Good morning and good evening. Thank you all for joining this conference call. Now we will begin the conference for the fiscal year 2022 second quarter earnings results by Samsung Electronics. This conference will start with a presentation, followed by a divisional Q&A session. If you have a question, please press star one, that is star and one on your phone during the Q&A. For cancellation, please press star two, that is star and two on your phone. Now, we shall commence the presentation on the fiscal year 2022 second quarter earnings results by Samsung Electronics. Welcome, everyone. This is Ben Suh from Investor Relations. Thank you for joining our second quarter 2022 earnings call. For additional details regarding our quarterly results, please refer to our earnings presentation, which is available on our IR website at www.samsung.com/global/ir. On the call today, I am joined by the following representatives from each business unit: EVP Han JinMan representing Memory, EVP Pyee Jae Geol for System LSI, EVP Kang Moonsoo for Foundry, EVP Choi KwonYoung for Samsung Display, which I will call Display in the presentation, VP Kim SungKoo for Mobile Experience, and VP Kim Young Moo for Visual Display. I want to remind you that some of the statements we will be making today are forward-looking, based on the environment as we currently see it. All such statements are subject to certain risks and uncertainties that may cause our actual results to be materially different from those expressed in today's discussion. Before reviewing our quarterly results, I want to confirm the second quarter dividend. Today, the board of directors approved a quarterly dividend of KRW 361 per share for both common and preferred stock. Based on the annual dividend payout under the current dividend policy, the total quarterly payout is KRW 2.45 trillion and will be paid in mid-August. Now I will move on to the results for the second quarter. Despite a highly challenging business environment marked by inflationary and supply chain issues, we recorded the company's second highest quarterly revenue and a new all-time high for a second quarter at KRW 77.2 trillion. The DS Division led such performance with a new quarterly revenue record for a second quarter in a row by actively adjusting the product mix to meet solid server demand and increasing the supply of System LSI semiconductors. In addition, the DX Division posted significant year-on-year growth on solid sales of premium smartphones, along with strong sales of seasonal digital appliances, such as air conditioners. Gross profit increased by KRW 0.2 trillion sequentially to KRW 30.9 trillion, mainly due to profit-focused memory sales and yield improvement in Foundry. Gross margin also increased slightly to 40.1%. SG&A expenses increased KRW 0.2 trillion quarter-over-quarter to KRW 16.8 trillion as our continued investments in R&D outpaced reductions in advertising and promotional spending. As a percentage of sales, they were also up slightly. Although profits in the DX Division declined due to macro issues such as increased material and logistics costs and currency effects, we delivered a similar operating profit quarter-on-quarter at KRW 14.1 trillion. Operating margin improved moderately, thanks to across-the-board improvements in the DS Division. On a year-on-year basis, operating profit increased by 12% or KRW 1.5 trillion, also led by the DS Division. I will now briefly review the results of each business unit. In Memory, although bit growth came in below guidance due to weaker than expected mobile and PC demand, results improved both quarter-on-quarter and year-on-year as we maintained ASP by preemptively shifting our focus to meet solid server demand and by maintaining our disciplined sales strategy. The positive effects of a strong dollar also contributed. In System Semiconductors, operating profits were up 61% quarter-on-quarter, achieving a record high as System LSI expanded sales of DDIs in volume zone SoCs, and Foundry yields entered our targeted trajectory, also for advanced nodes, as we increased supply to global customers. In addition, we further improved our technology competitiveness through the world's first mass production of the GAA process and supply of 200 MP image sensors. For Display, the mobile panel business delivered its highest ever second quarter revenue and operating profit, thanks to continued solid demand by our major customers for their flagship models, despite weak seasonality for smartphones. The large panel business surpassed its yield target for QD display, but its results still weakened due to initial ramp-up costs of QD display and a decline in LCD ASP. For the MX business, earnings decreased sequentially due to elevated operating costs, mainly in material and logistics and adverse currency effects. Revenue rose year on year as an improved component supply enabled increased sales of new premium models such as the Galaxy S22 and Tab S8 series. The network business saw its revenue grow slightly compared to the previous quarter with consistent sales, as it also continued to pursue new opportunities, highlighted by the addition of DISH Network as our newest U.S. customer. In VD, earnings decreased due to a decline in revenue caused by sluggish global TV demand and a rise in sales costs. We reinforced our market leadership by focusing on the premium segment, including QLED and Super Big TVs. Digital appliances saw its profits decline due to lingering cost burden issues, but it achieved record high quarterly revenue for a second consecutive quarter, thanks to the increasing global expansion of Bespoke products and a strong start of seasonal air conditioner sales. Regarding currency effects relative to the Korean won, the component business benefited from the strong dollar, resulting in an approximately KRW 1.3 trillion company-wide gain in operating profit compared to the previous quarter. The DX Division, however, experienced some adverse currency impacts. Next, I would like to share our business outlooks for the second half of the year. Under expectations that macro uncertainties are unlikely to dissipate, we will actively monitor demand trends to respond swiftly and flexibly. DS will focus on operating a high value-added portfolio, expanding advanced nodes, and adopting new applications. DX will continually reinforce our leadership and lineups in premium segments. We have started full-fledged expansion of multi-device experiences based on SmartThings, which has a global user base of 230 million. Now, for each business unit's outlook. In memory, we expect fundamental server demand to remain solid, but macro issues are likely to cause continued weakness in PC and mobile demand. While closely monitoring impacts on the demand side, such as releases of new mobile products by our major customers, we will continue to focus on our high value-added and high-density portfolios. For System LSI, we plan to further increase our volume zone SoC business and strengthen our leadership position in image sensors by expanding our customer base for 200 MP products. For Foundry, we aim to exceed market growth by adding new global clients while we continue to reinforce our technological competitiveness, including through the development of the second generation GAA process and by evolving derivative processes of existing nodes. For Display, in the mobile panel business, we anticipate that earnings will grow, driven by new smartphone launches and increased entry into new application areas such as automotive and gaming. In the large panel