Good afternoon. I am Chung So-young, Head of the IR Communications Team at SK Innovation.

Thank you for joining the company's second quarter 2026 earnings presentation. On today's call, we have with me SK Innovation CFO Seo Kon-gee, Head of the Corporate Finance Planning Office Paik E-rag, and management from each of the businesses.

For the call today, the CFO Seo Kon-gee will first run through the company-wide business results for the second quarter, followed by presentations from each of the business divisions, and then we will have a Q&A session. Please note that the numbers we are presenting today have yet to be audited by the external auditor and thus are subject to change upon review.

With that, let me invite CFO Seo Kon-gee to present the second quarter highlights and earnings results. Good afternoon.

This is Seo Kon-gee, CFO of SK Innovation. Allow me by starting by thanking our shareholders, investors, and analysts for your continued interest in the company.

I will begin with the highlights of the second quarter of 2026. First, SK Enmove was able to post solid performance on the back of its product competitiveness in the high-end Group III lubricant base oil market and its global production and sales network.

Amid continuing geopolitical risk, SK Enmove, using its global number one Group III production capabilities and multiple production hubs, was able to address supply chain uncertainties. In addition, it has been able to use its sales subsidiary in each of the key hubs to quickly and flexibly address to changes in customer demand.

Going forward, SK Enmove, with its Group III product competitiveness and global business foundation, will strengthen its stable business structure while also further strengthening its competitiveness as a lubricant base oil provider trusted by the market and customers. In the case of SK On, in the second quarter of 2026, we have completed the unwinding of the BlueOval SK, which was the JV with Ford.

The former BlueOval SK Tennessee factory is now fully owned by SK On under the name SK On Tennessee. Moreover, as part of this restructuring, the former Kentucky factory is now fully owned by Ford.

SK On will be able to save on approximately 300 billion won in depreciation and 200 billion in interest expenses per year, which should ease the financial burden on the company. In addition, in November, we have signed a equity swap with EVE Energy to swap SKOJ and SKEUE shares, and this is expected to close within the quarter.

SK On will acquire 100% of SKOJ and fully divest its interest in EUE. As a result, SK On has gained a more flexible and proactive business framework.

Based upon this, it will respond to the EV and ESS customer demand in a more agile manner and strengthen profitability. In addition, portfolio rebalancing efforts will continue, and based upon the market environment and strategic needs, SK On will be able to review strategic alliances and co-op possibilities in many forms in a more flexible manner.

This was the highlights. Next, let me talk about the overall performance.

In the second quarter, revenue was up by 4 trillion 866.2 billion quarter-over-quarter at 29 trillion 157.2 billion won, driven by stronger revenue across all energy businesses, including refining and lubricants. On the operating profit side, due to the stronger profits on the lubricants and battery business, it increased by 1 trillion 325.1 billion won quarter-over-quarter to 3 trillion 487.3 billion won.

On the non-operating side, the recognition of SK On and SKIET-related PRS derivative valuation losses of around 1.2 trillion and SKIET-related impairment losses of approximately 1.4 trillion resulted in higher non-operating losses. To provide the breakdown in more detail, FX-related losses were 73 billion, product derivative losses 1.2 trillion, net interest expenses 251.9 billion, equity method gains 37.2 billion, and other losses 1.4 trillion.

Next, let me discuss our financial structure. As of the second quarter 2026, total assets did at 102 trillion won, and this was due to a decrease in cash as net working capital increased and less assets following the closing of BOSK JV unwinding.

It represents a decrease of 3.6 trillion versus 2025 end. Liabilities were 64.2 trillion won, which is a decrease of 5 trillion due to less borrowings and the closing of the BOSK JV.

The debt equity ratio was down by 20% points at 170%. Net debt was 23 trillion—23.7 trillion, and as cash balances decreased, it has been up by 1.1 trillion versus the end of 2025.

Next, we will go over the second quarter performance by company. We will have a look back on key companies and provide an outlook for the future.

For each of the results of each company, please refer to page 6, and on page 7, we will go over the look back and also outlook. Let us start with SK Energy.

Good afternoon. This is Chu Young-gyu, Head of Corporate Planning from SK Energy.

Let me discuss the second quarter performance. SK Energy second quarter operating profit was 651.2 billion won, down by 632 billion quarter-over-quarter.

Dubai crude, which surged on an average $128 in March, dropped to $79 in June, but the evaluation of inventory on book is reflected on an cumulative basis, inventory-related gains in the second quarter was still around 560 billion won. When excluding this effect, though the market was strong, profitability has declined due to the government's cap on crude prices and to turnarounds in May and June.

Crude prices and refining margins are expected to show a lot of volatility based on the changes in shipments in the Strait of Hormuz and Red Sea, degree of damages on Russian refineries, and flow changes in the oil and refinery products. Therefore, as uncertainty continues, rather than forecast the future, we will closely monitor the market and try to be flexible and quick to maintain optimal operations.

Thank you. Next, we will move on to SK Geo Centric.

Good afternoon. This is Kim Yong-soo, Head of the Management and Planning Office of SK Geo Centric.

For the second quarter, with regards to our overall utilization, we actually saw a decrease in the overall products. In the third quarter, if we look at the aromatics, because of these stocking there, and also on a seasonal basis, we do believe that there will be some recovery.

However, uncertainties on the external side will continue, and feedstocks also will be volatile. We do think that in terms of the overall performance versus the second quarter, it will be flat.

