UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15D-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of February, 2021
Commission File Number: 1-13368
POSCO
(Translation of registrant’s name into English)
POSCO Center, 440 Teheran-ro, Gangnam-gu, Seoul, Korea, 06194
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.
POSCO is furnishing under cover of Form 6-K:
| Exhibit | 99.1: An English-language translated documents with respect to Notice of the 53rd Ordinary General Meeting of Shareholders |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| POSCO | ||||||
| (Registrant) | ||||||
| Date: February 19, 2021 | By | /s/ Chung, Kyung-Jin | ||||
| (Signature) | ||||||
| Name: Chung, Kyung-Jin | ||||||
| Title: Senior Vice President | ||||||
Exhibit 99.1
To Shareholders
Notice of the 53rd Ordinary General Meeting of Shareholders
We hereby notify you that the 53rd Ordinary General Meeting of Shareholders will be held pursuant to Article 362 of the Korean Commercial Act and Article 19 of the Company’s Articles of Incorporation as follows.
1. Date: March 12, 2021 at 9:00 am (KST)
2. Place: Art Hall, 4F West Wing, POSCO Center, 440 Teheran-ro, Gangnam-gu, Seoul, Korea
3. List of Agenda Items
| ● Agenda 1 : | Approval of Financial Statements for the 53rd FY |
(From January 1, 2020 to December 31, 2020) |
(Year-end dividend per share : KRW 4,500) |
[Description of the Proposal]
Pursuant to Article 449 of the Korean Commercial Act and Article 53 of the Company’s Articles of Incorporation, we request that the Ordinary General Meeting of Shareholders to approve the 53rd Fiscal Year Financial Statements.
| • | Consolidated Financial Statements: See Appendix 1 |
| • | Separate Financial Statements: See Appendix 2 |
The audit report from the independent auditors of 53rd FY Financial Statements, based on K-IFRS standards, will be uploaded at POSCO website (http://www.posco.co.kr) and will be disclosed at the SEC website (https://www.sec.gov) in the early March, 2021.
● Agenda 2: Partial Amendments of the Articles of Incorporation
[Description of the Proposal]
Pursuant to Article 433 of the Korean Commercial Act and Article 24 of the Company’s Articles of Incorporation, we request that the Ordinary General Meeting of Shareholders to approve partial amendments of the Articles of Incorporation.
| Existing Article | Amendment | |
Article 29-2. Recommendation of Inside Director Candidate other than the CEO and the Representative Director
A candidate for Inside Director other than the CEO and the Representative Director shall be recommended by the Board of Directors after his qualification is approved by the Director Candidate Recommendation and Management Committee as prescribed in Paragraph (1) of Article 45. | Article 29-2. Recommendation of Inside Director Candidate other than the CEO and the Representative Director
A candidate for Inside Director other than the CEO and the Representative Director shall be recommended by the Board of Directors after his qualification is approved by the Director Candidate Recommendation Committee as prescribed in Paragraph (1) of Article 45. | |
Article 30. Recommendation of Candidate for Outside Directors
(1) A candidate for Outside Director shall be recommended by the Director Candidate Recommendation and Management Committee as prescribed in Paragraph (1) of Article 45. Such candidates shall be among those qualified persons as prescribed in Article 31.
(2) A shareholder holding voting shares of the Company may recommend a candidate for Outside Director to the Director Candidate Recommendation and Management Committee by the exercise of the shareholder proposal right under the applicable legislation.
(3) The Director Candidate Recommendation and Management Committee shall determine the details regarding recommendation for, and evaluation on qualification of, candidates for Outside Director. | Article 30. Recommendation of Candidate for Outside Directors
(1) A candidate for Outside Director shall be recommended by the Director Candidate Recommendation Committee as prescribed in Paragraph (1) of Article 45. Such candidates shall be among those qualified persons as prescribed in Article 31.
(2) A shareholder holding voting shares of the Company may recommend a candidate for Outside Director to the Director Candidate Recommendation Committee by the exercise of the shareholder proposal right under the applicable legislation.
(3) The Director Candidate Recommendation Committee shall determine the details regarding recommendation for, and evaluation on qualification of, candidates for Outside Director. | |
Article 45. Special Committees
(1) The Company shall have special committees under the control of the Board of Directors as follows:
1. (To be added)
2. Director Candidate Recommendation and Management Committee;
3. Evaluation and Compensation Committee;
4. Finance and Related Party Transactions Committee;
5. Executive Management Committee; and
6. Audit Committee | Article 45. Special Committees
(1) The Company shall have special committees under the control of the Board of Directors as follows:
1. ESG Committee;
2. Director Candidate Recommendation Committee;
3. Evaluation and Compensation Committee;
4. Finance Committee;
5. Executive Management Committee; and
6. Audit Committee |
● Agenda 3: Election of Inside Directors
[Description of the Proposal]
Pursuant to Article 382 of the Korean Commercial Act and Article 28, 29, 29-2 of the Company’s Articles of Incorporation, we request the Ordinary General Meeting of Shareholders to appoint one(1) Inside Director who becomes the Representative Director & CEO and other four(4) Inside Directors of the Company as follows.
| • | Number of Inside Directors to be Elected: 5 Directors |
| • | One(1) Candidate for the Representative Director & CEO |
Name/ Agenda | Date of Birth | Professional Experience | Term | |||||
| Recommended by | Period | Details | ||||||
Choi, Jeong-Woo (3-1) | April 10, 1957 | July 2018 ~ Present March 2018 2017
2016 | Representative Director & CEO, POSCO
Representative Director & President, POSCO CHEMICAL Representative Director & President, Head of Corporate Strategy & Finance Center, POSCO Inside Director & Senior Executive Vice President, Head of Corporate Strategy & Finance Center, POSCO | 3 Years | ||||
Board of Directors | 2015
2014
2010 2008 | Senior Executive Vice President, Head of Value Management Department, POSCO Representative Director & Senior Executive Vice President, Head of Planning and Finance, POSCO Daewoo Corporation Head of Corporate Audit Office, POSCO Senior Vice President, Head of Corporate Strategy Department, POSCO E&C | ||||||
| • | Other Four(4) Inside Directors Candidates |
Name/ Agenda | Date of Birth | Professional Experience | Term | |||||
| Recommended by | Period | Details | ||||||
Kim, Hag-Dong (3-2) | May 27, 1959 | January 2021 ~Present 2019
2017 | Inside Director & President, Head of Steel Business Unit, POSCO
Inside Director & Senior Executive Vice President, Head of Steel Production & Technology Division, POSCO Senior Executive Vice President, Head of Gwangyang Works, POSCO | 1 Year | ||||
Board of Directors | 2015 2013 2010 | Senior Executive Vice President, Head of Pohang Works, POSCO Representative Director & Senior Executive Vice President, SNNC Senior Vice President, Deputy Head of Gwangyang Works(Iron & Steel Making), POSCO | ||||||
Chon, Jung-Son (3-3) |
August 26, 1962 | March 2020 ~ Present 2019
2018 | Inside Director & Senior Executive Vice President, Head of Global & Infra Business Unit and Head of Corporate Strategy & Planning Division, POSCO Inside Director & Senior Executive Vice President, Head of Corporate Strategy & Planning Division, POSCO Inside Director & Senior Executive Vice President, Head of Corporate Strategy & Finance Center, POSCO | 1 Year | ||||
Board of Directors | 2017 2016 2014
2012 | Representative Director & President, POSCO C&C Executive Vice President, Head of POSCO Corporate Strategy Office, POSCO Senior Vice President, Senior Corporate Advisor, Value Management Department, POSCO Senior Vice President, Head of Raw Materials Procurement Department, POSCO | ||||||
Jeong, Tak (3-4) |
April 5, 1959 | March 2019 ~Present 2018 2016
2015 | Inside Director & Senior Executive Vice President, Head of Marketing Division, POSCO Senior Executive Vice President, Head of Steel Business Division, POSCO Executive Vice President, Head of Steel Business Strategy Department, POSCO Executive Vice President, Head of Energy and Shipbuilding Materials Marketing Department, POSCO | 1 Year | ||||
Board of Directors | 2013
2012 2010 | Senior Vice President, Head of Energy and Shipbuilding Materials Marketing Department, POSCO Senior Vice President, Overseas Marketing Department, POSCO Senior Vice President, Head of Metal/HR Steel Business Division, Daewoo Corporation | ||||||
Chung, Chang-Hwa (3-5) |
June 18, 1961 | January 2020 2017
| Senior Executive Vice President, Head of Management Support Division, POSCO Senior Executive Vice President, Managing Director, POSCO-China (From January 2019) | 1 Year | ||||
Board of Directors | July 2015 February 2015 2012 | Executive Vice President, Head of Public Relations Department, POSCO Executive Vice President, Head of CR Center, POSCO E&C Senior Vice President, Head of Communication Department, POSCO |
| * | All candidates have no relation with the largest shareholder and no transactions with POSCO in the past three years. |
| * | All candidates stated and signed that they do not have any legal issues to be qualified for directors. |
| • | Recommendation for candidates by the Board of Directors |
Name/ Agenda | Grounds | |
Choi, Jeong-Woo (3-1) | The CEO Candidate Recommendation Committee which consists of outside directors, conducted qualification screening in independent and objective ways through several meetings with the current CEO. In a rapidly changing business circumstances, in order to enhance POSCO’s long-term value and improve competitiveness, the current CEO Choi, Jeong-Woo is recommended as the next CEO candidate.
