Good afternoon, and thank you very much for joining the EcoPro earnings conference call despite your busy schedules. Joining us today are: Jang-hoon Cho, Head of Business Management at EcoPro; Kyounghan Oh, Head of Finance and IR; Sung-jun Lee, Head of Management and Strategy at EcoPro Materials; from EcoPro HN, Soon-Ju Kim, Head of Management Support; and Jin-Hyung Choi, Head of Business Management.

Please note that the financial results presented today are subject to change pending the independent auditor's final review. We will now commence EcoPro's Q4 2025 earnings presentation.

Good afternoon. I am Kyounghan Oh, Head of Finance and IR at EcoPro.

Effective this year, I have been appointed to lead EcoPro's investor relations. I'm committed to enhancing our corporate value and facilitating proactive communication with our shareholders and analysts.

In today's earnings call, I will briefly discuss the positive outlook following the recent rise in metal prices. Afterwards, I will present the financial results of EcoPro's three listed subsidiaries, followed by a Q&A session.

If you turn to page four of the distributed earnings release, prices for nickel, lithium, and cobalt, the core raw materials of the secondary battery cathode value chain, have increased significantly compared to the end of Q3 last year. The company has maintained consistent investments in Indonesian nickel smelter projects, and all four previously invested projects are slated to commence mass production in 2026.

The investment in nickel smelters is strategically integrated with EcoPro Materials' precursor business value chain. Notably, Green Eco Nickel is slated to be recognized in EcoPro Materials' consolidated financial results starting in 2026.

Thus, the appreciation in nickel prices is expected to serve as a significant tailwind for improving the company's profitability. Lithium prices have also experienced a significant surge recently.

In the case of EcoPro Innovation, which recorded losses until last year due to depressed lithium prices, a turnaround to profitability is projected for 2026, provided the current price trend persists. Furthermore, the recycling market, which had contracted due to lower metal prices until last year, is expected to see a recovery following the rise in metal prices.

Consequently, we also anticipate an improvement in EcoPro CNG's financial performance. EcoPro has proactively pursued the establishment of a closed-loop system and investments in upstream raw materials.

We expect 2026 to be the year these strategic investments yield tangible results. Next, I will discuss EcoPro HN's financial results on page six.

In Q4 2025, EcoPro HN posted 39.2 billion won in revenue, up approximately 38% QoQ, while operating profit remained flat at 2.3 billion won. In 2025, annual revenue declined YoY due to capex adjustments by downstream semiconductor clients, while the operating margin also decreased YoY following changes in the sales mix.

However, for 2026, we anticipate a recovery in performance, primarily driven by greenhouse gas reduction and chemical filter businesses as the semiconductor industry rebounds and downstream clients accelerate their capex investments. In the particulate matter reduction business, we are expanding our new order pipeline with projects such as overseas LNG power plants and anticipate a positive revenue growth trend.

Next, I will present EcoPro HN's financial position on page seven. As of the end of Q4 2025, total assets increased 6.2% QoQ to 458.6 billion won.

Total liabilities rose 17% QoQ to 154.4 billion won, and total equity reached 304.2 billion won, a 1.4% increase QoQ. While the debt-to-equity ratio rose slightly due to an increase in accounts payable, it remains at approximately 51% as of year-end 2025, maintaining a sound financial profile.

Next, I will discuss EcoPro Materials' financial performance on page eight. In Q4 2025, EcoPro Materials posted revenue of 115.2 billion won, up 82% QoQ, driven by higher precursor and metal sales.

Operating profit reached 3.3 billion won, marking a turnaround to profitability as margins improved due to increased capacity utilization and rising metal prices. On an annual basis, 2025 revenue reached 392.5 billion won, a 31% increase YoY.

However, the company recorded an operating loss of 65.4 billion won, a level similar to the previous year. In 2026, we expect the top-line growth trend to persist, driven by increased shipments for North American ESS-grade precursors and higher ASP resulting from rising metal prices.

Furthermore, we anticipate an improvement in operating profit YoY, supported by the commissioning and consolidation of Green Eco Nickel. Next, I will present EcoPro Materials' financial position on page nine.