Yes. Next, on SK Enmove, we will discuss the performance there.

Good afternoon. On the lubricants business from SK Enmove CIC, I am Kim Mi-kyung, Head of Corporate Planning and Development Office.

For SK Enmove's operating profits, it was 503.4 billion quarter-over-quarter to 691.9 billion won due to the inventory effect and higher margins stemming from supply issues by peers due to the Middle East situation. In the third quarter, there could be some volatility based on the strait opens, but spreads are expected to gradually moderate if our competitors' supply issues are solved.

The recent geopolitical risks have pinned the market's attention to our stable supply capabilities based upon multiple production hubs, and the company is able to provide optimal operations using these multiple sites. In addition, we are able to supply in a timely manner to regional sales hubs and increase feed sourcing, which results in a framework for stable supply.

Going forward, we will leverage this supply chain capability, and we will continue to provide a differentiated value to customers and further solidify our leadership in the Group III market.

Next is SK Earthon. Good afternoon.

I am Kim Gyeong-jun, Head of Planning and Business Support at SK Earthon. SK Earthon's Q2 operating profit, due to a decrease in sales volume driven by the shipment schedule of its equity crude in China, decreased 34.8 billion Q-o-Q to record 29.9 billion.

For reference, the aforementioned figures exclude the performance of the Peru block, which, driven by higher oil and gas prices amidst the war, recorded operating profit of 79.6 billion won, up 16.9 billion Q-o-Q. Accordingly, both SK Earthon's own assets and the Peru block delivered solid performance.

For Q3, geopolitical uncertainty persists, but we're continuing efforts to sustain the daily output and improve profitability, including drilling additional production wells at our own blocks in China, Vietnam, and elsewhere. Next is an update on our key operations.

First, at China Block 17/03, the three additional production wells drilled to sustain output are being brought online sequentially, with completion expected within August. At Vietnam Block 15-1/05, we're proceeding as planned with the drilling of four additional production wells and the construction of production facilities at the STT field.

In addition, at Vietnam Block 15-1/05, development of the LDV structure is currently underway, encompassing production well drilling and facility fabrication. We're targeting first production in Q4 2026 upon completion of the related development activities.

Finally, at Vietnam Block 15-2/17, drilling of all appraisal wells have now been completed. Based on the drilling results, we will work with our partners on a detailed analysis of resource volumes and discuss the development plan.

Next is SK On. Good afternoon.

I am Kim Young-kwang, Head of Financial Support at SK On. I will address battery business performance in Q2 2026 and share our outlook for Q3.

Before presenting our Q2 results, I would like to note that starting this quarter, we have changed the financial statement presentation method for tax credit amounts arising under the US IRA tax credit for battery products made and sold in North America. Previously presented separately from sales as other operating revenue, these amounts are now judged to be substantively reflected in customer price negotiations and transaction terms, given the expansion of our North American business and changes in transaction structures.

Accordingly, the company determined that presenting these amounts together with sales as sales plus other revenue more appropriately reflects the actual operating performance and revenue structure of our North American business. This change constitutes a reclassification of presentation items and has no impact on operating profit, net income, or net assets.

Q2 revenue, driven by expanded sales volume in Asia, customer compensation payment, and higher AMPC Q-o-Q, came in at 2.94 trillion Korean won, a substantial increase from the previous quarter. As for Q2 operating profit, while there were one-time factors at play, I would like to emphasize that thanks to the increasingly visible effects of our cost reduction efforts, a genuine improvement in profitability was evident.

As a result, we swung to an operating profit of 821.8 billion. Turning now to our business outlook, first in Europe, local production incentive policies and EV-related support policies remain in place.

We will leverage our strength in European production bases to enhance operational stability and strengthen our negotiating power with customers. In North America, we're staying actively engaged with our existing OEM customers as EV demand gradually recovers, and we'll do our best to win and deliver additional orders in the currently robust ESS market.

In particular, we're moving quickly to expand orders with customers such as AI hyperscalers and power utilities, building momentum for SK On's mid- to long-term profitability improvements. We continue to pursue portfolio rebalancing, including the conclusion of the BOSK joint venture structure and the launch of SK On's standalone plan.

As a result, fixed cost reduction effects, approximately 300 billion won in annual depreciation and 200 billion in interest expense, will be reflected on a full-year basis. Together with our continuously pursued operational efficiency initiatives, these are expected to translate into profitability improvements over the second half of the year.

In the second half, we aim to enhance our responsiveness to market volatility and customer requirements, thereby securing EV sales expansion and ESS order visibility. Thank you.

Next is SK Innovation E&S business. I'm Kang Yoon-won, Head of Management Planning at SKI E&S, and I will present on SK Innovation's E&S business.

SK Innovation E&S posted Q2 operating profit of 105.9 billion won, down Q-o-Q as city gas demand softened heading into the off-peak season, and as we carried out planned plant maintenance to keep power supply stable through the peak summer demand months. In Q3, we expect SMP to rise as power demand enters into seasonal peak and oil prices climb.

However, with geopolitical instability heightening again, LNG spot market price volatility is expected to be a variable affecting earnings. That said, the Australia Barossa gas field, in which we hold an equity stake, is in the final stage of commissioning, and we expected to move into full commercial operation within the second half of the year.

