Good morning. Thank you for joining us today. I'm Yoontae Kim, Vice President of Business Management Office at Samsung SDI. Joining us are CFO Jong Sung Kim, EVP Michael Son, representing Automotive & ESS Battery, EVP Jae-young Lee, representing Small Battery, and EVP Sang-kyun Kim for Electronic Materials. We'll now begin the earnings call for the second quarter of 2023. First off, our second quarter results and financial highlights. In the second quarter, for both the revenue and operating profit increased to QOQ and YOY. The revenue was KRW 5.8 trillion, which increased 9% QOQ and 23% YOY. The operating profit rose by 20% sequentially and by 5% from a year ago to KRW 450 billion, with operating margin of 7.7%. Looking at each business segment, the batteries business generated by KRW 0.3 trillion in revenue, increased both quarterly and yearly by 10% and 29% respectively, as the both large and small size battery businesses recorded growth. The operating profit stood at KRW 388 billion, an increase by 23% QOQ and 58% YOY. The electronic materials business reported the revenue of KRW 571 billion, with 2% increase QOQ, but 15% decrease YOY, due to slow down the end product demand. The operating profit was KRW 62 billion, a 5% increase from the prior quarter and down 66% YOY. The pre-tax profit was KRW 583 billion, including KRW 133 billion of the non-operating profits, such as profit and loss, using the equity method, with the net profit of KRW 486 billion. The quarter and total assets rose by KRW 495 billion sequentially to KRW 33 trillion. Liabilities increased by KRW 42 billion QOQ to KRW 14.5 trillion. The equity was posted at KRW 18.5 trillion of KRW 453 billion increase. That equity ratio declined slightly to 78%. Next, let me brief you about our ESG performance during the quarter. Samsung SDI had a fruitful quarter in carrying out the ESG targets. We finished the calculation of the Scope 3 emissions that encompass indirect emissions from our entire value chain and became the first lithium battery player to receive Carbon Footprint Label by Carbon Trust, a UK-based carbon certification agency. We recently published a sustainability report detailing such feats, along with our other ESG performances and achievements available on our website. Before moving on to enumerating the business unit results, our Head of Business Management Office, Jong Sung Kim, will share the company's business highlights in the first half and outlooks of the second half. Hello, I'm Jong Sung Kim, the Head of Business Management Office. Let me start with business highlights in the first half. Despite sluggish end product demand and global economic downturn, we achieved solid earnings and continued our growth centering on battery business on the back of green policy expansion and accelerated electrification of the automakers. On top of such, our preparation for future growth engines was seamlessly on the way. First of all, as recently reported, we signed an MOU with Stellantis to build a second plant for our joint venture, StarPlus Energy. This means that our planned annual capacity in the U.S. will total about 100 GWh, combining the StarPlus Energy's two plants with the prospective capacity for the joint venture with General Motors. In tandem, the expansion of the second plant in Malaysia is also making smooth progress to accommodate growing demand for cylindrical batteries in the future. As for the solid-state battery, we completed the pilot line setup and produced R&D demo samples. Good progress as well with the 46-phi battery, our next-gen cylindrical battery form factor, as its production line commenced its sample production recently. To secure our innovative super gap technological competitiveness, we focused on accelerating the R&D by establishing an R&D center in Shanghai, forming a global R&D network, along with the ones set up in the U.S. and Europe last year. Now, I'd like to share our business outlooks in the second half. Amid the lingering uncertainties induced by slowdown of global economy, EV demand is expected to grow by 20% from the first half, while the long-term EV and ESS battery demand is projected to outgrow last year's forecast. Taking this momentum, we expect to expand our growth mainly on EV and ESS batteries. In response to such market growth, Samsung SDI has set out the following key tasks. First, we will speed up the development of solid-state