business, we expect earnings to improve with the shutdown of LCD production and increasing demand for QD display. The MX business will work to secure solid profitability on multiple fronts. We will target sales of foldable products to surpass those of the Galaxy Note series as we fully mainstream the segment by delivering a differentiated consumer experience enabled with global partnerships. We will also expand the Galaxy ecosystem through successful launches of wearable products and boost overall operational efficiency. For network, we plan to maintain revenue growth momentum by actively expanding our overseas businesses and by meeting domestic needs for 5G installations in a timely manner. We will also continue to reinforce our technology leadership in 5G core chips and virtualized radio access networks. For VD, we aim to capture demand in the premium market during strong seasonality by expanding sales of strategic products such as Neo QLED, Super Big, and Lifestyle lines. For digital appliances, we will focus on improving profitability by increasing sales of premium products, strengthening the B2B and online sales, and working to further enhance cost efficiencies. Now, turning to capital expenditures. CapEx in the second quarter was KRW 12.3 trillion, with KRW 10.9 trillion invested in the DS Division and KRW 0.8 trillion in display. CapEx in the first half of the year totaled KRW 20.3 trillion, with KRW 17.6 trillion invested in DS and KRW 1.5 trillion in display. Similar to last quarter, memory investments concentrated on infrastructure at P3 and on capacity expansions and process migrations at fabs in Hwaseong, Pyeongtaek, and Xi'an to address future demand. Foundry investments focused on increasing production capacity of advanced processes of 5 nm and below. Next, I would like to share some of our key activities in sustainability management. To start, in June, we published our 2022 sustainability report, which includes our key activities and achievements for the past year, such as the reinforcement of the board's oversight function of sustainability management, expansion of sustainability management activities by businesses, and our joining of the UN Global Compact or UNGC. For more details, please refer to the sustainability report, which is available via our website. Meanwhile, in recognition of our efforts to enhance the energy efficiency of our products and work sites, we were honored at the beginning of May with our ninth Sustained Excellence Award for Product Brand Owner, the highest level of recognition in the manufacturing sector in the U.S. Environmental Protection Agency's ENERGY STAR Awards. We also received the Partner of the Year Award for Energy Management, the highest level of EPA recognition. In addition, 11 models of our new TV products for 2022, including our Neo QLED 8K, earned reducing CO2 certification as part of the Carbon Trust Carbon Footprint labeling. The DS Division achieved a waste recycling rate of 97.5% through its multi-pronged approach towards recycling. It received global recycling standard certification by developing eco-friendly clean room garments using waste plastic bottles. It brought two more of its work sites to the platinum level for zero waste to landfill. Additionally, to reduce GHG emissions, we developed and then installed process gas treatment equipment at our domestic work sites. We expect to reduce greenhouse gas emissions by approximately 190,000 tons monthly through this in-house technology. Along with such activities, we are currently establishing a comprehensive mid to long-term environmental strategy that includes a climate change response, and we expect to be able to share detailed plans in the near future. We will continue to systematically promote sustainability management and are committed to transparently communicating our ESG direction and achievements with our stakeholders. I will now turn the conference call over to the representatives from each business unit to present second quarter performances and outlooks for their corresponding business segment. We will start with the Memory business. Thank you. Good morning. This is Han JinMan from the Memory Global Sales & Marketing office. For the memory market in the second quarter, server demand remains solid, but demand for consumer products, such as mobile, weakened due to widening impacts of macro issues. As a result, DRAM and NAND shipments were below the guidance. However, our performance improved both year-on-year and quarter-on-quarter as ASP stayed at a better than expected level. Thanks to our disciplined sales strategy to meet the market demand and also the benefits of a strong dollar. In DRAM, for server, there were some disruptions in set builds due to supply issues for certain components, but continued expansion of the proportion of high core CPUs kept fundamental end demand on a solid trend and memory demand on an upswing. Inventories increased at major PC OEM companies due to low sell out amid intensifying macro issues such as inflation, and demand weakened accordingly. Mobile experienced weak demand trend as well as consumer sentiment worsened due to lockdowns in China and price instability caused by the prolonged Russia-Ukraine war. We achieved the highest sales of server products in the industry for any quarter by optimizing our portfolio and actively responding to solid demand centering on servers. However, we missed guidance for total bit growth due to weak demand for consumer products such as PCs and mobile devices. Next, I will talk about the NAND market. For server SSD, along with continuously rising demand for high density products, thanks to investment by data center customers, demand extended to low density products as customers bid to minimize set build disruptions caused by a shortage of active and passive components. For client SSD, shipments were flat due to weak purchase demand for PCs attributable to macro issues such as inflation, but SSD content per box and attach rate kept growing thanks to the rising proportion of high-end products. For mobile, despite the continued trend towards high density, demand weakened as overall consumer sentiment deteriorated due to the persisting Russian-Ukraine war and lockdowns of major cities in China. We continue to expand the proportion of high density products of 512 Gb and higher for server SSD. We actively responded to the high density trend in client and s-client SSD mobile, helping us maintain a decent ASP. However, overall bit growth came in below guidance as mobile demand was much weaker than expected. Now let's move on to the outlook for the second half. For server, even though server demand and macro issues show a relatively weak correlation, there is a possibility of customers' temporal inventory adjustment amid some IC component supply problems, as well as a concern of a widespread economic recession and geopolitical issues. However, centering on major data center companies, investment in core infrastructure and new growth areas such as AI and 5G are expected to keep expanding, so fundamental demand should stay solid. On the other hand, consumer products like PC and mobile are more sensitive to macro factors than servers are, and current forecasts indicates that related demand is likely to weaken in the second half of the year. For PC, it is possible that the risk may spread to enterprise segments. They're expected to remain relatively solid. We cannot rule out chances of positive effects on consumer demand during the year-end promotional season. For mobile, chances of a recovery in consumer