Equibles

6-K

POSCO HOLDINGS INC. (PKX)

6-K 2025-05-30 For: 2025-05-30
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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 OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15D-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of May, 2025

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 2025.

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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 30, 2025 By /s/ Han, Young-Ah
(Signature)
Name: Han, Young-Ah
Title: Senior Vice President
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Exhibit 99.1

LOGO

QUARTERLY REPORT

(From January 1, 2025 to March 31, 2025)

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, 2025 to March 31, 2025)

To:  Korean Financial Services Commission and Korea Exchange

/s/ Lee, Jootae
Lee, Jootae
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/ Han, Young-Ah
---
Han, Young-Ah
Head of IR office, Senior 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
II. Business
III.  Financial Statements
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 30, 2025 or summarized version of Business Report on March 31, 2025.

SEC : EDGAR Entity Landing Page (sec.gov).

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II. BUSINESS

1. Overview

A. Classification of Business

We classify our business into six segments:

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

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

B. Summary of Financial Status of Segment

(In millions of KRW)
Business<br><br><br>Segment 2025.1Q 2024 2023
Sales Operating<br>Income (Loss) Sales Operating<br>Income (Loss) Sales Operating<br>Income (Loss)
Steel 14,962,590 449,869 62,200,920 1,636,808 63,538,698 2,556,779
Infrastructure<br><br><br>(Trading) 10,560,769 261,458 42,903,253 1,113,710 42,943,752 1,133,512
Infrastructure<br><br><br>(Construction) 1,888,200 16,382 9,829,578 64,804 10,267,503 197,352
Infrastructure<br><br><br>(Logistics and etc.) 877,102 28,798 4,139,201 147,603 3,945,953 202,010
Energy Materials 929,808 -97,577 3,829,851 -277,472 4,821,886 -161,334
Others 686,503 573,438 2,111,150 1,600,212 1,562,214 1,106,332
Total 29,904,972 1,232,368 125,013,953 4,285,664 127,080,006 5,034,651
* 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 Infrastructure (Logistics and etc.).
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* The former ‘Secondary Battery Materials’ segment was renamed as ‘Energy Materials’ followed<br>by internal reorganization in January 2025.
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2. Business Status of Segments

A. Steel

There are 85 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.

Despite strong demand from emerging countries such as India, global crude steel production in the first quarter of 2025 has been decreased year-on-year due to the continued global tightening trend and sluggish demand in industries including China’s real estate market.

Global Crude Steel Production

(Millions of Tons, %)
Crude Steel Production 2025.1Q 2024 2023
Global 469 1,839 1,850
Korea<br><br><br>(Ratio) 16<br> <br>(3.3 %) 64<br> <br>(3.5 %) 67<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.

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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). And also we are continuously considering expanding overseas production capacity.

On production side, the company plans to actively respond to the expansion of the next-generation low-carbon market demand such as new mobility, low-carbon energy and smart infrastructure by developing high value-added World Top Premium products and upgrading the sales structure. Meanwhile, we aim to lead the global carbon neutrality trend by gradually achieving our 2050 carbon neutrality roadmap, including the construction of a test plant for HyREX (hydrogen-reduced steel) technology.

(2) Market Share

(Millions of Tons, %)
Category 2025.1Q 2024 2023
Production Market share Production Market share Production Market share
Crude Steel Production 16 100 % 64 100 % 67 100 %
POSCO 9 56 % 35 55 % 36 53 %
Others 7 44 % 29 45 % 31 47 %
ø Source: World Steel Association (www.worldsteel.org)
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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 50% of total sales and export sales are around 50%, and by export region, the proportion of Southeast Asia, Japan and Europe 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 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 process.

Second, POSCO will upgrade low-carbon product portfolio. We will proactively respond to the growing demand for low-carbon 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.

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Third, POSCO implement ‘Intelligent Factory’ 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.

∎ 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.

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∎ POSCO M-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. The cost competitiveness of its steel packaging business has strengthened by reducing packaging materials and developing technology to improve packaging quality. The steel packaging business has enhanced cost competitiveness by reducing packaging materials and improving packaging quality, while the packaging equipment business has focused on developing automation equipment for packaging.

Business Areas

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 packaging service, maintenance of packaging facilities and etc.
Engineering business Steel Packaging Engineering, Mechanical Equipment and etc.
Consignment operation business Ferromanangan factory and etc.

(2) Market Share

(Tons)
Category 2025.1Q 2024 2023
Sales Volume Market share Sales Volume Market share Sales Volume Market share
POSCO M-TECH 8,870 41.7 % 38,284 44.3 % 31,984 44.7 %
PJ Metal 12,397 58.3 % 48,231 55.7 % 39,600 55.3 %
Total 21,267 100.0 % 86,515 100.0 % 71,584 100.0 %
ø It is difficult to calculate exact market share of Aluminum deoxidizers as total production and sales volume of<br>the
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domestic market are not counted.

B. Infrastructure [Trading segment]

There are 39 subsidiaries in trading segment including POSCO International.

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∎ POSCO INTERNATIONAL

(1) Summary of Business

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 materials, agro-commodities, bio and energy based on the know-how accumulated over a long period of time in the traditional<br>trading business and through its vast overseas networks.
• 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 7.5 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 palm<br>farming through RSPO certification.
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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 Hotel Lotte.
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[Energy Sector]

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

• Myanmar Gas Field business : From February 2021, as part of the third phase of the development project,<br>the construction of the gas boosting platform EPCIC for the production of low-pressure gas in the reservoir. After completion in April 2024, the company has been producing gas through new facilities since May<br>2024. Additionally, the forth phase of the development project, which is necessary to secure additional reserves and maintain the current level of gas production, commenced main construction in July 2024 and plans to start gas production in 2027.<br>
• 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. Considering strong international oil prices and a domestic gas supply shortage in eastern Australia, the company has launched additional<br>development projects with a targeted three-fold increase in gas production by 2025.
• Indonesia By-Product Gas Power Business: The company completed the<br>construction of Southeast Asia’s first-ever by-product gas power plant in Indonesia in early 2014, which has been in operation since. The by-product gas power plant<br>has a facility capacity of 200 MW and utilizes the by-product gas generated from POSCO Indonesia’s integrated steel mill as fuel to produce electricity enough to power approximately 600,000 households.<br>
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• Domestic Onshore Wind Power Business: In January 2015, the Sinan Green Energy acquired a business permit<br>to run an onshore wind farm in Jaeun-myeon, Sinan-gun, Jeollanam-do, and we have been actively running the 20 onshore wind power generator since its completion in 2019.<br>With a generation capacity of 62.7 MW, this onshore wind power complex produces approximately 120,000 MWh of clean energy annually, which has an effect equivalent to reducing annual emissions of carbon dioxide by about 49,000 tons.<br>
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(2) Market Share

(Millions of US Dollars)
Category 2025.1Q 2024.1Q Growth Rate
All Trading Companies in Korea 159,837 163,305 -2.1 %
POSCO International Corp. 2,033 2,166 -6.1 %
ø Source: Korea International Trade Association (www.kita.net)
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B. Infrastructure [Construction segment]

∎POSCO E&C

[PlantBusiness Sector]

POSCO E&C has established a unique position in the domestic steel plant sector through extensive experience in supplying and constructing equipment for integrated steel mills and auxiliary facilities. The company has expanded into global markets such as India, Brazil, and Indonesia, enhancing our reputation as a global player. Recently, the company has focused on low-carbon steel technologies and water electrolysis projects. In power generation, we were the first domestic construction company to enter the South American market in 2006, building coal-fired and gas combined cycle power plants in Chile, Peru, and Panama. The company is also expanding our involvement in nuclear power projects, including large-scale plants and national projects like i-SMR. Additionally, the company has numerous achievements in secondary battery raw materials and materials, constructing plants in Pohang, Gwangyang, and Sejong, and building a lithium plant in Argentina.

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[Infrastructure Business Sector]

The infrastructure business segment is continuously expanding its business scale based on numerous achievements in the fields of roads, railways, bridges, airports, ports, water treatment, and waste management. The company is undertaking significant domestic private investment projects such as the Seoul Metropolitan Railway (GTX) -B line. The company has successfully expanded overseas to South America, Southeast Asia and Poland and is continuing to secure consecutive contracts. The company plans to expand our experience in road tunneling projects and offshore wind projects.

[Construction Business Sector]

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, the company 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. Additionally, in the fields of urban redevelopment/reconstruction and remodeling, POSCO E&C has achieved the highest number of orders in the industry, earning recognition for its brand value from consumers and successfully executing numerous projects. In light of the upcoming super-aged society, the company plans to diversify its portfolio by continuously expanding into new business, such as senior residences.

B. Infrastructure [Logistics and etc. segment]

There are 14 subsidiaries of logistics and etc. segment including POSCO Flow and POSCO DX.

∎ 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 41.2 trillion, POSCO DX is expected to take about 3.5% 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 in the establishment and operation of the POSCO’s Smart Factory based on PosFrame, a self-developed AI-based platform, Incheon Airport BHS (Baggage Handling System), and Hanjin Express Mega Hub Logistics Center, led the company to have a strength in the area of continuous and automation process.

In addition, the company has established the Fulfillment Center and Hub Center within POSCO steelworks, which is the first fulfillment logistics system in the domestic manufacturing industry.

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C. Energy Materials

Energy Materials segment includes businesses related to EV battery materials, such as lithium, nickel, cathode material, anode material, and recycling, and there are a total of 16 subsidiaries, including POSCO Future M and POSCO Argentina.

∎ POSCO Future M

[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 order to advance as an energy materials company, POSCO Future M acquired the anode materials division of LS Mtron in August 2010 and merged with the cathode materials company POSCO ESM in April 2019. POSCO Future M produces both anode active materials (anode materials) and cathode active materials (cathode materials), which are high-value-added materials in the secondary battery value chain.

Our company has established a full battery materials value chain from raw materials to materials and battery recycling at the POSCO Group level. We are the only company in the country to produce graphite-based anode materials, which are considered the most difficult to decouple from China and therefore, we expect to increase the sales to global automakers and battery companies in the future.

However, if the production of raw materials such as lithium, nickel, and graphite within the POSCO Group is reduced or delayed than preplanned schedule, we may not be able to meet ‘Rules of Origin’ and therefore the benefits might decrease.

D. Others

In Others segment, there are 15 subsidiaries in total, including POSCO HOLDINGS. POSCO HOLDINGS is focusing on investment in new growth businesses and opportunities.

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3. Key Products

A. Sales of Key Products (2025.1Q)

(In hundred millions of KRW, %)
Business<br><br><br>Segment Item /<br><br><br>Business Sector Specific Use Total Sales Ratio
Steel Hot-rolled Product (HR) Steel pipe, Shipbuilding, etc. 31,280 20.2%
Cold-rolled Product (CR) Automobile, Home appliances, etc. 48,595 32.8%
Stainless Steel Products Tableware, pipes, etc. 25,604 16.9%
Others Plates, Wire rods, etc. 44,147 30.2%
Gross Sum 149,626 100.0%
Deduction of Internal Trade -55,774
Sub Total 93,852
Infra-<br><br><br>structure Trading Steel, Metal 80,541 57.3%
Chemical, Strategic Item, Energy 14,856 10.7%
Others 10,158 7.5%
Construction Architecture (Domestic) 10,643 8.7%
Plant (Domestic) 3,373 3.7%
Civil Engineering (Domestic) 1,791 1.8%
Others (Domestic) 440 0.5%
Overseas Construction 1,565 1.5%
Owned Construction 348 0.4%
Others 722 0.6%
Logistics and etc. Others 8,824 7.3%
Gross Sum 133,261 100.00%
Deduction of Internal Trade -59,039
Sub Total 74,222
Energy<br><br><br>Materials Gross Sum 9,298 100.00%
Deduction of Internal Trade -3,086
Sub Total 6,212
Others Gross Sum 6,865 100.00%
Deduction of Internal Trade -6,783
Sub Total 82
Total Sum 174,368
* The former ‘Secondary Battery Materials’ segment was renamed as ‘Energy Materials’ followed<br>by internal reorganization in January 2025.
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B. Price Movement Trends of Key Products

(In thousands of KRW/Tons, KRW/kWh)
Business Segment Products 2025.1Q 2024 2023
Steel Hot-rolled Product (HR) 862 910 967
Cold-rolled Product (CR) 1,101 1,144 1,157
Infrastructure<br><br><br>(Trading) Electric Power 149 160 205
Energy Materials Refractory 1,089 1,001 991
Lime 162 142 147
* Construction and Logistics and etc. segments of Infrastructure are omitted due to its difficulties of measuring<br>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

In the 1^st^ quarter of 2025, amid prolonged sluggishness in demand industries caused by global tightening trends and ongoing geopolitical risks combined with tariff policy, global prices have shown a downward trend.

[Infrastructure(Trading Segment)]

(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.

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(2) Factors of Price Changes

a) Price of refractories : Affected by business condition of the front industry and raw material cost.

b) Quicklime price : Mainly influenced by utility unit price and raw materials cost.

C) Raw materials for energy materials : Subject to price fluctuations depending on the international supply of 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 Portion (%)
Steel Raw Materials Materials for<br><br><br>Iron-making Iron Ore for Blast<br><br><br>Furnaces 37,070 61.4 %
Sub-materials Sub-materials for Iron-making, Steelmaking 13,592 22.5 %
Stainless Steel Materials Key Materials for<br><br><br>STS Production 9,686 16.1 %
Infra-<br><br><br>structure Trading Raw Materials LNG Material for Power Generation 3,571 100.0 %
Construction Raw Materials Ready-mixed Concrete Construction of Structure 613 21.0 %
Steel<br><br><br>Reinforcement Strengthening Concrete 442 15.2 %
Cable Electricity Transfer 31 1.1 %
Steel Pile Foundation of Structure — —
Others Construction of Pipe and Structure etc. 1,830 62.7 %
Logistics<br> <br>and etc. Raw Materials Others For other use 1,706 100.0 %
Energy Materials Raw Materials NCM and etc. Production of cathode materials 3,098 82.5 %
Graphite and etc. Production of<br><br><br>anode materials 130 3.5 %
Limestone and etc. Production of Lime 287 7.6 %
Others Production of refractory 240 6.4 %
* 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 2025.1Q 2024 2023
Steel Iron Ore(per ton) 139 135 145
Coal(per ton) 268 329 387
Scrap Iron(per ton) 496 505 526
Nickel(per ton) 22,597 22,934 28,043
Infrastructure Trading LNG<br><br><br>(per ton) 1,089 1,058 1,428
Construction Ready-mixed Concrete<br><br><br>(per m^3^) 88 90 85
Steel Pile<br><br><br>(per m) 181 181 165
Steel Reinforcement<br><br><br>(per kg) 0.9 0.9 0.9
Cable<br><br><br>(per m) 1.0 1.0 0.9
Secondary Battery Materials Refractory<br><br><br>(per ton) 667 443 334
Limestone<br><br><br>(per ton) 25 25 24
* Infrastructure (Logistics and etc. segment) and Others segment are omitted due to its difficulties of measuring<br>raw materials fluctuations. In the case of the EV battery material business, detailed descriptions are not included due to risk of information leakage.
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[Steel]

(1) Iron Ore : u Iron ore prices rose 2% quarter-on-quarter to U$96/ton in the first quarter of 2025, due to the China’s stockpiling activities and cyclone occurrence in Western A stralia.

(In US Dollars/ Tons)
’25.1Q ’24.4Q ’24.3Q ’24.2Q ’24.1Q ’23.4Q ’23.3Q ‘23.2Q ‘23.1Q
96 94 89 101 113 117 106 102 118

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(2) Coal : The coal prices fell 9% quarter-on-quarter to U$185/ton in the first quarter of 2025 as China’s imposition of retaliatory tariffs on the United States led to an increased influx of American coal into the market, and demand remained low due to the prolonged global steel market downturn.

(In US Dollars/ Tons)
’25.1Q ’24.4Q ’24.3Q ’24.2Q ’24.1Q ’23.4Q ’23.3Q ‘23.2Q ‘23.1Q
185 203 211 242 308 334 264 243 344

(3) Scrap : Iron scrap prices dropped by 2% quarter-on-quarter to U$342/ton in the first quarter of 2025 as demand remained low due to the prolonged global steel market downturn.

(In US Dollars/ Tons)
’25.1Q ’24.4Q ’24.3Q ’24.2Q ’24.1Q ’23.4Q ’23.3Q ‘23.2Q ‘23.1Q
342 350 364 376 392 385 385 403 438

(4) Nickel : Nickel prices fell 3% quarter-on-quarter to U$15,571/ton in the first quarter of 2025 due to the global economic slowdown and weakened investment sentiment caused by the contraction in demand for nickel used in secondary batteries following new term of President Trump and outbreak of Global Tariff War between the US and China.

(In US Dollars/lb, US Dollars/Tons)
’25.1Q ’24.4Q ’24.3Q ’24.2Q ’24.1Q ’23.4Q ’23.3Q ‘23.2Q ‘23.1Q
7.06 7.27 7.37 8.35 7.53 7.83 9.23 10.12 11.79
15,571 16,038 16,259 18,415 16,589 17,247 20,344 22,308 25,983
* LME : London Metal Exchange
--- ---

[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 Increase the negotiation price in the metropolitan area (effective from March 1, 2025)
Steel Pile SPIRAL,609.6,12T,STP275,KS F 4602,STEEL PILE —
Steel Reinforcement SD400 10mm Decrease the price of raw materials (scrap)
Cable TFR-3, 0.6/1KV, 2.5SQ, 2C Increase the price of raw materials (electric copper)

19

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[Energy Materials]

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

5. Production and Facilities

A. Production Capacity

[Steel]

∎ POSCO

(Thousands of Tons)
Business Area Products 2025.1Q 2024 2023
Steel Crude Steel 9,816 40,461 40,680

∎ POSCO STEELEON

(Thousands of Tons)
Business Area Products Plant 2025.1Q 2024 2023
Steel Galvanized / Color-<br><br><br>coated Steel Pohang 247 960 960
Myanmar 17 70 70
Total 264 1,030 1,030

∎ POSCO M-TECH

(Tons)
Business Area Products 2025.1Q 2024 2023
Raw materials for steel production Deoxidizer 10,620 39,058 39,294

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[Infrastructure(Trading)]

∎ POSCO INTERNATIONAL

(MW)
Business Area Products 2025.1Q 2024 2023
Power Generation Electric Power Incheon 3,412 3,412 3,412

[Energy Materials]

∎ POSCO FUTURE M

(Tons)
Business Area Products Place of Business 2025.1Q 2024 2023
Refractory Brick and etc. Pohang 28,741 116,560 116,560
LIME Quicklime Pohang 270,000 1,095,000 1,095,000
Gwangyang 270,000 1,095,000 1,095,000
Total 568,741 2,306,560 2,306,560
* In the case of the secondary battery material business, detailed notation was omitted in consideration of<br>technology and information leakage concerns.
--- ---

B. Production Result and Capacity Utilization Rate

[Steel]

(1) Production (Thousands of Tons)
Products 2025.1Q 2024 2023
Crude Steel 9,645 39,281 39,941
Products Hot-Rolled Steel 2,676 10,172 10,660
Plate 1,541 6,636 6,602
Wire Rod 427 2,131 2,325
Pickled-Oiled Steel 699 2,713 2,780
Cold-Rolled Products 1,843 7,498 7,133
Coated Steel 1,745 7,543 7,299
Electrical Steel 257 998 828
Stainless Steel 749 3,333 3,104
Others 381 1,698 1,795
Total 10,318 42,720 42,528
* 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.
--- ---

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(2) Capacity Utilization Rate (Thousands of Tons, %)
Company Capacity Production Utilization Rate
Crude Steel<br><br><br>Production POSCO 9,816 8,651 88.1 %
PT. Krakatau POSCO 709 695 98.1 %
POSCO (Zhangjiagang) Stainless<br><br><br>Steel Co., Ltd. 275 172 62.5 %
POSCO Yamato Vina Steel Joint Stock Company 138 127 92.0 %
Total 10,938 9,645 88.2 %

[Infrastructure (Trading)]

Since it is difficult to measure production result and operating rates of Infrastructure (Construction), and 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 2025.1Q 2024 2023
Power Generation Electric Power<br> <br>(Incheon Power Plant) 2,490 12,193 11,213

(2) Capacity Utilization Rate

(Hour, %)
Business Area Production Base 2025.1Q<br>Capacity 2025.1Q<br>Production Utilization Rate
Power Generation Incheon Power Plant 2,160 1,144 52.96 %

[Energy Materials]

∎ POSCO FUTURE M

(1) Production Result

(Tons)
Business Area Products Place of Business 2025.1Q 2024 2023
Refractory Brick and etc. Pohang 21,504 80,191 77,437
LIME Quicklime Pohang 274,559 1,055,911 1,110,594
Gwangyang 303,264 1,216,072 1,243,040
Total 599,327 2,352,174 2,431,071

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* Coke oven gas(COG) facility is a simple consignment operation for POSCO facilities, so production performance<br>is Omitted.
* In the case of the secondary battery material business, detailed descriptions are not included due to risk of<br>information leakage.
--- ---

(2) Capacity Utilization Rate

(Tons, %)
Business Area Capacity Production Utilization Rate
Refractory Factory 28,741 21,504 75 %
Quicklime Factory (Pohang) 270,000 274,559 102 %
Quicklime Factory (Gwangyang) 270,000 303,264 112 %
Total 568,741 599,327 —
* Coke oven gas(COG) facility is a simple consignment operation for POSCO facilities, so production performance<br>is Omitted
--- ---
* In the case of the secondary battery material business, detailed descriptions are not included due to risk of<br>information leakage.
--- ---

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 1,957,023 18,018 — — 1,975,041
Infrastructure Trading 514,978 — -720 — 514,258
Construction 348,243 104 — — 348,347
Logistics and etc. 111,653 227 — — 111,640
Energy Materials 217,586 31,903 — — 249,489
Others 186,392 590 — — 186,982

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[Buildings] (In millions of KRW)
Business Segment Beginning BookBalance Increased Decreased Depreciation Ending BookBalance
Steel 3,002,051 470,759 -27,962 -68,999 3,375,849
Infrastructure Trading 574,270 603 -5,180 -3,122 566,571
Construction 85,969 4,590 — -5,598 84,961
Logistics and etc. 104,483 8,076 — -5,700 106,859
Energy Materials 1,397,132 40,379 -49,130 -14,028 1,374,353
Others 117,064 2,313 -12,952 -441 105,984
[Structures] (In millions of KRW)
--- --- --- --- --- --- --- --- --- --- --- ---
Business Segment Beginning BookBalance Increased Decreased Depreciation Ending BookBalance
Steel 2,796,242 89,516 -5,243 -68,625 2,811,890
Infrastructure Trading 601,835 35,383 -1 -7,587 629,630
Construction 47,043 — -27 -1,753 45,263
Logistics and etc. 88,603 6,561 -4,772 -3,963 86,429
Energy Materials 312,117 6,445 -7,549 -3,190 307,826
Others 14,684 204 -432 -61 14,395
[Machinery] (In millions of KRW)
--- --- --- --- --- --- --- --- --- --- --- ---
Business Segment Beginning BookBalance Increased Decreased Depreciation Ending BookBalance
Steel 14,544,015 807,069 -63,239 -556,637 14,731,208
Infrastructure Trading 1,163,227 2,151 -7,891 -19,428 1,138,059
Construction 6,921 83 -40 -425 6,539
Logistics and etc. 239,947 29,847 -1,417 -37,440 230,937
Energy Materials 2,336,689 174,273 -170,726 -59,892 2,280,344
Others 20,878 180 -16,931 -1,066 3,061
[Vehicles] (In millions of KRW)
--- --- --- --- --- --- --- --- --- --- --- ---
Business Segment Beginning BookBalance Increased Decreased Depreciation Ending BookBalance
Steel 56,789 8,126 -3,313 -7,578 54,024
Infrastructure Trading 12,534 1,919 -1,304 -682 12,467
Construction 5,655 315 -297 -489 5,184
Logistics and etc. 989 1,411 -1,388 -62 950
Energy Materials 13,963 1,139 -1,175 -1,067 12,860
Others 45 — -2 -3 40

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[Tools and Fixtures] (In millions of KRW)
Business Segment Beginning BookBalance Increased Decreased Depreciation Ending BookBalance
Steel 67,073 5,038 -1,642 -6,836 63,633
Infrastructure Trading 22,310 2,787 -1,190 -2,837 21,070
Construction 1,432 601 -448 -156 1,429
Logistics and etc. 6,328 89 -34 -536 5,847
Energy Materials 37,326 10,540 -10,303 -3,175 34,388
Others 32 — -1,414 — -1,382
[Equipment] (In millions of KRW)
--- --- --- --- --- --- --- --- --- --- --- ---
Business Segment Beginning BookBalance Increased Decreased Depreciation Ending BookBalance
Steel 100,089 44,643 -4,665 -9,790 130,277
Infrastructure Trading 24,966 3,580 -915 -2,696 24,935
Construction 8,457 1,384 -1,237 -881 7,723
Logistics and etc. 12,137 6,397 -978 -1,915 15,641
Energy Materials 40,920 4,020 -1,531 -2,134 41,275
Others 13,464 27 -772 -331 12,388
[Financial Lease Assets] (In millions of KRW)
--- --- --- --- --- --- --- --- --- --- --- ---
Business Segment Beginning BookBalance Increased Decreased Depreciation Ending BookBalance
Steel 184,109 24,443 -20,043 -17,600 170,909
Infrastructure Trading 375,702 38,840 -22,603 -13,165 378,774
Construction 29,826 82,584 -47,774 -7,945 56,691
Logistics and etc. 258,550 3,939 -655 -2,018 259,816
Energy Materials 102,998 6,594 -127 -5,568 103,897
Others 19,448 852 -5,588 -819 13,893
[Biological Assets] (In millions of KRW)
--- --- --- --- --- --- --- --- --- --- --- ---
Business Segment Beginning BookBalance Increased Decreased Depreciation Ending BookBalance
Steel — — — — —
Infrastructure Trading 139,451 — -3,887 -2,477 133,087
Construction — — — — —
Logistics and etc. — — — — —
Energy Materials — — — — —
Others — — — — —

