Hello, everyone. Nice to be here. It's really exciting to be here. Today, I'm going to talk about memory business units, vision and solutions that we have developed so far, and what we have in our pipeline for the next 10 years. I'm going to talk about three main subjects. One is DRAM, the other one is NAND flash, and finally, I'm going to talk about CXL-based solutions. This page shows I brought this foil so that I can make some context for today's talk. On the left side, you can see that we just announced 14 nanometer-based EUV DDR5 DRAM. Last week, I remember we announced 14 nanometer-based LPDDR5X, which is huge achievements for us because it can support up to 8.5 Gbps. Until recently, most of the low-power DDR DRAM application is mainly for mobile markets. Sometime we call this LPDDR as mobile DRAM. We are starting to see the server industry has very keen interest in adopting low-power DDR technologies, because we are starting to see Arm-based CPUs and a lot of different kinds of CPUs are coming online, and they are very interested in power reduction. We believe that this low-power DDR based on 14 nanometer technology is going to be a huge hit for the next three or four years. On the right side, you can see that this article is actually not published to the industry. It is an internal editorial written by our NAND flash engineering head. He talks about the histories of NAND flash development and the difficulties and challenges of NAND technologies. At the same time, at the lower bottom, you can see that he's talking about 1,000-layer 3D NAND. He's talking about 1,000 layers. According to back-of-the-envelope calculation, I believe by the end of 2030, I believe we can see 1,000-layer NAND flash. That is amazing when you think about the current mass-produced NAND flash. I joined Samsung, I started my career as a NAND flash designer, and at the time, we were talking about 8-layer 3D NAND, and now we are talking about 1,000-layer. That's amazing. The main problem with 1,000 layers is actually the capacity, capability of equipment. Based on the initial calculations, 1,000 NAND flash in one equipment can produce about 10 wafers per day. It is not economically viable at this time. We believe that the NAND industry will figure out a solution in the future. Talking about 1,000-layer, that's amazing. Also, it's a huge challenge for NAND flash industries, NAND flash suppliers to solve in the future. I believe we can. I'm going to talk a little bit about EUV. I have been talking about EUV for a long time actually, and this year, other supplier announced the plans of adopting EUV technologies. As you all know, our 14 nanometer DRAM has adopted five layers to the DRAM process using EUV technologies. Why do we need EUV? It is not just about cost reduction. We believe that below 14 nanometer, non-EUV DRAM is not viable in terms of processing technology. It's got to be EUV-based anyway. We have been working on this technology for the last 10 years, and we believe that the whole ecosystem for Samsung EUV production is almost ready. We are now ramping up a 15 nanometer using one layer EUV and five layer 14 nanometer EUV. The 14 nanometer ramping up speed is pretty good. It's pretty fast based on our initial assumption. We believe that this EUV technology will enable us to introduce sub five nanometer DRAM technology within the next, hopefully 10 years. If we can achieve that will increase the bit density of DRAM more than three times. It's going to be like then we can even be able to see 64 gigabit monolithic DRAM in the future. That will give us huge density boost for the whole industry to enjoy. For example, another thing is that not just about processing capability, EUV also gives us a huge boost in terms of productivity. How can we do that? Well, using EUV, you can basically reduce the number of steps for DRAM processing. The number of steps in the future will reach up to 1,000 steps when without EUV, you cannot have economically viable DRAM products. This is essential, and productivity increase is a huge impetus for us to pursue this technology relentlessly. What can we do about it? What can we provide to the industry with this EUV technology? Well, right now we've been able to develop 512 gigabyte DRAM module. In the near future, I believe that we can reach up to one terabyte module. That's huge density. It's almost like a SSD density. With this technology, we believe that we can provide high density modules, and that's very critical because all the CPUs coming to the market these days will eventually still keep the DRAM channels right next to the CPU, and the number of channel cannot be increased over the years. Right now, some CPU is supporting up to 60 channel, sometimes eight channel. That kind of number is the ballpark number, and if you have limited number of DRAM DIMM channels, then only way you can increase the density is increase the density of module cell. We believe that EUV will give us nice density boost. Right now, we are developing a 24 gigabit monolithic DRAM with a 40nm technology. Eventually we can provide 32 gigabits. With Samsung's package technology, we can stack all those DRAMs on top of each other, and then we can make huge density DRAMs. It'll be very exciting. Not just our DIMM, we also can provide low power DDR density up to 128 gigabyte. That means we can say that low power DDR technology will be adopted by server industry from now on. With that density, it really makes sense for them, right? All the CPU industry's main concern right now is how to reduce power consumption, because power is basically translated into the energy, and also it'll increase the temperature of the whole system. Without managing temperature properly, you cannot improve the performance. Power is performance. With the LPDDR5, with that high density, we believe we can provide nice thermal profile for server application. That's why I've been talking about LPDDR5X. EUV, that's a future technology, and Samsung has been working so hard to introduce this technology to the market, and we believe from 14 nanometer, our EUV-based DRAM will be in full production next year. Okay, I'm going to talk about NAND flash. This foil is a little bit complicated, but I really have to talk about these technologies, because right now we have two different NAND flash technologies. One is floating gate based, the other one is charge trap based flash. On the lower bottom, you can see that floating gate based NAND flash. One of the main suppliers of NAND flash is still producing that technology. I think you know who. The technology itself can be described by its name, floating gate. Floating gate means that all the charges, electrons and holes, are trapped inside, stored inside the floating gate. The floating gate is isolated from adjacent floating gate. It can store the charges pretty nicely, it can retain the charge for long, long time, and that's perfect for TLC or even QLC technologies. I think most of the NAND flash in the future will be, if not now, will be based on CTF. On the left top corner, this is CTF. This is a cross-section of cell technologies, you can see that a CTF, there is small Si3N4. That's where we are storing charges. The red line, that is all connected together. The charges inside those layer, that's not conducting layer, that's a dielectric layer. All the charges are stored locally in that red area. Because all those charge layers are connected together, a single line, that means your charges tend to dissipate horizontally. Right? That means it's really hard to have a TLC or a QLC technology, because you have to retain your charge in a very small area for a long time. If your charge tends to drift away, then you may lose your data, right? So far, the main QLC technologies has been supported by these floating gate technologies, because they're easy to design a QLC, so that you can have nice density boost. On the right side, why are we doing this CTF? Why is Samsung doing CTF instead of floating gate? CTFs, you can squeeze the cell height very tightly. You can squeeze more data in the same volume of silicon cell. In terms of bit growth, that really makes sense. It's more economical. That's one of the reasons why all the NAND flash suppliers are transitioning from floating gate to CTF. Samsung has been the pioneer of these technologies. This is the market share of QLC on the total NAND flash. Oh, okay. In the QLC market, what is the market share of Samsung? Just 10%. Very small. Compared to Samsung's more than 30% market share of NAND flash, this is pretty small, actually. When we talk about CTF-based QLC, Samsung's market share is 100%. That means almost all the 100% CTF-based QLC is manufactured by Samsung. I think it has a huge implication, right? We are the pioneer of CTF-based, most economical technology-based QLC provider. Where are we selling? We are selling SATA-based SSD to the off-the-shelf market. On the left side, you can see that on the consumer SATA SSD sales, we account for about 45%. Almost half of the SATA market for off-the-shelf is occupied by Samsung. Within that SATA, QLC accounts for about 40%. A little bit less than 20% is occupied by Samsung CTF-based QLC. The market response was pretty good, actually. When I checked the field failure rate, it is on par with TLC or even MLC-based SSD. That means our quality control and manufacturing capability is superior to existing technologies. As you can see, SATA market is shrinking right now. Everybody is trying to move from SATA market to NVMe market. What are we doing right now? Okay, this is enterprise SSD market. This is enterprise, like HP, Dell, or Lenovo, those kinds of things, not including data centers. In that market, our QLC SSD is 1.1% market share. We are shipping, actually right now, to enterprise server provider with our QLC SSDs. Within that QLC sector, our market share is close to 100%. Yes. We've been shipping this CTF-based technology, very difficult technology to have QLC capabilities because of the cell leakage issues. We've been almost sole provider of these technologies. Why so hard? I explained to you why so hard compared to the floating gate, what can we do about it? Yeah. It has to have software technologies. For example, ZNS QLC. This ZNS, it stands for Zoned Namespace. What it does is that it stores the data according to their property. If you can do that, you can increase the lifespan of these QLC cells. All those identical property data are aggregated together, we can apply our special formula technologies to particular data sets. By doing that, we can increase the lifespan and reliability of QLC. This is one of the technologies we have to develop for QLC adoption, wide adoption by industry. Right now, we are working with one of the top NAND flash SSD suppliers to define these specifications, we believe that this cannot be done by Samsung alone. Samsung has been expressing the value of the open innovation, we are trying to make this QLC ecosystem, not just by hardware, but also for software with other suppliers. This has been going on for some time, I believe last week in Silicon Valley, we had a OCP Global Summit, we talked about the ZNS technologies to the server industries, they are hyperscalers, the reception was enormously warm. We believe that we can create more software technologies to make sure that this QLC SSD is widely applied to the whole industry. What is going to be the future of this QLC? It has been known that Samsung has been a little bit reluctant to aggressively introduce this technology. The main reason, as you can understand, that the software is not ready, the whole ecosystem is not ready. We are trying very hard to make sure that this ecosystem is built before we announce these technologies. As I said, our consumer-based QLC is already in the market, we are shipping our enterprise-grade QLC SSD to the enterprise server companies. Eventually, it'll be introduced in the mobile space within the next 3 or 4 years. The total market size of mobile is so huge, going into the market, if we don't go to the mobile market eventually, TLC will not be blossoming