| |
Kim, Hag-Dong (3-2) | As the Head of Steel Production & Technology Division, the candidate has devoted himself for the competitiveness of steel production and stable operation of steel mills. As of January 4, 2021, he has been positioned as the Head of Steel Business Unit and is expected to be the key person to stably manage steel business.
| |
Chon, Jung-Son (3-3) | As the Head of Global & Infra Business Unit and the Head of Corporate Strategy & Planning Division, the candidate has contributed himself to the establishment of POSCO Group business strategies and executions. Based on his knowledge and experience in the overall Group businesses, he is judged to be the right person to contribute for effective decision-makings on various business related matters.
| |
Jeong, Tak (3-4) | The candidate contributed to increase sales performance by establishing and implementing preemptive steel business strategies in the face of increasing uncertainty in the domestic and overseas markets and he is judged to be the right person to expand the steel business and improve profitability based on his expertise and extensive experience in the marketing fields.
| |
Chung, Chang-Hwa (3-5) | The candidate has smoothly supported various projects promoted by the company based on his abundant experience and expertise in the field of public relations and external cooperation.
He is considered to be the right person to lead improvement of organizational culture and employee competency through innovation in work culture to support future growth strategies. |
● Agenda 4: Election of Outside Directors
[Description of the Proposal]
Pursuant to Article 382 of the Korean Commercial Act, Article 28 and 30 of the Company’s Articles of Incorporation, we request the Ordinary General Meeting of Shareholders to appoint Outside Directors of the Company as follows.
| • | Number of Outside Directors to be Elected: 2 Directors |
| • | Candidates |
| Name | Date of Birth | Professional Experience | Term | |||||
| Recommended by | Period | Details | ||||||
Yoo, Young-Sook (4-1) |
May 29, 1955
| March 1994 ~Present January 2020 ~Present 2014
2014 2011~2013 2009 2007 1990 | Principal Research Scientist, Korea Institute of Science and Technology(KIST)
Chairperson of the Board(non-permanent), Climate Change Center
Director(non-permanent), Research Institute of Industrial Science & Technology Co-President, Climate Change Center Minister, Ministry of Environment Vice President, KIST Head of Biological Science Research, KIST Senior Research Scientist, KIST | 3 Years | ||||
Director Candidate Recommendation and Management Committee
| ||||||||
Kwon, Tae-Kyun (4-2) |
November 28, 1955
| 2015~Present 2014~2020 2017~2019 2010 2009 2008 2007 2006 2001 1996 1992 | Senior Adviser, Yulchon LLC. Outside Director, SAMSUNG ELECTRO-MECHANICS CO., LTD. Outside Director, MIRAE ASSET DAEWOO CO., LTD. Ambassador, Korea to the United Arab Emirates Chief Administrator, Public Procurement Service Head of Trade and Investment Office, Ministry of Knowledge Economy Deputy Minister for Free Economic Zone Planning, MOFE Commissioner, Korea Financial Intelligence Unit, MOFE Economic Councilor, OECD Representative Finance and Economy Adviser, Office of the President Country Officer, Asian Development Bank | 3 Years | ||||
Director Candidate Recommendation and Management Committee
| ||||||||
| • | Candidates’ plan to fulfill duties as Outside Directors |
| Name | Working Plan | |
Yoo, Young-Sook (4-1) | To contribute to the decision-making of the Board of Directors, based on experience and expertise in the environment fields, on strengthening ESG such as climate change and low carbon economy, which are emerging as important corporate management agendas.
The candidate is well aware of environmental issues and trends in the international community, including participation of the United Nations Climate Change Conference every year since her days as the Minister in the Ministry of Environment. As the Chairperson of the Climate Change Center, the candidate is expected to contribute to the establishment of developmental and sound corporate policies by utilizing a wide range of domestic and international environment-related networks and information.
The candidate intends to abide by the duties of Outside Directors with transparent and independent position, and to contribute to corporate social responsibility and sustainability management. |
Kwon, Tae-Kyun (4-2) | The candidate intends to serve as a member of the Board of Directors based on his various experiences and expertise in finance and investment-related fields such as the Asian Development Bank and the Ministry of Finance and Economy.
After retiring from public office in 2013, the candidate has served as an advisory roles in the fields of domestic and foreign investment of companies, such as the visiting research fellow at Korea Institute for International Economic Policy and the invited research fellow at the Institute for Foreign Economic Policy, the advisory committee member of the Saemangeum Development Agency, the adjunct professor at the Korea Human Resource Development Institute for Health & Welfare, and the Chairman of the Professional Infrastructure Developers Association, and intends to contribute to the Board of Directors through constructive suggestions in the related fields.
As an Outside Director, the candidate, with transparent and independent position, intends to represent rights and interests of interested parties such as the company and shareholders in balanced ways, and intends to perform progressive role for soundness of the company and reasonable checks on the company’s businesses. |
| • | Recommendation for the candidate by the Board of Directors |
| Name | Grounds | |
Yoo, (4-1) | As an expert in the fields of environment, who served as the Minister at the Ministry of Environment, the candidate continues to carry out wide range of activities in the domestic and foreign environment fields, including the Chairperson of the Board at the Climate Change Center.
The candidate is expected to greatly contribute to the company’s management and the Board operations related to ESG, which is growing in importance in the future. | |
Kwon, Tae-Kyun (4-2) | As a financial expert who worked in the Asian Development Bank and financial departments of the public institutions, the candidate continues his wide range of activities in the related fields such as overseas expansion of companies and domestic investments of foreign companies by utilizing his financial expertise even after retirement from the public office.
