• | increased sovereign default risk in select countries and the resulting adverse effects on the global financial markets; |
• | deterioration in the financial condition or performance of small- and medium-sized enterprises and other companies in Korea due to the Government’s policies to increase minimum wages and limit working hours of employees; |
• | investigations of large Korean business groups and their senior management for possible misconduct; |
• | a continuing rise in the level of household debt and increasing delinquencies and credit defaults by retail and small- and medium-sized enterprise borrowers in Korea; |
• | the economic impact of any pending or future free trade agreements or of any changes to existing free trade agreements; |
• | social and labor unrest; |
• | substantial changes in the market prices of Korean real estate; |
• | a substantial decrease in tax revenues and a substantial increase in the Government’s expenditures for fiscal stimulus measures, unemployment compensation and other economic and social programs, in particular in light of the Government’s ongoing efforts to provide emergency relief payments to households and emergency loans to corporations in need of funding in light of COVID-19, which, together, would likely lead to a national budget deficit as well as an increase in the Government’s debt; |
• | financial problems or lack of progress in the restructuring of Korean business groups, other large troubled companies, their suppliers or the financial sector; |
• | loss of investor confidence arising from corporate accounting irregularities or corporate governance issues concerning certain Korean companies; |
• | increases in social expenditures to support an aging population in Korea or decreases in economic productivity due to the declining population size in Korea; |
• | geopolitical uncertainty and the risk of further attacks by terrorist groups around the world; |
• | political uncertainty or increasing strife among or within political parties in Korea; |
• | hostilities or political or social tensions involving oil producing countries in the Middle East (including a potential escalation of hostilities between the United States and Iran) and Northern Africa and any material disruption in the global supply of oil or sudden increase in the price of oil; |
• | hostilities or, political or social tensions involving Russia (including the invasion of Ukraine by Russia and ensuing actions that the United States and other countries may take) and any resulting adverse effects on the global supply of oil or the global financial markets; |
• | natural or man-made disasters that have a significant adverse economic or other impact on Korea or its major trading partners; and |
• | an increase in the level of tensions or an outbreak of hostilities between North Korea and Korea or the United States. |
• | an increase in the amount of Won required for us to make interest and principal payments on our foreign currency-denominated debt; |
• | an increase in Won terms in the costs of raw materials and equipment that we purchase from overseas sources and a substantial portion of our freight costs, which are denominated primarily in Dollars; and |
• | foreign exchange translation losses on foreign-currency denominated liabilities, which lower our earnings for accounting purposes. |
• | our export products to be less competitive by raising our prices in Dollar, Yen and Renminbi terms; and |
• | a reduction in net sales and accounts receivables in Won from export sales, which are primarily denominated in Dollars and to a lesser extent in Yen and Renminbi. |
• | reduce export prices in Dollar terms of our principal products, which in turn may reduce our sales prices in Korea; |
• | increase competition in the Korean market as foreign producers seek to export steel products to Korea as other markets experience a slowdown; |
• | negatively affect demand for our products abroad and our ability to expand export sales; and |
• | affect our ability to increase steel production in general. |
• | challenges caused by distance, language and cultural differences; |
• | higher costs associated with doing business internationally; |
• | legal and regulatory restrictions, including foreign exchange controls that might prevent us from repatriating cash earned in countries outside Korea; |
• | longer payment cycles in some countries; |
• | credit risk and higher levels of payment fraud; |
• | currency exchange risks; |
• | potentially adverse tax consequences; |
• | political and economic instability; and |
• | seasonal reductions in business activity during the summer months in some countries. |
• | have economic or business interests or goals that are inconsistent with ours; |
• | take actions contrary to our instructions, requests, policies or objectives; |
• | be unable or unwilling to fulfill their obligations; |
• | have financial difficulties; or |
• | have disputes with us as to their rights, responsibilities and obligations. |
• | unanticipated variations in labor and equipment productivity over the term of a contract; |
• | unanticipated increases in labor, raw material, parts and components, subcontracting and overhead costs, including as a result of bad weather; |
• | delivery delays and corrective measures for poor workmanship; and |
• | errors in estimates and bidding. |
• | unforeseen contingent risks, including lack of required capital resources or increased tax liabilities, relating to our holding company structure; |
• | difficulties in integrating the diverse activities and operations of our subsidiaries or investees or any companies we may merge with or acquire; |
• | unforeseen contingent risks or latent liabilities relating to the acquisition that may become apparent in the future; |
• | difficulties in managing a larger business; |
• | unexpected business disruptions; |
• | loss of key management personnel or customers; and |
• | labor unrest. |
• | North Korea renounced its obligations under the Nuclear Non-Proliferation Treaty in January 2003 and conducted six rounds of nuclear tests since October 2006, including claimed detonations of hydrogen bombs, which are more powerful than plutonium bombs, and warheads that can be mounted on ballistic missiles. Over the years, North Korea has also conducted a series of ballistic missile tests, including missiles launched from submarines and intercontinental ballistic missiles that it claims can reach the United States mainland. In response, the Government has repeatedly condemned the provocations and flagrant violations of relevant United Nations Security Council resolutions. In February 2016, the Government also closed the inter-Korea Gaesong Industrial Complex in response to North Korea’s fourth nuclear test in January 2016. Internationally, the United Nations Security Council has passed a series of resolutions condemning North Korea’s actions and significantly expanding the scope of sanctions applicable to North Korea, most recently in December 2017 in response to North Korea’s intercontinental ballistic missile test in November 2017. Over the years, the United States and the European Union have also expanded their sanctions applicable to North Korea. |
• | In March 2010, a Korean naval vessel was destroyed by an underwater explosion, killing many of the crewmen on board. The Government formally accused North Korea of causing the sinking, while North Korea denied responsibility. Moreover, in November 2010, North Korea fired more than one hundred artillery shells that hit Korea’s Yeonpyeong Island near the Northern Limit Line, which acts as the de facto maritime boundary between Korea and |
North Korea on the west coast of the Korean peninsula, causing casualties and significant property damage. The Government condemned North Korea for the attack and vowed stern retaliation should there be further provocation. |
• | a registration statement filed by us under the Securities Act is in effect with respect to those shares; or |
• | the offering and sale of those shares is exempt from or is not subject to the registration requirements of the Securities Act. |
• | cold rolled products; |
• | hot rolled products; |
• | stainless steel products; |
• | plates; |
• | wire rods; and |
• | silicon steel sheets. |
For the Year Ended December 31, |
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2019 |
2020 |
2021 |
||||||||||||||||||||||
Steel Products |
Billions of Won |
% |
Billions of Won |
% |
Billions of Won |
% |
||||||||||||||||||
Cold rolled products |
₩ |
10,057 | 31.4 | % | ₩ |
8,539 | 29.6 | % | ₩ |
11,607 | 28.2 | % | ||||||||||||
Hot rolled products |
5,252 | 16.4 | 5,148 | 17.8 | 8,452 | 20.6 | ||||||||||||||||||
Stainless steel products |
6,956 | 21.7 | 6,779 | 23.5 | 8,479 | 20.6 | ||||||||||||||||||
Plates |
4,070 | 12.7 | 3,128 | 10.8 | 4,751 | 11.6 | ||||||||||||||||||
Wire rods |
1,749 | 5.5 | 1,489 | 5.2 | 2,132 | 5.2 | ||||||||||||||||||
Silicon steel sheets |
923 | 2.9 | 1,118 | 3.9 | 1,139 | 2.8 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
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Sub-total |
29,007 | 90.6 | 26,201 | 90.7 | 36,560 | 89.0 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
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Others |
3,070 | 9.4 | 2,692 | 9.3 | 4,533 | 11.0 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
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Total |
₩ |
32,078 | 100.0 | % | ₩ |
28,893 | 100.0 | % | ₩ |
41,093 | 100.0 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended December 31, |
||||||||||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||||||||||
Steel Products |
Thousands of Tons |
% |
Thousands of Tons |
% |
Thousands of Tons |
% |
||||||||||||||||||
Cold rolled products |
11,196 | 36.9 | % | 10,341 | 35.4 | % | 10,373 | 34.8 | % | |||||||||||||||
Hot rolled products |
7,891 | 26.0 | 8,237 | 28.2 | 8,862 | 29.7 | ||||||||||||||||||
Stainless steel products |
2,973 | 9.8 | 2,990 | 10.2 | 2,984 | 10.0 | ||||||||||||||||||
Plates |
5,399 | 17.8 | 4,768 | 16.3 | 4,823 | 16.2 | ||||||||||||||||||
Wire rods |
2,095 | 6.9 | 1,955 | 6.7 | 2,063 | 6.9 | ||||||||||||||||||
Silicon steel sheets |
816 | 2.7 | 886 | 3.0 | 735 | 2.5 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
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Total (1) |
30,369 | 100.0 | % | 29,177 | 100.0 | % | 29,840 | 100.0 | % | |||||||||||||||
|
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|
|
|
|
|
|
|
|
(1) | Not including sales volume of steel products categorized under “others.” |
For the Year Ended December 31, |
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Source |
2019 |
2020 |
2021 |
|||||||||
POSCO’s sales (1) |
48.1 | % | 51.0 | % | 52.5 | % | ||||||
Other domestic steel companies’ sales |
27.0 | 29.2 | 26.6 | |||||||||
Imports |
24.9 | 19.8 | 20.9 | |||||||||
|
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|
|
|
|
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Total |
100.0 | % | 100.0 | % | 100.0 | % | ||||||
|
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|
|
|
(1) | POSCO’s sales volume includes steel products produced by POSCO (but not by our other subsidiaries) and sold through our consolidated sales subsidiaries as well as steel products produced by POSCO (but not by our other subsidiaries) and directly sold to external customers. |
For the Year Ended December 31, |
||||||||||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||||||||||
Region |
Billions of Won |
% |
Billions of Won |
% |
Billions of Won |
% |
||||||||||||||||||
China |
₩ |
7,322 | 29.3% | ₩ |
7,888 | 35.8% | ₩ |
8,875 | 30.6% | |||||||||||||||
Asia (other than China and Japan) |
5,622 | 22.5 | 4,506 | 20.4 | 6,365 | 21.9 | ||||||||||||||||||
Japan |
2,686 | 10.8 | 2,052 | 9.3 | 2,906 | 10.0 | ||||||||||||||||||
Europe |
2,662 | 10.7 | 2,324 | 10.5 | 3,114 | 10.7 | ||||||||||||||||||
North America |
1,858 | 7.4 | 1,315 | 6.0 | 2,173 | 7.5 | ||||||||||||||||||
Middle East |
271 | 1.1 | 189 | 0.9 | 31 | 0.1 | ||||||||||||||||||
Others |
4,551 | 18.2 | 3,782 | 17.1 | 5,558 | 19.2 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
₩ |
24,971 | 100.0% | ₩ |
22,056 | 100.0% | ₩ |
29,022 | 100.0% | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended December 31, |
||||||||||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||||||||||
Steel Products |
Billions of Won |
% |
Billions of Won |
% |
Billions of Won |
% |
||||||||||||||||||
Cold rolled products |
₩ |
9,949 | 39.8% | ₩ |
8,011 | 36.3% | ₩ |
10,664 | 36.7% | |||||||||||||||
Hot rolled products |
3,159 | 12.6 | 3,115 | 14.1 | 4,229 | 14.6 | ||||||||||||||||||
Stainless steel products |
5,918 | 23.7 | 5,410 | 24.5 | 6,251 | 21.5 | ||||||||||||||||||
Plates |
2,128 | 8.5 | 1,859 | 8.4 | 2,501 | 8.6 | ||||||||||||||||||
Wire rods |
729 | 2.9 | 683 | 3.1 | 850 | 2.9 | ||||||||||||||||||
Silicon steel sheets |
988 | 4.0 | 999 | 4.5 | 1,186 | 4.1 | ||||||||||||||||||
Others |
2,101 | 8.4 | 1,979 | 9.0 | 3,341 | 11.5 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
₩ |
24,971 | 100.0% | ₩ |
22,056 | 100.0% | ₩ |
29,022 | 100.0% | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended December 31, |
||||||||||||||||||||||||
Sales Category |
2019 |
2020 |
|
2021 |
||||||||||||||||||||
(in billions of Won, except percentages) |
||||||||||||||||||||||||
Export trading sales |
₩ |
8,210 | 33.6 | % | ₩ |
6,825 | 31.8 | % | ₩ |
10,715 | 31.6 | % | ||||||||||||
Domestic trading sales |
3,863 | 15.8 | 3,181 | 14.8 | 5,546 | 16.3 | ||||||||||||||||||
Third-country trades |
18,827 | 77.1 | 17,538 | 81.7 | 27,224 | 80.2 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total sales prior to consolidation adjustments |
30,900 | 126.5 | 27,543 | 128.3 | 43,484 | 128.1 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Consolidation adjustments |
(6,477 | ) | 26.5 | (6,071 | ) | (28.3 | ) | (9,543 | ) | (28.1 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total sales |
₩ |
24,423 | 100.0 | % | ₩ |
21,472 | 100.0 | % | ₩ |
33,942 | 100.0 | % | ||||||||||||
|
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|
• | its strong and stable customer base; and |
• | its cutting-edge technological expertise obtained from construction of advanced integrated steel plants, as well as participation in numerous modernization and rationalization projects at our Pohang Works and Gwangyang Works. |
Name |
Jurisdiction of Incorporation |
Percentage of Ownership |
||||
POSCO |
Korea | 100.0 | % | |||
POSCO International Corporation |
Korea | 62.9 | % | |||
POSCO Engineering & Construction Co., Ltd |
Korea | 52.8 | % | |||
POSCO Energy Corporation |
Korea | 100.0 | % | |||
PT. Krakatau POSCO |
Indonesia | 70.0 | % | |||
POSCO Asia Co., Ltd. |
Hong Kong | 100.0 | % | |||
POSCO Maharashtra Steel Private Limited |
India | 100.0 | % | |||
POSCO (Zhangjiagang) Stainless Steel Co., Ltd. |
China | 82.5 | % (1) | |||
POSCO Chemical Co., Ltd. |
Korea | 59.7 | % | |||
POSCO YAMATO VINA STEEL JOINT STOCK COMPANY |
Vietnam | 51.0 | % |
(1) | POSCO HOLDINGS INC. holds a 58.6% interest and POSCO-China holds a 23.9% interest. |
As of or for the Year Ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
Crude steel and stainless steel production capacity for the year (million tons per year) |
42.39 | 40.68 | 40.68 | |||||||||
Actual crude steel and stainless steel output (million tons) |
38.01 | 35.94 | 38.26 | |||||||||
Capacity utilization rate (%) (1) |
89.7 | % | 88.3 | % | 94.1 | % |
(1) | Calculated by dividing actual crude steel and stainless steel output by the actual crude steel and stainless steel production capacity for the relevant period as determined by us. |
As of or for the Year Ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
Crude steel and stainless steel production capacity for the year (million tons per year) |
1.10 | 1.10 | 1.10 | |||||||||
Actual crude steel and stainless steel output (million tons) |
1.13 | 0.99 | 0.99 | |||||||||
Capacity utilization rate (%) (1) |
103.1 | % | 89.9 | % | 89.9 | % |
(1) | Calculated by dividing actual crude steel and stainless steel output by the actual crude steel and stainless steel production capacity for the relevant period as determined by us. |
As of or for the Year Ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
Crude steel production capacity for the year (million tons per year) |
2.94 | 3.00 | 3.00 | |||||||||
Actual crude steel output (million tons) |
3.02 | 3.10 | 3.14 | |||||||||
Capacity utilization rate (%) (1) |
102.5 | % | 103.3 | % | 104.5 | % |
(1) | Calculated by dividing actual crude steel output by the actual crude steel production capacity for the relevant period as determined by us. |
As of or for the Year Ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
Crude steel production capacity for the year (million tons per year) |
1.10 | 0.55 | 0.55 | |||||||||
Actual crude steel output (million tons) |
0.79 | 0.55 | 0.58 | |||||||||
Capacity utilization rate (%) (1) |
71.7 | % | 100.8 | % | 104.9 | % |
(1) | Calculated by dividing actual crude steel output by the actual crude steel production capacity for the relevant period as determined by us. |
• | our sales volume, unit prices and product mix; |
• | costs and production efficiency; and |
• | exchange rate fluctuations. |
• | the demand for our products in the Korean market and our capacity to meet that demand; |
• | our ability to compete for sales in the export market; |
• | price levels; and |
• | our ability to improve our product mix. |
For the Year Ended December 31, |
||||||||||||
Products |
2019 |
2020 |
2021 |
|||||||||
(In thousands of Won per ton) |
||||||||||||
Cold rolled products |
₩ |
898 | ₩ |
826 | ₩ |
1,118 | ||||||
Hot rolled products |
666 | 625 | 954 | |||||||||
Stainless steel products |
2,340 | 2,267 | 2,842 | |||||||||
Plates |
754 | 656 | 985 | |||||||||
Wire rods |
835 | 762 | 1,033 | |||||||||
Silicon steel sheets |
1,132 | 1,262 | 1,550 | |||||||||
|
|
|
|
|
|
|||||||
Average (1) |
₩ |
955 | ₩ |
898 | ₩ |
1,225 |
(1) | “Average” prices are based on the weighted average, by sales volume, of our sales for the listed principal products produced by us and directly sold to external customers. See “Item 4. Information on the Company — Item 4.B. Business Overview — Major Products.” The average unit sales price calculation does not include sales results of steel products categorized as “others.” |
For the Year Ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
(Percentage of net sales) |
||||||||||||
Cost of sales |
90.2 | % | 91.9 | % | 84.4 | % | ||||||
Selling and administrative expenses |
3.7 | 4.0 | 3.5 | |||||||||
Gross margin |
9.8 | 8.1 | 15.6 | |||||||||
Operating profit margin |
5.0 | 3.6 | 11.5 |
• | pursuing cost reduction through enhancing product designs, improving productivity and reducing fixed costs; |
• | focusing on marketing activities to increase the sales of higher margin, higher value-added products and to strengthen our domestic market position; |
• | pursuing synergies among member companies of the POSCO Group through corporate restructurings; and |
• | establishing a special sales committee to more effectively respond to changes in market trends and preparing responses to various scenarios of future sales. |
For the Year Ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
Crude steel and stainless steel production capacity (million tons per year) |
47.5 | 45.3 | 45.3 | |||||||||
POSCO |
42.4 | 40.7 | 40.7 | |||||||||
POSCO (Zhangjiagang). |
1.1 | 1.1 | 1.1 | |||||||||
PT. Krakatau POSCO |
2.9 | 3.0 | 3.0 | |||||||||
POSCO VINA |
1.1 | 0.6 | 0.6 | |||||||||
Actual crude steel and stainless steel output (million tons) |
42.9 | 40.6 | 43.0 | |||||||||
POSCO |
38.0 | 35.9 | 38.3 | |||||||||
POSCO (Zhangjiagang). |
1.1 | 1.0 | 1.0 | |||||||||
PT. Krakatau POSCO |
3.0 | 3.1 | 3.1 | |||||||||
POSCO VINA |
0.8 | 0.6 | 0.6 | |||||||||
Capacity utilization rate (%) |
90.4 | % | 89.5 | % | 94.8 | % | ||||||
POSCO |
89.7 | % | 88.3 | % | 94.1 | % | ||||||
POSCO (Zhangjiagang). |
103.1 | % | 89.9 | % | 89.9 | % | ||||||
PT. Krakatau POSCO |
102.5 | % | 103.3 | % | 104.5 | % | ||||||
POSCO VINA |
71.7 | % | 100.8 | % | 104.9 | % |
• | an increase in the amount of Won required for us to make interest and principal payments on our foreign currency-denominated debt; |
• | an increase in Won terms in the costs of raw materials and equipment that we purchase from overseas sources and a substantial portion of our freight costs, which are denominated primarily in Dollars; and |
• | foreign exchange translation losses on foreign-currency denominated liabilities, which lower our earnings for accounting purposes. |
• | our export products to be less competitive by raising our prices in Dollar, Yen and Renminbi terms; and |
• | a reduction in net sales and accounts receivables in Won from export sales, which are primarily denominated in Dollars and to a lesser extent in Yen and Renminbi. |
For the Year Ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
(In millions of Won) |
||||||||||||
Operating profit under IFRS as issued by the IASB |
₩ |
3,222,713 | ₩ |
2,054,370 | ₩ |
8,775,305 | ||||||
Additions: |
||||||||||||
Impairment loss on other receivables |
80,323 | 53,105 | — | |||||||||
Impairment loss on assets held for sale |
38,328 | 5,030 | — | |||||||||
Loss on disposals of investments in subsidiaries, associates and joint ventures |
6,539 | 14,632 | 12,882 | |||||||||
Loss on disposals of property, plant and equipment |
120,227 | 142,126 | 95,720 | |||||||||
Impairment loss on property, plant and equipment |
442,700 | 27,040 | 311,520 | |||||||||
Impairment loss on investment property |
32,642 | — | — | |||||||||
Impairment loss on intangible assets |
191,021 | 197,776 | 224,328 | |||||||||
Increase to provisions |
23,074 | 30,536 | 37,962 | |||||||||
Loss on valuation of firm commitment |
37,685 | 93,098 | 111,542 | |||||||||
Donations |
51,567 | 45,652 | 101,258 | |||||||||
Idle tangible asset expenses |
34,152 | 19,276 | 23,843 | |||||||||
Others |
112,029 | 70,408 | 108,438 | |||||||||
|
|
|
|
|
|
|||||||
1,170,287 | 698,679 | 1,027,493 | ||||||||||
Deductions: |
||||||||||||
Reversal of impairment loss on other receivables |
— | — | (12,975 | ) | ||||||||
Gain on disposals of assets held for sale |
(37,461 | ) | (841 | ) | (60,208 | ) | ||||||
Gain on disposals of investment in subsidiaries, associates and joint ventures |
(27,836 | ) | (88,836 | ) | (85,981 | ) | ||||||
Gain on disposals of property, plant and equipment |
(49,367 | ) | (15,548 | ) | (12,016 | ) | ||||||
Gain on disposals of intangible assets |
(1,896 | ) | (815 | ) | (273 | ) | ||||||
Gain on valuation of firm commitment |
(60,201 | ) | (107,511 | ) | (169,485 | ) | ||||||
Gain on valuation of emission rights |
(25,440 | ) | — | — | ||||||||
Gain on disposals of emission rights |
(11,141 | ) | (24,851 | ) | (567 | ) | ||||||
Reversal of other provisions |
(36,522 | ) | (5,154 | ) | (33,887 | ) | ||||||
Premium income |
(3,326 | ) | (25,253 | ) | (38,115 | ) | ||||||
Others |
(197,701 | ) | (133,527 | ) | (177,465 | ) | ||||||
|
|
|
|
|
|
|||||||
(450,891) | (402,336) | (590,972) | ||||||||||
|
|
|
|
|
|
|||||||
Revenue recognition related to development and sale of real estate |
(418,862 | ) | 326,118 | 323,144 | ||||||||
Cost of sales recognition related to development and sale of real estate |
345,605 | (273,796 | ) | (296,881 | ) | |||||||
|
|
|
|
|
|
|||||||
Operating profit under K-IFRS |
₩ |
3,868,854 | ₩ |
2,403,035 | ₩ |
9,238,089 | ||||||
|
|
|
|
|
|
|||||||
Net profit under IFRS as issued by the IASB |
₩ |
2,038,165 | ₩ |
1,748,492 | ₩ |
7,175,982 | ||||||
Adjustments related to development and sale of real estate: |
||||||||||||
Revenue |
(418,862 | ) | 326,118 | 323,144 | ||||||||
Cost of sales |
345,605 | (273,796 | ) | (296,881 | ) | |||||||
Income tax |
17,728 | (12,662 | ) | (6,355 | ) | |||||||
|
|
|
|
|
|
|||||||
Net income under K-IFRS |
₩ |
1,982,637 | ₩ |
1,788,152 | ₩ |
7,195,890 | ||||||
|
|
|
|
|
|
Changes |
||||||||||||||||
For the Year Ended December 31, |
2020 versus 2021 |
|||||||||||||||
2020 |
2021 |
Amount |
% |
|||||||||||||
(In billions of Won) |
||||||||||||||||
Revenue |
₩ |
57,467 | ₩ |
76,009 | ₩ |
18,543 | 32.3 | % | ||||||||
Cost of sales |
52,799 | 64,154 | 11,356 | 21.5 | ||||||||||||
|
|
|
|
|||||||||||||
Gross profit |
4,668 | 11,855 | 7,187 | 154.0 | ||||||||||||
Selling and administrative expenses: |
||||||||||||||||
Impairment loss (reversal of impairment loss) on trade accounts and notes receivable |
1 | 40 | 39 | 4,743.5 | ||||||||||||
Other administrative expenses |
1,940 | 2,210 | 270 | 13.9 | ||||||||||||
Selling expenses |
377 | 393 | 16 | 4.3 | ||||||||||||
Other operating income and expenses: |
||||||||||||||||
Impairment loss (reversal of impairment loss) on other receivables |
53 | (13 | ) | (66 | ) | N.A. | (1) | |||||||||
Other operating income |
402 | 578 | 176 | 43.7 | ||||||||||||
Other operating expenses |
646 | 1,027 | 382 | 59.2 | ||||||||||||
|
|
|
|
|||||||||||||
Operating profit |
2,054 | 8,775 | 6,721 | 327.2 | ||||||||||||
Share of profit of equity-accounted investees, net |
133 | 650 | 516 | 387.3 | ||||||||||||
Finance income |
2,677 | 2,730 | 53 | 2.0 | ||||||||||||
Finance costs |
2,892 | 2,765 | (127 | ) | (4.4 | ) | ||||||||||
|
|
|
|
|||||||||||||
Profit before income tax |
1,973 | 9,390 | 7,417 | 376.0 | ||||||||||||
Income tax expense |
224 | 2,214 | 1,990 | 887.1 | ||||||||||||
|
|
|
|
|||||||||||||
Profit |
1,748 | 7,176 | 5,427 | 310.4 | ||||||||||||
Profit for the period attributable to owners of the controlling company |
1,581 | 6,607 | 5,026 | 317.8 | ||||||||||||
Profit for the period attributable to non-controlling interests |
167 | 569 | 402 | 240.3 |
(1) | N.A. means not applicable. |
Changes |
||||||||||||||||
For the Year Ended December 31, |
2020 versus 2021 |
|||||||||||||||
2020 |
2021 |
Amount |
% |
|||||||||||||
(In billions of Won) |
||||||||||||||||
Steel Segment: |
||||||||||||||||
External revenue |
₩ |
28,893 | ₩ |
41,093 | ₩ |
12,201 | 42.2 | % | ||||||||
Internal revenue |
15,365 | 22,456 | 7,090 | 46.1 | ||||||||||||
|
|
|
|
|||||||||||||
Total revenue from Steel Segment |
44,258 | 63,549 | 19,291 | 43.6 | ||||||||||||
|
|
|
|
|||||||||||||
Trading Segment: |
||||||||||||||||
External revenue |
19,345 | 25,066 | 5,720 | 29.6 | ||||||||||||
Internal revenue |
12,947 | 20,225 | 7,278 | 56.2 | ||||||||||||
|
|
|
|
|||||||||||||
Total revenue from Trading Segment |
32,292 | 45,290 | 12,998 | 40.3 | ||||||||||||
|
|
|
|
|||||||||||||
Construction Segment: |
||||||||||||||||
External revenue |
6,576 | 6,398 | (178 | ) | (2.7 | ) | ||||||||||
Internal revenue |
1,034 | 1,014 | (20 | ) | (1.9 | ) | ||||||||||
|
|
|
|
|||||||||||||
Total revenue from Construction Segment |
7,610 | 7,413 | (197 | ) | (2.6 | ) | ||||||||||
|
|
|
|
|||||||||||||
Others Segment: |
||||||||||||||||
External revenue |
2,979 | 3,775 | 796 | 26.7 | ||||||||||||
Internal revenue |
2,610 | 3,013 | 403 | 15.4 | ||||||||||||
|
|
|
|
|||||||||||||
Total revenue from Others Segment |
5,588 | 6,788 | 1,199 | 21.5 | ||||||||||||
|
|
|
|
|||||||||||||
Total revenue prior to consolidation adjustments |
89,749 | 123,040 | 33,291 | 37.1 | ||||||||||||
|
|
|
|
|||||||||||||
Consolidation adjustments |
(31,956 | ) | (46,707 | ) | (14,751 | ) | 46.2 | |||||||||
Basis difference adjustments (1) |
(326 | ) | (323 | ) | 3 | (0.9 | ) | |||||||||
|
|
|
|
|||||||||||||
Revenue |
₩ |
57,467 | ₩ |
76,009 | 18,543 | 32.3 | ||||||||||
|
|
|
|
(1) | Basis difference adjustments are related to the difference in recognizing revenue and expenses of the Construction Segment in connection with the development and sale of certain residential real estate between the report reviewed by the chief executive officer and the consolidated financial statements. See Notes 3 and 40 to the Consolidated Financial Statements. |
• | The unit sales prices in Won of each of our principal product lines increased from 2020 to 2021. The unit sales prices in Won of hot rolled products, plates, wire rods, cold rolled products, stainless steel products and silicon steel sheets produced by us and directly sold |
to external customers increased by 52.6%, 50.1%, 35.7%, 35.5%, 25.3% and 22.8%, respectively, from 2020 to 2021. For a discussion of changes in the unit sales prices of each of our principal product lines, see “— Overview — Sales Volume, Prices and Product Mix” above. |
• | The sales volume of hot rolled products, wire rods, plates and cold rolled products increased from 2020 to 2021, the impact of which was partially offset by decreases in the sales volume of silicon steel sheets and stainless steel products from 2020 to 2021. The sales volume of hot rolled products, wire rods, plates and cold rolled products produced by us and directly sold to external customers increased by 7.6%, 5.5%, 1.1% and 0.3%, respectively, from 2020 to 2021. On the other hand, the sales volume of silicon steel sheets and stainless steel products produced by us and directly sold to external customers decreased by 17.1% and 0.2%, respectively, from 2020 to 2021. For a discussion of changes in the sales volume of each of our principal product lines, see “Item 4.B. Business Overview — Major Products.” |
Changes |
||||||||||||||||
For the Year Ended December 31, |
2020 versus 2021 |
|||||||||||||||
2020 |
2021 |
Amount |
% |
|||||||||||||
(In billions of Won) |
||||||||||||||||
Steel Segment |
₩ |
41,598 | ₩ |
53,644 | ₩ |
12,046 | 29.0 | % | ||||||||
Trading Segment |
31,258 | 44,018 | 12,760 | 40.8 | ||||||||||||
Construction Segment |
6,904 | 6,532 | (372 | ) | (5.4 | ) | ||||||||||
Others Segment |
4,874 | 6,007 | 1,133 | 23.2 | ||||||||||||
Consolidation adjustments |
(31,562 | ) | (45,750 | ) | (14,188 | ) | 45.0 | |||||||||
Basis difference adjustments (1) |
(274 | ) | (297 | ) | (23 | ) | 8.4 | |||||||||
|
|
|
|
|||||||||||||
Cost of sales |
₩ |
52,799 | ₩ |
64,154 | 11,356 | 21.5 | ||||||||||
|
|
|
|
(1) | Basis difference adjustments are related to the difference in recognizing revenue and expenses of the Construction Segment in connection with the development and sale of certain residential real estate between the report reviewed by the chief executive officer and the consolidated financial statements. See Notes 3 and 40 to the Consolidated Financial Statements. |
Changes |
||||||||||||||||
For the Year Ended December 31, |
2020 versus 2021 |
|||||||||||||||
2020 |
2021 |
Amount |
% |
|||||||||||||
(In billions of Won) |
||||||||||||||||
Steel Segment |
₩ |
2,660 | ₩ |
9,905 | ₩ |
7,245 | 272.3 | % | ||||||||
Trading Segment |
1,034 | 1,272 | 238 | 23.1 | ||||||||||||
Construction Segment |
706 | 881 | 175 | 24.7 | ||||||||||||
Others Segment |
714 | 781 | 66 | 9.3 | ||||||||||||
Consolidation adjustments |
(394 | ) | (958 | ) | (563 | ) | 142.8 | |||||||||
Basis difference adjustments (1) |
(52 | ) | (26 | ) | 26 | (49.8 | ) | |||||||||
|
|
|
|
|||||||||||||
Gross profit |
₩ |
4,668 | ₩ |
11,855 | 7,187 | 154.0 | ||||||||||
|
|
|
|
(1) | Basis difference adjustments are related to the difference in recognizing revenue and expenses of the Construction Segment in connection with the development and sale of certain residential real estate between the report reviewed by the chief executive officer and the consolidated financial statements. See Notes 3 and 40 to the Consolidated Financial Statements. |
Changes |
||||||||||||||||
For the Year Ended December 31, |
2020 versus 2021 |
|||||||||||||||
2020 |
2021 |
Amount |
% |
|||||||||||||
(In billions of Won) |
||||||||||||||||
Impairment loss on trade accounts and notes receivable |
₩ |
1 | ₩ |
40 | ₩ |
39 | N.M. | (1) | ||||||||
|
|
|
|
|||||||||||||
Freight and custody expenses |
₩ |
181 | ₩ |
193 | ₩ |
12 | 6.9 | % | ||||||||
Sales commissions |
87 | 65 | (21 | ) | (24.7 | ) | ||||||||||
Sales insurance premium |
30 | 41 | 11 | 35.3 | ||||||||||||
Contract cost |
46 | 61 | 15 | 32.9 | ||||||||||||
Others |
33 | 32 | (1 | ) | (2.4 | ) | ||||||||||
|
|
|
|
|||||||||||||
Total selling expenses |
₩ |
377 | ₩ |
393 | 16 | 4.3 | ||||||||||
|
|
|
|
|||||||||||||
Wages and salaries |
₩ |
829 | ₩ |
942 | ₩ |
113 | 13.7 | % | ||||||||
Expenses related to post-employment benefits |
83 | 143 | 60 | 71.7 | ||||||||||||
Other employee benefits |
187 | 207 | 20 | 10.7 | ||||||||||||
Depreciation |
146 | 144 | (2 | ) | (1.7 | ) | ||||||||||
Amortization |
115 | 87 | (28 | ) | (24.3 | ) | ||||||||||
Taxes and public dues |
59 | 86 | 27 | 44.8 | ||||||||||||
Rental |
35 | 29 | (6 | ) | (18.0 | ) | ||||||||||
Advertising |
72 | 89 | 17 | 24.4 | ||||||||||||
Research and development |
116 | 123 | 7 | 5.9 | ||||||||||||
Service fees |
157 | 187 | 31 | 19.6 | ||||||||||||
Others |
140 | 173 | 33 | 23.3 | ||||||||||||
|
|
|
|
|||||||||||||
Total other administrative expenses |
₩ |
1,940 | ₩ |
2,210 | 270 | 13.9 | ||||||||||
|
|
|
|
|||||||||||||
Total selling and administrative expenses |
₩ |
2,317 | ₩ |
2,643 | 326 | 14.1 | ||||||||||
|
|
|
|
(1) | N.M. means not meaningful. |
• | Our wages and salaries increased by 13.7%, or Won 113 billion, from Won 829 billion in 2020 to Won 942 billion in 2021 primarily due to increases in bonus payments and our wage level. |
• | Our expenses related to post-employment benefits increased by 71.7%, or Won 60 billion, from Won 83 billion in 2020 to Won 143 billion in 2021 primarily due to increases in retirement allowances provided by POSCO E&C and POSCO ICT Co., Ltd. in 2021. |
• | Our impairment loss on trade accounts and notes receivable increased by Won 39 billion from Won 1 billion in 2020 to Won 40 billion in 2021 primarily related to impairment of trade accounts and notes receivable of POSCO International. |
• | Our service fees increased by 19.6%, or Won 31 billion, from Won 157 billion in 2020 to Won 187 billion in 2021 primarily due to an increase in payment guarantee fees reflecting an increase in our revenue. |
• | Our amortization decreased by 24.3%, or Won 28 billion, from Won 115 billion in 2020 to Won 87 billion in 2021 primarily due to completion of amortization of some of our major intangible assets. |
• | Our sales commissions decreased by 24.7%, or Won 21 billion, from Won 87 billion in 2020 to Won 65 billion in 2021 primarily reflecting a decrease in sales commission rates reflecting a recovery in demand for steel products. |
Changes |
||||||||||||||||
For the Year Ended December 31, |
2020 versus 2021 |
|||||||||||||||
2020 |
2021 |
Amount |
% |
|||||||||||||
(In billions of Won) |
||||||||||||||||
Impairment loss (reversal of impairment loss) on other receivables |
₩ |
53 | ₩ |
(13) | ₩ |
(66) | NA | (1) |
(1) | N.A. means not applicable. |
Changes |
||||||||||||||||
For the Year Ended December 31, |
2020 versus 2021 |
|||||||||||||||
2020 |
2021 |
Amount |
% |
|||||||||||||
(In billions of Won) |
||||||||||||||||
Gain on disposal of assets held for sale |
₩ |
1 | ₩ |
60 | ₩ |
59 | N.M. | (1) | ||||||||
Gain on disposal of investments in subsidiaries, associates and joint ventures |
89 | 86 | (3 | ) | (3.2 | ) | ||||||||||
Gain on disposal of property, plant and equipment |
16 | 12 | (4 | ) | (22.7 | ) | ||||||||||
Gain on disposal of intangible assets |
1 | — | (1 | ) | (100.0 | ) | ||||||||||
Gain on valuation of firm commitment |
108 | 169 | 62 | 57.6 | ||||||||||||
Gain on disposal of emission rights |
