POSCO (PKX) 6-K Current report (foreign)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER

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

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of May, 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 1Q 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: May 31, 2024	By	/s/ Kim, Seung-Jun
		(Signature)
		Name: Kim, Seung-Jun
		Title: Executive Vice President

Exhibit 99.1

QURATERLY REPORT

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

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

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

QUARTERLY REPORT

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

To:  Korean Financial Services Commission and Korea Exchange

/s/ Jeong, Ki-Seop         

Jeong, Ki-Seop

President and Representative Director

POSCO HOLDINGS INC.

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.

6261 Donghaean-ro, Pohang-si, Nam-gu, Gyungsangbuk-do, Korea

Telephone: +82-054-220-0114

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TABLE OF CONTENTS

I.   Overview	4
II. Business	5
III.  Financial Statements	35

ø Attachment: Independent auditors’ review reports on consolidated and separate financial statements

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I. OVERVIEW

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

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II. BUSINESS

1. Overview

A. Classification of Business

We classify our business into six segments:

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

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

B. Summary of Financial Status of Segment

									(In millions of KRW)
Business Segment	2024.1Q				2023				2022
	Sales		Operating Income (Loss)		Sales		Operating Income (Loss)		Sales		Operating Income (Loss)
Steel		15,444,214		339,059		63,538,698		2,556,779		70,649,647		3,236,220
Green Infrastructure (Trading)		10,525,644		256,134		42,943,752		1,133,512		49,589,760		872,279
Green Infrastructure (Construction)		2,534,963		33,465		10,267,503		197,352		8,885,491		293,344
Green Infrastructure (Logistics and etc.)		1,092,006		49,952		3,945,953		202,010		7,425,508		377,919
Green Materials and Energy		1,156,142		6,435		4,821,886		-161,334		3,388,760		143,452
Others		923,695		812,640		1,562,214		1,106,332		1,169,536		843,682
Total		31,676,664		1,497,685		127,080,006		5,034,651		141,108,702		5,766,896

* It is based on aggregated basis including internal transactions among affiliates.

* Since POSCO Energy has been merged into POSCO International as of January 2023, the performance of POSCO Energy prior to the merger has been included into Green Infrastructure (Logistics and etc.).

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2. Business Status of Segments

A. Steel

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

∎ POSCO

(1) Summary 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.

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

Global Crude Steel Production

				(Millions of Tons, %)
Crude Steel Production	2024. 1Q			2023			2022
Global		469			1,850			1,832
Korea (Ratio)		16 (3.5	%)		67 (3.6	%)		66 (3.6	%)

ø 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.

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

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

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

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

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

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

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

(2) Market Share

											(Millions of Tons, %)
Category	2024.1Q					2023					2022
	Production		Market share			Production		Market share			Production		Market share
Crude Steel Production		16		100	%		67		100	%		66		100	%
POSCO		9		53	%		36		53	%		34		52	%
Others		8		47	%		31		47	%		32		48	%

ø Source: World Steel Association (www.worldsteel.org)

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∎ POSCO STEELEON

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

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

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

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

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

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(3) Market Share

											(Tons)
Category	2024.1Q					2023					2022
	Sales Volume		Market share			Sales Volume		Market share			Sales Volume		Market share
POSCO M-TECH		9,090		46.8	%		31,984		44.7	%		31,245		44.0	%
PJ Metal		10,345		53.2	%		39,600		55.3	%		39,700		56.0	%
Total		19,435		100.0	%		71,584		100.0	%		70,945		100.0	%

ø It is difficult to calculate exact market share of Aluminum deoxidizers as total production and sales volume of the domestic market are not counted.

B. Green Infrastructure [Trading segment]

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

∎ POSCO INTERNATIONAL

(1) Market Share

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

			(Millions of US Dollars)
Category	2024.1Q		2023.1Q		Growth Rate
All Trading Companies in Korea		163,766		151,216		8.30	%
POSCO International Corp.		2,161		2,227		-2.96	%

ø Source: Korea International Trade Association (www.kita.net)

(2) Summary of Businesses

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

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

[Global Business Sector]

• Trading business : POSCO International has not only been securing stable supply line in steel business but also been actively developing and expanding new businesses such as secondary battery business, agro-commodities, and industrial materials based on the know-how accumulated over a long period of time in the traditional trading business and through its vast overseas networks. POSCO International is also carrying out agro-commodities trading and food resource development projects in order to secure sustainable future food resources. As a result, the company has diversified its sales outlets in Korea, China, Southeast Asia, and MENA, while expanding food import volume.

• Motor core business: Together with POSCO Mobility Solution which is a subsidiary of POSCO International, 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 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 environmentally friendly palm farming through RSPO certification.

• Ambatovy Nickel Mine Project : POSCO International has been participating in the Ambatovy Nickel Mine 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 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 10-year hotel management contract with Lotte Hotel.

[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 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 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 was completed in December 2023, and the platform will be operated after completing the test drive in the first half of 2024.

• LNG Business : The company began LNG trading in 2017 based on Its expertise in developing international 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.

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• Onshore gas business in Australia : To execute the group’s carbon neutrality and hydrogen business strategies in a timely manner and expand its existing energy business centered in Myanmar, the company has acquired Senex Energy Limited in Australia. Senex Energy Limited is an energy company located in Brisbane on the east coast of Australia, producing gas from onshore oil and gas fields in eastern Australia for domestic and overseas customers. Recognizing the rising gas demand and high gas prices in the east coast of Australia, the company has launched additional development projects with a targeted three-fold increase in gas production by 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.

• Heavy oil power plant in Papua New Guinea.

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

[New business investment]

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

B. Green Infrastructure [Construction segment]

∎ POSCO E&C

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

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

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

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

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

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

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

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

B. Green Infrastructure [Logistics and etc. segment]

∎ POSCO DX

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

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

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C. Green Materials and Energy

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

∎ POSCO Future M

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

[Basic industrial materials business]

• Refractory production : Refractories maintain their chemical properties and strength even at high temperatures making them indispensable materials for industrial facilities including the furnaces in steelworks and petrochemical plants. In the refractory business, POSCO Future M produces and maintains refractories. In order to keep price competitiveness in the domestic market, the company has expanded its business to China.

• Lime business : In the quicklime & chemical business, POSCO Future M is currently doing 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.

[Energy material business]

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

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

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

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

D. Others

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

3. Key Products

A. Sales of Key Products (2024.1Q)

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

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B. Price Movement Trends of Key Products

				(In thousands of KRW/Tons, KRW/kWh)
Business Segment	Products	2024.1Q		2023		2022
Steel	Hot-rolled Product (HR)		943		967		1,105
	Cold-rolled Product (CR)		1,143		1,157		1,293
Green Infrastructure	Electric Power		173		205		224
Green Materials and Energy	Refractory		1,063		991		1,022
	Lime		151		147		117

ø Above price movement trend of steel segment in 2022 is based on the price between March 1 to December 31, 2022 (HR and CR price in 2022 is 1,163 and 1,300 thousand won)

ø Construction and Logistics and etc. segments of Green Infrastructure are omitted due to its difficulties of measuring raw materials fluctuations. In the case of the secondary battery material business, detailed descriptions are not included due to risk of information leakage

[Steel]

(1) Criteria for Calculation

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

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

(2) Factors of Price Changes

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

[Green Infrastructure]

(1) Criteria for Calculation

(a) Subjects for Calculation: Price of electric power

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

(2) Factors of Price Changes

Power : Korea Gas Corporation cost, etc.

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

[Green materials and Energy]

(1) Criteria for Calculation

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

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

(2) Factors of Price Changes

• Price of refractories is affected by business condition of front industry and raw material cost.

• Quicklime price is mainly influenced by utility unit price and raw materials cost. The price fluctuation of quicklime is small.

• Raw materials for energy materials are subject to price fluctuations depending on the international supply of mineral resources.

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4. Major Raw Materials

A. Current Status of Major Raw Materials

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

* Amount: CIF + customs duties + stevedoring fees + other incidental expenses

17

B. Price Movement Trends of Major Raw Materials

			(In thousands of KRW)
Business Segment		Category	2024.1Q		2023		2022
Steel		Iron Ore(per ton)		150		145		143
		Coal(per ton)		409		387		472
		Scrap Iron(per ton)		521		526		605
		Nickel(per ton)		22,034		28,043		33,147
Green Infrastructure	Trading	LNG (per ton)		1,171		1,428		1,594
	Construction	Ready-mixed Concrete (per m3)		90		85		77
		Steel Pile (per m)		157		165		180
		Steel Reinforcement (per kg)		0.9		0.9		1.0
		Cable (per m)		0.9		0.9		0.9
Green Materials and Energy		Refractory (per ton)		257		334		479
		Limestone (per ton)		25		24		22

ø Green Infrastructure (Logistics and etc. segment) and Others segment are omitted due to its difficulties of measuring raw materials fluctuations. In the case of the EV battery material business, detailed descriptions are not included due to risk of information leakage

[Steel]

ø Price Movement Trend of Major Raw Materials

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

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

18

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

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

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

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

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

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

ø LME : London Metal Exchange

19

[Green Infrastructure]

(1) Criteria for Calculation

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

[Green Materials and Energy]

(1) Criteria for Calculation

• Refractory and lime: Purchase prices including freight costs

(2) Factors of Price Changes

• Refractory raw materials : Price fluctuations and compositional costs of raw materials in China

• Limestone : Raw material price fluctuation is not extreme and it varies slightly depending on the freight cost

• Energy materials : Price trends are not disclosed considering concerns about information leakage

20

5. Production and Facilities

A. Production Capacity

[Steel]

∎ POSCO

					(Thousands of Tons)
Business Area	Products		2024.1Q		2023		2022
Steel		Crude Steel		10,114		40,680		40,680

* The steel production above includes POSCO’s performance before the spin-off (January to February 2022).

∎ POSCO STEELEON

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

∎ POSCO M-TECH

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

[Green Infrastructure]

∎ POSCO INTERNATIONAL

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

[Green Materials and Energy]

∎ POSCO FUTURE M

			(Thousands of Tons)
Business Area	Products	Place of Business	2024.1Q		2023		2022
Refractory	Brick and etc.	Pohang		28,981		116,560		116,560
LIME	Quicklime	Pohang		273,000		1,095,000		1,095,000
		Gwangyang		273,000		1,095,000		1,095,000
Total				574,981		2,306,560		2,303,000

* In the case of the energy materials sector, detailed notation was omitted in consideration of technology and information leakage concerns.

21

B. Production Result and Capacity Utilization Rate

[Steel]

(1) Production				(Thousands of Tons)
Products		2024.1Q		2023		2022
Crude Steel			9,698		39,941		37,928
Products	Hot-Rolled Steel		2,562		10,660		9,268
	Plate		1,606		6,602		5,857
	Wire Rod		585		2,325		1,988
	Pickled-Oiled Steel		717		2,780		2,847
	Cold-Rolled Products		1,859		7,133		7,623
	Coated Steel		1,913		7,299		6,708
	Electrical Steel		218		828		1,005
	Stainless Steel		847		3,104		3,400
	Others		377		1,795		3,261
	Total		10,685		42,528		41,957

ø The amount of products is the aggregate amount of POSCO’s production and production of POSCO’s subsidiaries, which may include interested parties’ transactions.

ø POSCO’s production result includes production of POSCO HOLDINGS before the 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		10,114		8,660		85.60	%
	PT.KRAKATAU POSCO		703		726		103.20	%
	POSCO (Zhangjiagang) Stainless Steel Co., Ltd.		275		199		72.40	%
	POSCO YAMATO VINA STEEL JOINT STOCK COMPANY		138		113		82.10	%
	Total		11,230		9,698		86.40	%

22

[Green Infrastructure]

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

∎ POSCO INTERNATIONAL

(1) Production Result

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

(2) Capacity Utilization Rate

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

[Green Materials and Energy]

∎ POSCO FUTURE M

(1) Production Result

							(Tons)
Business Area	Products	Place of Business	2024.1Q		2023		2022
Refractory	Brick and etc.	Pohang		20,458		77,437		81,094
LIME	Quicklime	Pohang		259,039		1,110,594		1,043,109
		Gwangyang		295,889		1,243,040		1,176,611
Total				575,386		2,431,071		2,300,814

ø Coke oven gas (COG) facility is a simple consignment operation for POSCO facilities, so production performance is omitted

ø In the case of the EV battery material business, detailed descriptions are not included due to risk of information leakage

(2) Capacity Utilization Rate (2024.1Q)

					(Tons,%)
Business Area	Capacity		Production		Utilization Rate
Refractory Factory		28,981		20,458		71
Quicklime Factory (Pohang)		273,000		259,039		95
Quicklime Factory (Gwangyang)		273,000		295,889		108
Total		574,981		575,386		—

ø Coke oven gas (COG) facility is a simple consignment operation for POSCO facilities, so production performance is omitted

ø In the case of the EV battery material business, detailed descriptions are not included due to risk of information leakage

23

C. Production Facilities

(1) The current status of production facilities

[Land]								(In millions of KRW)
Business Segment		Beginning Book Balance		Increased		Decreased		Depreciation		Ending Book Balance
Steel			1,880,196		21,842		—		—		1,902,038
Green Infrastructure	Trading		495,571		236		-1,612		—		494,195
	Construction		378,849		158		-30,607		—		348,400
	Logistics and etc.		111,058		—		-2,471		—		108,587
Green Materials and Energy			234,415		1,646		-684		—		235,377
Others			190,155		1,237		—		—		191,392

[Buildings]								(In millions of KRW)
Business Segment		Beginning Book Balance		Increased		Decreased		Depreciation		Ending Book Balance
Steel			2,978,895		121,436		-1,163		-68,193		3,030,975
Green Infrastructure	Trading		569,770		17,806		-433		-5,818		581,325
	Construction		91,841		144		-3,035		-983		87,967
	Logistics and etc.		107,521		3,023		—		-2,414		108,130
Green Materials and Energy			554,815		1,810		-1,610		-5,158		549,857
Others			124,790		37		-1,640		-462		122,725

[Structures]								(In millions of KRW)
Business Segment		Beginning Book Balance		Increased		Decreased		Depreciation		Ending Book Balance
Steel			2,383,628		260,695		-19,034		-58,762		2,566,527
Green Infrastructure	Trading		472,112		3,803		-151		-6,817		468,947
	Construction		51,855		800		-46		-1,710		50,899
	Logistics and etc.		102,528		1,603		—		-2,549		101,582
Green Materials and Energy			55,637		2,696		—		-1,863		56,470
Others			15,764		—		-152		-114		15,498

24

[Machinery and Equipments]								(In millions of KRW)
Business Segment		Beginning Book Balance		Increased		Decreased		Depreciation		Ending Book Balance
Steel			13,828,139		1,292,948		-568,789		-557,998		13,994,300
Green Infrastructure	Trading		1,212,326		19,822		-7,097		-26,540		1,198,511
	Construction		7,490		257		-94		-603		7,050
	Logistics and etc.		275,244		12,983		—		-16,208		272,019
Green Materials and Energy			1,197,388		73,648		-4		-28,223		1,242,809
Others			18,605		277		-4		-511		18,367

[Vehicles]								(In millions of KRW)
Business Segment		Beginning Book Balance		Increased		Decreased		Depreciation		Ending Book Balance
Steel			50,878		3,582		-1,833		-5,351		47,276
Green Infrastructure	Trading		12,126		1,853		-971		-682		12,326
	Construction		6,112		2,031		-1,344		-482		6,317
	Logistics and etc.		1,054		16		—		-64		1,006
Green Materials and Energy			9,361		1,084		-185		-947		9,313
Others			64		—		-1		-4		59

