Good afternoon, I'm Yoon-Tae Kim, Executive Vice President of the Finance and Accounting Team at Samsung SDI. I'd like to thank everyone for joining today's earnings call.

Joining me are EVP Jae-Gyun Oh from Business Management Operation, EVP Jong-Sun Park from Strategic Marketing Office, EVP Yong-Hui Cho from ESS Business Team, and VP Ik-Soo Kim from Strategic Marketing Team of Electronic Materials Business. The earnings call presentation will be provided with simultaneous interpretation and Q&A session with consecutive interpretation.

We will now begin Samsung SDI's 2025 4Q earnings call. Let me start with financial results for Q4 2025.

Q4 revenue was ₩3.9 trillion, a 26.4% increase QoQ and a 2.8% increase YoY. Operating profit recorded a loss of ₩299 billion.

Pretax income recorded a loss of ₩236 billion, which reflects equity income in affiliates and other factors, and net income showed a loss of ₩208 billion. Annual results showed revenue of ₩13.3 trillion and an operating loss of ₩1.7 trillion.

I will now present the financial status at the end of 2025. Factoring in capex and the increase in equity value of affiliates, assets rose by ₩1.7 trillion YoY to ₩42.3 trillion.

With the partial repayment of short-term borrowings, liabilities decreased by ₩345 billion YoY to ₩18.7 trillion. Following a paid-in capital increase through the issuance of new shares, total equity increased by ₩2 trillion YoY to ₩23.6 trillion.

R&D expenses for 2025 are about ₩1.4 trillion, an increase from the previous year, and capex is ₩3.3 trillion, a significant decrease year in year. For detailed financial status, please refer to the appendix.

Next, I will explain the Q4 financial results of each business unit. For the battery business in the Q4, ESS marked an all-time high quarterly revenue driven by expanded US sales.

Due to increased AMPC for local US production and compensations for reduced EV volumes, battery revenue grew 28% QoQ to ₩3.6 trillion. Operating profit showed a loss of ₩339 billion, significantly narrowing the loss compared to the previous quarter.

Electronic Materials Business recorded revenue of ₩237 billion and operating profit of ₩39 billion, maintaining a performance level consistent with the previous quarter. We now look at the 2025 annual performance.

In the battery business, due to factors such as changes in major countries' environmental policies, a decline in EV sales from the strategic US customer, and a delayed recovery in demand for small batteries, revenue decreased 21% YoY to ₩12.4 trillion, resulting in an operating loss of ₩1.9 trillion. In the Electronic Materials Business, despite improved performance in semiconductor materials, reduced sales of OLED materials led to a slight YoY decrease in revenue to ₩883 billion, with an operating profit recorded at ₩130 billion.

Moving on to our business highlights in 2025. First, we strengthened our ESS sales foundation.

Based on our exclusive non-China prismatic ESS solution, we developed the NCA-based SBB 1.7 and LFP-based SBB 2.0 to expand our product portfolio and solidify our sales foundation. We also expanded ESS capacity by repurposing the US local xEV line and reached a 50% global BBU market share based on battery cell sales.

Technological competitiveness was also consistently strengthened. ESS safety and high-power cylindrical battery technologies gained external recognition.

For all-solid-state batteries, we signed a joint development agreement with BMW and MOU with Hyundai Motor Company for robot batteries, steadfastly building our future technology foundation. Regarding electronic materials, next-generation green hosts and high thermal conductivity EMC were first applied in customers' new products.

We accomplished project awards on the ground of such strengthened technological competitiveness. We completed a project award for NCA-based 46-phi cylindrical cells from an automotive OEM and signed large-scale supply agreements for LFP prismatic batteries for ESS applications.

We also won some awards in the initial bid of the domestic ESS central contract market and commenced supply to global power tool customers by launching high-power tabless cylindrical cell. Next, our head of Business Management Operation will speak about the 2026 market outlook and business strategies.

Good afternoon. I'm EVP Jae-Gyun Oh from Business Management Operation.

Having been appointed as head of Business Management Operation at Samsung SDI at the end of the last year, I'm pleased to extend my greetings to our investors and shareholders through this conference call. Amidst challenging business environments, I feel a profound sense of responsibility in taking on this important position.

To ensure the company re-enters its growth trajectory, I will exert my utmost effort going forward. Now I will address the 2026 market outlook for each business unit and our business strategies.

First, the EV market. The global EV battery market is projected to grow about 16% YoY.

However, influenced by the easing of green policies in North America and Europe and adjustments of electrification strategies by major global OEMs, EV battery demand excluding China is expected to grow by only about 6%. On the supply side, weakening EV demand and strengthened regulations against Chinese batteries in North America are expected to intensify competition within Europe as Chinese companies expand their entry into the European market.

