We were established by the Government on April 1, 1968, under the Commercial Code, to manufacture and distribute steel rolled products and plates in the domestic and overseas markets. The Government owned more than 70% of our equity until 1988, when the Government reduced its ownership of our common stock to 35% through a public offering and listing our shares on the KRX KOSPI Market. In December 1998, the Government sold all of our common stock it owned directly, and The Korea Development Bank completed the sale of our shares that it owned in September 2000. The Government no longer holds any direct interest in us, and our outstanding common stock is currently held by individuals and institutions. See “Item 7. Major Shareholders and Related Party Transactions — Item 7A. Major Shareholders.” On March 1, 2022, we spun off our domestic steel production and sales business (through a vertical spin-off in accordance with Articles 530-2 through 530-12 of the Korean Commercial Code) to establish a wholly-owned subsidiary (POSCO), and we converted into a holding company (POSCO HOLDINGS INC.) within the meaning of the Monopoly Regulation and Fair Trade Act in order to more effectively promote the growth of the group’s businesses, enhance synergies among the group’s businesses and actively explore diversification opportunities in promising business areas. The registration of the Spin-off occurred on March 2, 2022. As part of the Spin-off, we amended our name from POSCO to POSCO HOLDINGS INC., and the newly created wholly-owned subsidiary was named POSCO. 28 Table of Contents Our legal and commercial name is POSCO HOLDINGS INC. Our principal executive offices are located at POSCO Center, 440 Teheran-ro, Gangnam-gu, Seoul, Korea 06194, and our telephone number is +82-2-3457-0114. The address of our English website is http://www.posco-inc.com. The SEC maintains a website (http://www.sec.gov), which contains reports, information statements and other information regarding issuers that file electronically with the SEC. Item 4.B. Business Overview The Company We are a holding company, and we operate through our consolidated subsidiaries including POSCO, one of the largest steel producers in the world. We also engage in businesses that complement our steel manufacturing operations and also carefully seek out promising investment opportunities to diversify our businesses both vertically and horizontally. One of our principal strategies is to take advantage of our holding company structure to invest in promising businesses. We have made investments in the past decade to secure new growth engines by diversifying into new businesses related to our steel operations that we believe will offer greater potential returns, as well as entering into new businesses not related to our steel operations. We have six reportable segments as follows: • Steel Segment. Our Steel Segment includes the production and sale of steel products. • Infrastructure Business. Our Infrastructure Business includes our businesses related to provision of infrastructure and related services. Such business is divided into three segments as follows: Ø Trading Segment. The Trading Segment of our Infrastructure Business consists primarily of the global trading activities, natural resources development activities and power generation activities of POSCO INTERNATIONAL. POSCO INTERNATIONAL exports and imports a wide range of steel products that are both obtained from and supplied to POSCO, as well as steel and other products from and to other suppliers and purchasers in Korea and overseas. On January 1, 2023, POSCO Energy, Korea’s largest domestic private power utility company and a provider of alternative low-carbon energy solutions, merged into POSCO INTERNATIONAL. Ø Construction Segment. The Construction Segment of our Infrastructure Business consists primarily of the planning, designing and construction of industrial plants, civil engineering projects and commercial and residential buildings, both in Korea and overseas, by POSCO E&C. Ø Logistics and Others Segment. The Logistics and Others Segment of our Infrastructure Business consists primarily of the information technology and operational technology services of POSCO DX and the integrated logistics services of POSCO FLOW. • Rechargeable Battery Materials Segment. Our Rechargeable Battery Materials Segment includes (i) the manufacturing and sale of various energy-related and other industrial materials by POSCO Future M, including cathode and anode materials for rechargeable batteries and (ii) investments made by us in production projects relating to other materials such as lithium. • Others Segment. Our Others Segment includes POSCO HOLDINGS INC. and all other entities which fall below the reporting thresholds. POSCO HOLDINGS INC. actively explores diversification opportunities in promising business areas. 29 Table of Contents The table below sets out our revenue by segment category for the periods indicated. For the Year Ended December 31, 2023 2024 2025 Segments Billions of Won % Billions of Won % Billions of Won % Steel Segment W 40,393 52.4 % W 39,104 53.3 % W 37,285 54.1 % Infrastructure Business: Trading Segment (1) 24,034 31.2 22,804 31.0 23,744 34.4 Construction Segment 8,301 10.8 7,473 10.2 5,615 8.1 Logistics and Others Segment (2) 471 0.6 422 0.6 309 0.4 Rechargeable Battery Materials Segment 3,816 5.0 2,813 3.8 2,096 3.0 Others Segment 113 0.1 73 0.1 45 0.1 Basis difference adjustments(3) (71 ) (0.1 ) 771 1.0 (108 ) (0.1 ) Total W 77,057 100.0 % W 73,459 100.0 % W 68,987 100.0 % (1) Including POSCO INTERNATIONAL. (2) Including POSCO DX and POSCO FLOW. (3) Basis difference adjustments are related to the difference in recognizing revenue and expenses of the Construction Segment of our Infrastructure Business in connection with the development and sale of certain residential real estate between the report reviewed by the chief executive officer and the consolidated financial statements. See Notes 3 and 40 to the Consolidated Financial Statements. Environmental, Social and Governance Our Environmental, Social and Governance (“ESG”) management focuses on sustainable social communities and governance enhancements that promote tangible value. These principles drive our five comprehensive ESG strategies covering the following key areas. Green Competency We strive to respond to global climate change through development of low-carbon processes, energy efficiency and low-carbon products and services, thereby reducing our environmental impact to create a future in which people and nature co-exist and thrive together. POSCO declared the 2050 Carbon Neutrality Roadmap by setting targets for a 30% carbon emissions reduction by 2035, 50% by 2040, and Net Zero emissions by 2050. Initiatives such as low carbon technology and hydrogen reduction are underway to support these goals. Responsible Value Chain We are committed to empowering our business partners to obtain the highest standards in various domains, including low carbon technology, human rights and safety, while promoting sustainability across the value chain. POSCO procures all tin, tantalum, tungsten and gold minerals from refineries in conflict-affected and high-risk areas that have obtained Responsible Minerals Assurance Process (“RMAP”) certification. POSCO Future M, a producer of rechargeable battery materials, also procures tungsten and cobalt, sourcing exclusively from smelters that have either obtained RMAP certification or are currently in the process of obtaining RMAP certifications. Employee Happiness We prioritize establishing a secure and inclusive work environment that upholds human rights, embraces diversity and empowers creative talents to lead a period of transformation. As United Nations Global Compact members, POSCO HOLDINGS INC., POSCO, POSCO INTERNATIONAL 30 Table of Contents and POSCO E&C, advocate for management based on human rights, diversity and inclusion policies. In addition, POSCO Group proclaimed a “Group Human Rights Commitment” to implement human rights management in line with global standards and to establish a more structured human rights management system at the group level. Our human rights policy covers protections for POSCO Group employees and staffs of our suppliers and labor union rights, encompassing human rights, grievance handling and victim relief. Our diversity, equality and inclusion policies prohibit all forms of discrimination, workplace harassment and sexual harassment, with training, reporting, consultation and investigation processes, as well as whistleblower protection measures that are clearly outlined. Ethics & Integrity