As of year-end 2025, total assets stood at 1.7377 trillion won, a 3.9% decrease QoQ. Total liabilities increased 4.8% QoQ to 582.8 billion Korean won, while total equity recorded 1.1549 trillion won, down 7.8% compared to the previous quarter.

The debt-to-equity ratio remained stable at approximately 51%, reflecting a sound capital structure. Due to efficient working capital management, including an 18% QoQ reduction in inventory, our cash on hand increased 65% QoQ to approximately 45 billion Korean won.

Next, I will present the consolidated financial performance of our holding company, EcoPro, on page 10. In Q4 2025, EcoPro's consolidated revenue reached 733.6 billion won, a 24% decrease QoQ.

Operating profit recorded 66.2 billion won, down 56% compared to the previous quarter. However, the Q3 results include the top-line and bottom-line expansion effects from the acquisition of stakes in Indonesia's Green Eco Nickel and the ESG smelter.

When adjusted for these effects, Q4 revenue remained flat compared to Q3, while operating profit showed a significant improvement. The primary driver behind the improvement in Q4 consolidated operating profit was the earnings turnaround of our subsidiaries.

Specifically, the lithium and precursor businesses, which recorded losses in the tens of billions of won in Q3, swung to a profit in Q4, contributing significantly to the improvement of EcoPro's consolidated bottom line. Regarding our future guidance, we anticipate the earnings momentum to persist as the aforementioned rise in metal prices is proving accretive to margins across our entire value chain.

We project that the earnings momentum of our lithium and precursor subsidiaries, which swung to a profit in Q4, will further accelerate in 2026. In addition, the four IMIP smelters in Indonesia, where investments were completed last year, are expected to deliver an annual profit contribution exceeding 200 billion won.

On page 11, I will provide a brief overview of the segmental performance of EcoPro's in-house businesses and unlisted subsidiaries. As the Indonesian smelters we invested in commenced sequential operations throughout 2025, the revenue from our in-house businesses, indicated in blue on the left graph, has shown a steady upward trend.

As 2026 represents the first full fiscal year in which all four previously invested smelters will be operational from day one, we anticipate their earnings contribution to significantly drive our top line and operating profit. Our lithium business, the largest contributor among our unlisted subsidiaries, posted top-line growth and a turnaround to profitability in Q4.

With lithium prices surging in early 2026, we anticipate robust revenue expansion and significant operating profit realization for the segment throughout the year. On page 11—rather, 12, I will provide an overview of our consolidated financial position.

As of year-end 2025, total assets increased 12% QoQ to 9.8439 trillion won. Total liabilities rose 16% QoQ to 5.29 trillion won, while total equity recorded 4.54 trillion won, up 7.8% QoQ.

In addition to the consolidated financial statements, the debt-to-equity ratios of each subsidiary are being maintained at a stable level in the low 100% range. Furthermore, cash and cash equivalents surged 111% QoQ to 1.1866 trillion won, driven by the 800 billion won PRS transaction involving EcoPro BM shares during Q4.

Consequently, we have secured ample financial liquidity. Regarding the RCPS issued by EcoPro Materials during 2025 and the aforementioned PRS, the stock prices of EcoPro Materials and EcoPro BM as of year-end 2025 were lower than the prices at the time of the transactions.

Consequently, a derivative liability of approximately 300 billion won was recognized based on accounting valuations, leading to an increase in liabilities on the consolidated financial statements and a negative impact on net income. However, following the sharp recovery in stock prices earlier this year, we expect a reversal effect to generate a positive impact in Q1 2026, provided current price levels are sustained.

Notably, regarding the PRS transactions, a significant portion has already been settled at higher price levels. Lastly, I would like to provide an update on the strategic roadmap for solid-state batteries, which has recently gained significant market traction.

Solid-state batteries, or ASBs, are next-generation solutions expected to gain significant market penetration in emerging use cases like robotics, owing to their enhanced safety and high energy density. We have preemptively developed core advanced material technologies for ASBs through long-term collaborations with our partners.