Next is the ESS market. With the expansion of AI data center investments, demand for power storage, UPS, and BBU will continue to grow, and the latest mid to long-term demand projection is anticipated to exceed the last quarter's projection.

In terms of supply, changes in the policy environment, such as the IRA and tariffs, are expected to expand supply opportunities for non-China firms through local production in the US. For small batteries, demand for cylindrical cells is rebounding, led by the professional power tools amidst the expansion of US data center construction.

Additionally, demand from new markets like E-two-wheeler and robotics is expected to continue growing. For pouch cells, demand for high-capacity batteries will increase, centered on premium models like AI phones and foldable phones.

Last is the electronic materials market. As AI server investments expand, semiconductor materials will continue their robust growth, and display materials are projected to grow, centered on IT and mobile OLED panels.

Let me now share our 2026 business strategies. As previously mentioned, we anticipate another challenging business environment this year.

However, we will mark this year as the inaugural year of our turnaround by implementing selection and focus for management efficiency, speeding up our response to customers and markets, and preparing future-ready technologies. First, we will maximize ESS sales to achieve 100% production capacity utilization.

Specifically, we will execute the seamless US mass production of the LFP-equipped SBB 2.0 to minimize the effect of the US EV demand decline and maximize profitability by leveraging AMPC incentives. Furthermore, we will capture a larger market share by scaling the sales of high-performance BBU products powered by the high-power cylindrical batteries featuring tabless technologies.

In the EV battery sector, we will maintain a stable sales foundation with existing customers while seamlessly expanding our reach to new customers starting this year to drive performance growth. We also plan to secure mid to long-term growth drivers by expanding orders for products based on new materials such as LFP and mid-nickel.

Furthermore, we will initiate our entry into new hybrid EV projects leveraging our aforementioned high-power tabless cylindrical batteries. Above all, we will closely coordinate with our customers to come to an agreement for production volume declines and lower utilization rates, which were the root causes of our performance deterioration.

For the small battery business, we will expand sales of high-power tabless cylindrical batteries to meet the recovering demand for professional power tools. Additionally, we will maximize sales by ensuring seamless mass production and supply aligned with customer schedules to secure first-in positions for our key customers' new flagship smartphones.

The Electronic Materials Business will accelerate the development of materials focused on emerging markets such as packaging and patterning materials for HBM and films for foldable smartphones to strengthen our mid to long-term growth foundation. At the company-wide level, we plan to meet the growing demand for ESS and LFP batteries while maintaining an efficient investment approach that prioritizes the utilization of existing lines over new capacity expansions.

Moreover, we will drive productivity innovation by developing integrated solutions for process improvements and equipment retrofits. We will also focus on strengthening cost competitiveness through refined product designs, optimized workforce management at each site, and monitoring of costs and inefficiencies.

Lastly, we will continuously enhance our mid to long-term technological competitiveness by differentiating our products through the development of ESS integrated systems, including real-time BMS control and cloud-based diagnostic solutions, alongside advancements in material technologies such as binders, conductive agents, and electrolyte additives. This concludes our 2026 business strategies.

Thank you. We now close the presentation and move to the Q&A session.

The Q&A will be held in Korean, followed by consecutive English interpretation for each response. Please raise your questions following the operator's instructions.

지금부터 질의응답을 시작하겠습니까. 질문을 하실 분은 전화기 버튼에 별표와

Now Q&A session will begin. Please press *1, that is star and 1, if you have any questions.

Questions will be taken according to the order you have pressed the number *1. For cancellation please press *2, that is star and 2 on your phone.

In order to allow as many Q&A chances as possible within the restricted time, we would appreciate only two questions per each participant. 처음으로 질문해 주실 분은 하나증권의 김현수 님입니다.

The first question will be provided by Younsuh Kim from Hana Securities. Please go ahead with your question.

네, 안녕하십니까? 질문 기회에 감사드립니다.

하나증권의 김현수입니다. 그 먼저 앞서 이 시장 전망하고 전략 방향성을 말씀을 주셨는데요, 실적 흐름은 어떻게 보시는지 궁금합니다.

올해 연간 실적 전망에 대해서도 말씀 부탁드리겠습니다. 그리고 두 번째로는 지난

4분기부터 미국에서 ESS 배터리 생산을 시작하셨는데요, 현재 수주 현황 어떤지 궁금하고요. 그리고 일각에서는 이 미국 내에서 한국 기업들의 양산 계획을 감안했을 때 ESS 배터리 공급 과잉 우려도 제기를 하고 있는데 이에 대해서는 어떻게 보시는지 궁금합니다.