We'll keep working to sharpen our cost competitiveness while doing our part to strengthen the nation's energy security. Thank you.

This concludes the presentation we prepared today, and now we will move on to the Q&A session. Before taking questions from the floor, we would like to first address pre-collected questions.

Investors and analysts shared with us many questions, and we've selected some of the questions where a lot of interest was shown. I will introduce the questions in order and invite the relevant business representatives to answer.

First question concerns battery business [unclear] many questions from our investors. I would like to invite SK On to address.

[unclear] Head of Financial Support Office at SK On, I will address our battery business turnaround strategy. First, our battery business turnaround is showing visible results driven by structural cost reduction.

In Q2, even excluding one-time factors, our earnings improved Q-o-Q through our cost reduction activities. We're focused on cost reduction as the path to fundamental competitiveness: cutting material costs through supplier diversification, value engineering, yield and other loss improvements, and stronger inventory management, while also lowering processing costs and SG&A through automation and AI-driven operational optimization.

We continue to identify and execute cost-cutting initiatives across the board and drive profitability improvement, and we expect even more visible results in the second half. On EVs, in North America, we expect volume recovery in the second half driven by the reintroduction of California EV subsidies and the recent recovery in demand.

In Europe, we're also in discussions with major OEMs on volume stabilization and pricing, and our portfolio is improving as we shift focus toward higher-profitability programs. In sum, cost cuts and recovering volumes are putting us on track for a gradual quarterly profit improvement in the near term, while over the mid- to long term, we will drive a qualitative shift in our business portfolio through ESS order growth, moving fast on both order-taking and production.

The second question concerns SK Energy's response to the Hormuz Strait situation following the Middle East conflict and its plans going forward. Investors have also shown strong interest in crude procurement security and sourcing diversification.

I would like to ask SK Energy to address this question.

Yes, this is Head of Corporate Planning at SK Energy. In Q2, we responded to the disruptions in Hormuz Strait transit by purchasing crude at Yanbu and Fujairah and drawing on swaps with government-held strategic resources or reserves.

We covered the remaining volumes through non-Middle East imports. The situation in the Hormuz Strait and the Red Sea is shifting rapidly, and as current conditions persist, some cargoes could be affected.

That said, by drawing on cargoes we've already secured and sourcing alternative cargoes and using reserve swaps, we don't expect any issues maintaining normal utilization levels for the time being. Reducing our dependence on the Middle East won't be easy in the near term, but over the long term, in step with government's crude sourcing diversification policy, we'll look at investing in facility upgrades and in expanding our diversification ratio.

That concludes our pre-submitted questions. We'll now move on to the live Q&A session.

Please note that consecutive interpretation will be provided for this Q&A session, and please state your organization and name before asking your question. 지금부터 질의응답을 시작하겠습니다.

질문을 하실 분은 전화기 버튼의 별표와

Q&A session will begin. Please press star one, that is star and one, if you have any questions.

Questions will be taken according to the order you have pressed the number star one. For cancellation, please press star two, that is star and two on your phone.

다음으로 질문해 주실 분은 신한투자증권의 이진명 님입니다. The first question will be provided by Jin-myung Lee from Shinhan Investment & Securities.

Please go ahead with your question. 네, 안녕하세요.

신한투자증권 이진명 연구원입니다. 먼저 질문 기회 감사드리고요.

전 두 가지 질문 드리도록 하겠습니다. 일단 첫 번째 질문은 저희 전사적으로 봤을 때 각 사업부문의 그런 재고손익에 대해서 좀 브레이크다운 해 주시면 감사할 것 같고요.

그다음에 두 번째 질문은 최근에 지금 하이닉스 용인 클러스터에

SK이노베이션 E&S 발전소가 들어간다는 기사가 있는데 관련해서 E&S의 중장기 계획과 타깃 시점에 대해서 말씀해 주시면 감사하겠습니다.

Yes, thank you for the opportunity to ask questions. I have two questions that I would like to ask.

The first question is that across all of the businesses, if for the company as a whole, if you could break down the inventory-related gains or losses, that would be appreciated. The second question that I have is that recently there have been news reports that for Hynix's Yongin cluster, that E&S will actually provide the power source for that.

If you could actually discuss E&S's mid- to long-term overall plans and the target timing for this type of operation. 네, 질문 감사합니다.

IR 정소영입니다. 문의 주신 전사 기준 재고 관련 손익과 회사별 현황에 대해 말씀드리겠습니다.

Yes, this is Chung So-young from the IR Communications Team. Thank you for your question, and maybe I can address the first question that you have had with relation to the inventory-related gains and losses across each of the business lines.

2026년 2분기 저가법 영향을 포함한 전사 재고 관련 손익은 1조 1,949억 원으로 전 분기 대비 1,697억 원 증가했습니다.

If we first talk about the second quarter, in terms of the full company, inventory-related gains, including the overall effect of the lower cost of market, that would be 1 trillion 194.9 billion won, which on a Q-o-Q basis was up by 169.7 billion. 회사별로 보면 SK에너지에서 5,623억 원, SK지오센트릭에서 922억 원, SK인천석유화학에서 4,469억 원, 그리고 SK엔무브에서 935억 원 수준의 재고 관련 손익이 발생했습니다.

