1Q 2012 Operating Performance

April 20, 2012

1Q Operating Performance

Consolidated Performance
- POSCO Operating Performance 1Q Key Business Activities Business Environment 2012 Business Plan

Figures provided in this presentation are based on unaudited financial statements of the Company. Certain contents in this presentaiton are subject to change during the course of auditing process.

Income

Consolidated Performance

Steel/construction slowed while seasonality made favorable turn in energy sector

Revenue
(in billion KRW)

Operating Income
(in billion KRW)

Net Income
(in billion KRW)

18,688 16,251

1,356 1,018

1,093

1,020 643

16,309
Operating Margin 8.3%

801
Profit Margin

5.4%

4.9%

6.7%
2011.1Q

5.5% 3.9% 2011.4Q 2012.1Q Net Income

2011.1Q
(in billion KRW)

2011.4Q 2012.1Q Revenue 11.1Q 11.4Q

2011.1Q

2011.4Q 2012.1Q Operating Income

12.1Q

11.1Q

11.4Q

12.1Q

11.1Q

11.4Q

12.1Q

Steel Support Trading E&C ICT Energy ChemMatl

13,449
6,904 1,721 219 342

14,820
7,708 2,862 336 598

14,025
6,695 1,461 209 722

1,102
89 96 4 32

911
88 149 10 20

481
67 17

1,070
27 62 3 24

999
91 98 7 19

538

6
37

2
93

4
77

294

617

604

23

27

18

16

16

10

Based on aggregation of each sector

3/23

Financial Structure
Liabilities and equity slightly increased
Assets
(in billion KRW)

Consolidated Performance

Liabilities
(in billion KRW) (in billion KRW)

Equity
38,100 38,946
11.3% 92.0%
Return on Equity

78,409 71,150

79,501

40,730

41,401

37,679

32,204
Liability to Equity

92.5%

10.1% 6.3%

82.7%

2011.1Q

2011.4Q 2012.1Q Assets 11.1Q 62,859 10,431 6,927 683 2,792 766 11.4Q 69,321 12,121 8,765 743 3,080 1,511

2011.1Q

2011.4Q 2012.1Q Liabilities

2011.1Q

2011.4Q 2012.1Q
Equity

(in billion KRW)

12.1Q 69,801 12,452 9,055 857 3,090 1,520

11.1Q 20,788 8,298 4,000 441 2,112 416

11.4Q 24,061 9,707 5,554 465 2,381 821

12.1Q 23,836 10,075 5,784 547 2,250 817

11.1Q 42,070 2,133 2,928 242 679 351

11.4Q 45,260 2,414 3,211 278 699 689

12.1Q 45,965 2,377 3,271 310 840 702

Steel Support Trading E&C ICT Energy Chem & Matl

Based on aggregation of each sector

4/23

Consolidated Performance

Summarized Statements of Income

2011.1Q Revenue Gross Income (Gross Margin) CG&A Other Operating Income Operating Income (Operating Margin) Equity Method Gains Finance Item Gains
Foreign Currency Transaction & Translation Gains

(in billion KRW)

2011.4Q 18,688

2012.1Q 16,309

QoQ(%)

16,251

12.7

2,172
(13.4%) 869 53 1,356 (8.3%) 21 101 210

1,993
(10.7%) 1,025 50 1,018 (5.4%) 22 226 239

1,678
(10.3%) 934 57 801 (4.9%) 11 70 250

15.8

8.9 14.0 21.3

50.0 69.0 4.6

Net Income

1,093
(6.7%)

1,020
(5.5%)

643
(3.9%)

37.0

(Net Profit Margin)

Owners of the Company

1,091

1,008

637

36.8
5/23

Consolidated Performance

Summarized Statements of Financial Position

Current Assets Cash Equivalents Notes Receivable Inventory Long-term Assets

(in billion KRW)

2011.1Q 28,719 6,924 10,001 10,398 42,431

2011.4Q 33,557 8,255 11,451 12,284 44,852

2012.1Q 33,348 8,087 11,968 11,488 46,153

QoQ (%)

0.6 2.0 4.5 6.5 2.9

Other Financial Assets

Fixed Assets Total Assets Liabilities Current Liabilities Long-term Liabilities
(Interest Bearing Debt)