25 | 1 | (24 | ) | (97.7 | ) | ||||||||||
Reversal of other provisions |
5 | 34 | 29 | 557.5 | ||||||||||||
Premium income |
25 | 38 | 13 | 50.9 | ||||||||||||
Others |
134 | 177 | 44 | 32.9 | ||||||||||||
Total other operating income |
₩ |
402 | ₩ |
578 | 176 | 43.7 | ||||||||||
|
|
|
|
(1) | N.M. means not meaningful. |
• | Our gain on valuation of firm commitment increased by 57.6%, or Won 62 billion, from Won 108 billion in 2020 to Won 169 billion in 2021 primarily due to an increase in valuation of firm commitment of POSCO International. |
• | Our gain on disposal of assets held for sale increased by Won 59 billion from Won 1 billion in 2020 to Won 60 billion in 2021 primarily due to compensation we received from the transfer of the Yang-Hak Park site in 2021. |
• | Our reversal of other provisions increased by 557.5%, or Won 29 billion, from Won 5 billion in 2020 to Won 34 billion in 2021 primarily due to a reversal of provisions relating to loans to Daewoo Motors India guaranteed by POSCO International. |
• | We recognized gain on disposal of emission rights of Won 25 billion in 2020, compared to Won 1 billion of such gain in 2021. |
Changes |
||||||||||||||||
For the Year Ended December 31, |
2020 versus 2021 |
|||||||||||||||
2020 |
2021 |
Amount |
% |
|||||||||||||
(In billions of Won) |
||||||||||||||||
Impairment loss on assets held for sale |
₩ |
5 | ₩ |
— | ₩ |
(5 | ) | (100.0 | )% | |||||||
Loss on disposals of investments in subsidiaries, associates and joint ventures |
15 | 13 | (2 | ) | (12.0 | ) | ||||||||||
Loss on disposals of property, plant and equipment |
142 | 96 | (46 | ) | (32.7 | ) | ||||||||||
Impairment loss on property, plant and equipment |
27 | 312 | 284 | 1,052.1 | ||||||||||||
Impairment loss on intangible assets |
197 | 224 | 27 | 13.4 | ||||||||||||
Loss on valuation of firm commitment |
93 | 112 | 18 | 19.8 | ||||||||||||
Idle tangible asset expenses |
19 | 24 | 5 | 23.7 | ||||||||||||
Increase to provisions |
30 | 37 | 7 | 24.3 | ||||||||||||
Donations |
46 | 101 | 56 | 121.8 | ||||||||||||
Others |
70 | 108 | 38 | 54.0 | ||||||||||||
|
|
|
|
|||||||||||||
Total other operating expenses |
₩ |
646 | ₩ |
1,027 | 382 | 59.2 | ||||||||||
|
|
|
|
• | Our impairment loss on property, plant and equipment increased by 1,052.1%, or Won 284 billion, from Won 27 billion in 2020 to Won 312 billion in 2021. In 2020, we recognized impairment loss of Won 17 billion related to a fire at a stainless steel production facility at Pohang Works. In 2021, we recognized impairment loss of Won 218 billion related to the reclassification of a synthetic natural gas facility as an asset held for sale and Won 28 billion related to a coal mine in Australia invested by POSCO International. |
• | Our donations increased by 121.8%, or Won 56 billion, from Won 46 billion in 2020 to Won 101 billion in 2021 primarily due to increases in donations to welfare funds of small and medium-sized suppliers of POSCO International and POSCO. |
• | We recognized loss on disposal of property, plant and equipment of Won 142 billion in 2020 and Won 96 billion in 2021 that related primarily to disposal of property, plant and equipment from upgrading of production facilities of POSCO. |
Changes |
||||||||||||||||
For the Year Ended December 31, |
2020 versus 2021 |
|||||||||||||||
2020 |
2021 |
Amount |
% |
|||||||||||||
(In billions of Won) |
||||||||||||||||
Interest income |
₩ |
372 | ₩ |
292 | ₩ |
(80 | ) | (21.5 | )% | |||||||
Dividend income |
38 | 74 | 36 | 94.1 | ||||||||||||
Gain on foreign currency transactions |
1,148 | 1,080 | (68 | ) | (5.9 | ) | ||||||||||
Gain on foreign currency translations |
574 | 298 | (276 | ) | (48.0 | ) | ||||||||||
Gain on derivatives transactions |
352 | 402 | 50 | 14.3 | ||||||||||||
Gain on valuations of derivatives |
116 | 371 | 255 | 220.6 | ||||||||||||
Gain on disposals of financial assets at fair value through profit or loss |
16 | 20 | 5 | 29.1 | ||||||||||||
Gain on valuations of financial assets at fair value through profit or loss |
52 | 102 | 50 | 97.2 | ||||||||||||
Gain on valuations of financial liabilities at fair value through profit or loss |
— | 54 | 54 | N.A. | (1) | |||||||||||
Others |
10 | 36 | 26 | 260.7 | ||||||||||||
|
|
|
|
|||||||||||||
Total finance income |
₩ |
2,677 | ₩ |
2,730 | 53 | 2.0 | ||||||||||
|
|
|
|
|||||||||||||
Interest expenses |
₩ |
639 | ₩ |
440 | (199 | ) | (31.1 | ) | ||||||||
Loss on foreign currency transactions |
1,068 | 985 | (83 | ) | (7.7 | ) | ||||||||||
Loss on foreign currency translations |
425 | 555 | 129 | 30.4 | ||||||||||||
Loss on derivatives transactions |
410 | 497 | 87 | 21.2 | ||||||||||||
Loss on valuations of derivatives |
230 | 101 | (128 | ) | (55.9 | ) | ||||||||||
Loss on disposal of trade accounts and notes receivable |
16 | 18 | 2 | 12.3 | ||||||||||||
Loss on disposal of financial assets at fair value through profit or loss |
6 | 8 | 2 | 42.7 | ||||||||||||
Loss on valuations of financial assets at fair value through profit or loss |
67 | 114 | 46 | 68.7 | ||||||||||||
Others |
32 | 48 | 16 | 49.9 | ||||||||||||
|
|
|
|
|||||||||||||
Total finance costs |
₩ |
2,892 | ₩ |
2,765 | (127 | ) | (4.4 | ) | ||||||||
|
|
|
|
(1) | N.A. means not available. |
Changes |
||||||||||||||||
For the Year Ended December 31, |
2020 versus 2021 |
|||||||||||||||
2020 |
2021 |
Amount |
% |
|||||||||||||
(In billions of Won) |
||||||||||||||||
Steel Segment |
₩ |
712 | ₩ |
6,588 | ₩ |
5,876 | 825.4 | % | ||||||||
Trading Segment |
157 | 325 | 168 | 106.7 | ||||||||||||
Construction Segment |
150 | 164 | 14 | 9.5 | ||||||||||||
Others Segment |
294 | 361 | 67 | 23.0 | ||||||||||||
Goodwill and corporate fair value adjustments |
(75 | ) | (63 | ) | 12 | (16.3 | ) | |||||||||
Elimination of inter-segment profits |
550 | (180 | ) | (730 | ) | N.A. | (2) | |||||||||
Income tax expense |
237 | 2,220 | 1,983 | 837.0 | ||||||||||||
Basis difference adjustments (1) |
(52 | ) | (26 | ) | 26 | (49.8 | ) | |||||||||
|
|
|
|
|||||||||||||
Profit before income taxes |
₩ |
1,973 | ₩ |
9,390 | 7,417 | 376.0 | ||||||||||
|
|
|
|
(1) | Basis difference adjustments are related to the difference in recognizing revenue and expenses of the Construction Segment in connection with the development and sale of certain residential real estate between the report reviewed by the chief executive officer and the consolidated financial statements. See Notes 3 and 40 to the Consolidated Financial Statements. |
(2) | N.A. means not applicable. |
Changes |
||||||||||||||||
For the Year Ended December 31, |
2019 versus 2020 |
|||||||||||||||
2019 |
2020 |
Amount |
% |
|||||||||||||
(In billions of Won) |
||||||||||||||||
Revenue |
₩ |
64,786 | ₩ |
57,467 | ₩ |
(7,319 | ) | (11.3 | )% | |||||||
Cost of sales |
58,462 | 52,799 | (5,664 | ) | (9.7 | ) | ||||||||||
|
|
|
|
|||||||||||||
Gross profit |
6,324 | 4,668 | (1,656 | ) | (26.2 | ) | ||||||||||
Selling and administrative expenses: |
||||||||||||||||
Impairment loss (reversal of impairment loss) on trade accounts and notes receivable |
(28 | ) | 1 | 29 | N.A. | (1) | ||||||||||
Other administrative expenses |
2,041 | 1,940 | (102 | ) | (5.0 | ) | ||||||||||
Selling expenses |
368 | 377 | 9 | 2.3 | ||||||||||||
Other operating income and expenses: |
||||||||||||||||
Impairment loss on other receivables |
80 | 53 | (27 | ) | (33.9 | ) | ||||||||||
Other operating income |
451 | 402 | (49 | ) | (10.8 | ) | ||||||||||
Other operating expenses |
1,090 | 646 | (444 | ) | (40.8 | ) | ||||||||||
|
|
|
|
|||||||||||||
Operating profit |
3,223 | 2,054 | (1,168 | ) | (36.3 | ) | ||||||||||
Share of profit of equity-accounted investees, net |
274 | 133 | (140 | ) | (51.3 | ) | ||||||||||
Finance income |
1,872 | 2,677 | 805 | 43.0 | ||||||||||||
Finance costs |
2,242 | 2,892 | 650 | 29.0 | ||||||||||||
|
|
|
|
|||||||||||||
Profit before income tax |
3,127 | 1,973 | (1,154 | ) | (36.9 | ) | ||||||||||
Income tax expense |
1,088 | 224 | (864 | ) | (79.4 | ) | ||||||||||
|
|
|
|
|||||||||||||
Profit |
2,038 | 1,748 | (290 | ) | (14.2 | ) | ||||||||||
Profit for the period attributable to owners of the controlling company |
1,864 | 1,581 | (283 | ) | (15.2 | ) | ||||||||||
Profit for the period attributable to non-controlling interests |
174 | 167 | (6 | ) | (3.7 | ) |
(1) | N.A. means not applicable. |
Changes |
||||||||||||||||
For the Year Ended December 31, |
2019 versus 2020 |
|||||||||||||||
2019 |
2020 |
Amount |
% |
|||||||||||||
(In billions of Won) |
||||||||||||||||
Steel Segment: |
||||||||||||||||
External revenue |
₩ |
32,078 | ₩ |
28,893 | ₩ |
(3,186 | ) | (9.9 | )% | |||||||
Internal revenue |
17,730 | 15,365 | (2,365 | ) | (13.3 | ) | ||||||||||
|
|
|
|
|||||||||||||
Total revenue from Steel Segment |
49,808 | 44,258 | (5,550 | ) | (11.1 | ) | ||||||||||
|
|
|
|
|||||||||||||
Trading Segment: |
||||||||||||||||
External revenue |
22,157 | 19,345 | (2,812 | ) | (12.7 | ) | ||||||||||
Internal revenue |
15,468 | 12,947 | (2,521 | ) | (16.3 | ) | ||||||||||
|
|
|
|
|||||||||||||
Total revenue from Trading Segment |
37,625 | 32,292 | (5,333 | ) | (14.2 | ) | ||||||||||
|
|
|
|
|||||||||||||
Construction Segment: |
||||||||||||||||
External revenue |
6,945 | 6,576 | (369 | ) | (5.3 | ) | ||||||||||
Internal revenue |
743 | 1,034 | 290 | 39.1 | ||||||||||||
|
|
|
|
|||||||||||||
Total revenue from Construction Segment |
7,688 | 7,610 | (78 | ) | (1.0 | ) | ||||||||||
|
|
|
|
|||||||||||||
Others Segment: |
||||||||||||||||
External revenue |
3,187 | 2,979 | (208 | ) | (6.5 | ) | ||||||||||
Internal revenue |
2,796 | 2,610 | (186 | ) | (6.7 | ) | ||||||||||
|
|
|
|
|||||||||||||
Total revenue from Others Segment |
5,983 | 5,588 | (394 | ) | (6.6 | ) | ||||||||||
|
|
|
|
|||||||||||||
Total revenue prior to consolidation adjustments |
101,104 | 89,749 | (11,355 | ) | (11.2 | ) | ||||||||||
|
|
|
|
|||||||||||||
Consolidation adjustments |
(36,737 | ) | (31,956 | ) | 4,781 | (13.0 | ) | |||||||||
Basis difference adjustments (1) |
419 | (326 | ) | (745 | ) | N.A. | (2) | |||||||||
|
|
|
|
|||||||||||||
Revenue |
₩ |
64,786 | ₩ |
57,467 | (7,319 | ) | (11.3 | ) | ||||||||
|
|
|
|
(1) | Basis difference adjustments are related to the difference in recognizing revenue and expenses of the Construction Segment in connection with the development and sale of certain residential real estate between the report reviewed by the chief executive officer and the consolidated financial statements. See Notes 3 and 40 to the Consolidated Financial Statements. |
(2) | N.A. means not applicable. |
• | The unit sales prices in Won of each of our principal product lines, other than silicon steel sheets, decreased from 2019 to 2020. The unit sales prices in Won of plates, wire rods, cold rolled products, hot rolled products and stainless steel products produced by us and directly sold to external customers decreased by 13.0%, 8.8%, 8.1%, 6.1% and 3.1%, respectively, from 2019 to 2020. On the other hand, the unit sales price in Won of silicon steel sheets increased by 11.5% from 2019 to 2020. For a discussion of changes in the unit sales prices of each of our principal product lines, see “— Overview — Sales Volume, Prices and Product Mix” above. |
• | The sales volume of plates, cold rolled products and wire rods decreased from 2019 to 2020, the impact of which was partially offset by increases in the sales volume of silicon steel sheets, hot rolled products and stainless steel products from 2019 to 2020. The sales volume of plates, cold rolled products and wire rods produced by us and directly sold to external customers decreased by 11.7%, 7.6% and 6.7%, respectively, from 2019 to 2020. On the other hand, the sales volume of silicon steel sheets, hot rolled products and stainless steel products produced by us and directly sold to external customers increased by 8.6%, 4.4% and 0.6%, respectively, from 2019 to 2020. For a discussion of changes in the sales volume of each of our principal product lines, see “Item 4.B. Business Overview — Major Products.” |
Changes |
||||||||||||||||
For the Year Ended December 31, |
2019 versus 2020 |
|||||||||||||||
2019 |
2020 |
Amount |
% |
|||||||||||||
(In billions of Won) |
||||||||||||||||
Steel Segment |
₩ |
45,642 | ₩ |
41,598 | ₩ |
(4,044 | ) | (8.9 | )% | |||||||
Trading Segment |
36,330 | 31,258 | (5,072 | ) | (14.0 | ) | ||||||||||
Construction Segment |
7,155 | 6,904 | (251 | ) | (3.5 | ) | ||||||||||
Others Segment |
5,324 | 4,874 | (450 | ) | (8.5 | ) | ||||||||||
Consolidation adjustments |
(36,334 | ) | (31,562 | ) | 4,772 | (13.1 | ) | |||||||||
Basis difference adjustments (1) |
346 | (274 | ) | (619 | ) | N.A. | (2) | |||||||||
|
|
|
|
|||||||||||||
Cost of sales |
₩ |
58,462 | ₩ |
52,799 | (5,664) | (9.7 | ) | |||||||||
|
|
|
|
(1) | Basis difference adjustments are related to the difference in recognizing revenue and expenses of the Construction Segment in connection with the development and sale of certain residential real estate between the report reviewed by the chief executive officer and the consolidated financial statements. See Notes 3 and 40 to the Consolidated Financial Statements. |
(2) | N.A. means not applicable. |
Changes |
||||||||||||||||
For the Year Ended December 31, |
2019 versus 2020 |
|||||||||||||||
2019 |
2020 |
Amount |
% |
|||||||||||||
(In billions of Won) |
||||||||||||||||
Steel Segment |
₩ |
4,166 | ₩ |
2,660 | ₩ |
(1,506) | (36.1 | )% | ||||||||
Trading Segment |
1,295 | 1,034 | (261 | ) | (20.1 | ) | ||||||||||
Construction Segment |
533 | 706 | 173 | 32.5 | ||||||||||||
Others Segment |
659 | 714 | 56 | 8.4 | ||||||||||||
Consolidation adjustments |
(403 | ) | (394 | ) | 8 | (2.1 | ) | |||||||||
Basis difference adjustments (1) |
73 | (52 | ) | (126 | ) | N.A. | (2) | |||||||||
|
|
|
|
|||||||||||||
Gross profit |
₩ |
6,324 | ₩ |
4,668 | (1,656 | ) | (26.2 | ) | ||||||||
|
|
|
|
(1) | Basis difference adjustments are related to the difference in recognizing revenue and expenses of the Construction Segment in connection with the development and sale of certain residential real estate between the report reviewed by the chief executive officer and the consolidated financial statements. See Notes 3 and 40 to the Consolidated Financial Statements. |
(2) | N.A. means not applicable. |
Changes |
||||||||||||||||
For the Year Ended December 31, |
2019 versus 2020 |
|||||||||||||||
2019 |
2020 |
Amount |
% |
|||||||||||||
(In billions of Won) |
||||||||||||||||
Impairment loss (reversal of impairment loss) on trade accounts and notes receivable |
₩ |
(28 | ) | ₩ |
1 | ₩ |
29 | N.A. | (1) | |||||||
|
|
|
|
|||||||||||||
Freight and custody expenses |
₩ |
180 | ₩ |
181 | ₩ |
0 | 0.1 | % | ||||||||
Sales commissions |
74 | 87 | 13 | 17.5 | ||||||||||||
Sales promotion |
10 | 7 | (3 | ) | (29.1 | ) | ||||||||||
Sales insurance premium |
33 | 30 | (2 | ) | (7.0 | ) | ||||||||||
Contract cost |
38 | 46 | 8 | 21.4 | ||||||||||||
Others |
33 | 26 | (7 | ) | (22.3 | ) | ||||||||||
|
|
|
|
|||||||||||||
Total selling expenses |
₩ |
368 | ₩ |
377 | 9 | 2.3 | ||||||||||
|
|
|
|
|||||||||||||
Wages and salaries |
₩ |
841 | ₩ |
829 | ₩ |
(12 | ) | (1.4 | )% | |||||||
Expenses related to post-employment benefits |
89 | 83 | (6 | ) | (6.6 | ) | ||||||||||
Other employee benefits |
178 | 187 | 9 | 5.2 | ||||||||||||
Depreciation |
131 | 146 | 15 | 11.5 | ||||||||||||
Amortization |
112 | 115 | 3 | 2.7 | ||||||||||||
Taxes and public dues |
79 | 59 | (20 | ) | (24.9 | ) | ||||||||||
Rental |
40 | 35 | (5 | ) | (12.3 | ) | ||||||||||
Advertising |
83 | 72 | (11 | ) | (13.1 | ) | ||||||||||
Research and development |
110 | 116 | 6 | 5.4 | ||||||||||||
Service fees |
193 | 157 | (37 | ) | (19.1 | ) | ||||||||||
Others |
185 | 140 | (45 | ) | (24.2 | ) | ||||||||||
|
|
|
|
|||||||||||||
Total other administrative expenses |
₩ |
2,041 | ₩ |
1,940 | (102 | ) | (5.0 | ) | ||||||||
|
|
|
|
|||||||||||||
Total selling and administrative expenses |
₩ |
2,381 | ₩ |
2,317 | (64 | ) | (2.7 | ) | ||||||||
|
|
|
|
(1) | N.A. means not applicable. |
• | Our service fees decreased by 19.1%, or Won 37 billion, from Won 193 billion in 2019 to Won 157 billion in 2020 primarily due to decreases in brokerage fees relating to imports and exports and third-party consulting fees. |
• | Taxes and public fees decreased by 24.9%, or Won 20 billion, from Won 79 billion in 2019 to Won 59 billion in 2020 primarily due to the business combination of our LNG storage facilities and off-gas combined cycle power plants in 2019, which were not repeated in 2020. |
• | Our wages and salaries decreased by 1.4%, or Won 12 billion, from Won 841 billion in 2019 to Won 829 billion in 2020 primarily due to a decrease in the employees of POSCO ICT Co., Ltd. |
• | We recognized reversal of such impairment loss of Won 28 billion in 2019 primarily due to a reversal of impairment loss on trade accounts and notes receivables of POSCO E&C. On the other hand, in 2020, we recognized impairment loss on trade accounts and notes receivables of Won 1 billion primarily due to impairment loss on accounts receivables of Donghoon SP Co., Ltd. |
• | Our depreciation increased by 11.5%, or Won 15 billion, from Won 131 billion in 2019 to Won 146 billion in 2020 primarily due to acquisitions of new assets, including silos in Pohang Works, by us and POSCO Energy. |
• | Our sales commissions increased by 17.5%, or Won 13 billion, from Won 74 billion in 2019 to Won 87 billion in 2020 primarily due to an increase sales commission related to claims. |
Changes |
||||||||||||||||
For the Year Ended December 31, |
2019 versus 2020 |
|||||||||||||||
2019 |
2020 |
Amount |
% |
|||||||||||||
(In billions of Won) |
||||||||||||||||
Impairment loss on other receivables |
₩ |
80 | ₩ |
53 | ₩ |
(27) | (33.9 | )% |
Changes |
||||||||||||||||
For the Year Ended December 31, |
2019 versus 2020 |
|||||||||||||||
2019 |
2020 |
Amount |
% |
|||||||||||||
(In billions of Won) |
||||||||||||||||
Gain on disposal of assets held for sale |
₩ |
37 | ₩ |
1 | ₩ |
(37 | ) | (97.8 | )% | |||||||
Gain on disposal of investments in subsidiaries, associates and joint ventures |
28 | 89 | 61 | 219.1 | ||||||||||||
Gain on disposal of property, plant and equipment |
49 | 16 | (34 | ) | (68.5 | ) | ||||||||||
Gain on disposal of intangible assets |
2 | 1 | (1 | ) | (57.0 | ) | ||||||||||
Gain on valuation of firm commitment |
60 | 108 | 47 | 78.6 | ||||||||||||
Gain on valuation of emission rights |
25 | — | (25 | ) | (100.0 | ) | ||||||||||
Gain on disposal of emission rights |
11 | 25 | 14 | 123.1 | ||||||||||||
Reversal of other provisions |
37 | 5 | (31 | ) | (85.9 | ) | ||||||||||
Premium income |
3 | 25 | 22 | 659.3 | ||||||||||||
Others |
198 | 134 | (64 | ) | (32.5 | ) | ||||||||||
|
|
|
|
|||||||||||||
Total other operating income |
₩ |
451 | ₩ |
402 | (49 | ) | (10.8 | ) | ||||||||
|
|
|
|
• | In 2019, we recognized a refund of Won 74 billion of value added tax related to imported LNG (which is included in “others”), compared to no such refund in 2020. |
• | Our gain on disposal of assets held for sale decreased by 97.8%, or Won 37 billion, from Won 37 billion in 2019 to Won 1 billion in 2020. In 2019, we recognized gain from our disposal of FINEX plant no. 1, compared to no such gain in 2020. |
• | Our gain on disposal of property, plant and equipment decreased by 68.5%, or Won 34 billion, from Won 49 billion in 2019 to Won 16 billion in 2020 primarily due to gains from the disposal of equipment of FINEX plant no. 1 in 2019, compared to no such gain in 2020. |
• | Our reversal of other provisions decreased by 85.9%, or Won 31 billion, from Won 37 billion in 2019 to Won 5 billion in 2020 primarily due to a reversal of other provisions relating to a lawsuit involving POSCO E&C in 2019, compared to no such reversal in 2020 |
• | Our gain on disposal of investments in subsidiaries, associates and joint ventures increased by 219.1%, or Won 61 billion, from Won 28 billion in 2019 to Won 89 billion in 2020. In 2019, we recognized gain on disposal of investments in subsidiaries, associates and joint ventures primarily related to our disposal of POSPOWER Co., Ltd. In 2020, such gain primarily related to our disposal of investments in Incheon-Gimpo Expressway Co. Ltd. |
Changes |
||||||||||||||||
For the Year Ended December 31, |
2019 versus 2020 |
|||||||||||||||
2019 |
2020 |
Amount |
% |
|||||||||||||
(In billions of Won) |
||||||||||||||||
Impairment loss on assets held for sale |
₩ |
38 | ₩ |
5 | ₩ |
(33 | ) | (86.9 | )% | |||||||
Loss on disposals of investments in subsidiaries, associates and joint ventures |
7 | 15 | 8 | 123.8 | ||||||||||||
Loss on disposals of property, plant and equipment |
120 | 142 | 22 | 18.2 | ||||||||||||
Impairment loss on property, plant and equipment |
443 | 27 | (416 | ) | (93.9 | ) | ||||||||||
Impairment loss on investment property |
33 | — | (33 | ) | (100.0 | ) | ||||||||||
Impairment loss on intangible assets |
191 | 197 | 7 | 3.5 | ||||||||||||
Loss on valuation of firm commitment |
38 | 93 | 55 | 147.0 | ||||||||||||
Idle tangible asset expenses |
34 | 19 | (15 | ) | (43.6 | ) | ||||||||||
Increase to provisions |
23 | 30 | 7 | 32.3 | ||||||||||||
Donations |
52 | 46 | (6 | ) | (11.5 | ) | ||||||||||
Others |
112 | 70 | (42 | ) | (37.2 | ) | ||||||||||
|
|
|
|
|||||||||||||
Total other operating expenses |
₩ |
1,090 | ₩ |
646 | (444 | ) | (40.8 | ) | ||||||||
|
|
|
|
• | Our impairment loss on property, plant and equipment decreased by 93.9%, or Won 416 billion, from Won 443 billion in 2019 to Won 27 billion in 2020. In 2019, we recognized impairment loss of Won 205 billion incurred by POSCO VINA, Won 74 billion related to the discontinued operation of a ferro silicon facility in Pohang Works and Won 70 billion related to the discontinued operation of a compact endless cast-rolling mill in Gwangyang Works. In 2020, we recognized impairment loss of Won 17 billion related to a fire at a stainless steel production facility at Pohang Works. |
• | Our loss on valuation of firm commitment increased by 147.0%, or Won 55 billion, from Won 38 billion in 2019 to Won 93 billion in 2020 primarily due to an increase in loss on valuation of derivatives relating to POSCO International. |
Changes |
||||||||||||||||
For the Year Ended December 31, |
2019 versus 2020 |
|||||||||||||||
2019 |
2020 |
Amount |
% |
|||||||||||||
(In billions of Won) |
||||||||||||||||
Interest income |
₩ |
352 | ₩ |
372 | ₩ |
20 | 5.6 | % | ||||||||
Dividend income |
75 | 38 | (37 | ) | (49.2 | ) | ||||||||||
Gain on foreign currency transactions |
825 | 1,148 | 323 | 39.2 | ||||||||||||
Gain on foreign currency translations |
206 | 574 | 368 | 178.8 | ||||||||||||
Gain on derivatives transactions |
196 | 352 | 156 | 79.7 | ||||||||||||
Gain on valuations of derivatives |
163 | 116 | (48 | ) | (29.3 | ) | ||||||||||
Gain on disposals of financial assets at fair value through profit or loss |
9 | 16 | 7 | 82.4 | ||||||||||||
Gain on valuations of financial assets at fair value through profit or loss |
42 | 52 | 9 | 21.9 | ||||||||||||
Others |
3 | 10 | 7 | 189.1 | ||||||||||||
|
|
|
|
|||||||||||||
Total finance income |
₩ |
1,872 | ₩ |
2,677 | 805 | 43.0 | ||||||||||
|
|
|
|
|||||||||||||
Interest expenses |
₩ |
756 | ₩ |
639 | (117 | ) | (15.5 | ) | ||||||||
Loss on foreign currency transactions |
747 | 1,068 | 321 | 43.0 | ||||||||||||
Loss on foreign currency translations |
319 | 425 | 106 | 33.2 | ||||||||||||
Loss on derivatives transactions |
228 | 410 | 182 | 79.7 | ||||||||||||
Loss on valuations of derivatives |
47 | 230 | 182 | 383.7 | ||||||||||||
Loss on disposal of trade accounts and notes receivable |
37 | 16 | (21 | ) | (57.2 | ) | ||||||||||
Loss on disposal of financial assets at fair value through profit or loss |
3 | 6 | 3 | 87.6 | ||||||||||||
Loss on valuations of financial assets at fair value through profit or loss |
66 | 67 | 2 | 2.5 | ||||||||||||
Others |
39 | 32 | (7 | ) | (18.2 | ) | ||||||||||
|
|
|
|
|||||||||||||
Total finance costs |
₩ |
2,242 | ₩ |
2,892 | 650 | 29.0 | ||||||||||
|
|
|
|
Changes |
||||||||||||||||
For the Year Ended December 31, |
2019 versus 2020 |
|||||||||||||||
2019 |
2020 |
Amount |
% |
|||||||||||||
(In billions of Won) |
||||||||||||||||
Steel Segment |
₩ |
586 | ₩ |
712 | ₩ |
126 | 21.5 | % | ||||||||
Trading Segment |
165 | 157 | (8 | ) | (5.0 | ) | ||||||||||
Construction Segment |
28 | 150 | 122 | 439.9 | ||||||||||||
Others Segment |
545 | 294 | (251 | ) | (46.1 | ) | ||||||||||
Goodwill and corporate fair value adjustments |
(80 | ) | (75 | ) | 6 | (6.9 | ) | |||||||||
Elimination of inter-segment profits |
739 | 550 | (189 | ) | (25.5 | ) | ||||||||||
Income tax expense |
1,071 | 237 | (834 | ) | (77.9 | ) | ||||||||||
Basis difference adjustments (1) |
73 | (52 | ) | (126 | ) | N.A. | (2) | |||||||||
|
|
|
|
|||||||||||||
Profit before income taxes |
₩ |
3,127 | ₩ |
1,973 | (1,154 | ) | (36.9 | ) | ||||||||
|
|
|
|
(1) | Basis difference adjustments are related to the difference in recognizing revenue and expenses of the Construction Segment in connection with the development and sale of certain residential real estate between the report reviewed by the chief executive officer and the consolidated financial statements. See Notes 3 and 40 to the Consolidated Financial Statements. |
(2) | N.A. means not available. |
For the Year Ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
(In billions of Won) |
||||||||||||
Net cash provided by operating activities |
₩ |
6,005 | ₩ |
8,686 | ₩ |
6,259 | ||||||
Net cash used in investing activities |
(3,683 | ) | (6,259 | ) | (5,583 | ) | ||||||
Net cash used in financing activities |
(1,512 | ) | (1,091 | ) | (769 | ) | ||||||
Effect of exchange rate fluctuation on cash held |
62 | (95 | ) | 113 | ||||||||
Cash and cash equivalents at beginning of the period |
2,644 | 3,515 | 4,756 | |||||||||
Cash and cash equivalents at end of the period |
3,515 | 4,756 | 4,776 | |||||||||
Net increase in cash and cash equivalents |
871 | 1,240 | 20 |
Project |
Expected Completion Date |
Total Cost of Project |
Estimated Remaining Cost of Completion as of December 31, 2021 |
|||||||||
(In billions of Won) |
||||||||||||
Construction of no. 6 cokes plant at Pohang Works |
December 2026 | ₩ |
1,712 | ₩ |
989 | |||||||
Rationalization of hot-rolling furnace no. 2 at Pohang Works |
October 2028 | 1,158 | 832 | |||||||||
Construction of electric steel production facilities at Gwangyang Works |
December 2025 | 909 | 909 | |||||||||
Construction of lithium brine commercialization facilities in Argentina |
April 2024 | 996 | 996 |
• | the Environmental, Social and Governance (“ESG”) Committee; |
• | the Director Candidate Recommendation Committee; |
• | the Evaluation and Compensation Committee; |
• | the Finance Committee; and |
• | the Audit Committee. |
Name |
Position |
Responsibilities and Division |
Years as Director |
Age |
Expiration of Term of Office | |||||||||
Choi, Jeong-Woo |
Chief Executive Officer and Representative Director |
— | 3 | 64 | March 2024 | |||||||||
Chon, Jung-Son |
Representative Director and President |
Head of Corporate Strategy Team, POSCO HOLDINGS INC. | 4 | 59 | March 2023 | |||||||||
Chung, Chang-Hwa |
Senior Executive Vice President |
Head of POSCO N.EX.T Hub, POSCO HOLDINGS INC. | 1 | 60 | March 2023 | |||||||||
Yoo, Byeong-Og |
Senior Executive Vice President |
Head of Green Materials and Energy Business Team, POSCO HOLDINGS INC. | — | 59 | March 2023 | |||||||||
Kim, Hag-Dong |
Non-standing Director |
Representative Director and Vice Chairman, POSCO | 3 | 62 | March 2023 |
Name |
Position |
Principal Occupation |
Years as Director |
Age |
Expiration of Term of Office |
|||||||||||
Kim, Sung-Jin |
Chairman | Former Minister, Ministry of Oceans and Fisheries | 4 | 72 | March 2024 | |||||||||||
Chang, Seung-Wha |
Director | Professor of Law, Seoul National University | 5 | 58 | March 2023 | |||||||||||
Pahk, Heui-Jae |
Director | Professor of Mechanical and Aerospace Engineering, Seoul National University | 3 | 60 | March 2025 | |||||||||||
Yoo, Young-Sook |
Director | Former Principal Research Scientist, Korea Institute of Science and Technology (KIST) | 1 | 66 | March 2024 | |||||||||||
Kwon, Tae-Kyun |
Director | Former Korean Ambassador to the United Arab Emirates | 1 | 66 | March 2024 | |||||||||||
Yoo, Jin-Nyong |
Director | Chief Executive Officer, Angel 6+ | — | 64 | March 2025 | |||||||||||
Sohn, Sung-Kyu |
Director | Professor, Yonsei University School of Business | — | 62 | March 2025 |
Name |
Position |
Responsibility and Division |
Age |
|||||
Oh, Seokkeun |
Executive Officer | Head of Communications Team | 60 | |||||
Jeong, Daehyung |
Executive Officer | Chief of Strategy and Business Development (Corporate Strategy Team) | 53 | |||||
Park, Jeong Bin |
Executive Officer | Chief of Investments (Corporate Strategy Team) | 53 | |||||
Kim, Youngjoong |
Executive Officer | Head of Steel Business Team | 57 | |||||
Kim, Wonhee |
Executive Officer | Head of Green Infrastructure Business Team | 56 | |||||
Chung, Kyungjin |
Executive Officer | Head of Finance Team | 56 | |||||
Seo, Sangchul |
Executive Officer | Chief of Taxes (Finance Team) | 58 | |||||
Yang, Byeongho |
Executive Officer | Head of ESG Team | 55 | |||||
Kim, Myeoungho |
Executive Officer | Co-chief of Corporate Legal (Corporate Legal Team) |
51 | |||||
Kwon, Youngkyun |
Executive Officer | Co-chief of Corporate Legal (Corpporate Legal Team) |
48 | |||||
Kim, Yongsoo |
Executive Officer | Head of Human Resources Management Team | 56 | |||||
Park, Jinwoo |
Executive Officer | Chief of Public Relations (Communication Team) | 55 | |||||
Oh, Youngdal |
Executive Officer | Chief of Business Cooperation (Communication Team) | 53 | |||||
Lee, Jaewan |
Executive Officer | Head of Global Relations Team | 54 | |||||
Lee, Kyungsub |
Executive Officer | Co-chief of LiB Materials Business (Green Materials and Energy Business Team) |
56 | |||||
Lee, Sangmin |
Executive Officer | Co-chief of LiB Materials Business (Green Materials and Energy Business Team) |
58 | |||||
Cho, Juik |
Executive Officer | Chief of Hydrogen Business (Green Materials & Energy Business Team) | 56 |
Name |
Position |
Responsibility and Division |
Age |
|||||
Kim, Joomin |
Executive Officer | Head of Artificial Intelligence Research and Development Laboratories | 50 | |||||
Kim, Pilho |
Executive Officer | Head of Manufacturing Artificial Intelligence Center | 49 | |||||
Kim, Do-hyeong |
Executive Officer | Head of LiB Materials Research and Development Laboratories | 60 | |||||
Park, Seongjin |
Executive Officer | Chief of Industry and Academy Research Cooperation | 53 | |||||
Kim, Keunhwan |
Executive Officer | Chief of Venture Valley Planning | 52 | |||||
Kim, Jungyoung |
Executive Officer | Head of N.EX.T Hub Construction Task Force Team | 60 |
Name |
Position |
Total Compensation in 2021 |
Long-term Incentive Compensation for Payment Subsequent to 2021 |
|||||||
(In millions of Won) |
||||||||||
Choi, Jeong-Woo |
Chief Executive Officer and Representative Director | 1,829 | — | |||||||
Kim, Hag-Dong |
Non-standing Director |
1,147 | — | |||||||
Chang, In-Hwa |
Former Senior Executive Vice President | 2,980 | 178 | |||||||
Oh, Gyu-Seok |
Former Senior Executive Vice President | 1,086 | 175 | |||||||
Jeong, Tak |
Former Senior Executive Vice President | 1,001 | — |
• | engaging independent auditors; |
• | approving independent audit fees; |
• | approving audit and non-audit services; |
• | reviewing annual financial statements; |
• | reviewing audit results and reports, including management comments and recommendations; |
• | reviewing our system of controls and policies, including those covering conflicts of interest and business ethics; and |
• | examining improprieties or suspected improprieties. |
Name |
Number of Common Shares |
|||
Choi, Jeong-Woo |
1,526 | |||
Chon, Jung-Son |
1,262 | |||
Chung, Chang-Hwa |
650 | |||
Yoo, Byeong-Og |
1,149 | |||
Kim, Hag-Dong |
1,460 | |||
Jeong, Daehyung |
130 | |||
Kim, Youngjoong |
350 | |||
Kim, Wonhee |
120 | |||
Chung, Kyungjin |
294 | |||
Yang, Byeongho |
322 | |||
Kim, Yongsoo |
42 | |||
Park, Jinwoo |
92 | |||
Lee, Kyungsub |
200 | |||
Lee, Sangmin |
89 | |||
Cho, Juik |
200 | |||
Park, Seongjin |
200 | |||
Kim, Keunhwan |
229 | |||
|
|
|||
Total |
8,315 | |||
|
|
Shareholders |
Number of Shares Owned |
Percentage |
||||||
National Pension Service |
8,063,521 | 9.25 | % | |||||
BlackRock Fund Advisors (1) (2) (3) |
4,381,134 | 5.02 | ||||||
Government of Singapore (4) |
3,827,263 | 4.39 | ||||||
Nippon Steel Corporation (1) |
2,894,712 | 3.32 | ||||||
FMR LLC (2) |
2,274,323 | 2.61 | ||||||
Treasury shares |
11,561,263 | 13.26 | ||||||
Others |
54,184,619 | 62.15 | ||||||
|
|
|
|
|||||
Total issued shares of common stock |
87,186,835 | 100.00 | % | |||||
|
|
|
|
(1) | Includes ADRs. |
(2) | Includes shares held by subsidiaries and others. |
(3) | The number of shares owned by the shareholder is based on the status report of large-scale shareholders filed with the Korea Exchange. |
(4) | Includes shares held by GIC Private Limited. |
Year |
Annual Dividend per Common Stock to Public |
Interim Dividend per Common Stock |
Average Total Dividend per Common Stock |
|||||||||
(In Won) |
||||||||||||
2017 |
3,500 | 4,500 | 8,000 | |||||||||
2018 |
5,000 | 5,000 | 10,000 | |||||||||
2019 |
4,000 | 6,000 | 10,000 | |||||||||
2020 |
4,500 | 3,500 | 8,000 | |||||||||
2021 |
5,000 | 12,000 | 17,000 |
• | offered publicly or to underwriters for underwriting pursuant to the FSCMA and other applicable regulations; |
• | issued to members of our employee stock ownership association pursuant to the FSCMA and other applicable regulations; |
• | represented by depositary receipts pursuant to the FSCMA and other applicable regulations; |
• | issued in a general public offering pursuant to a board resolution in accordance with the FSCMA and other applicable regulations, the amount of which is no more than 10% of the outstanding Shares; |
• | issued to our creditors pursuant to a debt-equity swap; |
• | issued to domestic or foreign entities pursuant to a joint venture agreement, strategic coalition or technology license or transfer agreement when deemed necessary for management purposes; or |
• | issued to domestic or foreign financial institutions when necessary for raising funds in emergency cases. |
• | as necessary; |
• | at the request of holders of an aggregate of 3% or more of our outstanding Shares; |
• | at the request of shareholders holding an aggregate of 1.5% or more of our outstanding Shares for at least six months; or |
• | at the request of our Audit Committee. |
• | amending our articles of incorporation; |
• | removing a director; |
• | effecting any dissolution, merger or consolidation of us; |
• | transferring the whole or any significant part of our business; |
• | acquisition of all or a part of the business of any other company that may have a material impact on our business; |
• | issuing any new Shares at a price lower than their par value; or |
• | approving matters required to be approved at a general meeting of shareholders, which have material effects on our assets, as determined by the board of directors. |