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[Assets under Construction] (In millions of KRW)
Business Segment Beginning BookBalance Increased Decreased Depreciation Ending<br>Book<br>Balance
Steel 2,250,595 600,499 -1,444,922 -1 1,406,171
Infrastructure Trading 573,964 117,201 -32,749 — 658,416
Construction 11,373 303 -1,941 — 9,735
Logistics and etc. 363,080 79,783 -1 — 442,862
Energy Materials 4,031,453 625,855 -188,516 — 4,468,792
Others 292,725 1,195 — — 293,920

(2) New Facility Establishment, Purchase, Etc.

a) Investments under Construction

• The total duration and investment amount of individual projects with a total investment exceeding<br>100 billion KRW in each project were aggregated.
[Steel] (In hundred millions of KRW)
--- --- --- --- --- --- --- --- ---
Date Project TotalInvestment Invested<br>Amount Amount to beInvested
Expansion/<br>Establishment October 2020<br>~ September 2029 The sealing of raw material yards for both Pohang and Gwangyang Works 50,255 21,490 28,765
[Infrastructure] (In hundred millions of KRW)
--- --- --- --- --- --- --- --- ---
Date Project TotalInvestment Invested<br>Amount Amount<br>to beInvested
Expansion/<br>Establishment June 2023<br>~ May 2027 Gwangyang LNG terminal, etc. 8,733 4,069 4,664

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[Energy Materials] (In hundred millions of KRW)
Date Project TotalInvestment Invested<br>Amount Amount to be<br>Invested
Expansion/<br>Establishment March 2020 ~<br>May 2027 Cathode/Anode material factory,<br>lithium commercialization plant, etc. 94,032 68,119 25,913

6. Product Sales

[Steel]

(In hundred millions of KRW)
Items 2025.1Q 2024 2023
Domestic Hot-Rolled Products 12,916 52,703 58,730
Cold-Rolled Products 11,446 51,263 52,754
Stainless Steel 7,197 29,493 30,313
Others 21,745 95,180 106,558
Overseas Hot-Rolled Products 18,365 72,818 75,979
Cold-Rolled Products 37,150 152,461 142,160
Stainless Steel 18,407 75,395 76,521
Others 22,400 92,696 92,373
Total Gross Sum 149,626 622,009 635,387
Internal Transaction -55,774 -230,968 -231,454
Total 93,852 391,041 403,933

[Infrastructure]

(In hundred millions of KRW)
Business<br><br><br>Area Items 2025.1Q 2024 2023
Trading Domestic<br> <br>Trading Merchandise 11,176 45,670 54,327
Product 6,899 32,545 39,121
Others 243 1,412 1,366
Overseas<br> <br>Trading Merchandise 30,417 118,643 121,136
Product 368 3,881 3,375
Others 15 144 48
Trades among the 3 countries 56,489 226,736 210,065
Construction Domestic<br> <br>Construction Building 10,643 49,469 41,251
Plant 3,373 21,275 23,371
Civil Engineering 1,791 10,210 11,658
Others 440 2,724 2,096
Overseas 1,565 8,719 14,975
Own Construction 1,070 5,899 9,325
Logistics and etc. Others 8,772 41,393 42,014
Total Gross Sum 133,261 568,720 571,572
Deduction of Internal Transaction -59,039 -261,735 -243,520
Total 74,222 306,985 328,052

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[Energy Materials]

(In hundred millions of KRW)
Items 2025.1Q 2024 2023
Gross Sum 9,298 38,299 48,219
Deduction of Internal Transaction -3,086 -10,174 -10,059
Total 6,212 28,125 38,160

[Others]

(In hundred millions of KRW)
Items 2025.1Q 2024 2023
Gross Sum 6,865 21,112 15,622
Deduction of Internal Transaction -6,783 -20,381 -14,495
Total 82 730 1,127
* Domestic and overseas categorized by the sales area.
--- ---
* Sales of POSCO International’s foreign branches are included in ‘trade among the 3 countries’<br>under Infrastructure (Trading) 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. As of the 1^st^ quarter of 2025, POSCO Holdings has no derivative contracts.

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8. Significant Contracts

[Price Movement Trend of Major Raw Materials]

(1) Transfer contract of steel business related shares or investment certificates of POSCO HOLDINGS (2024)<br>
a) Contract Counterparty: POSCO
--- ---
b) Transaction amount: KRW 0.6588 trillion
--- ---
c) 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.
--- ---
d) Contract period: December 2024
--- ---
e) Payment method: Cash payment
--- ---
f) Company subject to transfer: POSCO Maharashtra Steel Private Limited, POSCO India Processing Center Private<br>Limited, POSCO India Pune Processing Center Private Limited, POSCO ASSAN TST STEEL INDUSTRY Inc
--- ---
(2) Transfer contract of steel business related shares or investment certificates of POSCO HOLDINGS (2023)<br>
--- ---
a) Contract Counterparty: POSCO
--- ---
b) Transaction amount: KRW 1.1320 trillion
--- ---
c) 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.
--- ---
d) Contract period: August 18, 2023 ~ September 25, 2023
--- ---
e) Payment method: Cash payment
--- ---
f) 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.
--- ---
(3) Transfer contract of steel business related shares or investment certificates of POSCO HOLDINGS (2022)<br>
--- ---
a) Contract Counterparty: POSCO
--- ---
b) Transaction amount: KRW 1.1377 trillion
--- ---
c) 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.
--- ---
d) Contract period: November 18, 2022 ~ March 31, 2023
--- ---
e) Payment method: Cash payment
--- ---
f) 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.
--- ---

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(4) Sales contract of CSP shares
a) Contract Counterparty: ArcelorMittal Brazil
--- ---
b) Purpose: Improving asset efficiency through the sales of non-core<br>assets with no management right
--- ---
c) Contract period: July 28, 2022 (transaction completed on March 10, 2023)
--- ---
d) Transaction amount and payment method: ArcelorMittal Brazil acquired shares in shareholder companies free of<br>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
--- ---

[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><br> <br>•  KOGAS(Korea Gas<br>Corporation): 8.5%<br> <br><br><br><br>•  Investment size of USD 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><br> <br>•  Detailed information and<br>future timeline on this resource development investment is subject to change.<br> <br><br><br><br>ø  POSCO International disclosure date :<br>September 22, 2020<br> <br>(Decision on natural resources investment)

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Investment on the 4^th^ stage development of<br><br><br>A-1 / A-3 block<br><br><br>in Myanmar gas field June<br><br><br>2024 1)  Investment amount: KRW 926,302,200,195<br><br><br><br> <br>2)  Development period: July 1,<br>2024 ~ June 30, 2027<br> <br><br><br><br>3)  Future Plan : POSCO International plans to drill three additional production wells in two deep-sea fields and one additional production well in a shallow-sea field. Furthermore, it will install processing facilities on subsea pipelines and existing platform.<br><br><br><br> <br>4)  Other Information<br><br><br><br> <br>•  Location: North-west<br>offshore, Myanmar<br> <br><br> <br>•  This<br>investment is the 4^th^ stage of development of the existing Myanmar gas field development. The purpose of investment is to drill three additional production wells in two deep-sea fields and one additional production well in a shallow-sea field and to install processing facilities on subsea pipelines and existing platform.<br><br><br><br> <br>•  With its commencement of<br>development in July 2024, the gas production expected to begin in the third quarter of 2027.<br> <br><br><br><br>•  Participation rate of each company in gas production and offshore pipeline transportation<br>business<br> <br><br> <br>•  POSCO<br>International Corporation : 51.0%<br> <br><br><br><br>•  KOGAS(Korea Gas Corporation): 8.5%<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><br> <br>•  Investment size of<br>USD 667 million, applying the exchange rate of June 25, 2024<br> <br><br><br><br>(1USD=1,387.50 KRW).<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 : June 27,<br>2024<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)

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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>5)  Merger ratio : POSCO International : POSCO Energy = 1 : 1.1626920<br><br><br><br> <br>6)  Record date of merger :<br>January 1, 2023<br> <br><br><br><br>7)  Scheduled date of merger registration : January 2, 2023<br><br><br><br><br><br>ø  POSCO International disclosure date :<br>January 2, 2023

9. Research and Development

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

Business<br><br><br>Segment Company Organization
Steel POSCO Steel 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 Product Technology Development Office
POSCO M-TECH Automation R&D Center
Pohang Steel Business Office
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 Design Business Office
POSCO DX Technology Laboratories
Energy Materials POSCO Future M Technology Laboratories
Others POSCO HOLDINGS INC. Group Technology Strategy Office,<br><br><br>New Experience of Technology Hub
AI & Robotics Convergence R&D Laboratories,<br><br><br>New Experience of Technology Hub
Energy Materials R&D Laboratories<br><br><br>New Experience of Technology Hub
Australian Critical Minerals 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 2025.1Q (In millions of KRW)
Category Business Segment
Steel Infrastructure EnergyMaterials Others Total
Trading Construction Logistics<br>and etc.
Selling and Administrative Cost 3,682 532 1,749 2,439 9,062 30,258 47,722
Manufacturing Cost 76,921 49 21 — 18 — 77,009
R&D Cost (Intangible Assets) 6,660 — 153 78 5,564 22 12,477
Total* 87,263 581 1,923 2,517 14,644 30,280 137,208
Government Subsidy — — 852 — — — 852
R&D/Sales Ratio (%) 0.93 % 0.01 % 0.13 % 2.62 % 2.36 % 372.77 % 0.79 %
* Total includes government subsidy.
--- ---

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III. Financial Statements

1. Consolidated Financial Statements

A. Summary

(In millions of KRW)
Account 2025.1Q 2024 2023
As of March 31, 2025 As of December 31, 2024 As of December 31, 2023
[Total current assets] 44,291,166 44,029,923 46,212,299
Cash and cash equivalents 6,772,543 6,767,898 6,670,879
Other receivables, net 2,193,416 2,261,323 1,947,529
Other short-term financial assets 9,137,846 8,499,389 11,403,166
Trade accounts and notes receivable, net 11,138,906 10,821,619 11,015,303
Inventories 13,319,215 14,143,500 13,825,514
Other current assets 1,729,240 1,536,194 1,349,908
[Total non-current assets] 57,832,707 59,374,276 54,733,095
Other receivables, net 1,464,890 1,306,329 1,452,445
Other long-term financial assets 2,462,772 2,571,651 2,708,325
Investments in associates and joint ventures 4,732,245 4,738,793 5,020,264
Property, plant and equipment, net 40,125,627 39,846,828 35,206,248
Intangible assets, net 4,845,367 4,774,824 4,714,784
Other non-current assets 4,201,806 6,135,851 5,631,029
Total assets 102,123,873 103,404,199 100,945,394
[Total current liabilities] 23,458,089 22,779,719 21,861,518
[Total non-current liabilities] 16,992,060 19,174,112 19,419,979
Total liabilities 40,450,149 41,953,831 41,281,497
[Equity attributable to owners of the controlling company] 55,576,789 55,394,231 54,180,849
Share capital 482,403 482,403 482,403
Capital surplus 1,650,870 1,648,894 1,663,334
Hybrid bonds — — —
Retained earnings 53,398,868 53,658,368 53,857,514
Other equity attributable to owners of the controlling company 44,648 -395,434 -1,822,402
[Non-controlling Interests] 6,096,935 6,056,137 5,483,048
Total equity 61,673,724 61,450,368 59,663,897

34

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From January 1, 2025<br>to March 31, 2025 From January 1, 2024<br>to December 31, 2024 From January 1, 2023<br>to December 31, 2023
Revenue 17,436,776 72,688,143 77,127,197
Operating profit 568,441 2,173,573 3,531,423
Profit 344,234 947,580 1,845,850
[Profit attributable to owners of the controlling company] 302,295 1,094,917 1,698,092
[Profit attributable to non-controlling<br>interests] 41,939 -147,337 147,758
Total comprehensive Income 415,353 2,110,358 2,330,891
[Total comprehensive income attributable to owners of the controlling company] 369,836 2,008,919 2,131,737
[Total comprehensive income attributable to<br>non-controlling interests] 45,517 101,439 199,154
Earnings per share(KRW) 3,998 14,451 22,382
Number of Consolidated Companies 194 194 192

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.

35

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2. Separate Financial Statements

A. Summary

(In millions of KRW)
Account 2025.1Q 2024 2023
As of March 31,<br>2025 As of December 31,<br>2024 As of December 31,<br>2023
[Total current assets] 4,505,430 3,793,469 4,657,899
Cash and Cash equivalents 418,565 409,387 376,914
Trade accounts and notes receivable, net 774,609 178,822 238,332
Other receivables, net 124,008 21,388 68,821
Other short-term financial assets 2,666,277 2,686,420 3,940,743
Inventories 492,418 467,796 —
Other current assets 29,556 29,655 33,089
[Total non-current assets] 46,873,942 46,840,329 46,988,299
Other receivables, net 17,868 14,894 6,955
Other long-term financial assets 462,396 421,822 1,131,074
Investments in Subsidiaries, associates, and joint ventures 45,624,363 45,631,965 45,321,370
Property, plant and equipment, net 414,948 415,993 197,787
Intangible assets, net 21,285 21,461 19,341
Other non-current assets 333,082 334,194 311,772
Total assets 51,379,372 50,633,797 51,646,198
[Total current liabilities] 431,203 162,831 1,819,670
[Total non-current Liabilities] 2,311,946 2,281,936 2,326,663
Total liabilities 2,743,149 2,444,768 4,146,333
[Share capital] 482,403 482,403 482,403
[Capital surplus] 1,367,990 1,367,990 1,370,557
[Hybrid bonds] — — —
[Retained earnings] 47,977,315 47,952,144 47,505,885
[Other equity] -1,191,486 -1,613,507 -1,858,980
Total equity 48,189,030 47,499,865

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From January 1, 2025<br>to March 31, 2025 From January 1, 2023<br>to December 31, 2023 From January 1, 2022<br>to December 31, 2022
Revenue 664,697 1,997,128 1,454,079
Operating profit 574,381 1,596,420 1,106,629
Profit 588,758 1,621,282 799,578
Earnings per share(KRW) 7,786 21,398 10,539

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”). ****

37

Table of Contents

POSCO HOLDINGS INC.

and its subsidiaries

Interim condensed consolidated financial statements

for each of the three-month periods ended March 31, 2025 and 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<br>position 1
Interim condensed consolidated statements of comprehensive<br>income 2
Interim condensed consolidated statements of changes in<br>equity 4
Interim condensed consolidated statements of cash flows 6
Notes to the interim condensed consolidated financial<br>statements 8
Table of Contents
Ernst & Young Han Young<br><br><br>2-4F, 6-8F, 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, 2025, and the related interim condensed consolidated statements of comprehensive income, interim condensed consolidated statements of changes in equity and interim condensed consolidated statements of cash flows for each of the three-month periods ended March 31, 2025 and 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 Interim Financial Reporting, 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 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 Interim Financial Reporting.

Table of Contents

Other matters

We have audited the consolidated statement of financial position of the Group as of December 31, 2024, 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) in accordance with KSA, and our report dated March 12, 2025 expressed an unqualified opinion thereon. The accompanying consolidated statement of financial position as of December 31, 2024, presented for comparative purposes, is not different, in all material respects, from the above audited consolidated statement of financial position.

May 15, 2025

This review report is effective as of May 15, 2025, 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 consolidated financial statements and may result in modification to this review report.

Table of Contents

POSCO HOLDINGS INC. and its subsidiaries

Interim condensed consolidated financial statements

for each of the three-month periods ended March 31, 2025 and 2024

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

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

Jootae Lee

President and Representative Director

POSCO HODINGS INC. ****

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POSCO HOLDINGS INC. and its subsidiaries

Interim condensed consolidated statements of financial position

as of March 31, 2025 (Unaudited) and December 31, 2024

(in millions of Won) Notes March 31, 2025(unaudited) December 31, 2024
Assets
Cash and cash equivalents 21 ~~W~~ 6,772,543 6,767,898
Trade accounts and notes receivable, net 4,15,21,25,26,33 11,138,906 10,821,620
Other receivables, net 5,21,33 2,193,416 2,261,323
Other short-term financial assets 6,21 9,137,846 8,499,389
Inventories 7 13,319,215 14,143,500
Current income tax assets 135,363 140,494
Assets held for sale 8 625,614 608,758
Other current assets 14 968,263 786,943
Total current assets 44,291,166 44,029,925
Long-term trade accounts and notes receivable, net 4,21 34,853 27,779
Other receivables, net 5,21,33 1,464,890 1,306,329
Other long-term financial assets 6,21 2,462,772 2,571,651
Investments in associates and joint ventures 9 4,732,245 4,738,793
Investment property, net 11 1,941,003 1,955,896
Property, plant and equipment, net 12 40,125,627 39,846,828
Intangible assets, net 13 4,845,367 4,774,824
Defined benefit assets, net 19 360,802 409,147
Deferred tax assets 31 1,754,063 3,609,344
Other non-current assets 14 111,085 133,684
Total non-current assets 57,832,707 59,374,275
Total assets ~~W~~ 102,123,873 103,404,200

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

1

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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, 2025 and 2024 (Unaudited)

(in millions of Won) Notes March 31, 2025(unaudited) December 31, 2024
Liabilities
Trade accounts and notes payable 21,33 ~~W~~ 5,688,482 6,159,127
Short-term borrowings and current portion of long-term borrowings 15,21 12,552,159 11,115,747
Other payables 16,21,33 3,388,965 3,463,871
Other short-term financial liabilities 17,21 47,757 120,875
Current income tax liabilities 352,496 350,570
Liabilities directly associated with the assets held for sale 8 32,905 —
Provisions 18 368,146 396,030
Other current liabilities 20,25,26 1,027,179 1,173,499
Total current liabilities 23,458,089 22,779,719
Long-term trade accounts and notes payable 2,049 2,049
Long-term borrowings, excluding current portion 15,21 14,639,109 14,881,620
Other payables 16,21 830,716 809,012
Other long-term financial liabilities 17,21 75,544 72,920
Defined benefit liabilities, net 19 60,159 43,143
Deferred tax liabilities 31 691,005 2,685,549
Long-term provisions 18 596,498 580,559
Other non-current liabilities 20 96,980 99,260
Total non-current liabilities 16,992,060 19,174,112
Total liabilities 40,450,149 41,953,831
Equity
Share capital 22 482,403 482,403
Capital surplus 22 1,650,870 1,648,894
Other components of equity 23 1,220,965 1,155,429
Treasury shares 24 (1,176,317 ) (1,550,862 )
Retained earnings 53,398,868 53,658,367
Equity attributable to owners of the controlling company 55,576,789 55,394,231
Non-controlling interests 6,096,935 6,056,137
Total equity 61,673,724 61,450,368
Total liabilities and equity ~~W~~ 102,123,873 103,404,199

(continued)

2

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POSCO HOLDINGS INC. and its subsidiaries

Interim condensed consolidated statements of comprehensive income, Continued

for each of the three-month periods ended March 31, 2025 and 2024 (Unaudited)

For the three-month period <br>ended March 31<br>(Unaudited)
(in millions of Won, except per share information) Notes 2025 2024
Revenue 25,26,33 ~~W~~ 17,436,776 18,051,950
Cost of sales 26,30 (16,100,898 ) (16,723,117 )
Gross profit 1,335,878 1,328,833
Selling and administrative expenses 21,27,30
Other administrative expenses (715,583 ) (685,448 )
Selling expenses (51,854 ) (60,363 )
Operating profit 568,441 583,022
Share of profit of equity-accounted investees, net 9 65,284 77,818
Finance income and costs 21,28
Finance income 804,679 1,434,301
Finance costs (948,161 ) (1,258,182 )
Other non-operating income and expenses 21,29,30
Other non-operating income 132,865 57,429
Other non-operating expenses (113,150 ) (161,877 )
Profit before income tax 509,958 732,511
Income tax expense 31 (165,723 ) (124,696 )
Profit for the period, net of tax 344,235 607,815
Other comprehensive income (loss)
Items that will not be reclassified subsequently to profit or loss:
Capital adjustment arising from investments in equity-accounted investees (5,627 ) 1,035
Foreign currency translation differences 7,007 58,654
Remeasurements of defined benefit plans 19 (664 ) 5,518
Net changes in fair value of equity investments at fair value through other comprehensive<br>income 21 39,274 7,648
Items that are or may be reclassified subsequently to profit or loss:
Capital adjustment arising from investments in equity-accounted investees 1,295 77,149
Foreign currency translation differences 29,960 204,605
Gains or losses on valuation of derivatives 21 (126 ) (407 )
Other comprehensive income, net of tax 71,119 354,202
Total comprehensive income ~~W~~ 415,354 962,017
Profit for the period attributable to
Owners of the controlling company ~~W~~ 302,295 540,715
Non-controlling interests 41,940 67,100
Profit for the period, net ~~W~~ 344,235 607,815
Total comprehensive income attributable to :
Owners of the controlling company ~~W~~ 369,836 807,671
Non-controlling interests 45,518 154,346
Total comprehensive income ~~W~~ 415,354 962,017
Earnings per share (in Won) 32
Basic earnings per share (in Won) 3,998 7,126
Diluted earnings per share (in Won) ~~W~~ 3,998 5,719

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

3

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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, 2025 and 2024 (Unaudited)

(in millions of Won) Attributable to owners of the controlling company
Sharecapital Capitalsurplus Othercomponentsof equity Treasuryshares Retainedearnings Subtotal Non-controllinginterests Total
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 for the period — — — — 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 equity-accounted investees, net of 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
Gains or losses 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 the scope of consolidation — — — — — — 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

(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, 2025 and 2024 (Unaudited)

(in millions of Won) Attributable to owners of the controlling company Total
Sharecapital Capitalsurplus Othercomponentsof equity Treasuryshares Retainedearnings Subtotal Non-controllinginterests
Balance as of January 1, 2025 ~~W~~ 482,403 1,648,894 1,155,429 (1,550,862 ) 53,658,367 55,394,231 6,056,137 61,450,368
Comprehensive income:
Profit for the period — — — — 302,295 302,295 41,940 344,235
Other comprehensive income (loss)
Remeasurements of defined benefit plans, net of tax — — — — 1,203 1,203 (1,867 ) (664 )
Capital adjustment arising from investments in equity-accounted investees, net of tax — — (2,167 ) — — (2,167 ) (2,165 ) (4,332 )
Net changes in fair value of equity investments at fair value through other comprehensive income,<br>net of tax — — 37,869 — 803 38,672 602 39,274
Foreign currency translation differences, net of tax — — 29,960 — — 29,960 7,006 36,966
Gains or losses on valuation of derivatives, net of tax — — (126 ) — — (126 ) — (126 )
Total comprehensive income — — 65,536 — 304,301 369,837 45,516 415,353
Transactions with owners of the controlling company, recognized directly inequity:
Year-end dividends — — — — (189,052 ) (189,052 ) (98,005 ) (287,057 )
Changes in ownership interest in subsidiaries — 1,335 — — — 1,335 90,871 92,206
Retirement of treasury shares — — — 374,545 (374,545 ) — — —
Others — 641 — — (203 ) 438 2,416 2,854
Total transactions with owners of the controlling company — 1,976 — 374,545 (563,800 ) (187,279 ) (4,718 ) (191,997 )
Balance as of March 31, 2025 (Unaudited) ~~W~~ 482,403 1,650,870 1,220,965 (1,176,317 ) 53,398,868 55,576,789 6,096,935 61,673,724

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, 2025 and 2024 (Unaudited)

(in millions of Won) Notes March 31, 2025(Unaudited) March 31, 2024(Unaudited)
Cash flows from operating activities
Profit for the period ~~W~~ 344,235 607,815
Adjustments for:
Depreciation 909,721 880,865
Amortization 112,756 122,641
Finance income (483,184 ) (1,065,156 )
Finance costs 519,907 906,792
Income tax expense 165,723 124,696
Impairment loss on property, plant and equipment 47,580 40,631
Gain on disposal of property, plant and equipment (2,163 ) (5,997 )
Loss on disposal of property, plant and equipment 13,274 13,365
Impairment loss on goodwill and other intangible assets 12 11
Gain on disposal of investments in subsidiaries, associates and joint ventures (25,447 ) (18 )
Loss on disposal of investments in subsidiaries, associates and joint ventures 196 20
Share of profit of equity-accounted investees (65,284 ) (77,818 )
Impairment loss on disposal of assets held for sale 4,763 —
Gain on disposal of assets held for sale (52,148 ) —
Loss on disposal of assets held for sale — 31,222
Expenses related to post-employment benefit 65,522 62,248
Impairment loss on trade and other receivables 24,119 26,265
(Reversal of) Loss on valuation of inventories (85,294 ) 164,239
Increase (decrease) to provisions 32,474 (16,364 )
Gain on insurance claim (806 ) —
Others, net (13,834 ) (14,590 )
1,167,887 1,193,052
Changes in operating assets and liabilities 35 (422,567 ) (1,326,171 )
Interest received 111,661 173,249
Interest paid (318,223 ) (348,419 )
Dividends received 73,502 153,228
Income taxes paid (287,716 ) (167,612 )
Net cash provided by operating activities ~~W~~ 668,779 285,142

(continued)

6

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POSCO HOLDINGS INC. and Subsidiaries

Interim condensed consolidated statements of cash flows, consolidated

for each of the three-month periods ended March 31, 2025 and 2024 (Unaudited)

(in millions of Won) Notes March 31, 2025(Unaudited) March 31, 2024(Unaudited)
Cash flows from investing activities
Acquisitions of short-term financial instruments ~~W~~ (4,879,919 ) (4,459,494 )
Proceeds from disposal of short-term financial instruments 4,299,071 4,797,564
Increase in loans (75,171 ) (296,521 )
Collection of loans 82,448 256,327
Acquisitions of securities (290,774 ) (275,226 )
Proceeds from disposal of securities 212,246 435,388
Acquisitions of long-term financial instruments (1,437 ) (3,437 )
Acquisitions of investment in associates and joint ventures (17,669 ) (34,511 )
Proceeds from disposal of investment in associates and joint ventures 6,860 1,800
Acquisitions of investment property — (1,516 )
Proceeds from disposal of investment property 538 27
Acquisitions of property, plant and equipment (1,371,538 ) (1,843,327 )
Proceeds from disposal of property, plant and equipment 6,369 702
Acquisitions of intangible assets (148,599 ) (77,683 )
Proceeds from disposal of intangible assets 1,201 3,918
Proceeds from disposal of assets held for sale 199,886 —
Collection of lease receivables 7,653 7,171
Cash inflow from insurance claim 741 —
Others, net 1,962 (3,188 )
Net cash used in investing activities ~~W~~ (1,966,132 ) (1,492,006 )
Cash flows from financing activities
Origination of borrowings 2,172,812 1,251,862
Repayment of borrowings (1,821,797 ) (1,139,406 )
Repayment of short-term borrowings, net 762,707 1,167,241
Capital contribution from non-controlling interests 110,556 36,505
Payment of cash dividends (3,278 ) (734 )
Repayment of lease liabilities (50,078 ) (40,779 )
Others, net 132,622 71,008
Net cash provided by financing activities ~~W~~ 1,303,544 1,345,697
Effect of exchange rate fluctuation on cash held 5,920 63,891
Net increase in cash and cash equivalents 12,111 202,724
Changes in cash classified as assets held for sale (7,466 ) —
Cash and cash equivalents at beginning of the period 6,767,898 6,670,879
Cash and cash equivalents at end of the period ~~W~~ 6,772,543 6,873,603

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

7

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POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2025 and 2024 (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 57 domestic subsidiaries including POSCO INC. and 136 foreign subsidiaries including POSCO America Corporation, and 115 associates and joint ventures (collectively referred to as the “Group”) in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (“KIFRS”) 1110 is as follows:

The controlling company

POSCO HOLDINGS INC., the controlling 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 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, 2025, the shares of POSCO HOLDINGS INC. are listed on the Korea Exchange, while its ADRs are listed on the New York Stock Exchanges.