감사합니다. Good afternoon.

Thank you for the opportunity to ask questions. My name is Younsuh Kim from Hana Securities.

I have two questions. The first question is that during the presentation you've discussed the '26 business environment and the company's strategic direction.

Could you provide your guidance for full-year performance? The second question is that following the start of operations at your US ESS line in Q4, could you update us on order momentum?

In addition, as industry players, especially Korean players, expand ESS capacity, how is the company assessing the risk of potential oversupply? Thank you.

네, 연간 실적 전망은 제가 답변드리겠습니다. 경영지원 담당 오재균 부사장입니다.

올해 실적은 앞서 말씀드린 것처럼 지난해보다는 시장 환경이 개선되고 있어

1분기 계절적 비수기 영향을 제외하면 분기별 개선이 이뤄져 상저하고의 모습을 보일 것으로 전망하고 있습니다. 하반기 중에는 분기 흑자 전환도 가능할 것으로 예상합니다.

한편 글로벌 지정학적 상황과 정책의 불확실성이 여전히 커서 고객들의 수요 변동성이 높은 상황이나 수요 감소 관련 조인트 벤처의 운영 효율화에 대해서도 파트너사들과 긴밀하게 협의를 진행하고 있어 이런 부분들은 연간 손익에 영향을 주는 변수가 될 것으로 보입니다. 사업 부문별로 보면 수요가 강한 ESS는 미국 현지 라인 가동이 본격화되면서

AMPC가 증가하고 관세 부담이 줄어들면서 수익성이 크게 개선될 전망입니다. 소형은 지난해 고객들이 재고 조정을 타이트하게 진행한 결과로 올해는 점진적인 판매 개선이 이뤄질 것으로 보고 있고 전자재료는 반도체 수요 호조 속에 견조한 성장세를 유지할 전망입니다.

전기차 배터리의 경우에는 연비 규제 완화, 보조금 폐지 등 정책적인 영향으로 OEM들이 전동화 전략을 조정하고 있어 수요 회복이 단기간 내 이뤄지긴 쉽지 않은 상황입니다. 그럼에도 올해 신규 양산 프로젝트들이 있기 때문에 적기에 공급할 수 있도록 차질 없이 준비해 가동률을 끌어올리고 거점별 라인 운영을 효율화하여 적자 규모를 축소해 나갈 계획입니다.

올해 대내외 경영 환경이 매우 어려운 상황입니다. 시장 수요에 긴밀하게 대응해 실적을 개선하고 미래 기술도 착실히 진행해서 실적 턴어라운드의 기점을 만들어 나가겠습니다.

이상입니다. This is Jae-Gyun Oh, EVP for Business Management Operation, and I'll be providing the answer to the first question.

As previously noted, the market environment this year is improving compared to last year. Excluding seasonal softness in Q1, we expect sequential quarterly improvement with performance weighted towards the second half.

We also expect to turn to quarterly profit in the second half of the year. Meanwhile, heightened global geopolitical tensions and policy uncertainties continue to drive elevated demand volatility among customers.

In response to demand softness, we are working closely with our JV partners for operational efficiency. These factors are expected to remain key variables that could impact our full-year profitability.

By business segment, profitability in ESS, where demand remains strong, is expected to improve significantly as US local production ramps up, driving higher AMPC benefits and reducing tariff burdens. In small battery, following customers' tight inventory adjustments last year, we expect a gradual recovery in sales this year.

In electronic materials, we expect to maintain solid growth momentum amid robust semiconductor demand. For EV batteries, policy changes, including relaxed fuel economy standards and the elimination of subsidies, are leading OEMs to recalibrate their electrification strategy, and as a result a near-term recovery in demand is unlikely.

Nevertheless, with several new mass production projects scheduled this year, we are preparing to ensure timely supply, ramp up utilization rates without disruption, and optimize line operations across sites in order to narrow operating losses. Despite a very challenging domestic and global operating environment, we are focused on responding to market demand in a timely manner, improving performance, and continuing to invest in future technology readiness with the objective of laying the groundwork for earnings turnaround.

Thank you. 두 번째 질문 미국 ESS 수주 현황 및 공급 과잉 우려 관련해서는 제가 답변드리겠습니다.

ESS 비즈팀장 조용휘입니다. 미국 ESS 시장은 AI 데이터센터 확산에 따라 전력 수요가 증가하는 가운데 non-China 배터리가 요구되고 있어서 당사를 비롯해 현지 생산이 가능한 배터리 업체들에게 기회가 확대되고 있습니다.