6,266
25,694 71,150 32,204 18,261 13,943 (21,960) 38,946 37,034

5,126
28,453 78,409 37,679 19,605 18,074 (26,812) 40,730 38,356

5,504
28,967 79,501 38,100 19,786 18,314 (26,560) 41,401 38,908

7.4
1.8 1.4 1.1 0.9 1.3 0.9 1.6 1.4 1.4
6/23

Equity
Controlling Interests

Total Liabilities & Equity

71,150

78,409

79,501

Cash equivalents: cash & cash equivalents, other short-term financial assets

1Q Operating Performance
- Consolidated Performance

POSCO Operating Performance

1Q Key Business Activities Business Environment 2012 Business Plan

Production & Sales

POSCO Operating Performance

Slightly decreased due to facility rationalization & foundry BF shutdown

Crude Steel Production
(in thousand tons)

Finished Product Sales

(in thousand tons)

9,633

9,426 8,956
8,195
43.2%
Export Ratio

8,940

8,776

35.7%

40.0%

2011.1Q

2011.4Q

2012.1Q

2011.1Q

2011.4Q

2012.1Q

2011.1Q Carbon Steel

STS 8,465 475

2011.4Q
9,112 521

2012.1Q
Domestic 8,895 531 Export Inventory

2011.1Q 5,266 2,929 886

2011.4Q 5,086 3,870 944

2012.1Q 5,266 3,510 974

Facility rationalization and shutdown - Rationalization: (P) #1Wire Rod(Jan.10~17), (G) #2HR(Feb.15~21), #2PCM(Feb.22~29), #2CAL(Feb.22~Mar.22) - Shutdown: (P) Foundry blast furnace (Feb.1 ~, 650Kt/yr) 8/23

Sales by Product

POSCO Operating Performance

Sales to auto and home appliances remain stable while shipbuilding decreased
Sales by Demand Industry
(in thousand tons)

1,765

<Auto> 1,866

1,895

<Home Appliances> 645 542

<Shipbuilding>

1,049 545

1,016

881

2011.1Q
(in thousand tons)

2011.4Q

2012.1Q

2011.1Q

2011.4Q

2012.1Q

2011.1Q

2011.4Q

2012.1Q

2011.1Q
Hot-Rolled Plate* Wire Rod 1,919 1,544 515

2011.4Q
2,307 1,619 530

2012.1Q
2,052 1,644 511

YoY

QoQ

+6.9% +6.5% 0.8%

11.1% +1.5% 3.6%

Cold-Rolled
Electrical Steel

3,164
243

3,166
233

3,352
231

+5.9%
4.9%

+5.9%
0.9%

S T S
Others

433
377

479
622

485
501

+12.0%
+32.9%

+1.3%
19.5%

Total
* Includes HR Plate

8,195

8,956

8,776

+7.1%

2.0%
9/23

Income

POSCO Operating Performance

Revenue and operating income dropped due to decrease in sales price

Revenue
(in billon KRW)

Operating Income
(in billion KRW)

10,066

9,460
9,112

921
Operating 10.1% Margin

692
6.9%

422
4.5%

2011.1Q

2011.4Q

2012.1Q

2011.1Q

2011.4Q

2012.1Q

Sluggish demand led to decrease in sales price and volume

Product Price Trend
(thousand KRW/ton)

Profitability worsened due to time lag in using low-price raw materials

2011.1Q 942

2011.4Q 982

2012.1Q 929

QoQ

Carbon Steel Sales Price*

5.4%

* Weighted average of domestic and export prices

10/23

1Q Operating Performance
- Consolidated Performance - POSCO Operating Performance

1Q Key Business Activities

Business Environment 2012 Business Plan

POSCO Key Activities

1Q Key Business Activities

Strengthened contingency mgmt via Crisis Monitoring and Prevention Center

Preemptive response system to monitor/evaluate core indices of each sector and incorporate the results into business planning Flexible management planning through monthly adjustment to swiftly respond to market change Profitability improvement to cut logistics cost by group-wide synergy, save energy consumption, and reduce raw material inventory (Iron ore: 324kt, Coal: 154kt from 11/E)

