QUARTERLY REPORT

(From January 1, 2026 to March 31, 2026)

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

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

QUARTERLY REPORT

(From January 1, 2026 to March 31, 2026)

To:  Korean Financial Services Commission and Korea Exchange

 

/s/ LEE, Ju Tae

LEE, Ju Tae

President and Representative Director

POSCO HOLDINGS INC. 6261 Donghaean-ro, Pohang-si, Nam-gu, Gyungsangbuk-do, Korea

Telephone: +82-54-220-0114

 

/s/ HAN, Young Ah

HAN, Young Ah

Head of IR Office, Executive Vice President

POSCO HOLDINGS INC. 6261 Donghaean-ro, Pohang-si, Nam-gu, Gyungsangbuk-do, Korea

Telephone: +82-054-220-0114

 

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TABLE OF CONTENTS

 

I.   Overview
II. Business
III.  Financial Statements

 

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

 

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I. OVERVIEW

Company Overview is omitted in the quarterly report. Please refer to our Annual Report(20-F) disclosed on April 29, 2026 or a summarized version of the Business Report released on March 31, 2026.

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

 

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II. BUSINESS

1. Overview

A. Classification of Business

We classify our business into six segments:

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

Infrastructure (Logistics and associated businesses), Rechargeable Battery Materials, and Others.

B. Summary of Financial Status of Segment

 

																		(Unit: KRW million)
Business Segment		2026.Q1								2025								2024
		Sales				Operating Income (Loss)				Sales				Operating Income (Loss)				Sales				Operating Income (Loss)
Steel			14,964,225				345,183				59,413,172				1,960,162				62,200,920				1,636,808
Infrastructure (Trading)			11,171,241				340,225				42,220,911				1,102,781				42,903,253				1,113,710
Infrastructure (Construction)			1,752,329				51,754				7,228,333				(504,421	)			9,829,578				64,804
Infrastructure (Logistics and etc.)			934,990				13,249				3,554,224				83,603				4,139,201				147,603
Rechargeable Battery Materials			978,834				(6,797	)			3,338,386				(440,863	)			3,829,851				(277,472	)
Others			875,447				747,286				1,500,108				972,350				2,111,150				1,600,212
Total			30,677,066				1,490,900				117,255,134				3,173,612				125,013,953				4,285,664

 

*	Based on aggregation of internal transactions among affiliates.

*	‘Energy Materials’ segment was renamed as ‘Rechargeable Battery Materials’ by management decision in June 2025.

 

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2. Business Status of Segments

A. Steel

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

∎ POSCO

(1) Summary of Business

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

Steel is a key industry that has served a pivotal role in achieving national economic development. Steel is used as a basic material in diverse manufacturing businesses, such as automobiles, shipbuilding, home appliances and construction; therefore, steel, by its nature, is intricately connected to the frontline industries.

Despite strong demand from emerging countries, such as India, global crude steel production in the first quarter of 2026 fell year-on-year due to the continued global tightening trend and sluggish demand in industries including China’s real estate market.

In the first quarter of 2026, global crude steel production recorded a moderate year-on-year decline; the delayed recovery in downstream industries, e.g., construction and manufacturing, led to a subdued demand rebound, while China and other major producers cut production and adjusted inventory. Additionally, steel demand recovery is projected to remain constrained in the foreseeable future as risks in the Middle East drive up energy and logistics costs and intensify uncertainty in the global economy.

Global Crude Steel Production

 

				(Unit: million ton)
Crude Steel   Production		2026.Q1		2025		2024
Global		459		1,804		1,839
Korea     (Ratio)		16     (3.5%)		62     (3.4%)		64     (3.5%)

 

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

The steel industry is affected by the business cycle and fluctuations in the demand industry.

Therefore, steel demand is impacted by changes in the real economy as well as market conditions of demand industries, i.e., shipbuilding, automobiles, home appliance, and construction.

 

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The steel industry is a capital- and technology-intensive industry that requires massive initial investment. Hence, steelmakers are focused on reducing production costs to achieve price competitiveness.

POSCO aims to maintain its competitive edge in the domestic market by strengthening long-term partnership with key customers and by devising comprehensive responses, such as marketing, R&D, technology services, and productions, to address global protectionism. In addition, we are expanding steel processing centers to meet the needs of global frontline industries, such as automobiles, shipbuilding, home appliances, and construction, while strengthening global sales network by operating steel production bases in Indonesia (upstream) and India (cold-rolling mills). Additionally, we are seeking opportunities to expand overseas production capacity; one such example is the JV project completed with Hebei Steel.

On the production side, POSCO is driving strategic high value-added product development and robust sales networks to respond to new growth demand in next-generation energy sectors, e.g., new mobility, renewable energy, smart infrastructure. Meanwhile, we aim to lead global carbon neutrality efforts through phased implementation of our 2050 carbon neutrality roadmap, which includes the construction of a HyREX (hydrogen-reduced steelmaking) demo plant to advance carbon-reduced technology development.

(2) Market Share

 

																				(Unit: million ton)
Category				2026.Q1								2025								2024
				Production				Market share				Production				Market share				Production				Market share
Crude Steel Production					16				100.0	%			62				100.0	%			64				100.0	%
		POSCO			9				56.5	%			35				56.5	%			35				55.2	%
		Others			7				43.5	%			27				43.5	%			29				44.8	%

 

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

The steel industry’s major demand sectors include automobiles, shipbuilding, and construction, in which steel is a key raw material. The company’s sales consist of approximately 52% domestic sales and 48% exports, where Southeast Asia, Japan and Europe accounting for a significant portion. We maintain a make-to-order production and sales system while keeping the proportion of direct sales to end-users in the domestic market at around 61% to ensure sales stability.

To effectively adapt to changing market dynamics, the Company is carrying out a comprehensive strategy to reinforce our core competitiveness, optimize the product portfolio, foster a safe working environment, and lead the transition toward decarbonization and AI. Detailed initiatives are outlined below.

With a strategy that fuels innovation across all areas, we are strengthening our fundamental competitiveness. Our efforts include technology-driven cost reduction and enhanced robustness of facilities that directly impact product quality. Additionally, to proactively respond to shifts in demand industries, our domestic and overseas operations are being realigned to focus on premium steel. Furthermore, we are bolstering productivity and efficiency through facility automation and business process innovations.

 

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POSCO is readjusting its product portfolio to focus on strategic products in order to address evolving trends in steel-consuming industries. We are downsizing facilities for low-profit commodity products while aggressively investing in production lines for high-value-add products. Furthermore, our R&D organizations will be reorganized around these strategic priorities. In parallel, we are upgrading our regional portfolio strategy to optimize global competitiveness.

