Now we will begin Samsung SDI's 2024 Q4 earnings call. Good morning, I'm Yoontae Kim, Executive Vice President of the Business Management Office at Samsung SDI. First, thank you for joining today's earnings call. And joining me are CFO Jong-sung Kim, EVP Jong-sung Park for Automotive and ESS Battery, EVP Hanjae Cho for Small Battery, and VP Ik-soo Kim for Electronic Materials. We will provide simultaneous interpretation for the earnings presentation and consecutive interpretation for the Q&A session. Now I will begin Samsung SDI's 2024 Q4 earnings call. First of all, please note that starting with the Q3 results, the profit or loss from discontinued operations is separately stated due to the decision to discontinue the polarizer film business, and today's presentation will also follow suit. I'll start with our Q4 and annual results for 2024. The Q4 revenue was KRW 3.8 trillion, down 5% QQ and 29% YOY due to slowing market demand. The operating profit reported a deficit of KRW 257 billion. Including results from discontinued operations, Q4 revenue was KRW 4.5 trillion, and operating profit posted a deficit of KRW 243 billion. Including profit under the equity market and impairment losses on tangible assets, pre-tax profit reported a deficit of KRW 347 billion. Annual revenue decreased by 23% YOY to KRW 16.6 trillion, and operating profit fell by 77% YOY to KRW 363 billion. Including results from discontinued operations, annual revenue was KRW 17.9 trillion, with operating profit at KRW 446 billion. Next is our 2024-4Q financial status. Assets increased by KRW 6.5 trillion to KRW 40.6 trillion due to CAPEX and EV batteries. Liabilities rose by KRW 4.9 trillion to KRW 19.2 trillion, driven by increased debt. R&D expenditure in 2024 was KRW 1.3 trillion, up roughly KRW 200 billion YOY. CAPEX totaled KRW 6.6 trillion. For key ratios of our financial status, please refer to our earnings presentation slide. Now, each business unit will present Q4 and annual results for 2024. First off, Q4 revenue for the battery business was KRW 3.6 trillion, down 3% YOQ and 29% YOY. For EV batteries, demand has slowed due to high interest rates and the reduction of EV subsidies in major countries, leading to inventory adjustments by major customers and a decrease in revenue. For power tool and micromobility batteries, revenue also declined, impacted by the sluggish housing market and weakened consumer purchasing power. On the other hand, revenue of ESS battery reached a record high due to increased sales of ESS and UPS, backed by growing power demand for data centers due to strong AI adoption in the US. Operating profit for the battery business in Q4 reported a deficit of KRW 268 billion, a significant drop QOQ due to lower utilization across all businesses except ESS batteries, increased fixed costs from new fab operation, and one-time costs such as inventory evaluation losses. Q4 revenue for the electronic materials was KRW 190 billion, down 28% QOQ and 31% YOY. Demand for semiconductor manufacturing materials grew with the increased input of memory semiconductor wafers. However, sales of display manufacturing materials decreased significantly due to seasonality. Operating profit for the electronic materials was KRW 11.6 billion, down 82% QOQ and 83% YOY. Taken together for the fiscal year of 2024, annual revenue for the battery was KRW 15.7 trillion, with operating profit at KRW 218 billion. Annual revenue for the electronic materials was KRW 901 billion, with operating profit at KRW 145 