batteries in order to preoccupy the next-gen battery market, as well as secure production capability for 46-phi batteries to expand our pool of major electric vehicle customers. We will continue to drive manufacturing innovation to gain cost advantage and to prepare platforms for a wide spectrum of markets, such as high-nickel batteries for premium markets and new materials for volume and entry markets. In line with growing importance of global supply chain management, we will not only secure the supply of key metals through long-term supply agreement to accurate investment, but also endeavor to establish local supply ecosystems that connect globally. Regarding electronic materials, we will solidify our foundation for future growth by rolling out new products such as Tungsten Slurry, EUV photoresist, Polarizer Film for OLED to our customers. Also central to our future strategy is to expand the R&D of battery materials, such as ones for solid-state battery. Last but not least, but we will further fortify our ESG management as we see it as our future business edge. We will work with our partners through win-win partnerships, thereby rising together as global leaders for a co-prosperous future. We would like to ask for your continued support. Thank you. Now, each business unit will present the details of the second quarter results and the second half outlooks. Good morning, this is Michael Son, head of the Automotive and ESS Battery Strategy Marketing team. Exceeding the second quarter, large site battery business saw increase in both the revenue and profit, thanks to the solid sales of customers' premium vehicles geared with our P5 batteries. After passing the low season, ESS sales has also expanded, mainly in utility and UPS solutions. In the second half, we will actively engage to meet the demand for automotive batteries through new lines in Hungary, which will lead the P5 sales to take up over 50% of our total prismatic battery cells for electromotive vehicles and propel the earnings growth down the line. Our efforts to diversify customer portfolio continue as we seek to materialize project acquisitions from new customers, as well as gain additional orders from the existing ones. Also, the solid-state battery project will start sample production for customers in earnest at the S line, our pilot line. With the ESS batteries, we will roll out a new product featuring higher energy density and better safety that will bring us the sales growth centered on utility solutions. Concerns over global economic slowdown persist in the second half. We will make the utmost efforts to create revenue growth and profit improvement in keeping up with the fast-growing markets of Automotive & ESS Battery. This is the end of large-size battery division's presentation. Thank you. Good morning, I am Jae-young Lee, Head of the Small-Sized Battery Strategy Marketing Team. In the second quarter, small-sized battery business produced improved results in both revenue and profit, thanks to the expanded sales of high-power cylindrical batteries. Despite the recovery of the demand for power tool batteries, we managed to expand the sales for major customers backed by long-term supply agreements. Pouch batteries, however, recorded a declined revenue due to sluggish IT demand. In addition to our earnings growth, we have been diligent in making results for next generation form factor 46-phi batteries, as we achieved the customer's target performance earlier than planned and started the preparation for sample production for customers, which is scheduled in the second half. Going into the second half, we expect the revenue and profit to grow, driven by the sales expansion of EV and micro mobility, that includes e-bikes and e-scooters. EV and e-bike battery sales is likely to expand, stemming from increasing demand, while we seek Business Opportunity for e-scooters in new rising markets, such as India. The market demand for power tool batteries is recovering rather slowly, but we will press ahead with poor sales expansion by confirming the second half volume as early as possible in close consultation with the customers and by promoting sales for new applications. Last but not least, the supply of pouch batteries for our major customers' new flagship models has commenced. This is the end of small-sized battery division's presentation. Thank you. Good morning, I am Sang-kyun Kim, head