[Tools and Fixtures]								(In millions of KRW)
Business Segment		Beginning Book Balance		Increased		Decreased		Depreciation		Ending Book Balance
Steel			68,552		6,473		-2,444		-6,209		66,372
Green Infrastructure	Trading		23,813		8,124		-502		-4,210		27,225
	Construction		1,415		368		-153		-181		1,449
	Logistics and etc.		4,438		2,919		—		-494		6,863
Green Materials and Energy			30,615		1,139		-119		-2,690		28,945
Others			32		—		—		—		32

[Equipment]								(In millions of KRW)
Business Segment		Beginning Book Balance		Increased		Decreased		Depreciation		Ending Book Balance
Steel			112,086		8,781		-6,859		-8,040		105,968
Green Infrastructure	Trading		27,861		3,497		-677		-2,792		27,889
	Construction		9,875		2,603		-673		-1,016		10,789
	Logistics and etc.		12,561		4,024		-20		-807		15,758
Green Materials and Energy			13,278		1,263		-176		-1,146		13,219
Others			14,226		155		-6		-374		14,001

25

[Financial Lease Assets]								(In millions of KRW)
Business Segment		Beginning Book Balance		Increased		Decreased		Depreciation		Ending Book Balance
Steel			247,157		120,704		-8,712		-49,710		309,439
Green Infrastructure	Trading		384,096		13,684		-10,540		-14,397		372,843
	Construction		37,015		27,300		-14,368		-8,343		41,604
	Logistics and etc.		211,108		18,283		-2,290		-1,583		225,518
Green Materials and Energy			97,959		14,362		-9,347		-5,223		97,751
Others			20,970		701		-445		-736		20,490

[Biological Assets]								(In millions of KRW)
Business Segment		Beginning Book Balance		Increased		Decreased		Depreciation		Ending Book Balance
Steel			—		—		—		—		—
Green Infrastructure	Trading		137,331		2,135		—		-2,370		137,096
	Construction		—		—		—		—		—
	Logistics and etc.		—		—		—		—		—
Green Materials and Energy			—		—		—		—		—
Others			—		—		—		—		—

[Assets under Construction]								(In millions of KRW)
Business Segment		Beginning Book Balance		Increased		Decreased		Depreciation		Ending Book Balance
Steel			2,795,425		965,260		-989,777		—		2,770,908
Green Infrastructure	Trading		322,944		76,068		-7,962		—		391,050
	Construction		10,961		1,081		-2,994		—		9,048
	Logistics and etc.		126,315		57,307		-19,775		—		163,847
Green Materials and Energy			3,008,621		924,301		-19,901		—		3,913,021
Others			69,407		93		—		—		69,500

(2) New Facility Establishment, Purchase, Etc.

(a) Investments under Construction

26

[Steel]						(In hundred millions of KRW)
Company		Date	Project	Total Investment		Invested Amount		Amount to Be Invested
POSCO	Expansion/ Establishment	November 2021 ~ December 2025	G)   Increased production capacity of electrical steel for eco-friendly vehicles in Gwangyang		9,088		8,571		517
		February 2023~December 2025	G)   Establishment of Electric arc furnace		6,420		325		6,095
		February 2020 ~ August 2025	P)  Establishment of #6 Coke plant		14,453		12,094		2,359
	Maintenance/ Improvement	October 2020 ~ August 2027	G,P) The first phase of the sealing of raw material yards for both Pohang and Gwangyang Works		32,902		9,748		23,154
		August 2021 ~ September 2029	P)  Improvement of #2 Hot strip mill furnace		3,084		170		2,914

ø P stands for Pohang Steel Works.

ø G stands for Gwangyang Steel Works.

[Green Infrastructure (Trading / Logistics and etc.)]				(In hundred millions of KRW)
Company		Date	Project	Total Investment		Invested Amount		Amount to Be Invested
POSCO International	Expansion/ Establishment	January 2021- ~June 2024	Gwangyang LNG #6 Tank		1,437		1,111		326
NEH	Expansion/ Establishment	May 2022~July 2026	Gwangyang LNG terminal		8,668		3,101		5,567

27

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

ø Ongoing investments over KRW 100 billion as of March 31, 2024 are listed on the table.

ø Investments in China and Canada are based on the payment of POSCO Future M’s capital.

28

6. Product Sales

[Steel]

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

[Green Infrastructure]

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

29

[Green Materials and Energy]

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

[Others]

	(In hundred millions of KRW)
Items	2024.1Q		2023		2022
Gross Sum		9,241		15,622		11,695
Deduction of Internal Transaction		-9,130		-14,495		-10,402
Total		111		1,127		1,293

ø Domestic and overseas categorized by the sales area.

ø Sales of POSCO International’s foreign branches are included in ‘trade among the 3 countries’ under Green Infrastructure part

ø As of January 2023, POSCO Energy was merged into POSCO International. As a result, the performance of POSCO Energy before the merger was included in Green Infrastructure (Logistics and etc. segment).

7. Derivatives

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

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

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

30

8. Significant Contracts

[Major management contracts]

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

(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)

(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

[Green Infrastructure (Trading)]

∎ POSCO INTERNATIONAL

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

32

[Green Infrastructure (Logistics and etc.)]

∎ POSCO FLOW

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

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
Green Infrastructure	POSCO MOBILITY SOLUTION	STS Business Office R&D Group
		Core Business Office Product Process Development Group
		Core Business Office Mold Research Group
	POSCO Eco & Challenge	R&D Center
	POSCO A&C	Smart Housing Business Department
	POSCO DX	R&D Center
Green Materials and Energy	POSCO Future M	R&D Center
		Energy Material R&D Center
Others	POSCO HOLDINGS INC.	New Experience of Technology Hub
		New Experience of Technology Stragetegy Office New Experience of Technology Hub
		AI R&D Laboratories, New Experience of Technology Hub
		LiB Materials R&D Laboratories New Experience of Technology Hub
		Hydrogen and Low-Carbon Energy R&D Laboratories, New Experience of Technology Hub

33

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

* Total includes government subsidy.

34

III. Financial Statements

1. Consolidated Financial Statements

A. Summary

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

35

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

B. The Standards Used for Reporting the Financial Statements

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

36

2. Separate Financial Statements

A. Summary

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

37

Account	2024.1Q		2023		2022
[Retained earnings]		48,275,653		47,505,885		47,409,675
[Other equity]		-1,895,857		-1,858,980		-2,081,109
Total equity		48,232,756		47,499,865		47,171,863

	From January 1, 2024 to March 31, 2024		From January 1, 2023 to December 31, 2023		From January 1, 2022 to December 31, 2022
Revenue		898,738		1,454,079		8,589,819
Operating profit		813,076		1,106,629		1,674,893
Profit		941,339		799,578		-467,852
Earnings per share(KRW)		12,406		10,539		-6,185

B. The Standards Used for Reporting the Financial Statements

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

38

POSCO HOLDINGS INC.

and its subsidiaries

Interim condensed consolidated financial statements

for the three-month period ended March 31, 2024

with the independent auditor’s review report

Table of Contents

Report on review of interim condensed consolidated financial statements

	Page
Interim condensed consolidated financial statements
Interim condensed consolidated statements of financial position		1
Interim condensed consolidated statements of comprehensive income		3
Interim condensed consolidated statements of changes in equity		4
Interim condensed consolidated statements of cash flows		6
Notes to the interim condensed consolidated financial statements		8

  Ernst & Young Han Young 2-3F, 7-8F, Taeyoung Building, 111,  Yeouigongwon-ro, Yeongdeungpo-gu, Seoul 07241 Korea   Tel: +82 2 3787 6600 Fax: +82 2 783 5890 ey.com/kr

Report on review of interim condensed consolidated financial statements

(English translation of a report originally issued in Korean)

The Stockholders and Board of Directors

POSCO HOLDINGS INC.

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

Management’s responsibility for the interim condensed consolidated financial statements

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

Auditor’s responsibility

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

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

Conclusion

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

1

A member firm of Ernst & Young Global Limited

Other matters

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

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

May 16, 2024

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

A member firm of Ernst & Young Global Limited

POSCO HOLDINGS INC. and its subsidiaries

Interim condensed consolidated financial statements

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

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

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

Kisub Jung

Representative Director and President

POSCO HOLDINGS INC.

POSCO HOLDINGS INC. and its subsidiaries

Interim condensed consolidated statements of financial position

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

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

(continued)

1

POSCO HOLDINGS INC. and its subsidiaries

Interim condensed consolidated statements of financial position, Continued

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

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

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

2

POSCO HOLDINGS INC. and its subsidiaries

Interim condensed consolidated statements of comprehensive income

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

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

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

3

POSCO HOLDINGS INC. and its subsidiaries

Interim condensed consolidated statements of changes in equity

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

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

(continued)

4

POSCO HOLDINGS INC. and its subsidiaries

Interim condensed consolidated statements of changes in equity, continued

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

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

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

5

POSCO HOLDINGS INC. and its subsidiaries

Interim condensed consolidated statements of cash flows

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

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

(continued)

6

POSCO HOLDINGS INC. and its subsidiaries

Interim condensed consolidated statements of cash flows, continued

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

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

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

7

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

1. General Information

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

(a) The controlling company

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

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

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

(b) Consolidated subsidiary acquired or newly established during the three-month period ended March 31, 2024 is as follows:

Company	Date of inclusion	Ownership (%)	Reason
POSCO CNGR Nickel Solution	January 2024	60.00	New establishment

2. Basis of preparation

Statement of compliance

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

The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group’s annual financial statements as of December 31, 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.

8

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

2. Basis of preparation (cont’d)

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.

(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, either directly or indirectly.

• Level 3 - inputs for the assets or liabilities that are not based on observable market data.

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.

9

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

3. Summary of Material Accounting Policy information

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

Changes in Accounting Policies

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

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

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

• that only if an embedded derivative in a convertible liability is itself an equity instrument would the terms of a liability not impact its classification.

10

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

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

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

4. Trade Accounts and Notes Receivable

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

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

Consolidated entities discounted accounts receivable in accordance with accounts receivable factoring agreements with financial institutions in three-month periods ended March 31, 2024 and in year ended December 31, 2023. This transaction is a transaction with the right to appeal because the consolidated entity is obligated to pay the amount to the bank, etc. if the trade receivables are not recovered at maturity, and the transaction is accounted for as collateral borrowing. As of the three-month period ended March 31, 2024 and the year ended December 31, 2023, the book value of accounts receivable according to the transaction isW116,640 million andW132,942 million, respectively, and the amount is included in the short-term borrowings.

11

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

5. Other Receivables

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

(in millions of Won)	March 31, 2024			December 31, 2023
Current
Short-term Loans	W	311,716			223,011
Other accounts receivable		1,411,071			1,433,423
Accrued income(* 1)		250,726			237,154
Deposits		136,538			125,854
Others		25,729			15,349
Lease receivables		24,262			23,948
Less: Allowance for doubtful accounts		(107,999	)		(111,210	)
	W	2,052,043			1,947,529
Non-current
Long-term Loans(* 1)	W	1,314,133			1,204,645
Other accounts receivable		196,597			186,492
Accrued income		205,353			184,739
Deposits		295,042			308,185
Lease receivables		76,233			78,994
Less: Allowance for doubtful accounts		(534,934	)		(510,610	)
	W	1,552,424			1,452,445

(*1) The Company recognized a full provision for bad debt ofW258,332 million for other bonds to FQM Australia Holdings Pty Ltd., an affiliated company due to low possibility of collecting other bonds during the year ended December 31, 2023.

12

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

6. Other Financial Assets

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

(in millions of Won)	March 31, 2024		December 31, 2023
Current
Derivatives assets	W	195,920		166,873
Debt securities		297,403		295,619
Deposit instruments(* 1)		4,722,751		4,400,267
Short-term financial instruments(* 1)		5,988,969		6,540,407
	W	11,205,043		11,403,166
Non-current
Derivatives assets	W	217,565		134,269
Equity securities(* 2)		1,855,239		1,793,531
Debt securities		89,544		87,778
Other securities(* 2)		722,418		669,687
Deposit instruments(* 1)		25,213		23,060
Long-term financial instruments		7		—
	W	2,909,986		2,708,325

(*1) As of March 31, 2024 and December 31, 2023, financial instruments amounting toW164,925 million andW101,888 million, respectively, are restricted in use for financial arrangements, pledge and others.

(*2) As of March 31, 2024 and December 31, 2023,W202,141 million andW181,617 million of equity and other securities, respectively, have been provided as collateral for borrowings, construction projects and others.

7. Inventories

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

(in millions of Won)	March 31, 2024			December 31, 2023
Finished goods	W	2,511,828			2,615,009
Merchandise		1,022,478			1,049,467
Semi-finished goods		2,834,190			3,039,516
Raw materials		3,418,105			3,237,691
Fuel and materials		949,262			921,742
Construction inventories		254,838			256,558
Materials-in-transit		3,163,922			2,965,306
Others		97,931			87,802
		14,252,554			14,173,091
Less: Allowance for inventories valuation(* 1)		(277,512	)		(347,577	)
	W	13,975,042			13,825,514

(*1) In the three-month periods ended March 31, 2024 and the year ended March 31, 2023, the revamped inventory asset valuation losses areW73,505 million andW106,535 million, respectively.

13

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

8. Assets Held for Sale

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

(in millions of Won)	March 31, 2024		December 31, 2023 (* 1)
Asset
Account receivables and other receivables	W	—		728
Inventories		—		39,054
Other financial assets		—		119,881
Property, plant and equipment		5,336		149,612
Intangible assets		—		97,372
Others		—		298
	W	5,336		406,945
Liability
Other payables	W	—		22,180
Provisions		—		119,710
	W	—		141,890

(*1) POSCO Canada Ltd., a subsidiary of the consolidated entity decided to invest in kind in the assets and liabilities of Greenhills Mine and the shares of Elkview Mine Limited Partnership, which were respectively accounted for as investment stock in joint ventures and financial assets at fair value through profit or loss, in a partnership to be established by the principal operator and major shareholder, Tech Coal Partnership, during the year ended December 31, 2023, and recognizedW401,804 million of assets to be sold andW141,890 million of liabilities to be sold.

14

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

9. Investments in Associates and Joint ventures

(a) Details of investments in associates as of March 31, 2024 and December 31, 2023 are as follows:

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

(*1) As of March 31, 2024 and December 31, 2023, investments in associates amounting toW670,768 million andW650,116 million, respectively, are provided as collateral in relation to the associates’ borrowings.

(*2) As of March 31, 2024, the entities are classified as associates since the Group has significant influence 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.

15

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

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

(b) Details of investments in joint ventures as of March 31, 2024 and December 31, 2023 are as follows:

(in millions of Won)	March 31, 2024								December 31, 2023
Company	Number of shares		Ownership (% )		Acquisition cost		Book value		Book value
[Domestic]
POSCO MC MATERIALS		11,568,000		60.00	W	115,680	W	151,936		155,748
Others (6 companies)								8,846		8,323
								160,782		164,071
[Foreign]
Roy Hill Holdings Pty Ltd(* 1)		13,117,972		12.50		1,528,672		1,345,654		1,400,009
POSCO-NPS Niobium LLC		325,050,000		50.00		364,609		437,852		419,192
KOBRASCO		2,010,719,185		50.00		32,950		103,306		99,768
BX STEEL POSCO Cold Rolled Sheet Co., Ltd.		—		25.00		61,961		118,995		111,001
DMSA/AMSA(* 1)		—		3.89		346,880		11,567		16,572
PT NICOLE METAL INDUSTRY(* 2)		76,382,353		49.00		292,780		292,984		284,351
HBIS-POSCO Automotive Steel Co. Ltd		—		50.00		235,251		207,689		208,765
Others (9 companies)								27,254		24,282
								2,545,301		2,563,940
							W	2,706,083		2,728,011

(*1) As of March 31, 2024 and December 31, 2023, the investments in joint ventures are provided as collateral in relation to the joint ventures’ borrowings.

(*2) During the year ended December 31, 2023, the Group acquired 49% of shares in PT NICOLE METAL INDUSTRY, forW292,780 million and classified them as investments in joint ventures.

