Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16]

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 December, 2024

Commission File Number: 1-13368

POSCO HOLDINGS INC.

(Translation of registrant’s name into English)

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

(Address of principal executive offices)

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

Form 20-F ☒ Form 40-F ☐

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

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

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


		POSCO HOLDINGS INC.
		(Registrant)

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

Exhibit 99.1

LOGO

QUARTERLY REPORT

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

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

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

QUARTERLY REPORT

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

To:	Korean Financial Services Commission and Korea Exchange

/s/ Jeong, Ki-Seop

Jeong, Ki-Seop

President and Representative Director

POSCO HOLDINGS INC.

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: +82-54-220-0114

TABLE OF CONTENTS


I.	Overview	4

II.	Business	5

III.	Financial Statements	35

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

I. OVERVIEW

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

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

II. BUSINESS

1. Overview

A. Classification of Business

We classify our business into six segments:

Steel segment, Infrastructure (Trading segment), Infrastructure (Construction segment), Infrastructure (Logistics and etc. segment), Secondary Battery Materials, and Others.

B. Summary of Financial Status of Segment


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

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

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

*	The former ‘Green Instrastructure’ segment was renamed as ‘Infrastructure’ and former ‘Green Materials and Energy Segment’ was renamed as ‘Secondary Battery Materials’ followed by internal reorganization in April 2024.

2. Business Status of Segments

A. Steel

There are 84 consolidated companies in the steel segment, including POSCO and POSCO Steeleon, and overseas companies including PT.Krakatau POSCO in Indonesia, POSCO (Zhangjiagang) Stainless Steel Co., Ltd. in China and overseas processing centers.

∎ POSCO

(1) Summary of Business

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

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

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

Global Crude Steel Production


							(Millions of Tons, %)
Crude Steel Production	2024. Q3			2023			2022
Global		1,394			1,850			1,832
Korea (Ratio)		48 (3.5	%)		67 (3.6	%)		66 (3.6	%)

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

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

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

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

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

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

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

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

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

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

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

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

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

POSCO, As an unlisted company, has no obligation to establish special committee under the board of directors, but it has established ESG committee and audit committee to support ESG governance and strengthen its external communication with interested parties.

(2) Market Share


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

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

∎ POSCO STEELEON

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

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

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

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

∎ POSCO M-TECH

(1) Summary of Business

POSCO M-TECH is a specialized supplier of steel products packaging and steel supplementary materials such as aluminum deoxidizers which is needed to remove oversaturated oxygen in steelmaking process. In case of steel products packaging, POSCO M-TECH continuously develops packaging machines and materials.

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

(2) Business Areas


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

(3) Market Share

(Tons)


Category	2024.Q3					2023					2022
Category	Sales Volume		Market share			Sales Volume		Market share			Sales Volume		Market share
POSCO M-TECH		27,714		43.3	%		31,984		44.7	%		31,245		44.0	%
PJ Metal		36,359		56.7	%		39,600		55.3	%		39,700		56.0	%
Total		64,073		100.0	%		71,584		100.0	%		70,945		100.0	%

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

B. Infrastructure [Trading segment]

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

∎ POSCO INTERNATIONAL

(1) Market Share

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


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

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

(2) Summary of Businesses

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

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

[Global Trading Sector]

Steel/Mobility business: As a member of the POSCO Group, POSCO International is striving to expand its business areas and create synergies by collaborating with group companies in various sectors such as steel, construction, secondary battery materials, IT, and more. POSCO International is also focusing on eco-friendly business to actively expand into the eco-friendly energy industry, including solar and wind power, as well as the mobility market. In the EV materials area, POSCO International is enhancing its role in securing stable raw material procurement by establishing a supply chain for graphite and other materials.

Motor core business: Together with POSCO Mobility Solution which is a subsidiary of POSCO International, 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 Hotel Lotte.

[Energy Sector]

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

Myanmar Gas Field business : Since its production of the first gas in July 2013, gas fields supplies an 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. In order to maintain the current level of production capacity, POSCO International plans to drill three additional production wells in two deep-sea fields and one additional production well in a shallow-sea field. Furthermore, it will install processing facilities on subsea pipelines and existing platform.

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.

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

The by-product gas power plant in Indonesia

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

Onshore wind power generation project

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

[New business investment]

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

B. Infrastructure [Construction segment]

∎ POSCO E&C

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

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

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

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

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

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

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

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

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

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

B. Infrastructure [Logistics and etc. segment]

∎ POSCO DX

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

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

C. Secondary Battery Materials

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

∎ POSCO Future M

[Basic industrial materials business]

Refractory production : Refractories maintain their chemical properties and strength even at high temperatures making them indispensable materials for industrial facilities including the furnaces in steelworks and petrochemical plants. In the refractory business, POSCO Future M produces and maintains refractories. The domestic refractory industry achieved continuous growth until the mid-1990s alongside the development of the heavy chemical industry, leading to increased productivity through facility investments and enabling both quantitative and qualitative growth. However, the industry has been facing unlimited competition due to reduced operational rates caused by excess capacity among global refractory companies and the influx of low-priced Chinese products. Therefore, it is imperative to secure extreme cost competitiveness and develop high value-added products to enhance competitiveness in the global market.

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

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

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

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

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

D. Others

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

3. Key Products

A. Sales of Key Products (2024.Q3)

(In hundred millions of KRW, %)


Business Area	Item	Specific Use	Total Sales		Ratio
Steel	Hot-rolled Product (HR)	Steel pipe, Shipbuilding, etc.		94,768	20.40%
	Cold-rolled Product (CR)	Automobile , Home appliances, etc.		152,707	32.80%
	Stainless Steel Products	Tableware, pipes, etc.		78,039	16.80%
	Others	Plates, Wire rods, etc.		140,107	30.10%
	Gross Sum			465,621	100.00%
	Deduction of Internal Trade			-171,253

	Sub Total			294,368

Infrastructure	Trading	Steel, Metal		242,569	56.30%
		Chemical, Strategic Item, Energy		48,271	11.20%
		Others		35,196	8.20%
	Construction	Architecture (Domestic)		36,755	8.50%
		Plant (Domestic)		17,073	4.00%
		Civil Engineering (Domestic)		7,645	1.80%
		Others (Domestic)		2,025	0.50%
		Overseas Construction		6,898	1.60%
		Owned Construction		1,617	0.40%
		Others		2,749	0.60%
	Logistics and etc.	Others		30,433	7.10%
	Gross Sum			431,231	100.00%
	Deduction of Internal Trade			-200,564

	Sub Total			230,667

Secondary	Gross Sum			30,688	100.00%
Battery	Deduction of Internal Trade			-7,469

Materials	Sub Total			23,219

Others	Gross Sum			15,429	100.00%
	Deduction of Internal Trade			-14,853

	Sub Total			576

Total Sum				548,830

B. Price Movement Trends of Key Products

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


Business Segment	Products	2024.Q3		2023		2022
Steel	Hot-rolled Product (HR)		931		967		1,105
Steel	Cold-rolled Product (CR)		1,157		1,157		1,293
Infrastructure	Electric Power		160		205		224
Secondary Battery Materials	Refractory		984		991		1,022
Secondary Battery Materials	Lime		141		147		117

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)

Construction and Logistics and etc. segments of 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

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

[Infrastructure (Trading)]

(1) Criteria for Calculation

(a)

Subjects for Calculation: Price of electric power

(b)

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

(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

[Secondary Battery Materials]

(1) Criteria for Calculation

(a)

Subjects for Calculation: Unit price of refractory and quicklime

(b)

Calculation Method and Unit: The average price of each product based on its total sales including the freight 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.

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
		Raw Materials	Materials for Iron-making	Iron Ore for Blast Furnaces		135,440		63.9	%	Iron Ore, Coal
Steel			Sub-materials	Sub-materials for Iron-making, Steelmaking		40,861		19.3	%	Iron Material, Alloy Iron, Non-ferrous Metal, Limestone, etc.
			Stainless Steel Materials	Key Materials for STS Production		35,518		16.8	%	Nickel, Ferrochrome, STS Scrap Iron, etc.
Infrastructure	Trading	Raw Materials	LNG	Material for Power Generation		14,781		100.0	%	—
	Construction	Raw Materials	Ready-mixed Concrete	Construction of Structure		2,498		19.8	%	—
			Steel Reinforcement	Strengthening Concrete		1,832		14.5	%	—
			Cable	Electricity Transfer		115		0.9	%	—
			Steel Pile	Foundation of Structure		24		0.2	%	—
			Others	Construction of Pipe and Structure etc.		8,164		64.6	%	—
	Logistics and etc.	Raw Materials	Others	For other use		6,892		100.0	%	—
Secondary Battery Materials		Raw Materials	NCM and etc.	Production of cathode materials		14,194		88.3	%	—
			Graphite and etc.	Production of anode materials		461		2.9	%	—
			Limestone and etc.	Production of Lime		821		5.1	%	—
			Others	Production of refractory		597		3.7	%	—

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

B. Price Movement Trends of Major Raw Materials

(In thousands of KRW)


Business Segment		Category	2024.Q3	2023	2022
Steel		Iron Ore(per ton)	137	145	143
		Coal(per ton)	343	387	472
		Scrap Iron(per ton)	510	526	605
		Nickel(per ton)	23,110	28,043	33,147
Infrastructure	Trading	LNG (per ton)	1,050	1,428	1,594
	Construction	Ready-mixed Concrete (per m³)	90	85	77
		Steel Pile (per m)	192	165	180
		Steel Reinforcement (per kg)	0.9	0.9	1.0
		Cable (per m)	1.0	0.9	0.9
Secondary Battery Materials		Refractory (per ton)	405	334	479
Secondary Battery Materials		Limestone (per ton)	25	24	22

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]

Price Movement Trend of Major Raw Materials

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


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

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


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

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


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

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


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

LME : London Metal Exchange

[Infrastructure]

(1) Criteria for Calculation


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

[Secondary Battery Materials]

(1) Criteria for Calculation

- Refractory and lime: Purchase prices including freight costs

(2) Factors of Price Changes

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

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

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

5. Production and Facilities

A. Production Capacity

[Steel]

∎ POSCO

(Thousands of Tons)

Business Area

Products

2024.Q3

2023

2022

Steel

Crude Steel

30,454

40,680

*	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.Q3		2023		2022
Steel	Galvanized / Color- coated Steel	Pohang		718		960		960
	Galvanized / Color- coated Steel	Myanmar		52		70		70

Total				770		1,030		1,030

∎ POSCO M-TECH

(Tons)

Business Area

Products

2024.Q3

2023

2022

Raw materials for steel production

Ingot and etc.

28,969

39,294

39,058

[Infrastructure (Trading)]

∎ POSCO INTERNATIONAL

(Electric Power: MW/year)

Business Area

Products

2024.Q3

2023

2022

Power Generation

Electric Power

Incheon

3,412

[Secondary Battery Materials]

∎ POSCO FUTURE M


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

Total				1,731,261		2,306,560		2,306,560

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

B. Production Result and Capacity Utilization Rate

[Steel]

(1) Production


		(Thousands of Tons)
Products		2024.Q3		2023		2022
Crude Steel			29,058		39,941		37,928
Products	Hot-Rolled Steel		7,592		10,660		9,268
	Plate		4,849		6,602		5,857
	Wire Rod		1,633		2,325		1,988
	Pickled-Oiled Steel		2,018		2,780		2,847
	Cold-Rolled Products		5,565		7,133		7,623
	Coated Steel		5,504		7,299		6,708
	Electrical Steel		742		828		1,005
	Stainless Steel		2,463		3,104		3,400
	Others		1,227		1,795		3,261

	Total		31,593		42,528		41,957

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

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		30,454		25,894		85.0	%
	PT.KRAKATAU POSCO		2,196		2,206		100.4	%
	POSCO (Zhangjiagang) Stainless Steel Co., Ltd.		825		591		71.6	%
	POSCO YAMATO VINA STEEL JOINT STOCK COMPANY		413		367		89.0	%

	Total		33,888		29,058		85.7	%

[Infrastructure]

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

∎ POSCO INTERNATIONAL

(1) Production Result

(Gwh)

Business Area

Products

2024.Q3

2023

2022

Power Generation

Electric Power

10,048

11,213

11,189

(2) Capacity Utilization Rate

(Hour, %)

Business Area

Products

2024.Q3
Capacity

2024.Q3
Production

Utilization Rate

Power Generation

Incheon Power Plant

6,576

4,998

76.00

[Secondary Battery Materials]

∎ POSCO FUTURE M

(1) Production Result


					(Tons)
Business Area	Products	Place of Business	2024.Q3		2023		2022
Refractory	Brick and etc.	Pohang		59,677		77,437		81,094
LIME	Quicklime	Pohang		769,434		1,110,594		1,043,109
LIME	Quicklime	Gwangyang		907,210		1,243,040		1,176,611

Total				1,736,321		2,431,071		2,300,814

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

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.Q3)


					(Tons,%)
Business Area	Capacity		Production		Utilization Rate
Refractory Factory		87,261		59,677		68	%
Quicklime Factory (Pohang)		822,000		769,434		94	%
Quicklime Factory (Gwangyang)		822,000		907,210		110	%

Total		1,731,261		1,736,321		—

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

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

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		23,140		-1,419		—		1,901,917
Infrastructure	Trading		495,571		23,247		-4,355		—		514,463
	Construction		378,849		8,629		-23,929		—		363,549
	Logistics and etc.		111,058		675		-128		—		111,605
Secondary Battery Materials			234,415		9,697		-24,083		—		220,029
Others			190,155		1,287		-50		—		191,392

[Buildings]

								(In millions of KRW)
Business Segment		Beginning Book Balance		Increased		Decreased		Depreciation		Ending Book Balance
Steel			2,978,895		222,215		-11,606		-211,587		2,977,917
Infrastructure	Trading		569,770		20,804		-3,392		-21,700		565,482
	Construction		91,841		180,902		-2,957		-2,677		267,109
	Logistics and etc.		107,521		3,949		-2,150		-4,998		104,322
Secondary Battery Materials			554,815		181,690		-32,298		-18,362		685,845
Others			124,790		37		-4,982		-1,387		118,458

[Structures]

								(In millions of KRW)
Business Segment		Beginning Book Balance		Increased		Decreased		Depreciation		Ending Book Balance
Steel			2,383,628		555,171		-25,836		-188,280		2,724,683
Infrastructure	Trading		472,112		154,731		-391		-32,446		594,006
	Construction		51,855		1,935		-88		-5,215		48,487
	Logistics and etc.		102,528		15		-6,962		-6,141		89,440
Secondary Battery Materials			55,637		91,319		-7,549		-3,976		135,431
Others			15,764		1		-595		-215		14,955


[Machinery and Equipments]

								(In millions of KRW)
Business Segment		Beginning Book Balance		Increased		Decreased		Depreciation		Ending Book Balance
Steel			13,828,139		3,022,820		-808,970		-1,754,149		14,287,840
Infrastructure	Trading		1,212,326		132,391		-45,489		-124,226		1,175,002
	Construction		7,490		2,750		-1,618		-1,570		7,052
	Logistics and etc.		275,244		14,409		-21,115		-30,132		238,406
Secondary Battery Materials			1,197,388		877,790		-113,810		-103,771		1,857,597
Others			18,605		23,322		-2		-1,538		40,387

[Vehicles]

								(In millions of KRW)
Business Segment		Beginning Book Balance		Increased		Decreased		Depreciation		Ending Book Balance
Steel			50,878		24,445		-5,779		-18,131		51,413
Infrastructure	Trading		12,126		4,109		-2,250		-2,086		11,899
	Construction		6,112		3,532		-2,024		-1,524		6,096
	Logistics and etc.		1,054		192		-42		-182		1,022
Secondary Battery Materials			9,361		5,978		-891		-2,904		11,544
Others			64		—		—		-15		49

[Tools and Fixtures]

								(In millions of KRW)
Business Segment		Beginning Book Balance		Increased		Decreased		Depreciation		Ending Book Balance
Steel			68,552		28,752		-13,997		-19,429		63,878
Infrastructure	Trading		23,813		19,738		-5,478		-12,173		25,900
	Construction		1,415		926		-455		-494		1,392
	Logistics and etc.		4,438		3,731		-1		-1,501		6,667
Secondary Battery Materials			30,615		11,911		-1,646		-8,557		32,323
Others			32		—		—		—		32

[Equipment]

								(In millions of KRW)
Business Segment		Beginning Book Balance		Increased		Decreased		Depreciation		Ending Book Balance
Steel			112,086		35,844		-19,287		-32,797		95,846
Infrastructure	Trading		27,861		8,045		-2,183		-8,793		24,930
	Construction		9,875		9,291		-6,960		-3,020		9,186
	Logistics and etc.		12,561		2,806		-329		-1,767		13,271
Secondary Battery Materials			13,278		9,283		-952		-4,124		17,485
Others			14,226		198		-5		-1,115		13,304


[Financial Lease Assets]

								(In millions of KRW)
Business Segment		Beginning Book Balance		Increased		Decreased		Depreciation		Ending Book Balance
Steel			247,157		47,175		-45,892		-39,695		208,745
Infrastructure	Trading		384,096		49,714		-13,699		-36,311		383,800
	Construction		37,015		77,714		-51,237		-28,170		35,322
	Logistics and etc.		211,108		39,784		-14,320		-5,981		230,591
Secondary Battery Materials			97,959		19,031		-2,882		-15,827		98,281
Others			20,970		1,273		-110		-2,263		19,870

[Biological Assets]

								(In millions of KRW)
Business Segment		Beginning Book Balance		Increased		Decreased		Depreciation		Ending Book Balance
Steel			—		—		—		—		—
Infrastructure	Trading		137,331		5,766		-19		-7,143		135,935
	Construction		—		—		—		—		—
	Logistics and etc.		—		—		—		—		—
Secondary Battery Materials			—		—		—		—		—
Others			—		—		—		—		—

[Assets under Construction]

								(In millions of KRW)
Business Segment		Beginning Book Balance		Increased		Decreased		Depreciation		Ending Book Balance
Steel			2,795,425		2,554,978		-3,024,404		-15,263		2,310,736
Infrastructure	Trading		322,944		331,720		-153,052		—		501,612
	Construction		10,961		2,079		-2,802		—		10,238
	Logistics and etc.		126,315		161,657		—		—		287,972
Secondary Battery Materials			3,008,621		2,620,391		-1,120,522		—		4,508,490
Others			69,407		120,813		-313		—		189,907

(2) New Facility Establishment, Purchase, Etc.


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

P stands for Pohang Steel Works.

G stands for Gwangyang Steel Works.

[Infrastructure (Trading / Logistics and etc.)]

(In hundred millions of KRW)

Company

Date

Project

Total
Investment

Invested
Amount

Amount to
Be
Invested

NEH

Expansion/ Establishment

May 2022
~July 2026

Gwangyang LNG terminal

8,668

3,101

5,567

[Secondary Battery Materials]


				(In hundred millions of KRW)
Company		Date	Project	Total Investment		Invested Amount		Amount to Be Invested
POSCO Future M	Expansion/ Establishment	March 2023~January 2025	The 2-1 stage of cathode material factory in Pohang		3,920		2,619		1,301
		March 2020~June 2025	Establishment of new Artificial Graphite Anode material line in Pohang		4,612		2,924		1,688
		July 2022~February 2025	#2 precursor factory in Gwangyang		3,262		2,951		311
		July 2023~October 2025	The 5th stage of cathode material factory in Gwangyang		6,834		1,225		5,609
		April 2023~August 2025	The 2nd stage of production line up expansion in #2 cathode material factory		6,148		2,342		3,806
ZHEJIANG POSCO-HUAYOU 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		8,150		1,037
POSCO FUTURE MATERIALS CANADA INC.	Expansion/ Establishment	June 2023~May 2027	The 2nd stage of cathode material factory in Canada		10,005		879		9,126
POSCO-Pilbara LITHIUM SOLUTION	Expansion/ Establishment	April 2021~November 2024	Construction of hard rock lithium commercialization plant		10,977		10,763		214
POSCO ARGENTINA	Expansion/ Establishment	January 2022~August 2025	Brine lithium commercialization plant stage 1 and stage 2		26,273		20,250		6,023
POSCO LITHIUM SOLUTION	Expansion/ Establishment	December 2022~August 2025	Brine lithium commercialization plant stage 2 (downstream)		5,751		1,771		3,980

Ongoing investments over KRW 100 billion as of September 30, 2024 are listed on the table.

The existing investment amount in NEH represents the capital contributed by POSCO International to NEH, and the future investment amount will be self-financed by NEH through external borrowings.

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

6. Product Sales

[Steel]


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

	Total		294,368		403,933		445,470

[Infrastructure]


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

	Total			230,667		328,052		376,221

[Secondary Battery Materials]


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

Total		23,219		38,160		24,518

[Others]


	(In hundred millions of KRW)
Items	2024.Q3		2023		2022
Gross Sum		15,429		15,622		11,695
Deduction of Internal Transaction		-14,853		-14,495		-10,402

Total		576		1,127		1,293

Domestic and overseas categorized by the sales area.

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

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 Infrastructure (Logistics and etc. segment).