The candidate also has high degree of understanding of corporate governance by serving as an outside director of other companies for many years, and is expected to greatly contribute to the company’s management and the Board operations. |
| * | The candidates has no relation with the largest shareholder and no transactions with POSCO for the past three years. |
| - | In the case of the candidate Kwon, Tae Kyun, the company has transactions with Yulchon LLC. but has no transaction with the candidate. |
| - | POSCO and Yulchon LLC. had some spot-based transactions. However, the candidate Kwon, Tae Kyun had his investment advisory roles mainly with middle eastern regions and he has not conducted any advisory roles to POSCO. |
| * | The candidates stated and signed that they do not have any legal issues to be qualified for outside directors. |
● Agenda 5: Election of an Outside Director to Become an Audit Committee Member
[Description of the Proposal]
Pursuant to Article 542-12 of the Korean Commercial Act and Article 48 of the Company’s Articles of Incorporation, we request the Ordinary General Meeting of Shareholders to appoint an Outside Director to become an Audit Committee Member of the Company as follows.
| • | Candidate |
| Name | Date of Birth | Professional Experience | Term | |||||
Recommended by | Period | Details | ||||||
Kim, Sung-Jin |
April 18, 1949
| March 2018 ~March 2021 2011 2009 2006 2004 2003 2003 1998
1975 | Outside Director, POSCO
Adjunct Professor, Department of Economics, Seoul National University President, Hankyong National University Minister, Ministry of Maritime Affairs and Fisheries Administrator, Small and Medium Business Administration Secretary to the President on Policy Planning and Industrial Policy Director General, Social Budget Bureau at National Budget Administration Director General, Finance & Economy Bureau and Industrial Policy Bureau at the Office of the Prime Minister Deputy Director, Economic Planning Bureau and Budget Bureau | 3 Years | ||||
Director Candidate Recommendation and Management Committee
| ||||||||
| • | Candidate’s plan to fulfill duties as an Outside Director |
| Name | Working Plan | |
| Kim, Sung-Jin | Based on various experiences, such as the Minister at the Ministry of Maritime Affairs and Fisheries, and the Administrator of the Small and Medium Business Administration, and the President of Hankyong National University, the candidate will examine risks of management activities in legal and practical aspects, and will intend to provide constructive and concrete advice from the perspective of shareholders and interested parties of the company.
Based on experiences in the POSCO’s Board of Directors and the Special Committees such as Evaluation and Compensation Committee, and Finance and Related Party Transactions Committee over the past three years, the candidate intends to make suggestions for the company’s corporate governance to operate in reasonable manners.
As an Outside Director, the candidate, with transparent and independent position, will take progressive roles for internal soundness and reasonable checks of the company’s businesses. |
| • | Recommendation for the candidate by the Board of Directors |
| Name | Grounds | |
| Kim, Sung-Jin | As an industrial policy expert who served as the Minister at the Ministry of Maritime Affairs and Fisheries after serving as an industrial policy secretary and the Administrator of the Small and Medium Business Administration, the candidate has contributed over the past three years to the areas of company policies, risk inspections, and the Board operations based on his abundant experience and knowledge in related fields. The candidate is recommended as an Outside Director as he is expected to continue to contribute to the operation and development of the Board of Directors. |
| * | The candidate has no relation with the largest shareholder and no transactions with POSCO for the past three years. |
| * | The candidate stated and signed that they do not have any legal issue to be qualified for director. |
● Agenda 6: Approval of the Ceiling Amount of Total Remuneration for Directors
[Description of the Proposal]
Pursuant to Article 388 of the Korean Commercial Act and Article 36 of the Company’s Articles of Incorporation, we request the Ordinary General Meeting of Shareholders to approve the ceiling amount of the total remuneration for Directors in the fiscal year 2021.
| ☐ | The ceiling amount (to be approved) of the total remuneration in the FY 2021: |
KRW 10.0 billion
| ☐ | The ceiling amount (approved) of the total remuneration in the FY 2020: |
KRW 10.0 billion
POSCO
and Subsidiaries
Consolidated Financial Statements
December 31, 2020 and 2019
1
Table of Contents
| Page | ||||
Consolidated Financial Statements | ||||
Consolidated Statements of Financial Position | 3 | |||
Consolidated Statements of Comprehensive Income | 5 | |||
Consolidated Statements of Changes in Equity | 6 | |||
Consolidated Statements of Cash Flows | 8 | |||
 | The following Consolidated Financial Statements based on K-IFRS are provided for reference of investors and are NOT finally reviewed by independent auditors. The following Consolidated Financial Statements do NOT contain Notes to the Consolidated Financial Statements. |
The audited Consolidated Financial Statements will be provided to the POSCO homepage (http://www.posco.co.kr) and to the SEC (https://www.sec.gov) in early March, 2021.
2
POSCO and Subsidiaries
Consolidated Statements of Financial Position
As of December 31, 2020 and 2019
| (in millions of Won) | Notes | December 31, 2020 | December 31, 2019 | |||||||||||
Assets | ||||||||||||||
Cash and cash equivalents | 4,5,23 | 4,754,644 | 3,514,872 | |||||||||||
Trade accounts and notes receivable, net | 6,17,23,29,37 | 8,120,619 | 9,078,351 | |||||||||||
Other receivables, net | 7,23,37 | 1,494,239 | 1,581,517 | |||||||||||
Other short-term financial assets | 8,23 | 11,709,209 | 8,996,049 | |||||||||||
Inventories | 9 | 9,051,790 | 10,920,320 | |||||||||||
Current income tax assets | 35 | 49,480 | 45,930 | |||||||||||
Assets held for sale | 10 | 34,210 | 74,158 | |||||||||||
Other current assets | 16 | 616,623 | 631,177 | |||||||||||
|
|
|
| |||||||||||
Total current assets | 35,830,814 | 34,842,374 | ||||||||||||
|
|
|
| |||||||||||
Long-term trade accounts and notes receivable, net | 6,23 | 86,423 | 198,785 | |||||||||||
Other receivables, net | 7,23,37 | 1,195,962 | 1,140,879 | |||||||||||
Other long-term financial assets | 8,23 | 1,561,807 | 1,669,389 | |||||||||||
Investments in associates and joint ventures | 11 | 3,876,249 | 3,927,755 | |||||||||||
Investment property, net | 13 | 994,781 | 878,227 | |||||||||||
Property, plant and equipment, net | 14,33 | 29,400,141 | 29,925,973 | |||||||||||
Goodwill and other Intangible assets, net | 15,33 | 4,449,432 | 4,908,473 | |||||||||||
Defined benefit assets, net | 21 | 86,149 | 4,280 | |||||||||||
Deferred tax assets | 35 | 1,335,154 | 1,237,285 | |||||||||||
Other non-current assets | 16 | 270,061 | 325,241 | |||||||||||
|
|
|
| |||||||||||
Total non-current assets | 43,256,159 | 44,216,287 | ||||||||||||