다만 재고 관련 손익은 시황 변동에 따라 회계적으로 반영되는 항목인 만큼 이러한 특성도 함께 고려해서 봐 주시면 감사하겠습니다. To break it down by company, it would be for SK Energy, 562.3 billion; SK Geo Centric, 92.2 billion; SKIPC, 446.9 billion; and SK Enmove, around 39 billion—93 billion rather.

However, that have been said, please understand that this is an accounting item, and inventory-related gains and losses will fluctuate according to the market conditions. 네, 두 번째 질문에 대해서 답변드릴

SK이노베이션 E&S 강윤원입니다. SK하이닉스 반도체 공장이 들어서는 용인 반도체 클러스터에 1,050MW 규모의 LNG 열병합 발전소를 건설하는 사업이 중부발전과 SK이노베이션 E&S의 컨소시엄 형태로 추진되고 있습니다.

This is Kang Yong-gwon, Head of the Management Planning Office at SK E&S, and maybe I can address the second question. In the Yongin semiconductor cluster in which SK Hynix's semiconductor fab will actually be located, right now there is a consortium that we have formulated between KOMIPO and SK Innovation E&S to actually build a LNG cogeneration power plant that would be 1,050 MW in size.

해당 집단에너지 시설은 지금 클러스터 내의 팹

1호기부터 4호기에 필요한 스팀을 공급하는 것을 목적으로 하고 있고, 안정적인 에너지 공급을 통해서 반도체 생산 경쟁력 강화에 기여할 것으로 기대하고 있습니다.

This community energy facility will actually provide the steam that is necessary within the cluster for Fab No. 1 to 4.

By providing a stable energy supply, we do believe that it will contribute to increasing the overall production competitiveness of the semiconductor facility. 질문하셨던 그 타깃 시점과 일정 관련해서는 작년

12월부터 열원 시설과 LNG 배관 시설에 대한 공사가 진행 중입니다.

With regards to the timing and the schedule going forward, from December of last year, we have actually started the overall construction, which is ongoing, for the LNG pipeline and also the heat source facilities. 일정이 차질 없이 진행이 된다면

2030년 2분기 이후부터는 단계적으로 열병합 발전소 시설이 상업운전을 할 예정입니다.

If the overall schedule does not have any issues, then we do believe that from the second quarter of 2030, in a gradual manner, that the overall cogeneration facilities will be able to start the commercial operations. 앞으로도 차질 없는 사업 추진과 안정적인 에너지 공급을 위해서 최선을 다하겠습니다.

감사합니다. That have been said, going forward, needless to say, we will continuously focus to do our best to pursue this project and ensure that we can provide a stable energy supply.

Thank you. 네, 다음 질문 받겠습니다.

Next question,

The following question will be presented by Jin-ho Lee from Mirae Asset Securities. Please go ahead with your question.

네, 안녕하십니까? 미래에셋증권 이진호입니다.

질문 기회 주셔서 감사합니다. 두 가지 질문 드리려고 하는데요.

첫 번째는 정유 관련 질문입니다. 미국-이란 전쟁에 대한 리스크에 대해서 아까 대응 전략 말씀해 주셨는데, 이게 어느 정도 이제 안정화된 이후에 원유 수급처의 추가 다변화 가능성, 그리고 현재 정제설비에 대한 경질유 다변화 투자 등 이제 앞으로 원유 수급을 어떻게 할 것인지에 대한 대응 계획도 같이 말씀해 주시면 감사하겠습니다.

두 번째는 윤활기유입니다. 특히 이제 그룹

3 업황이 굉장히 좋다고 말씀해 주셨는데요. 하반기 실적에 대해서 추가 상방 가능성, 그리고 좋은 업황을 장기화, 그리고 이제 좀 극대화할 수 있는 가동률 상향 조정 등 추가 실적 개선 방안이 있으신지 궁금합니다.

감사합니다.

Thank you. This is Jin-ho Lee from Mirae Asset Securities, and I have two questions, and thank you very much for giving me the opportunity to ask the questions.

First concerns your refinery business. I understand that following the stabilization of the US-Iran conflict, could you comment on the potential for further diversification of crude sourcing, as well as the possibility of adjusting refining facilities toward a lighter crude configuration?

My second question concerns SK Enmove. You talked about how Group III lubricant base oil is performing really well.

Given that base oil market conditions, how much upside do you see for earnings, and are there any additional levers like raising utilization rates to fully capture the favorable environment and drive further earnings improvements? 예, 첫 번째 질문에 답변드리겠습니다.

SK에너지 경영기획실장입니다. 전쟁 이전 70% 이상이었던 중동산 비중이 전쟁 이후 절반으로 감소했고, 감소분은 미국, 캐나다, 아프리카 등 역외 원유가 채웠습니다.

이는 불가피한 상황에서 나타난 대응의 결과이며, 당사의 플렉서빌리티를 보여준 사례 정도로 판단하고 있습니다.

Yes, this is Chu Young-gyu from SK Energy. Prior to the war, the Middle Eastern crude took up about 70% of our sourcing, but after the war, that came down to less than 50%, and alternative sources came from the US, Canada, and Africa.

In the midst of all of these uncertainties and also conditions that was unavoidable, you can understand that as our flexibility in addressing the conditions. 아직은 가격 및 설비 효율성 측면에서 중동산이 선호되고 있습니다.

