Posco Holdings Inc (PKX) 2025 Q4 法說會逐字稿

Greetings. I head up the Finance and IR Division at POSCO Holdings. My name is Kim Seung-jun. This is POSCO Holdings' 2025 full-year earnings release. I'd like to welcome the participants, investors, and analysts. Thank you.

問候。我擔任浦項控股公司財務和投資者關係部門的負責人。我的名字是金承俊。這是浦項控股2025年全年業績報告。我謹代表全體與會者、投資人和分析師，歡迎各位的到來。謝謝。

In 2025, we experienced global trade policy shifts and economic slowdown. It was a challenging environment. We put our effort into protecting our short-term profits. At the same time, as a business group, we built a foundation for future growth.

2025年，我們經歷了全球貿易政策轉變和經濟放緩。這是一個充滿挑戰的環境。我們致力於保護短期利潤。同時，作為一個商業集團，我們為未來的發展奠定了基礎。

2025 consolidated revenues declined 5% year-on-year, recording KRW69.1 trillion. Operating profit declined 16% to KRW1.8 trillion. While POSCO's OP grew from 3.9% to 5%, we failed to meet our goals due to the accidents at POSCO EMC that led to construction halt as well as the ramp-up costs that enter the books for the new lithium and precursor plants that were commissioned at the end of 2024.

2025 年合併收入年減 5%，錄得 69.1 兆韓元。營業利潤下降16%至1.8兆韓元。雖然浦項製鐵的營業利潤率從 3.9% 增長到 5%，但由於浦項製鐵 EMC 的事故導致建設停工，以及 2024 年底投產的新鋰和前驅體工廠的啟動成本，我們未能實現目標。

The fourth quarter profits were especially weak. The reason was communicated in last quarter's release. Pohang HR Plant and other facilities have gone into major repair schedules, triggering production volume cuts. Also, large volume imports that flooded our market prior to the preliminary AD tariffs on HR products were still being consumed, causing a temporary drop in sales volume.

第四季利潤尤其疲軟。原因已在上一季的公告中公佈。浦項HR工廠和其他設施已進入大規模維修計劃，導致產量下降。此外，在對人力資源產品徵收初步反傾銷稅之前湧入市場的大量進口產品仍在被消費，導致銷售暫時下降。

There's more. The divestment of PZS's plant in China caused employee compensation to enter our books, too. This is in addition to the loss incurred by construction stop issued at POSCO EMC, so sizable one-time costs were accounted for all at once.

還有更多。PZS在中國的工廠被剝離，也導致員工補償計入了我們的帳目。除此之外，由於 POSCO EMC 停工造成的損失，一次性的大筆費用也全部計入。

In 2026, we will likely serve up some significant inflection points for POSCO Holdings. First, we have for some time studied various ways to go overseas in steel. This year, we'll see some specific actions. Last year, we identified strategic partners, signed MOUs with the US and India and JV partners to begin negotiations. With these partners, we're in final stages discussing the terms of our action plan. So this year, we'll be able to witness some action on our long-sought entry strategies into overseas markets. In parallel, we intend to strengthen our core by focusing on high-margin products in the domestic market.

2026年，浦項鋼鐵控股公司可能會迎來一些重要的轉捩點。首先，我們已經研究了一段時間以來鋼鐵業走向海外的各種途徑。今年，我們將看到一些具體的行動。去年，我們確定了戰略合作夥伴，並與美國、印度和合資夥伴簽署了諒解備忘錄，開始進行談判。我們正在與這些合作夥伴就行動計畫的條款進行最後的討論。所以今年，我們將能夠看到我們長期以來夢寐以求的進軍海外市場的策略取得一些進展。同時，我們計劃透過專注於國內市場的高利潤產品來加強我們的核心競爭力。

Secondly, asset-based lithium operations will begin to generate profit. Our Argentina lithium plant one will ramp up and begin commercial operation this year. sign deals with Australia's Regina and Mount Marion mines. The acquisition procedures will complete in the second half of the year, making immediate contributions to group-level profits.

其次，以資產為基礎的鋰礦開採業務將開始產生利潤。我們在阿根廷的一號鋰工廠將於今年提高產能並開始商業營運。此外，我們也與澳洲的里賈納礦和馬里恩山礦簽署了協議。收購程序將於今年下半年完成，並立即為集團層級的利潤做出貢獻。

In the past several years, we completed Phase 1 of our investments, involving the purchase of lithium resources and plant building and ramp-up. With commercial production around the corner, lithium prices have recovered just in time. We're excited to enter the next phase of our business when we will begin to generate real profits.

過去幾年，我們完成了第一階段的投資，包括購買鋰資源、工廠建設和產能提升。隨著商業化生產即將到來，鋰價也及時回升。我們很高興即將進入業務的下一個階段，屆時我們將開始產生真正的利潤。

By business model, an examination of the sequence of benefits accrued to parties impacted by the lithium price hikes illustrate that lithium ores, aka spodumene, so Australian hard rock lithium producers, will be the first to enjoy the benefits. Next will be the brine-based lithium business in Argentina. Then the lithium processors, namely PPLS, who process the imported raw materials will be the last to enjoy the impact.

從商業模式來看，考察受鋰價上漲影響的各方所獲得的利益順序可以發現，鋰礦石（又稱鋰輝石，即澳洲硬岩鋰生產商）將率先享受這些利益。接下來將是阿根廷的鹽水鋰業務。那麼，加工進口原料的鋰加工企業，即PPL​​，將是最後受益的。

Third, value chain expansion of the infrastructure business will drive up margins. Therefore, we believe 2026 will see the impact of portfolio management. And as long as we can keep the price at our current levels, we'll be able to see more profit. As a result of the infrastructure business expansion, again, we'll see the impact of our portfolio management reflected in our financial statements this year.

第三，基礎設施業務價值鏈的擴張將推高利潤率。因此，我們認為2026年將見證投資組合管理的影響。只要我們能將價格維持在目前的水平，就能獲得更多利潤。由於基礎設施業務的擴張，我們將在今年的財務報表中再次看到投資組合管理的影響。

Australia's Cenex Energy built out its expansion facilities for gas production in October, and in November, we acquired new palm oil production farms in Indonesia. The return on these investments will be fully reflected in our 26th annual performance.

澳洲 Cenex Energy 公司於 10 月完成了天然氣生產的擴建設施建設，11 月份，我們在印尼收購了新的棕櫚油生產農場。這些投資的回報將完全體現在我們的第26屆年度業績報告中。

Also, last year, PCSS plant in China that registered 200 billion won in red ink recently was approved by the Chinese government for divestment. Once the procedure runs through, it'll be removed from our consolidated books.

此外，去年，PCSS在中國的一家工廠（最近虧損2,000億韓元）獲得了中國政府的撤資批准。一旦流程完成，它將從我們的合併帳簿中移除。

Please understand that we're also aware that regardless of the rosy picture, we also have other challenges to confront. Stagnant domestic steel demand, formation of global blocks, tariff wars that restrict trade, and the weakening won currency that has the effect of driving up costs and the risk of lithium price fluctuation, to name a few. This year, by taking advantage of the various positive factors on our doorstep, we hope to turn the tide that held us back in the past few years. So we hope this year will prove to be the inflection point.

請理解，我們也意識到，儘管前景一片光明，但我們仍然面臨其他挑戰。國內鋼鐵需求停滯不前、全球集團形成、限制貿易的關稅戰以及韓元貶值導致成本上升和鋰價波動風險增加，僅舉幾例。今年，我們希望利用各種有利因素，扭轉過去幾年阻礙我們發展的局面。所以我們希望今年能成為一個轉捩點。

Thank you. Now, I'll invite the Head of IR to deliver our 2025 performance results and '26 business plan.

謝謝。現在，我將邀請投資者關係主管報告我們 2025 年的業績結果和 2026 年的業務計劃。

Page 3. 2025 consolidated OP decreased KRW347 billion won year-on-year, recording KRW1.8 trillion, with consolidated EBITDA of KRW5.9 trillion. POSCO's OP grew from quarter one to quarter three. Quarterly OP was on the rise, with a slight decline in quarter four to KRW12.7 billion.

