Greetings, I represent the Finance and IR Division at POSCO Holdings. My name is Kim Seung-jun.

Thank you to the investors and analysts for joining this earnings call for Q3 2026 at POSCO Holdings. In the third quarter, resparked geopolitical tension in the Middle East led to oil price spikes, intensifying energy supply chain volatility.

US Treasury yields surpassed 5%, adding fuel to uncertain global financial markets. Despite these fluctuations, POSCO Holdings registered 19.1 trillion won in revenue and 940 billion in operating profits, recording three consecutive terms of enhanced positive performance.

In OP, that was a 15% gain over the previous quarter and 48% year-on-year. By business sector, it was steel that led the overall performance gain in Q3 across the group.

While POSCO suffered short-term spike in raw materials cost, by pushing up our price and production and sales volume in addition to cost-cutting efforts, the steel business has been able to turn around OP in four quarters to the 400 billion won range. In rechargeable battery materials, with lithium prices diving, POSCO Argentina going into regular equipment repairs and poor winter climate that is forcing reduced production volume, and PPLS observing higher feedstock costs, we recorded an operating loss this quarter.

In infrastructure, we have robust performance supported by profit gains over the previous quarter, owing to POSCO International's energy business entering boom season and POSCO E&C's plant business strengths. Next on third quarter key business activities and strategy update, please refer to text slide four.

In July, POSCO Holdings had the CEO Investor Day, where we released our triple-core strategy comprised of industrial, strategic, and energy resources. Each core is making visible and specific progress.

First, in industrial resources, we broke ground on CGL number 8 plant on September 8th. This is a 450,000 ton per year automotive hot-dip galvanized steel sheets plant.

Second, in strategic resources, aligned to our product diversification strategy, we're transitioning part of POSCO Future M's MMC production facility to LFP. Once again, the three-element battery facility is now transitioning to LFP.

At the end of the year, we'll be completing 50k tons of LFP cathode, based on which we will sign large-scale long-term supply agreements with the three key battery makers, thereby responding to the massive ESS demand. In POSCO Argentina, we completed a plant number two.

In Argentina, we will produce 23,000 tons of technical-grade LC, which will be brought to Gwangyang's POSCO Lithium Solution, where it will be refined to 25,000 tons of lithium hydroxide. After a ramp-up period, we expect to be commercially ready to begin production by the end of 2027.

Third, in the energy resources sector, to expand the gas field assets, we have acquired 100% shares in the shale gas assets in Marcellus province of Pennsylvania basin area. Going forward, POSCO Group intends to respond with flexibility to changing market conditions, and we want to be able to serve the energy industry.

Again, based on our triple-core strategy, we will be responding flexibly to changing market conditions and will continue to galvanize our growth engine for future growth. Now I'll give the floor to the IR lead to delve into our third quarter earnings.

Moving on to page 3, in Q3, consolidated revenue reached 19.1 trillion won, OP of 945 billion won and an OP margin of 4.9%. Operating profit was 707 billion in Q1, 819 in Q2, and 945 billion in Q3, increasing for three consecutive quarters.

We invested 1.6 trillion during Q3, bringing cumulative consolidated CapEx to 5.4 trillion won. At the end of the quarter, net debt declined by 4.3 trillion won Q-o-Q.

In addition to operating cash flow, we raised 2.5 trillion won through partial stake sales in POSCO International, POSCO DX, and approximately 700 billion from the sale of our stake in Woori Financial Group. The stronger won also reduced the value of our foreign currency-denominated debt, and our net debt-to-equity ratio fell to 18.4%.

Turning to business segment, the significant improvement in steel operating profit was a key driver. POSCO in particular improved its OP margin from 2.5% in Q1, 2.9% in Q2, 4.6% in Q3, generating approximately 455 billion won in operating profit.

Earnings also improved in the infrastructure segment. POSCO International recorded 24% Y-o-Y growth in operating profit, supported by contributions from Senex Energy and the Indonesian palm operations.