• | if the Government deems it necessary on account of war, armed conflict, natural disaster or grave and sudden and significant changes in domestic or foreign economic circumstances or similar events or circumstances, the Ministry of Economy and Finance may (i) temporarily suspend performance under any or all foreign exchange transactions, in whole or in part, to which the Foreign Exchange Transaction Laws apply (including suspension of payment and receipt of foreign exchange), (ii) impose an obligation to deposit, safe-keep or sell precious metal or any other means of payment to The Bank of Korea, a foreign exchange stabilization fund or certain other governmental agencies or financial companies or (iii) require Korean creditors to collect debts owned by non-Korean debtors and deposit them in their bank accounts in Korea; and |
• | if the Government concludes that the international balance of payments and international financial markets are experiencing or are likely to experience significant disruption or that the movement of capital between Korea and other countries is likely to adversely affect its currency policies, exchange rate policies or other macroeconomic policies, the Ministry of Economy and Finance may take action to require any person who intends to effect a capital transaction to obtain permission or to require any person who effects a capital transaction to deposit a portion of the means of payment acquired in such transactions with The Bank of Korea, a foreign exchange stabilization fund or certain other governmental agencies or financial companies. |
• | odd-lot trading of shares; |
• | acquisition of shares (“Converted Shares”) by exercise of warrant, conversion right under convertible bonds, exchange right under exchangeable bonds or withdrawal right under depositary receipts issued outside of Korea by a Korean company; |
• | acquisition of shares as a result of inheritance, donation, bequest or exercise of shareholders’ rights, including preemptive rights or rights to participate in free distributions and receive dividends; |
• | over-the-counter |
• | acquisition of shares by direct investment as defined in the Foreign Investment Promotion Law or disposal of such shares; |
• | disposal of shares pursuant to the exercise of appraisal rights of dissenting shareholders; |
• | acquisition or disposal of shares in connection with a tender offer; |
• | acquisition of underlying shares by a foreign depositary in connection with the issuance of depositary receipts; |
• | acquisition and disposal of shares through overseas stock exchange market if such shares are simultaneously listed on the KRX KOSPI Market or the KRX KOSDAQ Market and such overseas stock exchange; and |
• | arm’s length transactions between foreigners, if all of such foreigners belong to an investment group managed by the same person. |
• | a dealer in securities or currencies; |
• | a trader in securities that elects to use a mark-to-market |
• | a bank; |
• | a life insurance company; |
• | a tax-exempt organization; |
• | a person that holds shares of common stock or ADSs that are a hedge or that are hedged against interest rate or currency risks; |
• | a person that holds shares of common stock or ADSs as part of a straddle or conversion transaction for tax purposes; |
• | a person whose functional currency for tax purposes is not the Dollar; |
• | a person that owns or is deemed to own 10% or more of any class of our stock or 10% or more of the combined voting power or value of all of our classes of stock; or |
• | an entity treated as a partnership for U.S. federal income tax purposes that holds shares of common stock or ADSs, or an investor therein. |
• | a citizen or resident of the United States; |
• | a U.S. domestic corporation; or |
• | otherwise subject to U.S. federal income tax on a net income basis with respect to income from the shares of common stock or ADS. |
• | 75 percent or more of our gross income for the taxable year is passive income; or |
• | at least 50 percent of the quarterly average value of our assets is attributable to assets that produce or are held for the production of passive income. |
For the Years Ended December 31, |
||||||||||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||||||||||
Increase |
Decrease |
Increase |
Decrease |
Increase |
Decrease |
|||||||||||||||||||
(In billions of Won) |
||||||||||||||||||||||||
US Dollars |
₩ |
(174 |
) |
₩ |
174 |
₩ |
(244 |
) |
₩ |
244 |
₩ |
(264 |
) |
₩ |
264 |
|||||||||
Japanese Yen |
(17 |
) |
17 |
(53 |
) |
53 |
(200 |
) |
200 |
|||||||||||||||
Euro |
41 |
(41 |
) |
(48 |
) |
48 |
(39 |
) |
39 |
For the Years Ended December 31, |
||||||||||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||||||||||
Increase |
Decrease |
Increase |
Decrease |
Increase |
Decrease |
|||||||||||||||||||
(In billions of Won) |
||||||||||||||||||||||||
Increase or decrease in annual profit and net equity |
₩ |
(79 |
) |
₩ |
79 |
₩ |
(66 |
) |
₩ |
66 |
₩ |
(64 |
) |
₩ |
64 |
Maturities |
||||||||||||||||||||||||||||||||||||||||
December 31, 2021 |
December 31, 2020 |
|||||||||||||||||||||||||||||||||||||||
2022 |
2023 |
2024 |
2025 |
2026 |
Thereafter |
Total |
Fair Value |
Total |
Fair Value |
|||||||||||||||||||||||||||||||
(In billions of Won except rates) |
||||||||||||||||||||||||||||||||||||||||
Local currency: |
||||||||||||||||||||||||||||||||||||||||
Fixed rate |
2,709 | 1,517 | 1,693 | 329 | 648 | 756 | 7,652 | 7,646 | 6,688 | 6,679 | ||||||||||||||||||||||||||||||
Average weighted rate (1) |
1.18 | % | 2.31 | % | 1.30 | % | 2.06 | % | 1.38 | % | 1.90 | % | 1.60 | % | 2.25 | % | ||||||||||||||||||||||||
Variable rate |
146 | 182 | 40 | 0 | 2 | 116 | 486 | 484 | 671 | 671 | ||||||||||||||||||||||||||||||
Average weighted rate (1) |
1.49 | % | 2.26 | % | 2.07 | % | 0.00 | % | 0.75 | % | 2.71 | % | 2.11 | % | 2.14 | % | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Sub-total |
2,855 | 1,699 | 1,733 | 329 | 650 | 872 | 8,138 | 8,130 | 7,359 | 7,350 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Foreign currency, principally Dollars and Yen: |
||||||||||||||||||||||||||||||||||||||||
Fixed rate |
2,250 | 1,505 | 1,698 | 538 | 1,435 | 283 | 7,709 | 7,681 | 7,513 | 7,472 | ||||||||||||||||||||||||||||||
Average weighted rate (1) |
1.64 | % | 2.86 | % | 1.45 | % | 2.43 | % | 0.00 | % | 4.00 | % | 1.65 | % | 2.49 | % | ||||||||||||||||||||||||
Variable rate |
3,610 | 1,296 | 43 | 785 | 93 | 65 | 5,892 | 5,889 | 5,623 | 5,622 | ||||||||||||||||||||||||||||||
Average weighted rate (1) |
1.30 | % | 1.11 | % | 0.00 | % | 2.71 | % | 1.02 | % | 4.15 | % | 1.47 | % | 1,75 | % | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Sub-total |
5,860 | 2,801 | 1,741 | 1,323 | 1,528 | 348 | 13,601 | 13,570 | 13,136 | 13,094 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total |
8,715 | 4,500 | 3,474 | 1,652 | 2,178 | 1,220 | 21,739 | 21,700 | 20,495 | 20,444 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Weighted average rates of the portfolio at the period end. |
Services |
Fees | |
Issuance of ADSs upon deposit of shares |
Up to $5.00 per 100 ADSs issued | |
Delivery of deposited shares against surrender of ADSs |
Up to $5.00 per 100 ADSs surrendered | |
Distributions of cash dividends or other cash distributions |
Up to $5.00 per 100 ADSs held | |
Distribution of ADSs pursuant to (i) stock dividends or other free stock distributions, or (ii) exercise of rights to purchase additional ADSs |
Up to $5.00 per 100 ADSs held | |
Distribution of securities other than ADSs or rights to purchase additional ADSs |
Up to $5.00 per 100 ADSs held | |
General depositary services |
Up to $5.00 per 100 ADSs held |
• | fees for the transfer and registration of shares charged by the registrar and transfer agent for the shares in Korea (i.e., upon deposit and withdrawal of shares); |
• | expenses incurred for converting foreign currency into Dollars; |
• | expenses for cable, telex and fax transmissions and for delivery of securities; |
• | taxes (including applicable interest and penalties) and other governmental charges; |
• | fees and expenses incurred in connection with compliance with exchange control regulations and other regulatory requirements; and |
• | fees and expenses incurred in connection with the delivery or servicing of shares on deposit. |
For the Year Ended December 31, |
||||||||
2020 |
2021 |
|||||||
(In millions of Won) |
||||||||
Audit fees |
₩ |
7,712 | ₩ |
9,874 | ||||
Audit-related fees |
— | 382 | ||||||
Tax fees |
1,037 | 997 | ||||||
Other fees |
1,236 | 1,355 | ||||||
|
|
|
|
|||||
Total fees |
₩ |
9,985 | ₩ |
12,608 | ||||
|
|
|
|
Period |
Total Number of Shares Purchased |
Average Price Paid Per Share (In Won) |
Total Number of Shares Purchased as Part of Publicly Announced Plans |
Maximum Number of Shares that May Yet Be Purchased Under the Plans |
||||||||||||
January 1 to January 31 |
— | — | — | — | ||||||||||||
February 1 to February 29 |
60,000 | 280,993 | 60,000 | — | ||||||||||||
March 1 to March 31 |
329,900 | 302,854 | 329,900 | — | ||||||||||||
April 1 to April 30 |
— | — | — | — | ||||||||||||
May 1 to May 31 |
— | — | — | — | ||||||||||||
June 1 to June 30 |
— | — | — | — | ||||||||||||
July 1 to July 31 |
— | — | — | — | ||||||||||||
August 1 to August 31 |
— | — | — | — | ||||||||||||
September 1 to September 30 |
— | — | — | — | ||||||||||||
October 1 to October 31 |
— | — | — | — | ||||||||||||
November 1 to November 30 |
— | — | — | — | ||||||||||||
December 1 to December 31 |
— | — | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
389,900 | 299,490 | 389,900 | — | ||||||||||||
|
|
|
|
|
|
|
|
NYSE Corporate Governance Standards |
POSCO HOLDINGS INC.’s Corporate Governance Practice | |
Director Independence |
||
Listed companies must have a majority of independent directors | Our articles of incorporation provide that our board of directors must comprise no less than a majority of Outside Directors. Our Outside Directors must meet the criteria for outside directorship set forth under the Korean Securities and Exchange Act. The majority of our board of directors is independent (as defined in accordance with the New York Stock Exchange’s standards), and seven out of 12 directors are Outside Directors. Under our articles of incorporation, we may have up to five Inside Directors and eight Outside Directors. |
NYSE Corporate Governance Standards |
POSCO HOLDINGS INC.’s Corporate Governance Practice | |
Nomination/Corporate Governance Committee |
||
A nomination/corporate governance committee of independent directors is required. The committee must have a charter that addresses the purpose, responsibilities (including development of corporate governance guidelines) and annual performance evaluation of the committee. | We have not established a separate nomination corporate governance committee. However, we maintain a Director Candidate Recommendation Committee composed of three Outside Directors and one Inside Director. | |
Compensation Committee |
||
A compensation committee of independent directors is required. The committee must have a charter that addresses the purpose, responsibilities and annual performance evaluation of the committee. The charter must be made available on the company’s website. In addition, in accordance with the U.S. Securities and Exchange Commission rules adopted pursuant to Section 952 of the Dodd-Frank Act, the New York Stock Exchange listing standards were amended to expand the factors relevant in determining whether a committee member has a relationship with the company that will materially affect that member’s duties to the compensation committee.Additionally, the committee may obtain or retain the advice of a compensation adviser only after taking into consideration all factors relevant to determining that adviser’s independence from management. |
We maintain an Evaluation and Compensation Committee composed of four Outside Directors. | |
Executive Session |
||
Non-management directors must meet in regularly scheduled executive sessions without management. Independent directors should meet alone in an executive session at least once a year. |
Our Outside Directors hold meetings solely attended by Outside Directors in accordance with operation guidelines of our board of directors. | |
Audit Committee |
||
Listed companies must have an audit committee that satisfies the independence and other requirements of Rule 10A-3 under the Exchange Act. All members must be independent. The committee must have a charter addressing the committee’s purpose, an annual performance evaluation of the committee, and the duties and responsibilities of the committee. The charter must be made available on the company’s website. |
We maintain an Audit Committee comprised of three Outside Directors who meet the applicable independence criteria set forth under Rule 10A-3 under the Exchange Act. | |
Audit Committee Additional Requirements |
||
Listed companies must have an audit committee that is composed of at least three directors. | Our Audit Committee has three members, as described above. | |
Shareholder Approval of Equity Compensation Plan |
||
Listed companies must allow their shareholders to exercise their voting rights with respect to any material revision to the company’s equity compensation plan. | We currently have an Employee Stock Ownership Program. Matters related to the Employee Stock Ownership Program are not subject to shareholders’ approval under Korean law. | |
Shareholder Approval of Equity Offerings |
||
Listed companies must allow its shareholders to exercise their voting rights with respect to equity offerings that do not qualify as public offerings for cash, and offerings of equity of related parties. | Our board of directors is generally authorized to issue new shares, subject to certain limitations as provided by our articles of incorporation. | |
Corporate Governance Guidelines |
||
Listed companies must adopt and disclose corporate governance guidelines. | We have adopted a Corporate Governance Charter setting forth our practices with respect to relevant corporate governance matters. Our Corporate Governance Charter is in compliance with Korean law but does not meet all requirements established by the New York Stock Exchange for U.S. companies listed on the exchange. A copy of our Corporate Governance Charter is available on our website at http://www.posco.com |
NYSE Corporate Governance Standards |
POSCO HOLDINGS INC.’s Corporate Governance Practice | |
Code of Business Conduct and Ethics |
||
Listed companies must adopt and disclose a code of business conduct and ethics for directors, officers and employees, and promptly disclose any waivers of the code for directors or executive officers. | We have adopted a Code of Ethics for all directors, officers and employees. A copy of our Code of Ethics is available on our website at http://www.posco.com. |
Page |
||||
F-2 |
||||
F-5 | ||||
F-7 | ||||
F-9 | ||||
F-10 | ||||
F-13 | ||||
F-15 |
1.1 | — | Articles of Incorporation of POSCO HOLDINGS INC. (English translation) | ||||
2.1 | — | Form of Common Stock Certificate (including English translation) (incorporated by reference to Exhibit 4.3 to the Registrant’s Registration Statement No. 33-81554)* (P) | ||||
2.2 | — | Form of Deposit Agreement (including Form of American Depositary Receipts) (incorporated by reference to the Registrant’s Registration Statement (File No. 333-189473) on Form F-6)* | ||||
2.3 | — | Description of common stock (see Item 10.B. Memorandum and Articles of Association) | ||||
2.4 | — | Description of American Depositary Shares | ||||
8.1 | — | List of consolidated subsidiaries | ||||
12.1 | — | Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||||
12.2 | — | Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||||
13.1 | — | Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | ||||
101.INS | — | Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document) | ||||
101.SCH | — | Inline XBRL Taxonomy Extension Schema Document | ||||
101.CAL | — | Inline XBRL Taxonomy Extension Calculation Linkbase Document | ||||
101.DEF | — | Inline XBRL Taxonomy Extension Definition Linkbase Document | ||||
101.LAB | — | Inline XBRL Taxonomy Extension Label Linkbase Document | ||||
101.PRE | — | Inline XBRL Taxonomy Extension Presentation Linkbase Document | ||||
104 | — | The cover page for the Company’s Annual Report on Form 20-F for the year ended December 31, 2021, has been formatted in Inline XBRL |
* | Filed previously |
Page |
||||
F-2 | ||||
F-5 | ||||
Consolidated Financial Statements |
||||
F-7 | ||||
F-9 | ||||
F-10 | ||||
F-13 | ||||
F-15 |
(a) | Assessment of goodwill impairment in the POSCO INTERNATIONAL Corporation cash generating unit |
(b) | Estimated total contract costs at completion for construction contract revenue recognition related to POSCO ENGINEERING & CONSTRUCTION CO., LTD. |
– | inspecting the supporting documentation prepared by the person in charge of construction field regarding rationale and reliability of the estimated total contract costs at completion including estimated material costs, labor costs and outsourcing costs for a selection of projects; |
– | questioning the person in charge of construction field, and inspecting supporting documentation to test estimated material costs, labor costs and outsourcing costs for a selection of projects commenced in 2021; |
– | questioning the Company’s finance manager and the person in charge of construction field, and inspecting documents as to the cause of any changes in estimated total contract costs at completion made during 2021 for a selection of projects; and |
– | assessing the Company’s ability to accurately forecast estimated total contract costs at completion by comparing the actual total contract costs for a selection of construction contracts completed during 2021 against the estimated total contract costs at completion in prior year. |
(in millions of Won) |
Notes |
December 31, 2020 |
December 31, 2021 |
|||||||||
Assets |
||||||||||||
Cash and cash equivalents |
4,5,23 | ₩ |
||||||||||
Trade accounts and notes receivable, net |
6,17,23,29,37 | |||||||||||
Other receivables, net |
7,23,37 | |||||||||||
Other short-term financial assets |
8,23 | |||||||||||
Inventories |
9 | |||||||||||
Current income tax assets |
35 | |||||||||||
Assets held for sale |
10 | |||||||||||
Other current assets |
16 | |||||||||||
|
|
|
|
|||||||||
Total current assets |
||||||||||||
|
|
|
|
|||||||||
Long-term trade accounts and notes receivable, net |
6,23 | |||||||||||
Other receivables, net |
7,23,37 | |||||||||||
Other long-term financial assets |
8,23 | |||||||||||
Investments in associates and joint ventures |
11 | |||||||||||
Investment property, net |
13 | |||||||||||
Property, plant and equipment, net |
14 | |||||||||||
Intangible assets, net |
15 | |||||||||||
Defined benefit assets, net |
21 | |||||||||||
Deferred tax assets |
35 | |||||||||||
Other non-current assets |
16 | |||||||||||
|
|
|
|
|||||||||
Total non-current assets |
||||||||||||
|
|
|
|
|||||||||
Total assets |
₩ |
|||||||||||
|
|
|
|
(in millions of Won) |
Notes |
December 31, 2020 |
December 31, 2021 |
|||||||||
Liabilities |
||||||||||||
Trade accounts and notes payable |
23,37 | ₩ |
||||||||||
Short-term borrowings and current installments of long-term borrowings |
4,17,23 | |||||||||||
Other payables |
18,23 | |||||||||||
Other short-term financial liabilities |
19,23,37 | |||||||||||
Current income tax liabilities |
35 | |||||||||||
Liabilities directly associated with the assets held for sale |
10 | |||||||||||
Provisions |
20 | |||||||||||
Other current liabilities |
22,29 | |||||||||||
|
|
|
|
|||||||||
Total current liabilities |
||||||||||||
|
|
|
|
|||||||||
Long-term trade accounts and notes payable |
23,37 | |||||||||||
Long-term borrowings, excluding current installments |
4,17,23 | |||||||||||
Other payables |
18,23 | |||||||||||
Other long-term financial liabilities |
19,23 | |||||||||||
Defined benefit liabilities, net |
21 | |||||||||||
Deferred tax liabilities |
35 | |||||||||||
Long-term provisions |
20 | |||||||||||
Other non-current liabilities |
22 | |||||||||||
|
|
|
|
|||||||||
Total non-current liabilities |
||||||||||||
|
|
|
|
|||||||||
Total liabilities |
||||||||||||
|
|
|
|
|||||||||
Equity |
||||||||||||
Share capital |
24 | |||||||||||
Capital surplus |
24 | |||||||||||
Hybrid bonds |
25 | |||||||||||
Reserves |
26 | ( |
) | ( |
) | |||||||
Treasury shares |
27 | ( |
) | ( |
) | |||||||
Retained earnings |
||||||||||||
|
|
|
|
|||||||||
Equity attributable to owners of the controlling company |
||||||||||||
Non-controlling interests |
25 | |||||||||||
|
|
|
|
|||||||||
Total equity |
||||||||||||
|
|
|
|
|||||||||
Total liabilities and equity |
₩ |
|||||||||||
|
|
|
|
(in millions of Won, except per share information) |
Notes |
2019 |
2020 |
2021 |
||||||||||||
Revenue |
28,29,37 | ₩ |
||||||||||||||
Cost of sales |
29,31,34,37 | ( |
) | ( |
) | ( |
) | |||||||||
Gross profit |
||||||||||||||||
Selling and administrative expenses |
30,34 | |||||||||||||||
Reversal of (Impairment loss) on trade accounts and notes receivable |
( |
) | ( |
) | ||||||||||||
Other administrative expenses |
31 | ( |
) | ( |
) | ( |
) | |||||||||
Selling expenses |
( |
) | ( |
) | ( |
) | ||||||||||
Other operating income and expenses |
32,37 | |||||||||||||||
Reversal of (Impairment loss) on other receivables |
( |
) | ( |
) | ||||||||||||
Other operating income |
||||||||||||||||
Other operating expenses |
34 | ( |
) | ( |
) | ( |
) | |||||||||
Operating profit |
||||||||||||||||
Share of profit of equity-accounted investees, net |
11 | |||||||||||||||
Finance income and costs |
23,33 | |||||||||||||||
Finance income |
||||||||||||||||
Finance costs |
( |
) | ( |
) | ( |
) | ||||||||||
Profit before income taxes |
||||||||||||||||
Income tax expense |
35 | ( |
) | ( |
) | ( |
) | |||||||||
Profit |
||||||||||||||||
Other comprehensive income (loss) |
||||||||||||||||
Items that will not be reclassified subsequently to profit or loss : |
||||||||||||||||
Remeasurements of defined benefit plans |
21 | ( |
) | |||||||||||||
Net changes in fair value of equity investments at fair value through other comprehensive income |
23 | ( |
) | ( |
) | |||||||||||
Items that are or may be reclassified subsequently to profit or loss : |
||||||||||||||||
Capital adjustment arising from investments in equity-accounted investees |
( |
) | ||||||||||||||
Foreign currency translation differences |
( |
) | ||||||||||||||
Losses on valuation of derivatives |
23 | ( |
) | ( |
) | |||||||||||
Other comprehensive income (loss), net of tax |
( |
) | ||||||||||||||
Total comprehensive income |
₩ |
|||||||||||||||
Profit attributable to : |
||||||||||||||||
Owners of the controlling company |
₩ |
|||||||||||||||
Non-controlling interests |
||||||||||||||||
Profit |
₩ |
|||||||||||||||
Total comprehensive income attributable to : |
||||||||||||||||
Owners of the controlling company |
₩ |
|||||||||||||||
Non-controlling interests |
||||||||||||||||
Total comprehensive income |
₩ |
|||||||||||||||
Earnings per share (in Won) |
36 | |||||||||||||||
Basic earnings per share (in Won) |
||||||||||||||||
Diluted earnings per share (in Won) |
₩ |
Attributable to owners of the controlling company |
Non- controlling interests |
Total |
||||||||||||||||||||||||||||||||||
(in millions of Won) |
Share capital |
Capital surplus |
Hybrid bonds |
Reserves |
Treasury shares |
Retained earnings |
Subtotal |
|||||||||||||||||||||||||||||
Balance as of January 1, 2019 |
₩ |
( |
) | ( |
) | |||||||||||||||||||||||||||||||
Comprehensive income: |
||||||||||||||||||||||||||||||||||||
Profit |
— | — | — | — | — | |||||||||||||||||||||||||||||||
Other comprehensive income (loss) |
||||||||||||||||||||||||||||||||||||
Remeasurements of defined benefit plans, net of tax |
— | — | — | — | — | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||
Capital adjustment arising from investments in equity-accounted investees, net of tax |
— | — | — | — | — | |||||||||||||||||||||||||||||||
Net changes in fair value of equity investments at fair value through other comprehensive income, net of tax |
— | — | — | — | ( |
) | ( |
) | — | ( |
) | |||||||||||||||||||||||||
Foreign currency translation differences, net of tax |
— | — | — | — | — | ( |
) | |||||||||||||||||||||||||||||
Gain or losses on valuation of derivatives, net of tax |
— | — | — | ( |
) | — | — | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total comprehensive income |
— | — | — | — | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Transactions with owners of the controlling company, recognized directly in equity: |
||||||||||||||||||||||||||||||||||||
Year-end dividends |
— | — | — | — | — | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||
Interim dividends |
— | — | — | — | — | ( |
) | ( |
) | — | ( |
) | ||||||||||||||||||||||||
Changes in subsidiaries |
— | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Changes in ownership interests in subsidiaries |
— | ( |
) | — | — | — | — | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||
Interest of hybrid bonds |
— | — | — | — | — | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||
Disposal of treasury shares |
— | — | — | — | — | |||||||||||||||||||||||||||||||
Others |
— | — | ( |
) | — | ( |
) | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total transactions with owners of the controlling company |
— | ( |
) | — | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Balance as of December 31, 2019 |
₩ |
( |
) | ( |
) | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to owners of the controlling company |
Non- controlling interests |
Total |
||||||||||||||||||||||||||||||||||
(in millions of Won) |
Share capital |
Capital surplus |
Hybrid bonds |
Reserves |
Treasury shares |
Retained earnings |
Subtotal |
|||||||||||||||||||||||||||||
Balance as of January 1, 2020 |
₩ |
( |
) | ( |
) | |||||||||||||||||||||||||||||||
Comprehensive income: |
||||||||||||||||||||||||||||||||||||
Profit |
— | — | — | — | — | |||||||||||||||||||||||||||||||
Other comprehensive income (loss) |
||||||||||||||||||||||||||||||||||||
Remeasurements of defined benefit plans, net of tax |
— | — | — | — | — | ( |
) | |||||||||||||||||||||||||||||
Capital adjustment arising from investments in equity-accounted investees, net of tax |
— | — | — | ( |
) | — | — | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||
Net changes in fair value of equity investments at fair value through other comprehensive income, net of tax |
— | — | — | ( |
) | — | ( |
) | ( |
) | — | ( |
) | |||||||||||||||||||||||
Foreign currency translation differences, net of tax |
— | — | — | ( |
) | — | — | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||
Gain or losses on valuation of derivatives, net of tax |
— | — | — | ( |
) | — | — | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||
Total comprehensive income |
— | — | — | ( |
) | — | ||||||||||||||||||||||||||||||
Transactions with owners of the controlling company, recognized directly in equity: |
||||||||||||||||||||||||||||||||||||
Year-end dividends |
— | — | — | — | — | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||
Interim dividends |
— | — | — | — | — | ( |
) | ( |
) | — | ( |
) | ||||||||||||||||||||||||
Changes in subsidiaries |
— | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Changes in ownership interests in subsidiaries |
— | ( |
) | — | — | — | — | ( |
) | |||||||||||||||||||||||||||
Repayment of redeemable convertible preferred shares |
( |
) | — | — | — | — | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||
Interest of hybrid bonds |
— | — | — | — | — | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||
Acquisition of treasury shares |
— | — | — | — | ( |
) | — | ( |
) | — | ( |
) | ||||||||||||||||||||||||
Others |
— | ( |
) | — | — | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||
Total transactions with owners of the controlling company |
— | ( |
) | — | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
Balance as of December 31, 2020 |
₩ |
( |
) | ( |
) | |||||||||||||||||||||||||||||||
Attributable to owners of the controlling company |
Non- controlling interests |
Total |
||||||||||||||||||||||||||||||||||
(in millions of Won) |
Share capital |
Capital surplus |
Hybrid bonds |
Reserves |
Treasury shares |
Retained earnings |
Subtotal |
|||||||||||||||||||||||||||||
Balance as of January 1, 2021 |
₩ |
( |
) | ( |
) | |||||||||||||||||||||||||||||||
Comprehensive income: |
||||||||||||||||||||||||||||||||||||
Profit |
— | — | — | — | — | |||||||||||||||||||||||||||||||
Other comprehensive income (loss) |
||||||||||||||||||||||||||||||||||||
Remeasurements of defined benefit plans, net of tax |
— | — | — | — | — | |||||||||||||||||||||||||||||||
Capital adjustment arising from investments in equity-accounted investees, net of tax |
— | — | — | — | — | |||||||||||||||||||||||||||||||
Net changes in fair value of equity investments at fair value through other comprehensive income, net of tax |
— | — | — | — | ||||||||||||||||||||||||||||||||
Foreign currency translation differences, net of tax |
— | — | — | — | — | |||||||||||||||||||||||||||||||
Gain or losses on valuation of derivatives, net of tax |
— | — | — | — | — | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total comprehensive income |
— | — | — | — | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Transactions with owners of the controlling company, recognized directly in equity: |
||||||||||||||||||||||||||||||||||||
Year-end dividends |
— | — | — | — | — | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||
Interim dividends |
— | — | — | — | — | ( |
) | ( |
) | — | ( |
) | ||||||||||||||||||||||||
Changes in subsidiaries |
— | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Changes in ownership interests in subsidiaries |
— | — | — | — | — | |||||||||||||||||||||||||||||||
Interest of hybrid bonds |
— | — | — | — | — | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||
Acquisition of treasury shares |
— | — | — | — | ( |
) | — | ( |
) | — | ( |
) | ||||||||||||||||||||||||
Others |
— | ( |
) | — | ( |
) | — | ( |
) | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total transactions with owners of the controlling company |
— | — | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Balance as of December 31, 2021 |
₩ |
( |
) | ( |
) | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
Notes |
2019 |
2020 |
2021 |
||||||||||||
Cash flows from operating activities |
||||||||||||||||
Profit |
₩ |
|||||||||||||||
Adjustments for: |
||||||||||||||||
Depreciation |
||||||||||||||||
Amortization |
||||||||||||||||
Finance income |
( |
) | ( |
) | ( |
) | ||||||||||
Finance costs |
||||||||||||||||
Income tax expense |
||||||||||||||||
Gain on disposal of property, plant and equipment |
( |
) | ( |
) | ( |
) | ||||||||||
Loss on disposal of property, plant and equipment |
||||||||||||||||
Impairment losses on property, plant and equipment |
||||||||||||||||
Gain on disposal of intangible assets |
( |
) | ( |
) | ( |
) | ||||||||||
Gain on disposal of investments in subsidiaries, associates and joint ventures |
( |
) | ( |
) | ( |
) | ||||||||||
Loss on disposal of investments in subsidiaries, associates and joint ventures |
||||||||||||||||
Share of profit of equity-accounted investees |
( |
) | ( |
) | ( |
) | ||||||||||
Expenses related to post-employment benefits |
||||||||||||||||
Increase to provisions |
||||||||||||||||
Impairment loss on trade and other receivables |
||||||||||||||||
Loss on valuation of inventories |
||||||||||||||||
Impairment losses on goodwill and intangible assets |
||||||||||||||||
Gain on disposal of assets held for sale |
( |
) | ( |
) | ( |
) | ||||||||||
Impairment losses on assets held for sale |
||||||||||||||||
Others, net |
( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|||||||||||
Changes in operating assets and liabilities |
39 | ( |
) | ( |
) | |||||||||||
Interest received |
||||||||||||||||
Interest paid |
( |
) | ( |
) | ( |
) | ||||||||||
Dividends received |
||||||||||||||||
Income taxes paid |
( |
) | ( |
) | ( |
) | ||||||||||
|
|
|
|
|
|
|||||||||||
Net cash provided by operating activities |
₩ |
|
|
|
||||||||||||
|
|
|
|
|
|
(in millions of Won) |
Notes |
2019 |
2020 |
2021 |
||||||||||
Cash flows from investing activities |
||||||||||||||
Acquisitions of short-term financial instruments |
₩ |
( |
) | ( |
) | ( |
) | |||||||
Proceeds from disposal of short-term financial instruments |
||||||||||||||
Acquisition of long-term financial instruments |
— | — | ( |
) | ||||||||||
Increase in loans |
( |
) | ( |
) | ( |
) | ||||||||
Collection of loans |
||||||||||||||
Acquisitions of securities |
( |
) | ( |
) | ( |
) | ||||||||
Proceeds from disposal of securities |
||||||||||||||
Acquisitions of investments in associates and joint ventures |
( |
) | ( |
) | ( |
) | ||||||||
Proceeds from disposal of investments in associates and joint ventures |
||||||||||||||
Acquisitions of property, plant and equipment |
( |
) | ( |
) | ( |
) | ||||||||
Proceeds from (payment for) disposal of property, plant and equipment |
( |
) | ( |
) | ||||||||||
Acquisitions of investment property |
( |
) | ( |
) | ( |
) | ||||||||
Proceeds from disposal of investment property |
||||||||||||||
Acquisitions of intangible assets |
( |
) | ( |
) | ( |
) | ||||||||
Proceeds from disposal of intangible assets |
||||||||||||||
Proceeds from disposal of assets held for sale |
||||||||||||||
Increase in cash from (payment for) acquisition of business, net of cash acquired |
( |
) | ||||||||||||
Cash received from disposal of business, net of cash transferred |
||||||||||||||
Collection of lease receivables |
||||||||||||||
Others, net |
( |
) | ||||||||||||
|
|
|
|
|
|
|||||||||
Net cash used in investing activities |
( |
) | ( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||||
Cash flows from financing activities |
||||||||||||||
Proceeds from borrowings |
||||||||||||||
Repayment of borrowings |
( |
) | ( |
) | ( |
) | ||||||||
Proceeds from (repayment of) short-term borrowings, net |
( |
) | ( |
) | ||||||||||
Payment of cash dividends |
( |
) | ( |
) | ( |
) | ||||||||
Payment of interest of hybrid bonds |
( |
) | ( |
) | ( |
) | ||||||||
Capital contribution from non-controlling interests and proceeds from disposal of subsidiary while maintaining control |
||||||||||||||
Capital deduction from non-controlling interests and additional acquisition of interests in subsidiaries |
( |
) | ( |
) | ( |
) | ||||||||
Repayment of lease liabilities |
( |
) | ( |
) | ( |
) | ||||||||
Acquisition of treasury shares |
— | ( |
) | ( |
) | |||||||||
Repayment of redeemable convertible preferred shares |
— | ( |
) | |||||||||||
Others, net |
( |
) | ||||||||||||
|
|
|
|
|
|
|||||||||
Net cash used in financing activities |
39 | ( |
) | ( |
) | ( |
) | |||||||
|
|
|
|
|
|
|||||||||
Effect of exchange rate fluctuation on cash held |
( |
) | ||||||||||||
|
|
|
|
|
|
|||||||||
Net increase in cash and cash equivalents |
||||||||||||||
Cash and cash equivalents at beginning of the period |
5,10 | |||||||||||||
|
|
|
|
|
|
|||||||||
Cash and cash equivalents at end of the period |
5,10 | ₩ |
||||||||||||
|
|
|
|
|
|
1. |
General Information |
(a) | The controlling company |
Shareholder’s name |
Number of shares |
Ownership (%) |
||||||
National Pension Service |
||||||||
BlackRock Fund Advisors(*1) |
||||||||
Government of Singapore(*1) |
|
|
|
|
|
|
|
|
Nippon Steel Corporation |
||||||||
FMR LLC (*1) |
||||||||
Others |
||||||||
|
|
|
