Good morning, and good evening. Thank you very much for joining this earnings conference call. We will now start the fiscal year 2023 fourth quarter earnings conference call of Samsung SDI. The conference call will start with a presentation by the company, followed by a Q&A session with the attending analysts. If you have a question, please press star one, that's star one on your phone. We will now start the presentation of Samsung SDI. Good morning, and thank you for joining us today. I'm Yoontae Kim, Vice President of Business Management Office at Samsung SDI. First joining us are our CFO, Jong-sung Kim, EVP Jong-sun Park, representing Automotive and ESS Battery, EVP Hanjae Cho for Small Battery, and VP Kyungho Yoon for Electronic Materials. We will now begin the earnings call for the fourth quarter of 2023. First off, our Q4 results and financial highlights. The Q4 revenue was KRW 5.6 trillion, down 6% quarter-over-quarter, and 7% year-over-year. The operating profit stood at KRW 312 billion, down 37% sequentially, with 5.6% operating margin. Comparing on year-over-year basis, the total operating profit declined 37% due to decreased sales volume in small batteries and ESS batteries. Meanwhile, hoisted by high-value P5 products, the EV battery portion of sales went up 20% year-over-year, yielding operating profit growth. Looking at each business segment, the battery business posted KRW 5.0 trillion in revenue, down 6% both quarterly and yearly. The operating profit was KRW 226 billion, declining 45% QOQ and 37% year-over-year. The revenue for the electronic materials business fell 7% QOQ, 9% year-over-year to KRW 567 billion, impacted by the slowing polarizer film demand. The operating profit was KRW 86 billion, 2% QOQ increase, thanks to robust sales of high-value products, but 35% year-over-year decrease. The pre-tax profit was reported at KRW 581 billion, with KRW 269 billion non-operating profit, such as profit and loss using the equity method. The net profit was KRW 493 billion. The quarter and total assets rose KRW 492 billion from the preceding quarter to KRW 34.4 trillion. The liabilities decreased KRW 191 billion sequentially to KRW 14.1 trillion, while the equity increased KRW 683 billion to KRW 19.9 trillion, with the debt to equity ratio at 71%. Next, CFO Jong-sung Kim will share the company's business highlights in 2023 and business outlooks of 2024. Hello, this is Jong-sung Kim, the CFO of Samsung SDI. Although 2023 was marred by market demand slowdown induced by high interest rates and inflation, along with geopolitical risks instigating global economic recession, for Samsung SDI, it was a year of strong execution for the goal of becoming a global top-tier company by 2030. Result-wise, our revenue grew 13% year-over-year, but the overall results fell short of the mark, with the operating profit decreasing year-over-year due to weak performances of small battery and electronic material divisions. With the EV battery business, our key focus area, however, we managed to continue growth in revenue and improvement in profitability as we ramped up new Hungary lines ahead of schedule and expanded sales of P5 cells and small batteries for EVs. Through such, the business recorded year-over-year growth of thirty-eight percent in revenue and ninety-three percent in operating profit, contributing to its continuous growth. Besides, our preparations for the future went on as planned. We solidified our presence in the U.S. market with the new JV MOU with GM and second plant JV with Stellantis. Our supply agreement with Hyundai Motors and its commitment to expand collaboration with Volvo were results of our drive to secure the ground for sustained growth. As for all-solid-state battery, with the aim of commercialization in 2027, we began producing demo cells after completing the S-L ine and formed an ASB commercialization team, with the Electronic Materials division getting into ASB material business in earnest. Samsung SDI's global R&D network continued to build on with a new R&D center in Shanghai, following those in Europe and the U.S., raising the appeal to top talent around the world. We also boosted patenting to enhance our R&D competence. Key ESG activities include joining Global Battery Alliance in March for establishing a sustainable battery value chain and receiving the best rating in Supply Chain Co- Prosperity Assessment by Korea's Commission for Corporate Partnership, the first time in 12 years of being assessed. Although we managed to come out of difficult situations in 2023 with meaningful results, we face yet another challenging year. We expect demand recovery timing to be later than initial expectation