into the main industry. We are working very hard to make sure that we can eventually go into mobile market. One trend these days we can notice is that one of the high mobile provider in Cupertino is having a 1 terabyte mobile storage, other flagship mobile providers in Korea and China are trying to do that. That means the need for high-density NAND flash storage inside the mobile is growing. Although it is not that substantial these days, it will grow every year. Because of the bill of material, mobile phone is so limited, there is no way we can put a 1 terabyte or 2 terabyte TLC or MLC-based NAND flash inside the mobile set. Eventually that will drive the needs for NAND flash suppliers to come up with more economical solution. We believe one of the economical solution for high storage mobile market in the future will be none other than TLC-based NAND flash. We will see. Okay, I am going to talk about last subject. This is CXL. CXL stands for Compute Express Link, and we started working on this technology from 2019. Industry has formed a consortium to promote these technologies. The main idea of CXL is, before, all the CPU has memory control ability. So memory has to be right next to CPU on the DIMM channel, as I said a couple of slides before. But as I say, even though we used EUV technologies to increase the density of DIMM module, it has limitations, right? A CPU can only access a DIMM, high-speed main memory. But these days, a lot of accelerated technologies are coming onto the market, like GPUs and smart NICs to deal with big data analytics and AI. So, the needs for accessing high-density, high-speed memory is growing rapidly. Industry-wise, there is a consensus that, we may have to liberate memory cell from the small number of DIMM channels. What about we can put the memory in the center of the computer architecture and let all the CPUs and GPUs or any other accelerators to access that huge pool of memory directly? That is the main reason industry has come up with this CXL interface. We announced the prototype of this CXL memory. We call that as an expander, not module. We call it expander. That is a standard name for this CXL hardware. We introduced prototype of the CXL memory expander in, I believe it is May this year. We are now showing a live demo to the industry last week, and everybody was very excited about these two technologies. Having defined the specification is one thing, and having real product working seamlessly with the existing hardware system is another thing, is huge thing, acceptance was very good. I believe that CXL memory is not about hardware, as I said. It is like a TLC. You have to develop a software ecosystem to make this technology accessible to the whole industry. Before, only NAND flash industry has been very aggressive in terms of software ecosystem building, and we believe that same thing will happen for DRAM industry. As we shrink further and further, it is really hard to guarantee the integrity of cell itself. There is huge density. For example, 1 terabyte DIMM, I do not know how many errors we can manage. This technology is at the right time because each CXL memory expander has its own controller, like a SSD in NAND flash. That means you can do a lot of great things with software to manage the DRAM itself. Even though we go develop in the future sub five nanometer DRAM and all the cell has to be managed carefully so that the user does not see any single bit errors or any other different kinds of errors. The EUV-based high-density module, combined with CXL, which has the capability of managing memory cell, is a perfect combination. That's why we are so excited about these technologies. One of the way to allow industry to evaluate this technology is we started to develop a software solution for this CXL, not just hardware. We came up with SMDK. That's a scalable memory development kit. We developed that by ourselves, and that's open source. We provide that solution to the Linux community, so that people can evaluate this CXL memory expander with our software solutions. What does it do? It manages. We have existing DIMM channel-based conventional DIMMs, also we have this huge, high density CXL-based memory. How we can manage two different kinds of memory resources. That's this software is providing. That software allows this heterogeneous memory environment to be working closely together so that we can provide more bandwidth and low power, and at the same time optimize the resources of this memory system. This is really exciting. This is really exciting technology. I think today's talk is about 40 minutes. I decide to present my material for about 30 minutes so that we can have about 10 minutes left, so that I can get some questions from you. Our vision is very clear. Not just having a high market share and introducing technology and technology each year. We just have to come up with element technologies for the whole industry, like EUV and QLC and CXL solutions, memory solutions. In about 10 years, there's going to be a lot of technical breakthrough we have to come up with. By doing that, we can make this whole industry very healthy. Instead of just staying as a technical leader in this industry, we have this huge obligation to provide to the whole industry the key element solutions. To do that, we are very focused on building ecosystem with the concept of open innovation. We will be more open, and we will share our knowledges and solutions with the whole community so that we can have a much more sustainable and consistent technology to the market. Everybody's talking about metaverse and VR, AR, AI. Even though memory and solution is not that fancy compared to all those new technologies, but at the bottom level, memory has to be very, very critical and solid. It has to be the groundwork for the whole industry to prosper in the future. We feel great responsibilities and We feel it's not just about making money and having a big market share. We are very interested in make this whole industry as healthy as ever before. Thank you. Hi, everyone. Good morning. Good afternoon. My name is Shawn Han. I'm the Senior Vice President of Marketing at Samsung Foundry. I'm very pleased to share with you today, to share where we are heading and how much progress we've been making during my presentation. As you can see from the screen, the title of my presentation today is Samsung Foundry's Leadership in the New Digital Era. This is very exciting topic for all of us at Samsung Foundry. I hope that by the end of my presentation, you'll have a better understanding of our company and how we will continue to establish our leadership position in the foundry market. With that said, let me begin with a quick overview of today's agenda. My presentation today consists of four main parts. The first covers unexpected rise in foundry market opportunities due to unprecedented demand. After that, I'll share a Samsung Foundry business update. Then I'll touch on the main topic I would like to discuss today, how Samsung Foundry is maintaining its leadership in technology, operations, and service. Finally, I'll wrap up my presentation with some key takeaways. As you know, the semiconductor market has historically been driven by key volume drivers. Personal computer drove the market in the early 2000, with mobile applications on smartphones coming next. However, these days, a single application simply cannot drive the market. Right now, the edge device and IoT applications connect virtually everything in the world to generate big data, which can be used for deep learning and accelerate digital transformation. Experts predicts that by 2030, every individual in the world will have approximately 15 connected devices. You can imagine just how much data each of us will be generating. On top of that, deep learning has revived AI, and HPC facilitated by data centers is making AI an essential part of our lives. All of these things will be accelerated thanks to high-speed 5G wireless communication technology. Here, you can see a breakdown of foundry market opportunities by applications and their respective growth rates. Firstly, mobile applications led by smartphones will continue to be the main volume driver for 5G technology. HPC is expected to have the highest growth rate with a CAGR of 17%, and IoT, specifically connected devices and automotive applications, will also show steady growth led by electric and/or autonomous cars. When we combine all of these applications, it becomes clear that foundry market opportunities in the short to mid-term are very or extremely attractive. On the right-hand side, you can see the respective growth rates of various nodes. All applications require competitive technology, and the applications I just mentioned will require advanced nodes such as FinFET and EUV-based technologies from 14 nanometer to three nanometer. As you may well be aware, there are not many players that can provide these advanced technologies. Of the companies that can, Samsung Foundry is a key player, especially when it comes down to seven nano and beyond. I think this makes clear just how tremendous an opportunity this is for our company. Now, I'll move to the next item on today's agenda, Samsung Foundry business update. This slide covers some of the Samsung Foundry's key milestones. Samsung first entered the foundry market in 2005, establishing an independent business unit 2017. In 2019, we announced Vision 2030, our plan to become the number one foundry in the world. In order to achieve this goal, we plan on investing approximately $150 billion into our non-memory semiconductor businesses. By 2030, we hope to become a true pure foundry player, a leader in terms of technology, operations, and service. Throughout our history, we have made several defining moments. Silicon supply is a key component of the foundry business, one that cannot be supported without manufacturing facilities and competitive technology. As you can see, in 2005, Samsung Foundry launched the first 12-inch S1 line. In 2011, with our S2 fab in Austin, Texas, we became the first in the industry to offer High-K metal gate technology. Another foundry industry first was our FinFET technology, which allowed us to make a quantum leap in terms of performance and power. We achieved another world first with our adoption of EUV technologies at our 7-nano, S3 line. This year, we opened our S5 line in Pyeongtaek. We'll be announcing a new fab in the U.S. very soon. What you can see in this slide is an overview of our locations in our current fabs, as well as the new fabs that we plan on building in the near future. Two of our campuses, Giheung and Hwaseong, are very close to one another, about an hour drive south of Seoul. Our Pyeongtaek fab is just about a 30-minute drive south of Giheung. As mentioned earlier, our S2 line is located in Austin, Texas. We plan on building another fab in the U.S. in the near future. Together, these fabs have enabled us to nearly double our capacity from 2017 to 2021. Will allow us to triple our capacity by 2026. It's time to talk about today's main topic. As I explained on the business milestones slide, our goal is to become the number one foundry in terms of technology, operations, and service by 2030. Please allow me to discuss these focuses one by one to demonstrate why we at Samsung are so confident that we can become the foundry market leader. There are many technological offerings on our roadmap, including our advanced nodes, which cover 14 nanometer and beyond. First, there's our FinFET technology, which is among the most advanced in the semiconductor industry. I mentioned earlier how we introduced FinFET for the first time in the foundry industry for 14 nanometer. We maintained our leadership through continuous innovation and evolution. Innovation, in this case, means making a big jump towards full node migration, while evolution means making gradual improvements to the mother technology. As you can see from the chart, after FinFET, EUV technology came, followed by the latest innovation, GAA, Gate-All-Around. Each mother technology has been gradually