First, regarding cathodes for ASBs, these batteries are based on NCM chemistry, a segment where EcoPro BM and EcoPro Materials possess global top-tier technological leadership, particularly in high-nickel applications. We are continuously advancing our material capabilities to maximize ASB cell performance through particle design for enhanced durability, uniform coating technologies to mitigate interfacial resistance, and advanced methods to improve contact resistance.

Next is solid electrolytes, the key component of ASBs. EcoPro BM commenced the development of sulfide-based solid electrolytes in 2021, securing proprietary process technology, and is currently operating a pilot plant with an annual capacity of 40 tons.

The product has already completed quality validation with our partners. Furthermore, we plan to internalize the production of lithium sulfide, a key intermediate material, through EcoPro Innovation and EcoPro AP.

By establishing a continuous production system where Innovation synthesizes lithium sulfide using hydrogen sulfide produced in-house by AP and supplies it to BM, we aim to secure both material synergies and cost competitiveness. Finally, regarding lithium metal anodes for ASBs, lithium metal is a next-generation core material exclusively applicable to solid-state batteries, offering a theoretical energy density approximately 10 times higher than conventional graphite or silicon-based anodes.

EcoPro Innovation is co-developing world-class, ultra-thin lithium metal anodes with Canada's Hydro-Québec. We anticipate this ultra-thin lithium foil technology will be a game changer, driving performance breakthroughs in ASBs.

In summary, EcoPro aims to secure long-term growth engines to lead the ASB era by establishing a comprehensive full value chain for next-generation solid-state materials with our closed-loop system. Please refer to the appendix for further details, and we will now proceed to the Q&A session.

That concludes our presentation, and we will now move on to our 2026 business outlook.

Hello, this is Jang-hoon Cho, Head of Business Management at EcoPro. I would now like to provide an outlook into the 2026 business for EcoPro holding company.

First, I believe it is necessary to address the positive signals confirmed through the results for Q4 2025. Until Q3, a substantial portion of the earnings was attributable to gains related to the investment in the Indonesian smelter, but from Q4, it is highly encouraging that even in the absence of such one-off factors, the subsidiaries' underlying earnings fundamentals has returned to a recovery trajectory.

More specifically, EcoPro Innovation, which operates the lithium business, achieved a return to profitability in Q4 after a prolonged period of losses, driven by increased sales volume, a rise in lithium prices, and the additional effect of reversals of inventory valuation losses. EcoPro Materials, which is engaged in the precursor business, also turned profitable in Q4, while at the holding company level, higher metal trading profits have contributed to an improvement in the company's core earning structure.

Building on this recovery momentum, 2026 is expected to mark the beginning of a full-fledged growth phase. The most significant growth driver will be the increasing visibility of performance from the Indonesian operations.

The nickel smelter Green Eco Nickel, whose acquisition was completed last year, is scheduled to be consolidated into the financial statements starting from January this year, and all four smelters within the IMIP complex, including [unclear: PT G&N?] , have completed ramp-up and entered full-scale operation.

This will not only lead to an increase in equity-method gains at the holding company level, but also expand metal trading volumes, serving as a stable cash cow. In addition, backed by approximately 800 billion Korean won in funding secured through the PRS in Q4, Phase 2 of the IGIP investment led by EcoPro is set to move into full-scale execution this year.

This project will serve as a critical foundation for establishing the group's cost competitiveness at a level superior to that of other industry peers. Next is the optimization of our cost structure.

Beginning in Q4, the group adjusted the useful lives of production facilities and other assets from the previously applied 10 years to a more realistic estimate based on actual usage, aligning them with the industry standard of 15 years. As the resulting reduction in depreciation expense is expected to be fully reflected on an annual basis in 2026, this will significantly lower fixed-cost burden.

In addition, as metal prices appear to have bottomed out and are shifting into an upward trend, we expect a favorable lag effect arising from input timing, along with an expansion of selling price to cost spread, which should further amplify the improvement in profitability. Finally, we are strengthening market responsiveness.