in the markets of power tools, semiconductors, and display. The EV market, which has been pacing at a high growth rate so far, is set to undergo a temporary stagnated state while crossing the chasm under the shadows of prolonged global economic recession. However dire the situation may be, in 2024, Samsung SDI stands steadfast in preparing for a quantum leap in the regrowth phase to come after crossing that market stagnation by materializing super gap technology, cost innovation, and customer base enlargement. For super gap technological competitiveness, we plan to accelerate commercialization and mass production of all-solid-state battery, a game changer for our future EV market. We leverage this to bring us leaderships in next generation products and technologies. We also continue enhancing our edge in battery materials technology by setting up mass production system of such, including ASB materials. Also, to strengthen competitiveness in IT use pouch battery, where we lagged behind recently, we plan to increase investment in it, such as expansion of dedicated development line. To drive cost innovation in the face of growing price competition in the EV market and increasing share of low-cost batteries in the ESS market, we will work to ensure that Samsung SDI has the world's best cost competence in those markets. Most of all, the focus will be on improving profit via cost innovation in upcoming battery and material products, while expanding clientele and entering new markets. Last but not least, we will continue expanding new customer base, as well as strengthening strategic partnerships with our own existing customers to be well prepared for the future. The electronic materials business will expand its product portfolio by commercializing new products such as EUV semiconductor materials and OLED polarizer film. To add to that end, in 2024, we strive to rise above in terms of both revenue and profitability in all divisions' unified efforts on the three core strategies of super gap technology, core competitiveness, cost innovation, and customer base enlargement. Lastly, in a bid to firm up our footing for sustainable growth, we will boost our ESG management by executing the eight strategic tasks for environment management, aligning our business with EU's battery regulations, calculating scope three emissions, and setting a reduction target, and expanding the supply chain engagement in the ESG practice for our sustainable growth to be ensured. Thank you. Now, each business unit will present the details of 2023 Q4 results and 2024 Q1 and annual outlooks. Good morning, this is Jong-sun Park, Head of the Automotive and ESS Battery Strategic Marketing Team. In Q4, the overall revenue remained on par with the last quarter. EV battery portion reported revenue uptake with expanded sales of P5 for premium EVs, whereas ESS battery revenue fell due to softer sales and utility solutions. Profitability went down due to decreased raw materials prices, causing short-term effect on profit and loss. In Q1, EV battery business plans to begin full-fledged production of high-capacity P6 product for a major customer and expand sales and enhance profitability while actively seeking new order wins. With ESS batteries, we will focus on sales of Samsung Battery Box, a total ESS battery solution built with enhanced energy density and safety. As for the market outlook for 2024, the EV battery market is projected to reach $185 billion in value, 18% growth year-over-year. Amid the forecast of being muted due to persisting high interest rates and global recession, the market growth will gradually recover from the second half, with low interest rate effect kicking in. We anticipate that green policies, such as U.S. IRA and EU's strengthened the CO2 regulation in 2025, will propel demand to continue meaningful mid- to long-term growth in the regions. Drawing on this prospect, we will enhance the revenue and profit by increasing sales of high-value products, P5 and P6, with next-generation platform projects, and prepare for the start of production in the U.S. with no delay. Next, the ESS battery market is anticipated to reach $26 billion, up 18% year-over-year. Along with continued growth of North America, Europe, and China markets, we expect new booming demand in Korea and South America, with strong policy push for ESS industry. We will expand order wins with Samsung Battery Box's new product appeal, and prepare an LFP product that can accommodate the market's demand for affordable batteries. This is the end of Automotive and ESS Battery Division's presentation. Thank you. Good morning. I am Hanjae Cho, Head of the Small Battery Strategy