第 3 頁。 2025 年合併營業利潤年減 3,470 億韓元，錄得 1.8 兆韓元，合併 EBITDA 為 5.9 兆韓元。浦項鋼鐵的營業利潤從第一季到第三季有所增加。季度營業利潤呈上升趨勢，第四季略為下降至 127 億韓元。

First, POSCO EMC had construction stoppage and bad debt expenses, recording KRW190 billion of quarterly deficit. Second, PCSS divestment is ongoing, and employee compensation and other temporary costs were administered, deficit totaling KRW131.9 billion. And end of December, Chinese merger approval was completed, and the sale will be completed within Q1. Third, POSCO's OP recorded KRW337 billion, decreasing from Q3.

首先，POSCO EMC遭遇了施工停工和壞帳支出，季度虧損達1,900億韓元。其次，PCSS 的撤資仍在進行中，員工補償和其他臨時費用也已支付，赤字總計達 1,319 億韓元。12月底，中國方面完成了併購審批，交易將於第一季完成。第三，浦項鋼鐵的營業利潤為3,370億韓元，較第三季下降。

Off season is one factor, but another factor is stockpiling of cheap imports prior to the hot-rolled 80 measures. And we decreased our sales volume by 6% quarter on quarter. Also, Pohang hot-rolling line is under major maintenance, so production was adjusted by 4%. With these efforts, market inventory of low-priced imports are balancing out, and from quarter one, we expect production and sales volume to return to previous levels.

淡季是一個因素，但另一個因素是，在實施熱軋 80 措施之前，大量廉價進口商品被囤積起來。我們的銷售額季減了6%。此外，浦項熱軋生產線正在進行大修，因此產量調整了 4%。透過這些努力，低價進口商品的市場庫存正在趨於平衡，我們預計從第一季開始，產量和銷售量將恢復到先前的水平。

In 2026, as our CFO mentioned, restructuring of businesses in the red will show the impacts, and Argentina lithium Phase 1 will begin commercial production, and we can expect RBM profits to improve. Last year, we acquired a palm farm, expanded capacity of Australia's Cenex gas fields, and these new investments will also contribute to profits.

正如我們的財務長所提到的，2026 年，虧損業務的重組將顯現其影響，阿根廷鋰礦第一期工程將開始商業化生產，我們可以預期 RBM 的利潤將會改善。去年，我們收購了一家棕櫚農場，擴大了澳洲 Cenex 天然氣田的產能，這些新的投資也將有助於獲利。

Page 4. This year, group-wide serious injury cases increased to 9. POSCO Group is enhancing safety systems, increasing employee participation, and boosting operability on the ground as priority goals. focusing our best efforts to foster a safe workplace. Last year, we established the Group Safety Innovation TF Team as CEO direct report and launched POSCO Safety Solution to strengthen safety expertise.

第4頁。今年，集團範圍內發生的嚴重傷害案件增加到 9 起。浦項鋼鐵集團將加強安全體系建置、提高員工參與度和提升現場作業效率作為優先目標，致力於營造安全的工作場所。去年，我們成立了集團安全創新工作小組，直接向執行長匯報，並推出了浦項製鐵安全解決方案，以加強安全專業知識。

Furthermore, we applied world-class safety consulting techniques to supplier companies. Also, we have outside specialized organizations regularly perform unscheduled inspections. We will continue to share our safe workplace metrics, improvements, and actions with you transparently each quarter.

此外，我們也向供應商公司應用了世界一流的安全諮詢技術。此外，我們也會定期委託外部專業機構進行不定期檢查。我們將繼續每季以透明的方式與您分享我們的安全工作場所指標、改善措施和行動。

Page 5. In 2026, I will describe the key business activities in steel. In 2026, for domestic steel, we will develop decarbonization technologies and promote high-margin products to strengthen our business. In overseas steel, we will establish JVs to drive our end-to-end localization growth strategy. First, to address the carbon-reduced steel market, we will begin construction of the Hyrex demo plant in Pohang. Also, Guangyang EAF will continue operation in June.

第5頁。2026年，我將描述鋼鐵業的關鍵業務活動。2026年，我們將針對國內鋼鐵業，開發脫碳技術，推廣高利潤產品，以增強我們的業務實力。在海外鋼鐵領域，我們將建立合資企業，以推動我們的端到端在地化成長策略。首先，為了滿足低碳鋼市場需求，我們將在浦項開始建造 Hyrex 示範工廠。此外，廣陽電弧爐將於6月繼續運轉。

To enhance our profit structure in the domestic market, we will pursue growth in premium steel and specialized products. We will advance specialized capacity at each steelworks. At Pohang Works -- Pohang Works will lead hydrogen, LNG, and power grid innovation. as leading mill of energy and works will be specialized for future mobility markets. We will continue to manage these aspects to increase our mix. We will continue to leverage technology to structurally cut costs under Cost Innovation 2030. Finally, 2026 will be the year we act on overseas expansion. In the US, we have the Hyundai Motor Group EAF integrated mill project for which we confirmed share participation. Cooperation with Cleveland Cliffs and the India integrated steel mill project with JSW are also ongoing.

為了提升我們在國內市場的獲利結構，我們將致力於發展高端鋼材和特種產品。我們將提升各鋼鐵廠的專業化產能。浦項工廠－浦項工廠將引領氫能、液化天然氣和電網創新，成為領先的能源工廠，並將專注於未來出行市場。我們將繼續管理這些方面，以豐富我們的產品組合。我們將繼續利用技術，根據「成本創新 2030」計劃從結構上降低成本。最後，2026年將是我們採取行動進行海外擴張的一年。在美國，我們有現代汽車集團的電弧爐綜合軋鋼廠項目，我們已確認參股。目前，我們正與克利夫蘭克里夫斯公司合作，並與JSW公司合作在印度建造一體化鋼鐵廠計畫。

Page 6. First, POSCO Argentina's ramp-up is near its completion stage. Generally, South American brine-based plants take two to three years to ramp up, but we have worked with the goal of completing it within a year. Major parts that needed to be replaced have some supply issues, delaying normal operation for two to three months, but by March end, we will boost utilization rate to more than 60%. And from July to August, we will be in full operation, meaning it will be our first year of commercial production.

第6頁。首先，POSCO Argentina 的產能提升已接近完成階段。一般來說，南美洲的鹽水發電廠需要兩到三年才能投產，但我們的目標是在一年內完成。需要更換的主要零件存在一些供應問題，導致正常營運延遲兩到三個月，但到三月底，我們將把利用率提高到 60% 以上。從七月到八月，我們將全面投入運營，這意味著這將是我們商業化生產的第一年。

Recently, lithium prices increased substantially. Argentina plant owns brine assets, so we have a lot of operating leverage in the face of lithium price hikes. In Q1, we still have volumes remaining for low-priced orders, and the utilization rate is rather low, but it will rapidly increase thereafter, and profit improvements are in sight. Furthermore, in the first few years of commercial production, production efficiency improves gradually, boosting cost competitiveness. So we believe this can be the beginning of a positive cycle.

近期，鋰價大幅上漲。阿根廷工廠擁有鹽水資產，因此在鋰價上漲的情況下，我們擁有很大的營運槓桿。第一季度，我們仍有低價訂單的產量，產能利用率也比較低，但之後產能利用率會迅速提高，利潤改善指日可待。此外，在商業化生產的最初幾年，生產效率會逐步提高，從而增強成本競爭力。所以我們相信這會是良性循環的開始。

As for POSCO Argentina Phase 2, considering the brine charge and evaporation schedule, construction is planned to be completed by Q4. Once completed, technical grade lithium carbonate production capacity will be at 25,000 tons per annum. Recently, we acquired LIS brine asset at a competitive price, which will serve as a valuable asset for future expansion.

