Posco Holdings Inc (PKX) 2024 Q4 法說會逐字稿

Good afternoon. Thank you for joining us at the POSCO Holdings earnings call. We will have a presentation from POSCO Holdings followed by a Q&A session with the participants. (Operator Instructions) We will now begin the POSCO Holdings' 2024 earnings call.

午安.感謝您參加 POSCO Holdings 收益電話會議。我們將聽取浦項製鐵控股公司的演講，然後與參與者進行問答。（操作員指示）我們現在開始 POSCO Holdings 2024 年收益電話會議。

Greetings everyone. I'm the Head of Finance and IR Division at POSCO. My name is Kim Seung-Jun. I'd like to begin by expressing my profound gratitude to the investors who offer unwavering attention and support to our business. Thank you.

大家好。我是 POSCO 財務與投資者關係部門的主管。我的名字是金承俊。首先，我要向一直以來關注並支持我們業務的投資者表示深深的感謝。謝謝。

In 2024 various internal or external challenges impacted our business resulting in consolidated account revenue of KRW72.7 trillion and operating profit of KRW2.2 trillion, both of which declined against the previous year.

2024年，各種內部或外部挑戰影響了我們的業務，導致合併帳戶收入為72.7兆韓元，營業利潤為2.2兆韓元，均比上年有所下降。

In Steel, China's oversupply and its construction industry in a recession pushed the excess volume to exports, causing steel price in Asia to remain suppressed. We also feel limited in our ability to improve steel margin.

鋼鐵方面，中國鋼鐵供應過剩，加上建築業陷入衰退，導致過剩產能轉而出口，導致亞洲鋼鐵價格持續受到抑制。我們也感到提高鋼鐵利潤的能力有限。

In Energy Materials. Given the slow EV market growth rate, essential minerals prices have tumbled. This led to inventory value impairment that have adversely impacted our earnings performance. Especially notable last year has been the successful completion of Q4, in Q4, of various EV battery materials plants, including POSCO Argentina, P-PLS, and POSCO Lithium Solution. However, high initial operation costs during the ramp-up stage of new plants on top of inevitably low plant operation rate during product certification have led to larger shortfalls.

在能源材料領域。由於電動車市場成長緩慢，基本礦物價格大幅下跌。這導致庫存價值減值，對我們的獲利表現產生了不利影響。尤其值得注意的是，去年第四季度，包括 POSCO Argentina、P-PLS 和 POSCO Lithium Solution 在內的多家電動車電池材料工廠已成功竣工。然而，新工廠在啟動階段初期運作成本較高，加上產品認證期間工廠開工率必然較低，導致缺口較大。

Despite the Steel business cycle headwinds in the region based on our value-added Steel products, POSCO Group has been able to maintain relatively stable profits. In addition, we are making steady progress on our core strategies such as in our plants to invest in abroad and to build electric furnaces.

儘管該地區鋼鐵業務面臨逆風，但憑藉我們加值鋼鐵產品，浦項集團仍能保持相對穩定的利潤。此外，我們在海外投資建廠、興建電爐等核心策略也正在穩步推進。

In the Energy Materials business, we were successful in building a system within 2024 capable of producing essential minerals such as lithium and cathode active materials. This carries remarkable meaning and proves our clear progress made in business.

在能源材料業務方面，我們成功在2024年之前建立了能夠生產鋰和正極活性材料等必需礦物的系統。這意義非凡，證明了我們在業務上取得的顯著進步。

Surely, given the challenges faced in the rechargeable battery industry, we will also adjust in speed and calibrate. However, compared to competition, we have sound financials that make us fit to seize new opportunities. This is what we will prepare in thorough and steady fashion.

當然，考慮到充電電池產業面臨的挑戰，我們也會調整速度，進行校準。然而，與競爭對手相比，我們的財務狀況良好，這使我們能夠抓住新的機會。我們會認真、穩定地做好這些準備。

Also beginning early last year, POSCO Group has taken the initiative to restructure low performing businesses and non-essential assets in our effort to enhance asset efficiency, low profit estate -- real estate and simple equity shares have been sold through these restructuring efforts. KRW662.5 billion has been generated. KRW100 billion of that cash will be used to buy back and retire treasury shares.

此外，從去年年初開始，浦項製鐵集團為了提高資產效率，主動重組業績不佳的業務和非必要資產，並透過重組出售了低利潤的房地產和簡單的股權。已產生6625億韓元的收入。其中 1000 億韓元現金將用於回購和註銷庫存股。

I would like to remind our investors that we face higher trade barriers around the world while EV market growth continues to slow. It is no secret that the business environment in 2025 will continue to be rough. Hence, we will focus the group's energy in sustaining strong profits. And still, we intend to drive explicit progress in overseas growth market investments and in achieving carbon neutrality. Also, by enhancing facility capacity and efficiency, we'll focus on sustaining price competitiveness.

我想提醒我們的投資者，我們在全球範圍內面臨更高的貿易壁壘，而電動車市場的成長卻持續放緩。2025 年的商業環境仍將持續艱難，這已不是什麼秘密。因此，我們將集中集團的精力來維持強勁的利潤。我們仍打算在海外成長市場投資和實現碳中和方面取得明顯進展。此外，透過提高設施容量和效率，我們將專注於保持價格競爭力。

In the Energy Materials business will be proactive to acquire quality lithium assets in South America and Australia. At the same time, our goal is to achieve ramp up of our new plants ahead of schedule.

在能源材料業務方面，將積極收購南美洲和澳洲的優質鋰資產。同時，我們的目標是提前實現新工廠的產能提升。

In the Infrastructure business. We will continue to invest in Australia and in Myanmar to expand our production capacity while adding to the domestic LNG terminal space as a means to focus on strengthening our Energy Business foundation. Additionally, we would like to focus on stabilizing our business to the greatest extent possible.

在基礎設施業務方面。我們將繼續在澳洲和緬甸投資，擴大我們的生產能力，同時增加國內液化天然氣終端空間，以此作為加強我們能源業務基礎的重點。此外，我們希望盡可能地穩定我們的業務。

In addition, by completing our restructuring goals within a year, we'll improve our asset efficiency. With the cash generated from this effort, it will help to finance the group's future growth investments.

此外，透過在一年內完成重組目標，我們將提高資產效率。此次努力所產生的現金將有助於為集團未來的成長投資提供資金。

Now allow me to introduce our IR Department Leader. She will share more detail on the 2024 earnings.

現在請容許我介紹我們的投資者關係部門負責人。她將分享有關 2024 年收益的更多細節。

Good afternoon. I will now present the 2024 yearly and fourth quarter earnings. Please refer to page 4. As for the yearly revenue, recorded KRW72.7 trillion. Operating profit of KRW2.2 trillion. EBITDA for the year was KRW6.1 trillion. And yearly CapEx amounted to KRW9 trillion with KRW1 trillion a standalone basis.

午安.我現在將介紹 2024 年年度和第四季的收益。請參閱第4頁。全年營收達72.7兆韓元。營業利益2.2兆韓元。全年息稅折舊攤提前利潤 (EBITDA) 為 6.1 兆韓元。每年的資本支出高達 9 兆韓元，單獨計算則為 1 兆韓元。

Q4 operating profit came in particularly weak at KRW95 billion, amidst the ongoing market downturn in both steel and battery materials, new secondary battery plants were commissioned in many numbers with initial operation costs accounted for. And there were also one-off cost increases in the Steel business, including labor costs that were reflected -- reflecting the December wage negotiation results.

第四季營業利潤尤其疲軟，僅為 950 億韓元，在鋼鐵和電池材料市場持續低迷的背景下，大量新的二次電池工廠投入使用，併計入了初始營運成本。鋼鐵業務也出現了一次性成本增加，包括反映 12 月工資談判結果的勞動成本。

So if you look at the business segment. Steel operating profit declined 35% YoY. POSCO's OP margin dropped by 3.9% with 29% YoY decrease in profit. As for Overseas Steel, despite the good performance of the Indian subsidiary, due to weak performance in Indonesia, Vietnam, and other Southeast Asia subsidiaries, profit decline was significant.

所以如果你看一下業務部門。鋼鐵營業利益較去年同期下降35%。浦項製鐵的營業利益率下降了3.9%，利潤較去年同期下降了29%。海外鋼鐵方面，儘管印度子公司業績表現良好，但由於印尼、越南等東南亞子公司業績表現疲軟，利潤下滑較為明顯。

As for Energy Materials, the business recorded KRW278 billion losses, with the deficit widening further. POSCO Future M fell into the red in Q4, mainly due to high initial costs and newly commissioned plants.

