Equibles

6-K

POSCO HOLDINGS INC. (PKX)

6-K 2024-05-31 For: 2024-05-31
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Added on April 08, 2026
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OFFOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR15D-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of May, 2024

Commission File Number: 1-13368

POSCO HOLDINGS INC.

(Translation of registrant’s name into English)

POSCO Center,440 Teheran-ro, Gangnam-gu, Seoul, Korea, 06194

(Address of principal executive offices)

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 ☐

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POSCO HOLDINGS INC. is furnishing under cover of Form 6-K:

Exhibit 99.1: An English-language translated documents of POSCO HOLDINGS INC.’s 1Q Quarterly Report for the year 2024.

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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 HOLDINGS INC.
(Registrant)
Date: May 31, 2024 By /s/ Kim, Seung-Jun
(Signature)
Name: Kim, Seung-Jun
Title: Executive Vice President
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Exhibit 99.1

LOGO

QURATERLY REPORT

(From January 1, 2024 to March 31, 2024)

THIS IS AN ENGLISH TRANSLATION OF THE QUATERLY REPORT ORIGINALLY PREPARED IN THE KOREAN LANGUAGE (IN SUCH FORM AS REQUIRED BY THE KOREAN FINANCIAL SERVICES COMMISSION). THIS ENGLISH TRANSLATION IS NOT OFFICIAL AND IS PROVIDED FOR INFORMATION PURPOSES ONLY.

UNLESS EXPRESSLY STATED OTHERWISE, ALL INFORMATION CONTAINED HEREIN IS PRESENTED ON BOTH CONSOLIDATED AND NON-CONSOLIDATED BASIS IN ACCORDANCE WITH THE KOREAN-INTERNATIONAL FINANCIAL REPORTING STANDARDS (K-IFRS) WHICH DIFFER IN CERTAIN RESPECTS FROM GENERALLY ACCEPTED ACCOUNTING PRINCIPLES IN CERTAIN OTHER COUNTRIES, INCLUDING THE UNITED STATES. WE HAVE MADE NO ATTEMPT TO IDENTIFY OR QUANTIFY THE IMPACT OF THESE DIFFERENCES.

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QUARTERLY REPORT

(From January 1, 2024 to March 31, 2024)

To:  Korean Financial Services Commission and Korea Exchange

/s/ Jeong, Ki-Seop
Jeong, Ki-Seop
President and Representative Director
POSCO HOLDINGS INC.<br> <br>6261 Donghaean-ro, Pohang-si, Nam-gu, Gyungsangbuk-do, Korea
Telephone: +82-54-220-0114
/s/ Kim, Seung-Jun
---
Kim, Seung-Jun
Head of Finance· IR team, Executive Vice President
POSCO HOLDINGS INC.<br> <br>6261 Donghaean-ro, Pohang-si, Nam-gu, Gyungsangbuk-do, Korea
Telephone: +82-054-220-0114

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TABLE OF CONTENTS

I.   Overview 4
II. Business 5
III.  Financial Statements 35
ø Attachment: Independent auditors’ review reports on consolidated and separate financial statements<br>
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I. OVERVIEW

Company Overview part is omitted on the quarterly report. Please refer to our Annual Report(20-F) disclosed on April 29, 2024 or summarized version of Business Report on March 29, 2024.

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II. BUSINESS

1. Overview

A. Classification of Business

We classify our business into six segments:

Steel segment, Green Infrastructure (Trading segment), Green Infrastructure (Construction segment),

Green Infrastructure (Logistics and etc. segment), Green Materials and Energy, and Others.

B. Summary of Financial Status of Segment

(In millions of KRW)
Business<br><br><br>Segment 2024.1Q 2023 2022
Sales Operating<br>Income (Loss) Sales Operating<br>Income (Loss) Sales Operating<br>Income (Loss)
Steel 15,444,214 339,059 63,538,698 2,556,779 70,649,647 3,236,220
Green Infrastructure<br><br><br>(Trading) 10,525,644 256,134 42,943,752 1,133,512 49,589,760 872,279
Green Infrastructure<br><br><br>(Construction) 2,534,963 33,465 10,267,503 197,352 8,885,491 293,344
Green Infrastructure<br><br><br>(Logistics and etc.) 1,092,006 49,952 3,945,953 202,010 7,425,508 377,919
Green Materials and Energy 1,156,142 6,435 4,821,886 -161,334 3,388,760 143,452
Others 923,695 812,640 1,562,214 1,106,332 1,169,536 843,682
Total 31,676,664 1,497,685 127,080,006 5,034,651 141,108,702 5,766,896
* It is based on aggregated basis including internal transactions among affiliates.
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* Since POSCO Energy has been merged into POSCO International as of January 2023, the performance of POSCO Energy<br>prior to the merger has been included into Green Infrastructure (Logistics and etc.).
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2. Business Status of Segments

A. Steel

There are 83 consolidated companies in the steel segment, including POSCO and POSCO Steeleon, and overseas companies including PT.Krakatau POSCO in Indonesia, POSCO (Zhangjiagang) Stainless Steel Co., Ltd. in China and overseas processing centers.

∎POSCO

(1) Summary ofBusiness

POSCO produces steel materials such as hot rolled, cold rolled and stainless steel at Pohang Steelworks and Gwangyang Steelworks which is the largest steel mill in the world.

The steel industry is a key industry that has taken pivotal roles in the national economic development. Steel is used as a basic material in various manufacturing fields such as automobiles, shipbuilding, home appliances, and construction, and has a close connection with the front industry due to its characteristics.

In 2023, the cumulative global crude steel production increased year-on-year due to robust demand from emerging economies such as India, despite sluggish industrial economies of developed countries and a slump in the Chinese real estate market.

Global Crude Steel Production

(Millions of Tons, %)
Crude Steel Production 2024. 1Q 2023 2022
Global 469 1,850 1,832
Korea<br><br><br>(Ratio) 16<br> <br>(3.5 %) 67<br> <br>(3.6 %) 66<br> <br>(3.6 %)
ø Source: World Steel Association (www.worldsteel.org)
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The steel industry is affected by the business cycle and the ups and downs of the demand industry.

Therefore, steel demand is not only related to trend of market economy, but also to situation of demand industries like shipbuilding, automobiles, home appliances, constructions and etc.

The steel industry is a capital and technology-intensive industry that requires enormous initial investments. Steel companies are focusing on reducing production costs and securing price competitiveness.

POSCO aims to maintain its competitive edge in the domestic market by strengthening long-term partnerships with key and leading customers and responding to global protectionism based on comprehensive response systems such as marketing, R&D, technology services, and production. In addition, we are expanding steel processing centers to meet the needs of global front industries such as automobiles, shipbuilding, home appliances, and construction, while strengthening our global sales network by operating steel production bases Indonesia(upstream) and India(cold-rolling mills). We are continuously considering expanding overseas production capacity, including the joint venture of Hebei Steel and Steel in China in 2023.

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The company plans to upgrade its customer and market structure by expanding its high value-added World Top Premium products, while responding to customers’ diverse needs by launching an eco-friendly product line Greenate and developing hydrogen-reduced steel HyREX technology in line with the global low-carbon trend. In the steel industry, automobiles, shipbuilding, and construction are the main demand industries, and steel products are used as raw materials for these demand industries. In terms of sales, the proportion of domestic sale is 54% of total sales and export sales are around 46%, and by export region, the proportion of Japan, Europe, Southeast Asia, and India is high. POSCO maintains order based production and sales system, and to secure stable sales, the proportion of direct sales to customers in domestic sales is maintained at about 60%. POSCO continues to strive to strengthen its competitiveness in the midst of rapidly changing business environments such as the transition to a low-carbon eco-friendly era, accelerating technological innovation, and strengthening ESG management. The company’s competitive advantages include followings:

First, POSCO is promoting great transformation from current steelmaking process to a low-carbon, eco-friendly process.

Second, POSCO will upgrade ‘eco-friendly future product’ portfolio.

We will proactively respond to the growing demand for eco-friendly products and lead the high value-added market with the best innovative products. In order to contribute to the decarbonization of customers and society, we are expanding our low-carbon product lineup, and from 2026, we plan to produce high value-added products that reduce carbon emissions using a newly established electric furnace.

Third, POSCO implement ‘Meta-POSCO’ through digital transformation. Since 2017, the company has been gradually implementing Smart Factories that optimize, automate, and intelligentize facilities by using innovative digital technologies such as IoT, Big Data, and AI and Digital Twin models. Through deep learning that extracts optimal results by converting major variables that determine the state of the furnace into big data, Pohang Steelworks’ furnace #2 has been turned into an AI furnace.

Lastly, POSCO will realize a safe workplace without accidents and continue to strengthen ESG management. Safety is the highest value and corporate culture pursued by the company, and we are upgrading our safety system so that the company’s safety culture can leap to the highest level in the world. We are promoting the development of smart safety solutions using AI and IoT, and discovering potential risks in the field, strengthening safety activities that comply with standards.

POSCO, As an unlisted company, has no obligation to establish special committee under the board of directors, but it has not only established an ESG committee to strengthen its external communication with interested parties but also established an audit committee to support ESG governance.

(2) Market Share

(Millions of Tons, %)
Category 2024.1Q 2023 2022
Production Market share Production Market share Production Market share
Crude Steel Production 16 100 % 67 100 % 66 100 %
POSCO 9 53 % 36 53 % 34 52 %
Others 8 47 % 31 47 % 32 48 %
ø Source: World Steel Association (www.worldsteel.org)
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∎ POSCO STEELEON

POSCO Steeleon provides differentiated value through technology development and new market development with design/solution provision in both domestic and overseas surface treatment steel market.

The surface-treated steel market is divided into a general-purpose material and a high-end material market, and the general-purpose material market is highly competitive due to technological leveling and the influx of low-priced goods from China. On the other hand, we believe that the high-end material market can not only create high added value but also grow in terms of market size.

Though there are oversupply of domestic and foreign steel products and sluggish demand industries, POSCO Steeleon is striving to secure a stable profit base and expand market share by improving the competitiveness of high valued-added products such as aluminum coated sheets, high corrosion resistance galvanized steel sheets, Print/Lami color steel sheets and etc.

POSCO Steeleon is striving to strengthen its competitiveness in the high-end construction/exterior materials through research and development based on customers. In addition, POSCO Steeleon is preparing to expand its overseas business by securing a bridgehead in Southeast Asia, where rapid growth is expected through the operation of color steel sheet production line (50,000 tons) and coated steel sheet production line(20,000 ton) in Yangon, Myanmar.

∎ POSCOM-TECH

(1) Summary of Business

POSCO M-TECH is a specialized supplier of steel products packaging and steel supplementary materials such as aluminum deoxidizers which is needed to remove oversaturated oxygen in steelmaking process. In case of steel products packaging, POSCO M-TECH continuously develops packaging machines and materials. POSCO M-TECH is currently processing POSCO’s coil packing, and trying to apply new packaging technology, commercialize environmentally friendly packaging alternatives, and globalize the competitiveness of the packaging business in order to ensure that the coil packaging business continues as the company’s stable sales base in the future.

(2) BusinessAreas

Business Areas Major Goods and Services Major Customer
Steel raw material business Aluminum deoxidizer pellets, mini pellets, ingots and etc. POSCO
Steel product packaging business Steel product packaging service, maintenance of packaging facilities and etc.
Engineering business Steel Packaging Engineering, Mechanical Equipment and etc.
Consignment operation business Ferromanangan factory and etc.

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(3) Market Share

(Tons)
Category 2024.1Q 2023 2022
Sales Volume Market share Sales Volume Market share Sales Volume Market share
POSCO M-TECH 9,090 46.8 % 31,984 44.7 % 31,245 44.0 %
PJ Metal 10,345 53.2 % 39,600 55.3 % 39,700 56.0 %
Total 19,435 100.0 % 71,584 100.0 % 70,945 100.0 %
ø It is difficult to calculate exact market share of Aluminum deoxidizers as total production and sales volume of<br>the domestic market are not counted.
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B. Green Infrastructure [Trading segment]

There are 39 subsidiaries in trading segment including POSCO International, 26 subsidiaries in construction segment including POSCO E&C and 14 subsidiaries of logistics and etc. segment including POSCO Flow and POSCO DX.

∎ POSCO INTERNATIONAL

(1) Market Share

POSCO International’s export performance in the first quarter of 2024 was $2.2 billion based on a customs clearance basis, down 2.96% from the previous quarter. Korea’s overall export performance increased 8.30% quarter-on-quarter, and the company’s performance to Korea’s total performance was 1.32%.

(Millions of US Dollars)
Category 2024.1Q 2023.1Q Growth Rate
All Trading Companies in Korea 163,766 151,216 8.30 %
POSCO International Corp. 2,161 2,227 -2.96 %
ø Source: Korea International Trade Association (www.kita.net)
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(2) Summary of Businesses

While focusing on trading which is its main business, POSCO International is engaged in resource development, production processing, and infrastructure development and operation.

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POSCO International and its consolidated subsidiaries engage in three major businesses: trading, energy and investment(food resources, motor core for EV, mineral resource development and etc).

[Global Business Sector]

• Trading business : POSCO International has not only been securing stable supply line in steel business but<br>also been actively developing and expanding new businesses such as secondary battery business, agro-commodities, and industrial materials based on the know-how accumulated over a long period of time in the<br>traditional trading business and through its vast overseas networks. POSCO International is also carrying out agro-commodities trading and food resource development projects in order to secure sustainable future food resources. As a result, the<br>company has diversified its sales outlets in Korea, China, Southeast Asia, and MENA, while expanding food import volume.
• Motor core business: Together with POSCO Mobility Solution which is a subsidiary of POSCO International,<br>POSCO International started engaging into motor core business for EV. It is expected to expand motor core production to 7 million by 2030.
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• Palm farm in Indonesia: POSCO International is developing a palm plantation in Indonesia and gradually<br>expanding sales by establishing a local palm oil production system. In December 2022, another CPO (Crude Palm Oil) mill, enabling the production of approximately 250,000 tons of CPO annually is newly established, and the company is pursuing<br>environmentally friendly palm farming through RSPO certification.
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• Ambatovy Nickel Mine Project : POSCO International has been participating in the Ambatovy Nickel Mine<br>Project, the world’s third-largest nickel mine in the mineral resource development project with a 6.1% stake. In addition, POSCO International is searching for new opportunities in EV battery material business.
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• Myanmar hotel business : POSCO INTERNATIONAL AMARA Co., Ltd., located in Yangon, Myanmar, owns the Lotte<br>Hotel Yangon in Myanmar. The Lotte Hotel Yangon currently consists of 343 hotel rooms and 315 residences for long-term stay guests. Since its opening in September 2017, the hotel has been in operation under a<br>10-year hotel management contract with Lotte Hotel.
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[Energy Sector]

The company has classified its business units into the energy sector, including the Gas Business Unit, Energy Project Development Unit, Energy Infrastructure Unit, and domestic and overseas investment corporations related to power generation such as SENEX Energy.

• Myanmar Gas Field business : Since its production of the first gas in July 2013, gas fields supplies an<br>average of approximately 500 million standard cubic feet of gas per day. In addition, through the second phase of development undertaken to maintain stable gas production, the addition of seven gas production wells was successfully completed in<br>August 2022. In addition, from February 2021, as part of the third phase of the development project, the construction of the gas boosting platform EPCIC for the production of low-pressure gas in the reservoir<br>was completed in December 2023, and the platform will be operated after completing the test drive in the first half of 2024.
• LNG Business : The company began LNG trading in 2017 based on Its expertise in developing international<br>energy sources, specialty in trading, and the LNG demand of POSCO Group. In 2023, POSCO international merged with POSCO Energy and obtained an additional value chain across all aspects of the LNG business, from LNG import terminals to generation.<br>
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• Onshore gas business in Australia : To execute the group’s carbon neutrality and hydrogen business<br>strategies in a timely manner and expand its existing energy business centered in Myanmar, the company has acquired Senex Energy Limited in Australia. Senex Energy Limited is an energy company located in Brisbane on the east coast of Australia,<br>producing gas from onshore oil and gas fields in eastern Australia for domestic and overseas customers. Recognizing the rising gas demand and high gas prices in the east coast of Australia, the company has launched additional development projects<br>with a targeted three-fold increase in gas production by 2025.
• The by-product gas power plant in Indonesia
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The by-product gas power plant facility, which was completed in 2014, is equipped with a capacity of 200 MW. It produces electricity using by-product gas generated by integrated steelworks in Indonesia. It currently generates electricity that can be used by about 600,000 households as of 2024.

• Onshore wind power generation project

In 2019, POSCO International completed construction of an onshore wind power plant in Jaeun-myeon region of Shinan-gun, Jeonnam. The capacity of the onshore wind power plant is 62.7 MW and it annually reduces 49,000 tons of carbon dioxide.

• Heavy oil power plant in Papua New Guinea.

Since entering Papua New Guinea, it has completed an additional 34MW heavy oil power plant in LAE in 2017. It has started commercial operations with generation of long-term power sales over the next 15 years.

[New business investment]

In addition, POSCO International is searching for new opportunities in four new growth businesses areas which include smart farm, green materials, green mobility and hydrogen.

B. Green Infrastructure [Construction segment]

∎ POSCO E&C

POSCO E&C engages in primarily 3 businesses: plant, civil engineering(infrastructure) and construction.

Plant business is the construction of integrated steel mills, EPC projects and industrial plants.

The plant market is expected to continue to grow in the Middle East, Latin America, Southeast Asia, and the CIS region, and domestic companies are actively entering overseas markets.

Plant business used to focus on small investment of existing facilities but there will be more new investments in Electric furnace and hydrogen reduction process followed by global green trend. As nuclear power generation is getting attention again, the development of small nuclear power plants is expected to become active.

The civil engineering business is about constructing expressways, railroads and bridges. According to the government’s policy to strengthen regional competitiveness, the construction of regional hubs such as Gadeokdo New Airport, Daegu Gyeongbuk New Airport, and Jeju 2nd Airport will begin, and the road network expansion project such as the Seoul Metropolitan Railway (GTX) will continue to connect major metropolitan areas. It is expected that more favorable overseas construction market would be created for the domestic construction companies as demand of infrastructure development is increasing in Asia, Middle East, Americas as well as in Europe.

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Housing demand is shrinking after a sharp rate hike, and number of unsold households are increasing around areas where supply has been concentrated. Recently, concerns have been growing that new orders will shrink as funding has been suspended due to the financial market crunch. Housing market conditions rapidly deteriorated due to sudden interest rate increases, rising construction costs, and a slump in the construction PF market. In terms of overseas market, domestic construction companies have entered Southeast Asia, where urbanization is actively underway, but for now, construction companies’ risk management is expected to be the top priority due to growing economic uncertainties around the world.

POSCO E&C has the top class construction capabilities, product development capabilities, and commercialization capabilities in the field of high-rise buildings and large-scale new city development. Representatively, POSCO E&C is leading the Songdo International Business City Development Project and have successfully completed high-rise/supersize landmark projects such as POSCO Tower Songdo, Busan Haeundae LCT, and Yeouido Park One.

In Overseas, POSCO E&C continues to seek new business opportunities based on the experience in developing and constructing various buildings such as hotels, offices, and residences in Southeast Asia such as Vietnam, China, Myanmar, and the Philippines.

B. Green Infrastructure [Logistics and etc.segment]

∎ POSCO DX

POSCO DX has both IT and OT technologies and has secured competitiveness in its manufacturing-based business on the convergence of IT and OT technologies. When domestic ICT market size is estimated to be KRW 39.5 trillion, POSCO DX is expected to take about 3.8% of domestic ICT market share (ICT market for local corporates only). POSCO DX will continue to adopt POSCO Group’s capabilities in digital transformation, logistics automation, and industrial robot system engineering businesses to create new success stories for sustainable growth even in business environments lots of uncertainties. Based on POSCO Group’s One IT strategy, POSCO DX is expecting to add value by developing IT infrastructure and strengthening the competitiveness of Smart Factory business.

The experiences operating POSCO’s Smart Factory based on big data, IoT and AI-based platform, led the company to have a strength in the area of continuous and automation process. With its experiences in POSCO’s smart factory construction, POSCO DX is planning to support the mass production system of EV battery materials. In addition, POSCO DX will expand the logistics automation business market with the successful completion of the logistics business in progress. While diversifying logistic business sectors POSCO DX will actively participate new airport BHS project and contribute to the groups’ advancement of the group’s logistic system.

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C. Green Materials and Energy

Green Materials and Energy segment include the business related to EV battery materials, such as lithium, nickel, cathode material, anode material, and recycling, and there are a total of 17 subsidiaries, including POSCO Future M and POSCO Argentina.

∎ POSCO Future M

POSCO Future M **** operates mainly 2 businesses: basic material business and energy material business.

[Basic industrial materials business]

• Refractory production : Refractories maintain their chemical properties and strength even at high<br>temperatures making them indispensable materials for industrial facilities including the furnaces in steelworks and petrochemical plants. In the refractory business, POSCO Future M produces and maintains refractories. In order to keep price<br>competitiveness in the domestic market, the company has expanded its business to China.
• Lime business : In the quicklime & chemical business, POSCO Future M is currently doing<br>consignment operation of cokes plants where purify coke oven gas (COG) in Pohang and Gwangyang. With the chemical products generated in during the purification process, POSCO Future M operates cokes business.
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[Energy material business]

In the energy material business, POSCO Future M provides cathode and anode materials which are the main components for secondary cell: cathode, anode, electrolyte and separation membrane. It is planned to produce 74 thousand ton/year of natural graphite anode materials in 2026. In addition, artificial graphite production is expected to increase from production capacity of 8 thousand ton/year in 2023 to 38 thousand ton/year in 2026. Furthermore, cathode material production is expected to increase from 155 thousands ton/year to 395 thousands ton/year by 2026. Most of the precursors that are put into the production of anode materials are currently sourced from China, but POSCO Future M plans to achieve a high level of internalization by securing 215 thousand tons/year production capacity by 2026. Due to environment-friendly policy with less carbon emission worldwide, demands for Energy Storage System and Electric Vehicle are expected to grow continuously.

The secondary battery business is expected to continue to grow due to expansion of the EV and ESS markets in accordance with each country’s energy-saving policies. In particular, the secondary battery market for electric vehicles is expected to reach about 50% in 2030 from 16% in 2023 due to China’s policy to foster the electric vehicle industry, European CO2 emission regulations, and global OEM companies’ increasing share of electric vehicle models. As a result, electric vehicle sales are expected to reach 14 million units in 2023, 16.4 million units in 2024, and 40.7 million units in 2030. Along with this growth, POSCO Future M is generating revenues through supplying battery materials to major EV battery makers such as LG Energy Solution, Samsung SDI, SK On and etc.

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POSCO Group has established full battery material value chain from raw materials business to battery materials and recycling business. As the only domestic producer of graphite-based anode materials, which are considered to have the highest degree of difficulty in achieving independence from Chinese imports, POSCO Future M is expected to expand its sales revenues in working with global automakers and battery producers. In specific, POSCO Future M established a joint venture (Ultium CAM) with GM in August 2022 to begin construction of high nickel cathode plant in Canada with a production capacity of a 30 thousand ton per year. It is planned to be completed in the second half of 2024 and to start production in the first half of 2025. For lithium, which is a raw material for anode materials, POSCO HOLDINGS (the largest shareholder of POSCO Future M) plans to establish a 71 thousand tons production system in 2024 through investment in Argentina salt lakes and Australian mines and expand its production capacity to 423 thousand tons by 2030.

Considering POSCO Future M’s cathode material production capacity and lithium input amount, lithium self-sufficiency rate is expected to exceed 100% by 2030. In addition, POSCO HOLDINGS plans to establish a 240 thousand ton nickel production system by 2030 by expanding its investment in securing nickel through mining, smelting and recycling.

D. Others

In Others segment, there are 12 subsidiaries in total, including POSCO HOLDINGS. POSCO HOLDINGS is focusing on investment in new growth businesses and opportunities.

3. Key Products

A. Sales of Key Products (2024.1Q)

(In hundred millions of KRW, %)
Business<br><br><br>Area Item Specific Use Total Sales Ratio
Steel Hot-rolled Product (HR) Steel pipe, Shipbuilding, etc. 32,787 21.20 %
Cold-rolled Product (CR) Automobile , Home appliances, etc. 50,576 32.70 %
Stainless Steel Products Tableware, pipes, etc. 24,325 15.80 %
Others Plates, Wire rods, etc. 46,751 30.30 %
Gross Sum 154,439 100.00 %
Deduction of Internal Trade -55,836
Sub Total 98,603
Green Infra Trading Steel, Metal 79,845 56.40 %
Chemical, Strategic Item, Energy 15,744 11.10 %
Others 9,088 6.40 %
Construction Architecture (Domestic) 11,336 8.00 %
Plant (Domestic) 7,113 5.00 %
Civil Engineering (Domestic) 2,361 1.70 %
Others (Domestic) 656 0.50 %
Overseas Construction 2,296 1.60 %
Owned Construction 657 0.50 %
Others 930 0.70 %
Logistics and etc. Others 11,498 8.10 %
Gross Sum 141,524 100.00 %
Deduction of Internal Trade -68,782
Sub Total 72,742
Gross Sum 11,562 100.00 %
Green Materials and Energy Deduction of Internal Trade -2,498
Sub Total 9,064
Others Gross Sum 9,241 100.00 %
Deduction of Internal Trade -9,130
Sub Total 111
Total Sum 180,520

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B. Price Movement Trends of Key Products

(In thousands of KRW/Tons, KRW/kWh)
Business<br><br><br>Segment Products 2024.1Q 2023 2022
Steel Hot-rolled Product (HR) 943 967 1,105
Cold-rolled Product (CR) 1,143 1,157 1,293
Green Infrastructure Electric Power 173 205 224
Green Materials and Energy Refractory 1,063 991 1,022
Lime 151 147 117
ø Above price movement trend of steel segment in 2022 is based on the price between March 1 to<br>December 31, 2022 (HR and CR price in 2022 is 1,163 and 1,300 thousand won)
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ø Construction and Logistics and etc. segments of Green Infrastructure are omitted due to its difficulties of<br>measuring raw materials fluctuations. In the case of the secondary battery material business, detailed descriptions are not included due to risk of information leakage
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[Steel]

(1) Criteria for Calculation

(a) Subjects for Calculation: Unit sales prices of the standard hot-rolled product and cold-rolled product

(b) Calculation Method and Unit: The average price of each product based on its total sales including the freight costs during the given period.

(2) Factors of Price Changes

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Since the beginning of 2024, high interest rates, high prices, and high exchange rates have continued, and the economic slump has been prolonged due to a slump in China’s real estate market and continued instability in the Middle East. Market prices have been on the decline since the peak in December 2023 as is difficult to be recovered due to the slowdown in some demand industries, including construction.

[Green Infrastructure]

(1) Criteria for Calculation

(a) Subjects for Calculation: Price of electric power

(b) Calculation Method and Unit: Unit price per electric power ÷ Net power volume generated

(2) Factors of Price Changes

Power : Korea Gas Corporation cost, etc.

* The cost consists of introduction cost, supply cost, etc., and is affected by crude oil and exchange rates

[Green materials and Energy]

(1) Criteria for Calculation

(a) Subjects for Calculation: Unit price of refractory and quicklime

(b) Calculation Method and Unit: The average price of each product based on its total sales including the freight costs during the given period.

(2) Factors of Price Changes

• Price of refractories is affected by business condition of front industry and raw material cost.<br>
• Quicklime price is mainly influenced by utility unit price and raw materials cost. The price fluctuation of<br>quicklime is small.
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• Raw materials for energy materials are subject to price fluctuations depending on the international supply of<br>mineral resources.
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4. Major Raw Materials

A. Current Status of Major Raw Materials

(In hundred millions of KRW)
BusinessSegment Type ofPurchase Item Specific Use PurchaseAmount<br>(Portion, %) Portion (%) Remarks
Steel Raw Materials Materials for<br><br><br>Iron-making Iron Ore for Blast<br><br><br>Furnaces 49,160 66.10 % Iron Ore, Coal
Sub-materials Sub-materials for<br><br><br>Iron-making,<br> <br>Steelmaking 13,469 18.10 % Iron Material,<br><br><br>Alloy Iron,<br> <br>Non-ferrous Metal,<br> <br>Limestone, etc.
Stainless Steel Materials Key Materials for<br><br><br>STS Production 11,772 15.80 % Nickel, Ferrochrome,<br>STS Scrap Iron, etc.
Green Infrastructure Trading Raw Materials LNG Material for Power Generation 4,518 100.00 % —
Construction Raw Materials Ready-mixed Concrete Construction of Structure 737 15.80 % —
Steel<br><br><br>Reinforcement Strengthening Concrete 691 14.90 % —
Cable Electricity Transfer 67 1.40 % —
Steel Pile Foundation of Structure 8 0.20 % —
Others Construction of Pipe and Structure etc. 3,146 67.70 % —
Logistics<br>and etc. Raw Materials Others For other use 2,939 100.00 % —
Green Materials and Energy Raw Materials NCM and etc. Production of cathode materials 4,519 88.00 % —
Graphite and etc. Production of<br><br><br>anode materials 147 2.90 % —
Limestone and etc. Production of Lime 275 5.40 % —
Others Production of refractory 192 3.70 % —
* Amount: CIF + customs duties + stevedoring fees + other incidental expenses
--- ---

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B. Price Movement Trends of Major Raw Materials

(In thousands of KRW)
BusinessSegment Category 2024.1Q 2023 2022
Steel Iron Ore(per ton) 150 145 143
Coal(per ton) 409 387 472
Scrap Iron(per ton) 521 526 605
Nickel(per ton) 22,034 28,043 33,147
Green Infrastructure Trading LNG<br><br><br>(per ton) 1,171 1,428 1,594
Construction Ready-mixed Concrete<br><br><br>(per m^3^) 90 85 77
Steel Pile<br><br><br>(per m) 157 165 180
Steel Reinforcement<br><br><br>(per kg) 0.9 0.9 1.0
Cable<br><br><br>(per m) 0.9 0.9 0.9
Green Materials and Energy Refractory<br><br><br>(per ton) 257 334 479
Limestone<br><br><br>(per ton) 25 24 22
ø Green Infrastructure (Logistics and etc. segment) and Others segment are omitted due to its difficulties of<br>measuring raw materials fluctuations. In the case of the EV battery material business, detailed descriptions are not included due to risk of information leakage
--- ---

[Steel]

ø Price Movement Trend of Major Raw Materials

(1) Iron Ore : Iron ore prices fell 3% quarter-on-quarter to U$113/tonne in the first quarter of 2024 amid continued downside factors such as low margins for steelmakers, weak production and increased port inventories following the steel recession.

(In US Dollars/ Tons)
’24.1Q ’23.4Q ’23.3Q ‘23.2Q ‘23.1Q ‘22.4Q ‘22.3Q ‘22.2Q ‘22.1Q
113 117 106 102 118 90 94 126 132

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(2) Coal : The coal prices in the first quarter of 2024 were down 8% quarter-on-quarter to U$308/ton, indicating overall weakness in demand following a gradual recovery from heavy rain-hit mines in Australia and a slowdown in the global steel economy in general.

(In US Dollars/ Tons)
’24.1Q ’23.4Q ’23.3Q ‘23.2Q ‘23.1Q ‘22.4Q ‘22.3Q ‘22.2Q ‘22.1Q
308 334 264 243 344 278 250 446 488

(3) Scrap : Iron scrap prices rose 2% quarter-on-quarter to U$392/to in the first quarter of 2024, driven by lower supply following worsening scrap demand in the winter season.

(In US Dollars/ Tons)
’24.1Q ’23.4Q ’23.3Q ‘23.2Q ‘23.1Q ‘22.4Q ‘22.3Q ‘22.2Q ‘22.1Q
392 385 385 403 438 387 394 531 562

(4) Nickel : Nickel prices fell 4% quarter-on-quarter to U$16,589/ton due to weak demand from secondary batteries/STS and continued oversupply in Indonesia.