16

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

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

(c) Changes in investments in associates and joint ventures for the three-month period ended March 31, 2024 and the year ended December 31, 2023 are as follows:

1) For the three-month period ended March 31, 2024

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

(*1) Other increase (decrease) represents the changes in investments in associates and joint ventures due to disposals and change in capital adjustments effect from translations of financial statements of foreign investees and others for the three-month period ended March 31, 2024.

17

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

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

2) For the year ended December 31, 2023

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

(*1) Other increase (decrease) represents the changes in investments in associates and joint ventures due to disposals and change in capital adjustments effect from translations of financial statements of foreign investees and others during the year ended December 31, 2023.

(*2) During the year ended December 31, 2023, the Company acquired an additional 50% of the shares held by an 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.

18

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

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

(d) Summarized financial information of associates and joint ventures as of and for the three-month period ended March 31, 2024 and the year ended December 31, 2023 are as follows:

1) March 31, 2024

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

19

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

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

2) December 31, 2023

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

10. Joint Operations

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

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

20

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

11. Investment Property

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

(a) For the three-month period ended March 31, 2024

(in millions of Won)	Beginning		Acquisitions		Disposals			Depreciation			Impairment loss			Others(* 1)			Ending
Land	W	787,304		1,710		—			—			(215	)		33,512			822,311
Buildings		655,786		1,506		—			(6,812	)		(456	)		(60,512	)		589,512
Structures		1,873		—		—			(228	)		—			185			1,830
Right-of-use assets		171,331		—		(27	)		(11,679	)		—			5,806			165,431
	W	1,616,294		3,216		(27	)		(18,719	)		(671	)		(21,009	)		1,579,084

(*1) Includes reclassification resulting from changes in purpose of use, and adjusted foreign currency translation difference and others.

(b) For the year ended December 31, 2023

(in millions of Won)	Beginning		Acquisitions		Business Combination(*2)		Disposals			Depreciation			Others(* 1)			Ending
Land	W	308,523		54,891		473,301		(60	)		—			(49,351	)		787,304
Buildings		593,505		1,006		83,739		(303	)		(28,902	)		6,741			655,786
Structures		1,356		—		—		—			(1,049	)		1,566			1,873
Right-of-use assets		170,647		216		—		(78	)		(5,635	)		6,181			171,331
	W	1,074,031		56,113		557,040		(441	)		(35,586	)		(34,863	)		1,616,294

(*1) Includes reclassification resulting from changes in purpose of use, and adjusted foreign currency translation difference and others.

(*2) Represents increases in investment property due to business combination upon incorporation of QSONE Co.,Ltd. into a subsidiary during the year ended December 31, 2023.

21

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

12. Property, Plant and Equipment

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

1) For the three-month period ended March 31, 2024

(in millions of Won)	Beginning		Acquisitions		Disposals			Depreciation			Impairment loss			Others(* 1)			Ending
Land	W	3,290,244		398		—			—			—			(10,653	)		3,279,989
Buildings		4,427,632		3,139		(151	)		(82,993	)		(35	)		133,387			4,480,979
Structures		3,081,524		472		(1,162	)		(69,327	)		(2,488	)		250,904			3,259,923
Machinery and equipment		16,539,192		33,132		(2,872	)		(591,975	)		(38,108	)		793,687			16,733,056
Vehicles		79,595		3,397		(452	)		(7,530	)		—			1,287			76,297
Tools		128,865		10,055		(183	)		(13,784	)		—			5,933			130,886
Furniture and fixtures		189,887		7,855		(512	)		(14,175	)		—			4,569			187,624
Right-of-use assets		998,305		46,597		(2,028	)		(79,992	)		—			104,763			1,067,645
Bearer plants		137,331		—		—			(2,370	)		—			2,135			137,096
Construction-in-progress		6,333,673		1,940,033		(401	)		—			—			(955,932	)		7,317,373
	W	35,206,248		2,045,078		(7,761	)		(862,146	)		(40,631	)		330,080			36,670,868

(*1) Represents assets transferred from construction-in-progress to intangible assets and other property, plant and equipment, reclassifications resulting from change in purpose of use, adjustments of foreign currency translation differences and others.

2) For the year ended December 31, 2023

(in millions of Won)	Beginning		Acquisitions		Business Combination(* 2)		Disposals			Depreciation			Impairment loss(* 3,4)			Others(* 1)			Ending
Land	W	3,103,165		83,489		32,565		(7,502	)		—			(5,471	)		83,998			3,290,244
Buildings		4,174,894		53,344		5,770		(14,619	)		(326,280	)		(28,614	)		563,137			4,427,632
Structures		3,162,927		16,498		3,651		(6,915	)		(261,970	)		(28,483	)		195,816			3,081,524
Machinery and equipment		16,422,830		211,181		—		(63,195	)		(2,401,947	)		(202,885	)		2,573,208			16,539,192
Vehicles		52,131		34,004		—		(782	)		(26,322	)		—			20,564			79,595
Tools		90,961		40,170		—		(607	)		(52,444	)		(77	)		50,862			128,865
Furniture and fixtures		173,345		36,975		655		(1,516	)		(61,947	)		(63	)		42,438			189,887
Right-of-use assets		921,198		243,433		—		(15,095	)		(170,386	)		—			19,155			998,305
Bearer plants		141,720		—		—		—			(9,579	)		—			5,190			137,331
Construction-in-progress		3,538,025		6,388,837		—		(2,269	)		—			(8,420	)		(3,582,500	)		6,333,673
	W	31,781,196		7,107,931		42,641		(112,500	)		(3,310,875	)		(274,013	)		(28,132	)		35,206,248

(*1) Represents assets transferred from construction-in-progress to intangible assets and other property, plant and equipment, reclassifications resulting from change in purpose of use, adjustments of foreign currency translation differences and others.

(*2) Represents increases in property, plant and equipment upon reclassification of QSONE Co.,Ltd., which was previously an associate, into a subsidiary by acquiring additional shares during the year ended December 31, 2023.

(*3) The consolidated entity calculated the net fair value for individual assets that were suspended due to some changes in operation plans, such as lithium production facilities in Gwangyang and Argentina, and recognized an impairment loss ofW196,207 million for property, plant and equipment whose recoverable amount was less than the book value during the year ended December 31, 2023.

(*4) The consolidated entity calculated the value of use for the hydrogen peroxide manufacturing facility in Gwangyang, which had signs of damage due to changes in raw material prices and changes in production plans during the year ended December 31, 2023, and recognized an impairment loss ofW46,535 million for property, plant and equipment whose recoverable amount was less than the book value.

22

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

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

(b) Changes in the carrying amount of right-of-use assets presented as investment property and property, plant and equipment for the three-month period ended March 31, 2024 and the year ended December 31, 2023 are as follows:

1) For the three-month period ended March 31, 2024

(in millions of Won)	Beginning		Acquisitions		Depreciation			Others			Ending
Land	W	363,789		638		(10,737	)		(27,099	)		326,591
Buildings and structures		151,366		29,346		(8,598	)		65,383			237,497
Machinery and equipment		355,604		10,415		(58,156	)		78,957			386,820
Vehicles		48,228		5,212		(4,552	)		(4	)		48,884
Ships		220,754		—		(6,470	)		—			214,284
Others		29,895		986		(3,158	)		(8,722	)		19,001
	W	1,169,636		46,597		(91,671	)		108,515			1,233,077

2) For the year ended December 31, 2023

(in millions of Won)	Beginning		Acquisitions		Depreciation			Others			Ending
Land	W	368,167		10,470		(15,582	)		734			363,789
Buildings and structures		163,648		49,929		(52,697	)		(9,514	)		151,366
Machinery and equipment		319,021		73,761		(55,481	)		18,303			355,604
Vehicles		18,652		38,410		(16,456	)		7,622			48,228
Ships		215,496		28,178		(22,920	)		—			220,754
Others		6,862		42,901		(12,885	)		(6,983	)		29,895
	W	1,091,846		243,649		(176,021	)		10,162			1,169,636

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

(in millions of Won)	March 31, 2024		March 31, 2023
Interest on lease liabilities	W	12,346		9,307
Expenses related to short-term leases		18,935		7,481
Expenses related to leases of low-value assets		6,656		5,353
	W	37,937		22,141

23

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

13. Goodwill and Other Intangible Assets

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

(a) For the three-month period ended March 31, 2024

(in millions of Won)	Beginning		Acquisitions		Disposals			Amortization			Impairment loss			Others(* 2)			Ending
Goodwill	W	403,172		—		—			—			—			145			403,317
Intellectual property rights		3,029,651		80,971		—			(75,073	)		—			18,981			3,054,530
Membership(* 1)		138,184		944		(777	)		(41	)		(11	)		126			138,425
Development expense		126,818		1,428		—			(18,810	)		—			1,658			111,094
Port facilities usage rights		182,411		—		—			(3,700	)		—			—			178,711
Exploratation and evaluation assets		163,446		7,231		—			—			—			4,304			174,981
Development assets		10,235		223		—			—			—			(31	)		10,427
Customer relationships		196,895		—		—			(11,120	)		—			(45	)		185,730
Other intangible assets		463,972		22,393		(176	)		(13,897	)		—			(7,134	)		465,158
	W	4,714,784		113,190		(953	)		(122,641	)		(11	)		18,004			4,722,373

(*1) Estimated useful life of membership is indefinite.

(*2) Represents assets transferred from construction-in-progress to intangible assets and assets transferred from 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			Impairment loss(* 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 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 acquired shares of the new partnership, and recognized an impairment loss ofW88,518 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 property, plant and equipment, adjustments of foreign currency translation difference and others.

24

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

14. Other Assets

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

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

15. Borrowings

(a) Short-term borrowings and current portion of long-term borrowings and others as of March 31, 2024 and December 31, 2023 are as follows:

(in millions of Won)	Lenders	Issuance date	Maturity date	Interest rate (% )	March 31, 2024			December 31, 2023
Short-term borrowings
Bank overdrafts	JP Morgan and others	April, 2023~March, 2024	April, 2024~December, 2024	3.65 ~ 7.55	W	67,338			69,160
Short-term borrowings	HSBC and others	April, 2023~March, 2024	April, 2024~March, 2025	0.10 ~ 58.85		6,186,323			4,890,120
						6,253,661			4,959,280
Current portion of long-term liabilities
Current portion of long-term borrowings	Export-Import Bank of Korea and others	September, 2001~March, 2024	April, 2024~December, 2024	0.25 ~ 9.15		1,067,318			990,088
Current portion of debentures	KB Securities co.,Ltd. and others	April, 2019~October, 2021	January, 2024~October, 2024	1.64 ~ 2.75		3,381,552			3,255,375
Less: Current portion of discount on debentures issued						(3,081	)		(2,217	)
Current portion of exchangable bonds(* 1)	Foreign currency exchangable bonds	September, 2021	September, 2026			1,642,466			1,756,691
						6,088,255			5,999,937
					W	12,341,916			10,959,217

(*1) The issuance conditions of the exchangeable bonds issued by the Group are as follows. As of December 31, 2023, exchangeable bonds are reclassified as current liabilities because the bondholders’ put option for redemption has become exercisable within 12 months.

25

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

15. Borrowings (cont’d)

	Foreign currency exchangable bonds
Type of bond	Exchangable bonds
Aggregate principal amount	EUR 1,065,900,000
Interest rate	- Coupon rate : - - Yield to Maturity : (0.78%)
Maturity date	September 1, 2026
Redemption	1) Redemption at Maturity : Outstanding bond principal, which is not repaid early or which call option is not exercised on, is repaid at 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)	446,504(*)
Underlying shares exchange	Registered common shares(treasury shares)
Exchange period	From October 12, 2021 to August 22, 2026
Adjustments for exchange price	Adjusting the exchange price according to the terms and conditions of the bond in the events of reason for adjusting the exchange price such as, bonus issue, share split, share consolidation, change of share type, issuance of 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 the maturity of bonds. - When the outstanding balance of outstanding bonds is less than 10% of the total issuance(Clean-Up Call) - Where additional reasons for tax burden arise due to the amendment of relevant laws and regulations, etc.

(*) The exchange price has changed due to cash dividends paid during the three-month period ended March 31, 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.

26

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

(b) Long-term borrowings, excluding current portion and others, as of March 31, 2024 and December 31, 2023 are as follows:

(in millions of Won)	Lenders	Issuance date	Maturity date	Interest rate (% )		March 31, 2024			December 31, 2023
Long-term borrowings	Export-Import Bank of Korea and others	September, 2001~March, 2024	May, 2025~March, 2040		0.10 ~ 9.16	W	4,989,914			4,590,541
Less: Present value discount							(7,663	)		(9,414	)
Bonds	KB Securities co.,Ltd. and others	July, 2015~March, 2024	April, 2025~January, 2033		1.68 ~ 6.82		10,474,868			10,478,394
Less: Discount on debentures issued							(53,723	)		(48,359	)
						W	15,403,396			15,011,162

(c) Assets pledged as collateral with regard to the borrowings as of March 31, 2024 are as follows:

(in millions of Won)	Lenders		Book value		Pledged amount
Property, plant and equipment and Investment property		Korea Development Bank and others	W	4,424,563		8,056,242
Trade accounts and notes receivable		Korea Development Bank and others		116,640		116,640
Financial instruments		Shinhan Bank and others		73,364		73,279
			W	4,614,567		8,246,161

16. Other Payables

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

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

17. Other Financial Liabilities

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

(in millions of Won)	March 31, 2024		December 31, 2023
Current
Derivative liabilities	W	48,934		38,631
Financial guarantee liabilities		4,302		5,114
Others(* 1)		125,190		119,881
	W	178,426		163,626
Non-current
Derivative liabilities	W	11,854		81,291
Financial guarantee liabilities		7,346		7,858
Others		64,634		64,633
	W	83,834		153,782

(*1) The Group recognized other financial liabilities in connection with the put option agreement which POSCO FUTURE MATERIALS CANADA INC. (formerly, POSCO CHEMICAL CANADA INC.), a subsidiary, entered into with GM Battery Raw Materials Corporation.

27

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

18. Provisions

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

(in millions of Won)	March 31, 2024				December 31, 2023
	Current		Non-current		Current		Non-current
Provision for bonus payments	W	79,642		38,967		146,277		38,114
Provision for construction warranties		47,556		142,810		50,222		146,536
Provision for legal contingencies and claims(* 1)		21,210		50,456		20,893		52,169
Provision for the restoration(* 2)		6,834		178,254		14,567		161,253
Others(* 3,4,5)		202,745		69,977		187,785		69,937
	W	357,987		480,464		419,744		468,009

(*1) The Group recognized probable outflow of resources amounting toW37,918 million andW45,712 million as provisions for legal contingencies and asserted claim in relation to lawsuits against the Group as of March 31, 2024 and December 31, 2023, respectively.

(*2) Due to contamination of lands near the Group’s magnesium smelting plant located in Gangneung city and others, the Group recognized present values of estimated costs for recovery amounting toW15,049 million as provisions for restoration as of March 31, 2024. In order to determine the estimated costs, the Group has assumed that it would use all of technologies and materials available for now to recover the land. In addition, the Group has applied a discount rate of 3.69%~3.72% to measure present value of these costs.

(*3) As of March 31, 2024 and December 31, 2023, POSCO INTERNATIONAL Corporation and Korea Fuel Cell, recognizedW22,732 million andW23,224 million of provisions for warranties, respectively, for the service contract on fuel cell based on its estimate of probable outflow of resources.

(*4) As of March 31, 2024 and December 31, 2023, the Group has recognized emission liabilities amounting toW9,065 million, for expected greenhouse gas emissions exceeding the quantity of free quota emission rights.

(*5) According to the Act on the promotion of the development, use and diffusion of new and renewable energy, 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 insufficient supply of power using new and renewable energy to be borne, and as of March 31, 2024 and December 31, 2023, the Group recognizedW93,150 million andW64,166 million respectively, as provision.