billion. Now, let me enumerate our 2024 business highlights. We successfully initiated early operation at the Stellantis joint venture, Star Plus Energy in the U.S., and quickly secured high yields. We also finalized a joint venture agreement with GM, laying the foundation for expanding EV business in the U.S. Furthermore, we secured approval for the U.S. Department of Energy, which helped alleviate financial burdens associated with large-scale investments. We also strengthened partnerships with key customers. We have successfully secured orders for premium prismatic batteries from major OEMs in Europe and Asia. Additionally, we are enhancing cooperation with multiple OEMs for 46-phi battery projects. Some of these products are already in the final stages of securing orders. We expanded partnerships with three major independent power producers, ESS IPP companies in the U.S. We were the first in entering into all flagship models for our major smartphone customers. In 2024, we saw a significant advancement in technology. We advanced all-solid-state battery sample stage and expanded the number of customers to five while internalizing key materials. We started mass production of P6, number one energy-dense premium prismatic battery in the industry, and also enhanced the safety and energy density of our new turnkey ESS solution, the new SBB 1.5, which has now entered mass production and supply. We also built a pilot line for LFP large cell. For major ESG achievements, we received CO2 footprint verification from Carbon Trust for our two additional products, cylindrical and prismatic cells. We also received platinum validation for zero waste to landfill at all domestic and overseas sites. Furthermore, our rating improved from A to A plus on 2024 ESG evaluation ratings conducted by KCGS, and we were also listed on Dow Jones Sustainability World Index for the 20th time. Next, the CFO will share 2025 forecast and business strategies. Good morning, this is Jong-sung Kim, Head of Business Management Office. Let's begin with the market forecast by business and strategies for 2025. First is the EV market forecast. 2025, the global EV market is expected to grow 21% YOY, led by the U.S. and Europe, overtaking the Chinese market in 2024. However, macro uncertainties remain high. In terms of policies, U.S. stronger against China spend and stricter E.U. carbon regulation presents opportunities. However, the potential reduction of EV-related subsidies and tax credit in the U.S., declining consumer purchasing power in the EU may delay the market recovery. Meanwhile, tighter global cost competition is expected as sales of volume and entry segment EVs and Chinese battery export expand. New battery cell manufacturing companies are likely to suffer due to stressed financial situation caused by delays in mass production. Next is the ESS market forecast. The U.S. will lead 14% of market growth due to growing demand for utilities and UPS, driven by the expansion of AI data centers. Especially, demand for Korean ESS batteries will increase due to China and U.S. geopolitical tension. As for the small battery market, excluding EVs, electric two-wheelers such as e-scooters are expected to grow around the Indian market. However, demand recovery on power tool and e-bike batteries will be delayed due to housing market slumps and weakened consumer purchasing power, leading to destocking. In the electronic materials market, stable growth is expected for semiconductors, driven by increased demand for high-value