(In US Dollars/lb, US Dollars/Tons)
’24.1Q ’23.4Q ’23.3Q ’23.2Q ‘23.1Q ‘22.4Q ‘22.3Q ‘22.2Q ‘22.1Q
7.53 7.83 9.23 10.12 11.79 11.48 10.01 13.13 11.98
16,589 17,247 20,344 22,308 25,983 25,292 22,063 28,940 26,395
ø LME : London Metal Exchange
--- ---

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[Green Infrastructure]

(1) Criteria for Calculation

Business Sector Products Criteria for Calculation Factors of Price Changes
Trading LNG Average purchase price and LNG direct purchase price of Korea Gas Corporation Cost of Korea Gas Corporation (cost consists of introduction cost, supply cost, etc. and is affected by crude oil, exchange rate, etc.)
Construction Ready-mixed Concrete Standard 25-210-15 Price increase due to changes in the agreed price of the Seoul metropolitan area (From Feb 1, 2024)
Steel Pile SPIRAL,609.6,12T,STP275,KS F 4602,STEEL PILE Unit price change due to reduction of raw material (coil) price
Steel Reinforcement SD400 10mm Decrease the price of raw materials (scrap)
Cable TFR-3, 0.6/1KV, 2.5SQ, 2C The LME market is on a slight incease and there are fluctuations in raw material prices due to an increase in the exchange rate, but it is not at a level that has a significant impact on price fluctuations

[Green Materials and Energy]

(1) Criteria for Calculation
• Refractory and lime: Purchase prices including freight costs
--- ---
(2) Factors of Price Changes
--- ---
• Refractory raw materials : Price fluctuations and compositional costs of raw materials in China<br>
--- ---
• Limestone : Raw material price fluctuation is not extreme and it varies slightly depending on the freight cost<br>
--- ---
• Energy materials : Price trends are not disclosed considering concerns about information leakage<br>
--- ---

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5. Production and Facilities

A. Production Capacity

[Steel]

∎ POSCO

(Thousands of Tons)
Business Area Products 2024.1Q 2023 2022
Steel Crude Steel 10,114 40,680 40,680
* The steel production above includes POSCO’s performance before the<br>spin-off (January to February 2022).
--- ---

∎ POSCO STEELEON

(Thousands of Tons)
Business Area Products Plant 2024.1Q 2022 2021
Steel Galvanized / Color-<br><br><br>coated Steel Pohang 237 960 960
Myanmar 17 70 70
Total 254 1,030 1,030

∎ POSCO M-TECH

(Tons)
Business Area Products 2024.1Q 2023 2022
Raw materials for steel production Deoxidizer 10,207 39,294 39,058

[Green Infrastructure]

∎ POSCO INTERNATIONAL

(Electric Power: MW/year)
Business Area Products 2024.1Q 2023 2022
Power Generation Electric Power Incheon 3,412 3,412 3,412

[Green Materials and Energy]

∎ POSCO FUTURE M

(Thousands of Tons)
Business Area Products Place of Business 2024.1Q 2023 2022
Refractory Brick and etc. Pohang 28,981 116,560 116,560
LIME Quicklime Pohang 273,000 1,095,000 1,095,000
Gwangyang 273,000 1,095,000 1,095,000
Total 574,981 2,306,560 2,303,000
* In the case of the energy materials sector, detailed notation was omitted in consideration of technology and<br>information leakage concerns.
--- ---

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B. Production Result and Capacity Utilization Rate

[Steel]

(1) Production (Thousands of Tons)
Products 2024.1Q 2023 2022
Crude Steel 9,698 39,941 37,928
Products Hot-Rolled<br><br><br>Steel 2,562 10,660 9,268
Plate 1,606 6,602 5,857
Wire Rod 585 2,325 1,988
Pickled-Oiled<br><br><br>Steel 717 2,780 2,847
Cold-Rolled<br><br><br>Products 1,859 7,133 7,623
Coated Steel 1,913 7,299 6,708
Electrical Steel 218 828 1,005
Stainless Steel 847 3,104 3,400
Others 377 1,795 3,261
Total 10,685 42,528 41,957
ø The amount of products is the aggregate amount of POSCO’s production and production of POSCO’s<br>subsidiaries, which may include interested parties’ transactions.
--- ---
ø POSCO’s production result includes production of POSCO HOLDINGS before the<br>spin-off date (March 1, 2022), and production of POSCO after the spin-off date.
--- ---
(2) Capacity Utilization Rate (Thousands of Tons, %)
--- --- --- --- --- --- --- --- ---
Company Capacity Production Utilization Rate
Crude Steel<br><br><br>Production POSCO 10,114 8,660 85.60 %
PT.KRAKATAU POSCO 703 726 103.20 %
POSCO (Zhangjiagang) Stainless Steel Co., Ltd. 275 199 72.40 %
POSCO YAMATO VINA STEEL JOINT STOCK COMPANY 138 113 82.10 %
Total 11,230 9,698 86.40 %

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[Green Infrastructure]

ø Since it is difficult to measure production result and operating rates of Green Infrastructure (Construction),<br>and Green Infrastructure (Logistics and etc.) segments considering the nature of the business, they are omitted in this part.

∎ POSCO INTERNATIONAL

(1) Production Result ****

(Gwh)
Business Area Products 2024.1Q 2023 2022
Power Generation Electric Power 2,883 11,213 11,189

(2) Capacity Utilization Rate

(Hour, %)
Business Area Products 2024.1Q<br>Capacity 2024.1Q<br>Production Utilization Rate
Power Generation Incheon Power Plant 2,184 1,341 61.4 %

[Green Materials and Energy]

∎POSCO FUTURE M

(1) Production Result ****

(Tons)
Business Area Products Place of Business 2024.1Q 2023 2022
Refractory Brick and etc. Pohang 20,458 77,437 81,094
LIME Quicklime Pohang 259,039 1,110,594 1,043,109
Gwangyang 295,889 1,243,040 1,176,611
Total 575,386 2,431,071 2,300,814
ø Coke oven gas (COG) facility is a simple consignment operation for POSCO facilities, so production performance<br>is omitted
--- ---
ø In the case of the EV battery material business, detailed descriptions are not included due to risk of<br>information leakage
--- ---

(2) Capacity Utilization Rate (2024.1Q)

(Tons,%)
Business Area Capacity Production Utilization Rate
Refractory Factory 28,981 20,458 71
Quicklime Factory (Pohang) 273,000 259,039 95
Quicklime Factory (Gwangyang) 273,000 295,889 108
Total 574,981 575,386 —
ø Coke oven gas (COG) facility is a simple consignment operation for POSCO facilities, so production performance<br>is omitted
--- ---
ø In the case of the EV battery material business, detailed descriptions are not included due to risk of<br>information leakage
--- ---

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C. Production Facilities

(1) The current status of production facilities

[Land] (In millions of KRW)
Business Segment Beginning BookBalance Increased Decreased Depreciation Ending BookBalance
Steel 1,880,196 21,842 — — 1,902,038
Green Infrastructure Trading 495,571 236 -1,612 — 494,195
Construction 378,849 158 -30,607 — 348,400
Logistics and etc. 111,058 — -2,471 — 108,587
Green Materials and Energy 234,415 1,646 -684 — 235,377
Others 190,155 1,237 — — 191,392
[Buildings] (In millions of KRW)
--- --- --- --- --- --- --- --- --- --- --- ---
Business Segment Beginning BookBalance Increased Decreased Depreciation Ending BookBalance
Steel 2,978,895 121,436 -1,163 -68,193 3,030,975
Green Infrastructure Trading 569,770 17,806 -433 -5,818 581,325
Construction 91,841 144 -3,035 -983 87,967
Logistics and etc. 107,521 3,023 — -2,414 108,130
Green Materials and Energy 554,815 1,810 -1,610 -5,158 549,857
Others 124,790 37 -1,640 -462 122,725
[Structures] (In millions of KRW)
--- --- --- --- --- --- --- --- --- --- --- ---
Business Segment Beginning BookBalance Increased Decreased Depreciation Ending BookBalance
Steel 2,383,628 260,695 -19,034 -58,762 2,566,527
Green Infrastructure Trading 472,112 3,803 -151 -6,817 468,947
Construction 51,855 800 -46 -1,710 50,899
Logistics and etc. 102,528 1,603 — -2,549 101,582
Green Materials and Energy 55,637 2,696 — -1,863 56,470
Others 15,764 — -152 -114 15,498

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[Machinery and Equipments] (In millions of KRW)
Business Segment Beginning<br>Book Balance Increased Decreased Depreciation Ending BookBalance
Steel 13,828,139 1,292,948 -568,789 -557,998 13,994,300
Green Infrastructure Trading 1,212,326 19,822 -7,097 -26,540 1,198,511
Construction 7,490 257 -94 -603 7,050
Logistics and etc. 275,244 12,983 — -16,208 272,019
Green Materials and Energy 1,197,388 73,648 -4 -28,223 1,242,809
Others 18,605 277 -4 -511 18,367
[Vehicles] (In millions of KRW)
--- --- --- --- --- --- --- --- --- --- --- ---
Business Segment Beginning BookBalance Increased Decreased Depreciation Ending BookBalance
Steel 50,878 3,582 -1,833 -5,351 47,276
Green Infrastructure Trading 12,126 1,853 -971 -682 12,326
Construction 6,112 2,031 -1,344 -482 6,317
Logistics and etc. 1,054 16 — -64 1,006
Green Materials and Energy 9,361 1,084 -185 -947 9,313
Others 64 — -1 -4 59
[Tools and Fixtures] (In millions of KRW)
--- --- --- --- --- --- --- --- --- --- --- ---
Business Segment Beginning BookBalance Increased Decreased Depreciation Ending BookBalance
Steel 68,552 6,473 -2,444 -6,209 66,372
Green Infrastructure Trading 23,813 8,124 -502 -4,210 27,225
Construction 1,415 368 -153 -181 1,449
Logistics and etc. 4,438 2,919 — -494 6,863
Green Materials and Energy 30,615 1,139 -119 -2,690 28,945
Others 32 — — — 32
[Equipment] (In millions of KRW)
--- --- --- --- --- --- --- --- --- --- --- ---
Business Segment Beginning BookBalance Increased Decreased Depreciation Ending BookBalance
Steel 112,086 8,781 -6,859 -8,040 105,968
Green Infrastructure Trading 27,861 3,497 -677 -2,792 27,889
Construction 9,875 2,603 -673 -1,016 10,789
Logistics and etc. 12,561 4,024 -20 -807 15,758
Green Materials and Energy 13,278 1,263 -176 -1,146 13,219
Others 14,226 155 -6 -374 14,001

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[Financial Lease Assets] (In millions of KRW)
Business Segment Beginning BookBalance Increased Decreased Depreciation EndingBookBalance
Steel 247,157 120,704 -8,712 -49,710 309,439
Green Infrastructure Trading 384,096 13,684 -10,540 -14,397 372,843
Construction 37,015 27,300 -14,368 -8,343 41,604
Logistics and etc. 211,108 18,283 -2,290 -1,583 225,518
Green Materials and Energy 97,959 14,362 -9,347 -5,223 97,751
Others 20,970 701 -445 -736 20,490
[Biological Assets] (In millions of KRW)
--- --- --- --- --- --- --- --- --- --- --- ---
Business Segment Beginning BookBalance Increased Decreased Depreciation Ending BookBalance
Steel — — — — —
Green Infrastructure Trading 137,331 2,135 — -2,370 137,096
Construction — — — — —
Logistics and etc. — — — — —
Green Materials and Energy — — — — —
Others — — — — —
[Assets under Construction] (In millions of KRW)
--- --- --- --- --- --- --- --- --- --- --- ---
Business Segment Beginning BookBalance Increased Decreased Depreciation Ending BookBalance
Steel 2,795,425 965,260 -989,777 — 2,770,908
Green Infrastructure Trading 322,944 76,068 -7,962 — 391,050
Construction 10,961 1,081 -2,994 — 9,048
Logistics and etc. 126,315 57,307 -19,775 — 163,847
Green Materials and Energy 3,008,621 924,301 -19,901 — 3,913,021
Others 69,407 93 — — 69,500

(2) New Facility Establishment, Purchase, Etc.

(a) Investments under Construction ****

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[Steel] (In hundred millions of KRW)
Company Date Project TotalInvestment Invested<br>Amount Amount<br>to Be<br>Invested
POSCO Expansion/<br>Establishment November 2021<br> <br>~ December<br>2025 G)   Increased production capacity of electrical steel for eco-friendly vehicles in Gwangyang 9,088 8,571 517
February<br>2023~December<br>2025 G)   Establishment of Electric arc furnace 6,420 325 6,095
February 2020<br> <br>~ August 2025 P)  Establishment of #6 Coke plant 14,453 12,094 2,359
Maintenance/<br> <br>Improvement October 2020<br>~ August 2027 G,P) The first phase of the sealing of raw material yards for both Pohang and<br>Gwangyang Works 32,902 9,748 23,154
August 2021<br>~ September<br>2029 P)  Improvement of #2 Hot strip mill furnace 3,084 170 2,914
ø P stands for Pohang Steel Works.
--- ---
ø G stands for Gwangyang Steel Works.
--- ---
[Green Infrastructure (Trading / Logistics and etc.)] (In hundred millions of KRW)
--- --- --- --- --- --- --- --- --- ---
Company Date Project TotalInvestment Invested<br>Amount Amountto Be<br>Invested
POSCO International Expansion/<br>Establishment January 2021-<br>~June 2024 Gwangyang LNG #6 Tank 1,437 1,111 326
NEH Expansion/<br>Establishment May 2022~July<br>2026 Gwangyang LNG terminal 8,668 3,101 5,567

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[Green Materials and Energy] (In hundred millions of KRW)
Company Date Project TotalInvestment Invested<br>Amount Amount<br>to BeInvested
POSCO Future M Expansion/<br>Establishment July<br>2023~January<br>2025 The 5th stage of cathode material factory in Gwangyang 6,834 298 6,536
April<br>2023~August<br>2025 The 2nd stage of production line up expansion in #2 cathode material factory 6,148 1,131 5,017
March<br>2023~January<br>2025 The 2-1 stage of cathode material factory in Pohang 3,920 1,045 2,875
December<br>2021~May<br>2024 #1 cathode material factory in Pohang 3,747 3,033 714
March<br>2020~June<br>2025 Establishment of new Artificial Graphite Anode material line in Pohang 3,458 2,212 1,246
July<br>2022~February<br>2025 #2 precursor factory in Gwangyang 3,262 2,248 1,014
November<br>2019~June<br>2023 The 2-2 stage of Natural Graphite anode material factory in Sejong 2,876 2,715 161
ZHEJIANG POSCO-HUAYOU<br><br><br>ESM CO., LTD Expansion/<br>Establishment August<br>2021~June<br>2025 The 2nd stage of cathode material factory 1,769 1,081 688
POSCO FUTURE <br>MATERIALS CANADA INC. Expansion/<br>Establishment May<br>2022~March<br>2025 The 1st stage of cathode material factory in Canada 9,187 4,866 4,321
POSCO FUTURE <br>MATERIALS CANADA INC. Expansion/<br>Establishment June<br>2023~May<br>2027 The 2nd stage of cathode material factory in Canada 10,005 682 9,323
POSCO-Pilbara LITHIUM SOLUTION Expansion/<br>Establishment April<br>2021~June<br>2025 Construction of hard rock lithium commercialization plant 10,977 9,613 1,364
POSCO<br><br><br>ARGENTINA Expansion/<br>Establishment January<br>2022~June<br>2025 Brine lithium commercialization plant stage 1 and stage 2 26,273 24,848 1,425
POSCO LITHIUM SOLUTION Expansion/<br>Establishment December<br>2022~June<br>2025 Brine lithium commercialization plant stage 2 (downstream) 5,751 1,270 4,481
ø Ongoing investments over KRW 100 billion as of March 31, 2024 are listed on the table.<br>
--- ---
ø Investments in China and Canada are based on the payment of POSCO Future M’s capital.<br>
--- ---

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6. Product Sales

[Steel]

(In hundred millions of KRW)
Items 2024.1Q 2023 2022
Domestic Hot-Rolled<br><br><br>Products 15,084 58,730 68,784
Cold-Rolled<br><br><br>Products 13,758 52,754 55,997
Stainless Steel 6,853 30,313 42,481
Others 24,460 106,558 110,202
Overseas Hot-Rolled<br><br><br>Products 17,704 75,979 66,871
Cold-Rolled<br><br><br>Products 36,818 142,160 162,588
Stainless Steel 17,472 76,521 92,279
Others 22,289 92,373 107,294
Total Gross Sum 154,439 635,387 706,496
Internal Transaction -55,836 -231,454 -261,026
Total 98,603 403,933 445,470

[Green Infrastructure]

(In hundred millions of KRW)
Business<br><br><br>Area Items 2024.1Q 2023 2022
Trading Domestic<br> <br>Trading Merchandise 11,927 54,327 65,401
Product 8,723 39,121 9,825
Others 237 1,366 647
Overseas<br> <br>Trading Merchandise 28,547 121,136 137,635
Product 869 3,375 1,058
Others 15 48 10
Trades among the 3 countries 54,358 210,065 281,321
Construction Domestic<br> <br>Construction Building 11,336 41,251 35,061
Plant 7,113 23,371 15,706
Civil Engineering 2,361 11,658 9,321
Others 656 2,096 1,823
Overseas 2,296 14,975 15,938
Own Construction 1,587 9,325 11,006
Logistics and etc. Others 11,498 42,014 74,256
Total Gross Sum 141,524 571,572 659,008
Deduction of Internal Transaction -68,782 -243,520 -282,787
Total 72,742 328,052 376,221

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[Green Materials and Energy]

(In hundred millions of KRW)
Items 2024.1Q 2023 2022
Gross Sum 11,562 48,219 33,888
Deduction of Internal Transaction -2,498 -10,059 -9,370
Total 9,064 38,160 24,518

[Others]

(In hundred millions of KRW)
Items 2024.1Q 2023 2022
Gross Sum 9,241 15,622 11,695
Deduction of Internal Transaction -9,130 -14,495 -10,402
Total 111 1,127 1,293
ø Domestic and overseas categorized by the sales area.
--- ---
ø Sales of POSCO International’s foreign branches are included in ‘trade among the 3 countries’<br>under Green Infrastructure part
--- ---
ø As of January 2023, POSCO Energy was merged into POSCO International. As a result, the performance of POSCO<br>Energy before the merger was included in Green Infrastructure (Logistics and etc. segment).
--- ---

7. Derivatives

POSCO HOLDINGS use forward exchange contracts and currency swap contracts to hedge against the exchange rate risk for foreign currency loans. However those derivative contracts were transferred to POSCO followed by vertical spin-off on March, 2022.

POSCO use currency swap contracts in order to hedge against the exchange rate risk for long-term and short-term foreign currency loans. The currency swap valuation gains reflected in our financial statements at the end of March 2024 amounted to KRW 193,397 million, and transaction gains amounted KRW 15,072million while transaction losses amounted to KRW 2,971 million.

POSCO also has been hedging against exchange rate risks for expected sales revenue and foreign currency borrowings by trading in currency forward products. The derivative valuation gains reflected in our financial statements at the end of March 2024 amounted to KRW 54,677 million.

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8. Significant Contracts

[Major management contracts]

• Transfer contract of steel business related shares or investment certificates of POSCO HOLDINGS (2023)<br>
(1) Contract Counterparty: POSCO
--- ---
(2) Transaction amount: KRW 1.1320 trillion
--- ---
(3) Purpose: In order to improve the management efficiency of the steel business as a following step of the<br>vertical spin-off on March 2022.
--- ---
(4) Contract period: August 18, 2023 ~ September 25, 2023
--- ---
(5) Payment method: Cash payment
--- ---
(6) Company subject to transfer: PT.KP, P-Mexico, P-IJPC, P-MVWPC (4 overseas companies)
--- ---
* The above contract amount is the amount applied to the exchange rate based on July 31, 2023, and overseas<br>assets are traded by applying the exchange rate on the day of the transaction.
--- ---
• Transfer contract of steel business related shares or investment certificates of POSCO HOLDINGS (2022)<br>
--- ---
(1) Contract Counterparty: POSCO
--- ---
(2) Transaction amount: KRW 1.1377 trillion
--- ---
(3) Purpose: In order to improve the management efficiency of the steel business as a following step of the<br>vertical spin-off on March 2022.
--- ---
(4) Contract period: November 18, 2022 ~ March 31, 2023
--- ---
(5) Payment method: Cash payment
--- ---
(6) Company subject to transfer: POSCO YAMATO VINA STEEL JOINT STOCK COMPANY, POSCO Thainox Public Company Limited,<br>POSCO COATED STEEL (THAILAND) CO., and etc. (32 domestic companies, 25 overseas companies)
--- ---
* The above contract amount is the amount applied to the exchange rate based on November 3, 2022, and<br>overseas assets are traded by applying the exchange rate on the day of the transaction.
--- ---
• Sales contract of CSP shares
--- ---
(1) Contract Counterparty: ArcelorMittal Brazil
--- ---
(2) Purpose: Improving asset efficiency through the sales of non-core<br>assets with no management right
--- ---
(3) Contract period: July 28, 2022 (transaction completed on March 10, 2023)
--- ---
(4) Transaction amount: and payment method
--- ---

ArcelorMittal Brazil acquired shares in shareholder companies free of charge on the condition that ArcelorMittal Brazil succeed CSP’s debts. In addition, the shareholder companies will additionally pay US$102 million.

* POSCO HOLDNGS paid US$20.4 million equivalent to a 20 percent stake

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[Green Infrastructure (Trading)]

∎ POSCO INTERNATIONAL

Contract Date Remarks
Investment on the 3^rd^ stage development of<br><br><br>A-1 / A-3 block<br><br><br>in Myanmar gas field September<br><br><br>2020 1)  Investment amount: KRW 365,786,302,000<br><br><br><br> <br>2)  Development period:<br>September 1, 2019 ~ December 31, 2024<br> <br><br><br><br>3)  Schedule : Installation Completion of low-pressure gas<br>compression platform and <br>commenced operation in 2024<br> <br><br><br><br>4)  Other Information<br> <br><br><br><br>•  Location: North-west offshore, Myanmar<br><br><br><br> <br>•  This investment is the 3^rd^ stage of development, which consists of 3 stages in Myanmar gas field development. The purpose of investment is to maintain current gas production level stably by installing low-pressure gas compression platform.<br> <br><br><br><br>•  In the first quarter of 2021, the design and production of the equipment for this work <br>was<br>started, and it is planned to start operation in 2024. The “ (2) Development period” above is the period including the basic design progress period, September 2019 to September 2020.<br><br><br><br> <br>•  Participation rate of each<br>company in gas production and offshore pipeline transportation business<br> <br><br><br><br>•  POSCO International Corporation : 51.0%<br><br><br><br> <br>•  ONGC VIDESH(Oil and Natural<br>Gas Corporation Videsh Limited) : 17.0%<br> <br><br><br><br>•  MOGE(Myanmar Oil and Gas Enterprise): 15.0%<br><br><br><br> <br>•  GAIL (India) Limited :<br>8.5%<br> <br>•  KOGAS(Korea Gas Corporation): 8.5%<br><br><br><br> <br>•  Investment size of USD<br>315,170 thousand, applying the exchange rate of<br> <br><br><br><br>1USD=1,160.60 KRW, which is the date of the BOD resolution.<br><br><br>•  Detailed information and future timeline on this resource development investment is subject to<br>change.<br> <br><br><br><br>ø  POSCO International disclosure date :<br>September 22, 2020<br> <br>(Decision on natural resources investment)
Decision to acquire shares of Senex Energy (Australia) December 2021 1)  Purpose : Production and Development of land gas field in eastern Australia<br><br><br><br> <br>2)  Method : Cash acquisition<br><br><br><br> <br>3)  Resolution date of Board of<br>Directors : December 10, 2021<br> <br><br><br><br>4)  Acquisition amount : KRW 371,077,996,186<br><br><br><br> <br>5)  Number of shares acquired :<br>96,178,946Shares<br> <br><br> <br>6)  Date of<br>acquisition : April 1, 2022<br> <br><br><br><br>7)  equity structure (after acquisition of shares) :<br><br><br><br> <br>•  POSCO International :<br>50.1%<br> <br><br> <br>•  Hancock Energy<br>(Australia) : 49.9%<br> <br><br> <br>ø  POSCO International disclosure date :<br> <br><br><br><br>March 31, 2022 (Decision on Acquisition of Shares or Investment Certificates of Other Corporations)
Decision on Merger of<br><br><br>POSCO Energy August<br><br><br>2022 1)  Purpose : The purpose of the merger is to consolidate the energy business within the<br>group and complete the value chain of the LNG business, thereby strengthening competitiveness, improving management efficiency and laying the foundation for sustainable growth.<br> <br><br><br><br>2)  Method of Merger : POSCO Energy Co., Ltd. (“POSCO Energy”) will be merged with and into<br>POSCO International Co., Ltd. (“POSCO International”).<br> <br><br><br><br>3)  Date of board resolution (decision Date) : August 12, 2022<br><br><br><br> <br>4)  Date of General Shareholders<br>Meeting for merger approval : November 4, 2022<br> <br><br><br><br>4)  Merger ratio : POSCO International : POSCO Energy = 1 : 1.1626920<br><br><br><br> <br>5)  Record date of merger :<br>January 1, 2023<br> <br><br><br><br>6)  Scheduled date of merger registration : January 2, 2023<br><br><br><br><br><br>ø  POSCO International disclosure date :<br>January 2, 2023

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[Green Infrastructure (Logistics and etc.)]

∎ POSCO FLOW

Contract Date Remarks
Transfer of all logistics tasks such as arranging logistics and performing related services December 2021 1)  Contract counterpart : POSCO (POSCO HOLDINGS INC.)<br><br><br><br> <br>2)  Signed date : December 22,<br>2021<br> <br><br> <br>3)  Date of Transfer :<br>January 1, 2022<br> <br><br> <br>4)  Transfer<br>amount : KRW 2,945 million<br> <br><br><br><br>5)  Information : Transfer of all logistics tasks such as arranging logistics and performing related<br>services

9. Research and Development

A. Research and Development (“R&D”) Organization

Business<br><br><br>Segment Company Organization
Steel POSCO Steel Production & Technology Strategy Office
Technical Research Laboratories
Steel Product R&D Center
Process R&D Center
Automotive Steel R&D Center
Low-Carbon Process R&D Center
Steel Solution R&D Center
POSCO (Zhangjiagang) Stainless Steel<br><br><br>Co., Ltd. R&D Center
POSCO STEELEON Production and Sales Strategy Office
POSCO M-TECH Automation R&D Center
Pohang Steel Business Office
Green Infrastructure POSCO MOBILITY SOLUTION STS Business Office R&D Group
Core Business Office Product Process Development Group
Core Business Office Mold Research Group
POSCO Eco & Challenge R&D Center
POSCO A&C Smart Housing Business Department
POSCO DX R&D Center
Green Materials and Energy POSCO Future M R&D Center
Energy Material R&D Center
Others POSCO HOLDINGS INC. New Experience of Technology Hub
New Experience of Technology Stragetegy Office<br><br><br>New Experience of Technology Hub
AI R&D Laboratories,<br><br><br>New Experience of Technology Hub
LiB Materials R&D Laboratories<br><br><br>New Experience of Technology Hub
Hydrogen and Low-Carbon Energy R&D Laboratories, New Experience of Technology Hub

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B. R&D Expenses in 2024.IQ (In millions of KRW)
Category Business Segment
1. Steel 2. Green<br>Infrastructure 3. GreenMaterials<br>and Energy 4. Others Total
Trading Construction Logistics and<br>etc.
Selling and Administrative Cost 6,180 1,566 591 2,187 10,654 28,183 49,361
Manufacturing Cost 196,510 226 161 — 38 — 196,935
R&D Cost (Intangible Assets) 9,998 — — — 735 1,311 12,044
Total* 212,688 1,792 752 2,187 11,427 29,494 258,340
Government Subsidy 16 16
R&D/Sales Ratio (%) 2.16 % 0.03 % 0.04 % 2.24 % 1.26 % 278.19 % 1.43 %
* Total includes government subsidy. ****
--- ---

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III. Financial Statements

1. Consolidated Financial Statements

A. Summary

(In millions of KRW)
Account 2024.1Q 2023 2022
As of March 31, 2024 As of December 31, 2023 As of December 31, 2022
[Total current assets] 46,799,396 46,212,299 47,649,466
Cash and cash equivalents 6,873,603 6,670,879 8,053,108
Other receivables, net 2,052,043 1,947,529 2,112,697
Other short-term financial assets 11,205,043 11,403,166 10,909,920
Trade accounts and notes receivable, net 11,675,370 11,015,303 9,769,553
Inventories 13,975,042 13,825,514 15,472,417
Other current assets 1,018,294 1,349,908 1,331,771
[Total non-current assets] 56,467,170 54,733,095 50,757,315
Other receivables, net 1,552,423 1,452,445 1,520,331
Other long-term financial assets 2,909,986 2,708,325 2,332,538
Investments in associates and joint ventures 5,049,382 5,020,264 4,996,551
Property, plant and equipment, net 36,670,868 35,206,248 31,781,196
Intangible assets, net 4,722,372 4,714,784 4,838,451
Other non-current assets 5,562,139 5,631,029 5,288,248
Total assets 103,266,566 100,945,394 98,406,781
[Total current liabilities] 23,077,178 21,861,518 23,188,190
[Total non-current liabilities] 19,792,618 19,419,979 16,961,190
Total liabilities 42,869,796 41,281,497 40,149,380
[Equity attributable to owners of the controlling company] 54,792,479 54,180,849 52,512,116
Share capital 482,403 482,403 482,403
Capital surplus 1,655,599 1,663,334 1,400,832
Hybrid bonds — — —
Retained earnings 54,231,554 53,857,514 52,965,180
Other equity attributable to owners of the controlling company -1,577,077 -1,822,402 -2,336,299
[Non-controlling Interests] 5,604,291 5,483,048 5,745,285
Total equity 60,396,770 59,663,897 58,257,401

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From January 1, 2024<br>to March 31, 2024 From January 1, 2023<br>to December 31, 2023 From January 1, 2022<br>to December 31, 2022
Revenue 18,051,950 77,127,197 84,750,204
Operating profit 583,022 3,531,423 4,850,053
Profit 607,815 1,845,850 3,560,484
[Profit attributable to owners of the controlling company] 540,715 1,698,092 3,144,087
[Profit attributable to non-controlling<br>interests] 67,100 147,758 416,397
Total comprehensive Income 962,017 2,330,891 3,794,358
[Total comprehensive income attributable to owners of the controlling company] 807,671 2,131,737 3,380,649
[Total comprehensive income attributable to<br>non-controlling interests] 154,346 199,154 413,709
Earnings per share(KRW) 7,126 22,382 41,456
Number of Consolidated Companies 193 192 181

B. The Standards Used for Reporting the Financial Statements

The Company prepared its financial statements in accordance with the Korean-International Financial Reporting Standards (the “K-IFRS”) and applied it to each Company’s final financial statements.

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2. Separate Financial Statements

A. Summary

(In millions of KRW)
Account 2024.1Q 2023 2022
As of March 31,<br>2024 As of December 31,<br>2023 As of December 31,<br>2022
[Total current assets] 5,425,699 4,657,899 4,308,290
Cash and Cash equivalents 630,785 376,914 1,415,201
Trade accounts and notes receivable, net 1,020,755 238,332 128,991
Other receivables, net 54,892 68,821 40,288
Other short-term financial assets 3,677,897 3,940,743 2,515,375
Inventories — — —
Other current assets 41,370 33,089 208,435
[Total non-current assets] 47,050,945 46,988,299 46,840,829
Other receivables, net 8,975 6,955 209,057
Other long-term financial assets 907,951 1,131,074 1,062,530
Investments in Subsidiaries, associates, and joint ventures 45,601,052 45,321,370 45,187,628
Property, plant and equipment, net 196,706 197,787 145,006
Intangible assets, net 19,732 19,341 15,902
Other non-current assets 316,529 311,772 220,706
Total assets 52,476,644 51,646,198 51,149,119
[Total current liabilities] 1,881,578 1,819,670 118,993
[Total non-current Liabilities] 2,362,310 2,326,663 3,858,263
Total liabilities 4,243,888 4,146,333 3,977,256
[Share capital] 482,403 482,403 482,403
[Capital surplus] 1,370,557 1,370,557 1,360,894
[Hybrid bonds] — — —

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Account 2024.1Q 2023 2022
[Retained earnings] 48,275,653 47,505,885 47,409,675
[Other equity] -1,895,857 -1,858,980 -2,081,109
Total equity 48,232,756 47,499,865 47,171,863
From January 1, 2024to March 31, 2024 From January 1, 2023to December 31, 2023 From January 1, 2022to December 31, 2022
--- --- --- --- --- --- ---
Revenue 898,738 1,454,079 8,589,819
Operating profit 813,076 1,106,629 1,674,893
Profit 941,339 799,578 -467,852
Earnings per share(KRW) 12,406 10,539 -6,185

B. The Standards Used for Reporting the Financial Statements

The company prepared its financial statements in accordance with the Korean—International Financial Reporting Standards (the “K-IFRS”). ****

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POSCO HOLDINGS INC.

and its subsidiaries

Interim condensed consolidated financial statements

for the three-month period ended March 31, 2024

with the independent auditor’s review report

Table of Contents

Table of Contents

Report on review of interim condensed consolidated financial statements

Page
Interim condensed consolidated financial statements
Interim condensed consolidated statements of financial position 1
Interim condensed consolidated statements of comprehensive income 3
Interim condensed consolidated statements of changes in equity 4
Interim condensed consolidated statements of cash flows 6
Notes to the interim condensed consolidated financial statements 8
Table of Contents
Ernst & Young Han Young<br><br><br>2-3F, 7-8F, Taeyoung Building, 111, <br>Yeouigongwon-ro,<br> <br>Yeongdeungpo-gu, Seoul 07241 Korea<br> <br><br><br><br>Tel: +82 2 3787 6600<br> <br>Fax: +82 2 783 5890<br><br><br>ey.com/kr

Report on review of interim condensed consolidated financial statements

(English translation of a report originally issued in Korean)

The Stockholders and Board of Directors

POSCOHOLDINGS INC.

We have reviewed the accompanying interim condensed consolidated financial statements of POSCO HOLDINGS INC. and its subsidiaries (collectively referred to as the “Group”), which comprise the interim condensed consolidated statement of financial position as of March 31, 2024, and the related interim condensed consolidated statement of comprehensive income, interim condensed consolidated statement of changes in equity and interim condensed consolidated statement of cash flows for the three-month period ended March 31, 2024, and a summary of material accounting policy information and other explanatory information.

Management’s responsibility for the interim condensed consolidated financial statements

Management is responsible for the preparation and presentation of these interim condensed consolidated financial statements in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (“KIFRS”) 1034, and for such internal control as management determines is necessary to enable the preparation of interim condensed consolidated financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s responsibility

Our responsibility is to express a conclusion on these interim condensed consolidated financial statements based on our review.

We conducted our review in accordance with the Review Standards for Quarterly and Semiannual Financial Statements established by the Securities and Futures Commission of the Republic of Korea. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Korean Standards on Auditing (“KSA”) and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed consolidated financial statements are not prepared, in all material respects, in accordance with KIFRS 1034.