能源材料業務方面，虧損2,780億韓元，虧損額還在進一步擴大。POSCO Future M 在第四季陷入虧損，主要原因是初始成本高昂以及新投產的工廠。

Now, Infrastructure. Operating profit declined 14% YoY. This was because as POSCO E&C completed large scale planned projects both domestically in Samcheok and overseas in Malaysia, additional costs were accounted for.

現在，基礎設施。營業利潤較去年同期下降14%。這是因為，隨著 POSCO E&C 在韓國三陟市和馬來西亞等海外地區完成大型計畫項目，產生了額外成本。

Now, if you look at the performance in Q4, we turn to a net loss of KRW703 billion. This was primarily because in the fourth quarter alone, KRW1.3 trillion in noncash expenses including asset impairment losses were accounted for. Let me elaborate further on the next page.

現在，如果你看一下第四季的表現，我們會發現淨虧損為 7,030 億韓元。這主要是因為光是第四季度，就計入了1.3兆韓元的非現金支出，包括資產減損損失。讓我在下一頁進一步闡述。

Now, looking at the non-operating losses, we recognized asset impairment losses of KRW1 trillion in Q4 and KRW1.2 trillion for the full year. These can be divided into three categories of asset impairment losses.

現在，從非營業損失來看，我們在第四季度確認了 1 兆韓元的資產減損損失，全年確認了 1.2 兆韓元的資產減損損失。這些資產減損損失可分為三類。

First is the Steel business. In Q4 we suspended operations of outdated low efficiency assets like Pohang Steelmaking line number one and Wire Rod Mill number one, accounting for the impairment losses for these assets. Second. We accounted for the impairment losses of certain aging and low profit assets of the Battery business, including the (inaudible) cathode materials plant and Precursor JV in China.

首先是鋼鐵生意。第四季度，我們暫停了浦項製鋼一號線、一號線材廠等老舊低效率資產的運營，並提列了這些資產的減損損失。第二。我們對電池業務中某些老化和低利潤資產的減值損失進行了核算，其中包括（聽不清楚）正極材料工廠和中國的前驅體合資企業。

Third, as part of our ongoing business restructuring efforts since the beginning of this year, we proactively recognize impairment losses on assets marked for sale. So let me give you an example. Vietnam's Mongduoung coal-fired power plant, which does not align actually with our ESG policies, is currently being sold. So all of this has been accounted for proactively.

第三，作為今年以來持續進行的業務重組工作的一部分，我們主動確認了待售資產的減損損失。讓我給你舉個例子。越南的 Mongduoung 燃煤發電廠實際上與我們的 ESG 政策不符，目前正在出售。所以所有這些都已經提前考慮到了。

As for the operating profit inventory valuation losses of KRW88.2 billion for the full year had an impact. You can see that the newly commissioned battery material plants in 2024, that is POSCO Pilbara Lithium Solution and Argentina's subsidiaries are significant inventory valuation losses. Now moving on to page 6.

至於營業利潤則受到全年882億韓元存貨估價損失的影響。可以看到，2024年新投產的電池材料工廠，也就是POSCO Pilbara Lithium Solution和阿根廷的子公司，都出現了明顯的存貨跌價損失。現在翻到第 6 頁。

Despite adverse business circumstances, we made some notable progress in 2024. To respond to the formation of economic blocks in steel, we are pursuing a JV upstream investment in India with JSW. Additionally, low carbon steel is progressing, evidenced by investments in electrical furnaces and the initial tapping on the pilot electric smelter facility, which is a milestone in our low carbon technology development in energy materials.

儘管經營環境不利，但我們在 2024 年取得了一些顯著進展。為了回應鋼鐵經濟集團的形成，我們正在與JSW在印度進行合資上游投資。此外，低碳鋼技術也在不斷進步，電爐投資和中試電爐的初步投入使用是證明，這是我們在能源材料低碳技術發展的一個里程碑。

In Energy Materials, we celebrate a year one of lithium production by completing hard rock and brine-based lithium plants in Korea and overseas. Initial production has been successful. At year-end, next generation silicon anode materials plant also came online. In cathode asset materials, we expanded lines for NCA production.

在能源材料方面，我們透過在韓國和海外建成硬岩和鹽水鋰工廠來慶祝鋰生產一周年。初步生產已成功。年底，下一代矽負極材料工廠也正式投產。在正極資產材料方面，我們擴大了NCA生產線。

In infrastructure, offshore gas field Phase 3 commercial production was launched in Myanmar, at the same time Phase 4 expansion kicked off construction. In Australia, we added velocity to the new Senex development project to triple production. Next on slide 7.

基礎建設方面，緬甸海上氣田三期工程正式投入商業生產，四期擴建工程也動工。在澳大利亞，我們加快了新的 Senex 開發案的速度，使產量提高了兩倍。接下來是第 7 張投影片。

Here we offer the latest updates on the Energy Materials Business. Our paramount focus at the moment is to stabilize operation at our new plants and to build on associated technology developments. Argentina Phase 1 brine lithium plant was commissioned at the end of last year. Our goal is to complete ramp up by second quarter this year and to acquire battery maker certification by the fourth quarter. Lithium carbonate production is Phase 2 of this project, a project that is shooting for completion by August.

我們在此提供有關能源材料業務的最新動態。我們目前的首要任務是穩定新工廠的運作並推動相關技術的發展。阿根廷一期鹵水鋰廠於去年底投產。我們的目標是在今年第二季完成產能提升，並在第四季獲得電池製造商認證。碳酸鋰生產是該專案的第二階段，該專案預計於8月完工。

POSCO Pilbara Lithium Solution plant 1 or P-PLS plant 1 has reached full ramp up as of second half of 2024. So POSCO Future M product certifications have been completed, and two other battery makers are wrapping up their certification. As a result, in fourth quarter we have been negotiating contracts.

截至 2024 年下半年，POSCO Pilbara 鋰溶液工廠 1 號或 P-PLS 工廠 1 號已達到全面投產。因此，POSCO Future M 產品認證已經完成，另外兩家電池製造商也正在完成認證。因此，第四季度我們一直在談判合約。

So we signed a supply agreement with SK On for 15,000 tonnes over three years and with Future M for 20,000 tonnes in 2025. With these two contracts alone, we have orders worth 25,000 tonnes per year which surpasses the capacity of plant 1, which stands at 21.5000 tonnes.

因此，我們與 SK On 簽署了三年 15,000 噸的供應協議，並與 Future M 簽署了 2025 年 20,000 噸的供應協議。光是這兩份合同，我們每年的訂單價值就達到 25,000 噸，超過了工廠 1 的產能（21,500 噸）。

So again, with just these two orders alone, we exceed the capacity of plant 1. Besides these two agreements, our certs and supply agreements are in negotiations. Plant 2 completed construction at the end of last year because this plant uses a different process. A separate certification process is underway. We expect certifications to be acquired from Posco Future M by June and from two other battery makers and can manufacturers by September.

因此，僅憑這兩個訂單，我們就超出了工廠 1 的產能。除了這兩項協議外，我們的證書和供應協議正在談判中。2號工廠於去年年底竣工，因為該工廠採用了不同的製程。單獨的認證過程正在進行中。我們預計，6 月將獲得 Posco Future M 的認證，9 月將獲得另外兩家電池製造商和罐頭製造商的認證。

POSCO HY Clean Metal is our recycling plant, whose operation rate is 95% or above. Recovery ratio is very favorable as well. So with this kind of ramp up and stabilization, stable operations are helping to shave off losses.

POSCO HY Clean Metal 是我們的回收工廠，其運作率達 95% 以上。回收率也非常高。因此，透過這種提升和穩定，穩定的營運有助於減少損失。

Because of this kind of progress and because we completed construction of plant Phase 2 and the plant in POSCO Argentina, as these plants ramp up and as we prepare for other new plants on a short-term basis, it's difficult to say that we'll be able to ship to black ink anytime soon. But because things are happening without any snags, I believe a medium-term recovery into black ink is very possible.

由於這種進展，而且我們完成了工廠二期和 POSCO 阿根廷工廠的建設，隨著這些工廠的產能增加以及我們在短期內為其他新工廠做準備，很難說我們很快就能實現盈利。但因為一切進展順利，我相信中期恢復獲利是完全有可能的。

HY Clean Metal will be able to shape up most of its losses by next year, that is our hope and plan. And within the next two to three years, I believe we'll be able to see a lot of stabilization happening in many of the other plants as well.