improved. For example, we sometimes enhance performance or power reduction, and eventually scalability. When we improve scalability, we change the number before the name of the node. As of today, 3GAA is about to go into mass production. Two nanometer and 17LPV were announced last month. As shown in the roadmap, 4LPP and 3GAA are the closest to mass production, with 3GAP following soon. Of course, all of these others are already in volume production. Here's a short video that can give you a better idea of what GAA is and how impressive it is as a technology. In an ever-evolving industry where growth is accelerated by the transformation of high-performance computing, AI, and 5G, the need for higher performance and lower power chips, together with increased functionality, continues to become an industry requirement and challenge. FinFET is running out of steam as the current industry solution. For advanced nodes, Samsung Foundry developed the world's first Gate-All-Around technology, MBCFET, based on nanosheet architecture. MBCFET improves PPA scalability and offers design flexibility over FinFET. Its larger effective channel width for a given footprint derived from vertical stacking provides improved drivability and performance by 45%. In addition, MBCFET offers continued power scaling over FinFET. For the first time in many generations, MBCFET restores supply voltage scaling, which lowers the power consumption for the same performance. MBCFET enables continued library and SRAM area scaling over FinFET, while maintaining performance through flexible nanosheet sizing and vertical stacking. Designers are no longer limited to quantized widths in FinFETs and can use tunable nanosheet sizing for increased design flexibility. MBCFET enables 45% area scaling over FinFET, resulting in greater system functionality with lower power. MBCFET scalability and optimal PPA provides improved experiences in this era of AI, HPC, and 5G applications. MBCFET technology is well-suited for various AI applications such as robotics, autonomous driving, object recognition, and natural language processing. The extreme performance and throughput requirements of AI training workloads pushes the energy consumption and implies that these hyperscale data centers are continuously power limited. Scaling this power wall requires new low-power technologies without compromising performance. MBCFET is the right solution for green data centers. Smart cities built with 5G platforms utilize GAA technology. 5G's data bandwidth allows for massive connectivity amongst billions of devices and transmission rates up to 1,000 times of 4G. 5G offers improved user experience. 5G's ultra-low latency enables autonomous driving and real-time remote surgery. MBCFET enables the realization of 5G's true potential. Since 2000, Samsung has been leading the way in the development of 3-nanometer GAA process by leveraging its proprietary MBCFET technology. Samsung Foundry GAA is therefore best suited to fulfill the needs of a new generation of chip designs and applications. Samsung Foundry. Samsung Foundry has remained a strong player when it comes to CIS ISP, that stands for image signal processing chips, and DDI applications by offering the most advanced technology in the market. That includes our 20-nanometer, our latest innovation, which is based on planar transistor technology. Samsung Foundry has a long history with MCU, with embedded flash and RF technology. The latest technology is also 20-nanometer. However, as I mentioned during the opportunities slide, since HPC, the automotive sector, and the smartphones with advanced cameras require the most competitive technology, the need to migrate to the next node is unavoidable. The next node, in this case, being 14-nanometer FinFET technology. In anticipation of this, Samsung Foundry has already initiated that migration from RF for 4G and 5G and has been very successful in production over the last few years. Based on that experience, another migration is ongoing with eight nanometer RF, which was the most optimized RF technology in the FinFET era. To help address price concerns for CIS, DDI, and MCU applications, we proudly announced 17LPV, a low-cost version of FinFET technology. Another important migration is embedded MRAM. Since embedded flash has faced barriers with FinFET, embedded MRAM should be the best candidate to replace embedded flash. Going forward, we will integrate embedded MRAM on top of our 14 nanometer based on these migrations. Specialty technologies will not only benefit from FinFET intrinsic excellence, but also its maturity, which includes reduction in cost. At the Samsung Foundry Forum, we presented our ready-to-go total design platform. This is a turnkey infrastructure service that we provide to our customers to deliver our foundry technology, along with various offerings from SAFE, we call it SAFE partners, to best support our customers' product requirements. The total design platform can support all of our customers' application needs by covering HPC, AI, mobile, automotive, and IoT applications. Furthermore, we can support any type of integration technology, such as 2D, 2.5D, and 3D integrations. Unlike other wafer processing foundries, Samsung has been developing heterogeneous integration technologies for quite some time. We also have proven track record of successful volume production that includes wide I/O memory, HBM series, and stacked image sensors. Based on that experience, in 2020, we developed 3D X-Cube technology that was built on 7 nanometer and based on TSV. We also expanded to 2.5D and successfully produced I-Cube2 and qualified I-Cube4, which we plan to mass produce starting in 2023. Samsung Foundry has a great deal of experience with a variety of technologies, including not just 3D TSV and 2.5D, but also 2D MCM. This wide portfolio allows Samsung to cover various HPC applications, including AI inferencing, which requires technologies that are low in cost and small in size and is used to train AI. Allow me to show you another video on 2.5D and 3D packages to help you understand what I mean. The increased demand for more functionality continues to result in increase in size of chips. To overcome limitation of the chip size, chips are broken down into functional dies and connected at the die level to form a system. Vertical stacking of functional dies enables significant leaps in speed, power efficiency, low latency, and small form factor. This new 3D innovation is completed through matured TSV technology with many years of mass production experience in micro bump. X-Cube is the first generation of 3D IC wafer level integration solution offered by Samsung Foundry. The X in X-Cube stands for extended interconnection density and extended functionality. With X-Cube, system designers can enjoy greater flexibility to build custom solutions that best suit for their system requirements. Silicon demonstration of X-Cube has already been completed by stacking SRAM on a logic chip, freeing up space to pack more memory into a smaller footprint. Furthermore, Samsung is providing silicon proven design methodology and flow for advanced nodes. X-Cube will continuously be utilized for advanced application such as mobile, AR, VR, wearable and high-performance computing platforms. The evolution of 3D IC solution, X-Cube, will be the solution for beyond Moore's Law. Samsung Foundry will keep developing technologies to support our customers with unparalleled success. The goal here is not just to make the products, but to make the products that are competitive. Samsung Foundry has compiled a strong ecosystem based on its leadership in terms of design package and process technology. SAFE enables collaboration between the partners and customers' ideas are optimized with DTCO, which stands for Design Technology Co-optimization, and offers benefits in terms of power, performance, and area. There's also STCO, which is short for System Technology Co-optimization, and enables the development of optimal system-level solutions. Samsung Foundry's three I's, innovation, intelligence, and integrations, open the door for even greater efficiency by combining collaboration and optimization. This means that customers' products are produced with our support for each collaboration and specific service. As stated earlier, manufacturing is the essence of the foundry business. Any technology, no matter how impressive, is useless without stable and reliable manufacturing infrastructure. Some of Samsung Foundry's greatest strengths are its global reach and diverse experience. We have accumulated a great deal of operations knowhow since 2014, and ramp up our volume by a factor of three from 2014 to 2020. We have built a synchronized production system that allows us to share the data 24/7 with fabs in the U.S. and Korea. The proper exchange of engineering resources enables the synchronization of manpower. Some may worry about our manufacturing capabilities in the U.S. However, based on over ten years of manufacturing knowhow, we are very confident that we can enable seamless operations. Of course, it's important to remember that Samsung Foundry is not alone. We have sister organizations with which we can share our experience and expertise to maximize synergy. With 30 years of experience in high volume manufacturing, Samsung Memory is one of the largest and most trusted DRAM and NAND manufacturers in the world. It is our great advantage to have access to Samsung Memory's high volume production experiences as well as its expertise in rapid troubleshooting. In addition, we are working together with hardware experts at Mechatronics R&D Center to improve equipment performance by 100% or more. Furthermore, working with the IT center, we have employed statistical analysis to help improve productivity. The IT center's AI experts helped us build predictive models to optimize manufacturing schedules at our factories. They also helped us use fault analysis models to improve yield. These opportunities to collaborate are unique to Samsung, and we are constantly looking for ways to improve our products and solutions by working with the other Samsung experts. This is not just a leadership, but also a unique benefit. Lastly, I would like to talk about our extensive global offices and our partners' respective footprints. Our global offices and partners are equipped with state-of-the-art customer support systems to suit each region's unique business characteristics. They are continuously making progress in this area, and each of our local offices and partners located in the U.S., China, Europe, and Japan will provide all of our customers with unwavering support, led by our dedicated regional teams. Now, I'd like to wrap up with some key takeaways. After my presentation, I hope you now have a deeper understanding of how Samsung Foundry is establishing itself as the new leader in this industry. With that, here are key takeaways. First, foundry opportunities are expanding in this new era of digital transformation. Second, Samsung Foundry continues to make aggressive investment, which includes expanding our global operations to satisfy strong market demand. Third, we are maintaining our firm leadership in the industry in terms of technology, operations, and service. Finally, we are enabling our customers to achieve faster time to market, and we are ready to grow together in the foundry market. That concludes my presentation, and thank you very much for your attention. Good morning and/or afternoon, everyone. It's wonderful to see so many investors and analysts via the conference call here today. My name is Dennis Choi. I'm the Marketing VP of our Mobile Display Business at Samsung Display in Korea. Today, I prepared several video clips for your better understanding, and it is a very great honor for me to speak with all of you at this year's invest forum. Let me start with giving you the overview of the key trends in the display market following the COVID-19 pandemic. If you don't mind, I would like to take your questions after my presentation. Okay. Can you start this video clip? [Presentation] Actually, this