The RBM swung to a slight operating loss of 17 billion. POSCO Future M maintained solid earnings, driven by higher profits from basic materials and compensation for customer commitments, but our lithium subsidiaries posted losses due to falling lithium prices and a mismatch between feedstock costs and selling price.

For your reference, the Q3 results of our three lithium subsidiaries include 29 billion in inventory valuation losses resulting from lower lithium prices. Next is performance by company in detail.

Please look at page 6. POSCO's Q3 OP was up 181 billion won Q-o-Q, recording 455.1 billion won, showing a recovery.

The benefit of the stronger won had yet to be reflected in raw material costs. Meanwhile, mine safety inspections in China and disruptions in Mongolian coal supplies drove up coking coal prices, key raw material costs rose 4.4% Q-o-Q, adding to cost pressure.

We offset the increase by raising carbon steel selling prices by around 20,000 won per ton, from 962,000 to 982,000 won. Moreover, in the fourth quarter, there is a blast furnace maintenance scheduled.

Ahead of that, we increased utilization of crude steel production facilities to 90% in Q3, and logistics and other costs, which had temporarily risen due to sudden geopolitical developments, began to normalize, the resulting cost savings were a key driver of improved profitability. Now the share of domestic sales rose to 55.6%, up from 51.9% in 2025 and slightly higher in the second quarter.

Profit margins also continued to improve. Meanwhile, for your reference, the scheduled relining of Gwangyang BF number 2 in Q4 will involve extensive maintenance of the hot rolling and continuous casting facilities as well, crude steel output and sales volume are expected to decline temporarily this Q4 through Q1 of next year.

Page 7, overseas steel. Overseas steel earnings remained stable despite the reduced business scale following the sale of Zhangjiagang in April and higher raw material costs.

As for the Indonesia PTKP, it expanded sales to Southeast Asia and North America. As depreciation expenses declined due to revised estimated useful lives, earnings also improved.

In Vietnam, PY VINA increased exports to markets including Australia. Higher selling prices also boosted revenue OP.

In contrast, the OP in India declined due to seasonal downturn and mill margin squeeze from lower selling prices. Slide 8, POSCO Future M.

POSCO Future M third quarter OP grew to 82 billion won. Basic materials profits rose on strong oil price that led to higher chemical product selling prices and added volume of lime products.

With anode materials sales continuously rising, we were able to recognize liquidated damage from clients. Next is page 9 about lithium companies.

In this quarter, profits deteriorated on falling lithium and metal prices and weak FX. POSCO Argentina suffered—I'm sure you'll hear numbers from other earnings reports, but POSCO Argentina suffered unusually harsh weather climate that was cold and windy, causing poor operational conditions.

Therefore, evaporation volume was poor, and interim repairs and LP dryer equipment replacement led to temporary reduction in volume production compared to the last quarter. We have shifted to a negative balance in the third quarter.

Fourth quarter plant one production volume will rise to plan, but we're committed to uninterrupted ramp-up schedule on plant two that was completed in October. POSCO Pilbara Lithium Solution, I think you'll see that we have recorded deficits there that is noticeable.

As we've mentioned before, the hard rock lithium cost that remains high is not reflected in our selling price. Looking at market price, raw material cost remains prominent in the sales price structure.

However, compared to Q3, it is showing signs of appeasement. In particular, we have suffered much more impairment in inventory loss.

To improve profit structure by enhancing our processes, we're developing ways to treat lithium fines as means to diversify feedstock. POSCO HY Clean Metal's profits declined on metal price drop and weak FX.

Due to US export controls on black mass, raw material costs rose, resulting in a negative balance. With lithium prices continuing to fluctuate and markets remaining volatile, we intend to keep a close watch on key raw materials market prospects.

At the same time, we'll drive cost competitiveness and improve production efficiency to defend our mid to long-term profit prospects. Page 10, POSCO International.