Marketing team. Q4 revenue and profitability went down due to delayed recovery of power tool, micro-mobility, and IT product demand, on top of increased market inventory level. With Q1 being a seasonally weak period, we expect sales to decrease. To tackle this, we'll secure new applications and customers, such as the e-scooter demand in Southeast and West Asia regions, where electrification is pushing the demand. With 46-series project, we are committed to meeting customer milestones and pursuing new project wins. We expect pouch sales to increase with the launch of new flagship smartphone models of our major customer. Next, the market outlook for 2024. This year, the small battery market is expected to grow 3% year-over-year to $44 billion in size. By application, we forecast power tool demand to stagnate overall, while demand for professional use grows with increased product variation and rising electrification, fostered by strengthened environmental regulations. We expect mobility market to meet tailwind, with increasing cylindrical adoption to EVs and widening e-scooter demand in Southeast and West Asia. Under the base effect, key IT product demand is likely to increase year-over-year, with widening demand for smartphone batteries, mainly on flagship models. We'll make efforts to discover new business opportunities in growing sectors of new applications and micro-mobility, and gain the edge in the market by timely developing new cylindrical and pouch battery products. This is the end of Small Batteries Division's presentation. Thank you. Good morning, I am Kyungho Yoon, Head of Electronic Materials Strategy Marketing Team. We closed Q4 with lower revenue versus the prior quarter, but with profits slightly bettered by the increased sales of high-value OLED and semiconductor materials. OLED material sales expanded with the mass production of new platforms for Chinese customers, and semiconductor materials reported better revenue and profit, thanks to recovering demand and new product application. Polarizer Film revenue, however, declined due to panel production cuts under sluggish demand. In Q1, weak seasonality is set to negatively affect sales of OLED materials and polarizer films, whereas the semiconductor materials will likely see sales growth, thanks to recovering market demand and expanding product sales. Now let me go over 2024 market outlook. We expect to see optimistic demand, mainly from high-value materials, such as big screen LCD TV panels, mobile OLED panels, and semiconductor materials. In display market, we expect LCD TV panel demand to be similar to the last year's level, while over 65-inch big panels enjoy surging demand. Mobile panel demand is forecast to keep growing, centering on OLED. In semiconductor market, DRAM market is normalizing and foundry demand is increasing due to AI demand growth, raising wafer inputs of our customer. We will stay committed to improving both revenue and profit by expanding supply of high-value products, like big-sized polarizer film and G-Host, diversifying customer for portfolio, and timely putting forward materials for new products with high functionality, such as EUV inorganic photoresist. Thank you. Before going into the Q&A session, I would like to address our shareholder return policy. In January 2022, Samsung SDI disclosed the shareholder return policy for the three-year term that pays a base dividend of 1,000 KRW, with additional 5%-10% of the annual free cash flows. In 2023, we posted a loss in free cash flows due to large-scale CapEx. In light of this, our 2023 annual payout consists only of base dividend. Total payouts will be KRW 66.9 billion, with 1,000 KRW common dividend and 1,051 KRW preferred dividend per share. The payout will be made upon final approval of the shareholders meeting. Now, we will 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. 지금부터 질의응답을 시작하겠습니다. 질문을 하실 분은 전화기 버튼의 별표와 일번을 눌러주시기 바랍니다. 질문을 취소하시려면 별표와 이번을 눌러주시면 됩니다. 원활한 회의 진행을 위하여 질문은 한 분당 두 가지 이내로 부탁드립니다. 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 for each participant. 처음으로 질문해 주실 분은 HSBC 증권의 조우형 님입니다. The first question will be provided by Woo Hyun Cho from HSBC Securities. Please go ahead with your question. 네, 안녕하세요. HSBC 조우형입니다. 질문 기회 감사드립니다. 저는 그 전기차 배터리 수요 및 신규 수주 관련해서 각각 하나씩 질문이 있는데요. 먼저 전기차 수요 성장세 둔화에 대한 우려가 높아지고 있습니다. SDI의 2024년, 전기차 수요 전망, 그리고 이에 대한 전략은 무엇인지 공유해 주시면 감사하겠습니다. 두 번째는 그 저희가 작년에 GM 그리고 현대차 그룹에서 대규모 신규 수주를 받았었는데요. 그럼 올해 신규 수주액, 그리고 예상 규모는 어느 정도 되는지 말씀해 주시면 도움이 될 것 같습니다. 