28

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

18. Provisions (cont’d)

(b) Changes in provisions for the three-month period ended March 31, 2024 and the year ended December 31, 2023 are as follows:

1) For the three-month period ended March 31, 2024

(in millions of Won)	Beginning		Increase		Utilization			Reversal			Others(* 1)			Ending
Provision for bonus payments	W	184,391		49,423		(111,831	)		(3,350	)		(24	)		118,609
Provision for construction warranties		196,758		12,671		(9,512	)		(4,187	)		(5,364	)		190,366
Provision for legal contingencies and claims		73,062		3,085		(941	)		(4,667	)		1,127			71,666
Provision for the restoration		175,820		7,534		(851	)		(1,694	)		4,279			185,088
Others		257,722		171,523		(16,068	)		(172,930	)		32,475			272,722
	W	887,753		244,236		(139,203	)		(186,828	)		32,493			838,451

(*1) Includes adjusted foreign currency translation differences and others.

2) For the year ended December 31, 2023

(in millions of Won)	Beginning		Increase		Utilization			Reversal			Others(* 1)			Ending
Provision for bonus payments	W	169,432		181,221		(158,529	)		(6,063	)		(1,670	)		184,391
Provision for construction warranties		205,974		42,653		(49,117	)		(8,350	)		5,598			196,758
Provision for legal contingencies and claims		106,341		16,327		(48,144	)		(3,599	)		2,137			73,062
Provision for the restoration		191,146		104,227		(9,887	)		(80	)		(109,586	)		175,820
Others		423,013		189,227		(255,001	)		(112,909	)		13,392			257,722
	W	1,095,906		533,655		(520,678	)		(131,001	)		(90,129	)		887,753

(*1) Includes transfer to liabilities held for sale and adjusted foreign currency translation differences and others.

29

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

19. Employee Benefits

(a) Defined contribution plans

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

(in millions of Won)	March 31, 2024		March 31, 2023
Expense related to post-employment benefit plans under defined contribution plans	W	18,669		18,211

(b) Defined benefit plans

1) The amounts recognized in relation to net defined benefit assets in the statements of financial position as of March 31, 2024 and December 31, 2023 are as follows:

(in millions of Won)	March 31, 2024			December 31, 2023
Present value of funded obligations	W	2,412,498			2,445,797
Fair value of plan assets(* 1)		(2,842,586	)		(2,902,714	)
Present value of non-funded obligations		12,044			30,912
Net defined benefit liabilities	W	(418,044	)		(426,005	)

(*1) As of March 31, 2024 and December 31, 2023, the Group recognized net defined benefit assets amounting toW486,152 million andW464,758 million, respectively, since there are consolidated entities whose fair value of plan assets exceeded the present value of defined benefit obligations.

2) The amounts recognized in interim condensed consolidated statements of comprehensive income for each of the three-month periods ended March 31, 2024 and 2023 are as follows:

(in millions of Won)	March 31, 2024			March 31, 2023
Current service costs	W	67,822			59,112
Net interest costs		(5,574	)		(7,775	)
	W	62,248			51,337

30

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

20. Other Liabilities

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

(in millions of Won)	March 31, 2024		December 31, 2023
Current
Due to customers for contract work	W	550,077		624,632
Advances received		347,261		304,441
Unearned revenue		69,289		69,062
Withholdings		295,668		297,442
Firm commitment liability		9,072		20,136
Others(* 1)		20,630		21,929
	W	1,291,997		1,337,642
Non-current
Unearned revenue	W	3,747		8,889
Others(* 1)		104,183		105,583
	W	107,930		114,472

(*1) As of March 31, 2024 and December 31, 2023, the Group recognized the assumed liability amounting toW52,646 million andW56,325 million, respectively related to unfavorable terms of a customer contract relative to market-terms upon the acquisition of Senex Energy Limited.

31

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

21. Financial Instruments

(a) Classification and fair value of financial instruments

1) The carrying amount and fair values of financial assets and financial liabilities by fair value hierarchy as of March 31, 2024 and December 31, 2023 are as follows:

① March 31, 2024

(in millions of Won)			Fair value
	Book value		Level 1		Level 2		Level 3		Total
Financial assets
Fair value through profit or loss
Derivative assets	W	408,179		—		408,179		—		408,179
Short-term financial instruments		5,988,969		—		5,988,969		—		5,988,969
Equity securities		85,108		55,246		—		29,862		85,108
Debt securities		91,665		—		76,051		15,614		91,665
Other securities		722,418		—		270		722,148		722,418
Derivative hedging instruments(* 2)		5,306		—		5,306		—		5,306
Fair value through other comprehensive income
Equity securities		1,770,131		1,346,495		—		423,636		1,770,131
Financial assets measured at amortized cost(* 1)
Cash and cash equivalents		6,873,603		—		—		—		—
Trade accounts and notes receivable		9,945,751		—		—		—		—
Other receivables		3,002,530		—		—		—		—
Debt securities		295,282		—		—		—		—
Deposit instruments		4,747,964		—		—		—		—
	W	33,936,906		1,401,741		6,478,775		1,191,260		9,071,776
Financial liabilities
Fair value through profit or loss
Derivative liabilities	W	49,347		—		49,347		—		49,347
Borrowings		1,642,466		1,642,466		—		—		1,642,466
Other financial Liabilities		189,823		—		—		189,823		189,823
Derivative hedging instruments(* 2)		11,442		—		11,442		—		11,442
Financial liabilities measured at amortized cost(* 1)
Trade accounts and notes payable		5,383,455		—		—		—		—
Borrowings		26,102,846		—		25,663,278		—		25,663,278
Financial guarantee liabilities		11,648		—		—		—		—
Others		3,745,485		—		—		—		—
	W	37,136,512		1,642,466		25,724,067		189,823		27,556,356

(*1) Fair value of financial assets and liabilities measured at amortized cost except borrowings approximates their carrying amounts.

(*2) The Group applies hedge accounting which uses forward contracts as hedging instrument in order to hedge the 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 foreign exchange rate changes in foreign currency which influences cash flow from borrowings.

32

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

21. Financial Instruments (cont’d)

② December 31, 2023

(in millions of Won)			Fair value
	Book value		Level 1		Level 2		Level 3		Total
Financial assets
Fair value through profit or loss
Derivative assets	W	291,541		—		291,541		—		291,541
Short-term financial instruments		6,540,407		—		6,540,407		—		6,540,407
Equity securities		99,254		61,665		—		37,589		99,254
Debt securities		88,196		—		75,183		13,013		88,196
Other securities		669,687		—		270		669,417		669,687
Derivative hedging instruments(* 2)		9,601		—		9,601		—		9,601
Fair value through other comprehensive income
Equity securities		1,694,277		1,539,205		—		155,072		1,694,277
Financial assets measured at amortized cost(* 1)
Cash and cash equivalents		6,670,879		—		—		—		—
Trade accounts and notes receivable		9,155,853		—		—		—		—
Other receivables		2,750,036		—		—		—		—
Debt securities		295,201		—		—		—		—
Deposit instruments		4,423,327		—		—		—		—
	W	32,688,259		1,600,870		6,917,002		875,091		9,392,963
Financial liabilities
Fair value through profit or loss
Derivative liabilities	W	116,748		—		116,748		—		116,748
Borrowings		1,756,691		1,756,691		—		—		1,756,691
Other financial Liabilities		119,258		—		—		119,258		119,258
Derivative hedging instruments(* 2)		3,174		—		3,174		—		3,174
Financial liabilities measured at amortized cost(* 1)
Trade accounts and notes payable		5,782,825		—		—		—		—
Borrowings		24,213,689		—		24,310,166		—		24,310,166
Financial guarantee liabilities		12,972		—		—		—		—
Others		3,241,459		—		—		—		—
Other financial Liabilities		65,256		—		—		—		—
	W	35,312,072		1,756,691		24,430,088		119,258		26,306,037

(*1) Fair value of financial assets and liabilities measured at amortized cost except borrowings approximates their carrying amounts.

(*2) The Group applies hedge accounting which uses forward contracts as hedging instrument in order to hedge the 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 foreign exchange rate changes in foreign currency which influences cash flow from borrowings.

2) Finance income and costs by category of financial instrument for each of the three-month periods ended March 31, 2024 and 2023 are as follows:

① For the three-month period ended March 31, 2024

(in millions of Won)	Finance income and costs																	Other comprehensive income (loss)
	Interest income (expense)			Gain and loss on valuation		Gain and loss on foreign currency			Gain and loss on disposal			Others			Total
Financial assets at fair value through profit or loss	W	—			72,433		—			12,393			92			84,918			—
Derivative assets		—			154,550		—			(42,116	)		—			112,434			—
Financial assets at fair value through other comprehensive income		—			—		—			—			18,118			18,118			7,648
Financial assets measured at amortized cost		172,436			—		340,296			(17,429	)		(34	)		495,269			—
Financial liabilities at fair value through profit or loss		—			144,001		(32,435	)		—			—			111,566			—
Derivative liabilities		—			98,899		—			59,745			—			158,644			(407	)
Financial liabilities measured at amortized cost		(246,801	)		—		(552,891	)		—			(5,138	)		(804,830	)		—
	W	(74,365	)		469,883		(245,030	)		12,593			13,038			176,119			7,241

33

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

21. Financial Instruments (cont’d)

② For the three-month period ended March 31, 2023

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

(b) Financial risk management

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

22. Share Capital and Capital Surplus

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

(Share, in Won)	March 31, 2024		December 31, 2023
Authorized shares		200,000,000		200,000,000
Par value	W	5,000		5,000
Issued shares(* 1)		84,571,230		84,571,230
Shared capital(* 2)	W	482,403,125,000		482,403,125,000

(*1) As of March 31, 2024, total number of American depository receipts (ADRs) outstanding in overseas stock market amounts to 20,307,420 and such ADRs are equivalent to 5,076,855 shares of common stock.

(*2) As of March 31, 2024, the difference between the ending balance of common stock and the aggregate par value of issued common stock isW59,547 million due to retirement of 11,909,395 treasury stocks.

(b) Capital surplus as of March 31, 2024 and December 31, 2023 are as follows:

(in millions of Won)	March 31, 2024		December 31, 2023
Share premium	W	463,825		463,825
Gain on disposal of treasury shares		808,994		808,994
Other capital surplus		382,780		390,515
	W	1,655,599		1,663,334

34

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

23. Accumulated Other Comprehensive Income

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

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

24. Treasury Shares

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

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

35

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

25. Revenue

(a) Disaggregation of revenue

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

1) March 31, 2024

(in millions of Won)			Green Infrastructure
	Steel		Trading		Construction		Logistics and others		Green Materials and Energy		Others		Total
Types of revenue
Revenue from sales of goods	W	9,591,149		4,632,333		—		3,526		897,391		—		15,124,399
Revenue from services		235,862		699,574		25,258		83,633		1,877		3,890		1,050,094
Revenue from construction contract		—		—		1,813,979		—		7,092		—		1,821,071
Others		33,765		1,861		3,638		10,410		—		6,712		56,386
	W	9,860,776		5,333,768		1,842,875		97,569		906,360		10,602		18,051,950
Timing of revenue recognition
Revenue recognized at a point in time	W	9,624,914		4,634,194		12,079		13,936		897,391		6,712		15,189,226
Revenue recognized over time		235,862		699,574		1,830,796		83,633		8,969		3,890		2,862,724
	W	9,860,776		5,333,768		1,842,875		97,569		906,360		10,602		18,051,950

2) March 31, 2023

(in millions of Won)			Green Infrastructure
	Steel		Trading		Construction		Logistics and others		Green Materials and Energy		Others		Total
Types of revenue
Revenue from sales of goods	W	10,095,108		4,835,208		—		9,298		899,086		—		15,838,700
Revenue from services		194,662		1,061,987		38,476		51,326		1,615		6,515		1,354,581
Revenue from construction contract		—		—		1,923,329		—		15,451		—		1,938,780
Others		40,708		156,084		1,803		16,387		—		33,835		248,817
	W	10,330,478		6,053,279		1,963,608		77,011		916,152		40,350		19,380,878
Timing of revenue recognition
Revenue recognized at a point in time	W	10,135,816		4,991,291		9,471		25,718		899,086		33,835		16,095,217
Revenue recognized over time		194,662		1,061,988		1,954,137		51,293		17,066		6,515		3,285,661
	W	10,330,478		6,053,279		1,963,608		77,011		916,152		40,350		19,380,878

(b) Details of contract assets and liabilities from contracts with customers as of March 31, 2024 and December 31, 2023 are as follows:

(in millions of Won)	March 31, 2024		December 31, 2023
Receivables
Account receivables	W	9,945,840		9,155,853
Contract assets
Due from customers for contract work		1,778,412		1,901,966
Contract liabilities
Advance received		350,309		309,441
Due to customers for contract work		550,077		624,632
Unearned revenue		72,967		77,908

36

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

26. Contract under Input Method

(a) Details of outstanding contracts as of March 31, 2024 and December 31, 2023 are as follows:

(in millions of Won)	March 31, 2024						December 31, 2023
	Construction segment			Others			Construction segment			Others
Accumulated cost	W	26,139,685			383,750			28,663,723			272,321
Accumulated contract profit		1,982,653			41,138			2,499,061			36,954
Accumulated contract loss		(563,840	)		(18,123	)		(688,962	)		(8,916	)
Accumulated contract revenue		27,558,498			406,765			30,473,822			300,359

(b) Details of due from customers for contract work and due to customers for contract work as of March 31, 2024 and December 31, 2023 are as follows:

(in millions of Won)	March 31, 2024						December 31, 2023
	Construction segment			Others			Construction segment			Others
Due from customers for contract	W	1,764,601			28,258			1,873,681			42,557
Due to customers for contract work		(536,995	)		(13,082	)		(608,339	)		(16,293	)
	W	1,227,606			15,176			1,265,342			26,264

(c) Details of the provisions for construction loss as of March 31, 2024 and December 31, 2023 are as follows:

(in millions of Won)	March 31, 2024		December 31, 2023
Construction segment	W	41,880		48,825
Others		981		1,749
	W	42,861		50,574

(d) For the three-month period ended March 31, 2024, the total contract revenues and the estimated total contract 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 contract revenues		Changes in estimated total contract costs		Net income			Future income			Total
Construction segment	W	11,841		35,144		(23,066	)		(237	)		(23,303	)
Others		77,073		51,167		21,776			4,130			25,906
	W	88,914		86,311		(1,290	)		3,893			2,603

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

37

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

26. Contract under Input Method (cont’d)

(e) Uncertainty of estimates

1) Total contract revenues

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

2) Total contract costs

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

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

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

38

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

27. Selling and Administrative Expenses

(a) Other administrative expenses

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

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

(b) Selling expenses

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

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

39

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

28. Finance Income and Costs

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

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

(*1) Interest income calculated using the effective interest method for each of the three-month periods ended March 31, 2024 and 2023 amounts toW172,436 million andW102,222 million, respectively.

40

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

29. Other Non-Operating Income and Expenses

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

(in millions of Won)	March 31, 2024		March 31, 2023
Other non-operating income
Recovery of other bad debt expenses	W	2,322		324
Gain on disposals of investment in subsidiaries, associates and joint ventures(* 1)		18		184,656
Gain on disposals of property, plant and equipment		5,997		2,286
Gain on valuation of firm commitment		13,447		8,536
Reversal of other provisions		2,459		8,302
Premium income		296		7,281
Gain on bargain purchase(* 1)		—		32,965
Gain on disposals of emission rights		2,970		—
Others		29,920		32,736
	W	57,429		277,086
Other non-operating expenses
Other bad debt expenses	W	10,847		7,820
Loss on disposals of assets held for sale(* 2)		31,222		102,470
Loss on disposals of investments in subsidiaries, associates and joint ventures		20		4,384
Loss on disposals of property, plant and equipment		13,365		18,687
Impairment loss on property, plant and equipment		40,631		—
Impairment loss on intangible assets		11		—
Loss on valuation of firm commitment		1,309		8,878
Idle tangible asset expenses		1,466		6,367
Increase to provisions		3,079		1,271
Donations		23,133		28,807
Others		36,794		26,354
	W	161,877		205,038

(*1) During the three-month period ended March 31, 2023, investments in QSONE Co.,Ltd. which had been previously classified as investments in associates were reclassified as investments in subsidiaries. As a result, the Group recognizedW184,556 million of gain on disposals of investment in associates andW32,965 million of gain on bargain purchase.