2. Basis of Preparation

Statement ofcompliance

The interim condensed consolidated financial statements have been prepared in accordance with KIFRS 1034 Interim FinancialReporting, as prescribed in the Act on External 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, 2024. 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, 2024. These interim condensed consolidated financial statements do not include all of the disclosures required for full annual financial statements.

8

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POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

March 31, 2025 and 2024 (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.

(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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3. Summary of Material Accounting Policy Information

Except for the items described 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, 2024.

Changes in accounting policies

(a) Amendments to KIFRS 1021: Lack of Exchangeability

The amendments to KIFRS 1021 The Effects of Changes in Foreign Exchange Rates specify how an entity should assess whether a currency is exchangeable and how it should determine a spot exchange rate when exchangeability is lacking. The amendments also require the disclosure of information that enables users of its financial statements to understand how the currency that is not exchangeable into the other currency affects, or is expected to affect, the Group’s financial performance, financial position, and cash flows.

The amendments will be effective for annual reporting periods beginning on or after January 1, 2025. When applying the amendment, the Group is not required to restate comparative information The amendments are not expected to have a material impact on the Group’s interim condensed consolidated financial statements.

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4. Trade Accounts and Notes Receivable

Trade accounts and notes receivable as of March 31, 2025 and December 31, 2024 are as follows:

(in millions of Won) March 31, 2025 December 31, 2024
Current
Trade accounts and notes receivable ~~W~~ 9,951,046 9,654,940
Due from customers for contract work 1,533,458 1,488,180
Less: Allowance for doubtful accounts (345,598 ) (321,501 )
~~W~~ 11,138,906 10,821,619
Non-current
Trade accounts and notes receivable ~~W~~ 79,803 72,387
Less: Allowance for doubtful accounts (44,950 ) (44,608 )
~~W~~ 34,853 27,779

The Group discounted trade accounts receivable in accordance with trade accounts receivable factoring agreements with financial institutions for the three-month period ended March 31, 2025 and the year ended December 31, 2024. This transaction is a transaction with recourse rights because the Group is obligated to pay the amount to the bank, etc. if the trade accounts receivable are not recovered at maturity, and the transaction is accounted for as secured borrowing. As of March 31, 2025 and December 31, 2024, the book value of the trade accounts receivable from the transaction is ~~W~~489,921 million and ~~W~~119,076 million, respectively, and the amount is included in the short-term borrowings.

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5. Other Receivables

Other receivables as of March 31, 2025 and December 31, 2024 are as follows:

(in millions of Won) March 31, 2025 December 31, 2024
Current
Short-term loans ~~W~~ 358,323 375,244
Other accounts receivable 1,601,957 1,671,039
Accrued income(*1) 320,847 293,985
Deposits 57,460 80,007
Others 38,079 28,480
Lease receivables 15,516 18,224
Less: Allowance for doubtful accounts (198,766 ) (205,656 )
~~W~~ 2,193,416 2,261,323
Non-current
Long-term loans(*1) ~~W~~ 1,269,774 1,247,255
Other accounts receivable 195,587 192,736
Accrued income 199,877 189,565
Deposits 272,001 142,698
Lease receivables 73,933 76,680
Less: Allowance for doubtful accounts (546,282 ) (542,605 )
~~W~~ 1,464,890 1,306,329
(*1) The Group recognized an allowance for doubtful accounts of ~~W~~292,500 million for all of<br>the other receivables from FQM Australia Holdings Pty Ltd., an associate, due to low possibility of collecting these receivables.
--- ---

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6. Other Financial Assets

Other financial assets as of March 31, 2025 and December 31, 2024 are as follows:

(in millions of Won) March 31, 2025 December 31, 2024
Current
Derivatives assets ~~W~~ 413,551 465,178
Debt securities 492,365 400,771
Deposit instruments(*1) 7,475,125 6,420,797
Short-term financial instruments(*1) 756,805 1,212,643
~~W~~ 9,137,846 8,499,389
Non-current
Derivatives assets ~~W~~ 366,943 497,698
Equity securities(*2) 1,186,741 1,171,544
Debt securities 119,396 115,601
Other securities(*2) 760,731 762,177
Deposit instruments(*1) 28,961 24,631
~~W~~ 2,462,772 2,571,651
(*1) As of March 31, 2025 and December 31, 2024, financial instruments amounting to<br>~~W~~96,287 million and ~~W~~98,116 million, respectively, are restricted in use for financial arrangements, pledge and others.
--- ---
(*2) As of March 31, 2025 and December 31, 2024, ~~W~~183,190 million and<br>~~W~~182,862 million of equity and other securities, respectively, have been provided as collateral for borrowings, construction projects and others.
--- ---

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7. Inventories

(a) Inventories as of March 31, 2025 and December 31, 2024 are as follows:

(in millions of Won) March 31, 2025 December 31, 2024
Finished goods ~~W~~ 2,494,077 2,741,236
M erchandise 1,101,267 1,166,464
Semi-finished goods 2,634,597 2,659,707
Raw materials 3,445,106 3,764,453
Fuel and materials 1,057,003 1,038,854
Construction inventories 185,874 200,825
M aterials-in-transit 2,640,828 2,889,334
Others 111,713 118,391
13,670,465 14,579,264
Less: Allowance for inventories valuation(*1) (351,250 ) (435,764 )
~~W~~ 13,319,215 14,143,500
(*1) For each of the three-month periods ended March 31, 2025 and 2024, allowance for inventories valuation<br>decreased by ~~W~~85,294 million and ~~W~~73,505 million, respectively.
--- ---

(b) The allowances for inventories valuation by item as of March 31, 2025 and December 31, 2024 are as follows:

(in millions of Won) March 31, 2025 December 31, 2024
Finished goods ~~W~~ 168,571 187,902
M erchandise 13,123 14,288
Semi-finished goods 67,647 103,751
Raw materials 86,209 113,413
Fuel and materials 5,893 6,060
Construction inventories 5,980 6,420
Others 3,827 3,930
~~W~~ 351,250 435,764

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March 31, 2025 and 2024 (Unaudited)

8. Assets Held for Sale

Details of assets held for sale as of March 31, 2025 and December 31, 2024 are as follows:

(in millions of Won) March 31, 2025 December 31, 2024
Asset
Cash and cash equivalents 7,466 —
Account reveivables 21,453 —
Inventories 13,070 —
Equity securities(*1) 492,418 604,439
Property, plant and equipment 89,470 4,319
Intangible assets 501 —
Others 1,236 —
~~W~~ 625,614 608,758
Liability
Other receivables ~~W~~ (32,905) —
(*1) Including equity securities of Nippon Steel Corporation amounting to ~~W~~492,418 million,<br>which have been classified as assets held for sale during the year ended December 31, 2024.
--- ---

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March 31, 2025 and 2024 (Unaudited)

9. Investments in Associates and Joint ventures

(a) Details of investments in associates as of March 31, 2025 and December 31, 2024 are as follows:<br>
(in millions of Won) March 31, 2025 December 31,2024
--- --- --- --- --- --- --- --- --- --- ---
Company Numberof shares Ownership(%) Acquisitioncost Book value Book value
[Domestic]
Samcheok Blue Power Co.,Ltd.(*1) 4,507,138 34.00 ~~W~~ 473,093 ~~W~~ 414,347 392,269
Chun-cheon Energy Co., Ltd(*1) 17,308,143 49.10 86,541 14,054 14,054
Pocheon-Hwado Highway Corp.(*1) 7,109,230 27.89 35,546 15,189 14,834
CHUNGJU ENTERPRISE CITY DEVELOPMENT Co.,Ltd 944,920 29.53 4,725 12,332 12,401
PCC Amberstone Private Equity Fund 1(*2) 4,959,964,179 8.80 4,960 5,177 6,181
Others(*1) 121,821 122,688
582,920 562,427
[Foreign]
South-East Asia Gas Pipeline Company Ltd. 135,219,000 25.04 107,269 279,107 279,349
9404-5515 Quebec Inc. 284,463,243 25.85 328,509 411,796 426,276
AMCI (WA) PTY LTD 49 49.00 209,664 67,843 68,478
KOREA LNG LTD. 2,400 20.00 135,205 19,766 25,622
PT. Wampu Electric Power(*1) 8,708,400 20.00 10,054 17,016 17,680
POS-SeAH Steel Wire(Nantong) Co., Ltd. 50 25.00 4,723 10,948 10,713
Others(*1) 239,204 241,841
1,045,680 1,069,959
~~W~~ 1,628,600 1,632,386
(*1) As of March 31, 2025 and December 31, 2024, investments in associates amounting to<br>~~W~~474,936 million and ~~W~~452,614 million, respectively, are provided as collateral in relation to the associates’ borrowings.
--- ---
(*2) As of March 31, 2025, the entity is classified as an associate since the Group has significant influence<br>over the investee although the Group’s percentage of ownership is less than 20%, considering the structure of the entity’s Board of Directors and others.
--- ---

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

(b) Details of investments in joint ventures as of March 31, 2025 and December 31, 2024 are as follows:<br>
(in millions of Won) March 31, 2025 December 31,2024
--- --- --- --- --- --- --- --- --- --- ---
Company Numberof shares Ownership(%) Acquisitioncost Book value Book value
[Domestic]
POSCO MC MATERIALS 11,568,000 60.00 ~~W~~ 115,680 ~~W~~ 151,414 153,839
SNNC(*1) 18,130,000 49.00 90,650 36,813 38,046
Others 13,585 10,042
201,812 201,927
[Foreign]
Roy Hill Holdings Pty Ltd(*1) 13,117,972 12.50 1,528,672 1,394,313 1,397,824
POSCO-NPS Niobium LLC 325,050,000 50.00 364,609 476,789 477,898
KOBRASCO 2,010,719,185 50.00 32,950 131,710 119,820
BX STEEL POSCO Cold Rolled Sheet Co., Ltd. — 25.00 61,961 130,939 126,906
PT NICOLE METAL INDUSTRY(*2) 137,488,235 49.00 540,604 577,038 578,604
HBIS-POSCO Automotive Steel Co., Ltd — 50.00 235,251 168,461 179,841
Others 22,583 23,587
2,901,833 2,904,480
~~W~~ 3,103,645 3,106,407
(*1) As of March 31, 2025 and December 31, 2024, the investments in joint ventures are provided as<br>collateral in relation to the joint ventures’ borrowings.
--- ---
(*2) During the year ended December 31, 2024, the Group acquired W247,824 million of additional investment<br>in joint ventures by participating in PT NICOLE METAL INDUSTRY’s capital increase.
--- ---

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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, 2025<br>and the year ended December 31, 2024 are as follows:
1) For the three-month period ended March 31, 2025
--- ---
(in millions of Won)
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Company December 31,2024Book value Acquisition Dividends Share ofprofits (losses) Other increase(decrease)(*1) March 31,2025Book value
[Domestic]
Samcheok Blue Power Co.,Ltd. ~~W~~ 392,269 17,509 (2,795 ) 7,364 — 414,347
SNNC 38,046 — — (1,233 ) — 36,813
Chun-cheon Energy Co., Ltd 14,054 — — (80 ) 80 14,054
Pocheon-Hwado Highway Corp. 14,834 — — 355 — 15,189
CHUNGJU ENTERPRISE CITY <br>DEVELOPMENT Co.,Ltd 12,401 — — (70 ) 1 12,332
PCC Amberstone Private Equity Fund 1 6,181 — — (193 ) (811 ) 5,177
POSCO MC MATERIALS 153,839 — (3,000 ) 575 — 151,414
Others 132,730 160 (650 ) 2,072 1,094 135,406
764,354 17,669 (6,445 ) 8,790 364 784,732
[Foreign]
South-East Asia Gas Pipeline Company Ltd. 279,349 — (11,941 ) 17,136 (5,437 ) 279,107
9404-5515 Quebec Inc. 426,276 — (20,259 ) 6,674 (895 ) 411,796
AMCI (WA) PTY LTD 68,478 — — (1,146 ) 511 67,843
KOREA LNG LTD. 25,622 — (1,498 ) 1,501 (5,859 ) 19,766
PT. Wampu Electric Power 17,680 — (875 ) 257 (46 ) 17,016
POS-SeAH Steel Wire(Nantong) Co., Ltd. 10,713 — — 200 35 10,948
Roy Hill Holdings Pty Ltd 1,397,824 — (62,937 ) 42,651 16,775 1,394,313
POSCO-NPS Niobium LLC 477,898 — — 29 (1,138 ) 476,789
KOBRASCO 119,820 — — 3,407 8,483 131,710
BX STEEL POSCO Cold Rolled Sheet Co., Ltd. 126,906 — — 3,590 443 130,939
PT NICOLE METAL INDUSTRY 578,604 — — (379 ) (1,187 ) 577,038
HBIS-POSCO Automotive Steel Co., Ltd 179,841 — — (11,840 ) 460 168,461
Others 265,428 — (1,893 ) (5,586 ) 3,838 261,787
3,974,439 — (99,403 ) 56,494 15,983 3,947,513
~~W~~ 4,738,793 17,669 (105,848 ) 65,284 16,347 4,732,245
(*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, 2025.
--- ---

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March 31, 2025 and 2024 (Unaudited)

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

2) For the year ended December 31, 2024

(in millions of Won)
Company December 31,2023Book value Acquisition Dividends Share ofprofits (losses) Other increase(decrease)(*1) December 31,2024Book value
[Domestic]
Samcheok Blue Power Co.,Ltd. ~~W~~ 323,521 25,680 (10,993 ) 54,140 (79 ) 392,269
SNNC 100,692 — — (61,898 ) (748 ) 38,046
Chun-cheon Energy Co., Ltd 15,040 — — 1,807 (2,793 ) 14,054
Pocheon-Hwado Highway Corp. 23,998 — — (9,164 ) — 14,834
CHUNGJU ENTERPRISE CITY DEVELOPMENT Co.,Ltd 13,967 — — (384 ) (1,182 ) 12,401
PCC Amberstone Private Equity Fund 1 8,904 175 (490 ) (484 ) (1,924 ) 6,181
POSCO MC MATERIALS 155,748 — (1,800 ) 403 (512 ) 153,839
Others 150,985 12,362 (4,999 ) (6,802 ) (18,816 ) 132,730
792,855 38,217 (18,282 ) (22,382 ) (26,054 ) 764,354
[Foreign]
South-East Asia Gas Pipeline Company Ltd. 287,282 — (64,208 ) 45,923 10,352 279,349
AES Mong Duong Power Company Limited(*2) 230,699 — (34,821 ) (82,075 ) (113,803 ) —
9404-5515 Quebec Inc. 346,724 — (17,764 ) 35,241 62,075 426,276
AMCI (WA) PTY LTD 60,225 — — (5,127 ) 13,380 68,478
NCR LLC 253,121 4,275 — (266,425 ) 9,029 —
KOREA LNG LTD. 58,759 — (17,829 ) 17,714 (33,022 ) 25,622
Nickel Mining Company SAS 87,967 — — (94,353 ) 6,386 —
ZHEJIANG HUAYOU-POSCO ESM CO., LTD 105,300 — — (117,143 ) 11,843 —
PT. Wampu Electric Power 15,632 — (1,764 ) 1,238 2,574 17,680
POS-SeAH Steel Wire(Nantong) Co., Ltd. 8,642 — — 573 1,498 10,713
Roy Hill Holdings Pty Ltd 1,400,009 — (284,541 ) 203,130 79,226 1,397,824
POSCO-NPS Niobium LLC 419,192 — (29,225 ) 29,336 58,595 477,898
KOBRASCO 99,768 — (5,761 ) 37,914 (12,101 ) 119,820
BX STEEL POSCO Cold Rolled Sheet Co., Ltd. 111,001 — (10,772 ) 14,207 12,470 126,906
DMSA/AMSA 16,572 — — (17,299 ) 727 —
PT NICOLE METAL INDUSTRY 284,351 247,824 — (315 ) 46,744 578,604
HBIS-POSCO Automotive Steel Co., Ltd 208,765 — — (49,480 ) 20,556 179,841
Others 233,400 7,860 (26,222 ) 12,865 37,525 265,428
4,227,409 259,959 (492,907 ) (234,076 ) 214,054 3,974,439
~~W~~ 5,020,264 298,176 (511,189 ) (256,458 ) 188,000 4,738,793
(*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 year ended December 31, 2024.
--- ---
(*2) During the year ended December 31, 2024, the Group determined to sell AES Mong Duong Power Company Limited<br>and classified it as assets held for sale.
--- ---

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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, 2025 and the year ended December 31, 2024 is as follows:
1) As of and for the three-month period ended March 31, 2025
--- ---
(in millions of Won)
--- --- --- --- --- --- --- --- --- --- --- --- ---
Company Assets Liabilities Equity(deficit) Sales Net income(loss)
[Domestic]
Samcheok Blue Power Co.,Ltd. ~~W~~ 5,111,103 4,287,622 823,481 99,395 21,074
SNNC 637,109 542,251 94,858 158,661 (661 )
Chun-cheon Energy Co., Ltd 545,605 420,321 125,284 105,917 2,090
Pocheon-Hwado Highway Corp. 682,854 590,410 92,444 2,912 997
CHUNGJU ENTERPRISE CITY DEVELOPMENT Co.,Ltd 14,522 3,063 11,459 — (236 )
PCC Amberstone Private Equity Fund 1 63,631 4,779 58,852 534 (2,194 )
POSCO MC MATERIALS 372,515 118,246 254,269 54,107 1,333
[Foreign]
South-East Asia Gas Pipeline Company Ltd. 1,615,842 501,201 1,114,641 125,856 68,432
9404-5515 Quebec Inc. 1,650,839 2,509 1,648,330 — 25,818
FQM Australia Holdings Pty Ltd 61,179 1,502,354 (1,441,175 ) 6,382 15,441
KOREA LNG LTD. 99,182 352 98,830 8,156 7,507
Nickel Mining Company SAS 523,970 289,935 234,035 47,553 (11,782 )
ZHEJIANG HUAYOU-POSCO ESM CO., LTD 339,083 51,301 287,782 19,339 1,174
PT. Wampu Electric Power 202,026 120,010 82,016 3,299 1,239
POS-SeAH Steel Wire(Nantong) Co., Ltd. 100,818 59,898 40,920 34,785 880
Roy Hill Holdings Pty Ltd 10,751,129 2,629,908 8,121,221 1,724,530 432,223
POSCO-NPS Niobium LLC 953,376 — 953,376 — 58
KOBRASCO 269,935 7,120 262,815 9,737 6,814
BX STEEL POSCO Cold Rolled Sheet Co., Ltd. 929,916 433,027 496,889 392,478 14,360
DMSA/AMSA 83,589 777,814 (694,225 ) 237,335 (1,612,157 )
HBIS-POSCO Automotive Steel Co., Ltd 1,017,193 660,710 356,483 114,090 (23,114 )
PT NICOLE METAL INDUSTRY 983,079 192,621 790,458 — (774 )

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

2) As of and for the year ended December 31, 2024
(in millions of Won)
--- --- --- --- --- --- --- --- --- --- --- --- ---
Company Assets Liabilities Equity(deficit) Sales Netincome(loss)
[Domestic]
Samcheok Blue Power Co.,Ltd. ~~W~~ 4,770,385 4,013,505 756,880 596,497 177,922
SNNC 656,049 560,530 95,519 690,103 (127,233 )
Chun-cheon Energy Co., Ltd 540,333 417,139 123,194 430,679 5,089
Pocheon-Hwado Highway Corp. 690,646 599,199 91,447 21,920 (29,582 )
CHUNGJU ENTERPRISE CITY <br>DEVELOPMENT Co.,Ltd 14,663 2,968 11,695 — (1,302 )
PCC Amberstone Private Equity Fund 1 72,722 2,455 70,267 7 (5,508 )
POSCO MC MATERIALS 385,270 127,335 257,935 226,376 1,217
[Foreign]
South-East Asia Gas Pipeline Company Ltd. 1,634,345 518,743 1,115,602 409,790 183,392
AES Mong Duong Power Company Limited 1,758,256 922,268 835,988 460,672 118,071
9404-5515 Quebec Inc. 1,704,653 — 1,704,653 — 136,320
FQM Australia Holdings Pty Ltd 61,735 1,521,991 (1,460,256 ) 102,869 (396,146 )
KOREA LNG LTD. 128,215 102 128,113 90,578 88,572
Nickel Mining Company SAS 519,560 282,321 237,239 237,102 (27,170 )
ZHEJIANG HUAYOU-POSCO ESM CO., LTD 325,284 39,058 286,226 82,254 (7,139 )
PT. Wampu Electric Power 209,725 124,359 85,366 19,133 6,191
POS-SeAH Steel Wire(Nantong) Co., Ltd. 98,919 58,972 39,947 139,499 2,145
Roy Hill Holdings Pty Ltd 10,460,434 2,356,265 8,104,169 7,179,077 2,038,555
POSCO-NPS Niobium LLC 955,592 — 955,592 — 57,722
KOBRASCO 282,087 43,052 239,035 118,408 74,690
BX STEEL POSCO Cold Rolled Sheet Co., Ltd. 1,180,532 699,775 480,757 1,595,656 56,830
DMSA/AMSA 3,364,786 3,468,220 (103,434 ) 694,120 (571,215 )
HBIS-POSCO Automotive Steel Co., Ltd 1,024,831 645,671 379,160 518,808 (90,757 )
PT NICOLE METAL INDUSTRY 818,168 25,039 793,129 — (644 )

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, 2025 are as follows:

Joint operations Operation Ownership (%) Location
Myanmar A-1/A-3<br>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

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March 31, 2025 and 2024 (Unaudited)

11. Investment Property

Changes in the carrying amount of investment property for the three-month period ended March 31, 2025 and the year ended December 31, 2024 are as follows:

(a) For the three-month period ended March 31, 2025
(in millions of Won) Beginning Disposals Depreciation Others(*1) Ending
--- --- --- --- --- --- --- --- --- --- --- --- --- ---
Land ~~W~~ 866,450 (510 ) — 430 866,370
Buildings 942,851 (189 ) (7,170 ) (6,415 ) 929,077
Structures 1,755 — (12 ) (100 ) 1,643
Right of use assets 144,840 (28 ) (1,403 ) 504 143,913
~~W~~ 1,955,896 (727 ) (8,585 ) (5,581 ) 1,941,003
(*1) Including reclassification resulting from changing purpose of use, adjustment of foreign currency translation<br>difference and others.
--- ---
(b) For the year ended December 31, 2024
--- ---
(in millions of Won) Beginning Acquisitions BusinessCombination(*1) Disposals Depreciation Impairmentloss Others(*2) Ending
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Land ~~W~~ 787,304 3,755 59,766 (47,137 ) — (215 ) 62,977 866,450
Buildings 655,786 1,782 355,155 (34,419 ) (34,179 ) (9,776 ) 8,502 942,851
Structures 1,873 — — — (911 ) — 793 1,755
Right of use assets 171,331 — — (107 ) (6,547 ) — (19,837 ) 144,840
~~W~~ 1,616,294 5,537 414,921 (81,663 ) (41,637 ) (9,991 ) 52,435 1,955,896
(*1) During the year ended December 31, 2024, RNR Logistics and others were included as subsidiaries, and the<br>Group has included the effect of the increase in investment properties in the business combination.
--- ---
(*2) Including reclassification resulting from changing purpose of use, adjustment of foreign currency translation<br>difference and others.
--- ---