至於 POSCO Argentina 二期工程，考慮到鹽水注入和蒸發計劃，預計第四季度完成建設。建成後，技術級碳酸鋰的年產能將達到 25,000 噸。最近，我們以具有競爭力的價格收購了 LIS 鹽水資產，這將成為未來擴張的寶貴資產。

Next, POSCO Pilbara Lithium Solution. PPLS's major clients include POSCO Future M and other domestic and North American customers in its sales structure. However, demand from these customer base has been slowing down, requiring the company to diversify its customers. European and global top-tier OEM companies are among the new customers that we are working to secure. And there are some positive developments.

接下來是浦項製鐵皮爾巴拉鋰解決方案。PPLS 的主要客戶包括 POSCO Future M 以及其銷售結構中的其他國內和北美客戶。然而，這些客戶群的需求一直在放緩，這迫使公司實現客戶多元化。我們正在努力爭取歐洲和全球頂尖的OEM企業作為新客戶。也出現了一些正面的進展。

Regarding the recent lithium price hike, PPLS imports spodumene from Australia to produce lithium. Recently, spodumene price increase has been higher than lithium price increase with the spodumene to lithium hydroxide price ratio reaching 11%. Therefore, the higher lithium price has not been an immediate positive factor, and there are some temporary difficulties with margin spread. But in the long term, we expect positive impacts.

針對近期鋰價上漲的情況，PPLS 從澳洲進口鋰輝石來生產鋰。最近，鋰輝石價格的漲幅高於鋰價格的漲幅，鋰輝石與氫氧化鋰的價格比率達到了 11%。因此，鋰價上漲並沒有立即帶來正面影響，利潤空間也出現了一些暫時的困難。但從長遠來看，我們預計會產生正面影響。

Third, the JV investment with Australia's mineral resources. Currently, foreign investment approval and merger filing is currently underway. Once they are complete, the final contract will take place near March, and the payment will take place within Q2. Therefore, profits from this mine will be included from the second half through gains on equity method valuation.

第三，與澳洲礦產資源進行合資投資。目前，外商投資審批和合併申請正在進行中。一旦所有工作完成，最終合約將在三月左右簽訂，付款將在第二季進行。因此，該礦山的利潤將從下半年開始透過權益法估值收益計入。

Once investment is approved for the next four years, the spodumene concentrate price we estimated was around $1,000 per ton, but currently the price rose to more than $2,000. Considering the market situation, we expect the mine to immediately begin contributing to gain on equity method valuation. And next year, the impact of the price hike will be bigger. For production volume cost -- cash cost, and other basic details, please refer to (inaudible) website. Meanwhile, to verify lithium DLE, direct lithium extraction technology, we are investing in the technology.

一旦未來四年的投資獲得批准，我們估計鋰輝石精礦的價格約為每噸 1000 美元，但目前價格已上漲至每噸 2000 美元以上。考慮到市場情況，我們預計該礦將立即開始對權益法估值中的收益做出貢獻。明年，價格上漲的影響將會更大。有關生產量成本－現金成本和其他基本詳情，請參閱（聽不清楚）網站。同時，為了驗證鋰DLE（直接鋰萃取技術），我們正在投資這項技術。

POSCO (inaudible) Metal was the first to begin normal operation, and since October 2025, it has sustained EBITDA surplus. Black mass price is on the rise, and the supply and demand is tight. But it has confidence in its stable production technology and is discussing opportunities to expand business with global companies. Now for solid-state battery, we are also active on the scene with robust technology development. POSCO Future M is working with the US solid-state battery maker, factorial, making strategic investment. And POSCO JKSS recently developed commercialization technology for sulfide solid-state electrolyte mass synthesis method, which gained recognition.

浦項鋼鐵（聽不清楚）金屬是第一個恢復正常運作的公司，自 2025 年 10 月以來，一直維持 EBITDA 盈餘。黑彌撒價格上漲，供需緊張。但該公司對其穩定的生產技術充滿信心，並正在與全球公司探討拓展業務的機會。現在，在固態電池領域，我們也憑藉著強大的技術研發實力積極參與其中。POSCO Future M 正與美國固態電池製造商 Factorial 合作，進行策略性投資。浦項製鐵JKSS公司近期開發了硫化物固態電解質批量合成法的商業化技術，並獲得了認可。

Page 7. Portfolio management update. 2025 was the second year of restructuring. Including the divestment of all NSC shares, 28 projects were completed, generating cash of KRW1.1 trillion. Thus, since 2024, we have generated cash cumulative of KRW1.8 trillion. We aim to continue restructuring 55 additional projects by 2028. This will generate KRW1 trillion of cash.

第7頁。投資組合管理更新。 2025年是重組的第二年。包括出售所有 NSC 股份在內，共完成了 28 個項目，產生了 1.1 兆韓元的現金。因此，自 2024 年以來，我們累積產生了 1.8 兆韓元的現金。我們的目標是到 2028 年再完成 55 個專案的重組。這將產生1兆韓元的現金收入。

Page 8. CapEx administration and plan for this year. Last year, RBM Phase 1 investment was nearly completed. Thus, the total consolidated CapEx administered fell to KRW7 trillion from KRW9 trillion in 2024. This year, in addition to the lithium investment, we have also reflected the budget for upstream investment overseas, which will temporarily increase the CapEx size.

第8頁。今年的資本支出管理和計劃。去年，RBM一期投資項目已接近完成。因此，2024 年管理的合併資本支出總額從 9 兆韓元降至 7 兆韓元。今年，除了鋰礦投資外，我們還增加了海外上游投資預算，這將暫時增加資本支出規模。

Next, performance by operating companies. First, POSCO. POSCO's operating profit improved from the previous year with the operating margin ratio 5.1%. So we believe that our profitability enhancement has taken place. Q4 price increased from Q3, but coal unit price rose, leading to high raw material prices. So the mill margins fell moderately on quarter.

接下來，分析各營運公司的績效。首先是浦項製鐵。浦項製鐵的營業利潤較上年提高，營業利益率為 5.1%。因此，我們認為獲利能力的提升已經實現。第四季價格較第三季上漲，但煤炭單價上漲，導致原物料價格高漲。因此，工廠利潤率較上季略有下降。

The low-priced import market inventory adjustment efforts led to sales volume falling to 7.7 million tons. putting pressure on profits. But this year's Q1 will see sales volume return to previous level years, and we plan to raise the selling price of some products. The effect of price increase will show from Q2.

低價進口市場庫存調整措施導致銷售量下降至770萬噸，利潤面臨壓力。但今年第一季的銷售額將恢復到往年的水平，我們計劃提高部分產品的售價。價格上漲的影響將從第二季開始顯現。

In 2026, we expect EU and other countries to strengthen protectionist policies, and challenges will continue. But by expanding sales of high-margin strategic products and accelerating global expansion strategies, we will do our best to continue to turn profits.

預計到 2026 年，歐盟和其他國家將加強保護主義政策，挑戰也將持續存在。但我們將透過擴大高利潤策略產品的銷售和加快全球擴張策略，盡力繼續實現獲利。

Page 9. Overseas Steel. As for Overseas Steel profits, despite a weak global market, we optimized our marketing strategy and cut costs, improving our profitability. PTKP in Indonesia expanded exports to high-margin European markets, which improved profit structure. And POSCO Maharashtra in India increased ratio of auto sheet sales. (inaudible) and Vietnam also shifted to profits in 2025. But if you look at Q4, it showed KRW135.9 billion of deficit. This is mainly from PCSS, which is undergoing divestment. It will be excluded from consolidated data in 2026, which will lead to decrease in deficits.

第9頁。海外鋼鐵公司。至於海外鋼鐵的利潤，儘管全球市場疲軟，但我們優化了行銷策略並削減了成本，提高了獲利能力。印尼PTKP擴大了對高利潤歐洲市場的出口，從而改善了利潤結構。印度浦項鋼鐵公司馬哈拉施特拉邦分公司提高了汽車板材的銷售比例。 （聽不清楚）越南也轉向獲利，預計到2025年將獲利。但如果你看一下第四季度，你會發現赤字高達1359億韓元。這主要來自 PCSS，該公司正在進行資產剝離。2026 年，該項數據將被排除在綜合數據之外，這將導致赤字減少。

Page 10, POSCO Future M. Last year, energy materials, including CAM and AAM, saw revenue decline from slowdown in EV demand. But by boosting efficiency and cost-cutting, we kept the level of operating loss similar to the previous year.