HY Clean Metal 將能夠在明年彌補大部分損失，這是我們的希望和計劃。我相信，在未來兩到三年內，我們也將能夠看到許多其他工廠穩定下來。

Recently, we've seen a lot of policy shifts and policy changes in various countries. But because the US policy shift has not become specific, we are going to be focusing on select strengths. So strengthen our core competence while reducing less competitive businesses. And as a result, we've taken significant interest in acquiring quality assets. So we're looking not only at Salt Lakes in Latin America, but also in additional hard rock lithium development projects in Australia where we have signed an MOU with Hancock.

最近，我們看到各國的政策發生了許多轉變和改變。但由於美國政策轉變尚未具體化，我們將聚焦在特定優勢。因此，我們要加強核心競爭力，同時減少競爭力較弱的業務。因此，我們對收購優質資產產生了濃厚的興趣。因此，我們不僅關注拉丁美洲的鹽湖，還關注澳洲的其他硬岩鋰開發項目，我們已與漢考克簽署了諒解備忘錄。

On certain projects where price structure is weak or markets are overly sensitive, we seek to rebalance our strategy by pulling out or postponing investments. To offer examples, P&O Chemical shares have been sold off, Precursor/Nickel JV between Future M and Huayou have been canceled, a decision was made to postpone our JV investment in Precursor with CNGR too. Next is slide 8 on our restructuring progress.

對於某些價格結構薄弱或市場過於敏感的項目，我們尋求透過撤出或推遲投資來重新平衡我們的策略。舉例來說，P&O Chemical 的股份已出售，Future M 和華友之間的 Precursor/Nickel 合資企業已被取消，我們還決定推遲與 CNGR 對 Precursor 的合資投資。接下來是第 8 張投影片，介紹我們的重組進展。

In 2024 POSCO Group dissolved 45 assets generating KRW662.5 billion. This year, we will liquidate another 61 assets to generate additional cash of KRW1.5 trillion. By turning down low profit non-operation assets, we intend to focus on improving our asset efficiency. Next, let's delve into the performance of each affiliated company.

2024年，浦項集團解散了45項資產，價值達6,625億韓元。今年，我們將清算另外61項資產，以產生1.5兆韓元的額外現金。透過放棄低利潤的非營運資產，我們打算專注於提高資產效率。接下來我們來深入了解各關聯公司的表現。

First page 9 is POSCO. POSCO's Crude Steel production for Q4 was slightly down from the previous quarter. It stood at the full year of 35.47 million tonnes. And in 2025, the total Crude Steel output is expected to remain flat or slightly lower because of the number 3 Finex fire and partial refurbishment at Gwangyang number 2 furnace. Originally, the three Finex facility was scheduled for refurbishment in 2026. But due to the last year's fire, we decided to accelerate the process aiming for completion by September this year.

第一頁9是POSCO。浦項製鐵第四季粗鋼產量較上一季略有下降。全年產量為3547萬噸。而到2025年，由於3號Finex爐起火以及光陽2號爐的部分翻新，預計粗鋼總產量將保持平穩或略有下降。最初，三座 Finex 設施計劃於 2026 年進行翻新。但由於去年的火災，我們決定加快這一進程，並爭取在今年 9 月前完成。

Now, the selling prices which saw a slight rebound in Q2 last year, dropped another 5% in Q4 compared to Q3. But the production cost declined even more significantly, leading to a slight recovery in mill margins. So QoQ. But despite all that, the overall profitability declined because of higher energy costs due to rising power rates and the rise in labor costs I mentioned before.

現在，銷售價格在去年第二季略有反彈，但第四季較第三季又下降了 5%。但生產成本下降幅度更大，導致工廠利潤率略有回升。因此環比增長。但儘管如此，由於電價上漲導致能源成本上升以及我之前提到的勞動成本上升，整體獲利能力還是下降了。

Now as exchange rate hike has pushed up import steel prices. In Q1 2025, price increases may be possible for certain clients with high dependence on imported steel. But as the depreciation of the Korean won will impact costs with a time lag, cost pressures are also expected to increase.

目前由於匯率上調已經推高了進口鋼材價格。2025 年第一季度，某些對進口鋼材依賴程度較高的客戶的價格可能會上漲。但由於韓元貶值對成本的影響具有滯後性，預計成本壓力也將增加。

So given this, that currently we're at the bottom of the market situation, from a conservative view of things, we believe that an immediate or significant expansion of operating profit in Q1 may be somewhat challenging. But there are some notable developments including import quota of countries and several policy shifts in China steel industry announced last year, we will continue to monitor that and continue to cut costs and enhance our product mix.

因此，鑑於目前我們正處於市場底部，從保守的角度來看，我們認為第一季的營業利潤的立即或大幅擴張可能會有些困難。但也有一些值得注意的發展，包括各國的進口配額以及去年宣布的中國鋼鐵業的幾項政策變化，我們將繼續關注這些發展，並繼續削減成本並增強我們的產品組合。

Now page 12. As for the Overseas Steel business, despite stable profitability in the Indian subsidiary, due to deteriorating performance in Southeast Asian subsidiaries with intensifying competition due to exports of Chinese, Japanese, and Korean steel makers to over profit decline. But with aggressive cost cutting, we are targeting a profitable recovery in 2025.

現在是第 12 頁。海外鋼鐵業務方面，儘管印度子公司獲利穩定，但受中國、日本、韓國鋼鐵廠商出口競爭加劇等影響，東南亞子公司業績下滑，導致獲利下滑。但透過積極削減成本，我們的目標是在 2025 年實現獲利復甦。

Now POSCO Future M. Revenue declined 22% YoY with profits nearing to break-even levels, and the company fell into the red in Q4. While high-nickel cathode material sales increased, this offset the sharp decline in mid-nickel sales, resulting in only a slight YoY increase in total cathode material sales. But due to the falling mineral prices and the custom material, revenue fell 30% YoY.

現在POSCO Future M.營收年減22%，利潤接近損益平衡水平，公司在第四季陷入虧損。雖然高鎳正極材料銷量有所增長，但抵消了中鎳銷量的大幅下滑，導致正極材料總銷量同比僅小幅增長。但由於礦產價格及定製材料下跌，收入較去年同期下降30%。

For anode materials. The deferral of FEOC in the US was confirmed in May 2024, which led to sales volume falling below BP. And additionally, with artificial graphite mass production starting from last year, fixed costs increased contributing to operating losses. So in 2025, as we complete the ramp-up for the new high-nickel clients and move into full scale mass production and sales, we expect cathode material sales to grow by more than 30% compared to 2024.

用於陽極材料。美國FEOC延期已於2024年5月確認，導致銷售量跌至BP以下。此外，隨著去年人造石墨開始量產，固定成本增加，造成經營虧損。因此，到 2025 年，隨著我們完成對新高鎳客戶的提升並進入全面量產和銷售，我們預計正極材料銷售額將比 2024 年增長 30% 以上。

Now, POSCO International. While profits from steel trading declined, steady earnings in the energy sector helped maintain overall operating profit. However, in Q4, the stabilization of natural gas and oil prices led to a drop in S&P causing a significant YOY decline in profit.

現在是 POSCO International。雖然鋼鐵貿易利潤有所下降，但能源板塊的穩定獲利有助於維持整體營業利潤。但第四季度，天然氣和石油價格趨穩，導致標普下跌，利潤較去年同期大幅下降。

Now, POSCO E&C. After maintaining stable operating profit, Q4 turned into a loss due to additional cost including delay, penalties on the commissioned Malaysia LNG Power Project. However, we expect profitability to improve in 2025.

現在，POSCO E&C。在維持穩定的營業利潤後，第四季因馬來西亞液化天然氣發電項目投產延期、罰款等額外成本而轉為虧損。不過，我們預期獲利能力在 2025 年將會提高。

This concludes the business performance presentation for POSCO Holdings. We will now move on to the Q&A session.

浦項製鐵控股的業績介紹到此結束。我們現在進入問答環節。

(Operator Instructions) Mr. Park, Hyundai Motors Insurance.

（操作員指示）樸先生，現代汽車保險公司。

Hello, my name is [Hyun-Wook]. Thank you very much for the opportunity to ask this question. I have three questions. The first is about the steel industry market situation because of the real estate market slowdown in China as well as the inauguration of Trump 2.0, there are many uncertainties. So how does POSCO Group see the market this year?

你好，我的名字是[鉉旭]。非常感謝您給我這個機會提出這個問題。我有三個問題。第一是關於鋼鐵業的市場情勢，由於中國房地產市場的放緩以及川普2.0的上台，存在著許多不確定性。那麼浦項集團如何看待今年的市場呢？

In addition, Chairman Chang, in his new year's address, promised innovation and price competitiveness. So how will this happen in what area of your steel business? I'd like some elaboration the approach as well as the areas in which the innovation will occur. And there's been foreign exchange rate hike and POSCO and POSCO Group are likely to either benefit or be disadvantaged from the FX hike. So I would like to know in detail how this will break down across the group.