AI products. However, modest growth is expected for display materials, mainly led by Chinese panel manufacturers. Now, let's move on to the 2025 business strategies. As mentioned earlier, we expect a very challenging business environment this year. Under the core principle of select and focus, we aim to set the ground for sustainable growth through three key strategies: expanding sales and awards, tightening technical edge, and reforming fundamentals. First and foremost, to expand sales and awards, we'll promote optimized and personalized responses for each business customer. For EVs, we'll supply for more diverse EV trims and expand U.S. sales around Star Plus Energy. Also, we'll focus on winning LFP projects for the mid to long-term growth of volume and entry segment EV markets. For ESS, we'll secure ESS production capacity to the fullest to meet growing demand and maximize sales through the SBB 1.5 and high-value UPS products tailored for AI data centers. For small batteries, we'll expand sales with high-power new products, including power tool and battery backup units, and strengthen micromobility competitiveness with differentiated products such as those with extended lifespan. For electronic materials, we'll diversify our customer base by promoting our products to new semiconductor and display customers in China. Second, highlight heightening technological edge. For ASB, we will achieve the targeted energy density and complete mass production technology. We'll complete the development of next-generation premium prismatic battery P7 and thrust commercialization based on LFP platform for volume-zone EVs by elevating technological readiness. In small batteries, we'll launch ultra-high-power small batteries to secure orders for hybrid EVs and expand sales for outdoor power tool, preparing for long-term growth. Lastly, reforming fundamentals. To reform the fundamentals, we're implementing various initiatives to make profit amid challenging market circumstances. We are improving productivity of key products in Hungary and stabilizing Star Plus Energy through timely setup and ramp-up. We're also enhancing investment efficiency by utilizing old lines and equipment. Furthermore, we'll reduce costs by optimizing utilization-related resources, diversifying key materials, and simplifying the manufacturing process. The business environment of 2025 is expected to become more challenging. In times like this, we must return to our core values and continuously innovate and challenge ourselves. By doing so, we will fortify our management foundation and gear up for the upcoming super cycle. Thank you. To conclude the presentation, I'll discuss 2024 dividend and our shareholder return policy covering 2025 to 2027. We plan to pay out base dividend of KRW 1,001 for common dividend and KRW 1,051 for preferred dividend per share due to a loss in free cash flow in 2024. With the expiration of the existing shareholder return policy, we have reviewed the policy covering 2025 to 2027. No dividend will be paid for the next three years as free cash flow. The resource of dividend is projected to remain negative due to continuous sizable CAPEX for mid- to long-term growth. In light of this, we'll focus our resources on strengthening our growth engine. By improving business performance and securing future competitiveness, we'll strive to resume dividend payouts when we establish the next shareholder return policy. Next shareholder return policy will be re-established in 2028 by comprehensively considering business results, free cash flow, and investment plans, etc. Now, we'll 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 1번을 눌러주시기 바랍니다. 