이러한 효율성을 고려하면 중동 의존도에 대한 급진적 변화는 어렵지만, 조달 안정성을 고려한 일부 변화는 있을 수 있고, 중장기적으로는 정부의 원유 도입 다변화 정책과 함께 추가 개선할 부분을 추가 개선할 부분으로 생각하고 있습니다. Given the prices and also the facility configurations that we have, we still prefer the Middle Eastern crude.

However, that said, it is very difficult to drastically and swiftly change our dependence on Middle Eastern crude. That said, we are also trying to secure the sourcing stability.

In the mid- to long term, in line with the government's crude diversification policy, we will come up with measures. 네,

SK엔무브 CIC의 김미경 전략기획실장입니다. 지금의 그룹 3 기유 업황은 매우 우호적입니다만 업황의 지속 여부와 영향 수준은 지정학적 변수, 시장 수급, 그리고 경쟁사 운영 정상화 여부 등에 따라서 매우 달라질 수 있기 때문에 현 시점에서 구체적인 말씀을 드리기 어려운 점 이해 부탁드립니다.

This is Kim Mi-kyung from SK Enmove CIC, and I will address your second question. As you mentioned, the current Group III base oil environment could work in our favor.

However, that said, how long it's going to last and how much it actually moves the needle would depend on a range of external factors: geopolitical variables, market supply and demand, whether competitors normalize operations. It's hard to put a specific number on it at this point.

다만 당사는 시장 상황과 수익성, 고객 수요, 원료 조달 및 물류 여건 등을 종합적으로 고려해 운영을 최적화하고 있으며, 글로벌 생산·판매 네트워크를 기반으로 안정적인 공급과 효율적인 판매를 지속하고 있습니다. We're optimizing operations based on a full picture, including market conditions, profitability, customer demand, feedstock and logistics, and we continue to run a stable, efficient supply and sales operation on the back of our global production and sales network.

향후에도 시장 변화에 유연하게 대응하면서 운영을 최적화하고 수익력을 지속 강화해 나가도록 하겠습니다. 감사합니다.

Going forward, we will flexibly respond to the market volatilities and work on improving further profitability. Thank you.

네, 다음 질문 받겠습니다. Next question, please.

다음으로 질문해 주실 분은 신영증권의 신홍주 님입니다.

The following question will be presented by Hong-joo Shin from Shinyoung Securities. Please go ahead with your question.

아, 네. 안녕하세요?

저 신영증권 신홍주 연구원입니다. 질문 기회 주셔서 감사합니다.

저 두 가지 질문 있는데요. 우선 첫 번째 질문은 전쟁으로 인한 그 고마진을 좀 향유하기 위해서 정유사들이 정기보수 시점을 하반기로 미루는 경향이 있는 것 같은데, 하반기에 저희 이노베이션 정기보수 계획 현황 좀 공유 부탁드리고요.

두 번째 질문은 이제 배터리 쪽에서 포드

JV 개편, 조지아 감원에 추가로 유럽이나 글로벌 생산라인에 대해서 좀 캐파 조정 계획 있으시면 공유 부탁드립니다. 이상입니다.

Yes, this is Hong-joo Shin. Thank you for the opportunity to ask questions.

There are two questions that I would like to ask you. First, since the outbreak of the war, I do think that for a lot of refineries to enjoy the high-margin situation, they have pushed back their turnarounds to the second half of the year.

For the company, in the second half, do we have any turnarounds scheduled, and if so, if you could share that with us, that would be appreciated. The second question that I would like to ask you is about your battery business.

After the JV with Ford was unwound, there was a lot of human resource restructuring that took place in North America. In addition to that, in the global production sites that you have, or for Europe specifically, do you foresee any further capacity adjustments?

예, 첫 번째 질문에 답변드리겠습니다.

SK에너지 경영기획실장입니다. 그 당사 그 하반기 그 정기보수 계획은 10월 달, 11월 달에 넘버쓰리 CDU를 대상으로 지금 계획되어 있습니다.

그 나머지 고도화 공정에 대한 정기보수 계획은 없는 상황입니다. 이상입니다.

Yes, this is Chu Young-gyu, the Head of the Strategy Operation Division at SK Energy, and maybe I can address your first question. For us, during the second half of the year, in terms of turnarounds, we do have the No.

3 CDU that is planning to go in maintenance across October to November, and for the remaining upgraded facilities that we have, we do not have any plans for further turnarounds. 네, 두 번째 질문에 답변드릴

SK온 기획조정실장 안곤입니다. 현재 배터리 수요 회복이 기대 대비 더디게 진행되는 만큼 당사는 아시는 바와 같이 지난 1분기에 본사 및 해외 법인의 인력 효율화를 실시하였습니다.

Yes, this is Ahn Geon, the Head of the Planning Office at SK On, and maybe I can address the second question that you have. Because the overall recovery in the battery market has been slower than expected, as you are aware, in the first quarter, at the HQ level and for our overseas subsidiaries, we did conduct some restructuring of our human resources.

당사는 계속해서 이제 고강도의 원가 절감 활동을 통한 운영 효율화와 자산 활용도 제고에 우선순위를 두고 있습니다. That have been said, at the company level, we continue to be very committed to engaging in very strong cost-saving measures to ensure that our operations remain efficient, and also to make sure that we can utilize the assets to the maximum level, this would be our overall priority.