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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>2025 and the year ended December 31, 2024 are as follows:
1) For the three-month period ended March 31, 2025
--- ---
(in millions of Won) Beginning Acquisitions Disposals Depreciation Impairmentloss Others(*1) Ending
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Land ~~W~~ 3,335,875 121 — — — 49,761 3,385,757
Buildings 5,280,968 1,098 (308 ) (97,889 ) — 430,706 5,614,575
Structures 3,860,523 1,902 (2,579 ) (80,732 ) (4,447 ) 120,766 3,895,433
Machinery and equipment 18,311,678 18,740 (5,323 ) (631,755 ) (43,133 ) 739,941 18,390,148
Vehicles 89,975 1,944 (627 ) (9,882 ) — 4,116 85,526
Tools 134,501 3,238 (56 ) (13,540 ) — 843 124,986
Furniture and fixtures 200,033 3,670 (119 ) (17,747 ) — 46,401 232,238
Lease assets 970,634 62,699 — (47,116 ) — (2,237 ) 983,980
Bearer plants 139,451 — (66 ) (2,475 ) — (3,821 ) 133,089
Construction-in-progress 7,523,190 1,251,739 (5 ) — — (1,495,029 ) 7,279,895
~~W~~ 39,846,828 1,345,151 (9,083 ) (901,136 ) (47,580 ) (108,553 ) 40,125,627
(*1) Presenting 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, 2024
--- ---
(in millions of Won) Beginning Acquisitions Disposals Depreciation Impairmentloss(*2,3) Others(*1) Ending
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Land ~~W~~ 3,290,244 20,523 (6,061 ) — (6,620 ) 37,789 3,335,875
Buildings 4,427,632 14,002 (11,137 ) (346,334 ) (67,797 ) 1,264,602 5,280,968
Structures 3,081,524 11,663 (4,497 ) (306,017 ) (15,328 ) 1,093,178 3,860,523
Machinery and equipment 16,539,192 179,457 (47,511 ) (2,484,915 ) (385,367 ) 4,510,822 18,311,678
Vehicles 79,595 17,353 (1,487 ) (39,263 ) (56 ) 33,833 89,975
Tools 128,865 28,731 (673 ) (54,966 ) (1,573 ) 34,117 134,501
Furniture and fixtures 189,887 27,966 (2,380 ) (70,561 ) (3,260 ) 58,381 200,033
Lease assets 998,305 132,219 (18,706 ) (177,475 ) (1,994 ) 38,285 970,634
Bearer plants 137,331 — (27 ) (9,602 ) — 11,749 139,451
Construction-in-progress 6,333,673 7,634,826 (3,482 ) — (128,119 ) (6,313,708 ) 7,523,190
~~W~~ 35,206,248 8,066,740 (95,961 ) (3,489,133 ) (610,114 ) 769,048 39,846,828
(*1) Presenting 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) The Group calculated the net fair value of individual assets, such as steelmaking plant no. 1 and blast furnace<br>no. 4 in Pohang, whose operation was suspended due to operation plan changes, to estimate recoverable amount and recognized an impairment loss of ~~W~~227,239 million for property, plant and equipment during the year ended<br>December 31, 2024.
--- ---
(*3) The Group identified certain portion of the anode/cathode material assets that were in longterm idle status or<br>expected to fall short of the anticipated economic performance during the year ended December 31, 2024. The Group calculated the net fair value of such individual assets to estimate the recoverable amount and recognized an impairment loss of<br>~~W~~307,911 million for assets whose recoverable amounts are less than their carrying amounts.
--- ---

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Notes to the interim condensed consolidated financial statements, continued

March 31, 2025 and 2024 (Unaudited)

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

(b) Changes in the carrying amount of<br>right-of-use assets presented as investment properties and property, plant and equipment for the three-month period ended March 31, 2025 and the year ended<br>December 31, 2024 are as follows:
1) For the three-month period ended March 31, 2025
--- ---
(in millions of Won) Beginning Acquisitions Depreciation Impairmentloss Others Ending
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Land ~~W~~ 348,918 5,564 (4,066 ) — (6,226 ) 344,190
Buildings and structures 154,747 48,794 (15,102 ) — (7,101 ) 181,338
Machinery and equipment 346,642 2,703 (11,809 ) — 9,339 346,875
Vehicles 45,071 5,232 (5,069 ) — (982 ) 44,252
Ships 196,070 — (5,855 ) — — 190,215
Others 24,026 406 (6,618 ) 174 3,035 21,023
~~W~~ 1,115,474 62,699 (48,519 ) 174 (1,935 ) 1,127,893
2) For the year ended December 31, 2024
--- ---
(in millions of Won) Beginning Acquisitions Depreciation Impairmentloss Others Ending
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Land ~~W~~ 363,789 1,542 (17,501 ) (1,994 ) 3,082 348,918
Buildings and structures 151,366 58,116 (54,092 ) — (643 ) 154,747
Machinery and equipment 355,604 37,204 (47,797 ) — 1,631 346,642
Vehicles 48,228 12,501 (20,291 ) — 4,633 45,071
Ships 220,754 — (24,684 ) — — 196,070
Others 29,895 22,856 (19,657 ) — (9,068 ) 24,026
~~W~~ 1,169,636 132,219 (184,022 ) (1,994 ) (365 ) 1,115,474
(c) The amounts recognized in profit or loss related to leases for each of the three-month periods ended<br>March 31, 2025 and 2024 are as follows:
--- ---
(in millions of Won) March 31, 2025 March 31, 2024
--- --- --- --- ---
Interest on lease liabilities ~~W~~ 11,422 12,346
Expenses related to short-term leases 11,626 18,935
Expenses related to leases of low-value assets 5,053 6,656
~~W~~ 28,101 37,937

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Notes to the interim condensed consolidated financial statements, continued

March 31, 2025 and 2024 (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, 2025 and the year ended December 31, 2024 are as follows:

(a) For the three-month period ended March 31, 2025
(in millions of Won) Beginning Acquisitions Disposals Amortization Impairmentloss Others(*2) Ending
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Goodwill ~~W~~ 357,851 — — — — (223 ) 357,628
Intellectual property rights 3,247,517 110,781 — (74,069 ) — 15,496 3,299,725
Membership(*1) 136,108 117 (511 ) (47 ) (12 ) (14 ) 135,641
Development expense 95,041 5,757 — (7,939 ) — 3,848 96,707
Port facilities usage rights 167,996 — — (3,711 ) — — 164,285
Exploratation and evaluation assets 115,309 11,332 — — — 438 127,079
Development assets 86,711 — — (135 ) — (208 ) 86,368
Customer relationships 145,699 — — (11,120 ) — 13 134,592
Other intangible assets 422,592 33,658 (43 ) (15,735 ) — 2,870 443,342
~~W~~ 4,774,824 161,645 (554 ) (112,756 ) (12 ) 22,220 4,845,367
(*1) Estimated useful life of membership is indefinite.
--- ---
(*2) Presenting 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, 2024
--- ---
(in millions of Won) Beginning Acquisitions BusinessCombination Disposals Amortization Impairmentloss Others(*2) Ending
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Goodwill ~~W~~ 403,172 — 282 — — (46,958 ) 1,355 357,851
Intellectual property rights 3,029,651 353,175 — (240 ) (272,730 ) — 137,661 3,247,517
Membership(*1) 138,184 1,716 — (4,179 ) (180 ) 29 538 136,108
Development expense 126,818 15,913 — (22 ) (63,684 ) (692 ) 16,708 95,041
Port facilities usage rights 182,411 — — — (14,415 ) — — 167,996
Exploratation and evaluation assets 163,446 21,024 — — — — (69,161 ) 115,309
Development assets 10,235 543 — — (76 ) — 76,009 86,711
Customer relationships 196,895 — — — (44,478 ) — (6,718 ) 145,699
Other intangible assets 463,972 118,563 — (102,012 ) (58,126 ) (252 ) 447 422,592
~~W~~ 4,714,784 510,934 282 (106,453 ) (453,689 ) (47,873 ) 156,839 4,774,824
(*1) Estimated useful life of membership is indefinite.
--- ---
(*2) Presenting 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.
--- ---

25

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Notes to the interim condensed consolidated financial statements, continued

March 31, 2025 and 2024 (Unaudited)

14. Other Assets

Other assets as of March 31, 2025 and December 31, 2024 are as follows:

(in millions of Won) March 31, 2025 December 31, 2024
Current
Advance payments ~~W~~ 604,121 509,922
Prepaid expenses 345,104 259,145
Firm commitment asset 3,376 2,489
Other current assets 15,662 15,387
~~W~~ 968,263 786,943
Non-current
Long-term advance payments ~~W~~ 35,500 33,308
Long-term prepaid expenses 22,352 20,689
Others 53,233 79,688
~~W~~ 111,085 133,685

15. Borrowings

(a) Short-term borrowings and current portion of long-term borrowings and others as of March 31, 2025 and<br>December 31, 2024 are as follows:
(in millions of Won) Lenders Issuance date Maturity date Interest rate (%) March 31, 2025 December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- --- ---
Short-term borrowings
Bank overdrafts JP Morgan<br>and others May, 2024~March, 2025 April, 2025~ March, 2026 3.65 ~ 7.40 ~~W~~ 60,045 85,892
Short-term borrowings HSBC and<br>others April, 2024~March, 2025 April, 2025~March, 2026 0.49 ~ 8.10 6,266,307 5,647,199
6,326,352 5,733,091
Current portion of long-term liabilities
Current portion of long-term borrowings Export-<br>Import Bank<br>of Korea<br>and others December, 2006~March,<br>2025 April, 2025~March, 2026 0.19 ~ 6.40 1,420,607 1,323,002
Current portion of debentures KB Securities<br>co.,Ltd. and<br>others July, 2015~March, 2024 April, 2025~March, 2026 1.68 ~ 5.80 4,770,444 4,024,084
Less: Current portion of <br>discount on debentures issued (5,893 ) (3,483 )
Current portion of exchangable bonds(*1) Foreign<br>currency<br>exchangable<br>bonds September, 2021 September, 2026 40,648 39,053
6,225,806 5,382,656
~~W~~ 12,552,158 11,115,747
(*1) The Group classified the exchangeable bonds as current liabilities in consideration of the investor’s<br>exchange right.
--- ---

26

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Notes to the interim condensed consolidated financial statements, continued

March 31, 2025 and 2024 (Unaudited)

15. Borrowings (cont’d)

The issuance conditions of the exchangeable bonds issued by the Company are as follows:

Foreign currency exchangeable bonds
Type of bond Exchangeable bonds
Aggregate principal amount(*1) EUR 27,100,000
Interest rate - Coupon rate : -<br> <br><br><br><br>- 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<br>maturity as a lump sum<br> <br><br> <br>- Prepayment : The issuer has call option and the bondholders<br>have put option
Exchange rate 100%
Exchange price(*2) (Won/share) 433,278
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 - 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
(*1) Due to put option exercised by bondholders, EUR 1,038,800,000 was redeemed out of the total face value of<br>exchangeable bonds of EUR 1,065,900,000 during the year ended December 31, 2024.
--- ---
(*2) The exchange price has changed due to cash dividends paid during the three-month period ended March 31,<br>2025.
--- ---

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.

27

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Notes to the interim condensed consolidated financial statements, continued

March 31, 2025 and 2024 (Unaudited)

15. Borrowings (cont’d)

(b) Long-term borrowings, excluding current portion and others, as of March 31, 2025 and December 31,<br>2024 are as follows:
(in millions of Won) Lenders Issuance date Maturity date Interest rate (%) March 31, 2025 December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- ---
Long-term borrowings Export-Import Bank of Korea and others September, 2001~March, 2025 April, 2026~March, 2040 0.10 ~ 8.50 ~~W~~ 5,603,487 4,868,703
Less: Present value discount (49,098 ) (51,173 )
Bonds KB Securities co.,Ltd. and others July, 2019~January, 2025 April, 2026~ January, 2033 1.72 ~ 6.38 9,123,470 10,108,600
Less: Discount on debentures issued (38,750 ) (44,510 )
~~W~~ 14,639,109 14,881,620
(c) Assets pledged as collateral with regard to the borrowings as of March 31, 2025 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~~ 4,228,470 5,064,117
Trade accounts and notes receivable Korea<br>Development<br>Bank and<br>others 489,921 489,921
Financial instruments Korea<br>Development<br>Bank and<br>others 66,947 66,947
~~W~~ 4,785,338 5,620,985

16. Other Payables

Other payables as of March 31, 2025 and December 31, 2024 are as follows:

(in millions of Won) March 31, 2025 December 31, 2024
Current
Accounts payable ~~W~~ 1,538,661 1,652,957
Accrued expenses 1,051,097 1,275,068
Dividend payable 287,961 4,182
Lease liabilities 163,159 161,601
Withholdings 348,087 370,063
~~W~~ 3,388,965 3,463,871
Non-current
Accounts payable ~~W~~ 6,571 6,096
Accrued expenses 13,438 11,979
Lease liabilities 758,572 744,500
Long-term withholdings 52,135 46,437
~~W~~ 830,716 809,012

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Notes to the interim condensed consolidated financial statements, continued

March 31, 2025 and 2024 (Unaudited)

17. Other Financial Liabilities

Other financial liabilities as of March 31, 2025 and December 31, 2024 are as follows:

(in millions of Won) March 31, 2025 December 31, 2024
Current
Derivative liabilities ~~W~~ 34,633 108,786
Financial guarantee liabilities 6,008 4,972
Others 7,116 7,117
~~W~~ 47,757 120,875
Non-current
Derivative liabilities ~~W~~ 4,847 2,236
Financial guarantee liabilities 9,899 8,944
Others 60,798 61,740
~~W~~ 75,544 72,920

18. Provisions

(a) Provisions as of March 31, 2025 and December 31, 2024 are as follows:
(in millions of Won) March 31, 2025 December 31, 2024
--- --- --- --- --- --- --- --- ---
Current Non-<br>current Current Non-<br>current
Provision for bonus payments ~~W~~ 70,896 71,375 121,757 70,104
Provision for construction warranties 41,654 143,330 49,659 137,201
Provision for legal contingencies and claims(*1) 9,394 79,647 17,960 78,486
Provision for the restoration 10,065 207,561 10,041 197,810
Others(*2) 236,137 94,585 196,613 96,958
~~W~~368,146 596,498 396,030 580,559
(*1) The Group recognized probable outflow of resources amounting to ~~W~~67,384 million and<br>~~W~~80,220 million as provisions for legal contingencies and asserted claim in relation to lawsuits against the Group as of March 31, 2025 and December 31, 2024, respectively.
--- ---
(*2) 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, 2025 and December 31, 2024, the Group recognized ~~W~~97,704 million and ~~W~~64,249 million respectively, as<br>provision.
--- ---

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Notes to the interim condensed consolidated financial statements, continued

March 31, 2025 and 2024 (Unaudited)

18. Provisions (cont’d)

(b) Changes in provisions for the three-month period ended March 31, 2025 and the year ended December 31,<br>2024 are as follows:
1) For the three-month period ended March 31, 2025
--- ---
(in millions of Won) Beginning Increase Utilization Reversal Others(*1) Ending
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Provision for bonus payments ~~W~~ 191,861 35,108 (79,854 ) (4,639 ) (205 ) 142,271
Provision for construction warranties 186,860 10,134 (10,342 ) (1,284 ) (384 ) 184,984
Provision for legal contingencies and claims 96,446 2,763 (9,341 ) (2,026 ) 1,199 89,041
Provision for the restoration 207,851 13,668 (256 ) (4,811 ) 1,174 217,626
Others 293,571 63,600 (7,253 ) (16,114 ) (3,082 ) 330,722
~~W~~ 976,589 125,273 (107,046 ) (28,874 ) (1,298 ) 964,644
(*1) Including adjusted foreign currency translation differences and others.
--- ---
2) For the year ended December 31, 2024
--- ---
(in millions of Won) Beginning Increase Utilization Reversal Others(*1) Ending
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Provision for bonus payments ~~W~~ 184,391 224,339 (187,004 ) (29,461 ) (404 ) 191,861
Provision for construction warranties 196,758 53,244 (48,471 ) (8,274 ) (6,397 ) 186,860
Provision for legal contingencies and claims 73,062 54,929 (12,964 ) (19,743 ) 1,162 96,446
Provision for the restoration 175,820 28,917 (8,311 ) (6,485 ) 17,910 207,851
Others 257,722 255,624 (151,362 ) (76,790 ) 8,377 293,571
~~W~~ 887,753 617,053 (408,112 ) (140,753 ) 20,648 976,589
(*1) Including adjusted foreign currency translation differences and others.
--- ---

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Notes to the interim condensed consolidated financial statements, continued

March 31, 2025 and 2024 (Unaudited)

19. Employee Benefits

(a) Defined contribution plans

The expenses related to defined contribution retirement plans for each of the three-month periods ended March 31, 2025 and 2024 are as follows:

(in millions of Won) March 31, 2025 March 31, 2024
Expense related to post-employment benefit plans <br>under defined contribution plans ~~W~~ 18,764 18,669
(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, 2025 and December 31, 2024 are as follows:
--- ---
(in millions of Won) March 31, 2025 December 31, 2024
--- --- --- --- --- --- ---
Present value of funded obligations ~~W~~ 2,560,339 2,589,246
Fair value of plan assets(*1) (2,866,194 ) (2,962,342 )
Present value of non-funded obligations 5,212 7,092
Net defined benefit liabilities ~~W~~ (300,643 ) (366,004 )
(*1) As of March 31, 2025 and December 31, 2024, the Group recognized net defined benefit assets amounting<br>to ~~W~~360,802 million and ~~W~~409,147 million, respectively, since there are consolidated entities whose fair value of plan assets exceeded the present value of defined benefit obligations.<br>
--- ---
2) The amounts recognized in relation to net defined benefit plan in the interim condensed consolidated statements<br>of comprehensive income for each of the three-month periods ended March 31, 2025 and 2024 are as follows:
--- ---
(in millions of Won) March 31, 2025 December 31, 2024
--- --- --- --- --- --- ---
Current service costs ~~W~~ 69,778 67,822
Net interest costs (4,256 ) (5,574 )
~~W~~ 65,522 62,248

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Notes to the interim condensed consolidated financial statements, continued

March 31, 2025 and 2024 (Unaudited)

20. Other Liabilities

Other liabilities as of March 31, 2025 and December 31, 2024 are as follows:

(in millions of Won) March 31, 2025 December 31, 2024
Current
Due to customers for contract work ~~W~~ 314,379 491,495
Advances received 313,953 253,171
Unearned revenue 104,961 87,969
Withholdings 267,814 307,753
Firm commitment liability 2,047 10,384
Others(*1) 24,025 22,726
~~W~~ 1,027,179 1,173,498
Non-current
Unearned revenue ~~W~~ 4,307 4,317
Others(*1) 92,673 94,942
~~W~~ 96,980 99,259
(*1) As of March 31, 2025 and December 31, 2024, the Group recognized the assumed liability amounting to<br>~~W~~38,885 million and ~~W~~41,770 million, respectively, related to unfavorable terms of a customer contract compared to market-terms upon the acquisition of Senex Energy Limited.
--- ---

32

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Notes to the interim condensed consolidated financial statements, continued

March 31, 2025 and 2024 (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 levels in the fair value<br>hierarchy as of March 31, 2025 and December 31, 2024 are as follows:
--- ---
① March 31, 2025
--- ---
(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~~ 776,609 — 776,609 — 776,609
Short-term financial instruments 756,805 — 756,805 — 756,805
Equity securities 76,166 16,263 — 59,903 76,166
Debt securities 117,502 — 84,500 33,002 117,502
Other securities 760,731 — — 760,731 760,731
Derivative hedging instruments(*2) 3,885 — 3,885 — 3,885
Fair value through other comprehensive income
Equity securities 1,110,575 728,315 — 382,260 1,110,575
Assets held for sale 492,418 492,418 — — 492,418
Financial assets measured at amortized cost(*1) —
Cash and cash equivalents 6,772,543 — — — —
Trade accounts and notes receivable 9,653,494 — — — —
Other receivables 2,919,973 — — — —
Debt securities 494,259 — — — —
Deposit instruments 7,504,086 — — — —
Assets held for sale 28,919 — — — —
~~W~~ 31,467,965 1,236,996 1,621,799 1,235,896 4,094,691
Financial liabilities
Fair value through profit or loss
Derivative liabilities ~~W~~ 36,106 — 36,106 — 36,106
Borrowings 40,647 40,647 — — 40,647
Derivative hedging instruments(*2) 3,374 — 3,374 — 3,374
Financial liabilities measured at amortized cost(*1)
Trade accounts and notes payable 5,690,532 — — — —
Borrowings 27,150,620 — 27,328,802 — 27,328,802
Financial guarantee liabilities 15,907 — — — —
Others 3,822,229 — — — —
Other financial Liabilities 67,914 — — — —
~~W~~ 36,827,329 40,647 27,368,282 — 27,408,929
(*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 influence cash flow from borrowings.
--- ---

33

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Notes to the interim condensed consolidated financial statements, continued

March 31, 2025 and 2024 (Unaudited)

21. Financial Instruments (cont’d)
② December 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~~ 946,393 — 946,393 — 946,393
Short-term financial instruments 1,212,643 — 1,212,643 — 1,212,643
Equity securities 52,222 26,792 — 25,430 52,222
Debt securities 113,728 — 82,699 31,029 113,728
Other securities 762,177 — — 762,177 762,177
Derivative hedging instruments(*2) 16,483 — 16,483 — 16,483
Fair value through other comprehensive income
Equity securities 1,119,322 703,181 — 416,141 1,119,322
Assets held for sale 604,439 604,439 — — 604,439
Financial assets measured at amortized cost(*1)
Cash and cash equivalents 6,767,898 — — — —
Trade accounts and notes receivable 9,374,217 — — — —
Other receivables 2,739,523 — — — —
Debt securities 402,644 — — — —
Deposit instruments 6,445,428 — — — —
~~W~~ 30,557,117 1,334,412 2,258,218 1,234,777 4,827,407
Financial liabilities
Fair value through profit or loss
Derivative liabilities ~~W~~ 105,187 — 105,187 — 105,187
Borrowings 39,053 39,053 — — 39,053
Derivative hedging instruments(*2) 5,835 — 5,835 — 5,835
Financial liabilities measured at amortized cost(*1)
Trade accounts and notes payable 6,161,177 — — — —
Borrowings 25,958,314 — 26,166,994 — 26,166,994
Financial guarantee liabilities 13,916 — — — —
Others 3,895,526 — — — —
Other financial Liabilities 68,857 — — — —
~~W~~ 36,247,865 39,053 26,278,016 — 26,317,069
(*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 influence 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, 2025 and 2024 are as follows:
--- ---
① For the three-month period ended March 31, 2025
--- ---
(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~~ — 3,558 — 15,333 1,086 19,977 —
Derivative assets — 77,298 — 58,286 — 135,584 —
Financial assets at fair value through other<br><br><br>comprehensive income — — — — 16,154 16,154 39,274
Financial assets measured at amortized cost 125,672 — 87,102 (20,019 ) (4,134 ) 188,621 —
Financial liabilities at fair value through profit or loss — (81 ) (1,513 ) — — (1,594 ) —
Derivative liabilities — (28,441 ) — (115,285 ) — (143,726 ) (126 )
Financial liabilities measured at amortized cost (262,356 ) — (85,459 ) — (10,683 ) (358,498 ) —
~~W~~ (136,684 ) 52,334 130 (61,685 ) 2,423 (143,482 ) 39,148

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Notes to the interim condensed consolidated financial statements, continued

March 31, 2025 and 2024 (Unaudited)

21. Financial Instruments (cont’d)

② 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<br><br><br>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<br><br><br>through other comprehensive income — — — — 18,118 18,118 7,648
Financial assets measured at<br><br><br>amortized cost 172,436 — 340,296 (17,429 ) (34 ) 495,269 —
Financial liabilities at fair value<br><br><br>through profit or loss — 144,001 (32,435 ) — — 111,566 —
Derivative liabilities — 98,899 — 59,745 — 158,644 (407 )
Financial liabilities measured at<br><br><br>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
(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, 2024.