此外，張董事長在新年致詞中承諾創新和價格競爭力。那麼，這種情況將如何發生在你們的鋼鐵業務的哪個領域呢？我想詳細說明一下這種方法以及創新將發生的領域。且外匯匯率已經上漲，浦項製鐵和浦項製鐵集團可能會從匯率上漲中受益，也可能會受損。因此我想詳細了解整個集團將如何應對這種情況。

And on steel products, hot rolled coil products as well. There are some countervailing taxes and tariffs that are being imposed. So how will POSCO Group react to this? And in specific for electrodes, there's a lot to be gained in this market. So how do you intend to advance in this market? Will you be maybe spinning off this business or will you be absorbing that in your existing business structure?

以及鋼鐵產品、熱軋捲產品等。一些反補貼稅和關稅正在徵收。那麼浦項集團對此將作何反應？特別是對於電極而言，這個市場有許多可獲利的地方。那麼你們打算如何在這個市場上取得進展？您是否會剝離這項業務或將其吸收到您現有的業務結構中？

So I'd like to ask [Mr. Hong, Yoon-Sik], Head of Marketing at POSCO, to answer that first question.

所以我想問[先生。浦項製鐵公司行銷主管洪允植 (Hong, Yoon-Sik) 來回答第一個問題。

Regarding the industry outlook, market outlook, regardless of which expert we consult, they don't have clear prospects. There's a lot of uncertainties regarding the Trump administration, so they all agree that there will be a weak hold on the current status in the market.

對於產業前景、市場前景，無論我們諮詢哪位專家，他們都沒有明確的展望。由於川普政府存在諸多不確定性，大家一致認為，市場現狀將難以有效控制。

Once the policies of the Trump administration become more clear, and once we can find some stability in the market, we'll be able to say more. But for now, we're just monitoring the situation. But one thing that we are assessing is the fact that the steel market is so slow is because of China and because of the consumer trade in policy that has been promoted by the Chinese government, this is one of their stimulus policies.

一旦川普政府的政策變得更加清晰，一旦我們能夠在市場上找到一些穩定性，我們就能說更多。但目前，我們只是在監視情況。但我們正在評估的一件事是，鋼鐵市場如此低迷是因為中國以及中國政府推行的消費者以舊換新政策，這是他們的刺激政策之一。

There are various financial measures and easing of financial measures that the Chinese government is releasing. And I think this is going to have a positive impact on the steel industry. At least we hope as the market tightens, regulations in China are also becoming stronger. And so due to these stimulus packages as well as strengthening of its market, we hope that the market will recover a little bit in the second half of this year.

中國政府正在推出各種金融措施和放寬金融政策。我認為這將對鋼鐵業產生積極影響。至少我們希望，隨著市場收緊，中國的監管也會變得更加嚴格。因此，由於這些刺激計劃以及市場增強，我們希望市場在今年下半年能夠復甦。

And the next question will be answered by [Heo Jong-Yeol], Head of Finance Office at POSCO.

下一個問題將由 POSCO 財務辦公室主任 [Heo Jong-Yeol] 回答。

So let me talk about the -- how we intend to innovate price competitiveness. In our assessment, there are a lot of fixed costs in our production cost and that takes a big part of our cost structure. From 2024, we have been making significant efforts to reduce this fixed cost. So this is what we've been focused on.

那麼讓我來談談吧——我們打算如何創新價格競爭力。我們的評估是，我們的生產成本中有很多固定成本，這佔了我們成本結構的很大一部分。從 2024 年起，我們將做出巨大努力來降低這項固定成本。這就是我們一直在關注的重點。

As for specific measures. First of all, we'll focus on the use of raw materials to reduce that amount, and we will try and purchase less expensive raw materials but squeeze out the same quality of course. And one of the measures in this equation is on the fuel cost as well, reduction of fuel costs. And because maintenance cost is also quite high, these are some of the areas where we can try to reduce the total volume. And energy costs have been rising significantly. So what we can do here is to enhance the efficiency, that means enhancing facility efficiency. So this is what we're also focused on.

至於具體措施。首先，我們將重點放在原材料的使用，以減少原材料的用量，我們將嘗試購買更便宜的原材料，但當然要確保相同的品質。這個等式中的一項措施也是關於燃料成本，即降低燃料成本。而且由於維護成本也相當高，我們可以嘗試減少這些領域的總量。能源成本也大幅上漲。因此，我們能做的就是提高效率，也就是提高設施效率。這也是我們關注的重點。

And although this may not be production cost per se, there's also sales cost. So the raw materials costs that have increased, we want to be able to absorb some of that in the sales cost. And so we have created projects to focus on these specific items. And once all of these bits and pieces come together, we hope to be able to have something that is more systematic in terms of how we approach the cutting of production costs. So this is what we are engaged in and what we name cost, innovation. And we are still exploring new ways to cut costs.

雖然這本身可能不是生產成本，但也有銷售成本。因此，對於原材料成本增加的部分，我們希望能夠透過銷售成本來吸收。因此，我們創建了專注於這些特定項目的項目。一旦所有這些細節都整合在一起，我們希望能夠在削減生產成本方面採取更有系統的方法。這就是我們所從事的，也是我們所說的成本、創新。我們仍在探索削減成本的新方法。

Next is about FX. And we'd like to ask [Kim Young-Kyu], Head of Finance and Trade, to answer this question.

接下來是關於FX。我們想請金融和貿易主管金永圭 (Kim Young-Kyu) 來回答這個問題。

FX Impact. Let me address this by company. For POSCO, this is going to be a disadvantage. When FX hikes -- because -- although this is going to increase revenue and sales, because we import most of our raw materials from abroad which is purchased using dollars, this acts as a disadvantage. But to state this off, to offset this impact, we want to focus on value-added products so that we can improve the cost structure. So the impact of FX for POSCO, we want to be able to absorb this as much as possible through value-added products. That will include HR products as well as other premium products.

FX 影響。讓我按公司來解決這個問題。對於浦項製鐵來說，這將是一個劣勢。當外匯匯率上漲時——因為——雖然這會增加收入和銷售額，但由於我們的大部分原材料都是從國外進口的，而且是用美元購買的，所以這是一個缺點。但要說的是，為了抵消這種影響，我們希望專注於增值產品，以便改善成本結構。因此，對於浦項製鐵來說，我們希望能夠透過加值產品盡可能吸收外匯帶來的影響。這將包括人力資源產品以及其他優質產品。

Next for POSCO International. High FX signifies positive impact on revenues and operating income on short-term projects. In trading business, export margins will expand while profits will rise in energy, specifically in Myanmar gas field and LNG power businesses. However, excessive cost hikes in steel and chemical products can lead to shrinking exports and sales as well. Hence, we must react with agility to the changing market environment.

接下來是 POSCO International。高外匯意味著對短期專案的收入和營業利潤有正面影響。貿易業務中出口利潤率將擴大，能源業務，特別是緬甸氣田和液化天然氣發電業務的利潤將上升。然而，鋼鐵和化學產品成本的過度上漲也會導致出口和銷售的萎縮。因此，我們必須對不斷變化的市場環境做出敏捷反應。

In POSCO E&C, because domestic construction business comprises a large share of our projects, FX impact is not likely to be significant. In POSCO DX, most of the revenues generate from domestic industries, so adequate margins are guaranteed in DX projects, therefore, impact is not likely to be huge. In POSCO Argentina and POSCO Future M, because most of the volume is dedicated to exports, FX hikes are likely to have a positive impact on revenue and sales.

在 POSCO E&C 中，由於國內建築業務占我們專案的很大一部分，因此外匯影響可能不會很大。在 POSCO DX 中，大部分收入來自國內產業，因此 DX 專案可以保證足夠的利潤，因此影響可能不會很大。在 POSCO Argentina 和 POSCO Future M，由於大部分產量用於出口，匯率上漲可能會對收入和銷售產生正面影響。

Next is on trade affairs. Additional trade remedies are not being evaluated, but we are monitoring unfair trade practices. For any low-cost products that are flooding our markets and not playing by the rules, we will definitely consider invoking trade remedies. But we represent the Korean steel industry. We are more focused on stabilizing the economy and the market. So we take into consideration many variables before we take action, that is our position.