Safety is our top priority and a core value of our corporate culture. We are reinforcing safety by identifying potential hazards in the workplace and ensuring compliance to safety standards, while also developing safety solutions utilizing AI technologies.

We are strategically spearheading decarbonization and AI transformation. Our organizational capabilities are focused on ensuring stable operation of the Electric Arc Furnace (EAF), which is slated for full-scale operation this year. In alignment with national greenhouse gas (GHG) reduction targets, we are making thorough, company-wide efforts to commercialize HyREX (Hydrogen Reduction Ironmaking) technology and to secure a stable supply of low-carbon fuel and raw materials. Furthermore, to build the ‘POSCO-style AI Steelworks,’ we are expanding investments and fostering specialized talent as we automate high-risk, low-efficiency manual tasks and scale up the Intelligent Factory model plants.

Even though POSCO is an unlisted company and therefore does not have any obligation to establish a special committee under the board of directors, we have created an ESG committee to strengthen our external communication with interested parties. Furthermore, we have also established an audit committee to support ESG governance. As a result, the company has been named Sustainability Champion by the World Steel Association — an honor awarded to leading companies in the ESG field — for four consecutive years.

∎ POSCO STEELEON

POSCO STEELEON offers differentiated value by developing new market and technology and by providing designs and solutions in both domestic and overseas surface-treated steel market.

The surface-treated steel market is divided into general-purpose and high-end segments. Competition is fierce in the general-purpose market because product technology is standardized and the market is flooded with low-priced Chinese products. On the other hand, we believe that the market for high-end material not only generates high added value but also has potential to grow in terms of size.

Despite challenges posed by oversupply of domestic and foreign steel products and slowdown in demand industries, POSCO STEELEON is striving to secure a stable profit base and expand market share by improving the competitiveness of high valued-added products, such as aluminum coated sheets, galvanized steel sheets with high corrosion resistance, and Print/Lami color steel sheets.

 

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POSCO STEELEON is striving to strengthen its competitiveness in the high-end construction/exterior materials through research and development customized to customer needs. In addition, POSCO STEELEON is preparing to expand its overseas business; the company operates a color steel sheet production line (50,000 ton) and coated steel sheet production line (20,000 ton) in Yangon, Myanmar, securing a bridgehead in Southeast Asia, a region projected for rapid growth.

∎ POSCO M-TECH

(1) Summary of Business

POSCO M-TECH is a specialized supplier of packaging and supplementary materials for steelmaking. This includes aluminum deoxidizers, which removes oversaturated oxygen in the steelmaking process. POSCO M-TECH continuously develops packaging machines and materials for steel products. The steel packaging business has enhanced cost competitiveness by reducing packaging materials and improving quality; furthermore, the packaging equipment business is focused on developing automated equipment.

Business Areas

 

Business Areas		Major Goods and Services		Major Customer
Steel raw material business		Aluminum deoxidizer pellets, mini pellets, ingots and etc.		POSCO
Steel product packaging business		Steel packaging service, maintenance of packaging facilities and etc.
Engineering business		Steel packaging engineering, mechanical equipment and etc.
Consignment operation business		Ferro-manganese factory and etc.

(2) Market Share

 

																						(Unit: ton)
Category		2026.Q1										2025										2024
		Sales  Volume					Market  share					Sales  Volume					Market  share					Sales  Volume					Market  share
POSCO M-TECH				10,419					45.0%					35,387					41.3%					38,284					44.3%
PJ Metal				12,725					55.0%					50,213					58.7%					48,231					55.7%
Total				23,144					100.0%					85,600					100.0%					86,515					100.0%

 

ø	The exact market share of aluminum deoxidizers cannot be estimated since total domestic production and sales volume are not tallied.

 

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B. Infrastructure [Trading]

There are 39 subsidiaries in trading segment including POSCO INTERNATIONAL.

∎ POSCO INTERNATIONAL

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

[Trading]

The industrial environment is becoming increasingly challenging as protectionism intensifies in major economies and global economic downturn continues. Nevertheless, POSCO INTERNATIONAL is pioneering new markets and businesses. By leveraging its long-accumulated knowhow and extensive overseas network, the company is strengthening the value chains of its core businesses, e.g., materials, mobility, food, while fostering future growth through its bio business.

Market Share

 

				(Unit: USD million)
Category		2026.Q1		2025.Q1		Growth Rate
All Trading Companies in Korea		219,870		159,534		37.8%
POSCO INTERNATIONAL Corp.		1,782		2,032		(12.3%)

 

ø

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

 

•

Steel/Mobility business: Through collaboration with other POSCO group affiliates, we are generating synergies to expand our business portfolio. We are in the process of establishing supply chains for the renewable energy industry and Hot Briquetted Iron (HBI) feedstock for the steelworks, while further strengthening our role in securing stable raw material supplies for rechargeable battery materials.

 

•

Motor core business: POSCO INTERNATIONAL started engaging in the electric vehicle (EV) motor core business with POSCO Mobility Solution, a company subsidiary. We plan to expand our motor core production to 7.5 million by 2030. In particular, we demonstrate first-class quality competitiveness in our production by leveraging POSCO’s high-quality non-oriented (NO) electrical steel and POSCO Mobility Solution’s proprietary stacking technology.

 

•

Palm farm in Indonesia: Through the development of the PT. BIA palm plantation in Indonesia, we have established a stable Crude Palm Oil (CPO) production system and secured profitability. We operate a sustainable palm business based on RSPO certification. Notably, in 2025, we significantly expanded our production base by completing the acquisition of PT. Sampoerna Agro (now renamed PT. Prime AgriResources), a listed Indonesian company. In the second half of the same year, we completed the construction of a refinery with annual capacity of 500,000 tons. Consequently, we have successfully integrated upstream and midstream processes to our value chain, spanning ‘seed-plantation-milling-refining,’.

 

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[Energy]

Global demand for natural gas remains strong, particularly with rising power demand from AI-driven growth of the digital industry. Asia’s surging energy demand is also boosting the oil and gas development sector. The company aims to enhance competitiveness in the energy business and ensure stable operations in a shifting market.

 

•

Myanmar Gas Field business: : In February 2021, as part of the third phase of the development project, the company began EPCIC to install a gas compression platform to produce low-pressure gas from the reservoir. Since completing construction in April 2024, the company has been producing gas since May 2024 from the new facilities. Additionally, in July 2024, we began construction on the fourth phase of the development project, designed to acquire additional reserves to sustain the current level of gas production. Phase 4 is scheduled to begin operation in 2027.