|
|||||
|
|
|
|
(*1) | Includes shares held by subsidiaries and others. |
(b) | Consolidated subsidiaries |
Principal operations |
Ownership (%) |
Region | ||||||||||||||||||||||||||
December 31, 2020 |
December 31, 2021 |
|||||||||||||||||||||||||||
POSCO HOLDINGS INC. |
Subsidiaries |
Total |
POSCO HOLDINGS INC. |
Subsidiaries |
Total |
|||||||||||||||||||||||
[Domestic] |
||||||||||||||||||||||||||||
POSCO ENGINEERING & CONSTRUCTION., CO., LTD. |
— | — | ||||||||||||||||||||||||||
POSCO COATED & COLOR STEEL Co., Ltd. |
— | — | ||||||||||||||||||||||||||
POSCO ICT |
— | — | ||||||||||||||||||||||||||
POSCO Research Institute |
— | — | ||||||||||||||||||||||||||
POSCO O&M CO.,Ltd. |
||||||||||||||||||||||||||||
POSCO A&C |
||||||||||||||||||||||||||||
POSCO Venture Capital Co., Ltd. |
— | — | ||||||||||||||||||||||||||
eNtoB Corporation |
||||||||||||||||||||||||||||
POSCO CHEMICAL CO., LTD. |
— | — | ||||||||||||||||||||||||||
POSCO-Terminal Co., Ltd. |
— | — | ||||||||||||||||||||||||||
POSCO M-TECH |
— | — | ||||||||||||||||||||||||||
POSCO ENERGY CO., LTD. |
— | — | ||||||||||||||||||||||||||
PNR |
— | — | ||||||||||||||||||||||||||
Future Creation Fund Postech Early Stage account |
— | — | ||||||||||||||||||||||||||
POSCO WOMAN’S FUND |
— | — | ||||||||||||||||||||||||||
SPH Co, LTD. |
— | — | ||||||||||||||||||||||||||
POSCO Group University |
— | — | ||||||||||||||||||||||||||
Growth Ladder POSCO K-Growth Global Fund |
— | — | ||||||||||||||||||||||||||
2015 POSCO New technology II Fund |
— | — | ||||||||||||||||||||||||||
POSCO Research & Technology |
— | — | ||||||||||||||||||||||||||
TANCHEON E&E |
— | — | ||||||||||||||||||||||||||
POSCO Humans |
||||||||||||||||||||||||||||
Mapo Hibroad Parking Co., Ltd. |
— | — |
Principal operations |
Ownership (%) |
Region | ||||||||||||||||||||||||||
December 31, 2020 |
December 31, 2021 |
|||||||||||||||||||||||||||
POSCO HOLDINGS INC. |
Subsidiaries |
Total |
POSCO HOLDINGS INC. |
Subsidiaries |
Total |
|||||||||||||||||||||||
[Domestic] |
||||||||||||||||||||||||||||
Busan E&E Co., Ltd. |
— | — | ||||||||||||||||||||||||||
POSCO INTERNATIONAL Corporation |
||||||||||||||||||||||||||||
Pohang Scrap Recycling Distribution Center Co., Ltd. |
— | — | ||||||||||||||||||||||||||
Songdo Development PMC (Project Management Company) LLC. |
— | — | ||||||||||||||||||||||||||
Korea Fuel Cell |
— | — | ||||||||||||||||||||||||||
POSCO GEM fund no1 |
||||||||||||||||||||||||||||
POSCO MOBILITY SOLUTION (formerly, POSCO SPS CORPORATION) |
— | — | ||||||||||||||||||||||||||
P&O Chemical Co., Ltd. |
— | — | ||||||||||||||||||||||||||
Posco New Growth |
||||||||||||||||||||||||||||
IMP Fund I |
— | — | ||||||||||||||||||||||||||
POSCO Lithium Solution CO., Ltd. |
— | — | — | — | ||||||||||||||||||||||||
POSCO-HY Clean Metal Co., Ltd. |
— | — | — | — | ||||||||||||||||||||||||
Consus Pf private Real Estate Fund |
— | — | — | — | — | |||||||||||||||||||||||
New Energy Hub |
— | — | — | |||||||||||||||||||||||||
Posco Busan Newdeal Fund |
— | — | — | — | ||||||||||||||||||||||||
Shinan Green Energy Co., LTD |
— | — | — | — | ||||||||||||||||||||||||
Suncheon Eco Trans Co. Ltd |
— | — | — | — | ||||||||||||||||||||||||
[Foreign] |
||||||||||||||||||||||||||||
POSCO America Corporation |
||||||||||||||||||||||||||||
POSCO AUSTRALIA PTY LTD |
— | — | ||||||||||||||||||||||||||
POSCO Canada Ltd. |
— | — | ||||||||||||||||||||||||||
POSCAN ELKVIEW COAL LTD. |
— | — | ||||||||||||||||||||||||||
POSCO Asia Co., Ltd. |
— | — | ||||||||||||||||||||||||||
POSCO-CTPC Co., Ltd. |
— | — | ||||||||||||||||||||||||||
POSCO E&C Vietnam Co., Ltd. |
— | — |
Principal operations |
Ownership (%) |
Region | ||||||||||||||||||||||||||
December 31, 2020 |
December 31, 2021 |
|||||||||||||||||||||||||||
POSCO HOLDINGS INC. |
Subsidiaries |
Total |
POSCO HOLDINGS INC. |
Subsidiaries |
Total |
|||||||||||||||||||||||
[Foreign] |
||||||||||||||||||||||||||||
POSCO (Zhangjiagang) Stainless Steel Co.,Ltd. |
||||||||||||||||||||||||||||
POSCO (Thailand) Company Limited |
— | — | ||||||||||||||||||||||||||
POSCO-MKPC SDN BHD |
— | — | ||||||||||||||||||||||||||
Qingdao Pohang Stainless Steel Co., Ltd. |
||||||||||||||||||||||||||||
POSCO(Suzhou) Automotive Processing Center Co., Ltd. |
||||||||||||||||||||||||||||
POSCO-China Qingdao Processing Center Co.Ltd. |
— | — | ||||||||||||||||||||||||||
POS-ORE PTY LTD |
— | — | ||||||||||||||||||||||||||
POSCO-China Holding Corp. |
— | — | ||||||||||||||||||||||||||
POSCO JAPAN Co., Ltd. |
— | — | ||||||||||||||||||||||||||
POS-CD PTY LTD |
— | — | ||||||||||||||||||||||||||
POS-GC PTY LTD |
— | — | ||||||||||||||||||||||||||
POSCO-India Private Limited |
— | — | ||||||||||||||||||||||||||
POSCO-India Pune Processing Center. Pvt. Ltd. |
— | — | ||||||||||||||||||||||||||
POSCO Japan PC CO.,LTD |
— | — | ||||||||||||||||||||||||||
POSCO-CFPC Co., Ltd. |
||||||||||||||||||||||||||||
POSCO E&C CHINA Co., Ltd. |
— | — | ||||||||||||||||||||||||||
POSCO MPPC S.A. de C.V. |
||||||||||||||||||||||||||||
Zhangjigang Pohang Port Co., Ltd. |
— | — | ||||||||||||||||||||||||||
POSCO-VIETNAM Co., Ltd. |
— | — | ||||||||||||||||||||||||||
POSCO MEXICO S.A. DE C.V. |
||||||||||||||||||||||||||||
POSCO-Poland Wroclaw Processing Center Sp. z o. o. |
— | — | ||||||||||||||||||||||||||
POS-NP PTY LTD |
— | — | ||||||||||||||||||||||||||
DAEWOO INTERNATIONAL SHANGHAI WAIGAOQIAO CO., LTD |
— | — | ||||||||||||||||||||||||||
PT. Bio Inti Agrindo |
— | — |
Principal operations |
Ownership (%) |
Region | ||||||||||||||||||||||||||
December 31, 2020 |
December 31, 2021 |
|||||||||||||||||||||||||||
POSCO HOLDINGS INC. |
Subsidiaries |
Total |
POSCO HOLDINGS INC. |
Subsidiaries |
Total |
|||||||||||||||||||||||
[Foreign] |
||||||||||||||||||||||||||||
POSCO ENGINEERING AND CONSTRUCTION AUSTRALIA (POSCO E&C AUSTRALIA) PTY LTD |
— | — | ||||||||||||||||||||||||||
POSCO-TISCO (JILIN) PROCESSING CENTER Co., Ltd. |
||||||||||||||||||||||||||||
POSCO Thainox Public Company Limited |
— | — | ||||||||||||||||||||||||||
Hunchun Posco Hyundai International Logistics Co.,LTD |
— | — | ||||||||||||||||||||||||||
POSCO INTERNATIONAL VIETNAM CO., LTD |
— | — | ||||||||||||||||||||||||||
POSCO(Chongqing) Automotive Processing Center Co., Ltd. |
||||||||||||||||||||||||||||
SUZHOU POSCO-CORE TECHNOLOGY CO., LTD. |
||||||||||||||||||||||||||||
PT.Krakatau Posco Chemical Calcination (formerly, PT.Krakatau Posco Chemtech Calcination) |
— | — | ||||||||||||||||||||||||||
POSCO AFRICA (PROPRIETARY) LIMITED |
— | — | ||||||||||||||||||||||||||
POSCO ICT BRASIL |
— | — | ||||||||||||||||||||||||||
POSCO Center Beijing |
— | — | ||||||||||||||||||||||||||
POSCO-Malaysia SDN. BHD. |
||||||||||||||||||||||||||||
PT KRAKATAU BLUE WATER |
— | — | ||||||||||||||||||||||||||
POSCO INTERNATIONAL MYANMAR CO.,LTD. |
— | — | ||||||||||||||||||||||||||
POSCO-Italy Processing Center |
||||||||||||||||||||||||||||
Myanmar POSCO C&C Company,Limited. |
— | — | ||||||||||||||||||||||||||
POSCO ICT VIETNAM |
— | — |
Principal operations |
Ownership (%) |
Region | ||||||||||||||||||||||||||
December 31, 2020 |
December 31, 2021 |
|||||||||||||||||||||||||||
POSCO HOLDINGS INC. |
Subsidiaries |
Total |
POSCO HOLDINGS INC. |
Subsidiaries |
Total |
|||||||||||||||||||||||
[Foreign] |
||||||||||||||||||||||||||||
POSCO INTERNATIONAL GLOBAL DEVELOPMENT PTE.LTD. (formerly, Daewoo Global Development. Pte., Ltd) |
— | — | ||||||||||||||||||||||||||
Myanmar POSCO Engineering & Construction Company, Limited. |
— | — | ||||||||||||||||||||||||||
POS-Minerals Corporation |
— | — | ||||||||||||||||||||||||||
POSCO(Wuhu) Automotive Processing Center Co., Ltd. |
||||||||||||||||||||||||||||
POSCO Engineering and Construction India Private Limited |
— | — | ||||||||||||||||||||||||||
POSCO COATED STEEL (THAILAND) CO., LTD. |
— | — | ||||||||||||||||||||||||||
POSCO INTERNATIONAL AMARA Co., Ltd. |
— | — | ||||||||||||||||||||||||||
POSMATE-CHINA CO., LTD |
— | — | ||||||||||||||||||||||||||
POSCO-Mexico Villagran Wire-rod Processing Center |
||||||||||||||||||||||||||||
POSCO ChengDu Processing Center |
||||||||||||||||||||||||||||
POSCO(Suzhou) Steel Processing Center CO., LTD. |
||||||||||||||||||||||||||||
POSCO E&C SMART S DE RL DE CV |
— | — | ||||||||||||||||||||||||||
POSCO Philippine Manila Processing Center, Inc. |
— | — | ||||||||||||||||||||||||||
POSCO E&C HOLDINGS CO.,Ltd. |
— | — | ||||||||||||||||||||||||||
POSCO INTERNATIONAL POWER (PNGLAE) LTD. |
— | — | ||||||||||||||||||||||||||
PT.Krakatau Posco Social Enterprise |
— | — | ||||||||||||||||||||||||||
Ventanas Philippines Construction Inc |
— | — | ||||||||||||||||||||||||||
SANPU TRADING Co., Ltd. |
— | — |
Principal operations |
Ownership (%) |
Region | ||||||||||||||||||||||||||
December 31, 2020 |
December 31, 2021 |
|||||||||||||||||||||||||||
POSCO HOLDINGS INC. |
Subsidiaries |
Total |
POSCO HOLDINGS INC. |
Subsidiaries |
Total |
|||||||||||||||||||||||
[Foreign] |
||||||||||||||||||||||||||||
Zhangjiagang BLZ Pohang International Trading |
— | — | ||||||||||||||||||||||||||
POSCO RU Limited Liability Company |
— | — | ||||||||||||||||||||||||||
GOLDEN LACE POSCO INTERNATIONAL CO., LTD. |
— | — | ||||||||||||||||||||||||||
POSCO ICT-China CO.,LTD |
— | — | ||||||||||||||||||||||||||
Pos-Sea Pte Ltd |
— | — | ||||||||||||||||||||||||||
POSCO Europe Steel Distribution Center |
||||||||||||||||||||||||||||
POSCO ENGINEERING (THAILAND) CO., LTD. |
— | — | ||||||||||||||||||||||||||
POSCO VST CO., LTD. |
— | — | ||||||||||||||||||||||||||
POSCO INTERNATIONAL UKRAINE, LLC. |
— | — | ||||||||||||||||||||||||||
Zhangjiagang Pohang Refractories Co., Ltd. |
— | — | ||||||||||||||||||||||||||
POSCO Maharashtra Steel Private Limited |
— | — | ||||||||||||||||||||||||||
POSCO INDIA PROCESSING CENTER PRIVATE LIMITED |
||||||||||||||||||||||||||||
POSCO TNPC Otomotiv Celik San. Ve Tic. A.S |
— | — | ||||||||||||||||||||||||||
POSCO Vietnam Processing Center. Co.,Ltd |
||||||||||||||||||||||||||||
POSCO(Liaoning) Automotive Processing Center Co., Ltd. |
||||||||||||||||||||||||||||
POSCO-Indonesia Jakarta Processing Center |
||||||||||||||||||||||||||||
PT.MRI |
— | — | ||||||||||||||||||||||||||
POSCO TMC INDIA PRIVATE LIMITED |
— | — | ||||||||||||||||||||||||||
POSCO AMERICA ALABAMA PROCESSING CENTER CO., LTD. |
— | — | ||||||||||||||||||||||||||
POSCO(Yantai) Automotive Processing Center Co., Ltd. |
Principal operations |
Ownership (%) |
Region | ||||||||||||||||||||||||||
December 31, 2020 |
December 31, 2021 |
|||||||||||||||||||||||||||
POSCO HOLDINGS INC. |
Subsidiaries |
Total |
POSCO HOLDINGS INC. |
Subsidiaries |
Total |
|||||||||||||||||||||||
[Foreign] |
||||||||||||||||||||||||||||
POSCO India Steel Distribution Center Private Ltd. |
— | — | ||||||||||||||||||||||||||
POSCO YAMATO VINA STEEL JOINT STOCK COMPANY (formerly, POSCO SS VINA JOINT STOCK COMPANY) |
— | — | ||||||||||||||||||||||||||
PT.POSCO ICT INDONESIA |
— | — | ||||||||||||||||||||||||||
POSCO NCR Coal Ltd. |
— | — | ||||||||||||||||||||||||||
POSCO WA PTY LTD |
— | — | ||||||||||||||||||||||||||
POSCO AUSTRALIA GP PTY LIMITED |
— | — | ||||||||||||||||||||||||||
PT. KRAKATAU POSCO ENERGY |
— | — | ||||||||||||||||||||||||||
POSCO INTERNATIONAL AMERICA CORP. |
— | — | ||||||||||||||||||||||||||
POSCO INTERNATIONAL Deutschland GMBH |
— | — | ||||||||||||||||||||||||||
POSCO INTERNATIONAL JAPAN CORP. |
— | — | ||||||||||||||||||||||||||
POSCO INTERNATIONAL SINGAPORE PTE. LTD. |
— | — | ||||||||||||||||||||||||||
POSCO INTERNATIONAL ITALIA S.R.L. |
— | — | ||||||||||||||||||||||||||
POSCO INTERNATIONAL (CHINA) CO., LTD |
— | — | ||||||||||||||||||||||||||
POSCO INTERNATIONAL TEXTILE LLC. |
— | — | ||||||||||||||||||||||||||
POSCO INTERNATIONAL AUSTRALIA HOLDINGS PTY. LTD. |
— | — | ||||||||||||||||||||||||||
POSCO MAURITIUS LIMITED |
— | — | ||||||||||||||||||||||||||
PT. KRAKATAU POSCO |
— | — | ||||||||||||||||||||||||||
POSCO INTERNATIONAL MEXICO, S.A de C.V. |
— | — |
Principal operations |
Ownership (%) |
Region | ||||||||||||||||||||||||||
December 31, 2020 |
December 31, 2021 |
|||||||||||||||||||||||||||
POSCO HOLDINGS INC. |
Subsidiaries |
Total |
POSCO HOLDINGS INC. |
Subsidiaries |
Total |
|||||||||||||||||||||||
[Foreign] |
||||||||||||||||||||||||||||
POSCO INTERNATIONAL MALAYSIA SDN BHD |
— | — | ||||||||||||||||||||||||||
PT.POSCO INDONESIA INTI |
— | — | ||||||||||||||||||||||||||
POSCO INTERNATIONAL SHANGHAI CO., LTD. |
— | — | ||||||||||||||||||||||||||
PGSF, L.P. |
— | — | ||||||||||||||||||||||||||
POSCO INTERNATIONAL INDIA PVT. LTD |
— | — | ||||||||||||||||||||||||||
POSCO(Dalian) IT Center Development Co., Ltd. |
— | — | ||||||||||||||||||||||||||
PT. POSCO E&C INDONESIA |
— | — | ||||||||||||||||||||||||||
HUME COAL PTY LTD |
— | — | ||||||||||||||||||||||||||
Brazil Sao Paulo Steel Processing Center |
— | — | ||||||||||||||||||||||||||
POSCO ENGINEERING & CONSTRUCTION DO BRAZIL LTDA. |
— | — | ||||||||||||||||||||||||||
POSCO ASSAN TST STEEL INDUSTRY |
||||||||||||||||||||||||||||
HONG KONG POSCO E&C (CHINA) INVESTMENT Co., Ltd. |
— | — | ||||||||||||||||||||||||||
JB CLARK HILLS |
— | — | ||||||||||||||||||||||||||
POS-LT Pty Ltd |
— | — | ||||||||||||||||||||||||||
ZHEJIANG POSCO-HUAYOU ESM CO., LTD |
— | — | ||||||||||||||||||||||||||
POSCO Argentina S.A.U. |
— | — | ||||||||||||||||||||||||||
GRAIN TERMINAL HOLDING PTE. LTD. |
— | — | ||||||||||||||||||||||||||
Mykolaiv Milling Works PJSC. |
— | — | ||||||||||||||||||||||||||
Yuzhnaya Stevedoring Company Limited LLC. |
— | — | ||||||||||||||||||||||||||
Posco International (Thailand) Co., Ltd. |
— | — | ||||||||||||||||||||||||||
PT POSCO INTERNATIONAL INDONESIA |
— | — |
Principal operations |
Ownership (%) |
Region | ||||||||||||||||||||||||||
December 31, 2020 |
December 31, 2021 |
|||||||||||||||||||||||||||
POSCO HOLDINGS INC. |
Subsidiaries |
Total |
POSCO HOLDINGS INC. |
Subsidiaries |
Total |
|||||||||||||||||||||||
[Foreign] |
||||||||||||||||||||||||||||
PEC POWERCON SDN. BHD. |
— | — | ||||||||||||||||||||||||||
POSCO CHEMICAL Free Zone Enterprise |
— | — | ||||||||||||||||||||||||||
Poland Legnica Sourcing Center Sp. z o.o |
— | — | — | — | ||||||||||||||||||||||||
POSCO INTERNATIONAL E&P MALAYSIA SDN. BHD. |
— | — | — | — | ||||||||||||||||||||||||
AGPA PTE. LTD. |
— | — | — | — | ||||||||||||||||||||||||
POSCO AMERICA COMERCIALIZADORA S DE RL DE CV |
— | — | — | — | ||||||||||||||||||||||||
POSCO(Guangdong) Automotive Steel Co., Ltd. |
— | — | — | |||||||||||||||||||||||||
POSCO E&C Mongolia |
— | — | — | — | ||||||||||||||||||||||||
POSCO INTERNATIONAL POWER (PNGPOM) LTD. |
— | — | — | — | ||||||||||||||||||||||||
DAESAN (CAMBODIA) Co., Ltd. |
— | — | — | — |
(c) | Details of non-controlling interest as of and for the years ended December 31, 2019, 2020 and 2021 are as follows: |
1) | December 31, 2019 |
(in millions of Won) |
POSCO INTERNATIONAL Corporation |
PT. KRAKATAU POSCO |
POSCO CHEMICAL CO., LTD |
POSCO ENGINEERING & CONSTRUCTION CO., LTD. |
POSCO ICT |
Others |
Total |
|||||||||||||||||||||
Current assets |
₩ |
|||||||||||||||||||||||||||
Non-current assets |
|
|||||||||||||||||||||||||||
Current liabilities |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||
Non-current liabilities |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||
Equity |
||||||||||||||||||||||||||||
Non-controlling interests |
||||||||||||||||||||||||||||
Sales |
||||||||||||||||||||||||||||
Profit (loss) for the period |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
Profit (loss) attributable to non-controlling interests |
( |
) | ( |
) | ||||||||||||||||||||||||
Cash flows from operating activities |
( |
) | ||||||||||||||||||||||||||
Cash flows from investing activities |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
Cash flows from financing activities (before dividends to non-controlling interest) |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
Dividends to non-controlling interest |
( |
) | — | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||||
Effect of exchange rate fluctuation on cash held |
( |
) | ( |
) | ||||||||||||||||||||||||
Net increase (decrease) in cash and cash equivalents |
( |
) |
2) | December 31, 2020 |
(in millions of Won) |
POSCO INTERNATIONAL Corporation |
PT. KRAKATAU POSCO |
POSCO CHEMICAL CO., LTD |
POSCO ENGINEERING & CONSTRUCTION CO., LTD. |
POSCO ICT |
Others |
Total |
|||||||||||||||||||||
Current assets |
₩ |
|||||||||||||||||||||||||||
Non-current assets |
||||||||||||||||||||||||||||
Current liabilities |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||
Non-current liabilities |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||
Equity |
( |
) | ||||||||||||||||||||||||||
Non-controlling interests |
( |
) | ||||||||||||||||||||||||||
Sales |
||||||||||||||||||||||||||||
Profit (loss) for the period |
( |
) | ( |
) | ||||||||||||||||||||||||
Profit (loss) attributable to non-controlling interests |
( |
) | ( |
) | ||||||||||||||||||||||||
Cash flows from operating activities |
||||||||||||||||||||||||||||
Cash flows from investing activities |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
Cash flows from financing activities (before dividends to non-controlling interest) |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||
Dividends to non-controlling interest |
( |
) | — | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||||
Effect of exchange rate fluctuation on cash held |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
Net increase (decrease) in cash and cash equivalents |
( |
) | ( |
) |
3) | December 31, 2021 |
(in millions of Won) |
POSCO INTERNATIONAL Corporation |
PT. KRAKATAU POSCO |
POSCO CHEMICAL CO., LTD. |
POSCO ENGINEERING & CONSTRUCTION CO., LTD. |
POSCO ICT |
Others |
Total |
|||||||||||||||||||||
Current assets |
₩ |
|||||||||||||||||||||||||||
Non-current assets |
|
|||||||||||||||||||||||||||
Current liabilities |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||
Non-current liabilities |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||
Equity |
||||||||||||||||||||||||||||
Non-controlling interests |
||||||||||||||||||||||||||||
Sales |
||||||||||||||||||||||||||||
Profit (loss) for the period |
( |
) | ||||||||||||||||||||||||||
Profit (loss) attributable to non-controlling interests |
( |
) | ||||||||||||||||||||||||||
Cash flows from operating activities |
( |
) | ( |
) | ||||||||||||||||||||||||
Cash flows from investing activities |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||
Cash flows from financing activities (before dividends to non-controlling interest) |
( |
) | ( |
) | ||||||||||||||||||||||||
Dividend to non-controlling interest |
( |
) | — | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||||
Effect of exchange rate fluctuation on cash held |
||||||||||||||||||||||||||||
Net increase (decrease) in cash and cash equivalents |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) |
(d) | Details of associates and joint ventures |
1) | Associates |
Ownership (%) |
Region | |||||||||||
Investee |
Category of business |
2020 |
2021 |
|||||||||
[Domestic] |
||||||||||||
New Songdo International City Development, LLC |
||||||||||||
Gale International Korea, LLC |
||||||||||||
SNNC |
||||||||||||
KONES, Corp. |
||||||||||||
CHUNGJU ENTERPRISE CITY DEVELOPMENT Co.,Ltd |
||||||||||||
DAEHO GLOBAL MANAGEMENT CO., LTD. |
||||||||||||
Mokpo Deayang Industrial Corporation |
||||||||||||
Gunggi Green Energy(*1) |
||||||||||||
Pohang Special Welding Co.,Ltd. |
||||||||||||
KoFC POSCO HANWHA KB Shared Growth NO. 2. Private Equity Fund(*3) |
— | |||||||||||
EQP POSCO Global NO1 Natural Resources Private Equity Fund |
||||||||||||
KC Chemicals CORP.(*1) |
||||||||||||
POSTECH Social Enterprise Fund(*1) |
||||||||||||
QSONE Co.,Ltd. |
||||||||||||
Chun-cheon Energy Co., Ltd |
||||||||||||
Keystone NO.1 Private Equity Fund(*3) |
— | |||||||||||
Noeul Green Energy(*1) |
||||||||||||
Posco-IDV Growth Ladder IP Fund(*1) |
||||||||||||
Daesung Steel(*1) |
||||||||||||
Pohang E&E Co., LTD |
||||||||||||
POSCO Energy Valley Fund |
||||||||||||
Hyundai Invest Guggenheim CLO Qualified Private Special Asset Trust No.2 |
||||||||||||
Posco Agri-Food Export Fund |
||||||||||||
Posco Culture Contents Fund |
||||||||||||
PCC_Centroid 1st Fund(*3) |
— | |||||||||||
PCC Amberstone Private Equity Fund 1(*1) |
||||||||||||
UITrans LRT Co., Ltd. |
||||||||||||
POSCO Advanced Technical Staff Fund(*1) |
||||||||||||
POSCO 4th Industrial Revolution Fund |
||||||||||||
Pureun Tongyeong Enviro Co., Ltd. |
||||||||||||
Pure Gimpo Co., Ltd. |
||||||||||||
Posgreen Co., Ltd.(*1) |
||||||||||||
Clean Iksan Co., Ltd. |
||||||||||||
Innovalley Co., Ltd. |
||||||||||||
BLUE OCEAN Private Equity Fund |
||||||||||||
Western Inland highway CO.,LTD. |
||||||||||||
Pocheon-Hwado Highway Corp. (formerly, Metropolitan Outer Ring Expressway co., ltd.)(*5) |
||||||||||||
INNOPOLIS Job Creation Fund II(*1) |
Ownership (%) |
Region | |||||||||||
Investee |
Category of business |
2020 |
2021 |
|||||||||
[Domestic] |
||||||||||||
Samcheok Blue Power Co.,Ltd. |
||||||||||||
INKOTECH, INC.(*1) |
||||||||||||
PCC Social Enterprise Fund II(*1) |
||||||||||||
PCC Amberstone Private Equity Fund II(*1) |
||||||||||||
NEXTRAIN Co.,Ltd(*4) |
— | |||||||||||
TK CHEMICAL CORPORATION(*4) |
— | |||||||||||
PCC-Conar No.1 Fund(*1) |
||||||||||||
HYOCHUN Co., Ltd(*1) |
||||||||||||
RPSD Project Co., Ltd |
||||||||||||
PCC EV Fund(*1) |
||||||||||||
IBKC-PCC 1st Fund(*1) |
||||||||||||
2019 PCC Materials and Parts Fund(*1) |
||||||||||||
Shinahn wind Power generation(*4) |
— | |||||||||||
2019 PCC New technology Fund(*3) |
— | |||||||||||
PCC-Woori LP secondary Fund(*1) |
||||||||||||
KPGE Inc. |
||||||||||||
CURO CO.,LTD.(*1) |
||||||||||||
The Blue Gimpo Co., Ltd.(*4) |
— | |||||||||||
Link City PFV Inc. |
||||||||||||
BNH-POSCO Bio Healthcare Fund(*1) |
||||||||||||
PCC-BM Project Fund(*1) |
||||||||||||
Energy Innovation Fund I(*1) |
||||||||||||
ConsusPSdevelopment Professional Private Real Estate Fund |
||||||||||||
POSTECH Holdings 4th Fund |
||||||||||||
SNU STH IP Fund |
||||||||||||
PCC-BM Project Fund 2(*1) |
||||||||||||
G&G Technology Innovation Fund No.1(*1) |
||||||||||||
NPX-PCC Edutech Fund(*1) |
||||||||||||
C&-PCC I Fund(*1) |
||||||||||||
2020 POSCO-MOORIM Bio New Technology Fund(*1) |
||||||||||||
PCC-KAI Secondary I Fund(*1) |
||||||||||||
Human Eco-Land Co., Ltd.(*2) |
— | |||||||||||
2021 PCC Bio New Technology Fund(*1,2) |
— | |||||||||||
Consus BG Private Real Estate Fund No.2(*2) |
— | |||||||||||
Consus OS Private Real Estate Fund(*2) |
— | |||||||||||
Consus NewDeal Infra Development Specialized Private Special Asset Investment Trust 1(*2) |
— | |||||||||||
Hybrid ESG Secondary Fund No.1(*1,2) |
— | |||||||||||
[Foreign] |
||||||||||||
VSC POSCO Steel Corporation |
||||||||||||
POSCHROME (PROPRIETARY) LIMITED |
||||||||||||
CAML RESOURCES PTY LTD |
||||||||||||
Nickel Mining Company SAS |
||||||||||||
PT. Wampu Electric Power |
||||||||||||
POSK(Pinghu) Steel Processing Center Co., Ltd. |
||||||||||||
PT.INDONESIA POS CHEMTECH CHOSUN Ref |
Ownership (%) |
Region | |||||||||||
Investee |
Category of business |
2020 |
2021 |
|||||||||
[Foreign] |
||||||||||||
NS-Thainox Auto Co., Ltd. |
||||||||||||
Zhongyue POSCO (Qinhuangdao) Tinplate Industrial Co., Ltd |
||||||||||||
PT. Tanggamus Electric Power(*1) |
||||||||||||
LLP POSUK Titanium |
||||||||||||
LI3 ENERGY INC(*4) |
— | |||||||||||
IMFA ALLOYS FINLEASE LTD |
||||||||||||
KRAKATAU POS-CHEM DONG-SUH CHEMICAL(*1) |
||||||||||||
9404-5515 Quebec Inc.(*1) |
||||||||||||
Hamparan Mulya |
||||||||||||
POS-SEAHSTEELWIRE(TIANJIN)CO.,Ltd. |
||||||||||||
Eureka Moly LLC |
||||||||||||
PT. Batutua Tembaga Raya(*4) |
— | |||||||||||
KIRIN VIETNAM CO., LTD(*1) |
||||||||||||
POSCO SeAH Steel Wire(Nantong) Co., Ltd. |
||||||||||||
POS-SeAH Steel Wire (Thailand) Co., Ltd. |
||||||||||||
Jupiter Mines Limited(*1) |
||||||||||||
SAMHWAN VINA CO., LTD(*1) |
||||||||||||
Saudi-Korean Company for Maintenance Properties Management LLC(*1) |
||||||||||||
NCR LLC |
||||||||||||
AMCI (WA) PTY LTD |
||||||||||||
SHANGHAI LANSHENG DAEWOO CORP. |
||||||||||||
SHANGHAI WAIGAOQIAO FREE TRADE ZONE LANSHENG DAEWOO IN’L TRADING CO., LTD. |
||||||||||||
General Medicines Company Ltd. |
||||||||||||
KOREA LNG LTD. |
||||||||||||
AES-VCM Mong Duong Power Company Limited |
||||||||||||
South-East Asia Gas Pipeline Company Ltd. |
||||||||||||
GLOBAL KOMSCO Daewoo LLC |
||||||||||||
POSCO-Poggenamp Electrical Steel Pvt. Ltd. |
||||||||||||
Qingdao Pohang DGENX Stainless SteelPipeCo., Ltd |
||||||||||||
SHINPOONG DAEWOO PHARMA VIETNAM CO.,LTD(*1) |
||||||||||||
ZHEJIANG HUAYOU-POSCO ESM CO., LTD |
||||||||||||
MONG DUONG FINANCE HOLDINGS B.V. |
||||||||||||
FQM Australia Holdings Pty Ltd(*2) |
— | |||||||||||
Qingdao ZhongShou New Energy Technology Co.,Ltd (*1,2) |
— | |||||||||||
Black Rock Mining LTD(*1,2) |
— |
(*1) | The Company has less than 20% of the voting rights; however, the Company has determined that it has significant influence because it has meaningful representation on the board of the investee. |
(*2) | During the year ended December 31, 2021, the entity was newly classified to associates. |
(*3) | During the year ended December 31, 2021, the entity was excluded from associates due to liquidation. |
(*4) | During the year ended December 31, 2021, the entity was excluded from associates due to sale of interest, etc. |
(*5) | During the year ended December 31, 2021, Metropolitan Outer Ring Expressway co., ltd. changed its name to Pocheon-Hwado Highway Corp. |
2) | Joint ventures |
Ownership (%) |
||||||||||||||
Investee |
Category of business |
2020 |
2021 |
Region |
||||||||||
[Domestic] |
||||||||||||||
POSCO MITSUBISHI CARBON TECHNOLOGY |
||||||||||||||
POSCO-SGI Falcon Pharmaceutic Bio Secondary Fund 1(*1) |
— | |||||||||||||
POSCO-KB Shipbuilding Restructuring Fund |
||||||||||||||
POSCO-NSC Venture Fund |
||||||||||||||
PoscoPlutus Project 3rd Project fund |
||||||||||||||
PCC Bio 2nd Fund |
||||||||||||||
PCC Material 3rd Fund(*1) |
— | |||||||||||||
Union PCC Portfolio Fund |
||||||||||||||
[Foreign] |
||||||||||||||
KOBRASCO |
||||||||||||||
PT. POSMI Steel Indonesia |
||||||||||||||
CSP—Compania Siderurgica do Pecem |
||||||||||||||
BX STEEL POSCO Cold Rolled Sheet Co., Ltd. |
||||||||||||||
POSCO-SAMSUNG-Slovakia Processing Center |
||||||||||||||
YULCHON MEXICO S.A. DE C.V. |
||||||||||||||
Hyunson Engineering & Construction HYENCO |
||||||||||||||
POSCO E&C Saudi Arabia |
||||||||||||||
Pos-Austem Suzhou Automotive Co., Ltd |
||||||||||||||
POS-InfraAuto (Suzhou) Co., Ltd |
||||||||||||||
POS-AUSTEM YANTAI AUTOMOTIVE CO., LTD |
||||||||||||||
POS-AUSTEM WUHAN AUTOMOTIVE CO., LTD |
||||||||||||||
Kwanika Copper Corporation |
||||||||||||||
DMSA/AMSA |
||||||||||||||
Roy Hill Holdings Pty Ltd |
||||||||||||||
POSCO-NPS Niobium LLC |
||||||||||||||
HBIS-POSCO Automotive Steel Co., Ltd(*2) |
— | |||||||||||||
POSCO(Guangdong) Automotive Steel Co., Ltd.(*2) |
— |
(*1) | Excluded from joint ventures due to liquidation during the year ended December 31, 2021. |
(*2) | During the year ended December 31, 2021, the entity was newly classified to joint ventures. |
(e) | Newly included subsidiaries |
Company |
Date of addition |
Ownership (%) |
Reason | |||||
Poland Legnica Sourcing Center Sp. z o.o |
||||||||
POSCO Lithium Solution Co., Ltd. |
||||||||
POSCO-HY Clean Metal Co., Ltd. |
||||||||
Consus Pf private Real Estate Fund |
||||||||
New Energy Hub |
||||||||
POSCO INTERNATIONAL E&P MALAYSIA SDN.BHD. |
||||||||
Posco Busan Newdeal Fund |
||||||||
AGPA PTE. LTD. |
||||||||
Shinan Green Energy Co., LTD |
(f) | Loss of controls |
Company |
Date of exclusion |
Reason | ||
POSCO E&C Mongolia |
||||
Suncheon Eco Trans Co. Ltd |
||||
POSCO AMERICA COMERCIALIZADORA S DE RL DE CV |
||||
DAESAN (CAMBODIA) Co., Ltd. |
||||
POSCO(Guangdong) Automotive Steel Co., Ltd. |
||||
POSCO INTERNATIONAL POWER (PNGPOM) LTD. |
|
|
2. |
Statement of Compliance |
(a) |
Derivatives instruments measured at fair value |
(b) |
Financial instruments measured at fair value through profit or loss |
(c) |
Financial instruments measured at fair value through other comprehensive income |
(d) |
Defined benefit liabilities measured at the present value of the defined benefit obligation less the fair value of the plan assets |
(a) | Judgments |
• | Note 1 - Subsidiaries, associates and joint ventures |
• | Note 11 - Investments in associates and joint ventures |
• | Note 12 - Joint operations |
(b) | Assumptions and estimation uncertainties |
• |
Note 9 - Inventory |
• |
Note 11 - Investments in associates and joint ventures |
• |
Note 14 - Property, plant and equipment, net |
• |
Note 15 - Goodwill and other intangible assets, net |
• |
Note 20 - Provisions |
• |
Note 21 - Employee benefits |
• |
Note 23 - Financial instruments |
• |
Note 29 - Revenue – contract balances |
• |
Note 35 - Income taxes |
• |
Note 38 - Commitments and contingencies |
(c) |
Measurement of fair value |
• | Level 1 - unadjusted quoted prices in active markets for identical assets or liabilities. |
• | Level 2 - inputs other than quoted prices included in Level 1 that are observable for the assets or liability, either directly or indirectly. |
• | Level 3 - inputs for the assets or liability that are not based on observable market data. |
• | Note 23 - Financial instruments |
(a) |
‘Phase 2 Interest Rate Benchmark Reform’(IFRS No. 9 “Financial Instruments”, IFRS No. 39 “Financial Instruments : Recognition and Measurement”, IFRS No. 7 “Financial Instruments : Disclosures”, IFRS No. 4 “Insurance Contracts” and IFRS No. 16 “Lease”) |
(a) | the change is necessary as a direct consequence of the reform; and |
(b) | the new basis for determining the contractual cash flows is economically equivalent to the previous basis – i.e. the basis immediately before the change. |
3. |
Summary of Significant Accounting Policies |
(a) | Business combinations |
(b) | Non-controlling interests |
(c) | Subsidiaries |
(d) | Loss of control |
(e) | Interests in equity-accounted investees |
(f) |
Transactions eliminated on consolidation |
(a) | Foreign currency transactions |
(b) | Foreign operations |
(a) | Financial assets measured at amortized cost |
• | it is held within a business model whose objective is to hold assets to collect contractual cash flows, and |
• | its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. |
(b) |
Debt instruments measured at fair value through other comprehensive income |
• |
it is held within a business model whose objective is achieved by both collection contractual cash flows and selling financial assets, and |
• |
its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. |
(c) |
Equity instruments measured at fair value through other comprehensive income |
(d) |
Financial assets measured at fair value through profit or loss |
(e) | Derecognition of financial assets |
(f) |
Offsetting a financial asset and a financial liability |
(a) |
it is probable that future economic benefits associated with the item will flow to the Company, and |
(b) |
the cost can be measured reliably. |
Buildings |
||||
Structures |
||||
Machinery and equipment |
||||
Vehicles |
||||
Tools |
||||
Furniture and fixtures |
||||
Lease assets |
||||
Bearer plants |
Intellectual property rights |
||||
Development expense |
||||
Port facilities usage rights |
||||
Other intangible assets |
(a) |
Exploration and evaluation assets |
(b) |
Development assets |
(a) | Grants related to assets |
(b) | Grants related to income |
1) | As a lessee |
• | fixed payments |
• | variable lease payments that depend on an index or a rate |
• | amounts expected to be payable under a residual value guarantee; and |
• | the exercise price under a purchase option that the Company’s is reasonably certain to exercise, lease payments in an optional renewal period if the Company is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless the Company is reasonably certain not to terminate early. |
• | a revised in-substance fixed lease payment, |
• | a change in future lease payments arising from a change in an index or rate, |
• | a change in the Company’s estimate of the amount expected to be payable under a residual value guarantee, or |
• | a change in the Company’s assessment of whether it will exercise a purchase, extension or termination option |
2) |
As a lessor |
• | financial assets measured at amortized cost ; |
• | debt instruments measured at fair value through other comprehensive income ; and |
• | lease receivables, contractual assets, loan commitments, and financial guarantee contracts |
(a) | Judgments on credit risk |
(b) |
Measurement of expected credit losses |
(c) | Credit-impaired financial assets |
• | significant financial difficulty of the issuer or borrower |
• | a breach of contract, such as a default or delinquency in interest or principal payments |
• | the lender, for economic or legal reasons relating to the borrower’s financial difficulty, granting to the borrower a concession that the lender would not otherwise consider |
• | becoming probable that the borrower will enter bankruptcy or other financial reorganization |
• | the disappearance of an active market for that financial asset because of financial difficulties |
(d) | Write-off |
(a) | Hedge accounting |
① |
Fair value hedge |
② |
Cash flow hedge |
(b) | Other derivatives |
(a) |
Financial liabilities measured at fair value through profit or loss |
(b) |
Financial liabilities measured at amortized cost |
(c) | Derecognition of financial liabilities |
(a) | Short-term employee benefits |
(b) |
Other long-term employee benefits |
(c) |
Retirement benefits: Defined contribution plans |
(d) | Retirement benefits: Defined benefit plans |
(a) | Greenhouse Gases Emission Right |
(b) | Emission liability |
(a) | Share capital |
(b) | Hybrid Bonds |
(a) | Sale of good |
(b) | Transportation service |
(c) | Construction contracts |
(d) |
Certain construction contracts for condominiums |
• | interest income; |
• | interest expense; |
• | dividend income; |
• | foreign currency gain or loss on financial assets and financial liabilities; |
• | net gain or loss on financial assets measured at fair value through profit or loss; |
• | hedge ineffectiveness recognized in profit or loss; and |
• | net gain or loss on disposal of investments in debt securities measured at fair value through other comprehensive income. |
• | the gross carrying amount of the financial asset; or |
• | the amortized cost of the financial liability. |
(a) | Current income tax |
• | has a legally enforceable right to set off the recognized amounts, and |
• | intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously. |
(b) | Deferred income tax |
(a) |
IAS No. 16 “Property, Plant and Equipment”—Proceeds Before Intended Use |
(b) |
IFRS No. 3 “Business Combinations”—Reference to conceptual Framework |
(c) |
IAS No. 37 (Provisions, Contingent Liabilities and Contingent Assets)—Onerous Contracts : Cost of Fulfilling a Contact |
(d) |
IAS No. 1 “Presentation of Financial Statements”—Classification of Liabilities as Current or Non-current |
(e) |
IAS No. 12 “Income Tax”—Deferred Tax related to Assets and Liabilities arising from a Single Transaction |
• |
credit risk |
• |
liquidity risk |
• |
market risk |
• |
capital risk |
(a) |
Financial risk management |
1) |
Risk management framework |