While uncertainty in the US electric vehicle market persists, the company is focusing on the rapid growth of the energy storage system, ESS, market. As power demand surged due to the expansion of AI data centers, demand for battery materials used in ESS applications is increasing, and in response, the subsidiaries are flexibly expanding their product portfolios.

In addition to efforts to diversify, revenue streams will accelerate this year by continuously increasing the proportion of sales to external customers at EcoPro Materials and EcoPro Innovation, reducing dependence on captive demand and broadening our customer base. In summary, 2026 is expected to exhibit a back-loaded earnings growth trend, with performance momentum becoming increasingly visible in the second half of the year as metal prices stabilize, the Indonesian value chain enters full-scale operation, and operational efficiency improvements and enhanced market responsiveness take effect comprehensively.

Even amid a challenging external environment, EcoPro will remain steadfast and demonstrate sustainable and solid growth. Thank you.

Hello, I am Sung-jun Lee, Head of Management Strategy at EcoPro Materials. Allow me to walk you through the EcoPro Materials 2026 business outlook.

This year, EcoPro Materials, supported by a clear recovery in its core precursor business and the full-year consolidation of performance from the smelting business, is expected to mark the base year in which both scale and profitability are strengthened. Turning first to the precursor business, the company expects a meaningful turnaround driven by entry into multiple new projects.

In particular, the FEOC provisions, which will strengthen US's move away from China as regulations starting in 2026, is expected to present a significant opportunity for us this year. To qualify for the AMPC tax credits, cell manufacturers are required to source more than 60% of the direct material costs of battery production from non-China value chains, with this threshold set to increase by 5 percentage points annually.

As precursors are critical materials that account for approximately 30% of total battery raw material, the adoption of non-China precursors, such as those supplied by us, has effectively become indispensable. As a result, two to three new projects currently under discussion have entered the visibility stage this year and are expected to contribute directly to the increase in supply volume and revenue on a sequential basis starting in 2026.

In addition, China has recently decided to reduce VAT export rebates on battery materials beginning from April this year, with a full elimination of such rebates planned for next year. Against this backdrop, our competitiveness is expected to be further strengthened in the global precursor market, where Chinese players have historically held a dominant position.

Next, turning to the smelting business, EcoPro Materials successfully completed the acquisition of Green Eco Nickel, an Indonesian MHP smelter, in September of last year. In 2026, the entity's results will be 100% consolidated into the financial statements from January.

As previously mentioned, Green Eco Nickel has an annual production capacity of 20,000 tons of nickel on an MHP basis. The entity is expected to generate annual revenue of more than 400 billion Korean won, with operating profit exceeding 100 billion Korean won on an annual basis.

The recent uptrend in metal prices is expected to drive an additional upside beyond these estimates. With the smelter incorporated as a subsidiary, consolidated earnings are expected to improve significantly.

At the same time, at the parent company level, stable procurement of low-cost MHP as a raw material will further enhance manufacturing cost competitiveness in precursor manufacturing. In summary, this year is expected to be one in which a sharp increase of precursor sales volume is expected in 2026 and the consolidation of smelting business results come together, enabling us to achieve both top-line growth and profitability improvement simultaneously.

Thank you. Hello, my name is Soon-Ju Kim, Head of Management Support at EcoPro HN.

I would like to outline EcoPro HN's business outlook for 2026. In 2026, EcoPro HN expects an improvement in operating performance driven by a recovery in demand across its environmental business.

First, we plan to expand sales volume of greenhouse gas reduction systems and chemical filters, supported by a rebound in capital expenditures from our downstream semiconductor customers. Our business is characterized by flexible supply timing that depends on semiconductor fab construction schedules and utilization rates, with a typical lead time of approximately six months to one year from customer investment decision to actual delivery.

As the semiconductor industry maintained a production curtailment stance from 2023 through 2024, this resulted in temporary supply gap in 2025. However, industry conditions have clearly recovered since the second half of the year, and the major customers are accelerating investments by advancing their ramp-up schedules by nearly a year.

As this accelerated momentum is reflected into our 2026 results, we expect to be able to demonstrate a growth trajectory. In addition, with the fine particulate matter reduction business segment, we plan to secure new orders from LNG power plants to establish a foundation for mid- to long-term revenue growth.