질문을 취소하시려면 별표와 2번을 눌러주시면 됩니다. 원활한 회의 진행을 위하여 질문은 한 분당 두 가지 이내로 부탁드립니다. Now, Q&A session will begin. Please press Star 1, that is Star and 1, if you have any questions. Questions will be taken according to the order you have pressed the number Star 1. For cancellation, please press Star 2, that is Star and 2 on your phone. In order to allow as many Q&A chances as possible within the restricted time, we would appreciate only two questions per each participant. 처음으로 질문해 주실 분은 HSBC 증권의 조우형 님입니다. The first question will be provided by Woojung Jo from HSBC Securities. Please go ahead with your question . 네, 안녕하세요. HSBC 조우형입니다. 질문 기회 감사드립니다. 저는 4분기 실적 관련해서 한 가지 질문 드리겠습니다. 앞서 4분기 실적에 일회성 비용이 반영되었다고 말씀 주셨는데요. 규모가 좀 커 보여서 상세 내용 설명해 주시면 감사하겠습니다. 그리고 이를 제외하면 수익성이 어느 정도 수준이었는지도 말씀 부탁드리겠습니다. 감사합니다. I have one question regarding your fourth quarter results. You mentioned during the presentation that there were some one-offs reflected in Q4. The size appears to be a bit large. Can you give us some details about the one-off? And also, what would the profitability be without the one-off? 일회성 비용에 대한 질문은 제가 답변 드리겠습니다. 저는 경영지원실의 김윤태 부사장입니다. 4분기 일회성 비용에는 일부 재고 자산에 대한 평가 감가, 품질 관련 충당금 등이 반영돼 있습니다. 상세한 내용은 말씀드리기 좀 어렵지만, 일회성 비용을 제외하면 자동차 전지 사업의 경우 로싱글 수준의 흑자를 기록할 거고요. 전사 손익도 소폭 흑자 수준이라고 말씀드리겠습니다. 이상입니다. This is EVP Yoontae Kim of Business Support, and I'll answer your question about one-off expenses in Q4. The Q4 one-off expense includes some inventory asset valuation impairment and also some quality-related provisioning. Even though it's difficult for us to go into the details, without the one-off expense, the EV battery business would be recording a low single-digit percentage profit, and company-level profit would also be slightly above break-even . 네, 다음 질문 받겠습니다. 다음으로 질문해 주실 분은 J.P. Morgan 증권의 권재현 님입니다. The following question will be presented by Jae-hyun Kwon from J.P. Morgan Securities. Please go ahead with your question. 네, 질문 기회 주셔서 감사합니다. 저는 두 가지 있는데, 첫 번째, 앞서 발표에서 저희 올해 시장 전망과 회사 전략 방향성 많이 말씀해 주셨는데, 실적 측면에서는 어떻게 전망하시는지 궁금합니다. 특히 이번 1분기와 연간 실적 전망 관련해서 말씀 부탁드리고, 두 번째는 작년에 여러 전방 시장 수요도 좀 위축됐고, 올해도 불확실성 지속된다고 수요 말씀해 주셨는데, 이에 따라 최근 OEM들과 배터리 업체들 투자 계획도 조정이 좀 있는 것 같습니다. 삼성 SDI에서도 저희 시설 투자 계획에 변화가 있는지 궁금합니다. 감사합니다. I have two questions. The first question is about first quarter and full year 2025 guidance. During the presentation, you gave us the market outlook and the company strategy direction. Can you give us a bit more detail about what you expect in terms of company performance? Second question, last year, the downstream demand continued to be sluggish. You mentioned that you are expecting continued uncertainty downstream this year, and we are seeing automotive OEMs as well as battery companies adjust their investment plans. Is SDI also planning any changes to its CapEx plan this year? 첫 번째 질문에 대해서 제가 말씀드리겠습니다. 김종성 부사장입니다. 앞서 시장 전망에서 말씀드렸듯이, 올해 전기차 시장은 성장하겠지만 정책적 불확실성이 매우 높은 상황이고, 전동 공구, 마이크로 모빌리티 시장은 수요 약세가 지속되고 있습니다. 이런 상황에서 주요 고객사들은 재고 조정을 우선 진행하고 있어서 단기간에 실적 회복은 쉽지 않아 보이지만, 그런 불확실성이 어느 정도 해소되고 재고 조정이 완료되는 하반기 정도는 개선될 거로 예상하고 있습니다. 한편, ESS와 전자 재료 사업의 경우 상대적으로 수요가 안정적인 상황으로, 1분기 계절적 비수기 영향을 제외하고는 분기별로 지속 성장세를 보일 것으로 전망하고 있습니다. 이를 종합해 볼 때, 올해 전사 실적은 1분기를 저점으로 2분기부터 점진적으로 개선될 것으로 보입니다. 올해 경영 여건이 쉽지 않은 상황이지만, 앞서 말씀드린 대로 고객과의 긴밀한 협의를 통해 매출과 수주 확대, 기술 경쟁력 강화, 사업 체질 개선 등을 통해 시황 변화에 따른 실적 영향을 최소화하고 미래 성장에 대한 준비도 확실하게 준비해 나가겠습니다. 