We are committed to making our business decisions based on unwavering ethical principles by upholding the highest standards of ethics and compliance. Our efforts to enhance ethics and compliance levels are complemented by our commitment to promoting fair trade practices. For example, we established a “Clean Committee,” which is an advisory body involving external experts, to strengthen our commitment to ethical management. We conduct annual questionnaire surveys targeting employees of our suppliers and our domestic and overseas subsidiaries to assess the risk of unethical behavior, workplace harassment and human rights violations. Additional monitoring and investigation are conducted when risks are identified. New Governance for Real Value We enhance independence, expertise and diversity of the board of directors to promote real value management by safeguarding shareholder rights and ensuring transparent disclosures, with the aim of enhancing the value of the POSCO Group. A group-level ESG risk response system has been established to address internal and external risks effectively, with significant ESG-related decisions made through the board of directors. For in-depth discussions on key ESG issues, we operate the “POSCO Group ESG Council,” led by top management and the “ESG Session” involving all directors. Additional information regarding our ESG performance is provided in the POSCO Holdings Sustainability Report, available on our website. This report is not incorporated by reference into, and does not form part of, this Annual Report on Form 20-F. Steel Segment POSCO is the largest fully integrated steel producer in Korea, and one of the largest steel producers in the world, based on annual crude steel production. We, through POSCO and our other steel-producing subsidiaries, produced approximately 38.6 million tons of crude steel in 2025, a significant majority of which was produced at Pohang Works and Gwangyang Works. As of December 31, 2025, we had approximately 44.5 million tons of annual crude steel production capacity, including 39.8 million tons of production capacity in Korea. We believe Pohang Works and Gwangyang Works are two of the most technologically-advanced integrated steel facilities in the world. We manufacture and sell a diversified line of steel products, including cold rolled and hot rolled products, stainless steel products, plates, wire rods and silicon steel sheets, and we are able to meet a broad range of customer needs from manufacturing industries that consume steel, including automotive, shipbuilding, home appliance, engineering and machinery industries. POSCO M-TECH Co., Ltd., which is also included in the Steel Segment, produces aluminum deoxidizers used to remove excess oxygen during the steel manufacturing process to improve durability of steel products, and it also provides integrated steel product packaging solutions for steel production facilities. Korea is our most important market. Domestic sales accounted for 38.3% of the Steel Segment’s total revenue in 2025 and 37.2% in 2024. We believe that POSCO’s steel products 31 Table of Contents constituted approximately 46.6% of the total sales volume of such steel products sold in Korea in 2025 and approximately 46.0% in 2024. The Steel Segment’s export sales and overseas sales to customers abroad accounted for 61.7% of the Steel Segment’s total revenue in 2025 and 62.8% in 2024. The Steel Segment’s major export market is Asia, with Asia other than China and Japan accounting for 22.5%, China accounting for 19.0% and Japan accounting for 11.0% of the Steel Segment’s total steel export revenue in 2025, and Asia other than China and Japan accounting for 23.2%, China accounting for 20.7% and Japan accounting for 11.2% of the Steel Segment’s total steel export revenue in 2024. Major Products We, through POSCO and our other steel-producing subsidiaries, manufacture and sell a broad line of steel products, including the following: • cold rolled products; • hot rolled products; • stainless steel products; • plates; • wire rods; and • silicon steel sheets. The table below sets out our revenue of steel products produced by us and directly sold to external customers which are recognized as external revenue of the Steel Segment, by major steel product category for the periods indicated. Such amounts do not include steel products produced by us and sold to our consolidated sales subsidiaries (including POSCO INTERNATIONAL). For the Year Ended December 31, 2023 2024 2025 Steel Products Billions of Won % Billions of Won % Billions of Won % Cold rolled products W 11,908 29.5 % W 12,194 31.2 % W 11,919 32.0 % Hot rolled products 9,149 22.6 8,525 21.8 7,927 21.3 Stainless steel products 7,848 19.4 7,485 19.1 6,985 18.7 Plates 4,930 12.2 4,472 11.4 4,172 11.2 Wire rods 1,804 4.5 1,676 4.3 1,428 3.8 Silicon steel sheets 1,063 2.6 1,158 3.0 1,130 3.0 Sub-total 36,701 90.9 35,511 90.8 33,561 90.0 Others 3,692 9.1 3,593 9.2 3,724 10.0 Total W 40,393 100.0 % W 39,104 100.0 % W 37,285 100.0 % 32 Table of Contents The table below sets out our sales volume of the principal categories of steel products produced by us and directly sold to external customers, which are recognized as external sales volume of the Steel Segment, by major steel product category for the periods indicated. Such amounts do not include steel products produced by us and sold to our sales consolidated subsidiaries (including POSCO INTERNATIONAL). For the Year Ended December 31, 2023 2024 2025 Steel Products Thousands of Tons % Thousands of Tons % Thousands of Tons % Cold rolled products 9,780 33.9 % 10,334 35.4 % 10,529 36.4 % Hot rolled products 9,784 33.9 9,473 32.5 9,583 33.1 Stainless steel products 2,459 8.5 2,508 8.6 2,364 8.2 Plates 4,667 16.2 4,694 16.1 4,523 15.6 Wire rods 1,623 5.6 1,527 5.2 1,309 4.5 Silicon steel sheets 524 1.8 627 2.1 641 2.2 Total (1) 28,837 100.0 % 29,162 100.0 % 28,949 100.0 % (1) Not including sales volume of steel products categorized under “others.” In addition to steel products produced by us and directly sold to external customers, we engage our consolidated sales subsidiaries (including POSCO INTERNATIONAL) to sell our steel products produced by us. Our revenue from steel products produced by us and sold to our consolidated sales subsidiaries that in turn sold them to their external customers amounted to Won 9,414 billion in 2023, Won 9,452 billion in 2024 and Won 8,801 billion in 2025. Sales of such steel products by our consolidated sales subsidiaries to external customers are recognized as external revenue of the Trading Segment of our Infrastructure Business. Cold Rolled Products Cold rolled coils and further refined galvanized cold rolled products are used mainly in the automotive industry to produce car body panels. Other users include the household goods, electrical appliances, engineering and metal goods industries. Our deliveries of cold rolled products produced by us and directly sold to external customers amounted to 10,529 thousand tons in 2025, representing 36.4% of our total sales volume of principal steel products produced by us and directly sold to external customers. Cold rolled products constitute our largest product category in terms of sales volume and revenue from steel products produced by us and directly sold to external customers. We believe POSCO had a domestic market share for cold rolled products of approximately 54% in 2025. Hot Rolled Products Hot rolled coils and sheets have many different industrial applications. They are used to manufacture structural steel used in the construction of buildings, industrial pipes and tanks, and automobile chassis. Hot rolled coil is also manufactured in a wide range of widths and thicknesses as the feedstock for higher value-added products such as cold rolled products and silicon steel sheets. The largest customers of our hot rolled products are downstream steelmakers in Korea which use the products to manufacture pipes and cold rolled products. Our deliveries of hot rolled products produced by us and directly sold to external customers amounted to 9,583 thousand tons in 2025, representing 33.1% of our total sales volume of principal steel products produced by us and directly sold to external customers. Hot rolled products constitute 33 Table of Contents our second largest product category in terms of sales volume and revenue from steel products produced by us and directly sold to external customers. We believe POSCO had a domestic market share for hot rolled products of approximately 54% in 2025. Stainless Steel Products Stainless steel products are used to manufacture household goods and are