POSCO Holdings Inc. Q1 FY2025 earnings call

• MOU with Hyundai Motor Group: Collaboration in entering US upstream Electric Arc Furnace operations and Battery Sector, including investments in key materials supply chain and joint technology development. • Restructuring: Divested 6 assets in Q1, raising KRW286.6 billion, cumulative cash from restructuring since last year KRW949.1 billion. • CapEx plan: KRW8.8 trillion allocated to steel (43%), energy materials (34%), infrastructure (17%). • ESG: Proclaimed POSCO Group Human Rights commitment and established Human Rights Management framework aligned with UNGC standards.

On a consolidated basis, Q1 revenue was KRW17.4 trillion and operating profit was KRW568 billion. By business segment: Industrial segment operating profit improved Q-o-Q, with POSCO's OP margin recovering to 3.9%. Overseas steel business showed improvement due to strong engine operations and reduced losses at China's Zhangjiagang plant. Energy materials saw POSCO Future M turn to profit, but overall operating losses were reduced by half Q-o-Q due to ramp-up of new plants and investment losses. Infrastructure segment performance remained solid.

• Energy materials expected to turn profitable by 2027 as plants stabilize. • CapEx for energy materials lower in 2025 due to completion of major facilities in 2024. • POSCO Future M may need additional capital as investment lags sales, with assessment ongoing for financing options.

• Trade barriers and protectionist measures impacting sales volume and plans. • Uncertainty in lithium prices due to tariff policies and market dynamics. • Potential investment risks in joint ventures with Hyundai Motor Group.

Q: Low performing businesses and restructuring of those businesses are ongoing. The PZSS office in China has been in red for 12 consecutive terms. Any plans to improve or liquidate?

A: Restructuring efforts ongoing, will assess situation within the year.

Q: Energy materials still have operating deficit. Projections for upcoming quarters?

A: Ramp-up stage, fixed costs and discounts for uncertified customers, expect profits from latter part of 2026, stable by 2027.

Q: About the integrated mill investment in India. Progress and impact?

A: Total investment $8 billion (KRW11 trillion), capital 50% and borrowing 50%, POSCO's annual EBITDA can support investment.

Q: Tariff barriers impact on sales. Countermeasures?

A: Sales volume likely similar to last year, need to devise diverse countermeasures but no specific conclusions yet.

Q: Lithium price projections.

A: Gradual increase expected due to EV market recovery, but tariff policies add uncertainty, six agencies predict price rise by 2028 to ~$20,000