이상입니다. This is CFO Jong-sung Kim, and I'll answer your first question. As mentioned as part of the market outlook this year, the EV market is expected to grow, but policy uncertainty is rather high, and demand in power tools and micromobility markets continue to remain muted. Under such circumstances, major customers are focusing on inventory adjustments, and therefore near-term recovery of business performance remains challenging. However, from the second half of this year, as policy uncertainty is somewhat resolved and inventory adjustments come to an end, we expect to see improvements. For the ESS and electronic material business, demand is relatively more stable, and we expect growth to continue quarter after quarter, except for the seasonally weak Q1. So overall, we expect company-level performance to gradually improve from Q2 after bottoming out in Q1. The business environment, once again this year, is not easy, but we will focus on minimizing the impact of market slowdown on our performance and patiently laying the foundation for future growth by expanding sales and project awards through close cooperation with customers, heightened technological edge, and also reformed business fundamentals. 예, 투자에 관한 질문을 하셨는데요. 제가 답변 드리겠습니다. 저는 경영지원실의 김윤태 부사장입니다. 전방 수요가 불확실성이 있고, 그래서 여러 업체들이 투자 계획을 좀 조정하고 있는데, 당사도 시장 상황을 고려해서 투자 계획을 재점검하고 있고, 전반적으로 보수적인 기조 하에 투자 계획을 조정을 하고 있습니다. 사업 및 거점별 상황에 따라 기존 라인을 활용해서 신규 라인 증설 비용을 좀 줄이거나 일부 투자는 시기를 조절하는 등 투자를 좀 효율화하는 작업을 진행하고 있고요. 이에 따라서 올해 CAPEX는 전년 대비 좀 감소할 것으로 전망을 하고 있습니다. 다만, 우리 미주의 GM과의 JV, 그리고 전고체 LFP 468 배터리와 같은 저희 미래 성장을 위한 투자에 대해서는 기존 일정에 차질 없도록 진행해 나갈 계획입니다. 감사합니다. This is EVP Yoontae Kim, and I'll answer your second question, which was about our investment plans this year. SDI is also revisiting its investment plan, taking into account the market situation, and is in the process of adjusting its investment plans with an overall conservative stance. The focus is on improving our investment efficiency, including using existing lines better to reduce the cost of new line expansions or adjusting the timing of some investments, depending on the project and the site. Accordingly, we expect this year's CapEx to decrease than last year. That said, we plan to execute investments necessary for future growth, including the US JV with GM, all solid batteries, LFP, and the 465, according to original schedules. 네, 다음 질문 받겠습니다. 다음으로 질문해 주실 분은 신한투자증권의 이진명 님입니다. The following question will be presented by Jin-myung Lee from Shinhan Securities. Please go ahead with your question . 네, 안녕하세요. 신한투자증권 이진명 연구원입니다. 먼저 질문 기회 주셔서 감사드리고요. 저는 두 가지 질문 드리도록 하겠습니다. 첫 번째 질문은 트럼프 행정부 출범 이후에 지금 미국 같은 경우는 정책 불확실성이 커진 상황인데, 일단 저희 올해 스텔란티스 JV 가동 관련해서 좀 계획이 어떻게 되신지, 그다음에 연간 AMPC 가이던스를 어느 정도 주실 수 있는지 말씀 부탁드리고요. 그다음에 두 번째 질문 같은 경우는 지금 ESS 관련해서도 특히나 미국 쪽 수요는 올해도 지금 좋을 것으로 예상이 되고 있는데, 사실 지금 저희 같은 경우도 ESS용 캐파 증설 계획이 있으신지랑, 그다음에 추가로 미국의 현재 지금 거점 확보에 대해서 어떻게 지금 계획하고 계신지 말씀해 주시면 감사하겠습니다. I have two questions. With the start of inauguration of the Trump government, there is continued policy uncertainty in the U.S., and I'm wondering what are your plans. Can you give us some updates on the Stellantis joint venture operation this year, and how much AMPC do you expect? Second question is related with ESS. The U.S. ESS market is expected to show another year of strong growth, driven by an increase in power demand, such as AI-related data centers. Does SDI have plans of increasing its ESS capacity, or also is it looking into securing local ESS capacity in the U.S.? 네, 이 두 가지 질문에 대해서는 제가 답변을 드리겠습니다. 