(*2) During the three-month period ended March 31, 2023, the Group disposed of CSP - Compania Siderurgica do Pecem, which was classified as assets held for sale and recognizedW102,470 million of loss on disposals of assets held for sale.

41

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

30. Expenses by Nature

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

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

(*1) Includes depreciation of investment property.

31. Income Taxes

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

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

42

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

32. Earnings per Share

(a) Basic earnings per share for each of the three-month periods ended March 31, 2024 and 2023 are as follows:

(in Won, except per share information)	M arch 31, 2024		M arch 31, 2023
Profit attributable to controlling interest	W	540,715,276,945		726,419,322,644
Weighted-average number of common shares outstanding(* 1)		75,876,207		75,849,177
Basic earnings per share	W	7,126		9,577

(*1) The weighted-average number of common shares used to calculate basic earnings per share is as follows:

(shares)	M arch 31, 2024			M arch 31, 2023
Total number of common shares issued		84,571,230			84,571,230
Weighted-average number of treasury shares		(8,695,023	)		(8,722,053	)
Weighted-average number of common shares outstanding		75,876,207			75,849,177

(b) Diluted earnings per share for the three-month period ended March 31, 2024 are calculated as follows:

(in Won, except share information)	M arch 31, 2024
Profit attributable to controlling interest	W	540,715,276,945
Gain or loss from revaluation of and exchange rate on exchangeable bonds		(87,838,993,624	)
Adjusted weighted-average number of common shares outstanding(* 1)		79,189,781
Diluted earnings per share		5,719

(*1) The weighted-average number of common shares outstanding used to calculate diluted earnings per share is as follows:

(shares)	March 31, 2024
Weighted-average number of common shares outstanding		75,876,207
Weighted-average number of potential common shares		3,313,574
Adjusted weighted-average number of common shares		79,189,781

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

43

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

33. Related Party Transactions

(a) Material transactions between the Group and related parties for each of the three-month periods ended March 31, 2024 and 2023 are as follows:

1) For the three-month period ended March 31, 2024

(in millions of Won)	Sales and others(* 1)						Purchase and others
	Sales		Dividends		Others		Purchase of material		Others
Associates and joint ventures(* 1)
New Songdo International City
Development, LLC	W	57,107		—		—		—		94
SNNC		27,914		—		3		120,908		9
POSCO-SAMSUNG-SLOVAKIA PROCESSING CENTER		14,232		—		—		587		—
Gunggi Green Energy		7,796		—		—		—		1,416
POS-SeAH Steel Wire(Tianjin) CO., Ltd.		3,496		—		—		—		—
POS SeAH Steel Wire(Nantong) Co., Ltd.		13,642		—		—		1		—
South-East Asia Gas Pipeline Company Ltd.		—		15,015		—		—		—
POSCO MC MATERIALS		28,943		—		—		1,172		177
Samcheok Blue Power Co., Ltd.		74,533		2,471		169		—		—
Pocheon-Hwado Highway Corp.		44,812		—		—		—		—
POSCO(Guangdong) Automotive Steel Co., Ltd		67,017		—		—		77,103		—
HBIS-POSCO Automotive Steel Co., Ltd		14,036		—		—		5,657		—
Roy Hill Holdings Pty Ltd		—		114,870		—		439,363		—
Others		24,506		23,620		171		42,008		23,404
	W	378,034		155,976		343		686,799		25,100

(*1) As of March 31, 2024, the Group provides payment guarantees to related parties (see Note 34).

2) For the three-month period ended March 31, 2023

(in millions of Won)	Sales and others(* 1)						Purchase and others
	Sales		Dividends		Others		Purchase of material		Others
Associates and joint ventures(* 1)
New Songdo International City
Development, LLC	W	48,400		—		—		—		119
SNNC		45,184		—		3		151,036		871
POSCO-SAMSUNG-SLOVAKIA PROCESSING CENTER		12,939		—		—		9		—
Gunggi Green Energy		7,710		—		—		—		1,994
POS-SeAH Steel Wire(Tianjin) CO., Ltd.		5,246		—		—		—		—
POS SeAH Steel Wire(Nantong) Co., Ltd.		10,420		—		—		74		—
South-East Asia Gas Pipeline Company Ltd.		—		6,407		—		—		—
POSCO MC MATERIALS		23,753		—		—		2,220		73
Samcheok Blue Power Co., Ltd.		146,075		2,498		—		—		—
Pocheon-Hwado Highway Corp.		18,224		—		—		—		2
POSCO(Guangdong) Automotive Steel Co., Ltd		2,525		—		—		54,366		—
HBIS-POSCO Automotive Steel Co., Ltd		34,407		—		—		—		—
Roy Hill Holdings Pty Ltd		—		40,554		—		486,103		—
Others		27,593		29,767		4,569		66,857		24,458
	W	382,476		79,226		4,572		760,665		27,517

(*1) As of March 31, 2023, the Group provides payment guarantees to related parties (see Note 34).

44

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

33. Related Party Transactions (cont’d)

(b) The balances of receivables and payables arising from significant transactions between the Group and related parties as of March 31, 2024 and December 31, 2023 are as follows:

1) March 31, 2024

(in millions of Won)	Receivables(* 1)								Payables
	Trade accounts and notes receivable		Loans		Others		Total		Trade accounts and notes payable		Others		Total
Associates and joint ventures
New Songdo International City
Development, LLC	W	57,543		—		20,255		77,798		—		7,885		7,885
Gunggi Green Energy		11,471		—		8,450		19,921		—		594		594
POSCO(Guangdong) Automotive Steel Co., Ltd		57,257		—		4		57,261		54,399		—		54,399
AMCI(WA)PTYLTD		—		131,945		—		131,945		—		—		—
HBIS-POSCO Automotive Steel Co., Ltd		19,894		—		129		20,023		277		7,043		7,320
POS-SeAH Steel Wire(Tianjin) CO., Ltd.		4,203		—		—		4,203		—		—		—
Samcheok Blue Power Co., Ltd.		182,731		—		180		182,911		—		8,298		8,298
Nickel Mining Company SAS		—		65,382		385		65,767		—		358		358
POS-SeAH Steel Wire(Nantong) Co., Ltd.		15,929		—		—		15,929		—		—		—
POSCO MC MATERIALS		10,586		—		49		10,635		1,601		—		1,601
Pocheon-Hwado Highway Corp.		22,459		—		—		22,459		—		14,879		14,879
UITrans LRT Co., Ltd.		1,116		48,719		8,868		58,703		—		3,486		3,486
Roy Hill Holdings Pty Ltd		91,837		—		24,019		115,856		237,936		14		237,950
SNNC		12,957		—		83		13,040		16,838		1,529		18,367
FQM Australia Holdings Pty Ltd		—		267,131		—		267,131		—		—		—
Others		22,858		16,917		124,501		164,276		8,451		5,677		14,128
	W	510,841		530,094		186,923		1,227,858		319,502		49,763		369,265

(*1) As of March 31, 2024, the Group recognizes an allowance for doubtful account for receivables above amounting toW421,452 million.

2) December 31, 2023

(in millions of Won)	Receivables(* 1)								Payables
	Trade accounts and notes receivable		Loans		Others		Total		Trade accounts and notes payable		Others		Total
Associates and joint ventures
New Songdo International City
Development, LLC	W	15,260		—		1,497		16,757		—		39,089		39,089
Gunggi Green Energy		10,714		—		8,450		19,164		—		149		149
POSCO(Guangdong) Automotive Steel Co., Ltd		59,910		—		3		59,913		52,961		—		52,961
AMCI(WA)PTYLTD		—		110,540		—		110,540		—		—		—
HBIS-POSCO Automotive Steel Co., Ltd		21,912		—		103		22,015		1,805		8,837		10,642
POS-SeAH Steel Wire(Tianjin) CO., Ltd.		4,086		—		—		4,086		—		—		—
Samcheok Blue Power Co., Ltd.		162,759		—		213		162,972		—		9,605		9,605
Nickel Mining Company SAS		—		64,197		582		64,779		—		358		358
POS-SeAH Steel Wire(Nantong) Co., Ltd.		14,162		—		—		14,162		—		—		—
POSCO MC MATERIALS		13,835		—		82		13,917		1,156		—		1,156
Pocheon-Hwado Highway Corp.		33,944		—		—		33,944		—		7,712		7,712
UITrans LRT Co., Ltd.		—		46,335		8,395		54,730		—		2,398		2,398
Roy Hill Holdings Pty Ltd		88,217		—		22,002		110,219		263,440		—		263,440
SNNC		15,072		—		60		15,132		25,352		1,731		27,083
FQM Australia Holdings Pty Ltd		—		256,938		1,394		258,332		—		—		—
Others		17,499		16,589		124,849		158,937		4,837		5,599		10,436
	W	457,370		494,599		167,630		1,119,599		349,551		75,478		425,029

(*1) As of December 31, 2023, the Group recognizes an allowance for doubtful account for receivables above amounting toW404,872 million.

45

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

33. Related Party Transactions (cont’d)

(c) Major financial transactions between the Group and related parties for the three-month period ended March 31, 2024 and the year ended December 31, 2023 are as follows:

1) For the three-month period ended March 31, 2024

(in millions of Won)	Beginning		Lend		Collect			Others(* 1)		Ending
Associates and joint ventures
UITrans LRT Co., Ltd.	W	46,335		2,386		(2	)		—		48,719
PT. Tanggamus Electric Power		4,826		—		(644	)		109		4,291
Nickel Mining Company SAS		64,197		—		—			1,185		65,382
KRAKATAU POS-CHEM DONG-SUH CHEMICAL		2,579		—		—			115		2,694
Hyo-chun Co., Ltd.		2,382		—		—			—		2,382
AMCI (WA) PTY LTD		112,177		1,167		—			18,601		131,945
POS-AUSTEM WUHAN AUTOMOTIVE CO., LTD		5,158		—		—			229		5,386
FQM Australia Holdings Pty Ltd		256,938		—		—			10,193		267,131
POHANG E&E Co. , LTD		1,646		518		—			—		2,164
	W	496,238		4,071		(646	)		30,432		530,094

(*1) Includes adjustments of foreign currency translation differences and others.

2) For the year ended December 31, 2023

(in millions of Won)	Beginning		Lend		Collect			Others(* 1)		Ending
Associates and joint ventures
UITrans LRT Co., Ltd.	W	36,510		9,825		—			—		46,335
PT. Tanggamus Electric Power		5,014		—		(270	)		82		4,826
PT. Wampu Electric Power		3,988		—		(4,063	)		75		—
Nickel Mining Company SAS		63,024		—		(2,322	)		3,495		64,197
KRAKATAU POS-CHEM DONG-SUH CHEMICAL		3,802		—		(1,323	)		100		2,579
POS-SeAH Steel Wire (Thailand) Co., Ltd.		7,604		—		(7,828	)		224		—
AMCI (WA) PTY LTD		104,281		6,620		—			1,276		112,177
POS-AUSTEM WUHAN AUTOMOTIVE CO., LTD		10,138		—		(5,321	)		341		5,158
Hyo-chun Co., Ltd.		2,382		—		—			—		2,382
POS-AUSTEM Suzhou Automotive Co., Ltd		12,673		—		(13,219	)		546		—
FQM Australia Holdings Pty Ltd		247,868		2,637		—			6,433		256,938
POHANG E&E Co., LTD		100		1,546		—			—		1,646
POSCO(Guangdong) Automotive Steel Co., Ltd.		35,131		—		(35,131	)		—		—
	W	532,515		20,628		(69,477	)		12,572		496,238

(*1) Includes adjusted foreign currency translation differences and others.

(d) For each of the three-month periods ended March 31, 2024 and 2023, details of compensation to key management officers are as follows:

(in millions of Won)	March 31, 2024		March 31, 2023
Short-term benefits	W	43,273		54,840
Long-term benefits		2,953		2,558
Retirement benefits		8,761		13,800
	W	54,987		71,198

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

46

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

34. Commitments and Contingencies

(a) Details of guarantees

1) Contingent liabilities on outstanding guarantees provided by the Group as of March 31, 2024 are as follows:

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

(*1) The above contingencies include PF contracts, which provide credit enhancement through payment guarantee in relation to the SOC projects as of March 31, 2024.

(*2) The above contingencies include PF contracts, which guarantee the subcontractors’ intermediate payment loans in relation to the maintenance projects and others as of March 31, 2024.

47

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

34. Commitments and Contingencies (cont’d)

2) Details of credit enhancements by type of the Group’s PF business as of March 31, 2024 are as follows:

① Maintenance projects and others

a. Information about maturity of the loans related to PF credit enhancements such as debt acceptance and fund supplementation is as follow:

(in millions of Won)													Balance of the loans
Provider	Projects(*1)		Borrower		Type		Credit enhancement measures		Agreed amount		Executed amount		Total		Within 3 months		3~6 months		6 months~1 year		1 year~2 years		2 years~3 years		After 3 years
[The Company]
POSCO Eco & Challenge Co., Ltd.		Other projects		JB CLARK HILLS CORP		Main PF		Debt assumption	W	44,444		37,037		37,037		—		—		—		37,037		—		—
[Associates and joint ventures]
POSCO Eco & Challenge Co., Ltd.		Other projects		New Songdo International City Development, LLC		Mortgage loan		Debt assumption		676,000		520,000		465,617		446,017		—		19,600		—		—		—
[Others]
POSCO Eco & Challenge Co., Ltd.		Maintenance projects		Bangbae Shindonga Apartment Reconstruction and Maintenance Project Association, etc.		Main PF		Debt assumption		912,046		725,020		404,360		20,654		59,700		83,812		122,545		94,217		23,432
		Other projects		Mastern 123 Yeoju Samgyo PFV co., Ltd.		Main PF		Debt assumption		63,700		49,000		49,000		—		49,000		—		—		—		—
		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		30,000		1,100		—		—		—		1,100		—		—
		Other projects		Ecocity		Main PF		Debt assumption		53,300		41,000		39,700		—		—		—		—		39,700		—
POSCO DX		Other projects		Jeonnong schoo keeper co. and others		Main PF		Supplemental fundingagreement		1,122,320		123,309		456,273		—		—		—		—		—		456,273
										2,232,366		1,013,329		995,433		20,654		108,700		128,812		123,645		133,917		479,705
									W	2,952,810		1,570,366		1,498,087		466,671		108,700		148,412		160,682		133,917		479,705

(*1) The maintenance project mainly consists of reconstruction and condominium construction projects, and other 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 March 31, 2024 are as follows:

(in millions of Won)	Number of constructions		Contract amount		Contingency amount(* 1)(* 2)		Balance of loans
Maintenance projects		22	W	5,952,929		3,659,129		1,697,294
Other projects		1		110,340		35,000		34,300
		23	W	6,063,269		3,694,129		1,731,594

(*1) The overlapping amount with other credit enhancement measures such as the agreed debt acceptance upon loan origination amounts toW118,500 million for the maintenance projects.

(*2) In the case of joint subcontracting projects, the total joint guarantee amount of the project participants has 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 completion.