7. Derivatives

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

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

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

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

[Infrastructure (Trading)]

∎ POSCO INTERNATIONAL


Contract	Date	Remarks
Investment on the 3^rd 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 3^rd stage of development, which consists of 3 stages in Myanmar gas field development. The purpose of investment is to maintain current gas production level stably by installing low-pressure gas compression platform. - 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. POSCO International disclosure date : September 22, 2020 (Decision on natural resources investment)
Investment on the 4^th stage development of A-1 / A-3 block in Myanmar gas field	June 2024	1) Investment amount: KRW 926,302,200,195 2) Development period: July 1, 2024 ~ June 30, 2027 3) Future Plan : POSCO International plans to drill three additional production wells in two deep-sea fields and one additional production well in a shallow-sea field. Furthermore, it will install processing facilities on subsea pipelines and existing platform. 4) Other Information - Location: North-west offshore, Myanmar - This investment is the 4^th stage of development of the existing Myanmar gas field development. The purpose of investment is to drill three additional production wells in two deep-sea fields and one additional production well in a shallow-sea field and to install processing facilities on subsea pipelines and existing platform. - With its commencement of development in July 2024, the gas production expected to begin in the third quarter of 2027. - Participation rate of each company in gas production and offshore pipeline transportation business • POSCO International Corporation : 51.0% • KOGAS(Korea Gas Corporation): 8.5% • ONGC VIDESH(Oil and Natural Gas Corporation Videsh Limited) : 17.0% • MOGE(Myanmar Oil and Gas Enterprise): 15.0% • GAIL (India) Limited : 8.5% - Investment size of USD 667 million, applying the exchange rate of June 25, 2024 (1USD=1,387.50KRW). - Detailed information and future timeline on this resource development investment is subjectto change. POSCO International disclosure date : June 27, 2024 (Decision on natural resources investment)


Contract	Date	Remarks
Decision to acquire shares of Senex Energy (Australia)	December 2021	1) Purpose : Production and Development of land gas field in eastern Australia 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% 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 POSCO International disclosure date : January 2, 2023

[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
	POSCO M-TECH	Pohang Steel Business Office
Infrastructure	POSCO MOBILITY SOLUTION	STS Business Office R&D Group
		Core Business Office Product Process Development Group
		Core Business Office Mold Research Group
	POSCO Eco & Challenge	R&D Center
	POSCO A&C	Smart Housing Business Department
	POSCO DX	R&D Center
Secondary Battery Materials	POSCO Future M	R&D Center
Secondary Battery Materials	POSCO Future M	Energy Material R&D Center
Others	POSCO HOLDINGS INC.	Group Technology Stragetegy Office
		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

B. R&D Expenses in 2024.Q3


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

*	Total includes government subsidy.

III. Financial Statements

1. Consolidated Financial Statements

A. Summary


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


Total liabilities		41,096,904		41,281,497		40,149,380
[Equity attributable to owners of the controlling company]		55,303,215		54,180,849		52,512,116
Share capital		482,403		482,403		482,403
Capital surplus		1,648,737		1,663,334		1,400,832
Hybrid bonds		—		—		—
Retained earnings		54,384,827		53,857,514		52,965,180
Other equity attributable to owners of the controlling company		-1,212,752		-1,822,402		-2,336,299
[Non-controlling Interests]		5,901,197		5,483,048		5,745,285
Total equity		61,204,412		59,663,897		58,257,401

	From January 1, 2024 to September 30, 2024		From January 1, 2023 to December 31, 2023		From January 1, 2022 to December 31, 2022
Revenue		54,882,999		77,127,197		84,750,204
Operating profit		2,078,189		3,531,423		4,850,053
Profit		1,650,854		1,845,850		3,560,484
[Profit attributable to owners of the controlling company]		1,523,302		1,698,092		3,144,087
[Profit attributable to non-controlling interests]		127,552		147,758		416,397
Total comprehensive Income		2,056,990		2,330,891		3,794,358
[Total comprehensive income attributable to owners of the controlling company]		1,849,384		2,131,737		3,380,649
[Total comprehensive income attributable to non-controlling interests]		207,606		199,154		413,709
Earnings per share(KRW)		20,092		22,382		41,456
Number of Consolidated Companies		196		192		181

B. The Standards Used for Reporting the Financial Statements

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

2. Separate Financial Statements

A. Summary


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


Account	2024.Q3		2023		2022
[Total current liabilities]		110,703		1,819,670		118,993
[Total non-current Liabilities]		2,369,528		2,326,663		3,858,263
Total liabilities		2,480,231		4,146,333		3,977,256
[Share capital]		482,403		482,403		482,403
[Capital surplus]		1,367,990		1,370,557		1,360,894
[Hybrid bonds]		—		—		—
[Retained earnings]		47,505,885		47,505,885		47,409,675
[Other equity]		-1,856,413		-1,858,980		-2,081,109
Total equity		47,499,865		47,499,865		47,171,863

		From January 1, 2024 to September 30, 2024		From January 1, 2023 to December 31, 2023		From January 1, 2022 to December 31, 2022
Revenue		1,460,868		1,454,079		8,589,819
Operating profit		1,178,912		1,106,629		1,674,893
Profit		1,468,572		799,578		-467,852
Earnings per share(KRW)		19,370		10,539		-6,185

B. The Standards Used for Reporting the Financial Statements

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

POSCO HOLDINGS INC.

and its subsidiaries

Interim condensed consolidated financial statements

for the nine-month period ended September 30, 2024

with the independent auditor’s review report

Table of Contents


	Page
Report on review of interim condensed consolidated financial statements		1

Interim condensed consolidated financial statements		3

Interim condensed consolidated statements of financial position		4

Interim condensed consolidated statements of comprehensive income		6

Interim condensed consolidated statements of changes in equity		7

Interim condensed consolidated statements of cash flows		9

Notes to the interim condensed consolidated financial statements		11

LOGO

Report on review of interim condensed consolidated financial statements

(English translation of a report originally issued in Korean)

The Stockholders and Board of Directors

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

Management’s responsibility for the interim condensed consolidated financial statements

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

Auditor’s responsibility

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

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

Conclusion

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

LOGO

Other matters

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

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

November 14, 2024

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

POSCO HOLDINGS INC. and its subsidiaries

Interim condensed consolidated financial statements

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

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

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

Kisub Jung

Chief Strategy Officer

POSCO HOLDINGS INC.

POSCO HOLDINGS INC. and its Subsidiaries

Interim condensed consolidated statements of financial position

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


(in millions of Won)	Notes		September 30, 2024 (unaudited)		December 31, 2023
Assets
Cash and cash equivalents		21	W	7,728,931		6,670,879
Trade accounts and notes receivable, net		4,15,21,25,26,33		10,872,961		11,015,303
Other receivables, net		5,21,33		2,243,911		1,947,529
Other short-term financial assets		6,21		8,541,450		11,403,166
Inventories		7		13,699,021		13,825,514
Current income tax assets				76,820		101,979
Assets held for sale		8		190,007		406,945
Other current assets		14		845,595		840,984

Total current assets				44,198,696		46,212,299

Long-term trade accounts and notes receivable, net		4,21		34,485		42,516
Other receivables, net		5,21,33		1,520,147		1,452,445
Other long-term financial assets		6,21		2,777,287		2,708,325
Investments in associates and joint ventures		9		5,146,817		5,020,264
Investment property, net		11		1,571,938		1,616,294
Property, plant and equipment, net		12		38,543,110		35,206,248
Intangible assets, net		13		4,668,459		4,714,784
Defined benefit assets, net		19		438,566		464,758
Deferred tax assets				3,266,694		3,334,266
Other non-current assets		14		135,118		173,195

Total non-current assets				58,102,621		54,733,095

Total assets			W	102,301,317		100,945,394

(continued)

POSCO HOLDINGS INC. and its Subsidiaries

Interim condensed consolidated statements of financial position, continued

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


(in millions of Won)	Notes	September 30, 2024 (unaudited)			December 31, 2023
Liabilities
Trade accounts and notes payable	21,33	W	5,639,015			5,782,825
Short-term borrowings and current installments of long-term borrowings	15,21		11,765,917			10,959,217
Other payables	16,21,33		2,948,709			2,737,478
Other short-term financial liabilities	17,21		249,563			163,626
Current income tax liabilities			252,453			319,096
Liabilities directly associated with the assets held for sale	8		171,889			141,890
Provisions	18		357,284			419,744
Other current liabilities	20,25,26		1,237,961			1,337,642

Total current liabilities			22,622,791			21,861,518

Long-term borrowings, excluding current installments	15,21		14,144,926			15,011,163
Other payables	16,21		827,978			873,565
Other long-term financial liabilities	17,21		92,490			153,782
Defined benefit liabilities, net	19		83,791			38,754
Deferred tax liabilities			2,752,010			2,760,234
Long-term provisions	18		470,005			468,009
Other non-current liabilities	20		102,914			114,472

Total non-current liabilities			18,474,114			19,419,979

Total liabilities			41,096,905			41,281,497

Equity
Share capital	22		482,403			482,403
Capital surplus	22		1,648,737			1,663,334
Other components of equity	23		338,109			67,256
Treasury shares	24		(1,550,862	)		(1,889,658	)
Retained earnings			54,384,827			53,857,514

Equity attributable to owners of the controlling company			55,303,214			54,180,849
Non-controlling interests			5,901,198			5,483,048

Total equity			61,204,412			59,663,897

Total liabilities and equity		W	102,301,317			100,945,394

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

POSCO HOLDINGS INC. and its subsidiaries

Interim condensed consolidated statements of comprehensive income

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

ended September 30, 2024 and 2023 (Unaudited)


(in millions of Won, except per share information)			For the three-month period ended September 30 (unaudited)						For the nine-month period ended September 30 (unaudited)
	Notes		2024			2023			2024			2023
Revenue		25,26,33	W	18,321,368			18,960,831			54,882,999			58,463,080
Cost of sales		26,30		(16,814,861	)		(17,049,781	)		(50,552,662	)		(53,144,751	)

Gross profit				1,506,507			1,911,050			4,330,337			5,318,329
Selling and administrative expenses		21,27,30
Other administrative expenses				(717,936	)		(660,505	)		(2,101,583	)		(1,917,000	)
Selling expenses				(45,404	)		(54,329	)		(150,565	)		(174,181	)

Operating profit				743,167			1,196,216			2,078,189			3,227,148
Share of profit of equity-accounted investees, net		9		68,226			101,216			242,406			282,931
Finance income and costs		21,28
Finance income				771,393			578,348			3,293,716			3,239,157
Finance costs				(767,946	)		(993,392	)		(3,179,318	)		(3,704,869	)
Other non-operating income and expenses		21,29,30
Other non-operating income				54,897			36,086			181,593			349,037
Other non-operating expenses				(178,408	)		(87,358	)		(473,221	)		(531,134	)

Profit before income tax				691,329			831,116			2,143,365			2,862,270
Income tax expense		31		(194,510	)		(280,614	)		(492,511	)		(695,498	)

Profit				496,819			550,502			1,650,854			2,166,772
Other comprehensive income (loss)
Items that will not be reclassified subsequently to profit or loss:
Capital adjustment arising from investments in subsidiaries under equity method				—			(11,946	)		984			(10,199	)
Foreign currency translation differences				(58,584	)		18,846			57,058			56,927
Remeasurements of defined benefit plans		19		2,391			10,828			4,205			(6,338	)
Net changes in fair value of equity investments at fair value through other comprehensive income		21		49,494			62,306			(27,453	)		212,172
Items that are or may be reclassified subsequently to profit or loss:
Capital adjustment arising from investments in subsidiaries under equity method				(109,145	)		49,535			89,548			261,809
Foreign currency translation differences				(233,651	)		36,059			282,237			214,529
Gains or losses on valuation of derivatives		21		(421	)		(1,361	)		(443	)		(2,541	)

Other comprehensive income (loss), net of tax				(349,916	)		164,267			406,136			726,359

Total comprehensive income			W	146,903			714,769			2,056,990			2,893,131

Profit attributable to:
Owners of the controlling company			W	452,654			488,201			1,523,303			1,904,353
Non-controlling interests				44,165			62,301			127,551			262,419

Profit			W	496,819			550,502			1,650,854			2,166,772

Total comprehensive income attributable to:
Owners of the controlling company			W	171,597			626,868			1,849,384			2,569,048
Non-controlling interests				(24,694	)		87,901			207,606			324,083

Total comprehensive income			W	146,903			714,769			2,056,990			2,893,131

Earnings per share (in Won)		32
Basic earnings per share (in Won)				5,980			6,434			20,092			25,101
Diluted earnings per share (in Won)			W	5,694			6,434			17,578			25,101

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

POSCO HOLDINGS INC. and Subsidiaries

Interim condensed consolidated statements of changes in equity

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


(in millions of Won)	Attributable to owners of the controlling company																	Non- controlling interests			Total
	Share capital		Capital surplus			Other equity items			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		—		—			—			—			1,904,353			1,904,353			262,419			2,166,772
Other comprehensive income (loss)
Remeasurements of defined benefit plans, net of tax		—		—			—			—			(2,978	)		(2,978	)		(3,360	)		(6,338	)
Capital adjustment arising from investments in equity-accounted investees, net of tax		—		—			242,802			—			—			242,802			8,808			251,610
Net changes in fair value of equity investments at fair value through other comprehensive income, net of tax		—		—			211,817			—			355			212,172			—			212,172
Foreign currency translation differences, net of tax		—		—			214,529			—			—			214,529			56,927			271,456
Gains or losses on valuation of derivatives, net of tax		—		—			(1,830	)		—			—			(1,830	)		(711	)		(2,541	)

Total comprehensive income		—		—			667,318			—			1,901,730			2,569,048			324,083			2,893,131

Transactions with owners of the controlling company, recognized directly in equity:
Year-end dividends		—		—			—			—			(151,698	)		(151,698	)		(94,287	)		(245,985	)
Interim dividends		—		—			—			—			(379,381	)		(379,381	)		—			(379,381	)
Changes in ownership interest in subsidiaries		—		212,033			—			—			—			212,033			(9,933	)		202,100
Interest of hybrid bonds		—		—			—			—			—			—			(8,925	)		(8,925	)
Repayment of hybrid bonds		—		—			—			—			—			—			(339,408	)		(339,408	)
Disposal of treasury shares		—		4,083			—			5,864			—			9,947			—			9,947
Share based payment		—		3,084			—			—			—			3,084			—			3,084
Others		—		(887	)		(65,299	)		—			(1,796	)		(67,982	)		4,665			(63,317	)

Total transactions with owners of the controlling company		—		218,313			(65,299	)		5,864			(532,875	)		(373,997	)		(447,888	)		(821,885	)

Balance as of September 30, 2023	W	482,403		1,619,145			158,029			(1,886,444	)		54,334,034			54,707,167			5,621,480			60,328,647

(continued)

POSCO HOLDINGS INC. and Subsidiaries

Interim condensed consolidated statements of changes in equity, continued

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


(in millions of Won)	Attributable to owners of the controlling company																	Non- controlling interests			Total
	Share capital		Capital surplus			Other equity items			Treasury shares			Retained earnings			Subtotal			Non- controlling interests			Total
Balance as of January 1, 2024	W	482,403		1,663,334			67,256			(1,889,658	)		53,857,514			54,180,849			5,483,048			59,663,897
Comprehensive income:
Profit		—		—			—			—			1,523,303			1,523,303			127,551			1,650,854
Other comprehensive income (loss)
Remeasurements of defined benefit plans, net of tax		—		—			—			—			4,789			4,789			(584	)		4,205
Capital adjustment arising from investments in equity-accounted investees, net of tax		—		—			66,519			—			—			66,519			24,013			90,532
Net changes in fair value of equity investments at fair value through other comprehensive income, net of tax		—		—			(26,145	)		—			(705	)		(26,850	)		(603	)		(27,453	)
Foreign currency translation differences, net of tax		—		—			282,237			—			—			282,237			57,058			339,295
Gains or losses on valuation of derivatives, net of tax		—		—			(614	)		—			—			(614	)		171			(443	)

Total comprehensive income		—		—			321,997			—			1,527,387			1,849,384			207,606			2,056,990

Transactions with owners of the controlling company, recognized directly in equity:
Year-end dividends		—		—			—			—			(189,691	)		(189,691	)		(85,674	)		(275,365	)
Interim dividends		—		—			—			—			(379,381	)		(379,381	)		—			(379,381	)
Changes in subsidiaries		—		—			—			—			—			—			57,399			57,399
Changes in ownership interest in subsidiaries		—		(15,916	)		—			—			—			(15,916	)		264,520			248,604
Acquisition of treasury shares		—		—			—			(92,311	)		—			(92,311	)		—			(92,311	)
Retirement of treasury shares		—		—			—			431,107			(431,107	)		—			—			—
Share based payment		—		(2,567	)		—			—			—			(2,567	)		—			(2,567	)
Others		—		3,886			(51,144	)		—			105			(47,153	)		(25,701	)		(72,854	)

Total transactions with owners of the controlling company		—		(14,597	)		(51,144	)		338,796			(1,000,074	)		(727,019	)		210,544			(516,475	)

Balance as of September 30, 2024	W	482,403		1,648,737			338,109			(1,550,862	)		54,384,827			55,303,214			5,901,198			61,204,412

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

POSCO HOLDINGS INC. and Subsidiaries

Interim condensed consolidated statements of cash flows

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


(in millions of Won)		For the nine-month period ended
	Notes	September 30, 2024 (unaudited)			September 30, 2023 (unaudited)
Cash flows from operating activities
Profit		W	1,650,854			2,166,772
Adjustments for:
Depreciation			2,629,545			2,502,740
Amortization			352,394			369,038
Finance income			(2,155,923	)		(1,724,525	)
Finance costs			1,937,285			2,186,124
Income tax expense			492,511			695,498
Impairment loss on property, plant and equipment			179,400			152,469
Gain on disposal of property, plant and equipment			(14,079	)		(5,747	)
Loss on disposal of property, plant and equipment			56,291			90,104
Impairment loss on goodwill and other intangible assets			362			4,792
Gain on disposal of investments in subsidiaries, associates and joint ventures			(9,590	)		(196,562	)
Loss on disposal of investments in subsidiaries, associates and joint ventures			42,539			8,776
Share of profit of equity-accounted investees			(242,406	)		(282,931	)
Gain on disposal of assets held for sale			(705	)		—
Loss on disposal of assets held for sale			34,830			103,366
Expenses related to post-employment benefit			183,381			150,464
Impairment loss on trade and other receivables			70,037			27,144
Loss (gain) on valuation of inventories			(62,047	)		102,855
Increase (decrease) to provisions			40,815			63,234
Others, net			(8,356	)		(36,346	)

			3,526,284			4,210,493

Changes in operating assets and liabilities	35		(450,846	)		(1,695,289	)
Interest received			423,968			316,526
Interest paid			(847,985	)		(804,486	)
Dividends received			541,054			484,552
Income taxes paid			(429,491	)		(398,969	)

Net cash provided by operating activities		W	4,413,838			4,279,599

(continued)

POSCO HOLDINGS INC. and Subsidiaries

Interim condensed consolidated statements of cash flows, continued

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


(in millions of Won)		For the nine-month period ended
	Notes	September 30, 2024 (unaudited)			September 30, 2023 (unaudited)
Cash flows from investing activities
Acquisitions of short-term financial instruments		W	(10,755,681	)		(37,117,290	)
Proceeds from disposal of short-term financial instruments			14,529,930			35,902,804
Increase in loans			(705,255	)		(536,420	)
Collection of loans			645,503			706,250
Acquisitions of securities			(1,110,904	)		(328,351	)
Proceeds from disposal of securities			645,082			153,581
Acquisitions of long-term financial instruments			(3,442	)		(4,029	)
Acquisitions of investment in associates and joint ventures			(166,147	)		(386,572	)
Proceeds from disposal of investment in associates and joint ventures			46,266			13,646
Acquisitions of investment property			(1,857	)		(56,018	)
Proceeds from disposals of investment property			372			520
Acquisitions of property, plant and equipment			(5,680,476	)		(4,545,134	)
Proceeds from disposal of property, plant and equipment			30,397			(15,187	)
Acquisitions of intangible assets			(266,216	)		(269,671	)
Proceeds from disposal of intangible assets			3,527			27,722
Proceeds from disposal of assets held for sale			23,531			1,446
Collection of lease receivables			22,391			38,930
Disposal of net assets due to changes in consolidated entities			9,831			—
Cash flow from business combination			—			(150,201	)
Cash inflow from insurance claim			—			4,391
Others, net			(2,884	)		(7,331	)

Net cash used in investing activities			(2,736,032	)		(6,566,914	)

Cash flows from financing activities
Proceeds from borrowings			4,788,074			7,433,578
Repayment of borrowings			(6,149,738	)		(4,773,516	)
Proceeds from (repayment of) short-term borrowings, net			1,163,905			(548,790	)
Capital contribution from non-controlling interests			308,777			228,473
Payment of cash dividends			(655,132	)		(624,667	)
Acquisition of treasury shares			(92,311	)		—
Repayment of hybrid bonds			—			(340,000	)
Payment of interest of hybrid bonds			—			(10,043	)
Repayment of lease liabilities			(145,157	)		(154,912	)
Others, net			114,696			83,229

Net cash provided by (used in) financing activities			(666,886	)		1,293,352

Effect of exchange rate fluctuation on cash held			47,132			87,680

Net increase(decrease) in cash and cash equivalents			1,058,052			(906,283	)
Cash and cash equivalents at beginning of the period			6,670,879			8,053,282

Cash and cash equivalents at end of the period		W	7,728,931			7,146,999

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

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements

September 30, 2024 and 2023 (Unaudited)

1. General Information

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

(a)	The controlling company

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

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

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

(b)	Consolidated subsidiaries acquired or newly established during the nine-month period ended September 30, 2024 are as follows:


Company	Date of inclusion		Ownership (%)	Reason
POSCO CNGR Nickel Solution		January 2024	60.00		New establishment
POSCO CVC Scale-Up Fund		May 2024	60.00		New establishment
SK Solar Plant		July 2024	100.00		Acqusition
POSCO ZT AIR SOLUTION		August 2024	75.10		New establishment
RNR logistics		September 2024	100.00		Acqusition

(c)	A consolidated subsidiary over which Company has lost control during the nine-month period ended September 30, 2024 is as follows:


Company	Date of exclusion		Reason
POSCO INTERNATIONAL POWER (PNGLAE) LTD.		June 2024		Divestiture

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

2. Basis of Preparation

Statement of compliance

The interim condensed consolidated financial statements have been prepared in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (“KIFRS”) 1034 Interim Financial Reporting, as prescribed in the Act 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.