 

•

Onshore gas business in Australia: For timely implementation of the Group’s decarbonization and hydrogen business strategies and to expand its existing energy business, currently centered in Myanmar, the company acquired Senex Energy Limited in Australia. Senex Energy Limited is an energy company located in Brisbane on the east coast of Australia, that produces gas from onshore oil and gas fields in eastern Australia for domestic and overseas customers. By the end of 2025, we completed the construction of three gas processing plants, establishing a 60PJ annual production system, with efforts to continue growing our production and sales volumes.

 

•

LNG terminal & connected business: The Gwangyang LNG Terminal, Korea’s first privately operated LNG import terminal, has a storage capacity of 930,000 KL across six tanks. By the end of 2026, we will expand to build two additional units to obtain total storage capacity of 1,330,000 KL. Serving as a key facility in the LNG value chain, it plays a pivotal role in connecting upstream LNG production with the downstream gas supply to end-users. The company is pursuing phased expansion beyond Gwangyang to meet both local demand and captive demand within the business group, while actively expanding into LNG bunkering, ship commissioning, and trading businesses.

 

•

Power generation business: As the first private power generator in Korea, our Incheon LNG Combined Cycle Power Plant has been delivering reliable power supply to the Seoul metropolitan area for over 50 years. Located in Incheon’s Seo-gu district, the plant operates seven combined cycle power generators with total capacity of 3,412 MW, which accounts for about 9% of the region’s generation capacity. The power plant is a smart power generation facility, incorporating IoT and big data technologies in its operations.

 

•

Domestic onshore wind power business: In January 2015, the Sinan Green Energy acquired a business permit to run an onshore wind farm in Jaeun-myeon in Sinan-gun city of the Jeollanam-do province. We are operating 20 onshore wind power generators since their installation in 2019. With a generation capacity of 62.7 MW, this onshore wind power complex produces approximately 120,000 MWh of clean energy annually, which is equivalent to removing 49,000 tons of carbon dioxide emissions annually.

 

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•

Expansion into new business To reduce carbon emissions, the company is developing LNG-hydrogen co-firing power generation, with plans to further expand LNG and renewable energy projects both domestically and internationally.

B. Infrastructure [Construction]

There are 23 subsidiaries in construction segment including POSCO E&C.

∎ POSCO E&C

[Plant business]

POSCO E&C has established a unique position in the domestic steel plant sector with extensive experience in supplying and constructing equipment for integrated steel mills and auxiliary facilities. The company has expanded into global markets, such as India, Brazil, and Indonesia, enhancing its reputation as a global player. Recently, the company has focused on carbon-reduced steel technologies and water electrolysis projects. In power generation, POSCO E&C was the first construction company to enter the South American market in 2006 to build coal-fired and gas combined cycle power plants. The company is also expanding involvement in nuclear power projects, including large-scale plants and national projects like i-SMR. In addition, by being the first in the world to apply high-manganese steel in LNG tank construction, the company has participated in numerous domestic and overseas LNG terminal projects, e.g., Gulf MTP LNG terminal projects in Thailand. We have also built multiple plants in Pohang, Gwangyang, Argentina, and North America to produce raw materials and components for the rechargeable battery.

The company has an extensive track record in various sectors, including roads, bridges, airports, seaports, and water treatment, and continues to expand its presence in the world. Particularly in the offshore wind sector, the company is focused on signing projects and collaborating with global industry leaders to take early action to gain dominance in the market. In effect, the company aims to systematically enhance our project execution capability and take a leading position as an EPC player in the offshore wind industry.

[Construction business]

POSCO E&C has top class construction capabilities, product development capabilities, and commercialization capabilities in the field of high-rise buildings and large-scale new city development. Representatively, the company is leading the Songdo International Business City Development Project and have successfully completed high-rise/supersize landmark projects such as POSCO Tower Songdo, Busan Haeundae LCT, and Yeouido Park One. Additionally, in the fields of urban redevelopment/reconstruction and remodeling, POSCO E&C has achieved the highest number of orders in the industry, earning recognition for its brand value from consumers and successfully executing numerous projects. Recently, our offerings are differentiated to meet diverse customer needs; ‘HAUTIERE’ is our high-end residential brand that joins other premium solutions. In light of the upcoming super-aged society, the company plans to diversify its portfolio by continuously expanding into new business, such as senior residences.

 

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B. Infrastructure [Logistics and associated businesses]

There are 16 subsidiaries of logistics and etc. segment including POSCO FLOW and POSCO DX.

∎ POSCO DX

POSCO DX has both IT and operation automation technology (OT) capabilities. By converging IT and OT, the company has acquired prominence in applying this technology to manufacturing. Leveraging its proprietary AI-based platform, PosFrame, POSCO DX rolled out the Smart Factory technologies at POSCO’s steelworks and has since expanded its application into rechargeable battery material production processes as well as food & beverage manufacturing. As a result, POSCO DX is now known as a specialized provider of Smart Factory solutions. More recently, the company has been integrating AI and robotics to kick Smart Factory operations into next gear and to build the Intelligent Factory.

In addition, based on its capabilities in building fulfillment logistics systems and hubs, POSCO DX delivered projects such as POSCO’s logistics facilities, Incheon Airport’s Baggage Handling System (BHS), and Hanjin Express’s Mega Hub logistics center.

C. Rechargeable Battery Materials

Rechargeable Battery Materials segment includes businesses related to EV battery materials, such as lithium, nickel, cathode material, anode material, and recycling, and there are a total of 17 subsidiaries, including POSCO FUTURE M and POSCO Argentina.

∎ POSCO FUTURE M

[Basic Industrial Materials]

 

•

Refractory production: Refractories maintain their chemical properties and strength even at high temperatures, making them indispensable in industrial facilities, including the furnaces in steelworks and petrochemical plants. In the refractory business, POSCO FUTURE M produces refractories and installs them in blast furnaces and various plants. Recognized for its expertise in refractory installation, the company is expanding its business to plants in other fields both domestically and internationally. However, there are challenges due to overproduction by refractory companies worldwide and the flood of Chinese low-cost products entering the market. Therefore, POSCO FUTURE M is striving to secure competitiveness in the global market by achieving maximum cost competitiveness and developing high value-added products.

 

•

Lime business: The quicklime market is dominated by POSCO and Hyundai Steel, which together account for over 90% of the total quicklime used for steelmaking. POSCO FUTURE M is the largest supplier to POSCO.

 

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[Energy Materials]

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

As an integral part of POSCO Group, POSCO FUTURE M has established a full battery materials value chain, ranging from raw to active battery materials and battery recycling. It is the only company to produce graphite-based anode materials, a critical mineral predominated by China. Therefore, the company expects sales to increase in the future by supplying global automakers and battery makers that seek to decouple from China.

