Equibles

6-K

POSCO HOLDINGS INC. (PKX)

6-K 2024-12-12 For: 2024-12-12
View Original
Added on April 08, 2026

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OFFOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR15D-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

For the month of December, 2024

Commission File Number: 1-13368

POSCO HOLDINGS INC.

(Translation of registrant’s name into English)

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

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☒       Form 40-F ☐

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

Exhibit 99.1: An English-language translated documents of POSCO HOLDINGS INC.’s Q3 Quarterly Report for the year 2024.

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: December 12, 2024 By /s/ Kim, Seung-Jun
(Signature)
Name: Kim, Seung-Jun
Title:  Executive Vice President

EX-99.1

Table of Contents

Exhibit 99.1

LOGO

QUARTERLY REPORT

(From January 1, 2024 to September 30, 2024)

THIS IS AN ENGLISH TRANSLATION OF THE QUARTERLY 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.

Table of Contents

QUARTERLY REPORT

(From January 1, 2024 to September 30, 2024)

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

2

Table of Contents

TABLE OF CONTENTS

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

3

Table of Contents

I. OVERVIEW

Company Overview part is omitted on the quarterly report. Please refer to our Annual Report(20-F) disclosed on April 29, 2024 or summarized version of Interim Report disclosed on August 30, 2024.

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

4

Table of Contents

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), Secondary Battery Materials, and Others.

B. Summary of Financial Status of Segment

(In millions of KRW)
Business Segment 2024. Q3 2023 2022
Sales Operating<br>Income (Loss) Sales Operating<br>Income (Loss) Sales Operating<br>Income (Loss)
Steel 46,562,149 1,302,518 63,538,698 2,556,779 70,649,647 3,236,220
Infrastructure (Trading) 32,603,664 962,342 42,943,752 1,133,512 49,589,760 872,279
Infrastructure (Construction) 7,476,170 128,144 10,267,503 197,352 8,885,491 293,344
Infrastructure (Logistics and etc.) 3,043,264 126,303 3,945,953 202,010 7,425,508 377,919
Secondary Battery Materials 3,068,807 -74,531 4,821,886 -161,334 3,388,760 143,452
Others 1,542,838 1,183,909 1,562,214 1,106,332 1,169,536 843,682
Total 94,296,892 3,628,685 127,080,006 5,034,651 141,108,702 5,766,896
* It is based on aggregated basis including internal transactions among affiliates .
--- ---
* 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.).
--- ---
* The former ‘Green Instrastructure’ segment was renamed as ‘Infrastructure’ and former<br>‘Green Materials and Energy Segment’ was renamed as ‘Secondary Battery Materials’ followed by internal reorganization in April 2024.
--- ---

5

Table of Contents

2. Business Status of Segments

A. Steel

There are 84 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 of Business

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.

As of September 2024, the cumulative global crude steel production saw a slight decrease compared to the same period last year. This was primarily driven by prolonged downturn in China’s real estate sector and the delayed recovery of demand industries.

Global Crude Steel Production

(Millions of Tons, %)
Crude Steel Production 2024. Q3 2023 2022
Global 1,394 1,850 1,832
Korea<br><br><br>(Ratio) 48<br> <br>(3.5 %) 67<br> <br>(3.6 %) 66<br> <br>(3.6 %)
Source: World Steel Association (www.worldsteel.org)
---

The steel industry is affected by the business cycle and the ups and downs of the demand industry.

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

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

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

6

Table of Contents

The company plans to upgrade its customer and market structure by expanding its high value-added Premium Plus products, while responding to customers’ diverse needs and developing hydrogen-reduced steel HyREX technology in line with the global low-carbon trend.

In the steel industry, automobiles, shipbuilding, and construction are the main demand industries, and steel products are used as raw materials for these demand industries. In terms of sales, the proportion of domestic sale is 52% of total sales and export sales are around 48%, and by export region, the proportion of Southeast Asia, Japan, Europe and China is high. POSCO maintains order based production and sales system, and to secure stable sales, the proportion of direct sales to customers in domestic sales is maintained at about 60%.

POSCO continues to strive to strengthen its competitiveness in the midst of rapidly changing business environments such as the transition to a low-carbon eco-friendly era, accelerating technological innovation, and strengthening ESG management. The company’s competitive advantages include followings:

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

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

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

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 established ESG committee and audit committee to support ESG governance and strengthen its external communication with interested parties.

(2) Market Share

(Millions of Tons, %)
Category 2024.Q3 2023 2022
Production Market share Production Market share Production Market share
Crude Steel Production 48 100 % 67 100 % 66 100 %
POSCO 26 54 % 36 53 % 34 52 %
Others 22 46 % 31 47 % 32 48 %
Source: World Steel Association (www.worldsteel.org)
---

7

Table of Contents

∎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.

∎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.

POSCO M-TECH is currently processing POSCO’s coil packing, and trying to apply new packaging technology, commercialize environmentally friendly packaging alternatives, and globalize the competitiveness of the packaging business in order to ensure that the coil packaging business continues as the company’s stable sales base in the future.

(2) 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.

8

Table of Contents

(3) Market Share

(Tons)

Category 2024.Q3 2023 2022
Sales Volume Market share Sales Volume Market share Sales Volume Market share
POSCO M-TECH 27,714 43.3 % 31,984 44.7 % 31,245 44.0 %
PJ Metal 36,359 56.7 % 39,600 55.3 % 39,700 56.0 %
Total 64,073 100.0 % 71,584 100.0 % 70,945 100.0 %
It is difficult to calculate exact market share of Aluminum deoxidizers as total production and sales volume of<br>the domestic market are not counted.
---

B. Infrastructure [Trading segment]

There are 39 subsidiaries in trading segment including POSCO International, 27 subsidiaries in construction segment including POSCO E&C and 14 subsidiaries of logistics and etc. segment including POSCO Flow and POSCO DX.

∎POSCO INTERNATIONAL

(1) Market Share

POSCO International’s export performance in the third quarter of 2024 was $6.6 billion based on a customs clearance basis, down 6.41% from the previous quarter. Korea’s overall export performance increased 9.05% quarter-on-quarter, and the company’s performance to Korea’s total performance was 1.29%.

(Millions of US Dollars)
Category 2024.Q3 2023.Q3 Growth Rate
All Trading Companies in Korea 508,670 464,102 9.60 %
POSCO International Corp. 6,569 7,019 -6.41 %
Source: Korea International Trade Association (www.kita.net)
---

(2) Summary of Businesses

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

POSCO International and its consolidated subsidiaries engage in two major businesses: trading(trading and steel/food resource related investment) and energy.

9

Table of Contents

[Global Trading Sector]

- Steel/Mobility business: As a member of the POSCO Group, POSCO International is striving to expand its<br>business areas and create synergies by collaborating with group companies in various sectors such as steel, construction, secondary battery materials, IT, and more. POSCO International is also focusing on<br>eco-friendly business to actively expand into the eco-friendly energy industry, including solar and wind power, as well as the mobility market. In the EV materials area,<br>POSCO International is enhancing its role in securing stable raw material procurement by establishing a supply chain for graphite and other materials.
- Motor core business: Together with POSCO Mobility Solution which is a subsidiary of POSCO International,<br>POSCO International started engaging into motor core business for EV. It is expected to expand motor core production to 7 million by 2030.
--- ---
- Palm farm in Indonesia: POSCO International is developing a palm plantation in Indonesia and gradually<br>expanding sales by establishing a local palm oil production system. In December 2022, another CPO (Crude Palm Oil) mill, enabling the production of approximately 250,000 tons of CPO annually is newly established, and the company is pursuing<br>environmentally friendly palm farming through RSPO certification.
--- ---
- Ambatovy Nickel Mine Project: POSCO International has been participating in the Ambatovy Nickel Mine<br>Project, the world’s third-largest nickel mine in the mineral resource development project with a 6.1% stake. In addition, POSCO International is searching for new opportunities in EV battery material business.
--- ---
- 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.
--- ---

[Energy Sector]

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

- Myanmar Gas Field business : Since its production of the first gas in July 2013, gas fields supplies an<br>average of approximately 500 million standard cubic feet of gas per day. In addition, through the second phase of development undertaken to maintain stable gas production, the addition of seven gas production wells was successfully completed in<br>August 2022. In addition, from February 2021, as part of the third phase of the development project, the construction of the gas boosting platform EPCIC for the production of low-pressure gas in the reservoir<br>was completed in December 2023. In order to maintain the current level of production capacity, POSCO International plans to drill three additional production wells in two deep-sea fields and one additional<br>production well in a shallow-sea field. Furthermore, it will install processing facilities on subsea pipelines and existing platform.

10

Table of Contents
- 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>
- Onshore gas business in Australia : Senex Energy, an energy company based in Brisbane on the eastern<br>coast of Australia, was acquired in 2022 to expand the energy business hub. Senex Energy produces natural gas from onshore fields in eastern Australia, supplying it to the domestic Australian market and overseas export LNG liquefaction plants. Prior<br>to the acquisition, Senex Energy recorded a natural gas production volume of 19.6 PJ and an operating profit of AUD 26 million in 2021. In 2023, the company achieved a production volume of 26.9 PJ and an operating profit of AUD 58 million<br>(approximately KRW 53 billion). In July 2022, recognizing the strong international oil prices and the shortage of domestic gas supply in eastern Australia as an opportune time to increase gas production, the company initiated further development for<br>production expansion. The expansion development aims to establish a production capacity of 60 PJ, tripling the production compared to the acquisition time, by the end of 2025.
--- ---
- The by-product gas power plant in Indonesia
--- ---

The by-product gas power plant facility, which was completed in 2014, is equipped with a capacity of 200 MW. It produces electricity using by-product gas generated by integrated steelworks in Indonesia. It currently generates electricity that can be used by about 600,000 households as of 2024.

- Onshore wind power generation project

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

[New business investment]

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

B. Infrastructure [Construction segment]

∎POSCO E&C

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

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

11

Table of Contents

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

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

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

Housing demand is shrinking after a sharp rate hike, and number of unsold households are increasing around areas where supply has been concentrated. Recently, concerns have been growing that new orders will shrink as funding has been suspended due to the financial market crunch.

Recently, interest rates and construction costs have risen, leading to a sharp decline in new orders and a decrease in existing home transactions. Although government deregulation and interest rate freezes are causing a rebound in transaction prices and volumes, the housing market is significantly influenced by psychological factors. Therefore, it is crucial to closely monitor global key issues and various economic indicators.

Housing market conditions rapidly deteriorated due to sudden interest rate increases, rising construction costs, and a slump in the construction PF market. In terms of overseas market, domestic construction companies have entered Southeast Asia, where urbanization is actively underway, but for now, construction companies’ risk management is expected to be the top priority due to growing economic uncertainties around the world.

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

POSCO E&C pursues to be developer that undertakes high value-added, self-development projects. Additionally, considering the market trends towards a super-aged society, POSCO E&C intends to expand product portfolio by entering the senior residence business and other senior-related projects.

12

Table of Contents

B. Infrastructure [Logistics and etc. segment]

∎POSCO DX

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

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

C. Secondary Battery Materials

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

∎POSCO Future M

[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. The domestic refractory<br>industry achieved continuous growth until the mid-1990s alongside the development of the heavy chemical industry, leading to increased productivity through facility investments and enabling both quantitative<br>and qualitative growth. However, the industry has been facing unlimited competition due to reduced operational rates caused by excess capacity among global refractory companies and the influx of low-priced<br>Chinese products. Therefore, it is imperative to secure extreme cost competitiveness and develop high value-added products to enhance competitiveness in the global market.
- 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.
--- ---

13

Table of Contents

[Energy material business]

In the energy material business, POSCO Future M provides cathode and anode materials which are the main components for secondary cell: cathode, anode, electrolyte and separation membrane.

The secondary battery market for electric vehicles is expected to grow due to China’s strong electric vehicle industry development policy, European CO2 emission regulations, and global OEMs’ proportion of electric vehicle. With the increasing trend in the proportion of electric vehicle (EV) models, the EV penetration rate is expected to rise from 16% in 2023 to approximately 50% by 2030. EV sales reached 14.07 million units in 2023 and are projected to grow to 16.41 million units in 2024 and 40.7 million units by 2030. This indicates that secondary battery businesses would significantly benefit from this growth.

POSCO Group has established full battery material value chain from raw materials business to battery materials and recycling business. As the only domestic producer of graphite-based anode materials, which are considered to have the highest degree of difficulty in achieving independence from Chinese imports, POSCO Future M is expected to expand its sales revenues in working with global automakers and battery producers.

In specific, POSCO Future M established a joint venture (Ulium CAM) with GM in August 2022 to begin construction of high nickel cathode plant in Canada with a production capacity of a 30 thousand ton per year.

It is planned to be completed in the second half of 2025 and to start production in the first half of 2026.

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.

14

Table of Contents

3. Key Products

A. Sales of Key Products (2024.Q3)

(Inhundred millions of KRW, %)

BusinessArea Item Specific Use Total Sales Ratio
Steel Hot-rolled Product (HR) Steel pipe, Shipbuilding, etc. 94,768 20.40%
Cold-rolled Product (CR) Automobile , Home appliances, etc. 152,707 32.80%
Stainless Steel Products Tableware, pipes, etc. 78,039 16.80%
Others Plates, Wire rods, etc. 140,107 30.10%
Gross Sum 465,621 100.00%
Deduction of Internal Trade -171,253
Sub Total 294,368
Infrastructure Trading Steel, Metal 242,569 56.30%
Chemical, Strategic Item, Energy 48,271 11.20%
Others 35,196 8.20%
Construction Architecture (Domestic) 36,755 8.50%
Plant (Domestic) 17,073 4.00%
Civil Engineering (Domestic) 7,645 1.80%
Others (Domestic) 2,025 0.50%
Overseas Construction 6,898 1.60%
Owned Construction 1,617 0.40%
Others 2,749 0.60%
Logistics and etc. Others 30,433 7.10%
Gross Sum 431,231 100.00%
Deduction of Internal Trade -200,564
Sub Total 230,667
Secondary Gross Sum 30,688 100.00%
Battery Deduction of Internal Trade -7,469
Materials Sub Total 23,219
Others Gross Sum 15,429 100.00%
Deduction of Internal Trade -14,853
Sub Total 576
Total Sum 548,830

B. Price Movement Trends of Key Products

(In thousands of KRW/ Tons, KRW/kWh)

BusinessSegment Products 2024.Q3 2023 2022
Steel Hot-rolled Product (HR) 931 967 1,105
Cold-rolled Product (CR) 1,157 1,157 1,293
Infrastructure Electric Power 160 205 224
Secondary Battery Materials Refractory 984 991 1,022
Lime 141 147 117
Above price movement trend of steel segment in 2022 is based on the price between March 1 to<br>December 31, 2022 (HR and CR price in 2022 is 1,163 and 1,300 thousand won)
---
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
---

15

Table of Contents

[Steel]

(1) Criteria for Calculation

(a) Subjects for Calculation: Unit sales prices of the standard hot-rolled<br>product and cold-rolled product
(b) Calculation Method and Unit: The average price of each product based on its total sales including the freight<br>costs during the given period.
--- ---

(2) Factors of Price Changes

In the third quarter of 2024, global prices continued to decline due to the global tightening stance and the prolonged sluggishness of demand industries such as construction.

[Infrastructure (Trading)]

(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<br>
--- ---

(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<br>

[Secondary Battery Materials]

(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<br>costs during the given period.
--- ---

(2) Factors of Price Changes

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

16

Table of Contents

4. Major Raw Materials

A. Current Status of Major Raw Materials

(In hundred millions of KRW)
Business Segment Type ofPurchase Item Specific Use PurchaseAmount<br>(Portion, %) Portion (%) Remarks
Raw<br>Materials Materials for<br> <br>Iron-making Iron Ore for<br> Blast<br>Furnaces 135,440 63.9 % Iron Ore, Coal
Steel Sub-materials Sub-materials<br> for<br>Iron-making,<br><br><br>Steelmaking 40,861 19.3 % Iron Material, Alloy Iron,<br> <br>Non-ferrous Metal,<br><br><br>Limestone, etc.
Stainless Steel<br>Materials Key<br> Materials for<br>STS<br>Production 35,518 16.8 % Nickel, Ferrochrome,<br>STS Scrap Iron, etc.
Infrastructure Trading Raw<br>Materials LNG Material for<br>Power<br>Generation 14,781 100.0 % —
Construction Raw<br>Materials Ready-mixed<br>Concrete Construction<br>of Structure 2,498 19.8 % —
Steel<br> <br>Reinforcement Strengthening<br>Concrete 1,832 14.5 % —
Cable Electricity<br>Transfer 115 0.9 % —
Steel Pile Foundation<br>of Structure 24 0.2 % —
Others Construction<br>of Pipe and<br>Structure etc. 8,164 64.6 % —
Logistics<br>and etc. Raw<br>Materials Others For other use 6,892 100.0 % —
Secondary Battery Materials Raw<br>Materials NCM and etc. Production of<br>cathode<br>materials 14,194 88.3 % —
Graphite and<br>etc. Production of<br> <br>anode<br>materials 461 2.9 % —
Limestone and<br>etc. Production of<br>Lime 821 5.1 % —
Others Production of<br>refractory 597 3.7 % —
* Amount: CIF + customs duties + stevedoring fees + other incidental expenses
--- ---

17

Table of Contents

B. Price Movement Trends of Major Raw Materials

(In thousands of KRW)

Business Segment Category 2024.Q3 2023 2022
Steel Iron Ore(per ton) 137 145 143
Coal(per ton) 343 387 472
Scrap Iron(per ton) 510 526 605
Nickel(per ton) 23,110 28,043 33,147
Infrastructure Trading LNG<br><br><br>(per ton) 1,050 1,428 1,594
Construction Ready-mixed Concrete<br><br><br>(per m^3^) 90 85 77
Steel Pile<br><br><br>(per m) 192 165 180
Steel Reinforcement<br><br><br>(per kg) 0.9 0.9 1.0
Cable<br><br><br>(per m) 1.0 0.9 0.9
Secondary Battery Materials Refractory<br><br><br>(per ton) 405 334 479
Limestone<br><br><br>(per ton) 25 24 22
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
---

[Steel]

Price Movement Trend of Major Raw Materials

(1) Iron Ore : The price of iron ore in Q3 2024 recorded a 12% decrease compared to the previous quarter, reaching U$89 per ton, due to pressure on mill margins resulting from weak demand for steel products, an increase in Chinese port inventories, and the seasonal off-peak period.

(In US Dollars/ Tons)
’24.Q3 ’24.Q2 ’24.Q1 ’23.Q4 ’23.Q3 ‘23.Q2 ‘23.Q1 ‘22.Q4 ‘22.Q3 ‘22.Q2 ‘22.Q1
89 101 113 117 106 102 118 90 94 126 132

18

Table of Contents

(2) Coal : In the third quarter of 2024, the coal price recorded a 13% decrease compared to the previous quarter, reaching U$211 per ton. This decline was due to the prolonged monsoon season (starting in June) leading to weak demand in India until the end of September, along with a reduction in overall demand due to the global slowdown in the steel industry.

(In US Dollars/ Tons)
’24.Q3 ’24.Q2 ’24.Q1 ’23.Q4 ’23.Q3 ‘23.Q2 ‘23.Q1 ‘22.Q4 ‘22.Q3 ‘22.Q2 ‘22.Q1
211 242 308 334 264 243 344 278 250 446 488

(3) Scrap : Iron scrap prices decreased 3% quarter-on-quarter to U$364/ton in the third quarter of 2024, driven by reduced demand for steel scrap resulting from weak market conditions in the East Asia region.****

(In US Dollars/ Tons)
’24.Q3 ’24.Q2 ’24.Q1 ’23.Q4 ’23.Q3 ‘23.Q2 ‘23.Q1 ‘22.Q4 ‘22.Q3 ‘22.Q2 ‘22.Q1
364 376 392 385 385 403 438 387 394 531 562

(4) Nickel : Nickel: In the third quarter of 2024, the nickel price recorded a 12% decrease compared to Q2, reaching U$16,259 per ton. This decline was due to a continued increase in LME inventories and the resolution of factors that had previously driven up prices in the second quarter, such as sanctions on Russian nickel and disturbances in New Caledonia.

(In US Dollars/lb, US Dollars/Tons)
’24.Q3 ’24.Q2 ’24.Q1 ’23.Q4 ’23.Q3 ‘23.Q2 ‘23.Q1 ‘22.Q4 ‘22.Q3 ‘22.Q2 ‘22.Q1
7.37 8.35 7.53 7.83 9.23 10.12 11.79 11.48 10.01 13.13 11.98
16,259 18,415 16,589 17,247 20,344 22,308 25,983 25,292 22,063 28,940 26,395
LME : London Metal Exchange
---

19

Table of Contents

[Infrastructure]

(1) Criteria for Calculation

Business Sector Products Criteria for Calculation Factors of Price Changes
Trading LNG Average purchase price and LNG direct purchase price of Korea Gas Corporation Cost of Korea Gas Corporation (cost consists of introduction cost, supply cost, etc. and is affected by crude oil, exchange rate, etc.)
Construction Ready-mixed Concrete Standard 25-210-15 Price increase due to changes in the agreed price of the Seoul metropolitan area (From Feb 1, 2024)
Steel Pile SPIRAL,609.6,12T,STP275,KS F 4602,STEEL PILE Unit price change due to increase of raw material (coil) price
Steel Reinforcement SD400 10mm Decrease of the raw materials price (scrap)
Cable TFR-3, 0.6/1KV, 2.5SQ, 2C Increase of the raw materials price

[Secondary Battery Materials]

(1) Criteria for Calculation

  • Refractory and lime: Purchase prices including freight costs

(2) Factors of Price Changes

  • Refractory material: the increase of raw materials from China and differences in cost composition

  • Raw lime: raw material remains relatively stable with minor fluctuations on freight costs

  • Energy materials: detailed descriptions are not included due to risk of information leakage

20

Table of Contents

5. Production and Facilities

A. Production Capacity

[Steel]

∎ POSCO

(Thousands of Tons)
Business Area Products 2024.Q3 2023 2022
Steel Crude Steel 30,454 40,680 40,680
* The steel production above includes POSCO’s performance before the<br>spin-off (January to February 2022).
--- ---

∎POSCO STEELEON

(Thousands of Tons)
Business Area Products Plant 2024.Q3 2023 2022
Steel Galvanized / Color-<br><br><br>coated Steel Pohang 718 960 960
Myanmar 52 70 70
Total 770 1,030 1,030

∎POSCO M-TECH

(Tons)
Business Area Products 2024.Q3 2023 2022
Raw materials for steel production Ingot and etc. 28,969 39,294 39,058

[Infrastructure (Trading)]

∎POSCO INTERNATIONAL

(Electric Power: MW/year)
Business Area Products 2024.Q3 2023 2022
Power Generation Electric Power Incheon 3,412 3,412 3,412

[Secondary Battery Materials]

∎POSCO FUTURE M

(Thousands of Tons)
Business<br><br><br>Area Products Place of Business 2024.Q3 2023 2022
Refractory Brick and etc. Pohang 87,261 116,560 116,560
LIME Quicklime Pohang 822,000 1,095,000 1,095,000
Gwangyang 822,000 1,095,000 1,095,000
Total 1,731,261 2,306,560 2,306,560

* In the case of the Secondary Battery Materials sector, detailed notation was omitted in consideration of technology and information leakage concerns.

21

Table of Contents

B. Production Result and Capacity Utilization Rate

[Steel]

(1) Production

(Thousands of Tons)
Products 2024.Q3 2023 2022
Crude Steel 29,058 39,941 37,928
Products Hot-Rolled Steel 7,592 10,660 9,268
Plate 4,849 6,602 5,857
Wire Rod 1,633 2,325 1,988
Pickled-Oiled Steel 2,018 2,780 2,847
Cold-Rolled Products 5,565 7,133 7,623
Coated Steel 5,504 7,299 6,708
Electrical Steel 742 828 1,005
Stainless Steel 2,463 3,104 3,400
Others 1,227 1,795 3,261
Total 31,593 42,528 41,957
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.
---
POSCO’s production result includes production of POSCO HOLDINGS before the<br>spin-off date (March 1, 2022), and production of POSCO after the spin-off date.
---

(2) Capacity Utilization Rate

(Thousands of Tons, %)
Company Capacity Production Utilization Rate
--- --- --- --- --- --- --- --- ---
Crude Steel Production POSCO 30,454 25,894 85.0 %
PT.KRAKATAU POSCO 2,196 2,206 100.4 %
POSCO (Zhangjiagang) Stainless Steel Co., Ltd. 825 591 71.6 %
POSCO YAMATO VINA STEEL JOINT STOCK COMPANY 413 367 89.0 %
Total 33,888 29,058 85.7 %

22

Table of Contents

[Infrastructure]

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

∎POSCO INTERNATIONAL

(1) Production Result ****

(Gwh)
Business Area Products 2024.Q3 2023 2022
Power Generation Electric Power 10,048 11,213 11,189

(2) Capacity Utilization Rate

(Hour, %)
Business Area Products 2024.Q3<br>Capacity 2024.Q3<br>Production Utilization Rate
Power Generation Incheon Power Plant 6,576 4,998 76.00 %

[Secondary Battery Materials]

∎POSCO FUTURE M

(1) Production Result ****

(Tons)
Business Area Products Place of Business 2024.Q3 2023 2022
Refractory Brick and etc. Pohang 59,677 77,437 81,094
LIME Quicklime Pohang 769,434 1,110,594 1,043,109
Gwangyang 907,210 1,243,040 1,176,611
Total 1,736,321 2,431,071 2,300,814
Coke oven gas (COG) facility is a simple consignment operation for POSCO facilities, so production performance<br>is omitted
---
In the case of the EV battery material business, detailed descriptions are not included due to risk of<br>information leakage
---

(2) Capacity Utilization Rate (2024.Q3)

(Tons,%)
Business Area Capacity Production Utilization Rate
Refractory Factory 87,261 59,677 68 %
Quicklime Factory (Pohang) 822,000 769,434 94 %
Quicklime Factory (Gwangyang) 822,000 907,210 110 %
Total 1,731,261 1,736,321 —
Coke oven gas (COG) facility is a simple consignment operation for POSCO facilities, so production performance<br>is omitted
---
In the case of the EV battery material business, detailed descriptions are not included due to risk of<br>information leakage
---

23

Table of Contents

C. Production Facilities

(1) The current status of production facilities
[Land] (In millions of KRW)
--- --- --- --- --- --- --- --- --- --- --- ---
Business Segment Beginning BookBalance Increased Decreased Depreciation Ending BookBalance
Steel 1,880,196 23,140 -1,419 — 1,901,917
Infrastructure Trading 495,571 23,247 -4,355 — 514,463
Construction 378,849 8,629 -23,929 — 363,549
Logistics and etc. 111,058 675 -128 — 111,605
Secondary Battery Materials 234,415 9,697 -24,083 — 220,029
Others 190,155 1,287 -50 — 191,392
[Buildings]
(In millions of KRW)
Business Segment Beginning BookBalance Increased Decreased Depreciation Ending BookBalance
Steel 2,978,895 222,215 -11,606 -211,587 2,977,917
Infrastructure Trading 569,770 20,804 -3,392 -21,700 565,482
Construction 91,841 180,902 -2,957 -2,677 267,109
Logistics and etc. 107,521 3,949 -2,150 -4,998 104,322
Secondary Battery Materials 554,815 181,690 -32,298 -18,362 685,845
Others 124,790 37 -4,982 -1,387 118,458
[Structures]
(In millions of KRW)
Business Segment Beginning BookBalance Increased Decreased Depreciation Ending BookBalance
Steel 2,383,628 555,171 -25,836 -188,280 2,724,683
Infrastructure Trading 472,112 154,731 -391 -32,446 594,006
Construction 51,855 1,935 -88 -5,215 48,487
Logistics and etc. 102,528 15 -6,962 -6,141 89,440
Secondary Battery Materials 55,637 91,319 -7,549 -3,976 135,431
Others 15,764 1 -595 -215 14,955

24

Table of Contents
[Machinery and Equipments]
(In millions of KRW)
Business Segment BeginningBook Balance Increased Decreased Depreciation Ending BookBalance
Steel 13,828,139 3,022,820 -808,970 -1,754,149 14,287,840
Infrastructure Trading 1,212,326 132,391 -45,489 -124,226 1,175,002
Construction 7,490 2,750 -1,618 -1,570 7,052
Logistics and etc. 275,244 14,409 -21,115 -30,132 238,406
Secondary Battery Materials 1,197,388 877,790 -113,810 -103,771 1,857,597
Others 18,605 23,322 -2 -1,538 40,387
[Vehicles]
(In millions of KRW)
Business Segment BeginningBook Balance Increased Decreased Depreciation Ending BookBalance
Steel 50,878 24,445 -5,779 -18,131 51,413
Infrastructure Trading 12,126 4,109 -2,250 -2,086 11,899
Construction 6,112 3,532 -2,024 -1,524 6,096
Logistics and etc. 1,054 192 -42 -182 1,022
Secondary Battery Materials 9,361 5,978 -891 -2,904 11,544
Others 64 — — -15 49
[Tools and Fixtures]
(In millions of KRW)
Business Segment BeginningBook Balance Increased Decreased Depreciation Ending BookBalance
Steel 68,552 28,752 -13,997 -19,429 63,878
Infrastructure Trading 23,813 19,738 -5,478 -12,173 25,900
Construction 1,415 926 -455 -494 1,392
Logistics and etc. 4,438 3,731 -1 -1,501 6,667
Secondary Battery Materials 30,615 11,911 -1,646 -8,557 32,323
Others 32 — — — 32
[Equipment]
(In millions of KRW)
Business Segment BeginningBook Balance Increased Decreased Depreciation Ending BookBalance
Steel 112,086 35,844 -19,287 -32,797 95,846
Infrastructure Trading 27,861 8,045 -2,183 -8,793 24,930
Construction 9,875 9,291 -6,960 -3,020 9,186
Logistics and etc. 12,561 2,806 -329 -1,767 13,271
Secondary Battery Materials 13,278 9,283 -952 -4,124 17,485
Others 14,226 198 -5 -1,115 13,304

25

Table of Contents
[Financial Lease Assets]
(In millions of KRW)
Business Segment Beginning BookBalance Increased Decreased Depreciation Ending BookBalance
Steel 247,157 47,175 -45,892 -39,695 208,745
Infrastructure Trading 384,096 49,714 -13,699 -36,311 383,800
Construction 37,015 77,714 -51,237 -28,170 35,322
Logistics and etc. 211,108 39,784 -14,320 -5,981 230,591
Secondary Battery Materials 97,959 19,031 -2,882 -15,827 98,281
Others 20,970 1,273 -110 -2,263 19,870
[Biological Assets]
(In millions of KRW)
Business Segment Beginning BookBalance Increased Decreased Depreciation Ending BookBalance
Steel — — — — —
Infrastructure Trading 137,331 5,766 -19 -7,143 135,935
Construction — — — — —
Logistics and etc. — — — — —
Secondary Battery Materials — — — — —
Others — — — — —
[Assets under Construction]
(In millions of KRW)
Business Segment Beginning BookBalance Increased Decreased Depreciation Ending BookBalance
Steel 2,795,425 2,554,978 -3,024,404 -15,263 2,310,736
Infrastructure Trading 322,944 331,720 -153,052 — 501,612
Construction 10,961 2,079 -2,802 — 10,238
Logistics and etc. 126,315 161,657 — — 287,972
Secondary Battery Materials 3,008,621 2,620,391 -1,120,522 — 4,508,490
Others 69,407 120,813 -313 — 189,907

(2) New Facility Establishment, Purchase, Etc.