다만 최근에는 중동 정세 불안에 따른 고유가 흐름이 지속되고 지속되면서 연료비 부담 완화 측면에서 전기차에 대한 소비자 관심이 다시 높아질 수 있다는 점은 긍정적인 요인으로 보고 있습니다. However, that have been said, in light of the Middle East uncertainties that are currently taking place, and as crude prices remain at a very high level, we do understand that there is a renewed interest on the consumer side for EV vehicles due to the fact that they actually will provide a lower fuel cost burden for each of the consumers.

We do think that this renewed interest is a positive factor. 한편 글로벌

AIDC 및 친환경 에너지 수요 증가 등으로 ESS 시장이 고성장할 것으로 전망됨에 따라 일부 EV 라인을 ESS 라인으로 전환하고 ESS 수주를 확대하는 등 기보유 캐파와 자산을 보다 효율적으로 운영할 수 있는 방안을 검토하고 또 실행해 나가고 있습니다.

In addition to that, in light of the overall global AIDC-related demand and also the demand for more greener forms of energy, we do expect that the overall ESS market will grow at a very high rate. Therefore, to convert some of our existing EV lines for ESS purposes, that will continue, and at the same time, we will also try to increase our ESS order book so that we can utilize our existing capacity and assets in a more efficient manner and also operate it as such.

Right now we're looking into the various ways on how we can do that and executing these plans. 그 외 추가적인 자산 및 운영 효율화 내용은 구체화되는 시점에 시장과도 적절히 소통하도록 하겠습니다.

감사합니다. Any additional initiatives that we have in terms of our assets and overall operational efficiencies, of course we will make sure to share that with the market and also communicate to the market about this when they are available.

네, 다음 질문 받겠습니다. Next question, please.

다음으로 질문해 주실 분은

The following question will be presented by Parsley Ong from J.P. Morgan.

Please go ahead with your question.

Hi, thank you for the chance to ask questions. I have three questions.

[unclear] target for securing more ESS orders by the end of this year? Second, given the low utilization rate at SK On's battery plants in US and Europe—

Excuse me, Parsley? Parsley?

Yes.

I'm very sorry, but the line that you have right now is breaking up a lot. Maybe could you speak a bit slower and start from the first question again, because we were not able to hear what the question was on our side?

Sure. For the first question, could you give us an update on your target for securing more ESS orders by the end of this year?

Second, given the low utilization rate at SK On's battery plants in US and Europe, are you considering any strategic options besides ESS? For example, will it be feasible to sell or repurpose the facilities for AI data centers, semiconductor manufacturing, or some other applications?

The third question is on lubricants. Can you give us an update on your thermal management solutions business, including refrigerants and HVAC systems?

Thank you. 네,

JP모건의 웅 님입니다. 먼저 질문할 수 있는 기회 주신 데 대해서 감사 말씀 드립니다.

총 세 가지 질문 드리도록 하겠습니다. 첫 번째 질문은 2026년도 말까지

ESS 수주 목표량에 대해서 업데이트 부탁드립니다. 두 번째 질문은 지금 현재 SK온의 미국, 유럽 배터리 공장의 가동률이 낮은데, ESS 라인으로의 전환 외에 AIDC나 반도체 공장 등을 위해서 매각을 한다든가 아니면 리퍼퍼스할 계획이 있으시다면 말씀 부탁드립니다.

마지막 세 번째는 열관리 솔루션 관련해서 뭐 냉매라든가 HVAC 포함해서 현재 진행 상황 말씀 부탁드립니다. 네, 먼저 첫 번째 질문에 답변드리겠습니다.

SK온 재무관리실장 김영광입니다. ESS 수주 상황 관련돼서 말씀드리겠습니다.

국내의 경우 2026년 2월 수주한 ESS 장주기 프로젝트는 약 1.8GWh 규모로 2027년 3분기 납품을 타깃으로 당사 서산 라인을 활용하여 생산할 예정입니다.

This is Kim Young-kwang from SK On, and I will address the first question. Domestically, the long-duration ESS project we won in February 2026 is a 1.8 GWh order, and we are targeting Q3 2027 delivery using our Seosan line.

추후 진행될

3차 ESS 입찰 건도 중앙계약시장 2차 입찰 결과에서의 성공적 요소들을 지속 활용하여 유의미한 수준의 목표를 수주할 수 있도록 지속 추진 중에 있습니다.

For the upcoming third-round ESS tender, we plan to build on the success factors from the second-round central contract market bid to maintain momentum, and we're targeting a meaningful award level. 이와 아울러 금년 배전망

1차 수주 관련하여 일부 물량을 신규 수주하였으며, ESS 장주기 프로젝트와 함께 지속적으로 수주의 노력을 다하겠습니다.

Separately, we recently won some volume in this year's first round of grid-connected ESS bidding, and alongside the long-duration ESS project, we'll keep working hard to secure further orders. 해외의 경우 당사는 플랫아이언 사 등 미국 고객 중심으로

ESS 기반을 확보하고 있습니다.

Overseas, we are building out our ESS base primarily around US customers like Flatiron. 플랫아이언 사의 잔여 물량은 고객과의 우호적 관계를 기반으로 협의 진행 중에 있으며, 기발표한 글로벌

20GWh 규모의 수주 타깃 역시 지속적으로 추진 중에 있습니다. 구체적인 물량과 고객은 수주 구체화 및 고객 협의를 통해 가능한 시점에 말씀드리도록 하겠습니다.

We are in discussions on the remaining volume with Flatiron, building on a strong customer relationship. We're also continuing to work toward a previously announced global 20 GWh per hour order target.