also used by the chemical industry, paper mills, the aviation industry, the automotive industry, the construction industry and the food processing industry. Our deliveries of stainless steel products produced by us and directly sold to external customers amounted to 2,364 thousand tons in 2025, representing 8.2% of our total sales volume of principal steel products produced by us and directly sold to external customers. Stainless steel products constitute our third largest product category in terms of revenue from steel products produced by us and directly sold to external customers. Although sales of stainless steel products accounted for only 8.2% of total sales volume of the principal steel products produced by us and directly sold to external customers in 2025, they represented 18.7% of our total revenue from such steel products in 2025. We believe POSCO had a domestic market share for stainless steel products of approximately 52% in 2025. Plates Plates are used in shipbuilding, structural steelwork, offshore oil and gas production, power generation, mining, and the manufacture of earth-moving and mechanical handling equipment, boiler and pressure vessels and other industrial machinery. The Korean shipbuilding industry, which uses plates to manufacture chemical tankers, rigs, bulk carriers and containers, and the construction industry are our largest customers of plates. Our deliveries of plates produced by us and directly sold to external customers amounted to 4,523 thousand tons in 2025, representing 15.6% of our total sales volume of principal steel products produced by us and directly sold to external customers. We believe POSCO had a domestic market share for plates of approximately 45% in 2025. Wire Rods Wire rods are used mainly by manufacturers of wire, fasteners, nails, bolts, nuts and welding rods. Wire rods are also used in the manufacture of coil springs, tension bars and tire cords in the automotive industry. The largest customers for our wire rods are manufacturers of wire ropes and fasteners. Our deliveries of wire rods produced by us and directly sold to external customers amounted to 1,309 thousand tons in 2025, representing 4.5% of our total sales volume of principal steel products produced by us and directly sold to external customers. We believe POSCO had a domestic market share for wire rods of approximately 44% in 2025. Silicon Steel Sheets Silicon steel sheets are used mainly in the manufacture of power transformers and generators, rotating machines and electric motors. Our deliveries of silicon steel sheets produced by us and directly sold to external customers amounted to 641 thousand tons in 2025, representing 2.2% of our total sales volume of principal steel products produced by us and directly sold to external customers. 34 Table of Contents We believe POSCO had a domestic market share for silicon steel sheets of approximately 71% in 2025. Others Other products include lower value-added semi-finished products such as pig iron, billets, blooms and slab. Markets Korea is our most important market. Domestic sales represented 38.3% of the Steel Segment’s total revenue in 2025. The Steel Segment’s export sales and overseas sales to customers abroad represented 61.7% of the Steel Segment’s total revenue in 2025. Our sales strategy has been to devote our production primarily to satisfy domestic demand, while seeking export sales to utilize capacity to the full extent and to expand our international market presence. Domestic Market We primarily sell in Korea higher value-added and other finished products to end-users and semi-finished products to other steel manufacturers for further processing. Local distribution companies and sales affiliates sell finished steel products to low-volume customers. We provide service technicians for large customers and distributors in each important product area. The table below sets out our estimate of the market share of our steel products in Korea for the periods indicated based on sales volume. For the Year Ended December 31, Source 2023 2024 2025 POSCO’s sales (1) 45.5 % 46.0 % 46.6 % Other domestic steel companies’ sales 28.2 28.4 30.4 Imports 26.3 25.6 23.0 Total 100.0 % 100.0 % 100.0 % (1) POSCO’s sales volume includes steel products produced by POSCO (but not by our other subsidiaries) and sold through our consolidated sales subsidiaries as well as steel products produced by POSCO (but not by our other subsidiaries) and directly sold to external customers. Exports The Steel Segment’s export sales and overseas sales to customers abroad represented 61.7% of the Steel Segment’s total revenue in 2025, 52.5% of which was generated from exports sales and overseas sales to customers in Asian countries. The Steel Segment’s export sales and overseas sales to customers abroad in terms of such revenue decreased by 6.9% from Won 31,829 billion in 2024 to Won 29,627 billion in 2025. 35 Table of Contents The tables below set out our export sales and overseas sales to customers abroad in terms of revenue from steel products produced and sold by us (including our consolidated sales subsidiaries), by geographical market and by major product category for the periods indicated. For the Year Ended December 31, 2023 2024 2025 Region Billions of Won % Billions of Won % Billions of Won % Asia (other than China and Japan) W 7,787 24.6 % W 7,382 23.2 % W 6,662 22.5 % China 6,859 21.7 6,576 20.7 5,642 19.0 Europe 4,099 12.9 4,638 14.6 4,399 14.8 Japan 3,345 10.6 3,578 11.2 3,246 11.0 North America 2,673 8.4 2,861 9.0 2,302 7.8 Middle East 57 0.2 3 0.0 0 0.0 Others 6,838 21.6 6,792 21.3 7,376 24.9 Total W 31,658 100.0 % W 31,829 100.0 % W 29,627 100.0 % For the Year Ended December 31, 2023 2024 2025 Steel Products Billions of Won % Billions of Won % Billions of Won % Cold rolled products W 11,505 36.3 % W 12,177 38.3 % W 11,769 39.8 % Hot rolled products 6,305 19.9 6,061 19.1 5,679 19.2 Stainless steel products 6,055 19.1 5,827 18.3 5,479 18.5 Plates 3,374 10.7 3,191 10.0 1,991 6.7 Silicon steel sheets 1,066 3.4 1,316 4.1 1,343 4.5 Wire rods 879 2.8 834 2.6 722 2.4 Others 2,475 7.8 2,423 7.6 2,644 8.9 Total W 31,658 100.0 % W 31,829 100.0 % W 29,627 100.0 % We distribute our export products mostly through Korean trading companies, including POSCO INTERNATIONAL, and our overseas sales subsidiaries. Our largest export market in 2025 was Asia (other than China and Japan), which accounted for 22.5% of our export revenue from steel products produced and sold by us. The principal products exported to Asia (other than China and Japan) were cold rolled products, including continuous galvanized products. Our exports to Asia (other than China and Japan) decreased by 9.8% from Won 7,382 billion in 2024 to Won 6,662 billion in 2025 primarily reflecting a general decline in demand from the region. Our second largest export market in 2025 was China, which accounted for 19.0% of our export revenue from steel products produced and sold by us. The principal products exported to China were stainless steel products. Our exports to China decreased by 14.2% from Won 6,576 billion in 2024 to Won 5,642 billion in 2025 primarily due to a slowdown in economic activity in China. Anti-Dumping, Safeguard and Countervailing Duty Proceedings Our subsidiaries sell a significant portion of their products outside Korea as well as engage in trading activities worldwide, and, from time to time, we are involved in trade remedy proceedings in various jurisdictions. We actively participate in such proceedings to minimize adverse effects and related risks. Although trade remedy actions and regulatory scrutiny have increased in recent years, such cases have historically been limited in scope relative to our overall global sales and operations. Through our trade affairs office, we continue to closely monitor developments in trade remedy policies, including anti-dumping duties, safeguard duties, countervailing duties, quotas and tariffs, in all major markets in which we operate, and seek to mitigate related risks by adjusting supply chains, production and export arrangements and, where necessary, defend our interests. However, there can be no assurance that free trade agreements between Korea and its major trading partners 36 Table of Contents will remain unchanged, or that new or increased anti-dumping duties, safeguard duties, countervailing duties, quotas or tariffs will not be imposed on our products in the future. The occurrence of any such events, including those described below, may have a material adverse effect on our business, financial condition and results of operations. In February 2025, the President of the United