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.

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

(b)	Measurement of fair value

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

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

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

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

•

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

•

Level 2 - inputs other than quoted prices included in Level 1 that are observable for the assets or liabilities, 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.

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

3. Summary of Material Accounting Policy Information

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

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

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

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

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

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

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

The amendments clarify:

•

what is meant by a right to defer settlement;

•

that a right to defer must exist at the end of the reporting period;

•

that classification is unaffected by the likelihood that an entity will exercise its deferral right; and

•

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 Group’s interim condensed consolidated financial statements.

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

4. Trade Accounts and Notes Receivable

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


(in millions of Won)	September 30, 2024			December 31, 2023
Current
Trade accounts and notes receivable	W	9,506,171			9,382,640
Due from customers for contract work		1,682,824			1,916,238
Less: Allowance for doubtful accounts		(316,034	)		(283,575	)

	W	10,872,961			11,015,303

Non-current
Trade accounts and notes receivable	W	80,980			89,839
Less: Allowance for doubtful accounts		(46,495	)		(47,323	)

	W	34,485			42,516

The Group discounted accounts receivable in accordance with accounts receivable factoring agreements with financial institutions for the nine-month period ended September 30, 2024 and the year ended December 31, 2023. This transaction is a transaction with the right to appeal because the Group is obligated to pay the amount to the bank, etc. if the trade receivables are not recovered at maturity, and the transaction is accounted for as secured borrowing. As of September 30, 2024 and December 31, 2023, the book value of the accounts receivable from the transaction is W113,535 million and W132,942 million, respectively, and the amount is included in the short-term borrowings.

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

5. Other Receivables

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


(in millions of Won)	September 30, 2024			December 31, 2023
Current
Short-term Loans	W	330,357			223,011
Other accounts receivable		1,604,232			1,433,423
Accrued income		274,659			237,154
Deposits		96,956			125,854
Others		28,590			15,349
Lease receivables		19,337			23,948
Less: Allowance for doubtful accounts		(110,220	)		(111,210	)

	W	2,243,911			1,947,529

Non-current
Long-term Loans(*1)	W	1,354,464			1,204,645
Other accounts receivable		187,943			186,492
Accrued income		165,895			184,739
Deposits		276,293			308,185
Lease receivables		62,896			78,994
Less: Allowance for doubtful accounts		(527,344	)		(510,610	)

	W	1,520,147			1,452,445

(*1)	The Group recognized an allowance for doubtful accounts of W258,332 million for all of the other receivables from FQM Australia Holdings Pty Ltd., an associate, due to low possibility of collecting these receivables during the year ended December 31, 2023.

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

6. Other Financial Assets

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


(in millions of Won)	September 30, 2024		December 31, 2023
Current
Derivatives assets	W	166,763		166,873
Debt securities		933,238		295,619
Deposit instruments(*1)		4,464,439		4,400,267
Short-term financial instruments(*1)		2,967,571		6,540,407
Equity securities		9,439		—

		8,541,450		11,403,166

Non-current
Derivatives assets		135,235		134,269
Equity securities(*2)		1,803,699		1,793,531
Debt securities		103,083		87,778
Other securities(*2)		711,633		669,687
Deposit instruments(*1)		23,637		23,060

	W	2,777,287		2,708,325

(*1)	As of September 30, 2024 and December 31, 2023, financial instruments amounting to W92,992 million and W101,888 million, respectively, are restricted in use for financial arrangements, pledge and others.

(*2)	As of September 30, 2024 and December 31, 2023, W188,216 million and W181,617 million of equity and other securities, respectively, have been provided as collateral for borrowings, construction projects and others.

7. Inventories

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


(in millions of Won)	September 30, 2024			December 31, 2023
Finished goods	W	2,606,535			2,615,009
M erchandise		1,195,584			1,049,467
Semi-finished goods		2,613,462			3,039,516
Raw materials		3,496,581			3,237,691
Fuel and materials		1,073,066			921,742
Construction inventories		232,338			256,558
M aterials-in-transit		2,680,611			2,965,306
Others		90,400			87,802

		13,988,577			14,173,091

Less: Allowance for inventories valuation(*1)		(289,556	)		(347,577	)

	W	13,699,021			13,825,514

(*1)	For the nine-month period ended September 30, 2024 and the year ended December 31, 2023, the reversed inventory valuation losses are W62,047 million and W128,510 million, respectively.

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

8. Assets Held for Sale

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


(in millions of Won)	*September 30, 2024(1)**		*December 31, 2023(2)**
Asset
Cash and cash equivalents	W	988		—
Account receivables and other receivables		3,619		728
Inventories		—		39,054
Other financial assets		—		119,881
Property, plant and equipment		175,205		149,612
Intangible assets		—		97,372
Others		10,195		298

	W	190,007		406,945

Liability
Other payables	W	169,960		22,180
Provisions		1,929		119,710

	W	171,889		141,890

(*1)

POSCO Future M Co., Ltd. a subsidiary of the Group, decided to transfer 51% shares of P&O Chemical Co., Ltd., previously accounted for as a subsidiary, to the second-largest shareholder, OCI Co., Ltd., and recognized W180,578 million of assets held for sale and W171,889 million of liabilities held for sale.

(*2)

POSCO Canada Ltd., a subsidiary of the Group, 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, Teck Coal Partnership, during the year ended December 31, 2023, and recognized W401,804 million of assets held for sale and W141,890 million of liabilities Held-for-sale.

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

9. Investments in Associates and Joint ventures

(a)	Details of investments in associates as of September 30, 2024 and December 31, 2023 are as follows:


(in millions of Won)	September 30, 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	365,104		323,521
Chun-cheon Energy Co., Ltd(*1)		17,308,143		49.10		86,541		15,093		15,040
Pocheon-Hwado Highway Corp.(*1)		7,109,230		27.89		35,546		19,316		23,998
CHUNGJU ENTERPRISE CITY DEVELOPMENT Co.,Ltd		944,920		29.53		4,725		12,669		13,967
DaeSung SnM Co., Ltd(*2)		—		—		—		—		20,296
PCC Amberstone Private Equity Fund 1(*3)		6,130,967,757		8.80		6,131		7,278		8,904
Others (48 companies)(*1)								127,575		122,366

								547,035		528,092

[Foreign]
South-East Asia Gas Pipeline Company Ltd.		135,219,000		25.04		132,907		285,543		287,282
AES Mong Duong Power Company Limited(*1)		—		30.00		164,303		250,265		230,699
9404-5515 Quebec Inc.		284,463,243		25.85		328,509		376,266		346,724
AMCI (WA) PTY LTD		49		49.00		209,664		57,828		60,225
NCR LLC		—		22.05		247,077		230,665		253,121
KOREA LNG LTD.		2,400		20.00		135,205		61,183		58,759
ZHEJIANG HUAYOU-POSCO ESM CO., LTD		648,530,000		40.00		120,072		107,877		105,300
PT. Wampu Electric Power(*1)		8,708,400		20.00		10,054		16,785		15,632
POSCO-SeAH Steel Wire(Nantong) Co., Ltd.		50		25.00		4,723		9,618		8,642
Others (31 companies)(*1)								228,252		209,118

								1,624,282		1,575,502

							W	2,171,317		2,103,594

(*1)	As of September 30, 2024 and December 31, 2023, investments in associates amounting to W678,876 million and W650,116 million, respectively, are provided as collateral in relation to the associates’ borrowings.

(*2)	During the nine-month period ended September 30, 2024, DaeSung SnM Co., Ltd. was excluded from associates due to the divestiture.

(*3)	As of September 30, 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.

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

(b)	Details of investments in joint ventures as of September 30, 2024 and December 31, 2023 are as follows:


(in millions of Won)	September 30, 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	152,483		155,748
SNNC		18,130,000		49.00		90,650		77,788		100,692
Others (7 companies)								11,266		8,323

								241,537		264,763

[Foreign]
Roy Hill Holdings Pty Ltd(*1)		13,117,972		12.50		1,528,672		1,373,598		1,400,009
POSCO-NPS Niobium LLC		325,050,000		50.00		364,609		429,008		419,192
KOBRASCO		2,010,719,185		50.00		32,950		113,305		99,768
Nickel Mining Company SAS		3,234,698		49.00		157,585		82,576		87,967
BX STEEL POSCO Cold Rolled Sheet Co., Ltd.		—		25.00		61,961		125,500		111,001
DMSA/AMSA(*1)		—		3.89		346,880		1,714		16,572
PT NICOLE METAL INDUSTRY(*2)		106,935,294		49.00		412,688		406,087		284,351
HBIS-POSCO Automotive Steel Co.Ltd		—		50.00		235,251		183,282		208,765
Others (8 companies)								18,893		24,282

								2,733,963		2,651,907

							W	2,975,500		2,916,670

(*1)	As of September 30, 2024 and December 31, 2023, the investments in joint ventures are provided as collateral in relation to the joint ventures’ borrowings.

(*2)	During the nine-month period ended September 30, 2024, the Company acquired W119,327 million of additional investment in joint ventures by participating in PT NICOLE METAL INDUSTRY’s capital increase.

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

(c)	Changes in investments in associates and joint ventures for the nine-month period ended September 30, 2024 and the year ended December 31, 2023 are as follows:

For the nine-month period ended September 30, 2024


(in millions of Won)
Company	December 31, 2023 Book value		Acquisition		Dividends			Share of profits (losses)			Other increase (decrease)(*1)			September 30, 2024 Book value
[Domestic]
Samcheok Blue Power Co.,Ltd.	W	323,521		25,680		(8,208	)		24,104			7			365,104
SNNC		100,692		—		—			(22,903	)		(1	)		77,788
Chun-cheon Energy Co., Ltd		15,040		—		—			(10,813	)		10,866			15,093
Pocheon-Hwado Highway Corp.		23,998		—		—			(4,682	)		—			19,316
CHUNGJU ENTERPRISE CITY DEVELOPMENT Co.,Ltd		13,967		—		—			(117	)		(1,181	)		12,669
DaeSung SnM Co., Ltd.		20,296		—		—			(1,522	)		(18,774	)		—
PCC Amberstone Private Equity Fund 1		8,904		175		—			(238	)		(1,563	)		7,278
POSCO MC MATERIALS		155,748		—		(1,800	)		(1,465	)		—			152,483
Others (55 companies)		130,689		10,127		(4,158	)		5,075			(2,892	)		138,841

		792,855		35,982		(14,166	)		(12,561	)		(13,538	)		788,572

[Foreign]
South-East Asia Gas Pipeline Company Ltd.		287,282		—		(41,843	)		33,329			6,775			285,543
AES Mong Duong Power Company Limited		230,699		—		(15,431	)		27,675			7,322			250,265
9404-5515 Quebec Inc.		346,724		—		(17,764	)		38,416			8,890			376,266
AMCI (WA) PTY LTD		60,225		—		—			(15,470	)		13,073			57,828
NCR LLC		253,121		4,275		—			(28,497	)		1,766			230,665
KOREA LNG LTD.		58,759		—		(14,463	)		14,415			2,472			61,183
Nickel Mining Company SAS		87,967		—		—			(8,485	)		3,094			82,576
ZHEJIANG HUAYOU-POSCO ESM CO., LTD		105,300		—		—			(2,029	)		4,606			107,877
PT. Wampu Electric Power		15,632		—		—			822			331			16,785
POS-SeAH Steel Wire(Nantong) CO., Ltd.		8,642		—		—			408			568			9,618
Roy Hill Holdings Pty Ltd		1,400,009		—		(253,262	)		167,301			59,550			1,373,598
POSCO-NPS Niobium LLC		419,192		—		(22,045	)		22,304			9,557			429,008
KOBRASCO		99,768		—		(5,761	)		29,095			(9,797	)		113,305
BX STEEL POSCO Cold Rolled Sheet Co., Ltd.		111,001		—		—			9,785			4,714			125,500
DMSA/AMSA		16,572		—		—			(15,625	)		767			1,714
PT NICOLE METAL INDUSTRY		284,351		119,908		—			460			1,368			406,087
HBIS-POSCO Automotive Steel Co.Ltd		208,765		—		—			(34,523	)		9,040			183,282
Others (39 companies)		233,400		2,343		(25,478	)		15,586			21,294			247,145

		4,227,409		126,526		(396,047	)		254,967			145,390			4,358,245

	W	5,020,264		162,508		(410,213	)		242,406			131,852			5,146,817

(*1)	Other increase (decrease) represents the changes in investments in associates and joint ventures due to disposals and change in capital adjustments effect from translations of financial statements of foreign investees and others for the nine-month period ended September 30, 2024.

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

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 from 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.

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

(d)	The summarized financial information of associates and joint ventures as of and for the nine-month period ended September 30, 2024 and the year ended December 31, 2023 is as follows:

September 30, 2024


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

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

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 September 30, 2024 are as follows:


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

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

11. Investment Property

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

(a)	For the nine-month period ended September 30, 2024


(in millions of Won)	Beginning		Acquisitions		Disposals			Depreciation			Impairment loss			*Others(1)**		Ending
Land	W	787,304		1,710		(47,137	)		—			(215	)		35,433		777,095
Buildings		655,786		1,774		(34,399	)		(21,584	)		(456	)		22,276		623,397
Structures		1,873		—		—			(684	)		—			590		1,779
Right-of-use assets		171,331		—		(80	)		(5,038	)		—			3,454		169,667

	W	1,616,294		3,484		(81,616	)		(27,306	)		(671	)		61,753		1,571,938

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

(b)	For the year ended December 31, 2023


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

	W	1,074,031		56,113		557,040		(441	)		(35,586	)		(34,863	)		1,616,294

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

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

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

12. Property, Plant and Equipment

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

For the nine-month period ended September 30, 2024


(in millions of Won)	Beginning		Acquisitions		Business Combination(*1)		Disposals			Depreciation			Impairment loss(*2)			*Others(3)**			Ending
Land	W	3,290,244		19,476		503		(6,017	)		—			—			(1,251	)		3,302,955
Buildings		4,427,632		8,418		17		(3,010	)		(257,144	)		(3,567	)		546,787			4,719,133
Structures		3,081,524		5,912		—		(3,318	)		(227,671	)		(8,603	)		759,159			3,607,003
Machinery and equipment		16,539,192		130,514		2,116		(25,099	)		(1,864,161	)		(151,226	)		2,974,948			17,606,284
Vehicles		79,595		13,228		—		(1,190	)		(24,843	)		—			15,233			82,023
Tools		128,865		23,956		—		(406	)		(41,579	)		(577	)		19,933			130,192
Furniture and fixtures		189,887		19,577		—		(1,639	)		(51,452	)		(164	)		17,812			174,021
Right-of-use assets		998,305		123,198		—		(16,426	)		(128,246	)		—			(221	)		976,610
Bearer plants		137,331		—		—		(7	)		(7,143	)		—			5,753			135,934
Construction-in-progress		6,333,673		5,657,949		—		(3,127	)		—			(15,263	)		(4,164,277	)		7,808,955

	W	35,206,248		6,002,228		2,636		(60,239	)		(2,602,239	)		(179,400	)		173,876			38,543,110

(*1)	Represents increases in property, plant and equipment upon inclusion of SK Solar Plant into a subsidiary by acquiring shares during the nine-month period ended September 30, 2024.

(*2)

The Group estimated the recoverable amount after calculating the net fair value of individual assets whose operation was suspended due to operation plan changes, such as steelmaking plant no. 1 and blast furnace no. 4 in Pohang, and recognized an impairment loss of W179,400 million on property, plant and equipment during the nine-month period ended September 30, 2024.

(*3)	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.

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

For the year ended December 31, 2023


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

	W	31,781,196		7,107,931		42,641		(112,500	)		(3,310,875	)		(274,013	)		(28,132	)		35,206,248

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

(*2)

The Group estimated the recoverable amount after calculating the net fair value of individual assets whose operation was suspended due to operation plan changes, such as lithium production facilities in Gwangyang and Argentina, and recognized an impairment loss of W196,207 million on property, plant and equipment whose recoverable amount was less than the book value during the year ended December 31, 2023.

(*3)

The Group estimated the recoverable amount after calculating the value in use of the hydrogen peroxide manufacturing facility in Gwangyang, which had impairment indications due to changes in raw material prices and changes in production plans during the year ended December 31, 2023, and recognized an impairment loss of W46,535 million on property, plant and equipment whose recoverable amount was less than the book value.

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

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

(b)	Changes in the carrying amount of right-of-use assets presented as investment property and property, plant and equipment for the nine-month period ended September 30, 2024 and the year ended December 31, 2023 are as follows:

For the nine-month period ended September 30, 2024


(in millions of Won)	Beginning		Acquisitions		Depreciation			Others			Ending
Land	W	363,789		1,178		(13,172	)		11,527			363,322
Buildings and structures		151,366		53,384		(37,129	)		(9,381	)		158,240
Machinery and equipment		355,604		34,344		(37,009	)		(4,646	)		348,293
Vehicles		48,228		9,294		(14,685	)		405			43,242
Ships		220,754		—		(18,042	)		—			202,712
Others		29,895		22,834		(13,212	)		(9,049	)		30,468

	W	1,169,636		121,034		(133,249	)		(11,144	)		1,146,277

For the year ended December 31, 2023


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

	W	1,091,846		243,649		(176,021	)		10,162			1,169,636

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


	For the three-month periods ended September 30				For the nine-month periods ended September 30
(in millions of Won)	2024		2023		2024		2023
Interest on lease liabilities	W	12,880		19,465		37,192		39,103
Expenses related to short-term leases		11,584		12,857		40,028		37,822
Expenses related to leases of low-value assets		6,502		6,601		19,373		16,069

	W	30,966		38,923		96,593		92,994

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

13. Goodwill and Other Intangible Assets

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

(a)

For the nine-month period ended September 30, 2024


(in millions of Won)	Beginning		Acquisitions		Business Combination		Disposals			Amortization			Impairment loss			*Others(2)**			Ending
Goodwill	W	403,172		—		282		—			—			(282	)		(4,339	)		398,833
Intellectual property rights		3,029,651		229,808		—		(1	)		(208,190	)		—			78,336			3,129,604
Membership(*1)		138,184		1,470		—		(3,707	)		(141	)		58			197			136,061
Development expense		126,818		2,015		—		—			(55,702	)		—			18,062			91,193
Port facilities usage rights		182,411		—		—		—			(11,100	)		—			—			171,311
Exploratation and evaluation assets		163,446		33,625		—		—			—			—			(108,301	)		88,770
Development assets		10,235		478		—		—			—			—			112,540			123,253
Customer relationships		196,895		—		—		—			(33,359	)		—			(6,492	)		157,044
Other intangible assets		463,972		52,585		—		(101,937	)		(43,902	)		(6	)		1,678			372,390

	W	4,714,784		319,981		282		(105,645	)		(352,394	)		(230	)		91,681			4,668,459

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

(*2)	Represents assets transferred from construction-in-progress to intangible assets and assets transferred from 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 of W88,518 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.

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

14. Other Assets

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


(in millions of Won)	September 30, 2024		December 31, 2023
Current
Advance payments	W	506,502		593,300
Prepaid expenses		317,669		226,960
Firm commitment asset		9,426		3,418
Others		11,998		17,306

		845,595		840,984

Non-current
Long-term advance payments		35,282		46,989
Long-term prepaid expenses		21,588		30,232
Others		78,248		95,974

	W	135,118		173,195

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

15. Borrowings

(a)	Short-term borrowings and current portion of long-term borrowings and others as of September 30, 2024 and December 31, 2023 are as follows:

(in millions of Won)

Lenders

Issuance date

Maturity date

Interest rate (%)

9/30/2024

12/31/2023

Short-term borrowings

Bank overdrafts

JP Morgan and others

January, 2024~
September, 2024

October, 2024~
July, 2025

3.65 ~ 7.20

51,881

69,160

Short-term borrowings

HSBC and others

October, 2023~
September, 2024

October, 2024~
September, 2025

0.40 ~ 62.00

6,293,361

4,890,120

6,345,242

4,959,280

Current portion of long-term liabilities

Current portion of long-term borrowings

Export-Import Bank of Korea and others

September, 2001~
June, 2024

October, 2024~
September, 2025

0.19 ~ 9.30

681,426

990,088

Current portion of debentures

KB Securities co., Ltd. and others

July, 2019~
May, 2023

October, 2024~
September, 2025

1.64 ~ 5.26

4,704,644

3,255,375

Less: Current portion of discount on debentures issued

(5,314

)

(2,217

)

Current portion of exchangable bonds(*1)

Foreign currency exchangable bonds

September, 2021

September, 2026

39,919

1,756,691

5,420,675

5,999,937

11,765,917

10,959,217

(*1)	The issuance conditions of the exchangeable bonds issued by the Group are as follows. As of September 30, 2024, exchangeable bonds are reclassified as current liabilities because the bondholders’ put option for redemption has become exercisable within 12 months.