sentiment toward the end of the year are likely to depend on various factors, such as economic policies of major countries and the stabilization of commodity prices. In addition, high density adoption is expected to continue given launches of new mobile products by major customers. Amid the highly volatile market situation, we are planning to maintain our stance of operating an optimized portfolio that centers on high density, high value-added solutions based on supply flexibility in accordance with market conditions and customer needs. For product specific strategies, as always, DRAM enable to improve the quality of its business by staying disciplined against excessive expansion of sales and flexibly managing supply in line with demand. NAND will focus on creating demand mainly for high density products while considering characteristics of high price elasticity. We'll continue to strengthen our market leadership by actively responding to demand based on our excellent cost competitiveness. Finally, as an industry leader, we are sustaining our efforts to reinforce ESG management. For example, based on our accumulated product technology as a leading memory company, we are working to establish a recycling business model that will produce a virtuous cycle and streamline resource use. Moreover, as our customers' business patterns shift from ownership to usage-based, we'll make great efforts to develop business models that reinforce our customers' agility and flexibility, and also improve the future investment efficiency of our Memory business. Thank you. Good morning. This is Jae Geol Pyee from System LSI business. In second quarter, demand for products in major applications was sluggish due to unfavorable economic conditions such as geopolitical issues and inflation. However, System LSI second quarter earnings has improved quarter-on-quarter owing to exchange rate movement and growing supply of major components, such as volume zone SoC and DDI. We further also solidified our leadership in mobile image sensor technology by supplying the world's first 200 MP sensor. Furthermore, we have also established a foothold to expand our automotive SoC business by securing with customers in addition to our ones in Europe. Also in the second quarter, our DDI claimed the top market share position in revenue. In the second half of this year, despite high uncertainties such as weak demand for consumer electronics and manufacturers' inventory adjustments, we aim to exceed revenue and profitability growth year-over-year by expanding our 5G SoC lineup and increasing customer base to maximize the supply of our technology leading 200 MP image sensors. Thank you. Good morning. This is Moonsoo Kang from the Foundry business. In the second quarter this year, we achieved our highest ever second quarter revenue, thanks to solid demand for advanced processes, especially from HPC applications, sustained demand in mature processes, and overall yield improvement. In addition, we also achieved our highest ever second quarter profit through price realization and cost reduction, taking one step closer to securing future self-investment capacity. We have strengthened our technological competitiveness through the world first mass production of the 3 nm GAA process accomplished in June. Further, we have expanded application areas through continuous evolution of both advanced and mature processes, such as preparing advanced automotive process, developing processes for RF or radio frequency applications, and optimizing performance, power and area of our technologies. In the second half of the year, we expect that HPC and 5G related demand will continue to be solid, but uncertainties related to geopolitical issues and inflation exist. We are aiming to exceed market growth this year through yield improvement of advanced processes alongside a proper pricing strategy while responding flexibly to demand predictions via close cooperation with our customers. Additionally, we will strive to improve the maturity of second-gen GAA process, which will be our base for future growth and to expand our customer base for large-scale orders. Lastly, in October, we will host offline forums for the first time in three years. We aim to strengthen networking with our customers through our Samsung Foundry Forum in the U.S., Europe, Japan and Korea, and our Samsung Advanced Foundry Ecosystem, in short, SAFE forum in the U.S. Thank you. Good morning, I'm KwonYoung Choi from the Business Planning Department at Samsung Display. In the second quarter for the mobile display business, overall demand for the smartphone market declined due to deteriorating consumer sentiment attributable to inflation and rising interest rate. However, we achieved solid earnings growth, thanks to strong sales for flagship smartphone models based on our proprietary technologies and product performance. Our profit increased year-on-year, backed by positive effects of foreign exchange movement, with the continued increase of early adoption by laptops and portable gaming devices also contributing to the growth. For the large display business, losses persisted, due to a decrease in LCD ASP and initial cost of QD display development. However, we expect an increase in sales and profit margin from the second half of 2022, driven by rapid improvement in QD display yield and a rising number of brands adopting QD display products. Next, let me share the market outlook and Samsung Display's core strategies for the second half of 2022. In the second half, for the smartphone market, we expect earnings to improve half-on-half as a number of major customers plan to release new products. However, we expect earnings to be more volatile than they were last year due to a number of difficult-to-predict external factors. We expect our OLED panels to continue to record sales growth given the high demand for their use in premium products, which are relatively unaffected by economic fluctuations. For laptops, although we forecast that the market will contract due to an overall downturn in consumer markets, we expect our OLED display sales volume to keep growing, driven by rising consumer preference for displays featuring high resolution and a fast response time. Meanwhile, for the large display market, our QD display will feature in TV and monitor makers' new products, which are scheduled to roll out in earnest around the globe. Samsung Display will channel all of its efforts to promote the excellence of QD displays to consumers by launching joint promotion with our customers, aiming to lead the premium market. Thank you. Good morning and good afternoon. This is SungKoo Kim from the MX business. I would like to share our Q2 results for 2022 and the outlook for the MX business for the second half of the year. In Q2, geopolitical issues and concerns over inflation on top of continued weak, seasonally weak demand caused the smartphone market to decrease compared to the previous quarter. For MX, revenue and operating profit decreased QoQ due to the market situation, but revenue was up compared to Q2 last year. Even though total revenue of smartphones and tablets decreased QoQ, smartphone sales of flagship models remained solid. The supply disruption in Q1 was mostly reserved in Q2, and that contributed to the sequential increase in the Galaxy S22 sales, which were driven by the Galaxy S22 Ultra, the top model in the series. Also, the flagship Galaxy Tab S series, which embraced growing demand for big screen premium tablets, continued strong sales. However, profitability decreased QoQ due