第 10 頁，POSCO Future M。去年，由於電動車需求放緩，包括 CAM 和 AAM 在內的能源材料收入下降。但透過提高效率和削減成本，我們使營業虧損水準與上一年基本持平。

Next, POSCO International. In 2025, energy and materials trading both demonstrated higher OP, recording strong performance. Last October, Australia's Cenex Energy production expansion was completed; and in November, Indonesia Palm Firm was acquired, which will contribute to additional profits this year with forecasts for profit growth.

接下來是浦項國際公司。2025年，能源和材料交易均表現出更高的營運利潤率，取得了強勁的業績。去年十月，澳洲 Cenex Energy 的生產擴建工程竣工；十一月，公司收購了印尼棕櫚公司，預計今年將帶來額外利潤，並有望實現利潤成長。

Next, page 14, POSCO EMC. Last year, the POSCO EMC had the (inaudible) accident loss recognition, additional cost from suspension of construction, and losses from overseas projects. These one-off costs and bad debt expenses were reflected, recording a sizable deficit. However, we anticipate a turnaround to profit in 2026.

接下來，第 14 頁，POSCO EMC。去年，浦項製鐵EMC確認了（聽不清楚）事故損失、因停工造成的額外成本以及海外專案損失。這些一次性成本和壞帳支出都已反映在帳面上，導致出現相當大的赤字。不過，我們預計到 2026 年將轉虧為盈。

This concludes the overview of POSCO Holdings' performance. We will now have Q&A. Thank you.

以上是浦項控股公司業績的概述。接下來是問答環節。謝謝。

(Operator Instructions) Hyundai Motor Securities, [Park Hyun-wook].

（操作說明）現代汽車證券[樸賢旭]

Hello, my name is Ms. Park. Thank you very much for this opportunity to pose a question. According to your presentation, POSCO's performance is looking pretty good this year. I have three questions.

您好，我叫樸女士。非常感謝您給我這個提問的機會。根據你的報告，浦項鋼鐵今年的表現看起來相當不錯。我有三個問題。

The first one is regarding the steel market outlook. In the first half in automotive and shipbuilding, major demand industries, what are some of the negotiations that you're looking forward to? What do you expect? And some of the Japanese and Chinese HR products have posed some challenges last year, and some of the impact of those products will manifest in the first half of this year. When will we begin to see POSCO's market share increase?

第一個問題是關於鋼鐵市場前景的。在汽車和造船等主要需求產業中，上半年有哪些談判是您期待的？你期望什麼？去年，一些日本和中國的HR產品帶來了一些挑戰，這些產品的一些影響將在今年上半年顯現出來。我們什麼時候才能看到浦項製鐵的市佔率成長？

Secondly, lithium prices have been rising significantly. So it's about $18,000. How do you forecast the lithium prices for the rest of this year? And based on current price levels, Argentina's Salt Lake as well as Hard Rock Lithium, what do you think about their prospects? And this year, I think some of the construction is continuing. Currently, when can we expect to hit [VEP]?

其次，鋰價一直在大幅上漲。所以大概是18000美元。您如何預測今年剩餘時間內的鋰價走勢？根據目前的價格水平，您認為阿根廷鹽湖鋰礦和硬岩鋰礦的前景如何？今年，我認為部分建設工程仍在繼續。目前，我們預計何時能夠達到[VEP]？

Third question. You have invested, as POSCO Holdings, in lithium mines. You're also investing in India and North America. So there are a lot of sizable investments being made. But I think there's still lingering concern about HMM acquisition in the market. So we are watching this. We'd be really curious to hear what your position is. That's all of my questions.

第三個問題。您以浦項製鐵控股公司的名義投資了鋰礦。您還在印度和北美進行投資。因此，有許多數額可觀的投資正在進行中。但我認為市場對 HMM 的收購仍有一絲擔憂。所以我們正在關注此事。我們很想知道您的立場是什麼。我的問題就這些了。

My name is (inaudible), Marketing Strategy Officer at POSCO. So in the demand industry, such as automotive and shipbuilding, you asked about the market outlook. Here's my answer. The steel market this year, first on global steel market, we'll see some appeasement from China. And because of some of the other expansion plans, I think we'll see some improvement. But we'll see some differences by region.

我叫（聽不清楚），是浦項製鐵的市場策略官。所以，在汽車和造船等需求強勁的產業，您詢問了市場前景。我的答案如下。今年全球鋼鐵市場將首先看到來自中國的緩和措施。由於其他一些擴張計劃，我認為我們會看到一些改善。但不同地區之間還是會有一些差異的。

In China, real estate market is still in a recession. So this year, still demand is likely to continue to decrease. So they will experience a negative growth. But in Europe and the United States, they have already hit their base point. So we believe that they will be recovering. But because of the policy uncertainties, whether demand will actually increase, that we'll have to wait and see.

在中國，房地產市場仍處於衰退期。因此，今年需求可能仍將持續下降。因此，它們將出現負增長。但在歐洲和美國，它們已經達到了基準點。所以我們相信他們會康復的。但由於政策存在不確定性，需求是否真的增加，我們只能拭目以待。

In the emerging economies in India and the ASEAN countries, we will see some strong demand increases. In India in particular, because they're increasing manufacturing as well as infrastructure building, I think we'll see strong growth signals in '26 as well. In domestic markets, we'll see some disparities by industry as well.

在印度和東協等新興經濟體，我們將看到一些強勁的需求成長。尤其是在印度，由於製造業和基礎設施建設都在不斷成長，我認為我們在2026年也會看到強勁的成長訊號。在國內市場，我們也會看到不同產業之間存在一些差異。

In shipbuilding and defense as well as power industries, we'll see some strong growth continue. But in home electronics and construction, we will continue to experience recession. In automobiles, tariffs and some of the sharp demand decreases will continue to pose challenges on them and so there will be a little bit more time -- there will have to be a little bit more time before we can see recovery.

造船、國防以及電力產業將持續保持強勁成長。但家用電子產品和建築業仍將持續衰退。在汽車產業，關稅和一些急劇的需求下降將繼續為汽車產業帶來挑戰，因此還需要一些時間——我們需要更多時間才能看到復甦。

On price negotiations with the auto OEMs, since last year, tariffs have become an issue. So against the negotiation formula, they are asking for additional discounts. We are going to try to stick to the formula as much as possible. For shipbuilding companies, because they have a stable supply of orders and because they are trying to dominate or take a larger share of the market, we will take that into consideration when we negotiate with them.

自去年以來，關稅問題已成為與汽車原始設備製造商進行價格談判的問題。因此，他們違背談判原則，要求額外折扣。我們將盡量堅持既定方案。對於造船公司而言，由於它們訂單供應穩定，並且正試圖佔據市場主導地位或獲得更大的市場份額，因此我們在與它們談判時會考慮到這一點。

For the out-rolled AD tariffs, what kind of impact can we expect was your question, I believe. I believe the flat products have seen a decrease of about 300,000 tons in the fourth quarter against the third quarter of last year. But we believe that the flooding of these products into our market has come to an end. And by March or April, we'll be increasing our selling prices. And the impact of these raised prices, we'll begin to see them in the second quarter and beyond. So we'll continue to make these kinds of efforts.

我想，你的問題是，對於已經推出的反傾銷關稅，我們可以預期會產生什麼樣的影響。我認為，與去年第三季相比，第四季扁平材產品的產量減少了約30萬噸。但我們認為，這些產品湧入市場的局面已經結束了。到三月或四月，我們將提高售價。這些價格上漲的影響，我們將在第二季及以後開始顯現。所以我們會繼續做出這類努力。

My name is (inaudible), Energy Materials Business Management Office. On lithium price, IBs have refrained from publishing prices. But one has forecast $20, so it'd be similar to the current price. And Chinese inventory, it's not increasing. This price doesn't reflect an effort to increase that inventory. It's actually reflecting actual demand. So for about two years, lithium prices have fluctuated, and so we went through a pretty harsh cycle. I think the lowest point was in 2018, and then we saw it go up continuously.