video clip was released last May at SID 2021, which is the world's largest display exhibition. It highlights the capability of the product we have been developing. As you saw the video clip, we have been working on the various foldable display for laptop, including slidable and multi-folding screens. In addition, we have also been innovating and improved our OLED technology, developing new solutions to enhance the image quality, lower power consumption, and more. Most of the flagship smartphones today are equipped with OLED display and 5G connectivity. Just take a look at your own smartphone. It's most likely using OLED display, I guess. In the future, OLED itself will be rapidly entering into the IT area, becoming the standard display, not just for smartphone, but for many other computing and electronic devices. I will give you more details in the next slide. My presentation today will cover the three main areas. I would like to talk about the key trends in the display and IT market first, and then I will explain the current status of Samsung Display IT business, followed by the strengths and the unique selling point of our OLED technologies. I'm sure a lot of you here today have been working from home following the pandemic. According to the World Economic Forum, 95% of the global working population worked in the office before the pandemic Since the COVID-19 outbreak, over the 40% of workers have shifted to the remote work. In the post-pandemic era, hybrid work between the home and office is expected to continue. According to the survey by Gartner, 82% of the executive working in Silicon Valley said they plan to continue this hybrid working model after the pandemic. Many IT companies, such as Google and Meta, have also said they plan to have 40%-50% of their employee work remotely. Before the pandemic, many user needs adjust to one single PC at work. Now, in addition to the computer in the office, many people will need additional laptop or tablet work from home remotely. Due to this kind of change, display has become the key part of everyday life. High-definition display is now necessary to check the information, stay connected, and communicate with others regardless of time, space, and device. Outside of work, lifestyle change following the pandemic have also led to the increased demand for the computing devices. Research in the U.S. has shown that average number of hours spent at home has increased by more than two hours due to the rise in telecommuting and remote education. For many household, this change meant having one shared computer at home is no longer enough. Instead, many people now require individual personal computers. The pandemic has also changed the way people spend their downtime. For example, instead of going to the gym, exercising at home is now the normal. As a result, our homes has been becoming the multipurpose spaces. This change has increased the demand for the high-performance display, which is surround us. Consumers now need high-quality display for such as high-definition, high-speed, wide color gamut, etc., in their living space to view the contents and stay connected. With the development of cloud technology, multitasking simultaneously with the different device has become the normal. We call end-screen with the seamless connection between the devices. In this multi-device world, consumer are increasingly looking for the high-quality display not just for their own smartphone, but also their laptop and monitors. The proportion of the laptop with the Full HD and above jumped from 35% in 2016 to 65% in 2019. We see this number is expected to rise up to 80% by 2026. The B2B IT market is also changing. Instead of providing separate work device, more company are allowing and encouraging their employee to use their own personal device for work. This bring-your-own-device trend is gaining the popularity and has been becoming the normal. To stay competitive, many premium laptop targeting to the B2B market are now switching from the conventional display to the OLED display, as OLED technology is providing high-quality viewing experience, enables the thinner device, and delivers more power efficiency. As a result, the demand for the OLED display for IT is also expected to increase further in the middle to long term. Since the lifestyle change and workplace environment continue to change, the demand for the display is expected to increase in the middle to long term. Actually, this year, the demand for the smartphones and the TV and IT product has recovered due to the slowdown of pandemic. In particular, this year's display market is expected to achieve the largest growth ever. After some adjustments, both 2022 and 2023, the display market is expected to return to the trend of growth driven by the lifestyle and workplace changes. Almost one of our every two smartphone, which is produced this year, equipped with the OLED panel. While the current adoption rate of OLED is less than 2% in laptop industry this year, We have confidence this will be rapidly expanding in the near future. Let's look at the IT market in a little bit detail. Since the start of the pandemic, the demand for the desktop has slowed down. As I mentioned earlier, the demand for the laptop and tablet has increased significantly because of remote work and education environment. Specifically, consumer are increasingly looking for the laptop with the performance that exceed desktop. They expect their own laptop to deliver the immersive viewing experience, portability, and a long battery life. Notebook with the OLED display will be the key to meet this growing consumer demand and needs. By 2025, we expect over 20% of premium laptops that cost $700 and higher will be equipped with the OLED display. Yeah. In terms of a form factor change, the presence of foldable technology is another key factor that will drive the demand for the innovative display in the IT sector in the mid to long term. We can already see this trend in the smartphone market. In early year 2000, mobile phone design began to diverge from the standard bar form factor. From clamshell to slider, and the swivel phone, and even device with a QWERTY keyboard. There was the explosion of the creativity in mobile phone design. Smartphone design has become stagnant over the one decade, as most smartphones adopted one single slate form factor. In the last two to three years, there has been an increased demand for the new smartphone design. The Galaxy Z Fold, Z Flip, both equipped with the Samsung foldable display, innovated the Samsung smartphone form factor, and has so far been very well received. The presence of the foldable technology will bring the dramatic change. Smartphone market, slide-able, rollable, and multi-folding smartphone will soon become the reality. As foldable form factor becoming more common in smartphone, the consumer get used to them, we expect there will be the increase in demand for the foldable design in IT area as well. Let me give you a little bit detail. In recent year, maximize the portability has become the top priority in the design of the IT product. We can see the trend playing out in the accelerated adoption of Arm-based SoC chips in device across the IT area. The trend toward maximize portability will drive the manufacturers in IT sector to adopt the thinner and more power-efficient display solution. Foldable display, in particular, are perfect at making the device more portable, while also offering the new possibility in design within this carrying small, thin build. Foldable with a key design principle for the IT device sooner or later. The boundaries between the different types of a mobile and computing device will continue to blur with the development of foldable technology. From tablet that can be transformed into the laptop, to notebook with a desktop size of the monitor, foldable technology will open a new possibility for end customer to combine the different device into one. The development of slide-able and the rollable form factor will accelerate the kind of convergence. Samsung is committed to making this future a reality, as we are developing the technology, innovation that will take our display image quality and power efficient to the next level. Now, let's move on to the topic of 5G global rollout and its impact on the display market. Photo and the images becoming the dominant means of the communication when 3G was introduced. It's a long time ago. With the photo introduction, we began to connecting with another through the video as well. Finally, the 5G era. Ultra-high definition content, as well as VR, AR, will become the major feature. We communicate and connect. In the future, connectivity technology will enable the same activities as in the real world in 3D virtual space, so-called metaverse, that looks and feels exactly like the physical world. Change in the past and the future trend tell us, improvement in mobile communication technology are always accompanied by a new demand for the new class of display. Currently, 300 pixel point, we call them the PPI, 300 PPI are no longer sufficient to satisfy the current needs. Instead, consumer now expect their device to come with a display with a 400 PPI or higher. Mobile technology continue to advance. We can expect the ultra realistic display with 1,000 PPI resolution will be possible for special application in the future. In 2025, 5G penetration rate on the smartphone is expected to reach 70%. During the same period, the proportion of the smartphone with the high quality display such as OLED is also expected to reach almost 60%. This means the OLED display will be the standard for all smartphone, except the low-cost product. Consumers who get used to high-quality display on smartphone and TV, will also seek to buy the laptop with a high-quality display. As a result, this will lead to an increased demand for the OLED laptop. Next, I will explain about the current status of Samsung Display IT business, inside of a smartphone display. Actually, our major business is from the smartphone display, but for the better in the business portfolio, we are focusing on diversifying our business portfolio into especially IT area. Since entering the premium notebook market in year 2019, which is a couple of years ago, with a high-resolution panel only. Samsung Display has been actively expanding its business with innovative, high-quality display solution. We will continue to grow our product portfolio and expanding our penetration into the flagship consumer market as well as mid-end segment and commercial market. This year, we are achieving a little bit over the five million, and we have almost targeting doubling the number for next year. We have strengthened our collaboration with other notebook component maker and software developer to ensure OLED display becoming a new standard for laptop industry. In addition, the world's first monitor product that combines quantum dot and the self-light-emitting technology will be released next year. This will open the new horizon in the premium monitor market through the high image quality and fast response speed, which cannot be paired by existing monitors. In conclusion, OLED is a good solution for the small and medium-sized devices, and QD will be the answer for the largest-size devices. You may know, over the [TPT lineup, which is like in the 170 SKU of laptop from the major IT brand are using the OLED display nowadays. The rapid expansion of the display technology driven by the superior viewing experience SDC offers. The transformation into smartphone market shows, the image quality and the viewing experience on OLED display cannot be matched by conventional display. The superiority of an OLED is recognized by everyone, from IT expert to the media and the consumer. This is why I believe the OLED display is primed for the wide adoption in the IT area. Okay, next. I will explain about the unique selling point of OLED display in the IT market. Improvement in the mobile communication network has led to the growth of high-resolution content service. That drives the demand for the