26

Table of Contents
[Steel] (In hundred millions of KRW)
Company Date Project TotalInvestment Invested<br>Amount Amount toBe<br>Invested
POSCO Expansion/ Establishment November 2021 ~ January 2025 G) Increased production capacity of electrical steel for eco-friendly vehicles in Gwangyang 9,088 9,088 —
February 2023 ~ December 2025 G) Establishment of Electric arc furnace 6,420 904 5,516
February 2020 ~ August 2025 P) Establishment of #6 Coke plant 15,197 13,298 1,899
Maintenance/<br><br><br>Improvement October 2020 ~ June 2029 G,P)The first phase of the sealing of raw material yards for both Pohang and Gwangyang Works 33,760 15,199 18,561
August 2021 ~ September 2029 P) Improvement of #2 Hot strip mill furnace 3,084 249 2,835
P stands for Pohang Steel Works.
---
G stands for Gwangyang Steel Works.
---

[Infrastructure (Trading / Logistics and etc.)]

(In hundred millions of KRW)
Company Date Project TotalInvestment Invested<br>Amount Amount toBe<br>Invested
NEH Expansion/ Establishment May 2022<br>~July 2026 Gwangyang LNG terminal 8,668 3,101 5,567

27

Table of Contents

[Secondary Battery Materials]

(In hundred millions of KRW)
Company Date Project TotalInvestment Invested<br>Amount Amount<br>to BeInvested
POSCO Future M Expansion/<br><br><br>Establishment March 2023~January 2025 The 2-1 stage of cathode material factory in Pohang 3,920 2,619 1,301
March 2020~June 2025 Establishment of new Artificial Graphite Anode material line in Pohang 4,612 2,924 1,688
July 2022~February 2025 #2 precursor factory in Gwangyang 3,262 2,951 311
July 2023~October 2025 The 5th stage of cathode material factory in Gwangyang 6,834 1,225 5,609
April 2023~August 2025 The 2nd stage of production line up expansion in #2 cathode material factory 6,148 2,342 3,806
ZHEJIANG POSCO-HUAYOU<br><br><br>ESM CO., LTD Expansion/<br><br><br>Establishment August 2021~June 2025 The 2nd stage of cathode material factory 1,769 1,081 688
POSCO FUTURE<br>MATERIALS CANADA INC. Expansion/ Establishment May 2022~March 2025 The 1st stage of cathode material factory in Canada 9,187 8,150 1,037
POSCO FUTURE<br>MATERIALS CANADA INC. Expansion/<br><br><br>Establishment June 2023~May 2027 The 2nd stage of cathode material factory in Canada 10,005 879 9,126
POSCO-Pilbara LITHIUM SOLUTION Expansion/<br><br><br>Establishment April 2021~November 2024 Construction of hard rock lithium commercialization plant 10,977 10,763 214
POSCO<br><br><br>ARGENTINA Expansion/<br><br><br>Establishment January 2022~August 2025 Brine lithium commercialization plant stage 1 and stage 2 26,273 20,250 6,023
POSCO LITHIUM SOLUTION Expansion/<br><br><br>Establishment December 2022~August 2025 Brine lithium commercialization plant stage 2 (downstream) 5,751 1,771 3,980
Ongoing investments over KRW 100 billion as of September 30, 2024 are listed on the table.<br>
---
The existing investment amount in NEH represents the capital contributed by POSCO International to NEH, and the<br>future investment amount will be self-financed by NEH through external borrowings.
---
Investments in China and Canada are based on the payment of POSCO Future M’s capital.<br>
---

6. Product Sales

[Steel]

(In hundred millions of KRW)
Items 2024.Q3 2023 2022
Domestic Hot-Rolled Products 41,397 58,730 68,784
Cold-Rolled Products 39,383 52,754 55,997
Stainless Steel 22,390 30,313 42,481
Others 72,410 106,558 110,202
Overseas Hot-Rolled Products 53,371 75,979 66,871
Cold-Rolled Products 113,324 142,160 162,588
Stainless Steel 55,649 76,521 92,279
Others 67,698 92,373 107,294
Total Gross Sum 465,621 635,387 706,496
Internal Transaction -171,253 -231,454 -261,026
Total 294,368 403,933 445,470

28

Table of Contents

[Infrastructure]

(In hundred millions of KRW)
Business Area Items 2024.Q3 2023 2022
Trading Domestic<br> <br>Trading Merchandise 34,072 54,327 65,401
Product 26,172 39,121 9,825
Others 1,081 1,366 647
Overseas<br> <br>Trading Merchandise 88,432 121,136 137,635
Product 3,291 3,375 1,058
Others 26 48 10
Trades among the 3 countries 172,963 210,065 281,321
Construction Domestic<br><br><br>Construction Building 36,755 41,251 35,061
Plant 17,073 23,371 15,706
Civil Engineering 7,645 11,658 9,321
Others 2,025 2,096 1,823
Overseas 6,898 14,975 15,938
Own Construction 4,366 9,325 11,006
Logistics and etc. Others 30,433 42,014 74,256
Total Gross Sum 431,231 571,572 659,008
Deduction of Internal Transaction -200,564 -243,520 -282,787
Total 230,667 328,052 376,221

[Secondary Battery Materials]

(In hundred millions of KRW)
Items 2024.Q3 2023 2022
Gross Sum 30,688 48,219 33,888
Deduction of Internal Transaction -7,469 -10,059 -9,370
Total 23,219 38,160 24,518

29

Table of Contents

[Others]

(In hundred millions of KRW)
Items 2024.Q3 2023 2022
Gross Sum 15,429 15,622 11,695
Deduction of Internal Transaction -14,853 -14,495 -10,402
Total 576 1,127 1,293
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 part
---
As of January 2023, POSCO Energy was merged into POSCO International. As a result, the performance of POSCO<br>Energy before the merger was included in Infrastructure (Logistics and etc. segment).
---

7. Derivatives

POSCO HOLDINGS made a currency forward contract in August 2024 to hedge against exchange rate fluctuation risks related to the early redemption claim of exchangeable bonds, and as of the end of September 2024, there are no remaining derivative contracts. As a result of evaluating the currency forward contracts at fair value at the end of the third quarter, the currency forward transaction gain was 1,058 million won, and the transaction loss was 6,035 million won.

POSCO use currency swap contracts in order to hedge against the exchange rate risk for long-term and short-term foreign currency loans. The currency swap valuation gains reflected in our financial statements at the end of September 2024 amounted to KRW 127,663 million, while the transaction gains amounted KRW79,988 million while transaction losses amounted to KRW 2,971 million.

POSCO also has been hedging against exchange rate risks for expected sales revenue and foreign currency borrowings by trading in currency forward products. The derivative valuation gains reflected in our financial statements at the end of September 2024 amounted to KRW 45,694 million.

30

Table of Contents

8. Significant Contracts

[Major management contracts]

• Transfer contract of steel business related shares or investment certificates of POSCO HOLDINGS (2023)<br>

(1) Contract Counterparty: POSCO

(2) Transaction amount: KRW 1.1320 trillion

(3) Purpose: In order to improve the management efficiency of the steel business as a following step of the vertical spin-off on March 2022.

(4) Contract period: August 18, 2023 ~ September 25, 2023

(5) Payment method: Cash payment

(6) Company subject to transfer: PT.KP, P-Mexico, P-IJPC, P-MVWPC (4 overseas companies)

* The above contract amount is the amount applied to the exchange rate based on July 31, 2023, and overseas assets are traded by applying the exchange rate on the day of the transaction.

• Transfer contract of steel business related shares or investment certificates of POSCO HOLDINGS (2022)<br>

(1) Contract Counterparty: POSCO

(2) Transaction amount: KRW 1.1377 trillion

(3) Purpose: In order to improve the management efficiency of the steel business as a following step of the vertical spin-off on March 2022.

(4) Contract period: November 18, 2022 ~ March 31, 2023

(5) Payment method: Cash payment

(6) Company subject to transfer: POSCO YAMATO VINA STEEL JOINT STOCK COMPANY, POSCO Thainox Public Company Limited, 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 overseas assets are traded by applying the exchange rate on the day of the transaction.

• Sales contract of CSP shares

(1) Contract Counterparty: ArcelorMittal Brazil

(2) Purpose: Improving asset efficiency through the sales of non-core assets with no management right

(3) Contract period: July 28, 2022 (transaction completed on March 10, 2023)

(4) Transaction amount: and payment method

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

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

31

Table of Contents

[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>2)<br>Development period: September 1, 2019 ~ December 31, 2024<br> <br>3) Schedule : Installation Completion of<br>low-pressure gas compression platform and <br>      commenced operation in 2024<br><br><br>4) Other Information<br><br><br>-  Location: North-west offshore, Myanmar<br><br><br>-  This investment is the 3^rd^ stage of development,<br>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>-  In the first quarter of 2021, the design and production of the equipment for this work was started, and<br>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>-  Participation rate of each company in gas production and offshore pipeline transportation business<br><br><br>•   POSCO International Corporation : 51.0%<br><br><br>•   ONGC VIDESH(Oil and Natural Gas Corporation Videsh Limited) : 17.0%<br><br><br>•   MOGE(Myanmar Oil and Gas Enterprise): 15.0%<br><br><br>•   GAIL (India) Limited : 8.5%<br><br><br>•   KOGAS(Korea Gas Corporation): 8.5%<br><br><br>-  Investment size of USD 315,170 thousand, applying the exchange rate of 1USD=1,160.60 KRW, which is<br>the date of the BOD resolution.<br> <br>-  Detailed information and future timeline on this resource<br>development investment is subject to change.<br> <br><br><br><br>LOGO<br>  POSCO International disclosure date : September 22, 2020 (Decision on natural resources investment)
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>2)<br>Development period: July 1, 2024 ~ June 30, 2027<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>4) Other Information<br><br><br>-  Location: North-west offshore, Myanmar<br><br><br>-  This investment is the 4^th^ stage of development of<br>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<br>shallow-sea field and to install processing facilities on subsea pipelines and existing platform.<br><br><br>-  With its commencement of development in July 2024, the gas production expected to begin in the third<br>quarter of 2027.<br> <br>-  Participation rate of each company in gas production and offshore pipeline<br>transportation business<br> <br>•   POSCO International Corporation : 51.0%<br><br><br>•   KOGAS(Korea Gas Corporation): 8.5%<br><br><br>•   ONGC VIDESH(Oil and Natural Gas Corporation Videsh Limited) : 17.0%<br><br><br>•   MOGE(Myanmar Oil and Gas Enterprise): 15.0%<br><br><br>•   GAIL (India) Limited : 8.5%<br><br><br>-  Investment size of USD 667 million, applying the exchange rate of June 25, 2024<br><br><br>(1USD=1,387.50KRW).<br><br><br>-  Detailed information and future timeline on this resource development investment is<br><br><br>subjectto change.<br><br><br><br><br><br>LOGO<br>  POSCO International disclosure date : June 27, 2024 (Decision on natural resources investment)

32

Table of Contents
Contract Date Remarks
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>2) Method : Cash acquisition<br> <br>3) Resolution date of Board of<br>Directors : December 10, 2021<br> <br>4) Acquisition amount : KRW 371,077,996,186<br><br><br>5) Number of shares acquired : 96,178,946Shares<br> <br>6) Date of<br>acquisition : April 1, 2022<br> <br>7) equity structure (after acquisition of shares) :<br><br><br>-  POSCO International : 50.1%<br><br><br>-  Hancock Energy (Australia) : 49.9%<br><br><br><br><br><br>LOGO<br>  POSCO International disclosure date : March 31, 2022 (Decision on Acquisition of Shares or Investment Certificates of Other Corporations)
Decision on Merger of<br><br><br>POSCO Energy August<br><br><br>2022 1) Purpose : The purpose of the merger is to consolidate the energy business within the group and complete the value chain of the LNG<br>business, thereby strengthening competitiveness, improving management efficiency and laying the foundation for sustainable growth.<br> <br>2) Method of Merger :<br>POSCO Energy Co., Ltd. (“POSCO Energy”) will be merged with and into POSCO International Co., Ltd. (“POSCO International”).<br> <br>3) Date of<br>board resolution (decision Date) : August 12, 2022<br> <br>4) Date of General Shareholders Meeting for merger approval : November 4, 2022<br><br><br>4) Merger ratio : POSCO International : POSCO Energy = 1 : 1.1626920<br><br><br>5) Record date of merger : January 1, 2023<br> <br>6) Scheduled date<br>of merger registration : January 2, 2023<br> <br><br><br><br>LOGO<br>  POSCO International disclosure date : January 2, 2023

[Infrastructure (Logistics and etc.)]

∎ POSCO FLOW

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

33

Table of Contents

9. Research and Development

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

Business Segment Company Organization
Steel POSCO Steel Production & Technology Strategy Office
Technical Research Laboratories
Steel Product R&D Center
Process R&D Center
Automotive Steel R&D Center
Low-Carbon Process R&D Center
Steel Solution R&D Center
POSCO (Zhangjiagang) Stainless Steel Co., Ltd. R&D Center
POSCO STEELEON Production and Sales Strategy 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 Smart Housing Business Department
POSCO DX R&D Center
Secondary Battery Materials POSCO Future M R&D Center
Energy Material R&D Center
Others POSCO HOLDINGS INC. Group Technology Stragetegy Office
AI R&D Laboratories,<br><br><br>New Experience of Technology Hub
LiB Materials R&D Laboratories<br> <br>New<br>Experience of Technology Hub
Hydrogen and Low-Carbon Energy R&D Laboratories, New Experience of Technology Hub

B. R&D Expenses in 2024.Q3

(In millions of KRW)
Category Business Segment
1. Steel 2. Infrastructure 3. SecondaryBatteryMaterials 4. Others Total
Trading Construction Logistics<br>and etc.
Selling and Administrative Cost 20,712 3,078 3,912 7,238 30,620 93,047 158,607
Manufacturing Cost 264,016 311 93 — 23 — 264,443
R&D Cost (Intangible Assets) 23,136 — 91 — 3,250 1,747 28,224
Total* 307,864 3,389 4,096 7,238 33,893 94,794 451,274
Government Subsidy — — 2,344 — — — 2,344
R&D/Sales Ratio (%) 1.05 % 0.02 % 0.07 % 2.59 % 1.46 % 164.44 % 0.82 %
* Total includes government subsidy. ****
--- ---

34

Table of Contents

III. Financial Statements

1. Consolidated Financial Statements

A. Summary

(In millions of KRW)
Account 2024.Q3 2023 2022
As of September 30, 2024 As of December 31, 2023 As of December 31, 2022
[Total current assets] 44,198,695 46,212,299 47,649,466
Cash and cash equivalents 7,728,931 6,670,879 8,053,108
Other receivables, net 2,243,911 1,947,529 2,112,697
Other short-term financial assets 8,541,450 11,403,166 10,909,920
Trade accounts and notes receivable, net 10,872,961 11,015,303 9,769,553
Inventories 13,699,021 13,825,514 15,472,417
Other current assets 1,112,421 1,349,908 1,331,771
[Total non-current assets] 58,102,621 54,733,095 50,757,315
Other receivables, net 1,520,147 1,452,445 1,520,331
Other long-term financial assets 2,777,287 2,708,325 2,332,538
Investments in associates and joint ventures 5,146,817 5,020,264 4,996,551
Property, plant and equipment, net 38,543,110 35,206,248 31,781,196
Intangible assets, net 4,668,459 4,714,784 4,838,451
Other non-current assets 5,446,801 5,631,029 5,288,248
Total assets 102,301,316 100,945,394 98,406,781
[Total current liabilities] 22,622,790 21,861,518 23,188,190
[Total non-current liabilities] 18,474,114 19,419,979 16,961,190

35

Table of Contents
Total liabilities 41,096,904 41,281,497 40,149,380
[Equity attributable to owners of the controlling company] 55,303,215 54,180,849 52,512,116
Share capital 482,403 482,403 482,403
Capital surplus 1,648,737 1,663,334 1,400,832
Hybrid bonds — — —
Retained earnings 54,384,827 53,857,514 52,965,180
Other equity attributable to owners of the controlling company -1,212,752 -1,822,402 -2,336,299
[Non-controlling Interests] 5,901,197 5,483,048 5,745,285
Total equity 61,204,412 59,663,897 58,257,401
From January 1, 2024<br><br><br>to September 30, 2024 From January 1, 2023<br><br><br>to December 31, 2023 From January 1, 2022<br><br><br>to December 31, 2022
Revenue 54,882,999 77,127,197 84,750,204
Operating profit 2,078,189 3,531,423 4,850,053
Profit 1,650,854 1,845,850 3,560,484
[Profit attributable to owners of the controlling company] 1,523,302 1,698,092 3,144,087
[Profit attributable to non-controlling<br>interests] 127,552 147,758 416,397
Total comprehensive Income 2,056,990 2,330,891 3,794,358
[Total comprehensive income attributable to owners of the controlling company] 1,849,384 2,131,737 3,380,649
[Total comprehensive income attributable to<br>non-controlling interests] 207,606 199,154 413,709
Earnings per share(KRW) 20,092 22,382 41,456
Number of Consolidated Companies 196 192 181

B. The Standards Used for Reporting the Financial Statements

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

36

Table of Contents

2. Separate Financial Statements

A. Summary

(In millions of KRW)
Account 2024.Q3 2023 2022
As of September 30,<br>2024 As of December 31,<br>2023 As of December 31,<br>2022
[Total current assets] 3,234,070 4,657,899 4,308,290
Cash and Cash equivalents 481,718 376,914 1,415,201
Trade accounts and notes receivable, net 152,115 238,332 128,991
Other receivables, net 31,473 68,821 40,288
Other short-term financial assets 2,550,702 3,940,743 2,515,375
Inventories — — —
Other current assets 18,062 33,089 208,435
[Total non-current assets] 47,514,556 46,988,299 46,840,829
Other receivables, net 13,316 6,955 209,057
Other long-term financial assets 893,797 1,131,074 1,062,530
Investments in Subsidiaries, associates, and joint ventures 45,958,396 45,321,370 45,187,628
Property, plant and equipment, net 314,765 197,787 145,006
Intangible assets, net 18,524 19,341 15,902
Other non-current assets 315,758 311,772 220,706
Total assets 50,748,626 51,646,198 51,149,119

37

Table of Contents
Account 2024.Q3 2023 2022
[Total current liabilities] 110,703 1,819,670 118,993
[Total non-current Liabilities] 2,369,528 2,326,663 3,858,263
Total liabilities 2,480,231 4,146,333 3,977,256
[Share capital] 482,403 482,403 482,403
[Capital surplus] 1,367,990 1,370,557 1,360,894
[Hybrid bonds] — — —
[Retained earnings] 47,505,885 47,505,885 47,409,675
[Other equity] -1,856,413 -1,858,980 -2,081,109
Total equity 47,499,865 47,499,865 47,171,863
From January 1, 2024<br> <br>to September 30, 2024 From January 1, 2023<br> <br>to December 31, 2023 From January 1, 2022<br> <br>to December 31, 2022
Revenue 1,460,868 1,454,079 8,589,819
Operating profit 1,178,912 1,106,629 1,674,893
Profit 1,468,572 799,578 -467,852
Earnings per share(KRW) 19,370 10,539 -6,185

B. The Standards Used for Reporting the Financial Statements

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

38

Table of Contents

POSCO HOLDINGS INC.

and its subsidiaries

Interim condensed consolidatedfinancial statements

for the nine-month period ended September 30, 2024

with the independent auditor’s review report

Table of Contents

Table of Contents

Page
Report on review of interim condensed consolidated financial statements 1
Interim condensed consolidated financial statements 3
Interim condensed consolidated statements of financial<br>position 4
Interim condensed consolidated statements of comprehensive<br>income 6
Interim condensed consolidated statements of changes in<br>equity 7
Interim condensed consolidated statements of cash flows 9
Notes to the interim condensed consolidated financial<br>statements 11
Table of Contents

LOGO

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 September 30, 2024, and the related interim condensed consolidated statements of comprehensive income for each of the three-month and nine-month periods ended September 30, 2024, interim condensed consolidated statement of changes in equity and interim condensed consolidated statement of cash flows for the nine-month period ended September 30, 2024, and a summary of material accounting policy information and other explanatory information.

Management’s responsibilityfor 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 condensed consolidated financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s responsibility

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

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

Conclusion

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

Table of Contents

LOGO

Other matters

The interim condensed consolidated statements of comprehensive income for each of the three-month and nine-month periods ended September 30, 2023, and interim condensed consolidated statement of changes in equity and interim condensed consolidated statement of cash flows for the nine-month period ended September 30, 2023, prepared in accordance with KIFRS 1034 and presented for comparative purposes, have been reviewed by KPMG Samjong Accounting Corp., whose review report dated November 14, 2023 expressed an unqualified review conclusion thereon.

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

November 14, 2024

This review report is effective as of November 14, 2024, the independent auditor’s review report date. Accordingly, certain material subsequent events or circumstances may have occurred during the period from the date of the independent auditor’s review report to the time this review report is used. Such events and circumstances could significantly affect the accompanying interim condensed consolidated financial statements and may result in modification to this review report.

2

Table of Contents

POSCO HOLDINGS INC. and its subsidiaries

Interim condensed consolidated financial statements

for each of the nine-month periods ended September 30, 2024 and 2023

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

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

Kisub Jung

Chief Strategy Officer

POSCO HOLDINGS INC.

3

Table of Contents

POSCO HOLDINGS INC. and its Subsidiaries

Interim condensed consolidated statements of financial position

as of September 30, 2024 (Unaudited) and December 31, 2023

(in millions of Won) Notes September 30, 2024(unaudited) December 31, 2023
Assets
Cash and cash equivalents 21 ~~W~~ 7,728,931 6,670,879
Trade accounts and notes receivable, net 4,15,21,25,26,33 10,872,961 11,015,303
Other receivables, net 5,21,33 2,243,911 1,947,529
Other short-term financial assets 6,21 8,541,450 11,403,166
Inventories 7 13,699,021 13,825,514
Current income tax assets 76,820 101,979
Assets held for sale 8 190,007 406,945
Other current assets 14 845,595 840,984
Total current assets 44,198,696 46,212,299
Long-term trade accounts and notes receivable, net 4,21 34,485 42,516
Other receivables, net 5,21,33 1,520,147 1,452,445
Other long-term financial assets 6,21 2,777,287 2,708,325
Investments in associates and joint ventures 9 5,146,817 5,020,264
Investment property, net 11 1,571,938 1,616,294
Property, plant and equipment, net 12 38,543,110 35,206,248
Intangible assets, net 13 4,668,459 4,714,784
Defined benefit assets, net 19 438,566 464,758
Deferred tax assets 3,266,694 3,334,266
Other non-current assets 14 135,118 173,195
Total non-current assets 58,102,621 54,733,095
Total assets ~~W~~ 102,301,317 100,945,394

(continued)

4

Table of Contents

POSCO HOLDINGS INC. and its Subsidiaries

Interim condensed consolidated statements of financial position, continued

as of September 30, 2024 (Unaudited) and December 31, 2023

(in millions of Won) Notes September 30, 2024(unaudited) December 31, 2023
Liabilities
Trade accounts and notes payable 21,33 ~~W~~ 5,639,015 5,782,825
Short-term borrowings and current installments of long-term borrowings 15,21 11,765,917 10,959,217
Other payables 16,21,33 2,948,709 2,737,478
Other short-term financial liabilities 17,21 249,563 163,626
Current income tax liabilities 252,453 319,096
Liabilities directly associated with the assets held for sale 8 171,889 141,890
Provisions 18 357,284 419,744
Other current liabilities 20,25,26 1,237,961 1,337,642
Total current liabilities 22,622,791 21,861,518
Long-term borrowings, excluding current installments 15,21 14,144,926 15,011,163
Other payables 16,21 827,978 873,565
Other long-term financial liabilities 17,21 92,490 153,782
Defined benefit liabilities, net 19 83,791 38,754
Deferred tax liabilities 2,752,010 2,760,234
Long-term provisions 18 470,005 468,009
Other non-current liabilities 20 102,914 114,472
Total non-current liabilities 18,474,114 19,419,979
Total liabilities 41,096,905 41,281,497
Equity
Share capital 22 482,403 482,403
Capital surplus 22 1,648,737 1,663,334
Other components of equity 23 338,109 67,256
Treasury shares 24 (1,550,862 ) (1,889,658 )
Retained earnings 54,384,827 53,857,514
Equity attributable to owners of the controlling company 55,303,214 54,180,849
Non-controlling interests 5,901,198 5,483,048
Total equity 61,204,412 59,663,897
Total liabilities and equity ~~W~~ 102,301,317 100,945,394

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

5

Table of Contents

POSCO HOLDINGS INC. and its subsidiaries

Interim condensed consolidated statements of comprehensive income

for each of the three-month and nine-month periods

ended September 30, 2024 and 2023 (Unaudited)

(in millions of Won, except per share information) For the three-month periodended September 30(unaudited) For the nine-month periodended September 30(unaudited)
Notes 2024 2023 2024 2023
Revenue 25,26,33 ~~W~~ 18,321,368 18,960,831 54,882,999 58,463,080
Cost of sales 26,30 (16,814,861 ) (17,049,781 ) (50,552,662 ) (53,144,751 )
Gross profit 1,506,507 1,911,050 4,330,337 5,318,329
Selling and administrative expenses 21,27,30
Other administrative expenses (717,936 ) (660,505 ) (2,101,583 ) (1,917,000 )
Selling expenses (45,404 ) (54,329 ) (150,565 ) (174,181 )
Operating profit 743,167 1,196,216 2,078,189 3,227,148
Share of profit of equity-accounted investees, net 9 68,226 101,216 242,406 282,931
Finance income and costs 21,28
Finance income 771,393 578,348 3,293,716 3,239,157
Finance costs (767,946 ) (993,392 ) (3,179,318 ) (3,704,869 )
Other non-operating income and expenses 21,29,30
Other non-operating income 54,897 36,086 181,593 349,037
Other non-operating expenses (178,408 ) (87,358 ) (473,221 ) (531,134 )
Profit before income tax 691,329 831,116 2,143,365 2,862,270
Income tax expense 31 (194,510 ) (280,614 ) (492,511 ) (695,498 )
Profit 496,819 550,502 1,650,854 2,166,772
Other comprehensive income (loss)
Items that will not be reclassified subsequently to profit or loss:
Capital adjustment arising from investments in subsidiaries under equity method — (11,946 ) 984 (10,199 )
Foreign currency translation differences (58,584 ) 18,846 57,058 56,927
Remeasurements of defined benefit plans 19 2,391 10,828 4,205 (6,338 )
Net changes in fair value of equity investments at fair value through other comprehensive<br>income 21 49,494 62,306 (27,453 ) 212,172
Items that are or may be reclassified subsequently to profit or loss:
Capital adjustment arising from investments in subsidiaries under equity method (109,145 ) 49,535 89,548 261,809
Foreign currency translation differences (233,651 ) 36,059 282,237 214,529
Gains or losses on valuation of derivatives 21 (421 ) (1,361 ) (443 ) (2,541 )
Other comprehensive income (loss), net of tax (349,916 ) 164,267 406,136 726,359
Total comprehensive income ~~W~~ 146,903 714,769 2,056,990 2,893,131
Profit attributable to:
Owners of the controlling company ~~W~~ 452,654 488,201 1,523,303 1,904,353
Non-controlling interests 44,165 62,301 127,551 262,419
Profit ~~W~~ 496,819 550,502 1,650,854 2,166,772
Total comprehensive income attributable to:
Owners of the controlling company ~~W~~ 171,597 626,868 1,849,384 2,569,048
Non-controlling interests (24,694 ) 87,901 207,606 324,083
Total comprehensive income ~~W~~ 146,903 714,769 2,056,990 2,893,131
Earnings per share (in Won) 32
Basic earnings per share (in Won) 5,980 6,434 20,092 25,101
Diluted earnings per share (in Won) ~~W~~ 5,694 6,434 17,578 25,101

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

6

Table of Contents

POSCO HOLDINGS INC. and Subsidiaries

Interim condensed consolidated statements of changes in equity

for each of the nine-month periods ended September 30, 2024 and 2023 (Unaudited)

(in millions of Won) Attributable to owners of the controlling company Non-controllinginterests Total
Share<br>capital Capitalsurplus Otherequityitems Treasuryshares Retainedearnings Subtotal
Balance as of January 1, 2023 ~~W~~ 482,403 1,400,832 (443,990 ) (1,892,308 ) 52,965,179 52,512,116 5,745,285 58,257,401
Comprehensive income:
Profit — — — — 1,904,353 1,904,353 262,419 2,166,772
Other comprehensive income (loss)
Remeasurements of defined benefit plans, net of tax — — — — (2,978 ) (2,978 ) (3,360 ) (6,338 )
Capital adjustment arising from investments in equity-accounted investees, net of tax — — 242,802 — — 242,802 8,808 251,610
Net changes in fair value of equity investments at fair value through other comprehensive income,<br>net of tax — — 211,817 — 355 212,172 — 212,172
Foreign currency translation differences, net of tax — — 214,529 — — 214,529 56,927 271,456
Gains or losses on valuation of derivatives, net of tax — — (1,830 ) — — (1,830 ) (711 ) (2,541 )
Total comprehensive income — — 667,318 — 1,901,730 2,569,048 324,083 2,893,131
Transactions with owners of the controlling company, recognized directly inequity:
Year-end dividends — — — — (151,698 ) (151,698 ) (94,287 ) (245,985 )
Interim dividends — — — — (379,381 ) (379,381 ) — (379,381 )
Changes in ownership interest in subsidiaries — 212,033 — — — 212,033 (9,933 ) 202,100
Interest of hybrid bonds — — — — — — (8,925 ) (8,925 )
Repayment of hybrid bonds — — — — — — (339,408 ) (339,408 )
Disposal of treasury shares — 4,083 — 5,864 — 9,947 — 9,947
Share based payment — 3,084 — — — 3,084 — 3,084
Others — (887 ) (65,299 ) — (1,796 ) (67,982 ) 4,665 (63,317 )
Total transactions with owners of the controlling company — 218,313 (65,299 ) 5,864 (532,875 ) (373,997 ) (447,888 ) (821,885 )
Balance as of September 30, 2023 ~~W~~ 482,403 1,619,145 158,029 (1,886,444 ) 54,334,034 54,707,167 5,621,480 60,328,647

