# EDGAR Filing Document

**Accession Number:** 0000889132
**File Stem:** 0001193125-26-116653
**Filing Date:** 2026-3
**Character Count:** 438984
**Document Hash:** 3449deacd2392488ed125ad073542145
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-26-116653.hdr.sgml**: 20260320

**ACCESSION NUMBER**: 0001193125-26-116653

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 6

**CONFORMED PERIOD OF REPORT**: 20260320

**FILED AS OF DATE**: 20260320

**DATE AS OF CHANGE**: 20260320

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** POSCO HOLDINGS INC.
- **CENTRAL INDEX KEY:** 0000889132
- **STANDARD INDUSTRIAL CLASSIFICATION:** STEEL WORKS, BLAST FURNACES  ROLLING MILLS (COKE OVENS) [3312]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 000000000
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 6-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-13368
- **FILM NUMBER:** 26775994

**BUSINESS ADDRESS:**
- **STREET 1:** POSCO CENTER
- **STREET 2:** 440 TEHERAN-RO
- **CITY:** GANGNAM-GU, SEOUL
- **STATE:** M5
- **ZIP:** 06194
- **BUSINESS PHONE:** 02-3457-0114

**MAIL ADDRESS:**
- **STREET 1:** POSCO CENTER
- **STREET 2:** 440 TEHERAN-RO
- **CITY:** GANGNAM-GU, SEOUL
- **STATE:** M5
- **ZIP:** 06194

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** POSCO
- **DATE OF NAME CHANGE:** 20020517

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** POHANG IRON & STEEL CO LTD
- **DATE OF NAME CHANGE:** 19930607

**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 March, 2026** 

**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 Consolidated Financial Statements audited by independent auditors

------

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.

---

| | | | |
|:---|:---|:---|:---|
|  | <u>POSCO HOLDINGS INC.</u> | <u>POSCO HOLDINGS INC.</u> | <u>POSCO HOLDINGS INC.</u> |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Registrant) |  |  |
| Date: March 20, 2026 |  | By | /s/ Han, Young Ah |
|  |  | (Signature) | (Signature) |
|  |  | Name: | Han, Young Ah |
|  |  | Title: | Executive Vice President |

---

## Exhibit 99.1

##### [**Table of Contents**](#toc)
**Exhibit 99.1** 

**POSCO HOLDINGS INC.** 

**and its subsidiaries** 

Consolidated financial statements

for the years ended December 31, 2025 and 2024

with the independent auditor's report

------

##### [**Table of Contents**](#toc)
**Table of Contents** 

[Independent Auditor's Report](#ex99_1toc81300_100)

---

| | |
|:---|:---|
|  | **Page** |
|  Consolidated Financial Statements |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Statements of Financial Position](#ex99_1toc81300_1) | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Statements of Comprehensive Income](#ex99_1toc81300_2) | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Statements of Changes in Equity](#ex99_1toc81300_3) | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Statements of Cash Flows](#ex99_1toc81300_4) | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Notes to the Consolidated Financial Statements](#ex99_1toc81300_5) | 14 |
|  [Independent Auditor's Report on Internal Control over Financial Reporting](#ex99_1toc81300_6) | 126 |
|  [Report on the Operating Status of Internal Control over Financial Reporting](#ex99_1toc81300_7) | 128 |

---

------

##### [**Table of Contents**](#toc)
![LOGO](g81300dsp6.jpg) <br>

**Independent auditor's report** 

(English translation of a report originally issued in Korean)

The Shareholders and Board of Directors

POSCO HOLDINGS INC.

**Opinion** 

We have audited the consolidated financial statements of POSCO HOLDINGS INC. and its subsidiaries (collectively referred to as the "Group"), which comprise the consolidated statements of financial position as of December 31, 2025 and 2024, and the consolidated statements of comprehensive income, changes in equity and cash flows for each of the two years in the period ended December 31, 2025, and notes to the consolidated financial statements, including a summary of material accounting policy information.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2025 and 2024, and its consolidated financial performance and its consolidated cash flows for each of the two years in the period ended December 31, 2025, in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (KIFRS).

We also have audited the Group's internal control over financial reporting (ICFR) as of December 31, 2025 based on the Conceptual Framework for Design and Operation of ICFR established by the Operating Committee of ICFR in the Republic of Korea, in accordance with Korean Standards on Auditing (KSA), and our report dated March 11, 2026 expressed an unqualified opinion thereon.

**Basis for opinion** 

We conducted our audits in accordance with KSA. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the consolidated financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in the Republic of Korea, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

------

##### [**Table of Contents**](#toc)
![LOGO](g81300dsp6.jpg)

**Key audit matters** 

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

(a) Cut-off of export sales (POSCO)

As described in note 40 to the consolidated financial statements, the Group's products and merchandise sales include a significant portion of export sales. The timing of revenue recognition for export sales requires management's judgment as export sales involves various performance obligations depending on the contract with customers and the International Commercial Terms. Also, due to the lengthy time it takes to deliver the products and merchandise to their destination, there is a high possibility of misstatement in the timing of revenue recognition.

Considering the inherent risks of export sales and the significance of the export sales of the individual subsidiary to the consolidated revenue, we have identified the appropriateness of the timing of revenue recognition for export sales of POSCO as a key audit matter.

The primary procedures we performed to address this key audit matter included the following:

• Obtaining an understanding of the entity's processes and internal controls related to export sales;

• Evaluating the effectiveness of the design and operation of the entity's internal controls related to the
appropriateness of timing of revenue recognition;

• Inspecting the document to assess the appropriateness of timing of revenue recognition for a sample of export
sales during the current period; and

• Inspecting the document to assess the appropriateness of timing of revenue recognition for a selected sample of
export sales transactions occurred during a certain period close to and after year-end

(b) Occurrence of overseas sales (three-country transactions) (POSCO International Corporation)

As described in note 40 to the consolidated financial statements, the Group includes a significant portion of export sales. Among those, POSCO International Corporation's overseas sales (three-country transactions) occur as control over inventory is transferred through the bill of lading (B/L) document. For such reason, it was assessed that there is a high possibility of error in the occurrence of revenue.

Considering the significance of the overseas sales (three-country transactions) to the consolidated revenue and the existence of significant risk in terms of occurrence, we have identified the occurrence for overseas sales (three-country transactions) of POSCO International Corporation as a key audit matter.

The primary procedures we performed to address this key audit matter included the following:

• Obtaining an understanding the entity's accounting policies over overseas sales (three-country
transactions);

• Obtaining an understanding the internal controls established by the entity related to occurrence of export sales
(three-country transactions) and assessing the effectiveness of design and operation of relevant controls;

• Inspecting key documents raised when export sales (three-country transactions) occur; and

• Checking the shipment of actual inventory through shipping vessel tracking

------

##### [**Table of Contents**](#toc)
![LOGO](g81300dsp6.jpg)

(c) Estimation of total contract costs and the percentage-of-completion by the input method (POSCO Eco & Challenge)

As described in note 28 to the consolidated financial statements, the Group's revenue from construction contracts amounted to W5,547,561 million, which was a significant portion of the consolidated revenue for the year ended December 31, 2025 and mostly incurred by POSCO Eco & Challenge Co., Ltd. The Group recognizes revenue and costs based on the percentage-of-completion of the contract activities as at the end of the reporting period when the outcome of the contracts applying the input method is reliably measurable. The percentage-of-completion of revenue activities is calculated based on the ratio of the accumulated contract costs incurred for work performed less costs that do not reflect the progress stage over the estimated total contract costs.

Most of the Group's construction contracts are performed over a long-term period, and the total contract costs are estimated based on material costs, labor costs, outsourcing costs and others which are expected to incur during the construction period. Additionally, since the construction revenue of the reporting period is calculated based on the total contract revenue multiplied by the cumulative percentage-of-completion as at the end of the reporting period less the amount recognized by the end of the previous period, a change in the percentage-of-completion has an impact on construction revenue of the current and future period and may result in a misstatement in terms of timing of revenue recognition. Considering the impact of the uncertainty in long-term contracts, change in estimates of total contract costs and the estimates in the percentage-of-completion based on the input method, on the financial statements, we identified estimation of the total contract costs and the percentage-of-completion based on the input method related to POSCO Eco & Challenge Co., Ltd. as a key audit matter.

The primary procedures we performed to address this key audit matter included the following:

• Obtaining an understanding and assessing certain internal controls over the estimation of total contract costs
and accumulation of costs per project;

• Obtaining written statements from the person in charge of the construction field in relation to the contract
amounts and total estimated costs of a sample of major projects selected and reconciling with the information in the system;

• Assessing management's assumption used for estimation of material costs and outsourcing costs by analyzing
the estimates of total contract costs on a sample of new projects selected;

• For contracts with significant changes in total contract costs, inquiring the person in charge of the
construction field of the reasons for change and inspecting supporting documents as to the cause of such changes;

• Comparing retrospectively the cost-of-completion ratio and the execution ratio of the prior year on a sample of projects completed during the current period to assess the accuracy of estimation;

• Inspecting the documents that support the appropriateness of recognition timing for input costs actually incurred
per project on a sampling basis; and

• Checking the existence of construction projects and the appropriateness of the percentage-of-completion by site visits on a sample of construction projects selected

**Responsibilities of management and those charged with governance for the consolidated financial statements** 

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with KIFRS, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

------

##### [**Table of Contents**](#toc)
![LOGO](g81300dsp6.jpg)

In preparing the consolidated financial statements, management is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Group's financial reporting process.

**Auditor's responsibilities for the audit of the consolidated financial statements** 

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with KSA will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with KSA, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up
to the date of our auditor's report. However, future events or conditions may cause the Group to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the
disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

------

##### [**Table of Contents**](#toc)
![LOGO](g81300dsp6.jpg)

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partner on the audit resulting in this independent auditor's report is Yongwoo Lee.

Seoul, Korea

March 11, 2026

This audit report is effective as of the independent auditor's report date. Accordingly, certain material subsequent events or circumstances may have occurred during the period from the independent auditor's report date to the time this report is used. Such events and circumstances could significantly affect the accompanying consolidated financial statements and may result in modifications to this report.

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its subsidiaries** 

Consolidated financial statements

For the years ended December 31, 2025 and 2024

"The accompanying consolidated financial statements, including all footnotes and disclosures, have been prepared by, and are the responsibility of, the Group."

Ju Tae Lee

Representative Director & President

POSCO HOLDINGS INC.

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Consolidated Statements of Financial Position** 

**As of December 31, 2025 and 2024** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(in millions of Won)* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Notes**  | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** |
|  **Assets** |  |  |  |  |
|  Cash and cash equivalents | 4523 | W | 7049800 | 6767898 |
|  Trade accounts and notes receivable, net | 617232937 |  | 11197974 | 10821620 |
|  Other receivables, net | 72337 |  | 1920685 | 2261323 |
|  Other short-term financial assets | 823 |  | 8778584 | 8499389 |
|  Inventories | 9 |  | 13624433 | 14143500 |
|  Current income tax assets |  |  | 78704 | 140494 |
|  Assets held for sale | 10 |  | 20167 | 608758 |
|  Other current assets | 16 |  | 813522 | 786943 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total current assets** |  |  | 43483869 | 44029925 |
|  Long-term trade accounts and notes receivable, net | 623 |  | 19708 | 27779 |
|  Other receivables, net | 72337 |  | 1635253 | 1306329 |
|  Other long-term financial assets | 823 |  | 3060842 | 2571651 |
|  Investments in associates and joint ventures | 11 |  | 4980153 | 4738793 |
|  Investment property, net | 13 |  | 1691625 | 1955896 |
|  Property, plant and equipment, net | 14 |  | 42292820 | 39846828 |
|  Intangible assets, net | 15 |  | 5493529 | 4774824 |
|  Defined benefit assets, net | 21 |  | 360112 | 409147 |
|  Deferred tax assets | 35 |  | 2038844 | 3609344 |
|  Other non-current assets | 16 |  | 135683 | 133684 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total non-current assets** |  |  | 61708569 | 59374275 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total assets** |  | W | 105192438 | 103404200 |

---

(continued)

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Consolidated Statements of Financial Position, Continued** 

**As of December 31, 2025 and 2024** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(in millions of Won)* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Notes**  | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** |
|  **Liabilities** |  |  |  |  |
|  Trade accounts and notes payable | 2337 | W | 5106921 | 6159127 |
|  Short-term borrowings and current installments of long-term borrowings | 41723 |  | 12117422 | 11115747 |
|  Other payables | 182337 |  | 3406505 | 3463871 |
|  Other short-term financial liabilities | 1923 |  | 66623 | 120875 |
|  Current income tax liabilities |  |  | 223666 | 350570 |
|  Liabilities directly associated with the assets held for sale | 10 |  | 3678 |  |
|  Provisions | 20 |  | 632644 | 396030 |
|  Other current liabilities | 222829 |  | 1574195 | 1173499 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total current liabilities** |  |  | 23131654 | 22779719 |
|  Long-term trade accounts and notes payable | 23 |  |  | 2049 |
|  Long-term borrowings, excluding current installments | 41723 |  | 16374578 | 14881620 |
|  Other payables | 1823 |  | 1237358 | 809012 |
|  Other long-term financial liabilities | 1923 |  | 91068 | 72920 |
|  Defined benefit liabilities, net | 21 |  | 63189 | 43143 |
|  Deferred tax liabilities | 35 |  | 1159973 | 2685549 |
|  Long-term provisions | 20 |  | 650329 | 580559 |
|  Other non-current liabilities | 22 |  | 106598 | 99260 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total non-current liabilities** |  |  | 19683093 | 19174112 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total liabilities** |  |  | 42814747 | 41953831 |
|  **Equity** |  |  |  |  |
|  Share capital | 24 |  | 482403 | 482403 |
|  Capital surplus | 24 |  | 1685116 | 1648894 |
|  Other components of equity | 26 |  | 1561510 | 1155429 |
|  Treasury shares | 27 |  | (1176317) | (1550862) |
|  Retained earnings |  |  | 53177472 | 53658367 |
|  **Equity attributable to owners of the controlling company** |  |  | 55730184 | 55394231 |
|  **Non-controlling interests** | 25 |  | 6647507 | 6056137 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total equity** |  |  | 62377691 | 61450368 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total liabilities and equity** |  | W | 105192438 | 103404199 |

---

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

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Consolidated Statements of Comprehensive Income** 

**For the years ended December 31, 2025 and 2024** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(in millions of Won, except per share information)* | **Notes** | **2025** | **2025** | **2024** |
|  **Revenue** | 282937 | W | 69094886 | 72688143 |
|  **Cost of sales** | 293134 |  | (63928838) | (67275205) |
|  **Gross profit** |  |  | 5166048 | 5412938 |
|  Selling and administrative expenses | 233034 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other administrative expenses |  |  | (3094810) | (3004478) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Selling expenses |  |  | (244175) | (234888) |
|  **Operating profit** |  |  | 1827063 | 2173572 |
|  Share of profit (loss) of equity-accounted investees, net | 11 |  | 349910 | (256458) |
|  Finance income and costs | 2332 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Finance income |  |  | 3222137 | 5211595 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Finance costs |  |  | (3910282) | (5080735) |
|  Other non-operating income and expenses | 233334 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other non-operating income |  |  | 305591 | 387105 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other non-operating expenses |  |  | (687570) | (1183876) |
|  **Profit before income tax** |  |  | 1106849 | 1251203 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | 35 |  | (602446) | (303623) |
|  **Profit** |  |  | 504403 | 947580 |
|  **Other comprehensive income (loss)** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Items that will not be reclassified subsequently to profit or loss: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital adjustment arising from investments in equity-accounted investees |  |  | (5240) | (42753) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currency translation differences |  |  | 35619 | 231347 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Remeasurements of defined benefit plans | 21 |  | (13163) | (95345) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net changes in fair value of equity investments at fair value through other comprehensive income |  |  | 319618 | (150443) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Items that are or may be reclassified subsequently to profit or loss: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital adjustment arising from investments in equity-accounted investees |  |  | 48561 | 331616 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currency translation differences |  |  | 33219 | 888466 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains or losses on valuation of derivatives | 23 |  | 8 | (110) |
|  **Other comprehensive income, net of tax** |  |  | 418622 | 1162778 |
|  **Total comprehensive income** |  | W | 923026 | 2110358 |
|  **Profit attributable to:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Owners of the controlling company |  | W | 657654 | 1094917 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-controlling interests |  |  | (153251) | (147337) |
|  **Profit** |  | W | 504403 | 947580 |
|  **Total comprehensive income attributable to :** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Owners of the controlling company |  | W | 1032628 | 2008919 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-controlling interests |  |  | (109602) | 101439 |
|  **Total comprehensive income** |  | W | 923026 | 2110358 |
|  **Earnings per share (in Won)** | 36 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic earnings per share (in Won) |  |  | 8697 | 14451 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted earnings per share (in Won) |  | W | 8697 | 12250 |

---

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

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Consolidated Statements of Changes in Equity** 

**For the years ended December 31, 2025 and 2024** 

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **Attributable to owners of the controlling company** | **Attributable to owners of the controlling company** | **Attributable to owners of the controlling company** | **Attributable to owners of the controlling company** | **Attributable to owners of the controlling company** | **Attributable to owners of the controlling company** | **Attributable to owners of the controlling company** | **Non-** | |
|  | **Share** | **Share** | **Capital** | **Other** | **Treasury** | **Retained** |  | **controlling** |  |
|  | **capital** | **capital** | **surplus** | **equity items** | **shares** | **earnings** | **Subtotal** | **interests** | **Total** |
|  **Balance as of January 1, 2024** | W | 482403 | 1663334 | 67256 | (1889658) | 53857514 | 54180849 | 5483048 | 59663897 |
|  **Comprehensive income:** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Profit |  |  |  |  |  | 1094917 | 1094917 | (147337) | 947580 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other comprehensive income (loss) |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Remeasurements of defined benefit plans, net of tax |  |  |  |  |  | (86966) | (86966) | (8379) | (95345) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital adjustment arising from investments in equity-accounted investees, net of tax |  |  |  | 257833 |  |  | 257833 | 31030 | 288863 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net changes in fair value of equity investments at fair value through other comprehensive income, net of tax |  |  |  | (133212) |  | (11838) | (145050) | (5392) | (150442) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currency translation differences, net of tax |  |  |  | 888466 |  |  | 888466 | 231347 | 1119813 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains or losses on valuation of derivatives, net of tax |  |  |  | (281) |  |  | (281) | 171 | (110) |
|  **Total comprehensive income** |  |  |  | 1012806 |  | 996113 | 2008919 | 101440 | 2110359 |
|  **Transactions with owners of the controlling company, recognized directly in equity:** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Year-end dividends |  |  |  |  |  | (189691) | (189691) | (86001) | (275692) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interim dividends |  |  |  |  |  | (568433) | (568433) |  | (568433) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in subsidiaries |  |  |  |  |  |  |  | 32691 | 32691 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in ownership interest in subsidiaries |  |  | (15440) |  |  |  | (15440) | 477608 | 462168 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition of treasury shares |  |  |  |  | (92311) |  | (92311) |  | (92311) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retirement of treasury shares |  |  |  |  | 431107 | (431107) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share-based payment |  |  | (2567) |  |  |  | (2567) |  | (2567) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  |  | 3567 | 75367 |  | (6029) | 72905 | 47351 | 120256 |
|  **Total transactions with owners of the controlling company** |  |  | (14440) | 75367 | 338796 | (1195260) | (795537) | 471649 | (323888) |
|  **Balance as of December 31, 2024** | W | 482403 | 1648894 | 1155429 | (1550862) | 53658367 | 55394231 | 6056137 | 61450368 |

---

(continued)

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Consolidated Statements of Changes in Equity, Continued** 

**For the years ended December 31, 2025 and 2024** 

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **Attributable to owners of the controlling company** | **Attributable to owners of the controlling company** | **Attributable to owners of the controlling company** | **Attributable to owners of the controlling company** | **Attributable to owners of the controlling company** | **Attributable to owners of the controlling company** | **Attributable to owners of the controlling company** | **Non-** | |
|  | **Share** | **Share** | **Capital** | **Other** | **Treasury** | **Retained** |  | **controlling** |  |
|  | **capital** | **capital** | **surplus** | **equity items** | **shares** | **earnings** | **Subtotal** | **interests** | **Total** |
|  **Balance as of January 1, 2025** | W | 482403 | 1648894 | 1155429 | (1550862) | 53658367 | 55394231 | 6056137 | 61450368 |
|  **Comprehensive income:** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Profit |  |  |  |  |  | 657654 | 657654 | (153251) | 504403 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other comprehensive income (loss) |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Remeasurements of defined benefit plans, net of tax |  |  |  |  |  | (26081) | (26081) | 12918 | (13163) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital adjustment arising from investments in equity-accounted investees, net of tax |  |  |  | 49174 |  |  | 49174 | (5853) | 43321 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net changes in fair value of equity investments at fair value through other comprehensive income, net of tax |  |  |  | 321132 |  | (2478) | 318654 | 964 | 319618 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currency translation differences, net of tax |  |  |  | 33219 |  |  | 33219 | 35619 | 68838 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains or losses on valuation of derivatives, net of tax |  |  |  | 8 |  |  | 8 |  | 8 |
|  **Total comprehensive income** |  |  |  | 403533 |  | 629095 | 1032628 | (109603) | 923025 |
|  **Transactions with owners of the controlling company, recognized directly in equity:** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Year-end dividends |  |  |  |  |  | (189052) | (189052) | (159410) | (348462) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interim dividends |  |  |  |  |  | (567156) | (567156) |  | (567156) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in subsidiaries |  |  |  |  |  |  |  | 174300 | 174300 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in ownership interest in subsidiaries |  |  | 35622 |  |  |  | 35622 | 737181 | 772803 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retirement of treasury shares |  |  |  |  | 374545 | (374545) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  |  | 600 | 2548 |  | 20763 | 23911 | (51099) | (27188) |
|  **Total transactions with owners of the controlling company** |  |  | 36222 | 2548 | 374545 | (1109990) | (696675) | 700972 | 4297 |
|  **Balance as of December 31, 2025** | W | 482403 | 1685116 | 1561510 | (1176317) | 53177472 | 55730184 | 6647507 | 62377691 |

---

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

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Consolidated Statements of Cash Flows** 

**For the years ended December 31, 2025 and 2024** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **Notes** | **2025** | **2025** | **2024** |
|  **Cash flows from operating activities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Profit |  | W | 504403 | 947580 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustments for: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation |  |  | 3693287 | 3530770 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization |  |  | 465935 | 453689 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Finance income |  |  | (1645330) | (3476227) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Finance costs |  |  | 2098373 | 3202268 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense |  |  | 602446 | 303623 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment loss on property, plant and equipment |  |  | 135653 | 608122 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on disposal of property, plant and equipment |  |  | (15792) | (26533) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on disposal of property, plant and equipment |  |  | 89883 | 85149 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment loss on goodwill and other intangible assets |  |  | 51640 | 47993 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on disposal of investments in subsidiaries, associates and joint ventures |  |  | (47374) | (14235) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on disposal of investments in subsidiaries, associates and joint ventures |  |  | 12819 | 73428 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share of loss on (profit of) equity-accounted investees |  |  | (349910) | 256458 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on disposal of assets held for sale |  |  | (53692) | (4801) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on disposal of assets held for sale |  |  | 13104 | 33943 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment loss on assets held for sale |  |  | 6342 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expenses related to post-employment benefit |  |  | 264231 | 246484 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment loss on trade and other receivables |  |  | 203802 | 185129 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on valuation of inventories (reversal) |  |  | (25482) | 77832 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase to provisions |  |  | 471518 | 217174 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on insurance claim |  |  | (19596) | (157552) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others, net |  |  | (12592) | 3227 |
|  |  |  | 5939265 | 5645941 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in operating assets and liabilities | 39 |  | (804894) | 336868 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest received |  |  | 421430 | 570769 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest paid |  |  | (1085791) | (1028654) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends received |  |  | 437835 | 744857 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes paid |  |  | (840338) | (553706) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by operating activities |  | W | 4571910 | 6663655 |

---

(continued)

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Consolidated Statements of Cash Flows, Continued** 

**For the years ended December 31, 2025 and 2024** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **Notes** | **2025** | **2025** | **2024** |
|  **Cash flows from investing activities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisitions of short-term financial instruments |  | W | (15987580) | (15835323) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from disposal of short-term financial instruments |  |  | 16093407 | 19501852 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase in loans |  |  | (277442) | (820248) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Collection of loans |  |  | 100034 | 784616 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisitions of securities |  |  | (836079) | (1144352) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from disposal of securities |  |  | 489046 | 1210011 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisitions of long-term financial instruments |  |  | (19921) | (3791) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisitions of investment in associates and joint ventures |  |  | (213280) | (301816) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from disposal of investment in associates and joint ventures |  |  | 39170 | 45185 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisitions of investment property |  |  | (3614) | (3883) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from disposal of investment property |  |  | 1403 | 418 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisitions of property, plant and equipment |  |  | (5665151) | (7669700) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from disposal of property, plant and equipment |  |  | 214126 | 44189 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisitions of intangible assets |  |  | (576029) | (492785) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from disposal of intangible assets |  |  | 7910 | 11711 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from disposal of assets held for sale |  |  | 846102 | 10307 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Collection of lease receivables |  |  | 25480 | 31136 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net assets acquired due to changes in the scope of consolidation |  |  | (807255) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net assets disposed due to changes in the scope of consolidation |  |  | 71597 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash inflow from insurance claim |  |  | 19596 | 157278 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others, net |  |  | (208798) | (11588) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash used in investing activities |  | W | (6687278) | (4486783) |
|  **Cash flows from financing activities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from borrowings |  |  | 5393340 | 5899541 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repayment of borrowings |  |  | (5158334) | (7532911) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repayment of short-term borrowings, net |  |  | 2158541 | (217759) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital contribution from non-controlling interests |  |  | 832430 | 513710 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payment of cash dividends |  |  | (915216) | (844195) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition of treasury shares |  |  |  | (92311) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repayment of lease liabilities |  |  | (143423) | (195367) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others, net |  |  | 235510 | 167559 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by (used in) financing activities | 39 | W | 2402848 | (2301733) |
|  **Effect of exchange rate fluctuation on cash held** |  |  | (5577) | 221880 |
|  **Net increase in cash and cash equivalents** |  |  | 281903 | 97019 |
|  **Cash and cash equivalents at beginning of the period** | 510 |  | 6767897 | 6670879 |
|  **Cash and cash equivalents at end of the period** | 510 | W | 7049800 | 6767898 |

---

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

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements** 

**As of December 31, 2025 and 2024** 

**1. General Information** 

General information about POSCO HOLDINGS INC. (the "Company"), the controlling company, and its subsidiaries in the scope of consolidation, such as 64 domestic subsidiaries including POSCO and 134 foreign subsidiaries including POSCO America Corporation, and 115 associates and joint ventures (collectively referred to as the "Group") in accordance with KIFRS 1110 is as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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 its subsidiaries and other investments through its ownership of shares in the investees.

On March 2, 2022, the Company established a wholly-owned subsidiary, POSCO, through a vertical spin-off of its steel manufacturing business, and changed its name to POSCO HOLDINGS INC.

As of December 31, 2025, POSCO HOLDINGS INC.'s shareholders are as follows:

---

| | | |
|:---|:---|:---|
| **Shareholder's name** | **Number of shares** | **Ownership (%)** |
|  National Pension Service | 6441610 | 7.96 |
|  BlackRock, Inc.(\*1) | 4206522 | 5.20 |
|  CITIBANK.N.A | 2289755 | 2.83 |
|  Pohang University of Science and Technology | 1981047 | 2.45 |
|  Samsung Group | 1861979 | 2.30 |
|  Others | 64152039 | 79.26 |
|  | 80932952 | 100.00 |

---

(\*1) Includes shares held by subsidiaries and others.

As of December 31, 2025, the shares of POSCO HOLDINGS INC. are listed on the Korea Exchange, while its ADRs are listed on the New York Stock Exchange.

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**1. General Information (cont'd)** 

(b) Consolidated subsidiaries

Details of consolidated subsidiaries as of December 31, 2025 and 2024 are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | **Ownership (%)** | **Ownership (%)** | **Ownership (%)** | **Ownership (%)** | **Ownership (%)** | **Ownership (%)** | |
|  | | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | |
|  | <br>**Principal operations** | **POSCO**<br>**HOLDINGS** | **Subsidiaries** | **Total** | **POSCO**<br>**HOLDINGS** | **Subsidiaries** | **Total** | <br>**Region** |
|  **[Domestic]** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO | Steel, rolled products and plates | 100.00 |  | 100.00 | 100.00 |  | 100.00 | Pohang |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO Eco & Challenge Co., Ltd. | Engineering and construction | 52.80 |  | 52.80 | 52.80 |  | 52.80 | Pohang |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO STEELEON Co., Ltd. | Coated steel manufacturing |  | 56.96 | 56.96 |  | 56.96 | 56.96 | Pohang |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO DX | Computer hardware and software distribution | 65.47 |  | 65.47 | 65.47 |  | 65.47 | Pohang |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO Research Institute | Economic research and consulting | 100.00 |  | 100.00 | 100.00 |  | 100.00 | Seoul |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO WIDE Co., Ltd. | Business facility maintenance | 100.00 |  | 100.00 | 100.00 |  | 100.00 | Seoul |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO A&C | Architecture and consulting |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Seoul |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO Venture Capital Co., Ltd. | Investment in venture companies | 100.00 |  | 100.00 | 100.00 |  | 100.00 | Pohang |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; eNtoB Corporation | Electronic commerce |  | 69.32 | 69.32 |  | 69.32 | 69.32 | Seoul |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO FUTURE M CO.,LTD. | Refractories, Anode/Cathode materials manufacturing and sales | 58.18 |  | 58.18 | 59.74 |  | 59.74 | Pohang |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO FLOW Co., Ltd. | Transporting and warehousing | 100.00 |  | 100.00 | 100.00 |  | 100.00 | Gwangyang |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO M-TECH | Packing materials manufacturing and sales |  | 48.85 | 48.85 |  | 48.85 | 48.85 | Pohang |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PNR | Steel by product manufacturing and sales |  | 70.00 | 70.00 |  | 70.00 | 70.00 | Pohang |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO WOMAN'S FUND | Investment in venture companies |  | 40.00 | 40.00 |  | 40.00 | 40.00 | Seoul |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO Group University | Education service and real estate business | 100.00 |  | 100.00 | 100.00 |  | 100.00 | Incheon |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Growth Ladder POSCO K-Growth Global Fund | Investment in venture companies |  | 50.00 | 50.00 |  | 50.00 | 50.00 | Pohang |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO IH | Intellectual Property Services and consulting | 100.00 |  | 100.00 | 100.00 |  | 100.00 | Seoul |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TANCHEON E&E | Refuse derived fuel and power generation |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Seoul |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO Humans | Business assistance service |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Pohang |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mapo Hibroad Parking Co., Ltd. | Construction |  | 71.00 | 71.00 |  | 71.00 | 71.00 | Seoul |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Busan E&E Co., Ltd. | Refuse derived fuel and power generation | 70.00 |  | 70.00 | 70.00 |  | 70.00 | Busan |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO INTERNATIONAL Corporation | Trading, power generation, energy & resource development and others | 72.98 |  | 72.98 | 72.98 |  | 72.98 | Seoul |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pohang Scrap Recycling Distribution<br> Center Co., Ltd. | Steel processing and sales |  | 51.00 | 51.00 |  | 51.00 | 51.00 | Pohang |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Songdo Development PMC (Project<br> Management Company) LLC. | Housing business agency |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Incheon |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Korea Fuel Cell | Fuel cell |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Pohang |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO GEM 1<sup>st</sup> Fund | Investment in venture companies | 98.82 | 1.18 | 100.00 | 98.81 | 1.19 | 100.00 | Pohang |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO MOBILITY SOLUTION | STC, TMC, Plate manufacturing and sales |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Cheonan |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Posco New Growth | Investment in venture companies | 99.89 | 0.11 | 100.00 | 99.89 | 0.11 | 100.00 | Seoul |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; IMP Fund I | Investment in venture companies | 98.05 |  | 98.05 | 98.05 |  | 98.05 | Pohang |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO-Pilbara LITHIUM SOLUTION<br> Co., Ltd. | Lithium manufacturing and sales | 82.00 |  | 82.00 | 82.00 |  | 82.00 | Gwangyang |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO-HY Clean Metal Co., Ltd. | Non-ferrous metal smelting |  | 100.00 | 100.00 |  | 75.00 | 75.00 | Gwangyang |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consus Pf Private Real Estate Fund | REITs |  |  |  |  | 66.67 | 66.67 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; New Energy Hub | Electricity and gas supply |  |  |  |  | 100.00 | 100.00 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Posco Busan Newdeal Fund | Investment in venture companies |  | 32.00 | 32.00 |  | 32.00 | 32.00 | Pohang |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Shinan Green Energy Co., LTD | Electricity production |  | 54.53 | 54.53 |  | 54.53 | 54.53 | Shinahn |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; eSteel4U | Wholesales and retail |  | 61.12 | 61.12 |  | 61.12 | 61.12 | Seoul |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO Social Investment Fund | Investment in venture companies | 20.00 | 50.00 | 70.00 | 20.00 | 50.00 | 70.00 | Pohang |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO Silicon Solution Co., Ltd | Other engineering R&D industries | 100.00 |  | 100.00 | 100.00 |  | 100.00 | Sejong |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consus Pf Private Real Estate Fund No.2 | Real estate development |  |  |  |  | 66.67 | 66.67 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO GS Eco Materials Co., Ltd | Rechargeable battery | 70.25 |  | 70.25 | 51.00 |  | 51.00 | Seoul |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO Lithium Solution Co., Ltd. | Lithium manufacturing and sales | 100.00 |  | 100.00 | 100.00 |  | 100.00 | Gwangyang |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; QSONE Co.,Ltd. | Real estate rental | 100.00 |  | 100.00 | 100.00 |  | 100.00 | Seoul |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO PS Tech | Maintenance service |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Pohang |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO PR Tech | Maintenance service |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Pohang |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO PH Solution | Maintenance service |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Pohang |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO GYS Tech | Maintenance service |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Gwangyang |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO GYR Tech | Maintenance service |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Gwangyang |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO GY Solution | Maintenance service |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Gwangyang |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PCC Facilities Component Fund | Investment Association |  | 60.00 | 60.00 |  | 60.00 | 60.00 | Pohang |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO HOLDINGS CVC 2nd Fund | Investment in new technologies business | 98.77 | 1.23 | 100.00 | 98.76 | 1.24 | 100.00 | Pohang |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; International Energy Expansion for Technology Innovation Fund | Investment in new technologies business |  | 60.00 | 60.00 |  | 60.00 | 60.00 | Pohang |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO CNGR Nickel Solution | High-Purity nickel manufacturing and sales |  |  |  | 60.00 |  | 60.00 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO CVC Scale-Up Fund | Investment in venture companies |  | 60.00 | 60.00 |  | 60.00 | 60.00 | Pohang |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SK SOLRA POWER GENERATION COPORATION | Power generation |  |  |  |  | 100.00 | 100.00 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO ZT AIR SOLUTION | High-Purity rare gas manufacturing and sales | 75.10 |  | 75.10 | 75.10 |  | 75.10 | Gwangyang |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; RNR logistics | Logistics and warehousing |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Seoul |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mastern No.123 Yeoju Samgyo PFV CO., Ltd | Logistics and warehousing |  |  |  |  | 100.00 | 100.00 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO DEEPTECH IP FUND | Investment in new technologies |  | 60.00 | 60.00 |  |  |  | Pohang |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; FUTURE GRAPH CO., LTD. | Spherical graphite manufacturing |  | 100.00 | 100.00 |  |  |  | Gunsan |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Chemgas Korea Co., Ltd. | Specialty gass refining and sales |  | 100.00 | 100.00 |  |  |  | Eumseong |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO-EVER NEW MEDICAL Investment Fund | Investment in new technologies |  | 60.00 | 60.00 |  |  |  | Seoul |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO Stainless Precision & Processing | STS |  | 100.00 | 100.00 |  |  |  | Ansan |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO INTERNATIONAL CVC 1st Fund | Investment in new technologies |  | 100.00 | 100.00 |  |  |  | Pohang |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO CVC 1st Fund | Investment in new technologies |  | 100.00 | 100.00 |  |  |  | Pohang |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; New Zero 2nd Co., Ltd. | SPC |  | 100.00 | 100.00 |  |  |  | Seoul |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO DX CVC 1st Fund | Investment in new technologies |  | 100.00 | 100.00 |  |  |  | Pohang |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO Group AC Fund I | Investment in new technologies | 98.38 | 1.62 | 100.00 |  |  |  | Pohang |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO Safety Solution | Safety consulting | 100.00 |  | 100.00 |  |  |  | Seongnam |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Startup Korea Posco group Openinnovation Fund | Investment in new technologies |  | 70.00 | 70.00 |  |  |  | Pohang |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; FLOW K CO., Ltd. | Logistics and warehousing |  | 70.00 | 70.00 |  |  |  | Gwangyang |