22. Share Capital and Capital Surplus

(a) Share capital as of March 31, 2025 and December 31, 2024 is as follows:

(Share, in Won) March 31, 2025 December 31, 2024
Authorized shares 200,000,000 200,000,000
Par value ~~W~~ 5,000 5,000
Issued shares(*1,2) 80,932,952 82,624,377
Share capital(*3) ~~W~~ 482,403,125,000 482,403,125,000
(*1) As of March 31, 2025, total number of American Depository Receipts (ADRs) outstanding in overseas stock<br>market amounts to 10,776,164 and such ADRs are equivalent to 2,694,041 shares of common stock.
--- ---
(*2) Pursuant to the resolution of the Board of Directors’ meeting on February 19, 2025, the Company decided to<br>retire 1,691,425 shares using distributable profits, and it was completed on March 31, 2025. As a result, as of March 31, 2025, the Company’s total number of issued shares has decreased.
--- ---
(*3) As of March 31, 2025, the difference between the ending balance of common stock and the aggregate par<br>value of issued common stock is ~~W~~77,738 million due to retirement of 15,547,673 treasury stocks.
--- ---

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March 31, 2025 and 2024 (Unaudited)

22. Share Capital and Capital Surplus (cont’d)

(b) Capital surplus as of March 31, 2025 and December 31, 2024 are as follows:

(in millions of Won) March 31,2025 December 31,2024
Share premium ~~W~~ 463,825 463,825
Gain on disposal of treasury shares 808,994 808,994
Other capital surplus 378,051 376,075
~~W~~ 1,650,870 1,648,894

23. Other components of equity

Details of other components of equity as of March 31, 2025 and December 31, 2024 are as follows:

(in millions of Won) March 31, 2025 December 31, 2024
Capital adjustment arising from investments in <br>equity-accounted investees ~~W~~ 74,702 76,870
Changes in fair value of equity investments <br>at fair value through other comprehensive<br>income 57,935 20,066
Foreign currency translation differences 1,013,031 983,071
Losses on valuation of derivatives (1,051 ) (925 )
Others 76,348 76,347
~~W~~ 1,220,965 1,155,429

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, 2025 and the year ended December 31, 2024 are as follows:

(shares, in millions of Won) March 31, 2025 December 31, 2024
Number ofshares Amount Number ofshares Amount
Beginning 7,003,598 ~~W~~ 1,550,862 8,695,023 ~~W~~ 1,889,658
Acquisition of treasury shares — — 255,428 92,311
Retirement of teasury shares (1,691,425 ) (374,546 ) (1,946,853 ) (431,107 )
Ending 5,312,173 ~~W~~ 1,176,316 7,003,598 ~~W~~ 1,550,862

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Notes to the interim condensed consolidated financial statements, continued

March 31, 2025 and 2024 (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, 2025 and 2024 are as follows:

1) March 31, 2025
(in millions of Won) Infrastructure
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Steel Trading Construction Logistics andothers Materials ofsecondary battery Others Total
Types of revenue
Revenue from sales of goods ~~W~~ 9,129,725 5,271,052 — 1,855 617,043 — 15,019,675
Revenue from services 223,413 583,728 26,611 83,204 — 4,945 921,901
Revenue from construction contract — — 1,442,395 — 4,141 — 1,446,536
Others 32,108 1,586 939 10,853 — 3,178 48,664
~~W~~ 9,385,246 5,856,366 1,469,945 95,912 621,184 8,123 17,436,776
Timing of revenue recognition
Revenue recognized at a point in time ~~W~~ 9,161,833 5,272,638 10,769 12,708 617,043 3,178 15,078,169
Revenue recognized over time 223,413 583,728 1,459,176 83,204 4,141 4,945 2,358,607
~~W~~ 9,385,246 5,856,366 1,469,945 95,912 621,184 8,123 17,436,776
2) March 31, 2024
--- ---
(in millions of Won) Infrastructure
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Steel Trading Construction Logistics andothers Materials ofsecondary battery 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
(b) Details of contract assets and liabilities from contracts with customers as of March 31, 2025 and<br>December 31, 2024 are as follows:
--- ---
(in millions of Won) March 31, 2025 December 31, 2024
--- --- --- --- ---
Receivables
Trade accounts and notes receivable ~~W~~ 9,653,494 9,374,218
Contract assets
Due from customers for contract work 1,520,264 1,475,180
Contract liabilities
Advance received 317,055 256,522
Due to customers for contract work 314,379 491,495
Unearned revenue 107,045 89,807

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Notes to the interim condensed consolidated financial statements, continued

March 31, 2025 and 2024 (Unaudited)

26. Contract under Input Method

(a) Details of outstanding contracts as of March 31, 2025 and December 31, 2024 are as follows:<br>
(in millions of Won) March 31, 2025 December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- ---
Constructionsegment Others Constructionsegment Others
Accumulated cost ~~W~~ 19,730,030 281,316 27,830,242 262,814
Accumulated contract profit 1,182,000 44,058 1,903,582 43,690
Accumulated contract loss (590,987 ) (11,953 ) (707,167 ) (1,930 )
Accumulated contract revenue 20,321,043 313,421 29,026,657 304,574
(b) Details of due from customers for contract work and due to customers for contract work as of March 31,<br>2025 and December 31, 2024 are as follows:
--- ---
(in millions of Won) March 31, 2025 December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- ---
Constructionsegment Others Constructionsegment Others
Due from customers for contract ~~W~~ 1,509,216 24,242 1,473,843 13,716
Due to customers for contract work (308,337 ) (6,042 ) (479,546 ) (11,949 )
~~W~~ 1,200,879 18,200 994,297 1,767
(c) Details of the provisions for construction loss as of March 31, 2025 and December 31, 2024 are as<br>follows:
--- ---
(in millions of Won) March 31, 2025 December 31, 2024
--- --- --- --- ---
Construction segment ~~W~~ 45,506 52,492
Others 871 857
~~W~~ 46,377 53,349
(d) For the three-month period ended March 31, 2025, 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 revenue Changes in estimatedtotal contract costs Net income Future income(loss) Total
Construction segment ~~W~~ 726,302 684,354 (53,010 ) 94,958 41,948
Others 736 (387 ) 978 145 1,123
~~W~~ 727,038 683,967 (52,032 ) 95,103 43,071

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, 2025 and the estimated total contract revenue as of March 31, 2025. The estimated total contract costs and revenue are subject to change in future periods.

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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. 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 Based on recent purchasing price at market price
Labor cost Based on average monthly and daily labor cost
Outsourcing cost Based on historical cost over similar project and actual contractual rate

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

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Notes to the interim condensed consolidated financial statements, continued

March 31, 2025 and 2024 (Unaudited)

27. Selling and Administrative Expenses

(a) Other administrative expenses

Other administrative expenses for each of the three-month periods ended March 31, 2025 and 2024 are as follows:

(in millions of Won) March 31, 2025 March 31, 2024
Wages and salaries ~~W~~ 312,768 303,851
Expenses related to post-employment benefits 24,492 23,844
Other employee benefits 82,135 77,529
Travel 11,968 10,377
Depreciation 48,086 40,830
Amortization 28,217 27,213
Communication 3,761 3,890
Electricity 4,723 3,673
Taxes and public dues 19,382 15,237
Rental 9,683 4,765
Repairs 2,611 3,468
Entertainment 3,353 3,993
Advertising 18,237 20,352
Research & development 46,870 49,345
Service fees 53,344 53,347
Vehicles maintenance 2,148 2,008
Industry association fee 3,847 2,321
Conference 6,045 4,817
(Recovery of) Bad debt expenses 25,862 17,739
Others 8,051 16,848
~~W~~ 715,583 685,447

(b) Selling expenses

Selling expenses for each of the three-month periods ended March 31, 2025 and 2024 are as follows:

(in millions of Won) March 31, 2025 March 31, 2024
Freight and custody expenses ~~W~~ 5,187 6,080
Operating expenses for distribution center 183 265
Sales commissions 17,923 22,054
Sales advertising 94 200
Sales promotion 2,547 2,743
Sample 737 567
Sales insurance premium 9,487 8,239
Contract cost 11,995 17,866
Others 3,700 2,349
~~W~~ 51,853 60,363

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March 31, 2025 and 2024 (Unaudited)

28. Finance Income and Costs

Details of finance income and costs for each of the three-month periods ended March 31, 2025 and 2024 are as follows:

(in millions of Won) March 31, 2025 March 31, 2024
Finance income
Interest income ~~W~~ 125,672 172,436
Dividend income 17,240 18,210
Gain on foreign currency transactions 257,329 304,843
Gain on foreign currency translations 231,691 302,527
Gain on derivatives transactions 64,228 78,174
Gain on valuations of derivatives 80,148 300,348
Gain on disposals of financial assets at fair value through profit of loss 16,234 25,287
Gain on valuations of financial assets at fair value through profit or loss 10,651 85,306
Gain on valuations of financial liabilities at fair value through profit or loss — 144,001
Others 1,486 3,169
~~W~~ 804,679 1,434,301
Finance costs
Interest expenses ~~W~~ 262,356 246,801
Loss on foreign currency transactions 273,721 266,068
Loss on foreign currency translations 215,169 586,332
Loss on derivatives transactions 121,227 60,545
Loss on valuation of derivatives 31,291 46,899
Loss on disposal of trade accounts and notes receivable 20,019 17,429
Loss on disposals of financial assets at fair value through profit or loss 901 12,894
Loss on valuations of financial assets at fair value through profit or loss 7,093 12,873
Loss on valuations of financial liabilities at fair value through profit or loss 81 —
Others 16,303 8,341
~~W~~ 948,161 1,258,182

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March 31, 2025 and 2024 (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, 2025 and 2024 are as follows:

(in millions of Won) March 31, 2025 March 31, 2024
Other non-operating income
Recovery of other bad debt expenses ~~W~~ 345 2,322
Gain on disposals of investment in subsidiaries, associates and joint ventures 25,447 18
Gain on disposals of property, plant and equipment 2,163 5,997
Gain on disposal of assets held for sale 52,148 —
Gain on valuation of firm commitment 9,606 13,447
Reversal of other provisions 3,819 2,459
Gain on disposals of emission rights 4 2,970
Others 39,333 30,216
~~W~~ 132,865 57,429
Other non-operating expenses
Other bad debt expenses ~~W~~ — 10,847
Loss on disposals of investments in subsidiaries, associates and joint ventures 196 20
Loss on disposals of property, plant and equipment 13,274 13,365
Impairment loss on property, plant and equipment 47,580 40,631
Loss on disposal of assets held for sale — 31,222
Loss on valuation of firm commitment 2,447 1,309
Idle tangible asset expenses 1,321 1,466
Increase to provisions 1,305 3,079
Donations 21,523 23,133
Others 25,504 36,805
~~W~~ 113,150 161,877

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March 31, 2025 and 2024 (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, 2025 and 2024 are as follows (excluding finance costs and income tax expense):

(in millions of Won) March 31, 2025 March 31, 2024
Raw material used, changes in inventories and others ~~W~~ 10,507,948 10,465,365
Employee benefits expenses 1,265,969 1,211,194
Outsourced processing cost 2,037,658 2,549,589
Electricity and water expenses 364,019 322,578
Depreciation(*1) 909,721 880,865
Amortization 112,756 122,641
Freight and custody expenses 562,217 674,468
Sales commissions 17,923 22,054
Loss on disposal of property, plant and equipment 13,274 13,365
Impairment loss on property, plant and equipment 47,580 40,631
Impairment loss on intangible assets 12 11
Donations 21,523 23,133
Other expenses 1,120,885 1,304,911
~~W~~ 16,981,485 17,630,805
(*1) Including depreciation of investment property.
--- ---

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Notes to the interim condensed consolidated financial statements, continued

March 31, 2025 and 2024 (Unaudited)

31. Income Taxes

The effective tax rates of the Group for each of the three-month periods ended March 31, 2025 and 2024 are 32.50% and 17.02%, respectively.

(a) Application of the Consolidated Tax Payment System

In 2025, the Group has applied the consolidated tax payment system, under which a controlling company and its domestic subsidiaries, if economically integrated, are treated as a single tax entity for corporate income tax purposes. Under this system, the controlling company, as the consolidated parent entity, is responsible for filing and paying the corporate income tax on behalf of the entire consolidated group. After payment, the parent company collects the corresponding tax amounts from each domestic subsidiary.

Domestic and foreign subsidiaries that are not included in the consolidated tax payment system calculate and pay corporate income tax based on each legal entity as a separate tax unit.

Deferred tax assets and deferred tax liabilities of entities included in the consolidated tax payment system are offset when the Group has a legally enforceable right to offset current tax assets against current tax liabilities, and the deferred tax assets and liabilities relate to income taxes levied by the same tax authority and there is an intention to settle them on a net basis.

(b) Global minimum tax

In 2023, Pillar Two legislation has been enacted in the Republic of Korea, where the parent company is domiciled, which is 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, 2025 as it is subject to global minimum tax under the OECD’s Pillar Two Model Rules. The Group reviewed subsidiaries qualifying as taxpayers, including the parent company and, as a result, did not recognize any income tax expense for the three-month period ended March 31, 2025 as the impact of the global minimum tax on the consolidated financial statements as of March 31, 2025 would not be significant. 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. Accordingly, it did not recognize deferred tax assets and liabilities related to the global minimum tax and does not disclose information related to deferred income tax.

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March 31, 2025 and 2024 (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) March 31, 2025 March 31, 2024
--- --- --- --- ---
Profit attributable to controlling interest ~~W~~ 302,295,393,171 540,715,276,945
Weighted-average number of common shares outstanding(*1) 75,620,779 75,876,207
Basic earnings per share ~~W~~ 3,998 7,126
(*1) The weighted-average number of common shares used to calculate basic earnings per share is as follows:<br>
--- ---
(shares) March 31, 2025 March 31, 2024
--- --- --- --- --- --- ---
Total number of common shares issued 82,624,377 84,571,230
Weighted-average number of treasury shares (7,003,598 ) (8,695,023 )
Weighted-average number of common shares outstanding 75,620,779 75,876,207

The Group has exchangeable bonds that can be exchanged for common stocks with dilutive effects as of March 31, 2025 and December 31, 2024. The diluted earnings per share for the three-month period ended March 31, 2025 is the same as the basic earnings per share due to the anti-dilutive effect.

(b) Diluted earnings per share for the three-month period ended March 31, 2024 are calculated as follows:<br>
(in Won, except share information) March 31, 2024
--- --- --- ---
Profit attributable to controlling interest ~~W~~ 540,715,276,945
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

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(*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

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33. Related Party Transactions

(a) Related **** parties of the Group as of December 31, 2025 are as follows:

Type Company
Investments in associates and joint ventures [Domestic] <br>POSCO MC MATERIALS, Samcheok Blue Power Co.,Ltd., <br>SNNC and others.
[Foreign] <br>Roy Hill Holdings Pty Ltd, POSCO-NPS Niobium LLC, KOBRASCO, <br>PT NICOLE METAL INDUSTRY, HBIS-POSCO Automotive Steel Co.,Ltd, <br>South -East Asia Gas Pipeline Company Ltd.,<br>9404-5515 Quebec Inc., <br>KOREA LNG LTD., Nickel Mining Company SAS and others.
(b) Material transactions between the Group and related parties for each of the three-month periods ended<br>March 31, 2025 and 2024 are as follows:
--- ---
1) For the three-month period ended March 31, 2025
--- ---
(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~~ 43,934 — — — 54
SNNC 17,840 — 3 126,584 1,815
POSCO-SAMSUNG-SLOVAKIA PROCESSING CENTER 11,279 — — 1 —
Gunggi Green Energy 5,724 — — — 1,477
POS-SEAH STEEL WIRE(TIANJIN)CO.,Ltd 3,282 — — — —
POS SeAH Steel Wire(Nantong) Co., Ltd. 13,085 — — 86 —
South-East Asia Gas Pipeline Company Ltd. — 11,941 — — —
POSCO MC MATERIALS 31,430 3,000 — 1,515 90
Samcheok Blue Power Co., Ltd. 61,920 2,795 352 — —
POSCO(Guangdong) Automotive Steel Co., Ltd 52,643 — — 60,632 —
HBIS-POSCO Automotive Steel Co., Ltd 5,645 — — 8,907 71
Roy Hill Holdings Pty Ltd — 62,937 — 387,494 —
Others 46,653 25,175 211 36,530 11,286
~~W~~ 293,435 105,848 566 621,749 14,793
(*1) As of March 31, 2025, the Group provides payment guarantees to the related parties (see Note 34).<br>
--- ---
2) 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 the related parties (see Note 34).<br>
--- ---

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Notes to the interim condensed consolidated financial statements, continued

March 31, 2025 and 2024 (Unaudited)

33. Related Party Transactions (cont’d)

(c) The balances of receivables and payables arising from significant transactions between the Group and the<br>related parties as of March 31, 2025 and December 31, 2024 are as follows:
1) March 31, 2025
--- ---
(in millions of Won) Receivables(*1) Payables
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Trade accountsandnotes receivable Loans Others Total Trade accountsandnotes payable Others Total
Associates and joint ventures
New Songdo International City
Development, LLC ~~W~~ 113,501 — — 113,501 — 2,936 2,936
Gunggi Green Energy 11,316 — 10,706 22,022 — 441 441
POSCO(Guangdong) Automotive Steel Co., Ltd 37,751 15,833 — 53,584 34,485 — 34,485
AMCI (WA) PTY LTD — 143,928 — 143,928 — — —
HBIS-POSCO Automotive Steel Co.,Ltd 8,987 — — 8,987 1,037 1,809 2,846
POS-SEAHSTEELWIRE(TIANJIN)CO.,Ltd 4,467 — — 4,467 — — —
Samcheok Blue Power Co., Ltd. 169,986 — 164 170,150 — 6,005 6,005
Nickel Mining Company SAS — 71,453 156 71,609 — 358 358
POS-SeAH Steel Wire(Nantong) Co., Ltd. 15,752 — — 15,752 138 — 138
POSCO MC MATERIALS 12,437 — 3,195 15,632 625 355 980
Pocheon-Hwado Highway Corp. 10,985 — — 10,985 — — —
UITrans LRT Co., Ltd. — 39,353 91 39,444 — — —
Roy Hill Holdings Pty Ltd 50,201 — 12,659 62,860 261,980 — 261,980
SNNC 11,314 — 57 11,371 28,220 401 28,621
FQM Australia Holdings Pty Ltd — 292,500 — 292,500 — — —
Others 33,525 22,275 152,912 208,712 2,907 12,745 15,652
~~W~~ 480,222 585,342 179,940 1,245,504 329,392 25,050 354,442
(*1) As of March 31, 2025, the Group recognizes an allowance for doubtful account for receivables above<br>amounting to ~~W~~510,569 million.
--- ---
2) December 31, 2024
--- ---
(in millions of Won) Receivables(*1) Payables
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Trade accountsandnotes receivable Loans Others Total Trade accountsandnotes receivable Others Total
Associates and joint ventures
New Songdo International City
Development, LLC ~~W~~ 96,730 — 1,657 98,387 — 30,087 30,087
Gunggi Green Energy 5,846 — 10,706 16,552 — 567 567
POSCO(Guangdong) Automotive Steel Co., Ltd 46,547 6,162 — 52,709 48,866 — 48,866
AMCI (WA) PTY LTD — 142,767 — 142,767 — — —
HBIS-POSCO Automotive Steel Co.,Ltd 13,924 — — 13,924 5,483 1,922 7,405
POS-SEAHSTEELWIRE(TIANJIN)CO., Ltd 5,970 — — 5,970 — — —
Samcheok Blue Power Co., Ltd. 189,173 — 148 189,321 — 77,187 77,187
Nickel Mining Company SAS — 68,793 122 68,915 — 358 358
POS-SeAH Steel Wire(Nantong) Co., Ltd. 19,628 — — 19,628 — — —
POSCO MC MATERIALS 14,544 — 168 14,712 1,314 357 1,671
Pocheon-Hwado Highway Corp. 10,985 — — 10,985 — — —
UITrans LRT Co., Ltd. 13,592 51,051 9,187 73,830 — — —
Roy Hill Holdings Pty Ltd 25,023 — 8,836 33,859 356,234 25 356,259
SNNC 12,861 — 70 12,931 10,322 1,298 11,620
FQM Australia Holdings Pty Ltd — 292,764 — 292,764 — — —
Others 27,728 19,730 138,239 185,697 10,168 10,129 20,297
~~W~~ 482,551 581,267 169,133 1,232,951 432,387 121,930 554,317

(*1) As of December 31, 2024, the Group recognizes an allowance for doubtful account for receivables above amounting to ~~W~~506,673 million.

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Notes to the interim condensed consolidated financial statements, continued

March 31, 2025 and 2024 (Unaudited)

33. Related Party Transactions (cont’d)

(d) Major financial transactions between the Group and the related parties for the three-month period ended<br>March 31, 2025 and the year ended December 31, 2024 are as follows:
1) For the three-month period ended March 31, 2025
--- ---
(in millions of Won) Beginning Lend Collect Others(*1) Ending
--- --- --- --- --- --- --- --- --- --- --- --- ---
Associates and joint ventures
UITrans LRT Co., Ltd. ~~W~~ 51,051 — (11,698 ) — 39,353
PT. Tanggamus Electric Power 3,854 — — (9 ) 3,845
Nickel Mining Company SAS 68,793 — — 2,660 71,453
KRAKATAU POS-CHEM<br>DONG-SUH CHEMICAL 1,470 — — (3 ) 1,467
Hyo-chun Co., Ltd. 2,382 — — — 2,382
AMCI (WA) PTY LTD 142,767 68 — 1,093 143,928
POS-AUSTEM WUHAN AUTOMOTIVE CO.,LTD 5,636 — — 11 5,647
FQM Australia Holdings Pty Ltd 292,764 — — (264 ) 292,500
POHANG E&E Co. , LTD 3,228 — — — 3,228
POSCO(Guangdong) Automotive Steel Co., Ltd. 6,162 26,040 (16,444 ) 75 15,833
Gale International Korea, LLC 100 80 — — 180
P&O Chemical Co., Ltd. 3,060 — — (3,060 ) —
CAML — 5,524 — — 5,524
~~W~~ 581,267 31,712 (28,142 ) 503 585,340
(*1) Including adjustments of foreign currency translation differences and others.
--- ---
2) For the year ended December 31, 2024
--- ---
(in millions of Won) Beginning Lend Collect Others(*1) Ending
--- --- --- --- --- --- --- --- --- --- --- --- ---
Associates and joint ventures
UITrans LRT Co., Ltd. ~~W~~ 46,335 4,718 — (2 ) 51,051
PT. Tanggamus Electric Power 4,826 — (1,288 ) 316 3,854
Nickel Mining Company SAS 64,197 — — 4,596 68,793
KRAKATAU POS-CHEM<br>DONG-SUH CHEMICAL 2,579 — (1,379 ) 270 1,470
Hyo-chun Co., Ltd. 2,382 — — — 2,382
AMCI (WA) PTY LTD 112,177 6,499 — 24,091 142,767
POS-AUSTEM WUHAN AUTOMOTIVE CO.,LTD 5,158 — — 478 5,636
FQM Australia Holdings Pty Ltd 256,938 3,126 — 32,700 292,764
POHANG E&E Co. , LTD 1,646 1,582 — — 3,228
POSCO(Guangdong) Automotive Steel Co., Ltd. 14,332 59,402 (68,294 ) 722 6,162
Gale International Korea, LLC — 100 — — 100
P&O Chemical Co., Ltd. — 3,060 — — 3,060
~~W~~ 510,570 78,487 (70,961 ) 63,171 581,267
(*1) Including adjusted foreign currency translation differences and others.
--- ---
(e) For each of the three-month periods ended March 31, 2025 and 2024, there were additional<br>investments in associates and joint ventures and others amounting to ~~W~~17,669 million and ~~W~~30,777 million, respectively.
--- ---
(f) For each of the three-month periods ended March 31, 2025 and 2024, details of compensation to key<br>management officers are as follows:
--- ---
(in millions of Won) March 31,2025 March 31,2024
--- --- --- --- ---
Short-term benefits ~~W~~ 46,078 43,273
Long-term benefits 2,518 2,953
Retirement benefits 7,125 8,761
~~W~~ 55,721 54,987

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, continued

March 31, 2025 and 2024 (Unaudited)

34. Commitments and Contingencies

(a) Contingent liabilities

Contingent liabilities can change due to unforeseen circumstances; therefore, management continuously reviews whether the likelihood of an outflow of resources embodying economic benefits has increased. Except in extremely rare circumstances where it cannot be reliably estimated, if the likelihood of an outflow of future economic benefits has increased, even if it had been treated as a contingent liability in the past, such changes in likelihood are recognized as a provision in the consolidated financial statements for the period in which the change occurred.

Management of the Group makes estimates and assumptions that affect disclosures of commitments and contingencies. All estimates and assumptions are based on the evaluation of current circumstances and appraisals with the support of internal and/or external specialists.

Management of the Group regularly analyzes the most current information on contingent events and provides information regarding provisions related to contingent losses, including potential estimated legal costs. Such assessments are based on consultations with internal and external legal counsel. In making the decision on the recognition of a provision, management considers the likelihood of an outflow of resources embodying economic benefits to settle the obligation and the possibility of making a reliable estimate of the amount.