		Foreign currency exchangable bonds

Type of bond		Exchangable bonds

Aggregate principal amount(*1)		EUR 27,100,000

Interest rate		- Coupon rate : -

		- Yield to Maturity : (0.78%)

Maturity date		September 1, 2026

Redemption		1) Redemption at Maturity : Outstanding bond principal, which is not repaid early or which call option is not exercised on, is repaid at maturity as a lump sum

		2) Prepayment : The issuer has call option and the bondholders have put option

Exchange rate		100%

Exchange price (Won/share)(*2)		440,592

Underlying shares exchange		Registered common shares (treasury shares)

Exchange period		From October 12, 2021 to August 22, 2026

Adjustments for exchange price		Adjusting the exchange price according to the terms and conditions of the bond in the events of reason for adjusting the 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.

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

(*1)	Due to put option exercised by bondholders, EUR 1,038,800,000 of EUR 1,065,900,000 in aggregate principal amount of exchangeable bonds was redeemed during the nine-month period ended September 30, 2024.

(*2)	The exchange price has changed due to cash dividends paid during the nine-month period ended September 30, 2024.

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

(b)	Long-term borrowings, excluding current portion and others, as of September 30, 2024 and December 31, 2023 are as follows:


(in millions of Won)	Lenders	Issuance date	Maturity date	Interest rate (%)		September 30, 2024			December 31, 2023
Long-term borrowings	Export-Import Bank of Korea and others	September, 2001~ September, 2024	October, 2025~ March, 2040		1.00 ~ 8.50	W	4,720,532			4,590,541
Less: Present value discount							(13,233	)		(9,414	)
Bonds	KB Securities co., Ltd. and others	July, 2019~ September, 2024	October, 2025~ January, 2033		1.72 ~ 6.38		9,481,347			10,478,394
Less: Discount on debentures issued							(43,720	)		(48,358	)

						W	14,144,926			15,011,163

(c)	Assets pledged as collateral with regard to the borrowings as of September 30, 2024 are as follows:


(in millions of Won)	Lenders	Book value		Pledged amount
Property, plant and equipment and Investment property	Korea Development Bank and others	W	3,572,133		3,395,576
Trade accounts and notes receivable	Korea Development Bank and others		113,535		113,535
Financial instruments	Shinhan Bank and others		53,464		53,464

		W	3,739,132		3,562,575

16. Other Payables

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


(in millions of Won)	September 30, 2024		December 31, 2023
Current
Accounts payable	W	1,195,800		1,174,097
Accrued expenses		1,239,347		1,046,891
Dividend payable		2,875		3,261
Lease liabilities		164,736		163,952
Withholdings		345,951		349,277

	W	2,948,709		2,737,478

Non-current
Accounts payable	W	9,542		14,143
Accrued expenses		8,229		8,073
Lease liabilities		733,087		760,368
Long-term withholdings		77,120		90,981

	W	827,978		873,565

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

17. Other Financial Liabilities

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


(in millions of Won)	September 30, 2024		December 31, 2023
Current
Derivative liabilities	W	46,108		38,631
Financial guarantee liabilities		5,987		5,114
Others(*1)		197,468		119,881

	W	249,563		163,626

Non-current
Derivative liabilities	W	18,149		81,291
Financial guarantee liabilities		9,708		7,858
Others		64,633		64,633

	W	92,490		153,782

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

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

18. Provisions

(a)	Provisions as of September 30, 2024 and December 31, 2023 are as follows:


(in millions of Won)	September 30, 2024				December 31, 2023
	Current		Non-current		Current		Non-current
Provision for bonus payments	W	114,822		41,346		146,277		38,114
Provision for construction warranties		49,711		142,463		50,222		146,536
Provision for legal contingencies and claims(*1)		14,940		53,440		20,893		52,169
Provision for the restoration		9,234		176,473		14,567		161,253
Others(*2)		168,577		56,283		187,785		69,937

	W	357,284		470,005		419,744		468,009

(*1)	The Group recognized probable outflow of resources amounting to W46,943 million and W45,712 million as provisions for legal contingencies and asserted claim in relation to lawsuits against the Group as of September 30, 2024 and December 31, 2023, respectively.

(*2)

According to the Act on the promotion of the development, use and diffusion of new and renewable energy, 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 September 30, 2024 and December 31, 2023, the Group recognized W54,859 million and W64,166 million respectively, as provision.

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

(b)	Changes in provisions for the nine-month period ended September 30, 2024 and the year ended December 31, 2023 are as follows:

For the nine-month period ended September 30, 2024


(in millions of Won)	Beginning		Increase		Utilization			Reversal			*Others(1)**			Ending
Provision for bonus payments	W	184,391		137,993		(158,828	)		(7,943	)		555			156,168
Provision for construction warranties		196,758		38,524		(31,182	)		(5,763	)		(6,163	)		192,174
Provision for legal contingencies and claims		73,062		9,972		(8,559	)		(4,635	)		(1,460	)		68,380
Provision for the restoration		175,820		16,375		(5,636	)		(6,411	)		5,559			185,707
Others		257,722		103,476		(112,100	)		(55,864	)		31,626			224,860

	W	887,753		306,340		(316,305	)		(80,616	)		30,117			827,289

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

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.

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

19. Employee Benefits

(a)	Defined contribution plans

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

(in millions of Won)

For the three-month periods
ended September 30

For the nine-month periods
ended September 30

2024

2023

2024

2023

Expense related to post-employment benefit plans under defined contribution plans

18,827

16,290

56,227

50,259

(b)	Defined benefit plans

The amounts recognized in relation to net defined benefit assets in the statements of financial position as of September 30, 2024 and December 31, 2023 are as follows:


(in millions of Won)	September 30, 2024			December 31, 2023
Present value of funded obligations	W	2,437,315			2,445,797
Fair value of plan assets(*1)		(2,807,552	)		(2,902,714	)
Present value of non-funded obligations		15,462			30,912

Net defined benefit liabilities	W	(354,775	)		(426,005	)

(*1)	As of September 30, 2024 and December 31, 2023, the Group recognized net defined benefit assets amounting to W438,566 million and W464,758 million, respectively, which represent the excess of each consolidated entity’s plan assets over the present value of defined benefit obligations.

The amounts recognized in the interim condensed consolidated statements of comprehensive income for each of the three-month and the nine-month periods ended September 30, 2024 and 2023 are as follows:


	For the three-month periods ended September 30						For the nine-month periods ended September 30
(in millions of Won)	2024			2023			2024			2023
Current service costs	W	66,208			59,180			199,556			173,013
Net interest costs		(5,590	)		(7,926	)		(16,175	)		(22,549	)

	W	60,618			51,254			183,381			150,464

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

20. Other Liabilities

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


(in millions of Won)	September 30, 2024		December 31, 2023
Current
Due to customers for contract work	W	477,116		624,632
Advances received		372,291		304,441
Unearned revenue		84,654		69,062
Withholdings		273,270		297,442
Firm commitment liability		10,897		20,136
Others(*1)		19,733		21,929

	W	1,237,961		1,337,642

Non-current
Unearned revenue	W	4,915		8,889
Others(*1)		97,999		105,583

	W	102,914		114,472

(*1)

As of September 30, 2024 and December 31, 2023, the Group recognized the assumed liability amounting to W45,931 million and W56,325 million, respectively, related to unfavorable terms of a customer contract relative to market-terms upon the acquisition of Senex Energy Limited by Senex Holdings PTY LTD, a subsidiary.

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

21. Financial Instruments

(a)	Classification and fair value of financial instruments

1)	The carrying amount and fair values of financial assets and financial liabilities by fair value hierarchy as of September 30, 2024 and December 31, 2023 are as follows:

①

September 30, 2024


(in millions of Won)			Fair value
	Book value		Level 1		Level 2		Level 3		Total
Financial assets
Fair value through profit or loss
Derivative assets	W	279,097		—		279,097		—		279,097
Short-term financial instruments		2,967,571		—		2,967,571		—		2,967,571
Equity securities		75,265		33,601		—		41,664		75,265
Debt securities		102,148		—		81,404		20,744		102,148
Other securities		711,633		—		—		711,633		711,633
Derivative hedging instruments(*2)		22,901		—		22,901		—		22,901
Fair value through other comprehensive income
Equity securities		1,737,873		1,308,965		—		428,908		1,737,873
Financial assets measured at amortized cost(*1)
Cash and cash equivalents		7,728,931		—		—		—		—
Trade accounts and notes receivable		9,238,347		—		—		—		—
Other receivables		3,005,623		—		—		—		—
Debt securities		934,173		—		—		—		—
Deposit instruments		4,488,076		—		—		—		—

	W	31,291,638		1,342,566		3,350,973		1,202,949		5,896,488

Financial liabilities
Fair value through profit or loss
Derivative liabilities	W	53,000		—		53,000		—		53,000
Borrowings		39,919		39,919		—		—		39,919
Other financial Liabilities		196,846		—		—		196,846		196,846
Derivative hedging instruments(*2)		11,256		—		11,256		—		11,256
Financial liabilities measured at amortized cost(*1)
Trade accounts and notes payable		5,639,015		—		—		—		—
Borrowings		25,870,924		—		26,008,560		—		26,008,560
Financial guarantee liabilities		15,695		—		—		—		—
Others		3,394,435		—		—		—		—
Other financial Liabilities		65,256		—		—		—		—

	W	35,286,346		39,919		26,072,816		196,846		26,309,581

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

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

②

December 31, 2023


(in millions of Won)			Fair value
	Book value		Level 1		Level 2		Level 3		Total
Financial assets
Fair value through profit or loss
Derivative assets	W	291,541		—		291,541		—		291,541
Short-term financial instruments		6,540,407		—		6,540,407		—		6,540,407
Equity securities		99,254		61,665		—		37,589		99,254
Debt securities		88,196		—		75,183		13,013		88,196
Other securities		669,687		—		270		669,417		669,687
Derivative hedging instruments(*2)		9,601		—		9,601		—		9,601
Fair value through other comprehensive income
Equity securities		1,694,277		1,539,205		—		155,072		1,694,277
Financial assets measured at amortized cost(*1)
Cash and cash equivalents		6,670,879		—		—		—		—
Trade accounts and notes receivable		9,155,853		—		—		—		—
Other receivables		2,750,036		—		—		—		—
Debt securities		295,201		—		—		—		—
Deposit instruments		4,423,327		—		—		—		—

	W	32,688,259		1,600,870		6,917,002		875,091		9,392,963

Financial liabilities
Fair value through profit or loss
Derivative liabilities	W	116,748		—		116,748		—		116,748
Borrowings		1,756,691		1,756,691		—		—		1,756,691
Other financial Liabilities		119,258		—		—		119,258		119,258
Derivative hedging instruments(*2)		3,174		—		3,174		—		3,174
Financial liabilities measured at amortized cost(*1)
Trade accounts and notes payable		5,782,825		—		—		—		—
Borrowings		24,213,688		—		24,310,166		—		24,310,166
Financial guarantee liabilities		12,972		—		—		—		—
Others		3,241,459		—		—		—		—
Other financial Liabilities		65,256		—		—		—		—

	W	35,312,071		1,756,691		24,430,088		119,258		26,306,037

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

(*2)

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

2)	Finance income and costs by category of financial instrument for each of the nine-month periods ended September 30, 2024 and 2023 are as follows:

①

For the nine-month period ended September 30, 2024


(in millions of Won)	Finance income and costs
	Interest income (expense)			Gain and loss on valuation		Gain and loss on foreign currency			Gain and loss on disposal			Others			Total			Other comprehensive income (loss)
Financial assets at fair value through profit or loss	W	—			109,930		—			92,375			819			203,124			—
Derivative assets		—			165,915		—			238,056			—			403,971			—
Financial assets at fair value through other comprehensive income		—			—		—			—			71,811			71,811			(27,453	)
Financial assets measured at amortized cost		446,113			—		293,084			(57,778	)		(3,834	)		677,585			—
Financial liabilities at fair value through profit or loss		—			236,931		(56,301	)		(6,258	)		—			174,372			—
Derivative liabilities		—			25,903		—			(210,968	)		—			(185,065	)		(443	)
Financial liabilities measured at amortized cost		(787,113	)		—		(421,586	)		—			(22,701	)		(1,231,400	)		—

	W	(341,000	)		538,679		(184,803	)		55,427			46,095			114,398			(27,896	)

②

For the nine-month period ended September 30, 2023


(in millions of Won)	Finance income and costs
	Interest income (expense)			Gain and loss on valuation			Gain and loss on foreign currency			Gain and loss on disposal			Others			Total			Other comprehensive income (loss)
Financial assets at fair value through profit or loss	W	—			364,273			—			161,168			555			525,996			—
Derivative assets		—			299,466			—			219,202			—			518,668			—
Financial assets at fair value through other comprehensive income		—			—			—			—			45,658			45,658			212,172
Financial assets measured at amortized cost		352,767			—			420,835			(56,032	)		10,884			728,454			—
Financial liabilities at fair value through profit or loss		—			(429,985	)		(93,331	)		—			—			(523,316	)		—
Derivative liabilities		—			41,412			—			(219,034	)		—			(177,622	)		(2,541	)
Financial liabilities measured at amortized cost		(753,583	)		—			(803,049	)		—			(26,918	)		(1,583,550	)		—

	W	(400,816	)		275,166			(475,545	)		105,304			30,179			(465,712	)		209,631

(b)	Financial risk management

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

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

22. Share Capital and Capital Surplus

(a)	Share capital as of September 30, 2024 and December 31, 2023 is as follows:


(Share, in Won)	September 30, 2024		December 31, 2023
Authorized shares		200,000,000		200,000,000
Par value	W	5,000		5,000
Issued shares(*1, 2)		82,624,377		84,571,230
Shared capital(*3)	W	482,403,125,000		482,403,125,000

(*1)	As of September 30, 2024, the total number of American Depository Receipts (ADRs) outstanding in overseas stock market amounts to 20,116,948 and such ADRs are equivalent to 5,029,237 shares of common stock.

(*2)

Pursuant to the resolution of the Board of Directors’ meeting on July 12, 2024, the Company decided to retire 1,946,853 shares using distributable profits, and the retirement of shares was completed on August 6, 2024. As a result, as of September 30, 2024, the Company’s total number of issued shares has decreased from 84,571,230 to 82,624,377.

(*3)	As of September 30, 2024, the difference between the ending balance of common stock and the aggregate par value of issued common stock is W69,281 million due to retirement of 13,856,248 treasury stocks.

(b)	Capital surplus as of September 30, 2024 and December 31, 2023 is as follows:


(in millions of Won)	September 30, 2024		December 31, 2023
Share premium	W	463,825		463,825
Gain on disposal of treasury shares		808,994		808,994
Other capital surplus		375,918		390,515

	W	1,648,737		1,663,334

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

23. Other components of equity

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


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

	W	338,109			67,256

24. Treasury Shares

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


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

Ending		7,003,598		W	1,550,862			8,695,023		W	1,889,658

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

25. Revenue

(a)	Disaggregation of revenue

Details of revenue disaggregated by types of revenue and timing of revenue recognition for each of the nine-month periods ended September 30, 2024 and 2023 are as follows:

①

For the nine-month period ended September 30, 2024


(in millions of Won)			Infrastructure						Secondary battery materials
	Steel		Trading		Construction		Logistics and others		Secondary battery materials		Others		Total
Types of revenue
Revenue from sales of goods	W	28,642,479		15,009,876		—		5,988		2,297,474		—		45,955,817
Revenue from services		663,205		2,186,302		94,133		240,144		3,424		9,425		3,196,633
Revenue from construction contract		—		—		5,451,805		—		20,975		—		5,472,780
Others		131,090		4,588		40,696		33,180		—		48,215		257,769

	W	29,436,774		17,200,766		5,586,634		279,312		2,321,873		57,640		54,882,999

Timing of revenue recognition
Revenue recognized at a point in time	W	28,773,569		15,014,464		308,117		39,168		2,297,474		48,215		46,481,007
Revenue recognized over time		663,205		2,186,302		5,278,517		240,144		24,399		9,425		8,401,992

	W	29,436,774		17,200,766		5,586,634		279,312		2,321,873		57,640		54,882,999

②

For the nine-month period ended September 30, 2023


(in millions of Won)			Infrastructure						Secondary battery materials
	Steel		Trading		Construction		Logistics and others		Secondary battery materials		Others		Total
Types of revenue
Revenue from sales of goods	W	29,949,006		15,904,486		—		15,062		2,905,453		—		48,774,007
Revenue from services		608,097		2,371,617		102,345		286,901		3,127		15,687		3,387,774
Revenue from construction contract		—		—		6,014,918		—		30,950		—		6,045,868
Others		129,499		3,846		10,449		36,212		—		75,425		255,431

	W	30,686,602		18,279,949		6,127,712		338,175		2,939,530		91,112		58,463,080

Timing of revenue recognition
Revenue recognized at a point in time	W	30,078,505		15,908,332		54,700		51,274		2,905,453		75,425		49,073,689
Revenue recognized over time		608,097		2,371,617		6,073,012		286,901		34,077		15,687		9,389,391

	W	30,686,602		18,279,949		6,127,712		338,175		2,939,530		91,112		58,463,080

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

Details of revenue disaggregated by types of revenue and timing of revenue recognition for each of the three-month periods ended September 30, 2024 and 2023 are as follows:

①

For the three-month period ended September 30, 2024


(in millions of Won)			Infrastructure						Secondary battery materials
	Steel		Trading		Construction		Logistics and others		Secondary battery materials		Others		Total
Types of revenue
Revenue from sales of goods	W	9,511,165		5,361,162		—		962		706,106		—		15,579,395
Revenue from services		230,462		597,703		36,070		74,161		908		4,635		943,939
Revenue from construction contract		—		—		1,692,966		—		7,367		—		1,700,333
Others		38,596		1,500		31,871		10,874		—		14,860		97,701

	W	9,780,223		5,960,365		1,760,907		85,997		714,381		19,495		18,321,368

Timing of revenue recognition
Revenue recognized at a point in time	W	9,549,761		5,362,662		118,190		11,836		706,106		14,860		15,763,415
Revenue recognized over time		230,462		597,703		1,642,717		74,161		8,275		4,635		2,557,953

	W	9,780,223		5,960,365		1,760,907		85,997		714,381		19,495		18,321,368

②

For the three-month period ended September 30, 2023


(in millions of Won)			Infrastructure						Secondary battery materials
	Steel		Trading		Construction		Logistics and others		Secondary battery materials		Others		Total
Types of revenue
Revenue from sales of goods	W	9,627,210		5,186,527		—		2,088		1,074,456		—		15,890,281
Revenue from services		194,227		714,770		31,546		82,846		880		3,484		1,027,753
Revenue from construction contract		—		—		1,963,620		—		6,827		—		1,970,447
Others		43,864		1,160		4,165		11,289		—		11,872		72,350

	W	9,865,301		5,902,457		1,999,331		96,223		1,082,163		15,356		18,960,831

Timing of revenue recognition
Revenue recognized at a point in time	W	9,671,074		5,187,687		6,800		13,150		1,074,456		11,873		15,965,040
Revenue recognized over time		194,227		714,770		1,992,531		83,073		7,707		3,483		2,995,791

	W	9,865,301		5,902,457		1,999,331		96,223		1,082,163		15,356		18,960,831

(b)	Details of contract assets and liabilities from contracts with customers as of September 30, 2024 and December 31, 2023 are as follows:


(in millions of Won)	September 30, 2024		December 31, 2023
Receivables
Account receivables	W	9,238,250		9,155,853
Contract assets
Due from customers for contract work		1,669,196		1,901,966
Contract liabilities
Advance received		377,848		309,441
Due to customers for contract work		477,116		624,632
Unearned revenue		88,994		77,908

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

26. Contract under Input Method

(a)	Details of outstanding contracts as of September 30, 2024 and December 31, 2023 are as follows:


(in millions of Won)	September 30, 2024						December 31, 2023
	Construction segment			Others			Construction segment			Others
Accumulated cost	W	25,985,671			295,632			28,663,723			272,321
Accumulated contract profit		1,843,270			37,433			2,499,061			36,954
Accumulated contract loss		(702,433	)		(11,613	)		(688,962	)		(8,916	)
Accumulated contract revenue		27,126,508			321,452			30,473,822			300,359

(b)	Details of due from customers for contract work and due to customers for contract work as of September 30, 2024 and December 31, 2023 are as follows:


(in millions of Won)	September 30, 2024						December 31, 2023
	Construction segment			Others			Construction segment			Others
Due from customers for contract	W	1,649,243			33,581			1,873,681			42,557
Due to customers for contract work		(470,178	)		(6,938	)		(608,339	)		(16,293	)

	W	1,179,065			26,643			1,265,342			26,264

(c)	Details of the provisions for construction loss as of September 30, 2024 and December 31, 2023 are as follows:


(in millions of Won)	September 30, 2024		December 31, 2023
Construction segment	W	54,772		48,825
Others		819		1,749

	W	55,591		50,574

(d)	For the nine-month period ended September 30, 2024, the total contract revenues and the estimated total contract costs have changed and the impact of such changes on profit before income tax for the current and future periods are as follows:


(in millions of Won)					Changes in profit (loss) of contract
	Changes in total		Changes in estimated
	contract revenues		total contract costs		Net income			Future income		Total
Construction segment	W	854,955		1,071,165		(255,039	)		38,829		(216,210	)
Others		8,903		4,400		3,569			934		4,503

	W	863,858		1,075,565		(251,470	)		39,763		(211,707	)

The above details of impact on profit for the current and future periods are calculated based on the total contract costs estimated considering the events that occurred for the period from the commencement date of the contract to September 30, 2024 and the estimated total contract revenue as of September 30, 2024. The estimated total contract costs and revenue are subject to change in future periods.