(continued)

7

Table of Contents

POSCO HOLDINGS INC. and Subsidiaries

Interim condensed consolidated statements of changes in equity, continued

for each of the nine-month periods ended September 30, 2024 and 2023 (Unaudited)

(in millions of Won) Attributable to owners of the controlling company Non-<br>controlling<br>interests Total
Share<br>capital Capitalsurplus Otherequityitems Treasuryshares Retained<br>earnings Subtotal
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 — — — — 1,523,303 1,523,303 127,551 1,650,854
Other comprehensive income (loss)
Remeasurements of defined benefit plans, net of tax — — — — 4,789 4,789 (584 ) 4,205
Capital adjustment arising from investments in equity-accounted investees, net of tax — — 66,519 — — 66,519 24,013 90,532
Net changes in fair value of equity investments at fair value through other comprehensive income,<br>net of tax — — (26,145 ) — (705 ) (26,850 ) (603 ) (27,453 )
Foreign currency translation differences, net of tax — — 282,237 — — 282,237 57,058 339,295
Gains or losses on valuation of derivatives, net of tax — — (614 ) — — (614 ) 171 (443 )
Total comprehensive income — — 321,997 — 1,527,387 1,849,384 207,606 2,056,990
Transactions with owners of the controlling company, recognized directly inequity:
Year-end dividends — — — — (189,691 ) (189,691 ) (85,674 ) (275,365 )
Interim dividends — — — — (379,381 ) (379,381 ) — (379,381 )
Changes in subsidiaries — — — — — — 57,399 57,399
Changes in ownership interest in subsidiaries — (15,916 ) — — — (15,916 ) 264,520 248,604
Acquisition of treasury shares — — — (92,311 ) — (92,311 ) — (92,311 )
Retirement of treasury shares — — — 431,107 (431,107 ) — — —
Share based payment — (2,567 ) — — — (2,567 ) — (2,567 )
Others — 3,886 (51,144 ) — 105 (47,153 ) (25,701 ) (72,854 )
Total transactions with owners of the controlling company — (14,597 ) (51,144 ) 338,796 (1,000,074 ) (727,019 ) 210,544 (516,475 )
Balance as of September 30, 2024 ~~W~~ 482,403 1,648,737 338,109 (1,550,862 ) 54,384,827 55,303,214 5,901,198 61,204,412

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

8

Table of Contents

POSCO HOLDINGS INC. and Subsidiaries

Interim condensed consolidated statements of cash flows

for each of the nine-month periods ended September 30, 2024 and 2023 (Unaudited)

(in millions of Won) For the nine-month period ended
Notes September 30, 2024(unaudited) September 30, 2023(unaudited)
Cash flows from operating activities
Profit ~~W~~ 1,650,854 2,166,772
Adjustments for:
Depreciation 2,629,545 2,502,740
Amortization 352,394 369,038
Finance income (2,155,923 ) (1,724,525 )
Finance costs 1,937,285 2,186,124
Income tax expense 492,511 695,498
Impairment loss on property, plant and equipment 179,400 152,469
Gain on disposal of property, plant and equipment (14,079 ) (5,747 )
Loss on disposal of property, plant and equipment 56,291 90,104
Impairment loss on goodwill and other intangible assets 362 4,792
Gain on disposal of investments in subsidiaries, associates and joint ventures (9,590 ) (196,562 )
Loss on disposal of investments in subsidiaries, associates and joint ventures 42,539 8,776
Share of profit of equity-accounted investees (242,406 ) (282,931 )
Gain on disposal of assets held for sale (705 ) —
Loss on disposal of assets held for sale 34,830 103,366
Expenses related to post-employment benefit 183,381 150,464
Impairment loss on trade and other receivables 70,037 27,144
Loss (gain) on valuation of inventories (62,047 ) 102,855
Increase (decrease) to provisions 40,815 63,234
Others, net (8,356 ) (36,346 )
3,526,284 4,210,493
Changes in operating assets and liabilities 35 (450,846 ) (1,695,289 )
Interest received 423,968 316,526
Interest paid (847,985 ) (804,486 )
Dividends received 541,054 484,552
Income taxes paid (429,491 ) (398,969 )
Net cash provided by operating activities ~~W~~ 4,413,838 4,279,599

(continued)

9

Table of Contents

POSCO HOLDINGS INC. and Subsidiaries

Interim condensed consolidated statements of cash flows, continued

for each of the nine-month periods ended September 30, 2024 and 2023 (Unaudited)

(in millions of Won) For the nine-month period ended
Notes September 30, 2024(unaudited) September 30, 2023(unaudited)
Cash flows from investing activities
Acquisitions of short-term financial instruments ~~W~~ (10,755,681 ) (37,117,290 )
Proceeds from disposal of short-term financial instruments 14,529,930 35,902,804
Increase in loans (705,255 ) (536,420 )
Collection of loans 645,503 706,250
Acquisitions of securities (1,110,904 ) (328,351 )
Proceeds from disposal of securities 645,082 153,581
Acquisitions of long-term financial instruments (3,442 ) (4,029 )
Acquisitions of investment in associates and joint ventures (166,147 ) (386,572 )
Proceeds from disposal of investment in associates and joint ventures 46,266 13,646
Acquisitions of investment property (1,857 ) (56,018 )
Proceeds from disposals of investment property 372 520
Acquisitions of property, plant and equipment (5,680,476 ) (4,545,134 )
Proceeds from disposal of property, plant and equipment 30,397 (15,187 )
Acquisitions of intangible assets (266,216 ) (269,671 )
Proceeds from disposal of intangible assets 3,527 27,722
Proceeds from disposal of assets held for sale 23,531 1,446
Collection of lease receivables 22,391 38,930
Disposal of net assets due to changes in consolidated entities 9,831 —
Cash flow from business combination — (150,201 )
Cash inflow from insurance claim — 4,391
Others, net (2,884 ) (7,331 )
Net cash used in investing activities (2,736,032 ) (6,566,914 )
Cash flows from financing activities
Proceeds from borrowings 4,788,074 7,433,578
Repayment of borrowings (6,149,738 ) (4,773,516 )
Proceeds from (repayment of) short-term borrowings, net 1,163,905 (548,790 )
Capital contribution from non-controlling interests 308,777 228,473
Payment of cash dividends (655,132 ) (624,667 )
Acquisition of treasury shares (92,311 ) —
Repayment of hybrid bonds — (340,000 )
Payment of interest of hybrid bonds — (10,043 )
Repayment of lease liabilities (145,157 ) (154,912 )
Others, net 114,696 83,229
Net cash provided by (used in) financing activities (666,886 ) 1,293,352
Effect of exchange rate fluctuation on cash held 47,132 87,680
Net increase(decrease) in cash and cash equivalents 1,058,052 (906,283 )
Cash and cash equivalents at beginning of the period 6,670,879 8,053,282
Cash and cash equivalents at end of the period ~~W~~ 7,728,931 7,146,999

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

10

Table of Contents

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

September 30, 2024 and 2023 (Unaudited)

1. General Information

General information about POSCO HOLDINGS INC. (the “Company”), the controlling company, and its subsidiaries in the scope of consolidation, such as 57 domestic subsidiaries including POSCO INC. and 138 foreign subsidiaries including POSCO America Corporation, and 119 associates and joint ventures (collectively referred to as the “Group”) in accordance with KIFRS 1110 is as follows:

(a) The controlling company

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

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

As of September 30, 2024, the shares of POSCO HOLDINGS INC. are listed on the Korea Exchange, while its ADRs are listed on the New York Stock Exchanges.

(b) Consolidated subsidiaries acquired or newly established during the nine-month period ended September 30,<br>2024 are as follows:
Company Date of inclusion Ownership (%) Reason
--- --- --- --- --- ---
POSCO CNGR Nickel Solution January 2024 60.00 New establishment
POSCO CVC Scale-Up Fund May 2024 60.00 New establishment
SK Solar Plant July 2024 100.00 Acqusition
POSCO ZT AIR SOLUTION August 2024 75.10 New establishment
RNR logistics September 2024 100.00 Acqusition
(c) A consolidated subsidiary over which Company has lost control during the nine-month period ended<br>September 30, 2024 is as follows:
--- ---
Company Date of exclusion Reason
--- --- --- --- ---
POSCO INTERNATIONAL POWER (PNGLAE) LTD. June 2024 Divestiture

11

Table of Contents

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

2. Basis of Preparation

Statement of compliance

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

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

Use of estimates and judgments

(a) Judgments, assumptions and estimation uncertainties

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

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

12

Table of Contents

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

(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 liabilities,<br>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.

13

Table of Contents

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

3. Summary of Material Accounting Policy Information

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

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

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

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

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

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

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

The amendments clarify:

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

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

14

Table of Contents

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

4. Trade Accounts and Notes Receivable

Trade accounts and notes receivable as of September 30, 2024 and December 31, 2023 are as follows:

(in millions of Won) September 30, 2024 December 31, 2023
Current
Trade accounts and notes receivable ~~W~~ 9,506,171 9,382,640
Due from customers for contract work 1,682,824 1,916,238
Less: Allowance for doubtful accounts (316,034 ) (283,575 )
~~W~~ 10,872,961 11,015,303
Non-current
Trade accounts and notes receivable ~~W~~ 80,980 89,839
Less: Allowance for doubtful accounts (46,495 ) (47,323 )
~~W~~ 34,485 42,516

The Group discounted accounts receivable in accordance with accounts receivable factoring agreements with financial institutions for the nine-month period ended September 30, 2024 and the year ended December 31, 2023. This transaction is a transaction with the right to appeal because the Group is obligated to pay the amount to the bank, etc. if the trade receivables are not recovered at maturity, and the transaction is accounted for as secured borrowing. As of September 30, 2024 and December 31, 2023, the book value of the accounts receivable from the transaction is ~~W~~113,535 million and ~~W~~132,942 million, respectively, and the amount is included in the short-term borrowings.

15

Table of Contents

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

5. Other Receivables

Other receivables as of September 30, 2024 and December 31, 2023 are as follows:

(in millions of Won) September 30, 2024 December 31, 2023
Current
Short-term Loans ~~W~~ 330,357 223,011
Other accounts receivable 1,604,232 1,433,423
Accrued income 274,659 237,154
Deposits 96,956 125,854
Others 28,590 15,349
Lease receivables 19,337 23,948
Less: Allowance for doubtful accounts (110,220 ) (111,210 )
~~W~~ 2,243,911 1,947,529
Non-current
Long-term Loans(*1) ~~W~~ 1,354,464 1,204,645
Other accounts receivable 187,943 186,492
Accrued income 165,895 184,739
Deposits 276,293 308,185
Lease receivables 62,896 78,994
Less: Allowance for doubtful accounts (527,344 ) (510,610 )
~~W~~ 1,520,147 1,452,445
(*1) The Group recognized an allowance for doubtful accounts of ~~W~~258,332 million for all of the<br>other receivables from FQM Australia Holdings Pty Ltd., an associate, due to low possibility of collecting these receivables during the year ended December 31, 2023.
--- ---

16

Table of Contents

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

6. Other Financial Assets

Other financial assets as of September 30, 2024 and December 31, 2023 are as follows:

(in millions of Won) September 30, 2024 December 31, 2023
Current
Derivatives assets ~~W~~ 166,763 166,873
Debt securities 933,238 295,619
Deposit instruments(*1) 4,464,439 4,400,267
Short-term financial instruments(*1) 2,967,571 6,540,407
Equity securities 9,439 —
8,541,450 11,403,166
Non-current
Derivatives assets 135,235 134,269
Equity securities(*2) 1,803,699 1,793,531
Debt securities 103,083 87,778
Other securities(*2) 711,633 669,687
Deposit instruments(*1) 23,637 23,060
~~W~~ 2,777,287 2,708,325
(*1) As of September 30, 2024 and December 31, 2023, financial instruments amounting to<br>~~W~~92,992 million and ~~W~~101,888 million, respectively, are restricted in use for financial arrangements, pledge and others.
--- ---
(*2) As of September 30, 2024 and December 31, 2023, ~~W~~188,216 million and<br>~~W~~181,617 million of equity and other securities, respectively, have been provided as collateral for borrowings, construction projects and others.
--- ---

7. Inventories

Inventories as of September 30, 2024 and December 31, 2023 are as follows:

(in millions of Won) September 30, 2024 December 31, 2023
Finished goods ~~W~~ 2,606,535 2,615,009
M erchandise 1,195,584 1,049,467
Semi-finished goods 2,613,462 3,039,516
Raw materials 3,496,581 3,237,691
Fuel and materials 1,073,066 921,742
Construction inventories 232,338 256,558
M aterials-in-transit 2,680,611 2,965,306
Others 90,400 87,802
13,988,577 14,173,091
Less: Allowance for inventories valuation(*1) (289,556 ) (347,577 )
~~W~~ 13,699,021 13,825,514
(*1) For the nine-month period ended September 30, 2024 and the year ended December 31, 2023, the reversed<br>inventory valuation losses are ~~W~~62,047 million and ~~W~~128,510 million, respectively.
--- ---

17

Table of Contents

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

8. Assets Held for Sale

Details of assets held for sale as of September 30, 2024 and December 31, 2023 are as follows:

(in millions of Won) September 30, 2024(*1) December 31, 2023(*2)
Asset
Cash and cash equivalents ~~W~~ 988 —
Account receivables and other receivables 3,619 728
Inventories — 39,054
Other financial assets — 119,881
Property, plant and equipment 175,205 149,612
Intangible assets — 97,372
Others 10,195 298
~~W~~ 190,007 406,945
Liability
Other payables ~~W~~ 169,960 22,180
Provisions 1,929 119,710
~~W~~ 171,889 141,890
(*1) POSCO Future M Co., Ltd. a subsidiary of the Group, decided to transfer 51% shares of P&O Chemical Co.,<br>Ltd., previously accounted for as a subsidiary, to the second-largest shareholder, OCI Co., Ltd., and recognized ~~W~~180,578 million of assets held for sale and ~~W~~171,889 million of liabilities held for sale.<br>
--- ---
(*2) POSCO Canada Ltd., a subsidiary of the Group, decided to invest in kind in the assets and liabilities of<br>Greenhills Mine and the shares of Elkview Mine Limited Partnership, which were respectively accounted for as investment stock in joint ventures and financial assets at fair value through profit or loss, in a partnership to be established by the<br>principal operator and major shareholder, Teck Coal Partnership, during the year ended December 31, 2023, and recognized ~~W~~401,804 million of assets held for sale and ~~W~~141,890 million of liabilities<br>Held-for-sale.
--- ---

18

Table of Contents

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

9. Investments in Associates and Joint ventures

(a) Details of investments in associates as of September 30, 2024 and December 31, 2023 are as follows:<br>
(in millions of Won) September 30, 2024 December 31,2023
--- --- --- --- --- --- --- --- --- --- ---
Company Numberof shares Ownership(%) Acquisitioncost Book value Book value
[Domestic]
Samcheok Blue Power Co.,Ltd.(*1) 4,507,138 34.00 ~~W~~ 455,584 ~~W~~ 365,104 323,521
Chun-cheon Energy Co., Ltd(*1) 17,308,143 49.10 86,541 15,093 15,040
Pocheon-Hwado Highway Corp.(*1) 7,109,230 27.89 35,546 19,316 23,998
CHUNGJU ENTERPRISE CITY DEVELOPMENT Co.,Ltd 944,920 29.53 4,725 12,669 13,967
DaeSung SnM Co., Ltd(*2) — — — — 20,296
PCC Amberstone Private Equity Fund 1(*3) 6,130,967,757 8.80 6,131 7,278 8,904
Others (48 companies)(*1) 127,575 122,366
547,035 528,092
[Foreign]
South-East Asia Gas Pipeline Company Ltd. 135,219,000 25.04 132,907 285,543 287,282
AES Mong Duong Power Company Limited(*1) — 30.00 164,303 250,265 230,699
9404-5515 Quebec Inc. 284,463,243 25.85 328,509 376,266 346,724
AMCI (WA) PTY LTD 49 49.00 209,664 57,828 60,225
NCR LLC — 22.05 247,077 230,665 253,121
KOREA LNG LTD. 2,400 20.00 135,205 61,183 58,759
ZHEJIANG HUAYOU-POSCO ESM CO., LTD 648,530,000 40.00 120,072 107,877 105,300
PT. Wampu Electric Power(*1) 8,708,400 20.00 10,054 16,785 15,632
POSCO-SeAH Steel Wire(Nantong) Co., Ltd. 50 25.00 4,723 9,618 8,642
Others (31 companies)(*1) 228,252 209,118
1,624,282 1,575,502
~~W~~ 2,171,317 2,103,594
(*1) As of September 30, 2024 and December 31, 2023, investments in associates amounting to<br>~~W~~678,876 million and ~~W~~650,116 million, respectively, are provided as collateral in relation to the associates’ borrowings.
--- ---
(*2) During the nine-month period ended September 30, 2024, DaeSung SnM Co., Ltd. was excluded from associates<br>due to the divestiture.
--- ---
(*3) As of September 30, 2024, the entities are classified as associates since the Group has significant<br>influence over the investees although the Group’s percentage of ownership is less than 20%, considering the structure of the entities’ Board of Directors and others.
--- ---

19

Table of Contents

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

(b) Details of investments in joint ventures as of September 30, 2024 and December 31, 2023 are as<br>follows:
(in millions of Won) September 30, 2024 December 31,2023
--- --- --- --- --- --- --- --- --- --- ---
Company Number of shares Ownership(%) Acquisitioncost Book value Book value
[Domestic]
POSCO MC MATERIALS 11,568,000 60.00 ~~W~~ 115,680 ~~W~~ 152,483 155,748
SNNC 18,130,000 49.00 90,650 77,788 100,692
Others (7 companies) 11,266 8,323
241,537 264,763
[Foreign]
Roy Hill Holdings Pty Ltd(*1) 13,117,972 12.50 1,528,672 1,373,598 1,400,009
POSCO-NPS Niobium LLC 325,050,000 50.00 364,609 429,008 419,192
KOBRASCO 2,010,719,185 50.00 32,950 113,305 99,768
Nickel Mining Company SAS 3,234,698 49.00 157,585 82,576 87,967
BX STEEL POSCO Cold Rolled Sheet Co., Ltd. — 25.00 61,961 125,500 111,001
DMSA/AMSA(*1) — 3.89 346,880 1,714 16,572
PT NICOLE METAL INDUSTRY(*2) 106,935,294 49.00 412,688 406,087 284,351
HBIS-POSCO Automotive Steel Co.Ltd — 50.00 235,251 183,282 208,765
Others (8 companies) 18,893 24,282
2,733,963 2,651,907
~~W~~ 2,975,500 2,916,670
(*1) As of September 30, 2024 and December 31, 2023, the investments in joint ventures are provided as<br>collateral in relation to the joint ventures’ borrowings.
--- ---
(*2) During the nine-month period ended September 30, 2024, the Company acquired ~~W~~119,327<br>million of additional investment in joint ventures by participating in PT NICOLE METAL INDUSTRY’s capital increase.
--- ---

20

Table of Contents

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

(c) Changes in investments in associates and joint ventures for the nine-month period ended September 30, 2024<br>and the year ended December 31, 2023 are as follows:
1) For the nine-month period ended September 30, 2024
--- ---
(in millions of Won)
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Company December 31,2023Book value Acquisition Dividends Share ofprofits (losses) Other increase(decrease)(*1) September 30,2024Book value
[Domestic]
Samcheok Blue Power Co.,Ltd. ~~W~~ 323,521 25,680 (8,208 ) 24,104 7 365,104
SNNC 100,692 — — (22,903 ) (1 ) 77,788
Chun-cheon Energy Co., Ltd 15,040 — — (10,813 ) 10,866 15,093
Pocheon-Hwado Highway Corp. 23,998 — — (4,682 ) — 19,316
CHUNGJU ENTERPRISE CITY DEVELOPMENT Co.,Ltd 13,967 — — (117 ) (1,181 ) 12,669
DaeSung SnM Co., Ltd. 20,296 — — (1,522 ) (18,774 ) —
PCC Amberstone Private Equity Fund 1 8,904 175 — (238 ) (1,563 ) 7,278
POSCO MC MATERIALS 155,748 — (1,800 ) (1,465 ) — 152,483
Others (55 companies) 130,689 10,127 (4,158 ) 5,075 (2,892 ) 138,841
792,855 35,982 (14,166 ) (12,561 ) (13,538 ) 788,572
[Foreign]
South-East Asia Gas Pipeline Company Ltd. 287,282 — (41,843 ) 33,329 6,775 285,543
AES Mong Duong Power Company Limited 230,699 — (15,431 ) 27,675 7,322 250,265
9404-5515 Quebec Inc. 346,724 — (17,764 ) 38,416 8,890 376,266
AMCI (WA) PTY LTD 60,225 — — (15,470 ) 13,073 57,828
NCR LLC 253,121 4,275 — (28,497 ) 1,766 230,665
KOREA LNG LTD. 58,759 — (14,463 ) 14,415 2,472 61,183
Nickel Mining Company SAS 87,967 — — (8,485 ) 3,094 82,576
ZHEJIANG HUAYOU-POSCO ESM CO., LTD 105,300 — — (2,029 ) 4,606 107,877
PT. Wampu Electric Power 15,632 — — 822 331 16,785
POS-SeAH Steel Wire(Nantong) CO., Ltd. 8,642 — — 408 568 9,618
Roy Hill Holdings Pty Ltd 1,400,009 — (253,262 ) 167,301 59,550 1,373,598
POSCO-NPS Niobium LLC 419,192 — (22,045 ) 22,304 9,557 429,008
KOBRASCO 99,768 — (5,761 ) 29,095 (9,797 ) 113,305
BX STEEL POSCO Cold Rolled Sheet Co., Ltd. 111,001 — — 9,785 4,714 125,500
DMSA/AMSA 16,572 — — (15,625 ) 767 1,714
PT NICOLE METAL INDUSTRY 284,351 119,908 — 460 1,368 406,087
HBIS-POSCO Automotive Steel Co.Ltd 208,765 — — (34,523 ) 9,040 183,282
Others (39 companies) 233,400 2,343 (25,478 ) 15,586 21,294 247,145
4,227,409 126,526 (396,047 ) 254,967 145,390 4,358,245
~~W~~ 5,020,264 162,508 (410,213 ) 242,406 131,852 5,146,817
(*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 nine-month period ended September 30, 2024.
--- ---

21

Table of Contents

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

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

22

Table of Contents

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

(d) The summarized financial information of associates and joint ventures as of and for the nine-month period ended<br>September 30, 2024 and the year ended December 31, 2023 is as follows:
1) September 30, 2024
--- ---
(in millions of Won)
--- --- --- --- --- --- --- --- --- --- --- --- ---
Company Assets Liabilities Equity (deficit) Sales Netincome(loss)
[Domestic]
Samcheok Blue Power Co.,Ltd. ~~W~~ 4,769,943 4,096,226 673,717 410,176 83,265
SNNC 694,179 517,354 176,825 496,903 (47,452 )
Chun-cheon Energy Co., Ltd 567,390 444,324 123,066 333,777 4,961
Pocheon-Hwado Highway Corp. 698,069 590,278 107,791 15,250 (13,238 )
CHUNGJU ENTERPRISE CITY DEVELOPMENT Co.,Ltd 15,450 2,850 12,600 — (397 )
PCC Amberstone Private Equity Fund 1 82,734 — 82,734 235 (2,709 )
POSCO MC MATERIALS 385,213 129,630 255,583 164,456 (1,989 )
[Foreign]
South-East Asia Gas Pipeline Company Ltd. 1,506,664 366,328 1,140,336 301,116 133,095
AES Mong Duong Power Company Limited 1,616,496 827,907 788,589 320,975 92,250
9404-5515 Quebec Inc. 1,543,269 — 1,543,269 — 148,600
FQM Australia Holdings Pty Ltd 57,877 1,380,662 (1,322,785 ) 102,272 (405,269 )
KOREA LNG LTD. 306,018 100 305,918 73,503 72,074
Nickel Mining Company SAS 497,558 270,597 226,961 149,703 (28,134 )
ZHEJIANG HUAYOU-POSCO ESM CO., LTD 295,884 25,684 270,200 58,770 (5,074 )
PT. Wampu Electric Power 193,881 113,005 80,876 13,360 4,108
POS-SeAH Steel Wire(Nantong) Co., Ltd. 89,677 52,772 36,905 98,146 1,576
Roy Hill Holdings Pty Ltd 10,356,960 2,427,939 7,929,021 5,585,415 1,646,752
POSCO-NPS Niobium LLC 857,812 — 857,812 — 43,705
KOBRASCO 258,333 32,328 226,005 89,369 57,030
BX STEEL POSCO Cold Rolled Sheet Co., Ltd. 873,556 398,420 475,136 1,243,429 39,141
DMSA/AMSA 3,023,921 2,979,973 43,948 550,482 (401,745 )
HBIS-POSCO Automotive Steel Co.Ltd 948,491 573,317 375,174 370,847 (70,396 )
PT NICOLE METAL INDUSTRY 575,313 20,144 555,169 — 939

23

Table of Contents

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

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

10. Joint Operations

Details of significant joint operations that the Group is participating in as a party to a joint arrangement as of September 30, 2024 are as follows:

Joint operations Operation Ownership (%) Location
Myanmar A-1/A-3 mine Mine development and gas production 51.00 Myanmar
Offshore midstream Gas transportation facility 51.00 Myanmar
Mt. Thorley J/V Mine development 20.00 Australia
POSMAC J/V Mine development 20.00 Australia

24

Table of Contents

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

11. Investment Property

Changes in the carrying amount of investment property for the nine-month period ended September 30, 2024 and the year ended December 31, 2023 are as follows:

(a) For the nine-month period ended September 30, 2024
(in millions of Won) Beginning Acquisitions Disposals Depreciation Impairmentloss Others(*1) Ending
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Land ~~W~~ 787,304 1,710 (47,137 ) — (215 ) 35,433 777,095
Buildings 655,786 1,774 (34,399 ) (21,584 ) (456 ) 22,276 623,397
Structures 1,873 — — (684 ) — 590 1,779
Right-of-use assets 171,331 — (80 ) (5,038 ) — 3,454 169,667
~~W~~ 1,616,294 3,484 (81,616 ) (27,306 ) (671 ) 61,753 1,571,938
(*1) Includes reclassification resulting from changes in purpose of use, and adjusted foreign currency translation<br>difference and others.
--- ---
(b) For the year ended December 31, 2023
--- ---
(in millions of Won) Beginning Acquisitions BusinessCombination(*1) Disposals Depreciation Others(*2) Ending
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Land ~~W~~ 308,523 54,891 473,301 (60 ) — (49,351 ) 787,304
Buildings 593,505 1,006 83,739 (303 ) (28,902 ) 6,741 655,786
Structures 1,356 — — — (1,049 ) 1,566 1,873
Right-of-use assets 170,647 216 — (78 ) (5,635 ) 6,181 171,331
~~W~~ 1,074,031 56,113 557,040 (441 ) (35,586 ) (34,863 ) 1,616,294
(*1) Represents increases in investment property due to business combination upon incorporation of QSONE Co.,Ltd.<br>into a subsidiary during the year ended December 31, 2023.
--- ---
(*2) Includes reclassification resulting from changes in purpose of use, and adjusted foreign currency translation<br>difference and others.
--- ---

25

Table of Contents

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

12. Property, Plant and Equipment

(a) Changes in the carrying amount of property, plant and equipment for the nine-month period ended<br>September 30, 2024 and the year ended December 31, 2023 are as follows:
1) For the nine-month period ended September 30, 2024
--- ---
(in millions of Won) Beginning Acquisitions BusinessCombination(*1) Disposals Depreciation Impairmentloss(*2) Others(*3) Ending
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Land ~~W~~ 3,290,244 19,476 503 (6,017 ) — — (1,251 ) 3,302,955
Buildings 4,427,632 8,418 17 (3,010 ) (257,144 ) (3,567 ) 546,787 4,719,133
Structures 3,081,524 5,912 — (3,318 ) (227,671 ) (8,603 ) 759,159 3,607,003
Machinery and equipment 16,539,192 130,514 2,116 (25,099 ) (1,864,161 ) (151,226 ) 2,974,948 17,606,284
Vehicles 79,595 13,228 — (1,190 ) (24,843 ) — 15,233 82,023
Tools 128,865 23,956 — (406 ) (41,579 ) (577 ) 19,933 130,192
Furniture and fixtures 189,887 19,577 — (1,639 ) (51,452 ) (164 ) 17,812 174,021
Right-of-use assets 998,305 123,198 — (16,426 ) (128,246 ) — (221 ) 976,610
Bearer plants 137,331 — — (7 ) (7,143 ) — 5,753 135,934
Construction-in-progress 6,333,673 5,657,949 — (3,127 ) — (15,263 ) (4,164,277 ) 7,808,955
~~W~~ 35,206,248 6,002,228 2,636 (60,239 ) (2,602,239 ) (179,400 ) 173,876 38,543,110
(*1) Represents increases in property, plant and equipment upon inclusion of SK Solar Plant into a subsidiary by<br>acquiring shares during the nine-month period ended September 30, 2024.
--- ---
(*2) The Group estimated the recoverable amount after calculating the net fair value of individual assets whose<br>operation was suspended due to operation plan changes, such as steelmaking plant no. 1 and blast furnace no. 4 in Pohang, and recognized an impairment loss of ~~W~~179,400 million on property, plant and equipment during the nine-month<br>period ended September 30, 2024.
--- ---
(*3) Represents assets transferred from construction-in-progress to intangible assets and other property, plant and<br>equipment, reclassifications resulting from change in purpose of use, adjustments of foreign currency translation differences and others.
--- ---