48

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

34. Commitments and Contingencies (cont’d)

c. Details of contingencies of claim for damages in the event of non-compliance with construction completion covenant as of March 31, 2024 are as follows:

(in millions of Won)	Number of constructions		Contract amount		Contingency amount(* 1)(* 2)		Balance of loans
Maintenance projects		1	W	309,260		76,000		20,000
Other projects		37		9,414,459		7,688,504		5,916,493
		38	W	9,723,719		7,764,504		5,936,493

(*1) The overlapping amount with other credit enhancement measures such as the agreed debt assumption upon loan origination amounts toW79,000 million for the maintenance projects.

(*2) In the case of joint subcontracting projects, the total joint guarantee amount of the project participants has 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 completion.

② SOC projects

Provider	Recipient	Credit enhancement measures	Number of constructions		Approved amount		Remaining balance after repayment
[Associates and joint ventures]
POSCO DX	UITrans LRT Co., Ltd(*1)	Providing funds and debt assumption		1	W	81,883		32,375
	Pocheon-Hwado Highway Corp.(*2)	Providing funds		1		24,923		22,323
POSCO Eco & Challenge Co., Ltd.	UITrans LRT Co., Ltd(*1)	Providing funds and debt assumption		1		205,051		163,591
	Pocheon-Hwado Highway Corp.(*2)	Providing funds		1		319,526		217,183
	POHANG E&E Co., LTD(*3)	Providing funds and supplemental funding agreement		1		71,930		49,328
	Pureun Tongyeong Enviro Co., Ltd.(*3)	Providing funds		1		22,714		11,991
	Pure Gimpo.Co.,Ltd(*3)	Providing funds		1		51,565		24,687
	Clean Iksan Co.,Ltd(*3)	Providing funds		1		44,054		‘23,652
				11		821,646		545,130
[Others]
POSCO DX	Western Inland highway CO.,LTD.	Providing funds		1		47,348		18,748
	Busan Sanseong Tunnel	Refinancing		1		7,621		13,792
POSCO Eco & Challenge Co., Ltd.	Western Seoul highway CO.,LTD.and others	Supplemental funding agreement		11		62,720		30,047
	Western Inland highway CO.,LTD.and others	Providing funds		44		2,884,654		1,261,140
	Pohang Youngil Bay New Port	Debt assumption		1		2,250		1,602
	Busan Sanseong Tunnel	Refinancing		1		35,296		26,750
				59		3,039,889		1,352,079
				70	W	3,861,535		1,897,209

(*1) The Group provides a funding commitment ofW82,518 million (including other shares:W290,068 million) equivalent to the Group’s share of the loan balance for the private investment project.

(*2) The Group provides a funding commitment ofW217,183 million (including other shares:W423,524 million) equivalent to the Group’s share of the loan balance for the private investment project.

(*3) The Group provides a funding commitment ofW105,322 million (including other shares:W192,785 million) equivalent to the Group’s share of the loan balance for the private investment project.

49

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

34. Commitments and Contingencies (cont’d)

3) Other guarantees

① As of March 31, 2024, the payment guarantees that the Group provides to clients, such as contract performance guarantees, installment guarantees, and defect guarantees, by subscribing to insurance policies with guarantee insurance companies or issuing guarantee certificates are as follows:

(in millions of Won)
Provider of credit enhancement	Recipient of credit enhancement	Types of guarantees	Agreed amount		Executed amount		Guarantor
[Subsidiaries]
POSCO Eco & Challenge Co., Ltd.	Ventanas Philippines Construction Inc	Guarantee on performance for contracts and others	W	10,514		10,514	TRADE INSURANCE CORPORATION and others
POSCO WIDE Co., Ltd	POSCO	Letter of credit		30		30	Seoul Guarantee Insurance
	POSCO Eco & Challenge Co., Ltd.	Guarantee on performance and others		281		281	Seoul Guarantee Insurance
	POSCO DX	Guarantee on performance		53		53	Seoul Guarantee Insurance
	POSCO INTERNATIONAL Corporation	Guarantee on performance		313		313	Seoul Guarantee Insurance
				11,191		11,191
[Associates and joint ventures]
POSCO Eco & Challenge Co., Ltd.	PT.Tanggamus Electric Power	Letter of credit		2,732		2,732	Hana Bank
	PT. Wampu Electric Power	Letter of credit		2,963		2,963	Hana Bank
	Pocheon-Hwado Highway Corp.	Guarantee on performance for projects		23,315		23,315	Construction Guarantee Cooperative
				29,010		29,010
[Others]
POSCO Eco & Challenge Co., Ltd.	DAEWOO ENGINEERING & CONSTRUCTION Co., Ltd and others	Guarantee on performance for construction and others		7,245,196		7,245,161	Construction Guarantee Cooperative and others
POSCO WIDE Co., Ltd	Pureun Paju Co., Ltd. and others	Guarantee on performance and others		16,172		16,172	Seoul Guarantee Insurance
POSCO M-TECH	DONGKUK STEEL MILL CO.,LTD.	Guarantee on performance		1,309		1,309	Seoul Guarantee Insurance
Shinan Green Energy Co.,LTD.	Sinan-gun Jeollanam-do	Guarantee on performance		2,932		2,932	Seoul Guarantee Insurance
POSCO DX	Western Inland highway CO.,LTD. and others	Supplemental funding agreement and others		1,685		1,685	Kookmin Bank and others
				7,267,294		7,267,259
			W	7,307,495		7,307,460

② As of March 31, 2024, the primary payment guarantees and other guarantees that the Group is provided from 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	7,182,415		7,182,415
Engineering guarantee insurance	Guarantee on performance for EPC contracts and others		890,187		523,334
Seoul Guarantee Insurance	Construction performance guarantee and others		562,772		562,772
Korea Housing & Urban Guarantee Corporation	Housing Guarantee and others		5,393,054		5,387,804
Deutsche Seoul	Guarantee on performance		16,138		16,138
Woori Bank and others	Foreign currency guarantee		2,045,543		799,607
Korea software financial cooperative	Guarantee on performance for contracts		120,816		120,816
Seoul Guarantee Insurance	Guarantee on performance for contracts		62,476		62,476
Construction Guarantee Cooperative	Guarantee on performance for contracts		5,735		5,735
		W	16,279,136		14,661,097

50

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

34. Commitments and Contingencies (cont’d)

(b) Other commitments

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

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

51

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

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

34. Commitments and Contingencies (cont’d)

(c) Litigation in progress

The Group is involved in 323 lawsuits aggregating toW1,066.8 billion as defendant as of March 31, 2024, which arise from the ordinary course of business such as claim for confirmation of employee status. The Group has recognized provisions amounting toW37.9 billion for 55 lawsuits based on its reliable estimate of outflow of resources. However, the Group has not recognized any provisions for the other lawsuits and claim since the Group believes that it does not have a present obligation as of March 31, 2024(d) Other Contingencies

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

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

52

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

35. Cash Flows from Operating Activities

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

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

36. Operating Segments

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

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

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

Operating segments		Main Business
Steel		Manufacture and sales of steel products
Green infrastructure	Trading	Supply and purchase transactions between domestic and foreign companies, power generation, and resource development
	Construction	Design, production and construction of steel mills and their facilities, commercial and residential facilities, etc.
	Logistics and others	Logistics, network and system integration business
Green Materials and energy		EV battery materials such as lithium, nickel, negative/cathode materials, and hydrogen business
Others		POSCO HOLDINGS. INC., Controlling company and Investment business

(b) The segment profit or loss does not reflect the consolidation adjustments allocated to each entity and is determined in the same way as the consolidated net income determined by KIFRS. Segment assets and liabilities are determined based on separate financial statements. There are various transactions of transactions between reporting segments, including disposal of property, plant and equipment and provision of construction services.

(c) Information about reportable segments as of and for each of the three-month periods ended March 31, 2024 and 2023 are as follows:

1) For the three-month period ended March 31, 2024

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

53

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

March 31, 2024 and 2023 (Unaudited)

2) For the three-month period ended March 31, 2023

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

36. Operating Segments (cont’d)

(d) Reconciliations of total segment revenues, profit or loss, assets and liabilities, and other significant items to their respective consolidated financial statement line items are as follows:

(in millions of Won)	March 31, 2024			March 31, 2023
Total profit for reportable segments	W	1,459,765			1,193,614
Corporate fair value adjustments		(17,599	)		200,800
Elimination of inter-segment profit		(834,351	)		(554,109	)
Income tax expense		124,696			160,952
Profit before income tax expense	W	732,511			1,001,257

37. Events after the reporting period

Pursuant to the resolution of the Board of Directors on May 14, 2024, the Group decided to pay interim cash dividends ofW2,500 per common share (total dividend:W189.7 billion).

54

POSCO HOLDINGS INC.

Interim condensed separate financial statements

for the three-month period ended March 31, 2024

with the independent auditor’s review report

Table of Contents

Report on review of interim condensed separate financial statements

	Page
Interim condensed separate financial statements
Interim condensed separate statements of financial position		1
Interim condensed separate statements of comprehensive income		3
Interim condensed separate statements of changes in equity		4
Interim condensed separate statements of cash flows		5
Notes to the Interim condensed separate financial statements		7

	Ernst & Young Han Young
	2-3F, 7-8F, Taeyoung Building, 111, Yeouigongwon-ro,
	Yeongdeungpo-gu, Seoul 07241 Korea
	Tel: +82 2 3787 6600 Fax: +82 2 783 5890 ey.com/kr

Report on review of interim condensed separate financial statements

(English translation of a report originally issued in Korean)

The Stockholders and Board of Directors

POSCO HOLDINGS INC.

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

Management’s responsibility for the interim condensed separate financial statements

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

Auditor’s responsibility

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

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

Conclusion

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

7

A member firm of Ernst & Young Global Limited

Other matters

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

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

May 16, 2024

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

A member firm of Ernst & Young Global Limited

POSCO HOLDINGS INC.

Interim condensed separate financial statements

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

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

Kisub Jung

Representative Director and President

POSCO HOLDINGS INC.

POSCO HOLDINGS INC.

Interim condensed separate interim statements of financial position

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

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

(continued)

1

POSCO HOLDINGS INC.

Condensed separate interim statements of financial position, continued

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

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

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

2

POSCO HOLDINGS INC.

Condensed separate interim statements of comprehensive income

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

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

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

.

3

POSCO HOLDINGS INC.

Interim condensed separate interim statements of changes in equity

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

(Unaudited)

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

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

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

4

POSCO HOLDINGS INC.

Interim condensed separate statements of cash flows

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

(Unaudited)

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

(continued)

5

POSCO HOLDINGS INC.

Interim condensed separate statements of cash flows, continued

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

(Unaudited)

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

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

6

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements

March 31, 2024 and 2023

(Unaudited)

1. Reporting Entity

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

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

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

2. Basis of preparation

Statement of compliance

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

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

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

7

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

March 31, 2024 and 2023

(Unaudited)

2. Basis of preparation (cont’d)

Use of 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.

8

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

March 31, 2024 and 2023

(Unaudited)

2. Basis of preparation (cont’d)

•  Level 1 – unadjusted quoted prices in active markets for identical assets or liabilities.

•  Level 2 – inputs other than quoted prices included in Level 1 that are observable for the assets or liabilities, either directly or indirectly.

•  Level 3 – inputs for the assets or liabilities that are not based on observable market data.

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 Policy Information

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

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

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

9

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

March 31, 2024 and 2023

(Unaudited)

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

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

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

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

• that only if an embedded derivative in a convertible liability is itself an equity instrument would the terms of a liability not impact its classification.

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

10

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

March 31, 2024 and 2023

(Unaudited)

4. Trade Accounts and Notes Receivable

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

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

5. Other Receivables

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

(in millions of Won)	March 31, 2024			December 31, 2023
Current
Other accounts receivable	W	35,639			51,530
Others(* 1)		23,328			21,193
Less: Allowance for doubtful accounts(* 1)		(4,075	)		(3,902	)
	W	54,892			68,821
Non-current
Long-term loans(* 1)	W	227,027			217,349
Others		8,975			6,955
Less: Allowance for doubtful accounts(* 1)		(227,027	)		(217,349	)
	W	8,975			6,955

(*1) The Company assessed the recoverability of other receivables to FQM Australia Pty Ltd, an associate, and recognized an allowance for doubtful accounts for such other receivables from the entity during the year ended December 31, 2023.

11

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

March 31, 2024 and 2023

(Unaudited)

6. Other Financial Assets

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

(in millions of Won)	March 31, 2024		December 31, 2023
Current
Deposit instruments	W	1,650,000		1,750,000
Short-term financial instruments		2,027,897		2,190,743
	W	3,677,897		3,940,743
Non-current
Equity securities	W	699,958		926,752
Other securities		207,991		204,320
Deposit instruments		2		2
	W	907,951		1,131,074

(b) Equity securities as of March 31, 2024 and December 31, 2023 are as follows:

(in millions of Won)	March 31, 2024													December 31, 2023
	Number of shares		Ownership (%)		Acquisition cost		Fair value		Net changes in fair value of equity securities			Book value		Book value
Marketable equity securities
Nippon Steel Corporation		15,698,500		1.65	W	473,962		512,181		38,219			512,181		462,775
KB Financial group Inc.		—		—		—		—		—			—		209,016
CSN Mineracao S.A.		102,186,675		1.86		206,265		145,433		(60,832	)		145,433		212,617
						680,227		657,614		(22,613	)		657,614		884,408
Non-marketable equity securities
POSCO PLANTEC Co., Ltd.		18,337,912		10.99		19,437		40,362		20,925			40,362		40,362
Intellectual Discovery Co., Ltd		200,000		6.00		5,000		1,350		(3,650	)		1,350		1,350
Pos-hyundai Steel Manufacturing India Private Limited		1,055,496		6.00		612		612		—			612		612
S&M MEDIA Co., Ltd		2,000		2.67		20		20		—			20		20
XG Sciences		300,000		5.06		2,724		—		(2,724	)		—		—
						27,793		42,344		14,551			42,344		42,344
					W	708,020		699,958		(8,062	)		699,958		926,752

12

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

March 31, 2024 and 2023

(Unaudited)

7. Investments in Subsidiaries, Associates and Joint ventures

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

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

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

(in millions of Won)				March 31, 2024				December 31, 2023
	Country		Principal operations	Ownership (%)		Book value		Book value
[Domestic]
POSCO		Korea	Steel, rolled products, and plates manufacturing and sales		100.00	W	29,701,054		29,698,113
POSCO INTERNATIONAL Corporation		Korea	Trading and natural resources exploration		70.71		3,740,020		3,740,020
POSCO Eco & Challenge Co., Ltd.		Korea	Engineering and construction		52.80		1,013,718		1,013,453
POSCO Venture Capital Co., Ltd.		Korea	Investment in venture companies		100.00		115,931		115,931
POSCO FUTURE M CO.,LTD.		Korea	Refractory and anode/cathode material manufacturing and sales		59.72		895,687		895,687
POSCO WIDE Co., Ltd.		Korea	Business facility maintenance		100.00		308,843		308,843
POSCO DX		Korea	Computer hardware and software distribution		65.38		70,990		70,990
Busan E&E Co., Ltd.		Korea	Municipal solid waste fuel and power generation		70.00		30,148		30,148
POSOCO-Pilbara LITHIUM SOLUTION Co., Ltd.		Korea	Lithium manufacturing and sales		82.00		314,940		314,940
POSCO LITHIUM SOLUTION		Korea	Lithium manufacturing and sales		100.00		287,550		287,550
QSONE Co.,Ltd.		Korea	Real estate rental and facility management		100.00		238,478		238,478
POSCO CNGR Nickel Solution(* 1)		Korea	Nickel refining		60.00		49,380		—
Others (11 companies)							452,877		442,847
							37,219,616		37,157,000
[Foreign]
POSCO WA PTY LTD.		Australia	Iron ore sales and mine development		100.00		646,574		646,574
POSCO Maharashtra Steel Private Limited		India	Steel manufacturing and sales		100.00		722,514		722,514
POSCO Canada Ltd.		Canada	Coal sales		100.00		560,879		560,879
POSCO AUSTRALIA PTY LTD.		Australia	Iron ore sales and mine development		100.00		330,623		330,623
POSCO (Zhangjiagang) Stainless Steel Co.,Ltd.		China	Stainless steel manufacturing and sales		58.60		283,792		283,792
POSCO-China Holding Corp.		China	Holding company		100.00		593,816		593,816
POSCO America Corporation		USA	Researching and consulting		99.45		192,136		192,136
POSCO VST CO., LTD.		Vietnam	Stainless steel manufacturing and sales		95.65		144,552		144,552
POSCO Asia Co., Ltd.		Hong 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.(* 2)		Argentina	Mineral exploration, manufacturing and sales		100.00		1,364,525		1,150,087
Others (18 companies)							301,014		301,014
							5,576,959		5,362,521
						W	42,796,575		42,519,521

(*1) During the three-month period ended March 31, 2024, the Company acquired 60% of shares of POSCO CNGR Nickel Solution Co., Ltd. atW49,380 million and classified as acquired equity interests as investments in subsidiaries.