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##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**1. General Information (cont'd)** 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | **Ownership (%)** | **Ownership (%)** | **Ownership (%)** | **Ownership (%)** | **Ownership (%)** | **Ownership (%)** | |
|  | | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | |
|  | <br>**Principal operations** | **POSCO**<br>**HOLDINGS** | **Subsidiaries** | **Total** | **POSCO**<br>**HOLDINGS** | **Subsidiaries** | **Total** | <br>**Region** |
|  **[Foreign]** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO America Corporation | Research&Consulting | 99.45 | 0.54 | 99.99 | 99.45 | 0.54 | 99.99 | USA |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO AUSTRALIA PTY LTD | Raw material sales & mine development | 100.00 |  | 100.00 | 100.00 |  | 100.00 | Australia |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO Canada Ltd. | Coal sales | 100.00 |  | 100.00 | 100.00 |  | 100.00 | Canada |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO Asia Co., Ltd. | Finance | 100.00 |  | 100.00 | 100.00 |  | 100.00 | China |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO-CTPC Co., Ltd. | Steel manufacturing and sales | 100.00 |  | 100.00 | 100.00 |  | 100.00 | China |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO E&C Vietnam Co., Ltd. | Steel structure manufacturing and sales |  |  |  |  | 100.00 | 100.00 | Vietnam |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO (Zhangjiagang) Stainless Steel Co.,Ltd. | Stainless steel manufacturing and sales | 58.60 | 23.88 | 82.48 | 58.60 | 23.88 | 82.48 | China |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO (Thailand) Company Limited | Steel manufacturing and sales |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Thailand |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO-MKPC SDN BHD | Steel manufacturing and sales |  | 70.00 | 70.00 |  | 70.00 | 70.00 | Malaysia |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Qingdao Pohang Stainless Steel Co., Ltd. | Stainless steel manufacturing and sales | 70.00 | 30.00 | 100.00 | 70.00 | 30.00 | 100.00 | China |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO(Suzhou) Automotive Processing Center Co., Ltd. | Steel manufacturing and sales | 90.00 | 10.00 | 100.00 | 90.00 | 10.00 | 100.00 | China |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO-China Qingdao Processing Center Co.Ltd. | Steel manufacturing and sales | 100.00 |  | 100.00 | 100.00 |  | 100.00 | China |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POS-ORE PTY LTD | Iron ore development and sales |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Australia |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO-China Holding Corp. | Holding company | 100.00 |  | 100.00 | 100.00 |  | 100.00 | China |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO JAPAN Co., Ltd. | Steel Marketing, demand development and technology research | 100.00 |  | 100.00 | 100.00 |  | 100.00 | Japan |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POS-GC PTY LTD | Coal sales |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Australia |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO-India Private Limited | Steel manufacturing and sales |  | 100.00 | 100.00 |  | 100.00 | 100.00 | India |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO-India Pune Processing Center. Pvt. Ltd. | Steel manufacturing and sales |  | 100.00 | 100.00 |  | 65.00 | 65.00 | India |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO Japan PC CO.,LTD | Steel manufacturing and sales |  | 86.12 | 86.12 |  | 86.12 | 86.12 | Japan |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO-CFPC Co., Ltd. | Steel manufacturing and sales | 44.66 | 55.34 | 100.00 | 44.66 | 55.34 | 100.00 | China |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO E&C CHINA Co., Ltd. | Civil engineering and construction |  | 100.00 | 100.00 |  | 100.00 | 100.00 | China |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO MPPC S.A. de C.V. | Steel manufacturing and sales | 21.02 | 78.98 | 100.00 | 21.02 | 75.29 | 96.31 | Mexico |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Zhangjigang Pohang Port Co., Ltd. | Loading and unloading service |  | 100.00 | 100.00 |  | 100.00 | 100.00 | China |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO-VIETNAM Co., Ltd. | Steel manufacturing and sales |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Vietnam |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO MEXICO S.A. DE C.V. | Automotive steel sheet manufacturing and sales |  | 98.16 | 98.16 |  | 98.16 | 98.16 | Mexico |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO-Poland Wroclaw Processing Center Sp. z o. o. | Steel manufacturing and sales |  | 60.00 | 60.00 |  | 60.00 | 60.00 | Poland |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POS-NP PTY LTD | Coal sales |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Australia |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; DAEWOO INTERNATIONAL SHANGHAI WAIGAOQIAO CO., LTD | Intermediary trade & bonded warehouse<br> operation |  | 100.00 | 100.00 |  | 100.00 | 100.00 | China |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PT. Bio Inti Agrindo | Forest resources development |  | 85.00 | 85.00 |  | 85.00 | 85.00 | Indonesia |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO ENGINEERING AND CONSTRUCTION AUSTRALIA (POSCO E&C AUSTRALIA) PTY LTD | Construction and engineering service |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Australia |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO-TISCO (JILIN) PROCESSING CENTER Co., Ltd. | Steel manufacturing and sales | 50.00 | 10.00 | 60.00 | 50.00 | 10.00 | 60.00 | China |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO Thainox Public Company Limited | STS cold-rolled steel manufacturing and sales |  | 74.56 | 74.56 |  | 74.56 | 74.56 | Thailand |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; HUNCHUN POSCO HMM INTERNATIONAL LOGISTICS CO., LTD. | Logistics |  | 81.55 | 81.55 |  | 81.55 | 81.55 | China |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO INTERNATIONAL VIETNAM CO., LTD | Trading business |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Vietnam |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO(Chongqing) Automotive Processing Center Co., Ltd. | Steel manufacturing and sales |  | 100.00 | 100.00 |  | 100.00 | 100.00 | China |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SUZHOU POSCO-CORE TECHNOLOGY CO., LTD. | Component manufacturing and sales |  |  |  |  | 100.00 | 100.00 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PT.KRAKATAU POSCO FUTUREM | Quicklime manufacturing and sales |  | 80.00 | 80.00 |  | 80.00 | 80.00 | Indonesia |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO AFRICA (PROPRIETARY) LIMITED | Mine development | 100.00 |  | 100.00 | 100.00 |  | 100.00 | South Africa |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO Center Beijing | Real estate development, rental and management |  | 100.00 | 100.00 |  | 100.00 | 100.00 | China |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO-Malaysia SDN. BHD. | Steel manufacturing and sales |  | 95.42 | 95.42 |  | 95.42 | 95.42 | Malaysia |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PT KRAKATAU BLUE WATER | Wastewater treatment facilities operation and maintenance |  | 67.00 | 67.00 |  | 67.00 | 67.00 | Indonesia |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO INTERNATIONAL MYANMAR CO.,LTD. | Trading business |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Myanmar |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO-Italy Processing Center | Stainless steel sheet manufacturing and sales | 88.89 | 11.11 | 100.00 | 88.89 | 11.11 | 100.00 | Italy |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Myanmar POSCO C&C Company,Limited. | Steel manufacturing and sales |  | 70.00 | 70.00 |  | 70.00 | 70.00 | Myanmar |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO DX VIETNAM | IT service and electric control engineering |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Vietnam |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO INTERNATIONAL GLOBAL DEVELOPMENT PTE.LTD. | Real estate development |  | 75.00 | 75.00 |  | 75.00 | 75.00 | Singapore |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POS-Minerals Corporation | Mine development management and sales |  | 100.00 | 100.00 |  | 100.00 | 100.00 | USA |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO(Wuhu) Automotive Processing Center Co., Ltd. | Steel manufacturing and sales | 68.57 | 31.43 | 100.00 | 68.57 | 31.43 | 100.00 | China |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO Engineering and Construction India Private Limited | Civil engineering and construction |  | 100.00 | 100.00 |  | 100.00 | 100.00 | India |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO COATED STEEL (THAILAND)<br> CO., LTD. | Vehicle steel manufacturing and sales |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Thailand |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO INTERNATIONAL AMARA Co., Ltd. | Real estate development |  | 85.00 | 85.00 |  | 85.00 | 85.00 | Myanmar |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO-Mexico Villagran Wire-rod Processing Center | Steel manufacturing and sales |  | 66.75 | 66.75 |  | 66.75 | 66.75 | Mexico |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO ChengDu Processing Center | Steel manufacturing and sales |  | 43.00 | 43.00 |  | 43.00 | 43.00 | China |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO(Suzhou) Steel Processing Center CO., LTD. | Steel manufacturing and sales |  |  |  |  | 100.00 | 100.00 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO E&C SMART S DE RL DE CV | Civil engineering and construction |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Mexico |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO Philippine Manila Processing Center, Inc. | Steel manufacturing and sales |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Philippines |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO E&C HOLDINGS CO.,Ltd. | Holding company |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Thailand |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PT.KRAKATAU POSCO SOCIAL<br> ENTERPRISE SERVICES INDONESIA | Social enterprise |  | 99.91 | 99.91 |  | 99.91 | 99.91 | Indonesia |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ventanas Philippines Construction Inc | Construction |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Philippines |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SANPU TRADING Co., Ltd. | Raw material trading |  |  |  |  | 70.04 | 70.04 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Zhangjiagang BLZ Pohang International Trading | Steel Intermediate trade |  | 100.00 | 100.00 |  | 100.00 | 100.00 | China |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO RU Limited Liability Company | Trade and business development | 100.00 |  | 100.00 | 100.00 |  | 100.00 | Russia |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; GOLDEN LACE POSCO INTERNATIONAL CO., LTD. | Rice processing |  | 60.00 | 60.00 |  | 60.00 | 60.00 | Myanmar |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO DX China CO.,LTD | IT service and DVR business |  | 100.00 | 100.00 |  | 100.00 | 100.00 | China |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pos-Sea Pte Ltd | Steel Intermediate trade |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Singapore |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO Europe Steel Distribution Center | Logistics & Steel sales |  | 90.00 | 90.00 |  | 90.00 | 90.00 | Slovenia |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO ENGINEERING (THAILAND) CO., LTD. | Construction and engineering service |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Thailand |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO VST CO., LTD. | Stainless steel sheet manufacturing and sales | 95.65 |  | 95.65 | 95.65 |  | 95.65 | Vietnam |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO INTERNATIONAL UKRAINE, LLC. | Grain sales |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Ukraine |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Zhangjiagang Pohang Refractories Co., Ltd. | Refractory materials sales & furnace maintenance |  | 51.00 | 51.00 |  | 51.00 | 51.00 | China |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO Maharashtra Steel Private Limited | Steel manufacturing and sales |  | 100.00 | 100.00 |  | 100.00 | 100.00 | India |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO INDIA PROCESSING CENTER PRIVATE LIMITED | Steel manufacturing and sales |  | 95.32 | 95.32 |  | 95.32 | 95.32 | India |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO TNPC Otomotiv Celik San. Ve Tic. A.S | Steel manufacturing and sales |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Turkiye |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO Vietnam Processing Center Joint Stock Company | Steel manufacturing and sales | 84.04 | 15.96 | 100.00 | 84.04 | 15.96 | 100.00 | Vietnam |

---

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**1. General Information (cont'd)** 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | **Ownership (%)** | **Ownership (%)** | **Ownership (%)** | **Ownership (%)** | **Ownership (%)** | **Ownership (%)** | |
|  | | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | |
|  | <br>**Principal operations** | **POSCO**<br>**HOLDINGS** | **Subsidiaries** | **Total** | **POSCO**<br>**HOLDINGS** | **Subsidiaries** | **Total** | <br>**Region** |
|  **[Foreign]** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO(Liaoning) Automotive Processing Center Co., Ltd. | Steel manufacturing and sales | 90.00 | 10.00 | 100.00 | 90.00 | 10.00 | 100.00 | China |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO-Indonesia Jakarta Processing Center | Steel manufacturing and sales |  | 92.20 | 92.20 |  | 92.20 | 92.20 | Indonesia |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PT.MOTTA RESOURCES INDONESIA | Mine development | 65.00 |  | 65.00 | 65.00 |  | 65.00 | Indonesia |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO TMC INDIA PRIVATE LIMITED | Steel manufacturing and sales |  | 100.00 | 100.00 |  | 100.00 | 100.00 | India |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO AMERICA ALABAMA PROCESSING CENTER CO., LTD. | Steel manufacturing and sales |  | 97.80 | 97.80 |  | 97.80 | 97.80 | USA |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO(Yantai) Automotive Processing Center Co., Ltd. | Steel manufacturing and sales | 90.00 | 10.00 | 100.00 | 90.00 | 10.00 | 100.00 | China |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO India Steel Distribution Center Private Ltd. | Steel logistics |  | 100.00 | 100.00 |  | 100.00 | 100.00 | India |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO YAMATO VINA STEEL JOINT STOCK COMPANY | Steel manufacturing and sales |  | 51.00 | 51.00 |  | 51.00 | 51.00 | Vietnam |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PT.POSCO DX INDONESIA | IT service and electric control engineering |  | 66.99 | 66.99 |  | 66.99 | 66.99 | Indonesia |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO NCR Coal Ltd. | Coal sales |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Canada |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO WA PTY LTD | Iron ore sales & mine development | 100.00 |  | 100.00 | 100.00 |  | 100.00 | Australia |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO AUSTRALIA GP PTY LIMITED | Resource development |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Australia |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PT. KRAKATAU POSCO ENERGY | Electricity production construction and operation |  | 55.00 | 55.00 |  | 55.00 | 55.00 | Indonesia |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO INTERNATIONAL AMERICA CORP. | Trading business |  | 100.00 | 100.00 |  | 100.00 | 100.00 | USA |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO INTERNATIONAL Deutschland GMBH | Trading business |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Germany |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO INTERNATIONAL JAPAN CORP. | Trading business |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Japan |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO INTERNATIONAL SINGAPORE PTE. LTD. | Trading business |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Singapore |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO INTERNATIONAL ITALIA S.R.L. | Trading business |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Italy |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO INTERNATIONAL (CHINA) CO., LTD | Trading business |  | 100.00 | 100.00 |  | 100.00 | 100.00 | China |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO INTERNATIONAL TEXTILE LLC. | Textile manufacturing |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Uzbekistan |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO INTERNATIONAL AUSTRALIA HOLDINGS PTY. LTD. | Resource development |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Australia |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO MAURITIUS LIMITED | Coal development and sales |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Mauritius |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PT. KRAKATAU POSCO | Steel manufacturing and sales |  | 50.00 | 50.00 |  | 50.00 | 50.00 | Indonesia |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO INTERNATIONAL MEXICO, S.A de C.V.. | Trading business |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Mexico |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO INTERNATIONAL MALAYSIA SDN BHD | Trading business |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Malaysia |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PT.POSCO INDONESIA INTI | Consulting | 100.00 |  | 100.00 | 100.00 |  | 100.00 | Indonesia |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO INTERNATIONAL SHANGHAI CO., LTD. | Trading business |  | 100.00 | 100.00 |  | 100.00 | 100.00 | China |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO INTERNATIONAL INDIA PVT., LTD | Trading business |  | 100.00 | 100.00 |  | 100.00 | 100.00 | India |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PT. POSCO E&C INDONESIA | Civil engineering and construction |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Indonesia |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; HUME COAL PTY LTD | Raw material manufacturing |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Australia |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Brazil Sao Paulo Steel Processing Center | Steel manufacturing and sales |  | 76.00 | 76.00 |  | 76.00 | 76.00 | Brazil |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO ENGINEERING & CONSTRUCTION DO BRAZIL LTDA. | Construction |  |  |  |  | 100.00 | 100.00 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO ASSAN TST STEEL INDUSTRY Inc | Steel manufacturing and sales |  | 70.00 | 70.00 |  | 70.00 | 70.00 | Turkiye |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; HONG KONG POSCO E&C (CHINA) INVESTMENT Co., Ltd. | Real estate development and investment |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Hongkong |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JB CLARK HILLS | Apartment construction |  | 70.00 | 70.00 |  | 70.00 | 70.00 | Philippines |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POS-LT Pty Ltd | Lithium mining investment |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Australia |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ZHEJIANG POSCO-HUAYOU ESM CO., LTD | Anode material manufacturing | 14.67 | 45.33 | 60.00 | 14.67 | 45.33 | 60.00 | China |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO Argentina S.A.U. | Mineral exploration/manufacturing/sales | 100.00 |  | 100.00 | 100.00 |  | 100.00 | Argentina |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; GRAIN TERMINAL HOLDING PTE. LTD. | Trading business |  | 75.00 | 75.00 |  | 75.00 | 75.00 | Singapore |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mykolaiv Milling Works PJSC. | Grain trading |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Ukraine |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Yuzhnaya Stevedoring Company Limited LLC. | Cargo handling |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Ukraine |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Posco International (Thailand) Co., Ltd. | Trade |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Thailand |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PT POSCO INTERNATIONAL INDONESIA | Trade |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Indonesia |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PEC POWERCON SDN. BHD. | Construction and engineering service |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Malaysia |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Poland Legnica Sourcing Center Sp. z o.o | Non-ferrous metal Smetling | 100.00 |  | 100.00 | 100.00 |  | 100.00 | Poland |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO INTERNATIONAL E&P MALAYSIA SDN. BHD. | Extraction of Crude petroleum and Natural gas |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Malaysia |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AGPA PTE. LTD. | Holding company |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Singapore |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Senex Holdings PTY LTD(\*1) | Resource Development |  | 50.10 | 50.10 |  | 50.10 | 50.10 | Australia |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Posco International Mexico e-Mobility S.A DE C.V. | Electric Vehicle Parts Manufacturing |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Mexico |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Posco Future Materials Canada Inc. | Holding company |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Canada |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ULTIUM CAM GP INC. | Holding company |  | 85.00 | 85.00 |  | 85.00 | 85.00 | Canada |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ULTIUM CAM LIMITED PARTNERSHIP | Anode material manufacturing |  | 85.00 | 85.00 |  | 85.00 | 85.00 | Canada |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO(Wuhan) Automotive Processing Center Co.,Ltd | Steel manufacturing and sales | 68.57 | 31.43 | 100.00 | 68.57 | 31.43 | 100.00 | China |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO BRAZIL LTDA | Office Administration, Management Consulting |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Brazil |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Port Hedland Green Steel Pty Ltd | Iron and steel manufacturing |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Australia |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PT AGPA REFINERY COMPLEX | Animal/vegetable oil manufacturing |  | 60.00 | 60.00 |  | 60.00 | 60.00 | Indonesia |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO MOBILITY SOLUTION POLAND Sp. z o.o., | Manufacturing, automobile motor parts |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Poland |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PT POSCO INTERNATIONAL ENP INDONESIA | Crude oil and natural gas |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Indonesia |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO INTERNATIONAL E&P USA Inc. | Carbon capture and storage, resource development |  | 100.00 | 100.00 |  | 100.00 | 100.00 | USA |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO FLOW CANADA INC. | Transporting and warehousing |  | 100.00 | 100.00 |  | 100.00 | 100.00 | Canada |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO FLOW (Shanghai) Co.,Ltd | Transporting |  | 100.00 | 100.00 |  | 100.00 | 100.00 | China |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO (BEIJING) Trading Co., Ltd. | Trade |  | 100.00 | 100.00 |  | 100.00 | 100.00 | China |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO INTERNATIONAL ALASKA ENERGY LLC | Energy |  | 100.00 | 100.00 |  |  |  | USA |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO FLOW VIETNAM CO., LTD | Logistics |  | 100.00 | 100.00 |  |  |  | Vietnam |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PT. Prime Agri Resources(\*2) | Food resources development |  | 65.72 | 65.72 |  |  |  | Indonesia |

---

(\*1) Senex Holdings PTY LTD includes 21 subsidiaries including Senex Energy Limited.

(\*2) PT. Prime Agri Resources includes 25 subsidiaries including PT. Prime Agri Resources.

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**1. General Information (cont'd)** 

The controlling company's interests in the subsidiaries increased by W35,622 million (POSCO FUTURE M CO.,LTD. and others) and decreased by W15,440 million (POSCO HY Clean Metal Co., Ltd. and others) in 2025 and 2024, respectively, as a result of changes in the Company's ownership interest in subsidiaries that did not result in a loss of control.

POSCO HOLDINGS INC. received dividends of W946,248 million and W1,403,415 million from its subsidiaries in aggregate in 2025 and 2024, respectively.

As of December 31, 2025, there are no significant restrictions on the ability of subsidiaries to transfer funds to the controlling company, such as in the form of cash dividends, repayment of loans or payment of advances.

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**1. General Information (cont'd)** 

(c) Summarized financial information of principal subsidiaries as of and for the years ended December 31, 2025
and 2024 are as follows:

1) As of and for the year ended December 31, 2025

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* | | | | | |
| **Company** | **Assets** | **Liabilities** | **Equity** | **Sales** | **Net income**<br>**(loss)** |
|  **[Domestic]** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO | 45038613 | 11174306 | 33864307 | 35010837 | 1143180 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO Eco & Challenge Co., Ltd. | 8060650 | 5135292 | 2925358 | 6699511 | (495923) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO STEELEON Co., Ltd. | 479864 | 105249 | 374615 | 1093989 | 14436 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO DX | 814795 | 253134 | 561661 | 1046633 | 52384 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; eNtoB Corporation | 163126 | 90342 | 72784 | 995642 | 4404 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO FUTURE M CO.,LTD. | 7828096 | 3927339 | 3900757 | 2689403 | 31815 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO M-TECH | 155483 | 41231 | 114252 | 357432 | 1411 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO INTERNATIONAL Corporation | 13725392 | 7931430 | 5793962 | 26956598 | 513830 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO MOBILITY SOLUTION | 930712 | 376195 | 554517 | 1182165 | 2104 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO-Pilbara LITHIUM SOLUTION Co., Ltd. | 1199943 | 824709 | 375234 | 151666 | (241325) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; QSONE Co.,Ltd. | 233225 | 35538 | 197687 | 23883 | 9637 |
|  **[Foreign]** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO America Corporation | 177414 | 7388 | 170026 | 12387 | 1103 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO AUSTRALIA PTY LTD(\*1) | 1302758 | 126704 | 1176054 | 120629 | 54161 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO Asia Co., Ltd. | 1070584 | 767290 | 303294 | 33285 | 14276 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO-CTPC Co., Ltd. | 93444 | 30522 | 62922 | 193651 | 1137 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO (Zhangjiagang) Stainless Steel Co.,Ltd. | 1017825 | 828674 | 189151 | 2459184 | (203736) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO (Thailand) Company Limited | 181303 | 51750 | 129553 | 460933 | 2683 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Qingdao Pohang Stainless Steel Co., Ltd. | 101432 | 28485 | 72947 | 172453 | (29916) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO (Suzhou) Automotive Processing Center Co., Ltd. | 367922 | 168201 | 199721 | 697007 | 6927 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO-China Holding Corp. | 899827 | 394606 | 505221 | 26683 | (9895) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO JAPAN Co., Ltd. | 464652 | 259140 | 205512 | 332192 | 3042 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO-India Pune Processing Center. Pvt. Ltd. | 219226 | 156960 | 62266 | 561938 | 13138 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO Japan PC CO.,LTD | 282106 | 186496 | 95610 | 601268 | 7662 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO-CFPC Co., Ltd. | 208779 | 138537 | 70242 | 751210 | (4810) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO MPPC S.A. de C.V. | 540502 | 432030 | 108472 | 990082 | (12703) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO-VIETNAM Co., Ltd. | 297547 | 287963 | 9584 | 800445 | (3180) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO MEXICO S.A. DE C.V. | 516173 | 267912 | 248261 | 779354 | (19631) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO Thainox Public Company Limited | 513813 | 103715 | 410098 | 595928 | (2639) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO Center Beijing | 429839 | 225133 | 204706 | 29728 | (2114) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO COATED STEEL (THAILAND) CO., LTD. | 323171 | 210452 | 112719 | 447580 | 9970 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO INTERNATIONAL AMARA Co., Ltd. | 312345 | 486621 | (174276) | 53994 | (21735) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO VST CO., LTD. | 307026 | 242985 | 64041 | 588177 | (13800) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO Maharashtra Steel Private Limited | 1410778 | 616607 | 794171 | 1962507 | 74068 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO INDIA PROCESSING CENTER PRIVATE LIMITED | 449056 | 328739 | 120317 | 1038388 | 15473 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO (Liaoning) Automotive Processing Center Co., Ltd. | 89376 | 29251 | 60125 | 155217 | 1417 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO YAMATO VINA STEEL JOINT STOCK COMPANY | 433768 | 112956 | 320812 | 391439 | 4037 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PT. KRAKATAU POSCO ENERGY | 297226 | 79844 | 217382 | 36099 | 15052 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO INTERNATIONAL AMERICA CORP. | 678580 | 435460 | 243120 | 2803426 | 11841 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO INTERNATIONAL Deutschland GMBH | 535776 | 517285 | 18491 | 1265871 | 1897 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO INTERNATIONAL JAPAN CORP. | 482108 | 302412 | 179696 | 2596871 | 6490 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO INTERNATIONAL SINGAPORE PTE. LTD. | 377452 | 351911 | 25541 | 3394333 | 2545 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO INTERNATIONAL ITALIA S.R.L. | 353864 | 328875 | 24989 | 848468 | 2395 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PT. KRAKATAU POSCO(\*1) | 3233243 | 2656952 | 576291 | 2627285 | (55749) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO ASSAN TST STEEL INDUSTRY | 528879 | 545403 | (16524) | 578928 | (16426) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO AMERICA ALABAMA PROCESSING CENTER CO., LTD. | 141846 | 135609 | 6237 | 264484 | (5152) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO Argentina S.A.U. | 3024213 | 1860335 | 1163878 | 64359 | (322330) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO-MKPC SDN BHD | 157680 | 54285 | 103395 | 244146 | 5895 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Senex Holdings PTY LTD(\*1) | 2706285 | 1137655 | 1568630 | 392218 | 28069 |

---

---

| | |
|:---|:---|
| (\*1) | Summarized financial information of POSCO AUSTRALIA PTY LTD, PT. KRAKATAU POSCO and Senex Holdings PTY LTD, a subsidiary of POSCO HOLDINGS INC., are based on its consolidated financial information. The financial information of the other entities is based on separate financial statements of each entity.  |

---

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**1. General Information (cont'd)** 

2) Asa of and for the year ended December 31, 2024

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* | | | | | |
| **Company** | **Assets** | **Liabilities** | **Equity** | **Sales** | **Net income**<br>**(loss)** |
|  **[Domestic]** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO | 45681401 | 12574873 | 33106528 | 37556523 | 901542 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO Eco & Challenge Co., Ltd. | 7370054 | 3940069 | 3429985 | 9161904 | 36177 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO STEELEON Co., Ltd. | 530860 | 154751 | 376108 | 1175769 | 32358 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO DX | 871043 | 356499 | 514543 | 1440386 | 86759 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; eNtoB Corporation | 186221 | 116120 | 70101 | 1018894 | 4683 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO FUTURE M CO.,LTD. | 6765713 | 3980328 | 2785385 | 3608988 | (222038) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO M-TECH | 149758 | 37945 | 111813 | 346628 | 568 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO INTERNATIONAL Corporation | 12692301 | 6981884 | 5710417 | 27388739 | 510930 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO MOBILITY SOLUTION | 957411 | 406888 | 550523 | 1179247 | (35088) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO-Pilbara LITHIUM SOLUTION Co., Ltd. | 1254635 | 1038612 | 216023 | 30237 | (122852) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; QSONE Co.,Ltd. | 232238 | 44188 | 188050 | 23087 | 8852 |
|  **[Foreign]** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO America Corporation | 182232 | 8496 | 173737 | 13260 | 6839 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO AUSTRALIA PTY LTD(\*1) | 1030657 | 72827 | 957831 | 147136 | 80352 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO Asia Co., Ltd. | 917019 | 621154 | 295864 | 64318 | (8867) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO-CTPC Co., Ltd. | 108172 | 47479 | 60692 | 264923 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO (Zhangjiagang) Stainless Steel Co.,Ltd. | 1047884 | 654532 | 393352 | 3042140 | (129933) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO (Thailand) Company Limited | 197326 | 77129 | 120197 | 407074 | 2400 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Qingdao Pohang Stainless Steel Co., Ltd. | 135759 | 33597 | 102162 | 211357 | (14197) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO (Suzhou) Automotive Processing Center Co., Ltd. | 441569 | 252305 | 189265 | 783814 | (2773) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO-China Holding Corp. | 1018689 | 512006 | 506683 | 20500 | (17866) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO JAPAN Co., Ltd. | 212669 | 8031 | 204638 | 15989 | 2985 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO-India Pune Processing Center. Pvt. Ltd. | 209999 | 156856 | 53144 | 483584 | 1129 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO Japan PC CO.,LTD | 352915 | 262886 | 90028 | 615346 | 6430 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO-CFPC Co., Ltd. | 331811 | 257870 | 73941 | 980637 | (96) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO MPPC S.A. de C.V. | 661110 | 536852 | 124258 | 1008224 | 3709 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO-VIETNAM Co., Ltd. | 350524 | 337418 | 13106 | 835631 | 1136 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO MEXICO S.A. DE C.V. | 749960 | 475331 | 274629 | 999807 | 16243 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO Thainox Public Company Limited | 512321 | 115149 | 397172 | 576912 | 14948 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO Center Beijing | 457044 | 253675 | 203369 | 32514 | 1065 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO COATED STEEL (THAILAND) CO., LTD. | 324391 | 228055 | 96336 | 402981 | (3165) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO INTERNATIONAL AMARA Co., Ltd. | 322963 | 479031 | (156068) | 43629 | (45325) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO VST CO., LTD. | 304235 | 224360 | 79875 | 510914 | 15771 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO Maharashtra Steel Private Limited | 1471597 | 695297 | 776300 | 1785238 | 180957 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO INDIA PROCESSING CENTER PRIVATE LIMITED | 424014 | 310883 | 113131 | 1003522 | 9669 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO (Liaoning) Automotive Processing Center Co., Ltd. | 89444 | 31260 | 58184 | 209207 | 2339 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO YAMATO VINA STEEL JOINT STOCK COMPANY | 466488 | 142002 | 324486 | 423938 | (24091) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PT. KRAKATAU POSCO ENERGY | 296566 | 89437 | 207130 | 34777 | 12578 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO INTERNATIONAL AMERICA CORP. | 726447 | 489622 | 236825 | 2651352 | 54727 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO INTERNATIONAL Deutschland GMBH | 503928 | 488965 | 14963 | 1099624 | (2776) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO INTERNATIONAL JAPAN CORP. | 998144 | 821148 | 176996 | 2966044 | 21235 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO INTERNATIONAL SINGAPORE PTE. LTD. | 217546 | 194011 | 23534 | 3225062 | 6560 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO INTERNATIONAL ITALIA S.R.L. | 291810 | 271429 | 20381 | 862642 | 2321 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PT. KRAKATAU POSCO(\*1) | 3523003 | 2874800 | 648203 | 2817274 | (168700) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO ASSAN TST STEEL INDUSTRY | 568566 | 568513 | 53 | 503646 | (23238) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO AMERICA ALABAMA PROCESSING CENTER CO., LTD. | 204257 | 192542 | 11715 | 347192 | (7963) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO Argentina S.A.U. | 2786535 | 1260950 | 1525585 | 3203 | (128649) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO-MKPC SDN BHD | 164150 | 72783 | 91367 | 257822 | 7271 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Senex Holdings PTY LTD(\*1) | 2269190 | 910149 | 1359041 | 268350 | 16389 |

---

---

| | |
|:---|:---|
| (\*1) | Summarized financial information of POSCO AUSTRALIA PTY LTD, PT. KRAKATAU POSCO and Senex Holdings PTY LTD, a subsidiary of POSCO HOLDINGS INC., are based on its consolidated financial information. The financial information of the other entities is based on separate financial statements of each entity.  |

---

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**1. General Information (cont'd)** 

(d) Details of non-controlling interests by key entities as of and for the
years ended December 31, 2025 and 2024 are as follows:

1) As of and for the year ended December 31, 2025

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **POSCO**<br>**INTERNATIONAL**<br>**Corporation** | **POSCO**<br>**FUTURE M**<br>**CO., LTD** | **POSCO**<br>**Eco & Challenge**<br>**CO., LTD.** | **POSCO DX** |
|  Current assets | 7555975 | 2170138 | 5882803 | 611990 |
|  Non-current assets | 11197035 | 6973758 | 2400954 | 222402 |
|  Current liabilities | 6612176 | 1658341 | 3995466 | 251651 |
|  Non-current liabilities | 4328180 | 2973477 | 1249252 | 10180 |
|  Equity | 7812654 | 4512078 | 3039039 | 572561 |
|  Non-controlling interests | 989277 | 969142 | 1304255 | 185187 |
|  Sales | 32373604 | 2938698 | 6903145 | 1075175 |
|  Profit (loss) for the period | 636802 | 36522 | (477566) | 52624 |
|  Profit (loss) attributable to non-controlling interests | 42727 | 17039 | (89890) | 6595 |
|  Cash flows from operating activities | 1941539 | (33577) | (950239) | 145951 |
|  Cash flows from investing activities | (1329738) | (1726808) | 444649 | (6201) |
|  Cash flows from financing activities | (465306) | 1430280 | 933357 | (21378) |
|  Effect of exchange rate fluctuation on cash held | (30393) | 5730 | (11658) | (602) |
|  Net increase (decrease) in cash and cash equivalents | 116102 | (324375) | 416109 | 117770 |

---

2) As of and for the year ended December 31, 2024

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **POSCO**<br>**INTERNATIONAL**<br>**Corporation** | **POSCO**<br>**FUTURE M**<br>**CO., LTD** | **POSCO**<br>**Eco & Challenge**<br>**CO., LTD.** | **POSCO DX** |
|  Current assets | 8268175 | 2112748 | 5217785 | 676688 |
|  Non-current assets | 9068151 | 5819711 | 2444945 | 215765 |
|  Current liabilities | 6659697 | 1570070 | 3342723 | 355027 |
|  Non-current liabilities | 3327166 | 3041884 | 806239 | 11528 |
|  Equity | 7349463 | 3320506 | 3513768 | 525898 |
|  Non-controlling interests | 1089512 | 700123 | 1498967 | 169964 |
|  Sales | 32340793 | 3699944 | 9468701 | 1473291 |
|  Profit for the period | 503410 | (231338) | 50986 | 88599 |
|  Profit attributable to non-controlling interests | 104424 | (78781) | 39225 | 29331 |
|  Cash flows from operating activities | 876881 | 670850 | 13430 | 97800 |
|  Cash flows from investing activities | (846138) | (1810360) | (76358) | (12603) |
|  Cash flows from financing activities | (176074) | 1375379 | (360662) | (17219) |
|  Effect of exchange rate fluctuation on cash held | 65672 | 18768 | 14878 | 1039 |
|  Net increase (decrease) in cash and cash equivalents | (79659) | 235869 | (408712) | 69017 |

---

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**1. General Information (cont'd)** 

(e) Details of associates and joint ventures

1) Associates

Details of associates as of December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Ownership (%)** | **Ownership (%)** |  |
| **Investee** | **Category of business** | **2025** | **2024** | **Region** |
|  **[Domestic]** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; New Songdo International City Development, LLC | Real estate rental | 29.90 | 29.90 | Incheon |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gale International Korea, LLC | Real estate rental | 29.90 | 29.90 | Incheon |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KONES, Corp.(\*4) | Technical service |  | 27.41 | Gyeongju |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CHUNGJU ENTERPRISE CITY DEVELOPMENT Co.,Ltd | Real estate development | 29.53 | 29.53 | Chungju |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; DAEHO GLOBAL MANAGEMENT CO., LTD. | Investment advisory service | 35.82 | 35.82 | Pohang |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gunggi Green Energy(\*1) | Electricity generation | 19.00 | 19.00 | Hwaseong |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pohang Special Welding Co.,Ltd. | Welding material and tools manufacturing and sales | 50.00 | 50.00 | Pohang |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EQP POSCO Global NO1 Natural Resources Private Equity Fund | Investment in new technologies | 27.23 | 27.23 | Seoul |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KC Chemicals CORP.(\*1) | Machinery manufacturing | 18.76 | 18.76 | Hwaseong |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Chun-cheon Energy Co., Ltd | Electricity generation | 49.10 | 49.10 | Chuncheon |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Noeul Green Energy(\*1) | Electricity generation | 10.00 | 10.00 | Seoul |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Posco-IDV Growth Ladder IP Fund(\*3) | Investment in new technologies |  | 17.86 | Seoul |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pohang E&E Co., LTD | Investment in waste energy | 30.00 | 30.00 | Pohang |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO Energy Valley Fund | Investment in new technologies | 20.00 | 20.00 | Pohang |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Posco Culture Contents Fund | Investment in new technologies | 31.68 | 31.68 | Seoul |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PCC Amberstone Private Equity Fund 1(\*1) | Investment in new technologies | 8.80 | 8.80 | Seoul |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; UITrans LRT Co., Ltd. | Transporting | 38.19 | 38.19 | Seoul |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO Advanced Technical Staff Fund(\*1) | Investment in new technologies | 15.84 | 15.87 | Seoul |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO 4th Industrial Revolution Fund(\*1) | Investment in new technologies | 19.05 | 19.05 | Seoul |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pureun Tongyeong Enviro Co., Ltd. | Sewerage treatment | 20.40 | 20.40 | Tongyeong |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pure Gimpo Co., Ltd. | Construction | 28.79 | 28.79 | Gimpo |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Posgreen Co., Ltd.(\*1) | Lime and plaster manufacturing | 19.00 | 19.00 | Gwangyang |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Clean Iksan Co., Ltd. | Construction | 23.50 | 23.50 | Iksan |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Innovalley Co., Ltd. | Real estate development | 29.48 | 29.48 | Yongin |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BLUE OCEAN Private Equity Fund | Private equity financial | 27.52 | 27.52 | Seoul |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pocheon-Hwado Highway Corp. | Investment in Expressway | 27.89 | 27.89 | Incheon |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; INNOPOLIS Job Creation Fund II(\*1) | Investment in new technologies | 6.13 | 6.13 | Seoul |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Samcheok Blue Power Co.,Ltd. | Generation of electricity | 34.00 | 34.00 | Samcheok |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; INKOTECH, INC.(\*1) | Electricity generation and sales | 10.00 | 10.00 | Seoul |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PCC Social Enterprise Fund II(\*1) | Investment in new technologies business | 16.67 | 16.67 | Seoul |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PCC-Conar No.1 Fund(\*1) | Investment in new technologies business | 14.88 | 14.88 | Pohang |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; HYOCHUN Co., Ltd(\*1) | Screen door operation | 18.00 | 18.00 | Seoul |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; IBKC-PCC 1st Fund(\*1) | Investment in new technologies business | 18.18 | 18.18 | Pohang |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PCC-Woori LP secondary Fund(\*1) | Investment in new technologies business | 18.85 | 18.85 | Pohang |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Link City PFV Inc. | Contruction, housing construction and sales | 44.00 | 44.00 | Uijeongbu |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BNH-POSCO Bio Healthcare Fund(\*1) | Investment in new technologies business | 18.14 | 18.14 | Pohang |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PCC-BM Project Fund(\*1) | Investment in new technologies business | 8.77 | 8.77 | Pohang |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Energy Innovation Fund I(\*1) | Investment in new technologies business | 10.11 | 10.11 | Pohang |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consus PS development Professional Private Real Estate Fund | Real estate development | 50.00 | 50.00 | Seoul |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSTECH Holdings 4th Fund | Private Investment Association | 40.00 | 40.00 | Pohang |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SNU STH IP Fund | Private Investment Association | 33.33 | 33.33 | Seoul |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; G&G Technology Innovation Fund No.1(\*1) | Investment in new technologies business | 13.97 | 13.97 | Seongnam |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PCC-KAI Secondary I Fund(\*1) | Investment in new technologies business | 19.14 | 19.12 | Seoul |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2021 PCC Bio New Technology Fund(\*1) | Investment in new technologies | 5.45 | 5.45 | Pohang |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consus BG Private Real Estate Fund No.2 | Real estate development | 50.00 | 50.00 | Seoul |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consus NewDeal Infra Development Specialized Private Special Asset Investment Trust 1 | Investment Association | 40.00 | 40.00 | Seoul |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Hybrid ESG Secondary Venture No.1(\*1) | Investment Association | 18.27 | 18.27 | Pohang |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PCC-Bailey Project Fund(\*1) | Investment in new technologies business | 7.27 | 7.27 | Pohang |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CR Inotech Co., Ltd.(\*1) | Manufacturing | 19.00 | 19.00 | Gwangyang |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Posco JK Solid Solution Co., ltd. | Material manufacturing for rechargeable battery | 40.00 | 40.00 | Yangsan |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PCC-Xinova PRE-IPO Fund(\*1) | Investment in new technologies business | 0.91 | 0.91 | Pohang |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consus OS Private Real Estate Fund 2 | Real estate development | 50.00 | 50.00 | Seoul |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; C&P Advanced Material Technology Co., Ltd. | Precursor manufacturing and sales | 20.00 | 20.00 | Pohang |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; P&O Chemical Co., Ltd(\*4) | Chemical production |  | 51.00 | Gwangyang |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; FEWM CO., LTD.(\*2) | Industrial gas production | 40.00 |  | Yongin |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gyeongbuk-Posco Innovative growth Venture Fund(\*2) | Investment in new technologies business | 24.73 |  | Seoul |