1

A member firm of Ernst & Young Global Limited

Table of Contents

Other matters

The interim condensed consolidated statement of comprehensive income, interim condensed consolidated statement of changes in equity and interim condensed consolidated statement of cash flows for the three-month period ended March 31, 2023, prepared in accordance with KIFRS 1034 and presented for comparative purposes, have been reviewed by Samjong KPMG, whose review report dated May 15, 2023 expressed an unqualified review conclusion thereon.

Moreover, the consolidated statement of financial position as of December 31, 2023, and the related consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended (not presented herein) have been audited by Samjong KPMG, in accordance with KSA, whose report dated March 13, 2024 expressed an unqualified opinion thereon. The accompanying consolidated statement of financial position as of December 31, 2023, presented for comparative purposes, is not different, in all material respects, from the above audited consolidated statement of financial position.

LOGO

May 16, 2024

This review report is effective as of May 16, 2024, the independent auditor’s review report date. Accordingly, certain material subsequent events or circumstances may have occurred during the period from the date of the independent auditor’s review report to the time this review report is used. Such events and circumstances could significantly affect the accompanying interim interim condensed consolidated financial statements and may result in modification to this review report.

A member firm of Ernst & Young Global Limited

Table of Contents

POSCO HOLDINGS INC. and its subsidiaries

Interim condensed consolidated financial statements

for each of the three-month periods ended March 31, 2024 and 2023

“The accompanying interim condensed consolidated financial statements, including all footnotes and

disclosures, have been prepared by, and are the responsibility of, the Group.”

Kisub Jung

Representative Director and President

POSCO HOLDINGS INC.

Table of Contents

POSCO HOLDINGS INC. and its subsidiaries

Interim condensed consolidated statements of financial position

as of March 31, 2024 (Unaudited) and December 31, 2023

(in millions of Won) Notes March 31, 2024(unaudited) December 31, 2023
Assets
Cash and cash equivalents 21 ~~W~~ 6,873,603 6,670,879
Trade accounts and notes receivable, net 4,15,21,25,26,33 11,675,370 11,015,303
Other receivables, net 5,21,33 2,052,043 1,947,529
Other short-term financial assets 6,21 11,205,043 11,403,166
Inventories 7 13,975,042 13,825,514
Current income tax assets 105,146 101,979
Assets held for sale 8 5,336 406,945
Other current assets 14 907,812 840,984
Total current assets **** 46,799,395 **** 46,212,299
Long-term trade accounts and notes receivable, net 4,21 48,882 42,516
Other receivables, net 5,21,33 1,552,424 1,452,445
Other long-term financial assets 6,21 2,909,986 2,708,325
Investments in associates and joint ventures 9 5,049,382 5,020,264
Investment property, net 11 1,579,084 1,616,294
Property, plant and equipment, net 12 36,670,868 35,206,248
Intangible assets, net 13 4,722,373 4,714,784
Defined benefit assets, net 19 486,152 464,758
Deferred tax assets 3,288,852 3,334,266
Other non-current assets 14 159,168 173,195
Total non-current assets **** 56,467,171 **** 54,733,095
Total assets ~~W~~ 103,266,566 **** 100,945,394

(continued)

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POSCO HOLDINGS INC. and its subsidiaries

Interim condensed consolidated statements of financial position, Continued

as of March 31, 2024 (Unaudited) and December 31, 2023

(in millions of Won) Notes March 31, 2024(unaudited) December 31, 2023
Liabilities
Trade accounts and notes payable 21,33 ~~W~~ 5,383,455 5,782,825
Short-term borrowings and current installments of long-term borrowings 15,21 12,341,916 10,959,217
Other payables 16,21,33 3,302,340 2,737,478
Other short-term financial liabilities 17,21 178,426 163,626
Current income tax liabilities 221,057 319,096
Liabilities directly associated with the assets held for sale 8 — 141,890
Provisions 18 357,987 419,744
Other current liabilities 20,25,26 1,291,997 1,337,642
Total current liabilities 23,077,178 21,861,518
Long-term borrowings, excluding current installments 15,21 15,403,396 15,011,163
Other payables 16,21 851,570 873,565
Other long-term financial liabilities 17,21 83,834 153,782
Defined benefit liabilities, net 19 68,107 38,754
Deferred tax liabilities 2,797,317 2,760,234
Long-term provisions 18 480,464 468,009
Other non-current liabilities 20 107,930 114,472
Total non-current liabilities 19,792,618 19,419,979
Total liabilities 42,869,796 41,281,497
Equity
Share capital 22 482,403 482,403
Capital surplus 22 1,655,599 1,663,334
Accumulated other comprehensive income 23 312,581 67,256
Treasury shares 24 (1,889,658 ) (1,889,658 )
Retained earnings 54,231,554 53,857,514
Equity attributable to owners of the controlling company 54,792,479 54,180,849
Non-controlling interests 5,604,291 5,483,048
Total equity 60,396,770 59,663,897
Total liabilities and equity ~~W~~ 103,266,566 100,945,394

The accompanying notes are an integral part of the interim condensed consolidated financial statements.

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POSCO HOLDINGS INC. and its subsidiaries

Interim condensed consolidated statements of comprehensive income

for each of the three-month periods ended March 31, 2024 and 2023 (Unaudited)

Three-month period ended
(in millions of Won, except per share information) Notes March 31, 2024(Unaudited) March 31, 2023(Unaudited)
Revenue 25,26,33 ~~W~~ 18,051,950 19,380,878
Cost of sales 26,30 (16,723,117 ) (18,007,442 )
Gross profit 1,328,833 1,373,436
Selling and administrative expenses 21,27,30
Other administrative expenses (685,448 ) (605,428 )
Selling expenses (60,363 ) (63,305 )
Operating profit 583,022 704,703
Share of profit of subsidiaries under equity method 9 77,818 113,799
Finance income and costs 21,28
Finance income 1,434,301 1,683,550
Finance costs (1,258,182 ) (1,572,842 )
Other non-operating income and expenses 21,29,30
Other non-operating income 57,429 277,085
Other non-operating expenses (161,877 ) (205,038 )
Profit before income tax 732,511 1,001,257
Income tax expense 31 (124,696 ) (160,952 )
Profit 607,815 840,305
Other comprehensive income (loss)
Items that will not be reclassified subsequently to profit or loss:
Capital adjustement arising from investments in subsidiaries under equity method 1,035 726
Foreign currency translation differences 58,654 55,898
Remeasurements of defined benefit plans 19 5,518 (29,314 )
Net changes in fair value of equity investments at fair value through other comprehensive<br>income 21 7,648 142,013
Items that are or may be reclassified subsequently to profit or loss:
Capital adjustement arising from investments in subsidiaries under equity method 77,149 230,296
Foreign currency translation differences 204,605 249,044
Loss on valuation of derivatives 21 (407 ) (939 )
Other comprehensive income, net of tax 354,202 647,724
Total comprehensive income ~~W~~ 962,017 1,488,029
Profit attributable to:
Owners of the controlling company ~~W~~ 540,715 726,419
Non-controlling interests 67,100 113,886
Profit ~~W~~ 607,815 840,305
Total comprehensive income attributable to :
Owners of the controlling company ~~W~~ 807,671 1,325,264
Non-controlling interests 154,346 162,765
Total comprehensive income ~~W~~ 962,017 1,488,029
Earnings per share (in Won) 32
Basic earnings per share (in Won) 7,126 9,577
Diluted earnings per share (in Won) ~~W~~ 5,719 9,577

The accompanying notes are an integral part of the interim condensed consolidated financial statements.

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POSCO HOLDINGS INC. and its subsidiaries

Interim condensed consolidated statements of changes in equity

for each of the three-month periods ended March 31, 2024 and 2023 (Unaudited)

(in millions of Won) **** Attributable to owners of the controlling company
Sharecapital Capitalsurplus Accumulatedothercomprehensiveincome (loss) Treasuryshares Retainedearnings Subtotal Non- <br>controlling<br>interests Total
Balance as of January 1, 2023 ~~W~~ 482,403 1,400,832 (443,990 ) (1,892,308 ) 52,965,179 52,512,116 5,745,285 58,257,401
Comprehensive income:
Profit — — — — 726,419 726,419 113,886 840,305
Other comprehensive income (loss)
Remeasurements of defined benefit plans, net of tax — — — — (16,043 ) (16,043 ) (13,271 ) (29,314 )
Capital adjustment arising from investments in subsidiaries under equity method, net of<br>tax — — 224,434 — — 224,434 6,588 231,022
Net changes in fair value of equity investments at fair value through other comprehensive income,<br>net of tax — — 141,478 — 535 142,013 — 142,013
Foreign currency translation differences, net of tax — — 249,044 — — 249,044 55,898 304,942
Loss on valuation of derivatives, net of tax — — (603 ) — — (603 ) (336 ) (939 )
Total comprehensive income — — 614,353 — 710,911 1,325,264 162,765 1,488,029
Transactions with owners of the controlling company, recognized directly inequity:
Year-end dividends — — — — (151,698 ) (151,698 ) (77,109 ) (228,807 )
Changes in ownership interest in subsidiaries — 156,139 (12,480 ) — — 143,659 (144,663 ) (1,004 )
Interest of hybrid bonds — — — — — (4,067 ) (4,067 )
Disposal of treasury shares — 4,083 — 5,864 — 9,947 — 9,947
Share based payments — (9,087 ) — — — (9,087 ) — (9,087 )
Others — 1,509 (308 ) — (29,182 ) (27,981 ) 19,248 (8,733 )
Total transactions with owners of the controlling company — 152,644 (12,788 ) 5,864 (180,880 ) (35,160 ) (206,591 ) (241,751 )
Balance as of March 31, 2023 (Unaudited) ~~W~~ 482,403 1,553,476 157,575 (1,886,444 ) 53,495,210 53,802,220 5,701,459 59,503,679

(continued)

4

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POSCO HOLDINGS INC. and its subsidiaries

Interim condensed consolidated statements of changes in equity, continued

for each of the three-month periods ended March 31, 2024 and 2023 (Unaudited)

(in millions of Won) Attributable to owners of the controlling company Total
Sharecapital Capitalsurplus Accumulated<br>other<br>comprehensive<br>income (loss) Treasury<br>shares Retained<br>earnings Subtotal Non-<br>controlling<br>interests
Balance as of January 1, 2024 ~~W~~ 482,403 1,663,334 67,256 (1,889,658 ) 53,857,514 54,180,849 5,483,048 59,663,897
Comprehensive income:
Profit — — — — 540,715 540,715 67,100 607,815
Other comprehensive income (loss)
Remeasurements of defined benefit plans, net of tax — — — — 3,831 3,831 1,687 5,518
Capital adjustment arising from investments in subsidiaries under equity method, net of<br>tax — — 51,114 — — 51,114 27,071 78,185
Net changes in fair value of equity investments at fair value through other comprehensive income,<br>net of tax — — (10,413 ) — 18,123 7,710 (62 ) 7,648
Foreign currency translation differences, net of tax — — 204,605 — — 204,605 58,654 263,259
Loss on valuation of derivatives, net of tax — — (304 ) — — (304 ) (103 ) (407 )
Total comprehensive income — — 245,002 — 562,669 807,671 154,347 962,018
Transactions with owners of the controlling company, recognized directly inequity:
Year-end dividends — — — — (189,691 ) (189,691 ) (75,759 ) (265,450 )
Changes in subsidiaries — — — — — — 32,505 32,505
Changes in ownership interest in subsidiaries — (8,897 ) — — — (8,897 ) 12,344 3,447
Others — 1,162 323 — 1,062 2,547 (2,194 ) 353
Total transactions with owners of the controlling company — (7,735 ) 323 — (188,629 ) (196,041 ) (33,104 ) (229,145 )
Balance as of March 31, 2024 (Unaudited) ~~W~~ 482,403 1,655,599 312,581 (1,889,658 ) 54,231,554 54,792,479 5,604,291 60,396,770

The accompanying notes are an integral part of the interim condensed consolidated financial statements.

5

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POSCO HOLDINGS INC. and its subsidiaries

Interim condensed consolidated statements of cash flows

for each of the three-month periods ended March 31, 2024 and 2023 (Unaudited)

(in millions of Won) Three-month period ended
Notes March 31, 2024<br>(Unaudited) March 31, 2023<br>(Unaudited)
Cash flows from investing activities
Profit ~~W~~ 607,815 840,305
Adjustments for:
Depreciation 880,865 830,081
Amortization 122,641 122,791
Finance income (1,065,156 ) (1,145,674 )
Finance costs 906,792 1,048,441
Income tax expense 124,696 160,952
Impairment loss on property, plant and equipment 40,631 —
Gain on disposal of property, plant and equipment (5,997 ) (2,286 )
Loss on disposal of property, plant and equipment 13,365 18,687
Impairment loss on goodwill and other intangible assets 11 11
Gain on disposal of investments in subsidiaries, associates and joint ventures (18 ) (184,656 )
Loss on disposal of investments in subsidiaries, associates and joint ventures 20 4,384
Share of profit of subsidiaries under equity method (77,818 ) (113,799 )
Loss on disposal of assets held for sale 31,222 102,470
Post-employment benefit expense 62,248 51,337
Impairment loss on trade and other receivables 26,265 10,925
Loss on valuation of inventories 164,239 132,378
Reversal of provisions (16,364 ) —
Others, net (14,590 ) (45,464 )
1,193,052 990,578
Changes in operating assets and liabilities 35 (1,326,171 ) (1,557,108 )
Interest received 173,249 80,221
Interest paid (348,419 ) (227,422 )
Dividends received 153,228 84,488
Income taxes paid (167,612 ) (481,947 )
Net cash provided by (used in) operating activities ~~W~~ 285,142 (270,885 )

(continued)

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POSCO HOLDINGS INC. and its subsidiaries

Interim condensed consolidated statements of cash flows, continued

for each of the three-month periods ended March 31, 2024 and 2023 (Unaudited)

(in millions of Won) Notes March 31, 2024(Unaudited) March 31, 2023(Unaudited)
Cash flows from investing activities
Acquisitions of short-term financial instruments ~~W~~ (4,459,494 ) (29,316,847 )
Proceeds from disposal of short-term financial instruments 4,797,564 27,629,441
Increase in loans (296,521 ) (245,917 )
Collection of loans 256,327 291,315
Acquisitions of securities (275,226 ) (122,601 )
Proceeds from disposal of securities 435,388 59,943
Acquisitions of long-term financial instruments (3,437 ) (593 )
Acquisitions of investment in associates and joint ventures (34,511 ) (64,972 )
Proceeds from disposal of investment in associates and joint ventures 1,800 379
Acquisitions of investment property (1,516 ) (146 )
Proceeds from disposals of investment property 27 306
Acquisitions of property, plant and equipment (1,843,327 ) (1,353,532 )
Proceeds from disposal of property, plant and equipment 702 750
Acquisitions of intangible assets (77,683 ) (98,958 )
Proceeds from disposal of intangible assets 3,918 17,004
Collection of lease receivables 7,171 11,651
Cash flow from business combination — (150,201 )
Others, net (3,188 ) (2,014 )
Net cash used in investing activities (1,492,006 ) (3,344,992 )
Cash flows from financing activities
Proceeds from borrowings 1,251,862 3,999,922
Repayment of borrowings (1,139,406 ) (972,728 )
Proceeds from (repayment of) short-term borrowings, net 1,167,241 (528,476 )
Capital contribution from non-controlling<br>interests 36,505 38,353
Payment of cash dividends (734 ) (384 )
Payment of interest of hybrid bonds — (4,087 )
Repayment of lease liabilities (40,779 ) (48,161 )
Others, net 71,008 22,107
Net cash provided by financing activities 1,345,697 2,506,546
Effect of exchange rate fluctuation on cash held 63,891 65,269
Net increase(decrease) in cash and cash equivalents 202,724 (1,044,062 )
Cash and cash equivalents at beginning of the period 6,670,879 8,053,282
Cash and cash equivalents at end of the period ~~W~~ 6,873,603 7,009,220

The accompanying notes are an integral part of the interim condensed consolidated financial statements.

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POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

1. General Information

General information about POSCO HOLDINGS INC. (the “Company”), the controlling company, and its subsidiaries in the scope of consolidation, such as 53 domestic subsidiaries including POSCO INC. and 139 foreign subsidiaries including POSCO America Corporation, and 122 associates and joint ventures (collectively referred to as the “Group”) in accordance with KIFRS 1110 is as follows:

(a) The controlling company

POSCO HOLDINGS INC., the controlling company, was established on April 1, 1968, under the Commercial Code of the Republic of Korea. The shares of the Company have been listed on the Korea Exchange since June 10, 1988. The Company operates an investment business that controls and manages subsidiaries, etc. through ownership of their shares.

On March 2, 2022, the Company established a new subsidiary, POSCO, by a vertical spin-off of its steel business (which is wholly owned by the surviving company) on March 1, 2022, and changed the name of the surviving company to POSCO HOLDINGS INC.

As of March 31, 2024, the shares of POSCO HOLDINGS INC. are listed on the Korea Exchange, while its ADRs are listed on the New York Stock Exchanges.

(b) Consolidated subsidiary acquired or newly established during the three-month period ended March 31, 2024<br>is as follows:
Company Date of inclusion Ownership (%) Reason
--- --- --- ---
POSCO CNGR Nickel Solution January 2024 60.00 New establishment

2. Basis of preparation

Statement of compliance

The interim condensed consolidated financial statements have been prepared in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (“KIFRS”) 1034 Interim Financial Reporting, as prescribed in the Act onExternal Audit of Stock Companies of the Republic of Korea. The accompanying interim condensed consolidated financial statements have been translated into English from the Korean language financial statements. In the event of any differences in interpreting the financial statements or the independent auditor’s review report thereon, the Korean version, which is used for regulatory reporting purposes, shall prevail.

The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group’s annual financial statements as of December 31, 2023. Selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in financial position and performance of the Group incurred after December 31, 2023. These interim condensed consolidated financial statements do not include all of the disclosures required for full annual financial statements.

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Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

2. Basis of preparation (cont’d)

Use of estimatesand judgments

(a) Judgments, assumptions and estimation uncertainties

The preparation of the interim condensed consolidated financial statements in conformity with KIFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period prospectively.

The significant judgments made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those described in the annual financial statements as of and for the year ended December 31, 2023 except for the matters mentioned below.

(b) Measurement of fair value

The Group’s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities. The Group has an established control framework with respect to the measurement of fair values. This includes a valuation team that has overall responsibility for overseeing all significant fair value measurements, including Level 3 fair values, and reports directly to the financial officer.

The valuation team regularly reviews significant unobservable inputs and valuation adjustments. If third party information, such as broker quotes or pricing services, is used to measure fair values, then the valuation team assesses the evidence obtained from the third parties to support the conclusion that such valuations meet the requirements of KIFRS including the level in the fair value hierarchy in which such valuation techniques should be classified.

Significant valuation issues are reported to the Group’s Audit Committee.

When measuring the fair value of an asset or a liability, the Group uses market observable data as far as possible. Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows.

• 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<br>liabilities, either directly or indirectly.
--- ---
• Level 3 - inputs for the assets or liabilities that are not based on observable market data.<br>
--- ---

If the inputs used to measure the fair value of an asset or a liability might be categorized in different levels of the fair value hierarchy, then the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. The Group recognizes transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.

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Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

3. Summary of Material Accounting Policy information

Except for the items described in KIFRS 1034 Interim Financial Reporting and below, the accounting policies applied by the Group in these interim condensed consolidated financial statements are the same as those applied to the consolidated financial statements as of and for the year ended December 31, 2023.

Changes in Accounting Policies

Except for the standards and amendments applied for the first time for the reporting period commenced January 1, 2024 described below, the accounting policies applied by the Group in these consolidated financial statements are the same as those applied by the Group in its consolidated financial statements as of and for the year ended December 31, 2023.

(a) Supplier Finance Arrangements - Amendments to KIFRS 1007 and KIFRS 1107<br>

The amendments to KIFRS 1007 Statement of Cash Flows and KIFRS 1107 Financial Instruments: Disclosures clarify the characteristics of supplier finance arrangements and require additional disclosure of such arrangements. The disclosure requirements in the amendments are intended to assist users of financial statements in understanding the effects of supplier finance arrangements on an entity’s liabilities, cash flows and exposure to liquidity risk. The transition rules clarify that an entity is not required to provide the disclosures in any interim periods in the year of initial application of the amendments. Thus, the amendments had no impact on the Group’s interim condensed consolidated financial statements.

(b) Amendments to KIFRS 1116: Lease Liability in a Sale and Leaseback

The amendments to KIFRS 1116 specify the requirements that a seller-lessee uses in measuring the lease liability arising in a sale and leaseback transaction, to ensure the seller-lessee does not recognize any amount of the gain or loss that relates to the right of use it retains. The amendments had no impact on the Group’s interim condensed consolidated financial statements.

(c) Amendments to KIFRS 1001: Classification of Liabilities as Current orNon-current

The amendments to paragraphs 69 to 76 of KIFRS 1001 specify the requirements for classifying liabilities as current or non-current.

The amendments clarify:

• what is meant by a right to defer settlement;
• that a right to defer must exist at the end of the reporting period;
--- ---
• that classification is unaffected by the likelihood that an entity will exercise its deferral right; and<br>
--- ---
• that only if an embedded derivative in a convertible liability is itself an equity instrument would the terms of<br>a liability not impact its classification.
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Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

3. Summary of Material Accounting Policy information (cont’d)

In addition, a requirement has been introduced whereby an entity must disclose when a liability arising from a loan agreement is classified as non-current and the entity’s right to defer settlement is contingent on compliance with future covenants within twelve months. The amendments had no impact on the Group’s interim condensed consolidated financial statements.

4. Trade Accounts and Notes Receivable

Trade accounts and notes receivable as of March 31, 2024 and December 31, 2023 are as follows:

(in millions of Won) March 31, 2024 December 31, 2023
Current
Trade accounts and notes receivable ~~W~~ 10,154,501 9,382,640
Due from customers for contract work 1,792,859 1,916,238
Less: Allowance for doubtful accounts (271,990 ) (283,575 )
~~W~~ 11,675,370 11,015,303
Non-current
Trade accounts and notes receivable ~~W~~ 126,899 89,839
Less: Allowance for doubtful accounts (78,017 ) (47,323 )
~~W~~ 48,882 42,516

Consolidated entities discounted accounts receivable in accordance with accounts receivable factoring agreements with financial institutions in three-month periods ended March 31, 2024 and in year ended December 31, 2023. This transaction is a transaction with the right to appeal because the consolidated entity is obligated to pay the amount to the bank, etc. if the trade receivables are not recovered at maturity, and the transaction is accounted for as collateral borrowing. As of the three-month period ended March 31, 2024 and the year ended December 31, 2023, the book value of accounts receivable according to the transaction is ~~W~~116,640 million and ~~W~~132,942 million, respectively, and the amount is included in the short-term borrowings.

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Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

5. Other Receivables

Other receivables as of March 31, 2024 and December 31, 2023 are as follows:

(in millions of Won) March 31, 2024 December 31, 2023
Current
Short-term Loans ~~W~~ 311,716 223,011
Other accounts receivable 1,411,071 1,433,423
Accrued income(* 1) 250,726 237,154
Deposits 136,538 125,854
Others 25,729 15,349
Lease receivables 24,262 23,948
Less: Allowance for doubtful accounts (107,999 ) (111,210 )
~~W~~ 2,052,043 1,947,529
Non-current
Long-term Loans(* 1) ~~W~~ 1,314,133 1,204,645
Other accounts receivable 196,597 186,492
Accrued income 205,353 184,739
Deposits 295,042 308,185
Lease receivables 76,233 78,994
Less: Allowance for doubtful accounts (534,934 ) (510,610 )
~~W~~ 1,552,424 1,452,445
(*1) The Company recognized a full provision for bad debt of ~~W~~258,332 million<br>for other bonds to FQM Australia Holdings Pty Ltd., an affiliated company due to low possibility of collecting other bonds during the year ended December 31, 2023.
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Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

6. Other Financial Assets

Other financial assets as of March 31, 2024 and December 31, 2023 are as follows:

(in millions of Won) March 31, 2024 December 31, 2023
Current
Derivatives assets ~~W~~ 195,920 166,873
Debt securities 297,403 295,619
Deposit instruments(* 1) 4,722,751 4,400,267
Short-term financial instruments(* 1) 5,988,969 6,540,407
~~W~~ 11,205,043 11,403,166
Non-current
Derivatives assets ~~W~~ 217,565 134,269
Equity securities(* 2) 1,855,239 1,793,531
Debt securities 89,544 87,778
Other securities(* 2) 722,418 669,687
Deposit instruments(* 1) 25,213 23,060
Long-term financial instruments 7 —
~~W~~ 2,909,986 2,708,325
(*1) As of March 31, 2024 and December 31, 2023, financial instruments amounting to<br>~~W~~164,925 million and ~~W~~101,888 million, respectively, are restricted in use for financial arrangements, pledge and others.
--- ---
(*2) As of March 31, 2024 and December 31, 2023, ~~W~~202,141 million<br>and ~~W~~181,617 million of equity and other securities, respectively, have been provided as collateral for borrowings, construction projects and others.
--- ---

7. Inventories

Inventories as of March 31, 2024 and December 31, 2023 are as follows:

(in millions of Won) March 31, 2024 December 31, 2023
Finished goods ~~W~~ 2,511,828 2,615,009
Merchandise 1,022,478 1,049,467
Semi-finished goods 2,834,190 3,039,516
Raw materials 3,418,105 3,237,691
Fuel and materials 949,262 921,742
Construction inventories 254,838 256,558
Materials-in-transit 3,163,922 2,965,306
Others 97,931 87,802
14,252,554 14,173,091
Less: Allowance for inventories valuation(* 1) (277,512 ) (347,577 )
~~W~~ 13,975,042 13,825,514
(*1) In the three-month periods ended March 31, 2024 and the year ended March 31, 2023, the revamped<br>inventory asset valuation losses are ~~W~~73,505 million and ~~W~~106,535 million, respectively.
--- ---

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Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

8. Assets Held for Sale

Details of assets held for sale as of March 31, 2024 and December 31, 2023 are as follows:

(in millions of Won) March 31, 2024 December 31, 2023 (* 1)
Asset
Account receivables and other receivables ~~W~~ — 728
Inventories — 39,054
Other financial assets — 119,881
Property, plant and equipment 5,336 149,612
Intangible assets — 97,372
Others — 298
~~W~~ 5,336 406,945
Liability
Other payables ~~W~~ — 22,180
Provisions — 119,710
~~W~~ — 141,890
(*1) POSCO Canada Ltd., a subsidiary of the consolidated entity decided to invest in kind in the assets and<br>liabilities of Greenhills Mine and the shares of Elkview Mine Limited Partnership, which were respectively accounted for as investment stock in joint ventures and financial assets at fair value through profit or loss, in a partnership to be<br>established by the principal operator and major shareholder, Tech Coal Partnership, during the year ended December 31, 2023, and recognized ~~W~~401,804 million of assets to be sold and<br>~~W~~141,890 million of liabilities to be sold.
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Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

9. Investments in Associates and Joint ventures

(a) Details of investments in associates as of March 31, 2024 and December 31, 2023 are as follows:<br>
(in millions of Won) March 31, 2024 December 31,2023
--- --- --- --- --- --- --- --- --- --- ---
Company Number<br>of shares Ownership(% ) Acquisitioncost Book value Book value
[Domestic]
Samcheok Blue Power Co., Ltd.(* 1) 4,507,138 34.00 ~~W~~ 455,584 ~~W~~ 352,146 323,521
SNNC 18,130,000 49.00 90,650 71,680 100,692
Chun-cheon Energy Co., Ltd(* 1) 17,308,143 49.10 86,541 15,093 15,040
Pocheon-Hwado Highway Corp.(* 1) 7,109,230 27.89 35,546 22,927 23,998
CHUNGJU ENTERPRISE CITY DEVELOPMENT Co., Ltd 1,181,160 29.53 5,906 13,928 13,967
DaeSung SnM Co., Ltd (formerly, Daesung Steel)(* 2) 108,038 17.54 14,000 19,737 20,296
PCC Amberstone Private Equity Fund 1(* 2) 6,865,491,122 8.80 6,747 8,061 8,904
Others (50 companies)(* 1) 125,110 122,366
628,682 628,784
[Foreign]
South-East Asia Gas Pipeline Company Ltd. 135,219,000 25.04 132,907 294,040 287,282
AES Mong Duong Power Company Limited(* 1) — 30.00 164,303 251,597 230,699
9404-5515 Quebec Inc. 284,463,243 25.85 328,509 384,144 346,724
AMCI (WA) PTY LTD 49 49.00 209,664 60,044 60,225
NCR LLC — 22.10 247,077 256,007 253,121
KOREA LNG LTD. 2,400 20.00 135,205 62,420 58,759
Nickel Mining Company SAS 3,234,698 49.00 157,585 82,193 87,967
ZHEJIANG HUAYOU-POSCO ESM CO., LTD 648,530,000 40.00 120,072 107,218 105,300
PT. Wampu Electric Power(* 1) 8,708,400 20.00 10,054 16,496 15,632
POS-SeAH Steel Wire(Nantong) Co., Ltd. 50 25.00 4,723 9,102 8,642
Others (32 companies)(* 1) 191,356 209,118
1,714,617 1,663,469
~~W~~ 2,343,299 2,292,253
(*1) As of March 31, 2024 and December 31, 2023, investments in associates amounting to<br>~~W~~670,768 million and ~~W~~650,116 million, respectively, are provided as collateral in relation to the associates’ borrowings.
--- ---
(*2) As of March 31, 2024, the entities are classified as associates since the Group has significant influence<br>over the investees although the Group’s percentage of ownership is less than 20%, considering the structure of the entities’ Board of Directors and others.
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Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

9. Investments in Associates and Joint ventures (cont’d)

(b) Details of investments in joint ventures as of March 31, 2024 and December 31, 2023 are as follows:<br>
(in millions of Won) March 31, 2024 December 31,2023
--- --- --- --- --- --- --- --- --- --- ---
Company Number<br>of shares Ownership(% ) Acquisitioncost Book value Book value
[Domestic]
POSCO MC MATERIALS 11,568,000 60.00 ~~W~~ 115,680 ~~W~~ 151,936 155,748
Others (6 companies) 8,846 8,323
160,782 164,071
[Foreign]
Roy Hill Holdings Pty Ltd(* 1) 13,117,972 12.50 1,528,672 1,345,654 1,400,009
POSCO-NPS Niobium LLC 325,050,000 50.00 364,609 437,852 419,192
KOBRASCO 2,010,719,185 50.00 32,950 103,306 99,768
BX STEEL POSCO Cold Rolled Sheet Co., Ltd. — 25.00 61,961 118,995 111,001
DMSA/AMSA(* 1) — 3.89 346,880 11,567 16,572
PT NICOLE METAL INDUSTRY(* 2) 76,382,353 49.00 292,780 292,984 284,351
HBIS-POSCO Automotive Steel Co. Ltd — 50.00 235,251 207,689 208,765
Others (9 companies) 27,254 24,282
2,545,301 2,563,940
~~W~~ 2,706,083 2,728,011
(*1) As of March 31, 2024 and December 31, 2023, the investments in joint ventures are provided as<br>collateral in relation to the joint ventures’ borrowings.
--- ---
(*2) During the year ended December 31, 2023, the Group acquired 49% of shares in PT NICOLE METAL INDUSTRY, for<br>~~W~~292,780 million and classified them as investments in joint ventures.
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Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

9. Investments in Associates and Joint ventures (cont’d)

(c) Changes in investments in associates and joint ventures for the three-month period ended March 31, 2024<br>and the year ended December 31, 2023 are as follows:
1) For the three-month period ended March 31, 2024
--- ---
(in millions of Won)
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Company December 31,2023<br>Book value Acquisition Dividends Share ofprofits (losses) Other increase<br>(decrease)(* 1) March 31,<br>2024<br>Book value
[Domestic]
Samcheok Blue Power Co.,Ltd. ~~W~~ 323,521 25,680 (2,471 ) 5,416 — 352,146
SNNC 100,692 — — (29,012 ) — 71,680
Chun-cheon Energy Co., Ltd 15,040 — — (365 ) 418 15,093
Pocheon-Hwado Highway Corp. 23,998 — — (1,071 ) — 22,927
CHUNGJU ENTERPRISE CITY DEVELOPMENT Co.,Ltd 13,967 — — (38 ) — 13,928
DaeSung SnM Co., Ltd (formerly, Daesung Steel) 20,296 — — (559 ) — 19,737
PCC Amberstone Private Equity Fund 1 8,904 — — (71 ) (772 ) 8,061
POSCO MC MATERIALS 155,748 — — (3,812 ) — 151,936
Others (56 companies) 130,689 2,755 (1,645 ) 3,247 (1,091 ) 133,956
792,855 28,435 (4,116 ) (26,265 ) (1,445 ) 789,464
[Foreign]
South-East Asia Gas Pipeline Company Ltd. 287,282 — (15,015 ) 9,020 12,753 294,040
AES Mong Duong Power Company Limited 230,699 — — 10,121 10,777 251,597
9404-5515 Quebec Inc. 346,724 — — 17,186 20,234 384,144
AMCI (WA) PTY LTD 60,225 — — (909 ) 728 60,044
NCR LLC 253,121 — — 360 2,526 256,007
KOREA LNG LTD. 58,759 — (4,790 ) 4,734 3,717 62,420
Nickel Mining Company SAS 87,967 — — (7,641 ) 1,867 82,193
ZHEJIANG HUAYOU-POSCO ESM CO., LTD 105,300 — — (940 ) 2,858 107,218
PT. Wampu Electric Power 15,632 — — 196 668 16,496
POS-SeAH Steel Wire(Nantong) CO., Ltd. 8,642 — — 108 352 9,102
Roy Hill Holdings Pty Ltd 1,400,009 — (114,870 ) 58,800 1,715 1,345,654
POSCO-NPS Niobium LLC 419,192 — (8,041 ) 7,935 18,766 437,852
KOBRASCO 99,768 — — 2,488 1,050 103,306
BX STEEL POSCO Cold Rolled Sheet Co., Ltd. 111,001 — — 5,129 2,865 118,995
DMSA/AMSA 16,572 — — (5,663 ) 658 11,567
PT NICOLE METAL INDUSTRY 284,351 — — (89 ) 8,722 292,984
HBIS-POSCO Automotive Steel Co.Ltd 208,765 — — (6,782 ) 5,706 207,689
Others (41 companies) 233,400 2,343 (9,144 ) 10,030 (18,020 ) 218,610
4,227,409 2,343 (151,860 ) 104,083 77,942 4,259,918
~~W~~ 5,020,264 30,778 (155,976 ) 77,818 76,497 5,049,382
(*1) Other increase (decrease) represents the changes in investments in associates and joint ventures due to<br>disposals and change in capital adjustments effect from translations of financial statements of foreign investees and others for the three-month period ended March 31, 2024.
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Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