However, if POSCO Group’s production of raw materials, such as lithium, nickel, and graphite, declines or is delayed against the plan or if we are unable to meet the stricter Rules of Origin guidelines, we may not be able to reap all of the projected benefits.

D. Others

In Others segment, there are 24 subsidiaries in total, including POSCO HOLDINGS. POSCO HOLDINGS is focusing on investment in new growth businesses and opportunities.

 

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3. Key Products

A. Sales of Key Products (2026.Q1 )

(Unit: KRW 100 million, %)

 

Business  Segment		Item / Business Sector		Specific Use		Total Sales				Ratio
Steel		Hot-rolled Product (HR)		Steel pipe, Shipbuilding, etc.			30,634				20.5%
		Cold-rolled Product (CR)		Automobile, Home appliances, etc.			49,397				33.0%
		Stainless Steel Products		Tableware, pipes, etc.			22,546				15.1%
		Others		Plates, Wire rods, etc.			47,065				31.4%
		Gross Sum					149,642				100.0%
		Deduction of Internal Trade					(56,163)
		Sub Total					93,479
Infra-  structure		Trading		Steel, Metal			80,834				58.3%
				Chemical, Strategic Item, Energy			19,884				14.4%
				Others			10,968				7.9%
		Construction		Architecture (Domestic)			10,698				7.7%
				Plant (Domestic)			4,706				3.4%
				Others (Domestic)			344				0.2%
				Overseas Construction			1,068				0.8%
				Owned Construction			260				0.2%
				Others			1,051				0.8%
		Logistics and etc.		Others			8,773				6.3%
		Gross Sum					138,586				100.0%
		Deduction of Internal Trade					(59,443)
		Sub Total					79,143
Rechargeable  Battery  Materials		Gross Sum					9,788				100.0%
		Deduction of Internal Trade					(3,729)
		Sub Total					6,059
Others		Gross Sum					8,755				100.0%
		Deduction of Internal Trade					(8,675)
		Sub Total					80
Total Sum							178,761

 

*	Due to the organizational restructuring of POSCO E&C in December 2025, the performance of ‘Civil Engineering (Domestic)’ sector has been consolidated into the ‘Plant (Domestic)’ sector.

 

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B. Price Movement Trends of Key Products

 

				(Unit: KRW thousand/ton, KRW/kWh)
Business Segment		Products		2026.Q1		2025		2024
Steel		Hot-rolled Product (HR)		869		869		910
		Cold-rolled Product (CR)		1,054		1,068		1,144
Infrastructure (Trading)		Electric Power		131		144		160
Rechargeable Battery Materials		Refractory		966		973		1,001
		Lime		168		158		142

 

*	Construction and Logistics and associated business segments of Infrastructure are omitted because the raw materials fluctuations defy meaningful measurement. In the case of the Rechargeable Battery Material business, detailed descriptions are omitted to avoid risk of information leakage.

[Steel]

(1) Criteria for Calculation

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

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

(2) Price Changing Factors

Overall, steel prices remained flat in the first quarter of 2026 due to external uncertainties, i.e., impact of trade regulations, polarization of global markets, supply chain instability, triggered by the Middle East conflict.

[Infrastructure (Trading)]

(1) Criteria for Calculation

a) Subjects for Calculation: Price of electric power

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

(2) Price Changing Factors

- Power: Korea Gas Corporation cost, etc.

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

[Rechargeable Battery Materials]

(1) Criteria for Calculation

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

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

 

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(2) Price Changing Factors

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

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

C) Raw materials for Rechargeable Battery Materials: Subject to price fluctuations depending on the international supply of mineral resources.

4. Major Raw Materials

A. Current Status of Major Raw Materials

(Unit: KRW 100 million)

 

Business Segment

Type of  Purchase

Item

Specific Use

Purchase  Amount

Portion

Steel

Raw  Materials

Materials for Iron-making

Iron Ore for Blast Furnaces

42,682

65.0%

Sub-materials

Sub-materials for Iron-making, Steelmaking

12,465

19.0%

Stainless Steel Materials

Key Materials for STS Production

10,514

16.0%

Infra- structure

Trading

Raw  Materials

LNG

Material for Power Generation

3,399

100.0%

Construction

Raw  Materials

Ready-mixed Concrete

Construction of Structure

669

22.6%

Steel Reinforcement

Strengthening Concrete

487

16.4%

Cable

Electricity Transfer

63

2.1%

H-Beam

Structural steel for civil/ construction

119

4.0%

Others

Construction of Pipe and Structure etc.

1,625

54.9%

Logistics and etc.

Raw  Materials

Others

For other use

1,446

100.0%

Rechargeable Battery Materials

Raw  Materials

NCM and etc.

Production of cathode materials

1,159

63.6%

Graphite and etc.

Production of anode materials

75

4.1%

Limestone and etc.

Production of Lime

271

14.9%

Others

Production of refractory

316

17.4%

 

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

 

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B. Price Movement Trends of Major Raw Materials

(Unit: KRW thousand)

 

Business Segment				Category		2026.Q1		2025		2024
Steel				Iron Ore (per ton)		142		133		135
				Coal (per ton)		343		268		329
				Scrap Iron (per ton)		515		485		505
				Nickel (per ton)		25,378		21,559		22,934
Infrastructure		Trading		LNG (per ton)		916		944		1,058
		Construction		Ready-mixed Concrete (per m3)		88		88		90
				Steel Pile (per m)		1.1		1.1		1.1
				Steel Reinforcement (per kg)		0.9		0.9		0.9
				Cable (per m)		1.3		1.2		1.0
Rechargeable Battery Materials				Refractory (per ton)		568		631		443
				Limestone (per ton)		24		25		25

 

*	Infrastructure (Logistics and associated businesses) and Others segment are omitted because the raw materials fluctuations defy meaningful measurement. In Rechargeable Battery Materials business, detailed descriptions are omitted to avoid risk of information leakage.

[Steel]

(1) Iron Ore:

Prices rose 1% QoQ to U$97/ton in Q1 of 2026, triggered by CMRG’s expanded trade restrictions imposed on BHP iron ore and oil prices pushed up by the U.S.-Iran conflict.

 

												(Unit: U$/ton)
’26.Q1		’25.Q4		’25.Q3		’25.Q2		’25.Q1		’24.Q4		’24.Q3		’24.Q2		’24.Q1
97		96		92		89		96		94		89		101		113

 

(2) Coal:

Prices rose 17% QoQ to U$235/ton in Q1 of 2026 due to tight supply spurred by the rainy season in eastern Australia and production setbacks at key hard coking coal mines.