接下來是關於貿易事務。我們也未評估其他貿易救濟措施，但正在監控不公平貿易行為。對於任何湧入我國市場、不遵守規則的低成本產品，我們一定會考慮採取貿易救濟措施。但我們代表韓國鋼鐵業。我們更加重視穩經濟、穩定市場。因此，我們在採取行動之前會考慮許多變量，這就是我們的立場。

Next is on the electrode rod. So this is something that is as attractive as the rechargeable battery materials business and there is no domestic manufacturer. So POSCO has both the captive market as well as other markets that demand electrodes. So sales is likely to be very profitable and stable. And needle coke are things that we produce ourselves, which is a raw material of electrodes.

接下來是電極棒。因此，這是一個與充電電池材料業務同樣有吸引力的業務，但目前國內還沒有製造商。因此，浦項製鐵既擁有壟斷市場，也擁有其他需要電極的市場。因此銷售額可能會非常有利可圖且穩定。針狀焦是我們自己生產的，是電極的原料。

And so we have the full value chain in control. And so this is why we have assessed this business and researched this business in great detail. And we participated in national projects as well, but we have not initiated the business just yet. The reason being because there is surplus production in China. And so even in Japan, they are seeing their market share shredding because of Chinese manufacturers.

因此，我們控制了整個價值鏈。這就是我們對這項業務進行評估和詳細研究的原因。我們也參與了國家項目，但是還沒有開展業務。原因是中國產能過剩。因此，即使在日本，他們的市場份額也因中國製造商而不斷縮小。

So this requires high temperature that needs to be maintained at a consistent rate. And because of the power demand required in this business that we have not initiated business yet, but something that we can definitely jump into as soon as we see a market opportunity.

因此，這需要以恆定的速率維持高溫。由於該業務對電力的需求，我們尚未開展業務，但一旦我們看到市場機會，我們肯定會立即開展業務。

And listing option. We don't have a company incorporated for the purpose of manufacturing electrodes. So I'm not sure I understood the question correctly. But if this is what you meant, this is something that we are considering with Mitsubishi and we may if we incorporate to list this company as well and this is something that we will negotiate going forward.

和清單選項。我們沒有專門生產電極的公司。所以我不確定我是否正確理解了這個問題。但如果這是你的意思，這是我們正在與三菱考慮的事情，如果我們合併，我們也可能將這家公司上市，這是我們將繼續談判的事情。

Kim Yoon-Sang, IM Securities.

Kim Yoon-Sang，IM 證券。

Hello, I'm Kim Yoon-Sang from IM Securities. I would like to ask four questions. First question is about one-off losses. I would like to know if there could be additional one-off losses in the future, especially this year. You have a lot of restructuring goals, so you have cash coming in, but it is highly likely -- I would like to know if there is an additional accounting for the losses in your books.

您好，我是 IM Securities 的 Kim Yoon-Sang。我想問四個問題。第一個問題是關於一次性損失。我想知道未來是否還會出現額外的一次性損失，尤其是今年。您有很多重組目標，因此您有現金流入，但很有可能——我想知道您的帳簿上是否有額外的損失核算。

And I would like to know about your business plans for each segment for 2025. As for the strategic direction, I would like to also know about the strategic direction for the secondary battery materials and also biomaterials, including the EBITDA margin, will there be any changes with regards to that?

我想了解一下你們 2025 年各領域的業務計畫。至於策略方向，我還想了解二次電池材料和生物材料的策略方向，包括EBITDA利潤率，這方面會有什麼變化嗎？

And the third question is regarding CapEx for 2025. So there is a steel and also the secondary materials CapEx. Do you have any guidance on that? And when it comes to the EV market, there are lots of volatility. So I would like to know if you have any guidelines with regards to the capacity expansion for the secondary battery materials. Will there be any strategic direction changes occurring for 2025?

第三個問題是關於2025年的資本支出。因此，存在鋼鐵和二次材料的資本支出。您對此有何指導？而說到電動車市場，則存在著許多波動。所以我想知道您是否對二次電池材料產能擴張有任何指導。2025年戰略方向會發生哪些變化？

And the last question is with the inauguration of Trump administration, I would like to ask a question about the steel or the market in North America. So there will be 25% additional tariffs on Mexico imposed by the US. So of course, we export to Mexico but some of that is also exported to the US as well. So I would like to know what kind of impact all of these tariffs would have POSCO.

最後一個問題是，隨著川普政府的就職，我想問一個關於鋼鐵或北美市場的問題。因此美國將對墨西哥徵收25%的額外關稅。因此，我們當然出口到墨西哥，但其中一部分也出口到美國。所以我想知道這些關稅會對浦項製鐵產生什麼樣的影響。

And with regards to the upstreaming in the US, I heard that you have some plans for that. So I would like to know any update on the progress of the upstreaming of business penetration in the US. With regards of course, there will be some advantages in terms of localization, but there are also ramp-ups going up in the America as well and this could pose as a concern for you. So I would like to know if you have any updates on that matter..

關於美國上游，我聽說您對此有一些計劃。因此，我想了解美國上游業務滲透的進展。當然，在本地化方面會有一些優勢，但美國市場也在不斷增長，這可能會給您帶來擔憂。所以我想知道您對此事是否有任何最新消息。

Now, regarding the one-off expenses, Mr. Kim Young-Kyu, Head of Finance, will give the answer.

現在，關於一次性費用，財務主管金永圭先生將給出答案。

So as you may well know, so one of the expenses as it was mentioned in the presentation as well regarding the asset impairment losses, there are about KRW1.2 trillion and about the asset valuation losses, KRW89 billion. So I think the question was whether we will have additional one-off expenses in the future. So there is a possibility subject to market conditions as well as the restructuring. But we believe that the impairment losses that should be accounted for have not been identified as of now.

因此，您可能很清楚，簡報中提到的費用之一涉及資產減損損失，約為 1.2 兆韓元，資產估值損失為 890 億韓元。所以我認為問題是我們將來是否會有額外的一次性開支。因此，根據市場條件和重組情況，存在這種可能性。但我們認為，截至目前尚未確定應提列的減損損失。

Regarding question number two and three, regarding the business plan as well as the operating profit guidelines. We do not yet have the approval of the Board. So we cannot share everything. But the basic direction is that in 2025 the operating profit will be slightly better than 2024. So slightly better, this means is that the lithium prices and the steel prices, all of that are not taken into account.

關於第二和第三個問題，涉及商業計劃以及營業利潤指導。我們尚未獲得董事會的批准。所以我們無法分享一切。但基本方向是2025年的營業利潤會比2024年略好。稍微好一點的是，這意味著鋰價和鋼鐵價格都沒有被考慮過。

So and we do not take into account any specific anti-dumping issues. So even though the current market situation holds, so we expect that we will be able to achieve a slightly higher op. But as for the energy materials business, as it was mentioned before, new plans were established last year and commissioned this year, and we do not believe that there is going to be significant increase in profits. So Future M is a different story, but I'm talking about the newly established plans or newly established subsidiaries.

因此，我們不會考慮任何特定的反傾銷問題。因此，即使當前的市場狀況保持不變，我們預計我們將能夠實現略高的營運。但就能源材料業務而言，如同先前提到的，新的計畫是去年制定的，今年才開始實施，我們認為利潤不會有大幅成長。所以未來 M 是另一回事，但我說的是新成立的計畫或新成立的子公司。

So overall speaking, so in 2025 the operating profit will be better than 2024. But we do not expect a significant expansion of the profits. As for the CapEx. Last year, we spent KRW 9 trillion. We believe that CapEx will be reduced slightly this year because the secondary materials CapEx will also be smaller than last year, but it will not be that big of a reduction because there's going to be continued investment in lithium. So, but the CapEx will be slightly lower than last year, and we will continue to execute the CapEx.

整體而言，2025 年的營業利潤將比 2024 年更好。但我們並不預期利潤會大幅擴張。至於資本支出。去年我們花了9兆韓元。我們認為，今年的資本支出將略有減少，因為二次材料的資本支出也將比去年小，但減少幅度不會太大，因為將繼續對鋰進行投資。所以，但資本支出將略低於去年，我們將繼續執行資本支出。

Now regarding the investment, I would like to add some comments. So the group's perspective is that as for the new business investment, including the secondary material will be continued, but we will select and focus in order to improve the quality of our investments.

現在關於投資，我想補充一些評論。因此，集團的觀點是，對於包括二級材料在內的新業務投資將繼續進行，但我們將進行選擇和集中，以提高投資品質。

Now there was a question about the steel market in North America. So Mr Hong, our Head of the Marketing Strategy will give the answer.