9. Investments in Associates and Joint ventures (cont’d)

2) For the year ended December 31, 2023
(in millions of Won)
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Company December 31,2022<br>Book value Acquisition Dividends Share of<br>profits (losses) Other increase<br>(decrease)(* 1) December 31,<br>2023<br>Book value
[Domestic]
Samcheok Blue Power Co.,Ltd. ~~W~~ 352,500 — (10,020 ) (18,802 ) (157 ) 323,521
SNNC 182,414 — — (81,803 ) 81 100,692
QSONE Co.,Ltd.(*2) 86,378 — — 245 (86,623 ) —
Chun-cheon Energy Co., Ltd 9,513 — — 4,990 537 15,040
Pocheon-Hwado Highway Corp. 27,165 636 — (3,803 ) — 23,998
CHUNGJU ENTERPRISE CITY DEVELOPMENT Co.,Ltd 14,605 — — (638 ) — 13,967
DaeSung SnM Co., Ltd 20,469 — — 75 (248 ) 20,296
PCC Amberstone Private Equity Fund 1 9,326 — (622 ) 562 (362 ) 8,904
POSCO MC MATERIALS 161,465 — (9,000 ) 3,176 107 155,748
Others (55 companies) 160,553 16,439 (4,292 ) 1,966 (43,977 ) 130,689
1,024,388 17,075 (23,934 ) (94,032 ) (130,642 ) 792,855
[Foreign]
South-East Asia Gas Pipeline Company Ltd. 290,318 — (59,295 ) 50,340 5,919 287,282
AES Mong Duong Power Company Limited 209,594 — (33,839 ) 38,782 16,162 230,699
9404-5515 Quebec Inc. 331,261 — (14,251 ) 16,494 13,220 346,724
FQM Australia Holdings Pty Ltd 98,103 — — (111,783 ) 13,680 —
Eureka Moly LLC 14,574 — — (15,020 ) 446 —
AMCI (WA) PTY LTD 57,830 — — (503 ) 2,898 60,225
NCR LLC 187,372 65,542 — (6,999 ) 7,206 253,121
KOREA LNG LTD. 29,124 — (21,106 ) 21,060 29,681 58,759
Nickel Mining Company SAS 90,636 — — (8,358 ) 5,689 87,967
ZHEJIANG HUAYOU-POSCO ESM CO., LTD 98,933 15,640 — (8,435 ) (838 ) 105,300
PT. Wampu Electric Power 16,659 — (1,624 ) 1,890 (1,293 ) 15,632
POS-SeAH Steel Wire(Nantong) Co., Ltd. 8,590 — — 98 (46 ) 8,642
Roy Hill Holdings Pty Ltd 1,418,022 — (367,445 ) 292,478 56,954 1,400,009
POSCO-NPS Niobium LLC 412,002 — (35,543 ) 35,148 7,585 419,192
KOBRASCO 103,044 — (36,471 ) 21,795 11,400 99,768
BX STEEL POSCO Cold Rolled Sheet Co., Ltd. 111,219 — (12,386 ) 12,669 (501 ) 111,001
DMSA/AMSA 23,740 — — (7,681 ) 513 16,572
PT NICOLE METAL INDUSTRY — 292,780 — 39 (8,468 ) 284,351
HBIS-POSCO Automotive Steel Co. Ltd 216,138 — — (6,765 ) (608 ) 208,765
Others (37 companies) 255,004 — (52,444 ) 38,461 (7,621 ) 233,400
3,972,163 373,962 (634,404 ) 363,710 151,978 4,227,409
~~W~~ 4,996,551 391,037 (658,338 ) 269,678 21,336 5,020,264
(*1) Other increase (decrease) represents the changes in investments in associates and joint ventures due to<br>disposals and change in capital adjustments effect from translations of financial statements of foreign investees and others during the year ended December 31, 2023.
--- ---
(*2) During the year ended December 31, 2023, the Company acquired an additional 50% of the shares held by an<br>external shareholder of QSONE Co.,Ltd., which was previously classified as an investment in an associate. As a result, the Company gained control of the company and consolidated it.
--- ---

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Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

9. Investments in Associates and Joint ventures (cont’d)

(d) Summarized financial information of associates and joint ventures as of and for the three-month period ended<br>March 31, 2024 and the year ended December 31, 2023 are as follows:
1) March 31, 2024
--- ---
(in millions of Won)
--- --- --- --- --- --- --- --- --- --- --- --- ---
Company Assets Liabilities Equity<br>(deficit) Sales Net income<br>(loss)
[Domestic]
Samcheok Blue Power Co.,Ltd. ~~W~~ 4,451,021 3,817,568 633,453 173,846 20,542
SNNC 614,608 449,922 164,686 139,497 (59,591 )
Chun-cheon Energy Co., Ltd 589,531 468,784 120,747 110,330 2,642
Pocheon-Hwado Highway Corp. 750,142 628,854 121,288 2,234 260
CHUNGJU ENTERPRISE CITY DEVELOPMENT Co.,Ltd 19,739 2,872 16,867 — (130 )
DaeSung SnM Co., Ltd 180,093 98,959 81,134 20,215 (3,188 )
PCC Amberstone Private Equity Fund 1 96,249 4,603 91,646 5 (805 )
POSCO MC MATERIALS 383,505 128,386 255,119 44,760 (5,453 )
[Foreign]
South-East Asia Gas Pipeline Company Ltd. 1,838,833 664,562 1,174,271 95,289 36,019
AES Mong Duong Power Company Limited 1,739,481 946,450 793,031 124,068 33,736
9404-5515 Quebec Inc. 1,561,385 — 1,561,385 — 66,471
FQM Australia Holdings Pty Ltd 187,585 1,298,686 (1,111,101 ) 52,225 (162,369 )
KOREA LNG LTD. 312,194 92 312,102 24,240 23,671
Nickel Mining Company SAS 500,388 271,331 229,057 41,298 (23,162 )
ZHEJIANG HUAYOU-POSCO ESM CO., LTD 326,628 58,076 268,552 27,597 (2,350 )
PT. Wampu Electric Power 205,171 125,712 79,459 2,907 981
POS-SeAH Steel Wire(Nantong) Co., Ltd. 84,375 49,169 35,206 27,360 444
Roy Hill Holdings Pty Ltd 10,447,683 2,871,895 7,575,788 1,793,097 568,277
POSCO-NPS Niobium LLC 875,502 — 875,502 — 15,659
KOBRASCO 233,199 27,193 206,006 24,291 15,252
BX STEEL POSCO Cold Rolled Sheet Co., Ltd. 726,076 276,960 449,116 474,574 20,515
DMSA/AMSA 3,123,331 2,826,044 297,287 184,731 (145,610 )
HBIS-POSCO Automotive Steel Co.Ltd 877,556 452,955 424,601 119,560 (15,006 )
PT NICOLE METAL INDUSTRY 406,454 2,578 403,876 — (182 )

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Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

9. Investments in Associates and Joint ventures (cont’d)

2) December 31, 2023
(in millions of Won)
--- --- --- --- --- --- --- --- --- --- --- --- ---
Company Assets Liabilities Equity<br>(deficit) Sales Net income<br>(loss)
[Domestic]
Samcheok Blue Power Co., Ltd. ~~W~~ 4,228,568 3,669,074 559,494 14,002 (28,880 )
SNNC 612,992 388,715 224,277 766,011 (168,553 )
Chun-cheon Energy Co., Ltd 571,495 453,390 118,105 502,879 10,453
Pocheon-Hwado Highway Corp. 583,935 462,900 121,035 — (1,824 )
CHUNGJU ENTERPRISE CITY DEVELOPMENT Co., Ltd 19,995 2,998 16,997 5,595 (2,160 )
DaeSung SnM Co., Ltd 178,251 93,930 84,321 108,660 430
PCC Amberstone Private Equity Fund 1 105,145 3,923 101,222 12,134 6,391
POSCO MC MATERIALS 431,090 170,518 260,572 194,238 2,998
[Foreign]
South-East Asia Gas Pipeline Company Ltd. 1,758,765 611,484 1,147,281 434,358 201,031
AES Mong Duong Power Company Limited 1,612,793 889,424 723,369 449,807 129,274
9404-5515 Quebec Inc. 1,430,295 — 1,430,295 — 63,809
FQM Australia Holdings Pty Ltd 180,931 1,219,922 (1,038,991 ) 453,626 (1,480,586 )
KOREA LNG LTD. 94,661 136 94,525 108,081 105,300
Nickel Mining Company SAS 520,209 272,567 247,642 296,130 (26,786 )
ZHEJIANG HUAYOU-POSCO ESM CO., LTD 297,683 33,927 263,756 34,372 (21,081 )
PT. Wampu Electric Power 206,942 131,822 75,120 20,166 9,452
POS-SeAH Steel Wire(Nantong) Co., Ltd. 82,568 48,727 33,841 117,208 522
Roy Hill Holdings Pty Ltd 10,929,518 3,007,919 7,921,599 8,146,546 2,826,424
POSCO-NPS Niobium LLC 838,180 — 838,180 — 64,687
KOBRASCO 224,406 25,475 198,931 63,338 43,591
BX STEEL POSCO Cold Rolled Sheet Co., Ltd. 659,704 242,566 417,138 1,647,395 50,675
DMSA/AMSA 3,058,209 2,632,239 425,970 1,106,369 (197,482 )
HBIS-POSCO Automotive Steel Co., Ltd 826,886 398,751 428,135 340,341 (12,584 )
PT NICOLE METAL INDUSTRY 389,077 2,237 386,840 — 79

10. Joint Operations

Details of significant joint operations that the Group is participating in as a party to a joint arrangement as of March 31, 2024 are as follows:

Joint operations Operation Ownership (%) Location
Myanmar A-1/A-3 mine Mine development and gas production 51.00 Myanmar
Offshore midstream Gas transportation facility 51.00 Myanmar
Mt. Thorley J/V Mine development 20.00 Australia
POSMAC J/V Mine development 20.00 Australia
Samcheok Thermal Power Plant EPC (Unit 1, 2) construction work Construction 49.00 Korea
Sinansan Line Double Track Train Private Investment project construction work Construction 36.00 Korea
Panama Metro Line 3 Project construction work Construction 20.00 Panama
2*600 MW Matarbari Ultra Super Critical Coal-Fired Power construction work Construction 67.00 Bangladesh
Yongmun 123 Construction work Reconstruction Maintenance Project Construction 70.00 Korea
Songdo B5 Block officetel Project Construction work Construction 80.00 Korea
Jeonju Seosin-dong Housing Redevelopment Project Construction 70.00 Korea
Anyang Jinheung Apartment Construction work Construction 45.00 Korea

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Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

11. Investment Property

Changes in the carrying amount of investment property for the three-month period ended March 31, 2024 and the year ended December 31, 2023 are as follows:

(a) For the three-month period ended March 31, 2024
(in millions of Won) Beginning Acquisitions Disposals Depreciation Impairmentloss Others(* 1) Ending
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Land ~~W~~ 787,304 1,710 — — (215 ) 33,512 822,311
Buildings 655,786 1,506 — (6,812 ) (456 ) (60,512 ) 589,512
Structures 1,873 — — (228 ) — 185 1,830
Right-of-use assets 171,331 — (27 ) (11,679 ) — 5,806 165,431
~~W~~ 1,616,294 3,216 (27 ) (18,719 ) (671 ) (21,009 ) 1,579,084
(*1) Includes reclassification resulting from changes in purpose of use, and adjusted foreign currency translation<br>difference and others.
--- ---
(b) For the year ended December 31, 2023
--- ---
(in millions of Won) Beginning Acquisitions BusinessCombination(*2) Disposals Depreciation Others(* 1) Ending
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Land ~~W~~ 308,523 54,891 473,301 (60 ) — (49,351 ) 787,304
Buildings 593,505 1,006 83,739 (303 ) (28,902 ) 6,741 655,786
Structures 1,356 — — — (1,049 ) 1,566 1,873
Right-of-use assets 170,647 216 — (78 ) (5,635 ) 6,181 171,331
~~W~~ 1,074,031 56,113 557,040 (441 ) (35,586 ) (34,863 ) 1,616,294
(*1) Includes reclassification resulting from changes in purpose of use, and adjusted foreign currency translation<br>difference and others.
--- ---
(*2) Represents increases in investment property due to business combination upon incorporation of QSONE Co.,Ltd.<br>into a subsidiary during the year ended December 31, 2023.
--- ---

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Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

12. Property, Plant and Equipment

(a) Changes in the carrying amount of property, plant and equipment for the three-month period ended March 31,<br>2024 and the year ended December 31, 2023 are as follows:
1) For the three-month period ended March 31, 2024
--- ---
(in millions of Won) Beginning Acquisitions Disposals Depreciation Impairmentloss Others(* 1) Ending
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Land ~~W~~ 3,290,244 398 — — — (10,653 ) 3,279,989
Buildings 4,427,632 3,139 (151 ) (82,993 ) (35 ) 133,387 4,480,979
Structures 3,081,524 472 (1,162 ) (69,327 ) (2,488 ) 250,904 3,259,923
Machinery and equipment 16,539,192 33,132 (2,872 ) (591,975 ) (38,108 ) 793,687 16,733,056
Vehicles 79,595 3,397 (452 ) (7,530 ) — 1,287 76,297
Tools 128,865 10,055 (183 ) (13,784 ) — 5,933 130,886
Furniture and fixtures 189,887 7,855 (512 ) (14,175 ) — 4,569 187,624
Right-of-use assets 998,305 46,597 (2,028 ) (79,992 ) — 104,763 1,067,645
Bearer plants 137,331 — — (2,370 ) — 2,135 137,096
Construction-in-progress 6,333,673 1,940,033 (401 ) — — (955,932 ) 7,317,373
~~W~~ 35,206,248 2,045,078 (7,761 ) (862,146 ) (40,631 ) 330,080 36,670,868
(*1) Represents assets transferred from<br>construction-in-progress to intangible assets and other property, plant and equipment, reclassifications resulting from change in purpose of use, adjustments of foreign<br>currency translation differences and others.
--- ---
2) For the year ended December 31, 2023
--- ---
(in millions of Won) Beginning Acquisitions BusinessCombination(* 2) Disposals Depreciation Impairmentloss(* 3,4) Others(* 1) Ending
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Land ~~W~~ 3,103,165 83,489 32,565 (7,502 ) — (5,471 ) 83,998 3,290,244
Buildings 4,174,894 53,344 5,770 (14,619 ) (326,280 ) (28,614 ) 563,137 4,427,632
Structures 3,162,927 16,498 3,651 (6,915 ) (261,970 ) (28,483 ) 195,816 3,081,524
Machinery and equipment 16,422,830 211,181 — (63,195 ) (2,401,947 ) (202,885 ) 2,573,208 16,539,192
Vehicles 52,131 34,004 — (782 ) (26,322 ) — 20,564 79,595
Tools 90,961 40,170 — (607 ) (52,444 ) (77 ) 50,862 128,865
Furniture and fixtures 173,345 36,975 655 (1,516 ) (61,947 ) (63 ) 42,438 189,887
Right-of-use assets 921,198 243,433 — (15,095 ) (170,386 ) — 19,155 998,305
Bearer plants 141,720 — — — (9,579 ) — 5,190 137,331
Construction-in-progress 3,538,025 6,388,837 — (2,269 ) — (8,420 ) (3,582,500 ) 6,333,673
~~W~~ 31,781,196 7,107,931 42,641 (112,500 ) (3,310,875 ) (274,013 ) (28,132 ) 35,206,248
(*1) Represents assets transferred from<br>construction-in-progress to intangible assets and other property, plant and equipment, reclassifications resulting from change in purpose of use, adjustments of foreign<br>currency translation differences and others.
--- ---
(*2) Represents increases in property, plant and equipment upon reclassification of QSONE Co.,Ltd., which was<br>previously an associate, into a subsidiary by acquiring additional shares during the year ended December 31, 2023.
--- ---
(*3) The consolidated entity calculated the net fair value for individual assets that were suspended due to some<br>changes in operation plans, such as lithium production facilities in Gwangyang and Argentina, and recognized an impairment loss of ~~W~~196,207 million for property, plant and equipment whose recoverable amount was<br>less than the book value during the year ended December 31, 2023.
--- ---
(*4) The consolidated entity calculated the value of use for the hydrogen peroxide manufacturing facility in<br>Gwangyang, which had signs of damage due to changes in raw material prices and changes in production plans during the year ended December 31, 2023, and recognized an impairment loss of ~~W~~46,535 million for<br>property, plant and equipment whose recoverable amount was less than the book value.
--- ---

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Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

12. Property, Plant and Equipment (cont’d)

(b) Changes in the carrying amount of<br>right-of-use assets presented as investment property and property, plant and equipment for the three-month period ended March 31, 2024 and the year ended<br>December 31, 2023 are as follows:
1) For the three-month period ended March 31, 2024
--- ---
(in millions of Won) Beginning Acquisitions Depreciation Others Ending
--- --- --- --- --- --- --- --- --- --- --- --- ---
Land ~~W~~ 363,789 638 (10,737 ) (27,099 ) 326,591
Buildings and structures 151,366 29,346 (8,598 ) 65,383 237,497
Machinery and equipment 355,604 10,415 (58,156 ) 78,957 386,820
Vehicles 48,228 5,212 (4,552 ) (4 ) 48,884
Ships 220,754 — (6,470 ) — 214,284
Others 29,895 986 (3,158 ) (8,722 ) 19,001
~~W~~ 1,169,636 46,597 (91,671 ) 108,515 1,233,077
2) For the year ended December 31, 2023
--- ---
(in millions of Won) Beginning Acquisitions Depreciation Others Ending
--- --- --- --- --- --- --- --- --- --- --- --- ---
Land ~~W~~ 368,167 10,470 (15,582 ) 734 363,789
Buildings and structures 163,648 49,929 (52,697 ) (9,514 ) 151,366
Machinery and equipment 319,021 73,761 (55,481 ) 18,303 355,604
Vehicles 18,652 38,410 (16,456 ) 7,622 48,228
Ships 215,496 28,178 (22,920 ) — 220,754
Others 6,862 42,901 (12,885 ) (6,983 ) 29,895
~~W~~ 1,091,846 243,649 (176,021 ) 10,162 1,169,636
(c) The amounts recognized in profit or loss related to leases for each of the three-month periods ended<br>March 31, 2024 and 2023 are as follows:
--- ---
(in millions of Won) March 31, 2024 March 31, 2023
--- --- --- --- ---
Interest on lease liabilities ~~W~~ 12,346 9,307
Expenses related to short-term leases 18,935 7,481
Expenses related to leases of low-value assets 6,656 5,353
~~W~~ 37,937 22,141

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Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

13. Goodwill and Other Intangible Assets

Changes in the carrying amount of goodwill and other intangible assets for the three-month period ended March 31, 2024 and the year ended December 31, 2023 are as follows:

(a) For the three-month period ended March 31, 2024
(in millions of Won) Beginning Acquisitions Disposals Amortization Impairmentloss Others(* 2) Ending
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Goodwill ~~W~~ 403,172 — — — — 145 403,317
Intellectual property rights 3,029,651 80,971 — (75,073 ) — 18,981 3,054,530
Membership(* 1) 138,184 944 (777 ) (41 ) (11 ) 126 138,425
Development expense 126,818 1,428 — (18,810 ) — 1,658 111,094
Port facilities usage rights 182,411 — — (3,700 ) — — 178,711
Exploratation and evaluation assets 163,446 7,231 — — — 4,304 174,981
Development assets 10,235 223 — — — (31 ) 10,427
Customer relationships 196,895 — — (11,120 ) — (45 ) 185,730
Other intangible assets 463,972 22,393 (176 ) (13,897 ) — (7,134 ) 465,158
~~W~~ 4,714,784 113,190 (953 ) (122,641 ) (11 ) 18,004 4,722,373
(*1) Estimated useful life of membership is indefinite.
--- ---
(*2) Represents assets transferred from<br>construction-in-progress to intangible assets and assets transferred from property, plant and equipment, adjustments of foreign currency translation difference and<br>others.
--- ---
(b) For the year ended December 31, 2023
--- ---
(in millions of Won) Beginning Acquisitions Disposals Amortization Impairmentloss(* 2) Others(* 3) Ending
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Goodwill ~~W~~ 442,487 — — — (36,093 ) (3,222 ) 403,172
Intellectual property rights 3,136,072 208,874 (5 ) (321,752 ) (89,986 ) 96,448 3,029,651
Membership(* 1) 132,942 7,360 (1,920 ) (170 ) 11 (39 ) 138,184
Development expense 116,171 13,130 (97 ) (73,319 ) — 70,933 126,818
Port facilities usage rights 197,211 — — (14,800 ) — — 182,411
Exploratation and evaluation assets 100,991 67,000 — — (1,204 ) (3,341 ) 163,446
Development assets 78,970 27,831 — — — (96,566 ) 10,235
Customer relationships 241,311 — — (44,478 ) — 62 196,895
Other intangible assets 392,296 139,100 (625 ) (43,674 ) (2,055 ) (21,070 ) 463,972
~~W~~ 4,838,451 463,295 (2,647 ) (498,193 ) (129,327 ) 43,205 4,714,784
(*1) Estimated useful life of membership is indefinite.
--- ---
(*2) During the year ended December 31, 2023, POSCO Canada Ltd., a subsidiary, decided to make an investment in<br>kind by investing Greenhills Mine, which had been recognized as a joint operation, to a new partnership established by Teck Coal Partnership, the main operator. POSCO Canada Ltd. estimated the recoverable amount considering the fair value and<br>acquired shares of the new partnership, and recognized an impairment loss of ~~W~~ 88,518 million since recoverable amounts are less than their carrying amounts.
--- ---
(*3) Represents assets transferred from construction-in-progress to<br>intangible assets and assets transferred from property, plant and equipment, adjustments of foreign currency translation difference and others.
--- ---

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Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

14. Other Assets

Other assets as of March 31, 2024 and December 31, 2023 are as follows:

(in millions of Won) March 31, 2024 December 31, 2023
Current
Advance payments ~~W~~ 518,764 593,300
Prepaid expenses 359,672 226,960
Firm commitment asset 11,614 3,418
Others 17,762 17,306
~~W~~ 907,812 840,984
Non-current
Long-term advance payments ~~W~~ 30,972 46,989
Long-term prepaid expenses 27,794 30,232
Others 100,402 95,974
~~W~~ 159,168 173,195

15. Borrowings

(a) Short-term borrowings and current portion of long-term borrowings and others as of March 31, 2024 and<br>December 31, 2023 are as follows:
(in millions of Won) Lenders Issuance date Maturity date Interest rate (% ) March 31, 2024 December 31, 2023
--- --- --- --- --- --- --- --- --- --- ---
Short-term borrowings
Bank overdrafts JP Morgan and others April, 2023~March, 2024 April, 2024~December, 2024 3.65 ~ 7.55 ~~W~~ 67,338 69,160
Short-term borrowings HSBC and others April, 2023~March, 2024 April, 2024~March, 2025 0.10 ~ 58.85 6,186,323 4,890,120
6,253,661 4,959,280
Current portion of long-term liabilities
Current portion of long-term borrowings Export-Import Bank of Korea and others September, 2001~March, 2024 April, 2024~December, 2024 0.25 ~ 9.15 1,067,318 990,088
Current portion of debentures KB Securities co.,Ltd. and others April, 2019~October, 2021 January, 2024~October, 2024 1.64 ~ 2.75 3,381,552 3,255,375
Less: Current portion of discount on debentures issued (3,081 ) (2,217 )
Current portion of exchangable bonds(* 1) Foreign currency exchangable bonds September, 2021 September, 2026 1,642,466 1,756,691
6,088,255 5,999,937
~~W~~ 12,341,916 10,959,217
(*1) The issuance conditions of the exchangeable bonds issued by the Group are as follows. As of December 31,<br>2023, exchangeable bonds are reclassified as current liabilities because the bondholders’ put option for redemption has become exercisable within 12 months.
--- ---

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Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

15. Borrowings (cont’d)

Foreign currency exchangable bonds
Type of bond Exchangable bonds
Aggregate principal amount EUR 1,065,900,000
Interest rate - Coupon rate : -<br> <br><br><br><br>- Yield to Maturity : (0.78%)
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<br>maturity as a lump sum<br> <br><br> <br>2) Prepayment : The issuer has call option and the<br>bondholders have put option
Exchange rate 100%
Exchange price (Won/share) 446,504(*)
Underlying shares exchange Registered common shares(treasury shares)
Exchange period From October 12, 2021 to August 22, 2026
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, issuance of<br>options or warranties to shareholders, share dividend, cash dividend, issuance of new shares under the market price.
Put option by bondholders - 3 years(September 1, 2024) from the closing date<br> <br><br><br><br>- In the event of a change of control of the Company<br> <br><br><br><br>- Where the shares issued by the Company are delisted (or suspended for more than 30 consecutive trading days)
Call option by the Issuer - Share price(based on closing price) is higher than 130% of exchange price for more than 20 trading days during 30 consecutive trading<br>days in a row, after 3 years (September 1, 2024) from the closing day to 30 business days before the maturity of bonds.<br> <br><br><br><br>- When the outstanding balance of outstanding bonds is less than 10% of the total issuance(Clean-Up Call)<br><br><br><br> <br>- Where additional reasons for tax burden arise due to the amendment of relevant laws<br>and regulations, etc.
(*) The exchange price has changed due to cash dividends paid during the three-month period ended March 31,<br>2024.
--- ---

The Group has designated exchangeable bonds listed on the Singapore Stock Exchange as financial liabilities measured at fair value through profit or loss. The quoted transaction price is used in fair value measurement, and changes in fair value are recognized in profit or loss.

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Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

(b) Long-term borrowings, excluding current portion and others, as of March 31, 2024 and December 31,<br>2023 are as follows:
(in millions of Won) Lenders Issuance date Maturity date Interest rate (% ) March 31, 2024 December 31, 2023
--- --- --- --- --- --- --- --- --- --- --- ---
Long-term borrowings Export-Import Bank of Korea and others September, 2001~March, 2024 May, 2025~March, 2040 0.10 ~ 9.16 ~~W~~ 4,989,914 4,590,541
Less: Present value discount (7,663 ) (9,414 )
Bonds KB Securities co.,Ltd. and others July, 2015~March, 2024 April, 2025~January, 2033 1.68 ~ 6.82 10,474,868 10,478,394
Less: Discount on debentures issued (53,723 ) (48,359 )
~~W~~ 15,403,396 15,011,162
(c) Assets pledged as collateral with regard to the borrowings as of March 31, 2024 are as follows:<br>
--- ---
(in millions of Won) Lenders Book value Pledged amount
--- --- --- --- --- --- ---
Property, plant and equipment and Investment property Korea<br>Development<br>Bank and<br>others ~~W~~ 4,424,563 8,056,242
Trade accounts and notes receivable Korea<br>Development<br>Bank and<br>others 116,640 116,640
Financial instruments Shinhan Bank<br>and others 73,364 73,279
~~W~~ 4,614,567 8,246,161

16. Other Payables

Other payables as of March 31, 2024 and December 31, 2023 are as follows:

(in millions of Won) March 31, 2024 December 31, 2023
Current
Accounts payable ~~W~~ 1,282,463 1,174,097
Accrued expenses 1,230,017 1,046,891
Dividend payable 267,976 3,261
Lease liabilities 166,556 163,952
Withholdings 355,328 349,277
~~W~~ 3,302,340 2,737,478
Non-current
Accounts payable ~~W~~ 8,545 14,143
Accrued expenses 8,133 8,073
Lease liabilities 753,656 760,368
Long-term withholdings 81,236 90,981
~~W~~ 851,570 873,565

17. Other Financial Liabilities

Other financial liabilities as of March 31, 2024 and December 31, 2023 are as follows:

(in millions of Won) March 31, 2024 December 31, 2023
Current
Derivative liabilities ~~W~~ 48,934 38,631
Financial guarantee liabilities 4,302 5,114
Others(* 1) 125,190 119,881
~~W~~ 178,426 163,626
Non-current
Derivative liabilities ~~W~~ 11,854 81,291
Financial guarantee liabilities 7,346 7,858
Others 64,634 64,633
~~W~~ 83,834 153,782
(*1) The Group recognized other financial liabilities in connection with the put option agreement which POSCO FUTURE<br>MATERIALS CANADA INC. (formerly, POSCO CHEMICAL CANADA INC.), a subsidiary, entered into with GM Battery Raw Materials Corporation.
--- ---

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POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

18. Provisions

(a) Provisions as of March 31, 2024 and December 31, 2023 are as follows:
(in millions of Won) March 31, 2024 December 31, 2023
--- --- --- --- --- --- --- --- ---
Current Non-current Current Non-current
Provision for bonus payments ~~W~~ 79,642 38,967 146,277 38,114
Provision for construction warranties 47,556 142,810 50,222 146,536
Provision for legal contingencies and claims(* 1) 21,210 50,456 20,893 52,169
Provision for the restoration(* 2) 6,834 178,254 14,567 161,253
Others(* 3,4,5) 202,745 69,977 187,785 69,937
~~W~~ 357,987 480,464 419,744 468,009
(*1) The Group recognized probable outflow of resources amounting to<br>~~W~~37,918 million and ~~W~~45,712 million as provisions for legal contingencies and asserted claim in relation to lawsuits against the Group as of March 31, 2024 and<br>December 31, 2023, respectively.
--- ---
(*2) Due to contamination of lands near the Group’s magnesium smelting plant located in Gangneung city and<br>others, the Group recognized present values of estimated costs for recovery amounting to ~~W~~15,049 million as provisions for restoration as of March 31, 2024. In order to determine the estimated costs, the<br>Group has assumed that it would use all of technologies and materials available for now to recover the land. In addition, the Group has applied a discount rate of 3.69%~3.72% to measure present value of these costs.
--- ---
(*3) As of March 31, 2024 and December 31, 2023, POSCO INTERNATIONAL Corporation and Korea Fuel Cell,<br>recognized ~~W~~22,732 million and ~~W~~23,224 million of provisions for warranties, respectively, for the service contract on fuel cell based on its estimate of probable outflow<br>of resources.
--- ---
(*4) As of March 31, 2024 and December 31, 2023, the Group has recognized emission liabilities amounting<br>to ~~W~~9,065 million, for expected greenhouse gas emissions exceeding the quantity of free quota emission rights.
--- ---
(*5) According to the Act on the promotion of the development, use and diffusion of new and renewable energy,<br>POSCO INTERNATIONAL Corporation is obliged to supply a certain amount of power generated by new and renewable energy sources. In accordance with the Act, POSCO INTERNATIONAL Corporation estimated the cost required to fulfill its obligations, such as<br>insufficient supply of power using new and renewable energy to be borne, and as of March 31, 2024 and December 31, 2023, the Group recognized ~~W~~93,150 million and<br>~~W~~64,166 million respectively, as provision.
--- ---

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POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

18. Provisions (cont’d)

(b) Changes in provisions for the three-month period ended March 31, 2024 and the year ended December 31,<br>2023 are as follows:
1) For the three-month period ended March 31, 2024
--- ---
(in millions of Won) Beginning Increase Utilization Reversal Others(* 1) Ending
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Provision for bonus payments ~~W~~ 184,391 49,423 (111,831 ) (3,350 ) (24 ) 118,609
Provision for construction warranties 196,758 12,671 (9,512 ) (4,187 ) (5,364 ) 190,366
Provision for legal contingencies and claims 73,062 3,085 (941 ) (4,667 ) 1,127 71,666
Provision for the restoration 175,820 7,534 (851 ) (1,694 ) 4,279 185,088
Others 257,722 171,523 (16,068 ) (172,930 ) 32,475 272,722
~~W~~ 887,753 244,236 (139,203 ) (186,828 ) 32,493 838,451
(*1) Includes adjusted foreign currency translation differences and others.
--- ---
2) For the year ended December 31, 2023
--- ---
(in millions of Won) Beginning Increase Utilization Reversal Others(* 1) Ending
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Provision for bonus payments ~~W~~ 169,432 181,221 (158,529 ) (6,063 ) (1,670 ) 184,391
Provision for construction warranties 205,974 42,653 (49,117 ) (8,350 ) 5,598 196,758
Provision for legal contingencies and claims 106,341 16,327 (48,144 ) (3,599 ) 2,137 73,062
Provision for the restoration 191,146 104,227 (9,887 ) (80 ) (109,586 ) 175,820
Others 423,013 189,227 (255,001 ) (112,909 ) 13,392 257,722
~~W~~ 1,095,906 533,655 (520,678 ) (131,001 ) (90,129 ) 887,753
(*1) Includes transfer to liabilities held for sale and adjusted foreign currency translation differences and<br>others.
--- ---

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POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

19. Employee Benefits

(a) Defined contribution plans

The expenses related to post-employment benefit plans under defined contribution plans for each of the three-month periods ended March 31, 2024 and 2023 are as follows:

(in millions of Won) March 31, 2024 March 31, 2023
Expense related to post-employment benefit plans under defined contribution plans ~~W~~ 18,669 18,211
(b) Defined benefit plans
--- ---
1) The amounts recognized in relation to net defined benefit assets in the statements of financial position as of<br>March 31, 2024 and December 31, 2023 are as follows:
--- ---
(in millions of Won) March 31, 2024 December 31, 2023
--- --- --- --- --- --- ---
Present value of funded obligations ~~W~~ 2,412,498 2,445,797
Fair value of plan assets(* 1) (2,842,586 ) (2,902,714 )
Present value of non-funded obligations 12,044 30,912
Net defined benefit liabilities ~~W~~ (418,044 ) (426,005 )
(*1) As of March 31, 2024 and December 31, 2023, the Group recognized net defined benefit assets amounting<br>to ~~W~~486,152 million and ~~W~~464,758 million, respectively, since there are consolidated entities whose fair value of plan assets exceeded the present value of defined benefit<br>obligations.
--- ---
2) The amounts recognized in interim condensed consolidated statements of comprehensive income for each of the<br>three-month periods ended March 31, 2024 and 2023 are as follows:
--- ---
(in millions of Won) March 31, 2024 March 31, 2023
--- --- --- --- --- --- ---
Current service costs ~~W~~ 67,822 59,112
Net interest costs (5,574 ) (7,775 )
~~W~~ 62,248 51,337

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POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

20. Other Liabilities

Other liabilities as of March 31, 2024 and December 31, 2023 are as follows:

(in millions of Won) March 31, 2024 December 31, 2023
Current
Due to customers for contract work ~~W~~ 550,077 624,632
Advances received 347,261 304,441
Unearned revenue 69,289 69,062
Withholdings 295,668 297,442
Firm commitment liability 9,072 20,136
Others(* 1) 20,630 21,929
~~W~~ 1,291,997 1,337,642
Non-current
Unearned revenue ~~W~~ 3,747 8,889
Others(* 1) 104,183 105,583
~~W~~ 107,930 114,472
(*1) As of March 31, 2024 and December 31, 2023, the Group recognized the assumed liability amounting to<br>~~W~~52,646 million and ~~W~~56,325 million, respectively related to unfavorable terms of a customer contract relative to market-terms upon the acquisition of Senex Energy<br>Limited.
--- ---

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POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

21. Financial Instruments

(a) Classification and fair value of financial instruments
1) The carrying amount and fair values of financial assets and financial liabilities by fair value hierarchy as of<br>March 31, 2024 and December 31, 2023 are as follows:
--- ---
① March 31, 2024
--- ---
(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 ~~W~~ 408,179 — 408,179 — 408,179
Short-term financial instruments 5,988,969 — 5,988,969 — 5,988,969
Equity securities 85,108 55,246 — 29,862 85,108
Debt securities 91,665 — 76,051 15,614 91,665
Other securities 722,418 — 270 722,148 722,418
Derivative hedging instruments(* 2) 5,306 — 5,306 — 5,306
Fair value through other comprehensive income
Equity securities 1,770,131 1,346,495 — 423,636 1,770,131
Financial assets measured at amortized cost(* 1)
Cash and cash equivalents 6,873,603 — — — —
Trade accounts and notes receivable 9,945,751 — — — —
Other receivables 3,002,530 — — — —
Debt securities 295,282 — — — —
Deposit instruments 4,747,964 — — — —
~~W~~ 33,936,906 1,401,741 6,478,775 1,191,260 9,071,776
Financial liabilities
Fair value through profit or loss
Derivative liabilities ~~W~~ 49,347 — 49,347 — 49,347
Borrowings 1,642,466 1,642,466 — — 1,642,466
Other financial Liabilities 189,823 — — 189,823 189,823
Derivative hedging instruments(* 2) 11,442 — 11,442 — 11,442
Financial liabilities measured at amortized cost(* 1)
Trade accounts and notes payable 5,383,455 — — — —
Borrowings 26,102,846 — 25,663,278 — 25,663,278
Financial guarantee liabilities 11,648 — — — —
Others 3,745,485 — — — —
~~W~~ 37,136,512 1,642,466 25,724,067 189,823 27,556,356
(*1) Fair value of financial assets and liabilities measured at amortized cost except borrowings approximates their<br>carrying amounts.
--- ---
(*2) The Group applies hedge accounting which uses forward contracts as hedging instrument in order to hedge the<br>risk of changes in fair value of product prices regarding firm commitments or purchase commitments. Also, the Group applies cash flow hedge accounting which uses currency swap as hedging instrument in order to hedge the risk of interest rate and<br>foreign exchange rate changes in foreign currency which influences cash flow from borrowings.
--- ---

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POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

21. Financial Instruments (cont’d)

② December 31, 2023
(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 ~~W~~ 291,541 — 291,541 — 291,541
Short-term financial instruments 6,540,407 — 6,540,407 — 6,540,407
Equity securities 99,254 61,665 — 37,589 99,254
Debt securities 88,196 — 75,183 13,013 88,196
Other securities 669,687 — 270 669,417 669,687
Derivative hedging instruments(* 2) 9,601 — 9,601 — 9,601
Fair value through other comprehensive income
Equity securities 1,694,277 1,539,205 — 155,072 1,694,277
Financial assets measured at amortized cost(* 1)
Cash and cash equivalents 6,670,879 — — — —
Trade accounts and notes receivable 9,155,853 — — — —
Other receivables 2,750,036 — — — —
Debt securities 295,201 — — — —
Deposit instruments 4,423,327 — — — —
~~W~~ 32,688,259 1,600,870 6,917,002 875,091 9,392,963
Financial liabilities
Fair value through profit or loss
Derivative liabilities ~~W~~ 116,748 — 116,748 — 116,748
Borrowings 1,756,691 1,756,691 — — 1,756,691
Other financial Liabilities 119,258 — — 119,258 119,258
Derivative hedging instruments(* 2) 3,174 — 3,174 — 3,174
Financial liabilities measured at amortized cost(* 1)
Trade accounts and notes payable 5,782,825 — — — —
Borrowings 24,213,689 — 24,310,166 — 24,310,166
Financial guarantee liabilities 12,972 — — — —
Others 3,241,459 — — — —
Other financial Liabilities 65,256 — — — —
~~W~~ 35,312,072 1,756,691 24,430,088 119,258 26,306,037
(*1) Fair value of financial assets and liabilities measured at amortized cost except borrowings approximates their<br>carrying amounts.
--- ---
(*2) The Group applies hedge accounting which uses forward contracts as hedging instrument in order to hedge the<br>risk of changes in fair value of product prices regarding firm commitments or purchase commitments. Also, the Group applies cash flow hedge accounting which uses currency swap as hedging instrument in order to hedge the risk of interest rate and<br>foreign exchange rate changes in foreign currency which influences cash flow from borrowings.
--- ---
2) Finance income and costs by category of financial instrument for each of the three-month periods ended<br>March 31, 2024 and 2023 are as follows:
--- ---
① For the three-month period ended March 31, 2024
--- ---
(in millions of Won) Finance income and costs Other<br>comprehensiveincome (loss)
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Interest income(expense) Gain and losson valuation Gain and loss onforeign currency Gain and losson disposal Others Total
Financial assets at fair value through profit or loss ~~W~~ — 72,433 — 12,393 92 84,918 —
Derivative assets — 154,550 — (42,116 ) — 112,434 —
Financial assets at fair value through other comprehensive income — — — — 18,118 18,118 7,648
Financial assets measured at amortized cost 172,436 — 340,296 (17,429 ) (34 ) 495,269 —
Financial liabilities at fair value through profit or loss — 144,001 (32,435 ) — — 111,566 —
Derivative liabilities — 98,899 — 59,745 — 158,644 (407 )
Financial liabilities measured at amortized cost (246,801 ) — (552,891 ) — (5,138 ) (804,830 ) —
~~W~~ (74,365 ) 469,883 (245,030 ) 12,593 13,038 176,119 7,241

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POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

21. Financial Instruments (cont’d)

② For the three-month period ended March 31, 2023
(in millions of Won) Finance income and costs Other<br>comprehensiveincome (loss)
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Interest income(expense) Gain and losson valuation Gain and loss onforeign currency Gain and losson disposal Others Total
Financial assets at fair value<br><br><br>through profit or loss ~~W~~ 2,069 316,923 — 80,787 286 400,065 —
Derivative assets — 252,443 — 30,226 — 282,669 —
Financial assets at fair value<br><br><br>through other comprehensive income — — — — 16,840 16,840 142,013
Financial assets measured at<br><br><br>amortized cost 102,222 — 377,909 (18,703 ) 1,014 462,442 —
Financial liabilities at fair value<br><br><br>through profit or loss — (72,632 ) (74,481 ) — — (147,113 ) —
Derivative liabilities — (59,217 ) — (53,062 ) — (112,279 ) (939 )
Financial liabilities measured at<br><br><br>amortized cost (244,560 ) — (540,933 ) — (6,423 ) (791,916 ) —
~~W~~ (140,269 ) 437,517 (237,505 ) 39,248 11,717 110,708 141,074
(b) Financial risk management
--- ---

The Group is exposed to credit risk, liquidity risk and market risk arising from financial assets and liabilities. The Group’s financial risk management objectives and policies are consistent with those disclosed in the consolidated financial statements as of and for the year ended December 31, 2023.

22. Share Capital and Capital Surplus

(a) Share capital as of March 31, 2024 and December 31, 2023 is as follows:

(Share, in Won) March 31, 2024 December 31, 2023
Authorized shares 200,000,000 200,000,000
Par value ~~W~~ 5,000 5,000
Issued shares(* 1) 84,571,230 84,571,230
Shared capital(* 2) ~~W~~ 482,403,125,000 482,403,125,000
(*1) As of March 31, 2024, total number of American depository receipts (ADRs) outstanding in overseas stock<br>market amounts to 20,307,420 and such ADRs are equivalent to 5,076,855 shares of common stock.
--- ---
(*2) As of March 31, 2024, the difference between the ending balance of common stock and the aggregate par<br>value of issued common stock is ~~W~~59,547 million due to retirement of 11,909,395 treasury stocks.
--- ---
(b) Capital surplus as of March 31, 2024 and December 31, 2023 are as follows:
--- ---
(in millions of Won) March 31, 2024 December 31, 2023
--- --- --- --- ---
Share premium ~~W~~ 463,825 463,825
Gain on disposal of treasury shares 808,994 808,994
Other capital surplus 382,780 390,515
~~W~~ 1,655,599 1,663,334

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POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

23. Accumulated Other Comprehensive Income

Details of accumulated other comprehensive income as of March 31, 2024 and December 31, 2023 are as follows:

(in millions of Won) March 31, 2024 December 31, 2023
Accumulated comprehensive loss of investments in associates and joint ventures ~~W~~ (129,850 ) (180,964 )
Changes in fair value of equity investments at fair value through other comprehensive<br>income 142,866 153,279
Foreign currency translation differences 299,211 94,605
Gains or losses on valuation of derivatives (948 ) (644 )
Others 1,302 980
~~W~~ 312,581 67,256

24. Treasury Shares

Based on the Board of Directors’ resolution, the Group holds treasury shares for business purposes including price stabilization. Changes in treasury shares for the three-month period ended March 31, 2024 and the year ended December 31, 2023 are as follows:

(shares, in millions of Won) March 31, 2024 December 31, 2023
Number of shares Amount Number of shares Amount
Beginning 8,695,023 ~~W~~ 1,889,658 8,722,053 ~~W~~ 1,892,308
Disposal of treasury shares — — (27,030 ) (2,650 )
Ending 8,695,023 ~~W~~ 1,889,658 8,695,023 ~~W~~ 1,889,658

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POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

25. Revenue

(a) Disaggregation of revenue

Details of revenue disaggregated by types of revenue and timing of revenue recognition for each of the three-month periods ended March 31, 2024 and 2023 are as follows:

1) March 31, 2024
(in millions of Won) Green Infrastructure
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Steel Trading Construction Logistics andothers Green Materials andEnergy Others Total
Types of revenue
Revenue from sales of goods ~~W~~ 9,591,149 4,632,333 — 3,526 897,391 — 15,124,399
Revenue from services 235,862 699,574 25,258 83,633 1,877 3,890 1,050,094
Revenue from construction contract — — 1,813,979 — 7,092 — 1,821,071
Others 33,765 1,861 3,638 10,410 — 6,712 56,386
~~W~~ 9,860,776 5,333,768 1,842,875 97,569 906,360 10,602 18,051,950
Timing of revenue recognition
Revenue recognized at a point in time ~~W~~ 9,624,914 4,634,194 12,079 13,936 897,391 6,712 15,189,226
Revenue recognized over time 235,862 699,574 1,830,796 83,633 8,969 3,890 2,862,724
~~W~~ 9,860,776 5,333,768 1,842,875 97,569 906,360 10,602 18,051,950
2) March 31, 2023
--- ---
(in millions of Won) Green Infrastructure
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Steel Trading Construction Logistics andothers Green Materials andEnergy Others Total
Types of revenue
Revenue from sales of goods ~~W~~ 10,095,108 4,835,208 — 9,298 899,086 — 15,838,700
Revenue from services 194,662 1,061,987 38,476 51,326 1,615 6,515 1,354,581
Revenue from construction contract — — 1,923,329 — 15,451 — 1,938,780
Others 40,708 156,084 1,803 16,387 — 33,835 248,817
~~W~~ 10,330,478 6,053,279 1,963,608 77,011 916,152 40,350 19,380,878
Timing of revenue recognition
Revenue recognized at a point in time ~~W~~ 10,135,816 4,991,291 9,471 25,718 899,086 33,835 16,095,217
Revenue recognized over time 194,662 1,061,988 1,954,137 51,293 17,066 6,515 3,285,661
~~W~~ 10,330,478 6,053,279 1,963,608 77,011 916,152 40,350 19,380,878
(b) Details of contract assets and liabilities from contracts with customers as of March 31, 2024 and<br>December 31, 2023 are as follows:
--- ---
(in millions of Won) March 31, 2024 December 31, 2023
--- --- --- --- ---
Receivables
Account receivables ~~W~~ 9,945,840 9,155,853
Contract assets
Due from customers for contract work 1,778,412 1,901,966
Contract liabilities
Advance received 350,309 309,441
Due to customers for contract work 550,077 624,632
Unearned revenue 72,967 77,908

36

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POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

26. Contract under Input Method

(a) Details of outstanding contracts as of March 31, 2024 and December 31, 2023 are as follows:<br>
(in millions of Won) March 31, 2024 December 31, 2023
--- --- --- --- --- --- --- --- --- --- --- --- ---
Constructionsegment Others Constructionsegment Others
Accumulated cost ~~W~~ 26,139,685 383,750 28,663,723 272,321
Accumulated contract profit 1,982,653 41,138 2,499,061 36,954
Accumulated contract loss (563,840 ) (18,123 ) (688,962 ) (8,916 )
Accumulated contract revenue 27,558,498 406,765 30,473,822 300,359
(b) Details of due from customers for contract work and due to customers for contract work as of March 31,<br>2024 and December 31, 2023 are as follows:
--- ---
(in millions of Won) March 31, 2024 December 31, 2023
--- --- --- --- --- --- --- --- --- --- --- --- ---
Constructionsegment Others Constructionsegment Others
Due from customers for contract ~~W~~ 1,764,601 28,258 1,873,681 42,557
Due to customers for contract work (536,995 ) (13,082 ) (608,339 ) (16,293 )
~~W~~ 1,227,606 15,176 1,265,342 26,264
(c) Details of the provisions for construction loss as of March 31, 2024 and December 31, 2023 are as<br>follows:
--- ---
(in millions of Won) March 31, 2024 December 31, 2023
--- --- --- --- ---
Construction segment ~~W~~ 41,880 48,825
Others 981 1,749
~~W~~ 42,861 50,574
(d) For the three-month period ended March 31, 2024, the total contract revenues and the estimated total contract<br>costs have changed and the impact of such changes on profit before income tax for the current and future periods are as follows:
--- ---
(in millions of Won) Changes in profit (loss) of contract
--- --- --- --- --- --- --- --- --- --- --- --- --- ---
Changes in totalcontract revenues Changes in estimatedtotal contract costs Net income Future income Total
Construction segment ~~W~~ 11,841 35,144 (23,066 ) (237 ) (23,303 )
Others 77,073 51,167 21,776 4,130 25,906
~~W~~ 88,914 86,311 (1,290 ) 3,893 2,603

The above details of impact on profit for the current and future periods are calculated based on the total contract costs estimated considering the events that occurred for the period from the commencement date of the contract to March 31, 2024 and the estimated total contract revenue as of March 31, 2024. The estimated total contract costs and revenue are subject to change in future periods.

37

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POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

26. Contract under Input Method (cont’d)

(e) Uncertainty of estimates

1) Total contract revenues

Total contract revenues are measured based on contractual amount initially agreed. However, the contract revenues can increase due to additional contract work, claims and incentive payments, or decrease due to penalty when the completion of contract is delayed due to the Group’s fault. Therefore, this measurement of contract revenues is affected by the uncertainty of the occurrence of future events.

2) Total contract costs

Contract revenues are recognized based on the percentage of completion, which is measured on the basis of the gross cost amount incurred to date. Total contract costs are estimated based on estimates of future material costs, labor costs, outsourcing costs and others. There is uncertainty in estimates on future contract costs due to various internal and external factors such as fluctuation of market, the risk of business partner and the experience of project performance and others. The significant assumptions including uncertainty of the estimate of total contract costs are as follows:

Method of significant assumption
Material cost Assumption based on recent purchasing price and quoted market price
Labor cost Assumption based on standard monthly and daily labor cost
Outsourcing cost Assumption based on the past experience rate of similar project and market price

Management reviews the assumptions used in estimated contract costs at each reporting period end and adjusts them, if necessary.

38

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POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

27. Selling and Administrative Expenses

(a) Other administrative expenses

Other administrative expenses for each of the three-month periods ended March 31, 2024 and 2023 are as follows:

(in millions of Won) March 31, 2024 March 31, 2023
Wages and salaries ~~W~~ 303,851 284,774
Expenses related to post-employment benefits 23,844 26,624
Other employee benefits 77,529 62,608
Travel 10,377 9,527
Depreciation 40,830 38,865
Amortization 27,213 22,523
Communication 3,890 2,700
Electricity 3,673 2,794
Taxes and public dues 15,237 15,182
Rental 4,765 11,318
Repairs 3,468 2,577
Entertainment 3,993 3,934
Advertising 20,352 21,077
Research & development 49,345 36,144
Service fees 53,347 36,601
Vehicles maintenance 2,008 1,922
Industry association fee 2,321 3,397
Conference 4,817 5,205
Others 16,849 14,226
Bad debt expenses 17,739 3,430
~~W~~ 685,448 605,428

(b) Selling expenses

Selling expenses for each of the three-month periods ended March 31, 2024 and 2023 are as follows:

(in millions of Won) March 31, 2024 March 31, 2023
Freight and custody expenses ~~W~~ 6,080 15,843
Operating expenses for distribution center 265 740
Sales commissions 22,054 22,421
Sales advertising 200 737
Sales promotion 2,743 3,254
Sample 567 499
Sales insurance premium 8,239 8,548
Contract cost 17,866 7,331
Others 2,349 3,932
~~W~~ 60,363 63,305

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Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

28. Finance Income and Costs

Details of finance income and costs for each of the three-month periods ended March 31, 2024 and 2023 are as follows:

(in millions of Won) March 31, 2024 March 31, 2023
Finance income
Interest income(* 1) ~~W~~ 172,436 104,291
Dividend income 18,210 17,126
Gain on foreign currency transactions 304,843 480,378
Gain on foreign currency translations 302,527 333,156
Gain on derivatives transactions 78,174 58,351
Gain on valuations of derivatives 300,348 268,938
Gain on disposal of financial assets at fair value through profit or loss 25,287 86,923
Gain on valuation of financial assets at fair value through profit or loss 85,306 328,463
Gain on valuation of financial liabilities at fair value through profit or loss 144,001 —
Others 3,169 5,924
~~W~~ 1,434,301 1,683,550
Finance costs
Interest expenses ~~W~~ 246,801 244,560
Loss on foreign currency transactions 266,068 436,378
Loss on foreign currency translations 586,332 614,661
Loss on derivatives transactions 60,545 81,187
Loss on valuation of derivatives 46,899 75,712
Loss on disposal of trade accounts and notes receivable 17,429 18,703
Loss on disposal of financial assets at fair value through profit or loss 12,894 6,136
Loss on valuation of financial assets at fair value through profit or loss 12,873 11,540
Loss on valuation of financial liabilities at fair value through profit or loss — 72,632
Others 8,341 11,333
~~W~~ 1,258,182 1,572,842
(*1) Interest income calculated using the effective interest method for each of the three-month periods ended<br>March 31, 2024 and 2023 amounts to ~~W~~172,436 million and ~~W~~102,222 million, respectively.
--- ---

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Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

29. Other Non-Operating Income and Expenses

Details of other non-operating income and expenses for each of the three-month periods ended March 31, 2024 and 2023 are as follows:

(in millions of Won) March 31, 2024 March 31, 2023
Other non-operating income
Recovery of other bad debt expenses ~~W~~ 2,322 324
Gain on disposals of investment in subsidiaries, associates and joint ventures(* 1) 18 184,656
Gain on disposals of property, plant and equipment 5,997 2,286
Gain on valuation of firm commitment 13,447 8,536
Reversal of other provisions 2,459 8,302
Premium income 296 7,281
Gain on bargain purchase(* 1) — 32,965
Gain on disposals of emission rights 2,970 —
Others 29,920 32,736
~~W~~ 57,429 277,086
Other non-operating expenses
Other bad debt expenses ~~W~~ 10,847 7,820
Loss on disposals of assets held for sale(* 2) 31,222 102,470
Loss on disposals of investments in subsidiaries, associates and joint ventures 20 4,384
Loss on disposals of property, plant and equipment 13,365 18,687
Impairment loss on property, plant and equipment 40,631 —
Impairment loss on intangible assets 11 —
Loss on valuation of firm commitment 1,309 8,878
Idle tangible asset expenses 1,466 6,367
Increase to provisions 3,079 1,271
Donations 23,133 28,807
Others 36,794 26,354
~~W~~ 161,877 205,038
(*1) During the three-month period ended March 31, 2023, investments in QSONE Co.,Ltd. which had been<br>previously classified as investments in associates were reclassified as investments in subsidiaries. As a result, the Group recognized ~~W~~184,556 million of gain on disposals of investment in associates and<br>~~W~~32,965 million of gain on bargain purchase.
--- ---
(*2) During the three-month period ended March 31, 2023, the Group disposed of CSP - Compania Siderurgica do<br>Pecem, which was classified as assets held for sale and recognized ~~W~~102,470 million of loss on disposals of assets held for sale.
--- ---

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Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

30. Expenses by Nature

Expenses that are recorded by nature as cost of sales, selling and administrative expenses, impairment loss on other receivables and other non-operating expenses in the statements of comprehensive income for each of the three-month periods ended March 31, 2024 and 2023 are as follows (excluding finance costs and income tax expense):

(in millions of Won) March 31, 2024 March 31, 2023
Raw material used, changes in inventories and others ~~W~~ 10,465,365 12,579,632
Employee benefits expenses 1,211,194 1,065,766
Outsourced processing cost 2,549,589 2,419,422
Electricity and water expenses 322,578 274,880
Depreciation(* 1) 880,865 830,080
Amortization 122,641 122,791
Freight and custody expenses 674,468 514,299
Sales commissions 22,054 22,421
Loss on disposal of property, plant and equipment 13,365 18,687
Impairment loss on property, plant and equipment 40,631 —
Impairment loss on intangible assets 11 —
Donations 23,133 28,807
Others 1,304,911 1,003,233
~~W~~ 17,630,805 18,880,018
(*1) Includes depreciation of investment property.
--- ---

31. Income Taxes

The effective tax rates of the Group for each of the three-month periods ended March 31, 2024 and 2023 are 17.02% and 16.07%, respectively.

In 2023, the Pillar Two legislation has been enacted in the Republic of Korea, where the parent company of the Group is domiciled, and will be effective for the fiscal years starting on or after January 1, 2024. Accordingly, the Group calculated the Pillar Two income tax expense for the three-month period ended March 31, 2024 as the Group is subject to global minimum top-up tax under the application of the OECD’s Pillar Two Model Rules via domestic legislation. As a result of the Group’s assessment on the Pillar Two income taxes, the Group concluded that no Pillar Two income taxes will be levied on the Group for the three-month period ended March 31, 2024 since its subsidiaries and the parent company required to pay taxes are qualified for the application of transitional exemption or their effective tax rates are above 15%. Furthermore, the Group applies temporary exception to the recognition and disclosure of deferred taxes arising from the jurisdictional implementation of the Pillar Two Model Rules as prescribed in KIFRS 1012 Income Taxes, and accordingly, the Group did not recognize deferred tax assets and liabilities related to the global minimum top-up tax and does not disclose information related to deferred income tax.

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Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

32. Earnings per Share

(a) Basic earnings per share for each of the three-month periods ended March 31, 2024 and 2023 are as follows:<br>
(in Won, except per share information) M arch 31, 2024 M arch 31, 2023
--- --- --- --- ---
Profit attributable to controlling interest ~~W~~ 540,715,276,945 726,419,322,644
Weighted-average number of common shares outstanding(* 1) 75,876,207 75,849,177
Basic earnings per share ~~W~~ 7,126 9,577
(*1) The weighted-average number of common shares used to calculate basic earnings per share is as follows:<br>
--- ---
(shares) M arch 31,2024 M arch 31,2023
--- --- --- --- --- --- ---
Total number of common shares issued 84,571,230 84,571,230
Weighted-average number of treasury shares (8,695,023 ) (8,722,053 )
Weighted-average number of common shares outstanding 75,876,207 75,849,177
(b) Diluted earnings per share for the three-month period ended March 31, 2024 are calculated as follows:<br>
--- ---
(in Won, except share information) M arch 31, 2024
--- --- --- ---
Profit attributable to controlling interest ~~W~~ 540,715,276,945
Gain or loss from revaluation of and exchange rate on exchangeable bonds (87,838,993,624 )
Adjusted weighted-average number of common shares outstanding(* 1) 79,189,781
Diluted earnings per share 5,719
(*1) The weighted-average number of common shares outstanding used to calculate diluted earnings per share is as<br>follows:
--- ---
(shares) March 31, 2024
--- --- ---
Weighted-average number of common shares outstanding 75,876,207
Weighted-average number of potential common shares 3,313,574
Adjusted weighted-average number of common shares 79,189,781

The Group’s exchangeable bonds and Share-based Payment Program are its potential common shares with dilutive effect as of March 31, 2024 and 2023. Diluted earnings per share for the three-month period ended March 31, 2023 are equal to basic earnings per share for the period due to anti-dilutive effect**.**

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Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

33. Related Party Transactions

(a) Material transactions between the Group and related parties for each of the three-month periods ended<br>March 31, 2024 and 2023 are as follows:
1) For the three-month period ended March 31, 2024
--- ---
(in millions of Won) Sales and others(* 1) Purchase and others
--- --- --- --- --- --- --- --- --- --- ---
Sales Dividends Others Purchase ofmaterial Others
Associates and joint ventures(* 1)
New Songdo International City
Development, LLC ~~W~~ 57,107 — — — 94
SNNC 27,914 — 3 120,908 9
POSCO-SAMSUNG-SLOVAKIA PROCESSING CENTER 14,232 — — 587 —
Gunggi Green Energy 7,796 — — — 1,416
POS-SeAH Steel Wire(Tianjin) CO., Ltd. 3,496 — — — —
POS SeAH Steel Wire(Nantong) Co., Ltd. 13,642 — — 1 —
South-East Asia Gas Pipeline Company Ltd. — 15,015 — — —
POSCO MC MATERIALS 28,943 — — 1,172 177
Samcheok Blue Power Co., Ltd. 74,533 2,471 169 — —
Pocheon-Hwado Highway Corp. 44,812 — — — —
POSCO(Guangdong) Automotive Steel Co., Ltd 67,017 — — 77,103 —
HBIS-POSCO Automotive Steel Co., Ltd 14,036 — — 5,657 —
Roy Hill Holdings Pty Ltd — 114,870 — 439,363 —
Others 24,506 23,620 171 42,008 23,404
~~W~~ 378,034 155,976 343 686,799 25,100
(*1) As of March 31, 2024, the Group provides payment guarantees to related parties (see Note 34).<br>
--- ---
2) For the three-month period ended March 31, 2023
--- ---
(in millions of Won) Sales and others(* 1) Purchase and others
--- --- --- --- --- --- --- --- --- --- ---
Sales Dividends Others Purchase ofmaterial Others
Associates and joint ventures(* 1)
New Songdo International City
Development, LLC ~~W~~ 48,400 — — — 119
SNNC 45,184 — 3 151,036 871
POSCO-SAMSUNG-SLOVAKIA PROCESSING CENTER 12,939 — — 9 —
Gunggi Green Energy 7,710 — — — 1,994
POS-SeAH Steel Wire(Tianjin) CO., Ltd. 5,246 — — — —
POS SeAH Steel Wire(Nantong) Co., Ltd. 10,420 — — 74 —
South-East Asia Gas Pipeline Company Ltd. — 6,407 — — —
POSCO MC MATERIALS 23,753 — — 2,220 73
Samcheok Blue Power Co., Ltd. 146,075 2,498 — — —
Pocheon-Hwado Highway Corp. 18,224 — — — 2
POSCO(Guangdong) Automotive Steel Co., Ltd 2,525 — — 54,366 —
HBIS-POSCO Automotive Steel Co., Ltd 34,407 — — — —
Roy Hill Holdings Pty Ltd — 40,554 — 486,103 —
Others 27,593 29,767 4,569 66,857 24,458
~~W~~ 382,476 79,226 4,572 760,665 27,517
(*1) As of March 31, 2023, the Group provides payment guarantees to related parties (see Note 34).<br>
--- ---

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Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

33. Related Party Transactions (cont’d)

(b) The balances of receivables and payables arising from significant transactions between the Group and related<br>parties as of March 31, 2024 and December 31, 2023 are as follows:
1) March 31, 2024
--- ---
(in millions of Won) Receivables(* 1) Payables
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Trade accountsandnotes receivable Loans Others Total Trade accountsand <br>notes payable Others Total
Associates and joint ventures
New Songdo International City
Development, LLC ~~W~~ 57,543 — 20,255 77,798 — 7,885 7,885
Gunggi Green Energy 11,471 — 8,450 19,921 — 594 594
POSCO(Guangdong) Automotive Steel Co., Ltd 57,257 — 4 57,261 54,399 — 54,399
AMCI(WA)PTYLTD — 131,945 — 131,945 — — —
HBIS-POSCO Automotive Steel Co., Ltd 19,894 — 129 20,023 277 7,043 7,320
POS-SeAH Steel Wire(Tianjin) CO., Ltd. 4,203 — — 4,203 — — —
Samcheok Blue Power Co., Ltd. 182,731 — 180 182,911 — 8,298 8,298
Nickel Mining Company SAS — 65,382 385 65,767 — 358 358
POS-SeAH Steel Wire(Nantong) Co., Ltd. 15,929 — — 15,929 — — —
POSCO MC MATERIALS 10,586 — 49 10,635 1,601 — 1,601
Pocheon-Hwado Highway Corp. 22,459 — — 22,459 — 14,879 14,879
UITrans LRT Co., Ltd. 1,116 48,719 8,868 58,703 — 3,486 3,486
Roy Hill Holdings Pty Ltd 91,837 — 24,019 115,856 237,936 14 237,950
SNNC 12,957 — 83 13,040 16,838 1,529 18,367
FQM Australia Holdings Pty Ltd — 267,131 — 267,131 — — —
Others 22,858 16,917 124,501 164,276 8,451 5,677 14,128
~~W~~ 510,841 530,094 186,923 1,227,858 319,502 49,763 369,265
(*1) As of March 31, 2024, the Group recognizes an allowance for doubtful account for receivables above<br>amounting to ~~W~~421,452 million.
--- ---
2) December 31, 2023
--- ---
(in millions of Won) Receivables(* 1) Payables
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Trade accountsand <br>notes receivable Loans Others Total Trade accountsand <br>notes payable Others Total
Associates and joint ventures
New Songdo International City
Development, LLC ~~W~~ 15,260 — 1,497 16,757 — 39,089 39,089
Gunggi Green Energy 10,714 — 8,450 19,164 — 149 149
POSCO(Guangdong) Automotive Steel Co., Ltd 59,910 — 3 59,913 52,961 — 52,961
AMCI(WA)PTYLTD — 110,540 — 110,540 — — —
HBIS-POSCO Automotive Steel Co., Ltd 21,912 — 103 22,015 1,805 8,837 10,642
POS-SeAH Steel Wire(Tianjin) CO., Ltd. 4,086 — — 4,086 — — —
Samcheok Blue Power Co., Ltd. 162,759 — 213 162,972 — 9,605 9,605
Nickel Mining Company SAS — 64,197 582 64,779 — 358 358
POS-SeAH Steel Wire(Nantong) Co., Ltd. 14,162 — — 14,162 — — —
POSCO MC MATERIALS 13,835 — 82 13,917 1,156 — 1,156
Pocheon-Hwado Highway Corp. 33,944 — — 33,944 — 7,712 7,712
UITrans LRT Co., Ltd. — 46,335 8,395 54,730 — 2,398 2,398
Roy Hill Holdings Pty Ltd 88,217 — 22,002 110,219 263,440 — 263,440
SNNC 15,072 — 60 15,132 25,352 1,731 27,083
FQM Australia Holdings Pty Ltd — 256,938 1,394 258,332 — — —
Others 17,499 16,589 124,849 158,937 4,837 5,599 10,436
~~W~~ 457,370 494,599 167,630 1,119,599 349,551 75,478 425,029
(*1) As of December 31, 2023, the Group recognizes an allowance for doubtful account for receivables above<br>amounting to ~~W~~404,872 million.
--- ---

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Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

33. Related Party Transactions (cont’d)

(c) Major financial transactions between the Group and related parties for the three-month period ended<br>March 31, 2024 and the year ended December 31, 2023 are as follows:
1) For the three-month period ended March 31, 2024
--- ---
(in millions of Won) Beginning Lend Collect Others(* 1) Ending
--- --- --- --- --- --- --- --- --- --- --- ---
Associates and joint ventures
UITrans LRT Co., Ltd. ~~W~~ 46,335 2,386 (2 ) — 48,719
PT. Tanggamus Electric Power 4,826 — (644 ) 109 4,291
Nickel Mining Company SAS 64,197 — — 1,185 65,382
KRAKATAU POS-CHEM DONG-SUH CHEMICAL 2,579 — — 115 2,694
Hyo-chun Co., Ltd. 2,382 — — — 2,382
AMCI (WA) PTY LTD 112,177 1,167 — 18,601 131,945
POS-AUSTEM WUHAN AUTOMOTIVE CO., LTD 5,158 — — 229 5,386
FQM Australia Holdings Pty Ltd 256,938 — — 10,193 267,131
POHANG E&E Co. , LTD 1,646 518 — — 2,164
~~W~~ 496,238 4,071 (646 ) 30,432 530,094
(*1) Includes adjustments of foreign currency translation differences and others.
--- ---
2) For the year ended December 31, 2023
--- ---
(in millions of Won) Beginning Lend Collect Others(* 1) Ending
--- --- --- --- --- --- --- --- --- --- --- ---
Associates and joint ventures
UITrans LRT Co., Ltd. ~~W~~ 36,510 9,825 — — 46,335
PT. Tanggamus Electric Power 5,014 — (270 ) 82 4,826
PT. Wampu Electric Power 3,988 — (4,063 ) 75 —
Nickel Mining Company SAS 63,024 — (2,322 ) 3,495 64,197
KRAKATAU POS-CHEM DONG-SUH CHEMICAL 3,802 — (1,323 ) 100 2,579
POS-SeAH Steel Wire (Thailand) Co., Ltd. 7,604 — (7,828 ) 224 —
AMCI (WA) PTY LTD 104,281 6,620 — 1,276 112,177
POS-AUSTEM WUHAN AUTOMOTIVE CO., LTD 10,138 — (5,321 ) 341 5,158
Hyo-chun Co., Ltd. 2,382 — — — 2,382
POS-AUSTEM Suzhou Automotive Co., Ltd 12,673 — (13,219 ) 546 —
FQM Australia Holdings Pty Ltd 247,868 2,637 — 6,433 256,938
POHANG E&E Co., LTD 100 1,546 — — 1,646
POSCO(Guangdong) Automotive Steel Co., Ltd. 35,131 — (35,131 ) — —
~~W~~ 532,515 20,628 (69,477 ) 12,572 496,238
(*1) Includes adjusted foreign currency translation differences and others.
--- ---
(d) For each of the three-month periods ended March 31, 2024 and 2023, details of compensation to key<br>management officers are as follows:
--- ---
(in millions of Won) March 31, 2024 March 31, 2023
--- --- --- --- ---
Short-term benefits ~~W~~ 43,273 54,840
Long-term benefits 2,953 2,558
Retirement benefits 8,761 13,800
~~W~~ 54,987 71,198

Key management officers include directors (including non-standing directors), executive officials and fellow officials who have significant influences and responsibilities in the Group’s business and operations.