감사합니다. I have two questions regarding your EV battery business. Number one is, as you would know, there is increasing concern in the market about the slowdown of EV demand. In that context, can you give us your outlook for EV demand this year in 2024 and in your strategy in response? Second question is about your new order, new contract plans this year. Last year you had some significant wins, such as, orders from GM and the Hyundai Motor Group. What kind of order plans do you have this year? And what kind of size do you expect? 예, 최근 시장에서 글로벌 경기 침체와 더불어 이른바 캐즘 현상에 의해서 전기차 성장세 둔화가 우려되고 있는 것은 사실입니다. 즉, 전기차의 시장 침투율이 일정 수준에 도달하면 본격적인 성장 구간에 들어가기 전까지 성장세가 일시적으로 둔화되는 것으로 보는 시각들이 많이 있습니다. 그러나 모든 글로벌 시장의 수요 성장세가 둔화된다고 보기는 어렵고, 주요 조사기관에 따르면 상대적으로 전기차 침투율이 낮았던 북미는 IRA 정책 수요로 인해 전년보다 크게 증가한 연간 50% 이상의 성장률을 보일 것으로 전망되고 있습니다. 전기차 침투율이 상대적으로 높은 유럽은 단기적으로 성장세가 둔화될 것으로 예상되나, 2025년부터 CO2 규제 강화가 예정되어 있어서 이를 준비하는 모든 OEM들의 전동화 가속화 전략 하에 올해 하반기부터는 성장세가 회복될 것으로 전망하고 있습니다. 중장기적으로는 미주, 유럽 주요 국가의 친환경 정책이 지속되며, 전기차 시장은 지속적으로 큰 폭의 성장세를 이어갈 것으로 보고 있습니다. 올해 장사는 단기적인 수요 둔화 상황에서도 상대적으로 수요가 견조할 것으로 예상되는 프리미엄 모델 향으로 기존의 P5와 함께 P6를 신규 공급하여 고부하 비중을 확대하고, 매출 증가 및 수익성 개선을 적극적으로 추진할 계획입니다. 또한 동시에 2025년 이후에 본격적인 수요 성장을 대비해서 미신규 거점 가동을 차질없이 준비하고, 시장의 니즈에 대응 가능한 로우코스트 플랫폼 제품도 적극 수주하여 지속적인 성장을 준비해 나가도록 하겠습니다. We are aware of recent concerns in the market over the leveling off of the EV growth rate, driven by global economic slowdown and the so-called Chasm phenomenon. Now, according to the Chasm phenomenon, after reaching a certain level of market penetration, EV growth rate is expected to temporarily decrease at least until the market enters the next mainstream growth phase. Now, despite this theory, demand growth is unlikely to slow down across all global markets. According to third party market research firms, North America, which has a relatively low EV penetration rate, is expected to show an annual growth rate of over 50%, which is much higher than that of last year, thanks to the benefit of IRA. In Europe, where EV penetration is relatively higher, growth rates may decrease near term, but then stricter CO2 regulations are scheduled to be introduced from 2025, and OEMs have accelerated their electrification strategies in preparation of these new regulations, which is expected to turn around growth rates from at least second half of this year. In the mid to long term, the EV market is expected to continue strong growth, supported by environment friendly policies maintained by key countries in both North America and Europe. Despite the near term demand slowdown this year, we are aiming to increase revenue and improve profitability by focusing on batteries for the premium EV models, where demand is expected to be relatively more solid. Specifically, for the premium EV models, in addition to the existing P5, we will start supply of P6 to increase the share of the high value products. This year, we will also focus on preparing for the operation of our new U.S. production site in time to capture the demand growth expected from 2025 and after. At the same time, we will also focus on winning new orders in the low-cost platform products that can meet market needs to drive our continuous growth. Your second question was about our outlook for new orders this year. Looking back in 2023, by acquiring new customers, including GM and Hyundai, and diversifying our customer base, which had been more European focused, Samsung SDI was last year able to create a foundation for stable growth over the mid to long term. Now, this year, in 2024, we are planning to add on, of course, new customers and also win orders across various segments and form factors. We will focus on winning new contracts, not only with our premium products, which has been our traditional strength, but also for the volume and entry segment vehicles through cost innovation and enhanced cost competitiveness. In terms of form factor, we're currently pursuing contract opportunities in both the prismatic P6 and cylindrical 46-phi. While it is difficult to disclose specific size of opportunities at this point, we will communicate with the market once details have been worked out with our customers. The following question will be presented by Sun-woo Lee from Macquarie Securities. Please go ahead with your question. main tasks that this commercialization promotion team is planning for this year in order for SDI to successfully mass-produce all-solid-state batteries? And after the business success, I am curious about how much you forecast the market size and SDI revenue size to be. And the next question is related to electronic materials. I understand that the electronic materials division is developing battery-related materials. Could you please explain the current progress and the future forecast for SDI revenue size? Thank you. I have two questions. The first question is about your