of Electronic Materials Strategy Marketing Team. In the second quarter, electronic materials business reported marginally better results with increased Polarizer Film revenue, owing to the demand recovery that followed the normalization of the major customers' inventory level. However, the revenue for semiconductor process materials declined, as the market demand remained muted during the quarter. In the second half, we expect both the revenue and profit to improve as the contracted demand is slated to recover and fare better in the first half. Polarizer Film is likely to sustain a good flow in sales, with higher utilization rate and enhanced product mix, whereas OLED materials are set to see the sales expansion, with the supply starting for new major customers' new platform. As for the semiconductor materials, amid the gradual demand recovery, we will push forward with expanding the sales by penetrating into new products such as Tungsten Slurry, SOH, and EMC with high level of heat dissipation. Thank you. Now, we will close the presentation and move on to the Q&A session, which will be provided in Korean, followed by consecutive interpreting in English. If you have any questions, please follow the operator's guidance. Now Q&A session will begin. Please press star one, star and one if you have any questions. Please press star two, star and two if you want to cancel questions. In order to allow as many Q&A chances as possible within the restricted time, we would appreciate only two questions per each participant. The first question will be provided by Ji-San Kim from Kiwoom Securities. Please go ahead with your question. My name is Ji-San Kim from Kiwoom Securities. I want to thank you for giving me this opportunity to ask you questions. I have two questions. Let me first ask you, it seems that SDI appears to be investing more aggressively than before, as can be seen with GM JV and the second Stellantis JV plant. Can we expect further acceleration of orders and investments in the future? That would be the first question. As for the second question, JVs with Stellantis and GM are expected to begin production in the U.S. after 25. I was wondering if Samsung SDI is preparing its supply chain management in accordance with the accelerated capacity expansion as well as the IRA subsidy conditions. I am Michael Son from the Automotive and ESS Battery Business Unit. I will provide you the answer for the first question, which was related to the accelerate, how, what we expect in terms of the orders and investments in the future. Under a firm management vision of super gap technological competitiveness, the best quality, profitable and qualitative growth, Samsung SDI has continuously executed project acquisitions and investments in line with the market growth, based upon its mid to long-term business strategy. As such factors as IRA have boosted the North American market, we have responded effectively and thus attained many achievements, such as the Stellantis JV, GM JV, and the recent Stellantis JV second plant MOU. We will take into account our strategic direction and resources and respond appropriately to the continuously growing market demand. Thank you. The second question is about the IRA subsidy in the U.S. I will answer that. I am Kim Yuntae from the Management Support Room. As you well know, among the tax benefits given to consumers when purchasing eco-friendly vehicles, in order to meet the core mineral conditions, the proportion of minerals extracted, processed, or recycled in North America or from FTA countries with the US must meet more than 40% this year, and increase by 10% each year until 2027. The company plans to meet the conditions by using minerals from Australia and other FTA countries with the US, with lithium, which accounts for the largest proportion of core minerals, in 2023 and 2024. Starting in 2025, the use of minerals from foreign right groups will be completely excluded, so we will actively secure minerals from North America and FTA countries with the US in advance. ... 외국 우려 집단 외 지역으로 에시, SCM을 구축하고 있는 우리 주요 파트너사들과의 협력을 통해 조건을 충족할 예정입니다. 북미 내 배터리 부품 생산 조건과 관련해서는 당사가 미주 생산을 시작하는 2025년에는 북미산 비중 60% 이상을 충족해야 하고, 그 비중을 매년 10%씩 확대해야 하는데, 이를 위해서 당사는 극판 셀 모듈 공정의 현지화는 물론이고, 셀 모듈 부품, 분리막, 전해액 등 주요 부품에 대한 파트너사들과의 현지 진출 일정을 그 계획을 세워서 현재 진행을 하고 있습니다. 외국 우려 집단에 대한 구체적인 정의 등 여러가지 불확실성이 존재하긴 하지만 저희 회사는 다양한 시나리오를 가지고 철저히 준비해서 가속화되고 있는 미국 시장 그 사업에서 차질이 없도록 그렇게 하려고 하겠습니다. 