to increased material costs caused by recent price increases for components and logistics, as well as headwinds from exchange rates. Let me now share the outlook for the second half of this year. Given the persistent geopolitical volatility and economic uncertainties, we expect market demand for smartphones in the second half to stay similar YoY or grow by a low single-digit percentage. Despite the challenging market conditions, MX plans to expand sales with a focus on flagship products. In particular, through a successful launch of new foldable models, we will strive to solidify foldable products as a key category in the flagship market. To that end, we are committed to preparing thoroughly in all areas, including product completeness and supply. The new foldable models feature upgrades in design and durability, and in addition, close collaboration with global leading partners has helped us provide richer experiences tailored to the form factor. We will secure sufficient supply in advance to ensure we can meet the demand of every customer who wants to experience our products right after release. By doing so, we are striving to make our foldables the mainstream that our customers love even more than they did the Note series, and achieve continued high growth to drive flagship-centered revenue growth. Meanwhile, also, the smartwatch market in the second half of 2022 is forecasted to feel effects of economic uncertainties in the short term. We will try to maintain high growth momentum with the release of new watch models. The new watch models will be unpacked alongside the new foldable models in the second half, and their more intuitive and convenient Galaxy connected experience will help us expand sales of Galaxy Ecosystem devices. Going beyond providing customers with convenient technology and devices, Samsung will add valuable experiences and enrich customers' everyday life through services such as Samsung Wallet, which was introduced in Q2. Moreover, in collaboration with the overall DX businesses, we are making broad efforts to provide richer multi-device experiences based on SmartThings, including through the introductions of various life scenarios customized to individual life patterns. Finally, given expectations that the market will remain uncertain for some time, we will endeavor to maintain profitability in the double digits in the second half by improving our product mix, centering on flagship products through fully mainstreaming foldables, and by continually enhancing operational efficiency to respond to challenges such as adverse currency effects. Thank you. Good morning. I'm Young Moo Kim from Sales and Marketing team of Visual Display. First, I'd like to review the market conditions and our performances in the second quarter of 2022. Market demand for TV contracted both quarter-on-quarter and year-on-year. The former caused by entering weak seasonality and the latter due to the base effect of the last year's pent-up demand, as well as decreasing consumer confidence resulting from high interest rates, inflation, and other factors. For Samsung, our performance declined due to a decrease in revenue amid declining market demand and cost increases related to the intense market competition. We improved the quality of our sales mix and are maintaining our leadership by focusing on expanding series of premium products such as Neo QLED and Lifestyle. Next, I'd like to talk about our outlook for the second half of 2022. For TV market, although there are opportunities to expand sales, such as peak seasonality and global sporting events, several macroeconomic risks are likely to continue to cast uncertainties on overall TV demand. Samsung will closely observe the rapidly changing market, and we will capture peak season demand and secure profitability by focusing on strategic products such as Neo QLED /Lifestyle, and through strategic partnerships with major channel partners. At the same time, we will proactively target signage market, where B2B demand has been more active recently, while also further solidifying our status as a market leader with innovative products such as MICRO LED and Odyssey Ark. Thank you. Thank you. That sums up the second quarter results presentations. Before we move on to the Q&A session, I would like to share several data points in key business areas. However, once again, we will not be providing annual guidance considering the persistently high macro and geopolitical uncertainties. First, for DRAM. In the second quarter, our bit growth increased by a mid-single-digit percentage and ASP was flat quarter-on-quarter. For the third quarter, we expect market bit growth and our bit growth to stay flat compared to the second quarter. For NAND, our bit growth compared to the first quarter decreased by a high single-digit, while ASP increased by a low single-digit percentage. In the third quarter, we expect market bit growth and our bit growth to both rise by around 10% quarter-on-quarter. For display in the second quarter, the mobile portion of revenue was a percentage in the high 90s and sales volume declined sequentially by a high single-digit. In mobile in the second quarter, shipments were approximately 62 million units for smartphones and 7 million units for tablets. Smartphone ASP was $281. For the third quarter, we expect smartphone shipments and ASP to both rise quarter -on -quarter and tablet shipments to stay similar. For TVs, sales volume in the second quarter declined sequentially by a percentage in the mid-20s. For the third quarter, we expect sales volume to increase by a high single-digit percentage. I will now move on to the Q&A session. First, we will start taking questions from the conference call. Now Q&A session will begin. Please press star one, that is star and one if you have any questions. Questions will be taken according to the order you have pressed star and number one. For cancellation, please press star two, that is star and two on your phone. The first question will be presented by Ricky Seo from HSBC. Please go ahead with your question. I have two questions. The first question is about the inventory. It seems that the company's inventory has increased by about 9% QoQ. With that in mind, can you give us some details about the reasons for the inventory increase, the company's position regarding the higher inventory and also your expectations going forward about your inventory levels? Second question is towards the MX business. The company has been emphasizing connectivity, for example, that connects the mobile device with other devices such as tablets, wearables or PCs. The company I've been told is expecting this to be a source of additional synergy and has been focusing on actively developing new products. With that in mind, can you give us some more details about what kind of solutions the company is developing, its strategy and some updates on new products? [Foreign language] To answer your first question about inventory. As you will recall, there was the start of a serious global supply chain issue last year. Watching that, the company has since been continuously looking for ways of, first of all, minimizing the impact on our business and also allowing us to supply products without disruption to our customers. Strategically, since end of last year, we have been securing inventory around the key components through close cooperation with the key suppliers. [Foreign language] Now the supply chain situation actually worsened as we passed through this year with the Russia-Ukraine war and also some lockdowns in parts of