我是（聽不清楚），能源材料業務管理辦公室。關於鋰價，交易所一直避免公佈價格。但有人預測價格會達到 20 美元，所以與當前價格相近。而中國的庫存並沒有增加。這個價格並不反映出增加庫存的意圖。這實際上反映了實際需求。因此，在過去的兩年裡，鋰價一直波動不定，我們經歷了一段相當艱難的時期。我認為最低點是 2018 年，之後我們看到它持續上漲。

In 2018, we hit a high point and then it began to fall. And then it began to rise again for about two years and took that up to about $80. And by the end of last year, we saw those prices drop. And so this rise is only about three months old. So based on past lessons, I think we will see it continue to rise. We have to be very careful here. We have past lessons to reflect on. But I think very (inaudible), I make the forecast that we will see it rise.

2018年，我們達到了一個高峰，然後就開始下滑。然後，價格在接下來的兩年裡又開始上漲，漲到了大約 80 美元。到去年年底，我們看到這些價格下降了。因此，這波上漲行情至今只有大約三個月的時間。根據以往的經驗，我認為它還會繼續上漲。我們必須非常謹慎。我們需要反思過去的經驗教訓。但我認為（聽不清楚），我預測它將會上漲。

In Gwangyang and Argentina, we were deep into ramp up in both locations. So no profits there. But we will go into commercial production this year, in particular in Argentina. In January and February, we had some issues. The membrane component was in short supply. So in January and February, our volume did not hit our goal.

在光陽和阿根廷，我們兩地的業務都在緊鑼密鼓地推進中。所以那裡沒有利潤。但我們今年將開始商業化生產，尤其是在阿根廷。一月和二月，我們遇到了一些問題。膜組件供應短缺。因此，1月和2月，我們的銷售量沒有達到目標。

And because we will be shipping out orders filling orders for which we offered a lower price, that will not be generating too much profit either. So because of the component that was in short supply and because we're still delivering on low-priced agreements, we will not be generating profit anytime soon. But as all plants do, we have to certify the plants. Our clients and automakers will be making a visit out to our plant in Argentina. They have scheduled that, and so our hope is that we will be turning this tide this year.

而且因為我們將發貨的都是我們之前以較低價格提供的訂單，所以也不會產生太多利潤。由於零件供應短缺，而且我們仍在履行低價協議，因此我們短期內不會獲利。但和其他工廠一樣，我們也需要對工廠進行認證。我們的客戶和汽車製造商將參觀我們在阿根廷的工廠。他們已經安排好了，所以我們希望今年能扭轉這種局面。

Let me now speak about Pilbara, their hard rock lithium. Ore lithium price is important, but the price of the raw material is just as important. Spodumene was about 4% of spodumene at lithium price. Because we need seven tons of hard rock spodumene to make lithium, 40% of raw materials price was the formula we used.

現在讓我來談談皮爾巴拉地區，那裡盛產硬岩鋰。鋰礦石價格固然重要，但原料價格同樣重要。鋰輝石的價格約為鋰價的 4%。因為我們需要七噸硬岩鋰輝石來生產鋰，所以我們採用的公式是原料價格的 40%。

But recently, we've seen that price go up. So LH is 19,500, and spodumene is $24,000. So it went up by about 17%. So if we use 7 tons, the cost of our raw materials will be about 80% of our total cost structure. So this price increase needs to hit our books in a timely manner for us to be able to generate meaningful profit. So exactly how this will reflect in our books It will depend a lot on the spread of the price of spodumene and hard rock lithium. But what we can predict is that our loss will be much smaller than last year. So we will be engaged in diverse activities in order to enhance our profit.

但最近，我們看到價格上漲了。所以 LH 是 19,500 美元，鋰輝石是 24,000 美元。所以上漲了約17%。因此，如果我們使用 7 噸原料，原料成本將佔總成本結構的 80% 左右。因此，為了能夠產生可觀的利潤，這次價格上漲需要及時反映在我們的帳面上。那麼，這究竟會如何反映在我們的帳面上呢？這很大程度取決於鋰輝石和硬岩鋰的價格差。但我們可以預測的是，我們的損失將比去年小得多。因此，我們將從事各種活動以提高利潤。

On HMM acquisition, I will answer that inquiry. We've already made some public disclosures on our position, and we've consistently said that this is in preliminary review stage. There are no specific decisions that have been made. Since then, there has been no progress.So this is the clear answer to your question.

關於HMM收購的問題，我會在後面回答。我們已經公開披露了一些我們的立場，我們一直表示，這目前處於初步審查階段。目前尚未做出任何具體決定。自那以後，沒有任何進展。所以，這就是你問題的明確答案。

[Kim Yoon-sang], iM Securities.

[金允相]，iM證券。

Hello, I am Kim Yoon-sang from iM Securities. I have a few questions for you. The first question I'd like to ask is regarding steel and also infrastructure, POSCO International and ENC and bisector. I would like to ask about the business plan and specifically what kind of market situation you are referring to.

您好，我是來自 iM Securities 的金允相。我有一些問題想問你。我想問的第一個問題是關於鋼鐵和基礎設施，浦項製鐵國際、ENC和雙軌製鐵業。我想詢問一下商業計劃，特別是您指的是哪種市場情況。

And the second question is more detailed questions about your business plan in RBM. There are some parts, for example, canceling of orders and difficulties with hard rock lithium. Compared to this year, do you expect things to improve this year? I would like you to specify.

第二個問題是關於您在 RBM 中的商業計劃的更詳細的問題。例如，部分環節有訂單取消和硬岩鋰開採困難等問題。與今年相比，你認為今年的情況會好轉嗎？請您具體說明。

And for the third question, you provided more than $6 trillion in terms of CapEx. And I wonder if this needs to be adjusted downward? And finally, Cleveland-Cliffs, you mentioned partnerships. And recently, the strategic investment, are there any considerations that you're making?

至於第三個問題，您提供的資本支出超過 6 兆美元。我想知道這個數字是否需要向下調整？最後，克利夫蘭-克里夫斯，您提到了合作關係。最近，在策略投資方面，你們有哪些考量？

I will answer the second question first. What will improve is the lithium price increase, and the negative factors are maintaining the North American customers, but the orders have been on the decline. So we are currently exploring other customers, and spot demand prices are also factors that are on the negative. But whether or not this will lead to improvements will depend on our operating profit, and we expect things to improve greatly compared to the previous year, especially POSCO Argentina is expected to perform very well and the operating profits to improve decisively.

我先回答第二個問題。鋰價上漲將會改善，而不利因素是北美客戶群仍在維持，但訂單量一直在下降。因此，我們目前正在尋找其他客戶，現貨需求價格也是不利因素。但能否帶來改善將取決於我們的營業利潤，我們預計情況將比前一年大有改善，特別是浦項鋼鐵阿根廷公司預計表現非常出色，營業利潤將大幅提高。

You have also asked about the profit's guidance. I would like to mention a few things. In steel, we expect POSCO to do a bit better than last year because there are a few factors. Exports are -- can be a little bit challenging, but the domestic market is improving. So compared to the overall operating profit in the previous year, we expected to improve.

您也詢問了利潤預期。我想提幾點。在鋼鐵業，我們預期浦項鋼鐵的表現會比去年略好，因為有幾個因素在起作用。出口方面可能有點挑戰性，但國內市場正在改善。因此，與前一年的整體營業利潤相比，我們預期會有所改善。

In overseas steel, compared to last year, around KRW200 billion of deficit will be taken out because PCSS will be excluded. So we expect it to improve as well. In infrastructure, compared to last year, there are two factors that we would like to ask you to consider. First is the acquisition of Palm Oil. More than KRW100 billion of profit occurs from the palm firm. And the effect of the investment...