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Notes to the interim condensed consolidated financial statements, continued

March 31, 2025 and 2024 (Unaudited)

34. Commitments and Contingencies (cont’d)

(b) Details of guarantees
1) Contingent liabilities on outstanding guarantees provided by the Group as of March 31, 2025 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 200,000,000 293,300 — —
POSCO Argentina S.A.U HSBC and others USD 1,079,900,000 1,583,673 860,996,774 1,262,652
POSCO POSCO-VIETNAM Co., Ltd. Shinhan Bank and others USD 110,000,000 161,315 30,000,000 43,995
POSCO ASSAN TST STEEL INDUSTRY Inc Citibank and others USD 122,850,000 180,160 122,850,000 180,160
POSCO COATED STEEL (THAILAND) CO., LTD. HSBC and others THB 4,800,000,000 207,312 1,776,000,000 76,705
POSCO INTERNATIONAL Corporation GOLDEN LACE POSCO INTERNATIONAL CO., LTD. POSCO Asia Co., Ltd. USD 13,200,000 19,358 11,000,000 16,132
PT. Bio Inti Agrindo BTPN and others IDR 902,400,000,000 79,953 902,400,000,000 79,953
POSCO ASSAN TST STEEL INDUSTRY Woori Bank Hong Kong and others USD 13,650,000 20,018 13,650,000 20,018
POSCO INTERNATIONAL Deutschland GmbH Bank Mendes Gans Amsterdam USD 50,000,000 73,325 — —
POSCO INTERNATIONAL JAPAN Corp. — —
POSCO INTERNATIONAL AMERICA Corp. — —
POSCO INTERNATIONAL SINGAPORE Pte. Ltd. — —
POSCO INTERNATIONAL Malaysia SDN BHD — —
POSCO INTERNATIONAL ITALIA S.R.L. — —
POSCO INTERNATIONAL MEXICO S.A. de C.V. 20,000,000 29,330
POSCO INTERNATIONAL AUSTRALIA HOLDINGS PTY LTD — —
POSCO INTERNATIONAL MEXICO E-MOBILITY S.A DE<br>C.V. — —
POSCO INTERNATIONAL POLAND E-MOBILITY Sp.z.o.o — —
POSCO INTERNATIONAL E&P MALAYSIA SDN. BHD. SC MALAYSIA USD 5,000,000 7,333 5,000,000 7,333
PT. KRAKATAU POSCO ENERGY POSCO Asia Co., Ltd. and others USD 102,903,407 150,908 41,301,000 60,568
POSCO INTERNATIONAL MEXICO E-MOBILITY S.A DE<br>C.V. Export-Import Bank of <br>Korea and others USD 52,054,800 76,338 44,379,000 65,082
PT POSCO INTERNATIONAL ENP INDONESIA PT Bank Negara Indonesia USD 750,000 1,100 750,000 1,100
AGPA PTE. LTD. SMBC Singapore USD 20,880,000 30,621 20,880,000 30,621
POSCO Eco & Challenge Co., Ltd. POSCO E&C Vietnam Co., Ltd. POSCO Asia Co., Ltd. USD 6,000,000 8,799 6,000,000 8,799
POSCO STEELEON CO.,LTD. Myanmar POSCO C&C Company, Limited. POSCO Asia Co., Ltd. USD 16,784,336 24,614 13,986,947 20,512
POSCO FUTURE M CO., LTD. ULTIUM CAM LIMITED PARTNERSHIP Investissement Quebec, <br>Strategic Innovation Fund CAD 299,562,500 306,875 232,265,400 237,935
[Associates and joint ventures]
POSCO HOLDINGS INC. Nickel Mining Company SAS SMBC EUR 46,000,000 73,041 46,000,000 73,041
POSCO POSUK Titanium LLP Shinhan Bank USD 13,250,000 19,431 12,750,000 18,698
POSCO INTERNATIONAL Corporation GLOBAL KOMSCO Daewoo LLC Hana Bank Bahrain USD 6,650,000 9,752 5,250,000 7,699
POSCO Eco & Challenge Co., Ltd. Chun-cheon Energy Co., Ltd Kookmin Bank and others KRW 149,200 149,200 122,170 122,170
[Others]
POSCO Eco & Challenge Co., Ltd. Subcontractors for maintenance projects, etc. Kookmin Bank and others KRW 884,123 884,123 288,494 288,494
POSCO AUSTRALIA PTY LTD Department of Trade and Investment (NSW Government) and others Woori Bank and others AUD 18,112,062 16,675 18,112,062 16,675
PT. Bio lnti Agrindo KSU Mandob Sejatera Bank Muamalat IDR 80,000,000,000 7,088 18,933,333,333 1,677
POSCO COATED STEEL (THAILAND) CO., LTD. AMATA NATURAL GAS DISTRIBUTION COMPANY LIMITED and others SC Bank THB 54,614,000 2,359 54,614,000 2,359
BUREAU OF INDIAN STANDARDS (BIS) SC Bank USD 10,000 15 10,000 15
POSCO Maharashtra Steel Private Limited Gail India and others HSBC and others INR 852,129,542 14,606 852,129,542 14,606

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March 31, 2025 and 2024 (Unaudited)

34. Commitments and Contingencies (cont’d)

2) Details of credit enhancements by type of the Group’s PF business as of March 31, 2025 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 follows:
--- ---
(in millions of Won) Balance of the loans
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Provider Projects(*1) Borrower Type Credit enhancementmeasures Agreedamount Executedamount Total Within 3months 3~6months 6 months~1 year 1 year ~2years 2 years ~3years After3 years
[The Company]
POSCO Eco & Challenge Co., Ltd. Other<br>projects JB CLARK<br>HILLS CORP Main PF Debt<br>assumption ~~W~~ 48,395 40,329 40,329 — 40,329 — — — —
[Associates and joint ventures]
POSCO Eco & Challenge Co., Ltd. Other<br>projects New Songdo<br>International City<br>Development,<br>LLC Mortgage<br>loan Debt<br>assumption 494,000 300,100 300,100 — — — — 300,100 —
[Others]
POSCO Eco & Challenge Co., Ltd. Maintenance<br>projects Bangbae<br>Shindonga<br>Apartment<br>Reconstruction<br>and Maintenance<br>Project<br>Association, etc. Main PF Debt<br>assumption 951,626 452,672 452,672 33,600 126,345 — 177,648 — 115,079
Other<br>projects Civic Center PFV Main PF Debt<br>assumption 45,000 45,000 45,000 — — — — — 45,000
Other<br>projects LandmarkSewoon Main PF Debt<br>assumption 50,000 50,000 50,000 — — — — — 50,000
Other<br>projects DAON INP Co.,<br>Ltd. Main PF Joint<br>guarantee 36,000 14,100 14,100 — — 14,100 — — —
Other<br>projects Jeonju Eco-city Main PF Debt<br>assumption 53,300 22,800 22,800 — — — 22,800 — —
Other<br>projects Apcity HNG Main PF Debt<br>assumption 10,000 10,000 10,000 — — 10,000 — — —
POSCO DX Other<br>projects Jeonnong school<br>keeper co. and<br>others(*2) Main PF Supplemental<br>funding<br>agreement 123,309 42,185 42,185 — — — — 1,037 41,148
1,269,235 636,757 636,757 33,600 126,345 24,100 200,448 1,037 251,227
~~W~~ 1,811,630 977,186 977,186 33,600 166,674 24,100 200,448 301,137 251,227
(*1) The maintenance project mainly consists of reconstruction and condominium construction projects, and other<br>projects consist of constructions of office buildings, retail shops, warehouses, and educational facilities.
--- ---
(*2) The obligation to supplement funding has been included in the Group’s proportionate interests. The<br>execution amount of the supplement funding obligation may vary depending on the fulfillment of such obligations by other construction investors or operational investors. (Including other interests: guarantee limit of<br>~~W~~1,122,320 million, outstanding loan balance of ~~W~~387,433 million)
--- ---
b. Details of conditional debt acceptance and principal and interest repayment commitments in the event of non-compliance with completion guarantee covenant as of March 31, 2025 are as follows:
--- ---
(in millions of Won) Number of constructions Contract amount Contingency amount(*1)(*2) Balance of loans
--- --- --- --- --- --- ---
Maintenance projects All 19 ~~W~~ 8,667,885 3,612,841 1,924,635
Between the Group 19 6,346,761 2,580,097 1,263,098
(*1) The overlapping amount with other credit enhancement measures such as the agreed debt assumption upon loan<br>origination amounts to ~~W~~17,465 million for 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 completion guarantee may vary depending on factors such as the reasons attributable to the project participants upon actual execution of the completion guarantee.
--- ---

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March 31, 2025 and 2024 (Unaudited)

34. Commitments and Contingencies (cont’d)

c. Details of contingent liability for damages in the event of<br>non-compliance with construction completion covenant as of March 31, 2025 are as follows:
(in millions of Won) Number ofconstructions Contractamount Contingencyamount(*1)(*2) Balance ofloans
--- --- --- --- --- --- --- --- --- ---
Maintenance projects All 1 ~~W~~ 305,519 76,000 31,862
Between the Group 1 305,519 76,000 31,862
Other projects All 33 11,016,466 11,073,200 7,291,808
Between the Group 33 10,400,519 10,769,240 7,018,905
All 34 11,321,985 11,149,200 7,323,670
Between the Group 34 ~~W~~ 10,706,038 10,845,240 7,050,767
(*1) The overlapping amount with other credit enhancement measures such as the agreed debt assumption upon loan<br>origination amounts to ~~W~~119,100 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 completion guarantee may vary depending on factors such as the reasons attributable to the project participants upon actual execution of the completion guarantee.
--- ---
② SOC projects
--- ---
(in millions of Won)
--- --- --- --- --- --- --- --- ---
Provider Recipient Credit enhancement<br><br><br>measures Number of<br>constructions Approved amount Remaining balanceafter repayment
[The Company]
POSCO INTERNATIONAL Corporation NEH Co. ltd Supplemental funding agreement 1 ~~W~~ 550,000 113,000
[Associates and joint ventures]
POSCO DX Pocheon-Hwado Highway Corp.(*1) Providing funds 1 24,923 22,323
POSCO Eco & Challenge Co., Ltd. Pocheon-Hwado Highway Corp.(*1) Providing funds 1 319,515 286,183
POHANG E&E Co., LTD(*2) Providing funds and supplemental funding agreement 2 71,930 43,392
Pureun Tongyeong Enviro Co., Ltd.(*2) Providing funds 1 25,630 10,648
Pure Gimpo.Co.,Ltd(*2) Providing funds 1 51,565 22,718
Clean Iksan Co.,Ltd(*2) Providing funds 1 44,054 21,644
7 537,617 406,908
[Others]
POSCO DX Western Inland highway CO.,LTD. Providing funds 1 47,348 30,566
POSCO Eco & Challenge Co., Ltd. Western Seoul highway CO.,LTD. and others Supplemental funding agreement 11 62,721 28,788
Western Inland highway CO.,LTD. and others Providing funds 42 2,752,905 1,475,156
Pohang Youngil Bay New Port Debt assumption 1 2,250 1,440
Busan Sanseong Tunnel Refinancing 1 35,296 26,750
56 2,900,520 1,562,700
64 ~~W~~ 3,988,137 2,082,608
(*1) The Group provides a funding commitment of ~~W~~308,506 million (including other shares:<br>~~W~~558,079 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~~95,702 million (including other shares:<br>~~W~~174,907 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, continued

March 31, 2025 and 2024 (Unaudited)

34. Commitments and Contingencies (cont’d)

3) Other guarantees
① As of March 31, 2025, 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<br>Construction Inc Guarantee on performance<br>for contracts and others ~~W~~ 11,448 11,448 Credit Agricole and others
POSCO GYR Tech POSCO Defect liability warranty 141 141 CI Guarantee
11,589 11,589
[Associates and joint ventures]
POSCO Eco & Challenge Co., Ltd. PT.Tanggamus Electric Power Letter of credit 2,991 2,991 Hana Bank
PT. Wampu Electric Power Letter of credit 2,640 2,640 Hana Bank
5,631 5,631
[Others]
POSCO Eco & Challenge Co., Ltd. DAEWOO ENGINEERING<br>& CONSTRUCTION Co., Ltd Guarantee on performance<br>for construction 7,975,884 7,970,650 Construction Guarantee<br>Cooperative
POSCO WIDE Co., Ltd Pureun Paju Co., Ltd. Guarantee on performance<br>and others 3,050 3,050 Seoul Guarantee Insurance
POSCO GYR Tech KEPCO Plant Service & Engineering Co., Ltd. Defect liability warranty 134 134 CI Guarantee
7,979,068 7,973,834
~~W~~ 7,996,288 7,991,054
② As of March 31, 2025, 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 Executedamount
Construction Guarantee Cooperative Subcontractor Payment Guarantee and others ~~W~~ 4,539,474 4,539,474
Engineering guarantee insurance Guarantee on performance for EPC contracts and others 901,168 622,530
Seoul Guarantee Insurance Construction performance guarantee and others 527,192 527,192
Korea Housing & Urban Guarantee Corporation Housing Guarantee and others 7,358,300 7,358,300
Woori Bank and others Foreign currency guarantee 2,037,587 856,066
Korea software financial cooperative Guarantee on performance for contracts 124,440 124,440
Seoul Guarantee Insurance Guarantee on performance and others 91,285 91,285
Construction Guarantee Cooperative Guarantee on performance 377 377
CI Guarantee Defect liability warranty 275 275
~~W~~ 15,580,098 14,119,939

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Notes to the interim condensed consolidated financial statements, continued

March 31, 2025 and 2024 (Unaudited)

34. Commitments and Contingencies (cont’d)

(c) Other commitments

Details of other commitments of the Group as of March 31, 2025 are as follows:

Company Description
POSCO HOLDINGS INC. As of March 31, 2025, POSCO HOLDINGS INC. entered into a commitment with KOREA ENERGY AGENCY for long-term foreign currency borrowings, which are limited up to the amount of USD 1.05 million. The borrowing is related to<br>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 liable for the repayment of full or part of the amount borrowed if the respective projects<br>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, 2025, the ending balance of the borrowing amounts to USD 1.02 million.
POSCO HOLDINGS INC. has deposited 85,083 treasury shares for exchange with the Korea Securities Depository in relation to foreign currency exchangeable bonds as of March 31, 2025.
POSCO POSCO entered into long-term contracts to purchase iron ore, coal, nickel and others. The long-term purchase contract period is more than two years for iron ore, three years for coal, and one year for nickel. These contracts<br>provide for periodic price adjustments based on the market price. As of March 31, 2025, 76 million tons of iron ore and 5 million tons of coal remained to be purchased under such long-term contracts.
POSCO entered into an agreement with 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 contract period and volume<br>are 550,000 tons per year for 20 years from August 2005, and 120,000 tons from September 2025 to March 2026. The purchase price is subject to change, based on changes of the monthly standard oil price (JCC) and with a price ceiling.
POSCO has a long-term service contract for the transportation of raw material. As of March 31, 2025, there are 34 vessels under contract, and the average remaining contract period is about 6 years.
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 November 2026.The purchase price is subject to change based on<br>changes of U.S. Henry Hub Natural Gas Spot Price. POSCO has extension option of extending the purchase contract by five years.
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 shippers.<br>POSCO INTERNATIONAL Corporation 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<br>over the 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, POSCO INTERNATIONAL Corporation is obliged to take over the ship based on the<br>condition that the shipper’s contractual obligations and rights are transferred to POSCO INTERNATIONAL Corporation. As of March 31, 2025, the shipper purchased two of the three chartered ship, resulting in the early termination of the ship<br>purchase agreement.
The Company invested in the Ambatovy Nickel Project (DMSA/AMSA) in Madagascar through the Korea Ambatovy Consortium (KAC) formed with Korea Mine Rehabilitation and Mineral Resources Corporation (KOMIR) and STX Corporation.<br>SHERRITT INTERNATIONAL CORP., the operator, transferred a portion of the project’s interests to Sumitomo and AHL (Ambatovy Holdings Limited) in November 2017, and transferred the remaining interests of the project to Sumitomo and AHL2 (Ambatovy<br>Holdings II Limited) in August 2020. KAC has the rights and obligations to the 15.33% stake held by AHL and AHL2.
POSCO Eco & Challenge Co., Ltd. As of March 31, 2025, 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<br>investment, excess expenses occurred for business, and acceleration of payment.
POSCO FUTURE M CO., LTD In accordance with the GP Shareholders Agreement with GM Battery Raw Materials Corporation (“GM”), the Company has an obligation to make additional capital contributions to ULTIUM CAM LIMITED PARTNERSHIP. As of<br>March 31, 2025, the remaining amount of USD 666,061 thousand is scheduled to be contributed additionally by 2026 through capital call.

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Notes to the interim condensed consolidated financial statements, continued

March 31, 2025 and 2024 (Unaudited)

34. Commitments and Contingencies (cont’d)

(d) Litigation in progress

The Group is involved in 442 lawsuits amounting to ~~W~~1,055.6 billion as a defendant as of March 31, 2025, which arise from the ordinary course of business such as claim for confirmation of employee status. The Group has recognized provisions amounting to ~~W~~67.4 billion for 55 lawsuits based on its reliable estimate of outflow of resources.

(e) Other major contingencies for the Group as of March 31, 2025 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.<br><br><br><br> <br>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, 2025, POSCO INTERNATIONAL Corporation has provided 24 blank promissory notes and 15 blank checks to Korea Energy Agency and others as collateral for the guarantee on performance for contracts and<br>others.
POSCO Eco & Challenge Co., Ltd. As of march 31, 2025, POSCO Eco & Challenge Co., Ltd. has provided 38 blank checks and 4 blank promissory notes as collateral for agreements and outstanding loans.
POSCO DX As of march 31, 2025, POSCO DX has provided 7 blank checks to financial institutions as collateral for the guarantee on performance for contracts and others.

35. Cash Flows from Operating Activities

Changes in operating assets and liabilities for each of the three-month periods ended March 31, 2025 and 2024 are as follows:

(in millions of Won) March 31, 2025 March 31, 2024
Trade accounts and notes receivable ~~W~~ (202,991 ) 217,454
Other receivables 431,409 30,838
Inventories 865,893 (223,071 )
Other current assets (159,501 ) (27,605 )
Other non-current assets (29,769 ) (50,774 )
Trade accounts and notes payable (518,828 ) (578,270 )
Other payables (644,452 ) (524,919 )
Other current liabilities (65,404 ) (55,926 )
Provisions (76,578 ) (93,129 )
Payments of severance benefits (131,551 ) (115,519 )
Plan assets 124,073 91,445
Other non-current liabilities (14,868 ) 3,305
~~W~~ (422,567 ) (1,326,171 )

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POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

March 31, 2025 and 2024 (Unaudited)

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, 2025, 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. Meanwhile, the Group has restated the information of the reporting segments from the previous quarter in accordance with the changes in the operating segments.<br>

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
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
Materials of Secondary battery EV battery materials such as lithium, nickel, negative/cathode materials, and hydrogen business
Others POSCO HOLDINGS. INC., Controlling company and Investment business

The segment profit or loss does not reflect the consolidation adjustments allocated to each entity and is 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 between reporting segments, including disposal of property, plant and equipment and provision of construction services.

(b) Information about reportable segments for each of the three-month periods ended March 31, 2025 and 2024 is<br>as follows:
1) For the three-month period ended March 31, 2025
--- ---
(in millions of Won) Steel Infrastructure Secondary betterymaterials Others Total
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Trading Construction Logistics andothers
External revenues ~~W~~ 9,385,246 5,856,366 1,469,945 95,912 621,184 8,123 17,436,776
Internal revenues 5,577,344 4,704,403 418,255 781,190 308,624 678,380 12,468,196
Inter segment revenues 3,748,127 2,269,085 394,431 776,037 269,624 676,556 8,133,860
Total revenues 14,962,590 10,560,769 1,888,200 877,102 929,808 686,503 29,904,972
Segment profits (loss) 222,137 156,202 (8,193 ) 24,986 (97,014 ) 586,932 885,050

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POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

March 31, 2025 and 2024 (Unaudited)

2) For the three-month period ended March 31, 2024
Steel Infrastructure Secondarybetterymaterials Others Total
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(in millions of Won) Construction Trading Logisticsand others
External revenues ~~W~~ 9,860,776 1,842,875 5,333,768 97,569 906,360 10,602 18,051,950
Internal revenues 5,583,438 692,088 5,191,876 994,437 249,782 913,093 13,624,714
Inter segment revenues 3,666,779 658,689 2,406,856 990,263 247,113 908,215 8,877,915
Total revenues 15,444,214 2,534,963 10,525,644 1,092,006 1,156,142 923,695 31,676,664
Segment profits 210,072 80,356 173,696 38,762 25,244 931,635 1,459,765

58

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POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

March 31, 2025 and 2024 (Unaudited)

36. Operating Segments (cont’d)

(c) 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, 2025 March 31, 2024
--- --- --- --- --- --- ---
Total profit for the period ~~W~~ 885,050 1,459,765
Fair value adjustments (15,590 ) (17,599 )
Elimination of intra-group transactions (525,225 ) (834,351 )
Income tax expense 165,723 124,696
Profit before income tax expense ~~W~~ 509,958 732,511

37. Events after the reporting period

(a) On May 7, 2025, the Company issued senior unsecured foreign bonds (Global Bonds) with a total issuance<br>amount of USD 700 million, consisting of USD 400 million with a five-year maturity and USD 300 million with a ten-year maturity. The coupon rates are 5.125% for the five-year bonds and 5.750% for the ten-year bonds.<br>
(b) Pursuant to the resolution of the Board of Directors on May 31, 2025, the Company decided to increase<br>capital in its subsidiaries to strengthen their financial soundness. The capital injections are as follows: ~~W~~525.6 billion to POSCO FUTURE M CO., LTD, ~~W~~ 328 billion to POSOCO-Pilbara LITHIUM SOLUTION Co.,<br>Ltd., and ~~W~~ 69 billion to POSCO-GS Eco Materials Co., Ltd.
--- ---
(c) Pursuant to the resolution of the Board of Directors on May 13, 2025, the Company decided to pay interim<br>cash dividends of ~~W~~2,500 per common share (total dividends: ~~W~~189.1 billion).
--- ---
(d) POSCO Co., Ltd., a subsidiary of the Company, resolved at its Board of Directors meeting on April 21,<br>2025, to acquire the domestic steel scrap business’s assets from POSCO International Corporation. The expected closing date of the business transfer is May 16, 2025.
--- ---
(e) On April 11, 2025, POSCO E&C Co., Ltd., a subsidiary of the Company and the lead construction<br>contractor, experienced a partial collapse of an underground structure at the construction site of Section 5-2 of the Sinansan Line double-track railway private investment project. This incident resulted<br>in both human casualties and property damage. The authorities are currently conducting an investigation thereon. The cause of the accident, allocation of responsibility, potential future costs, and financial impact have not yet been determined.<br>
--- ---

38. Uncertainty in Estimates Due to Imposition of Tariffs by the United States

Under Section 232 of the Trade Expansion Act of the United States of America, the U.S. government has imposed a 25% tariff on all steel and aluminum products, effective from March 12, 2025. Due to the tariff newly imposed, there is uncertainty in estimating financial statements.

59

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POSCO HOLDINGS INC.

Interim condensed separate financial statements

for each of the three-month periods ended March 31, 2025 and 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<br>position 1
Interim condensed separate statements of comprehensive<br>income 3
Interim condensed separate statements of changes in<br>equity 4
Interim condensed separate statements of cash flows 5
Notes to the interim condensed separate financial<br>statements 7
Table of Contents
Ernst & Young Han Young
2-4F, 6-8F, 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, 2025 and the related interim condensed separate statements of comprehensive income, interim condensed separate statements of changes in equity and interim condensed separate statements of cash flows for each of the three-month periods ended March 31, 2025 and 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 Interim Financial Reporting, 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 Interim Financial Reporting.

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LOGO

Other matters

We have audited the separate statement of financial position of the Company as of December 31, 2024, 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) in accordance with KSA, and our report dated March 12, 2025 expressed an unqualified opinion thereon. The accompanying separate statement of financial position of the Company as of December 31, 2024, presented for comparative purposes, is not different from the above audited separate statement of financial position.

May 15, 2025

This review report is effective as of May 15, 2025, 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.

Table of Contents

POSCO HOLDINGS INC.

Interim condensed separate financial statements

for each of the three-month periods ended March 31, 2025 and 2024

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

Jootae Lee

President and Representative Director

POSCO HODINGS INC. ****

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POSCO HOLDINGS INC.

Interim condensed separate statements of financial position

as of March 31, 2025 (Unaudited) and December 31, 2024

(in millions of Won) Notes March 31, 2025(unaudited) December 31,2024
Assets
Cash and cash equivalents 19, 32 ~~W~~ 418,565 409,387
Trade accounts and notes receivable, net 4, 19, 30, 32 774,609 178,822
Other receivables, net 5, 19, 30, 32 124,008 21,388
Other short-term financial assets 6, 19, 32 2,666,277 2,686,420
Assets held for sale 7 492,418 467,796
Current income tax assets 28 27,945 27,940
Other current assets 12 1,608 1,716
Total current assets 4,505,430 3,793,469
Other receivables, net 5, 19, 30 17,868 14,894
Other long-term financial assets 6, 19 462,396 421,822
Investments in subsidiaries, associates and joint ventures 8 45,624,363 45,631,965
Investment property, net 9 325,247 328,372
Property, plant and equipment, net 10, 32 414,948 415,993
Intangible assets, net 11, 32 21,285 21,461
Other non-current assets 12 7,835 5,821
Total non-current assets 46,873,942 46,840,328
Total assets ~~W~~ 51,379,372 50,633,797

(continued)

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POSCO HOLDINGS INC.

Interim condensed separate statements of financial position, continued

as of March 31, 2025 (Unaudited) and December 31, 2024

(in millions of Won) Notes March 31, 2025(unaudited) December 31,2024
Liabilities
Short-term borrowings and current portion of long-term borrowings 13, 19, 32 ~~W~~ 40,648 39,053
Other current payables 14, 30 32 226,900 50,356
Other short-term financial liabilities 15, 19 20,192 18,302
Provisions 16 44,682 46,268
Current income tax liabilities 90,035 —
Other current liabilities 18 8,747 8,852
Total current liabilities 431,204 162,831
Long-term borrowings, excluding current portion 13 1,496 1,500
Other non-current payables 14, 19, 30, 32 34,217 30,783
Defined benefit liabilities, net 17 2,439 1,296
Deferred tax liabilities 28 2,271,587 2,246,030
Long-term provisions 16 36 —
Other non-current liabilities 18 2,171 2,327
Total non-current liabilities 2,311,946 2,281,936
Total liabilities 2,743,150 2,444,767
Equity
Share capital 20 482,403 482,403
Capital surplus 20 1,367,990 1,367,990
Accumulated other comprehensive income (loss) 21 (15,169 ) (62,645 )
Treasury shares 22 (1,176,317 ) (1,550,862 )
Retained earnings 47,977,315 47,952,144
Total equity 48,636,222 48,189,030
Total liabilities and equity ~~W~~ 51,379,372 50,633,797

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

2

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POSCO HOLDINGS INC.