 

												(Unit: U$/ton)
’26.Q1		’25.Q4		’25.Q3		’25.Q2		’25.Q1		’24.Q4		’24.Q3		’24.Q2		’24.Q1
235		200		184		184		185		203		211		242		308

 

18

(3) Scrap:

Scrap prices increased by 2% QoQ to U$352/ton in Q1 of 2026, driven by steady demand from steel producers in Southwest Asia, particularly India.

 

												(Unit: U$/ton)
’26.Q1		’25.Q4		’25.Q3		’25.Q2		’25.Q1		’24.Q4		’24.Q3		’24.Q2		’24.Q1
352		344		340		337		342		350		364		376		392

 

(4) Nickel:

Prices rose 17% to U$17,356/ton in Q1 of 2026 triggered by the Indonesian government’s policy to reduce nickel ore production, in addition to rising costs and unstable supply caused by the US-Iran conflict.

 

																								(Unit: U$/lb, U$/ton)
’26.Q1				’25.Q4				’25.Q3				’25.Q2				’25.Q1				’24.Q4				’24.Q3				’24.Q2				’24.Q1
	7.87				6.75				6.81				6.88				7.06				7.27				7.37				8.35				7.53
	17,356				14,892				15,014				15,171				15,571				16,038				16,259				18,415				16,589

 

*	LME: London Metal Exchange

[Infrastructure]

(1) Criteria for Calculation

 

Business Sector		Products		Criteria for Calculation		Price Changing Factors
Trading		LNG		Average purchase price and LNG direct purchase price of Korea Gas Corporation		Cost of Korea Gas Corporation (cost consists of introduction cost, supply cost, etc. and is affected by crude oil, exchange rate, etc.)
Construction		Ready-mixed Concrete		Standard 25-210-15		-
		Rebar		SD400 10mm		Higher raw material (scrap) price
		H-Beam		SM355A 300*300*10*15 11m		Price hike due to higher domestic demand
		Cable		TFR-3, 0.6/1KV, 2.5SQ, 2C		Higher raw material (electric copper) price

[Rechargeable Battery Materials]

 

(1)	Criteria for Calculation

 

•

Refractory and lime: Purchase prices including freight costs

 

(2)	Price Changing Factors

 

a)

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

 

b)

Limestone: Raw material price fluctuation is not extreme, and there are slight variations depending on the freight cost

 

c)

Rechargeable Battery Materials: Price trends are not disclosed considering concerns about information leakage

 

19

5. Production and Facilities

A. Production Capacity

[Steel]

∎ POSCO

(Unit: thousand ton)

 

Business Area		Products		2026.Q1		2025		2024
Steel		Crude Steel		9,816		39,810		40,461

∎ POSCO STEELEON

(Unit: thousand ton)

 

Business Area		Products		Plant		2026.Q1		2025		2024
Steel		Galvanized / Color- coated Steel		Pohang		247		1,000		1,000
				Myanmar		17		70		70
Total						264		1,070		1,070

∎ POSCO M-TECH

(Unit: ton)

 

Business Area		Products		2026.Q1		2025		2024
Raw materials for steel production		Deoxidizer		8,968		41,005		39,058

[Infrastructure (Trading)]

∎ POSCO INTERNATIONAL

(Unit: MW)

 

Business Area		Products				2026.Q1		2025		2024
Power Generation		Electric Power		Incheon		3,412		3,412		3,412

[Rechargeable Battery Materials]

∎ POSCO FUTURE M

(Unit: ton)

 

Business Area		Products		Place of Business		2026.Q1		2025		2024
Refractory		Brick and etc.		Pohang		28,741		116,560		116,560
LIME		Quicklime		Pohang		270,000		1,095,000		1,095,000
				Gwangyang		270,000		1,095,000		1,095,000
Total						568,741		2,306,560		2,306,560

 

*	In the case of the Rechargeable Battery Materials business, detailed notation is omitted in consideration of technology and information leakage concerns.

 

20

B. Production Result and Capacity Utilization Rate

[Steel]

(1) Production

(Unit: thousand ton)

 

Products				2026.Q1		2025		2024
Crude Steel				9,770		38,643		39,281
Products		Hot-Rolled Steel		2,648		10,724		10,172
		Plate		1,626		6,365		6,636
		Wire Rod		406		1,594		2,131
		Pickled-Oiled Steel		706		2,725		2,713
		Cold-Rolled Products		1,854		7,365		7,498
		Coated Steel		1,698		7,164		7,543
		Electrical Steel		266		1,084		998
		Stainless Steel		657		3,098		3,333
		Others		493		1,525		1,696
		Total		10,354		41,644		42,720

 

*	The amount of products is the aggregate amount of POSCO’s production and production of POSCO’s subsidiaries,

which may include interested parties’ transactions.

(2) Capacity Utilization Rate (2026.Q1)

(Unit: thousand ton, %)

 

Company				Capacity				Production				Utilization Rate
Crude Steel  Production		POSCO			9,816				8,819				89.8	%
		PT. Krakatau POSCO			705				716				101.5	%
		POSCO (Zhangjiagang) Stainless   Steel Co., Ltd.			275				126				45.7	%
		POSCO Yamato Vina Steel Joint Stock   Company			138				109				79.5	%
Total					10,934				9,770				89.4	%

[Infrastructure (Trading)]

Due to the nature of the business, it is difficult to measure production performance and operating rates for Infrastructure (Construction), and Infrastructure (Logistics and associated businesses) segments, therefore, the information is omitted in this part.

∎ POSCO INTERNATIONAL

(1) Production Result

 

21

(Unit: GWh)

 

Business Area		Products		2026.Q1		2025		2024
Power Generation		Electric Power   (Incheon Power Plant)		2,777		10,529		12,193

(2) Capacity Utilization Rate (2026.Q1)

(Unit: hour, %)

 

Business Area		Production Base		2026.Q1  Capacity		2026.Q1  Production		Utilization Rate
Power Generation		Incheon Power Plant		2,160		1,249		57.85%

[Rechargeable Battery Materials]

∎ POSCO FUTURE M

(1) Production Result

(Unit: ton)

 

Business Area		Products		Place of Business		2026.Q1		2025		2024
Refractory		Brick and etc.		Pohang		18,045		79,417		80,191
LIME		Quicklime		Pohang		284,522		1,088,517		1,055,911
				Gwangyang		308,828		1,187,103		1,216,072
Total						611,395		2,355,037		2,352,174

 

*	As coke oven gas (COG) plant is operated under a simple consignment arrangement for POSCO facilities, the information is omitted.