States removed certain country-specific exemptions, including those applicable to the Republic of Korea, reinstating a 25% tariff on steel imports and increasing tariffs on aluminum imports to 25%, effective March 2025. In June 2025, these tariffs were further increased from 25% to 50%. U.S. tariff policies remain subject to change, and tariffs applicable to Korean-origin products have fluctuated over time and may be increased or decreased in the future. Furthermore, other countries have implemented, and may continue to implement, retaliatory tariffs or other trade restrictions in response to U.S. trade actions. For a discussion of our export sales and overseas sales to customers in North America, which includes the United States and Canada, see “Item 4. Information on the Company — Item 4.B. Business Overview — Steel Segment – Markets – Exports.” While our direct exports to customers in the United States represent a limited portion of our total sales, such measures may materially affect our downstream customers that manufacture finished products using our products in countries subject to such tariffs and export those products to the United States or other markets subject to similar trade measures. Increases in tariffs or other trade barriers applicable to products manufactured by our downstream customers may lead to higher prices, reduced competitiveness or lower end-market demand, which may in turn adversely affect demand for our products. Historically, tariffs have led to increased trade and political tensions. In response to the recent tariffs imposed by the U.S. government, various countries have implemented, or have announced plans to implement, retaliatory tariffs on goods produced in the United States. These retaliatory measures, along with the broader trend of unilateral trade actions, could trigger a cycle of trade disputes. Such political and economic tensions as a result of trade policies could reduce trade volume, investment, technological exchange and other economic activities between major international economies, resulting in a material adverse effect on global economic conditions and the stability of global financial markets. Consequently, there can be no assurance that our proactive mitigation measures will be sufficient to offset the risks of evolving trade policies. If further tariffs are imposed on a broader range of our exports or our customers’ exports, or if further retaliatory trade measures are adopted by affected countries, we or our customers may be required to adjust pricing, modify supply or sourcing arrangements or incur additional costs, any of which may have a material adverse impact on our business, financial condition and results of operations. Pricing Policy We determine the pricing of our products based on market conditions, taking into consideration production outlook of the global steel industry and global economic conditions in general. In setting prices, we take into account our costs, including those of raw materials, supply and demand in the Korean market, exchange rates, and conditions in the international steel market. Our prices can fluctuate considerably over time, depending on market conditions and other factors. The prices of our higher value-added steel products in the largest markets are determined considering the prices of similar products charged by our competitors. Raw Materials Steel Production The principal raw materials used in producing steel through the basic oxygen steelmaking method are iron ore and coal. We import all of the coal and virtually all of the iron ore that we use. In 37 Table of Contents 2025, POSCO imported approximately 49 million dry metric tons of iron ore and 24 million wet metric tons of coal. Iron ore is imported primarily from Australia, Brazil and Canada. Coal is imported primarily from Australia, Canada and the United States. We purchase a substantial portion of our iron ore and coal imports pursuant to long-term contracts. Our long-term supply contracts generally have terms of three to ten years and provide for periodic price adjustments to the then-market prices. We typically adjust the prices on a quarterly basis and maintain approximately one month of inventory of raw materials. Such price adjustments are driven by various factors, including the global economic outlook, global market prices of raw materials and steel products, supply and demand outlook of raw materials and production costs of raw materials. For both coal and iron ore, we typically agree on the purchase price with the suppliers primarily based on the spot market price periodically announced by Platts (Premium Low Vol Coking Coal, FOB Australia Index and Iron Ore 62% Fe, CFR China Index). We or the suppliers may cancel the long-term contracts only if performance under the contracts is prevented by causes beyond our or their control and these causes continue for a specified period. We also engage in exploration and production projects abroad to enhance our ability to meet the requirements for high-quality raw materials, by acquiring mining rights of raw materials or by investing in projects either as part of a consortium or through an acquisition of a minority interest. In 2025, we purchased approximately 37% of our iron ore imports and 25% of our coal imports from foreign mines in which we have made investments. Our major investments to procure supplies of coal, iron ore and nickel are primarily located in Australia, Canada, Brazil and New Caledonia. We will continue to selectively seek opportunities to enter into additional strategic relationships that would enhance our ability to meet the requirements for principal raw materials. The average market price of iron ore per dry metric ton (Iron Ore 62% Fe, CFR China Index announced by Platts) was US$120 in 2023, US$109 in 2024 and US$102 in 2025. The average market price of coal per wet metric ton (Premium Low Vol Coking Coal, FOB Australia Index announced by Platts) was US$296 in 2023, US$240 in 2024 and US$188 in 2025. We currently do not depend on any single country or supplier for our coal or iron ore. Stainless Steel Production The principal raw materials for the production of stainless steel are ferronickel, ferrochrome and stainless steel scrap. We purchase a majority of our ferronickel primarily from suppliers in Korea that procure nickel ore from New Caledonia, and the remainder primarily from leading suppliers in Indonesia. Our primary suppliers of ferrochrome are located in South Africa, India and Kazakhstan. Our stainless steel scraps are primarily supplied by domestic and overseas suppliers in Japan and Southeast Asia. Revert scraps from the Pohang Steelworks and our overseas subsidiaries are also used for our stainless steel production. The average market price of nickel per ton on the London Metal Exchange was US$21,474 in 2023, US$16,812 in 2024 and US$15,160 in 2025. Transportation In order to meet our transportation needs for iron ore and coal, we have entered into long-term contracts with shipping companies. Such contracts are performed by a fleet of dedicated vessels on a consecutive voyage basis with fully loaded cargo for each voyage. These vessels under long-term contracts transported approximately 59% of the total requirements in 2025, and the remaining approximately 41% was transported by vessels sourced through short- to medium-term contracts, depending on market conditions. We plan to continue to optimize the fleet of dedicated vessels that we use in order to cope with changes in the global shipping environment, as well as upgrade some of the existing vessels with energy-saving and eco-friendly technologies. 