Marketing activities to boost sluggish domestic/overseas demand

< Domestic Market Expansion >
Increase long-term contract with large customers Protect against low-price imports by target marketing Create new demand through EVI activities : Order taken for the entire materials for constructing Lotte World Tower (TMCP, etc.) : Sales of AHSS for new car models Santafe & K9

< Sales/Product Mix >

Reduce export portion : mainly low-return export to SE Asia (202kt)
Adjust product mix focused on high value-added : Increase export to Latin Ame. with auto steel (+24kt) : Produce HR GO after reducing slab production Sales/Product Mix (2011.4Q 2012.1Q) 43 517

Domestic M/S (2011 2012.1Q)

(%)

41

44 39

43 37

38

40 %

406 kt

Total Product

HR

Plate

Export Ratio

Slab Sales 12/23

1Q Key Business Activities

Expanded infrastructure to produce high value-added products

Completion of Pohang CGL construction (Jan09 ~ Apr12)
Largest size in Korea producing 750K tons (HGI 600K tons/yr, PO 150K tons/yr) Raise high-quality construction materials market share and replace thick GI
Pohang CGL

Expansion of Vietnam VST facility (Dec10 ~ Mar12)

Increase of STS CR by 150Kt/yr leads to rise in CR ratio (62% 67%)

Improved financial structure

Sales of investment shares
Sold stakes in KB(1.0%)/Hana(0.92%) Financial Group, SKT(2.90%) Scheduled to sell Kyobo Life shares(24.0%) held by Daewoo Intl(1H) IPO of POSCO Specialty Steel within year with lead managers selected in April
(trillion KRW)

CAPEX 9.5

8.9

Capex Reduction
While maintaining investment in core areas of overseas up/downstream and raw materials, adjusted schedule for non-urgent and less important investment : Maintenance 0.1 tr/ Raw materials 0.3 tr/ New growth & others 0.2 tr(KRW)
Previous plan Modified

13/23

1Q Key Business Activities

Continuous overseas projects focused on potential demand growth by region

[Overseas Project by Product]
Product Slab & HR CR Region Local Corporation Production
(thousand tons)

Progress Land prep. 88% Civil works 15% Civil works 12% Pilot operation Elec. works 39% Civil works 42% Civil works 57% Civil works 26%

Completion Aug '15 Dec '13 Jun '14 May '12 Dec '12 Jun '13 Oct '13 Apr '13

Auto Steel
Elec. Steel STS

Brazil CSP Indonesia PT. KRAKATAU POSCO India POSCO-Maharastra India POSCO-Maharastra China Shunde POSCO Coated Steel Mexico POSCO-Mexico India POSCO-ESI Turkey POSCO-ASSAN TST

3,000 3,000 1,800 450 450 500 300 200

* Construction Process: Land prepartion Civil works Electrical works Pilot operation Completion

[PT. KRAKATAU POSCO]

[Guangdong CGL]

14/23

1Q Key Business Activities

Set up integrated production system for secondary battery cathode materials

Signed HOA* with Bolivian state-run company Comibol for JV on lithium ion secondary battery(Mar12)
- Comibol supplies lithium carbonate produced from Uyuni Lake and other cathode materials inc. Mn and Co - Joint project with Korea Resources Corporation(KORES) - Plant construction in Bolivia (14.1H)
* HOA: Head of Agreement
Material supply

COMIBOL

Materials Technology Product

Kor-Bol JV
RIST
POSTECH Non-evaporating method to directly extract lithium from brine

POPSCO ESM RIST

Cathode production technology

Developed technology to extract lithium from brine with non-evaporating method(Feb12, RIST)

[Bolivian JV Structure]

- Extraction time shortened compared to evaporating method (12months 1month), improved recovery rate (50 80%) - Applied 30 overseas and Korean patents of major technology and secured IPR - Separately extract Mg K simultaneously Ca B

4,000 ton/yr 1,800 ton/yr

2011 2012

Established POSCO ESM w/ Phoenix Materials(Mar12)

- Annual cathode production capacity 1,800 4,000 tons - Stable supply to domestic secondary battery market that is expected to grow to 10 tr KRW size

[Cathode production by POSCO ESM]