與去年相比，海外鋼鐵市場將減少約2,000億韓元的虧損，因為PCSS將被排除在外。所以我們預計情況也會有所改善。在基礎設施方面，與去年相比，我們想請您考慮以下兩個因素。首先是收購棕櫚油。這家棕櫚油公司每年獲利超過1000億韓元。而這項投資的影響…

So the incremental profits may drop a little bit below KRW100 billion. And then we had $540 billion in losses in construction, but we are hoping to see about KRW100 billion profit this year. The size of the profit that we'll gain in infrastructure should be meaningful in rechargeable battery materials.

因此，增量利潤可能會略低於1000億韓元。然後，我們在建築業損失了5400億美元，但我們希望今年能實現約1000億韓元的利潤。我們在基礎設施建設中獲得的利潤規模應該會對可充電電池材料產生重大影響。

Lithium price fluctuations define a lot of our business, but the deficit that we experienced in Argentina last year was about KRW100 billion. Although impacted by lithium prices, if the price is maintained, I think we can definitely get to BEP, perhaps a little bit more. Perhaps not in the first quarter, but with some of these assumptions, I think we can look forward to an improvement.

鋰價波動對我們的業務影響很大，但我們去年在阿根廷遇到的缺口約為 1000 億韓元。儘管受到鋰價的影響，但如果價格保持穩定，我認為我們肯定可以達到損益平衡點，甚至可能更高一些。或許第一季不會，但基於這些假設，我認為我們可以期待情況會有所改善。

At Pilbara Lithium Solutions, in 2024 or 2025, we had a $2 billion loss there as well. But we'll be able to compensate for that as well. So when these pan out, I think we'll definitely be able to turn the tide. Add all of these numbers up, and you will see that there will be some pluses and some minuses. But generally speaking, I think you'll be able to get to a good number.

皮爾巴拉鋰解決方案公司在 2024 年或 2025 年也虧損了 20 億美元。但我們也能彌補這一點。所以，如果這些事情都能如願以償，我認為我們絕對能夠扭轉局勢。把這些數字加起來，你會發現既有正數也有負數。但總的來說，我認為你能得到一個不錯的數字。

For the third question, we mentioned that more than KRW6 trillion won will be invested in steel, and you asked about this. Regarding steel, the India Integrated Steel Mill project will take up around KRW400,000...

關於第三個問題，我們提到將有超過 6 兆韓元投資於鋼鐵業，您問到了這一點。關於鋼鐵方面，印度綜合鋼鐵廠計畫將耗資約40萬韓元…

KRW400 billion, and then the US blast furnace will be another sizable amount.

4000億韓元，然後美國高爐項目也將是另一筆相當可觀的金額。

And Hyrex plant and other investment will total KRW6.8 trillion. Additionally, in steel investment, this is our budget. But basically, we have included all of the overseas investment that we have planned. And with the progress, this can be adjusted. In the KRW11.8 trillion, this includes...

Hyrex工廠及其他投資總額將達到6.8兆韓元。此外，這是我們在鋼鐵投資方面的預算。但基本上，我們已經把所有計劃中的海外投資都納入其中了。隨著技術的進步，這一點可以進行調整。這11.8萬億韓元中包含…

In the KRW11.8 trillion, all of these is included. Last year, we talked about KRW8.8 trillion, but our execution is at KRW7 trillion. So as we continue with the negotiations, we have reason to prove that there can be adjustments made.

所有這些都包含在11.8萬億韓元中。去年我們討論的是8.8兆韓元，但我們實際執行的是7兆韓元。因此，隨著談判的繼續，我們有理由證明可以做出調整。

I am (inaudible) from Corporate Strategy Office. Third question regarding the rare earth and other considerations with Cleveland-Cliffs. We are cooperating with Cleveland Cliffs, focusing on steel. So Cleveland-Cliffs, at the last IR, they announced, they made announcements regarding rare earths. Regarding rare earth cooperation, we have not made any reviews. We'll take the next question.

我是（聽不清楚）來自企業策略辦公室。第三個問題是關於稀土以及與克利夫蘭-克里夫斯公司的其他事宜。我們正與克利夫蘭克里夫斯公司合作，專注於鋼鐵領域。所以克利夫蘭-克里夫斯公司在上一次投資者關係會議上宣布了有關稀土的公告。關於稀土合作，我們尚未進行任何審查。我們來回答下一個問題。

[Park Yu-shin], HSBC.

[樸裕信]，匯豐銀行。

This is [Park Yu-shin] at HSBC. Thank you for this opportunity. I have two questions. The first one is on lithium business. US automotive OEMs are electrifying. So POSCO's lithium business, are there some target clients in the US as well as the business targets in the lithium business for the US market?

這是匯豐銀行的樸裕信。感謝您給我這次機會。我有兩個問題。第一篇是關於鋰業務的。美國汽車原始設備製造商正在推行電氣化。那麼，浦項鋼鐵的鋰業務在美國是否有目標客戶，以及其鋰業務在美國市場的業務目標是什麼？

Next is on steel. This Saturday, I believe there were some proposals made by BlueScope, and NFE was involved. If you have any updates on this, I'd like to hear some more and any strategies regarding the SEAL business you can share?

接下來是鋼材。我記得本週六，BlueScope公司提出了一些方案，NFE也參與其中。如果您對此有任何最新進展，我很想聽聽，也想分享一些關於海豹突擊隊業務的策略？

On the automotive OEMs, yes, there is a slowdown in electrification in the US. This year, LFP will see about a 30% increase. (inaudible) will likely stay. So in terms of client base for (inaudible) and Pilbara lithium solution, because their client base is mostly, predominantly in the US, we are trying to make a shift to Europe. So we are deeply involved in the marketing activities that are bound for Europe. So we also need to diversify our portfolio. For POSCO Future M, we will focus on LFP. And in the lithium business, we will focus on LC, or lithium carbonates. And so these are some of the shifts that we are planning.

是的，就汽車原始設備製造商而言，美國的電氣化進程確實有所放緩。今年，LFP（聯邦僱員工會）的薪資將上漲約30%。 （聽不清楚）可能會維持不變。因此，就（聽不清楚）和皮爾巴拉鋰解決方案的客戶群而言，由於他們的客戶群主要在美國，我們正在努力轉向歐洲。因此，我們深入參與了面向歐洲的行銷活動。因此，我們也需要實現投資組合多元化。對於 POSCO Future M，我們將重點放在 LFP。在鋰業務方面，我們將專注於碳酸鋰（LC）。所以，這些是我們正在計劃的一些轉變。

Mid- to long-term strategy, lithium capacity is 100,000 tons. So we want to be able to establish our client base to be able to exhaust this capacity. And because we've made new investments in hard rock lithium, we will definitely review expansion of facility, but no decisions have been made on any schedules.

中長期戰略目標：鋰產能10萬噸。所以我們希望能夠建立起客戶群，以便能夠充分利用這個產能。由於我們對硬岩鋰礦進行了新的投資，我們肯定會考慮擴建工廠，但尚未就任何時間表做出決定。

Additionally, I made a brief comment about our profitability outlook, and I want to add to that. So the lithium mine that we acquired, that will be entered into our books based on the equity method. In 2027, we are planning additional production volumes. So please have a look. With that in consideration, I think you will be able to accrue more meaning.

此外，我之前簡要地談到了我們的獲利前景，現在我想補充一些內容。因此，我們收購的鋰礦將依照權益法計入我們的帳簿。2027年，我們計劃增加產量。請看一下。考慮到這一點，我認為你將能夠獲得更多意義。

And next, we will address the question about steel. Australia's BlueScope Equity Shares proposal is, I think, the question. Currently, POSCO and NSC have a consortium with BlueScope to acquire the Y & L Steelworks in Australia. So we already have a consortium. We have not had any discussions about acquiring BlueScope.

接下來，我們將討論鋼鐵的問題。我認為，澳洲 BlueScope 股權收購方案才是關鍵。目前，浦項製鐵和NSC與BlueScope組成財團，計畫收購澳洲的Y&L鋼鐵廠。所以我們已經有合作聯盟了。我們沒有就收購BlueScope進行任何討論。

On China's steel restructuring -- my name is (inaudible) again. The Chinese market on the oversupply in order to respond to criticism from other economies about the oversupply decided to embark on restructuring. So they have decided to abolish the tax refund on exports as one measure, and they're making adjustments to certain country-bound steel products.