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|
| |||||||||||
Total assets | 79,086,973 | 79,058,661 | ||||||||||||
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3
POSCO and Subsidiaries
Consolidated Statements of Financial Position, Continued
As of December 31, 2020 and 2019
| (in millions of Won) | Notes | December 31, 2020 | December 31, 2019 | |||||||||||||
Liabilities | ||||||||||||||||
Trade accounts and notes payable | 23,37 | 3,755,513 | 3,422,922 | |||||||||||||
Short-term borrowings and current installments of long-term borrowings | 4,17,23 | 8,677,529 | 8,548,212 | |||||||||||||
Other payables | 18,23 | 1,845,266 | 1,879,508 | |||||||||||||
Other short-term financial liabilities | 19,23,37 | 141,404 | 77,827 | |||||||||||||
Current income tax liabilities | 35 | 366,476 | 396,616 | |||||||||||||
Liabilities directly associated with the assets held for sale | 25 | 8 | ||||||||||||||
Provisions | 20 | 443,273 | 360,495 | |||||||||||||
Other current liabilities | 22,29 | 1,625,482 | 1,638,102 | |||||||||||||
|
|
|
| |||||||||||||
Total current liabilities | 16,854,968 | 16,323,690 | ||||||||||||||
|
|
|
| |||||||||||||
Long-term trade accounts and notes payable | 23,37 | 22,323 | 20,067 | |||||||||||||
Long-term borrowings, excluding current installments | 4,17,23 | 11,820,078 | 11,893,401 | |||||||||||||
Other payables | 18,23 | 558,924 | 585,129 | |||||||||||||
Other long-term financial liabilities | 19,23 | 133,588 | 31,494 | |||||||||||||
Defined benefit liabilities, net | 21 | 141,785 | 181,011 | |||||||||||||
Deferred tax liabilities | 35 | 1,320,726 | 1,691,498 | |||||||||||||
Long-term provisions | 20 | 522,969 | 458,154 | |||||||||||||
Other non-current liabilities | 22 | 37,020 | 79,510 | |||||||||||||
|
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|
| |||||||||||||
Total non-current liabilities | 14,557,413 | 14,940,264 | ||||||||||||||
|
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| |||||||||||||
Total liabilities | 31,412,381 | 31,263,954 | ||||||||||||||
|
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| |||||||||||||
Equity | ||||||||||||||||
Share capital | 24 | 482,403 | 482,403 | |||||||||||||
Capital surplus | 24 | 1,310,547 | 1,376,251 | |||||||||||||
Hybrid bonds | 25 | 199,384 | 199,384 | |||||||||||||
Reserves | 26 | (1,380,918 | ) | (1,157,980 | ) | |||||||||||
Treasury shares | 27 | (2,391,523 | ) | (1,508,303 | ) | |||||||||||
Retained earnings | 46,111,457 | 45,080,117 | ||||||||||||||
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|
| |||||||||||||
Equity attributable to owners of the controlling company | 44,331,350 | 44,471,872 | ||||||||||||||
Non-controlling interests | 25 | 3,343,242 | 3,322,835 | |||||||||||||
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|
| |||||||||||||
Total equity | 47,674,592 | 47,794,707 | ||||||||||||||
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| |||||||||||||
Total liabilities and equity | 79,086,973 | 79,058,661 | ||||||||||||||
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4
POSCO and Subsidiaries
Consolidated Statements of Comprehensive Income
For the years ended December 31, 2020 and 2019
| (in millions of Won, except per share information) | Notes | 2020 | 2019 | |||||||||||
Revenue | 28,29,37 | 57,792,796 | 64,366,848 | |||||||||||
Cost of sales | 29,31,34,37 | (53,072,390 | ) | (58,116,495 | ) | |||||||||
|
|
|
| |||||||||||
Gross profit | 4,720,406 | 6,250,353 | ||||||||||||
Selling and administrative expenses | 30,34 | |||||||||||||
Reversal of (impairment loss) on trade accounts and notes receivable | 23 | (829 | ) | 28,105 | ||||||||||
Other administrative expenses | 31 | (1,939,602 | ) | (2,041,286 | ) | |||||||||
Selling expenses | (376,940 | ) | (368,318 | ) | ||||||||||
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| |||||||||||
Operating profit | 2,403,035 | 3,868,854 | ||||||||||||
Share of profit of equity-accounted investees, net | 11 | 133,297 | 273,741 | |||||||||||
Finance income and costs | 23,32 | |||||||||||||
Finance income | 2,677,499 | 1,872,143 | ||||||||||||
Finance costs | (2,892,402 | ) | (2,242,063 | ) | ||||||||||
Other non-operating income and expenses | 33 | |||||||||||||
Impairment loss on other receivables | 23 | (53,105 | ) | (80,323 | ) | |||||||||
Other non-operating income | 402,336 | 450,891 | ||||||||||||
Other non-operating expenses | 34 | (645,574 | ) | (1,089,965 | ) | |||||||||
|
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|
| |||||||||||
Profit before income tax | 2,025,086 | 3,053,278 | ||||||||||||
Income tax expense | 35 | (236,934 | ) | (1,070,641 | ) | |||||||||
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|
| |||||||||||
Profit | 1,788,152 | 1,982,637 | ||||||||||||
Other comprehensive income (loss) | ||||||||||||||
Items that will not be reclassified subsequently to profit or loss: | ||||||||||||||
Remeasurements of defined benefit plans | 21 | 36,575 | (117,152 | ) | ||||||||||
Net changes in fair value of equity investments at fair value through other comprehensive income | 23 | (77,627 | ) | (10,541 | ) | |||||||||
Items that are or may be reclassified subsequently to profit or loss: | ||||||||||||||
Capital adjustment arising from investments in equity-accounted investees | (28,609 | ) | 66,134 | |||||||||||
Foreign currency translation differences | (147,956 | ) | 208,117 | |||||||||||
Gains or losses on valuation of derivatives | 23 | (331 | ) | (90 | ) | |||||||||
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Other comprehensive income (loss), net of tax | (217,948 | ) | 146,468 | |||||||||||
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|
| |||||||||||
Total comprehensive income | 1,570,204 | 2,129,105 | ||||||||||||
|
|
|
| |||||||||||
Profit attributable to: | ||||||||||||||
Owners of the controlling company | 1,602,148 | 1,835,087 | ||||||||||||
Non-controlling interests | 186,004 | 147,550 | ||||||||||||
|
|
|
| |||||||||||
Profit | 1,788,152 | 1,982,637 | ||||||||||||
|
|
|
| |||||||||||
Total comprehensive income attributable to: | ||||||||||||||
Owners of the controlling company | 1,415,132 | 1,997,731 | ||||||||||||
Non-controlling interests | 155,072 | 131,374 | ||||||||||||
|
|
|
| |||||||||||
Total comprehensive income | 1,570,204 | 2,129,105 | ||||||||||||
|
|
|
| |||||||||||
Basic and diluted earnings per share (in Won) | 36 | 20,165 | 22,823 | |||||||||||
5
POSCO and Subsidiaries
Consolidated Statements of Changes in Equity
For the years ended December 31, 2020 and 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, 2019 | 482,403 | 1,410,551 | 199,384 | (1,404,368 | ) | (1,532,728 | ) | 44,216,018 | 43,371,260 | 3,388,291 | 46,759,551 | |||||||||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||||||||||||
Profit | — | — | — | — | — | 1,835,087 | 1,835,087 | 147,550 | 1,982,637 | |||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | ||||||||||||||||||||||||||||||||||||||
Remeasurements of defined benefit plans, net of tax | — | — | — | — | — | (100,218 | ) | (100,218 | ) | (16,934 | ) | (117,152 | ) | |||||||||||||||||||||||||||