당사는 안전성이 높은 각형 폼팩터 제품과 삼성 배터리 박스 솔루션을 기반으로 라인 가동 계획에 맞춰서 수주를 확보해 나가고 있으며 특히 기존 하이니켈 제품뿐만 아니라 LFP 제품 라인업도 갖추면서 신규 고객향 수주도 확대되고 있습니다. 공급 과잉 우려 관련해서는 당사를 비롯해서 현지 배터리 업체들이 기존 EV 라인을 활용해서 ESS 캐파를 늘리고 있지만 제품 검증, SCM 구축 등 준비하는 시간이 필요하고 특히 고객들 니즈가 강한 LFP 양극재와 각형 폼팩터를 적용한 공급 캐파는 기술적인 역량도 필요하기 때문에 증설 속도가 더 제한적일 것으로 보고 있습니다.

수요 측면에서는 최근 ESS 프로젝트의 수주 트렌드를 보면 과거의 그 단발적인 프로젝트 중심에서 최근에는 2~3년 이상의 프로젝트 수주가 증가하는 등 고객들이 보다 중장기 물량을 확보하려는 경향이 강해지고 있습니다. 이런 수요 공급 상황을 감안할 때 단기간 내 공급 과잉 상태가 될 가능성은 크지 않을 것으로 보고 있으며 당사는 시장 변화를 면밀히 점검하면서 라인 계획을 운영해 나가도록 하겠습니다.

This is EVP Yong-Hee Cho from ESS Business Team, and I'll be providing your second question related to the orders of the ESS as well as potential oversupply. In the US ESS market, rising power demand driven by the growth of AI data centers together with customer preferences for non-China battery supply is creating expanding opportunities for locally-based battery manufacturers, including Samsung SDI.

Leveraging our highly safe prismatic form factor products and SBB solutions, we are securing orders in line with our production ramp-up plans. In addition to our existing high-nickel products, the expansion of our LFP product lineup is supporting increased order wins from new customers.

With respect to concerns about oversupply, while we and other local battery manufacturers are increasing ESS capacity by utilizing existing EV production lines, this requires time for product qualification and supply chain setup. In particular, capacity expansion for LFP products in prismatic form factors, where customer demand is strong, also requires advanced technical capabilities.

As a result, we believe the pace of such capacity additions will be more constrained. From a demand perspective, recent ESS order patterns indicate a transition from one-time project awards to a growing share of multi-year contracts, typically spanning 2 to 3 years or more, as customers seek to lock in medium to long-term supply.

Taking into account these demand and supply dynamics, we do not believe there is a high likelihood of an oversupply situation in the near term. We will continue to closely monitor market conditions and manage our production line plans accordingly.

네, 다음 질문 받겠습니다. 다음으로 질문해 주실 분은 JP모건 증권의 이선우 님입니다.

ESS 캐파가 증가하고 AMPC가 더 반영되면서 ESS 사업 수익성이 개선될 것으로 기대됩니다. ESS 사업 수익성이 어느 정도 올해 개선될지 설명 부탁드립니다.

그리고 AI 데이터센터 증가하면서 ESS뿐만 아니라 BBU 수요도 계속 증가할 것으로 보이는데요. BBU 수요 전망과 회사 올해 판매 전망에 대해 말씀 부탁드립니다.

감사합니다.

Good afternoon. Thank you for the opportunity to ask questions.

I also have two questions to pose. The first question is that with the US ESS capacity increasing this year and AMPC benefits being reflected, profitability in the ESS business is expected to improve.

Could you share your outlook on this? The second question is that given the expansion of AI data centers, how do you see BBU demand evolving, and what is your outlook for your BBU sales?

첫 번째 질문

ESS 수익성 전망에 대해서는 제가 답변드리겠습니다. ESS 비즈팀 조용휘입니다.

당사는 지난 4분기부터 미국 캐파 전환을 통해서 현지 ESS 캐파를 확대하고 있는 중이고 이를 바탕으로 올해 ESS 매출은 전년 대비 50% 가까이 증가할 것으로 전망하고 있습니다. 수익성 측면에서 보면 국내산 제품의 경우에는 미국 수출 비중이 아직 크기 때문에 관세 비용으로 인해 이익률이 상대적으로 저조할 것으로 보이지만 미국 현지 생산의 경우에는 AMPC 효과와 관세 절감 효과가 있어서 ESS 사업 전체적으로는 수익성이 크게 개선될 전망입니다.