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Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

34. Commitments and Contingencies

(a) Details of guarantees
1) Contingent liabilities on outstanding guarantees provided by the Group as of March 31, 2024 are as follows:<br>
--- ---
(in millions of Won) Guarantee limit Guarantee amount
--- --- --- --- --- --- --- --- --- --- ---
Guarantor Guarantee beneficiary Financial institution Foreign currency Won equivalent Foreigncurrency Won equivalent
[The Company]
POSCO HOLDINGS INC. POSCO Asia Co., Ltd. Credit Agricole and others USD 200,000,000 269,360 — —
POSCO Argentina S.A.U HSBC and others USD 411,900,000 554,747 381,595,483 513,933
POSCO POSCO MEXICO S.A. DE C.V. BOA and others USD 60,000,000 80,808 60,000,000 80,808
POSCO-VIETNAM Co., Ltd. Shinhan Bank and others USD 110,000,000 148,148 80,000,000 107,744
PT. KRAKATAU POSCO Export-Import Bank of<br><br><br>Korea and others USD 2,060,300,000 2,774,813 1,023,496,118 1,378,445
POSCO COATED STEEL (THAILAND) CO., LTD. HSBC and others THB 4,800,000,000 177,168 3,936,000,000 145,278
POSCO Maharashtra Steel Private Limited DBS USD 40,000,000 53,872 40,000,000 53,872
POSCO ASSAN TST STEEL INDUSTRY Inc Citibank and others USD 136,500,000 183,839 136,500,000 183,839
POSCO INTERNATIONAL Corporation POSCO INTERNATIONAL GLOBAL DEVELOPMENT PTE. LTD. POSCO Asia Co., Ltd. USD 180,000,000 242,424 150,000,000 202,020
POSCO INTERNATIONAL POWER (PNGLAE) LIMITED KDB Singapore USD 20,880,000 28,121 9,400,000 12,660
GOLDEN LACE POSCO INTERNATIONAL CO., LTD. POSCO Asia Co., Ltd. USD 13,200,000 17,778 11,000,000 14,815
PT. Bio Inti Agrindo BTPN and others IDR 1,232,000,000,000 104,597 1,160,000,000,000 98,484
POSCO ASSAN TST STEEL INDUSTRY Inc Woori Bank Hong Kong and others USD 13,650,000 18,384 13,650,000 18,384
POSCO INTERNATIONAL Deutschland GmbH Bank Mendes Gans Amsterdam USD 50,000,000 67,340 19,459,800 26,208
POSCO INTERNATIONAL JAPAN Corp. 6,628,021 8,927
GRAIN TERMINAL HOLDING PTE. LTD. Export-Import Bank of Korea and others USD 27,000,000 36,364 27,000,000 36,364
POSCO INTERNATIONAL E&P MALAYSIA SDN. BHD. SC MALAYSIA USD 6,000,000 8,081 6,000,000 8,081
PT. KRAKATAU POSCO ENERGY POSCO Asia Co., Ltd. and others USD 102,903,407 138,590 53,201,703 71,652
Posco International Mexico e-Mobility S.A DE C.V. Export-Import Bank of Korea and others USD 31,054,800 41,825 30,379,000 40,914
PT POSCO INTERNATIONAL ENP INDONESIA PT Bank Negara Indonesia USD 750,000 1,010 750,000 1,010
POSCO Eco & Challenge Co., Ltd. POSCO E&C Vietnam Co., Ltd. Credit Agricole and others USD 25,000,000 33,670 25,000,000 33,670
POSCO STEELEON CO.,LTD. Myanmar POSCO C&C Company, Limited. POSCO Asia Co., Ltd. USD 13,986,947 18,838 9,952,170 13,404
POSCO FUTURE M CO., LTD. ULTIUM CAM GP INC. Investissement Quebec, Strategic Innovation Fund CAD 299,562,500 298,014 — —
POSCO WIDE Co., Ltd POSCO Eco & Challenge Co., Ltd. Seoul Guarantee Insurance KRW 92 92 92 92
[Associates and joint ventures]
POSCO HOLDINGS INC. Nickel Mining Company SAS SMBC EUR 46,000,000 66,835 46,000,000 66,835
POSCO LLP POSUK Titanium SMBC London USD 13,250,000 17,845 13,250,000 17,845
POSCO INTERNATIONAL Corporation GLOBAL KOMSCO Daewoo LLC Hana Bank Bahrain USD 6,650,000 8,956 6,300,000 8,485
POSCO Eco & Challenge Co., Ltd.(*1) Chun-cheon Energy Co., Ltd Kookmin Bank and others KRW 137,500 137,500 137,500 137,500
[Others]
POSCO Eco & Challenge Co., Ltd.(*2) Subcontractors for maintenance projects, etc. Kookmin Bank and others KRW 1,550,534 1,550,534 646,933 646,933
POSCO WIDE Co., Ltd. Korea Electric Power Corporation and others Seoul Guarantee Insurance KRW 1,830 1,830 1,830 1,830
POSCO AUSTRALIA PTY LTD Department of Trade and Investment (NSW Government) and others Woori Bank and others AUD 16,754,695 14,701 16,754,695 14,701
POSCO Maharashtra Steel Private Limited Gail India and others HSBC and others INR 797,595,643 12,881 797,595,643 12,881
USD 3,523,025,154 4,744,813 2,103,562,295 2,833,080
KRW 1,689,956 1,689,956 786,355 786,355
IDR 1,232,000,000,000 104,597 1,160,000,000,000 98,484
INR 797,595,643 12,881 797,595,643 12,881
THB 4,800,000,000 177,168 3,936,000,000 145,278
EUR 46,000,000 66,835 46,000,000 66,835
AUD 16,754,695 14,701 16,754,695 14,701
CAD 299,562,500 298,014 — —
(*1) The above contingencies include PF contracts, which provide credit enhancement through payment guarantee in<br>relation to the SOC projects as of March 31, 2024.
--- ---
(*2) The above contingencies include PF contracts, which guarantee the subcontractors’ intermediate payment<br>loans in relation to the maintenance projects and others as of March 31, 2024.
--- ---

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Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

34. Commitments and Contingencies (cont’d)

2) Details of credit enhancements by type of the Group’s PF business as of March 31, 2024 are as<br>follows:
① Maintenance projects and others
--- ---
a. Information about maturity of the loans related to PF credit enhancements such as debt acceptance and fund<br>supplementation is as follow:
--- ---
(in millions of Won) **** Balance of the loans
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Provider Projects(*1) Borrower Type Credit enhancement<br>measures Agreedamount Executedamount Total Within 3months 3~6months 6 months~1year 1 year~2years 2 years~3years After<br>3 years
[The Company]
POSCO Eco & Challenge Co., Ltd. Other<br>projects JB CLARK<br>HILLS CORP Main PF Debt assumption ~~W~~ 44,444 37,037 37,037 — — — 37,037 — —
[Associates and joint ventures]
POSCO Eco & Challenge Co., Ltd. Other<br>projects New Songdo<br>International<br> <br>City<br>Development,<br>LLC Mortgage<br>loan Debt assumption 676,000 520,000 465,617 446,017 — 19,600 — — —
[Others]
POSCO Eco & Challenge Co., Ltd. Maintenance<br>projects Bangbae<br>Shindonga<br> <br>Apartment<br>Reconstruction<br><br><br>and<br>Maintenance<br>Project<br> <br>Association,<br>etc. Main PF Debt assumption 912,046 725,020 404,360 20,654 59,700 83,812 122,545 94,217 23,432
Other<br>projects Mastern 123<br>Yeoju<br> <br>Samgyo PFV<br>co., Ltd. Main PF Debt assumption 63,700 49,000 49,000 — 49,000 — — — —
Other<br>projects Civic Center<br>PFV Bridge<br>loan Debt assumption 45,000 45,000 45,000 — — 45,000 — — —
Other<br>projects Daon I & P Main PF Joint guarantee 36,000 30,000 1,100 — — — 1,100 — —
Other<br>projects Ecocity Main PF Debt assumption 53,300 41,000 39,700 — — — — 39,700 —
POSCO DX Other<br>projects Jeonnong<br>schoo keeper<br>co.<br> <br>and others Main PF Supplemental<br>fundingagreement 1,122,320 123,309 456,273 — — — — — 456,273
2,232,366 1,013,329 995,433 20,654 108,700 128,812 123,645 133,917 479,705
~~W~~ 2,952,810 1,570,366 1,498,087 466,671 108,700 148,412 160,682 133,917 479,705
(*1) The maintenance project mainly consists of reconstruction and condominium construction projects, and other<br>projects consist of construction of office buildings, retail shops, warehouses and educational facilities.
--- ---
b. Details of conditional debt acceptance and principal and interest repayment commitments in the event of<br>non-compliance with completion guarantee covenant as of March 31, 2024 are as follows:
--- ---
(in millions of Won) Number of constructions Contract amount Contingency amount(* 1)(* 2) Balance of loans
--- --- --- --- --- --- --- --- ---
Maintenance projects 22 ~~W~~ 5,952,929 3,659,129 1,697,294
Other projects 1 110,340 35,000 34,300
23 ~~W~~ 6,063,269 3,694,129 1,731,594
(*1) The overlapping amount with other credit enhancement measures such as the agreed debt acceptance upon loan<br>origination amounts to ~~W~~118,500 million for the maintenance projects.
--- ---
(*2) In the case of joint subcontracting projects, the total joint guarantee amount of the project participants has<br>been disclosed. However, the final execution amount of guarantee for construction completion may vary depending on factors such as the reasons attributable to the project participants upon actual execution of guarantee for the responsibility<br>completion.
--- ---

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Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

34. Commitments and Contingencies (cont’d)

c. Details of contingencies of claim for damages in the event of<br>non-compliance with construction completion covenant as of March 31, 2024 are as follows:
(in millions of Won) Number of constructions Contract amount Contingency amount(* 1)(* 2) Balance of loans
--- --- --- --- --- --- --- --- ---
Maintenance projects 1 ~~W~~ 309,260 76,000 20,000
Other projects 37 9,414,459 7,688,504 5,916,493
38 ~~W~~ 9,723,719 7,764,504 5,936,493
(*1) The overlapping amount with other credit enhancement measures such as the agreed debt assumption upon loan<br>origination amounts to ~~W~~79,000 million for the maintenance projects.
--- ---
(*2) In the case of joint subcontracting projects, the total joint guarantee amount of the project participants has<br>been disclosed. However, the final execution amount of guarantee for construction completion may vary depending on factors such as the reasons attributable to the project participants upon actual execution of guarantee for the responsibility<br>completion.
--- ---
② SOC projects
--- ---
Provider Recipient Credit enhancement<br><br><br>measures Number of<br>constructions Approved amount Remaining balanceafter repayment
--- --- --- --- --- --- --- --- ---
[Associates and joint ventures]
POSCO DX UITrans LRT Co., Ltd(*1) Providing funds and debt assumption 1 ~~W~~ 81,883 32,375
Pocheon-Hwado Highway Corp.(*2) Providing funds 1 24,923 22,323
POSCO Eco & Challenge Co., Ltd. UITrans LRT Co., Ltd(*1) Providing funds and debt assumption 1 205,051 163,591
Pocheon-Hwado Highway Corp.(*2) Providing funds 1 319,526 217,183
POHANG E&E Co., LTD(*3) Providing funds and supplemental funding agreement 1 71,930 49,328
Pureun Tongyeong Enviro Co., Ltd.(*3) Providing funds 1 22,714 11,991
Pure Gimpo.Co.,Ltd(*3) Providing funds 1 51,565 24,687
Clean Iksan Co.,Ltd(*3) Providing funds 1 44,054 ‘23,652
11 821,646 545,130
[Others]
POSCO DX Western Inland highway CO.,LTD. Providing funds 1 47,348 18,748
Busan Sanseong Tunnel Refinancing 1 7,621 13,792
POSCO Eco & Challenge Co., Ltd. Western Seoul highway CO.,LTD.and others Supplemental funding agreement 11 62,720 30,047
Western Inland highway CO.,LTD.and others Providing funds 44 2,884,654 1,261,140
Pohang Youngil Bay New Port Debt assumption 1 2,250 1,602
Busan Sanseong Tunnel Refinancing 1 35,296 26,750
59 3,039,889 1,352,079
70 ~~W~~ 3,861,535 1,897,209
(*1) The Group provides a funding commitment of ~~W~~82,518 million (including other shares:<br>~~W~~290,068 million) equivalent to the Group’s share of the loan balance for the private investment project.
--- ---
(*2) The Group provides a funding commitment of ~~W~~217,183 million (including other shares:<br>~~W~~423,524 million) equivalent to the Group’s share of the loan balance for the private investment project.
--- ---
(*3) The Group provides a funding commitment of ~~W~~105,322 million (including other shares:<br>~~W~~192,785 million) equivalent to the Group’s share of the loan balance for the private investment project.
--- ---

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Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

34. Commitments and Contingencies (cont’d)

3) Other guarantees
① As of March 31, 2024, the payment guarantees that the Group provides to clients, such as contract<br>performance guarantees, installment guarantees, and defect guarantees, by subscribing to insurance policies with guarantee insurance companies or issuing guarantee certificates are as follows:
--- ---
(in millions of Won)
--- --- --- --- --- --- --- ---
Provider of credit enhancement Recipient of credit enhancement Types of guarantees Agreed amount Executed amount Guarantor
[Subsidiaries]
POSCO Eco & Challenge Co., Ltd. Ventanas Philippines Construction Inc Guarantee on performance for contracts and others ~~W~~ 10,514 10,514 TRADE INSURANCE CORPORATION and others
POSCO WIDE Co., Ltd POSCO Letter of credit 30 30 Seoul Guarantee Insurance
POSCO Eco & Challenge Co., Ltd. Guarantee on performance and others 281 281 Seoul Guarantee Insurance
POSCO DX Guarantee on performance 53 53 Seoul Guarantee Insurance
POSCO INTERNATIONAL Corporation Guarantee on performance 313 313 Seoul Guarantee Insurance
11,191 11,191
[Associates and joint ventures]
POSCO Eco & Challenge Co., Ltd. PT.Tanggamus Electric Power Letter of credit 2,732 2,732 Hana Bank
PT. Wampu Electric Power Letter of credit 2,963 2,963 Hana Bank
Pocheon-Hwado Highway Corp. Guarantee on performance for projects 23,315 23,315 Construction Guarantee Cooperative
29,010 29,010
[Others]
POSCO Eco & Challenge Co., Ltd. DAEWOO ENGINEERING & CONSTRUCTION Co., Ltd and others Guarantee on performance for construction and others 7,245,196 7,245,161 Construction Guarantee Cooperative and others
POSCO WIDE Co., Ltd Pureun Paju Co., Ltd. and others Guarantee on performance and others 16,172 16,172 Seoul Guarantee Insurance
POSCO M-TECH DONGKUK STEEL MILL CO.,LTD. Guarantee on performance 1,309 1,309 Seoul Guarantee Insurance
Shinan Green Energy Co.,LTD. Sinan-gun Jeollanam-do Guarantee on performance 2,932 2,932 Seoul Guarantee Insurance
POSCO DX Western Inland highway CO.,LTD. and others Supplemental funding agreement and others 1,685 1,685 Kookmin Bank and others
7,267,294 7,267,259
~~W~~ 7,307,495 7,307,460
② As of March 31, 2024, the primary payment guarantees and other guarantees that the Group is provided from<br>the guarantee institution are as follows:
--- ---
(in millions of Won)
--- --- --- --- --- ---
Provider Types of guarantees Agreedamount Executed amount
Construction Guarantee Cooperative Subcontractor Payment Guarantee and others ~~W~~ 7,182,415 7,182,415
Engineering guarantee insurance Guarantee on performance for EPC contracts and others 890,187 523,334
Seoul Guarantee Insurance Construction performance guarantee and others 562,772 562,772
Korea Housing & Urban Guarantee Corporation Housing Guarantee and others 5,393,054 5,387,804
Deutsche Seoul Guarantee on performance 16,138 16,138
Woori Bank and others Foreign currency guarantee 2,045,543 799,607
Korea software financial cooperative Guarantee on performance for contracts 120,816 120,816
Seoul Guarantee Insurance Guarantee on performance for contracts 62,476 62,476
Construction Guarantee Cooperative Guarantee on performance for contracts 5,735 5,735
~~W~~ 16,279,136 14,661,097

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Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

34. Commitments and Contingencies (cont’d)

(b) Other commitments

Details of other commitments of the Group as of March 31, 2024 are as follows:

Company Description
POSCO HOLDINGS INC. As of March 31, 2024, POSCO HOLDINGS INC. entered into a commitment with KOREA ENERGY AGENCY for long-term foreign currency borrowings,<br>which are limited up to the amount of USD 1.05 million. The borrowing is related to the exploration of gas hydrates in Western Fergana-Chinabad. The repayment of the borrowings depends on the success of the projects. POSCO HOLDINGS INC. is not<br>liable for the repayment of full or part of the amount borrowed if the respective projects fail. POSCO HOLDINGS INC. has agreed to pay a certain portion of its profits under certain conditions, as defined by the borrowing agreements. As of March 31,<br>2024, the ending balance of the borrowing amounts to USD 1.02 million.<br> <br><br> <br>POSCO<br>HOLDINGS INC. has deposited 3,247,373 treasury shares for exchange with the Korea Securities Depository in relation to foreign currency exchangeable bonds as of March 31, 2024.
POSCO POSCO entered into long-term contracts to purchase iron ore, coal, nickel and others. The long-term purchase contract period is more than<br>two years for iron ore, three years for coal, and one year for nickel. These contracts provide for periodic price adjustments based on the market price. As of March 31, 2024, 54 million tons of iron ore and 13 million tons of coal remained to be<br>purchased under such long-term contracts.<br> <br><br> <br>POSCO entered into an agreement with<br>Tangguh Liquefied Natural Gas (LNG) Consortium in Indonesia to purchase 550 thousand tons of LNG annually for 20 years commencing in August 2005. The purchase price is subject to change, based on changes of the monthly standard oil price (JCC) and<br>with a price ceiling.<br> <br><br> <br>POSCO has a long-term service contract for the transportation<br>of raw material. As of March 31, 2024, there are 36 vessels under contract, and the average remaining contract period is about 7 years.<br> <br><br><br><br>POSCO entered into an agreement (LNG SPA) with POSCO INTERNATIONAL SINGAPORE PTE LTD. to purchase 370 thousand tons of LNG annually for 15 years commencing in<br>November 2026. The purchase price is subject to change based on changes of U.S. Henry Hub Natural Gas Spot Price. POSCO has extension option of extending the purchase contract by five years. Meanwhile, POSCO INTERNATIONAL Corporation has signed an<br>LNG SPA with Cheniere Marketing, LLC for the purpose of supplying LNG to POSCO. As an actual buyer of LNG, POSCO provides performance guarantee for POSCO INTERNATIONAL Corporation's SPA to producer, Cheniere Marketing, LLC. The performance guarantee<br>contract period is from September 30, 2022 to the date of expiration of SPA contract which is September 30, 2046, or the date of termination of payment obligation under the guarantee<br>contract.

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Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

Company Description
POSCO INTERNATIONAL Corporation POSCO INTERNATIONAL Corporation operates a ship-to-ship business in which ships are chartered from ship's owners and leased out to<br>shippers. The Company has entered into a ship purchase agreement with the ship owners and the shippers, which obliges the shippers to pay the agreed amount either at the end of the contract terms or at the agreed termination and to take over the<br>ownership of the vessel from the ship owners. Only if the shipper fails to fulfill its obligation including payment obligation for the purchase of the vessel, the Company is obliged to take over the ship based on the condition that the shipper's<br>contractual obligations and rights are transferred to the Company. As of March 31, 2024, the amount which is exposed to the ship purchase agreements entered into is USD 31 million.<br><br><br><br> <br>The Company invested in the Ambatovy Nickel Project (DMSA/AMSA) in Madagascar through the<br>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<br>(Ambatovy Holdings Limited) in December 2017, and transferred the remaining interests of the project to Sumitomo and AHL2 (Ambatovy Holdings II Limited) in August 2020. KAC has the rights and obligations to the 15.33% stake held by AHL and<br>AHL2.
POSCO Eco & Challenge Co., Ltd. As of March 31, 2024, according to the investor agreement for the construction of Samcheok Thermal Power Plant, POSCO Eco & Challenge Co., Ltd. is obligated to make contributions for core capital, unqualified investment,<br>excess expenses occurred for business, and acceleration of payment. Among them, the remaining amount of the core capital investment obligation is W17,509 million and the payment period is expected to be in the fourth quarter of 2024.
POSCO FUTURE MATERIALS CANADA INC. (formerly, POSCO CHEMICAL CANADA INC.) In accordance with the GP Shareholders Agreement between POSCO FUTURE MATERIALS CANADA INC. and GM Battery Raw Materials Corporation (hereinafter referred to as GM), if, POSCO FUTURE M Co., LTD. (POSCO FUTURE MATERIALS CANADA<br>INC's shareholders) fails to obtain approval for the export of national core technology under the 'Act On Prevention Of Divulgence And Protection Of Industrial Technology' in Korea within two years from the date of signing the agreement, GM may sell<br>its shares of ULTIUM CAM GP INC. and ULTIUM CAM LIMITED PARTNERSHIP held by Posco Future Materials Canada Inc GM has the right to exercise this put option until the 27th month from the date of signing the agreement. When GM exercises the put option,<br>Posco Future Materials Canada Inc. is required to immediately purchase GM's shares at a price of the fair market value of GM's shares or 125% of the total amount of capital contributions made by GM before the closing of the sale, whichever amount is<br>greater. As of March 31, 2024, the Company recognized W124,567 million as other financial liabilities related to the terms of this agreement.

34. Commitments and Contingencies (cont’d)

(c) Litigation in progress

The Group is involved in 323 lawsuits aggregating to ~~W~~1,066.8 billion as defendant as of March 31, 2024, which arise from the ordinary course of business such as claim for confirmation of employee status. The Group has recognized provisions amounting to ~~W~~37.9 billion for 55 lawsuits based on its reliable estimate of outflow of resources. However, the Group has not recognized any provisions for the other lawsuits and claim since the Group believes that it does not have a present obligation as of March 31, 2024(d) Other Contingencies

Other major contingencies for the Group as of March 31, 2024 are as follows:

Company Description
POSCO HOLDINGS INC. POSCO HOLDINGS INC. has provided 3 blank checks to Korea Energy Agency as collateral for long-term foreign currency borrowings.
The Company has a joint obligation with the company newly established through spin-off, POSCO, to discharge all liabilities (including financial guarantee contracts) incurred prior to the spin-off date.
POSCO INTERNATIONAL Corporation As of March 31, 2024, POSCO INTERNATIONAL Corporation has provided 24 blank promissory notes and 18 blank checks to Korea Energy Agency and others as collateral for the guarantee on performance for contracts and others.
POSCO Eco & Challenge Co., Ltd. As of March 31, 2024, POSCO Eco & Challenge Co., Ltd. has provided 41 blank checks and 4 blank promissory notes as collateral for agreements and outstanding loans.
POSCO DX As of March 31, 2024, POSCO DX has provided 7 blank checks to financial institutions as collateral for the guarantee on performance for contracts and others.

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Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

35. Cash Flows from Operating Activities

Changes in operating assets and liabilities for each of the three-month periods ended March 31, 2024 and 2023 are as follows:

(in millions of Won) March 31, 2024 March 31, 2023
Trade accounts and notes receivable ~~W~~ 217,454 (1,315,649 )
Other receivables 30,838 33,485
Inventories (223,071 ) 493,595
Other current assets (27,605 ) (92,647 )
Other non-current assets (50,774 ) 16,443
Trade accounts and notes payable (578,270 ) (37,946 )
Other payables (524,919 ) (460,308 )
Other current liabilities (55,926 ) (15,291 )
Provisions (93,129 ) (106,523 )
Payments of severance benefits (115,519 ) (130,665 )
Plan assets 91,445 74,005
Other non-current liabilities 3,305 (15,607 )
~~W~~ (1,326,171 ) (1,557,108 )

36. Operating Segments

(a) The Group’s operating businesses are organized based on the nature of markets and customers. During the<br>three-month period ended March 31, 2024, the Group changed its internal organization and internal reporting structures. As a result, operating segments were re-categorized according to the revised<br>reporting materials provided to the management for decision-making.

Segment assets, liabilities and profit (loss) are generally measured based on separate financial statements in accordance with KIFRS of the subsidiaries that constitute reportable operating segments.

Meanwhile the Group has classified the business segment and the subsidiaries in each segments are as follows:

Operating segments Main Business
Steel Manufacture and sales of steel products
Green infrastructure Trading Supply and purchase transactions between domestic and foreign companies, power generation, and resource development
Construction Design, production and construction of steel mills and their facilities, commercial and residential facilities, etc.
Logistics and others Logistics, network and system integration business
Green Materials and energy EV battery materials such as lithium, nickel, negative/cathode materials, and hydrogen business
Others POSCO HOLDINGS. INC., Controlling company and Investment business
(b) The segment profit or loss does not reflect the consolidation adjustments allocated to each entity and is<br>determined in the same way as the consolidated net income determined by KIFRS. Segment assets and liabilities are determined based on separate financial statements. There are various transactions of transactions between reporting segments, including<br>disposal of property, plant and equipment and provision of construction services.
--- ---
(c) Information about reportable segments as of and for each of the three-month periods ended March 31, 2024<br>and 2023 are as follows:
--- ---
1) For the three-month period ended March 31, 2024
--- ---
(in millions of Won) Steel Greeen Infrastructure Green materials and<br>Energy Others Total
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Trading Construction Logistics and others
External revenues ~~W~~ 9,860,776 5,333,768 1,842,875 97,569 906,360 10,602 18,051,950
Internal revenues 5,583,438 5,191,876 692,088 994,437 249,782 913,093 13,624,714
Inter segment revenues 3,666,779 2,406,856 658,689 990,263 247,113 908,215 8,877,915
Total revenues 15,444,214 10,525,644 2,534,963 1,092,006 1,156,142 923,695 31,676,664
Segment profits 210,072 173,696 80,356 38,762 25,244 931,635 1,459,765

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Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

2) For the three-month period ended March 31, 2023
Steel Greeen Infrastructure Green materials and<br>Energy Others Total
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(in millions of Won) Trading Construction Logistics and others
External revenues ~~W~~ 10,330,478 6,053,279 1,963,608 77,011 916,152 40,350 19,380,878
Internal revenues 5,439,632 4,486,010 423,352 866,789 245,783 548,189 12,009,755
Inter segment revenues 3,743,290 2,200,659 400,262 865,680 245,148 544,741 7,999,780
Total revenues 15,770,110 10,539,289 2,386,960 943,800 1,161,935 588,539 31,390,633
Segment profits 275,699 184,573 68,234 47,100 48,028 569,980 1,193,614

36. Operating Segments (cont’d)

(d) Reconciliations of total segment revenues, profit or loss, assets and liabilities, and other significant items<br>to their respective consolidated financial statement line items are as follows:
(in millions of Won) March 31, 2024 March 31, 2023
--- --- --- --- --- --- ---
Total profit for reportable segments ~~W~~ 1,459,765 1,193,614
Corporate fair value adjustments (17,599 ) 200,800
Elimination of inter-segment profit (834,351 ) (554,109 )
Income tax expense 124,696 160,952
Profit before income tax expense ~~W~~ 732,511 1,001,257

37. Events after the reporting period

Pursuant to the resolution of the Board of Directors on May 14, 2024, the Group decided to pay interim cash dividends of ~~W~~2,500 per common share (total dividend: ~~W~~189.7 billion).

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POSCO HOLDINGS INC.

Interim condensed separate financial statements

for the three-month period ended March 31, 2024

with the independent auditor’s review report

Table of Contents

Table of Contents

Report on review of interim condensed separate financial statements

Page
Interim condensed separate financial statements
Interim condensed separate statements of financial position 1
Interim condensed separate statements of comprehensive income 3
Interim condensed separate statements of changes in equity 4
Interim condensed separate statements of cash flows 5
Notes to the Interim condensed separate financial statements 7
Table of Contents
Ernst & Young Han Young
2-3F, 7-8F, Taeyoung Building, 111, Yeouigongwon-ro,
Yeongdeungpo-gu, Seoul 07241 Korea
Tel: +82 2 3787 6600<br> <br>Fax: +82 2 783 5890<br><br><br>ey.com/kr

Report on review of interim condensed separate financial statements

(English translation of a report originally issued in Korean)

The Stockholders and Board of Directors

POSCOHOLDINGS INC.

We have reviewed the accompanying interim condensed separate financial statements of POSCO HOLDINGS INC. (the “Company”), which comprise the interim condensed separate statement of financial position as of March 31, 2024, and the related interim condensed separate statement of comprehensive income, interim condensed separate statement of changes in equity and interim condensed separate statement of cash flows for the three-month period ended March 31, 2024, and a summary of material accounting policy information and other explanatory information.

Management’s responsibility for the interim condensed separate financial statements

Management is responsible for the preparation and presentation of these interim condensed separate financial statements in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (“KIFRS”) 1034, and for such internal control as management determines is necessary to enable the preparation of interim financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s responsibility

Our responsibility is to express a conclusion on these interim condensed separate financial statements based on our review.

We conducted our review in accordance with the Review Standards for Quarterly and Semiannual Financial Statements established by the Securities and Futures Commission of the Republic of Korea. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Korean Standards on Auditing (“KSA”) and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed separate financial statements are not prepared, in all material respects, in accordance with KIFRS 1034.

7

A member firm of Ernst & Young Global Limited

Table of Contents

LOGO

Other matters

The interim condensed separate statement of comprehensive income, interim condensed separate statement of changes in equity and interim condensed separate statement of cash flows for the three-month period ended March 31, 2023, prepared in accordance with KIFRS 1034 and presented for comparative purposes, have been reviewed by Samjong KPMG, whose review report dated May 15, 2023 expressed an unqualified review conclusion thereon.