2) | Credit risk |
3) |
Liquidity risk |
4) | Market risk |
① |
Currency risk |
② |
Interest rate risk |
③ |
Interest rate benchmark reform risk |
(in millions of Won) |
USD LIBOR(*3) |
OTHER LIBOR(*4) |
||||||||||||||
Category(*5) |
Transition not yet completed |
Modification of clause completed |
Transition not yet completed |
Modification of clause completed |
||||||||||||
Non-derivative financial assets(*1) |
||||||||||||||||
Loans |
₩ |
|
— | — | — | |||||||||||
Non-derivative financial liabilities(*1) |
|
|||||||||||||||
Borrowings |
||||||||||||||||
Derivatives(*2) |
||||||||||||||||
Interest rate swap |
— | — | — | |||||||||||||
Foreign currency swap |
— | — | ( |
) | ( |
) |
(*1) |
Based on nominal amount |
(*2) |
Based on related financial assets(liabilities) amount |
(*3) |
Excluded financial instruments with maturity date before June 30, 2023 |
(*4) |
Financial instruments using LIBOR until the interest rate renewal |
(*5) |
Excluded financial instruments not obligated to use alternative benchmark rate as of December 31, 2021 |
④ |
Other market price risk |
(b) |
Management of capital |
(in millions of Won) |
2020 |
2021 |
||||||
Total borrowings |
₩ |
|||||||
Less: Cash and cash equivalents |
||||||||
|
|
|
|
|||||
Net borrowings |
|
|||||||
Total equity |
||||||||
Net borrowings-to-equity |
% | % |
5. |
Cash and Cash Equivalents |
(in millions of Won) |
2020 |
2021 |
||||||
Cash |
₩ |
|||||||
Demand deposits and checking accounts |
||||||||
Time deposits |
||||||||
Other cash equivalents |
|
|||||||
|
|
|
|
|||||
₩ |
||||||||
|
|
|
|
6. |
Trade Accounts and Notes Receivable |
(a) | Trade accounts and notes receivable as of December 31, 2020 and 2021 are as follows: |
(in millions of Won) |
2020 |
2021 |
||||||
Current |
||||||||
Trade accounts and notes receivable |
₩ |
|||||||
Finance lease receivables |
||||||||
Unbilled due from customers for contract work |
||||||||
Less: Allowance for doubtful accounts |
( |
) | ( |
) | ||||
|
|
|
|
|||||
₩ |
|
|||||||
|
|
|
|
|||||
Non-current |
||||||||
Trade accounts and notes receivable |
₩ |
|||||||
Finance lease receivables |
||||||||
Less: Allowance for doubtful accounts |
( |
) | ( |
) | ||||
|
|
|
|
|||||
₩ |
||||||||
|
|
|
|
(b) | Finance lease receivables are as follows: |
(in millions of Won) |
||||||||||
Customer |
Leased Items |
2020 |
2021 |
|||||||
Officers and employees |
Songdo apartment rental contract | ₩ |
||||||||
ZHAOHUUI PROSPERITY INT’L LTD |
Office Rental | |||||||||
|
|
|
|
|||||||
₩ |
||||||||||
|
|
|
|
(c) |
As of December 31, 2020 and 2021, the Company’s gross investment and net investment in the leases are as follows: |
(in millions of Won) |
2020 |
2021 |
||||||
Less than 1 year |
₩ |
|||||||
1 year - 3 years |
— |
|||||||
Undiscounted lease payments |
||||||||
Unrealized interest income |
( |
) | ||||||
|
|
|
|
|||||
Present value of minimum lease payment |
₩ |
|
||||||
|
|
|
|
7. |
Other Receivables |
( a ) |
The details of other receivables as of December 31, 2020 and 2021, are as follows: |
(in millions of Won) |
2020 |
2021 |
||||||
Current |
||||||||
Loans |
₩ |
|||||||
Other accounts receivable |
||||||||
Accrued income |
||||||||
Deposits |
||||||||
Lease receivables |
||||||||
Others |
||||||||
Less: Allowance for doubtful accounts |
( |
) | ( |
) | ||||
|
|
|
|
|||||
₩ |
||||||||
|
|
|
|
|||||
Non-current |
||||||||
Loans |
₩ |
|||||||
Other accounts receivable |
||||||||
Accrued income |
||||||||
Deposits |
||||||||
Lease receivables |
||||||||
Less: Allowance for doubtful accounts |
( |
) | ( |
) | ||||
|
|
|
|
|||||
₩ |
||||||||
|
|
|
|
(b) |
The details of lease receivables are as follows: |
(in millions of Won) |
||||||||||
Customer |
Leased items |
2020 |
2021 |
|||||||
HEUNG-A SHIPPING CO., LTD., HEUNG-A LINE CO., LTD., MSC |
6 Container Ships, 4 Tankers |
₩ |
||||||||
KOGAS, ONGC Videsh Limited, GAIL(India) Limited, Myanmar Oil and Gas Enterprise |
Helicopter, Ship, Office, Jetty |
|||||||||
|
|
|
|
|||||||
₩ |
||||||||||
|
|
|
|
( c ) |
As of December 31, 2021, total and net lease investments in the leases are as follows: |
(in millions of Won) |
2020 |
2021 |
||||||
Less than 1 year |
₩ |
|||||||
1 year - 3 years |
||||||||
3 years - 5 years |
||||||||
Over 5 years |
||||||||
|
|
|
|
|||||
Undiscounted lease payments |
||||||||
Unrealized interest income |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Present value of minimum lease payment |
₩ |
|
|
|||||
|
|
|
|
(in millions of Won) |
2020 |
2021 |
||||||
Current |
||||||||
Derivatives assets |
₩ |
|||||||
Debt securities |
||||||||
Deposit instruments(*1,2) |
||||||||
Short-term financial instruments(*2) |
||||||||
|
|
|
|
|||||
₩ |
||||||||
|
|
|
|
|||||
Non-current |
||||||||
Derivatives assets |
₩ |
|||||||
Equity securities(*3) |
||||||||
Debt securities |
||||||||
Other securities(*3) |
||||||||
Deposit instruments(*2) |
||||||||
|
|
|
|
|||||
₩ |
||||||||
|
|
|
|
(*1) | As of December 31, 202 0 and 2021 , ₩ ₩ |
(*2) |
As of December 31, 2020 and 2021, financial instruments amounting to ₩ ₩ |
(*3) |
As of December 31, 2020 and 2021, ₩ ₩ |
9. |
Inventories |
(a) | Inventories as of December 31, 2020 and 2021 are as follows: |
(in millions of Won) |
2020 |
2021 |
||||||
Finished goods |
₩ |
|||||||
Merchandise |
||||||||
Semi-finished goods |
||||||||
Raw materials |
||||||||
Fuel and materials |
||||||||
Construction inventories |
||||||||
Materials-in-transit |
||||||||
Others |
||||||||
|
|
|
|
|||||
|
||||||||
|
|
|
|
|||||
Less: Allowance for inventories valuation |
( |
) | ( |
) | ||||
|
|
|
|
|||||
₩ |
||||||||
|
|
|
|
(b) |
The changes in allowance for inventories valuation for the years ended December 31, 2019, 2020 and 2021 were as follows: |
(in millions of Won) |
2019 |
2020 |
2021 |
|||||||||
Beginning |
₩ |
|||||||||||
Loss on valuation of inventories |
||||||||||||
Realization on sale of inventories |
( |
) | ( |
) | ( |
) | ||||||
Others |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||
Ending |
₩ |
|||||||||||
|
|
|
|
|
|
10. |
Assets Held for Sale |
(in millions of Won) |
2020 |
2021 |
||||||||||||||||||||||
The controlling company(*3) |
Subsidiaries |
Total |
The controlling company(*1,2,3,4) |
Subsidiaries(*7) |
Total |
|||||||||||||||||||
Asset |
||||||||||||||||||||||||
Cash and cash equivalents(*5) |
₩ |
— |
— |
|||||||||||||||||||||
Account receivables and other receivables |
— |
— |
||||||||||||||||||||||
Investment stock in joint ventures(*6) |
— |
— |
— |
— |
||||||||||||||||||||
Tangible assets |
||||||||||||||||||||||||
Intangible assets |
— |
— |
— |
|||||||||||||||||||||
Others |
— |
— |
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
₩ |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Liability |
||||||||||||||||||||||||
Others |
₩ |
— |
(*1) | During the year ended December 31, 2021, the Company sold the land in the Yanghak Neighborhood Park development reserve area that was classified as asset held for sale and the Company recognized ₩ |
(*2) | During the year ended December 31, 2021, the Company decided to trade and exchange the emission rights and reclassified the emission rights to assets held for sale. After that, the Company recognized ₩ |
(*3) | During the year ended December 31, 2019, the Company decided to dispose individual assets for which use was discontinued, such as CEM plants, and classified the assets as held for sale. During the year ended December 31, 2020 the Company recognized ₩ ₩ |
(*4) | During the year ended December 31, 2021, the Company decided to dispose Synthetic Natural Gas (SNG) facility for which use was discontinued, and classified as asset held for sale. |
(*5) | Cash and cash equivalents in the statement of cash flows include cash and cash equivalents that are classified as assets held for sale as of December 31, 2020 and 2021. |
(*6) | During the year ended December 31, 2021, the Company decided to dispose of interests of POSCO(Guangdong) Automotive Steel Co, Ltd. which is classified investment in joint ventures as asset held for sale for ₩ |
(*7) | The Company decided to dispose tangible/intangible assets of HUME COAL PTY LTD, a subsidiary, and classified as assets held for sale for ₩ |
11. |
Investments in Associates and Joint ventures |
(a) | Investments in associates and joint ventures as of December 31, 2020 and 2021 are as follows: |
(in millions of Won) |
2020 |
2021 |
||||||
Investments in associates |
₩ |
|||||||
Investments in joint ventures |
||||||||
|
|
|
|
|||||
₩ |
||||||||
|
|
|
|
(b) | Details of investments in associates as of December 31, 2020 and 2021 are as follows: |
(in millions of Won) |
Number of shares |
Ownership (%) |
Acquisition cost |
Book value |
||||||||||||||||
Company |
2020 |
2021 |
||||||||||||||||||
[Domestic] |
||||||||||||||||||||
EQP POSCO Global NO1 Natural Resources Private Equity Fund |
₩ |
₩ |
||||||||||||||||||
Samcheok Blue Power Co.,Ltd . (*1) |
||||||||||||||||||||
SNNC |
||||||||||||||||||||
QSONE Co.,Ltd. |
||||||||||||||||||||
Chun-cheon Energy Co., Ltd(*1) |
||||||||||||||||||||
Western Inland highway CO.,LTD. |
||||||||||||||||||||
NEXTRAIN CO ., Ltd.(*2) |
— | — | — | — | ||||||||||||||||
Pocheon-Hwado Highway Corp. ( formerly , Metropolitan Outer Ring Expressway co., ltd.)(*1) |
||||||||||||||||||||
CHUNGJU ENTERPRISE CITY DEVELOPMENT Co.,Ltd |
||||||||||||||||||||
Daesung Steel(*3) |
||||||||||||||||||||
PCC Amberstone Private Equity Fund 1(*3) |
||||||||||||||||||||
Others ( |
||||||||||||||||||||
|
|
|
|
|||||||||||||||||
|
|
|
|
|||||||||||||||||
[Foreign] |
||||||||||||||||||||
South-East Asia Gas Pipeline Company Ltd. |
||||||||||||||||||||
AES-VCM Mong Duong Power Company Limited(*1) |
— | |||||||||||||||||||
9404-5515 Quebec Inc.(*3) |
||||||||||||||||||||
FQM Australia Holdings Pty Ltd(*4) |
— | |||||||||||||||||||
Eureka Moly LLC |
— | |||||||||||||||||||
AMCI (WA) PTY LTD |
||||||||||||||||||||
NCR LLC |
— | |||||||||||||||||||
KOREA LNG LTD. |
||||||||||||||||||||
Nickel Mining Company SAS |
||||||||||||||||||||
ZHEJIANG HUAYOU-POSCO ESM CO., LTD |
||||||||||||||||||||
Zhongyue POSCO (Qinhuangdao) Tinplate Industrial Co., Ltd |
||||||||||||||||||||
PT. Wampu Electric Power(*1) |
||||||||||||||||||||
POSCO SeAH Steel Wire(Nantong) Co., Ltd. |
||||||||||||||||||||
Others ( |
||||||||||||||||||||
|
|
|
|
|||||||||||||||||
|
|
|
|
|||||||||||||||||
₩ |
||||||||||||||||||||
|
|
|
|
(*1) |
As of December 31, 2020 and 2021, investments in associates amounting to ₩ ₩ |
(*2) | During the year ended December 31, 2021, investment in this associate was transferred to financial assets at fair value through other comprehensive income due to decline in ownership upon capital increase in the associate in which the Company did not participate. |
(*3) | As of December 31, 2021, it was classified as an associate even though the Company’s ownership percentage is less than |
(*4) | During the year ended December 31, 2021, the Company acquired shares of FQM Australia Holdings Pty Ltd and classified the investment as investment in an associate |
(c) | Details of investments in joint ventures as of December 31, 2020 and 2021 are as follows: |
(in millions of Won) |
Number of shares |
Ownership (%) |
Acquisition cost |
Book value |
||||||||||||||||
Company |
2020 |
2021 |
||||||||||||||||||
[Domestic] |
||||||||||||||||||||
POSCO MITSUBISHI CARBON TECHNOLOGY |
₩ |
₩ |
||||||||||||||||||
Others ( |
||||||||||||||||||||
|
|
|
|
|||||||||||||||||
|
|
|
|
|||||||||||||||||
[Foreign] |
||||||||||||||||||||
Roy Hill Holdings Pty Ltd(*1) |
||||||||||||||||||||
POSCO-NPS Niobium LLC |
||||||||||||||||||||
KOBRASCO |
||||||||||||||||||||
BX STEEL POSCO Cold Rolled Sheet Co., Ltd. |
— | |||||||||||||||||||
DMSA/AMSA(*1,2) |
— | |||||||||||||||||||
CSP - Compania Siderurgica do Pecem |
— | |||||||||||||||||||
HBIS-POSCO Automotive Steel Co., Ltd(*3) |
— |
— |
||||||||||||||||||
Others ( |
||||||||||||||||||||
|
|
|
|
|||||||||||||||||
|
|
|
|
|||||||||||||||||
₩ |
||||||||||||||||||||
|
|
|
|
(*1) | As of December 31, 202 0 and December 31, 2021 , the investments in joint ventures are provided as collateral in relation to the joint ventures’ borrowings. |
(*2) | All of the shareholders of the joint venture entered into supplemental funding agreement to extend the maturity of the loans to the joint venture by the lenders. However, the Company believed the shareholders’ supplemental funding agreement was invalid and was in arbitration process for annulment. Pursuant to the final judgement from the arbitration, the Company received a refund of the previously provided supplement funding which was subsequently converted to shares. Upon receipt of such capital distribution, the Company recognized decrease in the investment on joint venture, which also resulted in decrease in the Company’s ownership in the investee. |
(*3) |
During the year ended December 31, 2021, the Company newly acquired interests in HBIS-POSCO Automotive Steel Co., Ltd through investment in kind with shares in POSCO(Guangdong) Automotive Steel Co., Ltd which was a subsidiary. Meanwhile, the residual interests in |
POSCO(Guangdong) Automotive Steel Co., Ltd owned by POSCO-China Holding Corp. which is a subsidiary are classified as assets held for sale. |
(d) | The movements of investments in associates and joint ventures for the years ended December 31, 2020 and 2021 were as follows: |
1) | For the year ended December 31, 2020 |
(in millions of Won) |
||||||||||||||||||||||||
Company |
December 31, 2019 Book value |
Acquisition |
Dividends |
Share of profits (losses) |
Other increase (decrease)(*1) |
December 31, 2020 Book value |
||||||||||||||||||
[Domestic] |
||||||||||||||||||||||||
EQP POSCO Global NO1 Natural Resources Private Equity Fund |
₩ |
— | — | ( |
) | |||||||||||||||||||
Samcheok Blue Power Co.,Ltd. |
— | — | ( |
) | ( |
) | ||||||||||||||||||
SNNC |
— | ( |
) | |||||||||||||||||||||
QSONE Co.,Ltd. |
— | ( |
) | — | ||||||||||||||||||||
Chun-cheon Energy Co., Ltd |
— | — | ( |
) | ||||||||||||||||||||
Western Inland highway CO.,LTD. |
— | ( |
) | |||||||||||||||||||||
NEXTRAIN CO ., Ltd. |
— | ( |
) | |||||||||||||||||||||
Pocheon-Hwado Highway Corp. ( formerly , Metropolitan Outer Ring Expressway co., ltd.) |
— | ( |
) | — | ||||||||||||||||||||
CHUNGJU ENTERPRISE CITY DEVELOPMENT Co.,Ltd |
— | — | ( |
) | — | |||||||||||||||||||
Daesung Steel |
— | — | ( |
) | ||||||||||||||||||||
PCC Amberstone Private Equity Fund 1 |
— | ( |
) | ( |
) | |||||||||||||||||||
POSCO MITSUBISHI CARBON TECHNOLOGY |
— | ( |
) | ( |
) | |||||||||||||||||||
Others (65 companies) |
( |
) | ( |
) | ( |
) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
( |
) | ( |
) | ( |
) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
[Foreign] |
||||||||||||||||||||||||
South-East Asia Gas Pipeline Company Ltd. |
— | ( |
) | ( |
) | |||||||||||||||||||
AES-VCM Mong Duong Power Company Limited |
— | ( |
) | ( |
) | |||||||||||||||||||
9404-5515 Quebec Inc. |
— | ( |
) | ( |
) | |||||||||||||||||||
Eureka Moly LLC |
— | — | ( |
) | ( |
) | ||||||||||||||||||
AMCI (WA) PTY LTD |
— | — | ( |
) | ||||||||||||||||||||
NCR LLC |
— | ( |
) | ( |
) | |||||||||||||||||||
KOREA LNG LTD. |
— | ( |
) | ( |
) | |||||||||||||||||||
Nickel Mining Company SAS |
— | — | ||||||||||||||||||||||
ZHEJIANG HUAYOU-POSCO ESM CO., LTD |
— | — | ( |
) | ||||||||||||||||||||
Zhongyue POSCO (Qinhuangdao) Tinplate Industrial Co., Ltd |
— | — | ( |
) | ||||||||||||||||||||
PT. Wampu Electric Power |
— | ( |
) | ( |
) | |||||||||||||||||||
POSCO SeAH Steel Wire(Nantong) Co., Ltd. |
— | — | ||||||||||||||||||||||
Roy Hill Holdings Pty Ltd |
— | ( |
) | |||||||||||||||||||||
POSCO-NPS Niobium LLC |
— | ( |
) | ( |
) | |||||||||||||||||||
KOBRASCO |
— | ( |
) | ( |
) | |||||||||||||||||||
BX STEEL POSCO Cold Rolled Sheet Co., Ltd. |
— | — | ||||||||||||||||||||||
DMSA/AMSA |
— | ( |
) | ( |
) | |||||||||||||||||||
CSP - Compania Siderurgica do Pecem |
— | — | ( |
) | ( |
) | — | |||||||||||||||||
Others ( |
— | ( |
) | ( |
) | ( |
) | |||||||||||||||||
|
|
|
|
|
|
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|
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|
|
|||||||||||||
( |
) | ( |
) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
₩ |
( |
) | ( |
) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(*1) | Other increase or decrease represents the changes in investments in associates and joint ventures due to disposals, change in capital due from translations of financial statements of foreign investees and others. |
2) | For the year ended December 31, 2021 |
(in millions of Won) |
||||||||||||||||||||||||
Company |
December 31, 2020 Book value |
Acquisition |
Dividends |
Share of profits (losses) |
Other increase (decrease)(*1) |
December 31, 2021 Book value |
||||||||||||||||||
[Domestic] |
||||||||||||||||||||||||
EQP POSCO Global NO1 Natural Resources Private Equity Fund |
₩ |
— | — | — | ||||||||||||||||||||
Samcheok Blue Power Co.,Ltd. |
( |
) | ( |
) | ( |
) | ||||||||||||||||||
SNNC |
— | ( |
) | ( |
) | |||||||||||||||||||
QSONE Co.,Ltd. |
— | ( |
) | — | ||||||||||||||||||||
Chun-cheon Energy Co., Ltd |
— | — | ( |
) | ||||||||||||||||||||
Western Inland highway CO.,LTD. |
— | ( |
) | |||||||||||||||||||||
NEXTRAIN CO ., Ltd. |
— | — | ( |
) | ( |
) | — | |||||||||||||||||
Pocheon-Hwado Highway Corp. ( formerly , Metropolitan Outer Ring Expressway co., ltd.) |
— | ( |
) | |||||||||||||||||||||
CHUNGJU ENTERPRISE CITY DEVELOPMENT Co.,Ltd |
— | — | — | |||||||||||||||||||||
Daesung Steel |
— | — | ||||||||||||||||||||||
PCC Amberstone Private Equity Fund 1 |
— | ( |
) | ( |
) | |||||||||||||||||||
POSCO MITSUBISHI CARBON TECHNOLOGY |
— | — | ||||||||||||||||||||||
Others (62 companies) |
( |
) | ( |
) | ||||||||||||||||||||
|
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|
|||||||||||||
( |
) | ( |
) | |||||||||||||||||||||
|
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|
|||||||||||||
[Foreign] |
||||||||||||||||||||||||
South-East Asia Gas Pipeline Company Ltd. |
— | ( |
) | |||||||||||||||||||||
AES-VCM Mong Duong Power Company Limited |
— | ( |
) | |||||||||||||||||||||
9404-5515 Quebec Inc. |
— | ( |
) | |||||||||||||||||||||
FQM Australia Holdings Pty Ltd |
— | — |
( |
) | ( |
) | ||||||||||||||||||
Eureka Moly LLC |
— | — | ( |
) | ||||||||||||||||||||
AMCI (WA) PTY LTD |
— | — | ( |
) | ||||||||||||||||||||
NCR LLC |
— | ( |
) | |||||||||||||||||||||
KOREA LNG LTD. |
— | ( |
) | ( |
) | |||||||||||||||||||
Nickel Mining Company SAS |
— | — | ||||||||||||||||||||||
ZHEJIANG HUAYOU-POSCO ESM CO., LTD |
— | — | ( |
) | ||||||||||||||||||||
Zhongyue POSCO (Qinhuangdao) Tinplate Industrial Co., Ltd |
— | — | ||||||||||||||||||||||
PT. Wampu Electric Power |
— | — | ||||||||||||||||||||||
POSCO SeAH Steel Wire(Nantong) Co., Ltd. |
— | — | ||||||||||||||||||||||
Roy Hill Holdings Pty Ltd |
— | ( |
) | |||||||||||||||||||||
POSCO-NPS Niobium LLC |
— | ( |
) | |||||||||||||||||||||
KOBRASCO |
— | ( |
) | |||||||||||||||||||||
BX STEEL POSCO Cold Rolled Sheet Co., Ltd. |
— | — | ||||||||||||||||||||||
DMSA/AMSA |
— | — | ( |
) | ||||||||||||||||||||
CSP - Compania Siderurgica do Pecem |
— | — | ||||||||||||||||||||||
HBIS-POSCO Automotive Steel Co., Ltd |
— |
— | ||||||||||||||||||||||
Others ( |
( |
) | ||||||||||||||||||||||
|
|
|
|
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|
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|
|||||||||||||
( |
) | |||||||||||||||||||||||
|
|
|
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|
|
|
|
|
|
|
|||||||||||||
₩ |
( |
) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(*1) | Other increase or decrease represents the changes in investments in associates and joint ventures due to disposals, change in capital due from translations of financial statements of foreign investees and others. |
(e) |
Summarized financial information of associates and joint ventures as of and for the years ended December 31, 2020 and 2021 are as follows: |
1) |
December 31, 2019 |
(in millions of Won) |
||||||||||||||||||||
Company |
Assets |
Liabilities |
Equity (deficit) |
Sales |
Net income (loss) |
|||||||||||||||
[Domestic] |
||||||||||||||||||||
EQP POSCO Global NO1 Natural Resources Private Equity Fund |
₩ |
— |
||||||||||||||||||
POSPower Co., Ltd |
— |
( |
) | |||||||||||||||||
SNNC |
||||||||||||||||||||
QSONE Co.,Ltd. |
||||||||||||||||||||
Chun-cheon Energy Co., Ltd |
( |
) | ||||||||||||||||||
NEXTRAIN CO., Ltd. |
— |
( |
) | |||||||||||||||||
Keystone NO. 1. Private Equity Fund |
( |
) | ||||||||||||||||||
CHUNGJU ENTERPRISE CITY DEVELOPMENT Co.,Ltd |
||||||||||||||||||||
Daesung Steel |
( |
) | ||||||||||||||||||
Incheon-Gimpo Expressway Co., Ltd. |
( |
) | ||||||||||||||||||
KoFC POSCO HANWHA KB Shared Growth NO. 2. Private Equity Fund |
||||||||||||||||||||
KONES, Corp. |
( |
) | ||||||||||||||||||
POSCO MITSUBISHI CARBON TECHNOLOGY |
||||||||||||||||||||
[Foreign] |
||||||||||||||||||||
South-East Asia Gas Pipeline Company Ltd. |
||||||||||||||||||||
9404-5515 Quebec Inc. |
— |
|||||||||||||||||||
Nickel Mining Company SAS |
||||||||||||||||||||
ZHEJIANG HUAYOU-POSCO ESM CO., LTD |
||||||||||||||||||||
KOREA LNG LTD. |
||||||||||||||||||||
PT. Batutua Tembaga Raya |
( |
) | ||||||||||||||||||
PT. Wampu Electric Power |
( |
) | ||||||||||||||||||
Zhongyue POSCO (Qinhuangdao) Tinplate Industrial Co., Ltd |
||||||||||||||||||||
POSCO SeAH Steel Wire(Nantong) Co., Ltd. |
||||||||||||||||||||
Roy Hill Holdings Pty Ltd |
||||||||||||||||||||
POSCO-NPS Niobium LLC |
— |
— |
||||||||||||||||||
KOBRASCO |
||||||||||||||||||||
BX STEEL POSCO Cold Rolled Sheet Co., Ltd. |
||||||||||||||||||||
DMSA/AMSA |
( |
) | ||||||||||||||||||
CSP - Compania Siderurgica do Pecem |
( |
) |
( |
) |
2) |
December 31, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
||||||||||||||||||||
Company |
Assets |
Liabilities |
Equity (deficit) |
Sales |
Net income (loss) |
|||||||||||||||
[Domestic] |
||||||||||||||||||||
EQP POSCO Global NO1 Natural Resources Private Equity Fund |
₩ |
— | ||||||||||||||||||
Samcheok Blue Power Co.,Ltd. |
— | ( |
) | |||||||||||||||||
SNNC |
||||||||||||||||||||
QSONE Co.,Ltd. |
||||||||||||||||||||
Chun-cheon Energy Co., Ltd |
( |
) | ||||||||||||||||||
Western Inland highway CO.,LTD. |
— | ( |
) | |||||||||||||||||
NEXTRAIN CO ., Ltd. |
— | ( |
) | |||||||||||||||||
Pocheon-Hwado Highway Corp. ( formerly , Metropolitan Outer Ring Expressway co., ltd.) |
— | ( |
) | |||||||||||||||||
CHUNGJU ENTERPRISE CITY DEVELOPMENT Co.,Ltd |
( |
) | ||||||||||||||||||
Daesung Steel |
( |
) | ||||||||||||||||||
PCC Amberstone Private Equity Fund 1 |
||||||||||||||||||||
POSCO MITSUBISHI CARBON TECHNOLOGY |
( |
) | ||||||||||||||||||
[Foreign] |
||||||||||||||||||||
South-East Asia Gas Pipeline Company Ltd. |
||||||||||||||||||||
AES-VCM Mong Duong Power Company Limited |
||||||||||||||||||||
9404-5515 Quebec Inc. |
— | |||||||||||||||||||
KOREA LNG LTD. |
||||||||||||||||||||
Nickel Mining Company SAS |
( |
) | ||||||||||||||||||
ZHEJIANG HUAYOU-POSCO ESM CO., LTD |
( |
) | ||||||||||||||||||
Zhongyue POSCO (Qinhuangdao) Tinplate Industrial Co., Ltd |
( |
) | ||||||||||||||||||
PT. Wampu Electric Power |
||||||||||||||||||||
POSCO SeAH Steel Wire(Nantong) Co., Ltd. |
||||||||||||||||||||
Roy Hill Holdings Pty Ltd |
||||||||||||||||||||
POSCO-NPS Niobium LLC |
— | — | ||||||||||||||||||
KOBRASCO |
||||||||||||||||||||
BX STEEL POSCO Cold Rolled Sheet Co., Ltd. |
||||||||||||||||||||
DMSA/AMSA |
( |
) | ||||||||||||||||||
CSP - Compania Siderurgica do Pecem |
( |
) | ( |
) |
3 ) |
December 31, 2021 |
(in millions of Won) |
||||||||||||||||||||
Company |
Assets |
Liabilities |
Equity (deficit) |
Sales |
Net income (loss) |
|||||||||||||||
[Domestic] |
||||||||||||||||||||
EQP POSCO Global NO1 Natural Resources Private Equity Fund |
₩ |
— | ||||||||||||||||||
Samcheok Blue Power Co.,Ltd. |
— | ( |
) | |||||||||||||||||
SNNC |
||||||||||||||||||||
QSONE Co.,Ltd. |
||||||||||||||||||||
Chun-cheon Energy Co., Ltd |
( |
) | ||||||||||||||||||
Western Inland highway CO.,LTD. |
— | ( |
) | |||||||||||||||||
Pocheon-Hwado Highway Corp. ( formerly , Metropolitan Outer Ring Expressway co., ltd.)(*1) |
— | ( |
) | |||||||||||||||||
CHUNGJU ENTERPRISE CITY DEVELOPMENT Co.,Ltd |
||||||||||||||||||||
Daesung Steel |
||||||||||||||||||||
PCC Amberstone Private Equity Fund 1 |
— | |||||||||||||||||||
POSCO MITSUBISHI CARBON TECHNOLOGY |
||||||||||||||||||||
[Foreign] |
||||||||||||||||||||
South-East Asia Gas Pipeline Company Ltd. |
||||||||||||||||||||
AES-VCM Mong Duong Power Company Limited |
||||||||||||||||||||
9404-5515 Quebec Inc. |
— | |||||||||||||||||||
FQM Australia Holdings Pty Ltd |
( |
) | ||||||||||||||||||
KOREA LNG LTD. |
||||||||||||||||||||
Nickel Mining Company SAS |
||||||||||||||||||||
ZHEJIANG HUAYOU-POSCO ESM CO., LTD |
( |
) | ||||||||||||||||||
Zhongyue POSCO (Qinhuangdao) Tinplate Industrial Co., Ltd |
||||||||||||||||||||
PT. Wampu Electric Power |
||||||||||||||||||||
POSCO SeAH Steel Wire(Nantong) Co., Ltd. |
||||||||||||||||||||
Roy Hill Holdings Pty Ltd |
||||||||||||||||||||
POSCO-NPS Niobium LLC |
— | — | ||||||||||||||||||
KOBRASCO |
||||||||||||||||||||
BX STEEL POSCO Cold Rolled Sheet Co., Ltd. |
||||||||||||||||||||
DMSA/AMSA |
||||||||||||||||||||
CSP - Compania Siderurgica do Pecem |
||||||||||||||||||||
HBIS-POSCO Automotive Steel Co., Ltd |
(f) | Changes in accumulated losses of equity-accounted investees that were not recognized since the Company discontinues the use of the equity method for the year ended December 31, 2021 were as follows: |
(in millions of Won) |
||||||||||||
Company |
Beginning balance |
Increase (decrease) |
Ending balance |
|||||||||
New Songdo International City Development, LLC |
₩ |
( |
) | |||||||||
Mokpo Deayang industrial Corporation |
( |
) | ||||||||||
UITrans LRT Co., Ltd. |
||||||||||||
Clean Iksan Co., Ltd. |
||||||||||||
HYOCHUN Co.,Ltd. |
||||||||||||
Shinhan wind power generation |
( |
) | — | |||||||||
CSP - Compania Siderurgica do Pecem |
( |
) | — | |||||||||
KIRIN VIETNAM CO.,Ltd. |
||||||||||||
INKOTECH, INC. |
||||||||||||
POSTO-Poggenamp Electrical Steel Pvt, Ltd. |
||||||||||||
Gunggi Green Energy |
— |
12. |
Joint Operations |
Joint operations |
Operation |
Ownership (%) |
Location | |||||
Myanmar A-1/A-3 |
||||||||
Offshore Midstream |
||||||||
Greenhills Mine |
||||||||
Arctos Anthracite Coal Project |
||||||||
Mt. Thorley J/V |
||||||||
POSMAC J/V |
||||||||
Samcheok Thermal Power Plant EPC (unit 1, 2) Construction work |
||||||||
Sinansan Line Double Track Train Private Investment project construction work |
||||||||
Panama Metro Line 3 Project construction work |
||||||||
2*600 MW Matarbari Ultra Super Critical Coal-Fired Power construction work |
||||||||
Yangsan Sasong 2nd Apartment Project (B5,6,7,9 Block) Construction work |
||||||||
Yangsan Sasong Apartment Project (C1,B3,B4 Block) Construction work |
||||||||
Songdo B5 Block officetel Project Construction work |
||||||||
Particle Accelerator Facility Construction work |
||||||||
Anyang Jinheung Apartment Construction work |
13. |
Investment Property, Net |
(a) | Investment property as of December 31, 2020 and 2021 are as follows: |
(in millions of Won) |
2020 |
2021 |
||||||||||||||||||||||
Acquisition cost |
Accumulated depreciation and impairment loss |
Book value |
Acquisition cost |
Accumulated depreciation and impairment loss |
Book value |
|||||||||||||||||||
Land |
₩ |
( |
) | ( |
) | |||||||||||||||||||
Buildings |
( |
) | ( |
) | ||||||||||||||||||||
Structures |
( |
) | ( |
) | ||||||||||||||||||||
Right of use assets |
( |
) | ( |
) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
₩ |
( |
) | ( |
) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(b) | Changes in the carrying amount of investment property for the years ended December 31, 2020 and 2021 were as follows: |
1) | For the year ended December 31, 2020 |
(in millions of Won) |
Beginning |
Acquisitions |
Disposals |
Depreciation(*1) |
Others(*2) |
Ending |
||||||||||||||||||
Land |
₩ |
( |
) | — | ( |
) | ||||||||||||||||||
Buildings |
— | ( |
) | ( |
) | |||||||||||||||||||
Structures |
— | — | ( |
) | ||||||||||||||||||||
Right of use assets |
— | ( |
) | ( |
) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
₩ |
|
( |
) | ( |
) | |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(*1) | Includes reversal of impairment loss on investment property recognized by POSCO(Dalian) IT Center Development Co., Ltd., a subsidiary, in relation to its office lease amounting to ₩ |
(*2) | Includes reclassification resulting from changing purpose of use, adjustment of foreign currency translation difference and others. |
2) | For the year ended December 31, 2021 |
(in millions of Won) |
Beginning |
Acquisitions |
Disposals |
Depreciation |
Others(*1) |
Ending |
||||||||||||||||||
Land |
₩ |
( |
) | — | ( |
) | ||||||||||||||||||
Buildings |
( |
) | ( |
) | ||||||||||||||||||||
Structures |
— | — | ( |
) | ||||||||||||||||||||
Right of use assets |
— | — | ( |
) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
₩ |
( |
) | ( |
) | |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(*1) | Includes reclassification resulting from changing purpose of use, adjustment of foreign currency translation difference and others. |
14. |
Property, Plant and Equipment, Net |
(a) | Property, plant and equipment as of December 31, 2020 and 2021 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
2020 |
2021 |
||||||||||||||||||||||||||||||
Acquisition cost |
Accumulated depreciation and impairment loss |
Government grants |
Book value |
Acquisition cost |
Accumulated depreciation and impairment loss |
Government grants |
Book value |
|||||||||||||||||||||||||
Land |
₩ |
( |
) | — | ( |
) | — | |||||||||||||||||||||||||
Buildings |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||
Structures |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||
Machinery and equipment |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||
Vehicles |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||
Tools |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||
Furniture and fixtures |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||
Lease assets |
( |
) | — | ( |
) | — | ||||||||||||||||||||||||||
Bearer plants |
( |
) | — | ( |
) | — | ||||||||||||||||||||||||||
Construction-in- progress |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
₩ |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b) | Changes in the carrying amount of property, plant and equipment for the years ended December 31, 2020 and 2021 were as follows: |
1) | For the year ended December 31, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
Beginning |
Acquisitions |
Disposals |
Depreciation |
Impairment loss(*1) |
Others(*2) |
Ending |
|||||||||||||||||||||
Land |
₩ |
( |
) | |
||||||||||||||||||||||||
Buildings |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
Structures |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
Machinery and equipment |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
Vehicles |
( |
) | ( |
) | ||||||||||||||||||||||||
Tools |
( |
) | ( |
) | ||||||||||||||||||||||||
Furniture and fixtures |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
Lease assets |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
Bearer plants |
( |
) | ( |
) | ||||||||||||||||||||||||
Construction-in-progress |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
₩ |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
The Company estimated the recoverable amount of individual assets that it ceased their use due to the disposal plan and others at fair value less costs to sell based on sale price or scrap value and recognized an impairment loss since recoverable amounts are less than their carrying amounts for the year ended December 31, 2020. During the year ended December 31, 2020, the Company recognized impairment losses on damaged assets caused by a fire accident. |
(*2) |
Represents assets transferred from construction-in-progress |
2) | For the year ended December 31, 2021 |
(in millions of Won) |
Beginning |
Acquisitions |
Disposals |
Depreciation |
Impairment loss(*1,2,3) |
Others(*4) |
Ending |
|||||||||||||||||||||
Land |
₩ |
( |
) | |||||||||||||||||||||||||
Buildings |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
Structures |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
Machinery and equipment |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
Vehicles |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
Tools |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
Furniture and fixtures |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
Lease assets |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
Bearer plants |
( |
) | ( |
) | ||||||||||||||||||||||||
Construction-in-progress |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
|
|
|
|
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|
|
|
|
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|
|
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|||||||||||||||
₩ |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
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|
(*1) | The Company estimated the recoverable amount of individual assets that it ceased their use due to the disposal plan and others at fair value less costs to sell based on sale price or scrap value and recognized an impairment loss since recoverable amounts are less than their carrying amounts for the year ended December 31, 2021. During the year ended December 31, 2021, the Company recognized impairment losses on damaged assets caused by the fire accident. |
(*2) | The Company decided to stop the intended use for Synthetic Natural Gas (SNG) facility and sell the related assets. The Company estimated the recoverable amount based on expected sale price and recognized ₩ |
(*3) | During the year ended December 31, 2021, evidence of impairment occurred due to changes in the quality of bituminous coal and changes in production plans at Narrabri Coal Mine where POSCO INTERNATIONAL AUSTRALIA HOLDINGS PTY. LTD, a subsidiary of the Company, participates as a non-operating party. The Company recognized an impairment loss of ₩ |
(*4) | Represents assets transferred from construction-in-progress with investment property resulting from changing purpose of use, adjustments of foreign currency translation differences and others. |
(c) |
Borrowing costs capitalized and the capitalized interest rate for the years ended December 31, 2019, 2020 and 2021 were as follows: |
(in millions of Won) |
2019 |
2020 |
2021 |
|||||||||
Weighted average expenditure |
₩ |
|||||||||||
Borrowing costs capitalized |
||||||||||||
Capitalization rate (%) |
(d) | Property, plant and equipment and investment property pledged as collateral as of December 31, 2020 and 2021 are as follows: |
(in millions of Won) |
Book value |
|||||||||
Collateral right holder |
2020 |
2021 |
||||||||
Land |
Korean Development Bank and others |
₩ |
||||||||
Buildings and structures |
Korean Development Bank and others |
|||||||||
Machinery and equipment |
Korean Development Bank and others |
|||||||||
|
|
|
|
|||||||
₩ |
||||||||||
|
|
|
|
(e) | Changes in the carrying amount of right of use assets presented as investment property and property, plant and equipment for the years ended December 31, 2020 and 2021 were as follows: |
1) | For the year ended December 31, 2020 |