現在有一個關於北美鋼鐵市場的問題。我們的行銷策略主管洪先生將給出答案。

Yes, 25% tariffs imposed on Mexican products or products that are exported to Mexico or will be implemented. But I think that we have to continue to closely monitor the developments. So there are products that go through Mexico to the US about 100,000 tonnes. So that is not very much, it only represents about 0.01% of the sales -- overall sales.

是的，對墨西哥產品或出口到墨西哥的產品徵收或將實施25%的關稅。但我認為我們必須繼續密切關注事態發展。因此，經由墨西哥運往美國的產品約有 10 萬噸。所以這個數字並不多，它只佔銷售額的 0.01% 左右——總銷售額。

And Mexico and the US, if you look at their trade relations, actually, the goods that we export to Mexico are 100% coated products, coated goods and the coated goods from Mexico to us is about 580,000. Actually from us to Mexico is from 580,000 to from Mexico to US, the US to Mexico, 480,000.

如果你看看墨西哥和美國的貿易關係，實際上，我們出口到墨西哥的商品 100% 都是塗層產品、塗層商品，而墨西哥向我們出口的塗層商品約為 580,000。實際上從我們到墨西哥的人數是 58 萬，從墨西哥到美國，從美國到墨西哥的人數是 48 萬。

So you can say that within the -- it will provide maybe a better condition for us to send goods to Mexico -- sell goods to Mexico. And in the worst of all cases, there could be the end product or end vehicles that are sent from Mexico to the US. There are about 250,000 vehicles that are concerned. And of course, that could lead to increased consumer prices for the US consumers. So I don't know how much that additional cost will be transferred to the consumer prices, but we believe and we expect that there will not be a drastic decrease of sales on our part.

所以你可以說，這也許會為我們向墨西哥發送貨物、向墨西哥銷售貨物提供更好的條件。最糟糕的情況是，最終產品或最終車輛可能會從墨西哥運往美國。約有25萬輛汽車受到影響。當然，這可能會導緻美國消費者的消費價格上漲。所以我不知道有多少額外成本會轉嫁到消費者價格上，但我們相信並且預期我們的銷售額不會大幅下降。

Now, regarding the upstreaming project consideration in the US, as you said in your presentation, yeah, there will be high additional investment cost involved, and the volatility is high. So we're currently looking into many different options. Thank you.

現在，關於美國上游項目的考慮，正如您在演講中所說，是的，這將涉及高額的額外投資成本，而且波動性很大。因此我們目前正在研究許多不同的選擇。謝謝。

Mr. Lee Tae-Hwan, Daishin Securities.

大信證券李泰煥先生。

My name is Lee Tae-Hwan. Thank you for giving me this opportunity. Previous people who asked questions have satisfied some of my desires as well. So I'll ask one more possible. How could Future M turned to red ink in fourth quarter? And looking into the specifics, we can see certain areas that suffered more than others. So in adjusting the production cost, was this already accounted for or did this hit a certain aspect of the project?

我的名字是李泰煥。謝謝你給我這個機會。之前提問的人也滿足了我的一些願望。因此我再問一個可能的問題。Future M 為何在第四季陷入虧損？從具體情況來看，我們可以看到某些地區遭受的損失比其他地區更大。那麼在調整生產成本時，這是否已經考慮到了，還是影響了專案的某個方面？

In POSCO Argentina, you started recording some revenues and you are recording losses. At which point would you be able to shift to black ink at POSCO Argentina? Those are my questions.

在 POSCO 阿根廷，你們開始記錄一些收入，但同時也在記錄損失。什麼時候才能讓 POSCO 阿根廷公司轉為獲利？這些都是我的問題。

For this question. I'd like to ask Mr. [Oh Young-Da], Infrastructure Business Department Lead.

對於這個問題。我想請問基礎設施業務部負責人 [Oh Young-Da] 先生。

At POSCO E&C, the deficits are more ascribable to the plant projects rather than building construction. In construction it was not significantly impacted.

對於浦項製鐵建設而言，赤字更多是由於工廠項目而非建築施工造成的。在施工中並未受到太大影響。

In adjusting the prices, were you able to account for these changes or was this after the fact? I think that was the question.

在調整價格時，您是否能夠考慮到這些變化，還是事後才會發生？我想這就是問題所在。

In plant projects. The Malaysia LNG Power Plant construction suffered from LD issue. And so that's where the impairment was.

在工廠項目中。馬來西亞液化天然氣發電廠建設遭遇LD問題。這就是損害所在。

So if you ask, were there specific issues, we want to make sure that these specific issues don't happen, and we are making every effort to make sure that they don't happen again. But yes, let me summarize. This is an issue that came up in one project alone. So this will disappear next year.

所以如果你問是否有具體問題，我們希望確保這些具體問題不會發生，並且我們正在盡一切努力確保它們不會再次發生。但是是的，讓我總結一下。這是一個僅在一個專案中出現的問題。所以明年這種情況就會消失。

And on the second question, we will ask Kim Jun-Hyung, Head of Energy Materials Business Department.

第二個問題，我們將詢問能源材料事業部部長金俊亨。

The plant has to operate first before we can generate some profits. When we look at our investments, HY Clean Metal has hit about 90% operation rate. And so based on cash costs, we believe that they will turn a profit this year. So operation rate is very important.

工廠必須先運作起來，我們才能產生利潤。從我們的投資來看，HY Clean Metal 的運作率已達到約 90%。因此，根據現金成本，我們相信他們今年將實現盈利。所以運轉率很重要。

In the lithium business rather than the plant operation rate, materials cost is more important. At the current materials cost, no company will be able to turn a profit. Even the miners in Australia are suffering from large deficits. So the prices have to come up first. And plant operation at POSCO Argentina has to be 80% or higher before we can start hitting black ink. So I think that's going to be next year.

在鋰業務中，材料成本比工廠運轉率更重要。依照目前的材料成本，沒有一家公司能夠獲利。甚至澳洲的礦業公司也遭遇了巨額赤字。因此價格必須先上漲。在我們開始獲利之前，POSCO 阿根廷工廠的營運率必須達到 80% 或更高。所以我認為那將會是明年。

Ahn, DB Financial Investments.

Ahn，DB 金融投資。

Can you hear me?

你聽得到我嗎？

Yes, we do.

是的，我們有。

I'm Ahn Hoe Soo from DB Financial Investment. So I would like to ask a question about the shareholder return that you presented in December. So the ROIC as well as revenue growth targets were mentioned during the presentation. As for the revenue target, I would like to know what will be the contribution by each business segment to achieve that goal.

我是 DB Financial Investment 的 Ahn Hoe Soo。所以我想問一個有關您在 12 月提出的股東回報的問題。因此，演示過程中提到了 ROIC 以及收入成長目標。至於收入目標，我想知道每個業務部門將為實現該目標做出什麼貢獻。

And regarding the ROIC, I think the ROIC is the key. So you are now currently restructuring the underperforming assets. But not only that, each business division should also see improved profitability. So when it comes to the steel, you mentioned about some innovative cost restructuring. And as for the electric furnace, when that comes alive, there could be limitations. And I think that we have to see more improved profitability from other business segments. So can you give us the overall picture of how you're going to meet the RC target?

至於投資資本報酬率，我認為投資資本報酬率是關鍵。所以你們現在正在重組表現不佳的資產。不僅如此，各業務部門的獲利能力也應有所提升。因此，當談到鋼鐵時，您提到了一些創新的成本重組。至於電爐，當它投入使用時，可能會有限制。我認為我們必須看到其他業務部門盈利能力的進一步提高。那麼，您能否向我們全面介紹一下您將如何實現 RC 目標？

Now, [Mr. Choi Dong-Yong] of the Business Strategy will give the answer.

現在，[先生。 《企業戰略報》的崔東永先生將給出答案。

Now I would like to give you at least a long-term or midterm or the revenue growth typically bid into three. So first is the sale infrastructure. So now we have to complete and commission the ongoing plan. And to seek midterm revenue growth by themselves. So for example, as for steel, E&C at Gwangyan will be completed in 2026 and CGR in 2027. As for the infrastructure the Senex E&P, we will ramp up. And in the midstream, so Gwangyang energy terminal number 7 and 8, will go through a ramp-up in 2026. So all of these will contribute to increased revenue.