Domestically, the construction of LNG combined thermal power plants is planned according to the government's basic plan for power supply and demand, while the overseas demand for LNG power plants is also expanding. We intend to proactively target these newly emerging markets to increase market share.

Through such efforts, we aim to enhance the revenue contribution of the fine dust reduction business, which has been relatively sluggish to date, and support overall earnings growth. In addition, to enhance shareholder value in a stable and sustainable manner, the company will maintain its consistent dividend policy and plans to implement a value-up disclosure within the first half of the year to communicate its intrinsic corporate value and future growth potential more transparently to the market.

Through these initiatives, we aim to establish ourselves over the long term as a trusted, shareholder-friendly company. In conclusion, 2026 will be a year in which our core environmental businesses make another leap forward alongside the recovery of key end markets.

We will proactively prepare for the initiatives outlined and make every effort to deliver improved performance and more tangible results compared to the previous year. Thank you.

That concludes the business outlook presentation, and we will now have a Q&A session. Before taking questions from the floor, we will first address pre-submitted questions.

The first pre-submitted question asks about the reasons for the quarterly net losses recorded by the holding company and EcoPro Materials in Q4. EcoPro will provide an explanation.

Hello, I am Jang-hoon Cho, Head of Management Control at EcoPro. I will now move on to the details behind the quarterly net losses at the holding company and EcoPro Materials.

First, with respect to EcoPro Materials, the company reduced non-operating losses in the fourth quarter, which resulted in a swing to a net loss for the period and in turn impacted the holding company's consolidated earnings. This loss arose from an impairment recognized on assets that had previously been recorded based on long-term firm sales agreement between Green Eco Nickel smelter and an existing Chinese customer.

During the process of adjusting the Chinese equity stake, the contracted sales volume was partially reduced, and the corresponding reduction in asset value was recognized as non-operating loss. The amount of this loss was approximately 88 billion

Korean won.

However, this contract modification does not affect Green Eco Nickel's production capacity or its total sales volume. It merely reduced the priority allocation previously designated for a specific customer, and the corresponding volume can be readily sold to other customers.

Accordingly, this loss should be understood as one-off non-cash expense with no associated cash outflow. Next, there were two types of valuation losses related to derivatives which were recognized at the holding company level.

The first relates to a valuation loss arising from PRS contract entered into October as of last year. Under this contract, if the share price of EcoPro BM rises, the counterparty returns the capital gains from the sale, whereas if the share price declines, the contract structure provides compensation for the losses.

As of end of December last year, BM's share price stood in the range of 140,000 Korean won, below the contractual unit price of 172,600 Korean won, resulting in the recognition of a valuation loss of approximately 116 billion Korean won. However, the current share price is trading well above the contractual unit price.

Therefore, if this level is maintained, a substantial valuation gain could be recognized again in the following quarter. The second relates to valuation loss associated with EcoPro Materials' RCPS.

The holding company has entered into a cash-settled price difference agreement with the RCPS investors, and as of the end of last year, EcoPro Materials' share price was below the reference price of 75,974 Korean won, resulting in a valuation loss of approximately 180 billion Korean won. Likewise, if the share price of EcoPro Materials rises going forward, this could give rise to the corresponding valuation gain.

In summary, both of the valuation losses just discussed are accounting losses that do not involve any cash outflow. Please note that they have the potential to reverse into valuation gains depending on the future share price movements.

The second pre-submitted question asks about the impact of the recent increase in metal prices on the profitability of the company's Indonesian smelters. EcoPro will provide a response to this question.

Hello, I am Jang-hoon Cho, Head of Business Management at EcoPro. I will address the impact of the recent increase in metal prices on the earnings for our Indonesian smelters.

Our Indonesian smelters are based on an abundant supply of low-cost nickel ore sourced locally, resulting in smelting costs that are largely fixed at a certain level, while selling prices are linked to LME nickel prices. Accordingly, when metal prices rise, the spread between selling prices and costs expands, leading to an improvement in our operating margins.