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

(e)	Uncertainty of estimates

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.

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.

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

27. Selling and Administrative Expenses

(a)	Other administrative expenses

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


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

	W	717,936		660,505			2,101,583		1,917,000

(b)	Selling expenses

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


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

	W	45,404		54,329		150,565		174,181

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

28. Finance Income and Costs

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


(in millions of Won)	For the three-month periods ended September 30						For the nine-month periods ended September 30
	2024			2023			2024		2023
Finance income
Interest income	W	144,378			126,731			446,113		352,767
Dividend income		49,416			16,773			72,630		46,213
Gain on foreign currency transactions		332,979			354,184			965,803		1,268,870
Gain on foreign currency translations		321,449			(152,643	)		786,405		341,904
Gain on derivatives transactions		117,868			118,673			261,701		257,568
Gain on valuations of derivatives		(262,408	)		91,311			252,873		406,524
Gain on disposal of financial assets at fair value through profit or loss		33,886			30,249			108,613		173,368
Gain on valuation of financial assets at fair value through profit or loss		27,748			(10,960	)		154,385		379,237
Gain on valuation of financial liabilities at fair value through profit or loss		2,713			—			236,931		—
Others		3,364			4,030			8,262		12,706

	W	771,393			578,348			3,293,716		3,239,157

Finance costs
Interest expenses	W	268,101			252,638			787,113		753,583
Loss on foreign currency transactions		375,354			367,003			929,150		1,194,669
Loss on foreign currency translations		(17,473	)		(24,285	)		1,007,861		891,650
Loss on derivatives transactions		92,673			77,300			234,613		257,400
Loss on valuation of derivatives		(2,558	)		8,193			61,055		65,646
Loss on disposal of trade accounts and notes receivable		19,429			14,796			57,778		56,032
Loss on disposal of financial assets at fair value through profit or loss		741			2,765			16,238		12,200
Loss on valuation of financial assets at fair value through profit or loss		17,317			(27,073	)		44,455		14,964
Loss on valuation of financial liabilities at fair value through profit or loss		—			309,681			—		429,985
Others		14,362			12,374			41,055		28,740

	W	767,946			993,392			3,179,318		3,704,869

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

29. Other Non-Operating Income and Expenses

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


(in millions of Won)	For the three-month periods ended September 30					For the nine-month periods ended September 30
	2024			2023		2024		2023
Other non-operating income
Recovery of other bad debt expenses	W	3,184			2,529		6,875		3,084
Gain on disposals of investments in subsidiaries, associates and joint ventures(*1)		2,494			11,718		9,590		196,562
Gain on disposals of tangible assets		2,029			248		14,079		5,747
Gain on valuation of firm commitment		10,586			4,300		41,909		9,862
Reversal of other provisions		5,803			249		8,043		10,007
Premium income		175			1,612		782		10,542
Gain on bargain purchase(*1)		—			—		—		32,965
Gain on disposals of emission rights		(13,341	)		1,796		2		25,855
Others		43,967			13,634		100,313		54,413

	W	54,897			36,086		181,593		349,037

Other non-operating expenses
Other bad debt expenses	W	8,861			8,991		20,460		20,141
Loss on disposals of assets held for sale(*2)		18			896		34,830		103,366
Loss on disposals of investments in subsidiaries, associates and joint ventures		(55	)		4,375		42,539		8,776
Loss on disposals of property, plant and equipment		19,951			22,438		56,291		90,104
Impairment loss on property, plant and equipment		116,278			9,212		179,400		152,469
Impairment loss on intangible assets		351			20		362		4,792
Loss on valuation of firm commitment		9,222			13,951		28,366		36,221
Idle tangible asset expenses		(422	)		3,600		1,919		15,883
Increase to provisions		6,646			711		13,839		7,256
Donations		6,353			11,850		41,424		44,482
Others		11,205			11,314		53,791		47,644

	W	178,408			87,358		473,221		531,134

(*1)

During the nine-month period ended September 30, 2023, investments in QSONE Co.,Ltd., which had been previously classified as investments in associates, were reclassified as investments in subsidiaries. As a result, the Group recognized W184,556 million of gain on disposals of investment in associates and W32,965 million of gain on bargain purchase.

(*2)	During the nine-month period ended September 30, 2023, the Group disposed of CSP - Compania Siderurgica do Pecem, which was classified as assets held for sale, and recognized W102,470 million of loss on disposals of assets held for sale.

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

30. Expenses by Nature

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


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

	W	17,756,608		17,851,974		53,278,030		55,767,067

(*1)	Includes depreciation of investment property.

31. Income Taxes

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

In 2023, the Pillar Two legislation has been enacted in the Republic of Korea, where the controlling company of the Group is domiciled, and will be effective for the fiscal years starting on or after January 1, 2024. Accordingly, the Group calculated the Pillar Two income tax expense for the nine-month period ended September 30, 2024 as the Group is subject to global minimum top-up tax under the application of the OECD’s Pillar Two Model Rules via domestic legislation. As a result of the Group’s assessment on the Pillar Two income taxes, the Group did not recognize any income tax expense for the nine-month period ended September 30, 2024 as the impact of the global minimum top-up tax on the interim condensed consolidated financial statements as of September 30, 2024 would not be significant. Furthermore, the Group applies temporary exception to the recognition and disclosure of deferred taxes arising from the jurisdictional implementation of the Pillar Two Model Rules as prescribed in KIFRS 1012 Income Taxes, and accordingly, the Group did not recognize deferred tax assets and liabilities related to the global minimum top-up tax and does not disclose information related to deferred income tax.

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

32. Earnings per Share

(a)	Basic earnings per share for each of the three-month and nine-month periods ended September 30, 2024 and 2023 are as follows:


(in Won, except per share information)	For the three-month periods ended September 30				For the nine-month periods ended September 30
	2024		2023		2024		2023
Profit attributable to controlling interest	W	452,654,013,695		488,201,057,965		1,523,302,524,204		1,904,353,303,522
Weighted-average number of common shares outstanding(*1)		75,699,376		75,876,207		75,816,833		75,867,296
Basic earnings per share	W	5,980		6,434		20,092		25,101

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


(shares)	For the three-month periods ended September 30						For the nine-month periods ended September 30
	2024			2023			2024			2023
Total number of common shares issued		83,297,040			84,571,230			84,143,400			84,571,230
Weighted-average number of treasury shares		(7,597,664	)		(8,695,023	)		(8,326,567	)		(8,703,934	)

Weighted-average number of common shares outstanding		75,699,376			75,876,207			75,816,833			75,867,296

(b)

The Group has exchangeable bonds that can be exchanged for common stocks with dilutive effects as of September 30, 2024. Considering the anti-dilution effect as of September 30, 2023, the Group did not calculate diluted earnings per share. Diluted earnings per share for the three-month and nine-month periods ended September 30, 2024 are calculated as follows:


(in Won, except share information)	For the three-month period ended September 30, 2024			For the nine-month period ended September 30, 2024
Profit for the period	W	452,654,013,695			1,523,302,524,204
Gain or loss from revaluation of and exchange rate on exchangeable bonds		(8,425,258,347	)		(138,904,137,256	)
Adjusted weighted-average number of common shares outstanding(*1)		78,013,947			78,757,791
Diluted earnings(loss) per share		5,694			17,578

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


(shares)	For the three-month period ended September 30, 2024		For the nine-month period ended September 30, 2024
Weighted-average number of common shares outstanding		75,699,376		75,816,833
Weighted-average number of potential common shares		2,314,571		2,940,958

Adjusted weighted-average number of common shares		78,013,947		78,757,791

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

33. Related Party Transactions

(a)	Related parties of the Group as of September 30, 2024 are as follows:


Type		Company
Investments in associates and joint ventures		[Domestic] POSCO MC MATERIALS, Samcheok Blue Power Co.,Ltd., SNNC and others.

		[Foreign] Roy Hill Holdings Pty Ltd, POSCO-NPS Niobium LLC, KOBRASCO, PT NICOLE METAL INDUSTRY, HBIS-POSCO Automotive Steel Co.,Ltd, South -East Asia Gas Pipeline Company Ltd., 9404-5515 Quebec Inc., AES Mong Duong Power Company Limited, KOREA LNG LTD., Nickel Mining Company SAS and others.

(b)	Significant transactions between the Group and its related parties for each of the nine-month periods ended September 30, 2024 and 2023 are as follows:

For the nine-month period ended September 30, 2024


(in millions of Won)	*Sales and others(1)**						Purchase and others
	Sales		Dividends		Others		Purchase of material		Others
*Associates and joint ventures(1)**
New Songdo International City Development, LLC	W	163,004		—		1,427		—		136
SNNC		84,760		—		12		273,107		1,342
POSCO-SAMSUNG-SLOVAKIA PROCESSING CENTER		37,595		—		—		782		—
Gunggi Green Energy		24,803		—		—		—		5,238
POS-SeAH Steel Wire(Tianjin) CO., Ltd.		10,106		—		—		—		—
POS SeAH Steel Wire(Nantong) Co., Ltd.		38,199		—		—		241		—
South-East Asia Gas Pipeline Company Ltd.		—		41,843		—		—		—
POSCO MC MATERIALS		99,021		1,800		—		5,324		303
Samcheok Blue Power Co., Ltd.		234,445		8,208		687		—		—
Pocheon-Hwado Highway Corp.		56,516		—		—		—		1
POSCO(Guangdong) Automotive Steel Co., Ltd		209,708		—		—		237,225		—
HBIS-POSCO Automotive Steel Co., Ltd		32,117		—		—		16,714		—
Roy Hill Holdings Pty Ltd		249		253,262		9,680		1,362,711		—
Others		83,752		105,101		3,957		145,873		242,498

	W	1,074,275		410,214		15,763		2,041,977		249,518

(*1)	As of September 30, 2024, the Group provides payment guarantees to related parties (see Note 34).

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

For the nine-month period ended September 30, 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	148,716		—		1,484		—		267
SNNC		121,654		—		87		453,382		1,317
Noeul Green Energy		6,499		—		12		—		1,315
POS-SeAH Steel Wire(Tianjin) CO., Ltd.		11,514		—		—		—		—
POS SeAH Steel Wire(Nantong) Co., Ltd.		31,586		—		—		74		—
South-East Asia Gas Pipeline Company Ltd.		—		40,971		—		—		—
POSCO MC MATERIALS		76,283		—		46		5,059		1,564
Samcheok Blue Power Co., Ltd.		410,672		7,494		—		—		—
Pocheon-Hwado Highway Corp.		93,754		—		—		—		—
Roy Hill Holdings Pty Ltd		—		257,174		—		1,261,855		—
Others		338,231		149,580		14,053		426,554		79,748

	W	1,238,909		455,219		15,682		2,146,924		84,211

(*1)	As of September 30, 2023, the Group provides payment guarantees to related parties (see Note 34).

(c)	The balances of receivables and payables arising from significant transactions between the Group and its related parties as of September 30, 2024 and December 31, 2023 are as follows:

September 30, 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	38,624		—		1,674		40,298		—		29,876		29,876
Gunggi Green Energy		6,180		—		10,706		16,886		—		498		498
POSCO(Guangdong) Automotive Steel Co., Ltd		48,629		4,541		—		53,170		41,786		—		41,786
AMCI(WA)PTYLTD		—		140,976		—		140,976		—		—		—
HBIS-POSCOAutomotiveSteelCo.,Ltd		19,446		—		—		19,446		1,664		4,615		6,279
POS-SeAH Steel Wire(Tianjin) CO., Ltd.		3,897		—		—		3,897		—		—		—
Samcheok Blue Power Co., Ltd.		173,141		—		136		173,277		—		76,917		76,917
Nickel Mining Company SAS		—		66,333		377		66,710		—		358		358
POS-SeAH Steel Wire(Nantong) Co., Ltd.		15,028		—		—		15,028		—		—		—
POSCO MC MATERIALS		15,289		—		77		15,366		762		282		1,044
Pocheon-Hwado Highway Corp.		11,161		—		—		11,161		—		3,175		3,175
UITrans LRT Co., Ltd.		1,139		51,051		8,873		61,063		—		2,554		2,554
Roy Hill Holdings Pty Ltd		27,521		—		8,538		36,059		204,841		—		204,841
SNNC		8,559		—		57		8,616		14,069		1,014		15,083
FQM Australia Holdings Pty Ltd		—		265,572		—		265,572		—		—		—
Others		17,775		15,918		125,294		158,987		4,635		9,490		14,125

	W	386,389		544,391		155,732		1,086,512		267,757		128,779		396,536

(*1)	As of September 30, 2024, the Group recognizes an allowance for doubtful account for receivables above amounting to W419,390 million.

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

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-POSCOAutomotiveSteelCo.,Ltd		21,912		—		103		22,015		1,805		8,837		10,642
POS-SeAH Steel Wire(Tianjin) CO., Ltd.		4,086		—		—		4,086		—		—		—
Samcheok Blue Power Co., Ltd.		162,759		—		213		162,972		—		9,605		9,605
Nickel Mining Company SAS		—		64,197		582		64,779		—		358		358
POS-SeAH Steel Wire(Nantong) Co., Ltd.		14,162		—		—		14,162		—		—		—
POSCO MC MATERIALS		13,835		—		82		13,917		1,156		—		1,156
Pocheon-Hwado Highway Corp.		33,944		—		—		33,944		—		7,712		7,712
UITrans LRT Co., Ltd.		—		46,335		8,395		54,730		—		2,398		2,398
Roy Hill Holdings Pty Ltd		88,217		—		22,002		110,219		263,440		—		263,440
SNNC		15,072		—		60		15,132		25,352		1,731		27,083
FQM Australia Holdings Pty Ltd		—		256,938		1,394		258,332		—		—		—
Others		17,499		16,589		124,849		158,937		4,837		5,599		10,436

	W	457,370		494,599		167,630		1,119,599		349,551		75,478		425,029

(*1)	As of December 31, 2023, the Group recognizes an allowance for doubtful account for receivables above amounting to W404,872 million.

(d)	Major financial transactions between the Group and its related parties for the nine-month period ended September 30, 2024 and the year ended December 31, 2023 are as follows:

For the nine-month period ended September 30, 2024


(in millions of Won)	Beginning		Lend		Collect			*Others(1)**			Ending
Associates and joint ventures
UITrans LRT Co., Ltd.	W	46,335		4,718		—			(2	)		51,051
PT. Tanggamus Electric Power		4,826		—		(966	)		345			4,205
Nickel Mining Company SAS		64,197		—		—			2,136			66,333
KRAKATAU POS-CHEM DONG-SUH CHEMICAL		2,579		—		(1,379	)		120			1,320
Hyo-chun Co., Ltd.		2,382		—		—			—			2,382
AMCI (WA) PTY LTD		112,177		4,905		—			23,894			140,976
POS-AUSTEM WUHAN AUTOMOTIVE CO.,LTD		5,158		—		—			127			5,285
FQM Australia Holdings Pty Ltd		256,938		1,531		—			7,103			265,572
POHANG E&E Co. , LTD		1,646		1,082		—			—			2,728
POSCO(Guangdong) Automotive Steel Co., Ltd.		14,332		47,610		(57,859	)		458			4,541

	W	510,570		59,846		(60,204	)		34,181			544,393

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

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

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.

(e)	For each of the nine-month periods ended September 30, 2024 and 2023, there were additional investments in associates and joint ventures. (See Note 9 “Investments in Associates and Joint Ventures”).

(f)	For each of the nine-month periods ended September 30, 2024 and 2023, details of compensation to the Group’s key management officers are as follows:


(in millions of Won)	September 30, 2024		September 30, 2023
Short-term benefits	W	123,032		147,078
Long-term benefits		7,754		6,903
Retirement benefits		19,865		23,183

	W	150,651		177,164

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

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

34. Commitments and Contingencies

(a)	Contingent liabilities

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

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

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

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

(b)	Details of guarantees

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

				USD	5,582,215,154		7,366,291		1,143,210,210		1,508,581
				KRW	1,395,738		1,395,738		695,482		695,482
				IDR	1,054,400,000,000		91,944		933,333,333,333		81,386
				INR	833,764,043		13,140		833,764,043		13,140
				THB	4,854,569,000		197,824		2,790,569,000		113,716
				EUR	46,000,000		67,807		46,000,000		67,807
				AUD	18,422,062		16,809		18,422,062		16,809
				CAD	299,562,500		292,547		129,260,280		126,233

(*1)	The above contingencies include PF contracts, which provide credit enhancement through payment guarantee in relation to the SOC projects as of September 30, 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 September 30, 2024.

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

2)	Details of credit enhancements by type of the Group’s PF business as of September 30, 2024 are as follows:

①

Maintenance projects and others

The 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	43,547		36,289		36,289		—		—		36,289		—		—		—

[Associates and joint ventures]
POSCO Eco & Challenge Co., Ltd.	Other projects	New Songdo International City Development, LLC	Mortgage loan	Debt assumption		538,200		303,400		303,400		15,800		—		—		—		287,600		—

[Others]
POSCO Eco & Challenge Co., Ltd.	Maintenance projects	Bangbae Shindonga Apartment Reconstruction and Maintenance Project Association, etc.	Main PF	Debt assumption		1,013,386		455,915		455,915		81,095		43,498		158,045		—		99,317		73,960
	Other projects	Civic Center PFV	Bridge loan	Debt assumption		45,000		45,000		45,000		—		45,000		—		—		—		—
	Other projects	Daon I & P	Main PF	Joint guarantee		36,000		8,400		8,400		—		—		—		8,400		—		—
	Other projects	Ecocity	Main PF	Debt assumption		53,300		22,800		22,800		—		—		—		22,800		—		—
POSCO DX	Other projects	Jeonnong schoo keeper co. and others	Main PF	Supplemental funding agreement		1,122,320		123,309		418,051		—		—		—		—		—		418,051

						2,270,006		655,424		950,166		81,095		88,498		158,045		31,200		99,317		492,011

					W	2,851,753		995,113		1,289,855		96,895		88,498		194,334		31,200		386,917		492,011

(*1)	The maintenance project mainly consists of reconstruction and condominium construction projects, and other projects consist of construction of office buildings, retail shops, warehouses and educational facilities.

Details of conditional debt acceptance and principal and interest repayment commitments in the event of non-compliance with completion guarantee covenant as of September 30, 2024 are as follows:


(in millions of Won)		Number of constructions		Contract amount		*Contingency amount(1)(2)*		Balance of loans
Maintenance projects	All		23	W	10,835,456		4,038,729		2,055,660
	Between the Group		23		6,914,233		2,635,525		1,184,274

(*1)	The overlapping amount with other credit enhancement measures such as the agreed debt acceptance upon loan origination amounts to W80,198 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.

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

Details of contingencies of claim for damages in the event of non-compliance with construction completion covenant as of September 30, 2024 are as follows:


(in millions of Won)		Number of constructions		Contract amount		*Contingency amount(1)(2)*		Balance of loans
Maintenance projects	All		1	W	305,519		76,000		20,000
	Between the Group		1		305,519		76,000		20,000
Other projects	All		36		10,983,042		8,493,300		6,374,327
	Between the Group		36		10,050,911		7,935,970		5,914,597

	All		37		11,288,561		8,569,300		6,394,327
	Between the Group		37	W	10,356,430		8,011,970		5,934,597

(*1)	The overlapping amount with other credit enhancement measures such as the agreed debt assumption upon loan origination amounts to W8,400 million for the maintenance projects.