(in millions of Won) |
Beginning |
Acquisitions |
Depreciation |
Others |
Ending |
|||||||||||||||
Land |
₩ |
( |
) | |||||||||||||||||
Buildings and structures |
( |
) | ||||||||||||||||||
Machinery and equipment |
( |
) | ( |
) | ||||||||||||||||
Vehicles |
( |
) | ||||||||||||||||||
Ships |
( |
) | — | |||||||||||||||||
others |
( |
) | ( |
) | ||||||||||||||||
|
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|
|||||||||||
₩ |
( |
) | |
|||||||||||||||||
|
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|
|
|
|
|
|
2) | For the year ended December 31, 2021 |
(in millions of Won) |
Beginning |
Acquisitions |
Depreciation |
Others |
Ending |
|||||||||||||||
Land |
₩ |
( |
) | |||||||||||||||||
Buildings and structures |
( |
) | ||||||||||||||||||
Machinery and equipment |
( |
) | |
|||||||||||||||||
Vehicles |
( |
) | ( |
) | ||||||||||||||||
Ships |
( |
) | ||||||||||||||||||
others |
( |
) | ( |
) | ||||||||||||||||
|
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|||||||||||
₩ |
( |
) | ||||||||||||||||||
|
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(f) |
The amount recognized in profit or loss related to leases for the years ended December 31, 2019, 2020 and 2021 were as follows: |
(in millions of Won) |
2019 |
2020 |
2021 |
|||||||||
Interest on lease liabilities |
₩ |
|||||||||||
Expenses related to short-term leases |
||||||||||||
Expenses related to leases of low-value assets |
||||||||||||
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|
|
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|||||||
₩ |
||||||||||||
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|
2020 |
2021 |
|||||||||||||||||||||||||||||||
(in millions of Won) |
Acquisition cost |
Accumulated amortization and impairment loss |
Government grants |
Book value |
Acquisition cost |
Accumulated amortization and impairment loss |
Government grants |
Book value |
||||||||||||||||||||||||
Goodwill |
₩ |
( |
) | — | ( |
) | — | |||||||||||||||||||||||||
Intellectual property rights |
( |
) | — | ( |
) | — | ||||||||||||||||||||||||||
Membership |
( |
) | — | ( |
) | — | ||||||||||||||||||||||||||
Development expense |
( |
) | — | ( |
) | — | ||||||||||||||||||||||||||
Port facilities usage rights |
( |
) | — | ( |
) | — | ||||||||||||||||||||||||||
Exploration and evaluation assets |
( |
) | — | ( |
) | — | ||||||||||||||||||||||||||
Customer relationships |
( |
) | — | ( |
) | — | ||||||||||||||||||||||||||
Other intangible assets |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||
|
|
|
|
|
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|||||||||||||||||
₩ |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||
|
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(b) | The changes in carrying amount of goodwill and other intangible assets for the years ended December 31, 2020 and 2021 were as follows: |
1) | For the year ended December 31, 2020 |
|
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|
|
|
|
(in millions of Won) |
Beginning |
Acquisitions |
Disposals |
Amortization |
Impairment loss |
Others(*2) |
Ending |
|||||||||||||||||||||
Goodwill |
₩ |
— | — | ( |
) | ( |
) | |||||||||||||||||||||
Intellectual property rights |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
Membership(*1) |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
Development expense |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
Port facilities usage rights |
— | — | ( |
) | ( |
) | ||||||||||||||||||||||
Exploratation and evaluation assets |
— | — | — | ( |
) | |||||||||||||||||||||||
Customer relationships |
— | — | ( |
) | — | ( |
) | |||||||||||||||||||||
Other intangible assets |
( |
) | ( |
) | — | ( |
) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
₩ |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
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|
|
|
(*1) | Economic useful life of membership is indefinite. |
(*2) | Represents assets transferred from construction-in-progress |
2) | For the year ended December 31, 2021 |
|
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|
|
|
(in millions of Won) |
Beginning |
Acquisitions |
Disposals |
Amortization |
Impairment loss(*2,4) |
Others(*3) |
Ending |
|||||||||||||||||||||
Goodwill |
₩ |
( |
) | |||||||||||||||||||||||||
Intellectual property rights |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
Membership(*1) |
( |
) | ( |
) | ||||||||||||||||||||||||
Development expense |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
Port facilities usage rights |
( |
) | ||||||||||||||||||||||||||
Exploratation and evaluation assets |
( |
) | ||||||||||||||||||||||||||
Customer relationships |
( |
) | ( |
) | ||||||||||||||||||||||||
Other intangible assets |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
₩ |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
Economic useful life of membership is indefinite. |
(*2) | During the year ended December 31, 2021, the Company decided to sell a portion of p emission rights and recognized urchased ₩ |
(*3) | Represents assets transferred from construction-in-progress |
(*4) | During the year ended December 31, 2021, evidence of impairment has occurred due to changes in the quality of bituminous coal and changes in production plans at Narrabri Coal Mine where POSCO INTERNATIONAL AUSTRALIA HOLDINGS PTY. LTD, a subsidiary of the Company, participates as a non-operating party. The Company recognized an impairment loss of ₩ |
(c) |
For the purpose of impairment testing, goodwill is allocated to individual operating entities each of which is determined to be a CGU. The goodwill amounts as of December 31, 2020 and 2021 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) Reportable segments |
Total number of CGUs |
|||||||||||||||||
2020 |
2021 |
CGUs |
2020 |
2021 |
||||||||||||||
Steel |
₩ |
|||||||||||||||||
Trading |
||||||||||||||||||
E&C |
||||||||||||||||||
Others |
||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
₩ |
||||||||||||||||||
|
|
|
|
|
|
|
|
(*1) | The recoverable amount of POSCO INTERNATIONAL Corporation, a subsidiary included in trading segment, is determined based on its value in use. As of December 31, 2021, the value in use is estimated by applying post-tax discount rate to the future cash flows estimated from management’s 5-year business plan and terminal growth rate of ₩ |
16. |
Other Assets |
(in millions of Won) |
2020 |
2021 |
||||||
Current |
||||||||
Advance payment s |
₩ |
|||||||
Prepaid expenses |
||||||||
Firm commitment asset |
||||||||
Others |
||||||||
₩ |
||||||||
Non-current |
||||||||
Long-term advance payment s |
₩ |
|||||||
Long-term prepaid expenses |
||||||||
Others(*1) |
||||||||
₩ |
||||||||
(*1) | As of December 31, 202 0 and 2021 , the Company recognized tax assets amounting to ₩ ₩ |
17. |
Borrowings |
(a) | Short-term borrowings and current portion of long-term borrowings as of December 31, 2020 and 2021 are as follows: |
(in millions of Won) |
Bank |
Issuance date |
Maturity date |
Interest rate (%) |
2020 |
2021 |
||||||||||||
Short-term borrowings |
||||||||||||||||||
Bank overdrafts |
JP Morgan and others | ₩ |
||||||||||||||||
Short-term borrowings |
HSBC and others | |||||||||||||||||
Current portion of long-term liabilities |
||||||||||||||||||
Current portion of long-term borrowings |
Export-Import Bank of Korea and others |
|||||||||||||||||
Current portion of debentures |
Merrill lynch and others | |||||||||||||||||
Less: Current portion of discount on debentures issued |
( |
) | ( |
) | ||||||||||||||
|
||||||||||||||||||
₩ |
|
|||||||||||||||||
(b) | Long-term borrowings, excluding current portion as of December 31, 2020 and 2021 are as follows: |
(in millions of Won) |
Bank |
Issuance date |
Maturity date |
Interest rate (%) |
2020 |
2021 |
||||||||||||
Long-term borrowings |
Export-Import Bank of Korea and others |
₩ |
||||||||||||||||
Less: Present value discount |
( |
) | ( |
) | ||||||||||||||
Bonds |
KB Securities co.,Ltd. and others | |||||||||||||||||
Less: Discount on debentures issued |
( |
) | ( |
) | ||||||||||||||
Exchangeable bonds(*1) |
Foreign currency exchangeable bonds |
— | ||||||||||||||||
₩ |
||||||||||||||||||
(*1) | The issuance conditions of the exchangeable bonds issued by the Company are as follows : |
Foreign currency exchangable bonds | ||
Type of bond |
Exchangable bonds | |
Aggregate principal amount |
EUR | |
Interest rate |
- Coupon rate: - | |
- Yield to Maturity: ( | ||
Maturity date |
September 1, 2026 | |
Redemption |
1) Redemption at Maturity : Outstanding bond principal, which is not repaid early or which call option is not exercised on, is repaid at maturity as a lump sum 2) Prepayment : The issuer has call option and the bondholders have put option | |
Exchange rate |
||
Exchange price (Won/share) |
||
Underlying shares exchange |
Registered common shares(treasury shares) | |
Exchange period |
||
Adjustments for exchange price |
Adjusting the exchange price according to the terms and conditions of the bond in the events of reason for adjusting the exchange price such as, bonus issue, share split, share consolidation, change of share type, issuannce of options or warranties to shareholders, share dividend, cash dividend, issuance of new shares under the market price. | |
Put option by bondholders |
- - In the event of a change of control of the Company - Where the shares issued by the Company are delisted (or suspended for more than |
Foreign currency exchangable bonds | ||
Call option by the Issuer |
- Share price(based on closing price) is higher than September 1, 2024 ) from the closing day to 30 business days before the maturity of bonds.- When the outstanding balance of outstanding bonds is less than - Where additional reasons for tax burden arise due to the amendment of relevant laws and regulations, etc. |
(*) | The exchange price has changed due to cash dividends during the year ended December 31, 2021. |
(c) | Assets pledged as collateral with regard to the borrowings as of December 31, 2021 are as follows: |
(in millions of Won) |
Bank |
Book value |
Pledged amount |
|||||||
Property, plant and equipment and Investment property |
Korea Development Bank and others |
|||||||||
Trade accounts and notes receivable |
Korea Development Bank and others |
|||||||||
Financial instruments |
KB Kookmin Bank and others | |||||||||
|
|
|
|
|||||||
₩ |
||||||||||
|
|
|
|
18. |
Other Payables |
(in millions of Won) |
2020 |
2021 |
||||||
Current |
||||||||
Accounts payable |
₩ |
|||||||
Accrued expenses |
||||||||
Dividend payable |
||||||||
Lease liabilities |
||||||||
Withholdings |
||||||||
|
|
|
|
|||||
₩ |
||||||||
|
|
|
|
|||||
Non-current |
||||||||
Accounts payable |
₩ |
|||||||
Accrued expenses |
||||||||
Lease liabilities |
||||||||
Long-term withholdings |
||||||||
|
|
|
|
|||||
₩ |
||||||||
|
|
|
|
19. |
Other Financial Liabilities |
(in millions of Won) |
2020 |
2021 |
||||||
Current |
||||||||
Derivatives liabilities |
₩ |
|||||||
Financial guarantee liabilities |
|
|||||||
|
|
|
|
|||||
₩ |
|
|||||||
|
|
|
|
|||||
Non-current |
||||||||
Derivatives liabilities |
₩ |
|||||||
Financial guarantee liabilities |
||||||||
|
|
|
|
|||||
₩ |
||||||||
|
|
|
|
20. |
Provisions |
(a) | Provisions as of December 31, 2020 and 2021 are as follows: |
(in millions of Won) |
2020 |
2021 |
||||||||||||||
Current |
Non-current |
Current |
Non-current |
|||||||||||||
Provision for bonus payments |
₩ |
|||||||||||||||
Provision for construction warranties |
||||||||||||||||
Provision for legal contingencies and claims(*1) |
||||||||||||||||
Provision for the restoration(*2,3) |
||||||||||||||||
Others(*4,5) |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
₩ |
||||||||||||||||
|
|
|
|
|
|
|
|
(*1) | The Company recognized probable outflow of resources amounting to ₩ ₩ in as of December 31, 202relation to lawsui ts against the C ompany0 and 2021 , respectively. |
(*2) | Due to contamination of lands near the Company’s magnesium smelting plant located in Gangneung province and others, the Company recognized present values of estimated costs for recovery amounting to ₩ |
(*3) | Due to contamination of river water quality near Greenhills mine owned by POSCO Canada Ltd., the Company recognized present value of estimated costs for recovery amounting to ₩ |
(*4) | As of December 31, 202 0 and 2021 , POSCO ENERGY CO., LTD., and Korea Fuel Cell, recognized ₩ ₩ |
(*5) | As of December 31, 202 0 and 2021 , the Company has recognized emission liabilities amounting to ₩ ₩ |
(b) | The following are the key assumptions concerning the future and other key sources of estimation uncertainties at the end of the reporting period. |
Key assumptions for the estimation | ||
Provision for bonus payments |
Estimations based on financial performance and working service rendered | |
Provision for construction warranties |
Estimations based on historical warranty data | |
Provision for legal contingencies and claims |
Estimations based on the degree of probability of an unfavorable outcome and the ability to make a sufficient reliable estimate of the amount of loss |
(c) | Changes in provisions for the years ended December 31, 2020 and 2021 were as follows: |
1) | For the year ended December 31, 2020 |
(in millions of Won) |
Beginning |
Increase |
Utilization |
Reversal |
Others(*1) |
Ending |
||||||||||||||||||
Provision for bonus payments |
₩ |
( |
) | ( |
) | |||||||||||||||||||
Provision for construction warranties |
( |
) | ( |
) | ( |
) | ||||||||||||||||||
Provision for legal contingencies and claims |
( |
) | ( |
) | ( |
) | ||||||||||||||||||
Provision for the restoration |
( |
) | ( |
) | ||||||||||||||||||||
Others |
( |
) | ( |
) | ( |
) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
₩ |
( |
( |
( |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
Includes adjustments of foreign currency translation differences and others. |
2) | For the year ended December 31, 2021 |
(in millions of Won) |
Beginning |
Increase |
Utilization |
Reversal |
Others(*1) |
Ending |
||||||||||||||||||
Provision for bonus payments |
₩ |
( |
) | ( |
) | ( |
) | |||||||||||||||||
Provision for construction warranties |
( |
) | ( |
) | ||||||||||||||||||||
Provision for legal contingencies and claims |
( |
) | ( |
) | ||||||||||||||||||||
Provision for the restoration |
( |
) | ( |
) | ||||||||||||||||||||
Others |
( |
) | ( |
) | ( |
) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
₩ |
( |
( |
( |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(*1) | Includes adjustments of foreign currency translation differences and others. |
21. |
Employee Benefits |
(a) | Defined contribution plans |
(in millions of Won) |
2019 |
2020 |
2021 |
|||||||||
Expense related to post-employment benefit plans under defined contribution plans |
₩ |
(b) | Defined benefit plans |
1) | The amounts recognized in relation to net defined benefit liabilities in the statements of financial position as of December 31, 2020 and 2021 are as follows: |
(in millions of Won) |
2020 |
2021 |
||||||
Present value of funded obligations |
₩ |
|||||||
Fair value of plan assets(*1) |
( |
) | ( |
) | ||||
Present value of non-funded obligations |
||||||||
|
|
|
|
|||||
Net defined benefit liabilities |
₩ |
( |
) | |||||
|
|
|
|
(*1) | As of December 31, 202 0 and 2021 , the Company recognized net defined benefit assets amounting to ₩ ₩ |
|
2) | Changes in present value of defined benefit obligations for the years ended December 31, 2020 and 2021 were as follows: |
(in millions of Won) |
2020 |
2021 |
||||||
Defined benefit obligations at the beginning of year |
₩ |
|||||||
Current service costs |
||||||||
Interest costs |
||||||||
Remeasurements : |
( |
) | ( |
) | ||||
- Loss (gain) from change in financial assumptions |
( |
) | ( |
) | ||||
- Loss (gain) from change in demographic assumptions |
||||||||
- Loss (gain) from change in others |
( |
) | ||||||
Benefits paid |
( |
) | ( |
) | ||||
Others |
( |
) | ||||||
|
|
|
|
|||||
Defined benefit obligations at the end of year |
₩ |
|||||||
|
|
|
|
3) | Changes in fair value of plan assets for the years ended December 31, 2020 and 2021 were as follows: |
(in millions of Won) |
2020 |
2021 |
||||||
Fair value of plan assets at the beginning of year |
₩ |
|||||||
Interest on plan assets |
||||||||
Remeasurement of plan assets |
( |
) | ( |
) | ||||
Contributions to plan assets |
||||||||
Benefits paid |
( |
) | ( |
) | ||||
Others |
( |
) | ||||||
|
|
|
|
|||||
Fair value of plan assets at the end of year |
₩ |
|||||||
|
|
|
|
4) | The fair value of plan assets as of December 31, 2020 and 2021 are as follows: |
(in millions of Won) |
2020 |
2021 |
||||||
Equity instruments |
₩ |
|||||||
Debt instruments |
||||||||
Deposits |
||||||||
Others |
||||||||
|
|
|
|
|||||
₩ |
||||||||
|
|
|
|
5) | The amounts recognized in consolidated statement of comprehensive income for the years ended December 31, 2019, 2020 and 2021 were as follows: |
(in millions of Won) |
2019 |
2020 |
2021 |
|||||||||
Current service costs |
₩ |
|||||||||||
Net interest costs(*1) |
|
|
|
|||||||||
|
|
|
|
|
|
|||||||
₩ |
||||||||||||
|
|
|
|
|
|
(*1) |
The actual return on plan assets amounted to ₩ ₩ ₩ |
(in millions of Won) |
2019 |
2020 |
2021 |
|||||||||
Cost of sales |
₩ |
|||||||||||
Selling and administrative expenses |
|
|
|
|||||||||
Others |
||||||||||||
|
|
|
|
|
|
|||||||
₩ |
||||||||||||
|
|
|
|
|
|
6) | Accumulated actuarial gains (losses), net of tax recognized in other comprehensive income for the years ended December 31, 2019, 2020 and 2021 were as follows: |
(in millions of Won) |
2019 |
2020 |
2021 |
|||||||||
Beginning |
₩ |
( |
) | ( |
) | ( |
) | |||||
Current actuarial gains (losses) |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
Ending |
₩ |
( |
) | ( |
) | ( |
) | |||||
|
|
|
|
|
|
7) | The principal actuarial assumptions as of December 31, 2020 and 2021 are as follows: |
(%) |
2020 |
2021 | ||
Discount rate |
||||
Expected future increase in salaries(*1) |
(*1) | The expected future increase in salaries is based on the average salary increase rate for the past 5 years. |
8) | Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding the other assumptions constant, would have affected the defined benefit obligation by the amounts shown below: |
(in millions of Won) |
1% Increase |
1% Decrease |
||||||||||||||
Amount |
Percentage(%) |
Amount |
Percentage(%) |
|||||||||||||
Discount rate |
₩ |
( |
) | ( |
) | |||||||||||
Expected future increase in salaries |
( |
) | ( |
) |
9) | As of December 31, 2020, the maturity of the expected benefit payments are as follows: |
(in millions of Won) |
Within 1 year |
1 year - 5 years |
5 years - 10 years |
10 years - 20 years |
After 20 years |
Total |
||||||||||||||||||
Benefits to be paid |
₩ |
(in millions of Won) |
2020 |
2021 |
||||||
Current |
||||||||
Due to customers for contract work |
₩ |
|||||||
Advances received |
||||||||
Unearned revenue |
||||||||
Withholdings |
||||||||
Firm commitment liability |
||||||||
Others |
||||||||
|
|
|
|
|||||
₩ |
||||||||
|
|
|
|
|||||
Non-current |
||||||||
Advances received |
₩ |
|||||||
Unearned revenue |
||||||||
Others |
||||||||
|
|
|
|
|||||
₩ |
||||||||
|
|
|
|
23. |
Financial Instruments |
(a) | Classification and fair value of financial instruments |
1) | The carrying amount and the fair values of financial assets and financial liabilities by fair value hierarchy as of December 31, 2020 and 2021 are as follows: |
(in milions of Won) |
Fair value |
|||||||||||||||||||
Book value |
Level 1 |
Level 2 |
Level 3 |
Total |
||||||||||||||||
Financial assets |
||||||||||||||||||||
Fair value through profit or loss |
||||||||||||||||||||
Derivative assets |
₩ |
— | — | |||||||||||||||||
Short-term financial instruments |
— | — | ||||||||||||||||||
Debt securities |
— | — | ||||||||||||||||||
Other securities |
||||||||||||||||||||
Other receivables |
— | — | ||||||||||||||||||
Derivative hedging instruments(*2) |
— | — | ||||||||||||||||||
Fair value through other comprehensive income |
||||||||||||||||||||
Equity securities |
||||||||||||||||||||
Debt securities |
— | — | ||||||||||||||||||
Financial assets measured at amortized cost(*1) |
||||||||||||||||||||
Cash and cash Equivalents |
— | — | — | — | ||||||||||||||||
Trade accounts and notes receivable |
— | — | — | — | ||||||||||||||||
Other receivables |
— | — | — | — | ||||||||||||||||
Debt securities |
— | — | — | — | ||||||||||||||||
Deposit instruments |
— | — | — | — | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
₩ |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Financial liabilities |
||||||||||||||||||||
Fair value through profit or loss |
||||||||||||||||||||
Derivative liabilities |
₩ |
— | — | |||||||||||||||||
Derivative hedging instruments(*2) |
— | — | ||||||||||||||||||
Financial liabilities measured at amortized cost(*1) |
||||||||||||||||||||
Trade accounts and notes payable |
— | — | — | — | ||||||||||||||||
Borrowings |
— | — | ||||||||||||||||||
Financial guarantee liabilities |
— | — | — | — | ||||||||||||||||
Others |
— | — | — | — | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
₩ |
— | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(*1) | Fair value of financial assets and liabilities measured at amortized cost except borrowings approximates their carrying amounts. |
(*2) |
The Company applies hedge accounting which use forward contracts as hedging instrument in order to hedge the risk of changes in fair value of product prices regarding firm commitments or purchase commitments. Also the Company applies cash flow hedge accounting which uses currency swap as hedging instrument in order to hedge the risk of interest rate and foreign exchange rate changes in foreign currency which influences cash flow from borrowings. |
(in millions of Won) |
Fair value |
|||||||||||||||||||
Book value |
Level 1 |
Level 2 |
Level 3 |
Total |
||||||||||||||||
Financial assets |
||||||||||||||||||||
Fair value through profit or loss |
||||||||||||||||||||
Derivative assets |
₩ |
— | — | |||||||||||||||||
Short-term financial instruments |
— | — | ||||||||||||||||||
Debt securities |
— | — | ||||||||||||||||||
Other securities |
||||||||||||||||||||
Other receivables |
— | — | ||||||||||||||||||
Derivative hedging instruments(*2) |
— | — | ||||||||||||||||||
Fair value through other comprehensive income |
||||||||||||||||||||
Equity securities |
— | |||||||||||||||||||
Financial assets measured at amortized cost(*1) |
||||||||||||||||||||
Cash and cash Equivalents |
— | — | — | — | ||||||||||||||||
Trade accounts and notes receivable |
— | — | — | — | ||||||||||||||||
Other receivables |
— | — | — | — | ||||||||||||||||
Debt securities |
— | — | — | — | ||||||||||||||||
Deposit instruments |
— | — | — | — | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
₩ |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Financial liabilities |
||||||||||||||||||||
Fair value through profit or loss |
||||||||||||||||||||
Derivative liabilities |
₩ |
— | — | |||||||||||||||||
Borrowings |
— | — | ||||||||||||||||||
Derivative hedging instruments(*2) |
— | — | ||||||||||||||||||
Financial liabilities measured at amortized cost(*1) |
||||||||||||||||||||
Trade accounts and notes payable |
— | — | — | — | ||||||||||||||||
Borrowings |
— | — | ||||||||||||||||||
Financial guarantee liabilities |
— | — | — | — | ||||||||||||||||
Others |
— | — | — | — | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
₩ |
— | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(*1) | Fair value of financial assets and liabilities measured at amortized cost except borrowings approximates their carrying amounts. |
(*2) |
The Company applies hedge accounting which uses forward contracts as hedging instrument in order to hedge the risk of changes in fair value of product prices regarding firm commitments or purchase commitments. Also, the Company applies cash flow hedge accounting which uses currency swap as hedging instrument in order to hedge the risk of interest rate and foreign exchange rate changes in foreign currency which influences cash flow from borrowings. |
2) | Financial assets and financial liabilities classified as fair value hierarchy Level 2 |
3) | Financial assets and financial liabilities classified as fair value hierarchy Level 3 |
① |
Value measurement method and significant but not observable inputs for the financial assets classified as fair value hierarchy Level 3 as of December 31, 2021 are as follows: |
(in millions of Won) |
Fair value |
Valuation technique |
Inputs |
Range of inputs |
Effect on fair value assessment with unobservable input | |||||||
Financial assets at fair value |
₩ |
Discounted cash flows | Growth rate | As growth rate increases, fair value increases | ||||||||
Discount rate | As discount rate increases, fair value decreases | |||||||||||
Proxy firm valuation method | Price multiples | As price multiples increases, fair value increases | ||||||||||
Asset value approach | — | — | — |
② |
Sensitivity analysis of financial assets and financial liabilities classified as Level 3 of fair value hierarchy |
(in millions of Won) |
Input variable |
Favorable changes |
Unfavorable changes |
|||||||
Financial assets at fair value |
Fluctuation 0.5% of growth rate | ₩ |
||||||||
Fluctuation 0.5% of discount rate |
③ |
Changes in fair value of financial assets and financial liabilities classified as Level 3 for the years ended December 31, 2020 and 2021 were as follows: |
(in millions of Won) |
2020 |
2021 |
||||||
Beginning |
₩ |
|||||||
Acquisition |
||||||||
Gain (Loss) on valuation of financial assets |
( |
) | ||||||
Other comprehensive income (loss) |
( |
) | ||||||
Disposal and others |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Ending |
₩ |
|||||||
|
|
|
|
4) | Finance income and costs by category of financial instrument for the years ended December 31, 2019, 2020 and 2021 were as follows: |
① |
For the year ended December 31, 2019 |
Finance income and costs |
Other comprehensive income (loss) |
|||||||||||||||||||||||||||
(in millions of Won) |
Interest income (expense) |
Gain and loss on valuation |
Gain and loss on foreign currency |
Gain and loss on disposal |
Others |
Total |
||||||||||||||||||||||
Financial assets at fair value through profit or loss |
₩ |
( |
) | — | — | |||||||||||||||||||||||
Derivative assets |
— | |
— | — | — | |||||||||||||||||||||||
Financial assets at fair value through other comprehensive income |
— | — | — | — | ( |
) | ||||||||||||||||||||||
Financial assets measured at amortized cost |
— | ( |
) | ( |
) | — | ||||||||||||||||||||||
Derivative liabilities |
— | ( |
) | — | ( |
) | — | ( |
) | ( |
) | |||||||||||||||||
Financial liabilities measured at amortized cost |
( |
) | — | ( |
) | ( |
) | ( |
) | ( |
) | — | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
₩ |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
② |
For the year ended December 31, 2020 |
Finance income and costs |
Other comprehensive income (loss) |
|||||||||||||||||||||||||||
(in millions of Won) |
Interest income (expense) |
Gain and loss on valuation |
Gain and loss on foreign currency |
Gain and loss on disposal |
Others |
Total |
||||||||||||||||||||||
Financial assets at fair value through profit or loss |
₩ |
( |
) | — | — | |||||||||||||||||||||||
Derivative assets |
— | — | |
— | — | |||||||||||||||||||||||
Financial assets at fair value through other comprehensive income |
— | — | — | — | |
( |
) | |||||||||||||||||||||
Financial assets measured at amortized cost |
— | ( |
) | ( |
) | ( |
) | ( |
) | — | ||||||||||||||||||
Derivative liabilities |
— | ( |
) | — | ( |
) | — | ( |
) | ( |
) | |||||||||||||||||
Financial liabilities measured at amortized cost |
( |
) | — | — | ( |
) | ( |
) | — | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
₩ |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
③ |
For the year ended December 31, 2021 |
Finance income and costs |
Other comprehensive income (loss) |
|||||||||||||||||||||||||||
(in millions of Won) |
Interest income (expense) |
Gain and loss on valuation |
Gain and loss on foreign currency |
Gain and loss on disposal |
Others |
Total |
||||||||||||||||||||||
Financial assets at fair value through profit or loss |
₩ |
( |
) | — | — | |||||||||||||||||||||||
Derivative assets |
— | — | — | — | ||||||||||||||||||||||||
Financial assets at fair value through other comprehensive income |
— | — | — | — | |
|||||||||||||||||||||||
Financial assets measured at amortized cost |
— | ( |
) | ( |
) | — | ||||||||||||||||||||||
Financial liabilities at fair value |
— | — | ( |
) | — | |||||||||||||||||||||||
Derivative liabilities |
— | — | ( |
) | — | ( |
) | |||||||||||||||||||||
Financial liabilities measured at amortized cost |
( |
) | — | ( |
) | ( |
) | ( |
) | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
₩ |
( |
) | |
( |
) | ( |
) | ( |
) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b) | Credit risk |
1) | Credit risk exposure |
(in millions of Won) |
2020 |
2021 |
||||||
Cash and cash equivalents |
₩ |
|||||||
Derivative assets |
||||||||
Short-term financial Instrument |
||||||||
Debt securities |
||||||||
Other securities |
||||||||
Other receivables |
||||||||
Trade accounts and notes receivable |
||||||||
Deposit Instruments |
||||||||
|
|
|
|
|||||
₩ |
||||||||
|
|
|
|
2) | Impairment losses on financial assets |
① |
Allowance for doubtful accounts as of December 31, 2020 and 2021 are as follows: |
(in millions of Won) |
2020 |
2021 |
||||||
Trade accounts and notes receivable |
₩ |
|||||||
Other accounts receivable |
||||||||
Loans |
||||||||
Other assets |
||||||||
|
|
|
|
|||||
₩ |
||||||||
|
|
|
|
② |
Impairment losses on financial assets for the years ended December 31, 2020 and 2021 were as follows: |
(in millions of Won) |
2020 |
2021 |
||||||
Bad debt expenses |
₩ |
|||||||
Other bad debt expenses(*1) |
|
|
||||||
Less: Recovery of allowance for other bad debt accounts |
( |
) | ( |
) | ||||
|
|
|
|
|||||
₩ |
||||||||
|
|
|
|
(*1) | Other bad debt expenses are mainly related to loans and other accounts receivable. |
③ |
The aging and allowance for doubtful accounts of trade accounts and notes receivable as of December 31, 2020 and 2021 are as follows: |
2020 |
2021 |
|||||||||||||||
(in millions of Won) |
Trade accounts and notes receivable |
Impairment |
Trade accounts and notes receivable |
Impairment |
||||||||||||
Current (not past due) |
₩ |
|||||||||||||||
Over due less than 1 month |
||||||||||||||||
1 month - 3 months |
||||||||||||||||
3 months - 12 months |
||||||||||||||||
Over 12 months |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
₩ |
||||||||||||||||
|
|
|
|
|
|
|
|
④ |
The aging and allowance for doubtful accounts of other receivables as of December 31, 2020 and 2021 are as follows: |
2020 |
2021 |
|||||||||||||||
(in millions of Won) |
Loans and other account receivable |
Impairment |
Loans and other account receivable |
Impairment |
||||||||||||
Current (not past due) |
₩ |
|||||||||||||||
Over due less than 1 month |
||||||||||||||||
1 month - 3 months |
||||||||||||||||
3 months - 12 months |
||||||||||||||||
Over 12 months |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
₩ |
||||||||||||||||
|
|
|
|
|
|
|
|
⑤ |
Changes in the allowance for doubtful accounts for the years ended December 31, 2019, 2020 and 2021 were as follows: |
(in millions of Won) |
2019 |
2020 |
2021 |
|||||||||
Beginning |
₩ |
|||||||||||
Bad debt expenses(reversal) |
( |
) | ||||||||||
Other bad debt expenses |
( |
) | ||||||||||
Others(*1) |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Endin g |
₩ |
|||||||||||
|
|
|
|
|
|
(*1) |
Others for the year ended December 31, 2019, 2020 and 2021, included decreases mainly due to write-off amounting to ₩ ₩ ₩ |
(c) | Liquidity risk |
1) | Contractual maturities of non-derivative financial liabilities are as follows: |
(in millions of Won) |
Book value |
Contractual cash flow |
Within 1 year |
1 year - 5 years |
After 5 years |
|||||||||||||||
Trade accounts and notes payable |
₩ |
— | ||||||||||||||||||
Borrowings |
||||||||||||||||||||
Financial guarantee liabilities(*1) |
— | — | ||||||||||||||||||
Lease liabilities |
||||||||||||||||||||
Other financial liabilities |
— | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
₩ |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(*1) | For issued financial guarantee contracts, the maximum amount of the guarantee is allocated to the earliest period in which the guarantee could be called. |
2) | Contractual maturities of derivative financial liabilities are as follows: |
(in millions of Won) |
Within 1 year |
1 year - 5 years |
After 5 years |
Total |
||||||||||||
Currency forward |
₩ |
|||||||||||||||
Currency swap |
||||||||||||||||
Interest rate swap |
||||||||||||||||
Others |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
₩ |
||||||||||||||||
|
|
|
|
|
|
|
|
(d) | Currency risk |
1) | The Company has exposure to the risk that the fair value or future cash flows of a financial instrument will fluctuate because of the changes in foreign exchange rates. The exposure to currency risk as of December 31, 2020 and 2021 is as follows: |
(in millions of Won) |
2020 |
2021 |
||||||||||||||
Assets |
Liabilities |
Assets |
Liabilities |
|||||||||||||
USD |
₩ |
|
||||||||||||||
EUR |
||||||||||||||||
JPY |
||||||||||||||||
Others |
2) | As of December 31, 2020 and 2021, provided that functional currency against foreign currencies other than functional currency hypothetically strengthens or weakens by |
(in millions of Won) |
2020 |
2021 |
||||||||||||||
10% increase |
10% decrease |
10% increase |
10% decrease |
|||||||||||||
USD |
₩ |
( |
( |
) | ||||||||||||
EUR |
( |
) | ( |
) | ||||||||||||
JPY |
( |
) | ( |
) |
(e) | Interest rate risk |
1) | The carrying amount of interest-bearing financial instruments as of December 31, 2020 and 2021 are as follows: |
(in millions of Won) |
2020 |
2021 |
||||||
Fixed rate |
||||||||
Financial assets |
₩ |
|||||||
Financial liabilities |
( |
) | ( |
) | ||||
|
|
|
|
|||||
|
|
|
|
|||||
Variable rate |
||||||||
Financial liabilities |
₩ |
( |
) | ( |
) |
2) | Sensitivity analysis on the cash flows of financial instruments with variable interest rate |
(in millions of Won) |
2020 |
2021 |
||||||||||||||
1% increase |
1% decrease |
1% increase |
1% decrease |
|||||||||||||
Variable rate financial instruments |
₩ |
( |
( |
) |
24. |
Share Capital and Capital Surplus |
(a) | Share capital as of December 31, 2020 and 2021 are as follows: |
(Share, in Won) |
2020 |
2021 |
||||||
Authorized shares |
||||||||
Par value |
₩ |
|||||||
Issued shares(*1) |
||||||||
Shared capital(*2) |
₩ |
|
(*1) | As of December 31, 2021, total number of ADRs of |
(*2) | As of December 31, 2021, the difference between the ending balance of common stock and the aggregate par value of issued common stock is ₩ |
(b) | The changes in issued common stock for the years ended December 31, 2020 and 2021 were as follows: |
(share) |
2020 |
2021 |
||||||||||||||||||||||
Issued shares |
Treasury shares |
Number of outstanding shares |
Issued shares |
Treasury shares |
Number of outstanding shares |
|||||||||||||||||||
Beginning |
( |
) | ( |
) | ||||||||||||||||||||
Acquisition of treasury shares |
— | ( |
) | ( |
) | — | ( |
) | ( |
) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Ending |
( |
) | ( |
) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(c) | Capital surplus as of December 31, 2020 and 2021 are as follows: |
(in millions of Won) |
2020 |
2021 |
||||||
Share premium |
₩ |
|||||||
Gain on disposal of treasury shares |
||||||||
Other capital surplus |
||||||||
|
|
|
|
|||||
₩ |
||||||||
|
|
|
|
25. |
Hybrid Bonds |
(a) | Hybrid bonds classified as equity as of December 31, 2020 and 2021 are as follows: |
(in millions of Won) |
Date of issue |
Date of maturity |
Interest rate (%) |
2020 |
2021 |
|||||||||||||||
Hybrid bond 1-2(*1) |
₩ |
|||||||||||||||||||
Issuance cost |
( |
) | ( |
) | ||||||||||||||||
|
|
|
|
|||||||||||||||||
₩ |
|
|||||||||||||||||||
|
|
|
|
(*1) | Details of issuance of hybrid bonds as of December 31, 2021 are as follows: |
Hybrid bond 1-2 | ||
Maturity date |
||
Interest rate |
Issue date ~ 2023-06-12 Reset every 10 years as follows; · After 10 years : return on government bond of the Republic (10 years) + of K orea · After 10 years : additionally + Step-up clauses· After 30 years : additionally + | |
Interest payments condition |
||
Others |
(b) | POSCO ENERGY CO., LTD., a subsidiary of the Company, issued hybrid bonds, which are classified as non-controlling interests in the consolidated financial statements. Hybrid bonds as of December 31, 2020 and 2021 are as follows: |
(in millions of Won) |
Date of issue |
Date of maturity |
Interest rate (%) |
2020 |
2021 |
|||||||||||||||
Hybrid bond 1-4(*1) |
₩ |
|||||||||||||||||||
Issuance cost |
( |
) | ( |
) | ||||||||||||||||
|
|
|
|
|||||||||||||||||
₩ |
||||||||||||||||||||
|
|
|
|
(*1) | Details of hybrid bonds of POSCO ENERGY CO., LTD .as of December 31, 2021 are as follows: |
Hybrid bond 1-4 | ||
Maturity date | ||
Interest rate | Issue date ~ 2023-08-29 : Reset every 10 years as follows; · After 10 years : return on government bond (10 years) + · After 10 years : additionally + Step-up clauses· After 30 years : additionally + | |
Interest payments condition | ||
Others |
26. |
Reserves |
(a) |
Reserves as of December 31, 2020 and 2021 are as follows: |
(in millions of Won) |
2020 |
2021 |
||||||
Accumulated comprehensive loss of investments in associates and joint ventures |
₩ |
( |
) | ( |
) | |||
Changes in fair value of equity investments at fair value through other comprehensive income |
( |
) | ( |
) | ||||
Foreign currency translation differences |
( |
) | ||||||
Gain or losses on valuation of derivatives |
( |
) | ( |
) | ||||
Others |
||||||||
|
|
|
|
|||||
₩ |
( |
) | ( |
) | ||||
|
|
|
|
(b) | Changes in fair value of equity investments at fair value through other comprehensive income for the years ended December 31, 2020 and 2021 were as follows: |
(in millions of Won) |
2020 |
2021 |
||||||
Beginning balance |
₩ |
( |
) | ( |
) | |||
Changes in unrealized fair value of equity investments |
( |
) | ||||||
Reclassification upon disposal |
||||||||
Others |
( |
) | ||||||
|
|
|
|
|||||
Ending balance |
₩ |
( |
) | ( |
) | |||
|
|
|
|
27. |
Treasury Shares |
(shares, in millions of Won) |
2020 |
2021 |
||||||||||||||
Number of shares |
Amount |
Number of shares |
Amount |
|||||||||||||
Beginning |
₩ |
₩ |
||||||||||||||
Acquisition of treasury shares |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Ending |
₩ |
₩ |
||||||||||||||
|
|
|
|
|
|
|
|
28. |
Revenue |
(a) | Disaggregation of revenue |
1) | Details of revenue disaggregated by types of revenue and timing of revenue recognition for the years ended December 31, 2019, 2020 and 2021 were as follows: |
① |
For the year ended December 31, 2019 |
(in millions of Won) |
Steel |
Trading |
Construction |
Others |
Total |
|||||||||||||||
Types of revenue |
||||||||||||||||||||
Revenue from sales of goods |
₩ |
— | ||||||||||||||||||
Revenue from services |
||||||||||||||||||||
Revenue from construction contract |
— | — | ||||||||||||||||||
Others |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
₩ |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Timing of revenue recognition |
||||||||||||||||||||
Revenue recognized at a point in time |
₩ |
|||||||||||||||||||
Revenue recognized over time |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
₩ |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
② |
For the year ended December 31, 2020 |
(in millions of Won) |
Steel |
Trading |
Construction |
Others |
Total |
|||||||||||||||
Types of revenue |
||||||||||||||||||||
Revenue from sales of goods |
₩ |
— | ||||||||||||||||||
Revenue from services |
||||||||||||||||||||
Revenue from construction contract |
— | — | ||||||||||||||||||
Others |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
₩ |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Timing of revenue recognition |
||||||||||||||||||||
Revenue recognized at a point in time |
₩ |
|||||||||||||||||||
Revenue recognized over time |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
₩ |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
③ |
For the year ended December 31, 2021 |
(in millions of Won) |
Steel |
Trading |
Construction |
Others |
Total |
|||||||||||||||
Types of revenue |
||||||||||||||||||||
Revenue from sales of goods |
₩ |
|||||||||||||||||||
Revenue from services |
||||||||||||||||||||
Revenue from construction contract |
||||||||||||||||||||
Others |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
₩ |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Timing of revenue recognition |
||||||||||||||||||||
Revenue recognized at a point in time |
₩ |
|||||||||||||||||||
Revenue recognized over time |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
₩ |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(b) |
Details of contract assets and liabilities from contracts with customers as of December 31, 2020 and 2021 are as follows: |
(in millions of Won) |
2020 |
2021 |
||||||
Receivables |
||||||||
Account receivables |
₩ |
|||||||
Contract assets |
||||||||
Due from customers for contract work |
||||||||
Contract liabilities |
||||||||
Advance received |
||||||||
Due to customers for contract work |
||||||||
Unearned revenue |
|
|
29. |
Revenue – Contract Balances |
(a) | Details of outstanding contracts as of December 31, 2020 and 2021 are as follows: |
(in millions of Won) |
2020 |
2021 |
||||||
Accumulated cost |
₩ |
|||||||
Accumulated contract profit |
||||||||
Accumulated contract loss |
( |
) | ( |
) | ||||
Accumulated contract revenue |
(b) | Details of due from customers for contract work and due to customers for contract work as of December 31, 2020 and 2021 are as follows: |
(in millions of Won) |
2020 |
2021 |
||||||
Unbilled due from customers for contract work |
₩ |
|
|
|||||
Due to customers for contract work |
( |
) | ( |
) | ||||
|
|
|
|
|||||
₩ |
|
|||||||
|
|
|
|
(c) |
Due to the factors causing the cost variation for the years ended December 31, 2020 and 2021, the estimated total contract costs have changed. Details of changes in estimated total contract costs and the impact on profit before income taxes for the years ended December 31, 2020, 2021 and future periods are as follows: |
(in millions of Won) |
2020 |
2021 |
||||||
Changes in total contract revenues |
₩ |
|
||||||
Changes in estimated total contract costs |
|
|||||||
Changes in profit before income taxes of construction contract : |
||||||||
- Current period |
|
|||||||
- Future periods |
(d) | Uncertainty of estimates |
1) | Total contract revenues |
2) | Total contract costs |
Method of significant assumption | ||
Material cost | ||
Labor cost | ||
Outsourcing cost |
(e) | As of December 31, 202 1 , revenue expected to be recognized in the future in relation to performance obligations that have not been fulfilled (or partially fulfilled) is as follows: |
(in millions of Won) |
2022 |
2023 |
2024 |
After 2025 |
Total |
|||||||||||||||
Expected Revenue |
₩ |
30. |
Selling and Administrative Expenses |
(a) | Other administrative expenses |
(in millions of Won) |
2019 |
2020 |
2021 |
|||||||||
Wages and salaries |
₩ |
|||||||||||
Expenses related to post-employment benefits |
||||||||||||
Other employee benefits |
||||||||||||
Travel |
||||||||||||
Depreciation |
||||||||||||
Amortization |
||||||||||||
Communication |
||||||||||||
Electricity |
||||||||||||
Taxes and public dues |
||||||||||||
Rental |
||||||||||||
Repairs |
||||||||||||
Entertainment |
||||||||||||
Advertising |
||||||||||||
Research & development |
||||||||||||
Service fees |
||||||||||||
Vehicles maintenance |
||||||||||||
Industry association fee |
||||||||||||
Conference |
||||||||||||
Increase to provisions |
||||||||||||
Others |
||||||||||||
|
|
|
|
|
|
|||||||
₩ |
|
|||||||||||
|
|
|
|
|
|
(b) | Selling expenses |
(in millions of Won) |
2019 |
2020 |
2021 |
|||||||||
Freight and custody |
₩ |
|||||||||||
Operating expenses for distribution center |
||||||||||||
Sales commissions |
||||||||||||
Sales advertising |
||||||||||||
Sales promotion |
||||||||||||
Sample |
||||||||||||
Sales insurance premium |
||||||||||||
Contract cost |
||||||||||||
Others |
||||||||||||
|
|
|
|
|
|
|||||||
₩ |
|
|
|
|||||||||
|
|
|
|
|
|
31. |
Research and Development Expenditures Recognized as Expenses |
(in millions of Won) |
2019 |
2020 |
2021 |
|||||||||
Administrative expenses |
₩ |
|||||||||||
Cost of sales |
|
|||||||||||
|
|
|
|
|
|
|||||||
₩ |
|
|
||||||||||
|
|
|
|
|
|
32. |
Other Operating Income and Expenses |
(in millions of Won) |
2019 |
2020 |
2021 |
|||||||||
Other operating income |
||||||||||||
Gain on disposals of assets held for sale |
₩ |
|||||||||||
Gain and joint ventures |
||||||||||||
Gain on disposals of property, plant and equipment |
||||||||||||
Gain on disposals of intangible assets |
||||||||||||
Gain on valuation of firm commitment |
||||||||||||
Gain on valuation of emission rights |
||||||||||||
Gain on disposals of emission rights |
||||||||||||
Reversal of other provisions |
||||||||||||
Premium income |
||||||||||||
Miscellaneous income(*1,2) |
|
|||||||||||
Others |
|
|||||||||||
|
|
|
|
|
|
|||||||
₩ |
||||||||||||
|
|
|
|
|
|
|||||||
Other operating expenses |
||||||||||||
Impairment loss on assets held for sale |
₩ |
( |
) | ( |
) | |||||||
Loss on disposals of investments in subsidiaries, associates and joint ventures |
( |
) | ( |
) | ( |
) | ||||||
Loss on disposals of property, plant and equipment |
( |
) | ( |
) | ( |
) | ||||||
Impairment loss on property, plant and equipment |
( |
) | ( |
) | ( |
) | ||||||
Impairment loss on investment property |
( |
) | ||||||||||
Impairment loss on intangible assets |
( |
) | ( |
) | ( |
) | ||||||
Loss on valuation of firm commitment |
( |
) | ( |
) | ( |
) | ||||||
Idle tangible asset expenses |
( |
) | ( |
) | ( |
) | ||||||
Increase to provisions |
( |
) | ( |
) | ( |
) | ||||||
Donations |
( |
) | ( |
) | ( |
) | ||||||
Miscellaneous losses |
( |
) | ( |
) | ( |
) | ||||||
Others |
( |
) |
( |
) |
( |
) | ||||||
|
|
|
|
|
|
|||||||
₩ |
( |
) |
( |
) |
( |
) | ||||||
|
|
|
|
|
|
(*1) | During the year ended December 31, 2021, the Company recognized ₩ other operating |
(*2) |
During the year ended December 31, 2019, the company recognized other operating income for the refunded amount of ₩ |
33. |
Finance Income and Costs |
(in millions of Won) |
2019 |
2020 |
2021 |
|||||||||
Finance income |
||||||||||||
Interest income(*1) |
₩ |
|||||||||||
Dividend income |
||||||||||||
Gain on foreign currency transactions |
||||||||||||
Gain on foreign currency translations |
||||||||||||
Gain on derivatives transactions |
||||||||||||
Gain on valuations of derivatives |
||||||||||||
Gain on disposals of financial assets at fair value through profit o r loss |
||||||||||||
Gain on valuations of financial assets at fair value through profit or loss |
||||||||||||
Gain on valuations of financial liabilities at fair value through profit or loss |
||||||||||||
Others |
||||||||||||
|
|
|
|
|
|
|||||||
₩ |
||||||||||||
|
|
|
|
|
|
|||||||
Finance costs |
||||||||||||
Interest expenses |
₩ |
( |
) |
( |
) |
( |
) | |||||
Loss on foreign currency transactions |
( |
) |
( |
) |
( |
) | ||||||
Loss on foreign currency translations |
( |
) |
( |
) |
( |
) | ||||||
Loss on derivatives transactions |
( |
) |
( |
) |
( |
) | ||||||
Loss on valuations of derivatives |
( |
) |
( |
) |
( |
) | ||||||
Loss on disposals of trade accounts and notes receivable |
( |
) |
( |
) |
( |
) | ||||||
Loss on disposals of financial assets at fair value through profit or loss |
( |
) |
( |
) |
( |
) | ||||||
Loss on valuations of financial assets at fair value through profit or loss |
( |
) |
( |
) |
( |
) | ||||||
Others |
( |
) |
( |
) |
( |
) | ||||||
|
|
|
|
|
|
|||||||
₩ |
( |
) |
( |
) |
( |
) | ||||||
|
|
|
|
|
|
(*1) |
Interest income calculated using the effective interest method for the years ended December 31, 2019, 2020 and 2021 were ₩ ₩ ₩ |
34. |
Expenses by Nature |
(in millions of Won) |
2019 |
2020 |
2021 |
|||||||||
Raw material used, changes in inventories and others |
₩ |
|||||||||||
Employee benefits(*2) |
||||||||||||
Outsourced processing cost |
||||||||||||
Electricity |
||||||||||||
Depreciation(*1) |
||||||||||||
Amortization |
||||||||||||
Freight and custody |
||||||||||||
Sales commissions |
||||||||||||
Loss on disposal of property, plant and equipment |
||||||||||||
Impairment loss on property, plant and equipment |
||||||||||||
Impairment loss on goodwill and intangible assets |
||||||||||||
Donations |
||||||||||||
Other |
||||||||||||
|
|
|
|
|
|
|||||||
₩ |
||||||||||||
|
|
|
|
|
|
(*1) | Includes depreciation of investment property. |
(*2) | The details of employee benefits expenses for the years ended December 31, 2019, 2020 and 2021 were as follows: |
(in millions of Won) |
2019 |
2020 |
2021 |
|||||||||
Wages and salaries |
₩ |
|
||||||||||
Expenses related to post-employment benefits |
|
|||||||||||
|
|
|
|
|
|
|||||||
₩ |
|
|||||||||||
|
|
|
|
|
|
35. |
Income Taxes |
(a) | Income tax expense for the years ended December 31, 2019, 2020 and 2021 was as follows: |
(in millions of Won) |
2019 |
2020 |
2021 |
|||||||||
Current income taxes(*1) |
₩ |
|||||||||||
Deferred income tax due to temporary differences |
( |
) | ( |
) | ||||||||
Items recorded directly in equity |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
Income tax expense |
₩ |
|
|
|||||||||
|
|
|
|
|
|
(*1) |
Refund (additional payment) of income taxes when filing a final corporation tax return is credited (charged) directly to current income taxes. |
(b) |
The income taxes credited (charged) directly to equity for the years ended December 31, 2019, 2020 and 2021 were as follows: |
(in millions of Won) |
2019 |
2020 |
2021 |
|||||||||
Net changes in fair value of equity investments at fair value through other comprehensive income |
₩ |
( |
) |
|
|
|
|
( |
) | |||
Others |
|
( |
) | ( |
) | |||||||
|
|
|
|
|
|
|||||||
₩ |
|
|
( |
) | ||||||||
|
|
|
|
|
|
(c) | The following table reconciles the calculated income tax expense based on POSCO’s statutory rate ( |
(in millions of Won) |
2019 |
2020 |
2021 |
|||||||||
Profit before income tax expense |
₩ |
|||||||||||
Income tax expense computed at statutory rate |
|
|||||||||||
Adjustments: |
||||||||||||
Tax credits |
( |
) | ( |
) | ( |
) | ||||||
Refund of taxes for prior years |
( |
) | ( |
) | ( |
) | ||||||
Tax effect from tax audit |
||||||||||||
Investment in subsidiaries, associates and joint ventures |
( |
) | ||||||||||
Tax effects due to permanent differences |
( |
) | ||||||||||
Others(*1) |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||
( |
) | ( |
) | |||||||||
|
|
|
|
|
|
|||||||
Income tax expense |
₩ |
|
||||||||||
|
|
|
|
|
|
|||||||
Effective tax rate (%) |
% | % | % |
(*1) | Due to changes in estimation on deductibility of temporary difference related to Synthetic Natural Gas (SNG) facility and Business Combination of Off-gas Power Station Business Sector, ₩ |
(d) | The movements in deferred tax assets (liabilities) for the years ended December 31, 2020 and 2021 were as follows: |
(in millions of Won) |
2020 |
2021 |
||||||||||||||||||||||
Beginning |
Inc. (Dec.) |
Ending |
Beginning |
Inc. (Dec.) |
Ending |
|||||||||||||||||||
Deferred income tax due to temporary differences |
||||||||||||||||||||||||
Allowance for doubtful accounts |
₩ |
( |
) | ( |
) | |||||||||||||||||||
PP&E - Depreciation |
( |
) | ||||||||||||||||||||||
Share of profit or loss of equity - accounted investees |
||||||||||||||||||||||||
Allowance for inventories valuation |
||||||||||||||||||||||||
PP&E - Revaluation |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
Prepaid expenses |
( |
) | ||||||||||||||||||||||
PP&E - Impairment loss |
||||||||||||||||||||||||
Gain or loss on foreign currency translation |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
Defined benefit liabilities |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Provision for construction losses |
( |
) | ||||||||||||||||||||||
Provision for construction warranty |
||||||||||||||||||||||||
Accrued income |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Impairment loss on AFS |
( |
) | ||||||||||||||||||||||
Difference in acquisition costs of treasury shares |
— | — | ||||||||||||||||||||||
Others |
( |
) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Deferred income taxes recognized directly to equity |
||||||||||||||||||||||||
Net changes in fair value of equity investments at fair value through other comprehensive income |
( |
) | ||||||||||||||||||||||
Others |
( |
) | ( |
) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
( |
) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Deferred tax from tax credit |
||||||||||||||||||||||||
Tax credit carry - forward and others |
( |
) | ||||||||||||||||||||||
Investments in subsidiaries, associates and joint ventures |
||||||||||||||||||||||||
Investments in subsidiaries, associates and joint ventures |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
₩ |
( |
) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(e) | Deferred tax assets and liabilities as of December 31, 2020 and 2021 are as follows: |
(in millions of Won) |
2020 |
2021 |
||||||||||||||||||||||
Assets |
Liabilities |
Net |
Assets |
Liabilities |
Net |
|||||||||||||||||||
Deferred income tax due to temporary differences |
||||||||||||||||||||||||
Allowance for doubtful accounts |
₩ |
( |
) | ( |
) | |||||||||||||||||||
PP&E - Depreciation |
( |
) | ( |
) | ||||||||||||||||||||
Share of profit or loss of equity-accounted investees |
( |
) | ( |
) | ||||||||||||||||||||
Allowance for inventories valuation |
— | |||||||||||||||||||||||
PP&E - Revaluation |
— | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||||
Prepaid expenses |
( |
) | ( |
) | ||||||||||||||||||||
PP&E - Impairment loss |
||||||||||||||||||||||||
Gain or loss on foreign currency translation |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
Defined benefit liabilities |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
Provision for construction losses |
— | |||||||||||||||||||||||
Provision for construction warranty |
— | |||||||||||||||||||||||
Accrued income |
— | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||||
Impairment loss on AFS |
— | |||||||||||||||||||||||
Difference in acquisition costs of treasury shares |
— | |||||||||||||||||||||||
Others |
( |
) | ( |
) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Deferred income taxes recognized directly to equity |
||||||||||||||||||||||||
Net changes in fair value of equity investments at fair value through other comprehensive income |
( |
) | ( |
) | ||||||||||||||||||||
Others |
( |
) | ( |
) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
( |
) | ( |
) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Deferred tax from tax credit |
||||||||||||||||||||||||
Tax credit carry-forward and others |
— | |||||||||||||||||||||||
Investments in subsidiaries, associates and joint ventures |
||||||||||||||||||||||||
Investments in subsidiaries, associates and joint ventures |
( |
) | ( |
) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
₩ |
( |
) | ( |
) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(f) | As of December 31, 2021, deductible temporary differences of ₩ ₩ |
(g) | The Company recognized current tax payable or receivable at the amount expected to be paid or received that reflects uncertainty related to income taxes. |
36. |
Earnings per Share |
(in Won, except share information) |
2019 |
2020 |
2021 |
|||||||||
Profit attribute to controlling interest |
₩ |
|||||||||||
Interests of hybrid bonds, net of tax |
( |
) | ( |
) | ( |
) | ||||||
Weighted-average number of common shares outstanding(*1) |
||||||||||||
|
|
|
|
|
|
|||||||
Basic earnings per share |
₩ |
|||||||||||
|
|
|
|
|
|
(*1) | The weighted-average number of common shares used to calculate basic earnings per share are as follows: |
(shares) |
2019 |
2020 |
2021 |
|||||||||
Total number of common shares issued |
||||||||||||
Weighted-average number of treasury shares |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Weighted-average number of |
||||||||||||
|
|
|
|
|
|
(in Won, except per share information) |
2019 |
2020 |
2021 |
|||||||||
Profit attributable to controlling interest |
₩ |
|||||||||||
Interests of hybrid bonds, net of tax |
( |
) |
( |
) |
( |
) | ||||||
Gain or loss from exchange rate on and revaluation of exchangeable bonds |
( |
) | ||||||||||
Adjusted weighted-average number of common shares(*1) |
||||||||||||
|
|
|
|
|
|
|||||||
Diluted earnings per share |
₩ |
|||||||||||
|
|
|
|
|
|
(*1) |
The weighted-average number of common shares used to calculate diluted earnings per share are as follows: |
(shares) |
2019 |
2020 |
2021 |
|||||||||
Weighted-average number of common shares outstanding |
||||||||||||
Weighted-average number of potential common share |
||||||||||||
|
|
|
|
|
|
|||||||
Adjusted weighted-average number of common shares |
||||||||||||
|
|
|
|
|
|
37. |
Related Party Transactions |
(a) | Significant transactions between the controlling company and related companies for the years ended December 31, 2019, 2020 and 2021 were as follows: |
1) | For the year ended December 31, 2019 |
(in millions of Won) |
Sales and others(*1) |
Purchase and others(*2) |
||||||||||||||||||||||
Sales |
Others |
Purchase of material |
Purchase of fixed assets |
Outsourced processing cost |
Others |
|||||||||||||||||||
Subsidiaries(*3) |
||||||||||||||||||||||||
POSCO ENGINEERING & CONSTRUCTION CO.,LTD. |
₩ |
|||||||||||||||||||||||
POSCO COATED & COLOR STEEL Co., Ltd. |
— | |||||||||||||||||||||||
POSCO ICT(*4) |
— | |||||||||||||||||||||||
eNtoB Corporation |
||||||||||||||||||||||||
POSCO CHEMICAL CO., LTD |
||||||||||||||||||||||||
POSCO ENERGY CO., LTD. |
— | |||||||||||||||||||||||
POSCO INTERNATIONAL Corporation |
— | |||||||||||||||||||||||
POSCO Thainox Public Company Limited |
— | — | ||||||||||||||||||||||
POSCO America Corporation |
— | — | — | — | ||||||||||||||||||||
POSCO Canada Ltd. |
— | — | — | |||||||||||||||||||||
POSCO Asia Co., Ltd. |
||||||||||||||||||||||||
Qingdao Pohang Stainless Steel Co., Ltd. |
— | — | — | — | ||||||||||||||||||||
POSCO JAPAN Co., Ltd. |
— | |||||||||||||||||||||||
POSCO-VIETNAM Co., Ltd. |
— | — | — | |||||||||||||||||||||
POSCO MEXICO S.A. DE C.V. |
— | — | — | |||||||||||||||||||||
POSCO Maharashtra Steel Private Limited |
— | — | — | |||||||||||||||||||||
POSCO(Suzhou) Automotive Processing Center Co., Ltd. |
— | — | ||||||||||||||||||||||
POSCO VST CO., LTD. |
— | — | — | — | ||||||||||||||||||||
POSCO INTERNATIONAL SINGAPORE PTE LTD. |
— | — | — | — | ||||||||||||||||||||
Others |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Associates and joint ventures(*3) |
||||||||||||||||||||||||
POSCO PLANTEC Co., Ltd. |
||||||||||||||||||||||||
SNNC |
— | — | ||||||||||||||||||||||
POSCO-SAMSUNG-Slovakia Processing Center |
— | — | — | — | — | |||||||||||||||||||
Roy Hill Holdings Pty Ltd |
— | — | — | — | — | |||||||||||||||||||
Others |
— | — | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
₩ |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(*1) | Sales and others mainly consist of sales of steel products to subsidiaries, associates and joint ventures. |
(*2) | Purchases and others mainly consist of subsidiaries’ purchases of construction services and purchases of raw materials to manufacture steel products. |
(*3) | As of December 31, 2019, the company provided guarantees to related parties . |
(*4) | Others (purchase) mainly consist of service fees related to maintenance and repair of ERP System. |
2) | For the year ended December 31, 2020 |
(in millions of Won) |
Sales and others(*1) |
Purchase and others(*2) |
||||||||||||||||||||||
Sales |
Others |
Purchase of material |
Purchase of fixed assets |
Outsourced processing cost |
Others |
|||||||||||||||||||
Subsidiaries(*3) |
||||||||||||||||||||||||
POSCO ENGINEERING & CONSTRUCTION CO.,LTD. |
₩ |
|||||||||||||||||||||||
POSCO COATED & COLOR STEEL Co., Ltd. |
— | — | ||||||||||||||||||||||
POSCO ICT(*4) |
— | |||||||||||||||||||||||
eNtoB Corporation |
||||||||||||||||||||||||
POSCO CHEMICAL CO., LTD |
||||||||||||||||||||||||
POSCO ENERGY CO., LTD. |
— | |||||||||||||||||||||||
POSCO MOBILITY SOLUTION (formerly, POSCO SPS CORPORATION) |
— | — | — | |||||||||||||||||||||
POSCO INTERNATIONAL Corporation |
— | |||||||||||||||||||||||
POSCO Thainox Public Company Limited |
— | — | — | |||||||||||||||||||||
POSCO Canada Ltd. |
— | — | — | — | ||||||||||||||||||||
POSCO Asia Co., Ltd. |
||||||||||||||||||||||||
Qingdao Pohang Stainless Steel Co., Ltd. |
— | — | — | |||||||||||||||||||||
POSCO JAPAN Co., Ltd. |
— | — | ||||||||||||||||||||||
POSCO-VIETNAM Co., Ltd. |
— | — | — | |||||||||||||||||||||
POSCO MEXICO S.A. DE C.V. |
— | — | — | |||||||||||||||||||||
POSCO Maharashtra Steel Private Limited |
— | — | — | |||||||||||||||||||||
POSCO(Suzhou) Automotive Processing Center Co., Ltd. |
— | — | — | — | ||||||||||||||||||||
POSCO VST CO., LTD. |
— | — | — | |||||||||||||||||||||
POSCO INTERNATIONAL SINGAPORE PTE LTD. |
— | — | — | — | — | |||||||||||||||||||
POSCO ASSAN TST STEEL INDUSTRY |
— | — | ||||||||||||||||||||||
Others |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Associates and joint ventures(*3) |
||||||||||||||||||||||||
SNNC |
— | — | — | |||||||||||||||||||||
POSCO-SAMSUNG-Slovakia Processing Center |
— | — | — | — | — | |||||||||||||||||||
Roy Hill Holdings Pty Ltd |
— | — | — | — | ||||||||||||||||||||
Others |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
₩ |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(*1) | Sales and others mainly consist of sales of steel products to subsidiaries, associates and joint ventures. |
(*2) | Purchases and others mainly consist of subsidiaries’ purchases of construction services and purchases of raw materials to manufacture steel products. |
(*3) | As of December 31, 2020, the company provided guarantees to related parties . |
(*4) | Others (purchase) mainly consist of service fees related to maintenance and repair of ERP System. |
3) | For the year ended December 31, 2021 |
(in millions of Won) |
Sales and others(*1) |
Purchase and others(*2) |
||||||||||||||||||||||
Sales |
Others |
Purchase of material |
Purchase of fixed assets |
Outsourced processing cost |
Others |
|||||||||||||||||||
Subsidiaries(*3) |
||||||||||||||||||||||||
POSCO ENGINEERING & CONSTRUCTION CO.,LTD. |
₩ |
— | ||||||||||||||||||||||
POSCO COATED & COLOR STEEL Co., Ltd. |
— | — | ||||||||||||||||||||||
POSCO ICT(*4) |
— | |||||||||||||||||||||||
eNtoB Corporation |
— | |||||||||||||||||||||||
POSCO CHEMICAL CO., LTD |
||||||||||||||||||||||||
POSCO ENERGY CO., LTD. |
— | — | ||||||||||||||||||||||
POSCO MOBILITY SOLUTION (formerly, POSCO SPS CORPORATION) |
— | — | — | |||||||||||||||||||||
POSCO INTERNATIONAL Corporation |
— | |||||||||||||||||||||||
POSCO Thainox Public Company Limited |
— | — | — | — | ||||||||||||||||||||
POSCO Canada Ltd. |
— | — | — | — | ||||||||||||||||||||
POSCO Asia Co., Ltd. |
— | — | ||||||||||||||||||||||
Qingdao Pohang Stainless Steel Co., Ltd. |
— | — | — | |||||||||||||||||||||
POSCO JAPAN Co., Ltd. |
— | |||||||||||||||||||||||
POSCO-VIETNAM Co., Ltd. |
— | — | — | |||||||||||||||||||||
POSCO MEXICO S.A. DE C.V. |
— | — | — | |||||||||||||||||||||
POSCO Maharashtra Steel Private Limited |
— | — | — | |||||||||||||||||||||
POSCO(Suzhou) Automotive Processing Center Co., Ltd. |
— | — | — | — | ||||||||||||||||||||
POSCO VST CO., LTD. |
— | — | — | — | ||||||||||||||||||||
POSCO INTERNATIONAL SINGAPORE PTE LTD. |
— | — | — | — | ||||||||||||||||||||
POSCO ASSAN TST STEEL INDUSTRY |
— | — | ||||||||||||||||||||||
Others |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Associates and joint ventures(*3) |
||||||||||||||||||||||||
SNNC |
— | — | ||||||||||||||||||||||
POSCO-SAMSUNG-Slovakia Processing Center |
— | — | — | — | — | |||||||||||||||||||
Roy Hill Holdings Pty Ltd |
— | — | — | — | ||||||||||||||||||||
Others |
— | — | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
— | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
₩ |
|
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(*1) | Sales and others mainly consist of sales of steel products to subsidiaries, associates and joint ventures. |
(*2) | Purchases and others mainly consist of subsidiaries’ purchases of construction services and purchases of raw materials to manufacture steel products. |
(*3) | As of December 31, 2021, the company provided guarantees to related parties (Note 38) . |
(*4) | Others (purchase) mainly consist of service fees related to maintenance and repair of ERP System. |
(b) | The related account balances of receivables and payables resulting from significant transactions between the controlling company and related companies as of December 31, 2020 and 2021 are as follows: |
1) | December 31, 2020 |
(in millions of Won) |
Receivables |
Payables |
||||||||||||||||||||||||||
Trade accounts and notes receivable |
Others |
Total |
Trade accounts and notes payable |
Accounts payable |
Others |
Total |
||||||||||||||||||||||
Subsidiaries |
||||||||||||||||||||||||||||
POSCO ENGINEERING & CONSTRUCTION CO.,LTD. |
₩ |
— | ||||||||||||||||||||||||||
POSCO COATED & COLOR STEEL Co., Ltd. |
— | — | ||||||||||||||||||||||||||
POSCO ICT |
||||||||||||||||||||||||||||
eNtoB Corporation |
— | — | — | |||||||||||||||||||||||||
POSCO CHEMICAL CO., LTD |
||||||||||||||||||||||||||||
POSCO ENERGY CO., LTD. |
— | |||||||||||||||||||||||||||
POSCO MOBILITY SOLUTION (formerly, POSCO SPS CORPORATION) |
— | — | ||||||||||||||||||||||||||
POSCO INTERNATIONAL Corporation |
— | — | — | |||||||||||||||||||||||||
POSCO Thainox Public Company Limited |
— | — | — | — | — | |||||||||||||||||||||||
Qingdao Pohang Stainless Steel Co., Ltd. |
— | — | — | — | — | |||||||||||||||||||||||
POSCO MEXICO S.A. DE C.V. |
— | — | — | — | ||||||||||||||||||||||||
POSCO Maharashtra Steel Private Limited |
— | — | — | — | ||||||||||||||||||||||||
POSCO INTERNATIONAL SINGAPORE PTE LTD. |
— | — | — | |||||||||||||||||||||||||
POSCO ASSAN TST STEEL INDUSTRY |
— | — | — | — | ||||||||||||||||||||||||
Others(*1) |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Associates and joint ventures |
||||||||||||||||||||||||||||
SNNC |
— | — | ||||||||||||||||||||||||||
Roy Hill Holdings Pty Ltd |
— | — | — | |||||||||||||||||||||||||
Others |
— | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
— | — | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
₩ |
|
|||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) | As of December 31, 2020, the Company has loans amounting to ₩ ₩ |
2) | December 31, 2021 |
(in millions of Won) |
Receivables |
Payables |
||||||||||||||||||||||||||
Trade accounts and notes receivable |
Others |
Total |
Trade accounts and notes payable |
Accounts payable |
Others |
Total |
||||||||||||||||||||||
Subsidiaries |
||||||||||||||||||||||||||||
POSCO ENGINEERING & CONSTRUCTION CO.,LTD. |
₩ |
— | ||||||||||||||||||||||||||
POSCO COATED & COLOR STEEL Co., Ltd. |
— | — | ||||||||||||||||||||||||||
POSCO ICT |
||||||||||||||||||||||||||||
eNtoB Corporation |
— | — | — | — | ||||||||||||||||||||||||
POSCO CHEMICAL CO., LTD |
||||||||||||||||||||||||||||
POSCO ENERGY CO., LTD. |
— | |||||||||||||||||||||||||||
POSCO MOBILITY SOLUTION (formerly, POSCO SPS CORPORATION) |
— | |||||||||||||||||||||||||||
POSCO INTERNATIONAL Corporation |
||||||||||||||||||||||||||||
POSCO Thainox Public Company Limited |
— | — | — | — | — | |||||||||||||||||||||||
Qingdao Pohang Stainless Steel Co., Ltd. |
— | — | — | |||||||||||||||||||||||||
POSCO MEXICO S.A. DE C.V. |
— | — | — | — | ||||||||||||||||||||||||
POSCO Maharashtra Steel Private Limited |
— | — | — | — | ||||||||||||||||||||||||
POSCO INTERNATIONAL SINGAPORE PTE LTD. |
— | — | ||||||||||||||||||||||||||
POSCO ASSAN TST STEEL INDUSTRY |
— | — | — | — | ||||||||||||||||||||||||
Others |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Associates and joint ventures |
||||||||||||||||||||||||||||
SNNC |
— | — | ||||||||||||||||||||||||||
Roy Hill Holdings Pty Ltd |
— | — | — | |||||||||||||||||||||||||
FQM Australia Holdings Pty Ltd(*1) |
— | — | — | — | — | |||||||||||||||||||||||
Others |
— | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
— | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
₩ |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) | It includes ₩ |
(c) | Significant transactions between the Company, excluding the controlling company, and related companies for the years ended December 31, 2019, 2020 and 2021 were as follows: |
1) | For the year ended December 31, 2019 |
(in millions of Won) |
Sales and others |
Purchase and others |
||||||||||||||
Sales |
Others |
Purchase of material |
Others |
|||||||||||||
Associates and joint ventures |
||||||||||||||||
POSCO PLANTEC Co., Ltd. |
₩ |
— | ||||||||||||||
New Songdo International City Development, LLC |
— | |||||||||||||||
SNNC |
— | |||||||||||||||
Chuncheon Energy Co., Ltd. |
— | — | — | |||||||||||||
Noeul Green Energy Co., Ltd. |
— | — | ||||||||||||||
USS-POSCO Industries |
— | — | ||||||||||||||
CSP—Compania Siderurgica do Pecem |
||||||||||||||||
Zhongyue POSCO (Qinhuangdao) Tinplate Industrial Co., Ltd |
— | — | ||||||||||||||
BX STEEL POSCO Cold Rolled Sheet Co., Ltd. |
— | — | ||||||||||||||
POS-SEAHSTEELWIRE(TIANJIN)CO.,Ltd |
— | — | — | |||||||||||||
PT. Batutua Tembaga Raya |
— | — | ||||||||||||||
POSCO SeAH Steel Wire(Nantong) Co., Ltd. |
— | — | ||||||||||||||
Sebang Steel |
— | — | — | |||||||||||||
DMSA/AMSA |
— | — | — | |||||||||||||
South-East Asia Gas Pipeline Company Ltd. |
— | — | ||||||||||||||
POSCO MITSUBISHI CARBON TECHNOLOGY |
||||||||||||||||
Samcheok BluePower Co.,Ltd |
— | — | — | |||||||||||||
TK CHEMICAL CORPORATION |
— | — | ||||||||||||||
Others |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
₩ |
|
|||||||||||||||
|
|
|
|
|
|
|
|
2) | For the year ended December 31, 2020 |
(in millions of Won) |
Sales and others |
Purchase and others |
||||||||||||||
Sales |
Others |
Purchase of material |
Others |
|||||||||||||
Associates and joint ventures |
||||||||||||||||
POSCO PLANTEC Co., Ltd. |
₩ |
— | — | |||||||||||||
New Songdo International City Development, LLC |
— | |||||||||||||||
SNNC |
||||||||||||||||
Chuncheon Energy Co., Ltd. |
— | — | ||||||||||||||
Noeul Green Energy Co., Ltd |
— | — | ||||||||||||||
CSP—Compania Siderurgica do Pecem |
||||||||||||||||
Zhongyue POSCO (Qinhuangdao) Tinplate Industrial Co., Ltd |
— | |||||||||||||||