---

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**1. General Information (cont'd)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Ownership (%)** | **Ownership (%)** |  |
| **Investee** | **Category of business** | **2025** | **2024** | **Region** |
|  **[Foreign]** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCHROME (PROPRIETARY) LIMITED | Raw material manufacturing and sales | 50.00 | 50.00 | South Africa |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CAML RESOURCES PTY LTD | Raw material manufacturing and sales | 33.34 | 33.34 | Australia |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PT. Wampu Electric Power | Construction and civil engineering | 20.00 | 20.00 | Indonesia |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSK(Pinghu) Steel Processing Center Co., Ltd. | Steel processing and sales | 20.00 | 20.00 | China |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PT.INDONESIA POS CHEMTECH CHOSUN Ref | Refractory manufacturing and sales | 30.19 | 30.19 | Indonesia |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NS-Thainox Auto Co., Ltd. | Stainless sales and transporting | 49.00 | 49.00 | Thailand |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PT. Tanggamus Electric Power(\*1) | Construction and civil engineering | 17.50 | 17.50 | Indonesia |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; LLP POSUK Titanium | Titanium manufacturing and sales | 35.30 | 35.30 | Kazakhstan |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; IMFA ALLOYS FINLEASE LTD | Raw material manufacturing and sales | 24.00 | 24.00 | India |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KRAKATAU POS-CHEM DONG-SUH CHEMICAL(\*1) | Chemical by-product manufacturing and sales | 19.00 | 19.00 | Indonesia |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9404-5515 Quebec Inc. | Investments management | 25.85 | 25.85 | Canada |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Hamparan Mulya | Resource development | 45.00 | 45.00 | Indonesia |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POS-SEAHSTEELWIRE(TIANJIN)CO.,Ltd. | Steel manufacturing and sales | 25.00 | 25.00 | China |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO SeAH Steel Wire(Nantong) Co., Ltd. | Steel processing and sales | 25.00 | 25.00 | China |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POS-SeAH Steel Wire (Thailand) Co., Ltd. | Steel manufacturing and sales | 25.00 | 25.00 | Thailand |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Jupiter Mines Limited(\*1) | Resource development | 6.89 | 6.89 | Australia |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SAMHWAN VINA CO., LTD(\*1) | Steel manufacturing and sales | 17.26 | 17.26 | Vietnam |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Saudi-Korean Company for Maintenance Properties Management LLC(\*1) | Building management | 19.00 | 19.00 | Saudi Arabia |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NCR LLC | Coal sales | 22.05 | 22.05 | Canada |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AMCI (WA) PTY LTD | Iron ore sales & mine development | 49.00 | 49.00 | Australia |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SHANGHAI LANSHENG DAEWOO CORP. | Trading | 49.00 | 49.00 | China |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SHANGHAI WAIGAOQIAO FREE TRADE ZONE LANSHENG DAEWOO IN'L TRADING CO., LTD. | Trading | 49.00 | 49.00 | China |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General Medicines Company Ltd. | Medicine manufacturing and sales | 33.00 | 33.00 | Sudan |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KOREA LNG LTD. | Gas production and sales | 20.00 | 20.00 | England |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AES-VCM Mong Duong Power Company Limited(\*4) | Electricity generation |  | 30.00 | Vietnam |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; South-East Asia Gas Pipeline Company Ltd. | Pipeline construction and management | 25.04 | 25.04 | Myanmar |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; GLOBAL KOMSCO Daewoo LLC | Cotton celluloid manufacturing and sales | 35.00 | 35.00 | Uzbekistan |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO-Poggenamp Electrical Steel Pvt. Ltd.(\*4) | Steel processing and sales |  | 26.00 | India |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Qingdao Pohang DGENX Stainless SteelPipeCo., Ltd | Exhaust meter manufacturing | 40.00 | 40.00 | China |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SHINPOONG DAEWOO PHARMA VIETNAM CO.,LTD(\*4) | Medicine production |  | 3.42 | Vietnam |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ZHEJIANG HUAYOU-POSCO ESM CO., LTD | Anode material Production | 40.00 | 40.00 | China |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MONG DUONG FINANCE HOLDINGS B.V.(\*4) | Financial Holdings |  | 30.00 | Netherlands |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; FQM Australia Holdings Pty Ltd | Non-ferrous metal Mining | 24.32 | 24.32 | Australia |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Qingdao ZhongShou New Energy Technology Co.,Ltd(\*1) | Artificial Graphite manufacturing | 13.00 | 13.00 | China |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Black Rock Mining LTD(\*1) | Mining | 7.45 | 10.07 | Australia |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inner Mongolia Sinuo New Material Technology Co.,Ltd(\*1) | Artificial Graphite manufacturing | 10.12 | 12.85 | China |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ZHANGJIAGANG XIAO-SHA COIL SERVICE CENTER CO.,LTD(\*1) | Steel processing and sales | 17.50 | 17.50 | China |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AJI Marketing and Sales, LLC(\*3) | Coal sales |  | 22.05 | USA |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; M RES NSW HCC II Pty Ltd(\*2)(\*5) | Mining | 92.31 |  | Australia |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO FLOW Holdings(Thailand) Co., Ltd(\*2) | Logistics | 49.00 |  | Thailand |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Posco Flow(Thailand) Co., Ltd(\*2) | Logistics | 49.00 |  | Thailand |

---

---

| | |
|:---|:---|
| (\*1) | The Group has determined that it has significant influence even though the Group's percentage of ownership is less than 20% considering the composition of board of directors.  |

---

(\*2) During the year ended December 31, 2025, the entity was newly classified to associates.

(\*3) During the year ended December 31, 2025, the entity was excluded from associates due to liquidation.

(\*4) During the year ended December 31, 2025, the entity was excluded from associates due to sale of interest.

(\*5) Although the Group holds a majority equity interest as of year-end, it has determined that it has significant influence considering its representation on the board of directors, and thus classified it as an investment in an associate.

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**1. General Information (cont'd)** 

2) Joint ventures

Details of joint ventures as of December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Category of business** | **Ownership (%)** | **Ownership (%)** | |
| **Investee** | **Category of business** | **2025** | **2024** | **Region** |
|  **[Domestic]** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO MC MATERIALS | Steel processing and sales | 60.00 | 60.00 | Gwangyang |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SNNC | Raw material manufacturing and sales | 49.00 | 49.00 | Gwangyang |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO-KB Shipbuilding Restructuring Fund | Investment in new technologies | 18.75 | 18.75 | Seoul |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO-NSC Venture Fund | Investment in new technologies | 16.67 | 16.67 | Seoul |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PoscoPlutus Project 3rd Project fund | Investment in new technologies | 5.96 | 5.96 | Seoul |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PCC Bio 2nd Fund | Investment in new technologies | 19.72 | 19.72 | Seoul |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Union PCC Portfolio Fund | Investment in new technologies | 14.12 | 14.12 | Seoul |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Eco Energy Solution Co., ltd. | Service | 50.00 | 50.00 | Seoul |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; FLOW K CO., Ltd.(\*1) | Logistics and warehousing |  | 40.00 | Gwangyang |
|  **[Foreign]** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KOBRASCO | Steel materials manufacturing and sales | 50.00 | 50.00 | Brazil |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BX STEEL POSCO Cold Rolled Sheet Co., Ltd. | Steel processing and sales | 25.00 | 25.00 | China |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO-SAMSUNG-Slovakia Processing Center | Steel processing and sales | 30.00 | 30.00 | Slovakia |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; YULCHON MEXICO S.A. DE C.V. | Tube for automobile manufacturing | 11.85 | 11.85 | Mexico |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Hyunson Engineering & Construction HYENCO | Construction | 4.89 | 4.89 | Algeria |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO E&C Saudi Arabia | Civil engineering and construction | 40.00 | 40.00 | Saudi Arabia |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pos-Austem Suzhou Automotive Co., Ltd | Automotive parts manufacturing | 19.90 | 19.90 | China |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POS-InfraAuto (Suzhou) Co., Ltd | Automotive parts manufacturing | 16.20 | 16.20 | China |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POS-AUSTEM YANTAI AUTOMOTIVE CO., LTD | Automotive parts manufacturing | 11.10 | 11.10 | China |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POS-AUSTEM WUHAN AUTOMOTIVE CO., LTD | Automotive parts manufacturing | 7.43 | 7.43 | China |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; DMSA/AMSA | Energy & resource development | 3.89 | 3.89 | Madagascar |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Roy Hill Holdings Pty Ltd | Energy & resource development | 12.50 | 12.50 | Australia |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO-NPS Niobium LLC | Mine development | 50.00 | 50.00 | USA |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; HBIS-POSCO Automotive Steel Co., Ltd | Steel manufacturing and sales | 50.00 | 50.00 | China |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PT NICOLE METAL INDUSTRY | Nickel smelting | 49.00 | 49.00 | Indonesia |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Hydrogen Duqm LLC | Green hydrogen/Ammonia product business development | 44.80 | 44.80 | Oman |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nickel Mining Company SAS | Raw material manufacturing and sales | 49.00 | 49.00 | New Caledonia |

---

(\*1) The entity was reclassified as a subsidiary during the period as a result of the acquisition of additional equity interest.

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##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**1. General Information (cont'd)** 

(f) New subsidiaries

Consolidated subsidiaries acquired or newly established during the year ended December 31, 2025 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Company** | **Date of addition** | **Ownership (%)** | **Reason** |
|  POSCO DEEPTECH IP FUND | June 2025 | 60.00 | New establishment |
|  FUTURE GRAPH CO., LTD. | June 2025 | 100.00 | New establishment |
|  CHEMGAS KOREA CO.,LTD | July 2025 | 100.00 | Acquisition |
|  POSCO-EVER NEW MEDICAL Investment Fund | July 2025 | 60.00 | New establishment |
|  POSCO Stainless Precision & Processing | August 2025 | 100.00 | New establishment |
|  POSCO INTERNATIONAL CVC 1st Fund | August 2025 | 100.00 | New establishment |
|  POSCO CVC 1st Fund | August 2025 | 100.00 | New establishment |
|  New Zero 2nd Co., Ltd. | September 2025 | 100.00 | Acquisition |
|  POSCO DX CVC 1st Fund | September 2025 | 100.00 | New establishment |
|  POSCO Group AC Fund I | September 2025 | 100.00 | New establishment |
|  POSCO Safety Solution | September 2025 | 100.00 | New establishment |
|  Startup Korea Posco group Openinnovation Fund | November 2025 | 70.00 | New establishment |
|  POSCO INTERNATIONAL ALASKA ENERGY LLC | November 2025 | 100.00 | New establishment |
|  FLOW K CO., Ltd. | November 2025 | 70.00 | Transferred from associate to subsidiary |
|  POSCO FLOW VIETNAM CO., LTD | December 2025 | 100.00 | New establishment |
|  PT. Prime Agri Resources | December 2025 | 65.72 | Acquisition |

---

(g) Loss of control

Subsidiaries for which the Group has lost control during the year ended December 31, 2025 are as follows:

---

| | | |
|:---|:---|:---|
| **Company** | **Date of**<br> **exclusion** | **Reason** |
|  SANPU TRADING Co., Ltd. | May 2025 | Liquidation |
|  New Energy Hub | June 2025 | Merger |
|  POSCO CNGR Nickel Solution | July 2025 | Liquidation |
|  POSCO ENGINEERING & CONSTRUCTION VIETNAM COMPANY LIMITED | August 2025 | Divestiture |
|  SK SOLRA POWER GENERATION COPORATION | August 2025 | Divestiture |
|  POSCO (Suzhou) Steel Processing Center Co., LTD | October 2025 | Liquidation |
|  SUZHOU POSCO-CORE TECHNOLOGY CO., LTD | December 2025 | Divestiture |
|  Mastern No.123 Yeoju Samgyo PFV CO., Ltd | December 2025 | Divestiture |
|  POSCO ENGINEERING & CONSTRUCTION DO BRAZIL LTDA | December 2025 | Liquidation |
|  Consus Private Real Estate Fund 2 | December 2025 | Liquidation |
|  Consus Pf Private Real Estate Fund No.2 | December 2025 | Liquidation |

---

**2. Statement of Compliance** 

The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards as adopted by the Republic of Korea ("KIFRS"), enacted by *the Act on External Audit of Stock Companies* in the Republic of Korea.

The consolidated financial statements were authorized for issue by the Board of Directors on February 3, 2026 and will be submitted for approval at the shareholders' meeting to be held on March 24, 2026.

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##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**2. Statement of Compliance (cont'd)** 

**Basis of measurement** 

The consolidated financial statements have been prepared on a historical cost basis, except for the following material items in the statement of financial position, as described in the accounting policy below.

(a) Derivatives instruments measured at fair value

(b) Financial instruments measured at fair value through profit or loss

(c) Financial instruments measured at fair value through other comprehensive income

(d) Defined benefit liabilities measured at the present value of the defined benefit obligation less the fair value
of the plan assets

**Functional and presentation currency** 

The financial statements of POSCO HOLDINGS INC. and its subsidiaries are prepared in functional currency of the respective operation. These consolidated financial statements are presented in Korean Won, which is POSCO HOLDINGS INC.'s functional currency which is the currency of the primary economic environment in which POSCO HOLDINGS INC. operates.

**Use of estimates and judgments** 

The preparation of the 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.

(a) Judgments

Information about critical judgments in applying accounting policies that have the most significant effect on the amounts recognized in the consolidated financial statements is included in the following notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Note 1 - Subsidiaries, associates and joint ventures

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Note 11 - Investments in associates and joint ventures

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Note 12 - Joint operations

(b) Assumptions and estimation uncertainties

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment within the next reporting period year is included in the following notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Note 15 - Goodwill and other intangible assets, net

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##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**2. Statement of Compliance (cont'd)** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Note 20 - Provisions

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Note 21 - Employee benefits

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Note 23 - Financial instruments

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Note 29 - Revenue – contract balances

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Note 35 - Income taxes

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Note 38 - Commitments and contingencies

(c) 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 the 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, 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 to the greatest extent possible. Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 1 - unadjusted quoted prices in active markets for identical assets or liabilities.

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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.

Information about the assumptions made in measuring fair values is included in the following note:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Note 23 - Financial instruments

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##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**2. Statement of Compliance (cont'd)** 

**Changes in Accounting Policies** 

Except for the standards and amendments applied for the first time for the reporting period commenced January 1, 2025 described below, the accounting policies applied by the Group in the consolidated financial statements are the same as those applied by the Group in its consolidated financial statements as of and for the year ended December 31, 2024.

(a) Amendments to KIFRS 1021: The Effects of Changes in Foreign Exchange Rates: *Lack of Exchangeability* 

For annual reporting periods beginning on or after January 1, 2025, *Amendments to KIFRS 1021 The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability* specifies how an entity should assess whether a currency is exchangeable and how it should determine a spot exchange rate when exchangeability is lacking. The amendments also require disclosure of information that enables users of its financial statements to understand how the currency not being exchangeable into the other currency affects, or is expected to affect, the entity's financial performance, financial position and cash flows. The amendments had no impact on the Group's consolidated financial statements.

(b) Amendments to KIFRS 1117 *Insurance Contracts: Disclosure of Estimation Techniques for Inputs Used in Measuring Insurance Contract* 

For annual reporting periods ending on or after December 31, 2025, *Amendments to KIFRS 1117 Insurance Contracts* introduce additional disclosure requirements. In certain circumstances, an entity may have insufficient historical data or experience available for specific insurance products. In such cases, insurance-related laws or regulations may require the application of principle-based estimation techniques. Where the estimation techniques used by the entity to determine inputs applied in the measurement of insurance contracts differ from the principle-based estimation techniques required by applicable insurance-related regulations, and the entity concludes that information about such differences is relevant and material to users of the financial statements, the entity is required to disclose the following information:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the estimation techniques for inputs used based on significant judgments by the entity including the basis for
those judgments and how they differ from the principle-based estimation techniques required by applicable regulations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the effects on the estimates of future cash flows, the contractual service margin, insurance revenue and
insurance service expenses that would arise if the principle-based estimation techniques required by applicable regulations had been applied.

However, these amendments are effective only until the annual reporting periods ending on December 31, 2029. The amendments had no impact on the Group's consolidated financial statements.

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##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**3. Material Accounting Policy Information** 

The material accounting policy information applied by the Group in preparation of its consolidated financial statements are included below. The accounting policies set out below have been applied consistently to all periods presented in these consolidated financial statements, except for those as disclosed in note 2.

**Basis of consolidation** 

(a) Business combinations

The Group accounts for business combinations applying the acquisition method.

(b) Non-controlling interests

Non-controlling interests are measured at their proportionate share of the acquiree's identifiable net assets at the acquisition date.

(c) Subsidiaries

The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date on which control ceases.

(d) Transactions eliminated on consolidation

Intra-group balances and transactions, and any unrealized income and expenses arising from intra-group transactions, are eliminated. Unrealized gains arising from transactions with equity-accounted investees are eliminated against the investment to the extent of the Group's interest in the investee. Unrealized losses are eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment.

(e) Business combination of entities or businesses under common control

In a business combination of entities or businesses under common control, the assets acquired and liabilities acquired are recognized at their carrying amounts in the consolidated financial statements of the Group. The difference between the consideration transferred and the carrying amount of the net assets acquired is adjusted in capital surplus**.**

**Foreign operations** 

The assets and liabilities of foreign operations, whose functional currency is not the currency of a hyperinflationary economy, are translated to presentation currency at exchange rates at the reporting date. The income and expenses of foreign operations are translated to functional currency at exchange rates at the dates of the transactions. Foreign currency differences are recognized in other comprehensive income.

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##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**3. Material Accounting Policy Information (cont'd)** 

**Cash and cash equivalents** 

Cash and cash equivalents comprise cash on hand, demand deposits, and short-term investments in highly liquid securities that are readily convertible to known amounts of cash with maturities of three months or less from the acquisition date and which are subject to an insignificant risk of changes in value. Equity investments are excluded from cash and cash equivalents.

**Non-derivative financial assets** 

Trade receivables and debt securities issued are initially recognized when they are originated. All other financial assets are initially recognized when the Group becomes a party to the contractual provisions of the instrument.

A financial asset (unless it is a trade receivable without a significant financing component) is initially measured at fair value plus, for an item not at financial assets measured at fair value through profit or loss, transaction costs that are directly attributable to its acquisition or issue. A trade receivable without a significant financing component is initially measured at the transaction price.

(a) Financial assets measured at amortized cost

Financial assets measured at amortized cost are subsequently measured at amortized cost using the effective interest method. The amortized cost is reduced by impairment losses. Interest income, gains and losses on foreign currency translation and impairment losses are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss.

(b) Equity instruments measured at fair value through other comprehensive income

On initial recognition of an equity investment that is not held for trading, the Group may irrevocably elect to present subsequent changes in the investment's fair value in other comprehensive income. This election is made on an investment-by-investment basis.

Equity instruments measured at fair value through other comprehensive income are subsequently measured at fair value. Dividends are recognized as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognized in other comprehensive income and never reclassified to profit or loss.

(c) Financial assets measured at fair value through profit or loss

All financial assets not classified as measured at amortized cost of fair value through other comprehensive income as described above are measured at fair value through profit or loss. This includes all derivative financial assets. On initial recognition, the Group may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortized cost or at fair value through other comprehensive income as at fair value through profit or loss if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

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##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**3. Material Accounting Policy Information (cont'd)** 

Financial assets measured at fair value through profit or loss are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognized in profit or loss.

(e) Derecognition of financial assets

Financial assets are derecognized when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership. If a transfer does not result in derecognition because the Group has retained substantially all the risks and rewards of ownership of the transferred asset, the Group continues to recognize the transferred asset in its entirety and recognizes a financial liability for the consideration received.

**Inventories** 

Inventory costs, except materials-in-transit in which costs are determined by using specific identification method, are determined by using the total average method or moving-weighted average method. The cost of inventories comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. The allocation of fixed production overheads to the costs of finished goods or work in progress are based on the normal capacity of the production facilities.

**Non-current assets held for sale** 

Non-current assets or disposal groups comprising assets and liabilities that are expected to be recovered primarily through sale rather than through continuing use and are highly probable for immediate sale in their present condition are classified as held for sale.

**Investment property** 

Transaction costs are included in the initial measurement. Subsequently, investment property is carried at depreciated cost less any accumulated impairment losses. Depreciation methods, useful lives and residual values are identical to those applied for property, plant and equipment.

**Property, plant and equipment** 

Property, plant and equipment are initially measured at cost and after initial recognition, are carried at cost less accumulated depreciation and any accumulated impairment losses. The cost of property, plant and equipment includes expenditures arising directly from the construction or acquisition of the asset, any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management and, when the Group has an obligation to remove the asset or restore the site, an estimate of the costs of dismantling and removing the item and restoring the site on which it is located.

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**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**3. Material Accounting Policy Information (cont'd)** 

The cost of replacing a part of an item is recognized in the carrying amount of the item of property, plant and equipment, if the following recognition criteria are met:

(a) it is probable that future economic benefits associated with the item will flow to the Group, and

(b) the cost can be measured reliably.

The carrying amount of the replaced part is derecognized at the time the replacement part is recognized. The costs of the day-to-day servicing of the item are recognized in profit or loss as incurred.

Items of property, plant and equipment are depreciated from the date they are available for use or, in respect of self-constructed assets, from the date that the asset is completed and ready for use. Other than land, the costs of an asset less its estimated residual value are depreciated. Depreciation of property, plant and equipment is recognized in profit or loss on a straight-line basis, which most closely reflects the expected pattern of consumption of the future economic benefits embodied in the asset, over the estimated useful lives of each component of an item of property, plant and equipment. Land is not depreciated.

The estimated useful lives of property, plant and equipment are as follows:

---

| | |
|:---|:---|
|  Buildings | 5-50 years |
|  Structures | 4-50 years |
|  Machinery and equipment | 2-25 years |
|  Vehicles | 3-20 years |
|  Tools | 3-20 years |
|  Furniture and fixtures | 3-20 years |
|  Lease assets | 2-45 years |
|  Bearer plants | 20 years |

---

**Borrowing costs** 

The Group capitalizes borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset as part of the cost of that asset. Other borrowing costs are recognized in expense as incurred. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use or sale. Financial assets, and inventories that are manufactured, or otherwise produced, over a short period of time, are not qualifying assets. Assets that are ready for their intended use or sale when acquired are not qualifying assets.

**Intangible assets** 

Intangible assets are measured initially at cost and, subsequently, are carried at cost less accumulated amortization and accumulated impairment losses.

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**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**3. Material Accounting Policy Information (cont'd)** 

Amortization of intangible assets except for goodwill is calculated on a straight-line basis over the estimated useful lives of intangible assets from the date that they are available for use. The residual value of intangible assets is zero. However, certain intangible assets (i.e., club membership) do not have foreseeable limitations on the period during which they can be utilized, therefore, if the useful life of these intangible assets is assessed as indefinite, they are not being amortized.

---

| | |
|:---|:---|
|  Intellectual property rights | 4-25 years |
| Development expense | 3-5 years |
| Port facilities usage rights | 4-75 years |
| Other intangible assets | 2-15 years |

---

**Exploration for and evaluation of mineral resources** 

POSCO HOLDINGS INC. is engaged in exploration projects for mineral resources through subsidiaries, associates and joint ventures or other contractual arrangements. Expenditures related to the development of mineral resources are recognized as exploration or development intangible assets. The nature of these intangible assets are as follows:

(a) Exploration and evaluation assets

Exploration and evaluation assets consist of expenditures for topographical studies, geophysical studies and trenching. These assets are reclassified as development assets when it is proved that the exploration has identified commercially viable mineral deposit.

(b) Development assets

Upon completion of development and inception of extraction for commercial production of developed proved reserves, the development assets are reclassified as either property, plant and equipment or as intellectual property rights (mining rights) under intangible assets based on the nature of the capitalized expenditure.

**Government grants** 

(a) Grants related to assets

Government grants whose primary condition is that the Group purchases, constructs or otherwise acquires long-term assets are deducted from the carrying amount of the assets and recognized in profit or loss on a systematic and rational basis over the life of the depreciable assets.

(b) Grants related to income

Government grants which are intended to compensate the Group for expenses incurred are deducted from the related expenses.

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**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**3. Material Accounting Policy Information (cont'd)** 

**Leases** 

1) As a lessee

At inception or reassessment of a contract that contains a lease component, the Group allocates the consideration in the contract to each lease and non-lease component on the basis of their relative stand-alone prices.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date. Generally, the Group uses its incremental borrowing rate as the discount rate.

The Group determines its incremental borrowing rate by obtaining interest rates from various external sources and makes certain adjustments to reflect the terms of the lease and type of the asset leased.

The Group presents right-of-use assets in the same line item as is presents underlying assets of the same nature that it owns, and lease liabilities are included in other payables on the consolidated statement of financial position.

The Group has elected not to recognize right-of-use assets and lease liabilities for leases of low-value assets and short-term leases, including IT equipment. The Group recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

2) As a lessor

When the Group acts as a lessor, it determines at lease inception whether each lease is a finance lease or an operating lease. To classify each lease, the Group makes an overall assessment of whether the lease transfers substantially all of the risks and rewards incidental to ownership of the underlying asset. The Group considers certain indicators such as whether the lease is for a major part of the economic life of the asset.

The Group leases out its investment properties. The Group classifies these leases as operating leases. The Group recognizes lease payments received under lease agreements as revenue on a straight-line basis over the lease term.

The Group provides subleases for assets such as vessels and others.

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**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**3. Material Accounting Policy Information (cont'd)** 

**Impairment of financial assets** 

The Group recognizes loss allowance for expected credit losses on:

• financial assets measured at amortized cost

• debt instruments measured at fair value through other comprehensive income

• lease receivables, contractual assets, loan commitments, and financial guarantee contracts.

(a) Judgments on credit risk

The Group assumes that the credit risk on a financial asset has increased significantly if it is more than 30 days past due. The Group considers a financial asset to be in default when the borrower is unlikely to pay its credit obligations to the Group in full, without recourse by the Group to actions such as realizing security (if any is held). The Group considers a debt security to have low credit risk when its credit risk rating is equivalent to investment grade defined by reliable credit rating agencies.

(b) Expected credit losses

Expected credit losses for financial assets measured at amortized cost are recognized in profit or loss. Loss allowances for financial assets measured at amortized cost are deducted from carrying amount of the assets. For debt instruments measured at fair value through other comprehensive income, the loss allowance is charged to profit or loss and is recognized in other comprehensive income.

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**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**3. Material Accounting Policy Information (cont'd)** 

(c) Credit-impaired financial assets

At each reporting date, the Group assesses whether financial assets measured at amortized cost and debt instrument measured at fair value through other comprehensive income are credit-impaired. A financial asset is 'credit-impaired' when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred.

Objective evidence that a financial asset or group of financial assets are impaired includes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• significant financial difficulty of the issuer or borrower

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a breach of contract, such as a default or delinquency in interest or principal payments

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the lender, for economic or legal reasons relating to the borrower's financial difficulty, granting to the
borrower a concession that the lender would not otherwise consider.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• it becoming probable that the borrower will enter bankruptcy or other financial reorganization

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the disappearance of an active market for the financial assets because of financial difficulties

(d) Write-off

The gross carrying amount of a financial asset is written off when the Group has no reasonable expectations of recovering a financial asset in its entirety or a portion. The Group individually makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery based on continuous payments and extinct prescriptions. The Group expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Group's procedures for recovery of amounts due.

**Impairment of non-financial assets** 

The carrying amounts of the Group's non-financial assets, other than assets arising from contract assets, contract assets recognized in accordance with revenue from contracts with customers, employee benefits, inventories, deferred tax assets and non-current assets held for sale, are reviewed at the end of each reporting period to determine whether there is any indication of impairment. If any such indication exists, then the asset's recoverable amount is estimated. Goodwill and intangible assets that have indefinite useful lives or that are not yet available for use, irrespective of whether there is any indication of impairment, are tested for impairment annually by comparing their recoverable amount to their carrying amount.

Management estimates the recoverable amount of an individual asset. If it is impossible to measure the individual recoverable amount of an asset, then management estimates the recoverable amount of cash-generating unit ("CGU"). A CGU is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. The Group determined that individual operating entities are CGUs.

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**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**3. Material Accounting Policy Information (cont'd)** 

**Derivative financial instruments, including hedge accounting** 

Subsequent to initial recognition, derivatives are measured at fair value, and changes therein are recognized as described below.

(a) Hedge accounting

The Group holds currency swaps, currency forwards and commodity future contracts to manage interest rate risk and foreign exchange risk. The Group designated derivatives as hedging instruments to hedge the risk of changes in the fair value of assets, liabilities or firm commitments (a fair value hedge) and foreign currency risk of highly probable forecasted transactions or firm commitments (a cash flow hedge).

🔿 Fair value hedge

Changes in the fair value of a derivative hedging instrument designated as a fair value hedge are recognized in profit or loss. Change in the fair value of the hedged item attributable to the risk hedged is also recognized in profit or loss.

🔿 Cash flow hedge

When a derivative is designated to hedge the variability in cash flows attributable to a particular risk associated with a recognized asset or liability or a highly probable forecasted transaction that could affect profit or loss, the effective portion of changes in the fair value of the derivative is recognized in other comprehensive income, net of tax, and presented in the hedging reserve in equity. Any ineffective portion of changes in the fair value of the derivative is recognized immediately in profit or loss.

(b) Other derivatives

Changes in the fair value of a derivative that is not designated as a hedging instrument are recognized immediately in profit or loss.

**Non-derivative financial liabilities** 

The Group classifies non-derivative financial liabilities into financial liabilities measured at fair value through profit or loss or financial liabilities measured at amortized cost in accordance with the substance of the contractual arrangement and the definitions of financial liabilities. The Group recognizes financial liabilities in the consolidated statement of financial position when the Group becomes a party to the contractual provisions of the financial liability.

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**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**3. Material Accounting Policy Information (cont'd)** 

**Construction work in progress** 

The gross amount due from customers for contract work is presented for all contracts in which profits multiply cumulative percentage-of-completion exceed progress billings. If progress billings exceed profits multiply cumulative percentage-of-completion, the gross amount due to customers for contract work is presented. The amount received from the customer before the construction work is performed is recognized as an advanced received. The amount billed for completed construction work is recognized as accounts receivable (a receivable).

The Group accounts for the remaining rights and performance obligation on the contract with the customers on a net basis. Due from customers for contract work and due to customers for contract work for same contract are offset and presented on a net basis.

**Employee benefits** 

The Group's net obligation in respect of defined benefit plans is calculated using the projected unit credit method.

**Provisions** 

A Provision for warranties is recognized when the underlying products or services are sold, based on historical warranty data and a weighting of possible outcomes against their associated probabilities.

Regarding provision for construction warranties, warranty period starts from the completion of construction in accordance with construction contracts. If the Group has an obligation for warranties, provision for warranties which are estimated based on historical warranty data are recorded as cost of construction and provision for warranties during the construction period.

If the estimated total contract cost of the construction contract exceeds the total contract revenue, the estimated contract cost exceeding the contract revenue is recognized as a provision for construction losses in the remaining contract for which construction has not proceeded.

A provision for restoration regarding contamination of land is recognized in accordance with the Group's announced Environment Policy and legal requirement as needed.

**Emission Rights** 

The Group accounts for greenhouse gases emission right and the relevant liability as follows pursuant to *the Act on Allocation and Trading of Greenhouse Gas Emission* which became effective in Korea in 2015.

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**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**3. Material Accounting Policy Information (cont'd)** 

(a) Greenhouse Gases Emission Right

Greenhouse Gases Emission Right consists of emission allowances which are allocated from the government free of charge and those purchased from the market. The cost includes any directly attributable costs incurred during the normal course of business.

Emission rights held for the purpose of performing the obligation are classified as intangible asset and initially measured at cost and subsequently carried at cost less accumulated impairment losses. The Group derecognizes an emission right asset when the emission allowance is unusable, disposed or submitted to government when the future economic benefits are no longer expected to be probable.

(b) Emission liability

Emission liability is a present obligation of submitting emission rights to the government with regard to emission of greenhouse gas. Emission liability is recognized when there is a high possibility of outflows of resources in performing the obligation and the costs required to perform the obligation are reliably estimable. Emission liability is an amount of estimated obligations for emission rights to be submitted to the government for the performing period. The emission liability is measured based on the expected quantity of emission for the performing period in excess of emission allowance in possession and the unit price for such emission rights in the market at the end of the reporting period. The emission liability is derecognized when submitted to the government.

**Hybrid Bonds** 

Debt and equity instruments issued by the Group are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of financial liability and an equity instrument. When the Group has an unconditional right to avoid delivering cash or another financial asset to settle a contractual obligation, the instruments are classified as equity instruments.

**Revenue from contracts with customers** 

Revenue is measured based on the consideration promised in the contract with the customer. The Group recognizes revenue when the control over a good or service is transferred to the customer. The following are the revenue recognition policies for performance obligations in the contracts with customers in accordance with KIFRS 1115.

(a) Sale of good

The goods sold by the Group consist mainly of steel products from the steel segment and products such as steel, chemicals, auto parts and machinery in the trade segment.

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**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**3. Material Accounting Policy Information (cont'd)** 

For domestic sales, the control of the product is usually transferred to the customer when the product is delivered to the customer, at which point in time revenue is recognized. Invoices are generally due within 10 to 90 days. When a customer makes payment prior to the due date, they are offered a discount at certain percentage of the invoice amount.

For export sales, revenue is recognized at the time when control of the product is transferred to the customer based on the "International Commercial Terms (Incoterms) for Interpretation of Trade Terms" prescribed in the respective contracts, and the Group's export contract generally transfers control to the customer at the shipping of the product. Invoices are usually issued at the date of bill of lading and revenues are recognized based on the terms of Letter of Credit (L/C), Acceptance Condition (D/A), Payment Condition (D/P), Telegraphic Transfer (T/T) and others.

The Group provides certain discount when the customer prepays according to the payment terms. The Group recognized revenue only to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur when discount period expires.

(b) Transportation service

For the performance obligation for transportation services included in the Group's product sales contracts, revenue is recognized over the period when in which the services are provided and the revenue is measured by reference to examining the degree to which the service has been completed so far. The billing date and payment terms for the service charge are the same as the billing date and payment terms for sale of goods.

(c) Construction contracts

In the case of construction contracts where the Group renders construction services for plants, etc., the customer controls the assets as they are being constructed. This is because under those contracts, the Group is able to perform construction or design services to meet the customer's specifications, and if a contract is terminated by the customer, the Group is entitled to reimbursement of all costs incurred to date, including a reasonable margin. When the contract can be reliably estimated, the Group recognizes the contract revenue and contract cost as revenue and costs based on the progress of the contract activity as of the end of the reporting period. The percentage of completion is determined based on the proportion that contract costs incurred for work performed excluding contract cost incurred that do not reflect the stage of completion to date bear to the estimated total contract costs.

If the outcome of the contract cannot be reliably estimated, the revenue is recognized only to the extent of the contract costs that are probable to be recovered.

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**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**3. Material Accounting Policy Information (cont'd)** 

When it is probable that total contract costs will exceed total contract revenue, the expected losses are immediately recognized as an expense.

The Group issues an invoice when the customer has completed a progress confirmation and generally the payment is due within 45 days from the invoice date.

(d) Certain construction contracts for apartments

For certain construction service contracts for apartments where the criterion of an enforceable right to payment for performance is met under KIFRS 1115, even if the legal ownership or physical occupancy of the incomplete construction is not transferred to the customer during the construction period, revenue is recognized based on percentage of completion by considering the terms and conditions described in the relevant law and contracts such as the guarantee for sale policy, government approval on business plan, payment and termination terms. For certain construction contracts for apartments and shopping centers where the criterion of an enforceable right to payment for performance is not met during the construction period, the Group recognizes revenue upon completion of construction when the control of the apartments and shopping centers are transferred to customers.

In the meantime, the billing point and settlement terms of the pre-sale contract differ depending on the contract terms.

**Finance income and finance costs** 

The Group's finance income and finance costs include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• interest income;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• interest expense;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• dividend income;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the foreign currency gain or loss on financial assets and financial liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the net gain or loss on financial assets measured at fair value through profit or loss;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• hedge ineffectiveness recognized in profit or loss; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the net gain or loss on the disposal of investments in debt securities measured at fair value through other
comprehensive income.

Interest income or expense is recognized using the effective interest method. Dividend income is recognized in profit or loss on the date on which the Group's right to receive payment is established.

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**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**3. Material Accounting Policy Information (cont'd)** 

**Income taxes** 

The Group recognizes interest and penalties related to corporate tax as if it is applicable to the income taxes, the Group applies KIFRS 1012 *Income Taxes*, if it is not applicable to the income taxes, the Group applies KIFRS 1037 *Provisions Contingent Liabilities and Contingent Assets*.