감사합니다. I am Yoontae Kim, VP of the Business Management Office, I will be providing you the answer to your second question relating to how we are preparing our supply chain management in accordance with the IRA subsidy conditions. To meet the critical mineral requirement for a tax benefit given to consumers of eco-friendly vehicles, the proportion of minerals extracted processed in North America and USFTA countries or recycled in North America must be at least 40% this year and increase by 10% every year until 2027. Our plan is to meet the requirements by using minerals from USFTA countries such as Australia, mainly lithium, which account for the largest proportion of critical minerals in 2023 and 2024. From 2025, when the use of minerals from Foreign Entities of Concern is prohibited, we aim to cooperate with major partner companies that have SCM in regions other than FEOC, to meet the requirements. Starting from 2025, when we begin production in the U.S., we must achieve at least 60% of the North American share for the battery component production requirement and raise that share by 10% every year. To this end, we are localizing our electrode cell module processes and collaborating with partner companies to enter the local market for key components, such as cell module components, separators, and electrolytes on schedule. Specific definition of Foreign Entities of Concern is not clear yet, we will plan carefully with various scenarios. We want nothing to disrupt the accelerated growth of our North American business. Thank you! 네, 다음 질문 받도록 하겠습니다. 다음으로 질문해 주실 분은 JP 모건 증권회사의 권재현 님입니다. The following question will be presented by Jaehyun Kwon from JP Morgan. Please go ahead with your question. 네, 안녕하세요. 질문 기회 주셔서 감사합니다. 저도 두 가지 질문이 있는데, 첫 번째 우선 전고체 전지 관련입니다. 그 앞서서 저희 설명해 주신 거를 들어보면은, 전고체 전지 개발 관련 일정이 굉장히 순조롭게 진행되고 있는 것 같은데, 저희 기술적으로 그 SDI 전고체 전지가 이제 보유하고 있는 차별화 포인트가, 무엇인지 좀 설명 부탁드리고, 고객과 현재 협의가 어떻게 진행되고 있는지도 업데이트 주실 수 있으면 감사하겠습니다. 그리고 두 번째는, 저희 전자재료 사업 부문에서 어떤 최근에 신규 소재 개발이 좀 진행되고 있는 게 있는지, 특히나 저희 이차전지 부문과의 시너지를 위해서 전지 관련 소재도 혹시 개발하시는 계획을, 가지고 계신지, 설명 부탁드리겠습니다. 감사합니다. Good morning, thank you for giving me this opportunity. I have two questions, my first question is related to solid-state batteries. As was explained, the preparation for the prototype production of all-solid-state batteries is on track for the second half of the year. What are the technical differentiation points of SDI and the status of consultation with customers? My second question is that, can you please elaborate on the status of new electronic materials development and whether there is any material development plan for synergy with the Battery Business Unit? Thank you. 네, 첫 번째 주신 질문. uh, SDI 전고체만의, 전고체 전지만의 기술적 차별화 포인트와 또 고객들과의 협의 진행 사항에 대한 질문이셨는데요. 그건 제가 답변드리겠습니다. 저는 손미카엘 부사장입니다. 앞서 말씀드렸듯이, 에, 전고체 개발 관련 일정은 계획대로 잘 진행되고 있습니다. 유월에 개발 시제품 생산을 시작으로, 하반기에는 고객향 샘플 생산을 시작해서 완성차 업체의 데모 차량에 탑재할 계획도 구체적으로 협의가 진행되고 있습니다. 당사의 전고체 전지는 겔 타입의 반고체 전해질이 아닌 완전 고체 전해질을 기반으로 최고의 안전성 확보를 추구하고 있습니다. 동시에 이온 전도도가 가장 높은 황화물계 기술을 채택하고, 니켈 함유량을 구십사퍼센트까지 늘린 NCA 양극재와 독자적인 실버 카본 음극 기술을 적용해서 업계 최고 수준인, 어, 구백 와트아워 퍼리터 이상의 에너지 밀도를 목표로 삼고 있습니다. 구체적인 고객명을 밝힐 수는 없지만, 현재 이천이십칠년 양산을 일정으로, 일정으로 한 신규 고객 과제를 확보하였고, 복수의 완성차 업체들과 협의를 진행 중에 있습니다.... Uh, twenty twenty-seven year 목표를 위해서 차질 없이 준비해서 미래 자동차 전지 기술을 선도해 나가도록 하겠습니다. 감사합니다. Let me provide you the first answer to your first question. Once again, I am Michael Son from the Automotive & ESS Battery, you asked a question about the technical differentiation points of SDI and the status of consultation with our customers. As mentioned earlier, the schedule for solid-state development is going as well as planned, starting with the production of development prototypes in June, we are working closely with our OEM customers to produce samples for them in the second half of the year and install them on their demo vehicles. Our solid-state battery is based on a fully solid electrolyte, not a gel type semi-solid electrolyte, pursuing the highest level of safety. At the same time, it adopts the sulfide-based technology with the highest ionic conductivity and applies the NCA cathode material with a nickel content of up to 94%. In our unique silicon carbon anode technology, aiming for an industry-leading energy density of more than 900 watt-hour per liter. I cannot reveal the names here, but I can tell you that we have secured new customer projects for