all-solid-state battery business. I've heard that you have newly established the all-solid-state battery commercialization team. First of all, in order to successfully mass achieve commercialization of all-solid-state on time, what are some of the key tasks that you need to work on and succeed this year? Also, what kind of market size do you expect to see from all-solid-state batteries, and what kind of revenue are you expecting to record? Second question is about your electronic materials business. I know that the electronic materials division is also developing battery-related material. What kind of development is it engaged in? Can you give us some updates? And also what kind of revenue we can expect from your battery materials development? Yes, Jong-sun Park, Automotive and ESS Battery Marketing. If I answer your first question, now, in order to achieve mass production capabilities of all-solid-state batteries on time, the most critical task for us this year would be, number one, to secure the mass production performance for key materials, and number two, to develop the electrode technology for higher battery capacity. Also, samples that were produced at our S Line during the fourth quarter of last year have already been delivered to our customers. Customers will be coming back to us with results of the basic performance and life cycle tests they are currently running in a sequential manner, and through this process, we will be able to upgrade the performance of our all-solid-state batteries at an earlier stage. While it is difficult to exactly focus the size of the all-solid-state battery market until, for example, 2030, we will focus on using our unique technology leadership to create and lead the market. Yes, This is Kyungho Yoon of the Electronic Materials Marketing, and I'll take the second question you had about our development of battery materials. In addition to the separator, which is already in mass production, SEI has been developing a high conductivity CNT dispersion liquid for cathode that can increase battery capacity and also power performance. Our target is to build the M Line during the first half of this year. We're also working on black boxing and stabilizing the SCM of the all-solid-state batteries core technologies, scheduled to be mass produced in 2027. Now, for this purpose, we have already completed deployment of the pilot line for the key materials in the second half of last year, and we're currently preparing for mass production. The development of the battery materials will diversify our product portfolio and also create new synergies with the battery division. The following question will be presented by Yong Jin Jeong from Shinhan Securities. Please go ahead with your question. Next, Shinhan, Jeong Jin. I have two questions. The first question is about your mid-to-large size battery, the new product P6, that you've mentioned. This year, what kind of contribution do you think the P6 will have on your top and bottom line? I'm asking this question because I recall when your P5 was launched, that had actually a very positive impact on the profitability of your auto and mid-to-large size battery business. Can we expect something similar from the P6 launch this year? Second question is about the small size cylindrical. During the presentation, you mentioned you're expecting that market to somewhat improve this year, but because of the declining market situation, the performance of the small size cylindrical has continued to decline. So what kind of market do you expect? When do you think the market will improve, and what do you think will be the trigger for that improvement? Yeah. This is Jongsun Park of the Automotive and ESS Battery Marketing. I'll take your first question, which was about the P6. P6 has an energy density that is about 10% higher compared to the P5, and is scheduled to start mass production from January for supply to U.S. and European customers. P6 revenue is not expected to be large in Q1 this year, but from Q2 onward, P6 is expected to make meaningful contribution to revenue, reaching double-digit share within our prismatic batteries revenue on a full year basis. In terms of profitability, once P6 starts meaningful mass production of scale from second quarter, it is expected to deliver similar profitability as P5 and positively contribute to the overall EV battery profitability. Pandemic 시기에 전동공구 판매가 급증하였고, 이에 따른 섹터 업체들의 전지 재고 선 확보가 이어지면서 전동공구용 전지 역시 호황을 누릴 수 있었습니다. 그러나 Pandemic 종료 이후 고금리 기조와 주택 경기 부진 영향으로 전동공구 수요 회복이 지연되고, 이는 주요 고객 재고의 증가로 이어져서 과거와 같은 수익성을 확보하기는 어려워진 부분이 있습니다. 시장 환경이 녹록치 않은 것은 사실이지만, 기존 제품에 대해서는 코스트 혁신을 추진하고, e-스쿠터 등 신규 어플리케이션에 대해서 신규 비즈니스를 발굴함과 동시에 시장의 니즈에 맞는 전동공구 및 EV용 신제품을 출시함으로써 시장을 선점할 수 있도록 하겠습니다. 