laptop with a high quality, high speed, wide color coverage display. As I mentioned earlier, notebook with OLED display now strongly popular, as they are able to express the vivid color and the color continuity. I want to show you another video clip that explain exactly what this means. Samsung OLED display can express the wide spectrum of colors, including the true black. Combined with the exceptional HDR capabilities, our display delivers truly cinematic viewing experiences that are immersive, dynamic. In terms of color volume, the measurement of color expression, conventional display cover just 74% of the DCI-P3 color gamut, which is the standard for the digital films. OLED display cover 120% of DCI-P3 color gamut. This is one of the key reasons why notebook with OLED display are getting popular among the consumer. OLED display are also fantastic at expressing the contrast and showing details in the brighter and the darkest part of video, and even moving pictures. Unlike conventional display, OLED display can control individual pixels. This enables the display to express the true black and achieve a million to one contrast ratio for superior HDR viewing. Notably, our OLED display has received VESA certification for their HDR capabilities. Actually, 80% of the information we receive come from our vision. Following the pandemic, consumers have been spending more time on IT devices. In response to the change, Samsung displays are developing a new tack-on to make the viewing experience more comfortable. Let me show you another video clip, where we'll explain in detail. Let me talk a little bit about our USP, what we watched in the video clip earlier. As I mentioned in the video we just saw, we made our display more comfortable on the eyes by improving the visual smoothness and the responsiveness. That's not all. We have also worked on other innovation to make our OLED display better for the end customer. Another big benefit from the OLED display is way less blue light exposure compared to the conventional display. Prolonged exposure to the blue light at wavelengths between the 380 and 500 nanometer can cause eye fatigue, decrease the vision, and even lead to sleep disorder. Since we are now spending more time on the IT devices, our eyes also are exposed to more blue light. Certified by world-class certification institute, SGS, our OLED display reduced blue light emission to just 6.5%, which is one-third of amount of blue light emitted by conventional panel. We'll continue to reduce blue light emission in our display through the innovation. For the people who are looking for the best way to reduce exposure to the blue light, here's the quick tip. All you need to do, just set you on the dark mode. On Microsoft Windows, we recently started to provide the dark mode support. Some of you may already be familiar with this feature. Conventional panel use the backlight to illuminate the pixel, which means they continue to emit blue light even when dark mode is switched on. However, OLED display turns off individual pixel when they are not used, which drastically reduce the blue light emission, almost to zero level with the dark mode. Earlier, I talked about the health benefit of dark mode, this feature is also great for making our device more energy efficient. For example, watching a YouTube video in dark mode on OLED display can reduce the power consumption by 67%. Since there is no backlight in OLED panel, they are much thinner and lighter than other displays in the market right now. OLED displays weigh about two-thirds of a conventional panel and half the thickness. This means they can make the laptop thinner and lighter without compromising performance. The portability of the OLED display will only improve going forward. To conclude, Samsung's OLED display technology is unrivaled in the display market. I strongly believe OLED will become the widely adopted in the IT area sooner or later. I would like to wrap up my presentation with one more short video clip for your better understanding. Please enjoy. [Presentation] Yeah. Thank you very much for your attention. Good afternoon, good evening, good morning, wherever you are. I am Patrick Chomet. I joined Samsung five years ago, and I will take with you an overview of our strategy in the mobile division. First, we see our mobile markets entering a new period of growth. I think that's very important for us, and I will signal one of the few factors for this growth. On the smartphone side, from previous year estimates, analysts from SA Market Insights or IDC, provide estimates now which show a growth of about KRW 100 billion until 2025. This is fueled by the large-scale expansion of 5G in a number of markets. Also innovation, obviously, our foldable will expand in the next few years. On the tablet and portable computing side, we also see a revision of the forecast, with a significant opportunity. Notably, the portable computing side of things is expecting to grow beyond KRW 200 billion marks in the next few years. Tablets are expected to sustain the momentum that we saw during the pandemic. Last but not the least, wearables, buds, watches, and various devices continue to entertain growth double-digits, above 10% regularly. First message from us, we are very confident about the demand in all our categories. Secondly, we are out of two years, very strange years, very difficult years of pandemic. Profound social and consumer behavior changes, for us, also mean opportunity for changing the landscape and reshaping of the market. I will briefly mention three major trends which are relevant to the mobile division. First of all, what I call dispersion. Dispersion of learning and dispersion of working. You are very familiar with it. Most of us have been working from home or still working from home for a long time. I was in the U.S. last week, actually, my first business trip since two years. People are slowly returning to the office, but it's fair to say that no one expects a return to the previous state. As you see, 54% of employees work from home, and that trend will continue. I don't know what the final number will be. Students in schools and universities have learned to work remotely, and the increase of online learning, you see the numbers in the U.S., I also believe is expected to continue. The second trend is what we call the all-video era. Video is a massive phenomenon. We are seeing explosion of usage of the category. 66% of the mobile traffic today, and we expect up to 77% by 2026. Interesting behavior trends. People used to do phone calls, they now do video calls. They used to capture and post photos, they capture and post videos. Video calling is the first reason driving increase of mobile usage recently. Last but not the least, dispersion of health. During the pandemic, this trend accelerated. On the casual health and fitness, you see massive growth of health and fitness app increases, and I will talk about that later. It has great implication for us. Mid- to long-term, more fundamentally, growth of remote diagnostics and remote health consulting. These changes, I believe, will change the market and represent a significant opportunity for Samsung Mobile. Our competition has changed. We are coming from a world of smartphone-led, smartphone-only competition to ecosystem competition. We have seen a redefinition of what constitute competitiveness. It's fair to say that consumers now make choices not only on the individual device merits, but they choose to be or stay or leave one particular ecosystem. Ecosystem means a category of devices and services and usage that the customer feels most comfortable with. Therefore, we are strongly redefining and getting ready to compete in that environment. We call it the two-leg strategy. The two-leg being the device innovation, which is our DNA in Samsung, associated with experience leadership to deliver the end-to-end customer experience. I will talk about this more in the rest of the presentation. In ecosystem competition, the dynamics are changed and retention becomes a much bigger driver than in the past. Retention is a critical factor. As you all know, it's much easier and cheaper to retain your customer than to acquire a customer in a base management business. Some interesting numbers here. When people have a smartphone only, the retention rate on Galaxy is 60%-70%, depending on the market. We saw that number jumping from 80%-90% when people have two Galaxy devices, and up to 95% and above when they have three Galaxy devices. That is a key metric of our business going forward. Of course, Samsung Electronics extending to home digital appliance and TV. You can see, for us, opportunity to cross-sell and growth across our categories in the wider Samsung Electronics business. I will talk about all of this in the rest of the presentation. We talked about the Galaxy ecosystem. We have a formidable competitor. We are building and we've built something which is different. We are not trying to mimic any company. We have a different ecosystem, and you will see here some of the fundamental characteristics which underpin our Galaxy brand. Innovation and performance are the things that you expect and you know already from us. We've been leading innovation, the transformation to camera phones, transformation to smartphones, best-in-class display, large display, Galaxy Note, S Pen, camera, design with foldable recently. You will accept, and the market accepts, Samsung leadership in innovation. Performance, battery, durability, 5G, privacy and security backed up by hardware with Samsung Knox. Performance is also a part of our DNA. The other two pillars I want to talk a bit more about, we are building an open ecosystem of experiences. Experiences are simply the activity that customers entertain on all our device categories. We want to make it simple and seamless and easy across any device access point. We do that in an open manner that is distinctive in our ecosystem as opposed to a closed garden with the best-in-class partners. Our partnerships with Google and Microsoft are very publicly known and recognized by the customer in the market. Also Spotify, Netflix. Our direction is to deliver to the customer the best-in-class service experiences that they choose. Last and not the least, we are hearing from our customers, especially the younger generation, a concern for the planet and sustainability, and we want to deliver our sincere message to respond to that challenge. Some examples. We have retired plastic massively from our packaging. We expect to reach zero plastic in the packaging by 2025. We removed the charger from the smartphone boxes, and we standardized the charger across all Galaxy devices, including tablet and PC. We will start to use recyclable components in our next flagship model coming soon, and we expect to have all recyclable components by 2025. These fundamental pillars underpin a unique, and we believe, highly competitive ecosystem going forward. Over the last three years, to build that ecosystem competitiveness, we have worked hard internally to redefine our product planning and our product management, and I will introduce this briefly. Each of the series is underpinned by a very clear direction and foundation based on customer segmentation. Across all of the product categories, we have defined eight functional experience areas, all of them tied up by One UI, which is our unique interaction paradigm across the Galaxy ecosystem. In delivering those core experiences, we use internal services, native, as well as our best-in-class partnerships. I will introduce the product categories and the experiences in the rest of this presentation. The S series is our standard of premium smartphone. S21 has been rated by many reviewers as the best smartphone of the year. We operate the S lineup with two major customer segments, life maximizers, and they are Ultra. Ultra is the ultimate smartphone for those customers who want everything and the best of what technology can give. Ultra is at the forefront of technology innovation with a productivity edge, obviously with space zoom and