現在我想給你至少一個長期或中期或收入成長通常分為三個部分。首先是銷售基礎設施。所以現在我們必須完成並啟動正在進行的計劃。並自行尋求中期收入成長。以鋼鐵為例，光岩的工程建設將於 2026 年完工，CGR 將於 2027 年完工。至於 Senex E&P 的基礎設施，我們將會加強。而在中游，光陽能源 7 號和 8 號終端將在 2026 年實現產能提升。所有這些都將有助於增加收入。

And the second category is the energy materials. So there is the ongoing plans at our subsidiaries that was mentioned. So we will continue with the ramp-up. So it is very important to accelerate the stabilization of the production system and the structure. And we have to secure additional new materials and new resources so that we can drive for revenue at the midterm level. Now third category is aligned with our group of strategies to promote new businesses for the future. So in the mid-level, midterm level, we're going to achieve KRW1 trillion on revenue in these new businesses.

第二類是能源材料。這就是我們提到的子公司正在進行的計劃。因此我們將繼續加大力度。因此，加速推進生產體系和結構的穩定十分重要。我們必須確保獲得更多的新材料和新資源，以便能夠在中期推動收入成長。現在第三類與我們推動未來新業務的策略組保持一致。因此，在中期，我們將在這些新業務上實現 1 兆韓元的收入。

Now the second question was regarding to the ROIC improvement. We said that our profit was 69% during our value of pay and as you mentioned in your presentation, you expect to improve the efficiency of our assets, and that is why we are rebalancing or restructuring of the prefunding assets. But with the proceeds, we will reinvent them into the growth of our company, our group. So as for the invested assets, we want to optimize that.

現在第二個問題是關於 ROIC 的改善。我們說過，我們的利潤在支付價值期間為 69%，正如您在演示中提到的那樣，您希望提高我們資產的效率，這就是我們重新平衡或重組預融資資產的原因。但我們將利用這些收益，將其重新改造為我們公司和集團的成長。對於投資資產，我們希望對其進行最佳化。

And when it comes to the returns, we can see two factors. First of all, in the steel business, we want to go for a cost restructuring or innovation amounting to KRW1 trillion. And we want to enhance leadership centering on high-end products so that we can seek our competitiveness and at the same time, drive profitability. And second is in the energy materials sector, we want to stabilize our operations. at the maximum. So through these efforts, we want to respond to the demand in the EV chasm era case situation.

說到回報，我們可以看到兩個因素。首先，在鋼鐵業務方面，我們要進行1兆韓元的成本重組或創新。我們希望加強以高端產品為中心的領導地位，從而尋求競爭力，同時提高獲利能力。第二，在能源材料領域，我們希望穩定我們的營運。最多。因此，透過這些努力，我們希望能夠應對電動車鴻溝時代的情況需求。

So regarding the revenue growth, the steel and energy materials, we're thinking about a low single digit. And as for the energy, we have the CAGR a 40% increase. And what is the relationship between ROIC? As for the secondary (inaudible) materials, we have made investments, and we are not getting any revenue or profit yet so that could have an impact on the asset turnover on our assets.

因此，就收入成長而言，鋼鐵和能源材料的成長速度我們認為將達到較低的個位數。至於能源，我們的複合年增長率為 40%。和ROIC之間是什麼關係？至於二級（聽不清楚）材料，我們已經進行了投資，但尚未獲得任何收入或利潤，因此這可能會對我們資產的資產週轉率產生影響。

So with everything combined, as said by Mr. Chang, ROIC improve -- will improve the asset turnover as well as the operating profit and naturally, the ROIC will go up. And the steel margin is currently abnormal. And the secondary battery material in terms of the investment phase is now -- will now turn into the profitable base in the next two to three years. We have upfront conviction, and that is why we are sharing with you the target. Is there additional price increase then that could be upside as well compared to this very much conservative view of the shareholder return.

因此，正如張先生所說，綜合考慮所有因素，投資回報率 (ROIC) 將會提高，資產週轉率和營業利潤也會提高，自然，投資回報率也會上升。且目前鋼材利潤率已經處於異常狀態。就投資階段而言，二次電池材料將在未來兩到三年內成為獲利基礎。我們有堅定的信念，這就是我們與您分享目標的原因。那麼，與這種非常保守的股東回報觀點相比，價格是否會進一步上漲，也可能是有利的。

(inaudible).

（聽不清楚）。

I have a slightly different question in line. First, also international and Samson coal-fired power plants. In terms of plans perhaps went into operation last year or perhaps it was imminent. In any case, it's about ready to begin operation what kind of impact does it have on the operating profit and on your overall performance.

我有一個稍微不同的問題。首先，還有國際和 Samson 燃煤發電廠。就計劃而言，也許去年就已經開始實施，或者即將實施。無論如何，它是關於準備開始運營，對營業利潤和整體業績有什麼樣的影響。

And I know that POSCO Group reviews its equity shares in this power plant. So what is your strategy on this project? I know that a lot of we've expanded on this project and are there any impairments that have hit your book on this project if they haven't hit your books yet, should we anticipate any losses or impairments that will hit your books in the future? What are some of the impacts that we should anticipate in the future?

而且我知道浦項製鐵集團正在審查其在該發電廠的股權。那麼您對這個專案的策略是什麼？我知道我們在這個專案上進行了大量擴展，如果這個專案還沒有影響到您的帳簿，那麼我們是否應該預見到未來會出現任何損失或損害？未來我們該預見哪些影響？

And the steel market is very challenging. I am very surprised that POSCO was able to turn a profit. But from a short-term perspective, for example, in the first quarter that you were expecting some improvements in cost structure that will turn a profit as well. So can we expect an improvement over the previous quarter.

鋼鐵市場充滿挑戰。我很驚訝浦項製鐵能夠獲利。但從短期角度來看，例如在第一季度，您預計成本結構會有所改善，從而帶來盈利。那麼我們能否期待情況比上一季有所改善呢？

So what are some of the short-term prospect expectations? Is it surprising to see that you're generating any kind of profit in the business under these market circumstances, and in the fourth quarter, I know that you elaborated on this already. POSCO International generated an operating profit, but why did it turn into a loss in the fourth quarter. And among the steel products, what are some of the products that are generating negative profits in your steel product set.

那麼短期前景預期有哪些呢？在這樣的市場環境下，看到您的業務能夠產生利潤，這是否令人驚訝？我知道，在第四季度，您已經對此進行了詳細說明。浦項國際雖然實現了營業利潤，但為何第四季卻轉為虧損？在鋼鐵產品中，有哪些產品產生負利潤？

First, on the second question about the steel market situation. We will ask [Hong Yong-Shik], Head of the Marketing Department at POSCO -- Marketing Office, sorry.

第一，關於第二個問題，鋼材市場狀況。我們會詢問 POSCO 行銷部長 [Hong Yong-Shik]——行銷辦公室，抱歉。

So the steel market situation, everybody knows that it's not right. But compared to our competition, yes, we have made some performance. The reason being because of the downstream process facilities that have been able to generate some profit. I think they serve as a main access. It is in the automotive industry. And because the -- we have a lot of formula agreements, formula-based agreement, that is how we turned a profit, but we are negotiating these contracts, renegotiating these contracts.

因此，每個人都知道鋼鐵市場的狀況不太對勁。但與我們的競爭對手相比，是的，我們已經取得了一些成績。原因在於下游加工設施能夠產生一些利潤。我認為它們是主要通道。它屬於汽車產業。而且因為——我們有很多公式協議，基於公式的協議，這就是我們盈利的方式，但我們正在談判這些合同，重新談判這些合同。

In the domestic market as well for our domestic customers because foreign exchange hikes, the cost that we incurred there is absorbed in customer prices. because we are making products based on raw materials that were purchased with the foreign exchange hikes. We believe that profit-wise, the fourth quarter of last year is going to be the lowest point. And that's why we think there will be an improvement over the last quarter. Again, we believe that the lowest profit point was hit already last -- in the last quarter.

在國內市場，對於我們的國內客戶來說，由於外匯上漲，我們在那裡產生的成本被吸收在客戶價格中。因為我們生產的產品所用的原料都是外匯上漲時購買的。我們認為，從利潤角度來看，去年第四季將是利潤的最低點。這就是我們認為上一季情況會有所改善的原因。我們再次認為，利潤最低點已在上個季度達到。

I think there's another question. Are there any products that are generating negative profit?

我認為還有一個問題。有哪些產品產生負利潤？

It is quite variable by product. So it's difficult to pinpoint which ones are profitable, which ones are not. But wire rods are negative and automotive and famous products are relatively profitable.

根據產品的不同，其變化很大。因此很難確定哪些是獲利的，哪些不是。但線材利潤為負，汽車及名優產品利潤相對較高。

Next is on POSCO International and Samcheok Power Plant. Let's ask Mr. Mr. Oh Young-Da, Infrastructure Business Department Head.

