POSCO Holdings Inc.

Marketing Strategy Office. So you asked a lot of questions. If I miss out on any of the questions, then please let me know. So first of all, as you said, in the first quarter, because of the Russia and Ukraine crisis and the global inflation, the coal and nickel prices soared. And in the dispute region, there was the explosion of the mills, so that actually impacted the supply. So that also led to price increases. And in line with that trend or situation, POSCO in the first quarter until February, we actually signed a contract on the fourth quarter of last year, and we could not actually reflect all of these price hikes. But from March, we were able to reflect them in the cost, and in the second quarter, as for the automobiles, and so forth, we have completed the price hike, price surge. And as for the electronics, we are going to, we have actually completed until for the second quarter. And as for the three shipbuilding companies, we have not finalized this yet. So this week, we're going to actually finalize the prices at a reasonable level. And as for the stainless steel business, as you may well know, The nickel prices have gone up to $100,000, and it is a record high, unprecedented. But basically, we believe that we increased actually... The increase of nickel price will... Allow us to preserve our profitability level next quarter. And next month, we believe that there should be... Compared to the one Q, in the second Q, we believe that the price will go a little bit lower, but it's not going to be as worrisome as you may think. It's not going to be a huge drop in prices in the second Q. So regarding the third question, I think it was about holdings subsidiary and the grandson company and the potential. There are grandparent companies that have high potential. If they become subsidiaries, would that not boost the enterprise value of Cisco Holdings? And that was the question. Another question was, do we have any plans to do that going forward? Actually, the reason we transitioned to a holding company is because we wanted to have a fair assessment of our enterprise value by the market. And that is why the subsidiaries and grandparent companies under Postco Holdings and the adjustment of restructuring of the governance structure and ownership structure, we are thinking very hard about how to So this is something under very deep investigation by our company. So once it is decided, we are going to communicate that to the market. And as for lithium and other businesses, we believe that today this business will indeed boost the value of holdings in the future. And if this business becomes like part of a grandson company and if Next, we would like to hear

Kim Yoon-Sang, High Investment Securities. Please ask your question. Yes, hello. My name is Kim Yoon-Sang from High Investment Securities. Thank you very much for the presentation. I have about three or four questions. The first question is on raw fuel and how the supply is for that and also with the ties Improving between China and other countries and with the supply situation in Europe and etc. Can you tell us a little bit about the supply chain and supply situation for your side? The second question is on the export situation for U.S. and European markets. If you can elaborate on that because I understand that the Russian quota has decreased and this means that the sales volume or the quota for POSCO might have increased and I know that the price has been increased gradually recently, but perhaps because of a lower demand, perhaps people might think that the price is not going to be elevated further. Can you tell us a little bit about the market situation right now and your export outlook? The third question is on lithium. Right now, I know that in Argentina you have the commercial plant that is Entering into construction and there are negotiations right now for possible 20,000 tons supply that you are entering into with the local community. I think that there might be some cause for uncertainty. Do you think that you can actually have supplies of upwards of 110K going forward beginning in 2024 and on? My last question is on CO2 emissions reduction. Do you have visibility or guidance on scrap metal usage for last year and also this year as well? Thank you very much for your question. First on raw coal and raw iron. For raw iron supply, I think that Seola Ji-Won of the head of the raw materials office can better understand. Yes, my name is Seo Ji-Won of the Raw Materials Office 1. In terms of raw materials, particularly raw steel, Russia's supply takes up about 14% of the global supply, about 45 million tons. Of this 45 million tons, it is not 0% that has come into the market. Russia is also a net importer of about 10 million tons. So if you minus that from 45 million, we expect the impact to be about 30 million or so. And here, for Bituminous and PCR coal, I think that there is a lot of dependency for Europe. But right now, we're seeing a lot of rebalancing at the market for Europe and South American steelmakers. Because they are unable to purchase from Russia, they are importing from U.S., Canada, and China, India, and Turkey are... Having access to cheap supply from Russia. Because of this, in April, Europe has issued an import ban on Russia's supply. And beginning in August, an outright ban from Russian supply. But actually in the markets, we have already seen this priced in already, even with this month as well. This means that following May, we understand that Australian supply is going to enter into the markets, leading to expanded supply in the market. So right now, given the current price, we believe that it is going to stabilize somewhat, and in the future, it is going to become even more stable down the road. That is all. For a second question, on steel, talking about U.S. and European market possible export expansion into these different markets, Because of the situation from Russia, with the quota decrease from Russia, that this might have a positive impact for POSCO in terms of our exports to U.S. and Europe. And also, the additional question was on the price peak that the analyst has seen in the U.S. and European market. Perhaps Mr. Om Ki-chun of the Marketing Strategy Office can answer to this question. My name is Om Ki-chun. Yes, my name is Aum Gaitan of the Marketing Strategy Office at POSCO. First, the question was on U.S. and Europe on possible peak price in these different markets. Because of the Ukrainian-Russian conflict that is becoming more prolonged, as the analyst has mentioned, we believe that right now the price has peaked and it is maintaining at those levels with the U.S. trade wars, with the lifting of the tariffs. Some of the supply in Europe is coming into the U.S. market, so this is leading to a weak price for the market overall. And for EU, as the analyst has already mentioned, direct exports to Russia is minimal for POSCO, with the year quota about $40 million. And there's a global quota that is already open for us, which means that for February and March and so on, we have... managed to increase HR hot-rolled steel into the European market since then. The third question was on Argentina, lithium commercial plants construction for the Argentina subsidiary and the possible supply expansion in the future if we can have increased capacity from Argentina, if there is any possible uncertainty for the capacity expansion. Perhaps we can hear from Holdings side, Mr. Lee Kyung-Sub, who is the head of green infrastructure business.

Ladies and gentlemen, my name is Lee Kyung-Sub of the green infrastructure business.