26

Table of Contents

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

2) For the year ended December 31, 2023
(in millions of Won) Beginning Acquisitions BusinessCombination(*1) Disposals Depreciation Impairmentloss(*2,3) Others(*4) Ending
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Land ~~W~~ 3,103,165 83,489 32,565 (7,502 ) — (5,471 ) 83,998 3,290,244
Buildings 4,174,894 53,344 5,770 (14,619 ) (326,280 ) (28,614 ) 563,137 4,427,632
Structures 3,162,927 16,498 3,651 (6,915 ) (261,970 ) (28,483 ) 195,816 3,081,524
Machinery and equipment 16,422,830 211,181 — (63,195 ) (2,401,947 ) (202,885 ) 2,573,208 16,539,192
Vehicles 52,131 34,004 — (782 ) (26,322 ) — 20,564 79,595
Tools 90,961 40,170 — (607 ) (52,444 ) (77 ) 50,862 128,865
Furniture and fixtures 173,345 36,975 655 (1,516 ) (61,947 ) (63 ) 42,438 189,887
Right-of-use assets 921,198 243,433 — (15,095 ) (170,386 ) — 19,155 998,305
Bearer plants 141,720 — — — (9,579 ) — 5,190 137,331
Construction-in-progress 3,538,025 6,388,837 — (2,269 ) — (8,420 ) (3,582,500 ) 6,333,673
~~W~~ 31,781,196 7,107,931 42,641 (112,500 ) (3,310,875 ) (274,013 ) (28,132 ) 35,206,248
(*1) Represents increases in property, plant and equipment upon reclassification of QSONE Co.,Ltd., which was<br>previously an associate, into a subsidiary by acquiring additional shares during the year ended December 31, 2023.
--- ---
(*2) The Group estimated the recoverable amount after calculating the net fair value of individual assets whose<br>operation was suspended due to operation plan changes, such as lithium production facilities in Gwangyang and Argentina, and recognized an impairment loss of ~~W~~196,207 million on property, plant and equipment whose recoverable amount<br>was less than the book value during the year ended December 31, 2023.
--- ---
(*3) The Group estimated the recoverable amount after calculating the value in use of the hydrogen peroxide<br>manufacturing facility in Gwangyang, which had impairment indications due to changes in raw material prices and changes in production plans during the year ended December 31, 2023, and recognized an impairment loss of<br>~~W~~46,535 million on property, plant and equipment whose recoverable amount was less than the book value.
--- ---
(*4) Represents assets transferred from construction-in-progress to intangible assets and other property, plant and<br>equipment, reclassifications resulting from change in purpose of use, adjustments of foreign currency translation differences and others.
--- ---

27

Table of Contents

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

(b) Changes in the carrying amount of right-of-use assets presented as investment property and property, plant and<br>equipment for the nine-month period ended September 30, 2024 and the year ended December 31, 2023 are as follows:
1) For the nine-month period ended September 30, 2024
--- ---
(in millions of Won) Beginning Acquisitions Depreciation Others Ending
--- --- --- --- --- --- --- --- --- --- --- --- ---
Land ~~W~~ 363,789 1,178 (13,172 ) 11,527 363,322
Buildings and structures 151,366 53,384 (37,129 ) (9,381 ) 158,240
Machinery and equipment 355,604 34,344 (37,009 ) (4,646 ) 348,293
Vehicles 48,228 9,294 (14,685 ) 405 43,242
Ships 220,754 — (18,042 ) — 202,712
Others 29,895 22,834 (13,212 ) (9,049 ) 30,468
~~W~~ 1,169,636 121,034 (133,249 ) (11,144 ) 1,146,277
2) For the year ended December 31, 2023
--- ---
(in millions of Won) Beginning Acquisitions Depreciation Others Ending
--- --- --- --- --- --- --- --- --- --- --- --- ---
Land ~~W~~ 368,167 10,470 (15,582 ) 734 363,789
Buildings and structures 163,648 49,929 (52,697 ) (9,514 ) 151,366
Machinery and equipment 319,021 73,761 (55,481 ) 18,303 355,604
Vehicles 18,652 38,410 (16,456 ) 7,622 48,228
Ships 215,496 28,178 (22,920 ) — 220,754
Others 6,862 42,901 (12,885 ) (6,983 ) 29,895
~~W~~ 1,091,846 243,649 (176,021 ) 10,162 1,169,636
(c) The amounts recognized in profit or loss related to leases for each of the three-month and the nine-month<br>periods ended September 30, 2024 and 2023 are as follows:
--- ---
For the three-month periodsended September 30 For the nine-month periodsended September 30
--- --- --- --- --- --- --- --- ---
(in millions of Won) 2024 2023 2024 2023
Interest on lease liabilities ~~W~~ 12,880 19,465 37,192 39,103
Expenses related to short-term leases 11,584 12,857 40,028 37,822
Expenses related to leases of low-value assets 6,502 6,601 19,373 16,069
~~W~~ 30,966 38,923 96,593 92,994

28

Table of Contents

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

13. Goodwill and Other Intangible Assets

Changes in the carrying amount of goodwill and other intangible assets for the nine-month period ended September 30, 2024 and the year ended December 31, 2023 are as follows:

(a) For the nine-month period ended September 30, 2024
(in millions of Won) Beginning Acquisitions BusinessCombination Disposals Amortization Impairmentloss Others(*2) Ending
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Goodwill ~~W~~ 403,172 — 282 — — (282 ) (4,339 ) 398,833
Intellectual property rights 3,029,651 229,808 — (1 ) (208,190 ) — 78,336 3,129,604
Membership(*1) 138,184 1,470 — (3,707 ) (141 ) 58 197 136,061
Development expense 126,818 2,015 — — (55,702 ) — 18,062 91,193
Port facilities usage rights 182,411 — — — (11,100 ) — — 171,311
Exploratation and evaluation assets 163,446 33,625 — — — — (108,301 ) 88,770
Development assets 10,235 478 — — — — 112,540 123,253
Customer relationships 196,895 — — — (33,359 ) — (6,492 ) 157,044
Other intangible assets 463,972 52,585 — (101,937 ) (43,902 ) (6 ) 1,678 372,390
~~W~~ 4,714,784 319,981 282 (105,645 ) (352,394 ) (230 ) 91,681 4,668,459
(*1) Estimated useful life of membership is indefinite.
--- ---
(*2) Represents assets transferred from construction-in-progress to intangible assets and assets transferred from<br>property, plant and equipment, adjustments of foreign currency translation difference and others.
--- ---
(b) For the year ended December 31, 2023
--- ---
(in millions of Won) Beginning Acquisitions Disposals Amortization Impairmentloss(*2) Others(*3) Ending
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Goodwill ~~W~~ 442,487 — — — (36,093 ) (3,222 ) 403,172
Intellectual property rights 3,136,072 208,874 (5 ) (321,752 ) (89,986 ) 96,448 3,029,651
Membership(*1) 132,942 7,360 (1,920 ) (170 ) 11 (39 ) 138,184
Development expense 116,171 13,130 (97 ) (73,319 ) — 70,933 126,818
Port facilities usage rights 197,211 — — (14,800 ) — — 182,411
Exploratation and evaluation assets 100,991 67,000 — — (1,204 ) (3,341 ) 163,446
Development assets 78,970 27,831 — — — (96,566 ) 10,235
Customer relationships 241,311 — — (44,478 ) — 62 196,895
Other intangible assets 392,296 139,100 (625 ) (43,674 ) (2,055 ) (21,070 ) 463,972
~~W~~ 4,838,451 463,295 (2,647 ) (498,193 ) (129,327 ) 43,205 4,714,784
(*1) Estimated useful life of membership is indefinite.
--- ---
(*2) During the year ended December 31, 2023, POSCO Canada Ltd., a subsidiary, decided to make an investment in<br>kind by investing Greenhills Mine, which had been recognized as a joint operation, to a new partnership established by Teck Coal Partnership, the main operator. POSCO Canada Ltd. estimated the recoverable amount considering the fair value and<br>acquired shares of the new partnership, and recognized an impairment loss of ~~W~~88,518 million since recoverable amounts are less than their carrying amounts.
--- ---
(*3) Represents assets transferred from construction-in-progress to intangible assets and assets transferred from<br>property, plant and equipment, adjustments of foreign currency translation difference and others.
--- ---

29

Table of Contents

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

14. Other Assets

Other assets as of September 30, 2024 and December 31, 2023 are as follows:

(in millions of Won) September 30, 2024 December 31, 2023
Current
Advance payments ~~W~~ 506,502 593,300
Prepaid expenses 317,669 226,960
Firm commitment asset 9,426 3,418
Others 11,998 17,306
845,595 840,984
Non-current
Long-term advance payments 35,282 46,989
Long-term prepaid expenses 21,588 30,232
Others 78,248 95,974
~~W~~ 135,118 173,195

30

Table of Contents

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

15. Borrowings

(a) Short-term borrowings and current portion of long-term borrowings and others as of<br>September 30, 2024 and December 31, 2023 are as follows:
(in millions of Won) Lenders Issuance date Maturity date Interest rate (%) 9/30/2024 12/31/2023
--- --- --- --- --- --- --- --- --- --- --- --- ---
Short-term borrowings
Bank overdrafts JP Morgan and others January, 2024~<br>September, 2024 October, 2024~<br>July, 2025 3.65 ~ 7.20 ~~W~~ 51,881 69,160
Short-term borrowings HSBC and others October, 2023~<br>September, 2024 October, 2024~<br>September, 2025 0.40 ~ 62.00 6,293,361 4,890,120
6,345,242 4,959,280
Current portion of long-term liabilities
Current portion of long-term borrowings Export-Import Bank of Korea and others September, 2001~<br>June, 2024 October, 2024~<br>September, 2025 0.19 ~ 9.30 681,426 990,088
Current portion of debentures KB Securities co., Ltd. and others July, 2019~<br>May, 2023 October, 2024~<br>September, 2025 1.64 ~ 5.26 4,704,644 3,255,375
Less: Current portion of discount on debentures issued (5,314 ) (2,217 )
Current portion of exchangable bonds(*1) Foreign currency exchangable bonds September, 2021 September, 2026 39,919 1,756,691
5,420,675 5,999,937
~~W~~ 11,765,917 10,959,217
(*1) The issuance conditions of the exchangeable bonds issued by the Group are as follows. As of<br>September 30, 2024, exchangeable bonds are reclassified as current liabilities because the bondholders’ put option for redemption has become exercisable within 12 months.
--- ---
Foreign currency exchangable bonds
--- ---
Type of bond Exchangable bonds
Aggregate principal amount(*1) EUR 27,100,000
Interest rate - Coupon rate : -
- Yield to Maturity : (0.78%)
Maturity date September 1, 2026
Redemption 1) Redemption at Maturity : Outstanding bond principal, which is not repaid early or which call option is not exercised<br>on, is repaid at maturity as a lump sum
2) Prepayment : The issuer has call option and the bondholders have put option
Exchange rate 100%
Exchange price (Won/share)(*2) 440,592
Underlying shares exchange Registered common shares (treasury shares)
Exchange period From October 12, 2021 to August 22, 2026
Adjustments for exchange price Adjusting the exchange price according to the terms and conditions of the bond in the events of reason for adjusting the<br>exchange price such as, bonus issue, share split, share consolidation, change of share type, issuance of options or warranties to shareholders, share dividend, cash dividend, issuance of new shares under the market price.
Put option by bondholders - 3 years (September 1, 2024) from the closing date
- In the event of a change of control of the Company
- Where the shares issued by the Company are delisted (or suspended for more than 30 consecutive trading<br>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<br>consecutive trading days in a row, after 3 years (September 1, 2024) from the closing day to 30 business days before the maturity of bonds.
- When the outstanding balance of outstanding bonds is less than 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.

31

Table of Contents

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

(*1) Due to put option exercised by bondholders, EUR 1,038,800,000 of EUR 1,065,900,000 in aggregate principal<br>amount of exchangeable bonds was redeemed during the nine-month period ended September 30, 2024.
(*2) The exchange price has changed due to cash dividends paid during the nine-month period ended September 30,<br>2024.
--- ---

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

(b) Long-term borrowings, excluding current portion and others, as of September 30, 2024 and December 31,<br>2023 are as follows:
(in millions of Won) Lenders Issuance date Maturity date Interest rate (%) September 30, 2024 December 31, 2023
--- --- --- --- --- --- --- --- --- --- --- ---
Long-term borrowings Export-Import Bank of Korea and others September, 2001~<br>September, 2024 October, 2025~<br>March, 2040 1.00 ~ 8.50 ~~W~~ 4,720,532 4,590,541
Less: Present value discount (13,233 ) (9,414 )
Bonds KB Securities co., Ltd. and others July, 2019~<br>September, 2024 October, 2025~ January, 2033 1.72 ~ 6.38 9,481,347 10,478,394
Less: Discount on debentures issued (43,720 ) (48,358 )
~~W~~ 14,144,926 15,011,163
(c) Assets pledged as collateral with regard to the borrowings as of September 30, 2024 are as follows:<br>
--- ---
(in millions of Won) Lenders Book value Pledged amount
--- --- --- --- --- ---
Property, plant and equipment and Investment property Korea Development Bank and others ~~W~~ 3,572,133 3,395,576
Trade accounts and notes receivable Korea Development Bank and others 113,535 113,535
Financial instruments Shinhan Bank and others 53,464 53,464
~~W~~ 3,739,132 3,562,575

16. Other Payables

Other payables as of September 30, 2024 and December 31, 2023 are as follows:

(in millions of Won) September 30, 2024 December 31, 2023
Current
Accounts payable ~~W~~ 1,195,800 1,174,097
Accrued expenses 1,239,347 1,046,891
Dividend payable 2,875 3,261
Lease liabilities 164,736 163,952
Withholdings 345,951 349,277
~~W~~ 2,948,709 2,737,478
Non-current
Accounts payable ~~W~~ 9,542 14,143
Accrued expenses 8,229 8,073
Lease liabilities 733,087 760,368
Long-term withholdings 77,120 90,981
~~W~~ 827,978 873,565

32

Table of Contents

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

17. Other Financial Liabilities

Other financial liabilities as of September 30, 2024 and December 31, 2023 are as follows:

(in millions of Won) September 30, 2024 December 31, 2023
Current
Derivative liabilities ~~W~~ 46,108 38,631
Financial guarantee liabilities 5,987 5,114
Others(*1) 197,468 119,881
~~W~~ 249,563 163,626
Non-current
Derivative liabilities ~~W~~ 18,149 81,291
Financial guarantee liabilities 9,708 7,858
Others 64,633 64,633
~~W~~ 92,490 153,782
(*1) The Group recognized other financial liabilities in connection with the put option agreement which POSCO FUTURE<br>MATERIALS CANADA INC. (formerly, POSCO CHEMICAL CANADA INC.), a subsidiary, entered into with GM Battery Raw Materials Corporation.
--- ---

33

Table of Contents

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

18. Provisions

(a) Provisions as of September 30, 2024 and December 31, 2023 are as follows:
(in millions of Won) September 30, 2024 December 31, 2023
--- --- --- --- --- --- --- --- ---
Current Non-current Current Non-current
Provision for bonus payments ~~W~~ 114,822 41,346 146,277 38,114
Provision for construction warranties 49,711 142,463 50,222 146,536
Provision for legal contingencies and claims(*1) 14,940 53,440 20,893 52,169
Provision for the restoration 9,234 176,473 14,567 161,253
Others(*2) 168,577 56,283 187,785 69,937
~~W~~ 357,284 470,005 419,744 468,009
(*1) The Group recognized probable outflow of resources amounting to ~~W~~46,943 million and<br>~~W~~45,712 million as provisions for legal contingencies and asserted claim in relation to lawsuits against the Group as of September 30, 2024 and December 31, 2023, 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 September 30, 2024 and December 31, 2023, the Group recognized ~~W~~54,859 million and ~~W~~64,166 million respectively, as<br>provision.
--- ---

34

Table of Contents

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

(b) Changes in provisions for the nine-month period ended September 30, 2024 and the year ended<br>December 31, 2023 are as follows:
1) For the nine-month period ended September 30, 2024
--- ---
(in millions of Won) Beginning Increase Utilization Reversal Others(*1) Ending
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Provision for bonus payments ~~W~~ 184,391 137,993 (158,828 ) (7,943 ) 555 156,168
Provision for construction warranties 196,758 38,524 (31,182 ) (5,763 ) (6,163 ) 192,174
Provision for legal contingencies and claims 73,062 9,972 (8,559 ) (4,635 ) (1,460 ) 68,380
Provision for the restoration 175,820 16,375 (5,636 ) (6,411 ) 5,559 185,707
Others 257,722 103,476 (112,100 ) (55,864 ) 31,626 224,860
~~W~~ 887,753 306,340 (316,305 ) (80,616 ) 30,117 827,289
(*1) Includes adjusted foreign currency translation differences and others.
--- ---
2) For the year ended December 31, 2023
--- ---
(in millions of Won) Beginning Increase Utilization Reversal Others(*1) Ending
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Provision for bonus payments ~~W~~ 169,432 181,221 (158,529 ) (6,063 ) (1,670 ) 184,391
Provision for construction warranties 205,974 42,653 (49,117 ) (8,350 ) 5,598 196,758
Provision for legal contingencies and claims 106,341 16,327 (48,144 ) (3,599 ) 2,137 73,062
Provision for the restoration 191,146 104,227 (9,887 ) (80 ) (109,586 ) 175,820
Others 423,013 189,227 (255,001 ) (112,909 ) 13,392 257,722
~~W~~ 1,095,906 533,655 (520,678 ) (131,001 ) (90,129 ) 887,753
(*1) Includes transfer to liabilities held for sale and adjusted foreign currency translation differences and<br>others.
--- ---

35

Table of Contents

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

19. Employee Benefits

(a) Defined contribution plans

The expenses related to post-employment benefit plans under defined contribution plans for each of the three-month and the nine-month periods ended September 30, 2024 and 2023 are as follows:

(in millions of Won) For the three-month periodsended September 30 For the nine-month periodsended September 30
2024 2023 2024 2023
Expense related to post-employment benefit plans under defined contribution plans ~~W~~ 18,827 16,290 56,227 50,259
(b) Defined benefit plans
--- ---
1) The amounts recognized in relation to net defined benefit assets in the statements of financial position as of<br>September 30, 2024 and December 31, 2023 are as follows:
--- ---
(in millions of Won) September 30, 2024 December 31, 2023
--- --- --- --- --- --- ---
Present value of funded obligations ~~W~~ 2,437,315 2,445,797
Fair value of plan assets(*1) (2,807,552 ) (2,902,714 )
Present value of non-funded obligations 15,462 30,912
Net defined benefit liabilities ~~W~~ (354,775 ) (426,005 )
(*1) As of September 30, 2024 and December 31, 2023, the Group recognized net defined benefit assets<br>amounting to ~~W~~438,566 million and ~~W~~464,758 million, respectively, which represent the excess of each consolidated entity’s plan assets over the present value of defined benefit obligations.<br>
--- ---
2) The amounts recognized in the interim condensed consolidated statements of comprehensive income for each of the<br>three-month and the nine-month periods ended September 30, 2024 and 2023 are as follows:
--- ---
For the three-month periodsended September 30 For the nine-month periodsended September 30
--- --- --- --- --- --- --- --- --- --- --- --- ---
(in millions of Won) 2024 2023 2024 2023
Current service costs ~~W~~ 66,208 59,180 199,556 173,013
Net interest costs (5,590 ) (7,926 ) (16,175 ) (22,549 )
~~W~~ 60,618 51,254 183,381 150,464

36

Table of Contents

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

20. Other Liabilities

Other liabilities as of September 30, 2024 and December 31, 2023 are as follows:

(in millions of Won) September 30, 2024 December 31, 2023
Current
Due to customers for contract work ~~W~~ 477,116 624,632
Advances received 372,291 304,441
Unearned revenue 84,654 69,062
Withholdings 273,270 297,442
Firm commitment liability 10,897 20,136
Others(*1) 19,733 21,929
~~W~~ 1,237,961 1,337,642
Non-current
Unearned revenue ~~W~~ 4,915 8,889
Others(*1) 97,999 105,583
~~W~~ 102,914 114,472
(*1) As of September 30, 2024 and December 31, 2023, the Group recognized the assumed liability amounting<br>to ~~W~~45,931 million and ~~W~~56,325 million, respectively, related to unfavorable terms of a customer contract relative to market-terms upon the acquisition of Senex Energy Limited by Senex Holdings PTY LTD, a<br>subsidiary.
--- ---

37

Table of Contents

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

21. Financial Instruments

(a) Classification and fair value of financial instruments
1) The carrying amount and fair values of financial assets and financial liabilities by fair value hierarchy as of<br>September 30, 2024 and December 31, 2023 are as follows:
--- ---
① September 30, 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~~ 279,097 — 279,097 — 279,097
Short-term financial instruments 2,967,571 — 2,967,571 — 2,967,571
Equity securities 75,265 33,601 — 41,664 75,265
Debt securities 102,148 — 81,404 20,744 102,148
Other securities 711,633 — — 711,633 711,633
Derivative hedging instruments(*2) 22,901 — 22,901 — 22,901
Fair value through other comprehensive income
Equity securities 1,737,873 1,308,965 — 428,908 1,737,873
Financial assets measured at amortized cost(*1)
Cash and cash equivalents 7,728,931 — — — —
Trade accounts and notes receivable 9,238,347 — — — —
Other receivables 3,005,623 — — — —
Debt securities 934,173 — — — —
Deposit instruments 4,488,076 — — — —
~~W~~ 31,291,638 1,342,566 3,350,973 1,202,949 5,896,488
Financial liabilities
Fair value through profit or loss
Derivative liabilities ~~W~~ 53,000 — 53,000 — 53,000
Borrowings 39,919 39,919 — — 39,919
Other financial Liabilities 196,846 — — 196,846 196,846
Derivative hedging instruments(*2) 11,256 — 11,256 — 11,256
Financial liabilities measured at amortized cost(*1)
Trade accounts and notes payable 5,639,015 — — — —
Borrowings 25,870,924 — 26,008,560 — 26,008,560
Financial guarantee liabilities 15,695 — — — —
Others 3,394,435 — — — —
Other financial Liabilities 65,256 — — — —
~~W~~ 35,286,346 39,919 26,072,816 196,846 26,309,581
(*1) Fair value of financial assets and liabilities measured at amortized cost, except borrowings, approximates<br>their carrying amounts.
--- ---
(*2) The Group applies hedge accounting which uses forward contracts as hedging instrument in order to hedge the<br>risk of changes in fair value of product prices regarding firm commitments or purchase commitments. Also, the Group applies cash flow hedge accounting which uses currency swap as hedging instrument in order to hedge the risk of interest rate and<br>foreign exchange rate changes in foreign currency which influences cash flow from borrowings.
--- ---

38

Table of Contents

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

② December 31, 2023
(in millions of Won) Fair value
--- --- --- --- --- --- --- --- --- --- ---
Book value Level 1 Level 2 Level 3 Total
Financial assets
Fair value through profit or loss
Derivative assets ~~W~~ 291,541 — 291,541 — 291,541
Short-term financial instruments 6,540,407 — 6,540,407 — 6,540,407
Equity securities 99,254 61,665 — 37,589 99,254
Debt securities 88,196 — 75,183 13,013 88,196
Other securities 669,687 — 270 669,417 669,687
Derivative hedging instruments(*2) 9,601 — 9,601 — 9,601
Fair value through other comprehensive income
Equity securities 1,694,277 1,539,205 — 155,072 1,694,277
Financial assets measured at amortized cost(*1)
Cash and cash equivalents 6,670,879 — — — —
Trade accounts and notes receivable 9,155,853 — — — —
Other receivables 2,750,036 — — — —
Debt securities 295,201 — — — —
Deposit instruments 4,423,327 — — — —
~~W~~ 32,688,259 1,600,870 6,917,002 875,091 9,392,963
Financial liabilities
Fair value through profit or loss
Derivative liabilities ~~W~~ 116,748 — 116,748 — 116,748
Borrowings 1,756,691 1,756,691 — — 1,756,691
Other financial Liabilities 119,258 — — 119,258 119,258
Derivative hedging instruments(*2) 3,174 — 3,174 — 3,174
Financial liabilities measured at amortized cost(*1)
Trade accounts and notes payable 5,782,825 — — — —
Borrowings 24,213,688 — 24,310,166 — 24,310,166
Financial guarantee liabilities 12,972 — — — —
Others 3,241,459 — — — —
Other financial Liabilities 65,256 — — — —
~~W~~ 35,312,071 1,756,691 24,430,088 119,258 26,306,037
(*1) Fair value of financial assets and liabilities measured at amortized cost, except borrowings, approximates<br>their carrying amounts.
--- ---
(*2) The Group applies hedge accounting which uses forward contracts as hedging instrument in order to hedge the<br>risk of changes in fair value of product prices regarding firm commitments or purchase commitments. Also, the Group applies cash flow hedge accounting which uses currency swap as hedging instrument in order to hedge the risk of interest rate and<br>foreign exchange rate changes in foreign currency which influences cash flow from borrowings.
--- ---

39

Table of Contents

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

2) Finance income and costs by category of financial instrument for each of the nine-month periods ended<br>September 30, 2024 and 2023 are as follows:
① For the nine-month period ended September 30, 2024
--- ---
(in millions of Won) Finance income and costs
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Interest income(expense) Gain and losson valuation Gain and loss onforeign currency Gain and losson disposal Others Total Other<br>comprehensiveincome (loss)
Financial assets at fair value through profit or loss ~~W~~ — 109,930 — 92,375 819 203,124 —
Derivative assets — 165,915 — 238,056 — 403,971 —
Financial assets at fair value through other comprehensive income — — — — 71,811 71,811 (27,453 )
Financial assets measured at amortized cost 446,113 — 293,084 (57,778 ) (3,834 ) 677,585 —
Financial liabilities at fair value through profit or loss — 236,931 (56,301 ) (6,258 ) — 174,372 —
Derivative liabilities — 25,903 — (210,968 ) — (185,065 ) (443 )
Financial liabilities measured at amortized cost (787,113 ) — (421,586 ) — (22,701 ) (1,231,400 ) —
~~W~~ (341,000 ) 538,679 (184,803 ) 55,427 46,095 114,398 (27,896 )
② For the nine-month period ended September 30, 2023
--- ---
(in millions of Won) Finance income and costs
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Interest income(expense) Gain and losson valuation Gain and loss onforeign currency Gain and losson disposal Others Total Other<br>comprehensiveincome (loss)
Financial assets at fair value through profit or loss ~~W~~ — 364,273 — 161,168 555 525,996 —
Derivative assets — 299,466 — 219,202 — 518,668 —
Financial assets at fair value through other comprehensive income — — — — 45,658 45,658 212,172
Financial assets measured at amortized cost 352,767 — 420,835 (56,032 ) 10,884 728,454 —
Financial liabilities at fair value through profit or loss — (429,985 ) (93,331 ) — — (523,316 ) —
Derivative liabilities — 41,412 — (219,034 ) — (177,622 ) (2,541 )
Financial liabilities measured at amortized cost (753,583 ) — (803,049 ) — (26,918 ) (1,583,550 ) —
~~W~~ (400,816 ) 275,166 (475,545 ) 105,304 30,179 (465,712 ) 209,631
(b) Financial risk management
--- ---

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

40

Table of Contents

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

22. Share Capital and Capital Surplus

(a) Share capital as of September 30, 2024 and December 31, 2023 is as follows:
(Share, in Won) September 30, 2024 December 31, 2023
--- --- --- --- ---
Authorized shares 200,000,000 200,000,000
Par value ~~W~~ 5,000 5,000
Issued shares(*1, 2) 82,624,377 84,571,230
Shared capital(*3) ~~W~~ 482,403,125,000 482,403,125,000
(*1) As of September 30, 2024, the total number of American Depository Receipts (ADRs) outstanding in overseas<br>stock market amounts to 20,116,948 and such ADRs are equivalent to 5,029,237 shares of common stock.
--- ---
(*2) Pursuant to the resolution of the Board of Directors’ meeting on July 12, 2024, the Company decided<br>to retire 1,946,853 shares using distributable profits, and the retirement of shares was completed on August 6, 2024. As a result, as of September 30, 2024, the Company’s total number of issued shares has decreased from 84,571,230 to<br>82,624,377.
--- ---
(*3) As of September 30, 2024, the difference between the ending balance of common stock and the aggregate par<br>value of issued common stock is ~~W~~69,281 million due to retirement of 13,856,248 treasury stocks.
--- ---
(b) Capital surplus as of September 30, 2024 and December 31, 2023 is as follows:
--- ---
(in millions of Won) September 30, 2024 December 31, 2023
--- --- --- --- ---
Share premium ~~W~~ 463,825 463,825
Gain on disposal of treasury shares 808,994 808,994
Other capital surplus 375,918 390,515
~~W~~ 1,648,737 1,663,334

41

Table of Contents

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

23. Other components of equity

Details of other equity items as of September 30, 2024 and December 31, 2023 are as follows:

(in millions of Won) September 30, 2024 December 31, 2023
Accumulated comprehensive loss of investments in associates and joint ventures ~~W~~ (114,445 ) (180,964 )
Changes in fair value of equity investments at fair value through other comprehensive<br>income 127,134 153,279
Foreign currency translation differences 376,842 94,605
Gains or losses on valuation of derivatives (1,258 ) (644 )
Others (50,164 ) 980
~~W~~ 338,109 67,256

24. Treasury Shares

Based on the Board of Directors’ resolution, the Group holds treasury shares for business purposes including price stabilization. Changes in treasury shares for the nine-month period ended September 30, 2024 and the year ended December 31, 2023 are as follows:

(shares, in millions of Won) September 30, 2024 December 31, 2023
Number of shares Amount Number of shares Amount
Beginning 8,695,023 ~~W~~ 1,889,658 8,722,053 ~~W~~ 1,892,308
Acquisition of treasury shares 255,428 92,311 — —
Disposal of treasury shares — — (27,030 ) (2,650 )
Retirement of treasury shares (1,946,853 ) (431,107 ) — —
Ending 7,003,598 ~~W~~ 1,550,862 8,695,023 ~~W~~ 1,889,658