특히 올해 4분기부터는 미국 LFP 신규 라인 가동 개시와 함께 관세 부담이 있는 국내산 수출 물량이 점차 페이드아웃되고 미국 신규 라인들의 초기 고정비 부담도 감소하면서 수익성 향상 효과가 본격적으로 나타날 것으로 보고 있습니다. 미국 ESS 라인 가동을 계획대로 적기에 진행해 가동률을 높이고 원가 경쟁력을 지속 강화하여 수익성을 개선해 나갈 예정입니다.

This is EVP Yong-Hui Cho from ESS Business, and I'll be answering your first question related to ESS business profitability. Since the last fourth quarter, we have been expanding local ESS capacity in the US through capacity conversion, and based on this we expect ESS revenue this year to increase by close to 50% year-over-year.

From a profitability perspective, margins on products manufactured in Korea are expected to remain relatively lower due to their still significant exposure to US exports and associated tariff costs. However, for locally produced US products, the benefits from AMPC and reduced tariff exposure are expected to drive a meaningful improvement in overall ESS business profitability.

Starting in the fourth quarter with the ramp-up of new US LFP production lines, tariff-exposed exports from Korea are expected to gradually phase out. In addition, as the initial fixed cost burden at the new US lines alleviates, we expect profitability to show a more visible improvement.

We plan to ramp up our US ESS production lines as scheduled, increase utilization, and continue to enhance cost competitiveness with the objective of improving profitability over time.

BBU 시장 전망 및 판매 계획에 대해서는 제가 말씀드리겠습니다. 전략마케팅 실장 박종선 부사장입니다.

BBU용 셀 시장은 아마존과 메타, 구글을 주축으로 한 클라우드 서비스 업체들의 적극적인 데이터센터 증설의 힘입어 2025년부터 2030년까지 연평균 약 14%의 고성장세를 지속할 것으로 전망됩니다. 또한 AI 대응용으로 랙당 출력이 확대된 서버 수요의 증가로 BBU의 요구 전력 증가, 빠른 충방전 속도 등의 사양이 요구되며 고출력 셀에 대한 선호가 강해지고 있습니다.

당사는 탭리스 기술을 적용해서 고출력 성능을 한층 높인 BBU 전용 셀을 연내 출시하여 제품 포트폴리오를 확대할 계획입니다. BBU의 최종 수요처가 non-China 요구가 강한 미국 시장인 만큼 당사 말레이 거점을 활용해 전년 대비 20% 이상 판매 확대를 추진할 계획이며 시장 내 영향력을 지속해서 강화해 나가도록 하겠습니다.

이상입니다.

This is EVP Jong-Sun Park from Battery Strategic Marketing Office. I'll be answering your question related to BBU demand and BBU sales outlook.

The BBU cell market is expected to sustain strong growth at a CAGR of approximately 14% from 2025 to 2030, supported by aggressive data center expansion by cloud service providers such as Amazon, Meta, and Google. In addition, as server power per rack increases to support AI workloads, BBUs are required to deliver high power, faster charge and discharge rates, and related performance specifications, which is driving stronger customer preference for high-power cells.

We plan to launch BBU-dedicated cells incorporating tabless technology to further enhance high-power performance within this year, thereby expanding our product portfolio. Given that end demand for BBU is concentrated in the US market, where non-China sourcing requirements are strong, we plan to leverage our Malaysia manufacturing base to drive more than 20% year-over-year sales growth and to continue strengthening our market presence.

네, 다음 질문 받겠습니다. 다음으로 질문해 주실 분은 미래에셋증권의 김철중 님입니다.

26년도 전자재료 사업부 실적 전망 어떻게 보고 계시는지, 시장 전망 및 판매 당사 판매 전망에 대해서 업데이트 부탁드리겠습니다. 감사합니다.

Good afternoon. Thank you for the opportunity to ask questions.

I also have two questions to ask. I am Cheol-Joong Kim from Mirae Asset Securities.

Last year results in cylindrical batteries for power tools were significantly impacted by customer inventory adjustments. Could you provide an update on current customer inventory levels?

Also in addition, how is demand for tabless-based products, and what is your sales outlook? The second question is that the Electronic Materials Business delivered solid results last year.

Could you share your outlook for the market and your sales expectations for 2026? 먼저 전동공구 시장 고객들의 재고 상황하고 탭리스 제품에 대한 수요 상황, 판매 전망은 제가 말씀드리겠습니다.

박종선 부사장입니다. 최근 금리 인하와 함께 미국 주택 시장 지수가 저점은 지나고 있지만 아직까지는 주택 경기 회복은 더딘 상황으로 보입니다.