關於中國鋼鐵結構調整－我的名字是（聽不清楚）。為了回應其他經濟體對中國市場供應過剩的批評，中國市場決定進行結構調整。因此，他們決定取消出口退稅作為一項措施，並且正在對某些出口到特定國家的鋼鐵產品進行調整。

In January of this year, they announced a new policy for low-priced, low-value-added cheap products and to constrain exports of these kinds of products. But because the Chinese domestic market is in a recession, we believe some of this will continue. It will not be in large volumes, and we are going to be able to see some positive signs on this end.

今年一月，他們宣布了一項針對低價、低附加價值廉價產品的新政策，並限制此類產品的出口。但由於中國國內市場處於衰退期，我們認為這種情況還會持續下去。數量不會很大，而且我們有望看到一些積極的跡象。

That concludes my comments, and now we'll take the next question.

我的發言到此結束，現在我們來回答下一個問題。

Park (inaudible), Hana Securities.

Park（聽不清楚），Hana Securities。

Hello, I'm Park (inaudible) from Hana Securities. I also have three questions. First question, EU's CBAM and other global export regulations will be in place, how much impact will POSCO take and how will you address this?

您好，我是韓亞證券的樸（聽不清楚）先生。我還有三個問題。第一個問題，歐盟的CBAM和其他全球出口法規即將生效，浦項製鐵將受到多大影響？你們將如何應對？

And I also have a question about lithium. You mentioned that you expect profits for a lithium business to improve. Are there any specific volumes that you have forecasted for sales and production?

我還有個關於鋰的問題。您提到您預計鋰業務的利潤將會改善。你們對銷售和生產有任何具體的預測量嗎？

And finally, there were a lot of safety accidents within the group. These investments and costs related to safety; do you expect it to go up in the future? And will it have meaningful impact on profitability? And can we believe that safety has been secured?

最後，該組織內部也發生了許多安全事故。這些與安全相關的投資和成本；您預計未來會增加嗎？這會對獲利能力產生實質影響嗎？我們能相信安全已經得到保障嗎？

Regarding EU CBAM and quarter, I will tell you about our response measures. EU CBAM will come into force from October. And currently, we are talking with EU commissions regarding the national quotas. And we are doing our best to make sure that we can have an advantage in this aspect. But we will have to assume that the quota will decrease. And therefore, we will have to take out the low-priced products from our export mix and take that volume into Central and South America and other markets. And next year's steel sales policy focuses on the domestic market. So we will focus on premium products overseas to be able to complement some of these losses to be able to maintain similar levels this year.

關於歐盟CBAM和季度，我將向你們介紹我們的應對措施。歐盟CBAM將於10月生效。目前，我們正在與歐盟委員會討論國家配額問題。我們正在盡最大努力確保我們在這一方面擁有優勢。但我們必須假設配額將會減少。因此，我們將不得不從出口產品組合中剔除低價產品，並將這些產品出口到中南美洲和其他市場。明年的鋼鐵銷售政策將重點放在國內市場。因此，我們將專注於海外高端產品，以彌補部分損失，從而在今年保持類似的水平。

For the second question, the sales volume is expected to be $55,000 to $60,000. Our plan is to secure enough customers to sell this volume, and this volume is twice that of last year. So our basic plan is $55,000 to $60,000 but depending on the market conditions in the second half, we will review whether we can increase this volume.

對於第二個問題，預計銷售額為 55,000 美元至 60,000 美元。我們的計劃是確保有足夠的客戶來完成這個銷售量，而這個銷售量是去年的兩倍。所以我們的基本方案是 55,000 美元到 60,000 美元，但根據下半年的市場情況，我們將評估是否可以增加這個數量。

I am [Yoo In-jong] from POSCO's Group Safety Special Assessment Task Force. Regarding investment and costs for safety and whether it will increase in the future, the facility and other investments that are being made into improving our group safety, I looked into it and I believe that the amount that we invested into safety is not low compared to other companies.

我是浦項鋼鐵集團安全特別評估工作小組的[劉仁鐘]。關於安全方面的投資和成本，以及未來是否會增加，包括我們為改善集團安全而進行的設施和其他投資，我對此進行了調查，我認為與其他公司相比，我們在安全方面的投資額並不低。

And enhancing the facilities and putting safety equipment in place, will not -- we don't need to do mass-scale improvements. So we may need to improve bit by bit, but it will not impact the profitability of our company as a safety officer. And whether safety levels increase with more investment, the efforts to improve safety, the technology, and other measures, the level of safety investment that we have is much higher than other companies. I don't believe that accidents happened here because we didn't make enough investments.

改善設施並配備安全設備並不會——我們不需要進行大規模的改進。因此，我們可能需要一點一點地改進，但這不會影響我們公司作為安全主管的獲利能力。安全水準是否會隨著投資增加、安全改善措施、技術進步和其他措施的實施而提高，目前我們在安全方面的投資水準遠高於其他公司。我不認為這裡發生事故是因為我們投資不足。

Regarding smart safety technology, this is being talked not only in Korea but all across the world. The technologies that actually help improve safety hasn't been applied on the ground. We are actually leading the industry in this front. but technology that can actually save time and effort to enhance safety, we are making the efforts to apply this. So making -- we don't believe that making the investment itself will significantly impact.

關於智慧安全技術，這不僅在韓國，而且在全世界都是人們熱議的話題。真正有助於提高安全性的技術尚未實際應用。我們在這方面實際上處於行業領先地位。我們正在努力應用能夠真正節省時間和精力、提高安全性的技術。因此，我們認為進行這項投資本身不會產生重大影響。

Ahn Hee-soo, DB Securities.

安熙洙，DB證券。

Greetings. My name is Ahn Hee-soo. I have about two to three questions. First, the steel business rationalization and restructuring have been discussed. Do you have any specific plans on these grounds for the future?

問候。我的名字是安熙秀。我大概有兩三個問題。首先，我們討論了鋼鐵業的合理化和重組問題。您對未來在這些方面有任何具體計劃嗎？

Next is on lithium. You talked about brine-based lithium plant 2 and technical-grade production. If you want to make the shift to battery-grade lithium, what kind of CapEx, additional CapEx do you need to expend? And the lithium price increase, what is the reason, rationale behind that? If you have more information on why it's rising, that would be very helpful.

接下來是鋰。你談到了鹽水鋰工廠 2 和技術級鋰的生產。如果要過渡到電池級鋰電池，需要投入哪些類型的資本支出和額外資本支出？鋰價上漲的原因是什麼？背後的邏輯是什麼？如果您有關於價格上漲原因的更多信息，那將非常有幫助。

The third question. You're investing in Hyrex and you are going to soon operate the electrical furnace. Looking at the group-wide energy mix, what is your plan? And POSCO International has plans to import 1 million tons of gas from Alaska. So what implications does this have on the group-wide business?

第三個問題。您投資了Hyrex的產品，很快就要投入使用電爐了。從集團整體能源結構來看，你們的計畫是什麼？浦項國際公司計劃從阿拉斯加進口100萬噸天然氣。那麼，這對集團整體業務有何影響？

I'll answer the second question first. So price is rising sharply. The reason behind that is about threefold. First, the abolishment of the export refund tax. So I think there was some excess demand because of that. And the recent growth of the ESS market. So the actual demand is manifesting here. And the third is the expansion of production in China.

我先回答第二個問題。所以價格正在大幅上漲。原因大致有三點。首先，取消出口退稅。所以我認為正因如此才出現了一些過剩的需求。以及近期儲能係統市場的成長。所以，實際需求正在這裡顯現出來。第三點是中國生產規模的擴大。

There are salt lakes in China too, but they cannot. They have some structural issues in expanding that. And in the middle of last year, some of the mines had to be closed. And so these are the three key reasons that I would provide as rationale for the sharp rise in lithium price.