42

Table of Contents

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

25. Revenue

(a) Disaggregation of revenue
1) Details of revenue disaggregated by types of revenue and timing of revenue recognition for each of the<br>nine-month periods ended September 30, 2024 and 2023 are as follows:
--- ---
① For the nine-month period ended September 30, 2024
--- ---
(in millions of Won) Infrastructure Secondarybattery materials
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Steel Trading Construction Logistics andothers Others Total
Types of revenue
Revenue from sales of goods ~~W~~ 28,642,479 15,009,876 — 5,988 2,297,474 — 45,955,817
Revenue from services 663,205 2,186,302 94,133 240,144 3,424 9,425 3,196,633
Revenue from construction contract — — 5,451,805 — 20,975 — 5,472,780
Others 131,090 4,588 40,696 33,180 — 48,215 257,769
~~W~~ 29,436,774 17,200,766 5,586,634 279,312 2,321,873 57,640 54,882,999
Timing of revenue recognition
Revenue recognized at a point in time ~~W~~ 28,773,569 15,014,464 308,117 39,168 2,297,474 48,215 46,481,007
Revenue recognized over time 663,205 2,186,302 5,278,517 240,144 24,399 9,425 8,401,992
~~W~~ 29,436,774 17,200,766 5,586,634 279,312 2,321,873 57,640 54,882,999
② For the nine-month period ended September 30, 2023
--- ---
(in millions of Won) Infrastructure Secondarybattery materials
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Steel Trading Construction Logistics andothers Others Total
Types of revenue
Revenue from sales of goods ~~W~~ 29,949,006 15,904,486 — 15,062 2,905,453 — 48,774,007
Revenue from services 608,097 2,371,617 102,345 286,901 3,127 15,687 3,387,774
Revenue from construction contract — — 6,014,918 — 30,950 — 6,045,868
Others 129,499 3,846 10,449 36,212 — 75,425 255,431
~~W~~ 30,686,602 18,279,949 6,127,712 338,175 2,939,530 91,112 58,463,080
Timing of revenue recognition
Revenue recognized at a point in time ~~W~~ 30,078,505 15,908,332 54,700 51,274 2,905,453 75,425 49,073,689
Revenue recognized over time 608,097 2,371,617 6,073,012 286,901 34,077 15,687 9,389,391
~~W~~ 30,686,602 18,279,949 6,127,712 338,175 2,939,530 91,112 58,463,080

43

Table of Contents

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

2) Details of revenue disaggregated by types of revenue and timing of revenue recognition for each of the<br>three-month periods ended September 30, 2024 and 2023 are as follows:
① For the three-month period ended September 30, 2024
--- ---
(in millions of Won) Infrastructure Secondarybattery materials
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Steel Trading Construction Logistics andothers Others Total
Types of revenue
Revenue from sales of goods ~~W~~ 9,511,165 5,361,162 — 962 706,106 — 15,579,395
Revenue from services 230,462 597,703 36,070 74,161 908 4,635 943,939
Revenue from construction contract — — 1,692,966 — 7,367 — 1,700,333
Others 38,596 1,500 31,871 10,874 — 14,860 97,701
~~W~~ 9,780,223 5,960,365 1,760,907 85,997 714,381 19,495 18,321,368
Timing of revenue recognition
Revenue recognized at a point in time ~~W~~ 9,549,761 5,362,662 118,190 11,836 706,106 14,860 15,763,415
Revenue recognized over time 230,462 597,703 1,642,717 74,161 8,275 4,635 2,557,953
~~W~~ 9,780,223 5,960,365 1,760,907 85,997 714,381 19,495 18,321,368
② For the three-month period ended September 30, 2023
--- ---
(in millions of Won) Infrastructure Secondarybattery materials
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Steel Trading Construction Logistics andothers Others Total
Types of revenue
Revenue from sales of goods ~~W~~ 9,627,210 5,186,527 — 2,088 1,074,456 — 15,890,281
Revenue from services 194,227 714,770 31,546 82,846 880 3,484 1,027,753
Revenue from construction contract — — 1,963,620 — 6,827 — 1,970,447
Others 43,864 1,160 4,165 11,289 — 11,872 72,350
~~W~~ 9,865,301 5,902,457 1,999,331 96,223 1,082,163 15,356 18,960,831
Timing of revenue recognition
Revenue recognized at a point in time ~~W~~ 9,671,074 5,187,687 6,800 13,150 1,074,456 11,873 15,965,040
Revenue recognized over time 194,227 714,770 1,992,531 83,073 7,707 3,483 2,995,791
~~W~~ 9,865,301 5,902,457 1,999,331 96,223 1,082,163 15,356 18,960,831
(b) Details of contract assets and liabilities from contracts with customers as of September 30, 2024 and<br>December 31, 2023 are as follows:
--- ---
(in millions of Won) September 30, 2024 December 31, 2023
--- --- --- --- ---
Receivables
Account receivables ~~W~~ 9,238,250 9,155,853
Contract assets
Due from customers for contract work 1,669,196 1,901,966
Contract liabilities
Advance received 377,848 309,441
Due to customers for contract work 477,116 624,632
Unearned revenue 88,994 77,908

44

Table of Contents

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

26. Contract under Input Method

(a) Details of outstanding contracts as of September 30, 2024 and December 31, 2023 are as follows:<br>
(in millions of Won) September 30, 2024 December 31, 2023
--- --- --- --- --- --- --- --- --- --- --- --- ---
Constructionsegment Others Constructionsegment Others
Accumulated cost ~~W~~ 25,985,671 295,632 28,663,723 272,321
Accumulated contract profit 1,843,270 37,433 2,499,061 36,954
Accumulated contract loss (702,433 ) (11,613 ) (688,962 ) (8,916 )
Accumulated contract revenue 27,126,508 321,452 30,473,822 300,359
(b) Details of due from customers for contract work and due to customers for contract work as of September 30,<br>2024 and December 31, 2023 are as follows:
--- ---
(in millions of Won) September 30, 2024 December 31, 2023
--- --- --- --- --- --- --- --- --- --- --- --- ---
Constructionsegment Others Constructionsegment Others
Due from customers for contract ~~W~~ 1,649,243 33,581 1,873,681 42,557
Due to customers for contract work (470,178 ) (6,938 ) (608,339 ) (16,293 )
~~W~~ 1,179,065 26,643 1,265,342 26,264
(c) Details of the provisions for construction loss as of September 30, 2024 and December 31, 2023 are as<br>follows:
--- ---
(in millions of Won) September 30, 2024 December 31, 2023
--- --- --- --- ---
Construction segment ~~W~~ 54,772 48,825
Others 819 1,749
~~W~~ 55,591 50,574
(d) For the nine-month period ended September 30, 2024, the total contract revenues and the estimated total<br>contract 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 total Changes in estimated
contract revenues total contract costs Net income Future income Total
Construction segment ~~W~~ 854,955 1,071,165 (255,039 ) 38,829 (216,210 )
Others 8,903 4,400 3,569 934 4,503
~~W~~ 863,858 1,075,565 (251,470 ) 39,763 (211,707 )

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 September 30, 2024 and the estimated total contract revenue as of September 30, 2024. The estimated total contract costs and revenue are subject to change in future periods.

45

Table of Contents

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

(e) Uncertainty of estimates
1) Total contract revenues
--- ---

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

2) Total contract costs

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

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

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

46

Table of Contents

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

27. Selling and Administrative Expenses

(a) Other administrative expenses

Other administrative expenses for each of the three-month and nine-month periods ended September 30, 2024 and 2023 are as follows:

(in millions of Won) For the three-month periodsended September 30 For the nine-month periodsended September 30
2024 2023 2024 2023
Wages and salaries ~~W~~ 297,320 288,681 873,799 837,310
Expenses related to post-employment benefits 24,759 19,410 71,209 67,333
Other employee benefits 77,473 65,096 226,982 194,549
Travel 11,890 11,915 34,320 32,797
Depreciation 43,174 41,615 127,215 117,541
Amortization 28,291 23,898 84,913 69,875
Communication 3,902 2,621 10,211 7,983
Electricity 3,723 3,632 10,679 9,439
Taxes and public dues 14,239 23,034 63,070 77,402
Rental 10,871 12,421 32,929 39,035
Repairs 4,608 4,069 12,526 11,318
Entertainment 3,106 3,764 9,851 11,088
Advertising 24,195 26,011 69,509 71,384
Research & development 52,253 44,999 156,263 120,936
Service fees 48,226 63,609 174,380 159,180
Vehicles maintenance 2,064 1,720 6,035 5,716
Industry association fee 2,217 2,115 8,603 9,856
Conference 5,497 5,014 15,893 14,762
Others 25,579 17,894 56,744 49,409
Bad debt expenses 34,549 (1,013 ) 56,452 10,087
~~W~~ 717,936 660,505 2,101,583 1,917,000
(b) Selling expenses
--- ---

Selling expenses for each of the three-month and the nine-month periods ended September 30, 2024 and 2023 are as follows:

(in millions of Won) For the three-month periodsended September 30 For the nine-month periodsended September 30
2024 2023 2024 2023
Freight and custody expenses ~~W~~ 7,281 17,448 21,183 42,657
Operating expenses for distribution center 765 891 1,384 3,959
Sales commissions 17,222 8,159 58,979 48,879
Sales advertising 1,351 1,535 1,790 2,678
Sales promotion 2,329 2,305 7,536 6,781
Sample 744 760 1,869 1,754
Sales insurance premium 8,300 8,015 23,983 24,373
Contract cost 4,373 15,037 26,447 34,040
Others 3,039 179 7,394 9,060
~~W~~ 45,404 54,329 150,565 174,181

47

Table of Contents

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

28. Finance Income and Costs

Details of finance income and costs for each of the three-month and the nine-month periods ended September 30, 2024 and 2023 are as follows:

(in millions of Won) For the three-month periodsended September 30 For the nine-month periodsended September 30
2024 2023 2024 2023
Finance income
Interest income ~~W~~ 144,378 126,731 446,113 352,767
Dividend income 49,416 16,773 72,630 46,213
Gain on foreign currency transactions 332,979 354,184 965,803 1,268,870
Gain on foreign currency translations 321,449 (152,643 ) 786,405 341,904
Gain on derivatives transactions 117,868 118,673 261,701 257,568
Gain on valuations of derivatives (262,408 ) 91,311 252,873 406,524
Gain on disposal of financial assets at fair value through profit or loss 33,886 30,249 108,613 173,368
Gain on valuation of financial assets at fair value through profit or loss 27,748 (10,960 ) 154,385 379,237
Gain on valuation of financial liabilities at fair value through profit or loss 2,713 — 236,931 —
Others 3,364 4,030 8,262 12,706
~~W~~ 771,393 578,348 3,293,716 3,239,157
Finance costs
Interest expenses ~~W~~ 268,101 252,638 787,113 753,583
Loss on foreign currency transactions 375,354 367,003 929,150 1,194,669
Loss on foreign currency translations (17,473 ) (24,285 ) 1,007,861 891,650
Loss on derivatives transactions 92,673 77,300 234,613 257,400
Loss on valuation of derivatives (2,558 ) 8,193 61,055 65,646
Loss on disposal of trade accounts and notes receivable 19,429 14,796 57,778 56,032
Loss on disposal of financial assets at fair value through profit or loss 741 2,765 16,238 12,200
Loss on valuation of financial assets at fair value through profit or loss 17,317 (27,073 ) 44,455 14,964
Loss on valuation of financial liabilities at fair value through profit or loss — 309,681 — 429,985
Others 14,362 12,374 41,055 28,740
~~W~~ 767,946 993,392 3,179,318 3,704,869

48

Table of Contents

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

29. Other Non-Operating Income and Expenses

Details of other non-operating income and expenses for each of the three-month and the nine-month periods ended September 30, 2024 and 2023 are as follows:

(in millions of Won) For the three-month periodsended September 30 For the nine-month periodsended September 30
2024 2023 2024 2023
Other non-operating income
Recovery of other bad debt expenses ~~W~~ 3,184 2,529 6,875 3,084
Gain on disposals of investments in subsidiaries, associates and joint ventures(*1) 2,494 11,718 9,590 196,562
Gain on disposals of tangible assets 2,029 248 14,079 5,747
Gain on valuation of firm commitment 10,586 4,300 41,909 9,862
Reversal of other provisions 5,803 249 8,043 10,007
Premium income 175 1,612 782 10,542
Gain on bargain purchase(*1) — — — 32,965
Gain on disposals of emission rights (13,341 ) 1,796 2 25,855
Others 43,967 13,634 100,313 54,413
~~W~~ 54,897 36,086 181,593 349,037
Other non-operating expenses
Other bad debt expenses ~~W~~ 8,861 8,991 20,460 20,141
Loss on disposals of assets held for sale(*2) 18 896 34,830 103,366
Loss on disposals of investments in subsidiaries, associates and joint ventures (55 ) 4,375 42,539 8,776
Loss on disposals of property, plant and equipment 19,951 22,438 56,291 90,104
Impairment loss on property, plant and equipment 116,278 9,212 179,400 152,469
Impairment loss on intangible assets 351 20 362 4,792
Loss on valuation of firm commitment 9,222 13,951 28,366 36,221
Idle tangible asset expenses (422 ) 3,600 1,919 15,883
Increase to provisions 6,646 711 13,839 7,256
Donations 6,353 11,850 41,424 44,482
Others 11,205 11,314 53,791 47,644
~~W~~ 178,408 87,358 473,221 531,134
(*1) During the nine-month period ended September 30, 2023, investments in QSONE Co.,Ltd., which had been<br>previously classified as investments in associates, were reclassified as investments in subsidiaries. As a result, the Group recognized ~~W~~184,556 million of gain on disposals of investment in associates and<br>~~W~~32,965 million of gain on bargain purchase.
--- ---
(*2) During the nine-month period ended September 30, 2023, the Group disposed of CSP - Compania Siderurgica do<br>Pecem, which was classified as assets held for sale, and recognized ~~W~~102,470 million of loss on disposals of assets held for sale.
--- ---

49

Table of Contents

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

30. Expenses by Nature

Expenses that are recorded by nature as cost of sales, selling and administrative expenses, impairment loss on other receivables and other non-operating expenses in the statements of comprehensive income for each of the three-month and nine-month periods ended September 30, 2024 and 2023 are as follows (excluding finance costs and income tax expense):

(in millions of Won) For the three-month periodsended September 30 For the nine-month periodsended September 30
2024 2023 2024 2023
Raw material used, changes in inventories and others ~~W~~ 11,559,948 11,411,955 32,047,240 36,825,660
Employee benefits expenses 1,223,901 1,191,894 3,640,771 3,329,080
Outsourced processing cost 2,463,406 2,491,243 7,785,600 7,476,099
Electricity and water expenses 277,401 250,569 860,611 815,238
Depreciation(*1) 941,483 856,916 2,629,545 2,502,740
Amortization 115,833 126,561 352,394 369,038
Freight and custody expenses 637,633 558,360 1,881,609 1,643,893
Sales commissions 17,222 8,159 58,979 48,879
Loss on disposal of property, plant and equipment 19,951 22,438 56,291 90,104
Impairment loss on property, plant and equipment 116,278 9,212 179,400 152,469
Impairment loss on intangible assets 351 20 362 4,792
Donations 6,353 11,850 41,424 44,482
Other expenses 376,848 912,797 3,743,804 2,464,593
~~W~~ 17,756,608 17,851,974 53,278,030 55,767,067
(*1) Includes depreciation of investment property.
--- ---

31. Income Taxes

The effective tax rates of the Group for each of the nine-month periods ended September 30, 2024 and 2023 are 22.98% and 24.30%, respectively.

In 2023, the Pillar Two legislation has been enacted in the Republic of Korea, where the controlling company of the Group is domiciled, and will be effective for the fiscal years starting on or after January 1, 2024. Accordingly, the Group calculated the Pillar Two income tax expense for the nine-month period ended September 30, 2024 as the Group is subject to global minimum top-up tax under the application of the OECD’s Pillar Two Model Rules via domestic legislation. As a result of the Group’s assessment on the Pillar Two income taxes, the Group did not recognize any income tax expense for the nine-month period ended September 30, 2024 as the impact of the global minimum top-up tax on the interim condensed consolidated financial statements as of September 30, 2024 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, and accordingly, the Group did not recognize deferred tax assets and liabilities related to the global minimum top-up tax and does not disclose information related to deferred income tax.

50

Table of Contents

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

32. Earnings per Share

(a) Basic earnings per share for each of the three-month and nine-month periods ended September 30, 2024 and<br>2023 are as follows:
(in Won, except per share information) For the three-month periodsended September 30 For the nine-month periodsended September 30
--- --- --- --- --- --- --- --- ---
2024 2023 2024 2023
Profit attributable to controlling interest ~~W~~ 452,654,013,695 488,201,057,965 1,523,302,524,204 1,904,353,303,522
Weighted-average number of common shares outstanding(*1) 75,699,376 75,876,207 75,816,833 75,867,296
Basic earnings per share ~~W~~ 5,980 6,434 20,092 25,101
(*1) The weighted-average number of common shares used to calculate basic earnings per share is as follows:<br>
--- ---
(shares) For the three-month periodsended September 30 For the nine-month periodsended September 30
--- --- --- --- --- --- --- --- --- --- --- --- ---
2024 2023 2024 2023
Total number of common shares issued 83,297,040 84,571,230 84,143,400 84,571,230
Weighted-average number of treasury shares (7,597,664 ) (8,695,023 ) (8,326,567 ) (8,703,934 )
Weighted-average number of common shares outstanding 75,699,376 75,876,207 75,816,833 75,867,296
(b) The Group has exchangeable bonds that can be exchanged for common stocks with dilutive effects as of<br>September 30, 2024. Considering the anti-dilution effect as of September 30, 2023, the Group did not calculate diluted earnings per share. Diluted earnings per share for the three-month and nine-month periods ended September 30, 2024<br>are calculated as follows:
--- ---
(in Won, except share information) For the three-month periodended September 30, 2024 For the nine-month periodended September 30, 2024
--- --- --- --- --- --- ---
Profit for the period ~~W~~ 452,654,013,695 1,523,302,524,204
Gain or loss from revaluation of and exchange rate on exchangeable bonds (8,425,258,347 ) (138,904,137,256 )
Adjusted weighted-average number of common shares outstanding(*1) 78,013,947 78,757,791
Diluted earnings(loss) per share 5,694 17,578
(*1) The weighted-average number of common shares outstanding used to calculate diluted earnings per share is as<br>follows:
--- ---
(shares) For the three-month periodended September 30, 2024 For the nine-month periodended September 30, 2024
--- --- --- --- ---
Weighted-average number of common shares outstanding 75,699,376 75,816,833
Weighted-average number of potential common shares 2,314,571 2,940,958
Adjusted weighted-average number of common shares 78,013,947 78,757,791

51

Table of Contents

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

33. Related Party Transactions

(a) Related parties of the Group as of September 30, 2024 are as follows:
Type Company
--- ---
Investments in associates and joint ventures [Domestic]<br> <br>POSCO MC MATERIALS, Samcheok Blue<br>Power Co.,Ltd.,<br> <br>SNNC and others.
[Foreign]<br> <br>Roy Hill Holdings Pty Ltd, POSCO-NPS Niobium LLC, KOBRASCO,<br> <br>PT NICOLE METAL INDUSTRY, HBIS-POSCO Automotive Steel Co.,Ltd,<br><br><br>South -East Asia Gas Pipeline Company Ltd., 9404-5515 Quebec Inc.,<br><br><br>AES Mong Duong Power Company Limited, KOREA LNG LTD.,<br> <br>Nickel<br>Mining Company SAS and others.
(b) Significant transactions between the Group and its related parties for each of the nine-month periods ended<br>September 30, 2024 and 2023 are as follows:
--- ---
1) For the nine-month period ended September 30, 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~~ 163,004 — 1,427 — 136
SNNC 84,760 — 12 273,107 1,342
POSCO-SAMSUNG-SLOVAKIA PROCESSING CENTER 37,595 — — 782 —
Gunggi Green Energy 24,803 — — — 5,238
POS-SeAH Steel Wire(Tianjin) CO., Ltd. 10,106 — — — —
POS SeAH Steel Wire(Nantong) Co., Ltd. 38,199 — — 241 —
South-East Asia Gas Pipeline Company Ltd. — 41,843 — — —
POSCO MC MATERIALS 99,021 1,800 — 5,324 303
Samcheok Blue Power Co., Ltd. 234,445 8,208 687 — —
Pocheon-Hwado Highway Corp. 56,516 — — — 1
POSCO(Guangdong) Automotive Steel Co., Ltd 209,708 — — 237,225 —
HBIS-POSCO Automotive Steel Co., Ltd 32,117 — — 16,714 —
Roy Hill Holdings Pty Ltd 249 253,262 9,680 1,362,711 —
Others 83,752 105,101 3,957 145,873 242,498
~~W~~ 1,074,275 410,214 15,763 2,041,977 249,518
(*1) As of September 30, 2024, the Group provides payment guarantees to related parties (see Note 34).<br>
--- ---

52

Table of Contents

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

2) For the nine-month period ended September 30, 2023
(in millions of Won) Sales and others(*1) Purchase and others
--- --- --- --- --- --- --- --- --- --- ---
Sales Dividends Others Purchase ofmaterial Others
Associates and joint ventures(*1)
New Songdo International City Development, LLC ~~W~~ 148,716 — 1,484 — 267
SNNC 121,654 — 87 453,382 1,317
Noeul Green Energy 6,499 — 12 — 1,315
POS-SeAH Steel Wire(Tianjin) CO., Ltd. 11,514 — — — —
POS SeAH Steel Wire(Nantong) Co., Ltd. 31,586 — — 74 —
South-East Asia Gas Pipeline Company Ltd. — 40,971 — — —
POSCO MC MATERIALS 76,283 — 46 5,059 1,564
Samcheok Blue Power Co., Ltd. 410,672 7,494 — — —
Pocheon-Hwado Highway Corp. 93,754 — — — —
Roy Hill Holdings Pty Ltd — 257,174 — 1,261,855 —
Others 338,231 149,580 14,053 426,554 79,748
~~W~~ 1,238,909 455,219 15,682 2,146,924 84,211
(*1) As of September 30, 2023, the Group provides payment guarantees to related parties (see Note 34).<br>
--- ---
(c) The balances of receivables and payables arising from significant transactions between the Group and its<br>related parties as of September 30, 2024 and December 31, 2023 are as follows:
--- ---
1) September 30, 2024
--- ---
(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~~ 38,624 — 1,674 40,298 — 29,876 29,876
Gunggi Green Energy 6,180 — 10,706 16,886 — 498 498
POSCO(Guangdong) Automotive Steel Co., Ltd 48,629 4,541 — 53,170 41,786 — 41,786
AMCI(WA)PTYLTD — 140,976 — 140,976 — — —
HBIS-POSCOAutomotiveSteelCo.,Ltd 19,446 — — 19,446 1,664 4,615 6,279
POS-SeAH Steel Wire(Tianjin) CO., Ltd. 3,897 — — 3,897 — — —
Samcheok Blue Power Co., Ltd. 173,141 — 136 173,277 — 76,917 76,917
Nickel Mining Company SAS — 66,333 377 66,710 — 358 358
POS-SeAH Steel Wire(Nantong) Co., Ltd. 15,028 — — 15,028 — — —
POSCO MC MATERIALS 15,289 — 77 15,366 762 282 1,044
Pocheon-Hwado Highway Corp. 11,161 — — 11,161 — 3,175 3,175
UITrans LRT Co., Ltd. 1,139 51,051 8,873 61,063 — 2,554 2,554
Roy Hill Holdings Pty Ltd 27,521 — 8,538 36,059 204,841 — 204,841
SNNC 8,559 — 57 8,616 14,069 1,014 15,083
FQM Australia Holdings Pty Ltd — 265,572 — 265,572 — — —
Others 17,775 15,918 125,294 158,987 4,635 9,490 14,125
~~W~~ 386,389 544,391 155,732 1,086,512 267,757 128,779 396,536
(*1) As of September 30, 2024, the Group recognizes an allowance for doubtful account for receivables above<br>amounting to ~~W~~419,390 million.
--- ---

53

Table of Contents

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

2) December 31, 2023
(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~~ 15,260 — 1,497 16,757 — 39,089 39,089
Gunggi Green Energy 10,714 — 8,450 19,164 — 149 149
POSCO(Guangdong) Automotive Steel Co., Ltd 59,910 — 3 59,913 52,961 — 52,961
AMCI(WA)PTYLTD — 110,540 — 110,540 — — —
HBIS-POSCOAutomotiveSteelCo.,Ltd 21,912 — 103 22,015 1,805 8,837 10,642
POS-SeAH Steel Wire(Tianjin) CO., Ltd. 4,086 — — 4,086 — — —
Samcheok Blue Power Co., Ltd. 162,759 — 213 162,972 — 9,605 9,605
Nickel Mining Company SAS — 64,197 582 64,779 — 358 358
POS-SeAH Steel Wire(Nantong) Co., Ltd. 14,162 — — 14,162 — — —
POSCO MC MATERIALS 13,835 — 82 13,917 1,156 — 1,156
Pocheon-Hwado Highway Corp. 33,944 — — 33,944 — 7,712 7,712
UITrans LRT Co., Ltd. — 46,335 8,395 54,730 — 2,398 2,398
Roy Hill Holdings Pty Ltd 88,217 — 22,002 110,219 263,440 — 263,440
SNNC 15,072 — 60 15,132 25,352 1,731 27,083
FQM Australia Holdings Pty Ltd — 256,938 1,394 258,332 — — —
Others 17,499 16,589 124,849 158,937 4,837 5,599 10,436
~~W~~ 457,370 494,599 167,630 1,119,599 349,551 75,478 425,029
(*1) As of December 31, 2023, the Group recognizes an allowance for doubtful account for receivables above<br>amounting to ~~W~~404,872 million.
--- ---
(d) Major financial transactions between the Group and its related parties for the nine-month period ended<br>September 30, 2024 and the year ended December 31, 2023 are as follows:
--- ---
1) For the nine-month period ended September 30, 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 — (966 ) 345 4,205
Nickel Mining Company SAS 64,197 — — 2,136 66,333
KRAKATAU POS-CHEM<br>DONG-SUH CHEMICAL 2,579 — (1,379 ) 120 1,320
Hyo-chun Co., Ltd. 2,382 — — — 2,382
AMCI (WA) PTY LTD 112,177 4,905 — 23,894 140,976
POS-AUSTEM WUHAN AUTOMOTIVE CO.,LTD 5,158 — — 127 5,285
FQM Australia Holdings Pty Ltd 256,938 1,531 — 7,103 265,572
POHANG E&E Co. , LTD 1,646 1,082 — — 2,728
POSCO(Guangdong) Automotive Steel Co., Ltd. 14,332 47,610 (57,859 ) 458 4,541
~~W~~ 510,570 59,846 (60,204 ) 34,181 544,393
(*1) Includes adjustments of foreign currency translation differences and others.
--- ---

54

Table of Contents

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

2) For the year ended December 31, 2023
(in millions of Won) Beginning Lend Collect Others(*1) Ending
--- --- --- --- --- --- --- --- --- --- --- ---
Associates and joint ventures
UITrans LRT Co., Ltd. ~~W~~ 36,510 9,825 — — 46,335
PT. Tanggamus Electric Power 5,014 — (270 ) 82 4,826
PT. Wampu Electric Power 3,988 — (4,063 ) 75 —
Nickel Mining Company SAS 63,024 — (2,322 ) 3,495 64,197
KRAKATAU POS-CHEM<br>DONG-SUH CHEMICAL 3,802 — (1,323 ) 100 2,579
POS-SeAH Steel Wire (Thailand) Co., Ltd. 7,604 — (7,828 ) 224 —
AMCI (WA) PTY LTD 104,281 6,620 — 1,276 112,177
POS-AUSTEM WUHAN AUTOMOTIVE CO.,LTD 10,138 — (5,321 ) 341 5,158
Hyo-chun Co., Ltd. 2,382 — — — 2,382
POS-AUSTEM Suzhou Automotive Co., Ltd 12,673 — (13,219 ) 546 —
FQM Australia Holdings Pty Ltd 247,868 2,637 — 6,433 256,938
POHANG E&E Co. , LTD 100 1,546 — — 1,646
POSCO(Guangdong) Automotive Steel Co., Ltd. 35,131 — (35,131 ) — —
~~W~~ 532,515 20,628 (69,477 ) 12,572 496,238
(*1) Includes adjusted foreign currency translation differences and others.
--- ---
(e) For each of the nine-month periods ended September 30, 2024 and 2023, there were additional investments in<br>associates and joint ventures. (See Note 9 “Investments in Associates and Joint Ventures”).
--- ---
(f) For each of the nine-month periods ended September 30, 2024 and 2023, details of compensation to the<br>Group’s key management officers are as follows:
--- ---
(in millions of Won) September 30, 2024 September 30, 2023
--- --- --- --- ---
Short-term benefits ~~W~~ 123,032 147,078
Long-term benefits 7,754 6,903
Retirement benefits 19,865 23,183
~~W~~ 150,651 177,164

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.

55

Table of Contents

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

34. Commitments and Contingencies

(a) Contingent liabilities

Contingent liabilities may develop in a way not initially expected. Therefore, management continuously assesses contingent liabilities to determine whether an outflow of resources embodying economic benefits has become probable. If it becomes probable that an outflow of future economic benefits will be required for an item previously dealt with as a contingent liability, a provision is recognized in the consolidated financial statements of the period in which the change in probability occurs (except in the extremely rare circumstances where no reliable estimate can be made).

Management 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 supports of internal specialists or external consultants.

Management regularly analyzes current information about these matters and provides for probable contingent losses including the estimate of legal expense to resolve the matters. Internal and external lawyers are used for these assessments. In making the decision regarding the need for a provision, management considers whether the Group has an obligation as a result of a past event, whether it is probable that an outflow or cash or other resources embodying economic benefits will be required to settle the obligation and the ability to make a reliable estimate of the amount of the obligation.