Capital adjustment arising from investments in equity-accounted investees, net of tax | — | — | — | 58,308 | — | — | 58,308 | 7,826 | 66,134 | |||||||||||||||||||||||||||||||
Net changes in fair value of equity investments at fair value through other comprehensive income, net of tax | — | — | — | 10,228 | — | (20,769 | ) | (10,541 | ) | — | (10,541 | ) | ||||||||||||||||||||||||||||
Foreign currency translation differences, net of tax | — | — | — | 215,181 | — | — | 215,181 | (7,064 | ) | 208,117 | ||||||||||||||||||||||||||||||
Gain or losses on valuation of derivatives, net of tax | — | — | — | (86 | ) | — | — | (86 | ) | (4 | ) | (90 | ) | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
Total comprehensive income | — | — | — | 283,631 | — | 1,714,100 | 1,997,731 | 131,374 | 2,129,105 | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
Transactions with owners of the controlling company, recognized directly in equity: | ||||||||||||||||||||||||||||||||||||||||
Year-end dividends | — | — | — | — | — | (400,006 | ) | (400,006 | ) | (60,274 | ) | (460,280 | ) | |||||||||||||||||||||||||||
Interim dividends | — | — | — | — | — | (480,694 | ) | (480,694 | ) | — | (480,694 | ) | ||||||||||||||||||||||||||||
Changes in subsidiaries | — | — | — | — | — | — | — | 1,281 | 1,281 | |||||||||||||||||||||||||||||||
Changes in ownership interests in subsidiaries | — | (48,538 | ) | — | — | — | — | (48,538 | ) | (128,587 | ) | (177,125 | ) | |||||||||||||||||||||||||||
Interest of hybrid bonds | — | — | — | — | — | (9,200 | ) | (9,200 | ) | (7,294 | ) | (16,494 | ) | |||||||||||||||||||||||||||
Disposal of treasury shares | — | 12,576 | — | — | 24,425 | — | 37,001 | — | 37,001 | |||||||||||||||||||||||||||||||
Others | — | 1,662 | — | (37,243 | ) | — | 39,899 | 4,318 | (1,956 | ) | 2,362 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
Total transactions with owners of the controlling company | — | (34,300 | ) | — | (37,243 | ) | 24,425 | (850,001 | ) | (897,119 | ) | (196,830 | ) | (1,093,949 | ) | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
Balance as of December 31, 2019 | 482,403 | 1,376,251 | 199,384 | (1,157,980 | ) | (1,508,303 | ) | 45,080,117 | 44,471,872 | 3,322,835 | 47,794,707 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
6
POSCO and Subsidiaries
Consolidated Statements of Changes in Equity, Continued
For the years ended December 31, 2020 and 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 | 482,403 | 1,376,251 | 199,384 | (1,157,980 | ) | (1,508,303 | ) | 45,080,117 | 44,471,872 | 3,322,835 | 47,794,707 | |||||||||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||||||||||||
Profit | — | — | — | — | — | 1,602,147 | 1,602,147 | 186,005 | 1,788,152 | |||||||||||||||||||||||||||||||
Other comprehensive income (loss) | ||||||||||||||||||||||||||||||||||||||||
Remeasurements of defined benefit plans, net of tax | — | — | — | — | — | 44,704 | 44,704 | (8,129 | ) | 36,575 | ||||||||||||||||||||||||||||||
Capital adjustment arising from investments in equity-accounted investees, net of tax | — | — | — | (16,760 | ) | — | — | (16,760 | ) | (11,849 | ) | (28,609 | ) | |||||||||||||||||||||||||||
Net changes in fair value of equity investments at fair value through other comprehensive income, net of tax | — | — | — | (74,210 | ) | — | (3,417 | ) | (77,627 | ) | — | (77,627 | ) | |||||||||||||||||||||||||||
Foreign currency translation differences, net of tax | — | — | — | (137,071 | ) | — | — | (137,071 | ) | (10,885 | ) | (147,956 | ) | |||||||||||||||||||||||||||
Gain or losses on valuation of derivatives, net of tax | — | — | — | (261 | ) | — | — | (261 | ) | (70 | ) | (331 | ) | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
Total comprehensive income | — | — | — | (228,302 | ) | — | 1,643,434 | 1,415,132 | 155,072 | 1,570,204 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
Transactions with owners of the controlling company, recognized directly in equity: | ||||||||||||||||||||||||||||||||||||||||
Year-end dividends | — | — | — | — | — | (320,462 | ) | (320,462 | ) | (60,517 | ) | (380,979 | ) | |||||||||||||||||||||||||||
Interim dividends | — | — | — | — | — | (277,723 | ) | (277,723 | ) | — | (277,723 | ) | ||||||||||||||||||||||||||||
Changes in subsidiaries | — | — | — | — | — | — | — | 22,303 | 22,303 | |||||||||||||||||||||||||||||||
Changes in ownership interests in subsidiaries | — | (27,716 | ) | — | — | — | — | (27,716 | ) | 162,674 | 134,958 | |||||||||||||||||||||||||||||
Repayment of redeemable convertible preferred shares | — | (33,581 | ) | — | — | — | — | (33,581 | ) | (245,000 | ) | (278,581 | ) | |||||||||||||||||||||||||||
Interest of hybrid bonds | — | — | — | — | — | (9,225 | ) | (9,225 | ) | (7,354 | ) | (16,579 | ) | |||||||||||||||||||||||||||
Acquisition of treasury shares | — | — | — | — | (883,220 | ) | — | (883,220 | ) | — | (883,220 | ) | ||||||||||||||||||||||||||||
Others | — | (4,407 | ) | — | 5,364 | — | (4,684 | ) | (3,727 | ) | (6,771 | ) | (10,498 | ) | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
Total transactions with owners of the controlling company | — | (65,704 | ) | — | 5,364 | (883,220 | ) | (612,094 | ) | (1,555,654 | ) | (134,665 | ) | (1,690,319 | ) | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
Balance as of December 31, 2020 | 482,403 | 1,310,547 | 199,384 | (1,380,918 | ) | (2,391,523 | ) | 46,111,457 | 44,331,350 | 3,343,242 | 47,674,592 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
7
POSCO and Subsidiaries
Consolidated Statements of Cash Flows
For the years ended December 31, 2020 and 2019
| (in millions of Won) | Notes | 2020 | 2019 | |||||||||||||
Cash flows from operating activities | ||||||||||||||||
Profit | 1,982,637 | |||||||||||||||
Adjustments for: | ||||||||||||||||
Depreciation | 3,156,181 | 3,029,868 | ||||||||||||||
Amortization | 465,558 | 431,247 | ||||||||||||||
Finance income | (1,185,934 | ) | (855,382 | ) | ||||||||||||
Finance costs | 1,390,983 | 1,197,705 | ||||||||||||||
Income tax expense | 236,934 | 1,070,641 | ||||||||||||||
Impairment loss on property, plant and equipment | 27,040 | 442,700 | ||||||||||||||
Gain on disposal of property, plant and equipment | (15,548 | ) | (49,367 | ) | ||||||||||||
Loss on disposal of property, plant and equipment | 142,126 | 120,227 | ||||||||||||||
Impairment loss on intangible assets | 197,776 | 191,021 | ||||||||||||||
Gain on disposal of investments in subsidiaries, associates and joint ventures | (88,836 | ) | (27,836 | ) | ||||||||||||
Loss on disposal of investments in subsidiaries, associates and joint ventures | 14,632 | 6,539 | ||||||||||||||
Share of profit of equity-accounted investees | (133,297 | ) | (273,741 | ) | ||||||||||||
Impairment loss on assets held for sale | 5,030 | 38,328 | ||||||||||||||
Expenses related to post-employment benefit | 248,324 | 240,425 | ||||||||||||||
Impairment loss on trade and other receivables | 53,934 | 52,218 | ||||||||||||||
Loss on valuation of inventories | 54,014 | 96,201 | ||||||||||||||
Increase to provisions | 184,984 | 76,538 | ||||||||||||||
Others, net | (21,076 | ) | (38,463 | ) | ||||||||||||