반면에 최근

AI 관련 인프라, 데이터센터 건설이 증가하면서 전문가용 전동공구 판매가 늘고 있고 고객 재고가 지난해 많이 소진되면서 현재는 정상 수준에 가까워지고 있는 상황입니다. 특히 높은 배터리 출력 성능이 요구되는 전문가용 중심으로 수요가 개선되면서 탭리스 적용 제품의 수요가 증가하고 있는 상황입니다.

당사는 지난해 탭리스 제품을 주요 고객의 신규 프로젝트에 진입한 상황이므로 올해에는 본격적으로 판매를 확대해 나가도록 할 계획입니다. 또한 탭리스 적용 제품이 전동공구뿐만 아니라 BBU, 하이브리드 전기차로도 수요가 확대되고 있고 연내에 신규 프로젝트들에 공급할 예정이며 탭리스 캐파를 확대해서 판매를 늘려 나갈 계획입니다.

이에 따라 올해 원형 배터리 사업 내 탭리스 제품 매출 비중이 10% 이상으로 확대되면서 실적 개선에 크게 기여할 것으로 전망됩니다.

Once again, this is EVP Jong-Sun Park from Battery Strategic Marketing Office. I'll be answering your question related to the cylindrical battery inventory and demand and sales outlook for tabless-based products.

While US housing market index appears to have passed their trough following recent interest rate cuts, the recovery in housing market remains sluggish. In contrast, increased investment in AI-related infrastructure and data center construction is supporting growth in professional-grade power tools sales.

In addition, after large inventory reductions last year, customer inventory levels are now approaching normalized levels. In particular, as demand improves in the professional segment where higher battery power performance is required, demand for tabless-based products is increasing.

We entered major customers' new projects with our tabless products last year, and we plan to scale up sales more meaningfully this year. In addition, demand for tabless-based products is expanding beyond power tools into BBUs and hybrid EVs.

We plan to supply these products to new projects within the year and will increase tabless capacity to support higher sales. As a result, we expect tabless products to account for more than 10% of cylindrical battery revenue this year, contributing to overall performance improvement.

두 번째 질문인 전자재료 사업의 시장 및 판매 전망은 제가 답변드리도록 하겠습니다. 전자재료 사업부 김익수 상무입니다.

전자재료 사업은 반도체 및

OLED 시장 성장 전망에 따라 26년 역시 견조한 성장세가 지속될 것으로 예상하고 있습니다. 시장에 대해 말씀드리면 반도체 전방 시장의 경우 AI 및 데이터센터가 견인하는 고부가 제품 중심 생산 확대 및 범용 DRAM의 물량 확보로 웨이퍼 투입은 5% 이상 증가가 전망됩니다.

OLED 패널 시장은 부품가 상승에 따른 제품 가격 인상에도 불구하고 폴더블 등 프리미엄 제품 중심으로 패널 출하량은 견조할 것으로 전망하고 있습니다. 판매 전망에 대해 말씀드리면 반도체 소재의 경우 고방열 EMC, 메탈 슬러리의 주요 고객사 양산 진입을 통해 매출 성장이 예상되며 차세대 공정 대응용 패키징 재료 중심으로 포트폴리오를 확장할 계획입니다.

OLED 소재는 고효율 제품의 그린 호스트와 폴더블용 점접착 필름의 신규 고객 다변화로 매출 확대가 예상되며 향후 고색재현의 제품을 위한 OLED 소재 및 유기 패널 소재의 개발에도 집중할 계획입니다. 이를 바탕으로 전자재료 사업의 매출 확대를 지속 추진해 나가겠습니다.

이상입니다.

This is VP Ik-Soo Kim from Electronic Materials Strategic Marketing Team, and I'll be answering your question related to the Electronic Materials Business's market and sales expectations and outlook. In the Electronic Materials Business, we expect solid growth to continue in '26, supported by positive growth outlooks in the semiconductor and OLED markets.

With respect to market conditions, in the semiconductor front-end market, wafer input is projected to increase by more than 5%. This growth is driven by expanded production centered on high value-added products fueled by AI and data centers, alongside the efforts to secure volumes of commodity DRAM.

In the OLED panel market, despite product price increases driven by higher component costs, panel shipments are expected to remain solid, supported by premium products such as foldable devices. In terms of sales outlook, for semiconductor materials, we expect revenue growth driven by mass production ramp-ups with key customers for high thermal conductivity EMC and metal slurry products.

We also plan to expand our portfolio with packaging materials for next-generation processes. For OLED materials, we expect sales to increase, supported by customer diversification for high-efficiency green host materials and foldable display optical bonding films.

We also plan to focus on development of OLED materials and organic panel materials for high color gamut applications going forward. Based on these initiatives, we will continue to drive the expansion of our Electronic Materials Business.