*	In the case of the Rechargeable Battery Material business, detailed descriptions are omitted to avoid risk of information leakage.

(2) Capacity Utilization Rate (2026.Q1)

(Unit: ton)

 

Business Area		Capacity		Production		Utilization Rate
Refractory Factory		28,741		18,045		63%
Quicklime Factory (Pohang)		270,000		284,522		105%
Quicklime Factory (Gwangyang)		270,000		308,828		96%
Total		568,741		611,395		-

 

*	Coke oven gas (COG) plant is operated under a simple consignment arrangement for POSCO facilities, the information is omitted.

*	In the case of the Rechargeable Battery Materia business, detailed descriptions are omitted to avoid risk of information leakage.

 

22

C. Production Facilities

(1) The current status of production facilities(2026.Q1)

[Land]

(Unit: KRW million)

 

Business Segment				Beginning  Book Balance		Increase		Decrease		Depreciation		Ending Book Balance
Steel				2,004,373		421,867		-		-		2,426,240
Infrastructure		Trading		776,528		274		(354,077)		-		422,725
		Construction		334,781		36,088		(1,812)		-		369,057
		Logistics and etc.		59,555		1,083		-		-		60,638
Rechargeable Battery Materials				248,660		1,379		-		-		250,039
Others				262,489		1,004		(2,411)		-		261,082

[Buildings]

(Unit: KRW million)

 

Business Segment				Beginning  Book Balance		Increase		Decrease		Depreciation		Ending Book Balance
Steel				3,303,256		364,903		(71)		(88,622)		3,579,466
Infrastructure		Trading		627,798		31,149		(271,901)		(6,254)		380,792
		Construction		78,290		16,304		(9,777)		(1,190)		83,627
		Logistics and etc.		113,363		4,868		(291)		(3,009)		114,931
Rechargeable Battery Materials				1,556,550		16,679		(290)		(48)		1,572,891
Others				114,583		4,760		(5,561)		(2,574)		111,208

[Structures]

(Unit: KRW million)

 

Business Segment				Beginning  Book Balance		Increase		Decrease		Depreciation		Ending Book Balance
Steel				2,773,749		997,012		(4,316)		(67,254)		3,699,191
Infrastructure		Trading		1,019,221		1,082		(885,900)		(13,460)		120,943
		Construction		37,792		5,991		(200)		(1,786)		41,797
		Logistics and etc.		81,046		1,086		-		(2,426)		79,706
Rechargeable Battery Materials				364,583		43,800		-		(1,070)		407,313
Others				13,982		421		(460)		(112)		13,831

 

23

[Machinery]

(Unit: KRW million)

 

Business Segment				Beginning  Book Balance		Increase		Decrease		Depreciation		Ending Book Balance
Steel				14,437,095		2,433,202		(78,783)		(554,621)		16,236,893
Infrastructure		Trading		1,081,085		6,925		(2,134,929)		(26,560)		(1,073,479)
		Construction		4,758		463		(19)		(419)		4,783
		Logistics and etc.		202,628		17,087		(271)		(20,594)		198,850
Rechargeable Battery Materials				2,456,276		179,134		(270)		(6,628)		2,628,512
Others				23,485		3,850		-		(4,211)		23,124

[Vehicles]

(Unit: KRW million)

 

Business Segment				Beginning  Book Balance		Increase		Decrease		Depreciation		Ending Book Balance
Steel				55,806		4,890		(1,411)		(8,092)		51,193
Infrastructure		Trading		30,807		1,519		(2,186)		(1,918)		28,222
		Construction		4,215		1,061		(586)		(448)		4,242
		Logistics and etc.		374		1,822		(239)		(86)		1,871
Rechargeable Battery Materials				9,382		1,319		(239)		(83)		10,379
Others				31		269		(2)		(272)		26

[Tools and Fixtures]

(Unit: KRW million)

 

Business Segment				Beginning  Book Balance		Increase		Decrease		Depreciation		Ending Book Balance
Steel				61,868		11,988		(2,614)		(10,154)		61,088
Infrastructure		Trading		21,683		3,081		-		(2,426)		22,338
		Construction		1,436		163		(69)		(173)		1,357
		Logistics and etc.		5,567		1,147		-		(655)		6,059
Rechargeable Battery Materials				27,670		1,071		(1,779)		(610)		26,352
Others				32		-		-		-		32

 

24

[Equipment]

(Unit: KRW million)

 

Business Segment				Beginning  Book Balance		Increase		Decrease		Depreciation		Ending Book Balance
Steel				114,254		15,384		(1,909)		(16,146)		111,583
Infrastructure		Trading		28,908		3,105		(896)		(3,052)		28,065
		Construction		5,739		2,133		(530)		(1,309)		6,033
		Logistics and etc.		13,289		928		(30)		(185)		14,002
Rechargeable Battery Materials				38,793		1,017		(30)		(995)		38,785
Others				18,185		349		-		(728)		17,806

[Financial Lease Assets]

(Unit: KRW million)

 

Business Segment				Beginning  Book Balance		Increase		Decrease		Depreciation		Ending Book Balance
Steel				107,543		44,100		(14,031)		(35,227)		102,385
Infrastructure		Trading		816,828		77,697		(14,860)		(20,748)		858,917
		Construction		58,863		23,787		(19,327)		(9,071)		54,252
		Logistics and etc.		269,427		646		(1,337)		16,082		284,818
Rechargeable Battery Materials				103,757		730		(1,336)		1,719		104,870
Others				17,909		7,958		(2,802)		(5,604)		17,461

[Biological Assets]

(Unit: KRW million)

 

Business Segment				Beginning  Book Balance		Increase		Decrease		Depreciation		Ending Book Balance
Steel				-		-		-		-		-
Infrastructure		Trading		362,871		17,039		(764)		(7,890)		371,256
		Construction		-		-		-		-		-
		Logistics and etc.		-		-		-		-		-
Rechargeable Battery Materials				-		-		-		-		-
Others				-		-		-		-		-

 

25

[Assets under Construction]

 

										(Unit: KRW million)
Business Segment				Beginning  Book Balance		Increase		Decrease		Depreciation		Ending Book Balance
Steel				1,796,458		501,298		(426,188)		-		1,871,568
Infrastructure		Trading		955,410		109,815		(67,682)		-		997,543
		Construction		5,141		6,326		(837)		-		10,630
		Logistics and etc.		48,897		1,054		-		-		49,951
Rechargeable Battery Materials				4,832,415		450,744		-		-		5,283,159
Others				503,336		8,026		(30)		-		511,332

(2) New Facility Establishment, Purchase, Etc.

a) Investments under Construction

 

•

The total duration and investment amount of individual projects with investments in excess of 100 billion KRW have been aggregated on a simple sum basis.