|
|
|
| |||||||||||||
| 4,732,825 | 5,748,869 | |||||||||||||||
|
|
|
| |||||||||||||
Changes in operating assets and liabilities | 39 | 2,803,586 | (40,789 | ) | ||||||||||||
Interest received | 368,539 | 320,336 | ||||||||||||||
Interest paid | (624,399 | ) | (760,175 | ) | ||||||||||||
Dividends received | 267,923 | 266,774 | ||||||||||||||
Income taxes paid | (650,889 | ) | (1,512,997 | ) | ||||||||||||
|
|
|
| |||||||||||||
Net cash provided by operating activities | 6,004,655 | |||||||||||||||
|
|
|
| |||||||||||||
8
POSCO and Subsidiaries
Consolidated Statements of Cash Flows, Continued
For the years ended December 31, 2020 and 2019
| (in millions of Won) | Notes | 2020 | 2019 | |||||||||||||
Cash flows from investing activities | ||||||||||||||||
Acquisitions of short-term financial instruments | (43,307,727 | ) | (36,063,406 | ) | ||||||||||||
Proceeds from disposal of short-term financial instruments | 40,500,759 | 35,415,822 | ||||||||||||||
Increase in loans | (329,236 | ) | (450,638 | ) | ||||||||||||
Collection of loans | 138,270 | 398,838 | ||||||||||||||
Acquisitions of securities | (338,063 | ) | (296,827 | ) | ||||||||||||
Proceeds from disposal of securities | 448,125 | 62,492 | ||||||||||||||
Acquisitions of investment in associates and joint ventures | (141,785 | ) | (160,404 | ) | ||||||||||||
Proceeds from disposal of investment in associates and joint ventures | 18,401 | 16,458 | ||||||||||||||
Acquisitions of investment property | (976 | ) | (19,344 | ) | ||||||||||||
Proceeds from disposal of investment property | 250 | 12,057 | ||||||||||||||
Acquisitions of property, plant and equipment | (3,154,412 | ) | (2,519,219 | ) | ||||||||||||
Proceeds from disposal of property, plant and equipment | (42,530 | ) | 51,800 | |||||||||||||
Acquisitions of intangible assets | (300,645 | ) | (299,587 | ) | ||||||||||||
Proceeds from disposal of intangible assets | 79,011 | 24,161 | ||||||||||||||
Proceeds from disposal of assets held for sale | 37,680 | 67,246 | ||||||||||||||
Collection of lease receivables | 61,567 | 56,889 | ||||||||||||||
Payment for acquisition of business, net of cash acquired | — | (37,345 | ) | |||||||||||||
Cash received from disposal of business, net of cash transferred | 77,488 | 45,360 | ||||||||||||||
Others, net | (5,442 | ) | 12,788 | |||||||||||||
|
|
|
| |||||||||||||
Net cash used in investing activities | (6,259,265 | ) | (3,682,859 | ) | ||||||||||||
|
|
|
| |||||||||||||
Cash flows from financing activities | 39 | |||||||||||||||
Proceeds from borrowings | 4,410,387 | 5,646,977 | ||||||||||||||
Repayment of borrowings | (3,644,057 | ) | (3,746,845 | ) | ||||||||||||
Proceeds from (repayment of) short-term borrowings, net | 35,525 | (2,194,727 | ) | |||||||||||||
Capital contribution from non-controlling interests | 176,062 | 29,475 | ||||||||||||||
Payment of cash dividends | (659,145 | ) | (946,218 | ) | ||||||||||||
Acquisition of treasury shares | (883,219 | ) | — | |||||||||||||
Payment of interest of hybrid bonds | (16,539 | ) | (16,494 | ) | ||||||||||||
Repayment of lease liabilities | (217,312 | ) | (167,427 | ) | ||||||||||||
Repayment of redeemable convertible preferred shares | (278,581 | ) | — | |||||||||||||
Others, net | (13,989 | ) | (116,920 | ) | ||||||||||||
|
|
|
| |||||||||||||
Net cash used in financing activities | (1,090,868 | ) | (1,512,179 | ) | ||||||||||||
|
|
|
| |||||||||||||
Effect of exchange rate fluctuation on cash held | (95,272 | ) | 61,764 | |||||||||||||
|
|
|
| |||||||||||||
Net increase in cash and cash equivalents | 1,240,332 | 871,381 | ||||||||||||||
Cash and cash equivalents at beginning of the period | 5 | 3,515,246 | 2,643,865 | |||||||||||||
|
|
|
| |||||||||||||
Cash and cash equivalents at end of the period | 5,10 | 4,755,578 | 3,515,246 | |||||||||||||
|
|
|
| |||||||||||||
9
POSCO
Separate Financial Statements
December 31, 2020 and 2019
1
Table of Contents
| Separate Financial Statements | ||
Separate Statements of Financial Position | 3 | |
Separate Statements of Comprehensive Income | 5 | |
Separate Statements of Changes in Equity | 6 | |
Separate Statements of Cash Flows | 7 | |
Separate Statements of Appropriation of Retained Earnings | 9 | |
| The following Separate Financial Statements, based on K-IFRS, are provided for reference of investors and are NOT finally reviewed by independent auditors. The following Separate Financial Statements do NOT contain Notes to the Separate Financial Statements. |
The audited Separate Financial Statements will be provided to the POSCO homepage (http://www.posco.co.kr) and to the SEC (https://www.sec.gov) in early March, 2021.
2
POSCO
Separate Statements of Financial Position
As of December 31, 2020 and 2019
| (in millions of Won) | Notes | December 31, 2020 | December 31, 2019 | |||||||||||
Assets | ||||||||||||||
Cash and cash equivalents | 4,5,22 | 1,822,660 | 978,139 | |||||||||||
Trade accounts and notes receivable, net | 6,22,36 | 3,693,535 | 3,987,041 | |||||||||||
Other receivables, net | 7,22,36 | 279,555 | 321,352 | |||||||||||
Other short-term financial assets | 8,22 | 9,607,632 | 7,858,979 | |||||||||||
Inventories | 9,33 | 4,093,829 | 4,988,530 | |||||||||||
Assets held for sale | 10 | 32,244 | 53,924 | |||||||||||
Other current assets | 15 | 50,498 | 28,101 | |||||||||||
|
|
|
| |||||||||||
Total current assets | 19,579,953 | 18,216,066 | ||||||||||||
|
|
|
| |||||||||||
Long-term trade accounts and notes receivable, net | 6,22 | 2,456 | 6,014 | |||||||||||
Other receivables, net | 7,22 | 84,037 | 56,468 | |||||||||||
Other long-term financial assets | 8,22 | 1,072,817 | 1,257,896 | |||||||||||
Investments in subsidiaries, associates and joint ventures | 11,32 | 14,883,152 | 15,069,857 | |||||||||||
Investment property, net | 12 | 149,617 | 158,077 | |||||||||||
Property, plant and equipment, net | 13,32 | 20,216,932 | 20,132,199 | |||||||||||
Intangible assets, net | 14 | 621,926 | 708,915 | |||||||||||
Defined benefit assets, net | 20 | 76,501 | — | |||||||||||
Other non-current assets | 15 | 107,578 | 105,274 | |||||||||||
|
|
|
| |||||||||||
Total non-current assets | 37,215,016 | 37,494,700 | ||||||||||||
|
|
|
| |||||||||||
Total assets | 56,794,969 | 55,710,766 | ||||||||||||
|
|
|
| |||||||||||
3
POSCO
Separate Statements of Financial Position, Continued
As of December 31, 2020 and 2019
| (in millions of Won) | Notes | December 31, 2020 | December 31, 2019 | |||||||||||
Liabilities | ||||||||||||||
Trade accounts and notes payable | 22,36 | 1,258,470 | 667,551 | |||||||||||
Short-term borrowings and current installments of long-term borrowings | 4,16,22,38 | 2,408,392 | 1,146,476 | |||||||||||
Other payables | 17,22,36,38 | 1,127,323 | 1,113,003 | |||||||||||
Other short-term financial liabilities | 18,22,38 | 12,788 | 10,969 | |||||||||||
Current income tax liabilities | 34 | 137,858 | 237,293 | |||||||||||
Provisions | 19 | 63,604 | 21,007 | |||||||||||
Other current liabilities | 21 | 80,676 | 135,147 | |||||||||||
|
|
|
| |||||||||||
Total current liabilities | 5,089,111 | 3,331,446 | ||||||||||||
|
|
|
| |||||||||||