mass production in 2027, and we are in talks with several other OEMs. We will continue to work diligently for our 2027 production target in order to lead the innovation of automotive battery technology. Thank you. I am Kim Sang Yoon, EVP for Electronic Materials, our business unit. I'll be providing you the answer to your second question. In the second half of this year, Green Host, a new platform product that started mass production from June, will be produced in earnest. Following the blue product for CIS Color Resist that entered mass production at the end of last year, green and red products, Polarizer Film for OLED, Tungsten Slurry, et cetera, are preparing to enter mass production. The new products that are being prepared to enter the market within next one to two years are QD Ink, with improved efficiency, FOCA material for foldable display with enhanced adhesion at high temperature and humidity, Green Prime Host for next generation platform, and EUV photoresist. Regarding the battery materials, besides the separators currently under mass production, we are also in development of key materials for solid-state batteries and CNT dispersion solutions to black box core technologies, and to stabilize SCM for next generation batteries. By discovering new materials continuously, we aim to expand our product portfolio and establish a solid foundation for the long-term growth of our Electronic Materials business. Thank you. The 다음 질문 받겠습니다. 다음으로 질문해 주실 분은 HSBC 증권의 조우영 님입니다. The following question will be presented by Woo Hyung- Jo from HSBC Securities. Please go ahead with your question. 안녕하세요. HSBC, Woo Hyung-jo입니다. 질문 기회 주셔서 감사합니다. 저는 LFP 관련한 거 하나, 고객사 관련한 거 하나, 질문 2개 드리고 있었습니다. 먼저 LFP 관련 질문인데요. 저희 SDI가 주로 프리미엄 전집 위주로 사업을 운영해 왔다 보니까, LFP 진출로 인해서 이제 프리미엄 전략이 좀 희석되는 게 아니냐라는 시장의 우려가 다소 있습니다. 이에 대한 회사 측의 입장이 좀 궁금하고요. 또 LFP 후발주자로서, 저희 차별화 전략이 어떻게 되는지 말씀해 주시면 감사하겠고요. 두 번째는 Rivian 관련한 질문입니다. 이 분기에 Rivian 차량 판매가 좋았는데요, 하반기 전망은 어떠신지 궁금하고요. Rivian이 LFP 전지 채택한다는 소식이 있는데요, 이로 인해서 저희 물량 감소 가능성은 없는지 설명 부탁드리겠습니다. 감사합니다. Good morning. My name is Jo Woo Hyung from HSBC. Thank you for giving me this opportunity to ask questions. I have two questions. One is related to LFP and the other is related to your customers. The first question, regarding SDI's entry into the EV LFP battery market, this is the question: What is SDI's position on the market concerns about dilution of its premium strategy? What is its differentiation strategy as a latecomer? My second question is related to Rivian. Rivian's sales were good in Q2, and what is the outlook for the second half? There's a news of Rivian adopting LFP. Is there a risk of SDI volume reduction? Thank you. Thank you once again. Michael Son from the Automotive and ESS Battery Business Unit, I'll be answering your question related to our entry into the EV LFP battery market, the market concerns about dilution of our premium strategy, as well as our differentiation strategy as a latecomer. Unlike before, when automakers had only a limited number of premium EV models, they are now launching various EV models for each segment, from entry, to volume, to premium, mirroring their existing range of cars with internal combustion engines. With such, a different segment of electric vehicles require different platforms for their automotive batteries. To meet the growing demand for volume and entry segments, we're actively developing NMX and LFP platforms. Despite the concerns of some, our product portfolio reflects our premium strategy, not our departure from it. We are endeavoring to secure wide portfolio of automotive batteries from the top premium solid-state battery based on NCA technology, to the NMX and LFP technologies that target the volume entry segment. By doing this, we can create more business opportunities and meet the varied needs of our customers. We may have entered the LFP market later than Chinese companies, but we have various advantages that set us apart from our competitors. Our manufacturing process and material technology, which we have developed from the existing ternary system, enable us to offer high energy density, quality, uniformity, and local operation experience in the LFP market. Thank you. Uh, I'm Jae-young Lee, EVP, from the Small Battery, I'll be answering your question related to Rivian. Rivian delivered more vehicles than expected in Q2, is on track with its production plan. We are confident that our sales will keep growing as planned in the rest of the year. We are currently supplying batteries for premium models with long driving range among Rivian models, we are also developing new products with a focus on increasing energy density for driving range improvement. On the other hand, LFP is being considered for mounting on vehicles with short driving range, we think that the impact of our sales will be limited. The following question will be presented by Yong-j in Jeong from Shinhan Investment & Securities. Please go ahead with your question. 