China. Watching that, we have been increasing our inventory levels this year, and this was actually one of the key factors of why we were able to continue stable supply of products throughout the first half. [Foreign language] Regarding our outlook on inventory, we do expect that our inventory would be adjusted to fair balance levels during the second half, especially around the DX business. That said, given the fact that these macro uncertainties are continuing to exist, we will at the same time maintain a flexible approach while closely monitoring the situation. We will also be implementing a fair or balanced inventory policy at the DS business in connection with market situations. [Foreign language] To answer your second question about the connectivity, we see that the competitive paradigm in the market is shifting from the smartphone, the mobile device standalone to an ecosystem experience that is centered around the smartphone. That is why we have been continuing to strengthen the connectivity experience between ecosystem devices such as tablets, laptops, and wearables. This effort to strengthen the connectivity experience is not just within the MX business, but also it is at a corporate level, including the VD and our digital appliances business. For example, now customers are able to control and manage various home appliances such as TVs using the SmartThings from their smartphone. They are, for example, able to continue to watch a video from their smartphone seamlessly onto their TV. Opening the buds case with the trigger of a window on either a TV, a Smart Monitor, or The Freestyle projector so that the user can connect the buds to these devices with just one click. These are some of the examples of how we are providing a very convenient user experience that covers multiple devices in the home. [Foreign language] Actually, our concept of this SmartThings connectivity goes beyond connectivity between our own devices. We have been carrying out a Do the Smart Thing, the SmartThings daily lives campaign, where we show our customers the various scenarios that they can actually experience themselves by connecting not only our products and services, but also third party devices such as lights or power curtains in the home to provide a customized experience that's fit for everyone. Based on the SmartThings, our aim is to go beyond just providing convenient technologies or devices, but to become recognized as a premium brand with stronger position and value that actually makes life richer through a multi-device experience. [Foreign language] [Foreign language] The next question will be presented by Peter Lee from Citigroup. Please go ahead with your question. The next question will be presented by Peter Lee from Citigroup. Please go ahead with your question. [Foreign language] 요즘 TV 수요에 대해서 많이들 걱정을 좀 하고 있는데 하반기 저희가 보는 TV 수요 전망하고 그리고 그에 따른 프리미엄 시스템 라인업 전략 그리고 수익성 확보 방안이 어떻게 될지 답변 부탁드리겠습니다. I have two questions. The first question is about the memory side. You did miss your second quarter bit growth guidance by a significant margin. Can you give us some background to why it came in so low? Second question is to the VD side. I think the market is concerned quite a lot about TV demand going forward. Can you share your second half outlook for TV demand, your plans about the premium segment lineup, and also how you plan to defend your profitability? [Foreign language] 메모리 실적 관련 답변 드리겠습니다. 저희가 이 분기 매출과 이익은 평가도 좋았고 또 환율 영향도 있어서 전년 동기하고 전 분기 대비 실적은 성장했습니다. To answer your first question, about the memory. Actually, in second quarter, our performance, our business results in terms of both revenue and profits grew on a quarter-on-quarter and year-on-year basis, thanks to healthy pricing and also positive impact from FX. [Foreign language] 이 분기 시장은 좀 쉽지 않은 환경이었고요. 그동안 계속 견조하게 흐름이 유지됐던 서버는 나쁘지 않았습니다. 그런데 전쟁도 장기화되니까 원자재값도 오르고 또 다양한 매크로 이슈가 있어서 소비자 제품에는 타격이 있었습니다. 특히 모바일 수요가 저희가 예상한 것보다 좀 저조해서 저희 DRAM하고 NAND 출하도 결과적으로는 지난 분기 예상했던 수준을 밑돌게 됐고요. DRAM보다는 소비자 제품의 비중이 높은 NAND가 출하량 영향이 좀 뚜렷하게 나타났다고 말씀드릴 수 있습니다. That said, second quarter memory market conditions were not easy. They were very challenging. It was not so in the case of server, where server demand continued to remain solid, but it was on the consumer products that were hit due to various macro issues, including the rising commodity prices due to the extended war going on. Within the consumer products, the demand for mobile was lower, particularly more than expected. That was the main reason why our shipments for DRAM and NAND came in lower than what we had originally expected. Between DRAM and NAND, which has a higher exposure towards consumer products, had a more prominent decrease in shipments. [Foreign language] 하반기는 기회 요인도 있고 또 수요 관점에서 리스크도 상존하는 상황이거든요. 저희는 시장을 잘 보면서 변화에 좀 유연하게 대처하자, 뭐 이런 생각입니다. 그리고 NAND 같은 경우 저희가 지금 PC하고 모바일은 컨슈머 제품이라 수요가 좀 약하지 않겠냐고 전망은 하는데, 저희 end customer, end user의 고용영화에 대한 needs가 뚜렷하게 나타나고 있거든요. 그래서 이런 점을 이용해서 고객과의 산출 협력, 뭐 이런 방안도 지금 논의 중에 있습니다. 감사합니다. Now looking towards the second half, we think that the second half there will be a mix of upside and also risk factors. Given this uncertainty, we think that the best approach would be to continue to carefully watch the market and respond flexibly. In the case of NAND, I think the outlook is that demand for consumer products would be somewhat weak, consumer products such as PCs or mobile. When we sense the market, at least at the end user level, there is definitely a very clear demand for more storage capacity at the device level. We are currently discussing ways of tapping that, together with our customers. [Foreign language] 이어서 VD 관련 답변드리겠습니다. 앞서 말씀드린 것처럼 하반기 TV 시장은 성수기 진입과 스포츠 이벤트 개최로 기회 요인이 있지만, 동시에 거시경제 측면에서도 여러 가지 변수가 있어서 수요 예측이 좀 어려운 상황입니다. To answer your question about the VD, you've asked first of all about our outlook for the TV market. Currently looking towards the second half there, it would be seasonality positive, there will be positive seasonality, and also there are some sports events which would be an upside factor. There are so various other macro variables that are difficult to predict. Overall, the visibility about demand in the second half is limited. [Foreign language] 예, 이렇게 시장 수요가 불확실한 가운데서도 당사는 고부가 제품 중심으로 판매를 확대하고 또 operation을 최적화해서, 프리미엄 수요를 선점하고 수익성 확보에 주력을 할 예정입니다. Given this uncertainty of market demand, our focus is to gain a stronger edge in the premium segment, and also to secure profitability by continuing to expand our high value, high-end products and also optimizing our internal operation. [Foreign language] 이를 위해서 네오 QLED 중심으로 프리미엄 판매 전략을 지속하되 98인치 판매를 본격 확대해서 90인치 이상 초대형 시장을 주도하고, 또 MICRO LED는 기존의 110인치 외에 89인치 등 신규 사이즈 제품을 도입해서 프리미엄 신시장 개척에 앞장서도록 하겠습니다. Our strategy towards the premium segment is, number one, to continue focus on premium sales around the Neo QLED products, but also same time lead the ultra super large size 90 in+ market by increasing the sales of our 98 in offering. Also to introduce new sizes using Micro LED, which currently is offered in a 110 in. We'll be adding new sizes, such as 89 in in order to open up new territory within the premium market. [Foreign language] [Foreign language] The next question will be presented by JJ Park from JPMorgan. Please go ahead with your question. My first question is on the System LSI, the Exynos business. There are, I think, concerns about the competitiveness of that business in the market. We've been hearing some rumors that the company may fold up that business. Can you confirm whether those rumors are true? If not, how does the company plan to increase the competitiveness