The group applies the consolidated tax payment system, which treats the company and its subsidiaries economically integrated as a single taxable unit, combining their incomes to pay corporate tax.

(a) Current corporate tax

By applying the consolidated tax system, the group calculates the current corporate tax of the consolidated tax entity, including domestic subsidiaries that meet the criteria for consolidated taxation under the Corporate Tax Act, and records the corresponding amount as the group's current corporate tax liability subject to payment. The current corporate tax is calculated based on the taxable income of the current period. Taxable income differs from the profit or loss on the comprehensive income statement because it excludes gains or losses to be added or deducted in other tax periods, as well as non-taxable items or non-deductible expenses. Unpaid corporate taxes related to the consolidated entity's current corporate tax are calculated using enacted or substantively enacted tax rates.

Current corporate tax assets and liabilities are offset only when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or to realize the asset and settle the liability simultaneously.

(b) Deferred Corporate Tax

When measuring deferred tax assets and liabilities, the tax effects are reflected based on the expected manner in which the consolidated entity will recover or settle the carrying amounts of related assets and liabilities at the end of the reporting period. For temporary differences related to investments in subsidiaries and associates, deferred tax liabilities are recognized for all temporary differences unless the consolidated entity controls the timing of their reversal and it is probable that the temporary differences will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences are recognized when it is probable that the temporary differences will reverse in the foreseeable future and taxable income will be available against which the temporary differences can be utilized. However, deferred tax is not recognized for temporary differences arising from the initial recognition of goodwill or transactions that are not business combinations and do not affect accounting profit or taxable income at the time of the transaction.

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**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**3. Material Accounting Policy Information (cont'd)** 

Deferred tax assets are recognized to the extent that unused tax losses, tax credits, and deductible temporary differences are likely to be utilized against future taxable income. Future taxable income is determined by the reversal of related taxable temporary differences. If taxable temporary differences are insufficient to fully recognize deferred tax assets, the consolidated entity considers the likelihood of future taxable income based on the reversal of existing temporary differences in its business plan. The carrying amount of deferred tax assets is reviewed at the end of each reporting period, and reduced when it is no longer probable that sufficient taxable income will be available to utilize the benefits of the deferred tax assets.

Deferred tax assets and liabilities are measured using tax rates enacted or substantively enacted at the end of the reporting period, expected to apply in the period when the asset is realized or the liability is settled. Deferred tax assets and liabilities are offset only when they relate to income taxes imposed by the same tax authority, the consolidated entity has a legally enforceable right to offset the recognized amounts, and there is an intention to settle current corporate tax liabilities and assets on a net basis.

**Segment Reporting** 

Information of each operating segment is reported in a manner consistent with the internal business segment reporting provided to the chief operating decision-maker (Note 40). Operating results are regularly reviewed by the Group's chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance and for which discrete financial information is available.

**Joint arrangements** 

Joint arrangements in which two or more parties have joint control are classified as joint operations or joint ventures. Participants in a joint operation retain rights and obligations for the joint operation's assets and liabilities and recognizes its share of the joint operation's assets and liabilities, income and expenses. Participants in a joint venture have rights to the net assets of the joint venture, and the equity method is applied.

**Standards issued but not yet effective** 

The new and amended standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Group's consolidated financial statements are disclosed below. The Group has not early adopted the new or amended standards in preparation of these consolidated financial statements.

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**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**3. Material Accounting Policy Information (cont'd)** 

(a) Amendments to KIFRS 1109 *Financial Instruments* and 1107: *Financial Instruments: Disclosures – Classification and Measurement of Financial Instruments* 

The amendments to KIFRS 1109 *Financial Instruments* and KIFRS 1107 *Financial Instruments: Disclosures – Classification and Measurement of Financial Instruments* include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Clarification that a financial liability is derecognized on the settlement date and introductions of an
accounting policy choice to derecognize financial liabilities that are settled by using electronic payment system before the settlement date (if specific criteria are met);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Additional guidance as to how to assess contractual cash flows of financial assets with environmental, social and
corporate governance (ESG) and similar features;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Clarification on what constitutes non-recourse feature and the
characteristics of contractually linked financial instruments; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Introduction of disclosures on financial instruments with contingent features and additional disclosure
requirements for equity instruments measured at fair value through other comprehensive income.

The amendments are effective for annual periods beginning on or after January 1, 2026. Early adoption is permitted, but only for the classification of financial assets and the related disclosures. The Group does not plan to early adopt the amendments.

(b) Annual Improvements to KIFRS – Volume 11

Annual Improvements to KIFRS - Volume 11 have been announced for the purpose of improving consistency of requirements set out in each standard, enhancing clarity, and providing better understanding of the amendments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Amendments to KIFRS 1101 *First-time adoption of KIFRS: Hedge accounting by a first-time adopter* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Amendments to KIFRS 1107 *Financial Instruments: Disclosures: Gain or loss on derecognition, Guidance for application of amendments in practice* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Amendments to KIFRS 1109 *Financial Instruments: Accounting for derecognition of lease liabilities and definition of transaction prices* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Amendments to KIFRS 1110 *Consolidated Financial Statements: Determination of a 'de facto agent'* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Amendments to KIFRS 1007 *Statement of Cash Flows: Cost Method* 

The amendments will be effective for the annual periods beginning on or after January 1, 2026. Early adoption is permitted but will need to be disclosed. The amendments are not expected to have a material impact on the Group's consolidated financial statements.

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**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**3. Material Accounting Policy Information (cont'd)** 

(c) Amendments to KIFRS 1109 *Financial Instruments* and KIFRS 1107 *Financial Instruments: Disclosures* - Contracts Referencing Nature-dependent Electricity

The key amendments are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Clarification on the application of the 'own-use' requirements for contracts within the scope;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Amendment to the designation criteria for designating cash flow hedge items in cash flow hedge relationships for
contracts within the scope; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Introduction of new disclosure requirements to enable users of financial statements to understand the effects of
these contracts on the entity's financial performance and cash flows.

The amendments will be effective for the annual periods beginning on or after January 1, 2026. Early adoption is permitted but will need to be disclosed. The amendments related to the 'own-use exception' are to be applied retrospectively, while the amendments relating to hedge accounting are to be applied prospectively to new hedge relationships designated after the date of initial application. In addition, the disclosure amendments in KIFRS 1107 shall be applied together with the amendments to KIFRS 1109. When comparative information is not restated, comparative information for the related disclosures is not required to be presented.

The amendments are not expected to have a material impact on the Group's consolidated financial statements.

(d) Standards to KIFRS 1118 *Presentation and Disclosure in Financial Statements* 

KIFRS 1118 *Presentation and Disclosure in Financial Statements*, which replaces KIFRS 1001 *Presentation of Financial Statements*, has been issued. KIFRS 1118 introduces new requirements for the presentation of the income statement, including specified totals and subtotals. In addition, an entity is required to classify all income and expenses in the income statement into one of five categories: operating, investing, financing, income taxes, and discontinued operations - with the first three categories newly introduced. KIFRS 1118 further requires the disclosure of newly defined management-defined performance measures and subtotals of income and expenses and introduces new requirements for aggregating and disaggregating financial information, based on the identified 'roles' of the primary financial statements and the notes.

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##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**3. Material Accounting Policy Information (cont'd)** 

As a consequence of the issuance of KIFRS 1118, limited-scope amendments have been made to KIFRS 1007 *Statement of Cash Flows*. For example, changing the starting point for determining cash flows from operating activities under the indirect method from profit or loss for the period to operating profit or loss, and removing accounting policy choices relating to the classification of cash flows arising from dividends and interest. Further consequential amendments have also been made to other Standards.

KIFRS 1118 and the related amendments to other standards will be effective for the annual periods beginning on or after January 1, 2027. Early adoption is permitted but will need to be disclosed. KIFRS 1118 is to be applied retrospectively upon initial application.

The Group is currently assessing the impact of these amendments on its consolidated financial statements and the related notes. Items expected to have a material impact on the Group's consolidated financial statements upon initial application include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Rental income, fair value changes of investment properties, and share of profit (loss) of equity-accounted associates and joint ventures will be classified within the investing category in the income statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Foreign exchange differences will be classified in the same category as the income and expenses of the item that
gave rise to those differences.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The following new disclosures will be required:

(a) Management-defined performance measures (MPMs);

(b) Where expenses in the operating category of the income statement are presented by function, specified expenses
by nature; and

(c) A reconciliation for each separately presented line item in the income statement between the amounts previously
presented under KIFRS 1001 and the restated amounts applying KIFRS 1118.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In the statement of cash flows, interest received and interest paid will be classified as investing activities
and financing activities, respectively.

**4. Financial risk management** 

The Group has exposure to the following risks from its use of financial instruments:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• credit risk

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• liquidity risk

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• market risk

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• • capital risk

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##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**4. Financial risk management (cont'd)** 

This note presents information about the Group's exposure to each of the above risks, the Group's objectives, policies and processes for measuring and managing risks, and the Group's capital management. Further quantitative disclosures are included throughout these consolidated financial statements.

(a) Financial risk management

1) Risk management framework

The Board of Directors has overall responsibility for the establishment and oversight of the Group's risk management framework. The Group's risk management policies are established to identify and analyze the risks faced by the Group, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Group's activities.

The Group, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations.

2) Credit risk

Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Group's receivables from customers and investment securities. In addition, credit risk arises from finance guarantees.

The Group implements a credit risk management policy under which the Group only transacts business with counterparties that have a certain level of credit rate evaluated based on financial condition, historical experience, and other factors. The Group's exposure to credit risk is influenced mainly by the individual characteristics of each customer. The default risk of a nation or an industry in which a customer operates its business does not have a significant influence on credit risk. The Group has established a credit policy under which each new customer is analyzed individually for creditworthiness.

The Group establishes an allowance for impairment that represents its estimate of expected losses in respect of trade and other receivables. The main components of this allowance are a specific loss component that relates to individually significant exposures, and a collective loss component established for companies of similar assets in respect of losses that have been incurred.

Credit risk also arises from transactions with financial institutions, and such transactions include transactions of cash and cash equivalents, various deposits, and financial instruments such as derivative contracts. The Group manages its exposure to this credit risk by only entering into transactions with banks that have high international credit ratings. The Group's treasury department authorizes, manages, and overseas new transactions with financial institutions with whom the Group has no previous relationship.

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##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**4. Financial risk management (cont'd)** 

Furthermore, the Group limits its exposure to credit risk of financial guarantee contracts by strictly evaluating their necessity based on internal decision making processes, such as the approval of the Board of Directors.

3) Liquidity risk

Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Group's approach to managing liquidity is to ensure, to the greatest extent possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group's reputation.

The Group's cash flow from business, borrowing or financing is sufficient to meet the cash requirements for the Group's strategic investments. Management believes that the Group is capable of raising funds by borrowing or financing if the Group is not able to generate cash flow requirements from its operations. The Group has committed borrowing facilities with various banks.

4) Market risk

Market risk means that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. The goal of market risk management is optimization of profit and controlling the exposure to market risk within acceptable limits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;① Currency risk

The Group's policy in respect of foreign currency risks is a natural hedge whereby foreign currency income is offset with foreign currency expenditures. The remaining net exposures after the natural hedge have been hedged using derivative contracts such as forward exchange contracts. In addition, the Group's derivative transactions are limited to hedging actual foreign currency transactions and speculative hedging is not permitted. Based on this policy, the Group has performed currency risk management specific to various characteristics of different segments. The entities in the steel segment reduces the foreign currency exposure by repayment of foreign currency borrowings subjected to investment in overseas when its maturities come.

The entities in the engineering and construction segment have hedged foreign currency risks by using forward exchange contracts. Entities in the trading segment have hedged foreign currency risks by using forward exchange contracts when the foreign currencies received and paid are different.

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##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**4. Financial risk management (cont'd)** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;② Interest rate risk

The Group manages the exposure to interest rate risk by adjusting the borrowing structure ratio between borrowings at fixed interest rate and variable interest rate. The Group monitors interest rate risks regularly in order to avoid exposure to interest rate risk on borrowings at variable interest rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;③ Other market price risk

Equity price risk arises from fluctuation of market price of listed equity securities. Management of the Group measures regularly the fair value of listed equity securities and the risk of variance in future cash flow caused by market price fluctuations. Significant investments are managed separately and all buy and sell decisions are approved by management of the Group.

(b) Management of capital

The fundamental goal of capital management is the maximization of shareholders' value by means of the stable dividend policy and the retirement of treasury shares. The capital structure of the Group consists of equity and net borrowings (total borrowings after deducting cash and cash equivalents). The Group applied the same capital risk management strategy that was applied in the previous period.

Net borrowing-to-equity ratio as of December 31, 2025 and 2024 is as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2024** |
|  Total borrowings | W | 28492000 | 25997367 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Cash and cash equivalents |  | 7049800 | 6767898 |
|  Net borrowings |  | 21442200 | 19229469 |
|  Total equity |  | 62377691 | 61450368 |
|  Net borrowings-to-equity ratio |  | 34.37% | 31.29% |

---

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##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**5. Cash and Cash Equivalents** 

Cash and cash equivalents as of December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2024** | **2024** |
|  Cash | W | 8449 |  | 9189 |
|  Demand deposits and checking accounts |  | 2193991 |  | 2220202 |
|  Time deposits |  | 1994158 |  | 1908284 |
|  Other cash equivalents |  | 2853202 |  | 2630223 |
|  | W | 7049800 |  | 6767898 |

---

As of December 31, 2025 and 2024, cash and cash equivalents of subsidiaries of the Group, such as POSCO amounting to W339,064 million and W46,650 million, respectively, are restricted.

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##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**6. Trade Accounts and Notes Receivable** 

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

---

| | | | |
|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2024** |
|  **Current** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trade accounts and notes receivable | W | 10133240 | 9654940 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from customers for contract work |  | 1594458 | 1488180 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Allowance for doubtful accounts |  | (529724) | (321501) |
|  | W | 11197974 | 10821619 |
|  **Non-current** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trade accounts and notes receivable | W | 64902 | 72387 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Allowance for doubtful accounts |  | (45194) | (44608) |
|  | W | 19708 | 27779 |

---

The Group discounted trade accounts receivable in accordance with trade accounts receivable factoring agreements with financial institutions for the years ended December 31, 2025 and 2024. This transaction is a transaction with recourse right because the Group is obligated to pay the amount to the bank, etc. if the trade accounts receivable are not recovered at maturity, and the transaction is accounted for as secured borrowing. As of December 31, 2025 and 2024, the book value of the trade accounts receivable from the transaction is W136,758 million and W119,076 million, respectively, and the amount is included in the short-term borrowings.

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##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**7. Other Receivables** 

(a) The details of other receivables as of December 31, 2025 and 2024, are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2024** |
|  **Current** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term loans | W | 348621 | 375244 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other accounts receivable |  | 1276332 | 1671039 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued income |  | 341802 | 293985 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits |  | 106612 | 80007 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 36209 | 28480 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease receivables |  | 14432 | 18224 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Allowance for doubtful accounts |  | (203323) | (205656) |
|  | W | 1920685 | 2261323 |
|  **Non-current** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term loans(\*1) | W | 1369527 | 1247255 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other accounts receivable |  | 461676 | 192736 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued income |  | 183455 | 189565 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits |  | 141782 | 142698 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease receivables |  | 65676 | 76680 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Allowance for doubtful accounts |  | (586863) | (542605) |
|  | W | 1635253 | 1306329 |

---

(\*1) The Group 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.

(b) The details of lease receivables are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(in millions of Won)* | | | | |
| **Customer** | **Leased items** | **2025** | **2025** | **2024** |
|  Pohang University of Science and Technology | Lease contract | W | 7267 | 7429 |
|  Korea Business Angels Association | Lease contract |  | 1562 | 2162 |
|  HEUNG-A SHIPPING CO., LTD. | 4 Tankers |  | 43558 | 45179 |
|  Executive Offshore, PT Wintermar, COHC, Myanma Port Authority | Helicopter, Ship, Jetty |  | 27721 | 40134 |
|  |  | W | 80108 | 94904 |

---

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##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**7. Other Receivables (cont'd)** 

(c) As of December 31, 2025 and 2024, total lease investment and net lease investment are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2024** |
|  Less than 1 year | W | 15298 | 19051 |
|  1 year ~ 3 years |  | 23072 | 31805 |
|  3 years ~ 5 years |  | 14067 | 9848 |
|  Over 5 years |  | 55424 | 68527 |
|  Undiscounted lease payments |  | 107861 | 129231 |
|  Unrealized interest income |  | (27753) | (34327) |
|  Present value of minimum lease payment | W | 80108 | 94904 |

---

**8. Other Financial Assets** 

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

---

| | | | |
|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2024** |
|  **Current** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives assets | W | 235924 | 465178 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities |  | 927586 | 400771 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposit instruments(\*1) |  | 7123233 | 6420797 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term financial instruments(\*1) |  | 491841 | 1212643 |
|  | W | 8778584 | 8499389 |
|  **Non-current** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives assets | W | 426649 | 497698 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities(\*2) |  | 1721439 | 1171544 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities |  | 172181 | 115601 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other securities(\*2) |  | 696148 | 762177 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposit instruments(\*1) |  | 44425 | 24631 |
|  | W | 3060842 | 2571651 |

---

---

| | |
|:---|:---|
| (\*1) | As of December 31, 2025 and 2024, financial instruments amounting to W362,150 million and W386,816 million, respectively, are restricted in use for financial arrangements, pledge and others.  |

---

(\*2) As of December 31, 2025 and 2024, W122,285 million and W182,862 million of equity and other securities, respectively, have been provided as collateral for borrowings, construction projects and others.

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##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**9. Inventories** 

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

---

| | | | |
|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2024** |
|  Finished goods | W | 2754668 | 2741236 |
|  M erchandise |  | 1247922 | 1166464 |
|  Semi-finished goods |  | 2764000 | 2659707 |
|  Raw materials |  | 3333252 | 3764453 |
|  Fuel and materials |  | 1095038 | 1038854 |
|  Construction inventories |  | 166689 | 200825 |
|  M aterials-in-transit |  | 2490175 | 2889334 |
|  Others |  | 169010 | 118391 |
|  |  | 14020754 | 14579264 |
| &nbsp;&nbsp;&nbsp;&nbsp; Less: Allowance for inventories valuation(\*1) |  | (396321) | (435764) |
|  | W | 13624433 | 14143500 |

---

(\*1) For the years ended December 31, 2025 and 2024, allowance for inventories valuation was reversed by W25,482 million and increased by W77,832 million, respectively.

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

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2024** | **2024** |
|  Finished goods | W | 158268 |  | 187902 |
|  M erchandise |  | 7255 |  | 14288 |
|  Semi-finished goods |  | 90155 |  | 103751 |
|  Raw materials |  | 115651 |  | 113413 |
|  Fuel and materials |  | 6069 |  | 6060 |
|  Construction inventories |  | 7989 |  | 6420 |
|  Others |  | 10934 |  | 3930 |
|  | W | 396321 |  | 435764 |

---

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##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**10. Assets Held for Sale** 

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

---

| | | | |
|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2024(\*1,2)** |
|  **Asset** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | W | 1924 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Account reveivables and other receivables |  | 314 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Equity Securities |  | 7276 | 604439 |
| &nbsp;&nbsp;&nbsp;&nbsp; Property, plant and equipment |  | 10361 | 4319 |
| &nbsp;&nbsp;&nbsp;&nbsp; Intangible assets |  | 285 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Others |  | 7 |  |
|  | W | 20167 | 608758 |
|  **Liability** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Other receivables | W | 3419 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Provisions |  | 259 |  |
|  | W | 3678 |  |

---

---

| | |
|:---|:---|
| (\*1) | During the year ended December 31, 2025, the Group disposed of the equity security of Nippon Steel Corporation amounting to W467,796 million, which had been classified as assets held for sale during the year ended December 31, 2024, and recognized loss on disposal of assets held for sale of W9,883 million.  |

---

(\*2) The equity securities of AES Mong Duong Power Co., Ltd. and Mong Duong Finance Holdings B.V, which had been classified as assets held for sale during the year ended December 31, 2024, were disposed of during the year ended December 31, 2025.

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##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**11. Investments in Associates and Joint ventures** 

(a) Investments in associates and joint ventures as of December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2024** | **2024** |
|  Investments in associates | W | 1844618 |  | 1632386 |
|  Investments in joint ventures |  | 3135535 |  | 3106407 |
|  | W | 4980153 |  | 4738793 |

---

(b) Details of investments in associates as of December 31, 2025 and 2024 are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2024** |
| **Company** | **Number**<br>**of shares** | **Ownership**<br>**(%)** | **Acquisition**<br>**cost** | **Acquisition**<br>**cost** | **Book value** | **Book value** | **Book value** |
|  **[Domestic]** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Samcheok Blue Power Co., Ltd.(\*1) | 4507138 | 34.00 | W | 473093 | W | 421699 | 392269 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Chun-cheon Energy Co., Ltd(\*1) | 17308143 | 49.10 |  | 86541 |  | 16685 | 14054 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pocheon-Hwado Highway Corp.(\*1) | 7109230 | 27.89 |  | 35546 |  | 17194 | 14834 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CHUNGJU ENTERPRISE CITY DEVELOPMENT Co., Ltd | 944920 | 29.53 |  | 4725 |  | 12096 | 12401 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PCC Amberstone Private Equity Fund 1(\*2) | 3077195168 | 8.80 |  | 3077 |  | 2791 | 6181 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others(\*1) |  |  |  |  |  | 134363 | 122688 |
|  |  |  |  |  |  | 604828 | 562427 |
|  **[Foreign]** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; South-East Asia Gas Pipeline Company Ltd. | 50082 | 25.04 |  | 87962 |  | 263375 | 279349 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9404-5515 Quebec Inc. | 284463243 | 25.85 |  | 328509 |  | 411602 | 426276 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AMCI (WA) PTY LTD | 49 | 49.00 |  | 209664 |  | 162606 | 68478 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KOREA LNG LTD. | 2400 | 20.00 |  | 135205 |  | 19524 | 25622 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PT. Wampu Electric Power(\*1) | 8708400 | 20.00 |  | 10054 |  | 16483 | 17680 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO SEAH STEEL WIRE(NANTONG) CO., LTD. | 50 | 25.00 |  | 4723 |  | 11994 | 10713 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; M RES NSW HCC II Pty Ltd(\*3) | 72000000 | 92.31 |  | 104511 |  | 101884 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others(\*1) |  |  |  |  |  | 252322 | 241841 |
|  |  |  |  |  |  | 1239790 | 1069959 |
|  |  |  |  |  | W | 1844618 | 1632386 |

---

---

| | |
|:---|:---|
| (\*1) | As of December 31, 2025 and 2024, investments in associates amounting to W 486,995 million and W452,614 million, respectively, are provided as collateral in relation to the associates' borrowings.  |

---

---

| | |
|:---|:---|
| (\*2) | As of December 31, 2025, 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.  |

---

(\*3) As of December 31, 2025, the entitiy is classified as an investment in an associate as the Group is considered to have significant influence based on the composition of the board of directors although the Group's ownership interest is more than a majority.

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##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**11. Investments in Associates and Joint ventures (cont'd)** 

(c) Details of investments in joint ventures as of December 31, 2025 and 2024 are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2025** | **2025** | **2025** | **2025** | **2024** |
| **Company** | **Number**<br>**of shares** | **Ownership**<br>**(%)** | **Acquisition**<br>**cost** | **Acquisition**<br>**cost** | **Book value** | **Book value** | **Book value** |
|  **[Domestic]** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO MC MATERIALS | 11568000 | 60.00 | W | 115680 | W | 146038 | 153839 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SNNC | 18130000 | 49.00 |  | 90650 |  | 2364 | 38046 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  |  |  |  |  | 12702 | 10042 |
|  |  |  |  |  |  | 161104 | 201927 |
|  **[Foreign]** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Roy Hill Holdings Pty Ltd(\*1) | 13117972 | 12.50 |  | 1528672 |  | 1441376 | 1397824 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO-NPS Niobium LLC | 325050000 | 50.00 |  | 364609 |  | 466492 | 477898 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KOBRASCO | 2010719185 | 50.00 |  | 32950 |  | 126943 | 119820 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BX STEEL POSCO Cold Rolled Sheet Co., Ltd. |  | 25.00 |  | 61961 |  | 132616 | 126906 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PT NICOLE METAL INDUSTRY | 152764706 | 49.00 |  | 603178 |  | 649462 | 578604 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; HBIS-POSCO Automotive Steel Co., Ltd |  | 50.00 |  | 235251 |  | 134404 | 179841 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  |  |  |  |  | 23138 | 23587 |
|  |  |  |  |  |  | 2974431 | 2904480 |
|  |  |  |  |  | W | 3135535 | 3106407 |

---

(\*1) As of December 31, 2025 and 2024, the investments in joint ventures are provided as collateral in relation to the joint ventures' borrowings.

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**11. Investments in Associates and Joint ventures (cont'd)** 

(d) Changes in investments in associates and joint ventures for the years ended December 31, 2025 and 2024 are
as follows:

1) For the year ended December 31, 2025

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)*<br> **Company** | **December 31,<br>2024<br>Book value** | **December 31,<br>2024<br>Book value** | **Acquisition** | **Dividends** | **Share of<br>profits (losses)** | **Other increase<br>(decrease)(\*1)** | **December 31,<br>2025<br>Book value** |
|  **[Domestic]** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Samcheok Blue Power Co., Ltd. | W | 392269 | 17509 | (2795) | 7595 | 7121 | 421699 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SNNC |  | 38046 |  |  | (35826) | 144 | 2364 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Chun-cheon Energy Co., Ltd |  | 14054 |  |  | 2016 | 615 | 16685 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pocheon-Hwado Highway Corp. |  | 14834 |  |  | 2360 |  | 17194 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CHUNGJU ENTERPRISE CITY<br> DEVELOPMENT Co., Ltd |  | 12401 |  |  | (306) | 1 | 12096 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PCC Amberstone Private Equity Fund 1 |  | 6181 |  | (227) | (469) | (2694) | 2791 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO MC MATERIALS |  | 153839 |  | (3000) | (5072) | 271 | 146038 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 132730 | 25597 | (2216) | (2445) | (6602) | 147064 |
|  |  | 764354 | 43106 | (8238) | (32147) | (1144) | 765931 |
|  **[Foreign]** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; South-East Asia Gas Pipeline Company Ltd. |  | 279349 |  | (37273) | 57362 | (36063) | 263375 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9404-5515 Quebec Inc. |  | 426276 |  | (21180) | 12359 | (5853) | 411602 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AMCI (WA) PTY LTD |  | 68478 |  |  | 95188 | (1060) | 162606 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KOREA LNG LTD. |  | 25622 |  | (5040) | 5192 | (6250) | 19524 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PT. Wampu Electric Power |  | 17680 |  | (1708) | 739 | (228) | 16483 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POS-SeAH Steel Wire(Nantong) Co., Ltd. |  | 10713 |  |  | 983 | 298 | 11994 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Roy Hill Holdings Pty Ltd |  | 1397824 |  | (213794) | 161274 | 96072 | 1441376 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO-NPS Niobium LLC |  | 477898 |  | (44955) | 43229 | (9680) | 466492 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KOBRASCO |  | 119820 |  | (22955) | 17761 | 12317 | 126943 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BX STEEL POSCO Cold Rolled Sheet Co., Ltd. |  | 126906 |  | (11440) | 15399 | 1751 | 132616 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PT NICOLE METAL INDUSTRY(\*2) |  | 578604 | 62574 |  | 19497 | (11213) | 649462 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; HBIS-POSCO Automotive Steel Co. Ltd |  | 179841 |  |  | (47669) | 2232 | 134404 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; M RES NSW HCC II Pty Ltd |  |  | 104511 |  | (2210) | (417) | 101884 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 265428 | 3088 | (9526) | 2953 | 13518 | 275461 |
|  |  | 3974439 | 170173 | (367871) | 382057 | 55424 | 4214222 |
|  | W | 4738793 | 213279 | (376109) | 349910 | 54280 | 4980153 |

---

(\*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 year ended December 31, 2025.

---

| | |
|:---|:---|
| (\*2) | For the year ended December 31, 2025, the Group acquired an additional investment in a joint venture amounting to W62,574 million by participating in a capital increase of PT NICOLE METAL INDUSTRY for an investment in a nickel pyrometallurgical plant in Indonesia.  |

---

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**11. Investments in Associates and Joint ventures (cont'd)** 

2) For the year ended December 31, 2024

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* | | | | | | | |
| **Company** | **December 31,<br>2024<br>Book value** | **December 31,<br>2024<br>Book value** | **Acquisition** | **Dividends** | **Share of<br>profits (losses)** | **Other increase<br>(decrease)(\*1)** | **December 31,<br>2024<br>Book value** |
|  **[Domestic]** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Samcheok Blue Power Co., Ltd. | W | 323521 | 25680 | (10993) | 54140 | (79) | 392269 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SNNC |  | 100692 |  |  | (61898) | (748) | 38046 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Chun-cheon Energy Co., Ltd |  | 15040 |  |  | 1807 | (2793) | 14054 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pocheon-Hwado Highway Corp. |  | 23998 |  |  | (9164) |  | 14834 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CHUNGJU ENTERPRISE CITY<br> DEVELOPMENT Co., Ltd |  | 13967 |  |  | (384) | (1182) | 12401 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PCC Amberstone Private Equity Fund 1 |  | 8904 | 175 | (490) | (484) | (1924) | 6181 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO MC MATERIALS |  | 155748 |  | (1800) | 403 | (512) | 153839 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 150985 | 12362 | (4999) | (6802) | (18816) | 132730 |
|  |  | 792855 | 38217 | (18282) | (22382) | (26054) | 764354 |
|  **[Foreign]** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; South-East Asia Gas Pipeline Company Ltd. |  | 287282 |  | (64208) | 45923 | 10352 | 279349 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AES Mong Duong Power Company Limited(\*2) |  | 230699 |  | (34821) | (82075) | (113803) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9404-5515 Quebec Inc. |  | 346724 |  | (17764) | 35241 | 62075 | 426276 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AMCI (WA) PTY LTD |  | 60225 |  |  | (5127) | 13380 | 68478 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NCR LLC |  | 253121 | 4275 |  | (266425) | 9029 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KOREA LNG LTD. |  | 58759 |  | (17829) | 17714 | (33022) | 25622 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nickel Mining Company SAS |  | 87967 |  |  | (94353) | 6386 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ZHEJIANG HUAYOU-POSCO ESM CO., LTD |  | 105300 |  |  | (117143) | 11843 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PT. Wampu Electric Power |  | 15632 |  | (1764) | 1238 | 2574 | 17680 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POS-SeAH Steel Wire(Nantong) Co., Ltd. |  | 8642 |  |  | 573 | 1498 | 10713 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Roy Hill Holdings Pty Ltd |  | 1400009 |  | (284541) | 203130 | 79226 | 1397824 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO-NPS Niobium LLC |  | 419192 |  | (29225) | 29336 | 58595 | 477898 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KOBRASCO |  | 99768 |  | (5761) | 37914 | (12101) | 119820 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BX STEEL POSCO Cold Rolled Sheet Co., Ltd. |  | 111001 |  | (10772) | 14207 | 12470 | 126906 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; DMSA/AMSA |  | 16572 |  |  | (17299) | 727 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PT NICOLE METAL INDUSTRY |  | 284351 | 247824 |  | (315) | 46744 | 578604 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; HBIS-POSCO Automotive Steel Co., Ltd |  | 208765 |  |  | (49480) | 20556 | 179841 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 233400 | 7860 | (26222) | 12865 | 37525 | 265428 |
|  |  | 4227409 | 259959 | (492907) | (234076) | 214054 | 3974439 |
|  | W | 5020264 | 298176 | (511189) | (256458) | 188000 | 4738793 |

---

(\*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, 2024.

(\*2) During the year ended December 31, 2024, the Group determined to sell AES Mong Duong Power Company Limited and classified it as assets held for sale.

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**11. Investments in Associates and Joint ventures (cont'd)** 

(e) Summarized financial information of associates and joint ventures as of and for the years ended
December 31, 2025 and 2024 are as follows:

1) As of and for the year December 31, 2025

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* | | | | | | |
| **Company** | **Assets** | **Assets** | **Liabilities** | **Equity**<br>**(deficit)** | **Sales** | **Net income**<br>**(loss)** |
|  **[Domestic]** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Samcheok Blue Power Co., Ltd. | W | 5186881 | 4361206 | 825675 | 638593 | 23070 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SNNC |  | 553862 | 531702 | 22160 | 767857 | (73652) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Chun-cheon Energy Co., Ltd |  | 505987 | 382416 | 123571 | 363995 | 377 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pocheon-Hwado Highway Corp. |  | 683282 | 584471 | 98811 | 24289 | 7364 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CHUNGJU ENTERPRISE CITY<br> DEVELOPMENT Co., Ltd |  | 13340 | 2694 | 10646 | 1050 | (1049) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PCC Amberstone Private Equity Fund 1 |  | 33795 | 2067 | 31728 | 891 | (5329) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO MC MATERIALS |  | 349737 | 104830 | 244907 | 205386 | (8479) |
|  **[Foreign]** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; South-East Asia Gas Pipeline Company Ltd. |  | 1445230 | 393409 | 1051821 | 462017 | 229086 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9404-5515 Quebec Inc. |  | 1631812 | 21 | 1631791 |  | 47813 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; FQM Australia Holdings Pty Ltd |  | 57067 | 1579336 | (1522269) |  | (96001) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KOREA LNG LTD. |  | 97944 | 325 | 97619 | 28117 | 25960 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nickel Mining Company SAS |  | 491050 | 303284 | 187766 | 187021 | (70342) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ZHEJIANG HUAYOU-POSCO ESM CO., LTD |  | 340488 | 71616 | 268872 | 187600 | (21282) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PT. Wampu Electric Power |  | 190896 | 111514 | 79382 | 19108 | 3693 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POS-SeAH Steel Wire(Nantong) Co., Ltd. |  | 99974 | 55384 | 44590 | 151451 | 3814 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Roy Hill Holdings Pty Ltd |  | 11118720 | 2625843 | 8492877 | 7209853 | 1641837 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO-NPS Niobium LLC |  | 932780 |  | 932780 |  | 79937 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KOBRASCO |  | 276085 | 22804 | 253281 | 54101 | 35522 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BX STEEL POSCO Cold Rolled Sheet Co., Ltd. |  | 1272968 | 769371 | 503597 | 1455502 | 61595 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; DMSA/AMSA |  | 875900 | 1692942 | (817042) | 856215 | (684937) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; HBIS-POSCO Automotive Steel Co., Ltd |  | 964614 | 679930 | 284684 | 625983 | (97928) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PT NICOLE METAL INDUSTRY |  | 1073184 | 172335 | 900849 | 701059 | 40197 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; M RES NSW HCC II Pty Ltd |  | 109139 | 3 | 109136 |  | (2761) |

---

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**11. Investments in Associates and Joint ventures (cont'd)** 

2) As of and for the year ended December 31, 2024

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* | | | | | | |
| **Company** | **Assets** | **Assets** | **Liabilities** | **Equity<br>(deficit)** | **Sales** | **Net income<br>(loss)** |
|  **[Domestic]** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Samcheok Blue Power Co., Ltd. | W | 4770385 | 4013505 | 756880 | 596497 | 177922 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SNNC |  | 656049 | 560530 | 95519 | 690103 | (127233) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Chun-cheon Energy Co., Ltd |  | 540333 | 417139 | 123194 | 430679 | 5089 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pocheon-Hwado Highway Corp. |  | 690646 | 599199 | 91447 | 21920 | (29582) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CHUNGJU ENTERPRISE CITY<br> DEVELOPMENT Co., Ltd |  | 14663 | 2968 | 11695 |  | (1302) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PCC Amberstone Private Equity Fund 1 |  | 72722 | 2455 | 70267 | 7 | (5508) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO MC MATERIALS |  | 385270 | 127335 | 257935 | 226376 | 1217 |
|  **[Foreign]** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; South-East Asia Gas Pipeline Company Ltd. |  | 1634345 | 518743 | 1115602 | 409790 | 183392 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AES Mong Duong Power Company Limited |  | 1758256 | 922268 | 835988 | 460672 | 118071 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9404-5515 Quebec Inc. |  | 1704653 |  | 1704653 |  | 136320 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; FQM Australia Holdings Pty Ltd |  | 61735 | 1521991 | (1460256) | 102869 | (396146) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KOREA LNG LTD. |  | 128215 | 102 | 128113 | 90578 | 88572 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nickel Mining Company SAS |  | 519560 | 282321 | 237239 | 237102 | (27170) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ZHEJIANG HUAYOU-POSCO ESM CO., LTD |  | 325284 | 39058 | 286226 | 82254 | (7139) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PT. Wampu Electric Power |  | 209725 | 124359 | 85366 | 19133 | 6191 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POS-SeAH Steel Wire(Nantong) Co., Ltd. |  | 98919 | 58972 | 39947 | 139499 | 2145 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Roy Hill Holdings Pty Ltd |  | 10460434 | 2356265 | 8104169 | 7179077 | 2038555 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO-NPS Niobium LLC |  | 955592 |  | 955592 |  | 57722 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KOBRASCO |  | 282087 | 43052 | 239035 | 118408 | 74690 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BX STEEL POSCO Cold Rolled Sheet Co., Ltd. |  | 1180532 | 699775 | 480757 | 1595656 | 56830 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; DMSA/AMSA |  | 3364786 | 3468220 | (103434) | 694120 | (571215) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; HBIS-POSCO Automotive Steel Co., Ltd |  | 1024831 | 645671 | 379160 | 518808 | (90757) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PT NICOLE METAL INDUSTRY |  | 818168 | 25039 | 793129 |  | (644) |

---

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**11. Investments in Associates and Joint ventures (cont'd)** 

(f) The amounts of equity method losses not recognized due to the suspension of the application of the equity
method associates and joint ventures are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(in millions of Won)* | | | | |
| **Company** | **Beginning<br>balance** | **Beginning<br>balance** | **Increase<br>or decrease** | **Ending<br>balance** |
|  New Songdo International City Development, LLC | W | 112305 | 32087 | 144392 |
|  UITrans LRT Co., Ltd. |  | 48496 | 2196 | 50692 |
|  FQM Australia Holdings Pty Ltd |  | 355197 | 23352 | 378549 |
|  Nickel Mining Company SAS |  |  | 29608 | 29608 |
|  Others |  | 61733 | 69554 | 131287 |
|  | W | 577731 | 156797 | 734528 |

---

**12. Joint Operations** 

Details of significant joint operations that the Group is participating in as a party to a joint arrangement as of December 31, 2025 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 |

---

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**13. Investment Property** 

(a) Investment property as of December 31, 2025 and 2024 are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
|  | **Acquisition cost** | **Acquisition cost** | **Accumulated<br>depreciation and<br>impairment loss** | **Book value** | **Acquisition cost** | **Accumulated<br>depreciation and<br>impairment loss** | **Book value** |
|  Land | W | 804839 | (10099) | 794740 | 876549 | (10099) | 866450 |
|  Buildings |  | 1002446 | (249975) | 752471 | 1173721 | (230870) | 942851 |
|  Structures |  | 2455 | (1245) | 1210 | 3342 | (1587) | 1755 |
|  Right of use assets |  | 191677 | (48473) | 143204 | 188397 | (43557) | 144840 |
|  | W | 2001417 | (309792) | 1691625 | 2242009 | (286113) | 1955896 |

---

The fair value of major investment properties is determined based on the assumptions and data used in the valuation by an independent appraiser with recognized professional qualifications, and the fair value of the investment properties as of December 31, 2025 is W2,605,968 million.