with megapixel lens, as well as S Pen and the most advanced performance on the computing side. S and S Plus are focused on social expression with premium design, premium performance, and pro-grade camera. We really focus on the end-to-end visual experience for socially active consumers. The fundamental values of our S series are the three pillars, which are highlighted here. Design. Our design aesthetics is centered around the camera module, which is our signature element for the brand. No compromise on the CMF and finish, no compromise on durability, and we are constantly striving for completeness of that design. Secondly, the visual experience, end-to-end visual experience. We've been known for best-in-class capture, photo and video, night, portrait, the space zoom. We have improved recently, and I will detail that further, the end-to-end experience from capture to sharing with our best-in-class social networking partners. Last but not the least pillar expected from us, performance. We have historically the best and brightest screen in daylight. We have a very smooth viewing experience with 120Hz display, intelligent battery power management, super-fast charging, and of course, the S Pen experience for Ultra. With the foldables, we are changing the industry. The foldables are not just hardware innovation, but we are opening up a new era for the industry, defining with innovative experiences. We pursue the same two segmentation categories. The Z Fold is for the life maximizers with productivity edge, obviously fueled by the bigger screen and the Pen we provide with that immersive viewing experiences, as well as advanced productivity capabilities with multitasking, multi-window. Obviously, this time on our third generation, no compromise on durability, water resistance, and performance. The Z Fold is the ultimate productivity and entertainment tool. The Z Flip is incredibly successful, not only in Korea, but worldwide, defining a new fashion and lifestyle. It's around design and self-expression, and unique way to express yourself, in particular with the selfie mode and the Flex Mode. This time on our third generation, again, no compromise on durability and performance. Our A series means simply democratization. We want to bring the Galaxy experience and 5G to all on the planet. We will have a full lineup of 5G devices at all price points. We will deploy our end-to-end Galaxy experiences across the Galaxy A series, and we will support with uncompromised performance on display, camera, and battery. In addition, we will have durability with IP67 durability and superior audio with stereo speaker on A series. Tablet and Book are the best work and play experiences anytime, anywhere. We've seen incredible support and enthusiasm for our tablet portfolio, the S7 portfolio during the pandemic. We expect this to continue. The viewing experience is amazing with our vivid display and the sound also with the speaker. As an entertainment tool, it's really amazing. Also on the productivity side, powered by the Pen and the keyboard, we have amazing productivity experiences with the tablet. You can now pair your tablet with your PC and utilize it very simply as a second screen with functions such as cut and paste, drag and drop, and so on. Not only that, fully ecosystem, we can share the devices. The keyboard can be shared across tablet, PC, and phone. You can use the same buds. They will automatically switch if you watch a movie to a phone, if you want to take a phone call, all of that seamlessly. We can quickly share document and files across phone, tablet, and PC with Quick Share. We define our mobile, our notebook category around the tagline, why can't laptops be more like phones? We deliver best-in-class, thin, all-day battery long mobile powered notebook devices. I will mention later our partnership with Microsoft and the significance. We believe that the end-to-end computing capability within the Galaxy ecosystem is critical to our consumers. Those laptops are best in class performance-wise, thanks to our partnership with Intel, as well as providing seamless continuity with all other Galaxy devices. Last but not the least, going forward, we expect wearables such as the watch and the buds to be systematically attached to our smartphones. For that reason, we recently announced a partnership with Google, to relaunch the wearable ecosystem with Wear OS powered by Samsung. We contributed all of our previous assets to that platform, and we see incredible success and growth of our wearable ecosystem in partnership with Google. We have seamless continuity of the phone and watch apps across the watch and the smartphone. We continue to deliver the most accurate monitoring and health function. We major on personalization and design with the Watch Studio and watch tool that we deliver to the platform. Last but not the least, sound with the buds. Authentic and high-performance sound, design and comfortable fit, and again, seamless continuity. The buds can be used seamlessly across any Galaxy devices, be it the tablet or the smartphone. I went through the devices category quickly. What I would like you to note there is the focus which I mentioned on this devices category is not meant to cover one device, but cover the category over the next few years. Maybe the next part is less usual to you. The second pillar of our product planning is the experience design, which we span now across device categories. All of that is powered by One UI. One UI is a user interface paradigm, which kind of ties up all of our software experiences. The three main directions of One UI are simplicity, focus. Focus on what matters. Over the last few years, we've taken drastic measures to clean up and reduce complexity and make the user experience seamless and continuous across devices. We also introduce optimization for all types of screens, including tablet and foldable devices with Flex Mode and multitasking. The second pillar is comfort. One UI 4.0 was commercially released yesterday and deployed across our S21 devices. Our customers and reviewers already appreciate the new indicators on privacy. You will see clearly if the camera or microphone is used by any app, that was expected and really wanted by our customers. Comfort with things such as enhanced dark mode across most of the applications. I would recommend to you, I read a lot at night, the dark mode is really something which I find very useful. The third pillar and very distinctive of our One UI experience is personalization. We see a demand from our younger consumers, our younger generation, to be themselves, to choose. Things like choosing your own wallpaper to change the theme of your whole smartphones, as well as innovation on emojis. You can even actually pair the watch face on your watch with the screen of your Flip, are all a part of this next generation UI. Underpinned by One UI, we have defined over the last 3 years, 8 categories of functional experiences. These are the main activities that our customers execute on our devices from onboarding and setting up the devices. Communication, you are familiar with our partnership with Google on Google Duo as well as Google Messages. Health and fitness, I mentioned the wearables. The visual experience, I will give some examples, productivity, lifestyle, wellness and privacy. You must see these categories as the end-to-end functional areas that we now product manage systematically across devices, smartphones and others. I will take a couple of examples. Firstly, a seamless and easy onboarding is the first step that any customer takes to get into our ecosystem. There have been some resistance in the past, and we've worked really hard to make it seamless. If you would, I hope, actually switch from a Galaxy device to a Galaxy device with Smart Switch, you can test that it is really convenient. Not only that, any Android device to a Galaxy device with Smart Switch is very convenient. I dare say a competitor device to a Galaxy Smart Switch, you can still carry all of your context and data, including WhatsApp messages now recently announced to your Galaxy device. We extended recently Smart Switch to tablet, but also PC to provide this simple onboarding. If you would have any Galaxy device, including the buds and the watch, they will be recognized by the smartphone, and you can connect them with a simple one-click operation. Last but not the least, we extended that simplicity to the PC. Thanks to our strong partnership with Microsoft, we can enjoy continuity. For example, here on the slide of the Note across your phone and your PC. With the S Pen and the Note, you can cut and paste, drag and drop across the phone, PC. We are extending that continuity also to the tablet, which can be used. I use it massively as a second screen. We talked a lot about cameras, we've been focusing on cameras for a long time on the capture side. It's fair to say that we have advanced technology, especially best night shots, cinematic video, and so on. Recently, we've paid more attention on the end-to-end customer journey. Not only we want to enable our customer to capture the best videos and photos in all conditions, but next action. Edit. Advanced edition tools with partners. AI-powered photo enhancement. You can actually remove and erase unwanted object for your pictures, streamline and constant editing on your phone, but also on your tablet and on other devices. We also have a partnership with Microsoft. OneDrive is our cloud backup solution for the photos, and you can seamlessly sync your gallery with OneDrive. Last but not the least, sharing our photos and videos uncompromised on the leading social network platforms is now very simple, and we have a very good partnership with Instagram, for example. I talked a lot about the ecosystem expansion across the mobile devices division, but of course, we have a SmartThings platform. SmartThings is a device, a connectivity and control platform that Samsung has developed over the last five years. SmartThings enables you to control all devices and appliances from a phone, but also extending to the TV and home appliance division. Not only that, you can control over 3,000 different brands, IoT, and home devices via the unique SmartThings platform and the SmartThings app. In due course, we expect to extend the ecosystem to cars, thanks to our partnership with Google on Android Auto. Our Galaxy ecosystem actually is already materially making progress. I've been very encouraged by the recent launches of the Fold, the Flip, Buds, and Watch4. You can see some of the feedback here from the market. Our innovation with the Fold is an amazing success, especially the innovation in the Flex Mode, multitasking. Also the personalization on the Flip, which the younger generation really, really appreciates. As I mentioned, One UI 4.0 is our fourth generation of One UI. It was released yesterday and rolling out on the S21 devices already. We have amazingly positive success and feedback from our customers and reviewers. I would encourage you to look into it yourself. Of course, on the productivity side, you can see, and I hope you use, you can experience the benefit of the Microsoft association and seamless continuity working with the PC. It's well recognized. We still have work to do there, and we will continue to deliver the best phone to PC experience through Galaxy and Windows association. In the communication side, you will notice that usage of video has dramatically increased in the pandemic. For our partnership with Google Duo, we saw double usage of Duo and video calls in the U.S. to 30%. You can compare to the competition on video, we continue to develop and drive this experience. Lastly, recently, Interbrand again rated Samsung as number fifth brand in the world. The Galaxy brand and Mobile is a significant contributor to the overall Samsung brand. A +20% increase in brand value overall underpin, among other things, by our transition to a customer-centric, customer-led planning and management. In conclusion, we believe that the next 10 years of our business are transitioning to an