BX STEEL POSCO Cold Rolled Sheet Co., Ltd. |
— | — | — | |||||||||||||
POS-SEAH STEEL WIRE (TIANJIN) CO., Ltd |
— | — | — | |||||||||||||
PT. Batutua Tembaga Raya |
— | — | ||||||||||||||
POSCO SeAH Steel Wire (Nantong) Co., Ltd. |
— | — | ||||||||||||||
DMSA/AMSA |
— | — | — | |||||||||||||
South-East Asia Gas Pipeline Company Ltd. |
— | — | ||||||||||||||
POSCO MITSUBISHI CARBON TECHNOLOGY |
||||||||||||||||
Samcheok Blue Power Co.,Ltd |
— | — | — | |||||||||||||
TK CHEMICAL CORPORATION |
— | — | ||||||||||||||
Pocheon-Hwado Highway Corp. (formerly, Metropolitan Outer Ring Expressway Co., Ltd) |
— | — | — | |||||||||||||
UITrans LRT Co., Ltd. |
— | — | — | |||||||||||||
Roy Hill Holdings Pty Ltd |
— | — | — | |||||||||||||
Others |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
₩ |
|
|||||||||||||||
|
|
|
|
|
|
|
|
3) | For the year ended December 31, 2021 |
(in millions of Won) |
Sales and others |
Purchase and others |
||||||||||||||
Sales |
Others |
Purchase of material |
Others |
|||||||||||||
Associates and joint ventures |
||||||||||||||||
New Songdo International City Development, LLC |
₩ |
— | ||||||||||||||
SNNC |
||||||||||||||||
Noeul Green Energy Co., Ltd. |
— | |||||||||||||||
CSP—Compania Siderurgica do Pecem |
— | — | ||||||||||||||
Zhongyue POSCO (Qinhuangdao) Tinplate Industrial Co., Ltd |
— | |||||||||||||||
POS-SEAH STEEL WIRE (TIANJIN) CO., Ltd |
— | — | — | |||||||||||||
POSCO SeAH Steel Wire(Nantong) Co., Ltd. |
— | — | ||||||||||||||
DMSA/AMSA |
— | — | — | |||||||||||||
South-East Asia Gas Pipeline Company Ltd. |
— | — | — | |||||||||||||
POSCO MITSUBISHI CARBON TECHNOLOGY |
||||||||||||||||
Samcheok BluePower Co.,Ltd |
||||||||||||||||
TK CHEMICAL CORPORATION |
— | — | ||||||||||||||
Pocheon-Hwado Highway Corp. (formerly, Metropolitan Outer Ring Expressway Co., Ltd) |
— | — | — | |||||||||||||
UITrans LRT Co., Ltd. |
— | — | — | |||||||||||||
Roy Hill Holdings Pty Ltd |
— | — | — | |||||||||||||
Others |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
₩ |
|
|||||||||||||||
|
|
|
|
|
|
|
|
(d) | The related account balances of receivables and payables resulting from significant transactions between the Company, excluding the controlling company, and related companies as of December 31, 2020 and December 31, 2021 are as follows: |
1) | December 31, 2020 |
(in millions of Won) |
Receivables(*1) |
Payables |
||||||||||||||||||||||||||
Trade accounts and notes receivable |
Loan |
Others |
Total |
Trade accounts and notes payable |
Others |
Total |
||||||||||||||||||||||
Associates and joint ventures |
||||||||||||||||||||||||||||
New Songdo International City Development, LLC |
₩ |
— | — | |||||||||||||||||||||||||
Chuncheon Energy Co., Ltd. |
— | — | — | — | — | |||||||||||||||||||||||
Samcheok Blue Power Co., Ltd. |
— | — | — | |||||||||||||||||||||||||
Nickel Mining Company SAS |
— | — | — | — | ||||||||||||||||||||||||
CSP—Compania Siderurgica do Pecem |
— | — | — | — | — | |||||||||||||||||||||||
Zhongyue POSCO (Qinhuangdao) Tinplate Industrial Co., Ltd |
— | — | ||||||||||||||||||||||||||
PT. Batutua Tembaga Raya |
— | — | — | — | — | |||||||||||||||||||||||
POSCO SeAH Steel Wire(Nantong) Co., Ltd. |
— | — | — | |||||||||||||||||||||||||
South-East Asia Gas Pipeline Company Ltd. |
— | — | — | — | — | |||||||||||||||||||||||
POSCO MITSUBISHI CARBON TECHNOLOGY |
— | — | — | |||||||||||||||||||||||||
TK CHEMICAL CORPORATION |
— | — | — | |||||||||||||||||||||||||
Pocheon-Hwado Highway Corp. (formerly, Metropolitan Outer Ring Expressway Co., Ltd) |
— | — | — | — | — | |||||||||||||||||||||||
UITrans LRT Co., Ltd. |
— | — | — | |||||||||||||||||||||||||
Others |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
₩ |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) | As of December 31, 2020, the Company recognizes bad debt allowance for receivables amounting to ₩ |
2) | December 31, 2021 |
(in millions of Won) |
Receivables(*1) |
Payables |
||||||||||||||||||||||||||
Trade accounts and notes receivable |
Loan |
Others |
Total |
Trade accounts and notes payable |
Others |
Total |
||||||||||||||||||||||
Associates and joint ventures |
||||||||||||||||||||||||||||
New Songdo International City Development, LLC |
— | — | — | — | ||||||||||||||||||||||||
Chuncheon Energy Co., Ltd. |
— | — | — | |||||||||||||||||||||||||
Samcheok Blue Power Co., Ltd. |
— | — | — | |||||||||||||||||||||||||
Nickel Mining Company SAS |
— | — | — | |||||||||||||||||||||||||
CSP—Compania Siderurgica do Pecem |
— | — | — | — | — | |||||||||||||||||||||||
Zhongyue POSCO (Qinhuangdao) Tinplate Industrial Co., Ltd |
— | — | — | |||||||||||||||||||||||||
POSCO SeAH Steel Wire(Nantong) Co., Ltd. |
— | — | — | |||||||||||||||||||||||||
South-East Asia Gas Pipeline Company Ltd. |
— | — | — | — | — | |||||||||||||||||||||||
POSCO MITSUBISHI CARBON TECHNOLOGY |
— | — | — | |||||||||||||||||||||||||
Pocheon-Hwado Highway Corp. (formerly, Metropolitan Outer Ring Expressway Co., Ltd) |
— | — | — | — | — | |||||||||||||||||||||||
UITrans LRT Co., Ltd. |
— | — | — | — | ||||||||||||||||||||||||
Others |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
₩ |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) | As of December 31, 2021, the Company recognizes bad-debt allowance for receivables amounting to ₩ |
(e) | Significant financial transactions between the Company, excluding the controlling company, and related companies for the years ended December 31, 2020 and 2021 were as follows: |
1) | December 31, 2020 |
(in millions of Won) |
Beginning |
Lend |
Collect |
Others(*2) |
Ending |
|||||||||||||||
Associates and joint ventures |
||||||||||||||||||||
UITrans LRT Co., Ltd. |
₩ |
— | — | |||||||||||||||||
DMSA/AMSA(*1) |
— | — | ( |
) | — | |||||||||||||||
South-East Asia Gas Pipeline Company Ltd. |
— | ( |
) | ( |
) | |||||||||||||||
PT. Batutua Tembaga Raya |
— | — | ( |
) | ||||||||||||||||
PT. Tanggamus Electric Power |
— | — | ( |
) | ||||||||||||||||
PT. Wampu Electric Power |
— | — | ( |
) | ||||||||||||||||
PT. POSMI Steel Indonesia |
— | — | ( |
) | ||||||||||||||||
Nickel Mining Company SAS |
— | — | ||||||||||||||||||
KRAKATAU POS-CHEM DONG-SUH CHEMICAL |
— | ( |
) | ( |
) | |||||||||||||||
POS-SeaAH Steel Wire (Thailand) Co., Ltd. |
— | — | ( |
) | ||||||||||||||||
AMCI (WA) PTY LTD |
— | ( |
) | |||||||||||||||||
POS-AUSTEM YANTAI AUTOMOTIVE CO.,LTD |
— | — | ( |
) | ||||||||||||||||
POS-AUSTEM WUHAN AUTOMOTIVE CO.,LTD |
— | — | ( |
) | ||||||||||||||||
Hyo-chun Co., Ltd. |
— | — | — | |||||||||||||||||
Chun-cheon Energy Co., Ltd. |
— | ( |
) | — | — | |||||||||||||||
POS-AUSTEM Suzhou Automotive Co., Ltd |
— | ( |
) | |||||||||||||||||
CAML RESOURCES PTY LTD |
— | — | ||||||||||||||||||
Shinahn wind power generation |
— | — | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
₩ |
( |
) | ( |
) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(*1) | During the year ended December 31, 2020, loans amounting to ₩ |
(*2) | Includes adjustments of foreign currency translation differences and others. |
2) | December 31, 2021 |
(in millions of Won) |
Beginning |
Lend |
Collect |
Others(*1) |
Ending |
|||||||||||||||
Associates and joint ventures |
||||||||||||||||||||
UITrans LRT Co., Ltd. |
₩ |
( |
) | |||||||||||||||||
South-East Asia Gas Pipeline Company Ltd. |
( |
) | ||||||||||||||||||
PT. Batutua Tembaga Raya(*2) |
( |
) | ||||||||||||||||||
PT. Tanggamus Electric Power |
||||||||||||||||||||
PT. Wampu Electric Power |
||||||||||||||||||||
PT. POSMI Steel Indonesia |
||||||||||||||||||||
Nickel Mining Company SAS |
||||||||||||||||||||
KRAKATAU POS-CHEM DONG-SUH CHEMICAL |
( |
) | ||||||||||||||||||
POS-SeaAH Steel Wire (Thailand) Co., Ltd. |
||||||||||||||||||||
AMCI (WA) PTY LTD |
||||||||||||||||||||
POS-AUSTEM YANTAI AUTOMOTIVE CO.,LTD |
||||||||||||||||||||
POS-AUSTEM WUHAN AUTOMOTIVE CO.,LTD |
||||||||||||||||||||
Hyo-chun Co., Ltd. |
||||||||||||||||||||
POS-AUSTEM Suzhou Automotive Co., Ltd |
||||||||||||||||||||
CAML RESOURCES PTY LTD |
( |
) | ||||||||||||||||||
Shinahn wind power generation(*3) |
( |
) | ||||||||||||||||||
FQM Australia Holdings Pty Ltd |
( |
) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
₩ |
( |
) | ( |
) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(*1) | Includes adjustments of foreign currency translation differences and others. |
(*2) | PT. Batutua Tembaga Raya was excluded from the association due to the sale of its shares during the years ended December 31, 2021. Meanwhile, the uncollected loan was offset and written off from the loan loss provisions set in the previous period, and these effects are included in Others. |
(*3) | Shinahn wind power generation was excluded from the association due to the sale of its shares during the years period ended December 31, 2021. |
(f) | For the years ended December 31, 2019, 2020 and 2021, details of compensation to key management officers were as follows: |
(in millions of Won) |
2019 |
2020 |
2021 |
|||||||||
Short-term benefits |
₩ |
|||||||||||
Long-term benefits |
||||||||||||
Retirement benefits |
||||||||||||
|
|
|
|
|
|
|||||||
₩ |
||||||||||||
|
|
|
|
|
|
38. |
Commitments and Contingencies |
(a) | Contingent liabilities |
(b) | Details of guarantees |
(in millions of Won) |
Guarantee limit |
Guarantee amount |
||||||||||||||||||
Guarantor |
Guarantee beneficiary |
Financial institution |
Foreign currency |
Won equivalent |
Foreign currency |
Won equivalent |
||||||||||||||
[The Company] |
||||||||||||||||||||
POSCO HOLDINGS INC. |
POSCO Asia Co., Ltd. | Credit Agricole and others | USD | |||||||||||||||||
POSCO-VIETNAM Co., Ltd. | SMBC and others | USD | ||||||||||||||||||
POSCO MEXICO S.A. DE C.V. | BOA and others | USD | ||||||||||||||||||
POSCO COATED STEEL (THAILAND) CO., LTD. | SMBC and others | THB | ||||||||||||||||||
POSCO Maharashtra Steel Private Limited | SMBC and others | USD | ||||||||||||||||||
PT. KRAKATAU POSCO | Export-Import Bank of Korea and others | USD | ||||||||||||||||||
POSCO ASSAN TST STEEL INDUSTRY | SOCIETE GENERALE and others | USD |
(in millions of Won) |
Guarantee limit |
Guarantee amount |
||||||||||||||||||
Guarantor |
Guarantee beneficiary |
Financial institution |
Foreign currency |
Won equivalent |
Foreign currency |
Won equivalent |
||||||||||||||
POSCO INTERNATIONAL Corporation |
POSCO INTERNATIONAL GLOBAL DEVELOPMENT PTE. LTD. |
Export-Import Bank of Korea and others | USD | |||||||||||||||||
POSCO INTERNATIONAL POWER (PNGLAE) LIMITED | KDB bank | USD | ||||||||||||||||||
GOLDEN LACE POSCO INTERNATIONAL CO., LTD. | Shinhan Bank and others | USD | ||||||||||||||||||
PT. Bio Inti Agrindo | BTPN and others | IDR | ||||||||||||||||||
POSCO ASSAN TST STEEL INDUSTRY | ING | USD | ||||||||||||||||||
POSCO INTERNATIONAL Deutschland GmbH |
Bank Mendes Gans |
USD |
||||||||||||||||||
POSCO INTERNATIONAL AMERICA Corp. |
— |
— |
||||||||||||||||||
POSCO INTERNATIONAL JAPAN Corp. |
||||||||||||||||||||
POSCO INTERNATIONAL SINGAPORE Pte. Ltd. |
— |
— |
||||||||||||||||||
POSCO INTERNATIONAL Malaysia SDN BHD |
— |
— |
||||||||||||||||||
POSCO INTERNATIONAL Italia S.R.L. |
— |
— |
||||||||||||||||||
POSCO INTERNATIONAL MEXICO S.A. de C.V. |
— |
— |
||||||||||||||||||
GRAIN TERMINAL HOLDING PTE. LTD. | Export-Import Bank of Korea and others | USD | ||||||||||||||||||
POSCO ENGINEERING & CONSTRUCTION CO., LTD. |
POSCO E&C Vietnam Co., Ltd. | POSCO Asia Co., Ltd. and others | USD | |||||||||||||||||
PT.POSCO E&C INDONESIA | POSCO Asia Co., Ltd. and others | USD | ||||||||||||||||||
POSCO ICT |
PT.POSCO ICT INDONESIA | POSCO Asia Co., Ltd. and others | USD | |||||||||||||||||
POSCO CHEMICAL CO., LTD |
PT.Krakatau Posco Chemical Calcination |
POSCO Asia Co., Ltd. and others | USD | |||||||||||||||||
POSCO COATED & COLOR STEEL Co., Ltd. |
Myanmar POSCO C&C Company, Limited. | POSCO Asia Co., Ltd. | USD | |||||||||||||||||
POSCO ENERGY CO., LTD |
PT. KRAKATAU POSCO ENERGY | POSCO Asia Co., Ltd. and others | USD | |||||||||||||||||
[Associates and joint ventures] |
||||||||||||||||||||
POSCO HOLDINGS INC. |
CSP—Compania Siderurgica do Pecem | Export-Import Bank of Korea and others | USD | |||||||||||||||||
BNDES | BRL | |||||||||||||||||||
LLP POSUK Titanium | SMBC | USD | ||||||||||||||||||
Nickel Mining Company SAS | SMBC | EUR |
(in millions of Won) |
Guarantee limit |
Guarantee amount |
||||||||||||||||||
Guarantor |
Guarantee beneficiary |
Financial institution |
Foreign currency |
Won equivalent |
Foreign currency |
Won equivalent |
||||||||||||||
POSCO INTERNATIONAL Corporation |
GLOBAL KOMSCO Daewoo LLC | Hana Bank | USD | |||||||||||||||||
POSCO ENGINEERING & CONSTRUCTION CO., LTD. |
Chun-cheon Energy Co., Ltd. | Kookmin Bank | KRW | |||||||||||||||||
[Others] |
||||||||||||||||||||
POSCO INTERNATIONAL Corporation |
SHERRITT INTERNATIONAL CORP. | Export-Import Bank of Korea | USD | |||||||||||||||||
POSCO ENGINEERING & CONSTRUCTION CO., LTD. |
Busan Sanseong Tunnel and others | Balhae Infrastructure Fund and others | KRW | |||||||||||||||||
POSCO ICT |
Busan Sanseong Tunnel | Hana Bank and others |
KRW | |||||||||||||||||
POSCO AUSTRALIA PTY LTD |
Department of Trade and Investment (NSW Government) and others |
Woori Bank and others | AUD | |||||||||||||||||
PT. Bio lnti Agrindo |
KSU Mandob | Bank Muamalat | IDR | |||||||||||||||||
POSCO Maharashtra Steel Private Limited |
MAHARASHTRA STATE ELECTRICITY and others | HSBC and others | INR | |||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
USD | ||||||||||||||||||||
KRW | ||||||||||||||||||||
IDR | |
|||||||||||||||||||
INR | ||||||||||||||||||||
THB | ||||||||||||||||||||
EUR | ||||||||||||||||||||
AUD | ||||||||||||||||||||
BRL | ||||||||||||||||||||
|
|
|
|
|
|
|
|
(in millions of Won) |
Agreed Amount |
Executed amount |
||||||||||||||||||
Provider |
Recipient |
Lender |
Foreign currency |
Won equivalent |
Foreign currency |
Won equivalent |
||||||||||||||
[The Company] |
||||||||||||||||||||
POSCO ENGINEERING & CONSTRUCTION CO., LTD. |
JB CLARK HILLS | HSBC and others | USD | |
||||||||||||||||
[Associates and joint ventures] |
||||||||||||||||||||
POSCO ENGINEERING & CONSTRUCTION CO., LTD. |
New Songdo International City Development, LLC | Others | KRW | |||||||||||||||||
POHANG E&E Co.,LTD | Heungkuk Life Insurance Co., Ltd. | KRW | ||||||||||||||||||
UITrans LRT Co., Ltd | Kookmin Bank and others | KRW | ||||||||||||||||||
Western Inland Highway CO., LTD. | Nonghyup Bank and others | KRW | ||||||||||||||||||
Pocheon-Hwado Highway Corp. (formerly, Metropolitan Outer Ring Expressway Co., Ltd) | Lotte Insurance Co., Ltd and others | KRW | ||||||||||||||||||
RPSD | Plan-up Sinsajeilcha Co., Ltd |
KRW | ||||||||||||||||||
Pureun Tongyeong Enviro Co., Ltd | KDB Bank and others | KRW | ||||||||||||||||||
Pure Gimpo Co., Ltd. | KDB Bank and others | KRW | ||||||||||||||||||
Clean Iksan Co., Ltd. | SAMSUNG FIRE & MARINE INSURANCE | KRW | ||||||||||||||||||
POSCO ICT |
UITrans LRT Co., Ltd | Kookmin Bank | KRW | |||||||||||||||||
Western Inland Highway CO., LTD. | Kookmin Bank | KRW | ||||||||||||||||||
Pocheon-Hwado Highway Corp. (formerly, Metropolitan Outer Ring Expressway Co., Ltd) | Woori Bank | KRW | ||||||||||||||||||
[Others] |
||||||||||||||||||||
POSCO ENGINEERING & CONSTRUCTION CO., LTD. |
Incheon-Gimpo Expressway Co., Ltd and others | Kookmin Bank and others | KRW | |||||||||||||||||
POSCO ICT |
Incheon-Gimpo Expressway Co., Ltd and others | Kookmin Bank and others | KRW |
(c) | Other commitments |
Description | ||
POSCO HOLDINGS INC. | POSCO HOLDINGS INC. entered into long-term contracts to purchase iron ore, coal, nickel and others. The contracts of iron ore and coal generally have terms of more than POSCO HOLDINGS INC. entered into an agreement with Tangguh Liquefied Natural Gas (LNG) Consortium in Indonesia to purchase |
Description | ||
LNG annually for POSCO HOLDINGS INC. has a long-term service contract for the transportation of raw material. As of December 31, 2021, there are As of December 31, 2021, POSCO HOLDINGS INC. entered into a commitment with KOREA ENERGY AGENCY for long-term foreign currency borrowings, which are limited up to the amount of USD POSCO HOLDINGS INC. has provided a supplemental funding agreement, as the largest shareholder, as requested from the creditors, including Norddeutsche Landesbank, for seamless funding to POSCO ENERGY Co., Ltd., a subsidiary of the Company, under construction of new power plant. POSCO HOLDINGS INC. has deposited | ||
POSCO INTERNATIONAL Corporation | POSCO INTERNATIONAL Corporation operates a ship-to-ship The Company invested in the Ambatovy Nickel Project (DMSA/AMSA) in Madagascar through the Korea Ambatovy Consortium (KAC) formed with Korea Mine Rehabilitation and Mineral Resources Corporation (KOMIR) and STX Corporation. SHERRITT INTERNATIONAL CORP., the operator, transferred a portion of the project’s interests to Sumitomo and AHL (Ambatovy Holdings Limited) in November 2017, and transferred the remaining interests of the project to Sumitomo and AHL2 (Ambatovy Holdin g s II Limited) in August 2020. KAC has the rights and obligations to the |
Description | ||
POSCO ENGINEERING & CONSTRUCTION CO., LTD. | As of December 31, 2021, POSCO ENGINEERING & CONSTRUCTION CO., LTD. has foreign currency guarantees of up to USD As of December 31, 2021, according to the project agreements related to redevelopment and reconstruction projects, the Company has an agreement to compensate the Korea Housing and Urban Guarantee Corporation for damages of principal and interest amounting to ₩ ₩ r thermore, the Company provides agreements of construction completion (compensation for non-performance) in connection with a number of implementation and union business projects. | |
POSCO ICT | As of December 31, 2021, in relation to contract enforcement, POSCO ICT is provided with a guarantee of ₩ ₩ ₩ i neering credit union respectively. |
(d) | Litigation in progress |
1) | Request for Arbitration of NSC Investment and TGC |
2) | Other litigations |
(in millions of Won, in thousands of foreign currencies) |
||||||||||||||||||
Company |
Legal actions |
Claim amount |
Won equivalent |
Description | ||||||||||||||
POSCO HOLDINGS INC. |
KRW | |||||||||||||||||
POSCO INTERNATIONAL Corporation |
BRL | |||||||||||||||||
CAD | ||||||||||||||||||
CNY | ||||||||||||||||||
INR | ||||||||||||||||||
KRW | ||||||||||||||||||
USD | ||||||||||||||||||
PKR | ||||||||||||||||||
POSCO ENGINEERING & CONSTRUCTION CO., LTD. |
KRW | |||||||||||||||||
POSCO ICT |
BRL | |||||||||||||||||
KRW | ||||||||||||||||||
POSCO A&C |
KRW | |||||||||||||||||
POSCO America Corporation |
USD | — | — | |||||||||||||||
POSCO ENERGY CO., LTD. |
KRW | |||||||||||||||||
USD | ||||||||||||||||||
POSCO E&C CHINA CO., LTD. |
CNY | |||||||||||||||||
POSCO O&M Co., Ltd. |
KRW | |||||||||||||||||
POSCO ENGINEERING (THAILAND) CO., LTD. |
THB | |||||||||||||||||
eNtoB Corporation |
KRW | |||||||||||||||||
POSCO E&C Vietnam Co., Ltd. |
USD | |||||||||||||||||
POSCO SOUTH EAST ASIA PTE. LTD |
USD | |||||||||||||||||
POSCO TNPC Otomotiv Celik San. Ve Tic. A.S |
TRY | |||||||||||||||||
Brazil Sao Paulo Steel Processing Center |
BRL |
(in millions of Won, in thousands of foreign currencies) |
||||||||||||||||||
Company |
Legal actions |
Claim amount |
Won equivalent |
Description | ||||||||||||||
POSCO ENGINEERING & CONSTRUCTION DO BRAZIL LTDA. |
BRL | |||||||||||||||||
POSCO ASSAN TST STEEL INDUSTRY |
USD | |||||||||||||||||
POSCO TMC INDIA PRIVATE LIMITED |
INR | — | — | |||||||||||||||
POSCO INDIA PROCESSING CENTER PRIVATE LIMITED |
INR | |||||||||||||||||
POSCO-India Pune Processing Center. Pvt. Ltd. |
INR | |||||||||||||||||
POSCO CHEMCAL CO., LTD |
KRW | |||||||||||||||||
POSCO M-TECH |
KRW | |||||||||||||||||
POSCO Engineering and Construction India Private Limited |
INR | |||||||||||||||||
POSCO INTERNATIONAL AMERICA Corp. |
USD | |||||||||||||||||
HONG KONG POSCO E&C (CHINA) INVESTMENT Co., Ltd. |
KRW | |||||||||||||||||
POSCO Thainox Public Company Limited |
THB | |||||||||||||||||
POSCO CORPORATION) |
KRW | |||||||||||||||||
POSCO INTERNATIONAL VIETNAM CO., LTD. |
VND | |||||||||||||||||
QINGDAO POHANG STAINLESS STEEL CO., LTD. |
CNY | |||||||||||||||||
POSCO(Yantai) Automotive Processing Center Co., Ltd |
CNY | |||||||||||||||||
POSCO INTERNATIONAL (CHINA) CO., LTD |
CNY | |||||||||||||||||
POSCO(Dalian) IT Center Development Co., Ltd. |
CNY |
(*1) | The Company made a reliable estimate in ₩ |
(e) | Other contingent circumstances |
Company |
Description | |
POSCO HOLDINGS INC. |
||
POSCO INTERNATIONAL Corporation |
||
POSCO ENGINEERING & CONSTRUCTION CO., LTD. |
||
POSCO ICT |
39. |
Additional Information of Statement of Cash Flows |
(a) | Changes in operating assets and liabilities for the years ended December 31, 2019, 2020 and 2021 were as follows: |
(in millions of Won) |
2019 |
2020 |
2021 |
|||||||||
Trade accounts and notes receivable |
₩ |
( |
) | |||||||||
Other receivables |
( |
) | ( |
) | ||||||||
Inventories |
( |
) | ||||||||||
Other current assets |
( |
) | ||||||||||
Other non-current assets |
( |
) | ( |
) | ( |
) | ||||||
Trade accounts and notes payable |
( |
) | ||||||||||
Other payables |
( |
) | ||||||||||
Other current liabilities |
( |
) | ||||||||||
Provisions |
( |
) | ( |
) | ( |
) | ||||||
Payments of severance benefits |
( |
) | ( |
) | ( |
) | ||||||
Plan assets |
( |
) | ( |
) | ( |
) | ||||||
Other non-current liabilities |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
₩ |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
(b) | Changes in liabilities arising from financial activities for the years ended December 31, 2020 and 2021 were as follows: |
1) | December 31, 2020 |
(in millions of Won) |
Liabilities |
Derivatives that hedge borrowings |
||||||||||||||||||
Short-term borrowings |
Long-term borrowings |
Dividend payable |
Lease liabilities |
|||||||||||||||||
Beginning |
₩ |
|||||||||||||||||||
Changes from financing cash flows |
( |
) | ( |
) | ||||||||||||||||
Changes arising from obtaining or losing control of subsidiaries or other business |
— | — | — | — | — | |||||||||||||||
The effect of changes in foreign exchange rates |
( |
) | ( |
) | — | ( |
) | — | ||||||||||||
Changes in fair values |
— | — | — | — | ||||||||||||||||
Other changes: |
||||||||||||||||||||
Decrease in retained earnings |
— | — | — | — | ||||||||||||||||
Decrease in non-controlling interest |
— | — | — | — | ||||||||||||||||
Interest expense |
— | — | — | |||||||||||||||||
Increase in lease assets |
— | — | — | — | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Ending |
₩ |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
2) | December 31, 2021 |
(in millions of Won) |
Liabilities |
Derivatives that hedge borrowings |
||||||||||||||||||
Short-term borrowings |
Long-term borrowings |
Dividend payable |
Lease liabilities |
|||||||||||||||||
Beginning |
₩ |
|||||||||||||||||||
Changes from financing cash flows |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Changes arising from obtaining or losing control of subsidiaries or other business |
— | — | — | — | ||||||||||||||||
The effect of changes in foreign exchange rates |
— | — | ||||||||||||||||||
Changes in fair values |
( |
) | — | ( |
) | |||||||||||||||
Other changes: |
||||||||||||||||||||
Decrease in retained earnings |
— | — | — | — | ||||||||||||||||
Decrease in non-controlling interest |
— | — | — | — | ||||||||||||||||
Interest expense |
— | — | — | |||||||||||||||||
Increase in lease assets |
— | — | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Ending |
₩ |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
40. |
Operating Segments and Geographic Information |
(a) | The Company’s operating segments are organized based on the nature of markets and customers. The Company has four reportable operating segments—steel, construction, trading and others. The steel segment includes production of steel products and revenue of such |
products. The construction segment includes planning, designing and construction of industrial plants, civil engineering projects and commercial and residential buildings, both in Korea and overseas. The trading segment consists of exporting and importing a wide range of steel products and raw materials that are both obtained from and supplied to POSCO, as well as between other suppliers and purchasers in Korea and overseas. Other segments include power generation, network and system integration and logistics. The policies of classification and measurement on operating segments were the same for all periods presented. |
(b) | Information about reportable segments as of and for the years ended December 31, 2019, 2020 and 2021 were as follows: |
1) | As of and for the year ended December 31, 2019 |
(in millions of Won) |
Steel |
Trading |
Construction |
Others |
Total |
|||||||||||||||
External revenues |
₩ |
|||||||||||||||||||
Internal revenues |
||||||||||||||||||||
Including inter segment revenue |
||||||||||||||||||||
Total revenues |
||||||||||||||||||||
Interest income |
||||||||||||||||||||
Interest expenses |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
Depreciation and amortization |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
Impairment loss on property, plant and equipment and others |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
Share of loss of equity-accounted investees, net |
( |
) | ( |
) | ( |
) | — | ( |
) | |||||||||||
Income tax expense |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
Segment profit |
||||||||||||||||||||
Segment assets |
||||||||||||||||||||
Investment in subsidiaries, associates and joint ventures |
||||||||||||||||||||
Acquisition of non-current assets |
||||||||||||||||||||
Segment liabilities |
2) | As of and for the year ended December 31, 2020 |
(in millions of Won) |
Steel |
Trading |
Construction |
Others |
Total |
|||||||||||||||
External revenues |
₩ |
|||||||||||||||||||
Internal revenues |
||||||||||||||||||||
Including inter segment revenue |
||||||||||||||||||||
Total revenues |
||||||||||||||||||||
Interest income |
||||||||||||||||||||
Interest expenses |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
Depreciation and amortization |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
Impairment loss on property, plant and equipment and others |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
Share of loss of equity-accounted investees, net |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
Income tax expense |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
Segment profit |
||||||||||||||||||||
Segment assets |
||||||||||||||||||||
Investment in subsidiaries, associates and joint ventures |
||||||||||||||||||||
Acquisition of non-current assets |
||||||||||||||||||||
Segment liabilities |
3) | As of and for the year ended December 31, 2021 |
(in millions of Won) |
Steel |
Trading |
Construction |
Others |
Total |
|||||||||||||||
External revenues |
₩ |
|||||||||||||||||||
Internal revenues |
||||||||||||||||||||
Including inter segment revenue |
||||||||||||||||||||
Total revenues |
||||||||||||||||||||
Interest income |
||||||||||||||||||||
Interest expenses |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
Depreciation and amortization |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
Impairment loss on property, plant and equipment and others |
|
( |
) |
|
( |
) |
|
( |
) |
|
( |
) |
|
( |
) | |||||
Share of loss of equity-accounted investees, net |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
Income tax expense |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
Segment profit |
||||||||||||||||||||
Segment assets |
||||||||||||||||||||
Investment in subsidiaries, associates and joint ventures |
||||||||||||||||||||
Acquisition of non-current assets |
||||||||||||||||||||
Segment liabilities |
(c) | Reconciliations of total segment revenues, profit or loss, assets and liabilities, and other significant items to their respective consolidated financial statement line items are as follows: |
1) | Revenues |
(in millions of Won) |
2019 |
2020 |
2021 |
|||||||||
Total revenue for reportable segments |
₩ |
|||||||||||
Elimination of inter-segment revenue |
( |
) | ( |
) | ( |
) | ||||||
Basis difference(*2) |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||
₩ |
||||||||||||
|
|
|
|
|
|
2) | Profit |
(in millions of Won) |
2019 |
2020 |
2021 |
|||||||||
Total profit for reportable segments |
₩ |
|||||||||||
Goodwill and corporate FV adjustments |
( |
) | ( |
) | ( |
) | ||||||
Elimination of inter-segment profit (loss) |
( |
) | ||||||||||
Income tax expense |
||||||||||||
Basis difference(*2) |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||
Profit before income tax expense |
₩ |
|||||||||||
|
|
|
|
|
|
3) | Assets |
(in millions of Won) |
2020 |
2021 |
||||||
Total assets for reportable segments(* 1) |
₩ |
|||||||
Equity-accounted investees |
( |
) | ( |
) | ||||
Goodwill and corporate FV adjustments |
||||||||
Elimination of inter-segment assets |
( |
) | ( |
) | ||||
Basis difference(* 2) |
||||||||
|
|
|
|
|||||
₩ |
||||||||
|
|
|
|
(*1) |
As segment assets and liabilities are determined based on separate financial statements, the carrying amount of assets of subsidiaries, which are in a different segment from that of their immediate parent company, in the sep a rate financial statements the immediate parent company is eliminated upon consolidation. In addition, the amount of investment in associates and joint ventures are adjusted from the amount reflected in segment assets to that determined using equity method in consolidated financial statements. |
4) | Liabilities |
(in millions of Won) |
2020 |
2021 |
||||||
Total liabilities for reportable segments |
₩ |
|||||||
Corporate FV adjustments |
||||||||
Elimination of inter-segment liabilities |
( |
) | ( |
) | ||||
Basis difference(*2) |
||||||||
|
|
|
|
|||||
₩ |
||||||||
|
|
|
|
5) | Other significant items |
a) | December 31, 2019 |
(in millions of Won) |
Total segment |
Goodwill and corporate FV adjustments |
Elimination of inter-segment transactions |
Basis difference(*2) |
Consolidated |
|||||||||||||||
Interest income |
₩ |
— | ( |
) | — | |||||||||||||||
Interest expenses |
( |
) | — | ( |
) | |||||||||||||||
Depreciation and amortization |
( |
) | ( |
) | — | ( |
) | |||||||||||||
Share of profit of equity-accounted investees, net |
( |
) | — | — | ||||||||||||||||
Income tax expense |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Impairment loss on property, plant and equipment and others |
( |
) | — | ( |
) | — | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
₩ |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
b) | December 31, 2020 |
(in millions of Won) |
Total segment |
Goodwill and corporate FV adjustments |
Elimination of inter-segment transactions |
Basis difference(*2) |
Consolidated |
|||||||||||||||
Interest income |
₩ |
— | ( |
) | — | |||||||||||||||
Interest expenses |
( |
) | — | ( |
) | |||||||||||||||
Depreciation and amortization |
( |
) | ( |
) | — | ( |
) | |||||||||||||
Share of profit of equity-accounted investees, net |
( |
) | — | — | ||||||||||||||||
Income tax expense |
( |
) | ( |
) | ||||||||||||||||
Impairment loss on property, plant and equipment and others |
( |
) | ( |
) | ( |
) | — | ( |
) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
₩ |
( |
) | ( |
) | ( |
) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
c) | December 31, 2021 |
(in millions of Won) |
Total segment |
Goodwill and corporate FV adjustments |
Elimination of inter-segment transactions |
Basis difference(*2) |
Consolidated |
|||||||||||||||
Interest income |
₩ |
— | ( |
) | — | |||||||||||||||
Interest expenses |
( |
) | — | ( |
) | |||||||||||||||
Depreciation and amortization |
( |
) | ( |
) | — | ( |
) | |||||||||||||
Share of profit of equity-accounted investees, net |
( |
) | — | — | ||||||||||||||||
Income tax expense |
( |
) | ( |
) | ||||||||||||||||
Impairment loss on property, plant and equipment and others |
( |
) | — | ( |
) | — | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
₩ |
( |
) | ( |
) | ( |
) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
(*2) |
Basis difference is related to the differences in recorded revenue and expenses for development and sale of certain residential real estates between the report reviewed by the m anagement and the consolidated financial statements. |
(d) | Revenue by geographic area for the years ended December 31, 2019, 2020 and 2021 was as follows: |
(in millions of Won) |
2019 |
2020 |
2021 |
|||||||||
Domestic |
₩ |
|||||||||||
Japan |
||||||||||||
China |
||||||||||||
Asia-other |
||||||||||||
North America |
||||||||||||
Others |
||||||||||||
|
|
|
|
|
|
|||||||
Basis difference |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||
₩ |
||||||||||||
|
|
|
|
|
|
(e) | Non-current assets by geographic area as of December 31, 2020 and 2021 are as follows: |
(in millions of Won) |
2020 |
2021 |
||||||
Domestic |
₩ |
|||||||
Japan |
||||||||
China |
||||||||
Asia-other |
||||||||
North America |
||||||||
Others |
||||||||
|
|
|
|
|||||
₩ |
||||||||
|
|
|
|
(f) | There are no customers whose revenue is 10% or more of the consolidated revenue. |
41. |
Events after the Reporting Period |
Pursuant to Board of Directors meeting resolution on December 10, 2021 and approval in the Extraordinary General Meeting of the Shareholders on January 28, 2022, POSCO decided to, by way of a vertical spin-off, transform to a holding company under the new name of POSCO HOLDINGS INC.. The purpose of the spin-off is to establish corporate governance to seek long-term balanced growth of the group business es . The effective date of vertical spin-off was March 1, 2022. |
POSCO HOLDINGS INC. | ||
(Registrant) | ||
/s/ Choi, Jeong-Woo | ||
Name: |
Choi, Jeong-Woo | |
Title: |
Chief Executive Officer and Representative Director | |
Date: |
April 28, 2022 |
1.1 | — | Articles of incorporation of POSCO HOLDINGS INC. (English translation) | ||||
2.1 | — | Form of Common Stock Certificate (including English translation) (incorporated by reference to Exhibit 4.3 to the Registrant’s Registration Statement No. 33-81554)* (P) | ||||
2.2 | — | Form of Deposit Agreement (including Form of American Depositary Receipts) (incorporated by reference to the Registrant’s Registration Statement (File No. 333-189473) on Form F-6)* | ||||
2.3 | — | Description of common stock (see Item 10.B. Memorandum and Articles of Association) | ||||
2.4 | — | Description of American Depositary Shares | ||||
8.1 | — | List of consolidated subsidiaries | ||||
12.1 | — | Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||||
12.2 | — | Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||||
13.1 | — | Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | ||||
101.INS | — | Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document) | ||||
101.SCH | — | Inline XBRL Taxonomy Extension Schema Document | ||||
101.CAL | — | Inline XBRL Taxonomy Extension Calculation Linkbase Document | ||||
101.DEF | — | Inline XBRL Taxonomy Extension Definition Linkbase Document | ||||
101.LAB | — | Inline XBRL Taxonomy Extension Label Linkbase Document | ||||
101.PRE | — | Inline XBRL Taxonomy Extension Presentation Linkbase Document | ||||
104 | — | The cover page for the Company’s Annual Report on Form 20-F for the year ended December 31, 2021, has been formatted in Inline XBRL |
* | Filed previously |
(P) | Paper filing |