We'll disclose specific volumes and customers once orders are finalized and confirmed with customers. 두 번째 질문에 계속 이어서 답변드리겠습니다.

I will continue and address the second question as well. 당사는 자산 효율화 관점에서 다양한 옵션을 검토 중이나 현 시점에서는 리퍼퍼스 관련 정해진 바는 없으며, 향후 구체적인 내용이 있을 경우에 말씀드리겠습니다.

We are reviewing a range of options as part of our broader asset efficiency efforts, but nothing has been decided on repurposing at this point. We'll share details if and when there's something concrete to report.

세 번째 질문에 답변드릴

SK엔무브 CIC의 김미경입니다. 먼저 액침냉각에 대해 말씀드리겠습니다.

This is Kim Mi-kyung from SK Enmove. I will first address your question on immersion cooling.

현재 데이터센터 쪽은 글로벌 주요 서버사들과 인증 절차를 진행하면서 시장이 본격적으로 개화될 시점에 대비하고 있습니다. With regard to the technology, we are taking steps for certifications with global institutions and prepping for the full-blown opening of the market.

ESS는 방산과 선박 분야 등을 중심으로 이미 상용화를 완료해 이를 바탕으로 고객 기반을 넓혀 가고 있으며, 전기차 배터리 분야도 글로벌 완성차 업체와 함께 액침냉각 배터리 팩 기술을 공동으로 연구하고 있습니다.

With regard to ESS, the thermal solutions that we have developed is already commercialized in the areas of defense and also shipbuilding, and we are currently building on our customer base. When it comes to EV batteries, together with global OEMs, we are currently studying the immersion cooling battery packs.

HVAC과 관련해서는 현대차를 비롯해 글로벌 OEM들과 지속 논의, 협력 중에 있으며, 냉매 성능 내구 평가, 규제 및 물질 등록 등을 병행하면서 사업화 기반을 단계적으로 구축하고 있습니다.

With regard to HVAC, we are currently working in close partnerships with global OEMs, including Hyundai Motor Company. We are currently testing the performance of the refrigerant and also work to be in compliance with different regulations and also to register substances, and we are currently building upon the business foundation.

승용 분야에서는 올해 안에 실도로 주행 평가를 시작할 예정이며, 상용 분야에서는 전기버스에 대한 성능 평가를 통해 향상된 성능을 확인 후 실도로 주행 평가를 진행 중에 있습니다. When it comes to commercial vehicles, we are currently planning to do real-world road testing.

For commercial vehicles, we have completed performance testing for EV buses, and based on the confirmation of the performance, we are currently in real-world road testing. 진행되는 상황은 향후 적절한 시점에 업데이트 드릴 수 있도록 하겠습니다.

감사합니다. With regard to the further progress, we will provide you with an update in the future.

Thank you. 네, 다음 질문 받겠습니다.

저희 마지막 질문 받겠습니다. We will now take the next question, which unfortunately will be the last question.

마지막으로 질문해 주실 분은

The last question will be presented by Wooje Chun from KB Securities. Please go ahead with your question.

아, 네. 안녕하세요?

KB증권 전우제입니다. 세 가지 질문이 있는데요.

첫 번째는 윤활기유 쪽 질문입니다. 4월 달에 원재료인 등유랑 벙커C유 등이 이제 고점이었었기 때문에 2개월 후인 6월 달이 아마 고점이었어야 하고 7월부터는 가격이 하락했어야 하는데 계속 추가 강세를 보이고 있습니다.

이게 쇼티지로 7월 달 스팟 가격이 오른 영향인지 아니면 계약 가격을 평소보다 조금 더 장기로 가져간 영향인지 궁금합니다. 두 번째는 배터리 쪽인데요.

배터리 쪽에서는 하반기 미국에서 ESS 생산하면서 문제점이 발생하고 있는지 궁금합니다. 또 ESS 수요가 미국에서 더욱더 강해진다면 저희가 보유하고 있는 미국 공장에서 얼마큼 신규로 ESS 라인을 넣을 수 있고, 유휴 EV 라인 중에서 얼마나 또 ESS로 전환할 수 있는지 알려 주시면 감사하겠습니다.

또 한 가지 배터리 쪽 질문은 SK그룹에서 2030년까지 5GW 데이터센터 계획 중인 걸로 보도가 되고 있는데, 해당 규모의 데이터센터에서 필요로 하는 ESS 양은 얼마나 되는지, 몇 GWh인지 컨센서스가 궁금하고요. 또 해당 데이터센터 납품에 대한 이야기가 오가고 있는지 궁금합니다.

이상입니다.

Yes, thank you for the opportunity to ask questions. There are three questions that I would like to ask you.

First is about your lubricants business. If you look at the overall lubricants feedstock, in actuality, if you look at the April numbers for bunker C and other types of feedstock, there was a rise, and it seemed to be that in June it hit its highest level.

Thereafter, after June, in actuality, it should have declined. However, if you look at the overall performance for lubricants and base oil, it continued to rise regardless.

Is this because the overall spot prices have remained at a high level even in the July month, or is it because the overall contract prices that we had were taking at a longer term, and that affected the overall performance? The second question that I would like to ask is about your battery business.