of its Exynos business? Second question is towards the foundry. The foundry has been making significant investments over the past several years, and that has resulted in growth of its top line above market growth rates. I guess the profitability-wise it's not at a satisfactory level from the market's perspective. Can you give us what you expect in terms of the Foundry business profitability in the future? [Foreign language] To answer your question about the Exynos business, the rumor that we may fold the business is completely not true. We're currently in the process of revising our SoC business model with a focus on gaining mid to long-term competitiveness by efficiently delegating or dedicating our resources appropriately. Within this new resource plan, the focus is on strengthening the competitiveness of the next generation mobile Exynos. Currently, we are focusing on expanding the market share of our key customers by increasing the level of cooperation with the leading IP holders for each area, and also starting the development cycle early on so that we have the core competitiveness. [Foreign language] Also to further strengthen the competitiveness of the SoC, we are looking into improving the business model, which is currently dependent on the mobile side. We're trying to expand that to other applications such as wearables, laptops and Wi-Fi products. Also, at the same time, we are focusing on expanding the ecosystem partnership around the SoC, by building stronger partnerships and new cooperation models with various companies within that value chain, such as OEMs, ODMs, the module companies and software vendors. [Foreign language] To answer your question about the foundry profitability, at least we think that the demand will remain solid, especially around the advanced nodes. Our plan is to continue our investments by analyzing multiple factors, including mid- to long-term market, global customers' demand, economic outlook, profitability, so that we're able to continue a stable supply. [Foreign language] 그래서 현재의 성장성이 지속된다면 25년에는 자체 투자 재원을 마련할 수 있는 수익성 수준에 도달하는 것을 목표로 사업에 매진하고 있습니다. 감사합니다. In terms of timeline, our plan is to start operation of our Pyeongtaek new line in 2023 and in Taylor in 2024. We also think that we will be able to continue to improve our profitability by introducing healthier prices and also improving our cost side, so that we're able to fund our investments from our operation. If we are able to continue our growth momentum that we see, we expect that we will be able to reach a level of profitability where we will be able to source the funding of investment from our own operations. [Foreign language] 답변 감사합니다. 다음 질문 주시기 바랍니다. [Foreign language] 다음으로 질문해 주실 분은 KB증권의 김동원 님입니다. The next question will be presented by Dong-won Kim from KB Securities. Please go ahead with your question. [Foreign language] 예, 질문 기회 감사드립니다. 저는 메모리와 디스플레이 질문 한 가지씩 드리겠습니다. 먼저 서버 수요 가시성 관련해서 하반기 서버 수요 감소 우려가 상존하고 있는 것으로 보입니다. 삼성전자가 보시는 하반기 서버 수요 방향성에 대해 의견 부탁드립니다. 다음은 글로벌 디스플레이 시장의 전반적인 침체 속에서 삼성디스플레이가 경쟁사 대비 양호한 실적을 달성하는 주요 원인에 대해 말씀 부탁드립니다. 감사합니다. My first question is about the memory, the server demand visibility. I think there are some concerns in the market that in the second half, even server demand may slow down. Can you give us your views of the server demand in the second half? Second question is about the display. While the overall display market globally is going through a difficult period, SDC relatively was able to deliver positive results. Can you give us some more detail of how that was possible? [Foreign language] 서버 수요 특징 중 하나로 말씀드리고 싶은 게 있는데요. 이 서버가 지정학적 이슈라든가 매크로 이슈 영향을 상대적으로 적게 받는다는 것이고요. 이게 왜 그러냐면 저희가 생활에 필수적이고 또 업무의 상당 부분이 서버 기반으로 이루어지고 있습니다. 그래서 여기에 AI나 이런 신성장 분야, 그다음에 핵심 인프라 투자가 계속 확대되고 있거든요. 그리고 추가로 말씀드리고 싶은 거는 최근에 하이브리드 서버라는 개념이 있는데, 이거는 기업들이 자체 서버, 그러니까 온프레미스 자체 서버와 같이 데이터센터의 퍼블릭 서버를 병렬로 활용하는 트렌드가 확산하고 있습니다. 그래서 펀더멘털 수요는 어느 정도 견조하게 유지되고 있다고 생각합니다. You've asked about server demand. I think one thing we've noticed about server demand is that it's relatively less sensitive to geopolitical issues or macro issues, and that's because servers have sort of a nature as an infrastructure that enables a lot of the things we do in daily lives and at work that we take for granted. There is that nature as an infrastructure essential. Then there are some new growth areas such as AI, where investments into core infrastructure is continuing to expand. Another thing we've been noticing in the market is that many enterprises are now adopting what's referred to as a hybrid server that combines their on-prem servers together with the data center public cloud servers in parallel. That is also adding to a solid support for fundamental server demand. [Foreign language] 그렇다고 해도 저희가 현재로서는 낙관적인 전망만 할 수는 없고요. 아직 IC 컴포넌트 쇼티지 문제가 존재합니다. 만약 글로벌 수준에서 리세션 이런 게 나타나면 저희 서버 고객사도 재고 조정할 수밖에 없고, 이게 또 서버 메모리 수요에 일부 영향을 주는 케이스 이런 게 또 발생하기 때문에 이런 거 다 고려해서 지금 준비하고 있습니다. Despite that resilience in server demand, I think it's difficult for us to say that everything would be optimistic because as you mentioned, there are some reasons to be concerned, such as there are some still IC parts that are going through a supply disruption. If the global economic recession occurs as some are concerned, I think at that point, even the server customers will have to go through an inventory adjustment which may impact the memory demand at our end. [Foreign language] 이렇게 불확실성이 높다라는 말씀을 드리고요. 그렇기 때문에 저희는 이제 전망을 수시로 업데이트합니다. 그래서 정확성을 높여가고, 높여가려고 하고 있는데, 그러니까 이런 저희가 수요 전망을 이제 해서 그런 결과가 지난 그 2분기에 지금 포트폴리오 최적화 이런 걸 통해서 수요에 적극 대응했고요. 그래서 저희가 서버향 분기에 최대 판매를 달성했습니다. 하반기에는 이제 DDR5 이런 게 양산 시작되고 시장도 커지고, 그리고 내년에는 이제 비중, 의미 있는 비중 증가가 예상되니까 저희는 이제 뭐 계속 말씀드린 건데 신규 플랫폼향 그 뭐 high value, 그다음에 뭐 고용량 솔루션 이런 제품 중심으로 포트폴리오 최적화 계속하고, 수요에 맞춰서 탄력적으로 이렇게 공급해야 되겠다 이렇게 생각하고 있습니다. 감사합니다. Our assessment of the server market is that uncertainty is at high levels. That is why actually we are updating our forecast and outlook at any time, in order to improve the fidelity of our forecast. An example of how that works is what we did in the second quarter, where we were able to optimize our product portfolio earlier on, so that we are able to fully capture the demand on the server side, and record the highest quarterly server sales in the industry. Looking towards the second half, there are some upside factors, for example, the mass production of DDR5 at full scale. Our market is expected to therefore expand, and therefore, server markets are expected to record meaningful increase in share. Our approach to that is to continue to maintain an optimized product portfolio around the high end and high density solution products, but maintain a supply that's flexible and fit to the demand. [Foreign language] To answer your question about the display and the relatively better performance compared to competitors. Well, first of all, if you just look back on the market, as you mentioned, overall, the economic environment is challenging. The display market this year has been going through a decreasing demand and also a decline in ASP, so it's a challenging market. We are concerned about these market volatilities as well as the possibility of an economic recession. We are carefully monitoring market demand and also the supply chain. Despite these challenging environments, as you mentioned, there seems to be a divergence of company results. The reason why we are pulling away from the other competitors and are staying healthy, I think is mainly explained by the fact that we were able to preemptively start to adjust our business strategy. [Foreign language] As