(*2) During the three-month period ended March 31, 2024, the Company acquiredW214,438 million of additional investment in subsidiaries by participating in POSCO Argentina S.A.U.‘s capital increase to invest in an Argentine brine lithium commercialization plant.

13

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

March 31, 2024 and 2023

(Unaudited)

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

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

(in millions of Won)			March 31, 2024			December 31, 2023
	Country	Principal operations	Ownership (%)	Book value		Book value
[Domestic]
SNNC	Korea	STS material manufacturing and sales	49.00	W	100,631		100,631
POSCO JK SOLID SOLUTION CO., LTD.	Korea	Material manufacturing for rechargeable battery	40.00		26,025		26,025
Others (5 companies)					12,111		12,111
					138,767		138,767
[Foreign]
Nickel Mining Company SAS	New Caledonia	Raw material manufacturing and sales	49.00		189,197		189,197
9404-5515 Quebec Inc.(*1)	Canada	Investments	12.61		156,194		156,194
Others (4 companies)					36,222		36,222
					381,613		381,613
				W	520,380		520,380

(*1) As of March 31, 2024, the entities are classified as associates since the Company has significant influence over the investees although the Company’s percentage of ownership is less than 20%, considering the structure of the entities’ Board of Directors and others.

(d) Details of joint ventures and carrying amounts as of March 31, 2024 and December 31, 2023 are as follows:

(in millions of Won)				March 31, 2024				December 31, 2023
	Country		Principal operations	Ownership (%)		Book value		Book value
Roy Hill Holdings Pty Ltd(*1)		Australia	Natural resources exploration		10.00	W	1,225,464		1,225,464
POSCO-NPS Niobium LLC		USA	Foreign investments in mining		50.00		364,609		364,609
KOBRASCO		Brazil	Steel materials manufacturing and sales		50.00		98,962		98,962
HBIS-POSCO Automotive Steel Co., Ltd		China	Steel manufacturing and sales		50.00		235,207		235,207
BX STEEL POSCO Cold Rolled Sheet Co., Ltd.		China	Steel manufacturing and sales		25.00		63,866		63,866
PT NICOLE METAL INDUSTRY		Indonesia	Nickel Smelting		49.00		293,647		293,361
Hydrogen Duqm LLC(*2)		Oman	Green Hydrogen/Ammonia product business development		44.80		2,342		—
						W	2,284,097		2,281,469

(*1) As of March 31, 2024 and December 31, 2023, the investments in joint ventures amounting toW1,225,464 million were provided as collateral in relation to revolving loan of Roy Hill Holdings Pty Ltd.

(*2) During the three-month period ended March 31, 2024, the Company acquired 44.8% of shares in Hydrogen Duqm LLC, forW2,342 million and classified them as an investment in joint ventures.

14

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

March 31, 2024 and 2023

(Unaudited)

8. Investment Property

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

(a) For the three-month period ended March 31, 2024

(in millions of Won)	Beginning		Acquisition		Depreciation(*1)			Transfer(*2)		Ending
Land	W	193,446		1,200		—			50		194,696
Buildings		101,229		—		(1,812	)		78		99,495
Structures		15,225		—		(206	)		8		15,027
	W	309,900		1,200		(2,018	)		136		309,218

(*1) The useful life and depreciation method of investment property are identical to those of property, plant and equipment.

(*2) Mainly includes assets transferred from property, plant and equipment in relation to changes in rental ratio and the purpose of use.

(b) For the year ended December 31, 2023

(in millions of Won)	Beginning		Acquisition		Depreciation(*1)			Transfer(*2)		Ending
Land	W	131,069		54,891		—			7,486		193,446
Buildings		83,528		—		(7,078	)		24,779		101,229
Structures		6,102		—		(610	)		9,733		15,225
	W	220,699		54,891		(7,688	)		41,998		309,900

(*1) The useful life and depreciation method of investment property are identical to those of property, plant and equipment.

(*2) Mainly includes assets transferred from property, plant and equipment in relation to changes in rental ratio and the purpose of use.

15

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

March 31, 2024 and 2023

(Unaudited)

9. Property, Plant and Equipment

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

(a) For the three-month period ended March 31, 2024

(in millions of Won)	Beginning		Acquisitions		Depreciation			Others(* 1)			Ending
Land	W	50,197		4		—			(50	)		50,151
Buildings		29,539		37		(476	)		(78	)		29,022
Structures		7,748		1		(101	)		(8	)		7,640
Machinery and equipment		27,549		277		(512	)		—			27,314
Vehicles		63		—		(5	)		—			58
Furniture and fixtures		13,485		124		(294	)		—			13,315
Construction-in-progress		69,206		—		—			—			69,206
	W	197,787		443		(1,388	)		(136	)		196,706

(*1) Represents assets transferred from 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 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.

(*2) Represents assets transferred from construction-in-progress to other property, plant and equipment, assets transferred from investment properties.

16

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

March 31, 2024 and 2023

(Unaudited)

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

(c) Information on lease agreements for which the Company is a lessee is as follows:

1) Right-of-use assets

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

2) Amount recognized in profit or loss

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

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

10. Intangible Assets

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

(a) For the three-month period ended March 31, 2024

(in millions of Won)	Beginning		Acquisitions		Amortization			Others(* 2)			Ending
Intellectual property rights	W	576		—		(40	)		65			601
Membership(* 1)		11,618		—		—			—			11,618
Development expense		2,905		—		(301	)		1,436			4,040
Construction-in-progress		3,565		808		—			(1,519	)		2,854
Other intangible assets		677		—		(58	)		—			619
	W	19,341		808		(399	)		(18	)		19,732

(*1) Estimated useful life of membership is indefinite.

(*2) Represents assets transferred from construction-in-progress to other intangible assets, assets transferred from property, plant and equipment and others.

17

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

March 31, 2024 and 2023

(Unaudited)

10. Intangible Assets (cont’d)

(b) For the year ended December 31, 2023

(in millions of Won)	Beginning		Acquisitions		Amortization			Others(* 2)			Ending
Intellectual property rights	W	504		—		(151	)		223			576
Membership(* 1)		11,618		—		—			—			11,618
Development expense		1,400		—		(865	)		2,370			2,905
Construction-in-progress		1,476		4,740		—			(2,651	)		3,565
Other intangible assets		904		4		(231	)		—			677
	W	15,902		4,744		(1,247	)		(58	)		19,341

(*1) Estimated useful life of membership is indefinite.

(*2) Represents assets transferred from construction-in-progress to intangible assets and assets transferred from property, plant and equipment, and others.

11. Other Assets

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

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

12. Borrowings

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

(in millions of Won)	March 31, 2024		December 31, 2023
Current
Exchangeable bonds	W	1,642,466		1,756,691
Non-current
Long-term borrowings	W	1,374		1,316

18

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

March 31, 2024 and 2023

(Unaudited)

12. Borrowings (cont’d)

(b) Current portion of debentures as of March 31, 2024 and December 31, 2023 are as follows:

(in millions of Won)	Lenders	Issuance date		Maturity date		Annual interest rate (% )		March 31, 2024		December 31, 2023
Exchangeable bonds(* 1)	Foreign currency exchangeable bonds		2021.09.01.		2026.09.01.		—		1,642,466		1,756,691

(*1) The issuance conditions of the exchangeable bonds issued by the Company are as follows. As of December 31, 2023, exchangeable bonds are reclassified as current liabilities because the bondholders’ put option for redemption has become exercisable within 12 months.

	Foreign currency exchangeable bonds
Type of bond	Exchangeable bonds
Aggregate principal amount	EUR 1,065,900,000
Interest rate	- Coupon rate : -
	- Yield to maturity : (0.78%)
Maturity date	September 1, 2026
Redemption	- Redemption at maturity : Outstanding bond principal, which is not repaid early or which call option is not excercised on, is repaid at maturity as a lump sum
	- Prepayment : The issuer has call option and the bondholders have put option
Exchange rate	100%
Exchange price (Won/share)	446,504(*)
Underlying shares	Registered common shares(treasury shares)
Exchange period	From October 12, 2021 to August 22, 2026
Adjustments for exchange price	Adjusting the exchange price according to the terms and conditions of the bond in the events of reason for adjusting the exchange price such as, bonus issue, share split, share consolidation, change of share type, issuance of 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 the maturity of bonds
	- When the outstanding balance of outstanding bonds is less than 10% of the total issuance (Clean-Up Call)
	- Where additional reasons for tax burden arise due to the amendment of relevant laws and regulations, etc

(*) The exchange price has changed due to cash dividends paid during the three-month period ended March 31, 2024.

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

(c) Long-term borrowings and others excluding current portion, as of March 31, 2024 and December 31, 2023 are as follows:

(in millions of Won)	Lenders	Issuance date		Maturity date		Annual interest rate (% )	March 31, 2024		December 31, 2023
Foreign borrowings	KOREA ENERGY AGENCY		2011.12.27.		2026.12.26.	3 year Government bond	W	1,374		1,316

19

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

March 31, 2024 and 2023

(Unaudited)

13. Other Payables

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

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

14. Other Financial Liabilities

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

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

20

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

March 31, 2024 and 2023

(Unaudited)

15. Provisions

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

(in millions of Won)	March 31, 2024				December 31, 2023
	Current		Non-current		Current		Non-current
Provision for bonus payments(* 1)	W	2,106		—		6,055		—
Provision for restoration(* 2)		6,416		5,059		8,928		2,634
	W	8,522		5,059		14,983		2,634

(*1) Represents the provision for bonuses limited to 100% of annual salaries for executives.

(*2) Due to contamination of land near the Company’s magnesium smelting plant located in Gangneung city, the Company recognized present values of estimated costs for recovery as provisions for restoration as of March 31, 2024. In order to determine the estimated costs, the Company has assumed that it would use all of technologies and materials available for now to recover the land. In addition, the Company has applied discount rates of 3.77% to assess present value of these costs.

(b) Changes in provisions for the three-month period ended March 31, 2024 and the year ended December 31, 2023 are as follows:

1) For the three-month period ended March 31, 2024

(in millions of Won)	Beginning		Increase		Reversal			Utilization			Ending
Provision for bonus payments	W	6,055		2,106		—			(6,055	)		2,106
Provision for restoration		11,562		—		(54	)		(33	)		11,475
	W	17,617		2,106		(54	)		(6,088	)		13,581

2) For the year ended December 31, 2023

(in millions of Won)	Beginning		Increase		Reversal			Utilization			Ending
Provision for bonus payments	W	5,667		10,154		—			(9,766	)		6,055
Provision for restoration		15,865		853		—			(5,156	)		11,562
Others		34,724		—		(8,158	)		(26,566	)		—
	W	56,256		11,007		(8,158	)		(41,488	)		17,617

21

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

March 31, 2024 and 2023

(Unaudited)

16. Employee Benefits

(a) Defined contribution plans

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

(in millions of Won)	March 31, 2024		March 31, 2023
Expense related to post-employment benefit plans under defined contribution plans	W	43		70

(b) Defined benefit plans

1) The amounts recognized in relation to net defined benefit liabilities in the statements of financial position as of March 31, 2024 and December 31, 2023 are as follows:

(in millions of Won)	March 31, 2024			December 31, 2023
Present value of funded obligations	W	40,530			44,276
Fair value of plan assets		(38,517	)		(39,993	)
Net defined benefit liabilities	W	2,013			4,283

2) The amounts recognized in the statements of comprehensive income for each of the three-month periods ended March 31, 2024 and 2023 are as follows:

(in millions of Won)	March 31, 2024			March 31, 2023
Current service costs	W	1,793			2,646
Net interest costs		(85	)		(105	)
	W	1,708			2,541

17. Other Liabilities

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

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

22

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

March 31, 2024 and 2023

(Unaudited)

18. Financial Instruments

(a) Classification and fair value of financial instruments

1) The carrying amount and the fair values of financial assets and financial liabilities by fair value hierarchy as of March 31, 2024 and December 31, 2023 are as follows:

① March 31, 2024

(in millions of Won)			Fair value
	Book value		Level 1		Level 2		Level 3		Total
Financial assets
Fair value through profit or loss
Short term financial instruments	W	2,027,897		—		2,027,897		—		2,027,897
Other securities		207,991		—		—		207,991		207,991
Fair value through other comprehensive income
Equity securities		699,958		657,614		—		42,344		699,958
Financial assets measured at amortized cost(*1)
Cash and cash equivalents		630,785		—		—		—		—
Trade accounts and notes receivable		851,414		—		—		—		—
Other receivables		59,753		—		—		—		—
Deposit instruments		1,650,002		—		—		—		—
	W	6,127,800		657,614		2,027,897		250,335		2,935,846
Financial liabilities
Fair value through profit or loss
Borrowings	W	1,642,466		1,642,466		—		—		1,642,466
Financial liabilities measured at amortized cost(*1)
Borrowings		1,374		—		1,374		—		1,374
Financial guarantee liabilities		10,374		—		—		—		—
Others		246,751		—		—		—		—
	W	1,900,965		1,642,466		1,374		—		1,643,840

(*1) Fair value of financial assets and liabilities measured at amortized cost approximates their carrying amounts.

② December 31, 2023

(in millions of Won)			Fair value
	Book value		Level 1		Level 2		Level 3		Total
Financial assets
Fair value through profit or loss
Short term financial instruments	W	2,190,743		—		2,190,743		—		2,190,743
Other securities		204,320		—		—		204,320		204,320
Fair value through other comprehensive income
Equity securities		926,752		884,408		—		42,344		926,752
Financial assets measured at amortized cost(*1)
Cash and cash equivalents		376,914		—		—		—		—
Trade accounts and notes receivable		100,323		—		—		—		—
Other receivables		64,393		—		—		—		—
Deposit instruments		1,750,002		—		—		—		—
	W	5,613,447		884,408		2,190,743		246,664		3,321,815
Financial liabilities
Fair value through profit or loss
Borrowings	W	1,756,691		1,756,691		—		—		1,756,691
Financial liabilities measured at amortized cost(*1)
Borrowings		1,316		—		1,316		—		1,316
Financial guarantee liabilities		8,539		—		—		—		—
Others		62,252		—		—		—		—
	W	1,828,798		1,756,691		1,316		—		1,758,007

(*1) Fair value of financial assets and liabilities measured at amortized cost approximates their carrying amounts.