(b) Changes in the carrying amount of investment property for the years ended December 31, 2025 and 2024 are
as follows:

1) For the year ended December 31, 2025

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **Beginning** | **Beginning** | **Acquisitions** | **Disposals** | **Depreciation** | **Impairment<br>loss** | **Others(\*1)** | **Ending** |
|  Land | W | 866450 | 163 | (510) |  |  | (71363) | 794740 |
|  Buildings |  | 942851 | 2727 | (607) | (21147) | (2553) | (168800) | 752471 |
|  Structures |  | 1755 |  |  | (909) |  | 364 | 1210 |
|  Right of use assets |  | 144840 | 1464 | (276) | (5621) |  | 2797 | 143204 |
|  | W | 1955896 | 4354 | (1393) | (27677) | (2553) | (237002) | 1691625 |

---

(\*1) Includes reclassification resulting from changing purpose of use, adjustment of foreign currency translation difference and others.

2) For the year ended December 31, 2024

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **Beginning** | **Beginning** | **Acquisitions** | **Business**<br>**Combination(\*1)** | **Disposals** | **Depreciation** | **Impairment**<br>**loss** | **Others(\*2)** | **Ending** |
|  Land | W | 787304 | 3755 | 59766 | (47137) |  | (215) | 62977 | 866450 |
|  Buildings |  | 655786 | 1782 | 355155 | (34419) | (34179) | (9776) | 8502 | 942851 |
|  Structures |  | 1873 |  |  |  | (911) |  | 793 | 1755 |
|  Right of use assets |  | 171331 |  |  | (107) | (6547) |  | (19837) | 144840 |
|  | W | 1616294 | 5537 | 414921 | (81663) | (41637) | (9991) | 52435 | 1955896 |

---

(\*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, 2024.

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

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**14. Property, Plant and Equipment** 

(a) Property, plant and equipment as of December 31, 2025 and 2024 are as follows:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** | **2024** |
|  | **Acquisition cost** | **Acquisition cost** | **Accumulated<br>depreciation and<br>impairment loss** | **Government**<br>**grants** | **Book value** | **Acquisition**<br>**cost** | **Accumulated<br>depreciation and<br>impairment loss** | **Government**<br>**grants** | **Book value** |
|  Land | W | 3700385 | (8261) | (5738) | 3686386 | 3353019 | (12144) | (5000) | 3335875 |
|  Buildings |  | 12970144 | (7164018) | (12286) | 5793840 | 12097246 | (6808735) | (7543) | 5280968 |
|  Structures |  | 9030274 | (4739870) | (31) | 4290373 | 8292323 | (4431766) | (34) | 3860523 |
|  Machinery and equipment |  | 60640317 | (42410343) | (24647) | 18205327 | 58845673 | (40516816) | (17179) | 18311678 |
|  Vehicles |  | 502658 | (400506) | (1537) | 100615 | 433218 | (340993) | (2250) | 89975 |
|  Tools |  | 623466 | (504974) | (235) | 118257 | 609799 | (474877) | (421) | 134501 |
|  Furniture and fixtures |  | 993990 | (774780) | (42) | 219168 | 911525 | (711472) | (20) | 200033 |
|  Lease assets |  | 2071107 | (696780) |  | 1374327 | 1589388 | (618754) |  | 970634 |
|  Bearer plants |  | 588892 | (226021) |  | 362871 | 203433 | (63982) |  | 139451 |
|  Construction-in-progress |  | 8399751 | (207727) | (50368) | 8141656 | 7744779 | (180824) | (40765) | 7523190 |
|  | W | 99520984 | (57133280) | (94884) | 42292820 | 94080403 | (54160363) | (73212) | 39846828 |

---

(b) Changes in the carrying amount of property, plant and equipment for the years ended December 31, 2025 and
2024 are as follows:

1) For the year ended December 31, 2025

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **Beginning** | **Beginning** | **Acquisitions** | **Business**<br>**Combination(\*1)** | **Disposals** | **Depreciation** | **Impairment**<br>**loss(\*2)** | **Others(\*3)** | **Ending** |
|  Land | W | 3335875 | 33702 | 218786 | (13247) |  | (1364) | 112634 | 3686386 |
|  Buildings |  | 5280968 | 28996 | 62944 | (35868) | (403394) |  | 860194 | 5793840 |
|  Structures |  | 3860523 | 13591 | 10796 | (103544) | (330278) |  | 839285 | 4290373 |
|  Machinery and equipment |  | 18311678 | 107319 | 23146 | (43106) | (2543786) | (88769) | 2438845 | 18205327 |
|  Vehicles |  | 89975 | 9538 | 19921 | (1463) | (40783) | (1344) | 24771 | 100615 |
|  Tools |  | 134501 | 23288 |  | (1850) | (53854) | (1) | 16173 | 118257 |
|  Furniture and fixtures |  | 200033 | 30487 | 4818 | (3466) | (79619) |  | 66915 | 219168 |
|  Lease assets |  | 970634 | 644892 |  | (43705) | (202668) |  | 5174 | 1374327 |
|  Bearer plants |  | 139451 |  | 249352 | (4647) | (11229) |  | (10056) | 362871 |
|  Construction-in-progress |  | 7523190 | 5176786 | 44872 | (8941) |  | (44175) | (4550076) | 8141656 |
|  | W | 39846828 | 6068599 | 634635 | (259837) | (3665611) | (135653) | (196141) | 42292820 |

---

(\*1) For the year ended December 31, 2025, as entities such as PT. Prime Agri Resources were consolidated as subsidiaries, the Group included the resulting increase in property, plant and equipment in business combinations.

---

| | |
|:---|:---|
| (\*2) | For the year ended December 31, 2025, the Group estimated the recoverable amount of individual assets whose operation was suspended, such as Finex Plant no. 3, at their net fair value and recognized an impairment loss of W69,988 million.  |

---

(\*3) Includes assets transferred from construction-in-progress to intangible assets and other property, plant and equipment categories, reclassifications resulting from change in purpose of use, adjustments of foreign currency translation differences and others.

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**14. Property, Plant and Equipment (cont'd)** 

2) For the year ended December 31, 2024

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* | | | | | | | | |
|  | **Beginning** | **Beginning** | **Acquisitions** | **Disposals** | **Depreciation** | **Impairment<br>loss(\*2,3)** | **Others(\*1)** | **Ending** |
|  Land | W | 3290244 | 20523 | (6061) |  | (6620) | 37789 | 3335875 |
|  Buildings |  | 4427632 | 14002 | (11137) | (346334) | (67797) | 1264602 | 5280968 |
|  Structures |  | 3081524 | 11663 | (4497) | (306017) | (15328) | 1093178 | 3860523 |
|  Machinery and equipment |  | 16539192 | 179457 | (47511) | (2484915) | (385367) | 4510822 | 18311678 |
|  Vehicles |  | 79595 | 17353 | (1487) | (39263) | (56) | 33833 | 89975 |
|  Tools |  | 128865 | 28731 | (673) | (54966) | (1573) | 34117 | 134501 |
|  Furniture and fixtures |  | 189887 | 27966 | (2380) | (70561) | (3260) | 58381 | 200033 |
|  Lease assets |  | 998305 | 132219 | (18706) | (177475) | (1994) | 38285 | 970634 |
|  Bearer plants |  | 137331 |  | (27) | (9602) |  | 11749 | 139451 |
|  Construction-in-progress |  | 6333673 | 7634826 | (3482) |  | (128119) | (6313708) | 7523190 |
|  | W | 35206248 | 8066740 | (95961) | (3489133) | (610114) | 769048 | 39846828 |

---

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

---

| | |
|:---|:---|
| (\*2) | The Group calculated the net fair value of individual assets, such as steelmaking plant no. 1 and blast furnace no. 4 in Pohang, whose operation was suspended due to operation plan changes, to estimate recoverable amount and recognized an impairment loss of W227,239 million for property, plant and equipment during the year ended December 31, 2024.  |

---

---

| | |
|:---|:---|
| (\*3) | The Group identified certain portion of the anode/cathode material assets that were in long-term idle status or expected to fall short of the anticipated economic performance during the year ended December 31, 2024. The Group calculated the net fair value of such individual assets to estimate the recoverable amount and recognized an impairment loss of W307,911 million for assets that the recoverable amounts are less than their carrying amounts.  |

---

(c) Borrowing costs capitalized and the capitalized interest rate for the years ended December 31, 2025 and
2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2024** |
|  Weighted average expenditure | W | 3740288 | 4016832 |
|  Borrowing costs capitalized |  | 148383 | 193093 |
|  Capitalization rate (%) |  | 1.11 ~ 8.04 | 0.70 ~ 5.78 |

---

(d) Property, plant and equipment and investment property pledged as collateral as of December 31, 2025 and
2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(in millions of Won)* |  | **Book value** | **Book value** | **Book value** |
|  | **Collateral right holder** | **2025** | **2025** | **2024** |
|  Land | Korean Development Bank and others | W | 765038 | 846211 |
|  Buildings and structures | Korean Development Bank and others |  | 1275029 | 1303216 |
|  Machinery and equipment | Korean Development Bank and others |  | 2319098 | 1828174 |
|  Other property, plant and equipment | Korean Development Bank and others |  | 650904 | 34614 |
|  |  | W | 5010069 | 4012215 |

---

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**14. Property, Plant and Equipment (cont'd)** 

As of December 31, 2025, assets pledged as collateral related to the Group's borrowings and others amounting to W5,320,753 million include investment properties and other assets such as right to use land.

(e) Changes in the carrying amount of right of use assets presented as investment property and property, plant and
equipment for the years ended December 31, 2025 and 2024 are as follows:

1) For the year ended December 31, 2025

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **Beginning** | **Beginning** | **Acquisitions** | **Depreciation** | **Others** | **Ending** |
|  Land | W | 348918 | 15560 | (16154) | (22092) | 326232 |
|  Buildings and structures |  | 154747 | 119586 | (55532) | (25018) | 193783 |
|  Machinery and equipment |  | 346642 | 29687 | (64748) | 20540 | 332121 |
|  Vehicles |  | 45071 | 15832 | (21623) | 1489 | 40769 |
|  Ships |  | 196070 | 264508 | (33792) |  | 426786 |
|  Others |  | 24026 | 201183 | (16440) | (10929) | 197840 |
|  | W | 1115474 | 646356 | (208289) | (36010) | 1517531 |

---

2) For the year ended December 31, 2024

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **Beginning** | **Beginning** | **Acquisitions** | **Depreciation** | **Impairment<br>loss** | **Others** | **Ending** |
|  Land | W | 363789 | 1542 | (17501) | (1994) | 3082 | 348918 |
|  Buildings and structures |  | 151366 | 58116 | (54092) |  | (643) | 154747 |
|  Machinery and equipment |  | 355604 | 37204 | (47797) |  | 1631 | 346642 |
|  Vehicles |  | 48228 | 12501 | (20291) |  | 4633 | 45071 |
|  Ships |  | 220754 |  | (24684) |  |  | 196070 |
|  Others |  | 29895 | 22856 | (19657) |  | (9068) | 24026 |
|  | W | 1169636 | 132219 | (184022) | (1994) | (365) | 1115474 |

---

(f) The amount recognized in profit or loss related to leases for the years ended December 31, 2025 and 2024
are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2024** | **2024** |
|  Interest on lease liabilities | W | 63586 |  | 48887 |
|  Expenses related to short-term leases |  | 38639 |  | 53944 |
|  Expenses related to leases of low-value assets |  | 19346 |  | 25968 |
|  | W | 121571 |  | 128799 |

---

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**15. Goodwill and Other Intangible Assets** 

(a) Goodwill and other intangible assets as of December 31, 2025 and 2024 are as follows:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** | **2024** |
| *(in millions of Won)* | **Acquisition cost** | **Acquisition cost** | **Accumulated**<br>**amortization and<br>impairment loss** | **Government**<br>**grants** | **Book value** | **Acquisition cost** | **Accumulated**<br>**amortization and<br>impairment loss** | **Government**<br>**grants** | **Book value** |
|  Goodwill | W | 2191311 | (1364539) |  | 826772 | 1722390 | (1364539) |  | 357851 |
|  Intellectual property rights |  | 6119689 | (2744031) |  | 3375658 | 5670769 | (2423252) |  | 3247517 |
|  Membership |  | 141506 | (2268) |  | 139238 | 137619 | (1511) |  | 136108 |
|  Development expense |  | 903361 | (702608) |  | 200753 | 742816 | (647701) | (74) | 95041 |
|  Port facilities usage rights |  | 681530 | (528378) |  | 153152 | 681530 | (513534) |  | 167996 |
|  Exploration and evaluation assets |  | 322795 | (175782) |  | 147013 | 276599 | (161290) |  | 115309 |
|  Development assets |  | 83664 | (323) |  | 83341 | 86792 | (81) |  | 86711 |
|  Customer relationships |  | 871650 | (755404) |  | 116246 | 859035 | (713336) |  | 145699 |
|  Other intangible assets |  | 1283895 | (832388) | (151) | 451356 | 1240979 | (818341) | (46) | 422592 |
|  | W | 12599401 | (7105721) | (151) | 5493529 | 11418529 | (6643585) | (120) | 4774824 |

---

(b) The changes in carrying amount of goodwill and other intangible assets for the years ended December 31,
2025 and 2024 are as follows:

1) For the year ended December 31, 2025

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **Beginning** | **Beginning** | **Acquisitions** | **Business**<br>**Combination(\*3)** | **Disposals** | **Amortization** | **Impairment<br>loss** | **Others(\*2)** | **Ending** |
|  Goodwill | W | 357851 |  | 466537 | (461) |  |  | 2845 | 826772 |
|  Intellectual property rights |  | 3247517 | 377414 |  | (4) | (289446) | (30426) | 70603 | 3375658 |
|  Membership(\*1) |  | 136108 | 7243 |  | (4892) | (238) | (519) | 1536 | 139238 |
|  Development expense |  | 95041 | 12089 |  |  | (50481) | (6124) | 150228 | 200753 |
|  Port facilities usage rights |  | 167996 |  |  |  | (14844) |  |  | 153152 |
|  Exploration and evaluation assets |  | 115309 | 44097 |  | (22) |  | (14548) | 2177 | 147013 |
|  Development assets |  | 86711 |  |  |  |  |  | (3370) | 83341 |
|  Customer relationships |  | 145699 |  |  |  | (42068) |  | 12615 | 116246 |
|  Other intangible assets |  | 422592 | 162142 | 88338 | (563) | (68858) | (1) | (152294) | 451356 |
|  | W | 4774824 | 602985 | 554875 | (5942) | (465935) | (51618) | 84340 | 5493529 |

---

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

(\*2) Presenting assets transferred from construction-in-progress to intangible asset and assets transferred from property, plant and equipment, adjustments of foreign currency translation difference and others.

(\*3) During the year ended December 31, 2025, as entities such as PT. Prime Agri Resources were consolidated as subsidiaries, the Group included the resulting increase in goodwill and other intangible assets in business combinations.

2) For the year ended December 31, 2024

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **Beginning** | **Beginning** | **Acquisitions** | **Business<br>Combination** | **Disposals** | **Amortization** | **Impairment**<br>**loss** | **Others(\*2)** | **Ending** |
|  Goodwill | W | 403172 |  | 282 |  |  | (46958) | 1355 | 357851 |
|  Intellectual property rights |  | 3029651 | 353175 |  | (240) | (272730) |  | 137661 | 3247517 |
|  Membership(\*1) |  | 138184 | 1716 |  | (4179) | (180) | 29 | 538 | 136108 |
|  Development expense |  | 126818 | 15913 |  | (22) | (63684) | (692) | 16708 | 95041 |
|  Port facilities usage rights |  | 182411 |  |  |  | (14415) |  |  | 167996 |
|  Exploration and evaluation assets |  | 163446 | 21024 |  |  |  |  | (69161) | 115309 |
|  Development assets |  | 10235 | 543 |  |  | (76) |  | 76009 | 86711 |
|  Customer relationships |  | 196895 |  |  |  | (44478) |  | (6718) | 145699 |
|  Other intangible assets |  | 463972 | 118563 |  | (102012) | (58126) | (252) | 447 | 422592 |
|  | W | 4714784 | 510934 | 282 | (106453) | (453689) | (47873) | 156839 | 4774824 |

---

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

(\*2) Presenting 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.

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**15. Goodwill and Other Intangible Assets (cont'd)** 

(c) The Group's cash generating units (CGUs) and carrying amounts of goodwill allocated to CGUs as of
December 31, 2025 and 2024 are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* | *(in millions of Won)* | *(in millions of Won)* | *(in millions of Won)* |  | | | |
|  |  | **Total number of CGUs** | **Total number of CGUs** |  |  |  |  |
| **Reporting**<br> **segments** |  | **2025** | **2024** | **CGUs** | **2025** | **2025** | **2024** |
|  Steel |  | 9 | 9 | CHEMGAS KOREA CO., LTD | W | 39378 |  |
|  |  |  |  | POSCO Center Beijing |  | 195 | 192 |
|  |  |  |  | Others |  | 12865 | 13748 |
|  Infrastructure | Trading | 6 | 5 | POSCO INTERNATIONAL Corporation - Global Business Division(\*1) |  | 240092 | 240092 |
|  |  |  |  | POSCO INTERNATIONAL Corporation - Energy Division |  | 26471 | 26471 |
|  |  |  |  | PT. Prime Agri Resources |  | 425529 |  |
|  |  |  |  | Others |  | 9374 | 8205 |
|  | E&C | 1 | 1 | POSCO WIDE Co., Ltd |  | 32585 | 32585 |
|  | Logistics,<br>etc | 2 | 2 | Shinan Green Energy Co., LTD. and others |  | 108 | 108 |
|  Materials of Secondary Battery |  | 3 | 3 | POSCO FUTURE M CO., LTD |  | 8800 | 8800 |
|  |  |  |  | POSCO Silicon Solution Co., Ltd |  | 31155 | 27542 |
|  |  |  |  | Zhangjiagang Pohang Refractories Co., Ltd. and others |  | 108 | 108 |
|  Others |  | 1 |  | Others |  | 112 |  |
|  |  | 22 | 20 |  | W | 826772 | 357851 |

---

---

| | |
|:---|:---|
| (\*1) | The recoverable amount of POSCO INTERNATIONAL Corporation – Global Business Division, a subsidiary in trading segment of the infrastructure business, is determined based on its value in use by an independent external valuer. As of December 31, 2025, the value in use is estimated by applying a 5.51% (2024: 7.73%) post-tax discount rate to the future cash flows estimated based on management's 5-year business plan and terminal growth rate of 1.0% (2024: 1.0%) thereafter. The terminal growth rate does not exceed long-term growth rate of its industry. No impairment loss on goodwill was recognized for the year ended December 31, 2025 as the recoverable amount exceeded the carrying amount of the CGU.  |

---

The value in use of the CGU is sensitive to key assumptions such as discount rate, terminal growth and estimated revenue used in discount cash flow model. If the discount rate increases by 1%, the value in use would have decreased by W1,710,249 million or 16.93%. If the terminal growth rate decreases by 1%, the value in use would have decreased by W472,760 million or 4.68%.

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**16. Other Assets** 

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

---

| | | | |
|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2024** |
|  **Current** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Advance payments | W | 582909 | 509922 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses |  | 186066 | 259145 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Firm commitment asset |  | 9221 | 2489 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other current assets |  | 35326 | 15387 |
|  | W | 813522 | 786943 |
|  **Non-current** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term advance payments | W | 54896 | 33308 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term prepaid expenses |  | 18156 | 20689 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 62631 | 79688 |
|  | W | 135683 | 133685 |

---

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**17. Borrowings** 

(a) Short-term borrowings and current portion of long-term borrowings as of December 31, 2025 and 2024 are as
follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* |  | | | | | | |
|  | **Lenders** | **Issuance date** | **Maturity date** | **Interest rate (%)** | **2025** | **2025** | **2024** |
|  **Short-term borrowings** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bank overdrafts | JP Morgan and others | January, 2025~<br>December, 2025 | January, 2026~<br>December, 2026 | 3.40~6.20 | W | 137852 | 85892 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term borrowings | HSBC and others | January, 2025~<br>December, 2025 | January, 2026~<br>December, 2026 | 0.75~7.95 |  | 7294105 | 5647199 |
|  |  |  |  |  |  | 7431957 | 5733091 |
|  **Current portion of long-term liabilities** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current portion of long-term borrowings | Export-Import Bank of Korea and others | December, 2006~<br>December, 2025 | January, 2026~<br>December, 2026 | 1.00~8.50 |  | 1302568 | 1323002 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current portion of debentures | KB Securities co., Ltd. and others | July, 2019~<br>September, 2024 | January, 2026~<br>September, 2026 | 1.77~5.63 |  | 3340036 | 4024084 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Current portion of<br> discount on debentures issued |  |  |  |  |  | (1648) | (3483) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current portion of exchangable bonds | Foreign currency exchangable bonds | September, 2021 | September, 2026 |  |  | 44509 | 39053 |
|  |  |  |  |  |  | 4685465 | 5382656 |
|  |  |  |  |  | W | 12117422 | 11115747 |

---

(\*1) The issuance conditions of the exchangeable bonds issued by the Group are as follows. As of December 31, 2025, 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(\*2) (Won/share) | 422126 |
| 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 | -In the event of a change of control of the Company <br> - Where the shares issued by the Company are delisted (or suspended for more than 30 consecutive trading days) |
| Call option by the issuer | -Share price(based on closing price) is higher than 130% of exchange price for more than 20 trading days during 30 consecutive trading 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 was redeemed out of the total face value of convertible bonds of EUR 1,065,900,000 during the year ended December 31, 2024.  |

---

(\*2) The exchange price has changed due to cash dividends during the year ended December 31, 2025.

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**17. Borrowings (cont'd)** 

The Group has designated its 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 the current portion as of December 31, 2025 and 2024 are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* |  |  |  | | | | |
|  | **Lenders** | **Issuance date** | **Maturity date** | **Interest rate (%)** | **2025** | **2025** | **2024** |
|  Long-term borrowings | Export-Import Bank of Korea and others | September, 2001~ December, 2025 | January, 2027~ December, 2040 | 1.05~8.25 | W | 6605336 | 4868703 |
|  Less: Present value discount |  |  |  |  |  | (49101) | (51173) |
|  Bonds | KB Securities co.,Ltd. and others | July, 2019~<br>October, 2025 | January, 2027~<br>May, 2035 | 1.77~8.40 |  | 9859696 | 10108600 |
|  Less: Discount on debentures issued |  |  |  |  |  | (41353) | (44510) |
|  |  |  |  |  | W | 16374578 | 14881620 |

---

(c) Assets pledged as collateral for the Group's borrowings and other liabilities include investment property
and right-of-use assets (land use rights). The details of assets pledged as collateral as of December 31, 2025 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **Lenders** | **Book value** | **Book value** | **Pledged amount** |
|  Property, plant and equipment and Investment property | Korea Development Bank and others | W | 5005832 | 5318147 |
|  Trade accounts and notes receivable | Korea Development Bank and others |  | 136758 | 136758 |
|  Financial instruments | Korea Development Bank and others |  | 27314 | 27314 |
|  Cash equivalents | Shinhan Bank |  | 272631 | 272631 |
|  |  | W | 5442535 | 5754850 |

---

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**18. Other Payables** 

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

---

| | | | |
|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2024** |
|  **Current** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | W | 1646460 | 1652957 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses |  | 1242403 | 1275068 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividend payable |  | 4598 | 4182 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease liabilities |  | 180424 | 161601 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Withholdings |  | 332620 | 370063 |
|  | W | 3406505 | 3463871 |
|  **Non-current** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | W | 4072 | 6096 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses |  | 18459 | 11979 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease liabilities |  | 1160230 | 744500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term withholdings |  | 54597 | 46437 |
|  | W | 1237358 | 809012 |

---

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**19. Other Financial Liabilities** 

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

---

| | | | |
|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2024** |
|  **Current** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative liabilities | W | 49947 | 108786 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial guarantee liabilities |  | 8194 | 4972 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 8482 | 7117 |
|  | W | 66623 | 120875 |
|  **Non-current** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative liabilities | W | 7627 | 2236 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial guarantee liabilities |  | 9941 | 8944 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 73500 | 61740 |
|  | W | 91068 | 72920 |

---

**20. Provisions** 

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2025** | **2024** | **2024** |
|  | **Current** | **Current** | **Non-current** | **Current** | **Non-current** |
|  Provision for bonus payments | W | 119010 | 101039 | 121757 | 70104 |
|  Provision for construction warranties |  | 39393 | 148673 | 49659 | 137201 |
|  Provision for legal contingencies and claims(\*1) |  | 5685 | 45363 | 17960 | 78486 |
|  Provision for the restoration |  | 2979 | 196651 | 10041 | 197810 |
|  Others(\*2) |  | 465577 | 158603 | 196613 | 96958 |
|  | W | 632644 | 650329 | 396030 | 580559 |

---

---

| | |
|:---|:---|
| (\*1) | The Group recognized probable outflow of resources amounting to W35,061 million and W80,220 million as provisions for legal contingencies and asserted claim in relation to lawsuits against the Group as of December 31, 2025 and 2024, 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 December 31, 2025 and 2024, the Group recognized W45,150 million and W64,249 million respectively, as provision.  |

---

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**20. Provisions (cont'd)** 

(b) The following are the key assumptions concerning the future and other key sources of estimation uncertainties
at the end of the reporting period.

---

| | |
|:---|:---|
|  | **Key assumptions for the estimation** |
| Provision for bonus payments | Estimations based on financial performance and service provided |
| Provision for construction warranties | Estimations based on historical warranty data |
| Provision for legal contingencies and claims | Estimations based on the degree of probability of an unfavorable outcome and the ability to make a sufficient reliable estimate of the amount of loss |

---

(c) Changes in provisions for the years ended December 31, 2025 and 2024 are as follows:

1) For the year ended December 31, 2025

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **Beginning** | **Beginning** | **Increase** | **Business**<br>**Combination(\*1)** | **Utilization** | **Reversal** | **Others(\*2)** | **Ending** |
|  Provision for bonus payments | W | 191861 | 159990 |  | (133528) | (2634) | 4360 | 220049 |
|  Provision for construction warranties |  | 186860 | 43891 |  | (35139) | (6005) | (1541) | 188066 |
|  Provision for legal contingencies and claims |  | 96446 | 10856 |  | (23507) | (15782) | (16965) | 51048 |
|  Provision for the restoration |  | 207851 | 26853 |  | (4953) | (4843) | (25278) | 199630 |
|  Others |  | 293571 | 484936 | 138212 | (29447) | (68387) | (194705) | 624180 |
|  | W | 976589 | 726526 | 138212 | (226574) | (97651) | (234129) | 1282973 |

---

(\*1) During the current year, PT. Prime Agri Resources was newly consolidated as a subsidiary, and the Group included the resulting increase in provisions as part of the business combination.

(\*2) Includes adjusted foreign currency translation differences and others.

2) For the year ended December 31, 2024

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **Beginning** | **Beginning** | **Increase** | **Utilization** | **Reversal** | **Others(\*1)** | **Ending** |
|  Provision for bonus payments | W | 184391 | 224339 | (187004) | (29461) | (404) | 191861 |
|  Provision for construction warranties |  | 196758 | 53244 | (48471) | (8274) | (6397) | 186860 |
|  Provision for legal contingencies and claims |  | 73062 | 54929 | (12964) | (19743) | 1162 | 96446 |
|  Provision for the restoration |  | 175820 | 28917 | (8311) | (6485) | 17910 | 207851 |
|  Others |  | 257722 | 255624 | (151362) | (76790) | 8377 | 293571 |
|  | W | 887753 | 617053 | (408112) | (140753) | 20648 | 976589 |

---

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

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**21. Employee Benefits** 

(a) Defined contribution plans

The expenses related to post-employment benefit plans under defined contribution plans for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2024** | **2024** |
|  Expense related to post-employment benefit plans under defined contribution plans | W | 79817 |  | 81811 |

---

(b) Defined benefit plans

1) The amounts recognized in relation to net defined benefit assets in the consolidated statements of financial position as of December 31, 2025 and 2024 are as follows: 

---

| | | | |
|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2024** |
|  Present value of funded obligations | W | 2631811 | 2589246 |
|  Fair value of plan assets(\*1) |  | (2923780) | (2962342) |
|  Present value of non-funded obligations |  | (4955) | 7092 |
|  Net defined benefit liabilities | W | (296924) | (366004) |

---

---

| | |
|:---|:---|
| (\*1) | As of December 31, 2025 and 2024, the Group recognized net defined benefit assets amounting to W360,112 million and W409,147million, respectively, which represent the excess of each consolidated entity's plan asset over the present value of defined benefit obligations.  |

---

2) Changes in present value of defined benefit obligations for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2024** |
|  Defined benefit obligations at the beginning of period | W | 2596338 | 2476709 |
|  Current service costs |  | 279517 | 266460 |
|  Interest costs |  | 87759 | 93131 |
|  Remeasurements : |  | 30591 | 147838 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Loss (gain) from change in financial assumptions |  | (8892) | 92706 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Loss (gain) from change in demographic assumptions |  | (172) | 2700 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Loss (gain) from change in others |  | 39655 | 52432 |
|  Benefits paid |  | (382620) | (336899) |
|  Others |  | 15271 | (50901) |
|  Defined benefit obligations at the end of period | W | 2626856 | 2596338 |

---

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**21. Employee Benefits (cont'd)** 

3) Changes in fair value of plan assets for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2024** |
|  Fair value of plan assets at the beginning of period | W | 2962342 | 2902714 |
|  Interest on plan assets |  | 103044 | 112768 |
|  Remeasurement of plan assets |  | 3967 | 20345 |
|  Contributions to plan assets |  | 225385 | 251891 |
|  Benefits paid |  | (368537) | (279304) |
|  Others |  | (2421) | (46072) |
|  Fair value of plan assets at the end of period | W | 2923780 | 2962342 |

---

The Group expects to make an estimated contribution of W130,667 million to the defined benefit plan assets in 2025.

4) The fair value of plan assets as of December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2024** | **2024** |
|  Equity instruments | W | 148379 |  | 14507 |
|  Debt instruments |  | 471059 |  | 404311 |
|  Deposits |  | 1868077 |  | 2268197 |
|  Others |  | 436265 |  | 275327 |
|  | W | 2923780 |  | 2962342 |

---

5) The amounts recognized in consolidated statements of comprehensive income for the years ended December 31, 2025 and 2024 are as follows: 

---

| | | | |
|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2024** |
|  Current service costs | W | 279517 | 266460 |
|  Net interest costs(\*1) |  | (15286) | (19637) |
|  | W | 264231 | 246823 |

---

---

| | |
|:---|:---|
| (\*1) | The actual return on plan assets amounted to W107,011 million and W133,113 million for the years ended December 31, 2025 and 2024, respectively.  |

---

The above expenses by function are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2024** | **2024** |
|  Cost of sales | W | 184139 |  | 155146 |
|  Selling, administrative expenses and others |  | 80092 |  | 91677 |
|  | W | 264231 |  | 246823 |

---

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**21. Employee Benefits (cont'd)** 

6) Accumulated actuarial gains (losses), net of tax recognized in other comprehensive income for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2024** |
|  Beginning | W | (610189) | (514844) |
|  Remeasurements of defined benefit plans |  | (13163) | (95345) |
|  Ending | W | (623352) | (610189) |

---

7) The principal actuarial assumptions as of December 31, 2025 and 2024 are as follows:

---

| | | |
|:---|:---|:---|
| *(%)* | **2025** | **2024** |
|  Discount rate | 0.92 ~ 7.30 | 2.50 ~ 21.55 |
|  Expected future increase in salaries(\*1) | 1.50 ~ 29.32 | 1.50 ~ 29.32 |

---

(\*1) The expected future increases in salaries are based on the average salary increase rate over the past five years.

All assumptions are reviewed at the end of the reporting period. Additionally, the total estimated defined benefit obligation includes actuarial assumptions associated with the long-term characteristics of the defined benefit plan

8) Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding the other assumptions constant, would have affected the defined benefit obligation by the amounts shown below: 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **1% Increase** | **1% Increase** | **1% Increase** | **1% Decrease** | **1% Decrease** |
|  | **Amount** | **Amount** | **Percentage (%)** | **Amount** | **Percentage (%)** |
|  Discount rate | W | (164782) | (6.3) | 190289 | 7.2 |
|  Expected future increase in salaries |  | 186448 | 7.1 | (165385) | (6.3) |

---

9) As of December 31, 2025, the maturity of the expected benefit payments are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **Within**<br>**1 year** | **Within**<br>**1 year** | **1 year**<br>**~5 years** | **5 years**<br>**~10 years** | **10 years**<br>**~20 years** | **After**<br>**20 years** | **Total** |
|  Benefits to be paid | W | 282046 | 933451 | 795447 | 1389605 | 672620 | 4073169 |

---

The maturity analysis of the defined benefit obligation was nominal amounts of defined benefit obligations using expected remaining period of service of employees.

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**22. Other Liabilities** 

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

---

| | | | |
|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2024** |
|  **Current** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due to customers for contract work | W | 727902 | 491495 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Advances received |  | 500831 | 253171 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unearned revenue |  | 102275 | 87969 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Withholdings |  | 209450 | 307753 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Firm commitment liability |  | 2910 | 10384 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others(\*1) |  | 30827 | 22726 |
|  | W | 1574195 | 1173498 |
|  **Non-current** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unearned revenue | W | 3704 | 4317 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others(\*1) |  | 102894 | 94942 |
|  | W | 106598 | 99259 |

---

---

| | |
|:---|:---|
| (\*1) | As of December 31, 2025 and 2024, the Group recognized the assumed liability amounting to W43,850 million and W41,770 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.  |

---

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**23. Financial Instruments** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Classification and fair value of financial instruments

1) The carrying amount and the fair values of financial assets and financial liabilities by fair value hierarchy as of December 31, 2025 and 2024 are as follows: 

① December 31, 2025

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* | | | **Fair value** | **Fair value** | **Fair value** | **Fair value** |
|  | **Book value** | **Book value** | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  **Financial assets** |  |  |  |  |  |  |
|  Fair value through profit or loss |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative assets | W | 656181 |  | 656181 |  | 656181 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term financial instruments |  | 491841 |  | 491841 |  | 491841 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities |  | 95230 | 16695 |  | 78535 | 95230 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities |  | 137647 |  | 91699 | 45948 | 137647 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other securities |  | 696148 |  |  | 696148 | 696148 |
|  Derivative hedging instruments(\*2) |  | 6392 |  | 6392 |  | 6392 |
|  Fair value through other comprehensive income |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities |  | 1626209 | 1158867 | 28682 | 438660 | 1626209 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Assets held for sale |  | 7276 |  | 7276 |  | 7276 |
|  Financial assets measured at amortized cost(\*1) |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents |  | 7049800 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trade accounts and notes receivable |  | 9633385 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other receivables |  | 3335169 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities |  | 962120 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposit instruments |  | 7167658 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Assets held for sale |  | 2238 |  |  |  |  |
|  | W | 31867294 | 1175562 | 1282071 | 1259291 | 3716924 |
|  **Financial liabilities** |  |  |  |  |  |  |
|  Fair value through profit or loss |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative liabilities | W | 41131 |  | 41129 |  | 41129 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings |  | 44509 | 44509 |  |  | 44509 |
|  Derivative hedging instruments(\*2) |  | 16443 |  | 16443 |  | 16443 |
|  Financial liabilities measured at amortized cost(\*1) |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trade accounts and notes payable |  | 5106921 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings |  | 28447491 |  | 28645932 |  | 28645932 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial guarantee liabilities |  | 18135 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 4075379 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial Liabilities |  | 81982 |  |  |  |  |
|  | W | 37831991 | 44509 | 28703504 |  | 28748013 |

---

---

| | |
|:---|:---|
| (\*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.  |

---

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**23. Financial Instruments (cont'd)** 

② December 31, 2024

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* | | | **Fair value** | **Fair value** | **Fair value** | **Fair value** |
|  | **Book value** | **Book value** | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  **Financial assets** |  |  |  |  |  |  |
|  Fair value through profit or loss |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative assets | W | 946393 |  | 946393 |  | 946393 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term financial instruments |  | 1212643 |  | 1212643 |  | 1212643 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities |  | 52222 | 26792 |  | 25430 | 52222 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities |  | 113728 |  | 82699 | 31029 | 113728 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other securities |  | 762177 |  |  | 762177 | 762177 |
|  Derivative hedging instruments(\*2) |  | 16483 |  | 16483 |  | 16483 |
|  Fair value through other comprehensive income |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity securities |  | 1119322 | 703181 |  | 416141 | 1119322 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Assets held for sale |  | 604439 | 604439 |  |  | 604439 |
|  Financial assets measured at amortized cost(\*1) |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents |  | 6767898 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trade accounts and notes receivable |  | 9374217 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other receivables |  | 2739523 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities |  | 402644 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposit instruments |  | 6445428 |  |  |  |  |
|  | W | 30557117 | 1334412 | 2258218 | 1234777 | 4827407 |
|  **Financial liabilities** |  |  |  |  |  |  |
|  Fair value through profit or loss |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative liabilities | W | 105187 |  | 105187 |  | 105187 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings |  | 39053 | 39053 |  |  | 39053 |
|  Derivative hedging instruments(\*2) |  | 5835 |  | 5835 |  | 5835 |
|  Financial liabilities measured at amortized cost(\*1) |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trade accounts and notes payable |  | 6161177 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings |  | 25958314 |  | 26166994 |  | 26166994 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial guarantee liabilities |  | 13916 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 3757314 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other financial Liabilities |  | 68857 |  |  |  |  |
|  | W | 36109653 | 39053 | 26278016 |  | 26317069 |

---

---

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

---

---

| | |
|:---|:---|
| (\*2) | The Group applies hedge accounting which uses forward contracts as hedging instrument in order to hedge the risk of changes in fair value of product prices regarding firm commitments or purchase commitments. Also, the Group applies cash flow hedge accounting which uses currency swap as hedging instrument in order to hedge the risk of interest rate and foreign exchange rate changes in foreign currency which influences cash flow from borrowings.  |

---

2) Financial assets and financial liabilities classified as fair value hierarchy Level 2

Fair values of derivatives are measured using the derivatives instrument valuation models such as discounted cash flow method. Inputs of the financial instrument valuation model include forward rate, interest rate and others. The fair value of derivatives may change depending on the type of derivatives and the nature of the underlying assets.