Long-term borrowings, excluding current installments | 4,16,22,38 | 5,346,944 | 5,191,537 | |||||||||||
Other payables | 17,22,38 | 220,612 | 222,802 | |||||||||||
Other long-term financial liabilities | 18,22,38 | 122,154 | 46,925 | |||||||||||
Defined benefit liabilities, net | 20 | — | 54,146 | |||||||||||
Deferred tax liabilities | 34 | 848,317 | 1,190,553 | |||||||||||
Long-term provisions | 19 | 52,602 | 53,942 | |||||||||||
Other non-current liabilities | 21 | 525 | 5,230 | |||||||||||
|
|
|
| |||||||||||
Total non-current liabilities | 6,591,154 | 6,765,135 | ||||||||||||
|
|
|
| |||||||||||
Total liabilities | 11,680,265 | 10,096,581 | ||||||||||||
|
|
|
| |||||||||||
Equity | ||||||||||||||
Share capital | 23 | 482,403 | 482,403 | |||||||||||
Capital surplus | 23 | 1,339,289 | 1,252,220 | |||||||||||
Hybrid bonds | 24 | 199,384 | 199,384 | |||||||||||
Reserves | 25 | (296,626 | ) | (183,930 | ) | |||||||||
Treasury shares | 26 | (2,391,523 | ) | (1,508,303 | ) | |||||||||
Retained earnings | 27 | 45,781,777 | 45,372,411 | |||||||||||
|
|
|
| |||||||||||
Total equity | 45,114,704 | 45,614,185 | ||||||||||||
|
|
|
| |||||||||||
Total liabilities and equity | 56,794,969 | 55,710,766 | ||||||||||||
|
|
|
| |||||||||||
4
POSCO
Separate Statements of Comprehensive Income
For the years ended December 31, 2020 and 2019
| (in millions of Won, except per share information) | Notes | 2020 | 2019 | |||||||||||
Revenue | 28,36 | 26,509,920 | 30,373,511 | |||||||||||
Cost of sales | 9,20,30,33,36 | (24,323,352 | ) | (26,700,874 | ) | |||||||||
|
|
|
| |||||||||||
Gross profit | 2,186,568 | 3,672,637 | ||||||||||||
Selling and administrative expenses | ||||||||||||||
Reversal of (impairment loss) on trade accounts and notes receivable | 22,33 | (4,372 | ) | 4,535 | ||||||||||
Other administrative expenses | 20,29,30,33 | (807,626 | ) | (851,140 | ) | |||||||||
Selling expenses | 29,33 | (239,373 | ) | (239,673 | ) | |||||||||
|
|
|
| |||||||||||
Operating profit | 1,135,197 | 2,586,359 | ||||||||||||
|
|
|
| |||||||||||
Finance income and costs | ||||||||||||||
Finance income | 22,31 | 1,230,684 | 868,682 | |||||||||||
Finance costs | 22,31 | (820,201 | ) | (508,242 | ) | |||||||||
|
|
|
| |||||||||||
Other non-operating income and expenses | ||||||||||||||
Reversal of (impairment loss) on other receivables | 22,33 | 487 | (286 | ) | ||||||||||
Other non-operating income | 32 | 146,548 | 238,210 | |||||||||||
Other non-operating expenses | 32,33 | (674,835 | ) | (1,353,474 | ) | |||||||||
|
|
|
| |||||||||||
Profit before income tax | 1,017,880 | 1,831,249 | ||||||||||||
Income tax expense | 34 | (52,017 | ) | (655,537 | ) | |||||||||
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|
|
| |||||||||||
Profit | 965,863 | 1,175,712 | ||||||||||||
Other comprehensive income (loss) | ||||||||||||||
Items that will not be reclassified subsequently to profit or loss: | ||||||||||||||
Remeasurements of defined benefit plans | 20 | 53,816 | (80,554 | ) | ||||||||||
Net changes in fair value of equity investments at fair value through other comprehensive income | 8,22,25 | (115,599 | ) | 14,955 | ||||||||||
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|
|
| |||||||||||
Total comprehensive income | 904,080 | 1,110,113 | ||||||||||||
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|
| |||||||||||
Basic and diluted earnings per share (in Won) | 35 | 12,123 | 14,592 | |||||||||||
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5
POSCO
Separate Statements of Changes in Equity
For the years ended December 31, 2020 and 2019
| (in millions of Won) | Share capital | Capital surplus | Hybrid bonds | Reserves | Treasury shares | Retained earnings | Total | |||||||||||||||||||||||||
Balance as of January 1, 2019 | 482,403 | 1,154,775 | 199,384 | (207,191 | ) | (1,532,728 | ) | 45,175,459 | 45,272,102 | |||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||||
Profit | — | — | — | — | — | 1,175,712 | 1,175,712 | |||||||||||||||||||||||||
Other comprehensive income (loss) | ||||||||||||||||||||||||||||||||
Remeasurements of defined benefit plans, net of tax | — | — | — | — | — | (80,554 | ) | (80,554 | ) | |||||||||||||||||||||||
Net changes in fair value of equity investments at fair value through other comprehensive income, net of tax | — | — | — | 23,261 | — | (8,306 | ) | 14,955 | ||||||||||||||||||||||||
Transactions with owners of the Company, recognized directly in equity: | ||||||||||||||||||||||||||||||||
Year-end dividends | — | — | — | — | — | (400,006 | ) | (400,006 | ) | |||||||||||||||||||||||
Interim dividends | — | — | — | — | — | (480,694 | ) | (480,694 | ) | |||||||||||||||||||||||
Interest of hybrid bonds | — | — | — | — | — | (9,200 | ) | (9,200 | ) | |||||||||||||||||||||||
Disposal of treasury shares | — | 12,576 | — | — | 24,425 | — | 37,001 | |||||||||||||||||||||||||
Business combination | — | 84,869 | — | — | — | — | 84,869 | |||||||||||||||||||||||||
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| |||||||||||||||||||
Balance as of December 31, 2019 | 482,403 | 1,252,220 | 199,384 | (183,930 | ) | (1,508,303 | ) | 45,372,411 | 45,614,185 | |||||||||||||||||||||||
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Balance as of January 1, 2020 | 482,403 | 1,252,220 | 199,384 | (183,930 | ) | (1,508,303 | ) | 45,372,411 | 45,614,185 | |||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||||
Profit | — | — | — | — | — | 965,863 | 965,863 | |||||||||||||||||||||||||
Other comprehensive income (loss) | ||||||||||||||||||||||||||||||||
Remeasurements of defined benefit plans, net of tax | — | — | — | — | — | 53,816 | 53,816 | |||||||||||||||||||||||||
Net changes in fair value of equity investments at fair value through other comprehensive income, net of tax | — | — | — | (112,696 | ) | — | (2,903 | ) | (115,599 | ) | ||||||||||||||||||||||
Transactions with owners of the Company, recognized directly in equity: | ||||||||||||||||||||||||||||||||
Year-end dividends | — | — | — | — | — | (320,462 | ) | (320,462 | ) | |||||||||||||||||||||||
Interim dividends | — | — | — | — | — | (277,723 | ) | (277,723 | ) | |||||||||||||||||||||||
Interest of hybrid bonds | — | — | — | — | — | (9,225 | ) | (9,225 | ) | |||||||||||||||||||||||
Aquisition of treasury shares | — | — | — | — | (883,220 | ) | — | (883,220 | ) | |||||||||||||||||||||||
Others | — | 87,069 | — | — | — | — | 87,069 | |||||||||||||||||||||||||
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| |||||||||||||||||||
Balance as of December 31, 2020 | 482,403 | 1,339,289 | 199,384 | (296,626 | ) | (2,391,523 | ) | 45,781,777 | 45,114,704 | |||||||||||||||||||||||
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6
POSCO
Separate Statements of Cash Flows
For the years ended December 31, 2020 and 2019
| (in millions of Won) | Notes | 2020 | 2019 | |||||||||||
Cash flows from operating activities | ||||||||||||||
Profit | 965,863 | 1,175,712 | ||||||||||||
Adjustments for : | ||||||||||||||
Expenses related to post-employment benefit | 126,191 | 119,177 | ||||||||||||
Depreciation | 2,273,633 | 2,160,124 | ||||||||||||
Amortization | 106,926 | 77,190 | ||||||||||||