Towards the second half of the year, with regards to US on-the-ground ESS production, have there been any issues that the company has been experiencing? Added to that, in the US market, if ESS demand does continue to grow, is it possible for further ESS lines or capacity to be created within the US?

For example, for the idle EV lines that you have as of now, would it be possible to convert further to ESS? The third question that I also have is related to the battery business again.

Right now there have been reports that at the SK Group level, there will be a data center created with a scope of around 5 GW. If that is the situation, for that data center, how many gigawatts of ESS is actually required to build the facilities, and are there any discussions with the SK Group in actually supplying or delivering the ESS that is needed for this data center?

네, 김미경입니다. 첫 번째 질문 답변드리겠습니다.

기유 시장 특성상 래깅에 따른 영향도 당연히 있겠으나, 중동 설비 파괴 및 공급 차질에 따라 구조적 수급 불균형이 발생했고, 이에 따라서 지속적으로 판가 인덱스가 강세를 유지한 영향으로 이해를 하시면 좋을 것 같습니다. 네, 이상입니다.

This is Kim Mi-kyung. Maybe I can address the first question.

With regards to base oil, it is true that there is somewhat of a lagging effect that we see. However, I think that if you look at the current situation, because of the facilities that have been damaged in the Middle East situation and also the variant supply issues that we see, structurally speaking, there is somewhat of an imbalance between supply and demand in the current situation.

Therefore, I think that that is the bigger driver that we see that has leaded to the strong sales index numbers that we see on prices. 네, 두 번째 질문에 답변드릴

SK온 기획조정실장 안곤입니다. 하반기 미국에서 ESS 하면서 문제점이라고 하셨는데, 저희가 생각하는 문제점은 특별히 없고요.

지금까지 이제 실질적으로 ESS를 비즈니스 진입하기 위해서 잘 준비를 하고 있습니다.

Yes, this is Ahn Geon, the Head of Planning Office at SK On, and maybe I can address the second question that you have. First you asked about for US ESS production in the second half, whether there are any issues that we have faced.

In our view, we don't have any issues as of now, and in actuality, we are in preparation to enter into the ESS business market. 두 번째로 신규 ESS 라인을 말씀하셨는데, 저희가 지금 진행하는 라인 전환 과정에서 발생하는 CapEx는 전환 방식에 따라 변동성이 클 수가 있습니다.

Secondly, you also asked about building out new ESS lines, and I think that for the line conversion CapEx that is required, I think that according to what method we actually use for conversion, there can be some differences in the numbers. 다만 당사가 추진하는 방식처럼 폼팩터 변경이 수반되지 않는 경우에는 설비 변경 범위가 제한적이어서

CapEx 부담이 상대적으로 크지 않습니다.

However, that have been said, for the current overall method that the company is adopting, which is to not change the form factor of the battery in itself, the overall scope of facilities that need to be changed are limited, it does not require a large CapEx. 당사의 ESS 라인 전환과 관련된 구체적인 사항은 현재로서는 구체적으로 말씀드리기는 어렵고요.

당사는 CapEx 집행 효율성 등을 종합해서 ESS 사업 경쟁력을 계속 강화해 나갈 예정입니다. As of now, with regards to the ESS line conversion, please understand that it's a bit difficult for us to share more details about this matter.

However, the company overall is trying to strengthen its ESS competitiveness in light of the CapEx efficiency that is needed to back this overall initiative. 오버롤하게 말씀드리면 사전적으로는 북미 및 서산 공장의 라인 전환을 현재 진행 검토를 하고 있고요.

향후 수주 규모를 감안해서 ESS 라인의 추가 전환 여부를 결정할 예정입니다. Maybe just broadly speaking, right now we are looking into converting the lines that we have in North America and also in the Seosan Korea facility, and according to how the order book does build up, I think that we could look into further conversion possibilities if necessary.

예, 세 번째 질문에 답변드리겠습니다.

SK온 재무관리실장 김영광입니다. 당사는 SK그룹 관계사 및 관련 협력 네트워크와의 협업을 통해 데이터센터에서 필요로 하는 전력 수요 패턴을 분석하고 있으며, 이를 기반으로 AIDC향 다기능 통합 ESS 제품을 개발하는 등 그룹사와 공동으로 ESS 사업 경쟁력 강화를 추진 중에 있습니다.

그렇지만 지금 질문하신 것과 같은 부문에 있어서는 구체적인 부분이 확정된 바가 없으므로 이 부분이 확정되었을 때 별도로 말씀드리도록 하겠습니다.

This is Kim Young-kwang from SK On, and maybe I can address the third question. Together with other SK Group companies, we do engage in various cooperation and also collaboration to look into the electricity demand patterns that data centers have, so that we can actually build out an AI data center more suitable ESS solution and package.

Therefore, at a group level, there is various collaboration that is taking place with regards to ESS, and we do want to strengthen our business through these initiatives. That have been said, for the project that you had mentioned specifically, there is nothing specific that we can say as of this time or share with you.

Once we do have more information, we will make sure to share when possible. 네, 이상으로

Q&A를 마치며 2026년 2분기 SK이노베이션 경영실적 설명회를 마무리하겠습니다.

With this, we would like to wrap up the Q&A session and also the second quarter earnings conference call for SK Innovation. 바쁘신 가운데에도 참석해 주신 투자자 및 애널리스트 여러분께 감사드립니다.

We would like to thank everyone on this call, all of the investors and analysts who have taken time out of your busy schedule to participate.