Interim condensed separate statements of comprehensive income

for each of the three-month periods ended March 31, 2025 and 2024 (Unaudited)

For the three-month periodended March 31(Unaudited)
(in millions of Won, except per share informations) Notes 2025 20224
Operating revenue 23, 30 ~~W~~ 664,697 898,738
Operating expenses 24 (90,316 ) (85,662 )
Operating profit 574,381 813,076
Finance income and costs
Finance income 19, 25 31,716 209,425
Finance costs 19, 25 (4,285 ) (41,580 )
Other non-operating income and expenses
Other non-operating income 26 916 170
Other non-operating expenses 26 (1,523 ) (686 )
Profit before income tax 601,205 980,405
Income tax expense 28 (12,447 ) (39,066 )
Profit 588,758 941,339
Other comprehensive income (loss)
Items that will not be reclassified subsequently to profit or loss:
Remeasurements of defined benefit plans 17 10 (36 )
Net changes in fair value of equity investments at fair value through other comprehensive<br>income 6, 21 47,476 (18,721 )
Total comprehensive income ~~W~~ 636,244 922,582
Earnings per share (in Won) 29
Basic earnings per share (in Won) 7,786 12,406
Diluted earnings per share (in Won) ~~W~~ 7,786 10,778

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

3

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POSCO HOLDINGS INC.

Interim condensed separate statements of changes in equity

for each of the three-month periods ended March 31, 2025 and 2024

(Unaudited)

(in millions of Won) Sharecapital Capitalsurplus AccumulatedOtherComprehensiveIncome (loss) Treasuryshares Retainedearnings Total
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 for the period — — — — 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 <br>at fair value through other comprehensive<br>income, 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 (Unaudited) ~~W~~ 482,403 1,370,557 (6,199 ) (1,889,658 ) 48,275,653 48,232,756
Balance as of January 1, 2025 ~~W~~ 482,403 1,367,990 (62,645 ) (1,550,862 ) 47,952,144 48,189,030
Comprehensive income:
Profit for the period — — — — 588,758 588,758
Other comprehensive income
Remeasurements of defined benefit plans, net of tax — — — — 10 10
Net changes in fair value of equity investments <br>at fair value through other comprehensive<br>income, net of tax — — 47,476 — — 47,476
Transactions with owners of the Company, recognized directly in equity:
Year-end dividends — — — — (189,052 ) (189,052 )
Retirement of treasury shares — — — 374,545 (374,545 ) —
Balance as of March 31, 2025 (Unaudited) ~~W~~ 482,403 1,367,990 (15,169 ) (1,176,317 ) 47,977,315 48,636,222

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

4

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POSCO HOLDINGS INC.

Interim condensed separate statements of cash flows

for each of the three-month periods ended March 31, 2025 and 2024

(Unaudited)

(in millions of Won) March 31, 2025(Unaudited) March 31, 2024(Unaudited)
Cash flows from operating activities
Profit for the period ~~W~~ 588,758 941,339
Adjustments for :
Expenses related to post-employment benefit 3,283 1,708
Depreciation 4,002 3,406
Amortization 431 399
Impairment loss on other receivables — 106
Finance income (31,585 ) (208,245 )
Dividend income (618,709 ) (850,028 )
Finance costs 3,485 41,381
Loss on disposal of property, plant and equipment 687 —
Gain on disposal of intangible assets — (54 )
Loss on disposal of intangible assets 6 18
Increase (decrease) to provisions 36 (54 )
Income tax expense 12,447 39,066
Others — (34 )
Changes in operating assets and liabilities (45,241 ) (40,877 )
Interest received 11,002 18,993
Dividends received 54,910 99,092
Income taxes paid (6,754 ) (8,262 )
Net cash provided by (used in) operating activities ~~W~~ (23,242 ) 37,954

(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, 2025 and 2024

(Unaudited)

(in millions of Won) March 31, 2025(Unaudited) March 31, 2024(Unaudited)
Cash flows from investing activities
Decrease in deposit instruments ~~W~~ 700,000 1,100,000
Proceeds from disposal of short-term financial instruments 728,328 1,928,280
Proceeds from disposal of equity securities — 194,230
Proceeds from disposal of other securities 2,469 2,321
Proceeds from disposal of investments in subsidiaries, associates and joint ventures 8,222 —
Increase in deposits (910,000 ) (1,000,000 )
Acquisition of short-term financial instruments (489,226 ) (1,727,199 )
Increase in long-term loans — (106 )
Acquisition of other securities (6,314 ) (3,112 )
Acquisition of investments in subsidiaries, associates and joint ventures (619 ) (276,766 )
Acquisition of investment properties — (1,200 )
Acquisition of property, plant and equipment (2,986 ) (1,777 )
Acquisition of intangible asstes (262 ) (1,386 )
Increase in long-term lease security deposits (466 ) (510 )
Net cash provided by investing activities ~~W~~ 29,146 212,775
Cash flows from financing activities
Increase in long-term financial liabilities 3,278 3,148
Payment of cash dividends (4 ) (6 )
Net cash provided by financing activities ~~W~~ 3,274 3,142
Effect of exchange rate fluctuation on cash held — —
Net increase in cash and cash equivalents 9,178 253,871
Cash and cash equivalents at beginning of the period 409,387 376,914
Cash and cash equivalents at end of the period ~~W~~ 418,565 630,785

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

6

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POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements

March 31, 2025 and 2024 (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, 2025, 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, 2024. 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, 2024. 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.

7

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POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

March 31, 2025 and 2024 (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.

(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.

8

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POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

March 31, 2025 and 2024 (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<br>assets 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, 2024.

Amendments to KIFRS 1021: Lack of Exchangeability

The amendments to KIFRS 1021 The Effects of Changes in Foreign Exchange Rates specify how an entity should assess whether a currency is exchangeable and how it should determine a spot exchange rate when exchangeability is lacking. The amendments also require the disclosure of information that enables users of its financial statements to understand how the currency that is not exchangeable into the other currency affects, or is expected to affect, the Company’s financial performance, financial position, and cash flows.

The amendments will be effective for annual reporting periods beginning on or after January 1, 2025. When applying the amendment, the Company is not required to restate comparative information

The amendments are not expected to have a material 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, 2025 and 2024 (Unaudited)

4. Trade Accounts and Notes Receivable

Trade accounts and notes receivable as of March 31, 2025 and December 31, 2024 are as follows:

(in millions of Won) March 31, 2025 December 31, 2024
Current
Trade accounts and notes receivable ~~W~~ 612,825 48,349
Unbilled receivables (contract assets) 161,784 130,473
Less: Allowance for doubtful accounts — —
~~W~~ 774,609 178,822

5. Other Receivables

Other receivables as of March 31, 2025 and December 31, 2024 are as follows:

(in millions of Won) March 31, 2025 December 31, 2024
Current
Other accounts receivable(*1) ~~W~~ 104,509 12,535
Others(*2) 23,937 13,301
Less: Allowance for doubtful accounts(*2) (4,438 ) (4,448 )
~~W~~ 124,008 21,388
Non-current
Loans(*2) ~~W~~ 246,986 247,569
Long-term other accounts receivable 17,093 14,585
Others 775 309
Less: Allowance for doubtful accounts(*2) (246,986 ) (247,569 )
~~W~~ 17,868 14,894
(*1) The Company includes the amounts to be collected from each domestic subsidiary in accordance with the<br>consolidated tax payment system.
--- ---
(*2) 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.
--- ---

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POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

March 31, 2025 and 2024 (Unaudited)

6. Other Financial Assets

(a) Other financial assets as of March 31, 2025 and December 31, 2024 are as follows:<br>
(in millions of Won) March 31, 2025 December 31, 2024
--- --- --- --- ---
Current
Deposit instruments 2,470,000 2,260,000
Short-term financial instruments 196,277 426,420
~~W~~ 2,666,277 2,686,420
Non-current
Equity securities 195,876 158,761
Other securities 266,518 263,059
Deposit instruments 2 2
~~W~~ 462,396 421,822
(b) Equity securities as of March 31, 2025 and December 31, 2024 are as follows:
--- ---
(in millions of Won) March 31, 2025 December 31,2024
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Number ofshares Ownership(%) Acquisitioncost Fairvalue Net changes infair value ofequity securities Bookvalue Bookvalue
Marketable equity securities
Nippon Steel Corporation(*1) 15,698,500 1.46 ~~W~~ — — — — —
CSN Mineracao S.A. 102,186,675 1.86 206,265 162,334 (43,931 ) 162,334 125,219
206,265 162,334 (43,931 ) 162,334 125,219
Non-marketable equity securities
PLANTEC Co., Ltd. 18,337,912 10.99 19,437 31,560 12,123 31,560 31,560
Intellectual Discovery Co.,Ltd. 200,000 6.00 5,000 1,350 (3,650 ) 1,350 1,350
Pos-HYUNDAI STEEl 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 33,542 5,749 33,542 33,542
~~W~~ 234,058 195,876 (38,182 ) 195,876 158,761
(*1) During the year ended December 31, 2024, the Company decided to dispose of the shares of Nippon Steel<br>Corporation and classified the equity security as assets held for sale (see Note 7).
--- ---

7. Assets Held for Sale

During the year ended December 31, 2024, the Company determined to sell its long-term investments in Nippon Steel Corporation and classified the equity security of ~~W~~467,796 million as assets held for sale in entirety. For the three-month period ended March 31, 2025, the Company conducted the revaluation of its equity interests and additionally classified ~~W~~24,622 million as assets held for sale.

11

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Notes to the interim condensed separate financial statements, continued

March 31, 2025 and 2024 (Unaudited)

8. Investments in Subsidiaries, Associates and Joint ventures

(a) Investments in subsidiaries, associates and joint ventures of as of March 31, 2025 and December 31,<br>2024 are as follows:
(in millions of Won) March 31, 2025 December 31, 2024
--- --- --- --- ---
Investment in subsidiaries ~~W~~ 42,779,572 42,787,174
Investment in associates 208,129 208,129
Investment in joint ventures 2,636,662 2,636,662
~~W~~ 45,624,363 45,631,965

There are no significant restrictions on the ability of subsidiaries, associates and joint ventures to transfer funds to the controlling company, such as in the forms of cash dividends and repayment of loans or payment of advances.

(b) Details of subsidiaries and carrying amounts as of March 31, 2025 and December 31, 2024 are as<br>follows:
(in millions of Won) March 31, 2025 December 31,2024
--- --- --- --- --- --- --- --- --- ---
Country Principal operations Ownership (%) Book value Book value
[Domestic]
POSCO Korea Steel, rolled products, and plates manufacturing and sales 100.00 ~~W~~ 29,918,622 29,918,622
POSCO INTERNATIONAL Corporation Korea Trading, power generation and natural resources exploration 70.71 3,740,020 3,740,020
POSCO Eco & Challenge Co., Ltd. Korea Engineering and construction 52.80 1,014,963 1,014,963
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 1,395,687 1,395,687
POSCO WIDE Co., Ltd. Korea Business facility maintenance 100.00 308,843 308,843
POSCO DX Korea Computer hardware and software distribution 65.47 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 hydroxide 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 Korea Nickel refining 60.00 49,520 49,520
POSCO ZT AIR SOLUTION Korea Manufacturing and Sales of High-Purity Rare Gases 75.10 63,481 63,481
Others 438,435 446,037
37,987,608 37,995,210
[Foreign]
POSCO WA PTY LTD Australia Iron ore sales and mine development 100.00 646,574 646,574
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.(*6) Vietnam Stainless steel manufacturing and sales 95.65 66,060 66,060
POSCO Asia Co., Ltd. Hong Kong Activities Auxiliary to financial service 100.00 117,690 117,690
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 <br>Processing Center Co., Ltd. China Steel manufacturing and sales 90.00 62,469 62,469
POSCO AFRICA (PROPRIETARY) LIMITED South Africa Mine development 100.00 50,297 50,297
POSCO Argentina S.A.U. Argentina Mineral exploration, manufacturing and sales 100.00 1,510,551 1,510,551
Others 242,685 242,685
4,791,964 4,791,964
~~W~~ 42,779,572 42,787,174

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Notes to the interim condensed separate financial statements, continued

March 31, 2025 and 2024 (Unaudited)

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

(c) Details of associates and carrying amounts as of March 31, 2025 and December 31, 2024 are as follows:<br>
(in millions of Won) March 31, 2025 December 31, 2024
--- --- --- --- --- --- --- ---
Country Principal operations Ownership (%) Book value Book value
[Domestic]
POSCO JK SOLID SOLUTION CO., LTD. Korea Material manufacturing for rechargeable battery 40.00 ~~W~~ 26,025 26,025
Others 12,111 12,111
38,136 38,136
[Foreign]
9404-5515 Quebec Inc.(*1) Canada Investments 12.61 156,194 156,194
Others 13,799 13,799
169,993 169,993
~~W~~ 208,129 208,129
(*1) As of March 31, 2025, the entity is classified as an associate since the Company has significant influence<br>over the investee although the Company’s percentage of ownership is less than 20%, considering the structure of the entity’s Board of Directors and others.
--- ---
(d) Details of joint ventures and carrying amounts as of March 31, 2025 and December 31, 2024 are as<br>follows:
--- ---
(in millions of Won) March 31, 2025 December 31, 2024
--- --- --- --- --- --- --- --- --- ---
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<br>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 49.00 541,471 541,471
Hydrogen Duqm LLC Oman Green Hydrogen/Ammonia<br>product business development 44.80 6,452 6,452
Nickel Mining Company SAS(*2) New<br>Caledonia Raw material manufacturing<br>and sales 49.00 — —
SNNC Korea STS material manufacturing<br>and sales 49.00 100,631 100,631
~~W~~ 2,636,662 2,636,662
(*1) As of March 31, 2025 and December 31, 2024, 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) As of December 31, 2024, due to continuous operating losses and a deteriorating business environment, the<br>Company assessed that the value in use of our equity interest in Nickel Mining Company SAS is likely to be low. Accordingly, the Company recognized a full impairment loss of ~~W~~189,197 million, which is the difference between<br>carrying amount and recoverable amount.
--- ---

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Notes to the interim condensed separate financial statements, continued

March 31, 2025 and 2024 (Unaudited)

9. Investment Property

Changes in the carrying amount of investment property for the three-month period ended March 31, 2025 and the year ended December 31, 2024 are as follows:

(a) For the three-month period ended March 31, 2025
(in millions of Won) Beginning Acquisitions Depreciation(*1) Transfer(*2) Ending
--- --- --- --- --- --- --- --- --- --- --- --- ---
Land ~~W~~ 216,211 — — (496 ) 215,715
Buildings 97,752 — (1,852 ) (498 ) 95,402
Structures 14,409 — (205 ) (74 ) 14,130
~~W~~ 328,372 — (2,057 ) (1,068 ) 325,247
(*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, 2024
--- ---
(in millions of Won) Beginning Acquisitions Depreciation(*1) Transfer(*2) Ending
--- --- --- --- --- --- --- --- --- --- --- ---
Land ~~W~~ 193,446 1,200 — 21,565 216,211
Buildings 101,229 — (7,378 ) 3,901 97,752
Structures 15,225 — (824 ) 8 14,409
~~W~~ 309,900 1,200 (8,202 ) 25,474 328,372
(*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.
--- ---

14

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Notes to the interim condensed separate financial statements, continued

March 31, 2025 and 2024 (Unaudited)

10. Property, Plant and Equipment

Changes in the carrying amount of property, plant and equipment for the three-month period ended March 31, 2025 and the year ended December 31, 2024 are as follows:

(a) For the three-month period ended March 31, 2025
(in millions of Won) Beginning Acquisitions Disposals Depreciation Others(*1) Ending
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Land ~~W~~ 45,151 — — — 496 45,647
Buildings 28,447 — — (495 ) 499 28,451
Structures 7,338 — (63 ) (101 ) 73 7,247
Machinery and equipment 29,821 180 (624 ) (1,071 ) — 28,306
Vehicles 44 — — (4 ) — 40
Furniture and fixtures 12,933 — — (274 ) — 12,659
Construction-in-progress 292,259 339 — — — 292,598
~~W~~ 415,993 519 (687 ) (1,945 ) 1,068 414,948
(*1) Presenting assets transferred to investment property.
--- ---
(b) For the year ended December 31, 2024
--- ---
(in millions of Won) Beginning Acquisitions Disposals Depreciation Others(*1) Ending
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Land ~~W~~ 50,197 4 — — (5,050 ) 45,151
Buildings 29,539 4,736 — (1,927 ) (3,901 ) 28,447
Structures 7,748 1 — (403 ) (8 ) 7,338
Machinery and equipment 27,549 5,161 (337 ) (2,552 ) — 29,821
Vehicles 63 — — (19 ) — 44
Furniture and fixtures 13,485 622 (4 ) (1,170 ) — 12,933
Construction-in-progress 69,206 239,567 — — (16,514 ) 292,259
~~W~~ 197,787 250,091 (341 ) (6,071 ) (25,473 ) 415,993
(*1) Presenting assets transferred from<br>construction-in-progress to other property, plant and equipment, assets transferred to investment property, and other expenses.
--- ---
(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, 2025 and December 31, 2024, 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, 2025 and 2024 are as follows:

(in millions of Won) March 31, 2025 March 31, 2024
Expenses related to short-term leases ~~W~~ 2,892 2,186
Expenses related to leases of low-value assets 1,646 1,449
~~W~~ 4,538 3,635

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Notes to the interim condensed separate financial statements, continued

March 31, 2025 and 2024 (Unaudited)

11. Intangible Assets

Changes in the carrying amount of intangible assets for the three-month period ended March 31, 2025 and the year ended December 31, 2025 are as follows:

(a) For the three-month period ended March 31, 2025
(in millions of Won) Beginning Acquisitions Disposals Amortization Others(*2) Ending
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Intellectual property rights ~~W~~ 803 — — (45 ) 56 814
Membership(*1) 10,072 — — — — 10,072
Development expense 3,461 — — (328 ) — 3,133
Construction-in-progress 6,680 261 (6 ) — (56 ) 6,879
Other intangible assets 445 — — (58 ) — 387
~~W~~ 21,461 261 (6 ) (431 ) — 21,285
(*1) Estimated useful life of membership is indefinite.
--- ---
(*2) Presenting assets transferred from<br>construction-in-progress to other intangible assets.
--- ---
(b) For the year ended December 31, 2024
--- ---
(in millions of Won) Beginning Acquisitions Disposals Amortization Others(*2) Ending
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Intellectual property rights ~~W~~ ~~~~ 576 — (4 ) (170 ) 401 803
Membership(*1) 11,618 — (1,546 ) — — 10,072
Development expense 2,905 — — (1,310 ) 1,866 3,461
Construction-in-progress 3,565 5,631 (249 ) — (2,267 ) 6,680
Other intangible assets 677 — — (232 ) — 445
~~W~~ 19,341 5,631 (1,799 ) (1,712 ) — 21,461
(*1) Estimated useful life of membership is indefinite.
--- ---
(*2) Presenting assets transferred from<br>construction-in-progress to intangible assets and assets transferred from property, plant and equipment, and others.
--- ---

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Notes to the interim condensed separate financial statements, continued

March 31, 2025 and 2024 (Unaudited)

12. Other Assets

Other assets as of March 31, 2025 and December 31, 2024 are as follows:

(in millions of Won) March 31, 2025 December 31, 2024
Current
Advance payments ~~W~~ 807 798
Prepaid expenses 801 917
~~W~~ 1,608 1,715
Non-current
Long-term advance payments ~~W~~ 7,375 5,325
Long-term prepaid expenses 452 488
Others 8 8
~~W~~ 7,835 5,821

13. Borrowings

(a) Borrowings as of March 31, 2025 and December 31, 2024 are as follows:
(in millions of Won) March 31, 2025 December 31, 2024
--- --- --- --- ---
Short-term borrowings
Exchangeable bonds ~~W~~ 40,648 39,053
Long-term borrowings
Long-term borrowings ~~W~~ 1,496 1,500

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Notes to the interim condensed separate financial statements, continued

March 31, 2025 and 2024 (Unaudited)

13. Borrowings (cont’d)

(b) Current portion of debentures as of March 31, 2025 and December 31, 2024 are as follows:

(in millions of Won) Lenders Issuancedate Maturitydate Annualinterest rate (%) March 31, 2025 December 31, 2024
Exchangeable bonds(*1) Foreign currency exchangeable bonds 2021.09.01. 2026.09.01. — ~~W~~ 40,648 39,053
(*1) The Company classified the exchangeable bonds as current liabilities in consideration of the investor’s<br>exchange right.
--- ---

(c) The issuance conditions of the exchangeable bonds issued by the Company are as follows:

Foreign currency exchangeable bonds
Type of bond Exchangeable bonds
Aggregate principal amount(*1) EUR 27,100,000
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(*2) (Won/share) 433,278
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 - 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
(*1) Due to put option exercised by bondholders, EUR 1,038,800,000 was redeemed out the total face value of<br>exchangeable bonds of EUR 1,065,900,000 during the year ended December 31, 2024.
--- ---
(*2) The exchange price has changed due to cash dividends paid during the three-month period ended March 31,<br>2025.
--- ---

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.

18

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Notes to the interim condensed separate financial statements, continued

March 31, 2025 and 2024 (Unaudited)

13. Borrowings (cont’d)

(d) Long-term borrowings and others excluding current portion, as of March 31, 2025 and December 31, 2024<br>are as follows:
(in millions of Won) Lenders Issuancedate Maturitydate Annualinterest rate (%) March 31, 2025 December 31, 2024
--- --- --- --- --- --- --- --- ---
Foreign borrowings KOREA ENERGY AGENCY 2011.12.27. 2026.12.26. 3 year<br>Government bond ~~W~~ 1,496 1,500

14. Other Payables

Other payables as of March 31, 2025 and December 31, 2024 are as follows:

(in millions of Won) March 31, 2025 December 31, 2024
Current
Accounts payable ~~W~~ 18,436 32,514
Accrued expenses 16,400 14,826
Dividend payable 192,064 3,016
~~W~~ 226,900 50,356
Non-current
Long-term withholdings 36,388 33,110
Less: Present value discount (2,171 ) (2,327 )
~~W~~ 34,217 30,783

15. Other Financial Liabilities

Other financial liabilities as of March 31, 2025 and December 31, 2024 are as follows:

(in millions of Won) March 31, 2025 December 31, 2024
Current
Financial guarantee liabilities ~~W~~ 20,192 18,302

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Notes to the interim condensed separate financial statements, continued

March 31, 2025 and 2024 (Unaudited)

16. Provisions

(a) Provisions as of March 31, 2025 and December 31, 2024 are as follows:

(in millions of Won) March 31, 2025 December 31, 2024
Current Non-current Current Non-current
Provision for bonus payments(*1) ~~W~~ 2,681 — 4,175 —
Provision for restoration(*2) 6,840 36 6,932 —
Others(*3) 35,161 — 35,161 —
~~W~~ 44,682 36 46,268 —
(*1) Represents the provision for bonuses with the limit of 100% of annual salaries for executives.<br>
--- ---
(*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, 2025 and December 31, 2024. In order to determine the estimated costs, the Company has assumed that it would use all of<br>technologies and materials available for now to recover the land. In addition, the Company has applied discount rates of 2.99% to assess present value of these costs.
--- ---
(*3) Considering the operational circumstance of the Company’s investments in joint ventures, Nickel Mining<br>Company SAS, the Company recognized ~~W~~35,161 million of the financial guarantee liabilities the Company provided as other provisions.
--- ---
(b) Changes in provisions for the three-month period ended March 31, 2025 and the year ended December 31,<br>2024 are as follows:
--- ---
1) For the three-month period ended March 31, 2025
--- ---
(in millions of Won) Beginning Increase Utilization Ending
--- --- --- --- --- --- --- --- --- ---
Provision for bonus payments ~~W~~ 4,175 2,057 (3,551 ) 2,681
Provision for restoration 6,932 36 (92 ) 6,876
Others 35,161 — — 35,161
~~W~~ 46,268 2,093 (3,643 ) 44,718
2) For the year ended December 31, 2024
--- ---
(in millions of Won) Beginning Increase Utilization Ending
--- --- --- --- --- --- --- --- --- ---
Provision for bonus payments ~~W~~ 6,055 9,087 (10,967 ) 4,175
Provision for restoration 11,562 1,819 (6,449 ) 6,932
Others — 35,161 — 35,161
~~W~~ 17,617 46,067 (17,416 ) 46,268

20

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Notes to the interim condensed separate financial statements, continued

March 31, 2025 and 2024 (Unaudited)

17. Employee Benefits

(a) Defined contribution plans

The expense related to defined contribution retirement plans for each of the three-month periods ended March 31, 2025 and 2024 are as follows:

(in millions of Won) March 31, 2025 March 31, 2024
Expense related to post-employment benefit plans under defined contribution plans ~~W~~ 44 43
(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, 2025 and December 31, 2024 are as follows:
--- ---
(in millions of Won) March 31, 2025 December 31, 2024
--- --- --- --- --- --- ---
Present value of funded obligations ~~W~~ 39,049 39,980
Fair value of plan assets (36,610 ) (38,684 )
Net defined benefit liabilities ~~W~~ 2,439 1,296
2) The amounts recognized in relation to net defined benefit plan in the interim condensed separate statements of<br>comprehensive income for each of the three-month periods ended March 31, 2025 and 2024 are as follows:
--- ---
(in millions of Won) March 31, 2025 March 31, 2024
--- --- --- --- --- --- ---
Current service costs ~~W~~ 3,312 1,793
Net interest costs (29 ) (85 )
~~W~~ 3,283 1,708

18. Other Liabilities

Other liabilities as of March 31, 2025 and December 31, 2024 are as follows:

(in millions of Won) March 31, 2025 December 31, 2024
Current
Advances received ~~W~~ 2,420 3,190
Withholdings 3,127 3,006
Unearned revenue 3,200 2,656
~~W~~ 8,747 8,852
Non-current
Unearned revenue ~~W~~ 2,171 2,327

21

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Notes to the interim condensed separate financial statements, continued