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**23. Financial Instruments (cont'd)** 

3) Financial assets classified as fair value hierarchy Level 3

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;① Valuation technique and significant but not observable inputs for the financial assets classified as fair value
hierarchy Level 3 as of December 31, 2025 are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **Fair value** | **Fair value** | **Valuation technique** | **Inputs** | **Range of inputs** | **Effect on fair value assessment<br>with unobservable input** |
|  Financial assets at fair value | W | 524552 | Discounted cash flows | Growth rate | 0%~1.00% | As growth rate increases, fair value increases |
|  |  |  | Method | Discount rate | 6.00%~13.00% | As discount rate increases, fair value decreases |
|  |  | 51734 | Proxy firm valuation method | Price multiples | 0.00~37.765 | As price multiples increases, fair value increases |
|  |  | 93831 | Binomial Option | Value of | USD 1,827,288 | Fair value increases when |
|  |  |  | Pricing Model | underlying asset | thousands | value of underlying asset increases |
|  |  |  |  | Volatility | 45% | Fair value increases when volatility increases |
|  |  | 589174 | Asset value approach |  |  |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;② Sensitivity analysis of financial assets classified as Level 3 of fair value hierarchy

If other inputs remain constant as of December 31, 2025 and one of the significant but not observable input is changed, the effect on fair value measurement is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **Input variable** | **Favorable changes** | **Favorable changes** | **Unfavorable**<br>**changes** |
|  Financial assets at fair value | Fluctuation 0.5% of growth rate | W | 336 | (302) |
|  | Fluctuation 0.5% of discount rate |  | 3474 | (3682) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;③ Changes in fair value of financial assets classified as Level 3 for the years ended December 31, 2025
and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2024** |
|  Beginning | W | 1234777 | 875091 |
|  Acquisition |  | 122766 | 398296 |
|  Gain (loss) on valuations of financial assets |  | 6426 | 48336 |
|  Other comprehensive income (loss) |  | 1941 | (13066) |
|  Disposal and others |  | (106619) | (73880) |
|  Ending | W | 1259291 | 1234777 |

---

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**23. Financial Instruments (cont'd)** 

4) Finance income and costs by category of financial instrument for the years ended December 31, 2025 and 2024 are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;① For the year ended December 31, 2025

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **Finance income and costs** | **Finance income and costs** | **Finance income and costs** | **Finance income and costs** | **Finance income and costs** | **Finance income and costs** | **Finance income and costs** | |
|  | **Interest income<br>(expense)** | **Interest income<br>(expense)** | **Gain and loss**<br>**on valuation** | **Gain and loss<br>on foreign<br>currency** | **Gain and loss**<br>**on disposal** | **Others** | **Total** | **Other**<br>**comprehensive<br>income (loss)** |
|  Financial assets at fair value through profit or loss | W |  | (57207) |  | 51353 | 9267 | 3413 |  |
|  Derivative assets |  |  | 67796 |  | 221995 |  | 289791 |  |
|  Financial assets at fair value through other comprehensive income |  |  |  |  |  | 28789 | 28789 | 319618 |
|  Financial assets measured at amortized cost |  | 533307 |  | (33989) | (73431) | 3107 | 428994 |  |
|  Financial liabilities at fair value through profit or loss |  |  | (1310) | (4145) |  |  | (5455) |  |
|  Derivative liabilities |  |  | 12049 |  | (358953) |  | (346904) | 8 |
|  Financial liabilities measured at amortized cost |  | (1091462) |  | 38876 |  | (34187) | (1086773) |  |
|  | W | (558155) | 21328 | 742 | (159036) | 6976 | (688145) | 319626 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;② For the year ended December 31, 2024

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **Finance income and costs** | **Finance income and costs** | **Finance income and costs** | **Finance income and costs** | **Finance income and costs** | **Finance income and costs** | **Finance income and costs** | |
|  | **Interest income<br>(expense)** | **Interest income<br>(expense)** | **Gain and loss**<br>**on valuation** | **Gain and loss<br>on foreign<br>currency** | **Gain and loss**<br>**on disposal** | **Others** | **Total** | **Other**<br>**comprehensive<br>income (loss)** |
|  Financial assets at fair value through profit or loss | W |  | 120544 |  | 136699 | 887 | 258130 |  |
|  Derivative assets |  |  | 820979 |  | 399680 |  | 1220659 |  |
|  Financial assets at fair value through other comprehensive income |  |  |  |  |  | 76060 | 76060 | (150443) |
|  Financial assets measured at amortized cost |  | 576782 |  | 1098245 | (82615) | (10613) | 1581799 |  |
|  Financial liabilities at fair value through profit or loss |  |  | 239120 | (57625) | (6257) |  | 175238 |  |
|  Derivative liabilities |  |  | (31018) |  | (279594) |  | (310612) | (110) |
|  Financial liabilities measured at amortized cost |  | (1051511) |  | (1781845) | (806) | (36252) | (2870414) |  |
|  | W | (474729) | 1149625 | (741225) | 167107 | 30082 | 130860 | (150553) |

---

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##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**23. Financial Instruments (cont'd)** 

(b) Credit risk

1) Credit risk exposure

The carrying amount of financial assets represents the Group's maximum exposure to credit risk. The maximum exposure to credit risk as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2024** |
|  Cash and cash equivalents | W | 7049800 | 6767898 |
|  Derivative assets |  | 662573 | 962876 |
|  Short-term financial instrument |  | 491841 | 1212643 |
|  Debt securities |  | 1099767 | 516372 |
|  Other securities |  | 696148 | 762177 |
|  Other receivables |  | 3335169 | 2739523 |
|  Trade accounts and notes receivable |  | 11217682 | 10849398 |
|  Deposit instruments |  | 7167658 | 6445428 |
|  Assets held for sale |  | 2238 |  |
|  | W | 31722876 | 30256315 |

---

The Group provided financial guarantee for the repayment of loans of associates, joint ventures and third parties. As of December 31, 2025 and 2024, the maximum exposure to credit risk related to the financial guarantee amounted to W3,613,477 million and W3,832,003 million, respectively.

2) Impairment losses on financial assets and contract assets

The Group assesses expected credit losses by estimating the default rate based on the credit loss experience of prior periods and overdue conditions and considers the credit default swap (CDS) premium to reflect changes in credit risk by sector. For credit-impaired assets and significant receivables where the credit risk is significantly increased, credit losses are individually assessed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;① Allowance for doubtful accounts as of December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2024** | **2024** |
|  Trade accounts and notes receivable | W | 574918 |  | 366109 |
|  Other accounts receivable |  | 209126 |  | 219811 |
|  Loans |  | 571650 |  | 510036 |
|  Others |  | 9410 |  | 18414 |
|  | W | 1365104 |  | 1114370 |

---

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**23. Financial Instruments (cont'd)** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;② Impairment losses on financial assets for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2024** |
|  Beginning | W | 1114370 | 952719 |
|  Bad debt expenses |  | 168960 | 134230 |
|  Other bad debt expenses(\*1) |  | 53355 | 68979 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Recovery of allowance for other bad debt accounts |  | (18513) | (18080) |
|  Others(\*2) |  | 46932 | (23478) |
|  Ending | W | 1365104 | 1114370 |

---

(\*1) Other bad debt expenses are mainly related to loans and other accounts receivable.

---

| | |
|:---|:---|
| (\*2) | Others for the years ended December 31, 2025 and 2024, decreased mainly due to write-off amounting to W33,648 million and W75,349 million, respectively.  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;③ The aging and allowance for doubtful accounts of trade accounts and notes receivable as of December 31,
2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2025** | **2024** | **2024** |
|  | **Trade accounts<br>and notes<br>receivable** | **Trade accounts<br>and notes<br>receivable** | **Allowance for<br>doubtful<br>accounts** | **Trade accounts<br>and notes<br>receivable** | **Allowance for<br>doubtful<br>accounts** |
|  Not due | W | 9381077 | 11690 | 9438292 | 8774 |
|  Over due less than 1 month |  | 373156 | 2347 | 496419 | 4555 |
|  1 month ~ 3 months |  | 242259 | 932 | 272977 | 3087 |
|  3 months ~ 12 months |  | 834972 | 102807 | 187461 | 22340 |
|  Over 12 months |  | 961136 | 457142 | 820358 | 327353 |
|  | W | 11792600 | 574918 | 11215507 | 366109 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;④ The aging and allowance for doubtful accounts of other receivables as of December 31, 2025 and 2024 are as
follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2025** | **2024** | **2024** |
|  | **Loans and<br>other account<br>receivable** | **Loans and<br>other account<br>receivable** | **Allowance for<br>doubtful<br>accounts** | **Loans and other<br>account<br>receivable** | **Allowance for<br>doubtful<br>accounts** |
|  Not due | W | 3476605 | 459628 | 2870906 | 442293 |
|  Over due less than 1 month |  | 81948 | 25 | 68592 | 216 |
|  1 month ~ 3 months |  | 113474 | 36268 | 146091 | 19349 |
|  3 months ~ 12 months |  | 139074 | 26423 | 60825 | 6702 |
|  Over 12 months |  | 314254 | 267842 | 341370 | 279701 |
|  | W | 4125355 | 790186 | 3487784 | 748261 |

---

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**23. Financial Instruments (cont'd)** 

(c) Liquidity risk

1) Contractual maturities for non-derivative financial liabilities are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **Book value** | **Book value** | **Contractual**<br>**cash flow** | **Within**<br>**1 year** | **1 year**<br>**~ 5 years** | **After**<br>**5 years** |
|  Trade accounts and notes payable | W | 5106921 | 5106921 | 5106921 |  |  |
|  Borrowings |  | 28492000 | 33051735 | 12722356 | 17945996 | 2383383 |
|  Financial guarantee liabilities(\*1) |  | 18135 | 3613477 | 3613477 |  |  |
|  Lease liabilities |  | 1340654 | 1719521 | 207565 | 649154 | 862802 |
|  Other financial liabilities |  | 2734724 | 2734965 | 2657699 | 77266 |  |
|  | W | 37692434 | 46226619 | 24308018 | 18672416 | 3246185 |

---

---

| | |
|:---|:---|
| (\*1) | For issued financial guarantee contracts, the maximum amount of the guarantee is allocated to the earliest period in which the guarantee could be called.  |

---

2) Contractual maturities for derivative financial liabilities are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **Within<br>1 year** | **Within<br>1 year** | **1 year<br>~ 5 years** | **Total** |
|  Currency forward | W | 20857 | 1958 | 22815 |
|  Currency swap |  | 12629 | 5669 | 18298 |
|  Others |  | 16461 |  | 16461 |
|  | W | 49947 | 7627 | 57574 |

---

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**23. Financial Instruments (cont'd)** 

(d) Currency risk

1) The Group is exposed to the risk that the fair value or future cash flows of a financial instrument will fluctuate because of the changes in foreign exchange rates. The exposure to currency risk as of December 31, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2025** | **2024** | **2024** |
|  | **Assets** | **Assets** | **Liabilities** | **Assets** | **Liabilities** |
|  USD | W | 5285433 | 11385039 | 5441771 | 10927022 |
|  EUR |  | 859737 | 691208 | 670436 | 530728 |
|  JPY |  | 183579 | 50754 | 303556 | 213071 |
|  Others |  | 1388889 | 296563 | 2280424 | 367264 |

---

2) As of December 31, 2025 and 2024, provided that functional currency against foreign currencies other than functional currency hypothetically strengthens or weakens by 10%, the changes in gain or loss for the years ended December 31, 2025 and 2024 are as follows: 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2025** | **2024** | **2024** |
|  | **10% increase** | **10% increase** | **10% decrease** | **10% increase** | **10% decrease** |
|  USD | W | (609961) | 609961 | (548525) | 548525 |
|  EUR |  | 16853 | (16853) | 13971 | (13971) |
|  JPY |  | 13283 | (13283) | 9049 | (9049) |

---

(e) Interest rate risk

1) The carrying amount of interest-bearing financial instruments as of December 31, 2025 and 2024 are as follows: 

---

| | | | |
|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2024** |
|  **Fixed rate** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial assets | W | 16949804 | 16067746 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities |  | (23619701) | (22213449) |
|  |  | (6669897) | (6145703) |
|  **Variable rate** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial liabilities | W | (6212953) | (4690019) |

---

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**23. Financial Instruments (cont'd)** 

2) Sensitivity analysis on the cash flows of financial instruments with variable interest rate

The Group's interest rate risk mainly arises from borrowings with variable interest rate. As of December 31, 2025 and 2024, provided that other factors remain the same and the interest rate of borrowings with floating rates increases or decreases by 1%, the changes in interest expense for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2025** | **2024** | **2024** |
|  | **1% increase** | **1% increase** | **1% decrease** | **1% increase** | **1% decrease** |
|  Variable rate financial instruments | W | (62130) | 62130 | (46900) | 46900 |

---

(f) Supplier finance arrangement

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Group utilizes purchasing cards, purchasing loans, e-accounts receivable backed loans, and B2B/B2B plus loans under its supplier finance arrangements. The carrying amounts of the related financial liabilities and the line items in which they are presented in the statement of financial position are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2025** | **2025** | **2024** | **2024** |
|  | **Balance** | **Balance** | **Amount<br>received by<br>suppliers** | **Amount<br>received by<br>suppliers** | **Balance** | **Balance** |
|  Trade accounts and notes payable | W | 733651 |  | 617925 |  | 1298398 |
|  Accounts Payables |  | 263327 |  | 7643 |  | 273366 |
|  | W | 996978 |  | 625568 |  | 1571764 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The payment due dates for financial liabilities that are part of the supplier finance arrangements and for other financial liabilities are as follows:

---

| | |
|:---|:---|
| **Statement of financial position**<br> **line item** | **Payment due<br>date** |
|  Financial liabilities related to supplier finance arrangements | 5 to 150 Days |
|  Other comparable financial liabilities | 7 to 90 Days |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) As of the end of the current and prior years, there have been no significant non-cash changes in the carrying amounts of trade accounts payable and other payables that are part of the supplier finance arrangements.

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**24. Share Capital and Capital Surplus** 

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

---

| | | | |
|:---|:---|:---|:---|
| *(in Won, except share information)* | **2025** | **2025** | **2024** |
|  Number of shares authorized shares |  | 200000000 | 200000000 |
|  Par value per share | W | 5000 | 5000 |
|  Number of shares issued(\*1,2) |  | 80932952 | 82624377 |
|  Share capital(\*3) | W | 482403125000 | 482403125000 |

---

---

| | |
|:---|:---|
| (\*1) | As of December 31, 2025, total number of American Depository Receipts (ADRs) outstanding in overseas stock market amounts to 9,159,020 and such ADRs are equivalent to 2,289,755 shares of common stock.  |

---

---

| | |
|:---|:---|
| (\*2) | Pursuant to the resolution of the Board of Directors' meeting on February 19, 2025, the Company decided to retire 1,691,425 shares using distributable profits, and it was completed on March 31, 2025. As a result, as of December 31, 2025, the Company's total number of issued shares has decreased.  |

---

(\*3) As of December 31, 2025, the difference between the ending balance of common stock and the aggregate par value of issued common stock is W77,738 million due to retirement of 15,547,673 treasury shares.

(b) The changes in issued common stock for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(share)* | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
|  | **Issued shares** | **Treasury shares** | **Number of<br>outstanding shares** | **Issued shares** | **Treasury shares** | **Number of<br>outstanding shares** |
|  Beginning | 82624377 | (7003598) | 75620779 | 84571230 | (8695023) | 75876207 |
|  Disposal of treasury shares |  |  |  |  | (255428) | (255428) |
|  Retirement of treasury shares | (1691425) | 1691425 |  | (1946853) | 1946853 |  |
|  Ending | 80932952 | (5312173) | 75620779 | 82624377 | (7003598) | 75620779 |

---

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

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2024** | **2024** |
|  Share premium | W | 463825 |  | 463825 |
|  Gain on disposal of treasury shares |  | 808994 |  | 808994 |
|  Other capital surplus |  | 412297 |  | 376075 |
|  | W | 1685116 |  | 1648894 |

---

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**25. Hybrid Bonds** 

(a) POSCO FUTURE M CO., LTD, a subsidiary of the Group, issued hybrid bonds for the year ended December 31,
2024. The contents are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **Date of issue** | **Date of maturity** | **Interest rate (%)** | **2025** | **2025** | **2024** |
|  Hybrid bond(\*1) | 2024-12-18 | 2054-12-18 | 4.64 | W | 600000 | 600000 |

---

(\*1) Details of issuance of hybrid bonds are as follows:

---

| | |
|:---|:---|
|  | **KRW Hybrid bond** |
| Maturity date | 30 years (The issuer has a right to extend the maturity date) |
| Interest rate | Issue date ~ 2031-12-18 : 4.64% |
|  | Reset every year: additionally +0.75% according to Step-up clauses |
| Interest payments condition | Quarterly (The issuer may defer interest payments except in cases where it resolves to pay dividends or repays pari passu debt and subordinated debt) |
| Others | The issuer can call the hybrid bond 5 years of after issuance |

---

(b) The hybrid bonds can be redeemed after a certain period has elapsed since the issuance date, and its maturity
can be extended under the same conditions on the maturity date. Additionally, as interest payments can be deferred, it is deemed that the issuer has an unconditional right to avoid delivering cash or other financial assets to settle the contractual
obligation. Accordingly, the Group has classified this bond as equity.

(c) POSCO HOLDINGS INC., the controlling company, acquired W 500,000 million
out of the W 600,000 million hybrid bonds issued by POSCO FUTURE M CO., LTD.

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**26. Other components of equity** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Details of other components of equity as of December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2024** |
|  Capital adjustment arising from investments in equity-accounted investees | W | 126043 | 76870 |
|  Changes in fair value of equity investments at fair value through other comprehensive income |  | 341198 | 20066 |
|  Foreign currency translation differences |  | 1016290 | 983071 |
|  Losses on valuation of derivatives |  | (917) | (925) |
|  Others |  | 78896 | 76347 |
|  | W | 1561510 | 1155429 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Changes in fair value of equity investments at fair value through other comprehensive income for the years
ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2024** |
|  Beginning balance | W | 20066 | 153279 |
|  Changes in unrealized fair value of equity investments |  | 318654 | (145051) |
|  Reclassification upon disposal |  | 2478 | 11838 |
|  Ending balance | W | 341198 | 20066 |

---

**27. 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 years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(shares, in millions of Won)* | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
|  | **Number of shares** | **Amount** | **Amount** | **Number of shares** | **Amount** | **Amount** |
|  Beginning | 7003598 | W | 1550862 | 8695023 | W | 1889658 |
|  Acquisition of treasury shares |  |  |  | 255428 |  | 92311 |
|  Retirement of teasury share | (1691425) |  | (374546) | (1946853) |  | (431107) |
|  Ending | 5312173 | W | 1176316 | 7003598 | W | 1550862 |

---

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**28. Revenue** 

(a) Disaggregation of revenue

Details of revenue disaggregated by types of revenue and timing of revenue recognition for the years ended December 31, 2025 and 2024 are as follows:

1) For the year ended December 31, 2025

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* | | | **Infrastructure** | **Infrastructure** | **Infrastructure** | | | |
|  | **Steel** | **Steel** | **Trading** | **Construction** | **Logistics and others** | **Materials of<br>secondary battery** | **Others** | **Total** |
|  **Types of revenue** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Revenue from sales of goods | W | 36276548 | 21387183 |  | 1174 | 2036620 | 759 | 59702284 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Revenue from services |  | 852575 | 2259069 | 131558 | 259477 | 3780 | 3803 | 3510262 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Revenue from construction contract |  |  |  | 5463361 |  | 43484 |  | 5506845 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 155736 | 97852 | 20506 | 48047 | 12434 | 40920 | 375495 |
|  | W | 37284859 | 23744104 | 5615425 | 308698 | 2096318 | 45482 | 69094886 |
|  **Timing of revenue recognition** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Revenue recognized at a point in time | W | 36432284 | 21485035 | 67864 | 49221 | 2049054 | 41680 | 60125138 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Revenue recognized over time |  | 852575 | 2259069 | 5547561 | 259477 | 47264 | 3802 | 8969748 |
|  | W | 37284859 | 23744104 | 5615425 | 308698 | 2096318 | 45482 | 69094886 |

---

2) For the year ended December 31, 2024

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* | | | **Infrastructure** | **Infrastructure** | **Infrastructure** | | | |
|  | **Steel** | **Steel** | **Trading** | **Construction** | **Logistics and others** | **Materials of<br>secondary battery** | **Others** | **Total** |
|  **Types of revenue** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Revenue from sales of goods | W | 38049273 | 20059155 |  | 11894 | 2783237 |  | 60903559 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Revenue from services |  | 889556 | 2736866 | 127572 | 363384 | 3676 | 3579 | 4124633 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Revenue from construction contract |  |  |  | 7281149 |  | 25636 |  | 7306785 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 165266 | 7752 | 64285 | 46464 |  | 69399 | 353166 |
|  | W | 39104095 | 22803773 | 7473006 | 421742 | 2812549 | 72978 | 72688143 |
|  **Timing of revenue recognition** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Revenue recognized at a point in time | W | 38214539 | 20066907 | 337363 | 58358 | 2783237 | 69399 | 61529803 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Revenue recognized over time |  | 889556 | 2736866 | 7135643 | 363384 | 29312 | 3579 | 11158340 |
|  | W | 39104095 | 22803773 | 7473006 | 421742 | 2812549 | 72978 | 72688143 |

---

(b) Details of contract assets and liabilities from contracts with customers as of December 31, 2025 and 2024
are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2024** |
|  **Receivables** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trade accounts and notes receivable | W | 9633385 | 9374218 |
|  **Contract assets** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from customers for contract work |  | 1584297 | 1475180 |
|  **Contract liabilities(\*)** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Advance received |  | 505394 | 256522 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due to customers for contract work |  | 727902 | 491495 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unearned revenue |  | 100967 | 89807 |

---

(\*) The details of the contract liabilities balance of POSCO Eco & Challenge Co., Ltd., a major subsidiary, that were recognized as revenue for the years ended December 31, 2025 and 2024 are as follows.

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2024** | **2024** |
|  Contract liability balance at the beginning of the reporting period recognized as revenue | W | 372835 |  | 433980 |

---

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**29. Contract under Input Method** 

(a) Details of outstanding contracts as of December 31, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2025** | **2024** | **2024** |
|  | **Construction**<br>**segment** | **Construction**<br>**segment** | **Others** | **Construction**<br>**segment** | **Others** |
|  Accumulated cost | W | 16843416 | 226619 | 27830242 | 262814 |
|  Accumulated contract profit |  | 1325037 | 65174 | 1903582 | 43690 |
|  Accumulated contract loss |  | (723085) | (6795) | (707167) | (1930) |
|  Accumulated contract revenue |  | 17445368 | 284998 | 29026657 | 304574 |

---

(b) Details of due from customers for contract work and due to customers for contract work as of December 31,
2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2025** | **2024** | **2024** |
|  | **Construction**<br>**segment** | **Construction**<br>**segment** | **Others** | **Construction**<br>**segment** | **Others** |
|  Due from customers for contract | W | 1560490 | 33968 | 1473843 | 13716 |
|  Due to customers for contract work |  | (724368) | (3534) | (479546) | (11949) |
|  | W | 836122 | 30434 | 994297 | 1767 |

---

(c) Details of the provisions of construction loss as of December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2024** | **2024** |
|  Construction segment | W | 113391 |  | 52492 |
|  Others |  | 915 |  | 857 |
|  | W | 114306 |  | 53349 |

---

(d) For the year ended December 31, 2025, 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 profit (loss) of contract** | **Changes in profit (loss) of contract** |
|  | **Changes in total**<br>**contract revenue** | **Changes in total**<br>**contract revenue** | **Changes in estimated<br>total contract costs** | **Net<br>income** | **Future income (loss)** | **Total** |
|  Construction segment | W | 1195707 | 1237833 | (410312) | 368186 | (42126) |
|  Others |  | 2594 | 591 | 1916 | 87 | 2003 |
|  | W | 1198301 | 1238424 | (408396) | 368273 | (40123) |

---

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

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**29. Contract under Input Method (cont'd)** 

(e) As of December 31, 2025, revenue expected to be recognized in the future in relation to performance
obligations that have not been fulfilled (or partially fulfilled) is as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **2026** | **2026** | **2027** | **2028** | **After 2029** | **Total** |
|  Construction segment | W | 7345525 | 5308796 | 2928964 | 2330608 | 17913893 |
|  Others |  | 54538 | 1203 |  |  | 55741 |
|  | W | 7400063 | 5309999 | 2928964 | 2330608 | 17969634 |

---

(f) Uncertainty of estimates

1) Total contract revenues 

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

2) Total contract costs 

Contract revenues are recognized based on the percentage of completion, which is measured on the basis of the gross cost amount incurred to date. Total contract costs are estimated based on estimates of future material costs, labor costs, outsourcing costs and others. There is an 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.

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**30. Selling and Administrative Expenses** 

(a) Other administrative expenses

Other administrative expenses for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2024** |
|  Wages and salaries | W | 1323637 | 1212005 |
|  Expenses related to post-employment benefits |  | 100701 | 136211 |
|  Other employee benefits |  | 305212 | 300425 |
|  Travel |  | 54993 | 47681 |
|  Depreciation |  | 177151 | 173507 |
|  Amortization |  | 116416 | 113130 |
|  Communication |  | 13218 | 13472 |
|  Electricity |  | 17192 | 15618 |
|  Taxes and public dues |  | 99535 | 94658 |
|  Rental |  | 37847 | 45440 |
|  Repairs |  | 11684 | 16502 |
|  Entertainment |  | 13402 | 13993 |
|  Advertising |  | 95532 | 102271 |
|  Research & development |  | 195255 | 207557 |
|  Service fees |  | 234441 | 268701 |
|  Vehicles maintenance |  | 7632 | 7880 |
|  Industry association fee |  | 13877 | 12578 |
|  Conference |  | 23475 | 22797 |
|  Bad debt expenses |  | 168960 | 134230 |
|  Others |  | 84650 | 65822 |
|  | W | 3094810 | 3004478 |

---

(b) Selling expenses

Selling expenses for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2024** |
|  Freight and custody expenses | W | 31038 | 34554 |
|  Operating expenses for distribution center |  | 618 | 1995 |
|  Sales commissions |  | 94092 | 102114 |
|  Sales advertising |  | 1632 | 4304 |
|  Sales promotion |  | 10729 | 9887 |
|  Sample |  | 2181 | 2436 |
|  Sales insurance premium |  | 34606 | 32139 |
|  Contract cost |  | 52808 | 35124 |
|  Others |  | 16471 | 12335 |
|  | W | 244175 | 234888 |

---

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**31. Research and Development Expenditures Recognized as Expenses** 

Research and development expenditures recognized as expenses for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2024** | **2024** |
|  Administrative expenses | W | 331924 |  | 348003 |
|  Cost of sales |  | 195255 |  | 207557 |
|  | W | 527179 |  | 555560 |

---

**32. Finance Income and Costs** 

Details of finance income and costs for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2024** |
|  **Finance income** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest income | W | 533307 | 576782 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividend income |  | 38056 | 76947 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on foreign currency transactions |  | 1339770 | 1419887 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on foreign currency translations |  | 722904 | 1187507 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on derivatives transactions |  | 298505 | 437999 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on valuations of derivatives |  | 149211 | 898586 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on disposals of financial assets at fair value through profit of loss |  | 58487 | 164556 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on valuations of financial assets at fair value through profit or loss |  | 74295 | 201059 |
|  Gain on valuations of financial liabilities at fair value through profit or loss |  |  | 239120 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 7602 | 9152 |
|  | W | 3222137 | 5211595 |
|  **Finance costs** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expenses | W | 1091462 | 1051511 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on foreign currency transactions |  | 1354094 | 1448214 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on foreign currency translations |  | 707838 | 1900405 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on derivatives transactions |  | 435463 | 317913 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on valuation of derivatives |  | 69366 | 108625 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on disposal of trade accounts and notes receivable |  | 73431 | 82615 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on disposals of financial assets at fair value through profit or loss |  | 7134 | 27857 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on valuations of financial assets at fair value through profit or loss |  | 131502 | 80515 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on valuations of financial liabilities at fair value through profit or loss |  | 1310 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 38682 | 63080 |
|  | W | 3910282 | 5080735 |

---

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**33. Other Non-Operating Income and Expenses** 

Details of other non-operating income and expenses for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2024** |
|  **Other non-operating income** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Recovery of other bad debt expenses | W | 18513 | 18080 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on disposals of investment in subsidiaries, associates and joint ventures |  | 47374 | 14235 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on disposals of property, plant and equipment |  | 15792 | 26533 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on disposals of assets held for sale |  | 53692 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on valuation of firm commitment |  | 42010 | 46918 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reversal of other provisions |  | 8132 | 15834 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Premium income |  | 19596 | 157552 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 100482 | 107953 |
|  | W | 305591 | 387105 |
| **Other non-operating expenses** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other bad debt expenses | W | 53355 | 68979 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on disposals of assets held for sale |  | 13104 | 33943 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on disposals of investments in subsidiaries, associates and joint ventures |  | 12819 | 73428 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on disposals of property, plant and equipment |  | 89883 | 85149 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment loss on property, plant and equipment |  | 135653 | 608122 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment loss on intangible assets |  | 51640 | 47993 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on valuation of firm commitment |  | 28072 | 40383 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Idle tangible asset expenses |  | 5517 | 3047 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase to provisions |  | 55637 | 84689 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Donations |  | 90443 | 75261 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 151447 | 62882 |
|  | W | 687570 | 1183876 |

---

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**34. 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 consolidated statements of comprehensive income for the years ended December 31, 2025 and 2024 are as follows (excluding finance costs and income tax expense):

---

| | | | |
|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2024** |
|  Raw material used, changes in inventories and others | W | 40930022 | 42161756 |
|  Employee benefits expenses(\*2) |  | 5231514 | 5075621 |
|  Outsourced processing cost |  | 8464877 | 10333545 |
|  Electricity and water expenses |  | 1275012 | 1200587 |
|  Depreciation(\*1) |  | 3693288 | 3530770 |
|  Amortization |  | 465935 | 453689 |
|  Freight and custody expenses |  | 2444069 | 2594589 |
|  Sales commissions |  | 94092 | 102114 |
|  Loss on disposal of property, plant and equipment |  | 89883 | 85149 |
|  Impairment loss on property, plant and equipment |  | 135653 | 608122 |
|  Impairment loss on intangible assets |  | 51640 | 47993 |
|  Donations |  | 90443 | 75261 |
|  Other expenses |  | 4988965 | 5429250 |
|  | W | 67955393 | 71698446 |

---

(\*1) Includes depreciation of investment property.

(\*2) The details of employee benefits expenses for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2024** | **2024** |
|  Wages and salaries | W | 4878407 |  | 4769925 |
|  Expenses related to post-employment benefits |  | 353107 |  | 305696 |
|  | W | 5231514 |  | 5075621 |

---

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**35. Income Taxes** 

(a) Income tax expense for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2024** |
|  Current income taxes(\*1) | W | 665415 | 598276 |
|  Deferred income tax due to temporary differences |  | 44923 | (349762) |
|  Items credited directly to equity |  | (107892) | 55109 |
|  Income tax expense | W | 602446 | 303623 |

---

(\*1) Refund (additional payment) of income taxes as a result of a final corporation tax return, tax audits and others credited (charged) directly to current income taxes.

(b) The income taxes credited (charged) directly to equity for the years ended December 31, 2025 and 2024 are
as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2024** |
|  Net changes in fair value of equity investments at fair value through other comprehensive income(\*1) | W | (129758) | 41999 |
|  Remeasurements of defined benefit plans(\*1) |  | 15475 | 27261 |
|  Others |  | 6391 | (14151) |
|  | W | (107892) | 55109 |

---

---

| | |
|:---|:---|
| (\*1) | Those amounts were recognized in other comprehensive income.  |

---

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**35. Income Taxes (cont'd)** 

(c) The following table reconciles the calculated income tax expense to profit before income tax expense for the
years ended December 31, 2025 and 2024.

---

| | | | |
|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2024** |
|  Profit before income tax expense | W | 1106850 | 1251204 |
|  Income tax expense computed at statutory rate |  | 339114 | 285793 |
|  Adjustments: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax credit |  | (35757) | (22122) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax refund for prior years |  | (41631) | (77482) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment in subsidiaries, associates and joint ventures |  | (1691) | 107197 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax effect due to permanent differences |  | 9010 | (3801) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Carryforward of unused tax losses |  | (3418) | (19545) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Effect of tax rate change |  | 253132 | 7368 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 83687 | 26215 |
|  |  | 263332 | 17830 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | W | 602446 | 303623 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Effective tax rate (%) |  | 54.43% | 24.27% |

---

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**35. Income Taxes (cont'd)** 

(d) The movements in deferred tax assets (liabilities) for the years ended December 31, 2025 and 2024 are as
follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
|  | **Beginning** | **Beginning** | **Increase**<br>**(decrease)** | **Ending** | **Beginning** | **Increase**<br>**(decrease)** | **Ending** |
|  **Deferred income tax due to temporary differences** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Allowance for doubtful account | W | 187472 | 88053 | 275525 | 156608 | 30864 | 187472 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PP&E and Intangible asset(\*1) |  | 286927 | (859828) | (572901) | 239702 | 47225 | 286927 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share of profit or loss of equity-accounted investees |  | 284954 | 27420 | 312374 | 290919 | (5965) | 284954 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Allowance for inventories valuation |  | 34849 | (18580) | 16269 | 63187 | (28338) | 34849 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses |  | 14942 | (869) | 14073 | 13553 | 1389 | 14942 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain or loss on foreign currency translation |  | 217580 | (94052) | 123528 | 143239 | 74341 | 217580 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Defined benefit liabilities |  | 9130 | 26705 | 35835 | (3534) | 12664 | 9130 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for construction losses |  | 12337 | 15340 | 27677 | 11669 | 668 | 12337 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for construction warranty |  | 43241 | 2428 | 45669 | 45723 | (2482) | 43241 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accured income |  | (14559) | (25991) | (40550) | (21271) | 6712 | (14559) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for accelerated depreciation(\*1) |  | (1091668) | 646835 | (444833) | (2660730) | 33443 | (2627287) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Spin-off(\*1) |  |  |  |  | 1536177 | (558) | 1535619 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 213654 | 169384 | 383038 | 275829 | (62175) | 213654 |
|  |  | 198859 | (23155) | 175704 | 91071 | 107788 | 198859 |
|  **Deferred income taxes recognized directly to equity** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net changes in fair value of equity investments at fair value through other comprehensive income |  | 11881 | (129758) | (117877) | (35572) | 47453 | 11881 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 60398 | 21866 | 82264 | 47288 | 13110 | 60398 |
|  |  | 72279 | (107892) | (35613) | 11716 | 60563 | 72279 |
|  **Deferred tax from tax credit** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax credit carry-forward and others |  | 384376 | 148700 | 533076 | 253559 | 130817 | 384376 |
|  **Investments in subsidiaries, associates and joint ventures** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in subsidiaries, associates and joint ventures |  | 268280 | (62576) | 205704 | 217686 | 50594 | 268280 |
|  | W | 923794 | (44923) | 878871 | 574032 | 349762 | 923794 |

---

---

| | |
|:---|:---|
| (\*1) | During the current period, following the application of the consolidated tax system, the Group determined that it has a legally enforceable right and the intention to offset deferred tax assets and deferred tax liabilities, as they relate to the same tax authority. Accordingly, the related amounts have been presented on a net basis.  |

---

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**35. Income Taxes (cont'd)** 

(e) Deferred tax assets and liabilities for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
|  | **Asset** | **Asset** | **Liabilities** | **Net** | **Asset** | **Liabilities** | **Net** |
|  **Deferred income tax due to temporary differences** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Allowance for doubtful account | W | 275547 | (22) | 275525 | 187522 | (50) | 187472 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PP&E and Intangible asset |  | 569256 | (1142157) | (572901) | 381583 | (94656) | 286927 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share of profit or loss of equity-accounted investees |  | 325925 | (13551) | 312374 | 297596 | (12642) | 284954 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Allowance for inventories valuation |  | 16269 |  | 16269 | 34849 |  | 34849 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses |  | 14313 | (240) | 14073 | 16366 | (1424) | 14942 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain or loss on foreign currency translation |  | 142708 | (19180) | 123528 | 222220 | (4640) | 217580 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Defined benefit liabilities |  | 614728 | (578893) | 35835 | 612680 | (603550) | 9130 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for construction losses |  | 27677 |  | 27677 | 12337 |  | 12337 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for construction warranty |  | 45669 |  | 45669 | 43241 |  | 43241 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accured income |  |  | (40550) | (40550) | ***—*** | (14559) | (14559) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for accelerated depreciation |  |  | (444833) | (444833) | ***—*** | (2627287) | (2627287) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Spin-off |  |  |  |  | 1538619 | (3000) | 1535619 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 481152 | (98114) | 383038 | 298149 | (84495) | 213654 |
|  |  | 2513244 | (2337540) | 175704 | 3645162 | (3446303) | 198859 |
|  **Deferred income taxes recognized directly to equity** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net changes in fair value of equity investments at fair value through other comprehensive income |  | 48881 | (166758) | (117877) | 59666 | (47785) | 11881 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 87824 | (5560) | 82264 | 67722 | (7324) | 60398 |
|  |  | 136705 | (172318) | (35613) | 127388 | (55109) | 72279 |
|  **Deferred tax from tax credit** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax credit carry-forward and others |  | 533076 |  | 533076 | 384376 |  | 384376 |
|  **Investments in subsidiaries, associates and joint ventures** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in subsidiaries, associates and joint ventures |  | 527879 | (322175) | 205704 | 544482 | (276202) | 268280 |
|  | W | 3710904 | (2832033) | 878871 | 4701408 | (3777614) | 923794 |

---

(f) As of December 31, 2025, deductible temporary differences of W 5,856,845 million and taxable temporary differences of W 11,718,879 million related to investments in subsidiaries and associates were not recognized as deferred tax
assets or liabilities because it is not probable that they will reverse in the foreseeable future.