ecosystem competition as opposed to smartphone-only competition. We have been preparing the hardware and software platforms and partnerships over the last three, five years to be ready for this ecosystem competition. We will strive to meet evolving customer needs. We believe with the pandemic, there is an opportunity to reshape the market around the new ecosystem competition. Our fundamental values are continued innovation with the right investment in hardware. Not only hardware, software and UX. The building of an open ecosystem, which is our alternative with best-in-class strategic partners, notably Google and Microsoft at platform level, but others. Last but not the least, shifting our company to a customer-led, customer-centric product planning and product management. I hope you found it useful, and I'm looking forward to your questions. Our connected world is bringing us together in new ways. What drives these new connections? The answer lies in 5G networks. They are hidden from sight, but they are the invisible engines of innovation. Behind these unseen engines is Samsung Networks. Introducing advanced technologies and solutions, and delivering connectivity that brings people closer together, makes life easier, and enhances some of the most important aspects of life, like safety, health, and education. We never stop innovating. Always looking ahead for the next engine that will ignite a brighter future. That's the spirit behind our deep commitment to 5G. A commitment proven by more than a decade of extensive research and development. Through our mobile technology expertise and global infrastructure, we are supporting the development of the 5G networks that drive our connected lives, power business sectors and industries with new and innovative services, pushing the limits and preparing for what's next to come. You may not see us, but we are the power behind the unseen engines of innovation. Hello. I hope you enjoyed the video we just saw. That is our vision of what 5G can be for all of us going forward. Two years ago, we met in one place, facing each other in person, and at that time, I explained our vision of what 5G could be for the world. Today, in two years, everything has changed, in many ways. Now, home is the new school. Home is the new workplace. Home is the new gym. Home is the new place for a get-together, as I'm sure many of you have done over the last two years. Home is the new movie theater. Now the family gathers to watch everything together. Home is also the new restaurant. We gather together, we order things. In short, connectivity has become our lifeline. Over the past 2 years, the pandemic has shown how important connectivity is to us, how more important it will be in the future. I guess the question is, how did we do it? How did we survive the global pandemic? Of course, we have all suffered a lot. Fundamentally, if you think about it, if this happened 20 years ago, I think the situation would have been a lot worse. Simply put, I think the answer why we were able to survive was a mixture of broadband, cloud, and smartphones. Broadband, in many cases, has now gone to multi-Mbps per household. Cloud services, which were nonexistent 20 years ago, over the last 10 years, has expanded explosively. Smartphones, a market that people dream about in science fiction, only started in 2005 or so, has now exploded all over the world. It was a combination of these three that enabled us, I think, to survive the pandemic. This picture shows really what happened. We took our services from the global cloud server providers. We had broadband to connect to them. Then with our trusted smartphones and PCs, we had millions of apps to do things. To connect to services for entertainment, to order from restaurants, to have video conferences, such as we are having today. Also social media to connect to our friends and loved ones. Now we're entering the post-pandemic age. The only thing I can say is that all of these use cases and what applications that we've used, post-pandemic, it will accelerate. We believe there will be one major difference, that it will be more mobile. During the pandemic, many of us were stuck at home and not able to move around that much. Of course, we avoided moving that much on purpose. Post-pandemic, we will be moving more. That is in the nature of wireless and what it enables. Over the last 10 years, if you look at it, the mobile broadband has now greatly exceeded fixed broadband. Smartphones, at 1.3 million shipments in 2021, is multiples of PC shipments. Even though in 2021, there was a renaissance in PC shipments due to the pandemic, smartphones are still many more times than PCs. Of course, mobile data traffic has been increasing. As I said, during the pandemic in some ways, it was sort of artificially contained. Now as people can expand in 2022 and beyond, we can expect it to expand even further. The question is, for operators, how can you handle this increase in traffic? That is, for them, the major problem, and it will become a bigger problem going forward as people start using what we used in the pandemic on their phones, wherever they are, wherever they're going, whatever they're doing. If you do Zoom calls now mostly at home, but you start doing Zoom calls as you travel in the car, in the park, and other places, the traffic will be generated, will be much more diverse, much larger, and it will have the added difficulty of mobility. How will operators deal with this? First, the most obvious one is more technology. As you can see, during the last 5 years, 4G has expanded greatly, become very powerful. Now we're moving to 5G. Samsung was one of the leaders of 5G, as we showed in the video, starting our research in 2009. Now we're seeing the fruits of that labor coming out in many more technologies that enable 5G and ways to handle the huge traffic. Massive MIMO, beamforming, massive antennas, they're all technologies that we developed and are now being productized by us for our 5G products. As I said, there will be more technology that we're bringing to 5G that will enhance the value of the hardware products we bring. Beamforming, network slicing, low latency, all of these things are things that will enhance the capacity and ability of 5G to handle traffic. The more traffic that's generated, the more 5G that will be needed. Will that be enough? No, not just technology by itself. The technology itself requires massive amounts of spectrum, of bandwidth. 4G required tens of megahertz per carrier. The standard LTE spectrum was 20 megahertz. 5G will require hundreds of megahertz per carrier. Many operators are asking for 100 megahertz in 3.5 and 800 or more in the millimeter wave bands. What this picture shows is what's going to happen. If you keep on trying to build on an old city, old site, it gets more and more cramped. At some point, we have to move to a new place, as we show here, showing a wonderful beachfront apartment complex in Korea. In the same way, spectrum is moving from the low band, sub three gigahertz bands, which were traditionally used for cellular capacity, the 700 megahertz to 2.1 gigahertz, for example, is now moving to mid-band, which is 3.5, 4.2, and 28 gigahertz and beyond. Beyond technology and bandwidth, one more thing that will be needed will be more sites will be needed. Before, when you had low-band spectrum, you could cover many more areas, much larger area, with one site, and so you needed less sites. As you go up to the higher bands, the millimeter waves, the 3.5 gigahertz, the networks have to become more and more dense. This will be a third leg, a third prong in how to handle more traffic. To repeat, you need more technology, which is today the transition from 4G to 5G. You need more spectrum, going from tens of megahertz to hundreds of megahertz, which means moving from the 700, 800, 1,800 megahertz to the 3.5 gigahertz and the 28 gigahertz range. Third, you will need more sites to make a denser network to enable the networks of the operators to handle all of this traffic. Now, if we do all of these previous things, the biggest problem for operators is costs will increase. New technology is, in many cases, expensive. Buying spectrum is expensive. The recent C-band auctions in the U.S. raised over $80 billion. Operators have spent tens of billions of dollars buying spectrum. Building more sites is even more expensive. Added to this, as you have more sites, more technology, more spectrum, operationally, it becomes more complex for operators to run their network, and their OpEx can increase as well. While revenue doesn't seem to be increasing, the costs will increase significantly for operators. How do they handle this problem? How can they manage the costs? How can they raise the revenue? That will be the central problem that all operators will be facing in the coming years. What is the answer? How will operators answer to this problem? What do we think is the answer from a vendor perspective? I think the answer comes from something that Marc Andreessen, the famous VC, said. He said, "Software is eating up the world." By that, he said, what was made in hardware was being changed to software. For many features and many functions in the world. He said this around, I think, 10 years ago. For networks, this means virtualization. Virtualization is a hard word, but network techies love this word, and this is what's happening today. Let me explain what virtualization is. In a simple way, you could say before, as you can see on the left where I show a facsimile, Telex machine, et cetera, different functions require different hardware. Use the phone, use a facsimile, the Telex, you needed camera. Today, all of these different functions are just different software applications on one hardware platform, a smartphone. Virtualization, you can think of it that way, is moving all the features of a hardware into software. What does virtualization mean in a network? Well, previously, when we had different functions, we had different hardware. We would have electronic switches, we would have paging amp systems, we would have mobile wireless systems like CDMA, WCDMA. We had the core baseband, and each of them were wonderful gray boxes that were made by wonderful engineers, with a lot of sweat and tears. Now, I myself have worked on these, and this was an extremely enjoyable part of my life, I would say. Today, if you look in the advanced networks, what has become network functions is what is shown on the right. You just have banks and banks of servers, and it implements many different functions, but all of them are different software applications. Today, routers, firewalls, push-to-talk applications, IMS, are implemented in cloud. The mobile core is implemented in cloud, and the mobile RAN is moving into the cloud. When this vision becomes fully implemented in all operators, that is when you can say the full network is virtualized. Now, why am I talking about this? Because we believe that is how the mobile network will evolve. If you think about it, from 2G to 3G to 4G to 5G and beyond, in many cases, you can say the cell site, the network has become simpler and simpler. In the old days, when 2G first came out, you would have simple antennas at the top of the tower, and as I show here, you would have a heavy and bulky cabinet at the bottom, which contain all the electronics, radios, controllers, et cetera, all together. As you went to 3G and 4G, remote radios and smaller baseband units were made, you could put radios on the top near the antennas, and you had basebands at the bottom for a more flexible and easily deployable architecture. As we are going to 5G, what's happening is the antenna and radios are becoming one, and the baseband unit is becoming a software application to make it a more of an agile and scalable network. As you can see, the trend going from 2G to 3G, 4G to 5G, in some ways, is more disaggregation, more flexibility, and I'll be talking about it more in a bit. Basically, this is going to virtualized RAN. What is a virtualized RAN? Well, as I said before, it is implementing what was at the base