March 31, 2025 and 2024 (Unaudited)

19. 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 levels in the fair<br>value hierarchy as of March 31, 2025 and December 31, 2024 are as follows:
--- ---
① March 31, 2025
--- ---
(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~~ 196,277 — 196,277 — 196,277
Other securities 266,518 — — 266,518 266,518
Fair value through other comprehensive income
Equity securities 195,876 162,334 — 33,542 195,876
Assets held for sale 492,418 492,418 — — 492,418
Financial assets measured at amortized cost(*1)
Cash and cash equivalents 418,565 — — — —
Trade accounts and notes receivable 612,825 — — — —
Other receivables 136,685 — — — —
Deposit instruments 2,470,002 — — — —
~~W~~ 4,789,166 654,752 196,277 300,060 1,151,089
Financial liabilities
Fair value through profit or loss
Borrowings ~~W~~ 40,648 40,648 — — 40,648
Financial liabilities measured at amortized cost(*1)
Borrowings 1,496 — 1,496 — 1,496
Financial guarantee liabilities 20,192 — — — —
Others 256,190 — — — —
~~W~~ 318,526 40,648 1,496 — 42,144
(*1) Fair value of financial assets and liabilities measured at amortized cost approximates their carrying amounts.<br>
--- ---
② December 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~~ 426,420 — 426,420 — 426,420
Other securities 263,059 — — 263,059 263,059
Fair value through other comprehensive income
Equity securities 158,761 125,219 — 33,542 158,761
Assets held for sale 467,796 467,796 — — 467,796
Financial assets measured at amortized cost(*1)
Cash and cash equivalents 409,387 — — — —
Trade accounts and notes receivable 48,349 — — — —
Other receivables 28,833 — — — —
Deposit instruments 2,260,002 — — — —
~~W~~ 4,062,607 593,015 426,420 296,601 1,316,036
Financial liabilities
Fair value through profit or loss
Borrowings ~~W~~ 39,053 39,053 — — 39,053
Financial liabilities measured at amortized cost(*1)
Borrowings 1,500 — 1,500 — 1,500
Financial guarantee liabilities 18,302 — — — —
Others 76,376 — — — —
~~W~~ 135,231 39,053 1,500 — 40,553
(*1) Fair value of financial assets and liabilities measured at amortized cost approximates their carrying amounts.<br>
--- ---

22

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Notes to the interim condensed separate financial statements, continued

March 31, 2025 and 2024 (Unaudited)

19. Financial Instruments (cont’d)

2) Financial liabilities were recognized in connection with financial guarantee contracts as of March 31,<br>2025. Details of the amount of guarantees provided are as follows:
(in millions of Won) Guarantee limit Guarantee amount
--- --- --- --- --- --- --- --- --- --- --- ---
Guarantee beneficiary Financial institution Foreigncurrency Wonequivalent Foreigncurrency Wonequivalent
Subsidiaries
POSCO ASIA COMPANY LIMITED Credit Agricole USD 75,000,000 109,988 — —
ING USD 75,000,000 109,988 — —
Shinhan USD 50,000,000 73,325 — —
POSCO Argentina S.A.U. BNP USD 110,000,000 161,315 80,497,347 118,049
CITI USD 187,975,000 275,665 158,472,346 232,400
Credit Agricole USD 187,975,000 275,665 158,472,346 232,400
HSBC USD 187,975,000 275,665 158,472,347 232,400
JPM USD 187,975,000 275,665 158,472,347 232,400
BANK OF AMERICA USD 50,900,000 74,645 34,232,125 50,201
KEXIM USD 167,100,000 245,052 112,377,916 164,802
Joint ventures
NICKEL MINING COMPANY SAS SMBC EUR 46,000,000 73,041 46,000,000 73,041
USD 1,279,900,000 1,876,973 860,996,774 1,262,652
EUR 46,000,000 73,041 46,000,000 73,041
3) Finance income and costs by category of financial instrument for each of the three-month periods ended<br>March 31, 2025 and 2024 are as follows:
--- ---
① For the three-month period ended March 31, 2025
--- ---
(in millions of Won) Finance income and costs
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Interest income(expense) Gain and loss onforeign currency Gain and loss ondisposal Gain and losson valuation Others Total Othercomprehensiveincome
Financial assets at fair value <br>through profit or loss ~~W~~ — (229 ) 7,835 (1,097 ) — 6,509 —
Financial assets at fair value <br>through other comprehensive income — — — — — — 47,476
Financial assets measured at <br>amortized cost 21,674 274 — — — 21,948 —
Financial liabilities at fair value <br>through profit or loss — (1,513 ) — (81 ) — (1,594 ) —
Financial liabilities measured at <br>amortized cost (269 ) (245 ) — — 1,082 568 —
~~W~~ 21,405 (1,713 ) 7,835 (1,178 ) 1,082 27,431 47,476
② 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 Othercomprehensiveloss
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 )

23

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POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

March 31, 2025 and 2024 (Unaudited)

20. Share Capital and Capital Surplus

(a) Share capital as of March 31, 2025 and December 31, 2024 is as follows:

(in Won, except share information) March 31, 2025 December 31, 2024
Authorized shares 200,000,000 200,000,000
Par value ~~W~~ 5,000 5,000
Issued shares(*1,2) 80,932,952 82,624,377
Share capital(*3) ~~W~~ 482,403,125,000 482,403,125,000
(*1) As of March 31, 2025, total number of American Depository Receipts (ADRs) outstanding in overseas stock<br>market amounts to 10,776,164 and such ADRs are equivalent to 2,694,041 shares of common stock.
--- ---
(*2) Pursuant to the resolution of the Board of Directors’ meeting on February 19, 2025, the Company decided to<br>retire 1,691,425 shares using distributable profits, and it was completed on March 31, 2025. As a result, as of March 31, 2025, the Company’s total number of issued shares has decreased.
--- ---
(*3) As of March 31, 2025, the difference between the ending balance of common stock and the aggregate par<br>value of issued common stock is ~~W~~77,738 million due to retirement of 15,547,673 treasury stocks.
--- ---

(b) Capital surplus as of March 31, 2025 and December 31, 2024 are as follows:

(in millions of Won) March 31, 2025 December 31, 2024
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 16,331 16,331
~~W~~ 1,367,990 1,367,990

24

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POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

March 31, 2025 and 2024 (Unaudited)

21. Accumulated Other Comprehensive Income

Accumulated other comprehensive income as of March 31, 2025 and December 31, 2024 are as follows:

(in millions of Won) March 31, 2025 December 31, 2024
Changes in fair value of equity investments at fair value through other comprehensive<br>income ~~W~~ (15,169 ) (62,645 )

22. 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, 2025 and the year ended December 31, 2024 are as follows:

(shares, in millions of Won) March 31, 2025 December 31, 2024
Number of shares Amount Number of shares Amount
Beginning 7,003,598 ~~W~~ 1,550,862 8,695,023 ~~W~~ 1,889,658
Acquisition of treasury shares — — 255,428 92,311
Retirement of teasury shares (1,691,425 ) (374,546 ) (1,946,853 ) (431,107 )
Ending 5,312,173 ~~W~~ 1,176,316 7,003,598 ~~W~~ 1,550,862

23. 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, 2025 and 2024 are as follows:
(in millions of Won) March 31, 2025 March 31, 2024
--- --- --- --- ---
Types of revenue
Dividend income ~~W~~ 618,709 850,028
Others 45,988 48,710
~~W~~ 664,697 **** 898,738
Timing of revenue recognition
Revenue recognized at a point in time ~~W~~ 618,709 850,030
Revenue recognized over time 45,988 48,708
~~W~~ 664,697 **** 898,738

25

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POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

March 31, 2025 and 2024 (Unaudited)

23. Operating Revenue (cont’d)

(b) Details of contract assets and liabilities from contracts with customers as of March 31, 2025 and<br>December 31, 2024 are as follows:
(in millions of Won) March 31, 2025 December 31, 2024
--- --- --- --- ---
Receivables
Trade accounts and notes receivable ~~W~~ 612,825 48,349
Contract assets
Unbilled receivables 161,784 130,473
Contract liabilities
Advance received 2,420 3,190
Unearned income 5,371 4,983

24. Operating Expenses

Operating expenses for each of the three-month periods ended March 31, 2025 and 2024 are as follows:

(in millions of Won) March 31, 2025 March 31, 2024
Wages and salaries ~~W~~ 18,920 16,330
Expenses related to post-employment benefits 3,602 1,941
Other employee benefits 4,992 5,041
Travel 1,416 1,349
Taxes and public dues 45 417
Depreciation 2,835 2,807
Amortization 418 377
Rental 1,916 1,376
Repairs 131 209
Advertising 3,799 5,072
Research & development 35,025 32,532
Service fees 13,075 15,178
Supplies 84 208
Vehicles maintenance 614 728
Industry association fee 1,147 99
Training 68 179
Others 2,229 1,819
~~W~~ 90,316 85,662

26

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POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

March 31, 2025 and 2024 (Unaudited)

25. Finance Income and Costs

Details of finance income and costs for each of the three-month periods ended March 31, 2025 and 2024 are as follows:

(in millions of Won) March 31, 2025 March 31, 2024
Finance income
Interest income ~~W~~ 21,674 20,456
Gain on foreign currency transactions 130 1,181
Gain on foreign currency translations 721 6,242
Gain on disposal of financial assets at fair value through profit or loss 7,835 11,003
Gain on valuation of financial assets at fair value through profit or loss 272 26,065
Gain on valuation of financial liabilities at fair value through profit or loss — 144,001
Others 1,084 478
~~W~~ 31,716 209,426
Finance costs
Interest expenses ~~W~~ 269 —
Loss on foreign currency transactions 798 197
Loss on foreign currency translations 1,766 32,871
Loss on valuations of financial assets at fair value through profit or loss 1,369 —
Loss on valuation of financial liabilities at fair value through profit or loss 81 —
Loss on disposal of equity securities — 8,219
Others 2 293
~~W~~ 4,285 41,580

27

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POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

March 31, 2025 and 2024 (Unaudited)

26. Other Non-Operating Income and Expenses

Details of other non-operating income and expenses for each of the three-month periods ended March 31, 2025 and 2024 are as follows:

(in millions of Won) March 31, 2025 March 31, 2024
Other non-operating income
Reversal of other provisions — 54
Others 916 116
~~W~~ 916 170
Other non-operating expenses
Impairment loss on other accounts receivables ~~W~~ — 106
Loss on disposals of property, plant and equipment 687 —
Donations 500 —
Increase of other provisions 36 —
Others 300 580
~~W~~ 1,523 686

28

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POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

March 31, 2025 and 2024 (Unaudited)

27. 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, 2025 and 2024 are as follows (excluding finance costs and income tax expenses):

(in millions of Won) March 31, 2025 March 31, 2024
Employee benefits expenses 33,181 27,833
Depreciation(*1) 4,002 3,406
Amortization 431 399
Service fees 14,192 15,660
Rental 4,545 3,967
Advertising 3,799 5,072
Research & development 19,624 19,125
Other expenses 12,065 10,886
~~W~~ 91,839 86,348
(*1) Including depreciation of investment property.
--- ---

28. Income Taxes

The effective tax rates of the Company for each of the three-month periods ended March 31, 2025 and 2024 are 2.07% and 3.98%, 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). For the transfer gain, the Company simultaneously set provision for accelerated depreciation and recognized deferred tax liabilities.

Deductible temporary differences related to the investment in newly established company (POSCO), which arise from 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.

29

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Notes to the interim condensed separate financial statements, continued

March 31, 2025 and 2024 (Unaudited)

28. Income Taxes (cont’d)

(b) Application of the Consolidated Tax Payment System

From the three-month period ended March 31, 2025, the Company has applied the consolidated tax payment system, under which a controlling company and its domestic subsidiaries, when economically integrated, are treated as a single tax entity for corporate income tax purposes. Under this system, the controlling company, as the consolidated parent entity, is responsible for filing and paying the corporate income tax on behalf of the entire consolidated group. After payment, the parent company collects the corresponding tax amounts from each domestic subsidiary.

The current tax assets and current tax liabilities recognized in relation to the consolidated tax payment system for the three-month period ended March 31, 2025 and the year ended December 31, 2024 are as follows:

(in millions of Won) For the three-month periodended March 31, 2025 For the three-month periodended March 31, 2024
Current income tax assets (*1) ~~W~~ 27,945 27,940
Current income tax liabilities (*2) 90,035 —
(*1) Presenting the expected corporate income tax refund during the year ended December 31, 2024.<br>
--- ---
(*2) Presenting the amount calculated and recognized by applying the consolidated tax payment system during the<br>three-month period ended March 31, 2025.
--- ---
(c) Global minimum top-up tax
--- ---

In 2023, Pillar Two legislation has been enacted in the Republic of Korea, where the Company is domiciled, which is 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, 2025 as it is subject to global minimum top-up tax under the application of the OECD’s Pillar Two Model Rules via domestic legislation. The Company reviewed subsidiaries qualifying as taxpayer, including the Company, and, as a result, did not recognize any income tax expense for the three-month period ended March 31, 2025 as the impact of the global minimum top-up tax on the separate financial statements as of March 31, 2025 would not be significant. 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. Accordingly, it 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, 2025 and 2024 (Unaudited)

29. Earnings per Share

(a) Basic earnings per share for each of the three-month periods ended March 31, 2025 and 2024 are as follows:<br>
(in Won, except share information) March 31, 2025 March 31, 2024
--- --- --- --- ---
Profit for the period ~~W~~ 588,757,738,253 941,339,021,421
Weighted-average number of common shares outstanding(*1) 75,620,779 75,876,207
Basic earnings per share ~~W~~ 7,786 12,406
(*1) The weighted-average number of common shares outstanding used to calculate basic earnings per share is as<br>follows:
--- ---
(shares) March 31, 2025 March 31, 2024
--- --- --- --- --- --- ---
Total number of common shares issued 82,624,377 84,571,230
Weighted-average number of treasury shares (7,003,598 ) (8,695,023 )
Weighted-average number of common shares outstanding 75,620,779 75,876,207

The Company has exchangeable bonds that can be exchanged for common stocks with dilutive effects as of March 31, 2025 and December 31, 2024. The diluted earnings per share for the three-month period ended March 31, 2025 is the same as the basic earnings per share due to the anti-dilutive effect.

(b) Diluted earnings per share for the year ended December 31, 2024 is calculated as follows:<br>
(in Won, except share information) March 31, 2024
--- --- --- ---
Profit for the period ~~W~~ 941,339,021,421
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 per share 10,778
(*1) The adjusted weighted-average number of common shares outstanding used to calculate diluted earnings(loss) per<br>share is 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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Notes to the interim condensed separate financial statements, continued

March 31, 2025 and 2024 (Unaudited)

30. Related Party Transactions

(a) Related parties of the Company as of March 31, 2025 are as follows:
Type Company
--- ---
Subsidiaries [Domestic] <br>POSCO, POSCO Eco & Challenge Co., Ltd., POSCO STEELEON CO., Ltd, POSCO DX, POSCO Research Institute, POSCO WIDE<br>Co., Ltd., POSCO Capital, POSCO FUTURE M CO., LTD.,eNtoB Corporation, POSCO FLOW CO.,LTD., POSCO M-TECH, Busan E&E Co,. Ltd., POSCO INTERNATIONAL Corporation, POSCO Mobility Solution Corporation,<br>POSCO-Pilbara LITHIUM SOLUTION Co., Ltd., POSCO HY Clean Metal Co., Ltd., POSCO LITHIUM SOLUTION, Shinan Green Energy Co.,LTD., eSteel4U, QSONE Co.,Ltd., TANCHEON E&E, POSCO IH, POSCO A&C Co., Ltd, Posco Group University, POSCO GY Solution,<br>POSCO GYR Tech, POSCO GYS Tech, POSCO PR Tech, POSCO PS Tech, POSCO PH Solution, POSCO Humans Co.,Ltd., Pohang Scrap Recycling Distribution Center Co., Ltd., POSCO NIPPON STEEL RHF JOINT VENTURE.CO.,Ltd.,<br>Songdo Development PMC (Project<br>Management Company) LLC., NEH Co.,Ltd., POSCO CNGR Nickel Solution, POSCO-GS Eco Materials Co., Ltd, Korea Fuel Cell and others.<br> <br><br><br><br>[Foreign]<br> <br>POSCO America Corporation, POSCO AUSTRALIA PTY LTD.,<br>POSCO Asia Co., Ltd., POSCO (Zhangjiagang) Stainless Steel Co.,Ltd., POSCO-China Holding Corporation, POSCO JAPAN Co., Ltd., POSCO-VIETNAM Co., Ltd., POSCO MEXICO S.A. DE C.V., PT. KRAKATAU POSCO, YAMATO VINA STEEL JOINTSTOCK COMPANY, POSCO<br>Argentina S.A.U., Senex Holdings PTY LTD, ULTIUM CAM LIMITED PARTNERSHIP and others.
Investments in associates and joint ventures [Domestic]<br> <br>POSCO MC MATERIALS, Samcheok Blue<br>Power Co.,Ltd., SNNC, Gale International Korea, LLC, Eco Energy Solution, UITrans LRT Co., Ltd., Pohang Special Welding Co.,Ltd., and others.<br> <br><br><br><br>[Foreign]<br> <br>Roy Hill Holdings Pty Ltd, POSCO-NPS Niobium LLC, KOBRASCO, PT NICOLE METAL INDUSTRY, HBIS-POSCO Automotive Steel Co.,Ltd, South-East Asia Gas Pipeline Company Ltd., 9404-5515 Quebec Inc., AES Mong Duong Power Company Limited, KOREA LNG LTD.,<br>Nickel Mining Company SAS and others.
(b) Material transactions with related companies for each of the three-month periods ended March 31, 2025 and<br>2024 are as follows:
--- ---
1) For the three-month period ended March 31, 2025
--- ---
(in millions of Won) Sales and others(*1) Purchase and others
--- --- --- --- --- --- --- --- --- --- ---
Sales Dividends Others Purchase of fixedassets Others
Subsidiaries(*2)
POSCO ~~W~~ 39,437 332,858 — — 3,157
POSCO Eco & Challenge Co., Ltd. 2,230 11,037 — 208 —
POSCO STEELEON CO., Ltd 281 — — — —
POSCO DX 521 12,425 — 873 4,740
eNtoB Corporation — — — — 1,561
POSCO FUTURE M CO., LTD. 1,270 5,809 — — 20
POSCO INTERNATIONAL Corporation 1,666 192,814 161 — —
Busan E&E Co,. Ltd. — 3,618 — — —
POSCO America Corporation — — — — 1,931
Others 1,387 — 1,026 — 4,275
46,792 558,561 1,187 1,081 15,684
Associates and joint ventures(*2)
Roy Hill Holdings Pty Ltd — 50,201 — — —
Others 220 9,885 59 — —
220 60,086 59 — —
~~W~~ 47,012 618,647 1,246 1,081 15,684
(*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, 2025, the Company provided payment guarantees to the related parties (see Note 19).<br>
--- ---

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Notes to the interim condensed separate financial statements, continued

March 31, 2025 and 2024 (Unaudited)

30. Related Party Transactions (cont’d)

2) 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 Corporation 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 the related parties (see Note 19).<br>
--- ---
(c) The balances of receivables and payables arising from significant transactions between the Company and the<br>related parties as of March 31, 2025 and December 31, 2024 are as follows:
--- ---
1) March 31, 2025
--- ---
(in millions of Won) Receivables Payables
--- --- --- --- --- --- --- --- --- --- --- --- ---
Trade accountsand notesreceivable Others Total Accountspayable Others Total
Subsidiaries
POSCO ~~W~~ 460,447 95,018 555,465 1,664 40,109 41,773
POSCO Eco & Challenge Co., Ltd. 22,188 — 22,188 144 498 642
POSCO STEELEON CO., Ltd 1,407 — 1,407 — — —
POSCO DX 14,376 144 14,520 1,665 1,427 3,092
POSCO FUTURE M CO., LTD. 16,708 — 16,708 — 55 55
POSCO Mobility Solution Corporation 1,002 — 1,002 — 7 7
POSCO INTERNATIONAL Corporation 201,144 — 201,144 — 363 363
POSCO Argentina S.A.U — 29,242 29,242 — — —
Others 4,099 240 4,339 751 2,291 3,042
721,371 124,644 846,015 4,224 44,750 48,974
Associates and joint ventures
SNNC 827 — 827 — — —
Roy Hill Holdings Pty Ltd 50,201 — 50,201 — — —
FQM Australia Holdings Pty Ltd(*1) — 248,966 248,966 — — —
Others 273 127 400 — — —
51,301 249,093 300,394 — — —
~~W~~ 772,672 373,737 1,146,409 4,224 44,750 48,974
(*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.
--- ---

33

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Notes to the interim condensed separate financial statements, continued

March 31, 2025 and 2024 (Unaudited)

30. Related Party Transactions (cont’d)

2) December 31, 2024
(in millions of Won) Receivables Payables
--- --- --- --- --- --- --- --- --- --- --- --- ---
Trade accountsand notesreceivable Others Total Accountspayable Others Total
Subsidiaries
POSCO ~~W~~ 102,071 1,093 103,164 5,854 36,111 41,965
POSCO Eco & Challenge Co., Ltd. 8,921 — 8,921 — 499 499
POSCO STEELEON CO., Ltd 1,126 — 1,126 — — —
POSCO DX 1,561 — 1,561 2,667 535 3,202
POSCO FUTURE M CO., LTD. 15,364 — 15,364 — 65 65
POSCO Mobility Solution Corporation 802 — 802 — 6 6
POSCO INTERNATIONAL Corporation 6,664 — 6,664 — 364 364
POSCO Argentina S.A.U — 26,002 26,002 768 — 768
Others 3,274 231 3,505 7,873 311 8,184
139,783 27,326 167,109 17,162 37,891 55,053
Associates and joint ventures
SNNC 662 — 662 — — —
Roy Hill Holdings Pty Ltd 25,023 — 25,023 — — —
FQM Australia Holdings Pty Ltd(*1) — 249,560 249,560 — — —
Others 10,665 122 10,787 — — —
36,350 249,682 286,032 — — —
~~W~~ 176,133 277,008 453,141 17,162 37,891 55,053
(*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.
--- ---
(d) For each of the three-month periods ended March 31, 2025 and 2024, there were additional<br>investments in subsidiaries and others amounting to ~~W~~619 million and ~~W~~276,766 million, respectively.
--- ---
(e) For each of the three-month periods ended March 31, 2025 and 2024, details of compensation to key<br>management officers are as follows:
--- ---
(in millions of Won) March 31, 2025 March 31, 2024
--- --- --- --- ---
Short-term benefits ~~W~~ 6,770 4,915
Retirement benefits 2,361 889
~~W~~ 9,131 5,804

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.

34

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Notes to the interim condensed separate financial statements, continued

March 31, 2025 and 2024 (Unaudited)

31. Commitments and Contingencies

(a) Commitments
1) As of March 31, 2025, 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 fails. 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, 2025, the ending balance of borrowing amounts to USD 1.02 million.
--- ---
2) The Company has deposited 85,083 treasury shares for exchange with the Korea Securities Depository in relation<br>to foreign currency exchangeable bonds as of March 31, 2025.
--- ---
(b) As of March 31, 2025, 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 contract payment amounting to ~~W~~500 million as defendant as of March 31, 2025. However, the Company has not recognized any provisions for these litigation cases since the Company does not believe it has a present obligation as of March 31, 2025.

(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.
(e) As of March 31, 2025, the Company has been provided a payment guarantee of<br>~~W~~8,887 million from Seoul Guarantee Insurance in relation to license guarantees and others.
--- ---
(f) As of March 31, 2025, the Company has entered into a credit line agreement with Woori Bank, with a limit<br>of ~~W~~20,000 million.
--- ---

35

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Notes to the interim condensed separate financial statements, continued

March 31, 2025 and 2024 (Unaudited)

32. Cash Flows from Operating Activities

Changes in operating assets and liabilities for each of the three-month periods ended March 31, 2025 and 2024 are as follows:

(in millions of Won) March 31, 2025 March 31, 2024
Trade accounts and notes receivable ~~W~~ (31,290 ) (31,174 )
Other accounts receivable 2,084 13,525
Prepaid expenses 152 (3,951 )
Other current assets (8 ) (234 )
Other non-current assets — (5,248 )
Other accounts payable (13,666 ) (7,121 )
Accrued expenses 1,573 803
Advances received (770 ) 873
Withholdings 122 (1,421 )
Unearned revenue 275 1,063
Other current liabilities (1,586 ) (3,949 )
Payments of severance benefits (4,549 ) (5,865 )
Plan assets 2,422 1,822
~~W~~ (45,241 ) (40,877 )

33. Events after the reporting period

(a) On May 7, 2025, the Company issued senior unsecured foreign bonds (Global Bonds) with a total issuance<br>amount of USD 700 million, consisting of USD 400 million with a five-year maturity and USD 300 million with a ten-year maturity. The coupon rates are 5.125% for the five-year bonds and 5.750% for the ten-year bonds.<br>
(b) Pursuant to the resolution of the Board of Directors on May 31, 2025, the Company decided to increase<br>capital in its subsidiaries to strengthen their financial soundness. The capital injections are as follows: ~~W~~525.6 billion to POSCO FUTURE M CO., LTD, ~~W~~ 328 billion to POSOCO-Pilbara LITHIUM SOLUTION<br>Co., Ltd., and ~~W~~ 69 billion to POSCO-GS Eco Materials Co., Ltd.
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(c) Pursuant to the resolution of the Board of Directors on May 13, 2025, the Company decided to pay interim<br>cash dividends of ~~W~~2,500 per common share (total dividends: ~~W~~189.1 billion).
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36

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