15/23

Subsidiaries Key Activities

POSCO Specialty Steel: Facility expansion and IPO

1Q Key Business Activities

Steel

- Completion of #3 Steelmaking Plant (+240Kt/yr) and rationalization of rolling mill - IPO: to be listed within the year after selecting lead managers in April

Daewoo Intl: Increase of POSCO product sales and gas field project on track

Trading

- Overseas sales of POSCO steel products: 12.1Q 940K tons (+37% YoY) - Myanmar gas field project: Progress 71% in Mar12, commercial production scheduled in May13

POSCO E&C: Strong order-taking despite slow construction market (2.5 tr KRW)

E&C
ICT

- Orders outside POSCO Group expanded inc. Ansan Combined Cycle Power Plant (700 bn KRW), Chile Coal-fired Power Plant (400 bn KRW)

POSCO ICT: Continuous order-taking led by domestic and overseas steel sector
- 1Q orders of 365 bn KRW inc. Brazil integrated mill(63.8 bn KRW), Pohang STS continous caster

POSCO Energy: Facility expansion and renewable energy biz. into high gear

Energy

- Started construction of Pohang residual gas power plant(300MW) in Feb. using byproduct gas from #3 Finex (progress rate 11.2%) - Secure RPS* quota by completing construction of solar power plant in Shinan(2MW) in Jan.

POSCO CHEMTECH: Continued to pursue carbon material business

Chem & Matl

- Concluded Shareholders Agreement w/ Mitsubishi Chemical/Corporation for needle coke biz.(Mar)

POSCO M-TECH: Expanded profitability and arena of material business

- Increase in AL deoxidizer productivity and eng. sales led to 3.9bn KRW 1Q op.income(+34.5%, YoY) - Domestically produce high-purity alumina: plant construciton started in Apr.(capacity 2Kt/yr)

* RPS : Renewable Portfolio Standard

16/23

1Q Operating Performance
- Consolidated Performance - POSCO Operating Performance 1Q Key Business Activities

Business Environment
2012 Business Plan

. .

Global Steel Market

2Q Chinese steel price forecasted to slightly rebound
March Chinese steel PMI approached the recovery baseline 50 2Q HR domestic price outlook: $620/ton (+$22 QoQ)

Business Environment

3% annual demand growth expected thanks to sound demand in emerging markets and U.S. economic recovery
Chinas demand recovery forcasted(2H) due to investment boost caused by govnt change U.S. recovery to be noticeable(2H) backed by job market and consumption improvement

<Chinese Steel PMI & Spot Prices>

47.9 Chinese Steel PMI 12.Jan ($) 639 657 658 610 620 598 2012. 1Q 2012. 2Q 49.3

<Demand Outlook by Country>

(million tons)

42.8

2009 U.S. 59 120 551 58 25 1,140

2010 80 145 588 65 36 1,301

2011 89 153 624 68 41 1,373

2012 93 151 648 72 42 1,420

YoY 5% 1% 4% 6% 4% 3%

Feb

Mar

EU China India Russia

2011. 1Q

2011. 2Q

2011. 3Q

2011. 4Q

World

* Chinese steel PMI: China Federation of Logistics and Purchasing(CFLP) Chinese domestic HR price(excl. VAT): Mysteel

* World Steel Association, POSRI

18/23

Domestic Steel Market

Business Environment

Steel demand expected to increase backed by recovery of major industries

Auto
Despite slow domestic market, production units likely to increase with export volume up
Production(thousand units): 4,272 (10) 4,657 (11) 4,773 (12) (12. 1Q: 1,175 / 2Q: 1,230)

Construction investment likely to boost supported by private construction market Construction despite slump in civil engineering sector
Construction investment (tr KRW): 153 (10) 146 (11) 147 (12) (12. 1Q: 28 / 2Q: 40)

Slight recovery in building and new orders due to seasonality effect

Shipbuilding

Building(mil GT): 32.4 (10) 35.5 (11) 32.5 (12) (12. 1Q : 7.9 / 2Q : 8.4) Orders(mil GT): 29.0 (10) 25.4 (11) 22.6 (12) (12. 1Q : 4.8 / 2Q : 5.9)
* POSRI(Apr 12)