네, 안녕하세요? 신한증권 정영진입니다. 아, 저도 질문 두 가지 드리고 싶은데요. 첫 번째로는 LFP 관련해서 추가 질문 하나 드리고 싶고요. 두 번째로는 소형 전기에서 이제 전동공구 쪽 질문 드리려고 합니다. 아, 방금, 어, XEV 관련해서 LFP나 M3 쪽으로의 대응을 어떻게 하실지 좀 폭넓게 설명을 해 주셨는데, 최근에 또 LFP가 ESS 관련된 대응이나 수요가 굉장히 빠르게 커지고 있는 것 같아서요. 저희는 그러면 이제 ESS 시장에서도 LFP 대응을 같이 하시게 되실지, 이 부분도 함께 업데이트 해 주시면 좋을 것 같고요. 두 번째로 소형 전지 쪽이 이번 분기 실적이 조금 개선이 됐습니다만, 그 전동공구 수요는 아직 저희가 예상했던 것보다는 좀 약한 것 같습니다. 그래서 전동공구 수요가 하반기 때는 어느 정도 회복될 거라고 보시는지 하고, 저희 이제 소형 전지 쪽 실적에 어떻게 연동될지도 같이 업데이트 해 주시면 좋을 것 같습니다. Thank you and good morning. My name is Jeong Yong-j in from Shinhan Securities. I also have two questions. One question is a follow-up question on related to LFP, and the second question is related to power tool of business. For ESS, since the penetration rate of LFP in the utility market has increased quite significantly, and I hope that I wonder if you can provide us with the update related to this situation? I would also like to ask what SDI's ESS business strategy is. My second question, as I said, is related to a power tool. You have made improvements in your small battery related businesses. It seems that power tool demand did not really noticeably rebound in the first half of the year. I wonder what your outlook is for the power tool business in the second half? 그 첫 번째 질문, ESS의 전용용 시장 내에서 LFP 침투율 증가에 따른 SDI의 ESS 사업 전략이 어떤가에 대한 질문이셨습니다. 이거는 제가 답변드리겠습니다. 저는 Michael Son Executive Vice President입니다. ESS 시장에서 LFP의 침투율이 증가하는 것은 사실입니다. 당사는 현재 ternary system의 고출력과 고에너지 밀도 장점을 활용할 수 있는 시장에 적극 대응하여서 매출과 수익 성장을 추진하고 있습니다. 특히 전용용 ESS 시장에서는 상업용 등 에너지 밀도가 중요하고, 높은 수준의 품질 및 성능을 요구하는 수요가 여전히 높기 때문에, 당사는 하반기에 신규 제품을 출시하여 적극적으로 대응할 것입니다. 현재 당사가 높은 MS를 보유하고 있는 UPS 시장은 제한적인 공간에서 높은 출력의 성능을 요구하는 고객의 니즈가 더욱 강해져서, 당사는 출력을 한층 더 강화한 신제품을 준비해서 시장 지배력을 강화할 계획입니다. 당사는 지속적으로 확대되는 LFP 수요에 대응하기 위해서 LFP 플랫폼을 적극 개발하고 있으며, 앞서 말씀드린 당사 고유의 기술력을 기반으로 대형 셀 제품을 준비해서 중장기 ESS 사업을 강화해 나가려고 합니다. 감사합니다. Once again, this is Michael Son, from Automotive & ESS Battery. I believe your question is related to the penetration rate of LFP in the utility market and SDI's ESS business strategy. It is true that LFP's penetration rate in the ESS market is rising. We are actively responding to the market, where we can utilize high power and high energy density advantages of the ternary system in pursuing sales and profit growth. Especially in the utility market, there is still a high demand for higher energy density, quality and performance, such as in commercial use. We will actively respond by launching new products in the second half of the year. In the UPS market, where we have a high market share, the needs of customers who require higher output performance in a limited space are getting stronger. We are preparing new products with enhanced output to strengthen our market dominance. Meanwhile, we are actively developing the LFP platform to respond to the continuously expanding LFP demand. We will strengthen our mid and long-term ESS business by developing large cell products based on our unique technology that we mentioned earlier. Thank you. 전동공구 수요 관련해서는 제가 답변드리겠습니다. 소형전지 사업부 이재용 부사장입니다. 전동공구 수요를 선행하는 미국 주택시장 지표는 반등하고 있으나, 높은 모기지 금리로 인해 주택시장 회복은 다소 지연될 것으로 전망됨에 따라, 하반기에 전동공구 수요의 의미 있는 반등은 어려울 것으로 보입니다. 예년 대비 부진한 시장 환경이지만, 당사는 주요 고객들과 장기 공급 계약 등을 바탕으로 하반기 공급 물량을 조기 확정하였고, OP 등 신규 어플리케이션 향 판매 확대로 시장 수요 두- 둔화 영향을 최소화할 계획입니다. 