Financial Data and Key Metrics Changes - Consolidated revenue for Q2 2025 reached KRW 17.6 trillion, with an operating profit of KRW 610 billion, marking growth for two consecutive quarters [3][9] - Operating profit margin improved from 3.9% to 5.7%, with EBITDA recorded at KRW 1.6 trillion [4][10] - Net debt decreased slightly quarter on quarter due to effective investment and working capital management [9] Business Line Data and Key Metrics Changes - Steel operating margin increased by 35.6% to KRW 610 billion, with improvements noted in both domestic and overseas steel operations [10][12] - The rechargeable battery materials segment faced increased deficits due to initial operational costs and falling lithium prices, although future losses are not expected to increase [7][10] - POSCO International showed robust performance, while POSCO E&C's overseas projects incurred additional costs leading to marginal decreases [10][22] Market Data and Key Metrics Changes - The domestic market showed moderate improvements contributing to mill margin growth, while overseas steel operations in Indonesia and Vietnam diversified sales channels [4][13] - The lithium market is seen as opportune, with a significant joint investment in Argentina expected to generate synergies [8][10] Company Strategy and Development Direction - POSCO is committed to ongoing efficiency improvements and restructuring of non-core assets, aiming to generate KRW 1 trillion in cash flow [11][12] - The company is focusing on high-value added steel products and has initiated projects for advanced technologies like HiRX, which is designated as a national strategic technology [16][17] - Future investments are planned in high-growth markets such as the U.S. and India, with a focus on premium products [80][81] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about sustaining profit levels into Q3 despite global tariff uncertainties [5][6] - The potential decrease in Chinese steel production is expected to positively impact POSCO's profits in the second half of the year [27] - The company anticipates that lithium prices will rebound, contributing to improved profitability in the rechargeable battery materials segment [36][67] Other Important Information - The sale of the POSCO Changjiegang Stainless Steel subsidiary is underway due to ongoing deficits from oversupply and local government policies in China [6][10] - The company is actively pursuing customer certifications and commercial production in its lithium business, with significant investments in new plants [7][21] Q&A Session All Questions and Answers Question: Steel market outlook and price negotiations - Management noted that while there are expectations of decreased production in China, domestic demand has increased, which is expected to positively impact profits [26][27] - Price negotiations in the automotive and shipbuilding industries are ongoing, with optimism about maintaining favorable terms despite raw material fluctuations [28][30] Question: Update on Indian joint venture and potential acquisitions - Discussions regarding the Indian joint venture are progressing, with environmental feasibility studies ongoing [31][32] - The potential acquisition of the Waiala steelmaker is under review, focusing on mining opportunities and renewable energy [33][34] Question: Lithium market developments - Management believes lithium prices will not fall below $8, with expectations of gradual increases in the coming years [36][67] Question: U.S. and European market strategies - The company plans to adapt to the U.S. market despite tariffs, with a focus on maintaining competitive pricing and exploring other regions [39][44] - In the European market, management anticipates limited volume increases due to quota restrictions but aims to keep prices competitive [46][47] Question: PZSS sale and product deficits - The sale of PZSS is progressing, with final details being negotiated, and management expects to cover losses through divestments [51][52] - Currently, there are hardly any steel products recording deficits due to restructuring efforts [55] Question: Lithium certification progress and safety incidents - Certification for lithium products is ongoing, with three customers already certified [59] - The impact of a safety incident in E&C is still being assessed, with potential effects expected in Q4 [61][62]