저는 중대형 전략 마케팅 실장 박종성 부사장입니다. 스텔란티스 JV는 앞서 말씀드린 대로 당초 계획보다 양산 일정을 2개월이나 앞당겨서 작년 12월에 첫 번째 라인을 조기 가동하였습니다. 또한 업계에서 가장 빠른 램프업 기간을 거쳐 기존 양산 라인과 동일한 품질을 확보해서 풀 가동하고 있습니다. 올해는 순차적으로 증설하게 되는 추가 라인들도 적기 셋업하고 램프업을 통해서 조기에 안정화될 수 있도록 추진하겠습니다. 다만 여러 시장 상황 변동과 불확실성이 있어서 현재 고객과 연간 분량에 대해서는 논의 중인데, 구체적인 AMPC 규모를 말씀드리는 거는 좀 어려움이 있습니다. 양해를 부탁드리고요. 향후 고객과 협의가 완료되어 구체적인 전망이 가능한 시점에 시장과 소통하겠습니다. This is EVP Jong-sung Park of Automotive and ESS Battery. I'll answer both of your questions. The first question regarding the Stellantis joint venture. As mentioned earlier, the Stellantis joint venture actually started operation of its first line last December, which is two months ahead of its original schedule. It successfully executed the quickest ramp-up period in the industry and is in full operation at quality equal to existing mass production lines. Additional lines will be coming online in steps this year, and we will be focusing on on-time setup and ramp-up to stabilize the plant early on. Regarding the AMPC, given the various market changes and uncertainties, we are in discussion still with the customer over full year volume, and therefore it's difficult for us to disclose the specific size at this point. We will communicate with the market at a later time once customer discussions are completed and specific projections are available . 두 번째, ESS 캐파 증설 혹은 미주 현지 거점 확보 계획에 대해서는 저희 ESS는 높은 안전성과 차별화된 성능을 바탕으로 캐파의 90% 수준에 해당하는 수주를 이미 확보한 상황입니다. 이러한 가운데 말씀하신 대로 미주 지역의 ESS 수요는 AI 산업 및 신재생 에너지 확대로 향후에도 고성장세를 이어갈 것으로 전망됩니다. 당사는 이에 대응하기 위해서 생산 라인 효율 제고와 전기차용 라인의 ESS용 전원을 통해 작년 말 대비 20% 이상의 캐파 증량을 추진하고 있습니다. 캐파 증량과 함께 전력용의 경우 안전성과 에너지 밀도를 높여서 SBB 1.5 제품을 확판하고 대용량 LFP 셀을 탑재하고 주요 성능을 업그레이드한 SBB 2.0 제품을 출시해서 수주 확대에 집중할 계획입니다. UPS는 AI 데이터 센터에 특화된 독보적인 고출력과 장수명 기술을 기반으로 고부가 솔루션 강화를 통해 현재 80% 이상의 고출력 시장 내 점유율을 더욱 확대할 계획입니다. 또한 중장기 수요에 대응하기 위해서 현재 생산 거점도 검토 중입니다. 구체화되는 시점에 공유드릴 수 있도록 하겠습니다. Regarding your second question about our ESS capacity expansion plans and whether we're looking into local U.S. capacity, leveraging our outstanding safety and differentiated performance, our ESS order book is already corresponding to around 90% of our capacity, and U.S. ESS demand is expected to remain strong, driven by expansion of the AI industry and also renewable energy. We are working on increasing our capacity by at least 20% by enhancing the efficiency of our production lines and also converting EV battery lines for ESS. In addition to more capacity, we will focus on promotion of our SBB 1.5 with greater safety and energy density and the launch of the new SBB 2.0, which features large capacity LFP cells and major performance upgrades to drive new orders. On the UPS side, we will focus on further increasing our market share in the high power output market, where we already have more than 80% market share, by offering stronger high-end solutions based on our unparalleled high power output and long cycle life technology specialized for AI data centers. We're currently studying local production options to meet mid to long-term demand, and we will share details with the market when they become available. 네, 마지막으로 한 분만 더 질문을 받도록 하겠습니다. We'll take one last question. 마지막으로 질문해 주실 분은 SK증권의 박형우 님입니다. The last question will be presented by Hyung-woo Park from SK Securities. Please go ahead with your question. 네, 안녕하세요. SK증권 박형우입니다. 두 가지 질문 드리겠습니다. 먼저 전동 공구와 마이크로 모빌리티 수요 둔화로 원형 배터리 사업 실적이 크게 악화된 것 같은데, 향후 실적 개선을 위해 어떻게 대응해 나갈 계획이신지 원형 배터리 전략이 궁금합니다. 그리고 두 번째로는 전자 재료 사업에 대해서도 올해 2025년의 제품별 시장 전망과 회사의 대응 전략에 대해서 좀 더 구체적으로 설명해 주시면 감사하겠습니다. 