Impairment loss(revesal of) on trade and other receivables | 3,885 | (4,248 | ) | |||||||||||
Finance income | (779,150 | ) | (598,303 | ) | ||||||||||
Finance costs | 457,851 | 284,334 | ||||||||||||
Loss on valuation of inventories | 4,735 | 7,677 | ||||||||||||
Gain on disposal of property, plant and equipment | (12,340 | ) | (25,583 | ) | ||||||||||
Loss on disposal of property, plant and equipment | 181,454 | 114,874 | ||||||||||||
Impairment losses on property, plant and equipment | 27,846 | 222,036 | ||||||||||||
Gain on disposal of Intangible assets | (197 | ) | (1,013 | ) | ||||||||||
Gain on disposal of investments in subsidiaries, associates and joint venture | (24,334 | ) | (5,300 | ) | ||||||||||
Impairment losses on investments in subsidiaries, associates and joint venture | 360,894 | 865,769 | ||||||||||||
Gain on disposal of assets held for sale | (22,734 | ) | (30,262 | ) | ||||||||||
Loss on disposal of assets held for sale | 5,383 | — | ||||||||||||
Impairment loss on assets held for sale | 9,093 | 8,021 | ||||||||||||
Gain on disposal of emissions rights | (24,566 | ) | (6,122 | ) | ||||||||||
Gain on valuation of emissions rights | — | (25,440 | ) | |||||||||||
Increase to provisions | 73,037 | (10,398 | ) | |||||||||||
Cost of emissions | 9,972 | — | ||||||||||||
Income tax expense | 52,017 | 655,537 | ||||||||||||
Others | (239 | ) | 5,623 | |||||||||||
Changes in operating assets and liabilities | 38 | 1,550,039 | (438,041 | ) | ||||||||||
Interest received | 197,306 | 147,683 | ||||||||||||
Interest paid | (230,537 | ) | (160,950 | ) | ||||||||||
Dividends received | 232,492 | 284,648 | ||||||||||||
Income taxes paid | (386,850 | ) | (1,221,790 | ) | ||||||||||
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| |||||||||||
Net cash provided by(used in) operating activities | 5,157,670 | 3,600,955 | ||||||||||||
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7
POSCO
Separate Statements of Cash Flows, Continued
For the years ended December 31, 2020 and 2019
| (in millions of Won) | Notes | 2020 | 2019 | |||||||||||||
Cash flows from investing activities | ||||||||||||||||
Decrease in deposits | 3,336,891 | 2,747,009 | ||||||||||||||
Proceeds from disposal of short-term financial instruments | 36,302,634 | 32,210,156 | ||||||||||||||
Collection of short-term loans | 2,709 | 62 | ||||||||||||||
Proceeds from disposal of Current Portion of debt security | 360,109 | 54 | ||||||||||||||
Proceeds from disposal of equity securities | 7,937 | 24,890 | ||||||||||||||
Proceeds from disposal of other securities | 8,183 | 4,522 | ||||||||||||||
Proceeds from disposal of investments in subsidiaries, associates and joint ventures | 24,247 | 14,278 | ||||||||||||||
Proceeds from disposal of intangible assets | 1,047 | 5,587 | ||||||||||||||
Proceeds from disposal of assets held for sale | 225,292 | 523,128 | ||||||||||||||
Proceeds from disposal of emission rights | 66,143 | 12,693 | ||||||||||||||
Cash inflow from business combination | — | 2,171 | ||||||||||||||
Increase in deposits | (3,380,247 | ) | (2,792,821 | ) | ||||||||||||
Acquisition of short-term financial investments | (38,160,724 | ) | (32,670,040 | ) | ||||||||||||
Payment of long-term loans | (21,923 | ) | (5,697 | ) | ||||||||||||
Acquisition of debt securities | (220,110 | ) | (290,102 | ) | ||||||||||||
Acquisition of equity securities | — | (11,144 | ) | |||||||||||||
Acquisition of other securities | (20,795 | ) | (1,710 | ) | ||||||||||||
Acquisition of investment in subsidiaries, associates and joint ventures | (236,226 | ) | (491,175 | ) | ||||||||||||
Acquisition of property, plant and equipment | (2,450,816 | ) | (1,903,966 | ) | ||||||||||||
Payment for disposal of property, plant and equipment | (102,354 | ) | (41,003 | ) | ||||||||||||
Acquisition of intangible assets | (101,427 | ) | (132,661 | ) | ||||||||||||
Payment for acquisition of business, net of cash acquired | — | (1,156,953 | ) | |||||||||||||
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| |||||||||||||
Net cash used in investing activities | (4,359,430 | ) | (3,952,722 | ) | ||||||||||||
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| |||||||||||||
Cash flows from financing activities | ||||||||||||||||
Proceeds from borrowings | 3,566,518 | 2,950,068 | ||||||||||||||
Increase in long-term financial liabilities | 537 | 3,287 | ||||||||||||||
Proceeds from disposals of derivatives | 5,873 | 9,682 | ||||||||||||||
Receipt of government grants | 954 | 3,273 | ||||||||||||||
Repayment of borrowings | (1,941,838 | ) | (959,404 | ) | ||||||||||||
Repayment of lease liabilities | (63,684 | ) | (39,194 | ) | ||||||||||||
Decrease in long-term financial liabilities | (974 | ) | (1,587 | ) | ||||||||||||
Payment of cash dividends | (598,627 | ) | (881,169 | ) | ||||||||||||
Acquisition of treasury shares | (883,220 | ) | — | |||||||||||||
Payment of interest of hybrid bonds | (9,225 | ) | (9,200 | ) | ||||||||||||
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| |||||||||||||
Net cash provided by financing activities | 76,314 | 1,075,756 | ||||||||||||||
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| |||||||||||||
Effect of exchange rate fluctuation on cash held | (30,033 | ) | (5,069 | ) | ||||||||||||
Net increase in cash and cash equivalents | 844,521 | 718,920 | ||||||||||||||
Cash and cash equivalents at beginning of the period | 5 | 978,139 | 259,219 | |||||||||||||
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Cash and cash equivalents at end of the period | 5 | 1,822,660 | 978,139 | |||||||||||||
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8
POSCO
Separate Statements of Appropriation of Retained Earnings
As of December 31, 2020 and 2019
| (in millions of Won) | 2020 | 2019 | ||||||||||
Retained earnings before appropriation | ||||||||||||
Unappropriated retained earnings carried over from prior year | 581,946 | 593,208 | ||||||||||
Remeasurements of defined benefit plans | 53,816 | (80,554 | ) | |||||||||
Loss on disposal of equity securities | (2,902 | ) | (8,306 | ) | ||||||||
Interests of hybrid bonds | (9,225 | ) | (9,200 | ) | ||||||||
Interim dividends | (277,723 | ) | (480,694 | ) | ||||||||
(Dividends (ratio) per share | ||||||||||||
Profit for the period | 965,863 | 1,175,712 | ||||||||||
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| |||||||||
| 1,311,775 | 1,190,166 | |||||||||||
Transfer from discretionary reserve | ||||||||||||
Appropriated retained earnings for dividends | — | 412,243 | ||||||||||
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| |||||||||
| — | 412,243 | |||||||||||
Appropriation of retained earnings | ||||||||||||
Dividends | 342,565 | 320,463 | ||||||||||
(Dividends (ratio) per share | ||||||||||||
Appropriated retained earnings for business expansion | 370,000 | 700,000 | ||||||||||
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| |||||||||
| 712,565 | 1,020,463 | |||||||||||
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Unappropriated retained earnings carried forward to subsequent year | 599,210 | 581,946 | ||||||||||
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9