38 Table of Contents The Steelmaking Process POSCO’s major production facilities, Pohang Works and Gwangyang Works, produce steel by the basic oxygen steelmaking method. The stainless steel plant at Pohang Works produces stainless steel by the electric arc furnace method. Continuous casting improves product quality by imparting a homogenous structure to the steel. Pohang Works and Gwangyang Works produce all of their products through the continuous casting. Steel — Basic Oxygen Steelmaking Method First, molten pig iron is produced in a blast furnace from iron ore, which is the basic raw material used in steelmaking. Molten pig iron is then refined into molten steel in converters by blowing pure oxygen at high pressure to remove impurities. Different desired steel properties may also be obtained by regulating the chemical contents. At this point, molten steel is made into semi-finished products such as slabs, blooms or billets at the continuous casting machine. Slabs, blooms and billets are produced at different standardized sizes and shapes. Slabs, blooms and billets are semi-finished lower-margin products that we either use to produce our further processed products or sell to other steelmakers that produce further processed steel products. Slabs are processed to produce hot rolled coil products at hot strip mills or to produce plates at plate mills. Hot rolled coils are an intermediate-stage product that may either be sold to our customers as various finished products or be further processed by us or our customers into higher value-added products, such as cold rolled sheets and silicon steel sheets. Blooms and billets are processed into wire rods at wire rod mills. Stainless Steel — Electric Arc Furnace Method Stainless steel is produced from stainless steel scrap, chrome, nickel and steel scrap using an electric arc furnace. Stainless steel is then processed into higher value-added products by methods similar to those used for steel production. Stainless steel slabs are produced at a continuous casting mill. The slabs are processed at hot rolling mills into stainless steel hot coil, which can be further processed at cold strip mills to produce stainless cold rolled steel products. Steel Making Operations Located Outside Korea In order to effectively implement our strategic initiatives and to solidify our leadership position in the global steel industry, we have established various subsidiaries and joint ventures in Korea and elsewhere around the world that engage in steel production activities. China. We entered into an agreement with Shagang Group Co. to establish POSCO (Zhangjiagang) Stainless Steel Co., Ltd. (“POSCO (Zhangjiagang)”), a joint venture company in China for the manufacture and sale of stainless cold rolled steel products. POSCO HOLDINGS INC. has an 82.5% interest in the joint venture (including 23.9% interest held by POSCO China Holding Corporation). POSCO (Zhangjiagang) commenced production of stainless cold rolled steel products in December 1998. In 2025, POSCO (Zhangjiagang) had an annual production capacity of 1,100 thousand tons of stainless steel products. We resolved to sell our equity interest in POSCO (Zhangjiagang) at the meeting of the board of directors held in July 2025. See “Item 4.D. Property, Plants and Equipment — Steel Production Facilities Abroad — POSCO (Zhangjiagang).” Indonesia. We entered into an agreement with PT. Krakatau Steel (Persero) Tbk. to establish PT. KRAKATAU POSCO Co., Ltd. (“PT. KRAKATAU POSCO”), a joint venture company in Indonesia for the manufacture and sale of plates and slabs. POSCO holds a 50.0% interest in the joint venture. We completed the construction of a steel manufacturing plant in December 2013. In 2025, PT. 39 Table of Contents KRAKATAU POSCO had an annual production capacity of 3,000 thousand tons of slabs, plates and hot rolled coils. See “Item 4.D. Property, Plants and Equipment — Steel Production Facilities Abroad — PT. KRAKATAU POSCO.” Vietnam. We established POSCO YAMATO VINA STEEL JOINT STOCK COMPANY (“POSCO YAMATO VINA” and formerly known as POSCO SS VINA JOINT STOCK COMPANY), a subsidiary engaged in the manufacture and sale of shape steel and steel reinforcement products. POSCO holds a 51.0% interest in POSCO YAMATO VINA, and the plant became operational in June 2015. In 2025, POSCO YAMATO VINA had an annual production capacity of 550 thousand tons of shape steel products. See “Item 4.D. Property, Plants and Equipment — Steel Production Facilities Abroad — POSCO YAMATO VINA.” Competition Domestic Market POSCO is the largest fully integrated steel producer in Korea. In hot rolled products, where we believe POSCO had a domestic market share of approximately 54% in 2025, we face competition from Hyundai Steel Co., Ltd. and from various foreign producers, primarily from China and Japan. In cold rolled products and stainless steel products, where we believe POSCO had domestic market shares of approximately 54% and 52%, respectively, in 2025, we compete with Hyundai Steel Co., Ltd., smaller specialized domestic manufacturers and various foreign producers, primarily from China and Japan. For a discussion of domestic market shares, see “— Markets — Domestic Market.” The Government has imposed provisional anti-dumping duties on certain thick steel plates and stainless-steel plates from China. Export Markets The competitors in our export markets include all the leading steel manufacturers of the world. In the past decade, there has been a trend toward industry consolidation among our competitors, and smaller competitors in the global steel market today may become larger competitors in the future. In recent years, a slowdown in domestic demand for steel products in China resulting from slowed economic growth, combined with an expansion in steel production capacity, has led to production over-capacity in the Chinese steel industry, which in turn has led the Chinese government to pursue aggressive consolidation in the Chinese steel industry that has resulted in fewer but larger steel manufacturers that are able to compete more effectively in the global steel industry. Competition from global steel manufacturers with significant production capacity such as ArcelorMittal S.A. and Nippon Steel & Sumitomo Metal Corporation, as well as competitors from emerging markets, especially from China and India, could result in a significant increase in competition. Major competitive factors include range of products offered, quality, price, delivery performance and customer service. Our larger competitors may use their resources, which may be greater than ours, against us in a variety of ways, including by making additional acquisitions, investing more aggressively in product development and capacity and displacing demand for our export products. Various export markets currently impose tariffs on different types of steel products. Through pursuing direct investments in high-growth overseas markets and leveraging our overseas production subsidiaries, we seek to improve our ability to respond to country-specific trade regulations and market dynamics while reinforcing our global competitiveness. Infrastructure Business Trading Segment Our trading activities consist primarily of trading activities of POSCO INTERNATIONAL. POSCO INTERNATIONAL is a global trading company that primarily engages in trading of steel and raw 40 Table of Contents materials, investing in energy and mineral development projects and operating power generation facilities. It also trades textiles, agricultural commodities and other goods. POSCO INTERNATIONAL’s sales consist of third-country trading sales, export trading sales and domestic trading sales. On January 1, 2023, POSCO Energy, Korea’s largest domestic private power utility company and a provider of alternative environmentally-friendly energy solutions, merged into POSCO INTERNATIONAL. The following table sets forth a breakdown of POSCO INTERNATIONAL’s total consolidated revenue by export sales, domestic sales and third-country trades for the periods indicated: For the Year Ended December 31, Revenue Category 2023(1) 2024(1) 2025(1) (in billions of Won, except percentages) Export trading revenue W 12,462 37.8 % W 12,416 38.5 % W 11,580 35.8 % Domestic trading revenue 4,412 13.4 5,983 18.6 4,849 15.0 Third-country trades 26,269 79.6 24,611 76.3 26,191 81.0 Total revenue prior to consolidation adjustments 43,142 130.7 43,010 133.4 42,620 131.8 Consolidation adjustments (10,136 ) (30.7 ) (10,761 ) (33.4 ) (10,279 ) (31.8 ) Total revenue W 33,006 100.0 % W 32,249 100.0 % W 32,341 100.0 % (1) Including revenue from the power generation business of POSCO Energy, which merged into POSCO INTERNATIONAL on January 1, 2023. Trading Activities. POSCO INTERNATIONAL’s trading activities consist of exporting and importing a wide variety of products and commodities, including iron and steel, raw materials for steel production, non-ferrous metals, chemicals, automotive parts (including motor cores), machinery and plant equipment, electronics products, agricultural commodities and textiles. POSCO INTERNATIONAL is also engaged in third-country trade that does not involve exports from or imports to Korea. The products are obtained from and supplied to numerous suppliers and purchasers in Korea and overseas, which are procured through a global trading network comprised of overseas trading subsidiaries, branches and representative offices. Such subsidiaries and offices support POSCO INTERNATIONAL’s trading activities by locating suitable local suppliers and purchasers on behalf of customers, identifying business opportunities and providing information