(g) The Group recognized current tax payable or receivable at the amount expected to be paid or received that
reflects uncertainty related to income taxes.

(h) Application of the Consolidated Tax System

Beginning in the current period, the Company applies the consolidated tax system, under which the parent company and its domestic subsidiaries are treated as a single tax unit for corporate income tax purposes. As the controlling entity of the consolidated tax group, the parent company is responsible for filing the tax return and paying the corporate income tax on behalf of the group, and subsequently collects the respective tax amounts from each domestic subsidiary.

The current income tax liabilities recognized in the current period in relation to the consolidated tax system are as follows:

---

| | | |
|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current income tax liabilities(\*1) | W | 72405 |

---

(\*1) Calculated and recognized based on the application of the consolidated tax system in the current period.

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**35. Income Taxes (cont'd)** 

(i) Global minimum top-up tax

In 2023, Pillar Two legislation has been enacted in the Republic of Korea, where the Company is domiciled, which is effective for the fiscal years starting on or after January 1, 2024. Accordingly, the Group calculated the Pillar Two income tax expense for the year ended December 31, 2025 as it is subject to global minimum top-up tax under the application of the OECD's Pillar Two Model Rules via domestic legislation. The Group reviewed subsidiaries qualifying as taxpayer, including the controlling company and, as a result, did not recognize any income tax expense for the year ended December 31, 2025 as the impact of the global minimum top-up tax on the consolidated financial statements as of December 31, 2025 would not be significant. Furthermore, the Group applies temporary exception to the recognition and disclosure of deferred taxes arising from the jurisdictional implementation of the Pillar Two Model Rules as prescribed in KIFRS 1012 *Income Taxes*. Accordingly, it did not recognize deferred tax assets and liabilities related to the global minimum top-up tax and does not disclose information related to deferred income tax.

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**36. Earnings Per Share** 

(a) Basic earnings per share for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(in Won except per share information)* | **2025** | **2025** | **2024** | **2024** |
|  Profit attributable to controlling interest | W | 657654060164 |  | 1094917125078 |
|  Weighted-average number of common shares outstanding(\*1) |  | 75620779 |  | 75767552 |
|  Basic earnings per share | W | 8697 |  | 14451 |

---

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

---

| | | |
|:---|:---|:---|
| *(shares)* | **2025** | **2024** |
|  Total number of common shares issued | 81350016 | 83761569 |
|  Weighted-average number of treasury shares | (5729237) | (7994017) |
|  Weighted-average number of common shares outstanding | 75620779 | 75767552 |

---

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

(b) Diluted earnings per share for the year ended December 31, 2024 are calculated as follows:

---

| | | |
|:---|:---|:---|
| *(in Won, except share information)* |  |  |
|  | **2024** | **2024** |
|  Profit attributable to controlling interest | W | 1094917125078 |
|  Gain from exchange rate on and revaluation of exchangeable bonds |  | (139569768850) |
|  Diluted profit |  | 1234486893928 |
|  Adjusted weighted-average number of common shares(\*1) |  | 77990432 |
|  Diluted earnings per share | W | 12250 |

---

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

---

| | | |
|:---|:---|:---|
| *(shares)* | **2024** | **2024** |
|  Weighted-average number of common shares outstanding |  | 75767552 |
|  Weighted-average number of potential common shares |  | 2222880 |
|  Adjusted weighted-average number of common shares |  | 77990432 |

---

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**37. Related Party Transaction** 

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

---

| | |
|:---|:---|
| **Type** | **Company** |
| Investments in associates and joint ventures | [Domestic]<br> POSCO MC MATERIALS, Samcheok Blue Power Co., Ltd., SNNC and others. |
|  | [Foreign]<br> Roy Hill Holdings Pty Ltd, POSCO-NPS Niobium LLC, KOBRASCO, PT NICOLE METAL INDUSTRY, HBIS-POSCO Automotive Steel Co., Ltd, South - East Asia Gas Pipeline Company Ltd., 9404-5515 Quebec Inc., AES Mong Duong Power Company Limited, KOREA LNG LTD., Nickel Mining Company SAS and others. |

---

(b) Significant transactions between the Group and its related parties for the years ended December 31, 2025
and 2024 are as follows:

1) For the year ended December 31, 2025

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **Sales and others(\*1)** | **Sales and others(\*1)** | **Sales and others(\*1)** | **Sales and others(\*1)** | **Purchase and others** | **Purchase and others** |
|  | **Sales** | **Sales** | **Dividends** | **Others** | **Purchase of**<br>**material** | **Others** |
|  **Associates and joint ventures** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; New Songdo International City Development, LLC | W | 52814 |  | 48449 |  | 54 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SNNC |  | 101468 |  | 8 | 484571 | 4163 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO-SAMSUNG-SLOVAKIA PROCESSING CENTER |  | 44882 |  |  | 5 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gunggi Green Energy |  | 7103 |  |  |  | 3438 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POS-SEAH STEEL WIRE(TIANJIN)CO., Ltd |  | 13185 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POS SeAH Steel Wire(Nantong) Co., Ltd. |  | 51513 |  |  | 357 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; South-East Asia Gas Pipeline Company Ltd. |  |  | 37273 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO MC MATERIALS |  | 132097 | 3000 |  | 6913 | 820 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Samcheok Blue Power Co., Ltd. |  | 246619 | 2795 | 352 | 20 | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO(Guangdong) Automotive Steel Co., Ltd |  | 195811 |  |  | 266549 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; HBIS-POSCO Automotive Steel Co., Ltd |  | 24870 |  |  | 66886 | 1391 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Roy Hill Holdings Pty Ltd |  |  | 213794 |  | 1544120 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 224899 | 119247 | 2051 | 447364 | 42945 |
|  | W | 1095261 | 376109 | 50860 | 2816785 | 52815 |

---

(\*1) As of December 31, 2025, the Group provides payment guarantees to related parties (see Note 38).

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**37. Related Party Transaction (cont'd)** 

2) For the year ended December 31, 2024

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **Sales and others(\*1)** | **Sales and others(\*1)** | **Sales and others(\*1)** | **Sales and others(\*1)** | **Purchase and others** | **Purchase and others** |
|  | **Sales** | **Sales** | **Dividends** | **Others** | **Purchase of<br>material** | **Others** |
|  **Associates and joint ventures** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; New Songdo International City Development, LLC | W | 216657 |  | 1427 |  | 145 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SNNC |  | 121658 |  | 8 | 377168 | 3620 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO-SAMSUNG-SLOVAKIA PROCESSING CENTER |  | 43098 |  |  | 781 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gunggi Green Energy |  | 31036 |  |  |  | 6675 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POS-SEAH STEEL WIRE(TIANJIN)CO., Ltd |  | 13733 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POS SeAH Steel Wire(Nantong) Co., Ltd. |  | 52993 |  |  | 243 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; South-East Asia Gas Pipeline Company Ltd. |  |  | 64208 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO MC MATERIALS |  | 137209 | 1800 |  | 8107 | 526 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Samcheok Blue Power Co., Ltd. |  | 377636 | 10993 | 946 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pocheon-Hwado Highway Corp. |  | 59691 |  |  |  | 65 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; HBIS-POSCO Automotive Steel Co., Ltd |  | 41369 |  |  | 37241 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Roy Hill Holdings Pty Ltd |  |  | 284541 | 260 | 1729832 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 421095 | 149647 | 4434 | 520477 | 255084 |
|  | W | 1516175 | 511189 | 7075 | 2673849 | 266115 |

---

(c) The balances of receivables and payables arising from significant transactions between the Group and its
related parties as of December 31, 2025 and 2024 are as follows:

1) December 31, 2025

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **Receivables(\*1)** | **Receivables(\*1)** | **Receivables(\*1)** | **Receivables(\*1)** | **Receivables(\*1)** | **Payables** | **Payables** | **Payables** |
|  | **Trade accounts**<br>**and notes**<br>**receivable** | **Trade accounts**<br>**and notes**<br>**receivable** | **Loans** | **Others** | **Total** | **Trade accounts**<br>**and notes**<br>**payable** | **Others** | **Total** |
|  **Associates and joint ventures** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; New Songdo International City Development, LLC | W | 25497 |  | 10100 | 35597 |  | 4 | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gunggi Green Energy |  |  |  | 14832 | 14832 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO(Guangdong) Automotive Steel Co., Ltd |  | 32218 | 6212 |  | 38430 | 37313 |  | 37313 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AMCI (WA) PTY LTD |  |  | 136580 |  | 136580 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; HBIS-POSCO Automotive Steel Co.,Ltd |  | 3701 |  |  | 3701 | 15584 | 207 | 15791 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POS-SEAHSTEELWIRE(TIANJIN)CO., Ltd |  | 4965 |  |  | 4965 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Samcheok Blue Power Co., Ltd. |  | 273880 |  | 193 | 274073 |  | 381 | 381 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nickel Mining Company SAS |  |  | 75857 | 707 | 76564 |  | 358 | 358 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POS-SeAH Steel Wire(Nantong) Co., Ltd. |  | 13334 |  |  | 13334 | 150 |  | 150 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO MC MATERIALS |  | 10838 |  | 358 | 11196 | 894 | 506 | 1400 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pocheon-Hwado Highway Corp. |  | 5491 |  |  | 5491 |  | 2 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; UITrans LRT Co., Ltd. |  |  | 39333 | 4214 | 43547 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Roy Hill Holdings Pty Ltd |  | 39761 |  | 9610 | 49371 | 426829 |  | 426829 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SNNC |  | 10694 |  | 28433 | 39127 | 5439 | 447 | 5886 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; FQM Australia Holdings Pty Ltd |  |  | 292591 |  | 292591 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 27327 | 21995 | 138447 | 187769 | 49756 | 71663 | 121419 |
|  | W | 447706 | 572568 | 206894 | 1227168 | 535965 | 73568 | 609533 |

---

---

| | |
|:---|:---|
| (\*1) | As of December 31, 2025, the Group recognized an allowance for doubtful account for receivables above amounting to W531,031 million.  |

---

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**37. Related Party Transaction (cont'd)** 

2) December 31, 2024

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **Receivables(\*1)** | **Receivables(\*1)** | **Receivables(\*1)** | **Receivables(\*1)** | **Receivables(\*1)** | **Payables** | **Payables** | **Payables** |
|  | **Trade accounts**<br>**and notes**<br>**receivable** | **Trade accounts**<br>**and notes**<br>**receivable** | **Loans** | **Others** | **Total** | **Trade accounts**<br>**and notes**<br>**payable** | **Others** | **Total** |
|  **Associates and joint ventures** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; New Songdo International City Development, LLC | W | 96730 |  | 1657 | 98387 |  | 30087 | 30087 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gunggi Green Energy |  | 5846 |  | 10706 | 16552 |  | 567 | 567 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO(Guangdong) Automotive Steel Co., Ltd |  | 46547 | 6162 |  | 52709 | 48866 |  | 48866 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AMCI (WA) PTY LTD |  |  | 142767 |  | 142767 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; HBIS-POSCO Automotive Steel Co.,Ltd |  | 13924 |  |  | 13924 | 5483 | 1922 | 7405 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POS-SEAHSTEELWIRE(TIANJIN)CO., Ltd |  | 5970 |  |  | 5970 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Samcheok Blue Power Co., Ltd. |  | 189173 |  | 148 | 189321 |  | 77187 | 77187 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nickel Mining Company SAS |  |  | 68793 | 122 | 68915 |  | 358 | 358 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POS-SeAH Steel Wire(Nantong) Co., Ltd. |  | 19628 |  |  | 19628 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO MC MATERIALS |  | 14544 |  | 168 | 14712 | 1314 | 357 | 1671 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pocheon-Hwado Highway Corp. |  | 10985 |  |  | 10985 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; UITrans LRT Co., Ltd. |  | 13592 | 51051 | 9187 | 73830 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Roy Hill Holdings Pty Ltd |  | 25023 |  | 8836 | 33859 | 356234 | 25 | 356259 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SNNC |  | 12861 |  | 70 | 12931 | 10322 | 1298 | 11620 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; FQM Australia Holdings Pty Ltd |  |  | 292764 |  | 292764 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others |  | 27728 | 19730 | 138239 | 185697 | 10168 | 10129 | 20297 |
|  | W | 482551 | 581267 | 169133 | 1232951 | 432387 | 121930 | 554317 |

---

---

| | |
|:---|:---|
| (\*1) | As of December 31, 2024, the Group recognized an allowance for doubtful account for receivables above amounting to W506,673 million.  |

---

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**37. Related Party Transaction (cont'd)** 

(d) Major financial transactions between the Group and its related parties for the year ended December 31,
2025 and 2024 are as follows:

1) For the year ended December 31, 2025

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **Beginning** | **Beginning** | **Lend** | **Collect** | **Others(\*1)** | **Ending** |
|  **Associates and joint ventures** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; UITrans LRT Co., Ltd. | W | 51051 |  | (11718) |  | 39333 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PT. Tanggamus Electric Power |  | 3854 |  | (3089) | 1823 | 2588 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nickel Mining Company SAS |  | 68793 |  |  | 7064 | 75857 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KRAKATAU POS-CHEM DONG-SUH CHEMICAL |  | 1470 |  | (1435) | (35) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Hyo-chun Co., Ltd. |  | 2382 |  |  |  | 2382 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AMCI (WA) PTY LTD |  | 142767 | 73 | (13657) | 7397 | 136580 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POS-AUSTEM WUHAN AUTOMOTIVE CO., LTD |  | 5636 |  | (5733) | 97 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; FQM Australia Holdings Pty Ltd |  | 292764 |  |  | (173) | 292591 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POHANG E&E Co., LTD |  | 3228 | 1444 |  |  | 4672 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO(Guangdong) Automotive Steel Co., Ltd. |  | 6162 | 64858 | (64914) | 106 | 6212 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gale International Korea, LLC |  | 100 | 344 |  |  | 444 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; P&O Chemical Co., Ltd. |  | 3060 |  |  | (3060) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CAML |  |  | 5766 |  |  | 5766 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POS-AUSTEM Suzhou Automotive |  |  | 6143 |  |  | 6143 |
|  | W | 581267 | 78628 | (100546) | 13219 | 572568 |

---

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

2) For the year ended December 31, 2024

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **Beginning** | **Beginning** | **Lend** | **Collect** | **Others(\*1)** | **Ending** |
|  **Associates and joint ventures** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; UITrans LRT Co., Ltd. | W | 46335 | 4718 |  | (2) | 51051 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PT. Tanggamus Electric Power |  | 4826 |  | (1288) | 316 | 3854 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nickel Mining Company SAS |  | 64197 |  |  | 4596 | 68793 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KRAKATAU POS-CHEM DONG-SUH CHEMICAL |  | 2579 |  | (1379) | 270 | 1470 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Hyo-chun Co., Ltd. |  | 2382 |  |  |  | 2382 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AMCI (WA) PTY LTD |  | 112177 | 6499 |  | 24091 | 142767 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POS-AUSTEM WUHAN AUTOMOTIVE CO., LTD |  | 5158 |  |  | 478 | 5636 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; FQM Australia Holdings Pty Ltd |  | 256938 | 3126 |  | 32700 | 292764 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POHANG E&E Co., LTD |  | 1646 | 1582 |  |  | 3228 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; POSCO(Guangdong) Automotive Steel Co., Ltd. |  | 14332 | 59402 | (68294) | 722 | 6162 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gale International Korea, LLC |  |  | 100 |  |  | 100 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; P&O Chemical Co., Ltd. |  |  | 3060 |  |  | 3060 |
|  | W | 510570 | 78487 | (70961) | 63171 | 581267 |

---

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

(e) For the years ended December 31, 2025 and 2024, there were additional investments in associates and joint
ventures and others amounting to W 213,280 million and W 301,816 million, respectively.

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**37. Related Party Transaction (cont'd)** 

(f) For the years ended December 31, 2025 and 2024, details of compensation to the Group's key
management officers are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2024** | **2024** |
|  Short-term benefits | W | 163545 |  | 190253 |
|  Long-term benefits |  | 3056 |  | 9858 |
|  Retirement benefits |  | 24829 |  | 29261 |
|  | W | 191430 |  | 229372 |

---

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.

**38. Commitments and Contingencies** 

(a) Contingent liabilities

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

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

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

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**38. Commitments and Contingencies (cont'd)** 

(b) Details of guarantees

1) Contingent liabilities on outstanding guarantees and others provided by the Group as of December 31, 2025 are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* |  |  | **Guarantee limit** | **Guarantee limit** | **Guarantee limit** | **Guarantee amount** | **Guarantee amount** |
| **Guarantor** | **Guarantee beneficiary** | **Financial institution** | **Foreign currency** | **Foreign currency** | **Won<br>equivalent** | **Foreign<br>currency** | **Won<br>equivalent** |
|  **[The Company]** |  |  |  |  |  |  |  |
|  POSCO HOLDINGS INC. | POSCO Asia Co., Ltd. | ING BANK and others | USD | 200000000 | 286981 | 32000000 | 45917 |
|  | POSCO Argentina S.A.U | HSBC and others | USD | 1079900000 | 1549547 | 1017467072 | 1459962 |
|  POSCO | POSCO ASSAN TST STEEL INDUSTRY Inc | Citibank and others | USD | 122850000 | 176277 | 122850000 | 176277 |
|  POSCO INTERNATIONAL Corporation | PT. Bio Inti Agrindo | Hana Bank Indonesia and others | IDR | 631200000000 | 54031 | 631200000000 | 54031 |
|  | POSCO ASSAN TST STEEL INDUSTRY | Woori Bank Hong Kong and others | USD | 13650000 | 19586 | 13650000 | 19586 |
|  | POSCO INTERNATIONAL Deutschland GmbH | Bank Mendes Gans Amsterdam | USD | 50000000 | 71745 |  |  |
|  | POSCO INTERNATIONAL JAPAN Corp. |  |  |  |  | 15987721 | 22941 |
|  | 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 |  |  |  |  |  |  |
|  | PT. KRAKATAU POSCO ENERGY | POSCO Asia Co., Ltd. and others | USD | 102903407 | 147656 | 29400000 | 42186 |
|  | POSCO INTERNATIONAL MEXICO E-MOBILITY S.A DE C.V. | Export-Import Bank of Korea and others | USD | 52054800 | 74693 | 51379000 | 73724 |
|  | POSCO INTERNATIONAL POLAND E-MOBILITY SP. Z O.O. | BNP Paribas Polska S.A. | EUR | 23678000 | 39914 | 23678000 | 39914 |
|  | PT POSCO INTERNATIONAL ENP INDONESIA | PT Bank Negara Indonesia | USD | 750000 | 1076 | 750000 | 1076 |
|  | AGPA PTE. LTD. | SMBC Singapore | USD | 20880000 | 29961 | 20880000 | 29961 |
|  | POSCO INTERNATIONAL ALASKA ENERGY LLC | Glenfarne Alaska Partners, LLC | USD | 45000000 | 64571 | 45000000 | 64571 |
|  POSCO STEELEON CO.,LTD. | Myanmar POSCO C&C Company, Limited. | POSCO Asia Co., Ltd. | CNY | 121678106 | 24915 | 101398422 | 20762 |
|  POSCO FUTURE M CO., LTD. | ULTIUM CAM LIMITED PARTNERSHIP | Investissement Quebec, Strategic Innovation Fund | CAD | 299562500 | 313858 | 232265400 | 243349 |
|  |  | Shinhan Bank | USD | 100000000 | 143490 | 100000000 | 143490 |
|  **[Associates and joint ventures]** |  |  |  |  |  |  |  |
|  POSCO HOLDINGS INC. | Nickel Mining Company SAS | ING Bank | EUR | 46000000 | 77543 | 46000000 | 77543 |
|  | PT.Nicole Metal Industry | OCBC Bank and others | USD | 40180000 | 57654 | 17090526 | 24523 |
|  POSCO | POSUK Titanium | Shinhan Bank | USD | 12750000 | 18295 | 12750000 | 18295 |
|  POSCO INTERNATIONAL Corporation | GLOBAL KOMSCO Daewoo LLC | Hana Bank Bahrain | USD | 6650000 | 9542 | 4200000 | 6027 |
|  POSCO Eco & Challenge Co., Ltd. | Chun-cheon Energy Co., Ltd | Kookmin Bank and others | KRW | 149200 | 149200 | 117980 | 117980 |
|  **[Others]** |  |  |  |  |  |  |  |
|  POSCO Eco & Challenge Co., Ltd. | Subcontractors for maintenance projects, etc. | Kookmin Bank and others | KRW | 380652 | 380652 | 65338 | 65338 |
|  POSCO AUSTRALIA PTY LTD | Department of Trade and Investment (NSW Government) and others | Woori Bank and others | AUD | 18744862 | 18014 | 18744862 | 18014 |
|  PT. Bio lnti Agrindo | KSU Mandob Sejatera | Bank Muamalat | IDR | 80000000000 | 6848 | 5866666666 | 502 |
|  POSCO COATED STEEL (THAILAND) CO., LTD. | AMATA NATURAL GAS DISTRIBUTION COMPANY LIMITED and others | SC Bank | THB | 54614000 | 2492 | 54614000 | 2492 |
|  | BUREAU OF INDIAN STANDARDS (BIS) | SC Bank | USD | 10000 | 14 | 10000 | 14 |
|  POSCO Maharashtra Steel Private Limited | Gail India and others | Deutsche Bank and others | INR | 1049571593 | 16772 | 1049571593 | 16772 |
|  PT. Prime Agri Resources | Koperasi Bakomo Diri Maju (KBDM) and others | Koperasi Simpan Pinjam Sahabat Mitra Sejati and others | IDR | 339798202782 | 29087 | 339798202782 | 29087 |

---

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**38. Commitments and Contingencies (cont'd)** 

2) The details of credit enhancements by types of the Group's PF business as of December 31, 2025 are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;① Maintenance projects and others

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. The information about maturity of the loans related to PF credit enhancements such as debt acceptance and fund
supplementation is as follows:

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* |  |  |  |  | | | | **Balance of the loans** | **Balance of the loans** | **Balance of the loans** | **Balance of the loans** | **Balance of the loans** | **Balance of the loans** | **Balance of the loans** |
| **Provider** | **Projects(\*1)** | **Borrower** | **Type** | **Credit enhancement<br>measures** | **Agreed<br>amount** | **Agreed<br>amount** | **Executed<br>amount** | **Total** | **Within 3<br>months** | **3~6<br>months** | **6 months<br>~1 year** | **1 year<br>~2 years** | **2 years<br>~3 years** | **After<br>3 years** |
|  **[The Company]** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  POSCO Eco & Challenge Co., Ltd. | Other projects | JB CLARK HILLS CORP | Main PF | Debt assumption | W | 45630 | 38025 | 38025 |  |  | 38025 |  |  |  |
|  **[Associates and joint ventures]** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  POSCO Eco & Challenge Co., Ltd. | Other projects | New Songdo International City Development, LLC | Mortgage loan | Debt assumption |  | 494000 | 321300 | 321300 |  | 74500 |  | 246800 |  |  |
|  **[Others]** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  POSCO Eco & Challenge Co., Ltd. | Maintenance projects | Bangbae Shindonga Apartment Reconstruction and Maintenance Project Association, etc. | Main PF | Debt assumption |  | 1359516 | 592214 | 592214 |  | 63400 | 48174 | 94447 | 95075 | 291118 |
|  | Other projects | Civic Center PFV | Main PF | Debt assumption |  | 45000 | 45000 | 45000 |  |  |  |  |  | 45000 |
|  | Other projects | LandmarkSewoon | Main PF | Debt assumption |  | 50000 | 50000 | 50000 |  |  |  |  |  | 50000 |
|  | Other projects | DAON INP Co., Ltd. | Main PF | Joint guarantee |  | 78000 | 60000 | 60000 |  |  |  |  | 60000 |  |
|  | Other projects | Jeonju Eco-city | Main PF | Debt assumption |  | 53300 | 22600 | 22600 |  |  | 22600 |  |  |  |
|  | Other projects | Alpha City H&G., Ltd. | Main PF | Debt assumption |  | 60000 | 60000 | 60000 |  |  |  |  | 60000 |  |
|  | Other projects | Island One | Main PF | Debt assumption |  | 50000 | 50000 | 50000 |  |  |  |  | 50000 |  |
|  | Other projects | Hankook Asset Development Co., Ltd. | Main PF | Debt assumption |  | 48000 | 40000 | 40000 |  |  |  | 40000 |  |  |
|  | Other projects | Daegu MBC Site Mixed-use Development PFV | Main PF | Debt assumption |  | 80000 | 80000 | 80000 |  |  |  |  | 80000 |  |
|  POSCO DX | Other projects | Jeonnong school keeper co. and others(\*2) | Main PF | Supplemental<br> funding agreement<br> and others |  | 123309 | 36691 | 36691 |  |  |  |  | 1367 | 35324 |
|  |  |  |  |  |  | 1947125 | 1036505 | 1036505 |  | 63400 | 70774 | 134447 | 346442 | 421442 |
|  |  |  |  |  | W | 2486755 | 1395830 | 1395830 |  | 137900 | 108799 | 381247 | 346442 | 421442 |

---

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

---

| | |
|:---|:---|
| (\*2) | The obligation to supplement funding has been included in the Group's proportionate interests. The execution amount of the supplement funding obligation may vary depending on the fulfillment of such obligations by other construction investors or operational investors. (Including other interests: guarantee limit of W1,122,320 million, outstanding loan balance of W337,508 million)  |

---

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**38. Commitments and Contingencies (cont'd)** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. The details of conditional debt acceptance and principal and interest repayment commitments in the event of non-compliance with completion guarantee covenant of December 31, 2025 are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* |  | **Number of**<br>**constructions** | **Contract amount** | **Contract amount** | **Contingency<br>amount(\*1)(\*2)** | **Balance of loans** |
|  Maintenance projects | Total amount | 19 | W | 8665234 | 3388729 | 1705326 |
|  | Amount attributable to the Group | 19 |  | 6737433 | 2607511 | 1212673 |
|  Other projects | Total amount | 1 |  | 2197729 | 5350000 | 1392900 |
|  | Amount attributable to the Group | 1 |  | 2197729 | 5350000 | 1392900 |
|  | Total amount | 20 |  | 10862963 | 8738729 | 3098226 |
|  | Amount attributable to the Group | 20 | W | 8935162 | 7957511 | 2605573 |

---

---

| | |
|:---|:---|
| (\*1) | The overlapping amount with other credit enhancement measures such as the agreed debt assumption upon loan origination amounts to W28,305 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 completion guarantee may vary depending on factors such as the reasons attributable to the project participants upon actual execution of the responsibility completion.  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. The details of contingencies of claim for damages in the event of non-compliance with construction completion covenant as of December 31, 2025 are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **Number of constructions** | **Number of**<br>**constructions** | **Contract amount** | **Contract amount** | **Contingency<br>amount(\*1)(\*2)** | **Balance of loans** |
|  Other projects | Total amount | 36 | W | 11500272 | 12756200 | 8391513 |
|  | Amount attributable to the Group | 36 |  | 10871875 | 12366854 | 8068064 |

---

---

| | |
|:---|:---|
| (\*1) | The overlapping amount with other credit enhancement measures such as the agreed debt assumption upon loan origination amounts to W385,000 million for the maintenance projects.  |

---

---

| | |
|:---|:---|
| (\*2) | In the case of joint subcontracting projects, the total joint guarantee amount of the project participants has been disclosed. However, the final execution amount of completion guarantee may vary depending on factors such as the reasons attributable to the project participants upon actual execution of the responsibility completion.  |

---

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**38. Commitments and Contingencies (cont'd)** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;② SOC projects

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* |  |  | | | | |
| **Provider** | **Recipient** | **Credit enhancement**<br> **measures** | **Number of**<br>**constructions** | **Approved<br>amount** | **Approved<br>amount** | **Remaining balance**<br>**after repayment** |
|  **[Associates and joint ventures]** |  |  |  |  |  |  |
|  POSCO DX | Pocheon-Hwado Highway Corp.(\*1) | Providing funds | 1 | W | 24923 | 22234 |
|  POSCO Eco & Challenge Co., Ltd. | Pocheon-Hwado Highway Corp.(\*1) | Providing funds | 1 |  | 319515 | 285039 |
|  | POHANG E&E Co., LTD(\*2) | Providing funds and supplemental funding agreement | 2 |  | 71930 | 39266 |
|  | Pureun Tongyeong Enviro Co., Ltd.(\*2) | Providing funds | 1 |  | 25630 | 9804 |
|  | Pure Gimpo.Co.,Ltd(\*2) | Providing funds | 1 |  | 51565 | 21181 |
|  | Clean Iksan Co.,Ltd(\*2) | Providing funds | 1 |  | 44054 | 20137 |
|  |  |  | 7 |  | 537617 | 397661 |
|  **[Others]** |  |  |  |  |  |  |
|  POSCO DX | Western Inland highway CO., LTD. | Providing funds | 1 |  | 47348 | 32668 |
|  | Busan Sanseong Tunnel | Refinancing | 1 |  | 7621 | 7621 |
|  POSCO Eco & Challenge Co., Ltd. | Western Seoul highway CO., LTD.<br> and others | Supplemental funding agreement | 11 |  | 63683 | 28201 |
|  | Western Inland highway CO., LTD. and others | Providing funds | 42 |  | 2778848 | 1562721 |
|  | Pohang Youngil Bay New Port | Debt assumption | 1 |  | 2250 | 1440 |
|  | Busan Sanseong Tunnel | Refinancing | 1 |  | 35296 | 26750 |
|  |  |  | 57 |  | 2935046 | 1659401 |
|  |  |  | 64 | W | 3472663 | 2057062 |

---

(\*1) The Group provides a funding commitment of W307,273 million (including other shares: W555,848 million) equivalent to the Group's shares of the loan balance for the private investment project.

(\*2) The Group provides a funding commitment of W90,387 million (including other shares: W163,819 million) equivalent to the Group's shares of the loan balance for the private investment project.

(\*3) The Group provides a funding commitment of W1,619,113 million (including other shares: W7,702,054 million) equivalent to the Group's shares of the loan balance for the private investment project.

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**38. Commitments and Contingencies (cont'd)** 

3) Other guarantees

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;① As of December 31, 2025, 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** | **Agreed amount** | **Executed amount** | **Guarantor** |
|  **[Subsidiaries]** |  |  |  |  |  |  |
|  POSCO Eco & Challenge Co., Ltd. | Ventanas Philippines<br> Construction Inc | Guarantee on performance<br> for contracts and others | W | 11202 | 11202 | Korea Trade Insurance<br> Corporation and others |
|  POSCO GYR Tech | POSCO and others | Defect liability warranty |  | 101 | 101 | CI Guarantee |
|  |  |  |  | 11303 | 11303 |  |
|  **[Associates]** |  |  |  |  |  |  |
|  POSCO Eco & Challenge Co., Ltd. | PT.Tanggamus Electric Power | Letter of credit |  | 2877 | 2877 | Hana Bank |
|  | PT. Wampu Electric Power | Letter of credit |  | 2583 | 2583 | Hana Bank |
|  |  |  |  | 5460 | 5460 |  |
|  **[Others]** |  |  |  |  |  |  |
|  POSCO Eco & Challenge Co., Ltd. | DAEWOO ENGINEERING<br> & CONSTRUCTION Co., Ltd | Guarantee on performance<br> for construction |  | 8803087 | 8793877 | Construction Guarantee<br> Cooperative |
|  POSCO WIDE Co., Ltd | Human Eco-Land Co., Ltd. | Guarantee on performance<br> for contracts and others |  | 3050 | 3050 | Seoul Guarantee<br> Insurance |
|  POSCO GYR Tech | KEPCO KPS and others | Defect liability warranty |  | 1095 | 1095 | CI Guarantee |
|  |  |  |  | 8807232 | 8798022 |  |
|  |  |  | W | 8823995 | 8814785 |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;② As of December 31, 2025, 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** | **Agreed amount** | **Executed amount** |
|  Construction Guarantee Cooperative | Subcontractor Payment Guarantee and others | W | 5255953 | 5255953 |
|  Engineering guarantee insurance | Guarantee on performance for EPC contracts and others |  | 913756 | 700662 |
|  Seoul Guarantee Insurance | Construction performance guarantee and others |  | 517441 | 517441 |
|  Korea Housing & Urban Guarantee Corporation | Housing Guarantee and others |  | 5711921 | 5038742 |
|  Woori Bank and others | Foreign currency guarantee |  | 1953945 | 897193 |
|  Korea software financial<br> cooperative | Guarantee on performance for contracts |  | 120173 | 114611 |
|  Seoul Guarantee Insurance | Guarantee on performance and others |  | 80249 | 80249 |
|  Construction Guarantee Cooperative | Guarantee on performance for contracts |  | 24482 | 195 |
|  CI Guarantee | Defect liability warranty |  | 1196 | 1196 |
|  |  | W | 14579116 | 12606242 |

---

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**38. Commitments and Contingencies (cont'd)** 

(c) Other commitments

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

---

| | |
|:---|:---|
| **Company** | **Description** |
| POSCO HOLDINGS INC. | As of December 31, 2025, POSCO HOLDINGS INC. entered into a commitment with KOREA ENERGY AGENCY for long-term foreign currency borrowings, which are limited up to the amount of USD 1.05 million. The borrowing is related to 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 December 31, 2025, the ending balance of the borrowing amounts to USD 1.02 million. |
|  | POSCO HOLDINGS INC. has deposited 86,611 treasury shares for exchange with the Korea Securities Depository in relation to foreign currency exchangeable bonds as of December 31, 2025. |
| POSCO | POSCO entered into long-term contracts to purchase iron ore, coal, nickel and others. The long-term purchase contract period is more than two years for iron ore, three years for coal, and one year for nickel. These contracts provide for periodic price adjustments based on the market price. As of December 31, 2025, 48 million tons of iron ore and 18 million tons of coal remained to be purchased under such long-term contracts. |
|  | POSCO entered into an agreement with Tangguh Liquefied Natural Gas (LNG) Consortium in Indonesia to purchase 550 thousand tons of LNG annually for 20 years commencing in August 2005. The purchase contract period and volume are 550,000 tons per year for 20 years from August 2005, and 120,000 tons from September 2025 to December 2026. The purchase price is subject to change, based on changes of the monthly standard oil price (JCC) and with a price ceiling. |
|  | POSCO has a long-term service contract for the transportation of raw material. As of December 31, 2025, there are 32 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 has entered into an LNG terminal usage agreement with POSCO International to consume directly imported LNG for processing and power generation at the Pohang and Gwangyang steelworks after unloading, storing, vaporizing, and transmitting it through the Gwangyang LNG terminal. This agreement grants the Company the exclusive and sole right to use 200,000 ㎘ of LNG storage capacity in the new LNG storage tank and to use the terminal facilities, including other ancillary equipment. The contract period is from September 1, 2025, to August 31, 2041. |
|  | Regarding the shares of FEWM CO., LTD., POSCO holds a put option, exercisable from July 1, 2026, to June 30, 2027. This gives the Company the right to claim the sale of its shares in the target company at a pre-negotiated exercise price, to the extent that the company's stake reaches 59% of the total issued shares of the target company at that time. |
| POSCO INTERNATIONAL Corporation | 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 November 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. |
|  | As of December 31, 2025, according to the investor agreement for the construction of Samcheok Thermal Power Plant, POSCO INTERNATIONAL Corporation is obligated to make contributions for core capital, unqualified investment, excess expenses occurred for business, and acceleration of payment. |
| POSCO FUTURE M CO., LTD | In accordance with the GP Shareholders Agreement with GM Battery Raw Materials Corporation ("GM"), the Company has an obligation to make additional capital contributions to ULTIUM CAM LIMITED PARTNERSHIP. As of December 31, 2025, the remaining amount of USD 484,364 thousand is scheduled to be contributed additionally by 2026 through capital call. |

---

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**38. Commitments and Contingencies (cont'd)** 

(d) Commitment for asset acquisition

The commitment amount for the acquisition of major assets that has not yet occurred as of December 31, 2025 is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(In millions of Won)* | **2025** | **2025** | **2024** | **2024** |
|  Property, plant and equipment | W | 5573047 |  | 5853808 |
|  Intangible assets |  | 42124 |  | 27859 |
|  Investments in associates and joint ventures |  | 167683 |  | 92958 |
|  | W | 5782854 |  | 5974625 |

---

(e) Litigation in progress

As of December 31, 2025, pending litigations that POSCO HOLDINGS INC. and certain subsidiaries are defendants in legal actions arising from the normal course of business are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(in millions of Won, in thousands of foreign currencies)* | *(in millions of Won, in thousands of foreign currencies)* | *(in millions of Won, in thousands of foreign currencies)* | *(in millions of Won, in thousands of foreign currencies)* | |  |
| **Company** | **Legal actions** | **Claim amount** | **Claim amount** | **Won equivalent** | **Description** |
|  POSCO HOLDINGS INC. | 3 | KRW | 669 | 669 | Lawsuit on claim for damages and others |
|  POSCO | 181 | KRW | 542579 | 542579 | Lawsuit on claim for employee right and others |
|  POSCO INTERNATIONAL Corporation | 1 | KRW |  |  | Lawsuit on claim for damages and others |
|  | 2 | INR | 4469396 | 71421 | Lawsuit on claim for payment on guarantees and others |
|  | 5 | USD | 72662 | 104263 | Lawsuit on claim for damages and others |
|  | 1 | PKR | 124775 | 639 | Lawsuit on claim for damages |
|  | 1 | ARS | 1800 | 2 | Lawsuit on claim for damages |
|  POSCO Eco & Challenge Co., Ltd. | 136 | KRW | 503451 | 503451 | Lawsuit on claim for damages and others |
|  POSCO STEELEON Co., Ltd. | 1 | KRW | 271 | 271 | Lawsuit on claim for damages |
|  POSCO DX | 1 | BRL | 21845 | 5722 | Lawsuit on claim for damages |
|  | 8 | KRW | 3401 | 3401 | Lawsuit on claim for damages and others |
|  POSCO FUTURE M CO., LTD. | 1 | KRW | 600 | 600 | Lawsuit on claim for damages and others |
|  POSCO A&C | 7 | KRW | 2485 | 2485 | Lawsuit on claim for damages and others |
|  POSCO WIDE Co., Ltd. | 3 | KRW | 322 | 322 | Lawsuit on claim for damages and others |
|  POSCO Mobility Solution Corporation | 2 | KRW | 615 | 615 | Lawsuit on claim for damages and others |
|  POSCO-China Holding Corp. | 1 | USD | 2580 | 3702 | Lawsuit on claim for damages and others |
|  POSCO Engineering and Construction India Private Limited | 2 | INR | 493968 | 7894 | Lawsuit on claim for payment and others |
|  PT. POSCO E&C INDONESIA | 1 | IDR | 13561952 | 1161 | Lawsuit on claim for payment and others |
|  POSCO INDIA PROCESSING CENTER PRIVATE LIMITED | 1 | INR | 54420 | 870 | Lawsuit on claim for damages |
|  PT. KRAKATAU POSCO | 2 | IDR | 11108052 | 951 | Lawsuit over contract dispute and others |
|  POSCO ZT AIR SOLUTION | 1 | KRW | 25 | 25 | Lawsuit on claim for damages |
|  Pos-Sea Pte Ltd | 1 | USD | 3200 | 4592 | Lawsuit over contract dispute and others |
|  Brazil Sao Paulo Steel Processing Center | 7 | BRL | 6729 | 1763 | Lawsuit on claim for labor and others |
|  POSCO Thainox Public Company Limited | 2 | THB | 3480 | 159 | Lawsuit on invalidation of a check |
|  POSCO ASSAN TST STEEL INDUSTRY Inc. | 27 | USD | 132 | 189 | Lawsuit on claim for labor and others |
|  POSCO Maharashtra Steel Private Limited | 1 | INR | 9500 | 152 | Lawsuit on claim for labor and others |
|  POSCO-TNPC | 1 | TRY |  |  |  |
|  POSCO-India Private Limited | 1 | INR | 2466 | 39 | Lawsuit on claim for wages |
|  POSCO MPPC S.A. de C.V. | 4 | MXN | 4924 | 393 | Lawsuit on claim for labor and others |
|  POSCO(Chongqing) Automotive Processing Center Co., Ltd. | 1 | CNY | 510 | 104 | Lawsuit on claim for penalty payment |

---

The Group has recorded a provision for contingent losses for 38 lawsuits, including those related to guarantee obligations, and reasonably estimating the likelihood of occurrence and the amount. (see Note 20)

As of December 31, 2025, the Group has determined that there are no present obligations resulting from pending litigations, other than those for which a provision for contingent losses has been established, and therefore has not recognized any provisions for these litigation cases.