23

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

March 31, 2024 and 2023

(Unaudited)

18. Financial Instruments (cont’d)

2) Financial liabilities were recognized in connection with financial guarantee contracts as of March 31, 2024. Details of the amount of guarantees provided are as follows:

(in millions of Won)		Guarantee limit					Guarantee amount
Guarantee beneficiary	Financial institution	Foreign currency			Won equivalent		Foreign currency		Won equivalent
Subsidiaries
POSCO Asia Co., Ltd.	Credit Agricole		USD	50,000,000		67,340		—		—
	ING		USD	55,000,000		74,074		—		—
	Mizuho		USD	50,000,000		67,340		—		—
	Shinhan		USD	50,000,000		67,340		—		—
POSCO Argentina S.A.U.	BNP		USD	20,000,000		26,935		18,529,994		24,956
	CITI		USD	97,975,000		131,953		90,773,815		122,254
	Credit Agricole		USD	97,975,000		131,953		90,773,815		122,254
	HSBC		USD	97,975,000		131,953		90,773,815		122,254
	JPM		USD	97,975,000		131,953		90,773,815		122,254
Associates
Nickel Mining Company SAS	SMBC		EUR	46,000,000		66,835		46,000,000		66,835
			USD	616,900,000		830,841		381,625,254		513,972
			EUR	46,000,000		66,835		46,000,000		66,835

3) Finance income and costs by category of financial instrument for each of the three-month periods ended March 31, 2024 and 2023 are as follows:

① For the three-month period ended March 31, 2024

(in millions of Won)	Finance income and costs
	Interest income (expense)			Gain and loss on foreign currency			Gain and loss on disposal			Gain and loss on valuation		Others		Total			Other comprehensive loss
Financial assets at fair value through profit or loss	W	—			2,870			11,003			26,065		—		39,938			—
Financial assets at fair value through other comprehensive income		—			—			(8,219	)		—		—		(8,219	)		(18,721	)
Financial assets measured at amortized cost		20,456			1,694			—			—		—		22,150			—
Financial liabilities at fair value through profit or loss		—			(29,776	)		—			144,001		—		114,225			—
Financial liabilities measured at amortized cost		(291	)		(433	)		—			—		476		(248	)		—
	W	20,165			(25,645	)		2,784			170,066		476		167,846			(18,721	)

② For the three-month period ended March 31, 2023

(in millions of Won)	Finance income and costs
	Interest income (expense)		Gain and loss on foreign currency			Gain and loss on disposal		Gain and loss on valuation			Others		Total			Other comprehensive income
Financial assets at fair value through profit or loss	W	—		1,825			27,514		100,226			—		129,565			—
Financial assets at fair value through other comprehensive income		—		—			—		—			—		—			122,150
Financial assets measured at amortized cost		16,169		11,787			—		—			—		27,956			—
Financial liabilities at fair value through profit or loss		—		(74,480	)		—		(72,632	)		—		(147,112	)		—
Financial liabilities measured at amortized cost		—		(10	)		—		—			1,497		1,487			—
	W	16,169		(60,878	)		27,514		27,594			1,497		11,896			122,150

24

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

March 31, 2024 and 2023

(Unaudited)

19. Share Capital and Capital Surplus

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

(in Won, except share information)	March 31, 2024		December 31, 2023
Authorized shares		200,000,000		200,000,000
Par value	W	5,000		5,000
Issued shares(* 1)		84,571,230		84,571,230
Shared capital(* 2)	W	482,403,125,000		482,403,125,000

(*1) As of March 31, 2024, total number of American depository receipts (ADRs) outstanding in overseas stock market amounts to 20,307,420 and such ADRs are equivalent to 5,076,855 shares of common stock.

(*2) As of March 31, 2024, the difference between the ending balance of common stock and the par value of issued common stock isW59,547 million due to retirement of 11,909,395 treasury shares.

(b) Capital surplus as of March 31, 2024 and December 31, 2023 are as follows:

(in millions of Won)	March 31, 2024			December 31, 2023
Share premium	W	463,825			463,825
Gain on disposal of treasury shares		808,994			808,994
Gain from merger		80,627			80,627
Loss on disposal of hybrid bonds		(1,787	)		(1,787	)
Share-based payment		18,898			18,898
	W	1,370,557			1,370,557

25

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

March 31, 2024 and 2023

(Unaudited)

20. Accumulated Other Comprehensive Income

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

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

21. Treasury Shares

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

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

22. Operating Revenue

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

(in millions of Won)	March 31, 2024		March 31, 2023
Types of revenue
Dividend income	W	850,028		520,174
Others		48,710		42,813
	W	898,738		562,987
Timing of revenue recognition
Revenue recognized at a point in time	W	850,030		519,947
Revenue recognized over time		48,708		43,040
	W	898,738		562,987

26

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

March 31, 2024 and 2023

(Unaudited)

22. Operating Revenue (cont’d)

(b) Details of contract assets and liabilities from contracts with customers as of March 31, 2024 and December 31, 2023 are as follows:

(in millions of Won)	March 31, 2024		December 31, 2023
Receivables
Account receivables	W	851,414		100,323
Contract assets
Account receivables		169,341		138,009
Contract liabilities
Advance received		879		5
Unearned income		7,296		5,901

23. Operating Expenses

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

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

27

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

March 31, 2024 and 2023

(Unaudited)

24. Finance Income and Costs

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

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

25. Other Non-Operating Income and Expenses

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

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

28

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

March 31, 2024 and 2023

(Unaudited)

26. Expenses by Nature

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

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

(*1) Includes depreciation of investment property.

29

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

March 31, 2024 and 2023

(Unaudited)

27. Income Taxes

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

(a) Income taxes

The Company vertically spun off its steel business at the spin-off date on March 1, 2022. The Company’s vertical spin-off meets the requirements for qualified spin-off under the Corporate Tax Act. Accordingly, transfer gains ofW8,452,339 million under the Corporate Tax Act were incurred for the net asset transferred to the newly established company (POSCO), and the Company simultaneously set a Corporate Tax Act based provision for accelerated depreciation on the transfer gains and recognized deferred tax liabilities.

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

(b) Global minimum top-up tax

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

30

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

March 31, 2024 and 2023

(Unaudited)

28. Earnings per Share

(a) Basic earnings per share for each of the three-month periods ended March 31, 2024 and 2023 are as follows:

(in Won, except share information)	March 31, 2024		March 31, 2023
Profit for the period	W	941,339,021,421		551,741,289,484
Weighted-average number of common shares outstanding(* 1)		75,876,207		75,849,177
Basic earnings per share	W	12,406		7,274

(*1) The weighted-average number of common shares outstanding used to calculate basic earnings per share is as follows:

(shares)	March 31, 2024			March 31, 2023
Total number of common shares issued		84,571,230			84,571,230
Weighted-average number of treasury shares		(8,695,023	)		(8,722,053	)
Weighted-average number of common shares outstanding		75,876,207			75,849,177

(b) The Company has potentially issuable common shares due to its exchangeable bonds and share-based payment program as of March 31, 2024. Considering gain or loss from revaluation of and exchange rate on exchangeable bonds have an anti-dilution effect as of March 31, 2023, the Company did not calculate diluted earnings per share. Diluted earnings per share for the year ended March 31, 2024 are calculated as follows:

(in Won, except share information)	March 31, 2024
Profit for the period	W	941,339,021,421
Gain or loss from revaluation of and exchange rate on exchangeable bonds		(87,838,993,624	)
Diluted profit for the period		853,500,027,797
Adjusted weighted-average number of common shares outstanding(* 1)		79,189,781
Diluted earnings(loss) per share		10,778

(*1) The weighted-average number of common shares outstanding used to calculate diluted earnings(loss) per share is as follows:

(shares)	March 31, 2024
Weighted-average number of common shares outstanding		75,876,207
Weighted-average number of potential common shares		3,313,574
Adjusted weighted-average number of common shares		79,189,781

31

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

March 31, 2024 and 2023

(Unaudited)

29. Related Party Transactions

(a) Material transactions with related companies for each of the three-month periods ended March 31, 2024 and 2023 are as follows:

1) For the three-month period ended March 31, 2024

(in millions of Won)	Sales and others(* 1)						Purchase and others
	Sales		Dividends		Others		Purchase of fixed assets		Others
Subsidiaries(* 2)
POSCO	W	39,719		589,786		—		191		3,841
POSCO Eco & Challenge Co., Ltd.		2,316		11,037		—		87		42
POSCO STEELEON CO., Ltd		266		—		—		—		9
POSCO DX		394		9,940		—		219		3,944
POSCO Research Institute		—		—		—		30		1,935
POSCO WIDE Co., Ltd		82		—		—		1		1,567
eNtoB Corporation		—		—		—		37		1,707
POSCO FUTURE M CO., LTD.		3,494		11,565		—		—		—
POSCO MOBILITY SOLUTION		245		—		—		—		—
POSCO INTERNATIONAL Corporation		1,612		124,396		—		—		12
Busan E&E Co,. Ltd.		—		2,472		—		—		—
POSCO America Corporation		—		—		—		—		1,547
Others		936		1		422		—		2,411
		49,064		749,197		422		565		17,015
Associates and joint ventures(* 2)
SNNC		83		—		—		—		—
POSCO-NPS Niobium LLC		—		8,041		—		—		—
Roy Hill Holdings Pty Ltd		—		91,837		—		—		—
Others		49		—		56		—		—
		132		99,878		56		—		—
	W	49,196		849,075		478		565		17,015

(*1) Sales and others mainly consist of trademark usage income, rental income, and dividend income from subsidiaries, associates and joint ventures.

(*2) As of March 31, 2024, the Company provided payment guarantees to related parties (see Note 18).

2) For the three-month period ended March 31, 2023

(in millions of Won)	Sales and others(* 1)						Purchase and others
	Sales		Dividends(* 3)		Others		Purchase of fixed assets		Others
Subsidiaries(* 2)
POSCO	W	31,396		325,043		—		—		5,653
POSCO Eco & Challenge Co., Ltd.		2,091		11,037		—		87		836
POSCO STEELEON CO., Ltd		528		—		—		—		23
POSCO DX		651		7,455		—		1,029		1,817
eNtoB Corporation		—		—		—		—		185
POSCO FUTURE M CO., LTD.		1,174		13,878		—		—		—
POSCO MOBILITY SOLUTION		223		—		—		—		—
POSCO INTERNATIONAL Corporation		2,511		77,616		—		—		—
POSCO Maharashtra Steel Private Limited		—		—		146		—		—
POSCO ASSAN TST STEEL INDUSTRY		—		—		142		—		—
Others		2,477		5,126		1,419		102		7,160
		41,051		440,155		1,707		1,218		15,674
Associates and joint ventures(* 2)
SNNC		41		—		—		—		—
Roy Hill Holdings Pty Ltd		—		32,443		—		—		—
Others		48		7,201		3,714		—		90
		89		39,644		3,714		—		90
	W	41,140		479,799		5,421		1,218		15,764

(*1) Sales and others mainly consist of trademark usage income, rental income, and dividend income from subsidiaries, associates and joint ventures.

(*2) As of March 31, 2023, the Company provided payment guarantees to related parties (see Note 18).

(*3) Gain on disposals of investment in subsidiaries, recognized as dividends amounting toW14,898 million, is excluded.

32

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

March 31, 2024 and 2023

(Unaudited)

29. Related Party Transactions (cont’d)

(b) The balances of receivables and payables arising from significant transactions with related parties as of March 31, 2024 and December 31, 2023 are as follows:

1) March 31, 2024

(in millions of Won)	Receivables						Payables
	Trade accounts and notes receivable		Others		Total		Accounts payable		Others		Total
Subsidiaries
POSCO	W	723,927		16,715		740,642		5,310		35,870		41,180
POSCO Eco & Challenge Co., Ltd.		22,615		1,447		24,062		—		449		449
POSCO STEELEON CO., Ltd		1,329		—		1,329		—		—		—
POSCO DX		11,907		1		11,908		873		89		962
POSCO FUTURE M CO., LTD.		28,694		48		28,742		—		39		39
POSCO Mobility Solution Corporation		1,226		—		1,226		—		2		2
POSCO INTERNATIONAL Corporation		132,458		25		132,483		—		244		244
POSCO Argentina S.A.U		7		16,327		16,334		—		—		—
Others		3,563		598		4,161		1,120		341		1,461
		925,726		35,161		960,887		7,303		37,034		44,337
Associates and joint ventures
SNNC		417		—		417		—		—		—
Roy Hill Holdings Pty Ltd		91,837		—		91,837		—		—		—
FQM Australia Holdings Pty Ltd(* 1)		—		228,645		228,645		—		—		—
Others		245		350		595		—		—		—
		92,499		228,995		321,494		—		—		—
	W	1,018,225		264,156		1,282,381		7,303		37,034		44,337

(*1) FQM Australia Holdings Pty Ltd’s other receivable consists of long-term loans and accrued interest. Meanwhile, the Company has recognized allowance for doubtful accounts for all of other receivables.

2) December 31, 2023

(in millions of Won)	Receivables						Payables
	Trade accounts and notes receivable		Others		Total		Accounts payable		Others		Total
Subsidiaries
POSCO	W	110,913		19,666		130,579		3,937		32,901		36,838
POSCO Eco & Challenge Co., Ltd.		9,262		1,714		10,976		—		170		170
POSCO STEELEON CO., Ltd		1,063		—		1,063		—		—		—
POSCO DX		1,574		—		1,574		1,434		423		1,857
eNtoB Corporation		—		—		—		1,391		3		1,394
POSCO FUTURE M CO., LTD		14,299		463		14,762		—		31		31
POSCO Mobility Solution Corporation		981		—		981		—		—		—
POSCO INTERNATIONAL Corporation		6,449		25		6,474		—		163		163
PT. KRAKATAU POSCO		—		3,582		3,582		—		—		—
POSCO Argentina S.A.U		301		10,948		11,249		—		—		—
Others		3,044		204		3,248		9,022		151		9,173
		147,886		36,602		184,488		15,784		33,842		49,626
Associates and joint ventures
SNNC		334		—		334		—		—		—
Roy Hill Holdings Pty Ltd		88,008		—		88,008		—		—		—
FQM Australia Holdings Pty Ltd(* 1)		—		218,900		218,900		—		—		—
Others		195		560		755		—		—		—
		88,537		219,460		307,997		—		—		—
	W	236,423		256,062		492,485		15,784		33,842		49,626

(*1) FQM Australia Holdings Pty Ltd’s other receivable consists of long-term loans and accrued interest. During the year ended December 31, 2023, the Company provided additional loan to its associates byW6,448 million. Meanwhile, the Company has recognized allowance for doubtful accounts for all of other receivables during the year ended December 31, 2023

33

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

March 31, 2024 and 2023

(Unaudited)

29. Related Party Transactions (cont’d)

(c) For each of the three-month periods ended March 31, 2024 and 2023, details of compensation to key management officers are as follows:

(in millions of Won)	March 31, 2024		March 31, 2023
Short-term benefits	W	4,915		8,700
Retirement benefits		889		2,648
	W	5,804		11,348

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

30. Commitments and Contingencies

(a) Commitments

1) As of March 31, 2024, the Company entered into commitments with KOREA ENERGY AGENCY for long-term foreign currency borrowing, which is limited up to the amount of USD 1.05 million. The borrowing is related to the exploration of gas hydrates in Western Fergana-Chinabad. The repayment of the borrowing depends on the success of the project. The Company is not liable for the repayment of full or part of the money borrowed if the respective project fail. The Company has agreed to pay a certain portion of its profits under certain conditions, as defined by the borrowing agreements. As of March 31, 2024, the ending balance of the borrowing amounts to USD 1.02 million.

2) The Company has deposited 3,247,373 treasury shares for exchange with the Korea Securities Depository in relation to foreign currency exchangeable bonds as of March 31, 2024.

(b) As of March 31, 2024, the Company has provided three blank checks to KOREA ENERGY AGENCY as collateral for long-term foreign currency borrowings.

(c) Litigation in progress

The Company is involved in 4 lawsuits for compensatory damage amounted toW10 billion as defendant as of March 31, 2024. However, the Company has not recognized any provisions for the lawsuit since the Company does not believe it has a present obligation as of March 31, 2024.

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

34

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

March 31, 2024 and 2023

(Unaudited)

31. Cash Flows from Operating Activities

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

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

32. Events after the reporting period

Pursuant to the resolution of the Board of Directors on May 14, 2024, the Company decided to pay interim cash dividends ofW2,500 per common share (total dividend:W189.7 billion).

35