이상입니다 . I have two questions. First of all, with the weak demand coming from power tools and micro mobility, it appears that the cylindrical battery business performance would also be negatively affected. I would like to hear some details about your strategy for the cylindrical battery business this year. Second question is about your electronic materials business. Can you give us a bit more detail for full year market outlook and your strategy for the electronic materials business by product? 저는 소형 사업부 전략 마케팅 팀장 조한재입니다. 첫 번째 질문, 원형 배터리 관련해서 제가 답변 드리겠습니다. 현재 미국 주택 경기 회복 지원과 유럽의 e-bike 관련 지원 예산 축소 등으로 전동 공구와 마이크로 모빌리티의 수요가 부진한 상황이고, 이에 따라 고객들의 재고 조정이 지속되고 있는 등 쉽지 않은 상황입니다. 하지만 저희는 고출력 신제품 출시를 통해서 전동 공구용으로 확판을 추진하고, 또 데이터 센터 증가에 따라서 수요가 성장하고 있는 BBU 시장에도 적극 대응하겠습니다. 또한 장수명 등 차별화 제품을 통해 최근 성장하고 있는 E2 휠 시장에 본격 진입할 수 있도록 하겠습니다. 한편으로는 중장기 성장을 위해서 초고출력 신제품을 출시하고 해서 OPE, 즉 아웃도어 전동 공구용 프로젝트 공급과 함께 하이브리드 전기차 프로젝트를 수주를 확보해 나갈 계획입니다. 이와 함께 올 1분기에 양산을 시작하는 468 배터리는 급속 충전, 수명 성능 등 더욱 강화하여 신규 전기차 프로젝트를 추가 확보해서 중장기 성장의 모멘텀을 만들어가는 전략입니다. This is Hanjae Cho of the Small Battery Business Unit. I'll answer your first question. With the delay in the recovery of the U.S. housing market and also European e-bike-related budget cuts, the demand for power tools and micro mobility has remained sluggish, and customers are continuing their inventory adjustments. Therefore, the situation is not easy, but we will launch new high power batteries to expand sales in power tools and actively take on the battery backup unit, the BBU market, where demand is growing with the increase of data centers. We will also increase our presence in the recently growing E2 wheeler market with differentiating products featuring longer cycle life. For mid to long-term growth, we plan to launch the new ultra high power products to supply outdoor power equipment projects and hybrid EV projects. The 46-series, which starts mass production in Q1, will offer better quick charging and cycle life performance and will be used to win new EV projects to build mid to long-term growth momentum. I will explain the outlook for the electronic materials market and our response strategy. I am Kim Ik-soo, Vice President of the Electronic Materials Business at Samsung SDI. 반도체 소재 시장은 AI 수요 견조로 메모리 출하량이 증가하면서 웨이퍼 투입량도 증가가 되고 안정된 성장을 보여줄 것으로 전망됩니다. 다만 중국 반도체 업체의 레가시 제품 생산 확대로 인한 공급 과잉, 모바일 PC용 반도체 재고 증가로 주요 반도체 업체가 생산을 조정할 가능성도 우려되고 있는 상황입니다. 당사는 D램, 낸드용 메탈 슬러리의 라인업을 강화하고 국내 주요 고객사들에게 확판할 예정이며, 높은 열 전도성 구현을 위한 충진재 및 촉매, 기 확보된 핵심 원료를 바탕으로 고박열 EMC 판매를 확대할 계획입니다. 또한 SOD, CISCR 등 중화 신규 고객에 대한 확판도 지속 추진할 계획을 가지고 있습니다. 디스플레이 소재 시장은 OLED 패널사 중심으로 작년 대비 소폭 성장이 예상되고, QD 디스플레이 시장은 게이밍용 모니터를 중심으로 성장 세가 유지될 것으로 전망하고 있습니다. 당사는 패널 수명과 효율을 향상시키는 그린호스트 신제품을 활용하여 국내, 해외 주요 고객사의 신규 플랫폼에 연속 진입하고, 중화 고객사의 IT 및 자동차용에도 판매를 확대하여 매출 확대 기반을 확보할 계획입니다. 올해 전자 재료 사업은 많은 불확실성 가운데서도 질적 성장을 예상하고 있습니다. 신제품 적기 진입을 필히 달성하고 품질을 견고히 하여 실적 성장을 극대화하도록 하겠습니다. 이상입니다. This is Ik-soo Kim, VP of the Electronic Materials Business, and I will answer your second question. The semiconductor materials market is expected to see steady growth as strong AI demand drives memory bit shipments up this year, leading to increased wafer input. That said, concerns still remain about a potential scenario where Chinese chip makers increase their legacy production, leading to oversupply and inventory build-up of mobile and PC semiconductors, and eventually production adjustments by major chip makers. We plan to strengthen our DRAM and NAND metal slurry lineup to increase sales to