接下來是浦項國際和三陟發電廠。讓我們問問基礎設施業務部部長吳永大先生。

I will respond to that question. Samcheok Power Plant has completed construction, it is in operation. It is not in deficit. However, the costs that went into building this plant is in the books.

我將回答這個問題。三陟發電廠已完工並投入營運。它並不處於赤字狀態。然而，建造這座工廠的成本是有記錄的。

So how is this going to impact the overall group performance and how will it be improved in the future? I think that was just your question. It's in operation, but complete phase construction is not over. So there are some electrical and electrical transmission work that needs to be completed in the next one or two years. And some of that remains a little bit ambiguous. So it's difficult to speak about the future of this project. But from a carbon neutrality perspective and to align with our carbon net zero strategy, we intend to reduce our shares further in this project.

那麼這將如何影響整個集團的表現以及未來將如何改進？我想這正是你的問題。它已投入運營，但全面階段建設尚未結束。因此，有一些電氣和電力傳輸工作需要在未來一兩年內完成。其中有些內容仍然有點模糊。因此很難談論這個項目的未來。但從碳中和的角度來看，為了符合我們的碳淨零策略，我們打算進一步減少我們在該專案中的股份。

POSCO International's fourth quarter performance. I'm not sure that I understand the question fully. The reason it turned -- recorded a deficit in the fourth quarter at POSCO International is, I believe, because -- there was asset impairment involved. I would like to check on this before I respond to you. So Mongduoung Power Plant in Vietnam, this is also -- this also enters the POSCO International accounts. So Mongduoung plant in Vietnam and the hotel in Myanmar, these are some tens of billions of KRW that hit the books and were recognized in the accounts.

浦項國際第四季業績。我不確定我是否完全理解了這個問題。我認為，浦項國際第四季出現虧損的原因是涉及資產減損。在回覆您之前我想先檢查一下這一點。越南的 Mongduoung 發電廠也已計入 POSCO 國際帳戶。因此，越南的蒙多工廠和緬甸的酒店，這些價值數百億韓元的項目都已入帳並被確認。

I think -- if I can elaborate on the Mongduoung project, we agreed to sell this in 2021, but we are awaiting government approval on the sale. And we are receiving dividends on this project. And because we have to pay this back, that has been entered into the book and not what recorded the deficit.

我想——如果我可以詳細說明 Mongduoung 項目的話，我們同意在 2021 年出售該項目，但我們正在等待政府對出售的批准。我們正在從這個項目中獲得紅利。因為我們必須償還這筆錢，所以這筆錢已經記在帳簿上，而不是記錄赤字。

And on the Samcheok coal-fired power plant, we have no official statement to give at the moment. But based on some of the recent progress that we've made on coal-fired power plants, what is our group's position and our stance. I think that has been very clear. So that's why we'll take the next question now.

關於三陟燃煤電廠，我們目前還沒有官方聲明。但是根據我們最近在燃煤電廠方面取得的一些進展，我們集團的立場和態度是什麼。我認為這一點已經非常清楚了。這就是我們現在要回答下一個問題的原因。

[Eugene Lee, Eugene Security].

[尤金李，尤金安全]。

I'm Eugene Lee from Eugene Security. I have three questions. Last year, at the end of last year, China says that it's going to be imposed on import quota on the US regarding the battery. And as for the lithium plant number 1, I know that it's also in partnership with China. So I would like to know how things are going to evolve in the future regarding this matter.

我是 Eugene Security 的 Eugene Lee。我有三個問題。去年，也就是去年底，中國表示將對美國實施電池進口配額。至於一號鋰工廠，我知道它也與中國合作。所以我想知道這件事將來會如何發展。

And the second is regarding the electric steel plate to import. So as for India as well as China, there are manufacturing a lot of electric steel plate. I know that they are very good, but I would like to know if that would have an impact on our profitability.

第二是關於電工鋼板的進口。因此，印度和中國都生產大量的電工鋼板。我知道他們非常優秀，但我想知道這是否會對我們的獲利能力產生影響。

And the third is regarding the steel plates. So if there is filing again regarding steel plates, I think that there could be a room for us to increase the prices. I would like to know about the price negotiations ongoing with the shipbuilding sector. And I would like to -- I also note that there are some bonded areas for the shipbuilding as well that they do not pay taxes. So can you elaborate a little bit on that as well?

第三是關於鋼板。因此，如果再次對鋼板進行備案，我認為我們還有提高價格的空間。我想了解與造船業正在進行的價格談判的情況。我還想指出，也有一些造船保稅區，這些保稅區不需要繳稅。那你能詳細說明一下嗎？

Regarding the factory materials. So Mr. Kim Jun-Hyung from the Energy Materials Business that is going to give the answer. And regarding the second and the third, Mr. Hong from Marketing Strategy will give the answer.

關於工廠材料。能源材料業務部的金俊亨先生將給出答案。而關於第二和第三點，市場策略部的洪先生會給出答案。

So regarding lithium, China is not really the main player with regards to listing going to the US because there is Chile and Argentina that are sufficiently meeting the demand of the US. So when it comes to the lithium and the export control lithium is not -- the impact is going to be minimal. But what is important is nickel and graphite are going to regulate only to companies that are based in China or Chinese companies, it's very much a different story. For example, in China actually regulates the companies that are abroad. The nickel companies and the anode companies cannot export, so that could be a problem. But regarding this matter, the FEOC regulations are not fully defined yet. So I think that it is too early to make any assumptions.

因此，就鋰而言，中國並不是進入美國的主要參與者，因為智利和阿根廷已經充分滿足了美國的需求。因此，當談到鋰時，鋰的出口管制不會受到影響——影響將是微不足道的。但重要的是，鎳和石墨將僅對位於中國或中國的公司進行監管，這是一個完全不同的故事。例如，中國實際上對海外公司進行監管。鎳公司和陽極公司無法出口，所以這可能是一個問題。但對於這一問題，FEOC 的規定尚未完全明確。所以我認為現在做出任何假設還為時過早。

Regarding the electric plate, steel plate operating profit, there are different types of electric plate. So there is a dual product that goes into transmitters of converters, but there is also another type that is used for the EV vehicles. So compared to other carbon sales, they show higher profitability. But the thing is, that when it anode products, if we cannot only use it for the EV or the vehicles. So as for the other types because of the oversupply from the China, the profitability is very low. So all of these three different types show different levels of profitability.

就電氣板塊、鋼鐵板塊的營業利潤而言，電氣板塊有不同的類型。因此，有一種雙重產品可用於轉換器的發射器，但還有另一種類型的產品可用於電動車。因此與其他碳銷售相比，它們的獲利能力更高。但問題是，當它是陽極產品時，我們不能只將它用於電動車或汽車。至於其他類型，由於中國供應過剩，獲利能力非常低。因此，所有這三種不同類型都表現出不同的獲利水準。

And when it comes to the AD complaint filed for steel plate, can we increase the prices? We believe that prices can be increased at actually. And of course, the AD filing naturally price increase is not something that we should not -- we should be very sure of, because it could have also an impact on the upstream business as well. So I think that we can look forward to more normalization of the abnormal prices.

還有針對鋼板的反傾銷投訴，能不能提高價格？我們相信價格實際上可以上漲。當然，反傾銷申報自然會導致價格上漲，這是我們不應該做的事情——我們應該非常確定，因為它也可能對上游業務產生影響。因此我認為我們可以期待異常價格進一步正常化。

And when it comes to negotiating prices with the shipbuilding sector, I think that this could give us an upper hand or more advantage. But as the shipbuilding sector, our shipbuilding companies did not pay taxes for the bonded areas. So the impact is also minimal as well. So everything is currently very much complicated, but the filing could I think, would lead to increased prices. That is for sure. Yes. Are there any additional questions?

當與造船業談判價格時，我認為這可以讓我們佔上風或更多優勢。但作為船舶產業，我們的船舶企業並沒有為保稅區繳稅。所以影響也很小。因此，目前一切都非常複雜，但我認為提交申請可能會導致價格上漲。這是肯定的。是的。還有其他問題嗎？

There are no further questions.

沒有其他問題了。

I'd like to thank all the investors for participating today. And with this, I'd like to close the 2024 POSCO Holdings earnings call. Thank you.

我要感謝今天所有投資人的參與。至此，我想結束 2024 年 POSCO 控股收益電話會議。謝謝。

Statements in English on this transcript were spoken by an interpreter present on the live call. The interpreter was provided by the company sponsoring this event.

本記錄中的英文陳述是由現場翻譯人員宣讀的。翻譯由贊助此活動的公司提供。