regarding local market conditions. In most cases, POSCO INTERNATIONAL enters into trading transactions after the underlying sale and purchase contracts have been matched, which mitigates inventory and price risks to POSCO INTERNATIONAL. POSCO INTERNATIONAL typically enters into trading transactions as a principal, and in limited cases as an import or export agent. When acting as a principal or an agent, POSCO INTERNATIONAL derives its gross trading profit from the margin between the selling price of the products and the purchase price it pays for such products. In the case of principal transactions, the selling price is recognized as sales and the purchase price is recognized as cost of sales, while only the margin is recognized as sales in the case of agency transactions in which POSCO INTERNATIONAL does not control each good or service prior to providing the goods or services to the customer (indicators of such control include (1) primary responsibility for fulfilling the promise to provide the specified good or service, (2) inventory risk and (3) discretion in establishing the price of the specified good or service). In the instances in which it acts as an arranger for a third country transaction, POSCO INTERNATIONAL derives its gross trading profit from, and recognizes as sales, the commission paid to it by the customer. The sizes of margins and commissions for POSCO INTERNATIONAL’s trading activities vary depending on a number of factors, including prevailing supply and demand conditions for the product involved, the cost of financing, insurance, storage and transport and the creditworthiness of the customer, and tends to decline as the product or market matures. 41 Table of Contents In connection with its export and import transactions, POSCO INTERNATIONAL has trade accounts and notes receivable and payable in a number of currencies, but principally in U.S. dollars. POSCO INTERNATIONAL’s exposure to fluctuations in exchange rates, including the Won/U.S. dollar exchange rate, is limited because trading transactions typically involve matched purchase and sale contracts, which result in limited settlement exposure, and because POSCO INTERNATIONAL’s contracts with domestic suppliers of products for export and with domestic purchasers of imported products are generally denominated in U.S. dollars. Although the impact of exchange rate fluctuations is substantially mitigated by such strategies, POSCO INTERNATIONAL also periodically enters into derivative contracts, primarily currency forward contracts, to further hedge its foreign exchange risks. In connection with its trading activities, POSCO INTERNATIONAL arranges insurance and product transport at the request of customers, the costs of which generally become reflected in the sales price of the relevant products, and also provides financing services to its purchasers and suppliers as necessary. In the case of trading transactions involving large-scale industrial or construction projects, POSCO INTERNATIONAL also provides necessary project planning and organizing services to its customers. Natural Resources Development Activities. POSCO INTERNATIONAL also invests in energy and mineral development projects throughout the world. In particular, POSCO INTERNATIONAL holds a 51.0% interest in a gas field project in Myanmar, where production of gas commenced in July 2013. POSCO INTERNATIONAL recognized revenue of Won 615 billion in 2023, Won 605 billion in 2024 and Won 647 billion in 2025 from the Myanmar gas field project. Natural resources development projects, while entailing higher risks than the traditional trading business, offer higher potential returns. POSCO INTERNATIONAL intends to continue to expand its operations by carefully seeking out promising energy development projects abroad. Power Generation Activities. POSCO INTERNATIONAL acquired the power generation business of POSCO Energy through its merger into POSCO INTERNATIONAL on January 1, 2023. POSCO INTERNATIONAL operates power generation facilities in Korea and Southeast Asia, including LNG combined cycle power plants. As of December 31, 2025, POSCO INTERNATIONAL’s total power generation capacity of its LNG combined cycle power plants was approximately 3,412 megawatts. As of such date, POSCO INTERNATIONAL’s total power generation capacity of its renewable solar energy facilities was approximately 15 megawatts and its onshore wind power energy facilities was approximately 63 megawatts. POSCO INTERNATIONAL also operates an LNG receiving terminal with an aggregate capacity to process approximately 6.0 million tons of LNG annually in Gwangyang as of December 31, 2025. In addition, POSCO INTERNATIONAL participates in LNG trading, LNG tank rental services and LNG ship trial operations in order to achieve maximum operational efficiency of our LNG terminal. POSCO INTERNATIONAL also engages in fuel cell facility installation and operation services, as well as selectively seeks opportunities to expand into solar, wind and other renewable energy businesses in order to become an integrated provider of energy solutions. Competition POSCO INTERNATIONAL competes principally with other Korean general trading companies that are affiliated with major domestic business groups, as well as global trading companies based in other countries. In the domestic market, competition for export transactions on behalf of domestic suppliers and import transactions on behalf of domestic purchasers was limited, as most affiliated general trading companies of large Korean business groups generally relied on affiliate transactions for the bulk of their trading business. However, in recent years, many of these Korean general trading companies have reduced their reliance on their affiliated business group and transactions carried out on behalf of their member companies and instead have generally evolved to focus on segments of the import and export markets in which they have a competitive advantage. As a result, competition among 42 Table of Contents Korean general trading companies in the area of traditional trade has become more intense. POSCO INTERNATIONAL’s principal competitors in the overseas trading markets include Korean trading companies that operate in various international markets, as well as foreign trading companies, particularly those based in Japan. As POSCO INTERNATIONAL diversifies into businesses other than traditional trading such as natural resources development, it also increasingly competes with other Korean and international companies involved in these businesses. POSCO INTERNATIONAL’s power generation business competes principally with private-sector power generation companies in Korea that are affiliated with major domestic business groups, including SK Innovation Co., Ltd. and GS EPS Co., Ltd. Construction Segment POSCO E&C is one of the leading engineering and construction companies in Korea, primarily engaged in the planning, design and construction of industrial plants and architectural works and civil engineering projects. In particular, POSCO E&C has established itself as one of the premier engineering and construction companies in Korea through: • its strong and stable customer base; and • its cutting-edge technological expertise obtained from construction of advanced integrated steel plants, as well as participation in numerous modernization and rationalization projects at our Pohang Works and Gwangyang Works. Leveraging its technical know-how and track record of building some of the leading industrial complexes in Korea, POSCO E&C has also focused on diversifying its operations into construction of high-end apartment complexes and participating in a wider range of architectural works and civil engineering projects, as well as engaging in urban planning and development projects and expanding its operations abroad. In September 2015, we completed the sale of a 38.0% interest in POSCO E&C to Public Investment Fund (“PIF”), a sovereign wealth fund in Saudi Arabia, for US$1.05 billion. In connection with the sale, POSCO E&C and PIF agreed to jointly explore additional business opportunities in Saudi Arabia, including participating in various infrastructure projects sponsored by the Saudi Arabian government. POSCO E&C also has substantial experience in the energy field obtained from the construction of various power plants for member companies of the POSCO Group, specializing primarily in engineering and construction of LNG-fired thermal power plants. In response to increasing demand from the energy industry, POSCO E&C plans to continue to target opportunities in power plant construction, especially in Asia and Africa, which it believes offers significant growth potential. Competition Competition in the construction industry is based primarily on price, reputation for quality, reliability, punctuality and financial strength of contractors. In Korea, POSCO E&C’s main competition in the construction of residential and non-residential buildings, EPC projects, urban planning and development projects and civil works projects consists of approximately ten major domestic construction companies, all of which are member companies of other large business groups in Korea and are capable of undertaking larger-scale, higher-value-added projects that offer greater potential returns. A series of measures introduced by the Government over the past few years to regulate housing prices in Korea, as well as an increasing popularity of low-bid contracts in civil works project mandates, have contributed to increased competition in the Korean construction industry in recent years. In the overseas markets, POSCO E&C faces competition from local construction companies and other major Korean construction companies with overseas operations, as well as international construction companies from other countries. 