네, 마지막으로 한 분만 더 질문을 받도록 하겠습니다. 마지막으로 질문해 주실 분은

The last question will be presented by Min-Woo Ju from NH Investment & Securities. Please go ahead with your question.

질문 기회에 감사합니다.

NH 주민우입니다. 저도 두 가지 질문 드리겠습니다.

첫 번째는 지금 저희 헝가리 공장 가동률이 매우 낮을 것으로 보이는데, 이 가동률 회복을 위한 대응 방안과 수주 진행 상황에 대한 말씀 부탁드리고요. 두 번째 질문은 올해 케펙스는 얼마나 계획하고 계시는지, 그리고 자금 조달 방안은 어떻게 준비하고 계시는지 궁금합니다.

이상입니다.

Good afternoon. This is Min-Woo Ju from NH Securities.

I have two questions. The first question is that following weaker sales to European customers last year, which led to lower utilization at the Hungary plant, could you outline your plans to improve utilization this year?

In addition, how is progress on new order wins with European customers? The second question is related to capital expenditures.

It actually declined year-over-year last year. How do you expect capital spending to trend this year?

In addition, how are you planning to fund your capital investments? 먼저 헝가리 가동률 개선 방안하고 유럽 고객 신규 수주 상황에 대해서 제가 먼저 말씀드리겠습니다.

전략마케팅 실장 박종선입니다. 유럽의 배출가스 규제가 완화되고 중저가 세그먼트로의 소비자 수요가 집중되고 중국산 전기차 확대 등 복합적인 요인으로 당사 주요 프로젝트들의 수요가 감소하면서 지난해 헝가리 공장 가동률이 매우 저조했는데, 올해는 개선 요인들이 있어서 전년 대비로는 많이 개선될 것으로 전망이 됩니다.

우선

3년 평균으로 적용되는 탄소 배출 규제가 유효한 가운데 기존 프로젝트 공급을 확대하고 올해 상하반기 각각 예정된 신규 공급 프로젝트들에 대해서는 계획된 일정에 차질 없이 양산하여 가동률을 점진적으로 높여 나갈 계획입니다. 또한 미래 대비를 위해 46파이 라인 신규 구축과 함께 일부 라인은 LFP 라인으로 전환하고 공폭 개조를 진행할 예정인데, 이를 통해 운영상 효율도 제고해 나갈 계획입니다.

한편 신규 수주에 대해서는 향후 성장성이 높은 볼륨, 엔트리 시장에 진입을 하고 신규 고객 확보를 추진하고 있습니다. 여러 고객들과 하이니켈, 미드니켈, LFP 등 다양한 양산 프로젝트 협의를 진전시켜 나가고 있는 상황이며 상반기 내에는 가시적인 성과가 있을 것으로 전망합니다.

이상입니다.

This is EVP Jong-Sun Park from Battery Strategic Marketing. I'll be answering the question related to the plans to improve utilization rate at Hungary plant as well as the progress on new order wins with European customers.

Due to a combination of factors, including relaxed European emissions regulations, a shift in consumer demand towards the mid to low segment, and increased penetration of Chinese EVs, demand for our key projects declined, which led to lower utilization at our Hungary plant last year. However, with several improvement drivers in place this year, we expect utilization to improve year-over-year.

First, with the 3-year average based carbon emissions regulations remaining in effect, we plan to expand supply for existing projects. In addition, for new supply projects scheduled for both the first and second halves of this year, we intend to proceed with mass production on schedule without disruption in order to gradually increase utilization rate.

We are also taking steps to prepare for the future by constructing new 46-phi production lines. At the same time, we plan to convert certain lines to LFP and implement manufacturing modifications, which we expect will further enhance operational efficiency.

With respect to new orders, we are pursuing entry into high-growth volume and entry-level segments and actively working to secure new customers. We are advancing discussions with multiple customers on a range of mass production projects, including high-nickel, mid-nickel, and LFP chemistries, and we expect to see more tangible progress in the first half of the year.

네, 그 케펙스 전망하고 자금 조달 계획에 대해서는 제가 답변을 드리겠습니다. 저는 경영팀의 김윤태 부사장입니다.

2026년 시설투자는 헝가리 46파이 라인 구축, 그리고 이제 미국의 LFP ESS 라인 개조, 말레이 거점의 원형 기재 탭 적용 등 미래 성장을 위해 필수적인 부분에 좀 집중하는 한편 투자 효율을 높여서 전체적인 케펙스 규모는 전년 대비 소폭 감소할 것으로 보고 있습니다. 그리고 그에 대한 그 자금 조달 관련해서는 투자 규모가 축소되더라도 아직 저희 영업현금흐름만으로는 전체를 좀 커버하기가 어려운 상황이기 때문에 투자 규모나 시기를 고려해서 보유자산 활용 등을 포함한 여러 가지 방안을 통해 자금을 조달해 나갈 계획입니다.