At the previous earnings call, we provided operating profit guidance for the Indonesian operations based on a nickel price of $16 per kilogram and an exchange rate of 1,380 Korean won against the US dollar. Since then, not only have nickel prices risen, but cobalt, a key byproduct, has also entered into a supply shortage, driving prices higher on a sustained basis.

Based on current metal prices and exchange rate levels, we expect operating profit upside of more than 20% compared to the previous guidance. For Phase 1 IMIP, we now estimate average annual operating profit of over 220 billion Korean won, while for Phase 2 IGIP, although the project is still in its early investment stage with multiple variables to be considered, we estimate average annual operating profit of approximately 400 billion Korean won.

Thank you. The third pre-submitted question concerns EcoPro Materials' domestic and overseas sales mix for last year and this year, as well as this year's sales volume guidance.

EcoPro Materials will provide the response.

Hello, I am Sung-jun Lee, Head of Management Strategy at EcoPro Materials. I will address the question regarding the outlook for the external sales mix in 2026 and the sales volume guidance.

First, with regards to external sales mix, as of 2025, the company's external sales accounted for approximately 35% of total sales. For this year, we are targeting an expansion of the external sales ratio to approximately 70%.

This planned increase is underpinned by our positive assessment of the progress of the new projects currently under discussion, as outlined earlier in our business outlook. This year, we expect external sales beyond captive demand to become a key driver of our overall sales growth.

As for this year's sales volume guidance, taking into account the base effect from last year, as well as entry into new projects mentioned earlier, we expect precursor sales volume to increase by approximately 90% YoY, accompanied by a meaningful improvement in utilization rates as well. Thank you.

The final pre-submitted question concerns EcoPro HN, specifically this year's revenue guidance in light of the semiconductor industry landscape, as well as the current status and plans for expanding sales to overseas customers. EcoPro HN will provide the response.

Hello, I am Jin-Hyung Choi, team leader of the Management Support Team at EcoPro HN. First, I will cover EcoPro HN's sales outlook for this year.

As data center investments continue to increase, memory semiconductor production is expanding rapidly. Utilization rates at major customers are rising, and new line expansions are being actively carried out, which is driving higher demand for filter replacements and accelerating new installation schedules.

Given our differentiated technological capabilities and extensive execution track record, we expect to secure larger scale orders than in the past in the chemical filter business. In the greenhouse gas reduction business, the start-up timing of new production lines at downstream customers has been brought forward by one year from 2028 to 2027.

Accordingly, installation and commissioning of the existing lines are scheduled to be completed within this year. In particular, beginning in the second half of 2026, we expect to generate revenue from new orders approximately 1.5 times larger than in the past.

In conclusion, for both semiconductor-related businesses, revenue recognition timelines are accelerating, and we expect stable revenue growth to continue over the next several years. For this year, driven by early order intake, we are projecting YoY revenue growth of more than 50%.

Now, I will turn to EcoPro HN's plan to expand sales to overseas customers. Both the semiconductor chemical filter and greenhouse gas reduction businesses are expanding overseas in line with the customers' strategy to secure global production bases.

In particular, customers are concentrating investments in Asia and the United States, which is accelerating production line expansions at those sites. The US production lines that were previously secured from us are currently in progress and are scheduled to be completed within this year.

We expect to secure additional orders in the first half of this year for deliveries scheduled in 2027. In parallel, we are steadily preparing for entry into the European market.

We are currently pursuing sales activities jointly with overseas partners and have completed technical briefings and are in discussions regarding on-site testing phases. Following successful testing, we expect these efforts to convert into actual orders.

In the fine particulate matter abatement business, we are focusing on environmental facilities for LNG power plant HRSGs. In particular, Taiwan has seen a sharp increase in the reliance of LNG power generation following the phase-out of nuclear power, and demand for related environmental equipment is expected to rise significantly as a result.

Leveraging our technological capabilities and proven order execution track record, we expect to secure additional orders within the first quarter. Thank you.

Hello. Now we have finished the answering for the pre-submitted questions, and we will now open the floor for live Q&A.

There are no further questions. We would now like to close the earnings call presentation.

Thank you very much for everyone for participating. Thank you.