Its operating profit grew 24% year-on-year. First, in Australia, phase production ramp-up at Senex Energy, increased gas supplies to LNG liquefaction plants contributed to improve OP.

Second, as for Indonesia's palm operations, thanks to lower unit cost from higher production at PT PAR, along with the start of commercial operations at a refining subsidiary, overall profits increased. Now page 11, POSCO E&C.

It recorded an operating profit of 48 billion won in Q3. Now revenue declined slightly due to construction work stoppages during the summer, but managing profit-focused projects helped the company remain profitable.

Now I would like to conclude the 2026 Q3 earnings presentation. We'll proceed with the Q&A.

Thank you very much.

My name is Park Hyun-wook. Thank you for this opportunity to pose a question.

Actually, I have three questions. First is about steel market prospects.

I'm sure you are writing up your next year business plan. How do you see the steel market next year and in relation to POSCO Holdings' stock price?

There's a lot of movement toward raising steel selling price, including hot-rolled products as well. I wonder if POSCO Holdings or POSCO have any plans to raise their selling price, and what is your outlook on overall steel prices?

You're using the PRS method to generate cash, but between this and when you will be making investments in lithium assets, there is some time difference, I wonder how you intend to use these proceeds. The third question is, recently lithium prices have been volatile.

At POSCO Holdings, how do you see lithium prices in the future? Those are my questions.

My name is Noh Sung-rae, POSCO Marketing Planning Office. Steel market outlook: in 2027, we believe domestic steel demand will recover moderately, but overall we will still be in a recession, but automotive will show a much clearer rise, and in shipbuilding, I think we will have more orders coming in.

In new growth business areas, there are power businesses as well as data centers, these are some of the developments that we foresee. These are some of the demands that we foresee.

There are certain strengths that we are seeing in the steel price as well as the CBAM that will go into the next phase of implementation, and so these are some of the local and overseas developments that we have to be able to predict. We will be focusing on flexibility and to be able to see these demands in advance, and we will also try to add more to our selling price in certain products such as pipes and long products that we are negotiating price for the next term.

You talked about potential rise in steel prices. Because there are disparities between some of the price increases and our contracts when they are negotiated, we will have to continue to discuss these, but we will continue to focus on what is upcoming.

We will look at market situation as well as supply volume and client circumstances to be able to adjust our selling price and to make a stable profit structure. Thank you.

To the second question, I would like to answer that. With the exception of POSCO Future M, talking about POSCO International and POSCO DX, we are using the PRS method to divest.

About 1.5 trillion won is the extra cash that we have on hand. At CEO Investor Day, we talked about monetizing through the selling of our shares at our affiliated companies, and a lot of this will be used toward reinvesting in POSCO Holdings' new growth businesses.

I think the question that we had on hand was whether we will wait until we have sold our shares at POSCO Future M to perform buyback and cancellation, but at the moment, we are in a prolonged state of devaluation, none of our values are very well assessed in the market. Whether we need to wait until we have sold all of our shares at Future M or not, to that question, I think there is no reason necessarily to wait.

For POSCO International and POSCO DX, where we've already completed the sales, I think we can use those proceeds to go ahead and progress on this plan. At POSCO Argentina, of course, there's some time difference between the proceeds that we're able to generate and when investments need to be made, but we will be making use of some of the infrastructure that is already on hand, and we will also rethink about the schedule of our investments in the United States.

Until we can make investment in our lithium, we will be looking into how to use our consolidated cash profits.

My name is Lee Jae-young. Yes, lithium price has dropped significantly, and we had initially forecast a rise in price.

We regret that, and we anticipated about 10% growth in the EV market, but that has not materialized, and we have also suffered some disparities in supply as well. Some of the mines in China is about to restart, and in other parts of the world as well, such as in Tanzania.

There's extra volume coming into the market as well as some FX advantages that have accrued to China. The prospects: today I observed that it has dropped below $13,000 per ton, and so this is a huge drop.