이상입니다.

This is EVP Yoon-Tae Kim from Finance and Accounting. I'll be answering the question related to capex outlook and funding method.

This year our capital expenditures will focus on essential investments for future growth, including the construction of 46-phi lines in Hungary, modifications to US LFP ESS lines, and the application of cylindrical tabless technology at our Malaysia site. At the same time, we are pursuing investment efficiency initiatives, and as a result we expect overall capital spending to decline slightly year-over-year.

With respect to funding, even with a reduced level of investment, it remains difficult to fully cover capital expenditures with operating cash flow alone. Accordingly, we plan to review a range of funding options, including the utilization of existing assets, taking into account the size and timing of our investments.

네, 마지막으로 저희가 온라인을 통해 사전에 취합한 질문에 대해 답변드리고 금일 컨퍼런스콜을 마치고자 합니다. 많은 투자자분들께서 전고체 배터리 양산 계획 및 최근 개발 현황에 대해서 물어봐 주셨습니다.

이에 대해서는 전략마케팅 실장 박종선 부사장께서 답변을 드리도록 하겠습니다. Lastly, we will close the call by answering one of the questions that we collected online in advance.

Many investors have inquired about all-solid-state battery mass production plans and latest development status. Jong-Sun Park, head of Battery Strategic Marketing Office, will provide the reply to this line of questions.

예, 답변드리겠습니다. 당사는 당초 계획대로

2027년 양산을 목표로 전고체 배터리 개발을 추진하고 있으며 지난 10월에는

BMW와 테스트 차량 개발을 위한 업무협약을 맺는 등 가시적인 성과도 거두고 있습니다. 최근 OEM들의 전동화 계획이 지연되는 분위기는 있으나 피지컬 AI 기술 적용으로 로봇 시장이 빠르게 성장하고 있고 탑재 공간이 제한적이고 높은 안전성과 출력을 요구하는 디바이스의 특성상 전고체 배터리에 대한 니즈가 커지고 있습니다.

이에 여러 로봇 업체들과 전고체 배터리를 활용한 협력 방안을 모색하고 있습니다. 이와 함께 도심에서 사람이나 화물을 소형 전기비행기 등을 이용해 빠르게 이동시키는 UAM, 즉 도심항공교통과 하늘에서 장기간 비행하며 통신, 관측 서비스를 제공하는 고고도 플랫폼 스테이션 등 최고 수준의 안전성과 에너지 밀도가 반드시 요구되는 신규 어플리케이션에도 비즈니스 기회를 확대하고 있습니다.

내년 양산을 목표로 시장 니즈에 대응해 사업 기회를 확대해 가면서 올해 내에 전고체 배터리 라인의 케파업 투자도 진행할 예정이며 계획한 일정에 맞춰 상용화할 수 있도록 준비해 나가겠습니다. 이상입니다.

In line with our original plan, we are advancing the development of all-solid-state batteries with the goal of starting mass production in 2027. Last October, we also signed an MOU with BMW to develop test vehicles, marking tangible progress in our collaboration.

While there has been some delay in OEM electrification plans, the robotics market is growing rapidly with the adoption of physical AI technologies. Given the limited installation space and the need for high safety and high power in such devices, demand for all-solid-state batteries is increasing.

In this context, we are exploring collaboration opportunities with multiple robotics companies utilizing all-solid-state batteries. In addition, we are expanding business opportunities in new applications that require highest levels of safety and energy density, including urban air mobility, which enables the rapid transport of people and cargo in urban areas using small electric aircraft, as well as high-altitude platform stations, which provide communications and observation services through long-endurance flights.

With the goal of starting mass production next year, we will continue to expand business opportunities in line with market demand. We also plan to proceed with capacity expansion investments for our all-solid-state battery lines this year and prepare for commercialization in accordance with our planned timeline.

네, 답변 감사합니다. 투자자 여러분들의 소중한 의견 감사드리며 주요 경영 의사결정에 참고하도록 하겠습니다.

그럼 이것으로 2025년 4분기 실적 설명회를 마치겠습니다. 추가 문의사항이 있으신 경우 당사 IR 팀에 연락 주시기 바랍니다.

감사합니다. Thank you very much for the answer.

I would also like to thank our investors for their opinions, and we will reflect them in our management decision-making going forward.