[Steel]

 

								(Unit: KRW 100 million)
Date				Project		Total  Investment		Invested   Amount		Amount to be  Invested
Expansion/ Establishment		October 2020 ~ February 2030		Revamping of Pohang Coke Oven No.3 among others		60,945		17,480		43,465

[Infrastructure]

 

								(Unit: KRW 100 million)
Date				Project		Total  Investment		Invested   Amount		Amount to be  Invested
Expansion/ Establishment		May 2022 ~ June 2027		Gwangyang LNG terminal, etc.		20,039		9,372		10,307

[Rechargeable Battery Materials]

 

								(Unit: KRW 100 million)
Date				Project		Total  Investment		Invested   Amount		Amount to be  Invested
Expansion/ Establishment		March 2020 ~ July 2027		Cathode/Anode material factory, lithium commercialization plant, etc.		70,477		51,228		19,249

 

26

6. Product Sales

[Steel]

(Unit: KRW 100 million)   

 

Items				2026.Q1		2025		2024
Domestic		Hot-Rolled Products		12,749		50,136		52,703
		Cold-Rolled Products		11,513		45,883		51,263
		Stainless Steel		7,114		26,422		29,493
		Others		24,117		91,676		95,180
Overseas		Hot-Rolled Products		17,885		72,135		72,818
		Cold-Rolled Products		37,885		144,832		152,461
		Stainless Steel		15,432		71,055		75,395
		Others		22,947		91,993		92,696
Total		Gross Sum		149,642		594,132		622,009
		Internal Transaction		(56,163)		(221,283)		(230,968)
		Total		93,479		372,849		391,041

[Infrastructure]

(Unit: KRW 100 million)   

 

Business Area		Items				2026.Q1				2025				2024
Trading		Domestic Trading		Merchandise			8,585				34,233				45,670
				Product			6,743				27,683				32,545
				Others			185				846				1,412
		Overseas Trading		Merchandise			57,343				116,886				118,643
				Product			119				1,132				3,881
				Others			1,267				243				144
		Trades among the 3 countries					37,444				240,748				226,736
Construction		Domestic Construction		Building			10,698				42,872				49,469
				Plant			4,706				20,378				31,427
				Others			344				1,807				2,724
		Overseas					1,068				3,905				8,777
		Own Construction					1,311				6,239				5,899
Logistics and etc.		Others					8,773				33,063				41,393
Total		Gross Sum					138,586				530,035				568,720
		Deduction of Internal Transaction					(59,443	)			(233,353	)			(261,735	)
		Total					79,143				296,682				306,985

 

27

[Rechargeable Battery Materials]

(Unit: KRW 100 million)   

Items		2026.Q1		2025		2024
Gross Sum		9,788		33,384		38,299
Deduction of Internal Transaction		(3,729)		(12,421)		(10,174)
Total		6,059		20,963		28,125

[Others]

(Unit: KRW 100 million)   

Items		2026.Q1		2025		2024
Gross Sum		8,755		15,000		21,112
Deduction of Internal Transaction		(8,674)		(14,545)		(20,381)
Total		80		455		730

 

*	Domestic and overseas categorized by the sales area.

*	Sales of POSCO INTERNATIONAL’s foreign branches are included in ‘trade among the 3 countries’ under Infrastructure (Trading) Segment.

7. Derivatives

POSCO HOLDINGS has signed currency swap contracts to hedge against FX risks on foreign currency borrowings. As of March 31, 2026, the Company has currency swap contracts of USD 400 million (due to mature in May 2030) and USD 300 million (due to mature in May 2035), which were measured at fair value. The valuation gain on these currency swaps, as reflected in the Company’s financial statements as of March 31, 2026, amounted to KRW 77,689 million.

8. Significant Contracts

[Steel]

 

(1)	POSCO’s equity investment in an integrated steel mill JV in Odisha, India

 

a)	Contract Counterparty: Saffron Resources Private Limited

 

b)	Transaction amount: USD 1,093 million (Total contribution)

 

c)	Purpose: Equity investment to jointly construct an integrated steel mill in Odisha, India

 

d)	Contract execution: April 2026 (Board resolution date)

 

e)	Payment method: Cash payment

 

ø	Disclosure date: February 24, 2026

 

28

•

Decision on Acquisition of Shares or Investment Certificates of Other Corporations (POSCO’s Material Business Matters to report)

 

(2)	POSCO’s equity investment to build an electric arc furnace steel mill in Louisiana, USA

 

a)	Contract Counterparty: POS-Louisiana Inc. (tentative)

 

b)	Transaction amount: USD 582 million (Total contribution)

 

c)	Purpose: Equity investment to jointly construct an electric arc furnace steel mill in Louisiana, USA

 

d)	Contract execution: December 2025 (Board resolution date)

 

e)	Payment method: Cash payment

 

ø	Disclosure date: December 16, 2025

 

•

Decision on Acquisition of Shares or Investment Certificates of Other Corporations (POSCO’s Material Business Matters to report)

 

(3)	Price Movement Trend of Major Raw Materials

 

(1)	Transfer contract of steel business related shares or investment certificates of POSCO HOLDINGS (2024)

 

a)	Contract Counterparty: POSCO

 

b)	Transaction amount: KRW 0.6588 trillion

 

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

 

d)	Contract period: December 2024

 

e)	Payment method: Cash payment

 

f)	Company subject to transfer: POSCO Maharashtra Steel Private Limited, POSCO India Processing Center Private Limited, POSCO India Pune Processing Center Private Limited, POSCO ASSAN TST STEEL INDUSTRY Inc

 

29

[Infrastructure (Trading)] 

∎ POSCO INTERNATIONAL

(1) Myanmar gas field

 