you recall, based on our market analysis and analysis of consumer needs, we had decided to fold our LCD business several years ago and have been going through that process. We completely closed down the LCD business as of the first half of this year. We were able to actually focus our resources on building a full lineup of OLED offerings that covers not only the mobile, but also IT and also the QD display. That has actually given us the fundamentals to weather through various disruptions that we've been going through the past several years, including the pandemic and the rapid decline in market demand, and despite that, maintain a stable performance. Going forward, we will continue to focus on building our competitiveness on these different applications such as mobile IT, auto and QD displays, and focus on developing our technologies and providing greater customer satisfaction. [Foreign language] [Foreign language] The next question will be presented by Nicolas Gaudois from UBS. Please go ahead with your question. Good morning, thanks for taking my question. The first one is on memory. In light of demand uncertainty in the market, we believe that memory makers are reconsidering and reducing their initial capital spending budget into 2023. Does this actually apply to Samsung as well? Could this imply a reduction in overall CapEx and in revenue into next year? Secondly, regarding the Foundry business, for the 3 nm Gate-All-Around second generation, i.e., 3GAP. What is the development status now and mass production time? How are you executing in winning large-scale customers for 3GAP? Thank you. [Foreign language] [Foreign language] First, to answer your question about memory, I guess a good place to start is about our memory market outlook. As we've been talking, we do agree that there is a possibility that memory markets may be somewhat weak in the second half. But we are, as we mentioned, updating our demand forecast weekly and even a daily basis. I think at this point, the best approach we can take is to not be too optimistic or too pessimistic about the memory market, but to just continue to check all of the factors we can, both internally and externally, and respond flexibly to what we see. [Foreign language] Now, despite all of that uncertainty and changing forecast, our overall investment principles still stand. We have mentioned several times, our basic principle and approach towards investments is to continue to make the appropriate level of inventory and advanced node investments in order for us to capture mid- to long-term demand, but at the same time, manage our facility equipment investments more flexibly, closely tied to the actual industry situation. That principle still stands valid. Now, that said, with the huge amounts of uncertainty in the market, driven by a wide variety of macro issues, we will place priority on using inventory to continue our supply. Also regarding our short-term equipment related investments, wouldn't you agree that it's at this point the best to just flexibly respond by revisiting the situation? [Foreign language] You've asked about the update of our 3GAP, the 3 nm second-generation GAA development process. As you know, compared to first generation, the second generation further improved the size, performance and power efficiency. Also, we have adopted an improved development process so that we're able to do checks from stage to stage during the development phase. Also, we have designed the development process so that resources are intensively invested in the upside of the first part of the development process, so that we're able to ramp up the initial yield. Our overall development is on track with mass production aiming for 2024. [Foreign language] Regarding the orders, we have already secured several mobile application customers, and we're currently under discussion and negotiation with a large number of mobile customers, and we expect that the size will continue to grow. [Foreign language] [Foreign language] 마지막으로 질문해 주실 분은 Daewoo Capital Market의 Sung-Kyu Kim 님입니다. The last question will be presented by Sung Kyu Kim from Daiwa Capital Markets. Please go ahead with your question. [Foreign language] 네, 안녕하세요. 질문 기회 주셔서 감사합니다. 저도 메모리 쪽에 하나, 그리고 디스플레이 쪽에 하나씩 질문드리겠습니다. 우선 메모리는, 올해부터 내년까지 이 공급 전망에 대해서 좀 여쭤보고 싶습니다. 지금 말씀하신 대로 하반기 수요의 불확실성이 지금 상당히 높아져 있는데요. 반면에 반도체 장비 공급의 리드 타임 이슈도 계속 지속되고 있는 걸로 알고 있습니다. 이에 따라서 지금 그 업체들의 특히 DRAM 공정 전환이 slowdown이 되고 있고, 앞으로도 그렇게 될 걸로 예상되는데요. 올해 및 내년 공급 증가가, 개량 어느 정도 수준으로 예상하고 계시는지 가능한 범위 내에서 의견 부탁드리겠습니다. 두 번째는, 디스플레이의 미래 성장에 대해서 좀 여쭤보고 싶습니다. 아까 사업 구조 전환 말씀하셨는데요. 삼성 디스플레이의 미래 성장을 위해서 그 중점적으로 지금 준비하고 있는 분야가 어떤 건지 좀 구체적으로 설명 부탁드리겠습니다. 감사합니다. The first question is about memory supply outlook for second half and next year. As I do agree that currently, at least the second half demand, there's a lot of uncertainty around that. Another factor regarding supply side is that there are some disruptions in the equipment supply, the lead time, and that according to us is slowing down the process migration of especially the DRAM nodes. Given all of those factors, what is your outlook on DRAM supply, memory supply for this year and next year? Second question is about the display side. As you mentioned, Samsung Display has had taken the preemptive initiative to restructure its businesses, and preparing for future. With that in mind, can you give us more details of which specific business areas Samsung Display is preparing for? [Foreign language] 말씀하신 대로 이제 불확실성이 증가되니까 저희 공급 기조는 최적의 제품 믹스를 바탕으로 고객이 필요로 하는 제품을 안정적으로 공급한다는 겁니다. To answer your question about DRAM supply, yes, given the high level of uncertainty that we see going forward, our basic approach is to continue to maintain an optimized product mix so that we're able to stably supply products that the customers actually need. [Foreign language] 내년의 경우는 이 부품 수급 이슈가 지속돼서 이거에 의해서 생산 설비 입고가 지연이 계속되고 있는데요. 선단 공정을 전환해야 되고 또 그다음에 공정의 난이도가 올라가니까 이 Bit growth 유지에 일부 제약이 발생하고 있다라고 말씀드릴 수 있고요. 이게 구조적으로 생산 제약이 영향을 받게 되니까 DRAM의 경우에는 구체적인 수치는 말씀드리기 어렵지만 내년에 아마 업계의 생산 Bit 성장 관점에서는 상당히 낮은 수준이 될 걸로 예상합니다. 그리고 DDR5, LPDDR5X 같은 이런 신제품 시장, 뉴 인터페이스 시장이 계속 확대가 되면서 다양한 제품에서 이 product mix를 어떻게 하느냐, 이게 가장 중요하고요. 그래서 저희는 시장의 수요를 빨리빨리 sensing하고 고객과 협력해야 되겠다, 이게 아주 중요하다고 생각하고 있습니다. Now looking towards next year, as you mentioned, there are possibilities of equipment lead times being delayed due to continued issues in the component parts supply. If there are delays in the equipment deliveries, this would cause delays in migration to the advanced nodes. Also considering the difficulty at the advanced nodes in terms of production, this is causing already some restrictions in Bit growth throughout the industry. With that structural constraint in production, we expect there may be actually a quite low level of Bit growth in the DRAM at an industry level. What's happening at the same time is that the new product markets are opening up, especially around the new interfaces such as DDR5 and LPDDR5X. With the variety of products being introduced, it's going to be critical for the memory companies to start with the right product mix in place. That is why we have been focusing on sensing the market demand and closely cooperating with the customers. [Foreign language] 저희는 이제 이렇게 고객하고 협력을 바탕으로 해서 재고 정책을 유연하게 가져갈 거고요. 그리고 아까 말씀드린 그 다양한 라인업을 갖고 시장 변화를 면밀하게 모니터를 하면서 이 수익성을 확보할 수 있는 그런 supply 정책을 이제 전개할 생각입니다. 감사합니다. Now with that outlook, our basic policy towards supply next year would be to maintain a flexible inventory policy based on close collaboration with our customers, and also to carefully monitor the market with a very wide product lineup prepared so that we are able to emphasize profitability in terms of our supply. [Foreign language] 디스플레이 질문 답변드리겠습니다. SDC의 미래 성장 전략에 대한 질문이셨고요. 