(thousand tons)

<Steel Demand and Supply Outlook>

2010 2011 56,391 2012 56,950 1/4 13,950 2/4 15,450 QoQ +10.8%

Nominal Consumption

52,390

Export
Production Import

24,881
65,942 11,329

29,091
72,283 13,199

30,980
74,900 13,030

7,580
18,200 3,330

7,300
19,100 3,650

3.7%
+4.9% +9.6%

Inc. Semi-Product

25,090

23,121

21,580

5,430

6,250

+15.1%
* POSRI(Apr 12)

19/23

Raw Materials
Iron Ore 1 Q
With steel market hitting the bottom and seasonal inventory increase, limited rise in spot price within the range U$140-150/ton

Business Environment Coal 1 Q

Downward trend driven by demand fall due to slump in steel industry and normalized supply helped by climate condition 2Q Price: HCC U$206/ton(12.3%QoQ), PCI 153.3 contract, Semi-Soft under negotiation

2Q Price: Fine ore FOB U$130/ton Probability of price hike exists due to Chinese seasonal construction demand increase, but limited due to macroeconomic uncertainties With decrease in export from India, tight supply forecast to continue

2 Q

2 Q

BMAs strike lingered and Force Majeure declared due to Australian flood end March Spot trade climbed due to expectation for Chinese demand recovery After bouncing off the bottom end of March, gradual price rise expected Coal Spot PriceTrend

Iron Ore Spot Price Trend

($/ton)
173 181 179

($/ton)
179
175 142 142 151 137 138 178 150 147

313
330 307

308 298 273 236 252 229 221 216 209

214

Apr 2011

Jul 2011

Oct 2011

Jan 2012

Apr 2012

Apr 2011

Jul 2011

Oct 2011

Jan 2012

Apr 2012

*Platts 62%Fe IODEX CFR China (monthly avg.)

*Platts HCC Peak Downs FOB Australia (monthly avg.)

20/23

Stainless Steel
Sales 1 Q
Higher sales price early year due to strong Ni price, but decreased after Feb. w/ Ni price falling - Recognized as the lowest level due to larger decrease compared to Ni

Business Environment

Raw Materials
Ni: Price increased due to prospect for Chinas relaxation policy early year, but fell again after Feb. with rising concern over European crisis

1 Q

Cr: 1Q benchmark price fell due to EU mills production decrease affected by Eurozone recession

Gradual recovery from April lowest

2 Q

Supply demand balance expected as production is adjusted to improve profitability and demand recovers during peak season - Chinese mills plan to cut April production by 20~40K tons STS CR Price Trend

Stable Ni price, rising Cr price trend

2 Q

Ni: Steady trend under peak season in STS market in spite of supply increase forecast Cr: Price hike expected as South African suppliers cut production due to rising cost including power price Nickel Chrome Price Trend

Europe Korea

($/ton) 3,680 3,430 3,020 3,240 3,010 2,720 3,190 2,970 2,680 3,240 3,020 2,730

4,160 3,600

Nickel

24.3 22.1 18.3 19.7

(thousand $/ton)

26.9

18.7

China 3,110

Chrome
2.9

3.2
2.8

3.2

2.8

2.7

2011. 2Q

2011. 3Q

2011. 4Q

2012. 1Q

2012. 2Q

2011. 1Q

2011. 2Q

2011. 3Q

2011. 4Q

2012. 1Q

2012. 2Q

* Ni : LME Nickel price(quarterly average) * Cr : Japanese quarterly BM price

21/23

 1Q Operating Performance - Consolidated Performance

- POSCO Operating Performance

1Q Key Business Activities Business Environment 2012 Business Plan

. .

2012 Business Plan

Preemptively respond to crisis and tighten budget on the group level
2011 Revenue
- POSCO Revenue Crude Steel Production Product Sales
(in trillion KRW) () (in million tons) ()

2012 70.6
37.7

68.9
39.2
37.3 34.5

38.4
35.4

Investment
- POSCO Investment

(in trillion KRW) ()

8.1
5.7

8.9
4.2

These data represent the companys internal targets and cannot be utilized as ground for investment decision.

23/23

1Q 2012 Operating Performance

April 20, 2012

24