56

Table of Contents

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

(b) Details of guarantees
1) Contingent liabilities on outstanding guarantees provided by the Group as of September 30, 2024 are as<br>follows:
--- ---
(in millions of Won) Guarantee limit Guarantee amount
--- --- --- --- --- --- --- --- --- --- --- ---
Guarantor Guarantee beneficiary Financial institution Foreign currency Won equivalent Foreign currency Won equivalent
[The Company]
POSCO HOLDINGS INC. POSCO Asia Co., Ltd. Credit Agricole and others USD 200,000,000 263,920 — —
POSCO Argentina S.A.U HSBC and others USD 4,664,400,000 6,155,142 600,844,618 792,875
POSCO POSCO MEXICO S.A. DE C.V. Citibank and others USD 40,000,000 52,784 40,000,000 52,784
POSCO-VIETNAM Co., Ltd. Shinhan Bank and others USD 110,000,000 145,156 49,999,999 65,980
POSCO COATED STEEL (THAILAND) CO., LTD. HSBC and others THB 4,800,000,000 195,600 2,736,000,000 111,492
POSCO ASSAN TST STEEL INDUSTRY Inc Citibank and others USD 122,850,000 162,113 122,850,000 162,113
POSCO INTERNATIONAL Corporation POSCO INTERNATIONAL GLOBAL DEVELOPMENT<br>PTE. LTD. POSCO Asia Co., Ltd. USD 180,000,000 237,528 150,000,000 197,940
GOLDEN LACE POSCO INTERNATIONAL CO., LTD. POSCO Asia Co., Ltd. USD 13,200,000 17,419 11,000,000 14,516
PT. Bio Inti Agrindo BTPN and others IDR 974,400,000,000 84,968 902,400,000,000 78,689
POSCO ASSAN TST STEEL INDUSTRY Inc Woori Bank Hong Kong and others USD 13,650,000 18,013 13,650,000 18,013
POSCO INTERNATIONAL Deutschland GmbH Bank Mendes Gans Amsterdam 20,107,014 26,533
POSCO INTERNATIONAL JAPAN Corp. 7,005,990 9,245
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. — —
POSCO INTERNATIONAL AUSTRALIA HOLDINGS PTY LTD — —
POSCO International MEXICO E-MOBILITY S.A de C.V — —
POSCO International POLAND E-MOBILITY Sp.z.o.o. USD 50,000,000 65,980 — —
POSCO INTERNATIONAL E&P MALAYSIA SDN. BHD. SC MALAYSIA USD 5,000,000 6,598 5,000,000 6,598
PT. KRAKATAU POSCO ENERGY POSCO Asia Co., Ltd. and others USD 102,903,407 135,791 47,251,419 62,353
Posco International Mexico e-Mobility S.A DE C.V. Export-Import Bank of<br>Korea and others USD 31,054,800 40,980 30,379,000 40,088
PT POSCO INTERNATIONAL ENP INDONESIA PT Bank Negara Indonesia USD 750,000 990 750,000 990
POSCO Eco & Challenge Co., Ltd. POSCO E&C Vietnam Co., Ltd. POSCO Asia Co., Ltd. USD 15,000,000 19,794 15,000,000 19,794
POSCO STEELEON CO., LTD. Myanmar POSCO C&C Company, Limited. POSCO Asia Co., Ltd. USD 13,986,947 18,457 9,952,170 13,133
POSCO FUTURE M CO., LTD. ULTIUM CAM LIMITED PARTNERSHIP Investissement Quebec,<br>Strategic Innovation Fund CAD 299,562,500 292,547 129,260,280 126,233
POSCO WIDE Co., Ltd POSCO Seoul Guarantee Insurance KRW 30 30 30 30
POSCO FUTURE M CO., LTD. KRW 68 68 68 68
[Associates and joint ventures]
POSCO HOLDINGS INC. Nickel Mining Company SAS SMBC EUR 46,000,000 67,807 46,000,000 67,807
POSCO POSUK Titanium Shinhan Bank USD 12,750,000 16,825 12,750,000 16,825
POSCO INTERNATIONAL Corporation GLOBAL KOMSCO Daewoo LLC Hana Bank Bahrain USD 6,650,000 8,775 6,650,000 8,775
POSCO Eco & Challenge Co., Ltd.(*1) Chun-cheon Energy Co., Ltd Kookmin Bank and others KRW 149,200 149,200 126,360 126,360
[Others]
POSCO Eco & Challenge Co., Ltd.(*2) Subcontractors for maintenance projects, etc. Kookmin Bank and others KRW 1,238,283 1,238,283 560,867 560,867
POSCO WIDE Co., Ltd. Korea Electric Power Corporation and others Seoul Guarantee Insurance KRW 8,157 8,157 8,157 8,157
POSCO AUSTRALIA PTY LTD Department of Trade and <br>Investment (NSW Government) and others Woori Bank and others AUD 18,422,062 16,809 18,422,062 16,809
PT. Bio Inti Agrindo KSU Mandob Sejatera Bank Muamalat IDR 80,000,000,000 6,976 30,933,333,333 2,697
POSCO-TCS AMATA NATURAL GAS DISTRIBUTION COMPANY LIMITED and others SC Bank THB 54,569,000 2,224 54,569,000 2,224
BUREAU OF INDIAN STANDARDS (BIS) SC Bank USD 20,000 26 20,000 26
POSCO Maharashtra Steel Private Limited Gail India and others HSBC and others INR 833,764,043 13,140 833,764,043 13,140
USD 5,582,215,154 7,366,291 1,143,210,210 1,508,581
KRW 1,395,738 1,395,738 695,482 695,482
IDR 1,054,400,000,000 91,944 933,333,333,333 81,386
INR 833,764,043 13,140 833,764,043 13,140
THB 4,854,569,000 197,824 2,790,569,000 113,716
EUR 46,000,000 67,807 46,000,000 67,807
AUD 18,422,062 16,809 18,422,062 16,809
CAD 299,562,500 292,547 129,260,280 126,233
(*1) The above contingencies include PF contracts, which provide credit enhancement through payment guarantee in<br>relation to the SOC projects as of September 30, 2024.
--- ---
(*2) The above contingencies include PF contracts, which guarantee the subcontractors’ intermediate payment<br>loans in relation to the maintenance projects and others as of September 30, 2024.
--- ---

57

Table of Contents

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

2) Details of credit enhancements by type of the Group’s PF business as of September 30, 2024 are as<br>follows:
① Maintenance projects and others
--- ---
a. The information about maturity of the loans related to PF credit enhancements such as debt acceptance and fund<br>supplementation is as follow:
--- ---
(in millions of Won) Balance of the loans
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Provider Projects(*1) Borrower Type Credit enhancementmeasures Agreedamount Executedamount Total Within 3months 3~6months 6 months~1 year 1 year~2 years 2 years~3 years After3 years
[The Company]
POSCO Eco & Challenge Co., Ltd. Other projects JB CLARK HILLS CORP Main PF Debt assumption ~~W~~ 43,547 36,289 36,289 — — 36,289 — — —
[Associates and joint ventures]
POSCO Eco & Challenge Co., Ltd. Other projects New Songdo International City Development, LLC Mortgage loan Debt assumption 538,200 303,400 303,400 15,800 — — — 287,600 —
[Others]
POSCO Eco & Challenge Co., Ltd. Maintenance projects Bangbae Shindonga Apartment Reconstruction and Maintenance Project Association, etc. Main PF Debt assumption 1,013,386 455,915 455,915 81,095 43,498 158,045 — 99,317 73,960
Other projects Civic Center PFV Bridge loan Debt assumption 45,000 45,000 45,000 — 45,000 — — — —
Other projects Daon I & P Main PF Joint guarantee 36,000 8,400 8,400 — — — 8,400 — —
Other projects Ecocity Main PF Debt assumption 53,300 22,800 22,800 — — — 22,800 — —
POSCO DX Other projects Jeonnong schoo keeper co. and others Main PF Supplemental funding agreement 1,122,320 123,309 418,051 — — — — — 418,051
2,270,006 655,424 950,166 81,095 88,498 158,045 31,200 99,317 492,011
~~W~~ 2,851,753 995,113 1,289,855 96,895 88,498 194,334 31,200 386,917 492,011
(*1) The maintenance project mainly consists of reconstruction and condominium construction projects, and other<br>projects consist of construction of office buildings, retail shops, warehouses and educational facilities.
--- ---
b. Details of conditional debt acceptance and principal and interest repayment commitments in the event of non-compliance with completion guarantee covenant as of September 30, 2024 are as follows:
--- ---
(in millions of Won) Number of constructions Contract amount Contingency amount(*1)(*2) Balance of loans
--- --- --- --- --- --- --- --- --- ---
Maintenance projects All 23 ~~W~~ 10,835,456 4,038,729 2,055,660
Between the Group 23 6,914,233 2,635,525 1,184,274
(*1) The overlapping amount with other credit enhancement measures such as the agreed debt acceptance upon loan<br>origination amounts to ~~W~~80,198 million for the maintenance projects.
--- ---
(*2) In the case of joint subcontracting projects, the total joint guarantee amount of the project participants has<br>been disclosed. However, the final execution amount of guarantee for construction completion may vary depending on factors such as the reasons attributable to the project participants upon actual execution of guarantee for the responsibility<br>completion.
--- ---

58

Table of Contents

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

c. Details of contingencies of claim for damages in the event of<br>non-compliance with construction completion covenant as of September 30, 2024 are as follows:
(in millions of Won) Number of constructions Contract amount Contingency amount(*1)(*2) Balance of loans
--- --- --- --- --- --- --- --- --- ---
Maintenance projects All 1 ~~W~~ 305,519 76,000 20,000
Between the Group 1 305,519 76,000 20,000
Other projects All 36 10,983,042 8,493,300 6,374,327
Between the Group 36 10,050,911 7,935,970 5,914,597
All 37 11,288,561 8,569,300 6,394,327
Between the Group 37 ~~W~~ 10,356,430 8,011,970 5,934,597
(*1) The overlapping amount with other credit enhancement measures such as the agreed debt assumption upon loan<br>origination amounts to ~~W~~8,400 million for the maintenance projects.
--- ---
(*2) In the case of joint subcontracting projects, the total joint guarantee amount of the project participants has<br>been disclosed. However, the final execution amount of guarantee for construction completion may vary depending on factors such as the reasons attributable to the project participants upon actual execution of guarantee for the responsibility<br>completion.
--- ---
② SOC projects
--- ---
(in millions of Won)
--- --- --- --- --- --- --- --- ---
Provider Recipient Credit enhancementmeasures Number ofconstructions Approvedamount Remainingbalanceafter repayment
[Associates and joint ventures]
POSCO DX UITrans LRT Co., Ltd(*1) Providing funds and debt assumption 2 ~~W~~ 81,883 31,220
Pocheon-Hwado Highway Corp.(*2) Providing funds 1 24,923 22,323
POSCO Eco & Challenge Co., Ltd. UITrans LRT Co., Ltd(*1) Providing funds and debt assumption 2 205,051 157,807
Pocheon-Hwado Highway Corp.(*2) Providing funds 1 319,526 286,182
POHANG E&E Co., LTD(*3) Providing funds and supplemental funding agreement 2 71,930 47,664
Pureun Tongyeong Enviro Co., Ltd.(*3) Providing funds 1 22,714 11,195
Pure Gimpo. Co., Ltd(*3) Providing funds 1 51,565 23,715
Clean Iksan Co., Ltd(*3) Providing funds 1 44,054 22,625
11 821,646 602,731
[Others]
POSCO DX Western Inland highway CO., LTD. Providing funds 1 47,348 25,862
Busan Sanseong Tunnel Refinancing 1 7,621 13,504
POSCO Eco & Challenge Co., Ltd. Western Seoul highway CO., LTD. and others Supplemental funding agreement 11 62,720 29,391
Western Inland highway CO., LTD. and others Providing funds 42 2,752,922 1,364,594
Pohang Youngil Bay New Port Debt assumption 1 2,250 1,440
Busan Sanseong Tunnel Refinancing 1 35,296 26,750
57 2,908,157 1,461,541
68 ~~W~~ 3,729,803 2,064,272
(*1) The Group provides a funding commitment of ~~W~~79,625 million (including other shares:<br>~~W~~279,900 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~~308,505 million (including other shares:<br>~~W~~558,077 million) equivalent to the Group’s share of the loan balance for the private investment project.
--- ---
(*3) The Group provides a funding commitment of ~~W~~101,426 million (including other shares:<br>~~W~~184,377 million) equivalent to the Group’s share of the loan balance for the private investment project.
--- ---

59

Table of Contents

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

3) Other guarantees
① As of September 30, 2024, the payment guarantees that the Group provides to clients, such as contract<br>performance guarantees, installment guarantees, and defect guarantees, by subscribing to insurance policies with guarantee insurance companies or issuing guarantee certificates are as follows:
--- ---
(in millions of Won)
--- --- --- --- --- --- --- ---
Provider of creditenhancement Recipient of creditenhancement Types of guarantees Agreedamount Executedamount Guarantor
[Subsidiaries]
POSCO Eco & Challenge Co., Ltd. Ventanas Philippines Construction Inc Guarantee on performance for contracts and others ~~W~~ 10,301 10,301 TRADE INSURANCE CORPORATION and others
POSCO WIDE Co., Ltd POSCO Eco & Challenge Co., Ltd. Guarantee on performance and others 255 255 Seoul Guarantee Insurance
POSCO DX Guarantee on performance 6 6 Seoul Guarantee Insurance
POSCO STEELEON CO., LTD. Guarantee on performance 45 45 Seoul Guarantee Insurance
POSCO INTERNATIONAL Corporation Guarantee on performance 134 134 Seoul Guarantee Insurance
10,741 10,741
[Associates and joint ventures]
POSCO Eco & Challenge Co., Ltd. PT. Tanggamus Electric Power Letter of credit 2,691 2,691 Hana Bank
PT. Wampu Electric Power Letter of credit 2,375 2,375 Hana Bank
Pocheon-Hwado Highway Corp. Guarantee on performance for projects 23,315 23,315 Construction Guarantee Cooperative
28,381 28,381
[Others]
POSCO Eco & Challenge Co., Ltd. DAEWOO ENGINEERING & CONSTRUCTION Co., Ltd and others Guarantee on performance for construction and others 7,610,135 7,607,678 Construction Guarantee Cooperative and others
POSCO WIDE Co., Ltd Pureun Paju Co., Ltd. and others Guarantee on performance and others 17,519 17,519 Seoul Guarantee Insurance
POSCO M-TECH SAMA ALUMINIUM CO., LTD Guarantee on performance 83 83 Seoul Guarantee Insurance
Shinan Green Energy Co., LTD. Sinan-gun Jeollanam-do Guarantee on performance 2,963 2,963 Seoul Guarantee Insurance
POSCO DX Western Inland highway CO., LTD. and others Supplemental funding agreement and others 1,685 1,685 Seoul Guarantee Insurance
7,632,385 7,629,928
~~W~~ 7,671,507 7,669,050
② As of September 30, 2024, the primary payment guarantees and other guarantees that the Group is provided<br>from the guarantee institution are as follows:
--- ---
(in millions of Won)
--- --- --- --- --- ---
Provider Types of guarantees Agreed amount Executed amount
Construction Guarantee Cooperative Subcontractor Payment Guarantee and others ~~W~~ 7,066,677 7,066,677
Engineering guarantee insurance Guarantee on performance for EPC contracts and others 901,168 461,499
Seoul Guarantee Insurance Construction performance guarantee and others 560,144 560,144
Korea Housing & Urban Guarantee Corporation Housing Guarantee and others 5,201,956 5,196,705
Woori Bank and others Guarantee on performance for contracts 1,986,365 791,897
Korea software financial cooperative Guarantee on performance for contracts 121,221 121,221
Seoul Guarantee Insurance Guarantee on performance for contracts 32,738 32,738
Construction Guarantee Cooperative Guarantee on performance for contracts 4,997 4,997
~~W~~ 15,875,266 14,235,878

60

Table of Contents

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

(c) Other commitments

Details of other commitments of the Group as of September 30, 2024 are as follows:

Company Description
POSCO HOLDINGS INC. As of September 30, 2024, 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<br>to the exploration of gas hydrates in Western Fergana-Chinabad. The repayment of the borrowings depends on the success of the projects. POSCO HOLDINGS INC. is not liable for the repayment of full or part of the amount borrowed if the respective<br>projects fail. POSCO HOLDINGS INC. has agreed to pay a certain portion of its profits under certain conditions, as defined by the borrowing agreements. As of September 30, 2024, the ending balance of the borrowing amounts to USD<br>1.02 million.
POSCO HOLDINGS INC. has deposited 83,671 treasury shares for exchange with the Korea Securities Depository in relation to foreign currency exchangeable bonds as of September 30, 2024.
POSCO POSCO entered into long-term contracts to purchase iron ore, coal, nickel and others. The long-term purchase contract period is more than two years for iron ore, three years for coal, and one year for nickel. These contracts provide<br>for periodic price adjustments based on the market price. As of September 30, 2024, 30 million tons of iron ore and 9 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 price is subject to change,<br>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 September 30, 2024, there are 36 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. The<br>Company has entered into a ship purchase agreement with the ship owners and the shippers, which obliges the shippers to pay the agreed amount either at the end of the contract terms or at the agreed termination and to take over the ownership of the<br>vessel from the ship owners. Only if the shipper fails to fulfill its obligation including payment obligation for the purchase of the vessel, the Company is obliged to take over the ship based on the condition that the shipper’s contractual<br>obligations and rights are transferred to the Company. As of September 30, 2024, the amount which is exposed to the ship purchase agreements entered into is USD 31 million.
The Company invested in the Ambatovy Nickel Project (DMSA/AMSA) in Madagascar through the Korea Ambatovy Consortium (KAC) formed with Korea Mine Rehabilitation and Mineral Resources Corporation (KOMIR) and STX Corporation. SHERRITT<br>INTERNATIONAL CORP., the operator, transferred a portion of the project’s interests to Sumitomo and AHL (Ambatovy Holdings Limited) in December 2017, and transferred the remaining interests of the project to Sumitomo and AHL2 (Ambatovy Holdings<br>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 September 30, 2024, according to the investor agreement for the construction of Samcheok Thermal Power Plant, POSCO Eco & Challenge Co., Ltd. is obligated to make contributions for core capital, unqualified<br>investment, excess expenses occurred for business, and acceleration of payment. Among them, the remaining amount of the core capital investment obligation is ~~W~~17,509 million and the payment period is expected to be in the<br>fourth quarter of 2024.
POSCO FUTURE MATERIALS CANADA INC. (formerly, POSCO CHEMICAL CANADA INC.) In accordance with the GP Shareholders Agreement between POSCO FUTURE MATERIALS CANADA INC. and GM Battery Raw Materials Corporation (hereinafter referred to as GM), if, POSCO FUTURE M Co., LTD. (POSCO FUTURE MATERIALS CANADA<br>INC’s shareholders) fails to obtain approval for the export of national core technology under the ‘Act On Prevention Of Divulgence And Protection Of Industrial Technology’ in Korea within two years from the date of signing the<br>agreement, GM may sell its shares of ULTIUM CAM GP INC. and ULTIUM CAM LIMITED PARTNERSHIP held by Posco Future Materials Canada Inc.. GM has the right to exercise this put option until the 27th month from the date of signing the agreement. When GM<br>exercises the put option, Posco Future Materials Canada Inc. is required to immediately purchase GM’s shares at a price of the fair market value of GM’s shares or 125% of the total amount of capital contributions made by GM before the<br>closing of the sale, whichever amount is greater. As of September 30, 2024, the Company recognized ~~W~~196,845 million as other financial liabilities related to the terms of this agreement.

61

Table of Contents

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

(d) Litigation in progress

The Group is involved in 404 lawsuits amounting in total to ~~W~~915.5 billion as defendant as of September 30, 2024, which arise from the ordinary course of business such as claim for confirmation of employee status. The Group has recognized provisions amounting to ~~W~~46.9 billion for 38 lawsuits based on its reliable estimate of outflow of resources. However, the Group has not recognized any provisions for the other lawsuits and claims since the Group believes that it does not have a present obligation as of September 30, 2024.

(e) Other contingencies

Other major contingencies for the Group as of September 30, 2024 are as follows:

Company Description
POSCO HOLDINGS INC. POSCO HOLDINGS INC. has provided 3 blank checks to Korea Energy Agency as collateral for long-term foreign currency borrowings.
The Company has a joint obligation with the company newly established through spin-off, POSCO, to discharge all liabilities (including financial guarantee contracts) incurred prior to the spin-off date.
POSCO INTERNATIONAL Corporation As of September 30, 2024, POSCO INTERNATIONAL Corporation has provided 24 blank promissory notes and 18 blank checks to Korea Energy Agency and others as collateral for the guarantee on performance for contracts and<br>others.
POSCO Eco & Challenge Co., Ltd. As of September 30, 2024, 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 September 30, 2024, 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 nine-month periods ended September 30, 2024 and 2023 are as follows:

(in millions of Won) September 30, 2024 September 30, 2023
Trade accounts and notes receivable ~~W~~ 57,694 (1,541,321 )
Other receivables (216,705 ) 250,895
Inventories 312,139 1,487,683
Other current assets (26,464 ) (145,844 )
Other non-current assets (21,825 ) (39,956 )
Trade accounts and notes payable (245,564 ) (476,744 )
Other payables (116,490 ) (700,610 )
Other current liabilities 37,423 (233,150 )
Provisions (186,254 ) (227,116 )
Right to use and profit 101,557 —
Payments of severance benefits (309,176 ) (219,124 )
Plan assets 194,123 169,089
Other non-current liabilities (31,304 ) (19,091 )
~~W~~ (450,846 ) (1,695,289 )

62

Table of Contents

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

36. Operating Segments

(a) The Group’s operating businesses are organized based on the nature of markets and customers. During the<br>nine-month period ended September 30, 2024, the Group changed its internal organization and internal reporting structures. As a result, operating segments were re-categorized according to the revised<br>reporting materials provided to the management for decision-making.
Segment assets, liabilities and profit (loss) are generally measured based on separate financial statements in<br>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:<br>
---
Operating segments Main Business
--- --- ---
Steel Manufacture and sales of steel products
Green infrastructure Trading Supply and purchase transactions between domestic and foreign companies, power generation, and resource development
Construction Design, production and construction of steel mills and their facilities, commercial and residential facilities, etc.
Logistics and others Logistics, network and system integration business
Secondary battery Materials EV battery materials such as lithium, nickel, negative/cathode materials, and hydrogen business
Others POSCO HOLDINGS. INC., Controlling company and Investment business
(b) The segment profit or loss does not reflect the consolidation adjustments allocated to each entity and is<br>determined in the same way as the consolidated net income determined by KIFRS. Segment assets and liabilities are determined based on separate financial statements. There are various transactions between reporting segments, including disposal of<br>property, plant and equipment and provision of construction services.
--- ---
(c) The information about reportable segments as of and for each of the nine-month periods ended September 30,<br>2024 and 2023 is as follows:
--- ---
1) For the nine-month period ended September 30, 2024
--- ---
Infrastructure Secondary betterymaterials
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(in millions of Won) Steel Trading Construction Logistics and others Others Total
External revenues ~~W~~ 29,436,774 17,200,766 5,586,634 279,312 2,321,868 57,645 54,882,999
Internal revenues 17,125,375 15,402,898 1,889,536 2,763,952 746,939 1,485,193 39,413,893
Inter segment revenues 11,161,623 7,119,429 1,801,395 2,752,776 721,458 1,467,893 25,024,574
Total revenues 46,562,149 32,603,664 7,476,170 3,043,264 3,068,807 1,542,838 94,296,892
Segment profits 697,542 659,154 62,528 97,423 (65,415 ) 1,442,488 2,893,720
2) For the nine-month period ended September 30, 2023
--- ---
Infrastructure Secondary betterymaterials
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(in millions of Won) Steel Construction Trading Energy and others Others Total
External revenues ~~W~~ 30,686,602 18,279,949 6,127,712 338,175 2,939,530 91,112 58,463,080
Internal revenues 17,432,758 14,341,819 1,345,284 2,464,390 728,789 1,255,851 37,568,891
Inter segment revenues 11,693,650 6,790,495 1,263,327 2,462,010 725,224 1,241,031 24,175,737
Total revenues 48,119,360 32,621,768 7,472,996 2,802,565 3,668,319 1,346,963 96,031,971
Segment profits 1,374,771 682,697 138,130 119,966 20,848 897,578 3,233,990

63

Table of Contents

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

(d) Reconciliations of total segment revenues, profit or loss, assets and liabilities, and other significant items<br>to their respective consolidated financial statement line items are as follows:
(in millions of Won) September 30, 2024 September 30, 2023
--- --- --- --- --- --- ---
Total profit for reportable segments ~~W~~ 2,893,720 3,233,990
Corporate fair value adjustments (30,389 ) 160,686
Elimination of inter-segment profit (1,212,477 ) (1,227,904 )
Income tax expense 492,511 695,498
Profit before income tax expense ~~W~~ 2,143,365 2,862,270

37. Events After the Reporting Period

(a) Pursuant to the resolution of the Board of Directors on November 1, 2024, the Company decided to pay<br>interim cash dividends of ~~W~~2,500 per common share (total dividend: ~~W~~189.1 billion).
(b) Pursuant to the resolution of the Board of Directors on November 1, 2024, the Company decided to acquire<br>~~W~~500 billion of the ~~W~~600 billion in hybrid bonds to be issued by POSCO Future M Co., Ltd., the subsidiary for the purpose of strengthening financial soundness, etc. The issuance and acquisition of these<br>hybrid bonds are scheduled for December 18, 2024.
--- ---
(c) Pursuant to the resolution of the Board of Directors on November 1, 2024, the Company decided to sell the<br>shares of four companies including POSCO Maharashtra Steel Private Limited in order to support the follow-up actions of vertical spin-off and enhance the management<br>efficiency of the steel business within the Group.
--- ---
(d) There was fire incident at 3FINEX plant of POSCO Co., Ltd., the subsidiary, on November 10, 2024. The<br>extent of the damage and the details of the insurance coverage under the property insurance are currently being verified.
--- ---

64

Table of Contents

POSCO HOLDINGS INC.

Interim condensed separate financial statements

forthe nine-month period ended September 30, 2024

with the independent auditor’s review report

Table of Contents

Table of Contents

Page
Report on review of interim condensed separate financial statements 1
Interim condensed separate financial statements 3
Interim condensed separate statements of financial<br>position 4
Interim condensed separate statements of comprehensive<br>income 6
Interim condensed separate statements of changes in<br>equity 7
Interim condensed separate statements of cash flows 8
Notes to the interim condensed separate financial<br>statements 10
Table of Contents

LOGO

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 September 30, 2024, and the related interim condensed separate statements of comprehensive income for each of the three-month and nine-month periods ended September 30, 2024, interim condensed separate statement of changes in equity and interim condensed separate statement of cash flows for the nine-month period ended September 30, 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.

Table of Contents

LOGO

Other matters

The interim condensed separate statements of comprehensive income for each of the three-month and nine-month periods ended September 30, 2023 and interim condensed separate statement of changes in equity and interim condensed separate statement of cash flows for the nine-month period ended September 30, 2023, prepared in accordance with KIFRS 1034 and presented for comparative purposes, have been reviewed by KPMG Samjong Accounting Corp., whose review report dated November 14, 2023 expressed an unqualified review conclusion thereon.

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

November 14, 2024

This review report is effective as of November 14, 2024, the independent auditor’s review report date. Accordingly, certain material subsequent events<br>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<br>separate financial statements and may result in modification to this review report.

2

Table of Contents

POSCO HOLDINGS INC.

Interim condensed separate financial statements

for each of the nine-month periods ended September 30, 2024 and 2023

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

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

Kisub Jung

Chief Strategy Officer

POSCO HOLDINGS INC.

3

Table of Contents

POSCO HOLDINGS INC.

Interim condensed separate statements of financial position

as of September 30, 2024 (Unaudited) and December 31, 2023

(in millions of Won) Notes September 30,2024(unaudited) December 31,2023
Assets
Cash and cash equivalents 18 ~~W~~ 481,718 376,914
Trade accounts and notes receivable, net 4,18,22 152,115 238,332
Other receivables, net 5,18,29 31,473 68,821
Other short-term financial assets 6,18 2,550,702 3,940,743
Current income tax assets 15,208 32,015
Other current assets 11 2,854 1,074
Total current assets 3,234,070 4,657,899
Other receivables, net 5,18,29 13,316 6,955
Other long-term financial assets 6,18 893,797 1,131,074
Investments in subsidiaries, associates and joint ventures 7 45,958,396 45,321,370
Investment property, net 8 305,182 309,900
Property, plant and equipment, net 9 314,765 197,787
Intangible assets, net 10 18,524 19,341
Defined benefit assets, net 16 1,944 —
Other non-current assets 11 8,632 1,872
Total non-current assets 47,514,556 46,988,299
Total assets ~~W~~ 50,748,626 51,646,198

(continued)

4

Table of Contents

POSCO HOLDINGS INC.

Interim condensed separate statements of financial position, continued

as of September 30, 2024 (Unaudited) and December 31, 2023

(in millions of Won) Notes September 30,2024(unaudited) December 31,2023
Liabilities
Short-term borrowings and current installments of long-term borrowings 12,18 ~~W~~ 39,919 1,756,691
Other current payables 13,18,22,29 42,889 39,739
Other short-term financial liabilities 14,18,29 14,113 1,571
Provisions 15 7,579 14,983
Other current liabilities 17,22 6,203 6,686
Total current liabilities 110,703 1,819,670
Long-term borrowings, excluding current installments 12,18 1,347 1,316
Other non-current payables 13,18,29 30,492 26,804
Other long-term financial liabilities 14,18,29 — 6,968
Defined benefit liabilities, net 16 — 4,283
Deferred tax liabilities 2,333,361 2,281,500
Long-term provisions 15,30 1,710 2,634
Other non-current liabilities 17,22 2,618 3,158
Total non-current liabilities 2,369,528 2,326,663
Total liabilities 2,480,231 4,146,333
Equity
Share capital 19 482,403 482,403
Capital surplus 19 1,367,990 1,370,557
Accumulated other comprehensive income (loss) 20 (23,327 ) 30,678
Treasury shares 21 (1,550,862 ) (1,889,658 )
Retained earnings 47,992,191 47,505,885
Total equity 48,268,395 47,499,865
Total liabilities and equity ~~W~~ 50,748,626 51,646,198

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

5

Table of Contents

POSCO HOLDINGS INC.

Interim condensed separate statements of comprehensive income

for each of the three-month and nine-month periods

ended September 30, 2024 and 2023 (Unaudited)

(in millions of Won, except per share informations) For the three-month periodended September 30(Unaudited) For the nine-month periodended September 30(Unaudited)
Notes 2024 2023 2024 2023
Operating revenue 22,29 ~~W~~ 402,270 473,685 1,460,868 1,268,512
Operating expenses 23,26,29 (92,447 ) (77,730 ) (281,956 ) (232,845 )
Operating profit 309,823 395,955 1,178,912 1,035,667
Finance income and costs 18,24
Finance income 56,357 46,435 399,639 251,632
Finance costs (17,649 ) (321,519 ) (80,106 ) (527,402 )
Other non-operating income and expenses 25,26,29
Other non-operating income 676 2,407 2,243 11,478
Other non-operating expenses (699 ) (6,077 ) (5,970 ) (7,515 )
Profit before income tax 348,508 117,201 1,494,718 763,860
Income tax benefit (expense) 27 (13,513 ) 36,184 (26,146 ) 121,571
Profit 334,995 153,385 1,468,572 885,431
Other comprehensive income (loss)
Items that will not be reclassified subsequently to profit or loss:
Remeasurements of defined benefit plans 16 (11 ) (41 ) (243 ) (254 )
Net changes in fair value of equity investments at fair value through other comprehensive<br>income 6,18,20 30,727 96,590 (35,849 ) 175,656
Total comprehensive income ~~W~~ 365,711 249,934 1,432,480 1,060,833
Earnings per share (in Won) 28
Basic earnings per share (in Won) 4,425 2,022 19,370 11,671
Diluted earnings per share (in Won) ~~W~~ 4,186 2,022 16,883 11,671

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

6

Table of Contents

POSCO HOLDINGS INC.