저기에 대해서 답변드리도록 하겠습니다. 이전 질문에 답변드린 것처럼, 저희가 선제적으로 시장 변화를 대비하고, 사업 구조를 전환해 왔습니다. [Foreign language] 저희가 향후 5년 이상의 시장 환경 변화와 기술 진화 등을 감안하여, 저희 SDC가 성장하기 위한 중장기 전략을 수립하고 있습니다. 특히 오늘은 두 가지 분야에 대해서 답변을 드리도록 하겠습니다. 그 첫 번째는, 저희 스마트폰 OLED의 시장 침투율이 약 40% 정도까지 올라왔습니다. 현재 LCD가 대부분인 시장들을 OLED로 전환하기 위해서 IT 그리고 Automotive, Gaming Device 등에서 OLED 장점을 극대화하여 시장에 적극적으로 알리고, 이러한 제품들에 필요한 기술들을 미리 준비하는 것입니다. 그리고 또 하나는, 4차 산업혁명에서 새롭게 채용되는 신사업을 준비하는 것입니다. 특히, 당사는 미래 성장 잠재력이 크고 극한 성능의 디스플레이 성능이 요구되는 Metaverse, AR, VR로 대변되는 Metaverse 시장을 리딩하기 위해서 마이크로 디스플레이 기술을 체계적으로 개발해 나가고 있습니다. To answer your second question, which was about the Samsung Display's future growth and business strategy. As you mentioned, we have been sensing market changes in the mid to long-term perspective and have taken the preemptive initiative to change our business structure. Now, going forward, we will continue to take this mid to long-term strategic approach that tries to look at, for example, market and technology changes, at least with a five-year horizon. Some of the key areas that I can emphasize within that strategy would be number one, trying to find new applications for OLED. Currently, smartphone OLED penetration is already around 40% levels, and that's why we are trying to find other applications where OLED can replace LCDs. This will be, for example, in IT, automotive, or gaming could be new OLED applications. We're focusing on emphasizing the advantages of OLED versus LCD, and also preparing the technologies to actually implement OLEDs in these application areas. The second area that we're focusing on is areas that would grow significantly as a part of this fourth industrial revolution. That's basically Metaverse, or in other words, AR and VR applications. These applications actually demand extreme level display performance, and so we are preparing the technology, including micro displays. [Foreign language] 그리고 이러한 기술뿐만 아니라 Metaverse 시장 자체가 이미 기존에 형성되어 있던 곳에 진입해서 경쟁하던 그런 기존 시장과 달리, 초기 단계부터 디스플레이뿐만 아니라 upstream, downstream이 동시에 잘 준비가 돼야 되는 산업이기 때문에, 인프라 구축이 매우 중요하다고 생각하고 있습니다. 그래서 당사는 이러한 기술 개발과 함께, 저희가 수십 년간 디스플레이 산업을 이끌어왔던 그런 당사의 사업 노하우, 인프라 등을 적극 활용해서 전후방 SCM 구축에도 적극적인 리딩 역할을 하면서, 시장을 잘 준비하고 선점하도록 하겠습니다. 감사합니다. Especially in the case of Metaverse, it's not a market that's already existing where we will be entering, but actually it's going to be a new market that's created from ground up. It's important to not only have the display right, but also both have the upstream and downstream infrastructure well prepared. That's why we are actually getting ready to play a leading role in creating this infrastructure, this supply chain ecosystem around the Metaverse by developing the technology and also contributing the display business knowhow that we have accumulated as a leader in that space. [Foreign language] 예, 답변 감사합니다. 마지막으로 저희가 온라인을 통해서 사전에 취합한 질문에 대해 답변드리도록 하겠습니다. 잘 아시다시피 지난해부터 개인투자자들과의 소통 강화 및 이해 제고를 위해서 홈페이지를 통해 저희가 사전에 질문하실 수 있도록 했고, 이번 분기에도 많은 분들께서 다양한 질문을 남겨주셨습니다. 이 중 대부분은 앞서 진행된 질의응답 과정에서 충분히 설명이 된 것으로 보이기 때문에 거론되지 않은 질문 중에서 주주들의 관심도가 높은 한 가지 사안에 대해서 추가적으로 답변을 드리고 마치도록 하겠습니다. 질문은 하반기 경기 침체 이야기가 많이 나오고 있는데 스마트폰 수요 전망을 어떻게 보시는지요? 그리고 이러한 상황 속에서 삼성전자의 판매 전략과 수익성 확보 방안에 대해 알고 싶습니다, 이며 이에 대해 MX의 김성구 상무가 답변해 주시겠습니다. Finally, we will answer questions that were submitted online in advance. We have been accepting questions via our webpage in advance of our earnings release as a part of our efforts to strengthen communication with individual investors and enhance understanding of the company. We have received a wide variety of questions for this quarter. I believe the majority of the submitted questions were sufficiently answered during the Q&A session, and so we will answer one more question on the topic that garnered a high level of interest from many of our shareholders, but were not addressed during the Q&A session. That question is, amid the heightened concerns over an economic slowdown in the second half of this year, what is the company's outlook for smartphone demand? Against this backdrop, what are the company's sales strategies and measures to secure profitability, in the mobile side? That will be answered by VP SungKoo Kim on behalf of the Mobile Experience, the MX. [Foreign language] 스마트폰 시장 전망부터 말씀드리면, 하반기는 연초까지는 매출 그리고 물량 기준으로 전년비 한 자릿수 중후반대 성장이 예상됐지만, 최근 전망은 시장 불확실성 영향이 있어서 전년 수준으로 유지되거나 소폭 정도만 성장할 것으로 하향 조정됐습니다. 다만 중장기적으로는 프리미엄 경험에 대한 소비자 니즈가 계속해서 커지고, 성장 국가들도 소비자들의 가처분 소득이 증가하고, 폴더블 같은 첨단 기술이 대중화되면서 플래그십 중심의 성장은 지속될 것으로 예상됩니다. Yes. To answer your question, I think I can start from the outlook of the smartphone demand. Actually at the start of this year, the smartphone market in the second half was expected to record a mid to high single digit growth in terms of both revenue and volume. Recently, our outlook has been revised, and as we stand today, we believe that in the second half, due to various market uncertainties, the smartphone market would either be flat or record only a small amount of growth. However, we think that still in the mid to long term, growth will continue, especially around the flagships. The reason we believe that is number one, because there is a greater need from consumers for premium experiences, and also in the emerging market countries, disposable income is increasing. Also, there is a greater penetration of new technologies such as foldable. [Foreign language] 올해 저희 스마트폰 전체 판매량은 시장이 위축되면서 소폭 감소할 가능성이 있지만, 플래그십 판매 확대해서 전년비 매출을 성장시키고, ASP도 상승시킬 수 있도록 노력할 것입니다. 이를 위해서 하반기에도 상반기 성공적이었던 S 시리즈 판매 모멘텀을 이어가고, 또 새로운 폴더블 시리즈의 진정한 대중화를 만들어서 기존 Note 시리즈의 신제품 이상의 판매량을 달성할 수 있도록 노력하겠습니다. 그리고 Galaxy Ecosystem 유아이스도 수익성이 높은 대화면 프리미엄 태블릿 그리고 웨어러블 신모델 중심으로 판매를 확대해서 전반적인 제품 믹스를 개선시킬 계획입니다. 원활하게 판매를 확대해 가면서 또 한편으로는 개발 제조 물류 프로세스 전반에 걸쳐서 최적화와 효율화도 계속해서 원화 기준으로 연간 전년비 두 자릿수 매출 성장을 달성하고, 또 두 자릿수 영업이익률도 유지할 수 있도록 적극적으로 노력하겠습니다. Overall, we think that on a full year basis, smartphone shipments at our level would slightly decrease given the shrinking market. Actually, we will focus on increasing our revenue as well as ASP on a year-on-year basis, on a full year basis, by increasing the sales of our flagship. To translate into specific details, in the second half, we will continue to maintain the sales momentum of our S series and also use the new foldable series that will be launched in order to deliver sales volumes that are above the sales volumes we used to record using the Note series. Also, the shift towards the premium segment will continue on our Galaxy ecosystem as well as we increase sales around the large screen size premium tablets and wearable new models. With all of that, we're expecting that our overall product mix will be further enhanced. While we make those advances on our sales side internally, we will continue to work on optimizing and raising the efficiency of our overall process across development, manufacturing and logistics to deliver double digit revenue growth on a full year basis, year-over-year on a Korean won base, and also focus on maintaining a double digit operating profit. [Foreign language] 네, 답변 감사합니다. 투자자 여러분들의 소중한 의견 감사드리며, 주요 경영 의사결정에 참고하도록 하겠습니다. 그럼 이것으로 이번 분기 컨퍼런스 콜을 마치도록 하겠습니다. 여러분과 가족분들의 건강과 안전을 기원합니다. 감사합니다. I would like to thank everyone who shared their valuable opinions, and we will be sure to refer to them in our business making process. That completes our conference call for this quarter. We wish all of you and those close to you stay strong and in good health. Thank you.