It's excessive, but we did have a pretty high rise recently, it may be an impact from that as well. The hard rock price is almost equal to our cost.

EV sales is not rising significantly, but volume-wise, there's about 20% that's been added. EV and PHEV are also increasing, and these are benefits that are accruing to our business.

A lot of the IBs have released their outlook prices: Bank of America, Morgan Stanley, and some of the other institutions forecast a price rise to above $15,000 per ton. Those are some positive signs.

Thank you.

Thank you very much. Next question, please.

Hello, I am Kim Yoon-sang from IM Securities. Now I would like to ask a question about lithium and steel.

Now, as it was explained in detail, recently, with regards to the lithium price drop, one of the reasons is the increased output and production. When it comes to the concentrate and its supply, of course, you said that it declined in Q3, but can we expect the hike to realize in Q4?

That's my first question. The second question is, in Q2, there were lots of positive news and information about lithium, especially by research organizations.

BNEF also said that they shifted their stance of lithium oversupply in 2027. When it comes to the factors affecting supply and demand, can we expect to see a trend where the lithium prices will be lowered step-by-step?

The last question is about the turnaround timing of lithium. I'm sure that you had your expectations of a turnaround timing.

I would like to know if there is any delay in the timing of the turnaround. When it comes to the steel, I would like to ask about the response measures to the export environment.

As for the US, the regulations are quite strict, but recently with regards to Made in Korea steel, there are also some talks that there could be additional tariffs imposed, we would like to know if that could be feasible and that could be realized. As for the US, the hot-rolled is about exceeding $1,400, in Asia exceeding $500.

Would this kind of divided market continue in the future? I would like to have your view on this issue.

Now overall, including Europe, the export environment will not become better. How do you foresee this trend in the future, especially next year?

Thank you.

Hello, I'm Lee Jae-young. Now we are working on Argentina lithium, but we are also working on the concentrate.

When it comes to the concentrate, the mill margin spread is very important. Recently the prices have dropped, but the spodumene price has dropped drastically.

Despite this drastic drop, the iron ore lithium or hard rock lithium mill margin has been slightly improved. In the first half, the raw material costs represented about 83% to 87% of the overall cost, but it has now gone down below 70%.

As for the spread accordingly, in the first half it was between $3.5 to $4, but nowadays it's brought between $4.5 and $5. Now, even though that is the case, it's not giving us any profit for the time being.

We believe that next year we believe that the spread will be further increased to $6, so that we'll be able to secure more profit. We want to secure profit that is equivalent to EBITDA level next year.

That is our goal. As for the, yes, positive views, there were a lot in the second quarter.

As for now, there are more pessimistic views that are prevailing, that is adding to a price drop. On the other hand, as for China, percentage-wise, it was 117% last year, and it has gone down to 22%, but in the Americas regions, you can see that the ESS growth is exponential.

As for the unit or embedded volume per unit has grown considerably. What I would like to say that is maybe the current price is the lowest of all.

As mentioned earlier on, we expect it to grow and increase gradually.

Hello, I am Woo Sung-min, POSCO International Trade Office. You asked a question about the US.

Now the US steel industry and the relevant associations are asking additional regulations on Korean steel to the US government, but with regards to regulatory approaches including TRQ and so forth, nothing has been confirmed as yet. Given the prices as well as demand capacity due to tariffs, it is very difficult to estimate the scope and the steps for the time being.

As for our company, we are closely collaborating with the US entity and leveraging our network to monitor the policy developments and so forth, and together with the Korean government and Korean steel associations as well. We are also engaged in further outreach vis-à-vis the US government, so that we can explain our interest for the stable supply of steel and minimize regulatory risks.

We're also monitoring and assessing the impact by product, by customer, and so forth. Now you also asked a question about the hot-rolled, and the inflationary pressure in the US are growing, and that is why the hot-rolled $1,400, we believe it is an abnormal price.