Moreover, the separate statement of financial position as of December 31, 2023, and the related separate statement of comprehensive income, separate statement of changes in equity and separate statement of cash flows for the year then ended (not presented herein), have been audited by Samjong KPMG, in accordance with KSA, whose report dated March 13, 2024 expressed an unqualified opinion thereon. The accompanying separate statement of financial position as of December 31, 2023, presented for comparative purposes, is not different, in all material respects, from the above audited separate statement of financial position.

LOGO

May 16, 2024

This review report is effective as of May 16, 2024, the independent auditor’s review report date. Accordingly, certain material subsequent events or circumstances may have occurred during the period from the date of the independent auditor’s review report to the time this review report is used. Such events and circumstances could significantly affect the accompanying interim condensed separate financial statements and may result in modification to this review report.

A member firm of Ernst & Young Global Limited

Table of Contents

POSCO HOLDINGS INC.

Interim condensed separate financial statements

for each of the three-month periods ended March 31, 2024 and 2023

“The accompanying interim condensed separate financial statements, including all footnotes and disclosures, have been prepared by, and are the responsibility of, the Company.”

Kisub Jung

Representative Director and President

POSCO HOLDINGS INC.

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POSCO HOLDINGS INC.

Interim condensed separate interim statements of financial position

as of March 31, 2024 (Unaudited) and December 31, 2023

(in millions of Won) Notes March 31, 2024(unaudited) December 31,2023
Assets
Cash and cash equivalents 18 ~~W~~ 630,785 376,914
Trade accounts and notes receivable, net 4,18,22 1,020,755 238,332
Other receivables, net 5,18,29 54,892 68,821
Other short-term financial assets 6,18 3,677,897 3,940,743
Current income tax assets 36,470 32,015
Other current assets 11 4,899 1,074
Total current assets 5,425,698 4,657,899
Other receivables, net 5,18,29 8,975 6,955
Other long-term financial assets 6,18 907,951 1,131,074
Investments in subsidiaries, associates and joint ventures 7 45,601,053 45,321,370
Investment property, net 8 309,218 309,900
Property, plant and equipment, net 9 196,706 197,787
Intangible assets, net 10 19,732 19,341
Other non-current assets 11 7,311 1,872
Total non-current assets 47,050,946 46,988,299
Total assets ~~W~~ 52,476,644 51,646,198
(in millions of Won) Notes March 31, 2024(unaudited) December 31,2023
Assets
Cash and cash equivalents 18 ~~W~~ 630,785 376,914
Trade accounts and notes receivable, net 4,18,22 1,020,755 238,332
Other receivables, net 5,18,29 54,892 68,821
Other short-term financial assets 6,18 3,677,897 3,940,743
Current income tax assets 36,470 32,015
Other current assets 11 4,899 1,074
Total current assets 5,425,698 4,657,899
Other receivables, net 5,18,29 8,975 6,955
Other long-term financial assets 6,18 907,951 1,131 ,074
Investments in subsidiaries, associates and joint ventures 7 45,601,053 45,321,370
Investment property, net 8 309,218 309,900
Property, plant and equipment, net 9 196,706 197,787
Intangible assets, net 10 19,732 19,341
Other non-current assets 11 7,311 1,872
Total non-current assets 47,050,946 46,988,299
Total assets ~~W~~ 52,476,644 51,646,198

(continued)

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POSCO HOLDINGS INC.

Condensed separate interim statements of financial position, continued

as of March 31, 2024 (Unaudited) and December 31, 2023

(in millions of Won) Notes March 31, 2024(unaudited) December 31,2023
Liabilities
Short-term borrowings and current installments of long-term borrowings 12,18 ~~W~~ 1,642,466 1,756,691
Other current payables 13,18,22,29 221,195 39,739
Other short-term financial liabilities 14,18,29 1,903 1,571
Provisions 15 8,522 14,983
Other current liabilities 17,22 7,492 6,686
Total current liabilities 1,881,578 1,819,670
Long-term borrowings, excluding current installments 12,18 1,374 1,316
Other non-current payables 13,18,29 29,910 26,804
Other long-term financial liabilities 14,18,29 8,471 6,968
Defined benefit liabilities, net 16 2,013 4,283
Deferred tax liabilities 2,312,284 2,281,500
Long-term provisions 15,30 5,059 2,634
Other non-current liabilities 17,22 3,199 3,158
Total non-current liabilities 2,362,310 2,326,663
Total liabilities 4,243,888 4,146,333
Equity
Share capital 19 482,403 482,403
Capital surplus 19 1,370,557 1,370,557
Accumulated other comprehensive income (loss) 20 (6,199 ) 30,678
Treasury shares 21 (1,889,658 ) (1,889,658 )
Retained earnings 48,275,653 47,505,885
Total equity 48,232,756 47,499,865
Total liabilities and equity ~~W~~ 52,476,644 51,646,198

The accompanying notes are an integral part of the interim condensed separate financial statements

2

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POSCO HOLDINGS INC.

Condensed separate interim statements of comprehensive income

for each of the three-month periods ended March 31, 2024 and 2023 (Unaudited)

Three-month period ended
(in millions of won, except per share informations) Notes March 31, 2024(Unaudited) March 31, 2023(Unaudited)
Operating revenue 22,29 ~~W~~ 898,738 562,987
Operating expenses 23,26,29 (85,662 ) (69,097 )
Operating profit 813,076 493,890
Finance income and costs 18,24
Finance income 209,425 161,129
Finance costs (41,580 ) (149,233 )
Other non-operating income and expenses 25,26,29
Other non-operating income 170 8,266
Other non-operating expenses (686 ) (904 )
Profit before income tax 980,405 513,148
Income tax benefit (expense) 27 (39,066 ) 38,593
Profit 941,339 551,741
Other comprehensive income (loss)
Items that will not be reclassified subsequently to profit or loss:
Remeasurements of defined benefit plans 16 (36 ) (145 )
Net changes in fair value of equity investments at fair value through other comprehensive<br>income 6,18,20 (18,721 ) 122,150
Total comprehensive income ~~W~~ 922,582 673,746
Earnings per share (in Won) 28
Basic earnings per share (in Won) 12,406 7,274
Diluted earnings per share (in Won) ~~W~~ 10,778 7,274

The accompanying notes are an integral part of the interim condensed separate financial statements.

.

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POSCO HOLDINGS INC.

Interim condensed separate interim statements of changes in equity

for each of the three-month periods ended March 31, 2024 and 2023

(Unaudited)

The accompanying notes are an integral part of the interim condensed separate financial statements.

(in millions of Won) **** Share****capital Capitalsurplus Accumulatedothercomprehensiveincome (loss) Treasuryshares Retainedearnings Total
Balance as of January 1, 2023 ~~W~~ 482,403 1,360,894 (188,801 ) (1,892,308 ) 47,409,675 47,171,863
Comprehensive income:
Profit — — — — 551,741 551,741
Other comprehensive income (loss)
Remeasurements of defined benefit plans, net of tax — — — — (145 ) (145 )
Net changes in fair value of equity investments at fair value through other comprehensive income,<br>net of tax — — 121,814 — 336 122,150
Transactions with owners of the Company, recognized directly in equity:
Year-end dividends — — — — (151,699 ) (151,699 )
Disposal of treasury shares — 4,083 — 5,864 — 9,947
Share-based payment — (7,085 ) — — — (7,085 )
Balance as of March 31, 2023 ~~W~~ 482,403 1,357,892 (66,987 ) (1,886,444 ) 47,809,908 47,696,772
Balance as of January 1, 2024 ~~W~~ 482,403 1,370,557 30,678 (1,889,658 ) 47,505,885 47,499,865
Comprehensive income:
Profit — — — — 941,339 941,339
Other comprehensive income (loss)
Remeasurements of defined benefit plans, net of tax — — — — (36 ) (36 )
Net changes in fair value of equity investments at fair value through other comprehensive income,<br>net of tax — — (36,877 ) — 18,156 (18,721 )
Transactions with owners of the Company, recognized directly in equity:
Year-end dividends — — — — (189,691 ) (189,691 )
Balance as of March 31, 2024 ~~W~~ 482,403 1,370,557 (6,199 ) (1,889,658 ) 48,275,653 48,232,756

The accompanying notes are an integral part of the interim condensed separate financial statements.

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POSCO HOLDINGS INC.

Interim condensed separate statements of cash flows

for each of the three-month periods ended March 31, 2024 and 2023

(Unaudited)

Three-month period ended
(in millions of Won) Notes March 31, 2024(Unaudited) March 31, 2023(Unaudited)
Cash flows from operating activities
Profit ~~W~~ 941,339 551,741
Adjustments for :
Post-employment benefit expense 1,708 2,540
Depreciation 3,406 2,735
Amortization 399 286
Impairment loss on trade and other receivables 106 —
Finance income (208,245 ) (158,018 )
Dividend income (850,028 ) (520,174 )
Finance costs 41,381 147,375
Gain on disposal of intangible assets (54 ) —
Loss on disposal of intangible assets 18 —
Decrease to provisions (54 ) (7,733 )
Income tax expense (benefit) 39,066 (38,593 )
Others (34 ) 1,411
Changes in operating assets and liabilities 31 (40,877 ) (39,290 )
Interest received 18,993 12,615
Dividends received 99,092 30,431
Income taxes paid (8,262 ) (8,041 )
Net cash provided by (used in) operating activities ~~W~~ 37,954 (22,715 )

(continued)

5

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POSCO HOLDINGS INC.

Interim condensed separate statements of cash flows, continued

for each of the three-month periods ended March 31, 2024 and 2023

(Unaudited)

(in millions of Won) Notes March 31, 2024(Unaudited) March 31, 2023(Unaudited)
Cash flows from investing activities
Decrease in deposits ~~W~~ 1,100,000 —
Proceeds from disposal of short-term financial instruments 1,928,280 4,079,038
Proceeds from disposal of equity securities 194,230 —
Proceeds from disposal of other securities 2,321 —
Proceeds from disposal of investments in subsidiaries, associates and joint ventures — 22,702
Increase in deposits (1,000,000 ) (300,000 )
Acquisition of short-term financial instruments (1,727,199 ) (3,600,137 )
Increase in long-term loans (106 ) —
Acquisition of other securities (3,112 ) (5,112 )
Acquisition of investment in subsidiaries, associates and joint ventures (276,766 ) (279,702 )
Acquisition of investment properties (1,200 ) —
Acquisition of property, plant and equipment (1,777 ) (5,362 )
Acquisition of intangible assets (1,386 ) (753 )
Payment of short-term lease security deposits (510 ) —
Net cash provided by (used in) investing activities ~~W~~ 212,775 (89,326 )
Cash flows from financing activities
Increase in long-term financial liabilities 3,148 3,781
Payment of cash dividends (6 ) (7 )
Net cash provided by financing activities ~~W~~ 3,142 3,774
Effect of exchange rate fluctuation on cash held — 11
Net increase (decrease) in cash and cash equivalents 253,871 (108,256 )
Cash and cash equivalents at beginning of the period 376,914 1,415,201
Cash and cash equivalents at end of the period ~~W~~ 630,785 1,306,945

The accompanying notes are an integral part of the interim condensed separate financial statements.

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POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements

March 31, 2024 and 2023

(Unaudited)

1. Reporting Entity

POSCO HOLDINGS INC.(the “Company”) was established on April 1, 1968, under the Commercial Act of the Republic of Korea. The shares of the Company have been listed on the Korea Exchange since June 10, 1988. The Company operates an investment business that controls and manages through ownership of shares of subsidiaries etc.

On March 2, 2022, the Company established a new subsidiary, POSCO, by a vertical spin-off of its steel business (which is wholly owned by the surviving company) on March 1, 2022, and changed the name of the surviving company to POSCO HOLDINGS INC.

As of March 31, 2024, the shares of the Company are listed on the Korea Exchange, while its ADRs are listed on the New York Stock Exchanges.

2. Basis of preparation

Statement of compliance

The interim condensed separate financial statements have been prepared in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (“KIFRS”), as prescribed in the Act on External Audit of Stock Companies of the Republic of Korea. The accompanying interim condensed separate financial statements have been translated into English from the Korean language financial statements. In the event of any differences in interpreting the financial statements or the independent auditor’s review report thereon, the Korean version, which is used for regulatory reporting purposes, shall prevail.

The interim condensed separate financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Company’s annual financial statements as of December 31, 2023. Selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in financial position and performance of the Company incurred after December 31, 2023. These interim condensed separate interim financial statements do not include all of the disclosures required for full annual financial statements.

These condensed interim financial statements are separate interim financial statements prepared in accordance with KIFRS 1027 Separate FinancialStatements presented by a parent, an investor with joint control of, or significant influence over, an investee, in which the investments are accounted for at cost.

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POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

March 31, 2024 and 2023

(Unaudited)

2. Basis of preparation (cont’d)

Use of estimatesand judgments

(a) Judgments, assumptions and estimation uncertainties

The preparation of the interim condensed separate financial statements in conformity with KIFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period prospectively.

The significant judgments made by management in applying the Company’s accounting policies and the key sources of estimation uncertainty were the same as those described in the annual financial statements as of and for the year ended December 31, 2023 except for the matters mentioned below.

(b) Measurement of fair value

The Company’s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities. The Company has an established control framework with respect to the measurement of fair values. This includes a valuation team that has overall responsibility for overseeing all significant fair value measurements, including Level 3 fair values, and reports directly to the financial officer.

The valuation team regularly reviews significant unobservable inputs and valuation adjustments. If third party information, such as broker quotes or pricing services, is used to measure fair values, then the valuation team assesses the evidence obtained from the third parties to support the conclusion that such valuations meet the requirements of KIFRS including the level in the fair value hierarchy in which such valuation techniques should be classified.

Significant valuation issues are reported to the Company’s Audit Committee.

When measuring the fair value of an asset or a liability, the Company uses market observable data as far as possible. Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows.

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POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

March 31, 2024 and 2023

(Unaudited)

2. Basis of preparation (cont’d)

• Level 1 – unadjusted quoted prices in active markets for identical assets or liabilities.<br>
• Level 2 – inputs other than quoted prices included in Level 1 that are observable for the assets<br>or liabilities, either directly or indirectly.
--- ---
• Level 3 – inputs for the assets or liabilities that are not based on observable market data.<br>
--- ---

If the inputs used to measure the fair value of an asset or a liability might be categorized in different levels of the fair value hierarchy, then the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. The Company recognizes transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.

3. Summary of Material Accounting PolicyInformation

Except for the items described in KIFRS 1034 Interim Financial Reporting and below, the accounting policies applied by the Company in these interim condensed separate financial statements are the same as those applied to the separate financial statements as of and for the year ended December 31, 2023.

(a) Supplier Finance Arrangements - Amendments to KIFRS 1007 and KIFRS 1107

The amendments to KIFRS 1007 Statement of Cash Flows and KIFRS 1107 Financial Instruments: Disclosures clarify the characteristics of supplier finance arrangements and require additional disclosure of such arrangements. The disclosure requirements in the amendments are intended to assist users of financial statements in understanding the effects of supplier finance arrangements on an entity’s liabilities, cash flows and exposure to liquidity risk. The transition rules clarify that an entity is not required to provide the disclosures in any interim periods in the year of initial application of the amendments. Thus, the amendments had no impact on the Company’s interim condensed separate financial statements.

9

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POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

March 31, 2024 and 2023

(Unaudited)

3. Summary of Material Accounting Policy information (cont’d)

(b) Amendments to KIFRS 1116: Lease Liability in a Sale and Leaseback

The amendments to KIFRS 1116 specify the requirements that a seller-lessee uses in measuring the lease liability arising in a sale and leaseback transaction, to ensure the seller-lessee does not recognize any amount of the gain or loss that relates to the right of use it retains. The amendments had no impact on the Company’s interim condensed financial statements.

(c) Amendments to KIFRS 1001: Classification of Liabilities as Current orNon-current

The amendments to paragraphs 69 to 76 of KIFRS 1001 specify the requirements for classifying liabilities as current or non-current.

The amendments clarify:

• what is meant by a right to defer settlement;
• that a right to defer must exist at the end of the reporting period;
--- ---
• that classification is unaffected by the likelihood that an entity will exercise its deferral right; and<br>
--- ---
• that only if an embedded derivative in a convertible liability is itself an equity instrument would the terms of<br>a liability not impact its classification.
--- ---

In addition, a requirement has been introduced whereby an entity must disclose when a liability arising from a loan agreement is classified as non-current and the entity’s right to defer settlement is contingent on compliance with future covenants within twelve months. The amendments had no impact on the Company’s interim condensed separate financial statements.

10

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POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

March 31, 2024 and 2023

(Unaudited)

4. Trade Accounts and Notes Receivable

Trade accounts and notes receivable as of March 31, 2024 and December 31, 2023 are as follows:

(in millions of Won) March 31, 2024 December 31, 2023
Current
Trade accounts and notes receivable ~~W~~ 851,414 100,323
Unbilled receivables (contract assets) 169,341 138,009
Less: Allowance for doubtful accounts — —
~~W~~ 1,020,755 238,332

5. Other Receivables

Other receivables as of March 31, 2024 and December 31, 2023 are as follows:

(in millions of Won) March 31, 2024 December 31, 2023
Current
Other accounts receivable ~~W~~ 35,639 51,530
Others(* 1) 23,328 21,193
Less: Allowance for doubtful accounts(* 1) (4,075 ) (3,902 )
~~W~~ 54,892 68,821
Non-current
Long-term loans(* 1) ~~W~~ 227,027 217,349
Others 8,975 6,955
Less: Allowance for doubtful accounts(* 1) (227,027 ) (217,349 )
~~W~~ 8,975 6,955
(*1) The Company assessed the recoverability of other receivables to FQM Australia Pty Ltd, an associate, and<br>recognized an allowance for doubtful accounts for such other receivables from the entity during the year ended December 31, 2023.
--- ---

11

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POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

March 31, 2024 and 2023

(Unaudited)

6. Other Financial Assets

(a) Other financial assets as of March 31, 2024 and December 31, 2023 are as follows:<br>
(in millions of Won) March 31, 2024 December 31, 2023
--- --- --- --- ---
Current
Deposit instruments ~~W~~ 1,650,000 1,750,000
Short-term financial instruments 2,027,897 2,190,743
~~W~~ 3,677,897 3,940,743
Non-current
Equity securities ~~W~~ 699,958 926,752
Other securities 207,991 204,320
Deposit instruments 2 2
~~W~~ 907,951 1,131,074
(b) Equity securities as of March 31, 2024 and December 31, 2023 are as follows:
--- ---
(in millions of Won) March 31, 2024 December 31,2023
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Number of<br>shares Ownership<br>(%) Acquisition<br>cost Fair<br>value Net changes in<br>fair value of<br>equity securities Book<br>value Book<br>value
Marketable equity securities
Nippon Steel Corporation 15,698,500 1.65 ~~W~~ 473,962 512,181 38,219 512,181 462,775
KB Financial group Inc. — — — — — — 209,016
CSN Mineracao S.A. 102,186,675 1.86 206,265 145,433 (60,832 ) 145,433 212,617
680,227 657,614 (22,613 ) 657,614 884,408
Non-marketable equity securities
POSCO PLANTEC Co., Ltd. 18,337,912 10.99 19,437 40,362 20,925 40,362 40,362
Intellectual Discovery Co., Ltd 200,000 6.00 5,000 1,350 (3,650 ) 1,350 1,350
Pos-hyundai Steel Manufacturing India Private Limited 1,055,496 6.00 612 612 — 612 612
S&M MEDIA Co., Ltd 2,000 2.67 20 20 — 20 20
XG Sciences 300,000 5.06 2,724 — (2,724 ) — —
27,793 42,344 14,551 42,344 42,344
~~W~~ 708,020 699,958 (8,062 ) 699,958 926,752

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POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

March 31, 2024 and 2023

(Unaudited)

7. Investments in Subsidiaries, Associates and Joint ventures

(a) Investments in subsidiaries, associates and joint ventures of as of March 31, 2024 and December 31, 2023 are as follows:

(in millions of Won) March 31, 2024 December 31, 2023
Subsidiaries ~~W~~ 42,796,575 42,519,521
Associates 520,380 520,380
Joint ventures 2,284,097 2,281,469
~~W~~ 45,601,052 45,321,370

(b) Details of subsidiaries and carrying amounts as of March 31, 2024 and December 31, 2023 are as follows:

(in millions of Won) March 31, 2024 December 31,2023
Country Principal operations Ownership (%) Book value Book value
[Domestic]
POSCO Korea Steel, rolled products, and plates manufacturing and sales 100.00 ~~W~~ 29,701,054 29,698,113
POSCO INTERNATIONAL Corporation Korea Trading and natural resources exploration 70.71 3,740,020 3,740,020
POSCO Eco & Challenge Co., Ltd. Korea Engineering and construction 52.80 1,013,718 1,013,453
POSCO Venture Capital Co., Ltd. Korea Investment in venture companies 100.00 115,931 115,931
POSCO FUTURE M CO.,LTD. Korea Refractory and anode/cathode material manufacturing and sales 59.72 895,687 895,687
POSCO WIDE Co., Ltd. Korea Business facility maintenance 100.00 308,843 308,843
POSCO DX Korea Computer hardware and software distribution 65.38 70,990 70,990
Busan E&E Co., Ltd. Korea Municipal solid waste fuel and power generation 70.00 30,148 30,148
POSOCO-Pilbara LITHIUM SOLUTION Co., Ltd. Korea Lithium manufacturing and sales 82.00 314,940 314,940
POSCO LITHIUM SOLUTION Korea Lithium manufacturing and sales 100.00 287,550 287,550
QSONE Co.,Ltd. Korea Real estate rental and facility management 100.00 238,478 238,478
POSCO CNGR Nickel Solution(* 1) Korea Nickel refining 60.00 49,380 —
Others (11 companies) 452,877 442,847
37,219,616 37,157,000
[Foreign]
POSCO WA PTY LTD. Australia Iron ore sales and mine development 100.00 646,574 646,574
POSCO Maharashtra Steel Private Limited India Steel manufacturing and sales 100.00 722,514 722,514
POSCO Canada Ltd. Canada Coal sales 100.00 560,879 560,879
POSCO AUSTRALIA PTY LTD. Australia Iron ore sales and mine development 100.00 330,623 330,623
POSCO (Zhangjiagang) Stainless Steel Co.,Ltd. China Stainless steel manufacturing and sales 58.60 283,792 283,792
POSCO-China Holding Corp. China Holding company 100.00 593,816 593,816
POSCO America Corporation USA Researching and consulting 99.45 192,136 192,136
POSCO VST CO., LTD. Vietnam Stainless steel manufacturing and sales 95.65 144,552 144,552
POSCO Asia Co., Ltd. Hong<br>Kong Activities Auxiliary to financial service 100.00 117,690 117,690
POSCO ASSAN TST STEEL INDUSTRY Turkiye Steel manufacturing and sales 60.00 71,686 71,686
POSCO JAPAN Co., Ltd. Japan Steel marketing, demand development, and technology research 100.00 68,410 68,410
Qingdao Pohang Stainless Steel Co., Ltd. China Stainless steel manufacturing and sales 70.00 65,982 65,982
POSCO(Suzhou) Automotive Processing Center Co., Ltd. China Steel manufacturing and sales 90.00 62,469 62,469
POSCO AFRICA (PROPRIETARY) LIMITED South<br>Africa Mine development 100.00 50,297 50,297
POSCO Argentina S.A.U.(* 2) Argentina Mineral exploration, manufacturing and sales 100.00 1,364,525 1,150,087
Others (18 companies) 301,014 301,014
5,576,959 5,362,521
~~W~~ 42,796,575 42,519,521
(*1) During the three-month period ended March 31, 2024, the Company acquired 60% of shares of POSCO CNGR<br>Nickel Solution Co., Ltd. at ~~W~~49,380 million and classified as acquired equity interests as investments in subsidiaries.
--- ---
(*2) During the three-month period ended March 31, 2024, the Company acquired<br>~~W~~214,438 million of additional investment in subsidiaries by participating in POSCO Argentina S.A.U.‘s capital increase to invest in an Argentine brine lithium commercialization plant.
--- ---

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POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

March 31, 2024 and 2023

(Unaudited)

7. Investments in Subsidiaries, Associates and Joint ventures (cont’d)

(c) Details of associates and carrying amounts as of March 31, 2024 and December 31, 2023 are as follows:<br>
(in millions of Won) March 31, 2024 December 31, 2023
--- --- --- --- --- --- --- ---
Country Principal operations Ownership (%) Book value Book value
[Domestic]
SNNC Korea STS material manufacturing and sales 49.00 ~~W~~ 100,631 100,631
POSCO JK SOLID SOLUTION CO., LTD. Korea Material manufacturing for rechargeable battery 40.00 26,025 26,025
Others (5 companies) 12,111 12,111
138,767 138,767
[Foreign]
Nickel Mining Company SAS New<br>Caledonia Raw material manufacturing and sales 49.00 189,197 189,197
9404-5515 Quebec Inc.(*1) Canada Investments 12.61 156,194 156,194
Others (4 companies) 36,222 36,222
381,613 381,613
~~W~~ 520,380 520,380
(*1) As of March 31, 2024, the entities are classified as associates since the Company has significant<br>influence over the investees although the Company’s percentage of ownership is less than 20%, considering the structure of the entities’ Board of Directors and others.
--- ---
(d) Details of joint ventures and carrying amounts as of March 31, 2024 and December 31, 2023 are as<br>follows:
--- ---
(in millions of Won) March 31, 2024 December 31, 2023
--- --- --- --- --- --- --- --- --- ---
Country Principal operations Ownership (%) Book value Book value
Roy Hill Holdings Pty Ltd(*1) Australia Natural resources exploration 10.00 ~~W~~ 1,225,464 1,225,464
POSCO-NPS Niobium LLC USA Foreign investments in mining 50.00 364,609 364,609
KOBRASCO Brazil Steel materials manufacturing and sales 50.00 98,962 98,962
HBIS-POSCO Automotive Steel Co., Ltd China Steel manufacturing and sales 50.00 235,207 235,207
BX STEEL POSCO Cold Rolled Sheet Co., Ltd. China Steel manufacturing and sales 25.00 63,866 63,866
PT NICOLE METAL INDUSTRY Indonesia Nickel Smelting 49.00 293,647 293,361
Hydrogen Duqm LLC(*2) Oman Green Hydrogen/Ammonia product business development 44.80 2,342 —
~~W~~ 2,284,097 2,281,469
(*1) As of March 31, 2024 and December 31, 2023, the investments in joint ventures amounting to<br>~~W~~1,225,464 million were provided as collateral in relation to revolving loan of Roy Hill Holdings Pty Ltd.
--- ---
(*2) During the three-month period ended March 31, 2024, the Company acquired 44.8% of shares in Hydrogen Duqm<br>LLC, for ~~W~~2,342 million and classified them as an investment in joint ventures.
--- ---

14

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POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

March 31, 2024 and 2023

(Unaudited)

8. Investment Property

Changes in the carrying amount of investment property for the three-month period ended March 31, 2024 and the year ended December 31, 2023 are as follows:

(a) For the three-month period ended March 31, 2024
(in millions of Won) Beginning Acquisition Depreciation(*1) Transfer(*2) Ending
--- --- --- --- --- --- --- --- --- --- --- ---
Land ~~W~~ 193,446 1,200 — 50 194,696
Buildings 101,229 — (1,812 ) 78 99,495
Structures 15,225 — (206 ) 8 15,027
~~W~~ 309,900 1,200 (2,018 ) 136 309,218
(*1) The useful life and depreciation method of investment property are identical to those of property, plant and<br>equipment.
--- ---
(*2) Mainly includes assets transferred from property, plant and equipment in relation to changes in rental ratio<br>and the purpose of use.
--- ---
(b) For the year ended December 31, 2023
--- ---
(in millions of Won) Beginning Acquisition Depreciation(*1) Transfer(*2) Ending
--- --- --- --- --- --- --- --- --- --- --- ---
Land ~~W~~ 131,069 54,891 — 7,486 193,446
Buildings 83,528 — (7,078 ) 24,779 101,229
Structures 6,102 — (610 ) 9,733 15,225
~~W~~ 220,699 54,891 (7,688 ) 41,998 309,900
(*1) The useful life and depreciation method of investment property are identical to those of property, plant and<br>equipment.
--- ---
(*2) Mainly includes assets transferred from property, plant and equipment in relation to changes in rental ratio<br>and the purpose of use.
--- ---

15

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Notes to the interim condensed separate financial statements, continued

March 31, 2024 and 2023

(Unaudited)

9. Property, Plant and Equipment

Changes in the carrying amount of property, plant and equipment for the three-month period ended March 31, 2024 and the year ended December 31, 2023 are as follows:

(a) For the three-month period ended March 31, 2024
(in millions of Won) Beginning Acquisitions Depreciation Others(* 1) Ending
--- --- --- --- --- --- --- --- --- --- --- --- ---
Land ~~W~~ 50,197 4 — (50 ) 50,151
Buildings 29,539 37 (476 ) (78 ) 29,022
Structures 7,748 1 (101 ) (8 ) 7,640
Machinery and equipment 27,549 277 (512 ) — 27,314
Vehicles 63 — (5 ) — 58
Furniture and fixtures 13,485 124 (294 ) — 13,315
Construction-in-progress 69,206 — — — 69,206
~~W~~ 197,787 443 (1,388 ) (136 ) 196,706
(*1) Represents assets transferred from<br>construction-in-progress to other property, plant and equipment, assets transferred to investment property, and other expenses.
--- ---
(b) For the year ended December 31, 2023
--- ---
(in millions of Won) Beginning Acquisitions Disposals Depreciation Impairment(* 1) Others(* 2) Ending
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Land ~~W~~ 51,310 8,079 — — (1,706 ) (7,486 ) 50,197
Buildings 39,277 12,659 (186 ) (1,399 ) — (20,812 ) 29,539
Structures 6,036 1,107 (700 ) (201 ) — 1,506 7,748
Machinery and equipment 10,504 18,637 — (1,061 ) (531 ) — 27,549
Vehicles 11 62 — (10 ) — — 63
Furniture and fixtures 12,573 1,303 — (951 ) — 560 13,485
Construction-in-progress 25,295 69,693 — — (8,420 ) (17,362 ) 69,206
~~W~~ 145,006 111,540 (886 ) (3,622 ) (10,657 ) (43,594 ) 197,787
(*1) During the year ended December 31, 2023, the Company estimated the recoverable amount based on the net<br>fair value of land adjacent to the magnesium smelting plant located in Gangneung city where operation and development has been discontinued. The Company recognized an impairment loss since recoverable amounts are less than their carrying amounts.<br>
--- ---
(*2) Represents assets transferred from<br>construction-in-progress to other property, plant and equipment, assets transferred from investment properties.
--- ---

16

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Notes to the interim condensed separate financial statements, continued

March 31, 2024 and 2023

(Unaudited)

9. Property, Plant and Equipment (cont’d)

(c) Information on lease agreements for which the Company is a lessee is as follows:
1) Right-of-use assets<br>
--- ---

As of March 31, 2024 and December 31, 2023, there are no right-of-use assets listed as property, plant and equipment.

2) Amount recognized in profit or loss

The amounts recognized in profit or loss related to leases for each of the three-month periods ended March 31, 2024 and 2023 are as follows:

(in millions of Won) March 31, 2024 March 31, 2023
Expenses related to short-term leases 2,186 59
Expenses related to leases of low-value assets 1,449 473
~~W~~ 3,635 532

10. Intangible Assets

Changes in the carrying amount of intangible assets for the three-month period ended March 31, 2024 and the year ended December 31, 2023 are as follows:

(a) For the three-month period ended March 31, 2024
(in millions of Won) Beginning Acquisitions Amortization Others(* 2) Ending
--- --- --- --- --- --- --- --- --- --- --- --- ---
Intellectual property rights ~~W~~ 576 — (40 ) 65 601
Membership(* 1) 11,618 — — — 11,618
Development expense 2,905 — (301 ) 1,436 4,040
Construction-in-progress 3,565 808 — (1,519 ) 2,854
Other intangible assets 677 — (58 ) — 619
~~W~~ 19,341 808 (399 ) (18 ) 19,732
(*1) Estimated useful life of membership is indefinite.
--- ---
(*2) Represents assets transferred from<br>construction-in-progress to other intangible assets, assets transferred from property, plant and equipment and others.
--- ---

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March 31, 2024 and 2023

(Unaudited)

10. Intangible Assets (cont’d)

(b) For the year ended December 31, 2023
(in millions of Won) Beginning Acquisitions Amortization Others(* 2) Ending
--- --- --- --- --- --- --- --- --- --- --- --- ---
Intellectual property rights ~~W~~ 504 — (151 ) 223 576
Membership(* 1) 11,618 — — — 11,618
Development expense 1,400 — (865 ) 2,370 2,905
Construction-in-progress 1,476 4,740 — (2,651 ) 3,565
Other intangible assets 904 4 (231 ) — 677
~~W~~ 15,902 4,744 (1,247 ) (58 ) 19,341
(*1) Estimated useful life of membership is indefinite.
--- ---
(*2) Represents assets transferred from<br>construction-in-progress to intangible assets and assets transferred from property, plant and equipment, and others.
--- ---

11. Other Assets

Other assets as of March 31, 2024 and December 31, 2023 are as follows:

(in millions of Won) March 31, 2024 December 31, 2023
Current
Advance payments ~~W~~ 101 208
Prepaid expenses 4,798 865
4,899 1,073
Non-current
Long-term advance payments 7,264 1,843
Long-term prepaid expenses 39 21
Others 8 8
~~W~~ 7,311 1,872

12. Borrowings

(a) Borrowings as of March 31, 2024 and December 31, 2023 are as follows:
(in millions of Won) March 31, 2024 December 31, 2023
--- --- --- --- ---
Current
Exchangeable bonds ~~W~~ 1,642,466 1,756,691
Non-current
Long-term borrowings ~~W~~ 1,374 1,316

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March 31, 2024 and 2023

(Unaudited)

12. Borrowings (cont’d)

(b) Current portion of debentures as of March 31, 2024 and December 31, 2023 are as follows:<br>
(in millions of Won) Lenders Issuance<br>date Maturitydate Annualinterest rate (% ) March 31, 2024 December 31, 2023
--- --- --- --- --- --- --- --- --- --- --- ---
Exchangeable bonds(* 1) Foreign currency exchangeable bonds 2021.09.01. 2026.09.01. — 1,642,466 1,756,691
(*1) The issuance conditions of the exchangeable bonds issued by the Company are as follows. As of December 31,<br>2023, exchangeable bonds are reclassified as current liabilities because the bondholders’ put option for redemption has become exercisable within 12 months.
--- ---
Foreign currency exchangeable bonds
--- ---
Type of bond Exchangeable bonds
Aggregate principal amount EUR 1,065,900,000
Interest rate - Coupon rate : -
- Yield to maturity : (0.78%)
Maturity date September 1, 2026
Redemption - Redemption at maturity : Outstanding bond principal, which is not repaid early or which call option is not excercised on, is repaid at maturity as a lump sum
- Prepayment : The issuer has call option and the bondholders have put option
Exchange rate 100%
Exchange price (Won/share) 446,504(*)
Underlying shares Registered common shares(treasury shares)
Exchange period From October 12, 2021 to August 22, 2026
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, issuance of<br>options or warranties to shareholders, share dividend, cash dividend, issuance of new shares under the market price.
Put option by bondholders - 3 years(September 1, 2024) from the closing date
- 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 30 consecutive trading days)
Call option by the issuer - Share price(based on closing price) is higher than 130% of exchange price for more than 20 trading days during 30 consecutive trading days in a row, after 3 years (September 1, 2024) from the closing day to 30 business days before<br>the maturity of bonds
- When the outstanding balance of outstanding bonds is less than 10% of the total issuance (Clean-Up Call)
- 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 paid during the three-month period ended March 31,<br>2024.
--- ---

The Company has designated exchangeable bonds listed on the Singapore Stock Exchange as financial liabilities measured at fair value through profit or loss. The quoted transaction price is used in fair value measurement, and changes in fair value are recognized in profit or loss.