또 향후 큰 폭의 수요가 확대되는 46-series 셀 신규 수주를 통해서 매출 성장 및 수익성 개선에 기여할 수 있도록 하겠습니다. This is Hanjae Cho of the Small Battery Marketing, and I'll take your second question, which was about our cylindrical batteries. Power tools were the main driver for the high profitability of the cylindrical batteries. As power tool sales jumped during the pandemic, power tool companies were eager to secure battery inventory, leading to a boom in batteries for power tool applications. However, the pandemic was followed by high interest rates and weak housing markets, which has delayed recovery of power tool demand and has increased inventory levels at key power tool customers. This is posing a challenge in achieving profitability as high as before. Now, while the market environment remains challenging, we will focus on cost innovation activities for our existing products and also acquire new business opportunities for new applications, including e-scooters. We will also launch new cylindrical battery products targeting power tools and EV applications that meet market needs to become a dominant player in these new markets. Also, going forward, we will focus on winning new orders for the 46-phi battery, the demand of which is expected to increase sharply, and this will also contribute to revenue growth and profitability. 네, 다음 질문 받도록 하겠습니다. 다음으로 질문해 주실 분은 하나증권의 김현수 님입니다. The following question will be presented by Hyun Su Kim from Hana Securities. Please go ahead with your question. 안녕하십니까? 하나증권 김현수입니다. 질문 기회 주셔서 감사합니다. 저는 정책과 수요 두 가지 여쭙고 싶습니다. 먼저 정책은, 그 IRA 법안에서 이 FEOC의 구체적인 가이드라인이 지난 12월에 발표되었는데요. 이와 관련돼서 SDI의 공급망 전략에도 변화가 필요하지는 않은지, 그리고 좀 더 이제 예상되시는 어려움들은 어떤 부분들이 있는지 말씀 부탁드리겠습니다. 그리고 두 번째는 전기차 수요 성장률이 조금씩 둔화되고 있는데, 그 과정에서 배터리 공급 과잉 우려도 있고요. 저희와 관련돼서 SDI의 작년, 2023년 라인 가동 상황은 어땠는지 하고, 그리고 올해 그 케파 증설 계획은 어떻게 되시는지 말씀 부탁드리겠습니다. 감사합니다. I have two questions. The first question is about the IRA. In last December, the DOE FEOC guidelines were announced as part of the IRA. Does this have any impact on the supply chain management, the SCM strategy of SDI? Do you need to change your CM strategy? Would there be any challenges in making these changes if necessary? Second question is about the overall EV demand growth leveling off, slowing down. There is concern that this may lead to an oversupply of battery. In that context, can you share with us your line utilization levels last year and whether you have additional capacity expansion plans this year? 네, 그 IRA FEOC 관련한 질문에 대해서는 제가 답변드리겠습니다. 경영지원실의 김윤태 상무입니다. 작년 12월에 미국 에너지부 DOE는 IRA FEOC 관련해서 신규 세부 지침을 발표를 통해서 FEOC 판단을 위한 구체적인 기준을 제시했고, 동시에 그 Transition Rule을 적용해 부가가치가 낮고 원산지 추적이 어려운 일부 핵심 광물에 대해서는 2년간 유예기간을 제공해 주었습니다. 그 다만, 그 제시된 기준만으로는 FEOC의 판단을 확정하기 어려운 부분이 있고, 또 그 Transition Rule 적용 대상 핵심 광물의 확정 등 당사 SCM 전략에 큰 변화가 필요한지에 대해 판단하기 위해서는 추가적으로 좀 확인이 필요한 부분들이 있습니다. 당사는 그래서 산업부와 연계해서 흑연에 대한 FEOC 적용 유예 요청을 포함한 당사의 의견 및 관련 질의를 제출한 상황이며, 당사뿐만 아니라 주요 완성차 업체들도 관련 요청서를 제출한 것으로 알고 있습니다. 당사의 구체적인 전략 방향은 회동, 해당 내용들이 확인된 이후에 말씀드릴 수 있을 것으로 전망하고 있습니다. 감사합니다. This is Yoon Tae Kim of the Finance and Accounting team. I'll take your first question about the IRA. As you mentioned, last December, the U.S. Department of Energy announced the detailed guidance on the IRA FEOC to present comprehensive standards for determining an FEOC. It also announced so-called transition rules, under which certain low value-add critical minerals that are difficult to trace would qualify for a two-year grace period. That said, even with the newly announced standard, some areas of FEOC determination still remains unclear, and the critical minerals that will qualify for the transition rule are not yet finalized. Therefore, additional information needs to be verified before we are able to conclude whether major changes are necessary to our SEM strategy. Working closely with the Korean Ministry of Trade, Industry and Energy, we have already submitted our opinion and inquiries to U.S. authorities, including a request for FEOC grace period for graphite. It appears that major auto OEMs have also submitted relevant request letters. So regarding our specific strategy direction, we hope to communicate that to the market after the relevant facts have been determined. Yeah, this is Jong-sun Park again, Automotive and ESS Battery Marketing. I'll take your second question about our EV battery line utilization last year and capacity plans this year. Given that many battery makers are currently in the process of adding new lines in anticipation of mid- to long-term EV demand growth forecasts, a near-term demand weakness, if it happens, may lead to oversupply. However, SDI has always maintained a policy of