However, the import regulation measures is being strengthened by each country, we believe that the trend will stick for the time being. I hope that answered your question.

We'll take the next one.

My name is Choi Yong-hyun from KB Securities. I have a question about CBAM and its impact.

From February 2027, you will have to purchase new certifications, how will that impact your business? Secondly, about Cleveland-Cliffs, what is the progress on that partnership?

I don't think any official announcement was made this time around. Finally, on lithium, China price and US prices are showing large disparities.

With US regulations, I think ESS projects are the beneficiaries. Are we able to take some of those benefits is my question.

My name is Woo Sung-min from POSCO International Trade Office. The certification cost, we will be making provisions for that expense starting in 2027, but the cost is actually expended by the importers in Europe, we're not actually purchasing them per se.

There are some expenses and costs that are incurred, and so we will be closely monitoring how these impact each of our partners. Some provisions have to be set aside beginning in 2027, and for that, basic price is applied.

The standard emissions for Korea is lower than some of our competitions, the expense that is incurred in the process is going to also be comparatively less for us, we hope. We will closely monitor, continue to negotiate with our customers to minimize that impact.

Hello, my name is Kim Jaemin from the Investment Planning Office at POSCO. As with Hyundai Motor Group, we have been investing in the integrated mill JV in Louisiana in the United States.

This is for entry into the US market. It is also one of our many options to get into the US market.

We have been in negotiations with Cleveland-Cliffs, but on the structure of the business, as well as the partnership structure, we have not reached a consensus, and no progress has been made. This was not a prerequisite to our US market entry.

We will enter into this partnership only if it aligns with our strategies. In steel, prices are best in the United States.

Lithium prices are best in the United States, but one of the impacting factors is the price of cathodes, and cathodes is not following suit. I think in this area, price disparity between Chinese and US prices will not be maintained.

Some of the futures prices in Shanghai are also showing signs of time disparity between price rise and price fall. In the past, I think perhaps what you're asking is whether we're able to take advantage of market premium.

Previously, when you are using non-China lithium, there was some premium attached to that, but currently that is no longer true. Only 45X is available, and this is available only at the product level and not at the lithium end.

In the future, if customers have the intention to apply this not only on the product, but in the ingredients that make up the product, such as on lithium, then perhaps after 2027, because we do foresee some stronger movements toward non-China supplies, perhaps at that point, we can see some difference in price, such as a premium.

Hello, I am Kim Hyun-tae from BNK Investment & Securities. I'd like to ask a question about carbon emissions rights and trading system and carbon-related issues.

Now from next year, the carbon costs might occur, I would like to know about how much of the carbon emissions costs would be or is expected by the company next year. We are currently building the EAF, and it is currently operating, I would like to know about the utilization of the electric arc furnace, and I would like to know your target for next year.

That's a second question. The third question is, there are global efforts to reduce carbon emissions, and you decided to invest in the upstream in India.

I'm sure that you've considered a lot of factors in making that decision. Now when there's an integrated mill in India, carbon emissions on a consolidated basis would be increased, I would like to know what are your plans in responding to this issue.

Hello, I am Kim Seung-Jun from Carbon Neutrality Strategy Office. Now we are implementing a decarbonization policy to be aligned with the government's NDC, and as for the free emissions allocation, it will run out from 2027.

As for the emissions trading, it will be very much dependent on their price, we will try to incorporate that into our financial statement from 2027, and we are at the same time developing advanced technologies to reduce carbon emissions. We will make sure that we leverage all of these different elements to minimize the carbon-associated costs.

As for the electrical furnace in Gwangyang, the utilization is about 10%. The low-carbon market is not yet mature yet, we'll make sure to heed to the customers and take into consideration the government policy to go ahead with our production planning from next year.

Now as for India, we have decided to invest together with JSW, and it has a goal to achieve NDC by 2050. We will work together with JSW in further reducing carbon emissions.

There is CCUS as well as PV technologies that can be leveraged to reduce carbon emissions. By leveraging these technologies, we will achieve NDC target by 2050.