또한, 하반기 수요 증가가 예상되는 EV, E- バ イ ク 등 모빌리티용 확판 및 E-스쿠터 관련 신규 비호 확보 등을 통해 원형 전체로는 매출 성장이 지속될 수 있도록 노력하겠습니다. I'm Jae-young Lee, EBP from a Small Battery Business Unit, I'll be answering your question related to power tools. Although the U.S. housing market index, which precedes the power tool demand, is rebounding, the recovery of the housing market is expected to be somewhat delayed due to high mortgage rates. It seems difficult to see a meaningful rebound in power tool demand in the second half of the year. Although the market environment is sluggish compared to previous years, we have readily secured the supply volume for the second half of the year based on long-term supply contracts with our major customers. We plan to minimize the impact of market demand slowdown by expanding sales to new applications such as OPE. We will try to achieve continuous sales growth for the cylindrical battery as a whole by securing new business opportunities for e-scooter, as well as by expanding sales for mobility products such as EV and e-bike, which will see demand hike in the second half of the year. The last question will be presented by Anna Lee from Yuanta Securities. Please go ahead with your question. Thank you for giving me this opportunity. My name is Ian Na from Yuanta Securities. I also have two questions. My first question is this: The electronic materials business's performance in the first half of the year was weaker than last year. How much recovery do you anticipate in the second half of the year? My second question is related to micro mobility. What is SDI's sales strategy, as the demand for micro-mobility is expected to increase significantly in the future? I'm Kim Sang-kyun, EBP for Electronic Materials business, and I'll be providing you the answer to my first question. In the first half of the year, the electronic materials business faced difficulties due to the slowdown in demand for various industries, such as semiconductors and displays, caused by the economic downturn. From the second half of the year, the performance of electronic materials is expected to improve, thanks to the normalization of inventory levels of customers and to the effect of launch of new products, and et cetera. For each material, Polarizer Film is expected to continue to witness improvement both in sales and profitability every quarter after having hit bottom in Q1, thanks to normalization of inventory of major customers and the recovery of large area TV demand from North America, Western Europe and China. For OLED materials, we plan to expand the sales of Green Host, our product for the flagship smartphone panel of our major customers, which will be launched soon. For semiconductor materials, we'll introduce new products such as W Slurry, Thick SOH, and High Heat Dissipation EMC. With these plans, the electronic materials business will endeavor to enhance both revenue and profitability Y-o-Y, as well as compared to the first half of the year. micro mobility. 현재로서는 e-bike 시장 규모가 더 크지만, e-scooter 시장이 인도, 인도네시아 등 동남, 동서남아시아 국가들의 보조금 정책에 힘입어 글로벌 연평균 30% 수준의 높은 성장세를 보이며, 2-3년 내에는 시장 규모도 e-bike를 넘어설 것으로 예상됩니다. 각 어플리케이션별로 요구되는 전지 특성이 다른데, e-bike용은 컴팩트한 디자인 확보를 위한 에너지 밀도 성능이 중요하고, 최근 배달, 물류용 등 무거운 짐을 실어야 하는 용도로도 확대되며, 출력 성능 역시 요구되고 있습니다. e-scooter용은 상대적으로 탑재 공간의 여유가 있고, 기존의 엔진 기반 스쿠터 수요를 전환하기 위해 원가 경쟁력이 상대적으로 더 요구되는 상황입니다. 당사는 각각의 특성에 맞는 전용셀을 개발하여 e-bike향은 지속적인 판매 확대를 추진하고, e-scooter는 동서남아시아 현지 영업 거점 및 조직을 준비해서 하반기부터 적극적인 BO 발굴 활동을 통해 중장기 성장성을 확보하도록 하겠습니다. This is EVP Jae-young Lee, representing Small Battery Business, and I'll be providing you the answer related to your question on micro mobility. According to market research agencies, the micro-mobility LIB market is expected to grow an annual rate of about 20% until 2030, mainly focusing on e-bike and e-scooter. Currently, the e-bike market size is bigger, but the e-scooter market is showing a high growth rate of 30% CAGR at the global level, driven by the subsidy policies of East and Southwest Asian countries such as India and Indonesia. It is expected that the market size of e-scooter will surpass that of e-bike within two or three years. The characteristics of the battery required for each application are different. For e-bike, energy density performance is important to secure a compact design, and output performance is also required as it is expanding to applications that need to carry heavy loads, such as delivery and logistics. For e-scooter, there is a relatively more space for mounting, and stronger cost competitiveness is required to observe the existing combustion engine-based scooter demand. We have developed dedicated cells that suit the characteristics of each application, and we will continue to expand sales for e-bike. Moreover, we will have local sales bases and organizations set for e-scooter in East and Southwest Asia to secure mid to long-term growth through active business opportunity exploration activities from the second half of the year. Thank you.