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**38. Commitments and Contingencies (cont'd)** 

(f) Other contingencies

Details of other major contingencies of the Group as of December 31, 2025 are as follows:

---

| | |
|:---|:---|
| **Company** | **Description** |
| POSCO HOLDINGS INC. | POSCO HOLDINGS INC. has provided 3 blank checks to Korea Energy Agency as collateral for long-term foreign currency borrowings. |
|  | 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 December 31, 2025, POSCO INTERNATIONAL Corporation has provided 19 blank promissory notes and 12 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 December 31, 2025, POSCO Eco & Challenge Co., Ltd. has provided 40 blank checks and 4 blank promissory notes as collateral for agreements and outstanding loans. |
| POSCO DX | As of December 31, 2025, POSCO DX has provided 7 blank checks to financial institutions as collateral for the guarantee on performance for contracts and others. |

---

(g) Other commitments

As of December 31, 2025, the Company has entered into a credit line agreement such as overdraft, general loans and trade finance with various financial institutions including Korea Development Bank, with a limit of W36,127,400 million, which are translated into Korean won from multiple borrowing currencies.

**39. Statements of Cash Flows** 

(a) Changes in operating assets and liabilities for the years ended December 31, 2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2024** |
|  Trade accounts and notes receivable | W | (663252) | 1566091 |
|  Other receivables |  | (333826) | (192707) |
|  Inventories |  | 566606 | 218506 |
|  Other current assets |  | 148797 | (124125) |
|  Other non-current assets |  | 189609 | (11645) |
|  Trade accounts and notes payable |  | (916576) | (376277) |
|  Other payables |  | 181355 | 56936 |
|  Other current liabilities |  | 350384 | (375368) |
|  Provisions |  | (69218) | (213235) |
|  Usable and profitable donation assets |  |  | 101557 |
|  Payments of severance benefits |  | (382621) | (336189) |
|  Plan assets |  | 143152 | 27413 |
|  Other non-current liabilities |  | (19304) | (4089) |
|  | W | (804894) | 336868 |

---

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**39. Statements of Cash Flows (cont'd)** 

(b) Changes in liabilities arising from financing activities for the years ended December 31, 2025 and 2024
are as follows:

1) For the year ended December 31, 2025

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **Liabilities** | **Liabilities** | **Liabilities** | **Liabilities** | **Liabilities** | **Derivatives**<br>**that hedge<br>borrowings** |
|  | **Short-term<br>borrowings** | **Short-term<br>borrowings** | **Long-term**<br>**borrowings** | **Dividend**<br>**payable** | **Finance<br>lease**<br>**liabilities** | **Derivatives**<br>**that hedge<br>borrowings** |
|  **Beginning** | W | 5733091 | 20264276 | 4182 | 906101 | (782567) |
|  Changes from financing cash flows |  | 2158541 | 235005 | (915216) | (143423) | 242154 |
|  Effect of changes in foreign exchange rates |  | (459675) | 549426 | 14 | (131796) |  |
|  Changes in fair values |  |  | 1310 |  |  | (53809) |
|  Other changes: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Decrease in retained earnings |  |  |  | 756208 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Decrease in non-controlling interest |  |  |  | 159410 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expenses |  |  | 10026 |  | 63416 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase in lease assets |  |  |  |  | 646356 |  |
|  **Ending** | W | 7431957 | 21060043 | 4598 | 1340654 | (594222) |

---

2) For the year ended December 31, 2024

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **Liabilities** | **Liabilities** | **Liabilities** | **Liabilities** | **Liabilities** | **Derivatives**<br>**that hedge<br>borrowings** |
|  | **Short-term<br>borrowings** | **Short-term<br>borrowings** | **Long-term**<br>**borrowings** | **Dividend**<br>**payable** | **Finance<br>lease**<br>**liabilities** | **Derivatives**<br>**that hedge<br>borrowings** |
|  **Beginning** | W | 4959280 | 21011099 | 3261 | 924320 | (129991) |
|  Changes from financing cash flows |  | (217759) | (1633370) | (844195) | (195367) | 181397 |
|  Effect of changes in foreign exchange rates |  | 991570 | 1102079 | 991 | (3696) |  |
|  Changes in fair values |  |  | (239120) |  |  | (833973) |
|  Loss on bond redemption |  |  | 7063 |  |  |  |
|  Other changes: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Decrease in retained earnings |  |  |  | 758124 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Decrease in non-controlling interest |  |  |  | 86001 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expenses |  |  | 16525 |  | 48625 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase in lease assets |  |  |  |  | 132219 |  |
|  **Ending** | W | 5733091 | 20264276 | 4182 | 906101 | (782567) |

---

(c) Material non-cash transactions for the years ended December 31,
2025 and 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2024** |
|  Transfer of construction-in-progress to property, plant and equipment and intangible assets | W | 4816462 | 7193949 |
|  Changes in accounts payable related to acquisition of property, plant and equipment and intangible assets |  | 214488 | (181188) |
|  Retirement of treasury shares |  | 374545 | 431107 |
|  | W | 5405495 | 7443868 |

---

------

##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**40. Operating Segments and Geographic Information** 

(a) The Group's operating businesses are distinguished based on the nature of markets and customers. The
assets, liabilities and profit or loss for each operating segment are generally measured based on the separate financial statements of the consolidated entities that make up each operating segment, which are prepared in accordance with KIFRS.

Meanwhile, the Group has classified the operating segments as below. Also, businesses in which the subsidiaries in each segment operate are as follows:

---

| | | |
|:---|:---|:---|
| **Operating segments** | **Operating segments** | **Main Business** |
| Steel |  | Manufacture and sales of steel products |
| Infrastructure | Trading | Supply and purchase transactions between domestic and foreign companies, power generation, and resource development |
|  | Construction | Design, production and construction of steel mills and their facilities, commercial and residential facilities, etc. |
|  | Logistics and others | Logistics, network and system integration business |
| Materials of secondary battery |  | EV battery materials such as lithium, nickel, negative/cathode materials |
| 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 for the period, in accordance with KIFRS. The accounting policies applied to each segment are consistent with the accounting policies of the entities that make up the consolidated financial
statements. Segment assets and liabilities are generally measured based on the total assets and total liabilities in accordance with KIFRS before reflecting the consolidation adjustments allocated to the entity. Furthermore, segment assets and
liabilities are based on the separate financial statements of the consolidated entities, not on a consolidated basis. Transactions between reporting segments include various levels of inter-segment transactions, which encompass the disposal of
tangible assets and the provision of construction services, among others.

(c) Information about reportable segments as of and for the years ended December 31, 2025 and 2024 are as
follows:

1) As of and for the year ended December 31, 2025

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | | **Infrastructure** | **Infrastructure** | **Infrastructure** | **Materials of<br>secondary battery** | | |
| *(in millions of Won)* | **Steel** | **Steel** | **Trading** | **Construction** | **Logistics and others** | **Materials of<br>secondary battery** |<br>**Others** |<br>**Total** |
|  External revenues | W | 37284859 | 23744104 | 5615425 | 308698 | 2096318 | 45482 | 69094886 |
|  Internal revenues |  | 22113985 | 18476807 | 1612908 | 3245526 | 1242068 | 1454626 | 48145920 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inter segment revenues |  | 13410240 | 8320896 | 1536259 | 3213965 | 1080601 | 1428562 | 28990523 |
|  Total revenues |  | 59398844 | 42220911 | 7228333 | 3554224 | 3338386 | 1500108 | 117240806 |
|  Interest income |  | 265247 | 71820 | 166612 | 14037 | 33093 | 102238 | 653047 |
|  Interest expenses |  | (642769) | (294752) | (158004) | (10091) | (163332) | (36075) | (1305023) |
|  Depreciation and amortization |  | (3157768) | (550848) | (77880) | (61323) | (387604) | (25757) | (4261180) |
|  Impairment loss on property, plant and equipment and others |  | (74950) | (102427) | (1124) | (69) | (26967) | 1 | (205536) |
|  Share of profit(loss) of equity-accounted investees, net |  | 78456 | (66743) | (59415) |  | (4598) | (288464) | (340764) |
|  Income tax benefit (expense) |  | (425319) | (127340) | 165765 | (30729) | 56431 | (296715) | (657907) |
|  Segment profits (losses) |  | 1151885 | 562687 | (565450) | 61045 | (592030) | 506748 | 1124885 |
|  Segment total assets |  | 65563164 | 23642210 | 9797114 | 2041956 | 17624390 | 52173819 | 170842653 |
|  Investment in subsidiaries, associates and joint ventures |  | 4853061 | 4373069 | 243420 | 26859 | 3557211 | 46090333 | 59143953 |
|  Acquisition of non-current assets |  | 2740237 | 917829 | 24041 | 215973 | 2218337 | 305257 | 6421674 |
|  Segment total liabilities |  | 22346902 | 13197558 | 6662955 | 784391 | 7827176 | 3983008 | 54801990 |

---

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##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**40. Operating Segments and Geographic Information (cont'd)** 

2) As of and for the year ended December 31, 2024

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | | **Infrastructure** | **Infrastructure** | **Infrastructure** | **Materials of<br>secondary battery** | | |
| *(in millions of Won)* | **Steel** | **Steel** | **Trading** | **Construction** | **Logistics and others** | **Materials of<br>secondary battery** |<br>**Others** |<br>**Total** |
|  External revenues | W | 39104095 | 22803773 | 7473006 | 421742 | 2812549 | 72978 | 72688143 |
|  Internal revenues |  | 23096825 | 20099480 | 2356572 | 3717459 | 1017302 | 2038172 | 52325810 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inter segment revenues |  | 15038824 | 9427415 | 2233541 | 3694427 | 959313 | 2011559 | 33365079 |
|  Total revenues |  | 62200920 | 42903253 | 9829578 | 4139201 | 3829851 | 2111150 | 125013953 |
|  Interest income |  | 279469 | 72208 | 158867 | 18902 | 47525 | 85128 | 662099 |
|  Interest expenses |  | (699586) | (308671) | (146885) | (12169) | (117040) | (1328) | (1285679) |
|  Depreciation and amortization |  | (3166418) | (492626) | (77355) | (61578) | (240723) | (19964) | (4058664) |
|  Impairment loss on property, plant and equipment and others |  | (273160) | (36161) | (8420) | (10518) | (331717) | (299) | (660275) |
|  Share of loss of equity-accounted investees, net |  | (321718) | (142090) | (111476) |  | (170122) | (392074) | (1137480) |
|  Income tax benefit (expense) |  | (306337) | (189573) | (18387) | (46996) | 203475 | 62923 | (294895) |
|  Segment profits (losses) |  | 691477 | 536684 | (194292) | 104022 | (634860) | 1596035 | 2099066 |
|  Segment total assets |  | 66585437 | 21012507 | 9270877 | 2592169 | 15090058 | 50946666 | 165497714 |
|  Investment in subsidiaries, associates and joint ventures |  | 4339321 | 3080324 | 276994 | 12165 | 2397830 | 45407650 | 55514284 |
|  Acquisition of non-current assets |  | 3589327 | 916654 | 29033 | 252499 | 4717540 | 256826 | 9761879 |
|  Segment total liabilities |  | 24375388 | 12152036 | 5627404 | 1003673 | 7347647 | 2565914 | 53072062 |

---

(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:

1) Revenues

---

| | | | |
|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2024** |
|  Total revenue for reportable segments | W | 117240806 | 125013953 |
|  Elimination of inter-segment revenue |  | (48145920) | (52325810) |
|  | W | 69094886 | 72688143 |

---

2) Profit 

---

| | | | |
|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2024** |
|  Total profit for reportable segments | W | 1124885 | 2099066 |
|  Goodwill and corporate FV adjustments |  | (65966) | (64791) |
|  Elimination of inter-segment profit |  | (554515) | (1086695) |
|  Income tax expense |  | 602446 | 303623 |
|  Profit before income tax expense | W | 1106850 | 1251203 |

---

3) Assets 

---

| | | | |
|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2024** |
|  Total assets for reportable segments | W | 170842653 | 165497714 |
|  Investment in subsidiaries, associates and joint ventures |  | (54163800) | (50775491) |
|  Goodwill and corporate FV adjustments |  | 2943006 | 2543165 |
|  Elimination of inter-segment assets |  | (14429421) | (13861189) |
|  | W | 105192438 | 103404199 |

---

4) Liabilities

---

| | | | |
|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2024** |
|  Total liabilities for reportable segments | W | 54801990 | 53072062 |
|  Goodwill and corporate FV adjustments |  | 211742 | 221537 |
|  Elimination of inter-segment liabilities |  | (12198985) | (11339768) |
|  | W | 42814747 | 41953831 |

---

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##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**40. Operating Segments and Geographic Information (cont'd)** 

5) Other significant items

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) 2025

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **Total segment** | **Total segment** | **Goodwill and**<br>**corporate FV**<br>**adjustments** | **Elimination of**<br>**inter-segment<br>transactions** | **Consolidated** |
|  Interest income | W | 653047 |  | (119740) | 533307 |
|  Interest expenses |  | (1305023) |  | 213561 | (1091462) |
|  Depreciation and amortization |  | (4261180) | (80920) | 182877 | (4159223) |
|  Share of profit(loss) of equity-accounted investees, net |  | (340764) |  | 690674 | 349910 |
|  Income tax expense |  | (657907) | 14954 | 40507 | (602446) |
|  Impairment loss on property, plant and equipment and others |  | (205536) |  | 10552 | (194984) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) 2024

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(in millions of Won)* | **Total segment** | **Total segment** | **Goodwill and**<br>**corporate FV**<br>**adjustments** | **Elimination of**<br>**inter-segment<br>transactions** | **Consolidated** |
|  Interest income | W | 662099 |  | (85317) | 576782 |
|  Interest expenses |  | (1285679) |  | 234168 | (1051511) |
|  Depreciation and amortization |  | (4058664) | (86358) | 160562 | (3984460) |
|  Share of profit(loss) of equity-accounted investees, net |  | (1137480) | (50) | 881072 | (256458) |
|  Income tax expense |  | (294895) | 21668 | (30396) | (303623) |
|  Impairment loss on property, plant and equipment and others |  | (660275) | (282) | (13198) | (673755) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Revenue by geographic area for the years ended December 31, 2025 and 2024 is as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2024** |
|  Domestic | W | 42516707 | 45960140 |
|  Japan |  | 2590102 | 2814631 |
|  China |  | 5160583 | 5737686 |
|  Indonesia |  | 2873999 | 3156962 |
|  Asia-other |  | 7751121 | 7382157 |
|  North America |  | 2780769 | 2504563 |
|  Europe |  | 3065738 | 2743528 |
|  Others |  | 2355867 | 2388476 |
|  | W | 69094886 | 72688143 |

---

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##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**40. Operating Segments and Geographic Information (cont'd)** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Non-current assets by geographic area as of December 31, 2025 and
2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** | **2024** |
|  Domestic | W | 34594834 | 33512812 |
|  Japan |  | 126582 | 131086 |
|  China |  | 1074438 | 1140136 |
|  Indonesia |  | 3416737 | 3036954 |
|  Asia-other |  | 1950162 | 1698956 |
|  North America |  | 2400911 | 1857787 |
|  Europe |  | 324813 | 302775 |
|  Others |  | 5589497 | 4897042 |
|  | W | 49477974 | 46577548 |

---

Non-current assets by geographic area include investment property, property, plant and equipment, goodwill and other intangible assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) There are no customers whose revenue is 10% or more of the consolidated revenue.

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##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**41. Business Combination** 

During the current period, the Company acquired PT Prime Agri Resources (formerly PT Sampoerna Agro), a company that operates palm plantations and a seed business throughout Indonesia, in which the consolidated entity holds a 65.7% interest. The Company anticipates that the stable revenue from the acquired company will expand its global palm market competitiveness by enlarging the farm production base and strengthening the refining value chain.

(a) The fair values of the identifiable assets and liabilities of the acquiree as of the acquisition date are as
follows:

---

| | |
|:---|:---|
| *(in millions of Won)* | **2025** |
|  **Current assets** | W 354,240 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | 69692 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trade and other receivables | 23497 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventories | 58942 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | 41399 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net assets held for sale | 160710 |
|  **Non-current assets** | 798785 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property, plant and equipment | 608053 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Right-of-use assets | 2968 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Intangible assets | 83247 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Biological assets | 28373 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | 76144 |
|  **Current liabilities** | 301449 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trade and other payables | 48211 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings | 36447 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities | 216791 |
|  **Non-current liabilities** | 283410 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term borrowings | 198416 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities | 84994 |
|  **Net assets** | 568166 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquired ownership interest | 65.70% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net assets acquired | 373404 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consideration transferred | 798147 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Goodwill | 424743 |

---

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##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**41. Business Combination (cont'd)** 

(b) Net cash flow from business combination

---

| | | |
|:---|:---|:---|
| *(in millions of Won)* | **2025** | **2025** |
|  Consideration paid in cash |  | 798147 |
|  Less: Cash and cash equivalents of the acquired subsidiary |  | 69692 |
|  Net cash outflow |  | 728455 |

---

Meanwhile, assuming PT. Prime Agri Resources had been consolidated from January 1, 2025, the revenue and net income would have been KRW 553,167 million and KRW 93,366 million, respectively. Since its inclusion in the consolidation, the revenue and net income generated from PT. Prime Agri Resources are KRW 95,989 million and KRW 12,296 million, respectively.

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##### [**Table of Contents**](#toc)
**POSCO HOLDINGS INC. and its Subsidiaries** 

**Notes to the Consolidated Financial Statements, Continued** 

**As of December 31, 2025 and 2024** 

**42. Matters Concerning Tariffs** 

In June 2025, the U.S. government announced an executive order imposing a 50% tariff on all steel and aluminum products, which took effect on June 4, 2025. The imposition of this tariff creates uncertainty in the estimates of the financial statements.

**43. Events After the Reporting Period** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company decided on a year-end cash dividend of KRW 2,500 per common
share (total dividend amount: KRW 189.1 billion), pursuant to a resolution of the Board of Directors on February 3, 2026.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company decided to retire 1,691,425 shares of its treasury stock (planned retirement amount: KRW 635.1
billion), pursuant to a resolution of the Board of Directors on February 19, 2026. The scheduled date of retirement is March 31, 2026.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) On January 16, 2026, the Company's subsidiary, POSCO, issued unsecured senior U.S.
dollar-denominated notes (issue amount: US$700 million). The maturity dates for these notes are January 16, 2031 (for US$400 million) and January 16, 2036 (for US$300 million).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) To respond to the North American steel market and secure a foundation for eco-friendly automotive steel sheets, our subsidiary, POSCO, has participated in an investment with Hyundai Motor Group to jointly construct an integrated electric furnace steel mill in Louisiana, USA. The
investment is structured so that our company establishes a Special Purpose Company (SPC), POS-Louisiana Inc., through a 100% equity investment, and that SPC, in turn, acquires a 20% stake in HYUNDAI-POSCO
Louisiana Steel LLC. Our final investment amount is approximately US$582 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) On January 15, 2026, our subsidiary, POSCO Future M Co., Ltd., issued the 23-1 unsecured bond (KRW 390 billion, annual interest rate of 3.574%) and the 23-2 unsecured bond (KRW 60 billion, annual interest rate of 3.884%). The
maturity dates for these bonds are January 15, 2029, and January 15, 2031, respectively.

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##### [**Table of Contents**](#toc)
**Audit opinion on internal control over financial reporting** 

The accompanying independent auditor's report on internal control over financial reporting is attached as a result of auditing the internal control over financial reporting of POSCO HOLDINGS INC. (the "Company") and its subsidiaries (collectively referred to as the "Group") and the consolidated financial statements of the Group for the year ended December 31, 2025 in accordance with the Article 8 of the *Act on External Audit of Stock Companies.*

Attachments:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Independent auditor's report on internal control over financial reporting

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Reporting on the operating status of internal control over financial reporting

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##### [**Table of Contents**](#toc)
![LOGO](g81300dsp0131.jpg)

**Independent auditor's report on internal control over financial reporting** 

(English translation of a report originally issued in Korean)

POSCO HOLDINGS INC.

The Shareholders and Board of Directors

**Opinion on internal control over financial reporting** 

We have audited the internal control over financial reporting ("ICFR") of POSCO HOLDINGS INC. and its subsidiaries (collectively referred to as the "Group") based on the Conceptual Framework for Design and Operation of ICFR established by the Operating Committee of ICFR in the Republic of Korea (the "ICFR Committee") as of December 31, 2025.

In our opinion, the Group's ICFR has been effectively designed and operated, in all material respects, as of December 31, 2025, in accordance with the Conceptual Framework for Design and Operation of ICFR.

We also have audited, in accordance with Korean Standards on Auditing ("KSA"), the consolidated statement of financial position As of December 31, 2025, and the consolidated statements of comprehensive income, changes in equity and cash flows for the year then ended, and notes to the consolidated financial statements , including a summary of material accounting policy information, of the Group, and our report dated March 11, 2026 expressed an unqualified opinion thereon.

**Basis for opinion on ICFR** 

We conducted our audit in accordance with KSA. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of ICFR section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of ICFR in the Republic of Korea, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

**Responsibilities of management and those charged with governance for ICFR** 

Management is responsible for designing, implementing and maintaining an effective ICFR, and for assessing the effectiveness of ICFR included in the accompanying Report on Operating Status of Internal Control over Financial Reporting.

Those charged with governance are responsible for overseeing the Group's ICFR process.

**Auditor's responsibilities for the audit of ICFR** 

Our responsibility is to express an opinion on the Group's ICFR based on our audit. We conducted our audit in accordance with KSA. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective ICFR was maintained in all material respects.

An audit of the ICFR involves performing procedures to obtain audit evidence as to whether a material weakness exists. The procedures selected depend on the auditor's judgment, including the assessment of the risks that a material weakness exists. An audit also includes testing and evaluating the design and operation of ICFR based on obtaining an understanding of ICFR and the assessed risk.

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##### [**Table of Contents**](#toc)
![LOGO](g81300dsp0132.jpg)

**ICFR definition and inherent limitations** 

A company's ICFR is implemented by those charged with governance, management, and other employees and is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in accordance with International Financial Reporting Standards as adopted by the Republic of Korea ("KIFRS"). A company's ICFR includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of consolidated financial statements in accordance with KIFRS, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the consolidated financial statements.

Because of its inherent limitations, ICFR may not prevent or detect material misstatements of the consolidated financial statements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that ICFR may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

The engagement partner on the audit resulting in this independent auditor's report is Yongwoo Lee.

Seoul, Korea

March 11, 2026

This audit report is effective as of the independent auditor's report date. Accordingly, certain material subsequent events or circumstances may have occurred during the period from the independent auditor's report date to the time this report is used. Such events and circumstances could significantly affect the Group's ICFR and may result in modifications to this report.

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##### [**Table of Contents**](#toc)
**Report on Operating Status of Internal Control over Financial Reporting for consolidation purposes.** 

<u>English Translation of a Report Originally Issued in Korean</u> 

To the Shareholders, Board of Directors and Audit Committee of POSCO HOLDINGS INC.

We, as the Chief Executive Officer and the Internal Control Officer of POSCO HOLDINGS INC. and its subsidiaries (the "Company"), assessed the operating status of the Company's Internal Control over Financial Reporting ("ICFR") for consolidation purposes as of December 31, 2025.

Design and operation of ICFR for consolidation purposes is the responsibility of the Company's management, including the Chief Executive Officer and the Internal Control Officer (collectively, "We").

We evaluated whether the Company effectively designed and operated its ICFR for consolidation purposes to prevent and detect errors or fraud that could result in a misstatement in financial statements to ensure preparation and disclosure of reliable financial information.

We designed and operated the Company's ICFR for consolidation purposes in accordance with the 'Conceptual Framework for Designing and Operating Internal Control over Financial Reporting', established by the Operating Committee of Internal Control over Financial Reporting in Korea. In addition, we conducted an evaluation of ICFR for consolidation purposes based on 'Criteria for Evaluation and Reporting of ICFR' (Appendix 6 of the Enforcement Rules on Regulations on External Audit and Accounting).

Based on our assessment, we concluded that the Company's ICFR for consolidation purposes is designed and operated effectively as of December 31, 2025, in all material respects, in accordance with the Guidelines for Internal Control over Financial Reporting.

We certify that this report does not contain any untrue statement of a fact, or omit to state a fact necessary to be presented herein. We also certify that this report does not contain or present any statements which might cause material misunderstandings of the readers, and we have reviewed and verified this report with sufficient care.

(Appendix)

• Internal control activities implemented by the Company to mitigate fraud risks related to funds, including
embezzlement

*February 2, 2026* 

/s/ Ju tae Lee, Representative Director & President

/s/ Seung-Jun, Kim, Internal Control Officer

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##### [**Table of Contents**](#toc)
(Appendix)

• Internal control activities implemented by the Company to mitigate fraud risks related to funds, including embezzlement

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;**Category** | **Control Activities Performed by the Company** | **Target Companies** | **Design and Operation Status**<br> **Inspection Results** |
| &nbsp;&nbsp;&nbsp; Entity-level<br> Controls | <br> Management operates a whistleblower system (anonymous reporting channel) and fraud prevention and monitoring programs to prevent fraud incidents such as embezzlement. | POSCO Holdings Co., Ltd., POSCO Co., Ltd., and 22 other companies | As a result of testing, no significant weaknesses were found (Internal Accounting Department of POSCO Holdings Co., Ltd. and 8 other companies, Finance Teams of PT. KRAKATAU POSCO and 14 other companies, August and December 2025) |
| &nbsp;&nbsp;&nbsp; Entity-level<br> Controls | <br> Management updates the identification and assessment of potential fraud risks considering changes in business processes and appropriately reflects these in controls. | POSCO Holdings Co., Ltd., POSCO Co., Ltd., and 22 other companies | As a result of testing, no significant weaknesses were found (Internal Accounting Department of POSCO Holdings Co., Ltd. and 8 other companies, Finance Teams of PT. KRAKATAU POSCO and 14 other companies, August and December 2025) |
| &nbsp;&nbsp;&nbsp; Entity-level<br> Controls | <br> Management considers segregation of duties and access restrictions according to internal accounting management guidelines when designing transaction-level control activities, and manages to ensure that the segregation of duties design is updated and properly operated considering changes in business processes. | POSCO Holdings Co., Ltd., POSCO Co., Ltd., and 37 other companies | As a result of testing, no significant weaknesses were found (Internal Accounting Department of POSCO Holdings Co., Ltd. and 8 other companies, Finance Teams of POSCO ASIA COMPANY LIMITED and 28 other companies, utilization of external experts at POSCO Argentina S.A.U., August 2025 and February 2026) |
| &nbsp;&nbsp;&nbsp; Entity-level<br> Controls | <br> Management establishes an operation status inspection plan and reports evaluation results to the Audit Committee and Board of Directors. | POSCO Holdings Co., Ltd., POSCO Co., Ltd., and 37 other companies | As a result of testing, no significant weaknesses were found (Internal Accounting Department of POSCO Holdings Co., Ltd. and 8 other companies, Finance Teams of POSCO ASIA COMPANY LIMITED and 28 other companies, utilization of external experts at POSCO Argentina S.A.U., August 2025 and February 2026) |
| &nbsp;&nbsp;&nbsp; Internal<br> controls<br> over cash | <br> The Chief Financial Officer or, in the case of government project accounts, executives of the project department as qualified approvers review and approve the validity of reasons, amounts, periods, etc., when opening or closing accounts. | POSCO Holdings Co., Ltd., POSCO Co., Ltd., and 37 other companies | As a result of testing, no significant weaknesses were found (Internal Accounting Department of POSCO Holdings Co., Ltd. and 8 other companies, Finance Teams of POSCO ASIA COMPANY LIMITED and 28 other companies, utilization of external experts at POSCO Argentina S.A.U., August and December 2025, January 2026) |
| &nbsp;&nbsp;&nbsp; Internal<br> controls<br> over cash | <br> Qualified approvers such as finance leaders review and approve whether the balance and transaction details on ERP or monthly cash closing reports match bank statements. | POSCO Holdings Co., Ltd., POSCO Co., Ltd., and 37 other companies | As a result of testing, no significant weaknesses were found (Internal Accounting Department of POSCO Holdings Co., Ltd. and 8 other companies, Finance Teams of POSCO ASIA COMPANY LIMITED and 28 other companies, utilization of external experts at POSCO Argentina S.A.U., August and December 2025, January 2026) |
| &nbsp;&nbsp;&nbsp; Internal<br> controls<br> over cash | <br> The department head responsible for corporate/use seals restricts physical access to corporate/use seals. | POSCO Holdings Co., Ltd., POSCO Co., Ltd., and 27 other companies | As a result of testing, no significant weaknesses were found (Internal Accounting Department of POSCO Holdings Co., Ltd. and 8 other companies, Finance Teams of POSCO ASIA COMPANY LIMITED and 19 other companies, August and December 2025, January 2026) |

---

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##### [**Table of Contents**](#toc)
• Internal control activities implemented by the Company to mitigate fraud risks related to funds, including embezzlement

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;**Category** | **Control Activities Performed by the Company** | **Target Companies** | **Design and Operation Status**<br> **Inspection Results** |
| &nbsp;&nbsp;&nbsp;Internal controls over cash | Physical assets such as OTPs are stored in safes, and passwords for electronic assets such as digital certificates are shared only with limited authorized personnel. | POSCO Future M Co., Ltd. and 31 other companies | As a result of testing, no significant weaknesses were found (Internal Accounting Department of POSCO Future M Co., Ltd. and 4 other companies, Finance Teams of POSCO ASIA COMPANY LIMITED and 25 other companies, utilization of external experts at POSCO Argentina S.A.U., August and December 2025, January 2026) |
| &nbsp;&nbsp;&nbsp;Internal controls over cash | <br> Qualified approvers such as the Chief Financial Officer review and approve the appropriateness of key requirements such as the purpose and scale of fundraising on borrowing and bond issuance proposals; if board resolution is required, the matter is submitted to the Board of Directors. | POSCO Holdings Co., Ltd., POSCO Co., Ltd., and 37 other companies | As a result of the test, no significant vulnerabilities were found (Internal Accounting Department of POSCO Holdings Co., Ltd. and 8 other companies, Finance Teams of POSCO ASIA COMPANY LIMITED and 28 other companies, utilization of external experts at POSCO Argentina S.A.U., August and December 2025, January 2026) |
| &nbsp;&nbsp;&nbsp;Internal controls over cash | <br> Cash disbursement tasks are limited to qualified approvers such as the Finance Office leader and the Finance Office cashier, with separation between the cash disbursement requester and the final approver. | POSCO Holdings Co., Ltd., POSCO Co., Ltd., and 37 other companies | As a result of the test, no significant vulnerabilities were found (Internal Accounting Department of POSCO Holdings Co., Ltd. and 8 other companies, Finance Teams of POSCO ASIA COMPANY LIMITED and 28 other companies, utilization of external experts at POSCO Argentina S.A.U., August and December 2025, January 2026) |
| &nbsp;&nbsp;&nbsp;Internal controls over cash | <br> Qualified approvers such as the Finance Office leader review and approve the consistency between the account number and account holder name of the transfer target before cash withdrawal. | POSCO Holdings Co., Ltd., POSCO Co., Ltd., and 37 other companies | As a result of the test, no significant vulnerabilities were found (Internal Accounting Department of POSCO Holdings Co., Ltd. and 8 other companies, Finance Teams of POSCO ASIA COMPANY LIMITED and 28 other companies, utilization of external experts at POSCO Argentina S.A.U., August and December 2025, January 2026) |
| &nbsp;&nbsp;&nbsp;Internal controls over cash | <br> The system is configured to prevent transfers to accounts not registered in the vendor Master. | POSCO Holdings Co., Ltd., POSCO Co., Ltd., and 32 other companies | As a result of the test, no significant vulnerabilities were found (Internal Accounting Department of POSCO Holdings Co., Ltd. and 8 other companies, Finance Teams of POSCO ASIA COMPANY LIMITED and 23 other companies, utilization of external experts at POSCO Argentina S.A.U., August and December 2025, January 2026) |

---

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##### [**Table of Contents**](#toc)
• Internal control activities implemented by the Company to mitigate fraud risks related to funds, including embezzlement

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;**Category** | **Control Activities Performed by the Company** | **Target Companies** | **Design and Operation Status**<br> **Inspection Results** |
| &nbsp;&nbsp;&nbsp;Internal controls over cash | <br> RTC personnel conduct final approval by reviewing payment evidence for account opening/closing cases approved by each corporation's finance manager.<br> \* RTC: Regional Treasury Center | POSCO ASIA COMPANY LIMITED and POSCO Maharashtra Steel Private Limited | As a result of the test, no significant vulnerabilities were found (Finance Teams of POSCO ASIA COMPANY LIMITED and one other company, August and December 2025, January 2026) |
| &nbsp;&nbsp;&nbsp;Internal controls over cash | <br> The Accounting Group Leader reviews and approves monitoring results reconciling site passbook copies with ERP balances. | POSCO E&C Co., Ltd. | As a result of the test, no significant vulnerabilities were found (Internal Accounting Department of POSCO E&C Co., Ltd., August and December 2025, January 2026) |
| &nbsp;&nbsp;&nbsp;Internal controls over cash | <br> The Finance Group Leader reviews the validity and approves new openings and closures of overseas accounts. | POSCO E&C Co., Ltd. | As a result of the test, no significant vulnerabilities were found (Internal Accounting Department of POSCO E&C Co., Ltd., August and December 2025, January 2026) |
| &nbsp;&nbsp;&nbsp;Internal controls over cash | When new borrowings or extensions require Headquarters LOG/LOC, approval is obtained from the corporation head, followed by prior approval from the Board of Directors and approval from the CEO (for new borrowings) or Head of Treasury Division (for extensions). | POSCO INTERNATIONAL AMERICA CORP. and 5 other companies | As a result of the test, no significant vulnerabilities were found (Finance Teams of POSCO INTERNATIONAL AMERICA CORP. and 5 other companies, August and December 2025, January 2026) |
| &nbsp;&nbsp;&nbsp;Other Business Process Controls | The business department head reviews and approves whether key information (business registration number, address, etc.) on the vendor Master creation/modification request matches supporting documents. | POSCO Holdings Co., Ltd., POSCO Co., Ltd., and 37 other companies | As a result of the test, no significant vulnerabilities were found (Internal Accounting Department of POSCO Holdings Co., Ltd. and 8 other companies, Finance Teams of POSCO ASIA COMPANY LIMITED and 28 other companies, utilization of external experts at POSCO Argentina S.A.U., August and December 2025, January 2026) |

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![LOGO](g81300dsp0137.jpg) The internal control activities disclosed in this appendix represent key internal control activities designed and operated to address the risk of cash misappropriation, and do not include all cash-related controls for financial reporting purposes.