Next question, please.

Argentina's plant number two was discussed. Operational rate or production volume for 2027, do you have any target plans?

In the recent months, lithium prices have fallen. Based on current price, what is POSCO Group's lithium business revenue target and goal?

I'm sure you're drawing up some maps for next year. What is your plan for lithium?

Hello, my name is Lee Jae-young from Energy Materials Business Management Office. Argentina plant two has just begun, and we have begun ramp-up.

By July, we had reached 70%, by December, we want to reach 90% operation rate. Because of the kind of battery material that we're making, acquiring clients will not be an issue.

Based on current price, if we look at our next year business goal, the Argentina plant production volume will increase. In third quarter, we were short of 3,000, but in fourth quarter, 5,500, and next year, we are targeting 14,000, and after that, about 21,000 is what we're targeting.

Plant one in Argentina will continue to generate profits. In plant two, because we'll be ramping up in the first half, we will not be able to generate operating profit, but from third quarter, we believe we will get there.

At PPLS, as mentioned earlier, currently, given the current mill margin spread, we will not be able to generate profit, but sometime next year, we do intend to generate profit there.

Next question, please.

Hello, I'm Kwon Ji-woo from Hana Investment & Securities. Thank you for giving me the opportunities.

I think that the POSCO's standalone performance is quite good. Now you can see the cost savings of about 159 billion won.

You mentioned about the logistics costs, maintenance costs, and other costs, can you give us the breakdown of the cost savings, and would that continue in the fourth quarter as well?

I am Han, head of POSCO Finance. Yes, as you mentioned, the cost savings in Q3 affected our earnings, the largest percentage is energy cost and labor cost that were cut.

Not much coming from the logistics, and as for the maintenance cost, we saw some reduction there. As for the level of reduction, we cannot really confirm in detail, but as you mentioned, going forward in the fourth quarter, we will continue to seek savings in energy cost and maintenance costs, you can expect that we'll be able to cover processing costs in the fourth quarter.

Hello, I'm from Samsung Securities. I have two questions.

First, as already mentioned, from fourth quarter, you will be going into maintenance. What are some of your prospects on production volume after maintenance?

Plant two in Argentina will have to go through ramp-up, but from the fourth quarter in plant one, I think you will be reaching operational rate of 90% or above. At that rate, with prices kept at current level, I wonder if we can continue to look forward to profits.

If it is at $20,000, I think you mentioned that operating profit margin would be 40%. While we're not there yet, perhaps about $3,000 profit per ton is something that we can safely predict at the moment.

Could you confirm?

POSCO Marketing Strategy Office lead will answer that question.

Production and sales volume prospects after maintenance: so the impact of maintenance as well as downstream processes will have to be evaluated. 920,000 tons is the volume, and sales similar.

This will go into the first or second quarter of next year, compared to fourth quarter, about 430,000 tons of reduced production volume is anticipated. In anticipation of this maintenance schedule, by product and by client, we have made some advance adjustments to minimize impact.

After first quarter of 2027, we will normalize operation and maximize supply so that we can recover what we may have lost. I think you were assuming full operation rate.

In plant one, our capacity is 25,000 tons. At full capacity, as we mentioned at CEO Investor Day, we will meet production cost.

In fourth quarter, because we plan to produce 5,400 tons, that's about 85% compared to our original plan, the production cost will go up in comparison to what we had originally planned. Because we're not at 100% capacity, but if we assume 100% operation rate, we will definitely meet operating profit goals.

Because our operation rate is at 87% right now, we are anticipating to meet BEP. I'm afraid we will have to give you numbers below what you had anticipated.

Any additional questions? If there are no further questions, we would like to wrap up today's earnings call.

We would like to ask once again, is there any other questions from the floor? I believe that there are no more questions.

With that, we would like to wrap up POSCO Holdings' 2026 Q3 earnings call. Thank you once again for your participation.