(*2)

②

SOC projects


(in millions of Won)
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		2	W	81,883		31,220
	Pocheon-Hwado Highway Corp.(*2)	Providing funds		1		24,923		22,323
POSCO Eco & Challenge Co., Ltd.	UITrans LRT Co., Ltd(*1)	Providing funds and debt assumption		2		205,051		157,807
	Pocheon-Hwado Highway Corp.(*2)	Providing funds		1		319,526		286,182
	POHANG E&E Co., LTD(*3)	Providing funds and supplemental funding agreement		2		71,930		47,664
	Pureun Tongyeong Enviro Co., Ltd.(*3)	Providing funds		1		22,714		11,195
	Pure Gimpo. Co., Ltd(*3)	Providing funds		1		51,565		23,715
	Clean Iksan Co., Ltd(*3)	Providing funds		1		44,054		22,625

				11		821,646		602,731

[Others]
POSCO DX	Western Inland highway CO., LTD.	Providing funds		1		47,348		25,862
	Busan Sanseong Tunnel	Refinancing		1		7,621		13,504
POSCO Eco & Challenge Co., Ltd.	Western Seoul highway CO., LTD. and others	Supplemental funding agreement		11		62,720		29,391
	Western Inland highway CO., LTD. and others	Providing funds		42		2,752,922		1,364,594
	Pohang Youngil Bay New Port	Debt assumption		1		2,250		1,440
	Busan Sanseong Tunnel	Refinancing		1		35,296		26,750

				57		2,908,157		1,461,541

				68	W	3,729,803		2,064,272

(*1)	The Group provides a funding commitment of W79,625 million (including other shares: W279,900 million) equivalent to the Group’s share of the loan balance for the private investment project.

(*2)	The Group provides a funding commitment of W308,505 million (including other shares: W558,077 million) equivalent to the Group’s share of the loan balance for the private investment project.

(*3)	The Group provides a funding commitment of W101,426 million (including other shares: W184,377 million) equivalent to the Group’s share of the loan balance for the private investment project.

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

3)	Other guarantees

①

As of September 30, 2024, the payment guarantees that the Group provides to clients, such as contract 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

10,301

TRADE INSURANCE CORPORATION and others

POSCO WIDE Co., Ltd

POSCO Eco & Challenge Co., Ltd.

Guarantee on performance and others

255

Seoul Guarantee Insurance

POSCO DX

Guarantee on performance

Seoul Guarantee Insurance

POSCO STEELEON CO., LTD.

Guarantee on performance

Seoul Guarantee Insurance

POSCO INTERNATIONAL Corporation

Guarantee on performance

134

Seoul Guarantee Insurance

10,741

[Associates and joint ventures]

POSCO Eco & Challenge Co., Ltd.

PT. Tanggamus Electric Power

Letter of credit

2,691

Hana Bank

PT. Wampu Electric Power

Letter of credit

2,375

Hana Bank

Pocheon-Hwado Highway Corp.

Guarantee on performance for projects

23,315

Construction Guarantee Cooperative

28,381

[Others]

POSCO Eco & Challenge Co., Ltd.

DAEWOO ENGINEERING & CONSTRUCTION Co., Ltd and others

Guarantee on performance for construction and others

7,610,135

7,607,678

Construction Guarantee Cooperative and others

POSCO WIDE Co., Ltd

Pureun Paju Co., Ltd. and others

Guarantee on performance and others

17,519

Seoul Guarantee Insurance

POSCO M-TECH

SAMA ALUMINIUM CO., LTD

Guarantee on performance

Seoul Guarantee Insurance

Shinan Green Energy Co., LTD.

Sinan-gun Jeollanam-do

Guarantee on performance

2,963

Seoul Guarantee Insurance

POSCO DX

Western Inland highway CO., LTD. and others

Supplemental funding agreement and others

1,685

Seoul Guarantee Insurance

7,632,385

7,629,928

7,671,507

7,669,050

②

As of September 30, 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	7,066,677		7,066,677
Engineering guarantee insurance	Guarantee on performance for EPC contracts and others		901,168		461,499
Seoul Guarantee Insurance	Construction performance guarantee and others		560,144		560,144
Korea Housing & Urban Guarantee Corporation	Housing Guarantee and others		5,201,956		5,196,705
Woori Bank and others	Guarantee on performance for contracts		1,986,365		791,897
Korea software financial cooperative	Guarantee on performance for contracts		121,221		121,221
Seoul Guarantee Insurance	Guarantee on performance for contracts		32,738		32,738
Construction Guarantee Cooperative	Guarantee on performance for contracts		4,997		4,997

		W	15,875,266		14,235,878

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

(c)	Other commitments

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


Company		Description

POSCO HOLDINGS INC.		As of September 30, 2024, POSCO HOLDINGS INC. entered into a commitment with KOREA ENERGY AGENCY for long-term foreign currency borrowings, which are limited up to the amount of USD 1.05 million. The borrowing is related 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 September 30, 2024, the ending balance of the borrowing amounts to USD 1.02 million.

		POSCO HOLDINGS INC. has deposited 83,671 treasury shares for exchange with the Korea Securities Depository in relation to foreign currency exchangeable bonds as of September 30, 2024.

POSCO		POSCO entered into long-term contracts to purchase iron ore, coal, nickel and others. The long-term purchase contract period is more than two years for iron ore, three years for coal, and one year for nickel. These contracts provide for periodic price adjustments based on the market price. As of September 30, 2024, 30 million tons of iron ore and 9 million tons of coal remained to be purchased under such long-term contracts.

		POSCO entered into an agreement with Tangguh Liquefied Natural Gas (LNG) Consortium in Indonesia to purchase 550 thousand tons of LNG annually for 20 years commencing in August 2005. The purchase price is subject to change, based on changes of the monthly standard oil price (JCC) and with a price ceiling.

		POSCO has a long-term service contract for the transportation of raw material. As of September 30, 2024, there are 36 vessels under contract, and the average remaining contract period is about 6 years.

		POSCO entered into an agreement (LNG SPA) with POSCO INTERNATIONAL SINGAPORE PTE LTD. to purchase 370 thousand tons of LNG annually for 15 years commencing in November 2026. The purchase price is subject to change based on changes of U.S. Henry Hub Natural Gas Spot Price. POSCO has extension option of extending the purchase contract by five years.

POSCO INTERNATIONAL Corporation		POSCO INTERNATIONAL Corporation operates a ship-to-ship business in which ships are chartered from ship’s owners and leased out to shippers. The 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 September 30, 2024, the amount which is exposed to the ship purchase agreements entered into is USD 31 million.

		The Company invested in the Ambatovy Nickel Project (DMSA/AMSA) in Madagascar through the Korea Ambatovy Consortium (KAC) formed with Korea Mine Rehabilitation and Mineral Resources Corporation (KOMIR) and STX Corporation. SHERRITT 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 September 30, 2024, according to the investor agreement for the construction of Samcheok Thermal Power Plant, POSCO Eco & Challenge Co., Ltd. is obligated to make contributions for core capital, unqualified 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 September 30, 2024, the Company recognized W196,845 million as other financial liabilities related to the terms of this agreement.

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

(d)	Litigation in progress

The Group is involved in 404 lawsuits amounting in total to W915.5 billion as defendant as of September 30, 2024, which arise from the ordinary course of business such as claim for confirmation of employee status. The Group has recognized provisions amounting to W46.9 billion for 38 lawsuits based on its reliable estimate of outflow of resources. However, the Group has not recognized any provisions for the other lawsuits and claims since the Group believes that it does not have a present obligation as of September 30, 2024.

(e)	Other contingencies

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


Company		Description

POSCO HOLDINGS INC.		POSCO HOLDINGS INC. has provided 3 blank checks to Korea Energy Agency as collateral for long-term foreign currency borrowings.

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

POSCO INTERNATIONAL Corporation		As of September 30, 2024, POSCO INTERNATIONAL Corporation has provided 24 blank promissory notes and 18 blank checks to Korea Energy Agency and others as collateral for the guarantee on performance for contracts and others.

POSCO Eco & Challenge Co., Ltd.		As of September 30, 2024, POSCO Eco & Challenge Co., Ltd. has provided 38 blank checks and 4 blank promissory notes as collateral for agreements and outstanding loans.

POSCO DX		As of September 30, 2024, POSCO DX has provided 7 blank checks to financial institutions as collateral for the guarantee on performance for contracts and others.

35. Cash Flows from Operating Activities

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


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

	W	(450,846	)		(1,695,289	)

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

36. Operating Segments

(a)

The Group’s operating businesses are organized based on the nature of markets and customers. During the nine-month period ended September 30, 2024, the Group changed its internal organization and internal reporting structures. As a result, operating segments were re-categorized according to the revised 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

Secondary battery Materials		EV battery materials such as lithium, nickel, negative/cathode materials, and hydrogen business

Others		POSCO HOLDINGS. INC., Controlling company and Investment business

(b)

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

(c)	The information about reportable segments as of and for each of the nine-month periods ended September 30, 2024 and 2023 is as follows:

For the nine-month period ended September 30, 2024


			Infrastructure						Secondary bettery materials
(in millions of Won)	Steel		Trading		Construction		Logistics and others		Secondary bettery materials			Others		Total
External revenues	W	29,436,774		17,200,766		5,586,634		279,312		2,321,868			57,645		54,882,999
Internal revenues		17,125,375		15,402,898		1,889,536		2,763,952		746,939			1,485,193		39,413,893
Inter segment revenues		11,161,623		7,119,429		1,801,395		2,752,776		721,458			1,467,893		25,024,574
Total revenues		46,562,149		32,603,664		7,476,170		3,043,264		3,068,807			1,542,838		94,296,892
Segment profits		697,542		659,154		62,528		97,423		(65,415	)		1,442,488		2,893,720

For the nine-month period ended September 30, 2023


			Infrastructure						Secondary bettery materials
(in millions of Won)	Steel		Construction		Trading		Energy and others		Secondary bettery materials		Others		Total
External revenues	W	30,686,602		18,279,949		6,127,712		338,175		2,939,530		91,112		58,463,080
Internal revenues		17,432,758		14,341,819		1,345,284		2,464,390		728,789		1,255,851		37,568,891
Inter segment revenues		11,693,650		6,790,495		1,263,327		2,462,010		725,224		1,241,031		24,175,737
Total revenues		48,119,360		32,621,768		7,472,996		2,802,565		3,668,319		1,346,963		96,031,971
Segment profits		1,374,771		682,697		138,130		119,966		20,848		897,578		3,233,990

POSCO HOLDINGS INC. and its subsidiaries

Notes to the interim condensed consolidated financial statements, continued

September 30, 2024 and 2023 (Unaudited)

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


(in millions of Won)	September 30, 2024			September 30, 2023
Total profit for reportable segments	W	2,893,720			3,233,990
Corporate fair value adjustments		(30,389	)		160,686
Elimination of inter-segment profit		(1,212,477	)		(1,227,904	)
Income tax expense		492,511			695,498

Profit before income tax expense	W	2,143,365			2,862,270

37. Events After the Reporting Period

(a)	Pursuant to the resolution of the Board of Directors on November 1, 2024, the Company decided to pay interim cash dividends of W2,500 per common share (total dividend: W189.1 billion).

(b)

Pursuant to the resolution of the Board of Directors on November 1, 2024, the Company decided to acquire W500 billion of the W600 billion in hybrid bonds to be issued by POSCO Future M Co., Ltd., the subsidiary for the purpose of strengthening financial soundness, etc. The issuance and acquisition of these hybrid bonds are scheduled for December 18, 2024.

(c)

Pursuant to the resolution of the Board of Directors on November 1, 2024, the Company decided to sell the shares of four companies including POSCO Maharashtra Steel Private Limited in order to support the follow-up actions of vertical spin-off and enhance the management efficiency of the steel business within the Group.

(d)	There was fire incident at 3FINEX plant of POSCO Co., Ltd., the subsidiary, on November 10, 2024. The extent of the damage and the details of the insurance coverage under the property insurance are currently being verified.

POSCO HOLDINGS INC.

Interim condensed separate financial statements

for the nine-month period ended September 30, 2024

with the independent auditor’s review report

Table of Contents


	Page
Report on review of interim condensed separate financial statements		1

Interim condensed separate financial statements		3

Interim condensed separate statements of financial position		4

Interim condensed separate statements of comprehensive income		6

Interim condensed separate statements of changes in equity		7

Interim condensed separate statements of cash flows		8

Notes to the interim condensed separate financial statements		10

LOGO

Report on review of interim condensed separate financial statements

(English translation of a report originally issued in Korean)

The Stockholders and Board of Directors

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

Management’s responsibility for the interim condensed separate financial statements

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

Auditor’s responsibility

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

Conclusion

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

LOGO

Other matters

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

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

November 14, 2024

This review report is effective as of November 14, 2024, the independent auditor’s review report date. Accordingly, certain material subsequent events 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.

POSCO HOLDINGS INC.

Interim condensed separate financial statements

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

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

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

Kisub Jung

Chief Strategy Officer

POSCO HOLDINGS INC.

POSCO HOLDINGS INC.

Interim condensed separate statements of financial position

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


(in millions of Won)	Notes		September 30, 2024 (unaudited)		December 31, 2023
Assets
Cash and cash equivalents		18	W	481,718		376,914
Trade accounts and notes receivable, net		4,18,22		152,115		238,332
Other receivables, net		5,18,29		31,473		68,821
Other short-term financial assets		6,18		2,550,702		3,940,743
Current income tax assets				15,208		32,015
Other current assets		11		2,854		1,074

Total current assets				3,234,070		4,657,899

Other receivables, net		5,18,29		13,316		6,955
Other long-term financial assets		6,18		893,797		1,131,074
Investments in subsidiaries, associates and joint ventures		7		45,958,396		45,321,370
Investment property, net		8		305,182		309,900
Property, plant and equipment, net		9		314,765		197,787
Intangible assets, net		10		18,524		19,341
Defined benefit assets, net		16		1,944		—
Other non-current assets		11		8,632		1,872

Total non-current assets				47,514,556		46,988,299

Total assets			W	50,748,626		51,646,198

(continued)

POSCO HOLDINGS INC.

Interim condensed separate statements of financial position, continued

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


(in millions of Won)	Notes	September 30, 2024 (unaudited)			December 31, 2023
Liabilities
Short-term borrowings and current installments of long-term borrowings	12,18	W	39,919			1,756,691
Other current payables	13,18,22,29		42,889			39,739
Other short-term financial liabilities	14,18,29		14,113			1,571
Provisions	15		7,579			14,983
Other current liabilities	17,22		6,203			6,686

Total current liabilities			110,703			1,819,670

Long-term borrowings, excluding current installments	12,18		1,347			1,316
Other non-current payables	13,18,29		30,492			26,804
Other long-term financial liabilities	14,18,29		—			6,968
Defined benefit liabilities, net	16		—			4,283
Deferred tax liabilities			2,333,361			2,281,500
Long-term provisions	15,30		1,710			2,634
Other non-current liabilities	17,22		2,618			3,158

Total non-current liabilities			2,369,528			2,326,663

Total liabilities			2,480,231			4,146,333

Equity
Share capital	19		482,403			482,403
Capital surplus	19		1,367,990			1,370,557
Accumulated other comprehensive income (loss)	20		(23,327	)		30,678
Treasury shares	21		(1,550,862	)		(1,889,658	)
Retained earnings			47,992,191			47,505,885

Total equity			48,268,395			47,499,865

Total liabilities and equity		W	50,748,626			51,646,198

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

POSCO HOLDINGS INC.

Interim condensed separate statements of comprehensive income

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

ended September 30, 2024 and 2023 (Unaudited)


(in millions of Won, except per share informations)		For the three-month period ended September 30 (Unaudited)						For the nine-month period ended September 30 (Unaudited)
	Notes	2024			2023			2024			2023
Operating revenue	22,29	W	402,270			473,685			1,460,868			1,268,512
Operating expenses	23,26,29		(92,447	)		(77,730	)		(281,956	)		(232,845	)

Operating profit			309,823			395,955			1,178,912			1,035,667

Finance income and costs	18,24
Finance income			56,357			46,435			399,639			251,632
Finance costs			(17,649	)		(321,519	)		(80,106	)		(527,402	)
Other non-operating income and expenses	25,26,29
Other non-operating income			676			2,407			2,243			11,478
Other non-operating expenses			(699	)		(6,077	)		(5,970	)		(7,515	)

Profit before income tax			348,508			117,201			1,494,718			763,860
Income tax benefit (expense)	27		(13,513	)		36,184			(26,146	)		121,571

Profit			334,995			153,385			1,468,572			885,431

Other comprehensive income (loss)
Items that will not be reclassified subsequently to profit or loss:
Remeasurements of defined benefit plans	16		(11	)		(41	)		(243	)		(254	)
Net changes in fair value of equity investments at fair value through other comprehensive income	6,18,20		30,727			96,590			(35,849	)		175,656

Total comprehensive income		W	365,711			249,934			1,432,480			1,060,833

Earnings per share (in Won)	28
Basic earnings per share (in Won)			4,425			2,022			19,370			11,671
Diluted earnings per share (in Won)		W	4,186			2,022			16,883			11,671

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

POSCO HOLDINGS INC.

Interim condensed separate statements of changes in equity

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


(in millions of Won)	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		—		—			—			—			885,431			885,431
Other comprehensive income (loss)
Remeasurements of defined benefit plans, net of tax		—		—			—			—			(254	)		(254	)
Net changes in fair value of equity investments at fair value through other comprehensive income, net of tax		—		—			175,320			—			336			175,656
Transactions with owners of the Company, recognized directly in equity:
Year-end dividends		—		—			—			—			(151,698	)		(151,698	)
Interim dividends		—		—			—			—			(379,381	)		(379,381	)
Disposal of treasury shares		—		4,082			—			5,864			—			9,946
Share-based payment		—		3,084			—			—			—			3,084

Balance as of September 30, 2023	W	482,403		1,368,060			(13,481	)		(1,886,444	)		47,764,109			47,714,647

Balance as of January 1, 2024	W	482,403		1,370,557			30,678			(1,889,658	)		47,505,885			47,499,865
Comprehensive income:
Profit		—		—			—			—			1,468,572			1,468,572
Other comprehensive income (loss)
Remeasurements of defined benefit plans, net of tax		—		—			—			—			(243	)		(243	)
Net changes in fair value of equity investments at fair value through other comprehensive income, net of tax		—		—			(54,005	)		—			18,156			(35,849	)
Transactions with owners of the Company, recognized directly in equity:
Year-end dividends		—		—			—			—			(189,691	)		(189,691	)
Interim dividends		—		—			—			—			(379,381	)		(379,381	)
Acquisition of treasury shares		—		—			—			(92,311	)		—			(92,311	)
Retirement of treasury shares		—		—			—			431,107			(431,107	)		—
Share-based payment		—		(2,567	)		—			—			—			(2,567	)

Balance as of September 30, 2024	W	482,403		1,367,990			(23,327	)		(1,550,862	)		47,992,191			48,268,395

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

POSCO HOLDINGS INC.

Interim condensed separate statements of cash flows

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


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

Net cash provided by operating activities		W	1,378,183			1,227,386

(continued)

POSCO HOLDINGS INC.

Interim condensed separate statements of cash flows, continued

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


(in millions of Won)		For the nine-month period ended
	Notes	September 30, 2024 (unaudited)			September 30, 2023 (unaudited)
Cash flows from investing activities
Decrease in deposits		W	3,050,000			600,000
Proceeds from disposal of short-term financial instruments			3,219,599			4,872,223
Collection of short-term loans			—			1,249
Collection of long-term loans			—			2,000
Proceeds from disposal of equity securities			194,230			—
Proceeds from disposal of other securities			5,663			564
Proceeds from disposal of investments in subsidiaries, associates and joint ventures			13,353			869,550
Proceeds from disposal of intangible asstes			1,677			—
Collection of short-term lease security deposits			491			—
Increase in deposits			(2,550,000	)		(2,190,000	)
Acquisition of short-term financial instruments			(2,243,699	)		(4,661,764	)
Acquisition of long-term financial instruments			—			(2	)
Increase in long-term loans			(106	)		—
Acquisition of other securities			(15,932	)		(21,492	)
Acquisition of investment in subsidiaries, associates and joint ventures			(620,852	)		(895,987	)
Acquisition of investment properties			(1,200	)		(54,834	)
Acquisition of property, plant and equipment			(122,640	)		(12,613	)
Acquisition of intangible asstes			(2,522	)		(2,966	)
Payment of short-term lease security deposits			(536	)		—
Net cash provided by (used in) investing activities		W	927,526			(1,494,072	)

Cash flows from financing activities
Increase in long-term financial liabilities			3,148			3,781
Payment of cash dividends			(569,458	)		(531,444	)
Repayment of current installments of long-term borrowings			(1,542,400	)		—
Acquisition of treasury shares			(92,311	)		—

Net cash used in financing activities		W	(2,201,021	)		(527,663	)

Effect of exchange rate fluctuation on cash held			116			—
Net increase (decrease) in cash and cash equivalents			104,804			(794,349	)
Cash and cash equivalents at beginning of the period			376,914			1,415,201

Cash and cash equivalents at end of the period		W	481,718			620,852

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

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements

September 30, 2024 and 2023 (Unaudited)

1. Reporting Entity

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

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

2. Basis of preparation

Statement of compliance

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

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

These condensed interim financial statements are separate interim financial statements prepared in accordance with KIFRS 1027 Separate 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.

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

September 30, 2024 and 2023 (Unaudited)

Use of estimates and judgments

(a)	Judgments, assumptions and estimation uncertainties

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

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

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

(b)	Measurement of fair value

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

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.

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

September 30, 2024 and 2023 (Unaudited)

•

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

•

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.