43 Table of Contents Logistics and Others Segment POSCO DX. POSCO DX provides a wide range of information technology and operational technology services. In particular, POSCO DX has expertise in providing services to address the evolving needs of manufacturing companies arising from the convergence of information technology and operational technology. POSCO DX’s information technology services primarily consist of buildout and management of information technology infrastructure, including manufacturing execution systems, supply chain management systems, and enterprise resource planning systems. POSCO DX also serves as a managed service provider for the operation of cloud data centers on behalf of its clients, and provides other smart technology services including smart CCTV and smart home solutions. POSCO DX’s operational technology services primarily relate to automation of factory equipment and manufacturing processes and provision of energy efficiency solutions. POSCO DX also provides system engineering services targeting specific areas of operational processes, including automation of logistical operations and buildout and management of pollutant monitoring systems and intelligent transportation systems. For example, POSCO DX implemented a baggage handling system that is a comprehensive logistics system that automatically classifies and transports passenger baggage to the boarding aircraft at Incheon International Airport. In addition, POSCO DX utilizes digital twin, a convergence technology that replicates a real-world object in a virtual environment, to improve decision-making and optimize processes. POSCO DX also provides industrial robot automation services ranging from consulting, design, construction and operation relating to robot applications based on software technology. POSCO FLOW. POSCO FLOW provides a wide range of integrated logistics services. It engages in the operation of central terminal systems for transportation, storage and processing of raw materials. POSCO FLOW also offers optimized logistics solutions for a wide range of products including steel products, industrial parts, grains, natural gas and construction equipment and materials. Competition. POSCO DX competes principally with system integration service providers in Korea that are affiliated with major domestic business groups, including Samsung SDS Co., Ltd., LG CNS Co., Ltd. and SK Inc. AX. POSCO FLOW competes principally with logistics service providers in Korea that are affiliated with major domestic business groups, including Hyundai Glovis Co., Ltd., Samsung SDS Co., Ltd. and LX Pantos Co., Ltd. Rechargeable Battery Materials Segment POSCO Future M POSCO Future M manufactures cathode and anode materials, which are two of the main components of rechargeable batteries. POSCO Future M sells such materials primarily to Korea’s leading electric vehicle battery manufacturers such as LG Energy Solution, Ltd., Samsung SDI Co., Ltd. and SK On Co., Ltd., as well as to their joint ventures with global automotive manufacturers. POSCO Future M also manufactures quicklime and refractories used in steel manufacturing processes and other industrial applications as well as a wide range of chemical products such as coal tar and light oil. Quicklime is a widely used chemical component in a variety of industries. In the steel industry, a major use of quicklime is to remove impurities in the basic oxygen steelmaking process. Refractories are materials that are resistant to high temperature, used predominantly as furnace linings for elevated temperature materials processing and other applications in which thermomechanical properties are critical. 44 Table of Contents The following table sets forth a breakdown of POSCO Future M’s total consolidated revenue by major product categories for the periods indicated: For the Year Ended December 31, Products 2023 2024 2025 (in billions of Won, except percentages) Energy materials (including battery materials) W 3,362 70.6 % W 2,340 63.3 % W 1,574 53.6 % Quicklime and other chemical products 857 18.0 853 23.0 859 29.2 Refractories 541 11.4 507 13.7 505 17.2 Total revenue W 4,760 100.0 % W 3,700 100.0 % W 2,938 100.0 % Competition. In the energy materials market, POSCO Future M competes with other global leading manufacturers of cathode and anode materials, including LG Chemical Co., Ltd. and Ecopro BM Co., Ltd. In its legacy business areas of refractories and lime chemicals, POSCO Future M competes principally with Chosun Refractories ENG Co., Ltd. and Korea Refractories Co., Ltd. Investments in Lithium Hydroxide and Lithium Carbonate Production Projects Through investments made by POSCO HOLDINGS INC., we engage in natural resources development and production projects for lithium hydroxide and lithium carbonate, which are key materials for the production of cathode materials. POSCO Argentina. In 2018, POSCO Argentina, a wholly owned subsidiary of POSCO HOLDINGS INC., acquired a salt lake located in Salta and Catamarca provinces of Argentina. In October 2024, POSCO Argentina completed stage one of its construction of a commercialization plant adjacent to the lake for the production of lithium hydroxide. As of December 31, 2025, the construction schedule and related costs of the project were as follows: Project Expected Completion Date Total Cost of Project Estimated Remaining Cost of Completion as of December 31, 2025 (In billions of Won) Construction of salt water lithium commercialization plant – stage two October 2026 W 1,369 W 214 Upon completion of both stages, the commercialization plant is expected to have an annual production capacity of 25 thousand tons of lithium hydroxide and 23 thousand tons of lithium carbonate. POSCO Pilbara Lithium Solution. In 2018, we acquired a 2.74% stake in PLS Group Limited (“PLS”) and secured off-taking of spodumene mineral from the Pilgangoora Project, which is located 120 kilometers from Port Hedland in Western Australia’s resource-rich Pilbara region. POSCO Pilbara Lithium Solution, a joint venture with PLS in which POSCO HOLDINGS INC. holds a 82% interest, completed construction of a commercialization plant in Yulchon industrial complex in Gwangyang for the production of lithium hydroxide in November 2024. The facility has a total annual capacity of 43 thousand tons of lithium hydroxide, comprising two plants with a capacity of 21.5 thousand tons each. Others Segment Our Others Segment includes POSCO HOLDINGS INC. and all other entities which fall below the reporting thresholds. POSCO HOLDINGS INC. actively explores diversification opportunities in promising business areas. 