profitable and qualitative growth, and has insisted on timely capacity increase, backed by firm customer demand, speedy ramp up, and optimized line operation, resulting in high utilization rates. For example, Hungary, our main plant, has been maintaining utilization at around low- to mid-90s. This year, the focus will be on the on-track preparation of the new plant's capacity increase, for the full scale EV growth expected from 2025 and after, as well as maximizing the production efficiency of existing lines and maintaining high utilization rates, including the new lines in Hungary that started operation in the second half of last year, in order to maximize revenue growth and profitability. The last question will be presented by Chuljoong Kim from Mirae Asset Securities. Please go ahead with your question. underperform, if my memory is correct, at last quarter's earnings announcement it seems you emphasized the micro-mobility business a bit. So actually when pushing the business this year, this year now the status of business expansion promotion or alternatively, things about short-term or mid- to long-term demand, it would be good if you mention a bit. The second question is the electronic materials division. As you mentioned today too, the case like the polarizer film that accounted for most of our sales previously seems the situation is a bit not good now, I intend to ask about the new business side a bit. The things you are trialing new products this year in the OLED or semiconductor areas, or when those products are scheduled to enter mass production, if you share such a schedule I would appreciate it. Thank you. I have two questions. First question is about your small size battery. You've mentioned that your, in terms of EV batteries, your Hungary lines are maintaining a high level of utilization, but your small size batteries are facing difficulties and challenges. I recall that during the last conference call, you mentioned that the company will be focusing on opportunities in M or micro-mobility. Can you give us some updates of what kind of business opportunities you're seeing this year, and what kind of demand you're expecting from M mobility in the mid to short, near to mid-term? Second question is about the electronic materials business. Up till now, traditionally, the Polarizer Film has been the main contributor to your revenue. That product has been facing challenges recently. So in that context, what kind of new business opportunities are in the works, in OLED or semiconductor materials? What kind of new products are you trying out this year, and when do you expect to put them into mass production? This is Hanjae Cho of the Small Battery Market Team. I'll take your first question about our M, the micro mobility business. As of 2024, the micro mobility market is expected to be around $3.2 billion, which is similar to the size it had last year in 2023. However, within the micro mobility, the e-scooter market is expected to grow by around 17% year-over-year, thanks to the green subsidy policy in India and Indonesia. So in the mid- to long-term, e-scooter demand is expected to overtake e-bike by 2026 and grow into a market roughly four times the current size by 2030. So we will focus on capturing the new business opportunities for e-scooter and increase our market share by operating sales hubs in India and Southeast Asia, and expect expanding our long-life product lineup to contribute to revenue growth and profitability increase. This is Kyungho Yoon of the Electronic Materials Market Team, and I'll take your second question, which was about some new products we have in store this year. First, looking back last year in 2023, we completed development of the green-red photoresist for image sensors and successfully launched mass production of it. Also, the OLED Polarizer Film completed customer certification in late 2023 and is scheduled to start mass production this year. In 2024, we are preparing to start mass production of products that were delayed due to customer schedule changes, such as the tungsten slurry and the EUV photoresist, as well as a new item, which is a premium EMC for graphic DRAMs during the first half of this year. Also, in order to win opportunities in products newly adopting OLED, we are developing the G-host and P-dopant in line with customer schedules. So these new materials may not deliver a notable contribution to this year's revenue, but they are expected to be growth engines for the future of the electronic materials business. And that completes the earnings conference call for the fourth quarter 2023. If you have any additional questions, please forward them to our IR team. Thank you.