Interim condensed separate statements of changes in equity

for each of the nine-month periods ended September 30, 2024 and 2023 (Unaudited)

(in millions of Won) Sharecapital Capitalsurplus Accumulatedothercomprehensiveincome (loss) Treasuryshares Retainedearnings Total
Balance as of January 1, 2023 ~~W~~ 482,403 1,360,894 (188,801 ) (1,892,308 ) 47,409,675 47,171,863
Comprehensive income:
Profit — — — — 885,431 885,431
Other comprehensive income (loss)
Remeasurements of defined benefit plans, net of tax — — — — (254 ) (254 )
Net changes in fair value of equity investments at fair value through other comprehensive income,<br>net of tax — — 175,320 — 336 175,656
Transactions with owners of the Company, recognized directly in equity:
Year-end dividends — — — — (151,698 ) (151,698 )
Interim dividends — — — — (379,381 ) (379,381 )
Disposal of treasury shares — 4,082 — 5,864 — 9,946
Share-based payment — 3,084 — — — 3,084
Balance as of September 30, 2023 ~~W~~ 482,403 1,368,060 (13,481 ) (1,886,444 ) 47,764,109 47,714,647
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 — — — — 1,468,572 1,468,572
Other comprehensive income (loss)
Remeasurements of defined benefit plans, net of tax — — — — (243 ) (243 )
Net changes in fair value of equity investments at fair value through other comprehensive income,<br>net of tax — — (54,005 ) — 18,156 (35,849 )
Transactions with owners of the Company, recognized directly in equity:
Year-end dividends — — — — (189,691 ) (189,691 )
Interim dividends — — — — (379,381 ) (379,381 )
Acquisition of treasury shares — — — (92,311 ) — (92,311 )
Retirement of treasury shares — — — 431,107 (431,107 ) —
Share-based payment — (2,567 ) — — — (2,567 )
Balance as of September 30, 2024 ~~W~~ 482,403 1,367,990 (23,327 ) (1,550,862 ) 47,992,191 48,268,395

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

7

Table of Contents

POSCO HOLDINGS INC.

Interim condensed separate statements of cash flows

for each of the nine-month periods ended September 30, 2024 and 2023 (Unaudited)

(in millions of Won) For the nine-month period ended
Notes September 30,2024(unaudited) September 30,2023(unaudited)
Cash flows from operating activities
Profit ~~W~~ 1,468,572 885,431
Adjustments for :
Expenses related to post-employment benefit 5,020 4,766
Depreciation 10,219 8,227
Amortization 1,280 897
Impairment loss on trade and other receivables 106 2,351
Finance income (394,481 ) (245,324 )
Dividend income (1,320,175 ) (1,113,179 )
Finance costs 72,299 523,797
Loss on disposal of property, plant and equipment — 2,254
Gain on disposal of intangible assets (141 ) —
Loss on disposal of intangible assets 253 —
Gain on disposal of investments in subsidiaries, associates and joint venture — (236 )
Loss on disposal of assets held for sale — 998
Increase (decrease) to provisions 180 (7,568 )
Income tax expense (benefit) 26,146 (121,571 )
Share-based payments expense — 5,904
Others (2 ) (135 )
Changes in operating assets and liabilities 31 23,542 (4,585 )
Interest received 63,853 34,492
Dividends received 1,369,071 1,049,770
Income taxes paid 52,441 201,097
Net cash provided by operating activities ~~W~~ 1,378,183 1,227,386

(continued)

8

Table of Contents

POSCO HOLDINGS INC.

Interim condensed separate statements of cash flows, continued

for each of the nine-month periods ended September 30, 2024 and 2023 (Unaudited)

(in millions of Won) For the nine-month period ended
Notes September 30,2024(unaudited) September 30,2023(unaudited)
Cash flows from investing activities
Decrease in deposits ~~W~~ 3,050,000 600,000
Proceeds from disposal of short-term financial instruments 3,219,599 4,872,223
Collection of short-term loans — 1,249
Collection of long-term loans — 2,000
Proceeds from disposal of equity securities 194,230 —
Proceeds from disposal of other securities 5,663 564
Proceeds from disposal of investments in subsidiaries, associates and joint ventures 13,353 869,550
Proceeds from disposal of intangible asstes 1,677 —
Collection of short-term lease security deposits 491 —
Increase in deposits (2,550,000 ) (2,190,000 )
Acquisition of short-term financial instruments (2,243,699 ) (4,661,764 )
Acquisition of long-term financial instruments — (2 )
Increase in long-term loans (106 ) —
Acquisition of other securities (15,932 ) (21,492 )
Acquisition of investment in subsidiaries, associates and joint ventures (620,852 ) (895,987 )
Acquisition of investment properties (1,200 ) (54,834 )
Acquisition of property, plant and equipment (122,640 ) (12,613 )
Acquisition of intangible asstes (2,522 ) (2,966 )
Payment of short-term lease security deposits (536 ) —
Net cash provided by (used in) investing activities ~~W~~ 927,526 (1,494,072 )
Cash flows from financing activities
Increase in long-term financial liabilities 3,148 3,781
Payment of cash dividends (569,458 ) (531,444 )
Repayment of current installments of long-term borrowings (1,542,400 ) —
Acquisition of treasury shares (92,311 ) —
Net cash used in financing activities ~~W~~ (2,201,021 ) (527,663 )
Effect of exchange rate fluctuation on cash held 116 —
Net increase (decrease) in cash and cash equivalents 104,804 (794,349 )
Cash and cash equivalents at beginning of the period 376,914 1,415,201
Cash and cash equivalents at end of the period ~~W~~ 481,718 620,852

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

9

Table of Contents

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements

September 30, 2024 and 2023 (Unaudited)

1. Reporting Entity

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

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

As of September 30, 2024, the shares of the Company are listed on the Korea Exchange, while its ADRs are listed on the New York Stock Exchanges.

2.Basis of preparation

Statement of compliance

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

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

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

10

Table of Contents

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

September 30, 2024 and 2023 (Unaudited)

Use of estimates and judgments

(a) Judgments, assumptions and estimation uncertainties

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

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

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

(b) Measurement of fair value

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

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

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

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

11

Table of Contents

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

September 30, 2024 and 2023 (Unaudited)

• Level 1 – unadjusted quoted prices in active markets for identical assets or liabilities.<br>
• Level 2 – inputs other than quoted prices included in Level 1 that are observable for the assets 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 Company recognizes transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.

3. Summary of Material Accounting PolicyInformation

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

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

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

12

Table of Contents

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

September 30, 2024 and 2023 (Unaudited)

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

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

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

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

The amendments clarify:

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

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

13

Table of Contents

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

September 30, 2024 and 2023 (Unaudited)

4. Trade Accounts and Notes Receivable

Trade accounts and notes receivable as of September 30, 2024 and December 31, 2023 are as follows:

(in millions of Won) September 30, 2024 December 31, 2023
Current
Trade accounts and notes receivable ~~W~~ 51,370 100,323
Unbilled receivables (contract assets) 100,745 138,009
Less: Allowance for doubtful accounts — —
~~W~~ 152,115 238,332

5. Other Receivables

Other receivables as of September 30, 2024 and December 31, 2023 are as follows:

(in millions of Won) September 30, 2024 December 31, 2023
Current
Other accounts receivable ~~W~~ 9,017 51,530
Others(*1) 26,449 21,193
Less: Allowance for doubtful accounts(*1) (3,993 ) (3,902 )
~~W~~ 31,473 68,821
Non-current
Long-term loans(*1) ~~W~~ 222,491 217,349
Long-term other accounts receivable 13,016 6,945
Others 300 10
Less: Allowance for doubtful accounts(*1) (222,491 ) (217,349 )
~~W~~ 13,316 6,955
(*1) The Company recognized an allowance for doubtful accounts for all of the other receivables from FQM Australia<br>Holdings Pty Ltd., an associate, due to low possibility of collecting these receivables during the year ended December 31, 2023.
--- ---

14

Table of Contents

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

September 30, 2024 and 2023 (Unaudited)

6. Other Financial Assets

(a) Other financial assets as of September 30, 2024 and December 31, 2023 are as follows:<br>
(in millions of Won) September 30, 2024 December 31, 2023
--- --- --- --- ---
Current
Deposit instruments ~~W~~ 1,250,000 1,750,000
Short-term financial instruments 1,300,702 2,190,743
~~W~~ 2,550,702 3,940,743
Non-current
Equity securities ~~W~~ 677,686 926,752
Other securities 216,109 204,320
Deposit instruments 2 2
~~W~~ 893,797 1,131,074
(b) Equity securities as of September 30, 2024 and December 31, 2023 are as follows:<br>
--- ---
(in millions of Won) September 30, 2024 December 31,2023
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Number ofshares Ownership(%) Acquisitioncost Fairvalue Net changes infair value ofequity securities Bookvalue Bookvalue
Marketable equity securities
Nippon Steel Corporation 15,698,500 1.65 ~~W~~ 473,962 464,139 (9,823 ) 464,139 462,775
KB Financial group Inc. — — — — — — 209,016
CSN Mineracao S.A. 102,186,675 1.86 206,265 171,203 (35,062 ) 171,203 212,617
680,227 635,342 (44,885 ) 635,342 884,408
Non-marketable equity securities
PLANTEC Co,. Ltd 18,337,912 10.99 19,437 40,362 20,925 40,362 40,362
Intellectual Discovery Co., Ltd 200,000 6.00 5,000 1,350 (3,650 ) 1,350 1,350
Pos-hyundai Steel Manufacturing India Private<br>Limited 1,055,496 6.00 612 612 — 612 612
S&M MEDIA Co., Ltd 2,000 2.67 20 20 — 20 20
XG Sciences 300,000 5.06 2,724 — (2,724 ) — —
27,793 42,344 14,551 42,344 42,344
~~W~~ 708,020 677,686 (30,334 ) 677,686 926,752

7. Investments in Subsidiaries, Associates and Joint ventures

(a) Investments in subsidiaries, associates and joint ventures of as of September 30, 2024 and<br>December 31, 2023 are as follows:
(in millions of Won) September 30, 2024 December 31, 2023
--- --- --- --- ---
Subsidiaries ~~W~~ 43,034,011 42,519,521
Associates 230,552 230,552
Joint ventures 2,693,833 2,571,297
~~W~~ 45,958,396 45,321,370

15

Table of Contents

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

September 30, 2024 and 2023 (Unaudited)

(b) Details of subsidiaries and carrying amounts as of September 30, 2024 and December 31, 2023 are as<br>follows:
September 30, 2024 December 31,2023
--- --- --- --- --- --- --- --- --- ---
(in millions of Won) Country Principal operations Ownership (%) Book value Book value
[Domestic]
POSCO Korea Steel, rolled products, and plates manufacturing and sales 100.00 ~~W~~ 29,714,703 29,698,113
POSCO INTERNATIONAL Corporation Korea Trading and natural resources exploration 70.71 3,740,020 3,740,020
POSCO Eco & Challenge Co., Ltd. Korea Engineering and construction 52.80 1,014,963 1,013,453
POSCO Venture Capital Co., Ltd. Korea Investment in venture companies 100.00 115,931 115,931
POSCO FUTURE M CO.,LTD. Korea Refractory and anode/cathode material manufacturing and sales 59.72 895,687 895,687
POSCO WIDE Co., Ltd. Korea Business facility maintenance 100.00 308,843 308,843
POSCO DX Korea Computer hardware and software distribution 65.47 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(*1) Korea Nickel refining 60.00 49,520 —
POSCO ZT AIR SOLUTION(*2) Korea Manufacturing and Sales of High-Purity Rare Gases 75.10 63,308 —
Others (11 companies) 465,945 442,847
37,311,026 37,157,000
[Foreign]
POSCO WA PTY LTD. Australia Iron ore sales and mine development 100.00 646,574 646,574
POSCO Maharashtra Steel Private Limited India Steel manufacturing and sales 100.00 722,514 722,514
POSCO Canada Ltd. Canada Coal sales 100.00 560,879 560,879
POSCO AUSTRALIA PTY LTD. Australia Iron ore sales and mine development 100.00 330,623 330,623
POSCO (Zhangjiagang) Stainless Steel Co.,Ltd. China Stainless steel manufacturing and sales 58.60 283,792 283,792
POSCO-China Holding Corp. China Holding company 100.00 593,816 593,816
POSCO America Corporation USA Researching and consulting 99.45 192,136 192,136
POSCO VST CO., LTD. Vietnam Stainless steel manufacturing and sales 95.65 144,552 144,552
POSCO Asia Co., Ltd. Hong Kong Activities Auxiliary to financial service 100.00 117,690 117,690
POSCO ASSAN TST STEEL INDUSTRY Turkiye Steel manufacturing and sales 60.00 71,686 71,686
POSCO JAPAN Co., Ltd. Japan Steel marketing, demand development, and technology research 100.00 68,410 68,410
Qingdao Pohang Stainless Steel Co., Ltd. China Stainless steel manufacturing and sales 70.00 65,982 65,982
POSCO(Suzhou) Automotive Processing Center Co., Ltd. China Steel manufacturing and sales 90.00 62,469 62,469
POSCO AFRICA (PROPRIETARY) LIMITED South Africa Mine development 100.00 50,297 50,297
POSCO Argentina S.A.U.(*3) Argentina Mineral exploration, manufacturing and sales 100.00 1,510,551 1,150,087
Others (18 companies) 301,014 301,014
5,722,985 5,362,521
~~W~~ 43,034,011 42,519,521
(*1) During the nine-month period ended September 30, 2024, the Company acquired 60% of shares of POSCO CNGR<br>Nickel Solution Co., Ltd. at ~~W~~49,520 million and classified the acquired equity interests as investments in subsidiaries.
--- ---
(*2) During the nine-month period ended September 30, 2024, the Company acquired 75.1% of shares of POSCO ZT<br>AIR SOLUTION at ~~W~~63,308 million and classified the acquired equity interests as investments in subsidiaries.
--- ---
(*3) During the nine-month period ended September 30, 2024, the Company acquired<br>~~W~~360,464 million of additional investment in subsidiaries by participating in POSCO Argentina S.A.U.‘s capital increase to invest in an Argentine brine lithium commercialization plant.
--- ---

16

Table of Contents

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

September 30, 2024 and 2023 (Unaudited)

(c) Details of associates and carrying amounts as of September 30, 2024 and December 31, 2023 are as<br>follows:
(in millions of Won) September 30, 2024 December 31,2023
--- --- --- --- --- --- --- --- ---
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 (5 companies) 12,111 12,111
38,136 38,136
[Foreign]
9404-5515 Quebec Inc.(*1) Canada Investments 12.61 156,194 156,194
ZHEJIANG HUAYOU-POSCO ESM CO., LTD(*1) China Precursors manufacturing and sales 8.29 22,423 22,423
Others (3 companies) 13,799 13,799
192,416 192,416
~~W~~ 230,552 230,552
(*1) As of September 30, 2024, the entities are classified as associates since the Company has significant<br>influence over the investees although the Company’s percentage of ownership is less than 20%, considering the structure of the entities’ Board of Directors and others.
--- ---
(d) Details of joint ventures and carrying amounts as of September 30, 2024 and December 31, 2023 are as<br>follows:
--- ---
(in millions of Won) September 30, 2024 December 31,2023
--- --- --- --- --- --- --- --- --- ---
Country Principal operations Ownership (%) Book value Book value
Roy Hill Holdings Pty Ltd(*1) Australia Natural resources exploration 10.00 ~~W~~ 1,225,464 1,225,464
POSCO-NPS Niobium LLC USA Foreign investments in mining 50.00 364,609 364,609
KOBRASCO Brazil Steel materials manufacturing and sales 50.00 98,962 98,962
HBIS-POSCO Automotive Steel Co., Ltd China Steel manufacturing and sales 50.00 235,207 235,207
BX STEEL POSCO Cold Rolled Sheet Co., Ltd. China Steel manufacturing and sales 25.00 63,866 63,866
PT NICOLE METAL INDUSTRY(*2) Indonesia Nickel Smelting 49.00 413,555 293,361
Hydrogen Duqm LLC(*3) Oman Green Hydrogen/Ammonia product business development 44.80 2,342 —
Nickel Mining Company SAS New<br>Caledonia Raw material manufacturing and sales 49.00 189,197 189,197
SNNC Korea STS material manufacturing and sales 49.00 100,631 100,631
~~W~~ 2,693,833 2,571,297
(*1) As of September 30, 2024 and December 31, 2023, the investments in joint ventures amounting to<br>~~W~~1,225,464 million were provided as collateral in relation to revolving loan of Roy Hill Holdings Pty Ltd.
--- ---
(*2) During the nine-month period ended September 30, 2024, the Company acquired<br>~~W~~120,194 million of additional investment in joint ventures by participating in PT NICOLE METAL INDUSTRY‘s capital increase to invest in a nickel dry smelting plant in Indonesia.
--- ---
(*3) During the nine-month period ended September 30, 2024, the Company acquired 44.8% of shares in Hydrogen<br>Duqm LLC, for ~~W~~2,342 million and classified them as an investment in joint ventures.
--- ---

17

Table of Contents

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

September 30, 2024 and 2023 (Unaudited)

8. Investment Property

Changes in the carrying amount of investment property for the nine-month period ended September 30, 2024 and the year ended December 31, 2023 are as follows:

(a) For the nine-month period ended September 30, 2024
(in millions of Won) Beginning Acquisition Depreciation(*1) Others(*2) Ending
--- --- --- --- --- --- --- --- --- --- --- ---
Land ~~W~~ 193,446 1,200 — 50 194,696
Buildings 101,229 — (5,435 ) 77 95,871
Structures 15,225 — (618 ) 8 14,615
~~W~~ 309,900 1,200 (6,053 ) 135 305,182
(*1) The useful life and depreciation method of investment property are identical to those of property, plant and<br>equipment.
--- ---
(*2) Mainly includes assets transferred from property, plant and equipment in relation to changes in rental ratio<br>and the purpose of use.
--- ---
(b) For the year ended December 31, 2023
--- ---
(in millions of Won) Beginning Acquisition Depreciation(*1) Others(*2) Ending
--- --- --- --- --- --- --- --- --- --- --- ---
Land ~~W~~ 131,069 54,891 — 7,486 193,446
Buildings 83,528 — (7,078 ) 24,779 101,229
Structures 6,102 — (610 ) 9,733 15,225
~~W~~ 220,699 54,891 (7,688 ) 41,998 309,900
(*1) The useful life and depreciation method of investment property are identical to those of property, plant and<br>equipment.
--- ---
(*2) Mainly includes assets transferred from property, plant and equipment in relation to changes in rental ratio<br>and the purpose of use.
--- ---

18

Table of Contents

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

September 30, 2024 and 2023 (Unaudited)

9. Property, Plant and Equipment

Changes in the carrying amount of property, plant and equipment for the nine-month period ended September 30, 2024 and the year ended December 31, 2023 are as follows:

(a) For the nine-month period ended September 30, 2024
(in millions of Won) Beginning Acquisitions Depreciation Others(*1) Ending
--- --- --- --- --- --- --- --- --- --- --- --- ---
Land ~~W~~ 50,197 4 — (50 ) 50,151
Buildings 29,539 37 (1,427 ) (78 ) 28,071
Structures 7,748 1 (302 ) (7 ) 7,440
Machinery and equipment 27,549 276 (1,543 ) — 26,282
Vehicles 63 — (16 ) — 47
Furniture and fixtures 13,485 149 (878 ) — 12,756
Construction-in-progress 69,206 120,812 — — 190,018
~~W~~ 197,787 121,279 (4,166 ) (135 ) 314,765
(*1) Represents assets transferred from<br>construction-in-progress to other property, plant and equipment, assets transferred to investment property, and other expenses.
--- ---
(b) For the year ended December 31, 2023
--- ---
(in millions of Won) Beginning Acquisitions Disposals Depreciation Impairment(*1) Others(*2) Ending
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Land ~~W~~ 51,310 8,079 — — (1,706 ) (7,486 ) 50,197
Buildings 39,277 12,659 (186 ) (1,399 ) — (20,812 ) 29,539
Structures 6,036 1,107 (700 ) (201 ) — 1,506 7,748
Machinery and equipment 10,504 18,637 — (1,061 ) (531 ) — 27,549
Vehicles 11 62 — (10 ) — — 63
Furniture and fixtures 12,573 1,303 — (951 ) — 560 13,485
Construction-in-progress 25,295 69,693 — — (8,420 ) (17,362 ) 69,206
~~W~~ 145,006 111,540 (886 ) (3,622 ) (10,657 ) (43,594 ) 197,787
(*1) During the year ended December 31, 2023, the Company estimated the recoverable amount based on the net<br>fair value of land adjacent to the magnesium smelting plant located in Gangneung city where operation and development has been discontinued. The Company recognized an impairment loss since recoverable amounts are less than their carrying amounts.<br>
--- ---
(*2) Represents assets transferred from<br>construction-in-progress to other property, plant and equipment, assets transferred from investment properties.
--- ---

19

Table of Contents

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

September 30, 2024 and 2023 (Unaudited)

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

As of September 30, 2024 and December 31, 2023, there are no right-of-use assets listed as property, plant and equipment.

2) Amount recognized in profit or loss

The amounts recognized in profit or loss related to leases for each of the three-month and the nine-month periods ended September 30, 2024 and 2023 are as follows:

(in millions of Won) For the three-month periodsended September 30 For the nine-month periodsended September 30
2024 2023 2024 2023
Expenses related to short-term leases ~~W~~ 2,227 1,011 6,613 1,116
Expenses related to leases of low-value assets 1,181 944 3,789 2,091
~~W~~ 3,408 1,955 10,402 3,207

10. Intangible Assets

Changes in the carrying amount of intangible assets for the nine-month period ended September 30, 2024 and the year ended December 31, 2023 are as follows:

(a) For the nine-month period ended September 30, 2024
(in millions of Won) Beginning Acquisitions Disposals Amortization Others(*2) Ending
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Intellectual property rights ~~W~~ 576 — — (124 ) 257 709
Membership(*1) 11,618 — (1,546 ) — — 10,072
Development expense 2,905 — — (982 ) 1,866 3,789
Construction-in-progress 3,565 2,248 (239 ) — (2,123 ) 3,451
Other intangible assets 677 — — (174 ) — 503
~~W~~ 19,341 2,248 (1,785 ) (1,280 ) — 18,524
(*1) Estimated useful life of membership is indefinite.
--- ---
(*2) Represents assets transferred from<br>construction-in-progress to other intangible assets, assets transferred from property, plant and equipment and others.
--- ---

20

Table of Contents

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

September 30, 2024 and 2023 (Unaudited)

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

11. Other Assets

Other assets as of September 30, 2024 and December 31, 2023 are as follows:

(in millions of Won) September 30, 2024 December 31, 2023
Current
Advance payments ~~W~~ 232 208
Prepaid expenses 2,622 865
2,854 1,073
Non-current
Long-term advance payments 8,069 1,843
Long-term prepaid expenses 557 21
Others 6 8
~~W~~ 8,632 1,872

12. Borrowings

(a) Borrowings as of September 30, 2024 and December 31, 2023 are as follows:
(in millions of Won) September 30, 2024 December 31, 2023
--- --- --- --- ---
Current
Exchangeable bonds ~~W~~ 39,919 1,756,691
Non-current
Long-term borrowings ~~W~~ 1,347 1,316

21

Table of Contents

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

September 30, 2024 and 2023 (Unaudited)

(b) Current portions of debentures as of September 30, 2024 and December 31, 2023 are as follows:<br>
(in millions of Won) Lenders Issuancedate Maturitydate Annualinterest rate (%) September 30, 2024 December 31, 2023
--- --- --- --- --- --- --- --- --- ---
Exchangeable bonds(*1) Foreign currency <br>exchangeable bonds 2021.09.01. 2026.09.01. — 39,919 1,756,691
(*1) The issuance conditions of the exchangeable bonds issued by the Company are as follows. As of<br>September 30, 2024, exchangeable bonds are reclassified as current liabilities because the bondholders’ put option for redemption has become exercisable within 12 months.
--- ---
Foreign currency exchangeable bonds
--- ---
Type of bond Exchangeable bonds
Aggregate principal amount(*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<br> <br>(Won/share)(*2) 443,680
Underlying shares Registered common shares(treasury shares)
Exchange period From October 12, 2021 to August 22, 2026
Adjustments for exchange price Adjusting the exchange price according to the terms and conditions of the bond in the events of reason for adjusting the exchange price such as, bonus issue, share split, share consolidation, change of share type, issuance of<br>options or warranties to shareholders, share dividend, cash dividend, issuance of new shares under the market price.
Put option by bondholders - 3 years(September 1, 2024) from the closing date
- In the event of a change of control of the Company
- Where the shares issued by the Company are delisted (or suspended for more than 30 consecutive trading days)
Call option by the issuer - Share price(based on closing price) is higher than 130% of exchange price for more than 20 trading days during 30 consecutive trading days in a row, after 3 years (September 1, 2024) from the closing day to 30 business days before<br>the maturity of bonds
- When the outstanding balance of outstanding bonds is less than 10% of the total issuance (Clean-Up Call)
- Where additional reasons for tax burden arise due to the amendment of relevant laws and regulations, etc
(*1) Due to put option exercised by bondholders, EUR 1,038,800,000 of EUR 1,065,900,000 in aggregate principal<br>amount of exchangeable bonds was redeemed during the nine-month period ended September 30, 2024.
--- ---
(*2) The exchange price has changed due to cash dividends paid during the nine-month period ended September 30,<br>2024.
--- ---

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

22

Table of Contents

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

September 30, 2024 and 2023 (Unaudited)

(c) Long-term borrowings and others excluding current portion as of September 30, 2024 and December 31,<br>2023 are as follows:
(in millions of Won) Lenders Issuancedate Maturitydate Annualinterest rate (%) September 30, 2024 December 31, 2023
--- --- --- --- --- --- --- --- --- --- ---
Foreign borrowings KOREA ENERGY AGENCY 2011.12.27. 2026.12.26. 3 year<br>Government<br>bond ~~W~~ 1,347 1,316

13. Other Payables

Other payables as of September 30, 2024 and December 31, 2023 are as follows:

(in millions of Won) September 30, 2024 December 31, 2023
Current
Accounts payable ~~W~~ 20,826 25,971
Accrued expenses 19,363 10,681
Dividend payable 2,700 3,087
~~W~~ 42,889 39,739
Non-current
Long-term withholdings ~~W~~ 33,110 29,962
Less: Present value discount (2,618 ) (3,158 )
~~W~~ 30,492 26,804

14. Other Financial Liabilities

Other financial liabilities as of September 30, 2024 and December 31, 2023 are as follows:

(in millions of Won) September 30, 2024 December 31, 2023
Current
Financial guarantee liabilities ~~W~~ 14,113 1,571
Non-current
Financial guarantee liabilities ~~W~~ — 6,968

23

Table of Contents

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

September 30, 2024 and 2023 (Unaudited)

15. Provisions

(a) Provisions as of September 30, 2024 and December 31, 2023 are as follows:
(in millions of Won) September 30, 2024 December 31, 2023
--- --- --- --- --- --- --- --- ---
Current Non-current Current Non-current
Provision for bonus payments(*1) ~~W~~ 1,862 — 6,055 —
Provision for restoration(*2) 5,717 1,710 8,928 2,634
~~W~~ 7,579 1,710 14,983 2,634
(*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 September 30, 2024. In order to determine the estimated costs, the Company has assumed that it would use all of technologies and materials<br>available for now to recover the land. In addition, the Company has applied discount rates of 3.25% to assess present value of these costs.
--- ---
(b) Changes in provisions for the nine-month period ended September 30, 2024 and the year ended<br>December 31, 2023 are as follows:
--- ---
1) For the nine-month period ended September 30, 2024
--- ---
(in millions of Won) Beginning Increase Utilization Ending
--- --- --- --- --- --- --- --- --- ---
Provision for bonus payments ~~W~~ 6,055 6,774 (10,967 ) 1,862
Provision for restoration 11,562 181 (4,316 ) 7,427
~~W~~ 17,617 6,955 (15,283 ) 9,289
2) For the year ended December 31, 2023
--- ---
(in millions of Won) Beginning Increase Reversal Utilization Ending
--- --- --- --- --- --- --- --- --- --- --- --- ---
Provision for bonus payments ~~W~~ 5,667 10,154 — (9,766 ) 6,055
Provision for restoration 15,865 853 — (5,156 ) 11,562
Others 34,724 — (8,158 ) (26,566 ) —
~~W~~ 56,256 11,007 (8,158 ) (41,488 ) 17,617

24

Table of Contents

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

September 30, 2024 and 2023 (Unaudited)

16. Employee Benefits

(a) Defined contribution plans

The expenses related to post-employment benefit plans under defined contribution plans for each of the three-month and the nine-month periods ended September 30, 2024 and 2023 are as follows:

(in millions of Won) For the three-month periodsended September 30 For the nine-month periodsended September 30
2024 2023 2024 2023
Expense related to post-employment benefit plans under defined contribution plans ~~W~~ 33 17 96 101
(b) Defined benefit plans
--- ---
1) The amounts recognized in relation to net defined benefit liabilities in the statements of financial position<br>as of September 30, 2024 and December 31, 2023 are as follows:
--- ---
(in millions of Won) September 30, 2024 December 31, 2023
--- --- --- --- --- --- ---
Present value of funded obligations ~~W~~ 36,435 44,276
Fair value of plan assets (38,379 ) (39,993 )
Net defined benefit liabilities(assets) ~~W~~ (1,944 ) 4,283
2) The amounts recognized in the statements of comprehensive income for each of the three-month and the nine-month<br>periods ended September 30, 2024 and 2023 are as follows:
--- ---
(in millions of Won) For the three-month periodsended September 30 For the nine-month periodsended September 30
--- --- --- --- --- --- --- --- --- --- --- --- ---
2024 2023 2024 2023
Current service costs ~~W~~ 1,550 1,064 5,276 5,080
Net interest costs (86 ) (105 ) (256 ) (314 )
~~W~~ 1,464 959 5,020 4,766

17. Other Liabilities

Other liabilities as of September 30, 2024 and December 31, 2023 are as follows:

(in millions of Won) September 30, 2024 December 31, 2023
Current
Advances received ~~W~~ 1,173 5
Withholdings 2,475 3,938
Unearned revenue 2,555 2,743
~~W~~ 6,203 6,686
Non-current
Unearned revenue ~~W~~ 2,618 3,158

25

Table of Contents

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

September 30, 2024 and 2023 (Unaudited)