中國也有鹽湖，但他們做不到。他們在擴張方面存在一些結構性問題。去年年中，部分礦井被迫關閉。因此，以上三點是我認為鋰價暴漲的主要原因。

And our lithium is technical grade. Brine-based lithium is all technical grade. It's not just us. So to make that shift to better grade, we need to adopt equipment. So technical grade is 99% purity. Battery grade is 99.5%, so we need to be able to reduce impurities by about 0.5%, and equipment is required here. So we are studying some of our options.

我們的鋰是技術級的。鹽水鋰均為技術級。不只是我們。因此，為了實現向更高等級的轉變，我們需要採用新的設備。因此，技術級純度為99%。電池純度為 99.5%，因此我們需要能夠減少約 0.5% 的雜質，而這需要相應的設備。所以我們正在研究一些方案。

One is in Gwangyang, to bring LC from Argentina and to convert that to LH. And so we have a plant called PLS, which is being built now. It's almost completed. So we will refine to produce LH. If we inject CO2 in the process, then it can convert to LC. So this is the very back end that needs to be refined. It's not a huge investment. It's a tweaking of the last part of the process here. So it's going to be a small investment if we decide to invest. And so within the first quarter, we will be reviewing to make a decision.

其中一處在光陽，目的是從阿根廷進口LC並將其轉換為LH。因此，我們現在正在建造一個名為PLS的工廠。快要完工了。因此，我們將提煉以生產LH。如果在此過程中註入二氧化碳，那麼它就可以轉化為LC。所以，這部分後端需要進一步改進。這筆投資並不算大。這是對流程最後一部分的微調。所以如果我們決定投資，這將是一筆小額投資。因此，我們將在第一季內進行審查並做出決定。

I will address the first question, steel industry restructuring. My name is (inaudible) I'm in charge of steel business management. For steel pipes and long products, I think we're hearing also some restructuring efforts and efforts made to downsize, but no one is really closing down blast furnaces or making new ones, so there is no oversupply, and so this is not an urgent need. But yes, we do need to consider this for the future.

我將回答第一個問題，即鋼鐵業的重組。我的名字是（聽不清楚），負責鋼鐵業務管理。對於鋼管和長材，我認為我們也聽到了一些重組和縮減規模的努力，但沒有人真正關閉高爐或建造新高爐，因此不存在供應過剩，所以這不是迫切需要。但是，是的，我們確實需要考慮這個問題以備將來之需。

So we are in negotiations with COSA and Case Steel to forecast when or if this needs to happen. And in line with the changes in the steel industry, we will be aging out some of our older facilities. And we've already done our own equipment restructuring. If we see more facilities that are inferior against the current market trends, then we could consider other investment decisions, such as maybe additional Hyrex as well.

因此，我們正在與 COSA 和 Case Steel 進行談判，以預測何時或是否需要採取此類行動。隨著鋼鐵業的變革，我們將逐步淘汰一些老舊的設施。我們已經完成了自己的設備重組。如果我們發現更多不符合當前市場趨勢的設施，那麼我們可以考慮其他投資決策，例如增加 Hyrex 的投入。

Let me address the third question. I'm Kim (inaudible), Carbon Neutral Strategy Officer. We have announced NDC 2035. NDC 2030 was a 5.3% reduction for steel, and so this is achievable with the current technology. But for NDC 2035, we need to reduce more, and so we need to transition some of our equipment.

讓我來回答第三個問題。我是金（聽不清楚），碳中和戰略官。我們已公佈了 NDC 2035。NDC 2030 要求鋼材用量減少 5.3%，因此以目前的技術是可以實現的。但要達到 NDC 2035 的要求，我們需要進一步減少，因此我們需要對一些設備進行改造。

At POSCO, blast furnace-based CO2 reduction, and EAF-based CO2 reduction are the two-pronged reduction efforts that we'll be making. In 2030, we will read the situation to assess what will be most efficient, most effective, and so that ratio will change based on what we assess then. In 2028, we will complete the Hyrex pilot plan, and The energy that will be used is cracked LNG and pink hydrogen. It's something that we want to be able to make possible there. After 2030, we are in discussions with the government to use nuclear energy.

在浦項製鐵，我們將採取雙管齊下的減排措施，即高爐二氧化碳減量和電弧爐二氧化碳減排。到 2030 年，我們將分析情勢，評估什麼是最有效率、最有效的，因此，該比例將根據我們屆時的評估結果而改變。2028年，我們將完成Hyrex試點計劃，屆時將使用裂解液化天然氣和粉紅氫作為能源。這是我們希望在那裡實現的事情。2030年後，我們將與政府討論利用核能的方案。

My name is (inaudible) Infrastructure Business Management Officer. Let me address the Alaska project, 1-million-ton LNG imports volume. The volume has been agreed to, but we haven't signed any contract. And the conditions, the terms of the agreement are very favorable. But we do have an NDC -- NDA that is, and so I cannot share any more details.

我的名字是（聽不清楚）基礎建設業務管理主管。讓我談談阿拉斯加項目，即100萬噸液化天然氣進口量。數量已經確定，但我們還沒有簽署任何合約。而且協議的條件和條款非常有利。但是我們簽了保密協議（NDA），所以我不能透露更多細節。

But how will this impact the energy mix in the country? I can't answer that effectively, because for POSCO International, it imports LNG to generate power. And for POSCO, it has its own LNG demand. So just because POSCO International imports LNG, will that impact POSCO's LNG price? Not necessarily because POSCO will buy its own LNG from other channels. And so the bidding conditions could change numbers, but we are two different entities.

但這將如何影響該國的能源結構？我無法有效回答這個問題，因為浦項國際公司進口液化天然氣來發電。而對浦項鋼鐵來說，它本身也有液化天然氣需求。那麼，浦項國際進口液化天然氣，就會影響浦項的液化天然氣價格嗎？不一定，因為浦項鋼鐵會透過其他管道購買自己的液化天然氣。因此，競標條件可能會改變數字，但我們是兩個不同的實體。

The costs required to reach carbon net zero, whether this will help POSCO achieve that, I don't think that's an appropriate statement to make. And by importing inexpensive LNG, POSCO International will be able to add efficiency to their power generation. So I think it will assist POSCO International in a meaningful way. That's what I can say.

實現碳淨零排放所需的成本，以及這是否能幫助浦項製鐵實現這一目標，我認為現在下結論並不合適。透過進口價格低廉的液化天然氣，浦項國際將能夠提高其發電效率。所以我認為這將對浦項國際公司起到有意義的幫助。我只能說這麼多。

Energy Materials Business Management, I think I misspoke. CP2 has not yet completed construction. So 67,000 tons is our cap. And this year, we can sell -- we plan to sell 50,000 tons. And so this is still twice the volume that we did last year. So I'd like to make a correction.

能源材料業務管理，我想我剛才說錯了。CP2尚未完成。所以，我們的上限是67000噸。今年，我們可以銷售——我們計劃銷售5萬噸。所以，這仍然是我們去年產量的兩倍。所以我想做個更正。

There is one more person who wishes to ask a question.

還有一位朋友想提問。

Let's take that question.

我們就來探討這個問題。

KB Securities, [Chae Young-son].

KB證券[蔡英善]

Hello, I'm from KB Securities, Chae Young-son. I would like to ask about lithium. And you mentioned 50,000 as the lithium volume, does this include Pilbara? The margin spread is a bit big, so I'd like to ask about your final figures.

您好，我是KB證券的蔡永善。我想諮詢一下鋰的問題。您提到鋰礦產量為 50,000，這是否包括皮爾巴拉地區？利潤率差距有點大，所以我想了解你們的最終數據。

It will be half and half Pilbara and Argentina. Thank you.

它將一半來自皮爾巴拉，一半來自阿根廷。謝謝。

No additional questions?

沒有其他問題了嗎？

Since we don't have any additional questions, I'd like to conclude the earnings release for 2025. Thank you very much for your participation.

由於我們沒有其他問題，我想就此結束2025年的收益發布。非常感謝您的參與。