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

September 30, 2024 and 2023 (Unaudited)

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

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

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

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

September 30, 2024 and 2023 (Unaudited)

4. Trade Accounts and Notes Receivable

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


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

	W	152,115		238,332

5. Other Receivables

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


(in millions of Won)	September 30, 2024			December 31, 2023
Current
Other accounts receivable	W	9,017			51,530
Others(*1)		26,449			21,193
Less: Allowance for doubtful accounts(*1)		(3,993	)		(3,902	)

	W	31,473			68,821

Non-current
Long-term loans(*1)	W	222,491			217,349
Long-term other accounts receivable		13,016			6,945
Others		300			10
Less: Allowance for doubtful accounts(*1)		(222,491	)		(217,349	)

	W	13,316			6,955

(*1)	The Company recognized an allowance for doubtful accounts for all of the other receivables from FQM Australia Holdings Pty Ltd., an associate, due to low possibility of collecting these receivables during the year ended December 31, 2023.

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

September 30, 2024 and 2023 (Unaudited)

6. Other Financial Assets

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


(in millions of Won)	September 30, 2024		December 31, 2023
Current
Deposit instruments	W	1,250,000		1,750,000
Short-term financial instruments		1,300,702		2,190,743

	W	2,550,702		3,940,743

Non-current
Equity securities	W	677,686		926,752
Other securities		216,109		204,320
Deposit instruments		2		2

	W	893,797		1,131,074

(b)	Equity securities as of September 30, 2024 and December 31, 2023 are as follows:


(in millions of Won)	September 30, 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		464,139		(9,823	)		464,139		462,775
KB Financial group Inc.		—		—		—		—		—			—		209,016
CSN Mineracao S.A.		102,186,675		1.86		206,265		171,203		(35,062	)		171,203		212,617

						680,227		635,342		(44,885	)		635,342		884,408

Non-marketable equity securities
PLANTEC Co,. Ltd		18,337,912		10.99		19,437		40,362		20,925			40,362		40,362
Intellectual Discovery Co., Ltd		200,000		6.00		5,000		1,350		(3,650	)		1,350		1,350
Pos-hyundai Steel Manufacturing India Private Limited		1,055,496		6.00		612		612		—			612		612
S&M MEDIA Co., Ltd		2,000		2.67		20		20		—			20		20
XG Sciences		300,000		5.06		2,724		—		(2,724	)		—		—

						27,793		42,344		14,551			42,344		42,344

					W	708,020		677,686		(30,334	)		677,686		926,752

7. Investments in Subsidiaries, Associates and Joint ventures

(a)	Investments in subsidiaries, associates and joint ventures of as of September 30, 2024 and December 31, 2023 are as follows:


(in millions of Won)	September 30, 2024		December 31, 2023
Subsidiaries	W	43,034,011		42,519,521
Associates		230,552		230,552
Joint ventures		2,693,833		2,571,297

	W	45,958,396		45,321,370

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

September 30, 2024 and 2023 (Unaudited)

(b)	Details of subsidiaries and carrying amounts as of September 30, 2024 and December 31, 2023 are as follows:


				September 30, 2024				December 31, 2023
(in millions of Won)	Country		Principal operations	Ownership (%)		Book value		Book value
[Domestic]
POSCO		Korea	Steel, rolled products, and plates manufacturing and sales		100.00	W	29,714,703		29,698,113
POSCO INTERNATIONAL Corporation		Korea	Trading and natural resources exploration		70.71		3,740,020		3,740,020
POSCO Eco & Challenge Co., Ltd.		Korea	Engineering and construction		52.80		1,014,963		1,013,453
POSCO Venture Capital Co., Ltd.		Korea	Investment in venture companies		100.00		115,931		115,931
POSCO FUTURE M CO.,LTD.		Korea	Refractory and anode/cathode material manufacturing and sales		59.72		895,687		895,687
POSCO WIDE Co., Ltd.		Korea	Business facility maintenance		100.00		308,843		308,843
POSCO DX		Korea	Computer hardware and software distribution		65.47		70,990		70,990
Busan E&E Co., Ltd.		Korea	Municipal solid waste fuel and power generation		70.00		30,148		30,148
POSOCO-Pilbara LITHIUM SOLUTION Co., Ltd.		Korea	Lithium manufacturing and sales		82.00		314,940		314,940
POSCO LITHIUM SOLUTION		Korea	Lithium Hydroxide manufacturing and sales		100.00		287,550		287,550
QSONE Co.,Ltd.		Korea	Real estate rental and facility management		100.00		238,478		238,478
POSCO CNGR Nickel Solution(*1)		Korea	Nickel refining		60.00		49,520		—
POSCO ZT AIR SOLUTION(*2)		Korea	Manufacturing and Sales of High-Purity Rare Gases		75.10		63,308		—
Others (11 companies)							465,945		442,847

							37,311,026		37,157,000

[Foreign]
POSCO WA PTY LTD.		Australia	Iron ore sales and mine development		100.00		646,574		646,574
POSCO Maharashtra Steel Private Limited		India	Steel manufacturing and sales		100.00		722,514		722,514
POSCO Canada Ltd.		Canada	Coal sales		100.00		560,879		560,879
POSCO AUSTRALIA PTY LTD.		Australia	Iron ore sales and mine development		100.00		330,623		330,623
POSCO (Zhangjiagang) Stainless Steel Co.,Ltd.		China	Stainless steel manufacturing and sales		58.60		283,792		283,792
POSCO-China Holding Corp.		China	Holding company		100.00		593,816		593,816
POSCO America Corporation		USA	Researching and consulting		99.45		192,136		192,136
POSCO VST CO., LTD.		Vietnam	Stainless steel manufacturing and sales		95.65		144,552		144,552
POSCO Asia Co., Ltd.		Hong Kong	Activities Auxiliary to financial service		100.00		117,690		117,690
POSCO ASSAN TST STEEL INDUSTRY		Turkiye	Steel manufacturing and sales		60.00		71,686		71,686
POSCO JAPAN Co., Ltd.		Japan	Steel marketing, demand development, and technology research		100.00		68,410		68,410
Qingdao Pohang Stainless Steel Co., Ltd.		China	Stainless steel manufacturing and sales		70.00		65,982		65,982
POSCO(Suzhou) Automotive Processing Center Co., Ltd.		China	Steel manufacturing and sales		90.00		62,469		62,469
POSCO AFRICA (PROPRIETARY) LIMITED		South Africa	Mine development		100.00		50,297		50,297
POSCO Argentina S.A.U.(*3)		Argentina	Mineral exploration, manufacturing and sales		100.00		1,510,551		1,150,087
Others (18 companies)							301,014		301,014

							5,722,985		5,362,521

						W	43,034,011		42,519,521

(*1)	During the nine-month period ended September 30, 2024, the Company acquired 60% of shares of POSCO CNGR Nickel Solution Co., Ltd. at W49,520 million and classified the acquired equity interests as investments in subsidiaries.

(*2)	During the nine-month period ended September 30, 2024, the Company acquired 75.1% of shares of POSCO ZT AIR SOLUTION at W63,308 million and classified the acquired equity interests as investments in subsidiaries.

(*3)	During the nine-month period ended September 30, 2024, the Company acquired W360,464 million of additional investment in subsidiaries by participating in POSCO Argentina S.A.U.‘s capital increase to invest in an Argentine brine lithium commercialization plant.

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

September 30, 2024 and 2023 (Unaudited)

(c)	Details of associates and carrying amounts as of September 30, 2024 and December 31, 2023 are as follows:


(in millions of Won)			September 30, 2024				December 31, 2023
	Country	Principal operations	Ownership (%)		Book value		Book value
[Domestic]
POSCO JK SOLID SOLUTION CO., LTD.	Korea	Material manufacturing for rechargeable battery		40.00	W	26,025		26,025
Others (5 companies)						12,111		12,111

						38,136		38,136

[Foreign]
9404-5515 Quebec Inc.(*1)	Canada	Investments		12.61		156,194		156,194
ZHEJIANG HUAYOU-POSCO ESM CO., LTD(*1)	China	Precursors manufacturing and sales		8.29		22,423		22,423
Others (3 companies)						13,799		13,799

						192,416		192,416

					W	230,552		230,552

(*1)	As of September 30, 2024, the entities are classified as associates since the Company has significant influence over the investees although the Company’s percentage of ownership is less than 20%, considering the structure of the entities’ Board of Directors and others.

(d)	Details of joint ventures and carrying amounts as of September 30, 2024 and December 31, 2023 are as follows:


(in millions of Won)				September 30, 2024				December 31, 2023
	Country		Principal operations	Ownership (%)		Book value		Book value
Roy Hill Holdings Pty Ltd(*1)		Australia	Natural resources exploration		10.00	W	1,225,464		1,225,464
POSCO-NPS Niobium LLC		USA	Foreign investments in mining		50.00		364,609		364,609
KOBRASCO		Brazil	Steel materials manufacturing and sales		50.00		98,962		98,962
HBIS-POSCO Automotive Steel Co., Ltd		China	Steel manufacturing and sales		50.00		235,207		235,207
BX STEEL POSCO Cold Rolled Sheet Co., Ltd.		China	Steel manufacturing and sales		25.00		63,866		63,866
PT NICOLE METAL INDUSTRY(*2)		Indonesia	Nickel Smelting		49.00		413,555		293,361
Hydrogen Duqm LLC(*3)		Oman	Green Hydrogen/Ammonia product business development		44.80		2,342		—
Nickel Mining Company SAS		New Caledonia	Raw material manufacturing and sales		49.00		189,197		189,197
SNNC		Korea	STS material manufacturing and sales		49.00		100,631		100,631

						W	2,693,833		2,571,297

(*1)	As of September 30, 2024 and December 31, 2023, the investments in joint ventures amounting to W1,225,464 million were provided as collateral in relation to revolving loan of Roy Hill Holdings Pty Ltd.

(*2)	During the nine-month period ended September 30, 2024, the Company acquired W120,194 million of additional investment in joint ventures by participating in PT NICOLE METAL INDUSTRY‘s capital increase to invest in a nickel dry smelting plant in Indonesia.

(*3)	During the nine-month period ended September 30, 2024, the Company acquired 44.8% of shares in Hydrogen Duqm LLC, for W2,342 million and classified them as an investment in joint ventures.

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

September 30, 2024 and 2023 (Unaudited)

8. Investment Property

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

(a)	For the nine-month period ended September 30, 2024


(in millions of Won)	Beginning		Acquisition		*Depreciation(1)**			*Others(2)**		Ending
Land	W	193,446		1,200		—			50		194,696
Buildings		101,229		—		(5,435	)		77		95,871
Structures		15,225		—		(618	)		8		14,615

	W	309,900		1,200		(6,053	)		135		305,182

(*1)	The useful life and depreciation method of investment property are identical to those of property, plant and 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)**			*Others(2)**		Ending
Land	W	131,069		54,891		—			7,486		193,446
Buildings		83,528		—		(7,078	)		24,779		101,229
Structures		6,102		—		(610	)		9,733		15,225

	W	220,699		54,891		(7,688	)		41,998		309,900

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

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

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

September 30, 2024 and 2023 (Unaudited)

9. Property, Plant and Equipment

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

(a)	For the nine-month period ended September 30, 2024


(in millions of Won)	Beginning		Acquisitions		Depreciation			*Others(1)**			Ending
Land	W	50,197		4		—			(50	)		50,151
Buildings		29,539		37		(1,427	)		(78	)		28,071
Structures		7,748		1		(302	)		(7	)		7,440
Machinery and equipment		27,549		276		(1,543	)		—			26,282
Vehicles		63		—		(16	)		—			47
Furniture and fixtures		13,485		149		(878	)		—			12,756
Construction-in-progress		69,206		120,812		—			—			190,018

	W	197,787		121,279		(4,166	)		(135	)		314,765

(*1)	Represents assets transferred from 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.

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

September 30, 2024 and 2023 (Unaudited)

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

Right-of-use assets

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

Amount recognized in profit or loss

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


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

	W	3,408		1,955		10,402		3,207

10. Intangible Assets

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

(a)	For the nine-month period ended September 30, 2024


(in millions of Won)	Beginning		Acquisitions		Disposals			Amortization			*Others(2)**			Ending
Intellectual property rights	W	576		—		—			(124	)		257			709
Membership(*1)		11,618		—		(1,546	)		—			—			10,072
Development expense		2,905		—		—			(982	)		1,866			3,789
Construction-in-progress		3,565		2,248		(239	)		—			(2,123	)		3,451
Other intangible assets		677		—		—			(174	)		—			503

	W	19,341		2,248		(1,785	)		(1,280	)		—			18,524

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

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

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

September 30, 2024 and 2023 (Unaudited)

(b)	For the year ended December 31, 2023


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

	W	15,902		4,744		(1,247	)		(58	)		19,341

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

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

11. Other Assets

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


(in millions of Won)	September 30, 2024		December 31, 2023
Current
Advance payments	W	232		208
Prepaid expenses		2,622		865

		2,854		1,073

Non-current
Long-term advance payments		8,069		1,843
Long-term prepaid expenses		557		21
Others		6		8

	W	8,632		1,872

12. Borrowings

(a)	Borrowings as of September 30, 2024 and December 31, 2023 are as follows:


(in millions of Won)	September 30, 2024		December 31, 2023
Current
Exchangeable bonds	W	39,919		1,756,691
Non-current
Long-term borrowings	W	1,347		1,316

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

September 30, 2024 and 2023 (Unaudited)

(b)	Current portions of debentures as of September 30, 2024 and December 31, 2023 are as follows:

(in millions of Won)

Lenders

Issuance
date

Maturity
date

Annual
interest rate (%)

September 30, 2024

December 31, 2023

Exchangeable bonds(*1)

Foreign currency
exchangeable bonds

2021.09.01.

2026.09.01.

—

39,919

1,756,691

(*1)	The issuance conditions of the exchangeable bonds issued by the Company are as follows. As of September 30, 2024, exchangeable bonds are reclassified as current liabilities because the bondholders’ put option for redemption has become exercisable within 12 months.


		Foreign currency exchangeable bonds
Type of bond		Exchangeable bonds

Aggregate principal amount(*1)		EUR 27,100,000

Interest rate		- Coupon rate : -

		- Yield to maturity : (0.78%)

Maturity date		September 1, 2026

Redemption		- Redemption at maturity : Outstanding bond principal, which is not repaid early or which call option is not excercised on, is repaid at maturity as a lump sum

		- Prepayment : The issuer has call option and the bondholders have put option

Exchange rate		100%

Exchange price (Won/share)(*2)		443,680

Underlying shares		Registered common shares(treasury shares)

Exchange period		From October 12, 2021 to August 22, 2026

Adjustments for exchange price		Adjusting the exchange price according to the terms and conditions of the bond in the events of reason for adjusting the exchange price such as, bonus issue, share split, share consolidation, change of share type, issuance of 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

(*1)	Due to put option exercised by bondholders, EUR 1,038,800,000 of EUR 1,065,900,000 in aggregate principal amount of exchangeable bonds was redeemed during the nine-month period ended September 30, 2024.

(*2)	The exchange price has changed due to cash dividends paid during the nine-month period ended September 30, 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.

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

September 30, 2024 and 2023 (Unaudited)

(c)	Long-term borrowings and others excluding current portion as of September 30, 2024 and December 31, 2023 are as follows:

(in millions of Won)

Lenders

Issuance
date

Maturity
date

Annual
interest rate (%)

September 30, 2024

December 31, 2023

Foreign borrowings

KOREA ENERGY AGENCY

2011.12.27.

2026.12.26.

3 year
Government
bond

1,347

1,316

13. Other Payables

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


(in millions of Won)	September 30, 2024			December 31, 2023
Current
Accounts payable	W	20,826			25,971
Accrued expenses		19,363			10,681
Dividend payable		2,700			3,087

	W	42,889			39,739

Non-current
Long-term withholdings	W	33,110			29,962
Less: Present value discount		(2,618	)		(3,158	)

	W	30,492			26,804

14. Other Financial Liabilities

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


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

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

September 30, 2024 and 2023 (Unaudited)

15. Provisions

(a)	Provisions as of September 30, 2024 and December 31, 2023 are as follows:


(in millions of Won)	September 30, 2024				December 31, 2023
	Current		Non-current		Current		Non-current
Provision for bonus payments(*1)	W	1,862		—		6,055		—
Provision for restoration(*2)		5,717		1,710		8,928		2,634

	W	7,579		1,710		14,983		2,634

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

(*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 September 30, 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 3.25% to assess present value of these costs.

(b)	Changes in provisions for the nine-month period ended September 30, 2024 and the year ended December 31, 2023 are as follows:

For the nine-month period ended September 30, 2024


(in millions of Won)	Beginning		Increase		Utilization			Ending
Provision for bonus payments	W	6,055		6,774		(10,967	)		1,862
Provision for restoration		11,562		181		(4,316	)		7,427

	W	17,617		6,955		(15,283	)		9,289

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

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

September 30, 2024 and 2023 (Unaudited)

16. Employee Benefits

(a)	Defined contribution plans

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

(in millions of Won)

For the three-month periods
ended September 30

For the nine-month periods
ended September 30

2024

2023

2024

2023

Expense related to post-employment benefit plans under defined contribution plans

101

(b)	Defined benefit plans

The amounts recognized in relation to net defined benefit liabilities in the statements of financial position as of September 30, 2024 and December 31, 2023 are as follows:


(in millions of Won)	September 30, 2024			December 31, 2023
Present value of funded obligations	W	36,435			44,276
Fair value of plan assets		(38,379	)		(39,993	)

Net defined benefit liabilities(assets)	W	(1,944	)		4,283

The amounts recognized in the statements of comprehensive income for each of the three-month and the nine-month periods ended September 30, 2024 and 2023 are as follows:


(in millions of Won)	For the three-month periods ended September 30						For the nine-month periods ended September 30
	2024			2023			2024			2023
Current service costs	W	1,550			1,064			5,276			5,080
Net interest costs		(86	)		(105	)		(256	)		(314	)

	W	1,464			959			5,020			4,766

17. Other Liabilities

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


(in millions of Won)	September 30, 2024		December 31, 2023
Current
Advances received	W	1,173		5
Withholdings		2,475		3,938
Unearned revenue		2,555		2,743

	W	6,203		6,686

Non-current
Unearned revenue	W	2,618		3,158

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

September 30, 2024 and 2023 (Unaudited)

18. Financial Instruments

(a)	Classification and fair value of financial instruments

The carrying amount and the fair values of financial assets and financial liabilities by fair value hierarchy as of September 30, 2024 and December 31, 2023 are as follows:

①

September 30, 2024


(in millions of Won)			Fair value
	Book value		Level 1		Level 2		Level 3		Total
Financial assets
Fair value through profit or loss
Short term financial instruments	W	1,300,702		—		1,300,702		—		1,300,702
Other securities		216,109		—		—		216,109		216,109
Fair value through other comprehensive income
Equity securities		677,686		635,342		—		42,344		677,686
Financial assets measured at amortized cost(*1)
Cash and cash equivalents		481,718		—		—		—		—
Trade accounts and notes receivable		51,370		—		—		—		—
Other receivables		39,394		—		—		—		—
Deposit instruments		1,250,002		—		—		—		—

	W	4,016,981		635,342		1,300,702		258,453		2,194,497

Financial liabilities
Fair value through profit or loss
Borrowings	W	39,919		39,919		—		—		39,919
Financial liabilities measured at amortized cost(*1)
Borrowings		1,347		—		1,347		—		1,347
Financial guarantee liabilities		14,113		—		—		—		—
Others		65,736		—		—		—		—

	W	121,115		39,919		1,347		—		41,266

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

②

December 31, 2023


(in millions of Won)			Fair value
	Book value		Level 1		Level 2		Level 3		Total
Financial assets
Fair value through profit or loss
Short term financial instruments	W	2,190,743		—		2,190,743		—		2,190,743
Other securities		204,320		—		—		204,320		204,320
Fair value through other comprehensive income
Equity securities		926,752		884,408		—		42,344		926,752
Financial assets measured at amortized cost(*1)
Cash and cash equivalents		376,914		—		—		—		—
Trade accounts and notes receivable		100,323		—		—		—		—
Other receivables		64,393		—		—		—		—
Deposit instruments		1,750,002		—		—		—		—

		5,613,447		884,408		2,190,743		246,664		3,321,815

Financial liabilities
Fair value through profit or loss
Borrowings		1,756,691		1,756,691		—		—		1,756,691
Financial liabilities measured at amortized cost(*1)
Borrowings		1,316		—		1,316		—		1,316
Financial guarantee liabilities		8,539		—		—		—		—
Others		62,252		—		—		—		—

	W	1,828,798		1,756,691		1,316		—		1,758,007

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

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

September 30, 2024 and 2023 (Unaudited)

2)	Financial liabilities were recognized in connection with financial guarantee contracts as of September 30, 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		65,980		—		—
	ING		USD	55,000,000		72,578		—		—
	Mizuho		USD	50,000,000		65,980		—		—
	Shinhan		USD	50,000,000		65,980		—		—
POSCO Argentina S.A.U.	BNP		USD	110,000,000		145,156		46,754,009		61,697
	CITI		USD	187,975,000		248,052		121,878,940		160,831
	Credit Agricole		USD	187,975,000		248,052		121,878,940		160,831
	HSBC		USD	187,975,000		248,052		121,878,940		160,831
	JPM		USD	187,975,000		248,052		121,878,940		160,831
	BANK OF AMERICA		USD	50,900,000		67,167		15,561,826		20,536
	KEXIM		USD	167,100,000		220,505		51,013,024		67,317
Associates
Nickel Mining Company SAS	SMBC		EUR	46,000,000		67,807		46,000,000		67,807

			USD	1,284,900,000		1,695,554		600,844,619		792,874
			EUR	46,000,000		67,807		46,000,000		67,807

3)	Finance income and costs by category of financial instrument for each of the nine-month periods ended September 30, 2024 and 2023 are as follows:

①

For the nine-month period ended September 30, 2024


(in millions of Won)	Finance income and costs
	Interest income (expense)			Gain and loss 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	—			1,510			27,406			58,685		—		87,601			—
Financial assets at fair value through other comprehensive income		—			—			(8,219	)		—		—		(8,219	)		(35,849	)
Financial assets measured at amortized cost		69,014			1,683			—			—		—		70,697			—
Financial liabilities at fair value through profit or loss		—			(56,301	)		(12,292	)		236,931		—		168,338			—
Financial liabilities measured at amortized cost		(873	)		383			—			—		1,606		1,116			—

	W	68,141			(52,725	)		6,895			295,616		1,606		319,533			(35,849	)

②

For the nine-month period ended September 30, 2023


(in millions of Won)	Finance income and costs
	Interest income (expense)		Gain and loss 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	—		3,875			34,582		132,751			—		171,208			—
Financial assets at fair value through other comprehensive income		—		—			—		—			—		—			175,656
Financial assets measured at amortized cost		51,125		20,603			—		—			—		71,728			—
Financial liabilities at fair value through profit or loss		—		(93,331	)		—		(429,985	)		—		(523,316	)		—
Financial liabilities measured at amortized cost		—		(325	)		—		—			4,935		4,610			—

	W	51,125		(69,178	)		34,582		(297,234	)		4,935		(275,770	)		175,656

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

September 30, 2024 and 2023 (Unaudited)

19. Share Capital and Capital Surplus

(a)	Share capital as of September 30, 2024 and December 31, 2023 are as follows:


(in Won, except share information)	September 30, 2024		December 31, 2023
Authorized shares		200,000,000		200,000,000
Par value	W	5,000		5,000
Issued shares(*1,2)		82,624,377		84,571,230
Shared capital(*3)	W	482,403,125,000		482,403,125,000

(*1)	As of September 30, 2024, the total number of American Depository Receipts (ADRs) outstanding in overseas stock market amounts to 20,116,948 and such ADRs are equivalent to 5,029,237 shares of common stock.