45 Table of Contents Insurance We maintain property insurance for our property, plant and equipment that we believe to be consistent with market practice in Korea. Government Regulations Pursuant to the Monopoly Regulation and Fair Trade Act of Korea, we, as a non-financial holding company, are required to maintain the shareholding ratio of our subsidiaries above a certain threshold (i.e., 30% in case of a public company and 50% in case of a private company) and are also required to maintain our liabilities-to-equity ratio below 200%. In addition, we may not own the shares of any Korean companies that are not our affiliates in excess of 5% of the total outstanding shares of such company (except under certain exempted cases) nor control any Korean financial institutions or insurance companies. We are also required to annually report to the Korea Fair Trade Commission whether we have complied with such restrictive requirements. In the event we breach such obligations, we will be subject to criminal penalty. Item 4.C. Organizational Structure The following table sets out the jurisdiction of incorporation and our ownership interests of our significant subsidiaries as of December 31, 2025: Name Jurisdiction of Incorporation Percentage of Ownership POSCO Korea 100.0 % POSCO INTERNATIONAL Corporation Korea 73.0 % POSCO Eco & Challenge Co., Ltd Korea 52.8 % POSCO DX Co., Ltd. Korea 65.5 % POSCO Future M Co., Ltd. Korea 58.2 % POSCO (Zhangjiagang) Stainless Steel Co., Ltd. (1) China 82.5 % (1) POSCO HOLDINGS INC. holds a 58.6% interest and POSCO-China holds a 23.9% interest. We resolved to sell our equity interest in POSCO (Zhangjiagang) Stainless Steel Co., Ltd. at the meeting of the board of directors held in July 2025. Item 4.D. Property, Plants and Equipment Overview Our consolidated subsidiaries operate various production facilities in Korea and abroad. See Note 14 to the Consolidated Financial Statements. We may increase our production capacity in the future when we increase our capacity as part of our facilities expansion or as a result of continued modernization and rationalization of our existing facilities. For a discussion of major items of our capital expenditures currently in progress, see “Item 5. Operating and Financial Review and Prospects — Item 5.B. Liquidity and Capital Resources — Liquidity — Capital Expenditures and Capital Expansion.” We are vigorous in our efforts to engage in environmentally responsible management of, and to protect the environment from damage resulting from, our operations. We also establish and monitor decarbonization targets, focusing on energy efficiency and the reduction of key environmental emissions, while operating in compliance with applicable environmental laws and permit requirements. POSCO’s levels of pollution control are higher than those mandated by Government standards. POSCO utilizes pollution control facilities to minimize air emissions, outsource wastewater treatment to licensed contractors and conduct periodic and IoT-based monitoring of emission sources in accordance with regulatory standards. POSCO also established an online environmental monitoring system with real-time feedback on pollutant levels and a forecast system of pollutant concentration in surrounding areas. In addition, POSCO undergoes periodic environmental inspections by both internal and external inspectors in accordance with ISO 14001 standards to monitor execution and 46 Table of Contents maintenance of its environmental management plan. POSCO also operates a certification program targeting its suppliers, pursuant to which they are encouraged to establish environmental management systems of their own. Steel Segment POSCO’s principal properties are Pohang Works, which is located at Youngil Bay on the southeastern coast of Korea, and Gwangyang Works, which is located in Gwangyang in the southwestern region of Korea. POSCO also maintains and operates production properties abroad, including plants operated by PT. KRAKATAU POSCO in Indonesia and POSCO YAMATO VINA in Vietnam. POSCO (Zhangjiagang), our consolidated subsidiary, also operates production properties in Zhangjiagang, China for the production of stainless steel products. For a discussion of such operations, see “Item 4. Information on the Company — Item 4.B. Business Overview — Steel Segment — Steel Making Operations Located Outside Korea.” Infrastructure Business POSCO INTERNATIONAL’s principal properties are LNG combined cycle power generation facilities located in Incheon and LNG terminal facilities located in Gwangyang. Rechargeable Battery Materials Segment POSCO Future M’s principal properties are (i) plants for the production of cathode materials located in Korea (Gwangyang and Pohang), Quebec, Canada and Tongxiang, China, (ii) plants for the production of anode materials located in Sejong and Pohang, (iii) plants for the production of quicklime located in Korea (Gwangyang and Pohang) and Banten, Indonesia, and (iv) plants for the production of refractories located in Pohang, Korea and Jiangsu Province, China. Steel Production Facilities in Korea Pohang Works Construction of Pohang Works began in 1970 and ended in 1983. Pohang Works produces a wide variety of steel products. Products produced at Pohang Works include hot rolled sheets, plates, wire rods and cold rolled sheets, as well as specialty steel products such as stainless steel sheets and silicon steel sheets. These products can also be customized to meet the specifications of our customers. Situated on a site of 8.9 million square meters at Youngil Bay on the southeastern coast of Korea, Pohang Works consists of iron-making, crude steelmaking and continuous casting and other rolling facilities. Pohang Works also has docking facilities capable of accommodating large ships for unloading raw materials, storage areas for raw materials and separate docking facilities for ships carrying products for export. Pohang Works is equipped with a highly advanced computerized production-management system allowing constant monitoring and control of the production process. Gwangyang Works Construction of Gwangyang Works began in 1985 and ended in 1992. Gwangyang Works specializes in high-volume production of a limited number of steel products. Products manufactured at Gwangyang Works include both hot and cold rolled types. Situated on a site of 13.7 million square meters reclaimed from the sea in Gwangyang in the southwestern region of Korea, Gwangyang Works is comprised of iron-making plants, steelmaking plants, continuous casting plants, hot strip mills and thin-slab hot rolling plants. The site also features docking and unloading facilities for raw materials capable of accommodating large ships for unloading raw materials, storage areas for raw materials and separate docking facilities for ships carrying products for export. 47 Table of Contents We believe Gwangyang Works is one of the most technologically-advanced integrated steel facilities in the world. Gwangyang Works has a completely automated, linear production system that enables the whole production process, from iron-making to finished products, to take place without interruption. Like Pohang Works, Gwangyang Works is equipped with a highly advanced computerized production-management system allowing constant monitoring and control of the production process. Capacity Utilization Rates The following table sets out the aggregate capacity utilization rates of Pohang Works and Gwangyang Works for the periods indicated. As of or for the Year Ended December 31, 2023 2024 2025 Crude steel production capacity for the year (million tons per year) 40.68 40.46 39.81 Actual crude steel output (million tons) 35.68 35.05 34.54 Capacity utilization rate (%) (1) 87.7% 86.6% 86.8% (1) Calculated by dividing actual crude steel output by the actual crude steel production capacity for the relevant period as determined by us. Steel Production Facilities Abroad PT. KRAKATAU POSCO The following table sets out PT. KRAKATAU POSCO’s capacity utilization rates for the periods indicated. As of or for the Year Ended December 31, 2023 2024 2025 Crude steel production capacity for the year (million tons per year) 3.00 2.97 2.95 Actual crude steel output (million tons) 3.01 2.98 2.93 Capacity utilization rate (%) (1) 100.5% 100.3% 99.4% (1) Calculated by dividing actual crude steel output by the actual crude steel production capacity for the relevant period as determined by us. POSCO (Zhangjiagang) The following table sets out POSCO (Zhangjiagang)’s capacity utilization rates for the periods indicated. As of or for the Year Ended December 31, 2023 2024 2025 Crude steel production capacity for the year (million tons per year) 1.10 1.10 1.10 Actual crude steel output (million tons) 0.84 0.77 0.72 Capacity utilization rate (%) (1) 76.3% 69.8% 65.7% (1) Calculated by dividing actual crude steel output by the actual crude steel production capacity for the relevant period as determined by us. 48 Table of Contents POSCO YAMATO VINA The following table sets out POSCO YAMATO VINA’s capacity utilization rates for the periods indicated. As of or for the Year Ended December 31, 2023 2024 2025 Crude steel production capacity for the year (million tons per year) 0.55 0.55 0.55 Actual crude steel output (million tons) 0.42 0.49 0.45 Capacity utilization rate (%) (1) 75.5% 88.2% 81.8% (1) Calculated by dividing actual crude steel output by the actual crude steel production capacity for the relevant period as determined by us.