Contract		Date		Remarks
Investment on   the 3rd stage   development of   A-1 /A-3 block   in Myanmar gas   field		September  2020		1) Investment amount: KRW 365,786,302,000   2) Development period: September 1, 2019 ~ December 31, 2024   3) Schedule : Installation Completion of low-pressure gas compression platform and commenced operation in 2024   4) Other Information   - Location: North-west offshore, Myanmar   - This investment is the 3rd stage of development, which consists of 3 stages in Myanmar gas field development. The purpose of investment is to maintain current gas production level stably by installing low-pressure gas compression platform.   - In the first quarter of 2021, the design and production of the equipment for this work was started, and it is planned to start operation in 2024. The “ (2) Development period” above is the period including the basic design progress period, September 2019 to September 2020.   - Participation rate of each company in gas production and offshore pipeline transportation business   . POSCO INTERNATIONAL Corporation : 51.0%   . ONGC VIDESH(Oil and Natural Gas Corporation Videsh Limited) : 17.0%   . MOGE(Myanmar Oil and Gas Enterprise): 15.0%   . GAIL (India) Limited : 8.5%   . KOGAS(Korea Gas Corporation): 8.5%   - Investment size of USD 315,170 thousand, applying the exchange rate of 1USD=1,160.60 KRW, which is the date of the BOD resolution.   - Detailed information and future timeline on this resource development investment is subject to change.   ø POSCO INTERNATIONAL disclosure date : September 22, 2020 (Decision on natural resources investment)
Investment on   the 4th stage   development of   A-1 /A-3 block   in Myanmar gas   field		June  2024		1) Investment amount: KRW 926,302,200,195   2) Development period: July 1, 2024 ~ June 30, 2027   3) Future Plan : POSCO INTERNATIONAL plans to drill three additional production wells in two deep-sea fields and one additional production well in a shallow-sea field. Furthermore, it will install processing facilities on subsea pipelines and existing platform.   4) Other Information   - Location: North-west offshore, Myanmar   - This investment is the 4th stage of development of the existing Myanmar gas field development. The purpose of investment is to drill three additional production wells in two deep-sea fields and one additional production well in a shallow-sea field and to install processing facilities on subsea pipelines and existing platform.   - With its commencement of development in July 2024, the gas production expected to begin in the third quarter of 2027.   - Participation rate of each company in gas production and offshore pipeline transportation business   . POSCO INTERNATIONAL Corporation : 51.0%   . KOGAS(Korea Gas Corporation): 8.5%   . ONGC VIDESH(Oil and Natural Gas Corporation Videsh Limited) : 17.0%   . MOGE(Myanmar Oil and Gas Enterprise): 15.0%   . GAIL (India) Limited : 8.5%   - Investment size of USD 667 million, applying the exchange rate of June 25, 2024   (1USD=1,387.50 KRW).   - Detailed information and future timeline on this resource development investment is subject to change.   ø POSCO INTERNATIONAL disclosure date : June 27, 2024 (Decision on natural resources investment)

 

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(2) Acquisition of Shares in PT.PAR, a Palm Oil Company in Indonesia

 

a)

Purpose: To seek greater synergy in the Indonesian palm business

 

b)

Payment method: Cash

 

c)

Contract execution: November 2025 (Board resolution date)

 

d)

Transaction amount: KRW 1,244,727,212,414

 

e)

Number of shares held: 1,794,889,157

 

f)

Shareholding ratio: 98.7%

 

ø

POSCO INTERNATIONAL disclosure date: February 23, 2026

 

-

Decision on Acquisition of Shares or Investment Certificates of Other Corporations (Material Business Matters of Subsidiary Company)

9. Research and Development

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

 

										(Unit: No. of Entities)
Steel		Infrastructure						Rechargeable  Battery Materials		Others		Total
		Trading		Construction		Logistics & etc.
37		11		10		3		4		10		75

B. R&D Expenses in 2026.Q1    

 

																						(Unit: KRW million)
Category		Business Segment
		Steel				Infrastructure												Rechargeable Battery Materials				Others				Total
						Trading				Construction				Logistics and etc.
Selling and Administrative Cost			4,122				650				1,131				4,202				13,625				28,150				51,880
Manufacturing Cost			86,169				43				53				-				22				-				86,287
R&D Cost (Intangible Assets)			9,669				-				153				151				2,200				40				12,213
Total*			99,960				693				1,337				4,353				15,847				28,190				150,380
Government Subsidy			-								50				-				-				-				50
R&D/Sales Ratio (%)			1.07	%			0.01	%			0.09	%			4.54	%			2.55	%			347.04	%			0.86	%

 

*	Total includes government subsidy.

 

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III. Financial Statements

1. Consolidated Financial Statements

A. Summary

    (Unit: KRW million)

 

Account		2026.Q1				2025				2024
		As of March 31, 2026				As of December 31, 2025				As of December 31, 2024
[Total current assets]			44,826,768				43,483,869				44,029,923
Cash and cash equivalents			7,069,783				7,049,800				6,767,898
Other receivables, net			2,111,273				1,920,685				2,261,323
Other short-term financial assets			8,029,082				8,778,584				8,499,389
Trade accounts and notes receivable, net			12,264,532				11,197,974				10,821,619
Inventories			14,144,103				13,624,433				14,143,500
Other current assets			1,207,995				912,393				1,536,194
[Total non-current assets]			63,518,855				61,708,569				59,374,276
Other receivables, net			1,543,918				1,635,253				1,306,329
Other long-term financial assets			3,527,351				3,060,842				2,571,651
Investments in associates and joint ventures			5,611,522				4,980,153				4,738,793
Property, plant and equipment, net			42,961,735				42,292,820				39,846,828
Intangible assets, net			5,675,428				5,493,529				4,774,824
Other non-current assets			4,198,901				4,245,972				6,135,851
Total assets			108,345,623				105,192,438				103,404,199
[Total current liabilities]			23,609,050				23,131,654				22,779,719
[Total non-current liabilities]			21,343,418				19,683,093				19,174,112
Total liabilities			44,952,468				42,814,747				41,953,831

 

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Account		2026.Q1		2025		2024
[Equity attributable to owners of the controlling company]		56,793,065		55,730,185		55,394,231
Share capital		482,403		482,403		482,403
Capital surplus		1,528,595		1,685,116		1,648,894
Retained earnings		53,088,320		53,177,472		53,658,368
Other equity attributable to owners of the controlling company		1,693,747		385,194		(395,434)
[Non-controlling Interests]		6,600,090		6,647,506		6,056,137
Total equity		63,393,155		62,377,691		61,450,368
		From January 1, 2026  to March 31, 2026		From January 1, 2025  to December 31, 2025		From January 1, 2024  to December 31, 2024
Revenue		17,876,106		69,094,886		72,688,143
Operating profit		706,832		1,827,063		2,173,573
Profit		543,390		504,403		947,580
[Profit attributable to owners of the controlling company]		467,206		657,654		1,094,917
[Profit attributable to non-controlling interests]		76,184		(153,251)		(147,337)
Total comprehensive Income		1,683,953		923,026		2,110,358
[Total comprehensive income attributable to owners of the controlling company]		1,403,785		1,032,628		2,008,919
[Total comprehensive income attributable to non-controlling interests]		280,168		(109,602)		101,439
Earnings per share (KRW)		6,178		8,697		14,451
Number of Consolidated Companies		202		199		194

B. The Standards Used for Reporting the Financial Statements

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

 

33