(*2)

Pursuant to the resolution of a Board of Directors’ meeting on July 12, 2024, the Company decided to retire 1,946,853 shares using distributable profits, and the retirement of shares was completed on August 6, 2024. As a result, as of September 30, 2024, the Company’s total number of issued shares has decreased from 84,571,230 to 82,624,377.

(*3)	As of September 30, 2024, the difference between the ending balance of common stock and the par value of issued common stock is W69,281 million due to retirement of 13,865,248 treasury shares.

(b)	Capital surplus as of September 30, 2024 and December 31, 2023 are as follows:


(in millions of Won)	September 30, 2024			December 31, 2023
Share premium	W	463,825			463,825
Gain on disposal of treasury shares		808,994			808,994
Gain from merger		80,627			80,627
Loss on disposal of hybrid bonds		(1,787	)		(1,787	)
Share-based payment		16,331			18,898

	W	1,367,990			1,370,557

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

September 30, 2024 and 2023 (Unaudited)

20. Accumulated Other Comprehensive Income (loss)

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


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

21. Treasury Shares

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


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

Ending		7,003,598		W	1,550,862			8,695,023		W	1,889,658

22. Operating Revenue

(a)	Details of operating revenue disaggregated by types of revenue and timing of revenue recognition for each of the three-month and the nine-month periods ended September 30, 2024 and 2023 are as follows:


(in millions of Won)	For the three-month periods ended September 30				For the nine-month periods ended September 30
	2024		2023		2024		2023
Types of revenue
Dividend income	W	355,460		424,155		1,320,175		1,113,179
Others		46,810		49,530		140,693		155,333

	W	402,270		473,685		1,460,868		1,268,512

Timing of revenue recognition
Revenue recognized at a point in time	W	355,826		424,158		1,320,183		1,113,189
Revenue recognized over time		46,444		49,527		140,685		155,323

	W	402,270		473,685		1,460,868		1,268,512

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

September 30, 2024 and 2023 (Unaudited)

(b)	Details of contract assets and liabilities from contracts with customers as of September 30, 2024 and December 31, 2023 are as follows:


(in millions of Won)	September 30, 2024		December 31, 2023
Receivables
Account receivables	W	51,370		100,323
Contract assets
Account receivables		100,745		138,009
Contract liabilities
Advance received		1,173		5
Unearned income		5,173		5,901

23. Operating Expenses

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


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

	W	92,447			77,730			281,956		232,845

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

September 30, 2024 and 2023 (Unaudited)

24. Finance Income and Costs

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


(in millions of Won)	For the three-month periods ended September 30				For the nine-month periods ended September 30
	2024		2023		2024		2023
Finance income
Interest income	W	22,512		17,493		69,014		51,125
Gain on foreign currency transactions		9,041		736		4,216		6,308
Gain on foreign currency translations		615		7,006		1,774		21,417
Gain on transactions of derivatives		1,058		—		1,058		—
Gain on disposal of financial assets at fair value through profit or loss		4,577		1,421		26,348		34,743
Gain on valuation of financial assets at fair value through profit or loss		15,213		17,975		58,685		132,836
Gain on valuation of financial liabilities at fair value through profit or loss		2,713		—		236,931		—
Others		628		1,804		1,613		5,203

	W	56,357		46,435		399,639		251,632

Finance costs
Loss on foreign currency transactions	W	1,291		1,120		57,005		3,338
Loss on foreign currency translations		3,771		10,613		1,710		93,565
Loss on transactions of derivatives		6,035		—		6,035		—
Loss on disposal of equity securities		—		—		8,219		161
Loss on valuations of financial assets at fair value through profit or loss		—		85		—		85
Loss on valuation of financial liabilities at fair value through profit or loss		—		309,681		—		429,985
Loss on bond redemption		6,257		—		6,257		—
Others		295		20		880		268

	W	17,649		321,519		80,106		527,402

25. Other Non-Operating Income and Expenses

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


(in millions of Won)	For the three-month periods ended September 30				For the nine-month periods ended September 30
	2024		2023		2024		2023
Other non-operating income
Gain on disposal of investments in subsidiaries, associates and joint venture	W	—		236		—		236
Reversal of other provisions		—		—		54		8,158
Others		676		2,171		2,189		3,084

	W	676		2,407		2,243		11,478

Other non-operating expenses
Impairment loss on other accounts receivables	W	—		2,351		106		2,351
Loss on disposal of property, plant and equipment		—		2,254		—		2,254
Loss on disposals of assets held for sale		—		896		—		998
Increase of other provisions		139		60		234		590
Others		560		516		5,630		1,322

	W	699		6,077		5,970		7,515

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

September 30, 2024 and 2023 (Unaudited)

26. Expenses by Nature

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


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

	W	93,147		83,807		287,926		242,513

(*1)	Includes depreciation of investment property.

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

September 30, 2024 and 2023 (Unaudited)

27. Income Taxes

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

(a)	Income taxes

The Company vertically spun off its steel business at the spin-off date on March 1, 2022. The Company’s vertical spin-off meets the requirements for qualified spin-off under the Corporate Tax Act. Accordingly, transfer gains of W8,452,339 million under the Corporate Tax Act were incurred for the net asset transferred to the newly established company (POSCO), and the Company simultaneously set a Corporate Tax Act-based provision for accelerated depreciation on the transfer gains and recognized deferred tax liabilities.

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

(b)	Global minimum top-up tax

In 2023, Pillar Two legislation has been enacted in the Republic of Korea, where the Company is domiciled, and will be effective for the fiscal years starting on or after January 1, 2024. Accordingly, the Company calculated the Pillar Two income tax expense for the nine-month period ended September 30, 2024 as the Company is subject to global minimum top-up tax under the application of the OECD’s Pillar Two Model Rules via domestic legislation. As a result of the Company’s assessment on the Pillar Two income taxes, the Company did not recognize any income tax expense for the nine-month period ended September 30, 2024 as the impact of the global minimum top-up tax on the interim condensed separate financial statements as of September 30, 2024 would not be significant. Furthermore, the Company applies temporary exception to the recognition and disclosure of deferred taxes arising from the jurisdictional implementation of the Pillar Two Model Rules as prescribed in KIFRS 1012 Income Taxes, and accordingly, the Company did not recognize deferred tax assets and liabilities related to the global minimum top-up tax and does not disclose information related to deferred income tax.

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

September 30, 2024 and 2023 (Unaudited)

28. Earnings per Share

(a)	Basic earnings per share for each of the three-month and nine-month periods ended September 30, 2024 and 2023 are as follows:


(in Won, except share information)	For the three-month periods ended September 30				For the nine-month periods ended September 30
	2024		2023		2024		2023
Profit for the period	W	334,994,032,159		153,385,707,998		1,468,571,617,105		885,431,452,822
Weighted-average number of common shares outstanding(*1)		75,699,376		75,816,833		75,816,833		75,867,296
Basic earnings per share	W	4,425		2,022		19,370		11,671

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


(shares)	For the three-month periods ended September 30						For the nine-month periods ended September 30
	2024			2023			2024			2023
Total number of common shares issued		83,297,040			84,571,230			84,143,400			84,571,230
Weighted-average number of treasury shares		(7,597,664	)		(8,695,023	)		(8,326,567	)		(8,703,934	)

Weighted-average number of common shares outstanding		75,699,376			75,876,207			75,816,833			75,867,296

(b)

The Company has exchangeable bonds that can be exchanged for common stocks with dilutive effects as of September 30, 2024. Considering the anti-dilution effect as of September 30, 2023, the Company did not calculate diluted earnings per share. Diluted earnings per share for the three-month and nine-month periods ended September 30, 2024 are calculated as follows:


(in Won, except share information)	For the three-month period ended September 30, 2024			For the nine-month period ended September 30, 2024
Profit for the period	W	334,994,032,159			1,468,571,617,105
Gain or loss from revaluation of and exchange rate on exchangeable bonds		(8,425,258,347	)		(138,904,137,256	)
Diluted profit for the period		326,568,773,812			1,329,667,479,849
Adjusted weighted-average number of common shares outstanding(* 1)		78,013,947			78,757,791
Diluted earnings per share		4,186			16,883

(*1)

The weighted-average number of common shares outstanding used to calculate diluted earnings per share are as follows:


(shares)	For the three-month period ended September 30, 2024		For the nine-month period ended September 30, 2024
Weighted-average number of common shares outstanding		75,699,376		75,816,833
Weighted-average number of potential common shares		2,314,571		2,940,958

Adjusted weighted-average number of common shares		78,013,947		78,757,791

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

September 30, 2024 and 2023 (Unaudited)

29. Related Party Transactions

(a)	Related parties of the Company as of September, 2024 are as follows:


Type		Company
Subsidiaries		[Domestic] POSCO, POSCO Eco & Challenge Co., Ltd., POSCO STEELEON CO., Ltd, POSCO DX, POSCO Research Institute, POSCO WIDE Co., Ltd., POSCO Capital, POSCO FUTURE M CO., LTD.,eNtoB Corporation, POSCO FLOW CO.,LTD., POSCO M-TECH, Busan E&E Co,. Ltd., POSCO INTERNATIONAL Corporation, POSCO Mobility Solution Corporation, POSOCO-Pilbara LITHIUM SOLUTION Co., Ltd., POSCO HY Clean Metal Co., Ltd., POSCO LITHIUM SOLUTION, Shinan Green Energy Co.,LTD., eSteel4U, QSONE Co.,Ltd., TANCHEON E&E, POSCO IH, POSCO A&C Co., Ltd, Posco Group University, POSCO GY Solution, POSCO GYR Tech, POSCO GYS Tech, POSCO PR Tech, POSCO PS Tech, POSCO PH Solution, POSCO Humans Co.,Ltd., Pohang Scrap Recycling Distribution Center Co., Ltd., P&O Chemical Co., Ltd., POSCO NIPPON STEEL RHF JOINT VENTURE.CO.,Ltd., Songdo Development PMC (Project Management Company) LLC., NEH Co.,Ltd., POSCO CNGR Nickel Solution, POSCO-GS Eco Materials Co., Ltd, Korea Fuel Cell and others. [Foreign] POSCO America Corporation, POSCO AUSTRALIA PTY LTD., POSCO Asia Co., Ltd., POSCO (Zhangjiagang) StainlessSteel Co.,Ltd., POSCO-China Holding Corporation, POSCO JAPAN Co., Ltd., POSCO-VIETNAM Co., Ltd., POSCO MEXICO S.A. DE C.V., POSCO Maharashtra Steel Private Limited, PT. KRAKATAU POSCO, YAMATO VINA STEEL JOINTSTOCK COMPANY, POSCO Argentina S.A.U., Senex Holdings PTY LTD, ULTIUM CAM LIMITED PARTNERSHIP and others.

Investments in associates and joint ventures		[Domestic] POSCO MC MATERIALS, Samcheok Blue Power Co.,Ltd., SNNC, Gale International Korea, LLC, Eco Energy Solution, UITrans LRT Co., Ltd., Pohang Special Welding Co.,Ltd., and others. [Foreign] Roy Hill Holdings Pty Ltd, POSCO-NPS Niobium LLC, KOBRASCO, PT NICOLE METAL INDUSTRY, HBIS-POSCO Automotive Steel Co.,Ltd, South-East Asia Gas Pipeline Company Ltd., 9404-5515 Quebec Inc., AES Mong Duong Power Company Limited, KOREALNG LTD., Nickel Mining Company SAS and others.

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

September 30, 2024 and 2023 (Unaudited)

(b)	Material transactions with related companies for each of the nine-month periods ended September 30, 2024 and 2023 are as follows:

For the nine-month period ended September 30, 2024


(in millions of Won)	*Sales and others(1)**						Purchase and others
	Sales		Dividends		Others		Purchase of fixed assets		Others
*Subsidiaries(2)**
POSCO	W	113,665		888,008		66		191		9,470
POSCO Eco & Challenge Co., Ltd.		7,561		11,037		—		1,729		705
POSCO STEELEON CO., Ltd		899		—		—		—		9
POSCO DX		1,027		9,940		—		982		9,540
POSCO Research Institute		—		—		—		30		8,180
eNtoB Corporation		—		—		—		49		6,231
POSCO FUTURE M CO., LTD.		6,459		11,565		—		—		9
POSCO INTERNATIONAL Corporation		4,548		124,396		74		—		61
Busan E&E Co,. Ltd.		—		2,472		—		—		—
POSCO America Corporation		—		—		—		—		5,030
Others		3,907		831		1,445		1		17,279

		138,066		1,048,249		1,585		2,982		56,514

*Associates and joint ventures(2)**
POSCO-NPS Niobium LLC		—		22,045		—		—		—
Roy Hill Holdings Pty Ltd		—		202,550		—		—		—
Others		273		14,494		168		—		—
		273		239,089		168		—		—

	W	138,339		1,287,338		1,753		2,982		56,514

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

(*2)	As of September 30, 2024, the Company provided payment guarantees to related parties (see Note 18).

For the nine-month period ended September 30, 2023


(in millions of Won)	*Sales and others(1)**						Purchase and others
	Sales		*Dividends(3)**		Others		Purchase of fixed assets		Others
*Subsidiaries(2)**
POSCO	W	115,159		325,043		—		—		11,362
POSCO Eco & Challenge Co., Ltd.		6,432		11,037		440		8,117		4,166
POSCO STEELEON CO., Ltd		1,641		—		—		—		93
POSCO DX		2,367		7,455		—		3,382		5,663
eNtoB Corporation		—		—		40		70		1,396
POSCO FUTURE M CO., LTD.		2,872		13,878		—		—		—
POSCO MOBILITY SOLUTION		739		—		55		—		—
POSCO INTERNATIONAL Corporation		7,753		77,616		—		—		44
POSCO Maharashtra Steel Private Limited		692		—		353		—		—
POSCO ASSAN TST STEEL INDUSTRY		17		—		430		—		—
Others		9,504		6,084		4,874		6,519		29,494

		147,176		441,113		6,192		18,088		52,218

*Associates and joint ventures(2)**
SNNC		696		—		55		—		—
Roy Hill Holdings Pty Ltd		—		205,739		—		—		—
Others		236		69,485		11,566		—		90

		932		275,224		11,621		—		90

	W	148,108		716,337		17,813		18,088		52,308

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

(*2)	As of September 30, 2023, the Company provided payment guarantees to related parties (see Note 18).

(*3)	Gain on disposals of investment in subsidiaries, recognized as dividends amounting to W14,898 million, is excluded.

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

September 30, 2024 and 2023 (Unaudited)

(c)	The balances of receivables and payables arising from significant transactions with related parties as of September 30, 2024 and December 31, 2023 are as follows:

September 30, 2024


(in millions of Won)	Receivables						Payables
	Trade accounts and notes receivable		Others		Total		Accounts payable		Others		Total
Subsidiaries
POSCO	W	78,316		1,423		79,739		4,186		35,846		40,032
POSCO Eco & Challenge Co., Ltd.		7,210		309		7,519		113		—		113
POSCO STEELEON CO., Ltd		841		—		841		—		—		—
POSCO DX		1,114		—		1,114		1,978		391		2,369
POSCO FUTURE M CO., LTD.		14,668		—		14,668		—		56		56
POSCO Mobility Solution Corporation		735		—		735		—		5		5
POSCO INTERNATIONAL Corporation		4,713		10		4,723		—		304		304
POSCO Argentina S.A.U		—		22,020		22,020		—		—		—
Others		2,169		230		2,399		3,054		244		3,298

		109,766		23,992		133,758		9,331		36,846		46,177

Associates and joint ventures
SNNC		202		—		202		—		—		—
Roy Hill Holdings Pty Ltd		27,521		—		27,521		—		—		—
FQM Australia Holdings Pty Ltd(*1)		—		224,027		224,027		—		—		—
Others		141		356		497		—		—		—

		27,864		224,383		252,247		—		—		—

	W	137,630		248,375		386,005		9,331		36,846		46,177

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

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		—		—		—
Others		3,345		11,152		14,497		9,022		151		9,173

		147,886		36,602		184,488		15,784		33,842		49,626

Associates and joint ventures
SNNC		334		—		334		—		—		—
Roy Hill Holdings Pty Ltd		88,008		—		88,008		—		—		—
FQM Australia Holdings Pty Ltd(*1)		—		218,900		218,900		—		—		—
Others		195		560		755		—		—		—

		88,537		219,460		307,997		—		—		—

	W	236,423		256,062		492,485		15,784		33,842		49,626

(*1)

FQM Australia Holdings Pty Ltd’s other receivable consists of long-term loans and accrued interest. During the year ended December 31, 2023, the Company provided additional loan of W6,448 million to FQM Australia Holdings Pty Ltd. Meanwhile, the Company has recognized an allowances for doubtful accounts for all of these other receivables during the year ended December 31, 2023.

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

September 30, 2024 and 2023 (Unaudited)

(d)	For each of the nine-month periods ended September 30, 2024 and 2023, the Company additional capital contribution transaction in subsidiaries, etc.(see Note 7).:

(e)	For each of the nine-month periods ended September 30, 2024 and 2023, details of compensation to key management officers are as follows:


(in millions of Won)	September 30, 2024		September 30, 2023
Short-term benefits	W	19,099		25,871
Retirement benefits		2,570		4,221

	W	21,669		30,092

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

30. Commitments and Contingencies

(a)	Commitments

As of September 30, 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 fails. The Company has agreed to pay a certain portion of its profits under certain conditions, as defined by the borrowing agreements. As of September 30, 2024, the ending balance of the borrowing amounts to USD 1.02 million.

The Company has deposited 83,671 treasury shares for exchange with the Korea Securities Depository in relation to foreign currency exchangeable bonds as of September 30, 2024.

(b)	As of September 30, 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 3 lawsuits amounting in total to W500 million as defendant as of September 30, 2024. However, the Company has not recognized any provisions for the lawsuit since the Company does not believe it has a present obligation as of September 30, 2024.

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

POSCO HOLDINGS INC.

Notes to the interim condensed separate financial statements, continued

September 30, 2024 and 2023 (Unaudited)

31. Cash Flows from Operating Activities

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


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

	W	23,542			(4,585	)

32. Events After the Reporting Period

(a)	Pursuant to the resolution of the Board of Directors on November 1, 2024, the Company decided to pay interim cash dividends of W2,500 per common share (total dividend: W189.1 billion).

(b)

Pursuant to the resolution of the Board of Directors on November 1, 2024, the Company decided to acquire W500 billion of the W600 billion in hybrid bonds to be issued by POSCO Future M Co., Ltd. for the purpose of strengthening financial soundness, etc. The issuance and acquisition of these hybrid bonds are scheduled for December 18, 2024.

(c)

Pursuant to the resolution of the Board of Directors on November 1, 2024, the Company decided to sell the shares of four companies including POSCO Maharashtra Steel Private Limited, in order to support the follow-up actions of vertical spin-off and enhance the management efficiency of the steel business within the Group.

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