key Korean customers and to increase high heat conductive EMC using our core ingredient technology, including filler and catalysts necessary for achieving high thermal conductivity. For SOD and CISCR, we're looking to increase sales to new customers, including Chinese customers. The display materials market is expected to grow slightly YOY, mainly around the OLED panel makers. The QD display market is expected to maintain growth momentum, mainly around gaming monitors. We plan to use our new G or Green Host product, which improves panel life and efficiency, to get designed on new platforms of major Korean and overseas customers, and also increase sales by expanding sales to Chinese IT and automotive applications. This year, the electronic materials business expects to achieve quality growth despite high uncertainty, and we will focus on maximizing our business performance by getting our new products designed in on time and following through with solid quality. 네, 마지막으로 저희가 온라인을 통해 사전에 취합한 질문에 대해 답변 드리고 마치도록 하겠습니다. 질문은 전기차와 ESS 시장에서 LFP 배터리 수요가 계속 확대되는 가운데 삼성 SDI의 LFP 배터리 준비 상황에 대해서 물어봐 주셨습니다. 이에 대해서는 저희 중대형 사업부 전략 마케팅 실장 박종성 부사장님께서 답변을 드리겠습니다 . Before we end the call, we will take one question that we have collected online prior to this conference call. The question that we will address will be about LFP battery. The question is that there's continuing growth of LFP battery demand coming from both EV and ESS markets. Can we hear some updates on SDI's LFP preparation? This question will be answered by VP Jong-sung Park of the Large Battery Business . 네, 답변 드리겠습니다. LFP 배터리의 경우에는 당사가 후발주자이긴 하지만 동종 업체와 차별화할 수 있는 플랫폼을 이미 완성했습니다. 현재 전기차와 ESS의 각각의 시장 특성에 맞춰서 고객 공급을 위한 상품화를 진행하고 있는데, 먼저 전기차 배터리의 경우에는 당사의 각형 폼팩터와 소재, 급한 기술을 접목해서 에너지 밀도, 수명 특성을 높이는 방법으로 기존 제품들과 차별화를 하고 있으며, 27년에 양산 프로젝트를 주요 고객들과 협의하고 있습니다. 이와 함께 주요 고객들의 니즈에 맞추어 현지 공급이 가능한 체계를 구축 중에 있습니다. ESS는 지난해 하반기 업계 최고 수준의 용량 셀을 개발했으며, 올해 내에 생산 공법과 양산성 검증을 마치고 내년 상반기부터는 원가 경쟁력과 용량을 높인 LFP 전용 SBB 2.0 제품 양산을 시작할 예정입니다. 그러면서 글로벌 공급을 추진할 계획에 있습니다. 당사 고유 기술과 글로벌 생산 거점 운영 경험을 적극 활용해서 빠르게 시장을 확대할 수 있도록 노력하겠습니다. 이상입니다. SDI is a latecomer to LFP batteries, but we have already completed a platform that differentiates us from competitors. We are currently in commercialization of LFP with offerings specific to EV and ESS markets, respectively. For EV batteries, our LFP battery is differentiated from existing products in terms of higher energy density and cycle life by leveraging our prismatic form factor, material, and electro technology. We are discussing 2027 mass production projects with key customers, and we are also preparing a system for local supply to meet needs of key customers. For ESS, we have already developed one of the industry's largest capacity LFP cells in the second half of last year, and we plan to complete proofing of production process and mass production feasibility this year with the aim of starting mass production of the LFP-based SBB 2.0 with better cost competitiveness and capacity from the first half of next year for global supply. Our proprietary technology and global production operation know-how will be actively leveraged to quickly expand our position in the market. 네, 답변 감사드립니다. 투자자 여러분들의 소중한 의견 감사드리며 주요 경영 의사 결정에 참고하도록 하겠습니다. 그럼 이것으로 실적 설명회를 마치도록 하겠습니다. 추가 문의 사항이 있으신 경우 저희 IR 팀으로 연락 주시기 바랍니다. 감사합니다. Thank you for all of the opinions that have been submitted, and we always value and reference the opinions of our investors in our business decisions. That completes our earnings conference call. If you have any.