(c) Long-term borrowings and others excluding current portion, as of March 31, 2024 and December 31, 2023<br>are as follows:
(in millions of Won) Lenders Issuance<br>date Maturitydate Annualinterest rate (% ) March 31, 2024 December 31, 2023
--- --- --- --- --- --- --- --- --- --- ---
Foreign borrowings KOREA ENERGY AGENCY 2011.12.27. 2026.12.26. 3 year<br>Government<br>bond ~~W~~ 1,374 1,316

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March 31, 2024 and 2023

(Unaudited)

13. Other Payables

Other payables as of March 31, 2024 and December 31, 2023 are as follows:

(in millions of Won) March 31, 2024 December 31, 2023
Current
Accounts payable ~~W~~ 16,939 25,971
Accrued expenses 11,484 10,681
Dividend payable 192,772 3,087
~~W~~ 221,195 39,739
Non-current
Long-term withholdings 33,109 29,962
Less: Present value discount (3,199 ) (3,158 )
~~W~~ 29,910 26,804

14. Other Financial Liabilities

Other financial liabilities as of March 31, 2024 and December 31, 2023 are as follows:

(in millions of Won) March 31, 2024 December 31, 2023
Current
Financial guarantee liabilities ~~W~~ 1,903 1,571
Non-current
Financial guarantee liabilities ~~W~~ 8,471 6,968

20

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Notes to the interim condensed separate financial statements, continued

March 31, 2024 and 2023

(Unaudited)

15. Provisions

(a) Provisions as of March 31, 2024 and December 31, 2023 are as follows:

(in millions of Won) March 31, 2024 December 31, 2023
Current Non-current Current Non-current
Provision for bonus payments(* 1) ~~W~~ 2,106 — 6,055 —
Provision for restoration(* 2) 6,416 5,059 8,928 2,634
~~W~~ 8,522 5,059 14,983 2,634
(*1) Represents the provision for bonuses limited to 100% of annual salaries for executives.
--- ---
(*2) Due to contamination of land near the Company’s magnesium smelting plant located in Gangneung city, the<br>Company recognized present values of estimated costs for recovery as provisions for restoration as of March 31, 2024. In order to determine the estimated costs, the Company has assumed that it would use all of technologies and materials<br>available for now to recover the land. In addition, the Company has applied discount rates of 3.77% to assess present value of these costs.
--- ---
(b) Changes in provisions for the three-month period ended March 31, 2024 and the year ended December 31,<br>2023 are as follows:
--- ---
1) For the three-month period ended March 31, 2024
--- ---
(in millions of Won) Beginning Increase Reversal Utilization Ending
--- --- --- --- --- --- --- --- --- --- --- --- ---
Provision for bonus payments ~~W~~ 6,055 2,106 — (6,055 ) 2,106
Provision for restoration 11,562 — (54 ) (33 ) 11,475
~~W~~ 17,617 2,106 (54 ) (6,088 ) 13,581
2) For the year ended December 31, 2023
--- ---
(in millions of Won) Beginning Increase Reversal Utilization Ending
--- --- --- --- --- --- --- --- --- --- --- --- ---
Provision for bonus payments ~~W~~ 5,667 10,154 — (9,766 ) 6,055
Provision for restoration 15,865 853 — (5,156 ) 11,562
Others 34,724 — (8,158 ) (26,566 ) —
~~W~~ 56,256 11,007 (8,158 ) (41,488 ) 17,617

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Notes to the interim condensed separate financial statements, continued

March 31, 2024 and 2023

(Unaudited)

16. Employee Benefits

(a) Defined contribution plans

The expense related to post-employment benefit plans under defined contribution plans for each of the three-month periods ended March 31, 2024 and 2023 are as follows:

(in millions of Won) March 31, 2024 March 31, 2023
Expense related to post-employment benefit plans under defined contribution plans ~~W~~ 43 70
(b) Defined benefit plans
--- ---
1) The amounts recognized in relation to net defined benefit liabilities in the statements of financial position<br>as of March 31, 2024 and December 31, 2023 are as follows:
--- ---
(in millions of Won) March 31, 2024 December 31, 2023
--- --- --- --- --- --- ---
Present value of funded obligations ~~W~~ 40,530 44,276
Fair value of plan assets (38,517 ) (39,993 )
Net defined benefit liabilities ~~W~~ 2,013 4,283
2) The amounts recognized in the statements of comprehensive income for each of the three-month periods ended<br>March 31, 2024 and 2023 are as follows:
--- ---
(in millions of Won) March 31, 2024 March 31, 2023
--- --- --- --- --- --- ---
Current service costs ~~W~~ 1,793 2,646
Net interest costs (85 ) (105 )
~~W~~ 1,708 2,541

17. Other Liabilities

Other liabilities as of March 31, 2024 and December 31, 2023 are as follows:

(in millions of Won) March 31, 2024 December 31, 2023
Current
Advances received ~~W~~ 879 5
Withholdings 2,516 3,938
Unearned revenue 4,097 2,743
~~W~~ 7,492 6,686
Non-current
Unearned revenue ~~W~~ 3,199 3,158

22

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Notes to the interim condensed separate financial statements, continued

March 31, 2024 and 2023

(Unaudited)

18. 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<br>as of March 31, 2024 and December 31, 2023 are as follows:
--- ---
① March 31, 2024
--- ---
(in millions of Won) Fair value
--- --- --- --- --- --- --- --- --- --- ---
Book value Level 1 Level 2 Level 3 Total
Financial assets
Fair value through profit or loss
Short term financial instruments ~~W~~ 2,027,897 — 2,027,897 — 2,027,897
Other securities 207,991 — — 207,991 207,991
Fair value through other comprehensive income
Equity securities 699,958 657,614 — 42,344 699,958
Financial assets measured at amortized cost(*1)
Cash and cash equivalents 630,785 — — — —
Trade accounts and notes receivable 851,414 — — — —
Other receivables 59,753 — — — —
Deposit instruments 1,650,002 — — — —
~~W~~ 6,127,800 657,614 2,027,897 250,335 2,935,846
Financial liabilities
Fair value through profit or loss
Borrowings ~~W~~ 1,642,466 1,642,466 — — 1,642,466
Financial liabilities measured at amortized cost(*1)
Borrowings 1,374 — 1,374 — 1,374
Financial guarantee liabilities 10,374 — — — —
Others 246,751 — — — —
~~W~~ 1,900,965 1,642,466 1,374 — 1,643,840
(*1) Fair value of financial assets and liabilities measured at amortized cost approximates their carrying amounts.<br>
--- ---
② December 31, 2023
--- ---
(in millions of Won) Fair value
--- --- --- --- --- --- --- --- --- --- ---
Book value Level 1 Level 2 Level 3 Total
Financial assets
Fair value through profit or loss
Short term financial instruments ~~W~~ 2,190,743 — 2,190,743 — 2,190,743
Other securities 204,320 — — 204,320 204,320
Fair value through other comprehensive income
Equity securities 926,752 884,408 — 42,344 926,752
Financial assets measured at amortized cost(*1)
Cash and cash equivalents 376,914 — — — —
Trade accounts and notes receivable 100,323 — — — —
Other receivables 64,393 — — — —
Deposit instruments 1,750,002 — — — —
~~W~~ 5,613,447 884,408 2,190,743 246,664 3,321,815
Financial liabilities
Fair value through profit or loss
Borrowings ~~W~~ 1,756,691 1,756,691 — — 1,756,691
Financial liabilities measured at amortized cost(*1)
Borrowings 1,316 — 1,316 — 1,316
Financial guarantee liabilities 8,539 — — — —
Others 62,252 — — — —
~~W~~ 1,828,798 1,756,691 1,316 — 1,758,007
(*1) Fair value of financial assets and liabilities measured at amortized cost approximates their carrying amounts.<br>
--- ---

23

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Notes to the interim condensed separate financial statements, continued

March 31, 2024 and 2023

(Unaudited)

18. Financial Instruments (cont’d)

2) Financial liabilities were recognized in connection with financial guarantee contracts as of March 31,<br>2024. Details of the amount of guarantees provided are as follows:
(in millions of Won) Guarantee limit Guarantee amount
--- --- --- --- --- --- --- --- --- --- ---
Guarantee beneficiary Financial institution Foreign<br>currency Won<br>equivalent Foreign<br>currency Won<br>equivalent
Subsidiaries
POSCO Asia Co., Ltd. Credit Agricole USD 50,000,000 67,340 — —
ING USD 55,000,000 74,074 — —
Mizuho USD 50,000,000 67,340 — —
Shinhan USD 50,000,000 67,340 — —
POSCO Argentina S.A.U. BNP USD 20,000,000 26,935 18,529,994 24,956
CITI USD 97,975,000 131,953 90,773,815 122,254
Credit Agricole USD 97,975,000 131,953 90,773,815 122,254
HSBC USD 97,975,000 131,953 90,773,815 122,254
JPM USD 97,975,000 131,953 90,773,815 122,254
Associates
Nickel Mining Company SAS SMBC EUR 46,000,000 66,835 46,000,000 66,835
USD 616,900,000 830,841 381,625,254 513,972
EUR 46,000,000 66,835 46,000,000 66,835
3) Finance income and costs by category of financial instrument for each of the three-month periods ended<br>March 31, 2024 and 2023 are as follows:
--- ---
① For the three-month period ended March 31, 2024
--- ---
(in millions of Won) Finance income and costs
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Interest income(expense) Gain and loss onforeign currency Gain and loss ondisposal Gain and loss onvaluation Others Total Other<br>comprehensive<br>loss
Financial assets at fair value through profit or loss ~~W~~ — 2,870 11,003 26,065 — 39,938 —
Financial assets at fair value through other comprehensive income — — (8,219 ) — — (8,219 ) (18,721 )
Financial assets measured at amortized cost 20,456 1,694 — — — 22,150 —
Financial liabilities at fair value through profit or loss — (29,776 ) — 144,001 — 114,225 —
Financial liabilities measured at amortized cost (291 ) (433 ) — — 476 (248 ) —
~~W~~ 20,165 (25,645 ) 2,784 170,066 476 167,846 (18,721 )
② For the three-month period ended March 31, 2023
--- ---
(in millions of Won) Finance income and costs
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Interest income(expense) Gain and loss onforeign currency Gain and loss ondisposal Gain and loss onvaluation Others Total Othercomprehensiveincome
Financial assets at fair value through profit or loss ~~W~~ — 1,825 27,514 100,226 — 129,565 —
Financial assets at fair value through other comprehensive income — — — — — — 122,150
Financial assets measured at amortized cost 16,169 11,787 — — — 27,956 —
Financial liabilities at fair value through profit or loss — (74,480 ) — (72,632 ) — (147,112 ) —
Financial liabilities measured at amortized cost — (10 ) — — 1,497 1,487 —
~~W~~ 16,169 (60,878 ) 27,514 27,594 1,497 11,896 122,150

24

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Notes to the interim condensed separate financial statements, continued

March 31, 2024 and 2023

(Unaudited)

19. Share Capital and Capital Surplus

(a) Share capital as of March 31, 2024 and December 31, 2023 are as follows:
(in Won, except share information) March 31, 2024 December 31, 2023
--- --- --- --- ---
Authorized shares 200,000,000 200,000,000
Par value ~~W~~ 5,000 5,000
Issued shares(* 1) 84,571,230 84,571,230
Shared capital(* 2) ~~W~~ 482,403,125,000 482,403,125,000
(*1) As of March 31, 2024, total number of American depository receipts (ADRs) outstanding in overseas stock<br>market amounts to 20,307,420 and such ADRs are equivalent to 5,076,855 shares of common stock.
--- ---
(*2) As of March 31, 2024, the difference between the ending balance of common stock and the par value of<br>issued common stock is ~~W~~59,547 million due to retirement of 11,909,395 treasury shares.
--- ---
(b) Capital surplus as of March 31, 2024 and December 31, 2023 are as follows:
--- ---
(in millions of Won) March 31, 2024 December 31, 2023
--- --- --- --- --- --- ---
Share premium ~~W~~ 463,825 463,825
Gain on disposal of treasury shares 808,994 808,994
Gain from merger 80,627 80,627
Loss on disposal of hybrid bonds (1,787 ) (1,787 )
Share-based payment 18,898 18,898
~~W~~ 1,370,557 1,370,557

25

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Notes to the interim condensed separate financial statements, continued

March 31, 2024 and 2023

(Unaudited)

20. Accumulated Other Comprehensive Income

Accumulated other comprehensive income as of March 31, 2024 and December 31, 2023 are as follows:

(in millions of Won) March 31, 2024 December 31, 2023
Changes in fair value of equity investments at fair value through other comprehensive<br>income ~~W~~ (6,199 ) 30,678

21. Treasury Shares

Based on the Board of Directors’ resolution, the Company holds treasury shares for business purposes including price stabilization. Changes in treasury shares for three-month period ended March 31, 2024 and the year ended December 31, 2023 are as follows:

(shares, in millions of Won) March 31, 2024 December 31, 2023
Number of shares Amount Number of shares Amount
Beginning 8,695,023 ~~W~~ 1,889,658 8,722,053 ~~W~~ 1,892,308
Disposal of treasury shares — — (27,030 ) (2,650 )
Ending 8,695,023 ~~W~~ 1,889,658 8,695,023 ~~W~~ 1,889,658

22. Operating Revenue

(a) Details of operating revenue disaggregated by types of revenue and timing of revenue recognition for each of<br>the three-month periods ended March 31, 2024 and 2023 are as follows:
(in millions of Won) March 31, 2024 March 31, 2023
--- --- --- --- ---
Types of revenue
Dividend income ~~W~~ 850,028 520,174
Others 48,710 42,813
~~W~~ 898,738 562,987
Timing of revenue recognition
Revenue recognized at a point in time ~~W~~ 850,030 519,947
Revenue recognized over time 48,708 43,040
~~W~~ 898,738 562,987

26

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Notes to the interim condensed separate financial statements, continued

March 31, 2024 and 2023

(Unaudited)

22. Operating Revenue (cont’d)

(b) Details of contract assets and liabilities from contracts with customers as of March 31, 2024 and<br>December 31, 2023 are as follows:
(in millions of Won) March 31, 2024 December 31, 2023
--- --- --- --- ---
Receivables
Account receivables ~~W~~ 851,414 100,323
Contract assets
Account receivables 169,341 138,009
Contract liabilities
Advance received 879 5
Unearned income 7,296 5,901

23. Operating Expenses

Operating expenses for each of the three-month periods ended March 31, 2024 and 2023 are as follows:

(in millions of Won) March 31, 2024 March 31, 2023
Wages and salaries ~~W~~ 16,330 17,719
Post-employment benefit expense 1,941 3,125
Other employee benefits 5,041 2,999
Travel 1,349 1,008
Depreciation 2,807 2,544
Amortization 377 286
Rental 1,376 532
Repairs 209 127
Advertising 5,072 4,671
Research & development 32,532 22,529
Service fees 15,178 11,428
Supplies 208 49
Vehicles maintenance 728 525
Industry association fee 99 1,006
Training 179 64
Taxes and public dues 417 135
Conference 533 592
Others 1,286 1,172
Cost of sales — (1,414 )
~~W~~ 85,662 69,097

27

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Notes to the interim condensed separate financial statements, continued

March 31, 2024 and 2023

(Unaudited)

24. Finance Income and Costs

Details of finance income and costs for each of the three-month periods ended March 31, 2024 and 2023 are as follows:

(in millions of Won) March 31, 2024 March 31, 2023
Finance income
Interest income ~~W~~ 20,456 16,169
Gain on foreign currency transactions 1,181 3,111
Gain on foreign currency translations 6,242 12,457
Gain on disposal of financial assets at fair value through profit or loss 11,003 27,514
Gain on valuation of financial assets at fair value through profit or loss 26,065 100,226
Gain on valuation of financial liabilities at fair value through profit or loss 144,001 —
Others 478 1,652
~~W~~ 209,426 161,129
Finance costs
Loss on foreign currency transactions ~~W~~ 197 1,702
Loss on foreign currency translations 32,871 74,744
Loss on valuation of financial liabilities at fair value through profit or loss — 72,632
Loss on disposal of equity securities 8,219 —
Others 293 155
~~W~~ 41,580 149,233

25. Other Non-Operating Income and Expenses

Details of other non-operating income and expenses for each of the three-month periods ended March 31, 2024 and 2023 are as follows:

(in millions of Won) March 31, 2024 March 31, 2023
Other non-operating income
Reversal of other provisions ~~W~~ 54 8,158
Others 116 108
~~W~~ 170 8,266
Other non-operating expenses
Impairment loss on other accounts receivables ~~W~~ 106 —
Loss on disposals of assets held for sale — 102
Increase of other provisions — 425
Others 580 377
~~W~~ 686 904

28

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Notes to the interim condensed separate financial statements, continued

March 31, 2024 and 2023

(Unaudited)

26. Expenses by Nature

Expenses that are recorded by nature as cost of sales, operating expenses and other non-operating expenses in the statements of comprehensive income for each of the three-month periods ended March 31, 2024 and 2023 are as follows (excluding finance costs and income tax expenses):

(in millions of Won) March 31, 2024 March 31, 2023
Employee benefits expenses ~~W~~ 27,833 22,809
Depreciation(* 1) 3,406 2,735
Amortization 399 286
Service fees 15,660 11,490
Rental 3,967 629
Advertising 5,072 4,671
Research & development 19,125 20,405
Other expenses 10,886 8,390
~~W~~ 86,348 71,415
(*1) Includes depreciation of investment property.
--- ---

29

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Notes to the interim condensed separate financial statements, continued

March 31, 2024 and 2023

(Unaudited)

27. Income Taxes

The effective tax rates of the Company for each of the three-month periods ended March 31, 2024 and 2023 are 3.98% and 0%, respectively.

(a) Income taxes

The Company vertically spun off its steel business at the spin-off date on March 1, 2022. The Company’s vertical spin-off meets the requirements for qualified spin-off under the Corporate Tax Act. Accordingly, transfer gains of ~~W~~8,452,339 million under the Corporate Tax Act were incurred for the net asset transferred to the newly established company (POSCO), and the Company simultaneously set a Corporate Tax Act based provision for accelerated depreciation on the transfer gains and recognized deferred tax liabilities.

Deductible temporary differences related to the investment in newly established company (POSCO) which is caused by transfer gains under the Corporate Tax Act were not recognized as deferred tax assets, since it is not probable they will reverse through disposal or liquidation.

(b) Global minimum top-up tax

In 2023, Pillar Two legislation has been enacted in the Republic of Korea, where the Company of the Company is domiciled, and will be effective for the fiscal years starting on or after January 1, 2024. Accordingly, the Company calculated the Pillar Two income tax expense for the three-month period ended March 31, 2024 as the Company is subject to global minimum top-up tax under the application of the OECD’s Pillar Two Model Rules via domestic legislation. As a result of the Company’s assessment on the Pillar Two income taxes, the Company concluded that no Pillar Two income taxes will be levied on the Company for the three-month period ended March 31, 2024 since its subsidiaries and the Company required to pay taxes are qualified for the application of transitional exemption or their effective tax rates are above 15%. Furthermore, the Company applies temporary exception to the recognition and disclosure of deferred taxes arising from the jurisdictional implementation of the Pillar Two Model Rules as prescribed in KIFRS 1012 Income Taxes, and accordingly, the Company did not recognize deferred tax assets and liabilities related to the global minimum top-up tax and does not disclose information related to deferred income tax.

30

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Notes to the interim condensed separate financial statements, continued

March 31, 2024 and 2023

(Unaudited)

28. Earnings per Share

(a) Basic earnings per share for each of the three-month periods ended March 31, 2024 and 2023 are as follows:<br>
(in Won, except share information) March 31, 2024 March 31, 2023
--- --- --- --- ---
Profit for the period ~~W~~ 941,339,021,421 551,741,289,484
Weighted-average number of common shares outstanding(* 1) 75,876,207 75,849,177
Basic earnings per share ~~W~~ 12,406 7,274
(*1) The weighted-average number of common shares outstanding used to calculate basic earnings per share is as<br>follows:
--- ---
(shares) March 31, 2024 March 31, 2023
--- --- --- --- --- --- ---
Total number of common shares issued 84,571,230 84,571,230
Weighted-average number of treasury shares (8,695,023 ) (8,722,053 )
Weighted-average number of common shares outstanding 75,876,207 75,849,177
(b) The Company has potentially issuable common shares due to its exchangeable bonds and share-based payment<br>program as of March 31, 2024. Considering gain or loss from revaluation of and exchange rate on exchangeable bonds have an anti-dilution effect as of March 31, 2023, the Company did not calculate diluted earnings per share. Diluted<br>earnings per share for the year ended March 31, 2024 are calculated as follows:
--- ---
(in Won, except share information) March 31, 2024
--- --- --- ---
Profit for the period ~~W~~ 941,339,021,421
Gain or loss from revaluation of and exchange rate on exchangeable bonds (87,838,993,624 )
Diluted profit for the period 853,500,027,797
Adjusted weighted-average number of common shares outstanding(* 1) 79,189,781
Diluted earnings(loss) per share 10,778
(*1) The weighted-average number of common shares outstanding used to calculate diluted earnings(loss) per share is<br>as follows:
--- ---
(shares) March 31, 2024
--- --- ---
Weighted-average number of common shares outstanding 75,876,207
Weighted-average number of potential common shares 3,313,574
Adjusted weighted-average number of common shares 79,189,781

31

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POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

March 31, 2024 and 2023

(Unaudited)

29. Related Party Transactions

(a) Material transactions with related companies for each of the three-month periods ended March 31, 2024 and<br>2023 are as follows:
1) For the three-month period ended March 31, 2024
--- ---
(in millions of Won) Sales and others(* 1) Purchase and others
--- --- --- --- --- --- --- --- --- --- ---
Sales Dividends Others Purchase of fixedassets Others
Subsidiaries(* 2)
POSCO ~~W~~ 39,719 589,786 — 191 3,841
POSCO Eco & Challenge Co., Ltd. 2,316 11,037 — 87 42
POSCO STEELEON CO., Ltd 266 — — — 9
POSCO DX 394 9,940 — 219 3,944
POSCO Research Institute — — — 30 1,935
POSCO WIDE Co., Ltd 82 — — 1 1,567
eNtoB Corporation — — — 37 1,707
POSCO FUTURE M CO., LTD. 3,494 11,565 — — —
POSCO MOBILITY SOLUTION 245 — — — —
POSCO INTERNATIONAL Corporation 1,612 124,396 — — 12
Busan E&E Co,. Ltd. — 2,472 — — —
POSCO America Corporation — — — — 1,547
Others 936 1 422 — 2,411
49,064 749,197 422 565 17,015
Associates and joint ventures(* 2)
SNNC 83 — — — —
POSCO-NPS Niobium LLC — 8,041 — — —
Roy Hill Holdings Pty Ltd — 91,837 — — —
Others 49 — 56 — —
132 99,878 56 — —
~~W~~ 49,196 849,075 478 565 17,015
(*1) Sales and others mainly consist of trademark usage income, rental income, and dividend income from<br>subsidiaries, associates and joint ventures.
--- ---
(*2) As of March 31, 2024, the Company provided payment guarantees to related parties (see Note 18).<br>
--- ---
2) For the three-month period ended March 31, 2023
--- ---
(in millions of Won) Sales and others(* 1) Purchase and others
--- --- --- --- --- --- --- --- --- --- ---
Sales Dividends(* 3) Others Purchase of fixedassets Others
Subsidiaries(* 2)
POSCO ~~W~~ 31,396 325,043 — — 5,653
POSCO Eco & Challenge Co., Ltd. 2,091 11,037 — 87 836
POSCO STEELEON CO., Ltd 528 — — — 23
POSCO DX 651 7,455 — 1,029 1,817
eNtoB Corporation — — — — 185
POSCO FUTURE M CO., LTD. 1,174 13,878 — — —
POSCO MOBILITY SOLUTION 223 — — — —
POSCO INTERNATIONAL Corporation 2,511 77,616 — — —
POSCO Maharashtra Steel Private Limited — — 146 — —
POSCO ASSAN TST STEEL INDUSTRY — — 142 — —
Others 2,477 5,126 1,419 102 7,160
41,051 440,155 1,707 1,218 15,674
Associates and joint ventures(* 2)
SNNC 41 — — — —
Roy Hill Holdings Pty Ltd — 32,443 — — —
Others 48 7,201 3,714 — 90
89 39,644 3,714 — 90
~~W~~ 41,140 479,799 5,421 1,218 15,764
(*1) Sales and others mainly consist of trademark usage income, rental income, and dividend income from<br>subsidiaries, associates and joint ventures.
--- ---
(*2) As of March 31, 2023, the Company provided payment guarantees to related parties (see Note 18).<br>
--- ---
(*3) Gain on disposals of investment in subsidiaries, recognized as dividends amounting to<br>~~W~~14,898 million, is excluded.
--- ---

32

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POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

March 31, 2024 and 2023

(Unaudited)

29. Related Party Transactions (cont’d)

(b) The balances of receivables and payables arising from significant transactions with related parties as of<br>March 31, 2024 and December 31, 2023 are as follows:
1) March 31, 2024
--- ---
(in millions of Won) Receivables Payables
--- --- --- --- --- --- --- --- --- --- --- --- ---
Trade accountsand notesreceivable Others Total Accountspayable Others Total
Subsidiaries
POSCO ~~W~~ 723,927 16,715 740,642 5,310 35,870 41,180
POSCO Eco & Challenge Co., Ltd. 22,615 1,447 24,062 — 449 449
POSCO STEELEON CO., Ltd 1,329 — 1,329 — — —
POSCO DX 11,907 1 11,908 873 89 962
POSCO FUTURE M CO., LTD. 28,694 48 28,742 — 39 39
POSCO Mobility Solution Corporation 1,226 — 1,226 — 2 2
POSCO INTERNATIONAL Corporation 132,458 25 132,483 — 244 244
POSCO Argentina S.A.U 7 16,327 16,334 — — —
Others 3,563 598 4,161 1,120 341 1,461
925,726 35,161 960,887 7,303 37,034 44,337
Associates and joint ventures
SNNC 417 — 417 — — —
Roy Hill Holdings Pty Ltd 91,837 — 91,837 — — —
FQM Australia Holdings Pty Ltd(* 1) — 228,645 228,645 — — —
Others 245 350 595 — — —
92,499 228,995 321,494 — — —
~~W~~ 1,018,225 264,156 1,282,381 7,303 37,034 44,337
(*1) FQM Australia Holdings Pty Ltd’s other receivable consists of long-term loans and accrued interest.<br>Meanwhile, the Company has recognized allowance for doubtful accounts for all of other receivables.
--- ---
2) December 31, 2023
--- ---
(in millions of Won) Receivables Payables
--- --- --- --- --- --- --- --- --- --- --- --- ---
Trade accountsand notesreceivable Others Total Accountspayable Others Total
Subsidiaries
POSCO ~~W~~ 110,913 19,666 130,579 3,937 32,901 36,838
POSCO Eco & Challenge Co., Ltd. 9,262 1,714 10,976 — 170 170
POSCO STEELEON CO., Ltd 1,063 — 1,063 — — —
POSCO DX 1,574 — 1,574 1,434 423 1,857
eNtoB Corporation — — — 1,391 3 1,394
POSCO FUTURE M CO., LTD 14,299 463 14,762 — 31 31
POSCO Mobility Solution Corporation 981 — 981 — — —
POSCO INTERNATIONAL Corporation 6,449 25 6,474 — 163 163
PT. KRAKATAU POSCO — 3,582 3,582 — — —
POSCO Argentina S.A.U 301 10,948 11,249 — — —
Others 3,044 204 3,248 9,022 151 9,173
147,886 36,602 184,488 15,784 33,842 49,626
Associates and joint ventures
SNNC 334 — 334 — — —
Roy Hill Holdings Pty Ltd 88,008 — 88,008 — — —
FQM Australia Holdings Pty Ltd(* 1) — 218,900 218,900 — — —
Others 195 560 755 — — —
88,537 219,460 307,997 — — —
~~W~~ 236,423 256,062 492,485 15,784 33,842 49,626
(*1) FQM Australia Holdings Pty Ltd’s other receivable consists of long-term loans and accrued interest.<br>During the year ended December 31, 2023, the Company provided additional loan to its associates by ~~W~~6,448 million. Meanwhile, the Company has recognized allowance for doubtful accounts for all of other receivables during<br>the year ended December 31, 2023
--- ---

33

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POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

March 31, 2024 and 2023

(Unaudited)

29. Related Party Transactions (cont’d)

(c) For each of the three-month periods ended March 31, 2024 and 2023, details of compensation to key<br>management officers are as follows:
(in millions of Won) March 31, 2024 March 31, 2023
--- --- --- --- ---
Short-term benefits ~~W~~ 4,915 8,700
Retirement benefits 889 2,648
~~W~~ 5,804 11,348

Key management officers include directors (including non-standing directors), executive officials and fellow officials who have significant influence and responsibilities in the Company’s business and operations.

30. Commitments and Contingencies

(a) Commitments
1) As of March 31, 2024, the Company entered into commitments with KOREA ENERGY AGENCY for long-term foreign<br>currency borrowing, which is limited up to the amount of USD 1.05 million. The borrowing is related to the exploration of gas hydrates in Western Fergana-Chinabad. The repayment of the borrowing depends on the success of the project. The<br>Company is not liable for the repayment of full or part of the money borrowed if the respective project fail. The Company has agreed to pay a certain portion of its profits under certain conditions, as defined by the borrowing agreements. As of<br>March 31, 2024, the ending balance of the borrowing amounts to USD 1.02 million.
--- ---
2) The Company has deposited 3,247,373 treasury shares for exchange with the Korea Securities Depository in<br>relation to foreign currency exchangeable bonds as of March 31, 2024.
--- ---
(b) As of March 31, 2024, the Company has provided three blank checks to KOREA ENERGY AGENCY as collateral for<br>long-term foreign currency borrowings.
--- ---
(c) Litigation in progress
--- ---

The Company is involved in 4 lawsuits for compensatory damage amounted to ~~W~~10 billion as defendant as of March 31, 2024. However, the Company has not recognized any provisions for the lawsuit since the Company does not believe it has a present obligation as of March 31, 2024.

(d) The Company has a joint obligation with the company newly established through<br>spin-off, POSCO, to discharge all liabilities (including financial guarantee contracts) incurred prior to the spin-off date.

34

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POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

March 31, 2024 and 2023

(Unaudited)

31. Cash Flows from Operating Activities

Changes in operating assets and liabilities for each of the three-month periods ended March 31, 2024 and 2023 are as follows:

(in millions of Won) March 31, 2024 March 31, 2023
Trade accounts and notes receivable ~~W~~ (31,174 ) (32,127 )
Other accounts receivable 13,525 6,577
Accrued revenues — 683
Prepaid expenses (3,951 ) (1,765 )
Other current assets (234 ) (565 )
Short-term guarantee deposits — (41 )
Other non-current assets (5,248 ) —
Other accounts payable (7,121 ) (3,078 )
Accrued expenses 803 (4,719 )
Advances received 873 (374 )
Withholdings (1,421 ) 709
Unearned revenue 1,063 230
Other current liabilities (3,949 ) (2,468 )
Payments of severance benefits (5,865 ) (4,320 )
Plan assets 1,822 1,968
~~W~~ (40,877 ) (39,290 )

32. Events after the reporting period

Pursuant to the resolution of the Board of Directors on May 14, 2024, the Company decided to pay interim cash dividends of ~~W~~2,500 per common share (total dividend: ~~W~~189.7 billion).

35

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