18. Financial Instruments

(a) Classification and fair value of financial instruments
1) The carrying amount and the fair values of financial assets and financial liabilities by fair value hierarchy<br>as of September 30, 2024 and December 31, 2023 are as follows:
--- ---
① September 30, 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~~ 1,300,702 — 1,300,702 — 1,300,702
Other securities 216,109 — — 216,109 216,109
Fair value through other comprehensive income
Equity securities 677,686 635,342 — 42,344 677,686
Financial assets measured at amortized cost(*1)
Cash and cash equivalents 481,718 — — — —
Trade accounts and notes receivable 51,370 — — — —
Other receivables 39,394 — — — —
Deposit instruments 1,250,002 — — — —
~~W~~ 4,016,981 635,342 1,300,702 258,453 2,194,497
Financial liabilities
Fair value through profit or loss
Borrowings ~~W~~ 39,919 39,919 — — 39,919
Financial liabilities measured at amortized cost(*1)
Borrowings 1,347 — 1,347 — 1,347
Financial guarantee liabilities 14,113 — — — —
Others 65,736 — — — —
~~W~~ 121,115 39,919 1,347 — 41,266
(*1) Fair value of financial assets and liabilities measured at amortized cost approximates their carrying amounts.<br>
--- ---
② December 31, 2023
--- ---
(in millions of Won) Fair value
--- --- --- --- --- --- --- --- --- --- ---
Book value Level 1 Level 2 Level 3 Total
Financial assets
Fair value through profit or loss
Short term financial instruments ~~W~~ 2,190,743 — 2,190,743 — 2,190,743
Other securities 204,320 — — 204,320 204,320
Fair value through other comprehensive income
Equity securities 926,752 884,408 — 42,344 926,752
Financial assets measured at amortized cost(*1)
Cash and cash equivalents 376,914 — — — —
Trade accounts and notes receivable 100,323 — — — —
Other receivables 64,393 — — — —
Deposit instruments 1,750,002 — — — —
5,613,447 884,408 2,190,743 246,664 3,321,815
Financial liabilities
Fair value through profit or loss
Borrowings 1,756,691 1,756,691 — — 1,756,691
Financial liabilities measured at amortized cost(*1)
Borrowings 1,316 — 1,316 — 1,316
Financial guarantee liabilities 8,539 — — — —
Others 62,252 — — — —
~~W~~ 1,828,798 1,756,691 1,316 — 1,758,007
(*1) Fair value of financial assets and liabilities measured at amortized cost approximates their carrying amounts.<br>
--- ---

26

Table of Contents

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

September 30, 2024 and 2023 (Unaudited)

2) Financial liabilities were recognized in connection with financial guarantee contracts as of September 30,<br>2024. 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 Co., Ltd. Credit Agricole USD 50,000,000 65,980 — —
ING USD 55,000,000 72,578 — —
Mizuho USD 50,000,000 65,980 — —
Shinhan USD 50,000,000 65,980 — —
POSCO Argentina S.A.U. BNP USD 110,000,000 145,156 46,754,009 61,697
CITI USD 187,975,000 248,052 121,878,940 160,831
Credit Agricole USD 187,975,000 248,052 121,878,940 160,831
HSBC USD 187,975,000 248,052 121,878,940 160,831
JPM USD 187,975,000 248,052 121,878,940 160,831
BANK OF AMERICA USD 50,900,000 67,167 15,561,826 20,536
KEXIM USD 167,100,000 220,505 51,013,024 67,317
Associates
Nickel Mining Company SAS SMBC EUR 46,000,000 67,807 46,000,000 67,807
USD 1,284,900,000 1,695,554 600,844,619 792,874
EUR 46,000,000 67,807 46,000,000 67,807
3) Finance income and costs by category of financial instrument for each of the nine-month periods ended<br>September 30, 2024 and 2023 are as follows:
--- ---
① For the nine-month period ended September 30, 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 <br>through profit or loss ~~W~~ — 1,510 27,406 58,685 — 87,601 —
Financial assets at fair value <br>through other comprehensive income — — (8,219 ) — — (8,219 ) (35,849 )
Financial assets measured at <br>amortized cost 69,014 1,683 — — — 70,697 —
Financial liabilities at fair value <br>through profit or loss — (56,301 ) (12,292 ) 236,931 — 168,338 —
Financial liabilities measured at <br>amortized cost (873 ) 383 — — 1,606 1,116 —
~~W~~ 68,141 (52,725 ) 6,895 295,616 1,606 319,533 (35,849 )
② For the nine-month period ended September 30, 2023
--- ---
(in millions of Won) Finance income and costs
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Interest income(expense) Gain and loss onforeign currency Gain and losson disposal Gain and losson valuation Others Total Othercomprehensiveincome
Financial assets at fair value through profit or loss ~~W~~ — 3,875 34,582 132,751 — 171,208 —
Financial assets at fair value through other comprehensive income — — — — — — 175,656
Financial assets measured at amortized cost 51,125 20,603 — — — 71,728 —
Financial liabilities at fair value through profit or loss — (93,331 ) — (429,985 ) — (523,316 ) —
Financial liabilities measured at amortized cost — (325 ) — — 4,935 4,610 —
~~W~~ 51,125 (69,178 ) 34,582 (297,234 ) 4,935 (275,770 ) 175,656

27

Table of Contents

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

September 30, 2024 and 2023 (Unaudited)

19. Share Capital and Capital Surplus

(a) Share capital as of September 30, 2024 and December 31, 2023 are as follows:
(in Won, except share information) September 30, 2024 December 31, 2023
--- --- --- --- ---
Authorized shares 200,000,000 200,000,000
Par value ~~W~~ 5,000 5,000
Issued shares(*1,2) 82,624,377 84,571,230
Shared capital(*3) ~~W~~ 482,403,125,000 482,403,125,000
(*1) As of September 30, 2024, the total number of American Depository Receipts (ADRs) outstanding in overseas<br>stock market amounts to 20,116,948 and such ADRs are equivalent to 5,029,237 shares of common stock.
--- ---
(*2) Pursuant to the resolution of a Board of Directors’ meeting on July 12, 2024, the Company decided to<br>retire 1,946,853 shares using distributable profits, and the retirement of shares was completed on August 6, 2024. As a result, as of September 30, 2024, the Company’s total number of issued shares has decreased from 84,571,230 to<br>82,624,377.
--- ---
(*3) As of September 30, 2024, the difference between the ending balance of common stock and the par value of<br>issued common stock is ~~W~~69,281 million due to retirement of 13,865,248 treasury shares.
--- ---
(b) Capital surplus as of September 30, 2024 and December 31, 2023 are as follows:
--- ---
(in millions of Won) September 30, 2024 December 31, 2023
--- --- --- --- --- --- ---
Share premium ~~W~~ 463,825 463,825
Gain on disposal of treasury shares 808,994 808,994
Gain from merger 80,627 80,627
Loss on disposal of hybrid bonds (1,787 ) (1,787 )
Share-based payment 16,331 18,898
~~W~~ 1,367,990 1,370,557

28

Table of Contents

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

September 30, 2024 and 2023 (Unaudited)

20. Accumulated Other Comprehensive Income (loss)

Accumulated other comprehensive income as of September 30, 2024 and December 31, 2023 are as follows:

(in millions of Won) September 30, 2024 December 31, 2023
Changes in fair value of equity investments at fair value through other comprehensive income<br>(loss) ~~W~~ (23,327 ) 30,678

21. Treasury Shares

Based on the Board of Directors’ resolution, the Company holds treasury shares for business purposes including price stabilization. Changes in treasury shares for the nine-month period ended September 30, 2024 and the year ended December 31, 2023 are as follows:

(shares, in millions of Won) September 30, 2024 December 31, 2023
Number of shares Amount Number of shares Amount
Beginning 8,695,023 ~~W~~ 1,889,658 8,722,053 ~~W~~ 1,892,308
Acquisition of treasury shares 255,428 92,311 — —
Disposal of treasury shares — — (27,030 ) (2,650 )
Retirement of treasury shares (1,946,853 ) (431,107 ) — —
Ending 7,003,598 ~~W~~ 1,550,862 8,695,023 ~~W~~ 1,889,658

22. Operating Revenue

(a) Details of operating revenue disaggregated by types of revenue and timing of revenue recognition for each of<br>the three-month and the nine-month periods ended September 30, 2024 and 2023 are as follows:
(in millions of Won) For the three-month periodsended September 30 For the nine-month periodsended September 30
--- --- --- --- --- --- --- --- ---
2024 2023 2024 2023
Types of revenue
Dividend income ~~W~~ 355,460 424,155 1,320,175 1,113,179
Others 46,810 49,530 140,693 155,333
~~W~~ 402,270 473,685 1,460,868 1,268,512
Timing of revenue recognition
Revenue recognized at a point in time ~~W~~ 355,826 424,158 1,320,183 1,113,189
Revenue recognized over time 46,444 49,527 140,685 155,323
~~W~~ 402,270 473,685 1,460,868 1,268,512

29

Table of Contents

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

September 30, 2024 and 2023 (Unaudited)

(b) Details of contract assets and liabilities from contracts with customers as of September 30, 2024 and<br>December 31, 2023 are as follows:
(in millions of Won) September 30, 2024 December 31, 2023
--- --- --- --- ---
Receivables
Account receivables ~~W~~ 51,370 100,323
Contract assets
Account receivables 100,745 138,009
Contract liabilities
Advance received 1,173 5
Unearned income 5,173 5,901

23. Operating Expenses

Operating expenses for each of the three-month and the nine-month periods ended September 30, 2024 and 2023 are as follows:

(in millions of Won) For the three-month periodsended September 30 For the nine-month periodsended September 30
2024 2023 2024 2023
Wages and salaries ~~W~~ 17,425 18,791 50,007 54,261
Expenses related to post-employment benefits 1,852 1,248 5,478 5,700
Other employee benefits 4,058 4,232 13,552 10,034
Travel 1,450 1,806 4,117 4,080
Taxes and public dues (1,062 ) (268 ) 11,817 13,038
Depreciation 2,802 2,522 8,410 7,595
Amortization 409 314 1,213 897
Rental 1,249 898 3,893 2,150
Repairs 300 93 670 314
Advertising 5,942 7,304 16,136 17,957
Research & development 37,063 23,851 107,200 66,237
Service fees 16,087 13,692 47,113 43,054
Supplies 59 157 337 329
Vehicles maintenance 646 695 2,121 1,904
Industry association fee 78 550 1,815 2,042
Training 336 472 1,171 825
Others 3,753 1,373 6,906 2,428
~~W~~ 92,447 77,730 281,956 232,845

30

Table of Contents

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

September 30, 2024 and 2023 (Unaudited)

24. Finance Income and Costs

Details of finance income and costs for each of the three-month and nine-month periods ended September 30, 2024 and 2023 are as follows:

(in millions of Won) For the three-month periodsended September 30 For the nine-month periodsended September 30
2024 2023 2024 2023
Finance income
Interest income ~~W~~ 22,512 17,493 69,014 51,125
Gain on foreign currency transactions 9,041 736 4,216 6,308
Gain on foreign currency translations 615 7,006 1,774 21,417
Gain on transactions of derivatives 1,058 — 1,058 —
Gain on disposal of financial assets at fair value through profit or loss 4,577 1,421 26,348 34,743
Gain on valuation of financial assets at fair value through profit or loss 15,213 17,975 58,685 132,836
Gain on valuation of financial liabilities at fair value through profit or loss 2,713 — 236,931 —
Others 628 1,804 1,613 5,203
~~W~~ 56,357 46,435 399,639 251,632
Finance costs
Loss on foreign currency transactions ~~W~~ 1,291 1,120 57,005 3,338
Loss on foreign currency translations 3,771 10,613 1,710 93,565
Loss on transactions of derivatives 6,035 — 6,035 —
Loss on disposal of equity securities — — 8,219 161
Loss on valuations of financial assets at fair value through profit or loss — 85 — 85
Loss on valuation of financial liabilities at fair value<br><br><br>through profit or loss — 309,681 — 429,985
Loss on bond redemption 6,257 — 6,257 —
Others 295 20 880 268
~~W~~ 17,649 321,519 80,106 527,402

25. Other Non-Operating Income and Expenses

Details of other non-operating income and expenses for each of the three-month and nine-month periods ended September 30, 2024 and 2023 are as follows:

(in millions of Won) For the three-month periodsended September 30 For the nine-month periodsended September 30
2024 2023 2024 2023
Other non-operating income
Gain on disposal of investments in subsidiaries, associates and joint venture ~~W~~ — 236 — 236
Reversal of other provisions — — 54 8,158
Others 676 2,171 2,189 3,084
~~W~~ 676 2,407 2,243 11,478
Other non-operating expenses
Impairment loss on other accounts receivables ~~W~~ — 2,351 106 2,351
Loss on disposal of property, plant and equipment — 2,254 — 2,254
Loss on disposals of assets held for sale — 896 — 998
Increase of other provisions 139 60 234 590
Others 560 516 5,630 1,322
~~W~~ 699 6,077 5,970 7,515

31

Table of Contents

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

September 30, 2024 and 2023 (Unaudited)

26. Expenses by Nature

Expenses that are recorded by nature as cost of sales, operating expenses and other non-operating expenses in the statements of comprehensive income for each of the three-month and nine-month periods ended September 30, 2024 and 2023 are as follows (excluding finance costs and income tax expenses):

(in millions of Won) For the three-month periodsended September 30 For the nine-month periodsended September 30
2024 2023 2024 2023
Employee benefits expenses ~~W~~ 27,866 26,106 81,382 69,976
Depreciation(*1) 3,406 2,772 10,219 8,227
Amortization 432 314 1,280 897
Service fees 16,962 14,068 48,776 43,540
Rental 3,408 2,175 10,867 3,650
Advertising 5,953 7,304 16,147 17,957
Loss on disposal of property, plant and equipment — 2,254 — 2,254
Research & development 26,298 15,924 71,368 53,734
Other expenses 8,822 12,890 47,887 42,278
~~W~~ 93,147 83,807 287,926 242,513
(*1) Includes depreciation of investment property.
--- ---

32

Table of Contents

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

September 30, 2024 and 2023 (Unaudited)

27. Income Taxes

The effective tax rates of the Company for each of the nine-month periods ended September 30, 2024 and 2023 are 1.75% and 0%, respectively.

(a) Income taxes

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

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

(b) Global minimum top-up tax

In 2023, Pillar Two legislation has been enacted in the Republic of Korea, where the Company is domiciled, and will be effective for the fiscal years starting on or after January 1, 2024. Accordingly, the Company calculated the Pillar Two income tax expense for the nine-month period ended September 30, 2024 as the Company is subject to global minimum top-up tax under the application of the OECD’s Pillar Two Model Rules via domestic legislation. As a result of the Company’s assessment on the Pillar Two income taxes, the Company did not recognize any income tax expense for the nine-month period ended September 30, 2024 as the impact of the global minimum top-up tax on the interim condensed separate financial statements as of September 30, 2024 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, and accordingly, the Company did not recognize deferred tax assets and liabilities related to the global minimum top-up tax and does not disclose information related to deferred income tax.

33

Table of Contents

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

September 30, 2024 and 2023 (Unaudited)

28. Earnings per Share

(a) Basic earnings per share for each of the three-month and nine-month periods ended September 30, 2024 and<br>2023 are as follows:
(in Won, except share information) For the three-month periodsended September 30 For the nine-month periodsended September 30
--- --- --- --- --- --- --- --- ---
2024 2023 2024 2023
Profit for the period ~~W~~ 334,994,032,159 153,385,707,998 1,468,571,617,105 885,431,452,822
Weighted-average number of common shares outstanding(*1) 75,699,376 75,816,833 75,816,833 75,867,296
Basic earnings per share ~~W~~ 4,425 2,022 19,370 11,671
(*1) The weighted-average number of common shares outstanding used to calculate basic earnings per share is as<br>follows:
--- ---
(shares) For the three-month periodsended September 30 For the nine-month periodsended September 30
--- --- --- --- --- --- --- --- --- --- --- --- ---
2024 2023 2024 2023
Total number of common shares issued 83,297,040 84,571,230 84,143,400 84,571,230
Weighted-average number of treasury shares (7,597,664 ) (8,695,023 ) (8,326,567 ) (8,703,934 )
Weighted-average number of common shares outstanding 75,699,376 75,876,207 75,816,833 75,867,296
(b) The Company has exchangeable bonds that can be exchanged for common stocks with dilutive effects as of<br>September 30, 2024. Considering the anti-dilution effect as of September 30, 2023, the Company did not calculate diluted earnings per share. Diluted earnings per share for the three-month and nine-month periods ended September 30,<br>2024 are calculated as follows:
--- ---
(in Won, except share information) For the three-month periodended September 30, 2024 For the nine-month periodended September 30, 2024
--- --- --- --- --- --- ---
Profit for the period ~~W~~ 334,994,032,159 1,468,571,617,105
Gain or loss from revaluation of and exchange rate on exchangeable bonds (8,425,258,347 ) (138,904,137,256 )
Diluted profit for the period 326,568,773,812 1,329,667,479,849
Adjusted weighted-average number of common shares outstanding(* 1) 78,013,947 78,757,791
Diluted earnings per share 4,186 16,883
(*1) The weighted-average number of common shares outstanding used to calculate diluted earnings per share are as<br>follows:
--- ---
(shares) For the three-month periodended September 30, 2024 For the nine-month periodended September 30, 2024
--- --- --- --- ---
Weighted-average number of common shares outstanding 75,699,376 75,816,833
Weighted-average number of potential common shares 2,314,571 2,940,958
Adjusted weighted-average number of common shares 78,013,947 78,757,791

34

Table of Contents

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

September 30, 2024 and 2023 (Unaudited)

29. Related Party Transactions

(a) Related parties of the Company as of September, 2024 are as follows:
Type Company
--- ---
Subsidiaries [Domestic]<br> <br>POSCO, POSCO Eco &<br>Challenge Co., Ltd., POSCO STEELEON CO., Ltd, POSCO DX, POSCO Research Institute, POSCO WIDE Co., Ltd., POSCO Capital, POSCO FUTURE M CO., LTD.,eNtoB Corporation, POSCO FLOW CO.,LTD., POSCO M-TECH, Busan<br>E&E Co,. Ltd., POSCO INTERNATIONAL Corporation, POSCO Mobility Solution Corporation,<br> <br><br><br><br>POSOCO-Pilbara LITHIUM SOLUTION Co., Ltd., POSCO HY Clean Metal Co., Ltd., POSCO LITHIUM SOLUTION,<br><br><br><br> <br>Shinan Green Energy Co.,LTD., eSteel4U, QSONE Co.,Ltd., TANCHEON E&E, POSCO IH,<br>POSCO A&C Co., Ltd,<br> <br><br> <br>Posco Group University, POSCO GY Solution, POSCO GYR Tech,<br>POSCO GYS Tech, POSCO PR Tech,<br> <br><br> <br>POSCO PS Tech, POSCO PH Solution, POSCO Humans<br>Co.,Ltd., Pohang Scrap Recycling Distribution Center Co., Ltd., P&O Chemical Co., Ltd., POSCO NIPPON STEEL RHF JOINT VENTURE.CO.,Ltd.,<br> <br><br><br><br>Songdo Development PMC (Project Management Company) LLC., NEH Co.,Ltd., POSCO CNGR Nickel Solution, POSCO-GS Eco<br>Materials Co., Ltd, Korea Fuel Cell and others.<br> <br><br> <br>[Foreign]<br><br><br>POSCO America Corporation, POSCO AUSTRALIA PTY LTD., POSCO Asia Co., Ltd., POSCO (Zhangjiagang) StainlessSteel Co.,Ltd., POSCO-China Holding Corporation, POSCO<br>JAPAN Co., Ltd., POSCO-VIETNAM Co., Ltd., POSCO MEXICO S.A. DE C.V., POSCO Maharashtra Steel Private Limited, PT. KRAKATAU POSCO, YAMATO VINA STEEL JOINTSTOCK COMPANY, POSCO Argentina S.A.U., Senex Holdings PTY LTD, ULTIUM CAM LIMITED PARTNERSHIP<br>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,<br> <br>Eco Energy Solution, UITrans LRT Co., Ltd., Pohang Special Welding Co.,Ltd., and others.<br><br><br><br> <br>[Foreign]<br><br><br>Roy Hill Holdings Pty Ltd, POSCO-NPS Niobium LLC, KOBRASCO, PT NICOLE METAL INDUSTRY,<br><br><br>HBIS-POSCO Automotive Steel Co.,Ltd, South-East Asia Gas Pipeline Company Ltd., 9404-5515 Quebec Inc.,<br><br><br>AES Mong Duong Power Company Limited, KOREALNG LTD., Nickel Mining Company SAS and others.

35

Table of Contents

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

September 30, 2024 and 2023 (Unaudited)

(b) Material transactions with related companies for each of the nine-month periods ended<br>September 30, 2024 and 2023 are as follows:
1) For the nine-month period ended September 30, 2024
--- ---
(in millions of Won) Sales and others(*1) Purchase and others
--- --- --- --- --- --- --- --- --- --- ---
Sales Dividends Others Purchase of fixedassets Others
Subsidiaries(*2)
POSCO ~~W~~ 113,665 888,008 66 191 9,470
POSCO Eco & Challenge Co., Ltd. 7,561 11,037 — 1,729 705
POSCO STEELEON CO., Ltd 899 — — — 9
POSCO DX 1,027 9,940 — 982 9,540
POSCO Research Institute — — — 30 8,180
eNtoB Corporation — — — 49 6,231
POSCO FUTURE M CO., LTD. 6,459 11,565 — — 9
POSCO INTERNATIONAL Corporation 4,548 124,396 74 — 61
Busan E&E Co,. Ltd. — 2,472 — — —
POSCO America Corporation — — — — 5,030
Others 3,907 831 1,445 1 17,279
138,066 1,048,249 1,585 2,982 56,514
Associates and joint ventures(*2)
POSCO-NPS Niobium LLC — 22,045 — — —
Roy Hill Holdings Pty Ltd — 202,550 — — —
Others 273 14,494 168 — —
273 239,089 168 — —
~~W~~ 138,339 1,287,338 1,753 2,982 56,514
(*1) Sales and others mainly consist of trademark usage income, rental income, and dividend income<br>from subsidiaries, associates and joint ventures.
--- ---
(*2) As of September 30, 2024, the Company provided payment guarantees to related parties (see<br>Note 18).
--- ---
2) For the nine-month period ended September 30, 2023
--- ---
(in millions of Won) Sales and others(*1) Purchase and others
--- --- --- --- --- --- --- --- --- --- ---
Sales Dividends(*3) Others Purchase of fixedassets Others
Subsidiaries(*2)
POSCO ~~W~~ 115,159 325,043 — — 11,362
POSCO Eco & Challenge Co., Ltd. 6,432 11,037 440 8,117 4,166
POSCO STEELEON CO., Ltd 1,641 — — — 93
POSCO DX 2,367 7,455 — 3,382 5,663
eNtoB Corporation — — 40 70 1,396
POSCO FUTURE M CO., LTD. 2,872 13,878 — — —
POSCO MOBILITY SOLUTION 739 — 55 — —
POSCO INTERNATIONAL Corporation 7,753 77,616 — — 44
POSCO Maharashtra Steel Private Limited 692 — 353 — —
POSCO ASSAN TST STEEL INDUSTRY 17 — 430 — —
Others 9,504 6,084 4,874 6,519 29,494
147,176 441,113 6,192 18,088 52,218
Associates and joint ventures(*2)
SNNC 696 — 55 — —
Roy Hill Holdings Pty Ltd — 205,739 — — —
Others 236 69,485 11,566 — 90
932 275,224 11,621 — 90
~~W~~ 148,108 716,337 17,813 18,088 52,308
(*1) Sales and others mainly consist of trademark usage income, rental income, and dividend income<br>from subsidiaries, associates and joint ventures.
--- ---
(*2) As of September 30, 2023, the Company provided payment guarantees to related parties (see<br>Note 18).
--- ---
(*3) Gain on disposals of investment in subsidiaries, recognized as dividends amounting to<br>~~W~~14,898 million, is excluded.
--- ---

36

Table of Contents

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

September 30, 2024 and 2023 (Unaudited)

(c) The balances of receivables and payables arising from significant transactions with related<br>parties as of September 30, 2024 and December 31, 2023 are as follows:
1) September 30, 2024
--- ---
(in millions of Won) Receivables Payables
--- --- --- --- --- --- --- --- --- --- --- --- ---
Trade accountsand notesreceivable Others Total Accountspayable Others Total
Subsidiaries
POSCO ~~W~~ 78,316 1,423 79,739 4,186 35,846 40,032
POSCO Eco & Challenge Co., Ltd. 7,210 309 7,519 113 — 113
POSCO STEELEON CO., Ltd 841 — 841 — — —
POSCO DX 1,114 — 1,114 1,978 391 2,369
POSCO FUTURE M CO., LTD. 14,668 — 14,668 — 56 56
POSCO Mobility Solution Corporation 735 — 735 — 5 5
POSCO INTERNATIONAL Corporation 4,713 10 4,723 — 304 304
POSCO Argentina S.A.U — 22,020 22,020 — — —
Others 2,169 230 2,399 3,054 244 3,298
109,766 23,992 133,758 9,331 36,846 46,177
Associates and joint ventures
SNNC 202 — 202 — — —
Roy Hill Holdings Pty Ltd 27,521 — 27,521 — — —
FQM Australia Holdings Pty Ltd(*1) — 224,027 224,027 — — —
Others 141 356 497 — — —
27,864 224,383 252,247 — — —
~~W~~ 137,630 248,375 386,005 9,331 36,846 46,177
(*1) FQM Australia Holdings Pty Ltd’s other receivable consists of long-term loans and<br>accrued interest. Meanwhile, the Company has recognized an allowance for doubtful accounts for all of these other receivables.
--- ---
2) December 31, 2023
--- ---
(in millions of Won) Receivables Payables
--- --- --- --- --- --- --- --- --- --- --- --- ---
Trade accountsand notesreceivable Others Total Accountspayable Others Total
Subsidiaries
POSCO ~~W~~ 110,913 19,666 130,579 3,937 32,901 36,838
POSCO Eco & Challenge Co., Ltd. 9,262 1,714 10,976 — 170 170
POSCO STEELEON CO., Ltd 1,063 — 1,063 — — —
POSCO DX 1,574 — 1,574 1,434 423 1,857
eNtoB Corporation — — — 1,391 3 1,394
POSCO FUTURE M CO., LTD 14,299 463 14,762 — 31 31
POSCO Mobility Solution Corporation 981 — 981 — — —
POSCO INTERNATIONAL Corporation 6,449 25 6,474 — 163 163
PT. KRAKATAU POSCO — 3,582 3,582 — — —
Others 3,345 11,152 14,497 9,022 151 9,173
147,886 36,602 184,488 15,784 33,842 49,626
Associates and joint ventures
SNNC 334 — 334 — — —
Roy Hill Holdings Pty Ltd 88,008 — 88,008 — — —
FQM Australia Holdings Pty Ltd(*1) — 218,900 218,900 — — —
Others 195 560 755 — — —
88,537 219,460 307,997 — — —
~~W~~ 236,423 256,062 492,485 15,784 33,842 49,626
(*1) FQM Australia Holdings Pty Ltd’s other receivable consists of long-term loans and<br>accrued interest. During the year ended December 31, 2023, the Company provided additional loan of ~~W~~6,448 million to FQM Australia Holdings Pty Ltd. Meanwhile, the Company has recognized an allowances for doubtful accounts<br>for all of these other receivables during the year ended December 31, 2023.
--- ---

37

Table of Contents

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

September 30, 2024 and 2023 (Unaudited)

(d) For each of the nine-month periods ended September 30, 2024 and 2023, the Company additional capital<br>contribution transaction in subsidiaries, etc.(see Note 7).:
(e) For each of the nine-month periods ended September 30, 2024 and 2023, details of compensation to key<br>management officers are as follows:
--- ---
(in millions of Won) September 30, 2024 September 30, 2023
--- --- --- --- ---
Short-term benefits ~~W~~ 19,099 25,871
Retirement benefits 2,570 4,221
~~W~~ 21,669 30,092

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

30. Commitments and Contingencies

(a) Commitments
1) As of September 30, 2024, the Company entered into commitments with KOREA ENERGY AGENCY for long-term<br>foreign 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.<br>The 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>September 30, 2024, the ending balance of the borrowing amounts to USD 1.02 million.
--- ---
2) The Company has deposited 83,671 treasury shares for exchange with the Korea Securities Depository in relation<br>to foreign currency exchangeable bonds as of September 30, 2024.
--- ---
(b) As of September 30, 2024, the Company has provided three blank checks to KOREA ENERGY AGENCY as collateral<br>for long-term foreign currency borrowings.
--- ---
(c) Litigation in progress
--- ---

The Company is involved in 3 lawsuits amounting in total to ~~W~~500 million as defendant as of September 30, 2024. However, the Company has not recognized any provisions for the lawsuit since the Company does not believe it has a present obligation as of September 30, 2024.

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

38

Table of Contents

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

September 30, 2024 and 2023 (Unaudited)

31. Cash Flows from Operating Activities

Changes in operating assets and liabilities for each of the nine-month periods ended September 30, 2024 and 2023 are as follows:

(in millions of Won) September 30, 2024 September 30, 2023
Trade accounts and notes receivable ~~W~~ 37,170 (6,440 )
Other accounts receivable 11,591 12,376
Prepaid expenses (2,293 ) (3,026 )
Other current assets (365 ) 165
Short-term guarantee deposits — (656 )
Other non-current assets (6,307 ) (3,558 )
Other accounts payable (3,510 ) 3,446
Accrued expenses 8,682 6,112
Advances received 1,167 (319 )
Withholdings (1,463 ) (1,084 )
Unearned revenue (1,060 ) (66 )
Other current liabilities (8,508 ) (6,004 )
Payments of severance benefits (14,093 ) (7,635 )
Plan assets 2,531 2,104
~~W~~ 23,542 (4,585 )

32. Events After the Reporting Period

(a) Pursuant to the resolution of the Board of Directors on November 1, 2024, the Company decided to pay<br>interim cash dividends of ~~W~~2,500 per common share (total dividend: ~~W~~189.1 billion).
(b) Pursuant to the resolution of the Board of Directors on November 1, 2024, the Company decided to acquire<br>~~W~~500 billion of the ~~W~~600 billion in hybrid bonds to be issued by POSCO Future M Co., Ltd. for the purpose of strengthening financial soundness, etc. The issuance and acquisition of these hybrid bonds are<br>scheduled for December 18, 2024.
--- ---
(c) Pursuant to the resolution of the Board of Directors on November 1, 2024, the Company decided to sell the<br>shares of four companies including POSCO Maharashtra Steel Private Limited, in order to support the follow-up actions of vertical spin-off and enhance the management<br>efficiency of the steel business within the Group.
--- ---

39

Report a Problem

Category
Description
Email (optional, for follow-up)