station in software on top of generic servers. What it aims to do is to bring telco quality and cloud agility together into one box. By telco quality, I'm saying for operators, they need to, even if they move to a new implementation of their RAN, it has to be reliable and resilient. It has to be high performance, proven in the field, and robust and resilient solutions need to be there. At the same time, they want cloud agility, scalable and flexible for new service adaption. This is what they want in the future. This is something that everyone is talking about today, virtualized RAN, but this is what we are delivering today, and it's not in the future, but it is today. If we deliver that so that they can handle the OpEx and the cost, what about increasing revenue? Well, if you think back, how did the mobile network evolution occur, and how did operators increase their revenue? Two things. They added more features, so you can do more things. They added more users. Between those two things, as it became more useful and more users were there, revenue was generated. If you look here, for example, you can see on the chart that the revenue increased from around KRW 356 billion worldwide for mobile operators to more than KRW 1 trillion in 2020. At the same time, the user subscriptions increased from maybe 700 million to 9 billion subscriptions. At the same time, the features, the things, the capabilities of phones has increased dramatically. Starting from simple phones that can do text, to things that can do internet browsing, and to things that can do much more today. Basically, the answer is really more services, more users, will always equal more revenue. Going forward into 5G, for operators, it will be more cloud which will enable this. Because as you go to cloud and vRAN and virtualization, they will have to add infrastructure to enable the cloud, the virtualization, the vRAN. Once you have the cloud, it will enable the ability to add cloud-enabled services such as mobile edge computing, MEC, and network slicing. By that, what do we mean? Well, mobile edge computing enables real-time services by gathering data and compute power closer to the users. You can do things such as video analytics and AI-powered facial recognition, cloud game streaming, drone applications, et cetera. Another one is how do you enhance the service that the operator networks can give so that it can offer more services? Well, one was, today there's a smartphone, and that does offer a lot of services. For a mobile network operator, it is really only a consumer product. They only have consumers to sell it to. How can they expand their market? It's a technology called network slicing. With network slicing, you're able to cut up multiple virtual networks from a single operator network. Depending on the use case, cloud gaming, smart factory, or remote surgery, autonomous driving, et cetera, you can create a network for high bandwidth users, low power massive connection users, or time-critical users, and connect them to different applications. Effectively, you're taking one network and slicing it up into multiple networks for multiple users. This will generate multiple revenue streams. vRAN is a key enabler for network slicing. As you said, all of these technologies will require cloud services and cloud technology, and vRAN is the way the cloud is introduced into a mobile network. How to control TCO and increase revenue? The answer, we think, is vRAN and the cloud. With vRAN, you can control the CapEx and OpEx, and you can also increase revenue with the new services, cloud, MEC, and network slicing. That is why Samsung today is placing a big bet on vRAN. Two years ago, I talked about 5G. We're now going to do vRAN as the other pillar for our growth. Two transitions are going on today, 5G and virtualization. Two opportunities, 5G and virtualization for Samsung. We will be riding the wave of 5G and virtualization to the next stage of our growth. I talked about this last year, or two years ago, how we had gone from 2009 5G research to FWA, to commercial trials, and now commercial launch in 2018 and 2019. Now we're going to virtualized RAN with Massive MIMO in 2020. This has all been based on the fact that we have strong leadership in the standards and patent bodies. This is based all on our intellectual property and our ability to devote massive amount of R&D resources. We've already deployed over 4 million 5G-ready radios globally, and we're delivering advanced capabilities and performance to customers. What's behind our growth? Really, as I said before, it's three things: chips, hardware, and software. Samsung has traditionally always been strong in chips and hardware. Software is also an area where we're now putting a lot of focus. First of all, chips and hardware. What are we doing there to grow our business? Our view of the network is very simple. You first looked at what cannot be virtualized. If we believe virtualization is the trend for networks, the one thing that still will never be virtualized, will never be written as just pure software, will be the physical antennas and radios at the end. As I show here, in 5G and beyond, we believe no matter how much you minimize hardware, the radio and the antennas at the end will always be there, and they are going to be the ones that will be needed to be optimized. The way you optimize them is with chips. The key is chips. How can you make them smaller, more powerful, will enable you to create better radios and better antennas going forward? At the heart of our 5G solutions is the chipset. Samsung, being a chip company, has always been strong in semiconductors. With networks Recently, with the 5G revolution, we are putting even more emphasis on chips for higher bandwidth, cutting-edge technology, increased power efficiency, and product size reduction. We have over 20 years expertise in chipsets, and we have over 200,000 5G SoCs in the field already today. Our product innovation is based on our in-house chipsets. In 2017, 2018, we created the first 5G modem and RFICs. We expanded in 2019 and 2020 to a family of second-generation modems, transmitter ICs, and Massive MIMO ICs. In 2021, we're expanding that further to increase second and third-generation chipsets for the modem, RFICs, and also interface ICs, et cetera. With each wave of extra chipsets, we're increasing the capacity, reducing the power consumption, and extending the coverage of our products. This will be a key differentiating factor of Samsung products going forward. We believe it's one of those things that makes it harder and harder for our competitors to catch up. We'll offer a complete solution for any deployment scenario. Millimeter wave, mid-band, low band that can offer video hotspots, wireless backhaul, autonomous cars, et cetera. These are all products that are using extensively our chipsets today. The Massive MIMO radio, for example, is a pivotal player in 5G, and this has been one of our key technology breakthroughs. How to solve the challenges in 5G was a big issue, and the way we did that was with Massive MIMO, we used what's called multi-user MIMO, beamforming, and integrated solutions so that you could create smaller and better-performing radio products. Now what's behind our growth? Well, it's the third pillar that I talked about, software. This is where we're putting, as I said, our big bet on virtualized RAN. If you think about it, as I said earlier, what can be virtualized in a network? If you think about it, if you take away the radio and the Massive MIMO units, et cetera, then whatever is in the baseband can actually be virtualized. For that, the key is software. Virtualization already was introduced into the network architecture from seven, eight years ago. It started in the mobile core, which in some ways was the easiest one to move over because basically a lot of it was servers anyway. It was a relatively easy move comparatively. We were the first to virtualize a vCore, virtualized core, in 2015, and we have been extensively deploying it throughout the world. Now with RAN, we'll be extending virtualization across the globe. We have the biggest vRAN commercial deployments or agreements already with global tier 1 carriers. In the U.S., we have the first wide-scale commercial vRAN deployment ongoing with the number 1 operator in the U.S. In Europe, we have just announced the first wide-scale commercial agreement with the operator Vodafone in the U.K. In Asia, we have just brought the industry-leading vRAN solutions to KDDI in Japan. As you can see, we are building a vRAN customer portfolio across the world in all the major markets, the U.S., Europe, and Asia. No other vendor is anywhere near us in this scale or breadth. One of the reasons why we are so successful is because operators are looking for a Goldilocks combination. They want innovation, but they also want a vendor who can offer reliability. Yes, there are a lot of vRAN startups. They might offer innovation. For operators, do they offer reliability? There are the other big companies, our competitors, who offer reliability, who might not be as innovative. As I say many times, the Goldilocks. We are offering innovative solution with reliability, and that has been the key to our wins across the world. In 2022, what do we say? We say vRAN is eating up the world. As I said, best-in-class Samsung's fully virtualized RAN gives the operators a full radio network, which has all the massive technology of Massive MIMO, DSS, et cetera, for 5G, cloud-native architecture, multi-technology, and the higher capacities, that cell capacities and flexibility that cloud can enable. What will fuel our next growth? As I said, it will be 5G and vRAN. If you think about it, what happens after that? If you take those two together, we think there is a fourth leg, a fourth pillar that we can rely on. That is intelligence. That is another area where we think we are putting a lot of effort that are differentiating ourselves from our competitors. Network automation is one of those things that has been something that all operators have been looking for many years. Analysis, optimization, and monitoring. How can you make that virtuous circle go round and round? Previously it was hard to do, now as it becomes more and more software, the more and more easy it will become, especially in the cloud, which is always built on this sort of zero-touch automation and a virtual cycle of analysis optimization monitoring. By this, operators can save the operational costs, reduce human error, enhance performance, and enable fast deployment. Another key part will be harnessing AI for future networks. AI and 5G are made for each other. AI needs massive amounts of data to process and to come back, that is what 5G enables. It will enable network intelligence, higher network energy efficiency, ability to maximize user experience, as you can optimize the network, the AI algorithms on the fly. If you take this into account, recently Samsung said that we would invest more than $200 billion in four main areas, and they were shown on the left here on the chart. Semiconductors, telecommunications, AI robotics, and biopharmaceuticals. This would fuel Samsung's post-pandemic growth. Telecommunications obviously is something Samsung Networks is heavily invested in, as we were saying, this is where a lot of our investment will be going as a Samsung group. If you think about it, and think about what I've just discussed, two other pillars where we're putting a lot of effort will also be helping our next generation telecommunications efforts. One is semiconductor. As I said, chips will be the bread and butter of telecom products going forward. AI, which as I said, will be the fourth leg, pillar of our growth. In many ways, this $200 billion investment will be fueling, we believe, the next generation telecom growth at Samsung Networks. Samsung Networks, as we were saying, will take another leap forward with 5G and beyond based on our in-house chipsets, innovative products, industry-leading software, and the network intelligence capabilities we will bring. Thank you.