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Hanwha Solutions 3Q26 Earnings Release SUSTAINABLE SOLUTIONS FOR ALL, FROM ENERGY TO MATERIALS
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We are committed to enriching the future with sustainable solutions for all. Hanwha Solutions provides a range of solutions in various fields with differentiated technology and innovation. We are growing as a global leader in responding to climate change with smart eco-friendly energy solutions and customer-focused materials. We are committed to enriching the future with sustainable solutions for all.
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This presentation, prepared in accordance with K-IFRS, provides preliminary results prior to the completion of an external audit for the convenience of investors only. It contains forward-looking statements that are inherently subject to risks and uncertainties, unexpected changes in market conditions and subsequent adjustments in the company’s strategies, which may cause actual results to differ materially from the projections made in this presentation. The responsibility for any investment decision based upon the information contained in this presentation falls on the investor. We do not undertake any duty to update any forward-looking statement. DISCLAIMER
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2026 3Q Earnings Release APPENDIX CONTENTS Financial Index Price Data Capacity & Maintenance Plan Energy – Business Strategy Materials – Business Strategy 16 17 18 19 20 06 07 08 09 10 11 12 13 14 3Q26 VS 2Q26 2026 Market Outlook 3Q26 Income Statement 3Q26 Balance Sheet Performance by segment – Renewable Energy Performance by segment – Chemicals Performance by segment – Adv. Materials Performance by segment – Equity Method Income Performance by segment – Total
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FINANCIALS 06 07 08 09 10 11 12 13 14 3Q26 Earnings Release 3Q26 VS 2Q26 2026 Market Outlook 3Q26 Income Statement 3Q26 Balance Sheet Performance by Segment – Renewable Energy Performance by Segment – Chemicals Performance by Segment – Adv. Materials Performance by Segment – Equity Method Income Performance by Segment – Total
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FINANCIALS > 3Q26 VS 2Q26 Sales decreased by 14% QoQ Renewable Energy High base from 2Q development asset sales(-) Chemicals Key product prices declined(-) Adv. Materials Solar materials sales decreased(-) Operating Profit decreased by 70% QoQ Renewable Energy Absence of tariff refund effect(-) Chemicals Spreads narrowed(-) 3Q26 Earnings Release 3Q26 VS 2Q26 6 Adv. Materials Lightweight composite profitability improved(+) 2Q26 3Q26 45,826 39,486 (KRW 100mn) Renewable Energy -3,191 Chemicals -1,224 Adv. Materials -84 Others -1,841 -14% 2Q26 3Q26 Renewable Energy -613 Chemicals -1,318 Adv. Materials +101 Others -3303,065 -70% 905
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FINANCIALS > 2026 Market Outlook 2026Market Outlook Renewable Energy 3Q26 Earnings Release 7 Chemicals Policy & RegulatoryCommercial & Community Residential U.S. commercial solar installations continue to grow (+11% YoY), with regional growth expected on the back of expanding community solar installations in key states such as Illinois and New Jersey Solid solar demand expected to continue for the next several years, supported by a U.S. project pipeline of over 200GW with secured Safe Harbor eligibility and growing demand from data centers Tighter U.S. import regulations, including Section 232 and AD/CVD, are weakening the price competitiveness and supply flexibility of imports. As channel inventory is depleted, demand for our vertically integrated products is expected to grow from 2027 Demand is adjusting on interest rates and the 25D expiration, but the downside is partly cushioned by rising battery attachment rates (46% in 2Q26) and lower upfront costs from the shift to TPO and prepaid leases. VPP and grid service revenue opportunities to expand Utility Mid- to long-term oversupply pressure from new Chinese capacity persists, but prices are expected to remain resilient in the short term due to geopolitical uncertainty and raw material cost burdens The market was strong in 1H on concerns over a prolonged Strait of Hormuz blockade, but prices are expected to weaken in 2H on lower demand from key importing countries such as Australia and Indonesia LDPE / EVA Caustic Soda International prices spiked on the back of operating rate adjustments by major global producers and Middle East tensions. Yet downward price pressure is expected to continue as upside momentum weakens and structural oversupply persists PVC TDI International PVC prices surged in 1H on Middle East geopolitical risks and concerns over raw material and logistics disruptions, but are expected to stabilize in 2H as supply normalizes and Chinese exports increase
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FINANCIALS > 3Q26 Income Statement3Q26 Earnings Release 8 3Q26 Income Statement (KRW 100mn) 3Q26 2Q26 % QoQ 3Q25 % YoY Sales 39,486 45,826 -13.8% 33,644 +17.4% Operating Profit 905 3,065 -70.5% -74 Turned to profit OP Margin 2.3% 6.7% -4.4%p -0.2% +2.5%p EBITDA 3,226 5,236 -38.4% 1,865 +73.0% EBITDA Margin 8.2% 11.4% -3.2%p 5.5% +2.7%p Pre-tax Profit 234 2,582 -90.9% -397 Turned to profit Net Profit 685 2,929 -76.6% 45 +1,422.2% * 3Q26 operating profit includes KRW 211.8bn related to the IRA Sales OP OPM Renewable Energy 21,632 1,051 4.9% (KRW 100mn) Sales 39,486 Sales OP OPM Sales OP OPM Chemicals Others OP 905 / OPM 2.3% Sales OP OPM Adv. Materials 13,426 -447 -3.3% 2,919 389 13.3% 1,509 -88 -5.8% * Sales and operating profit by segment reflect allocated consolidation adjustments at each segment level. Figures are subject to change pending external audit review.
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FINANCIALS > 3Q26 Balance Sheet 3Q26 Balance Sheet 3Q26 Earnings Release 9 2025 3Q26 Vs. 2025 Total Assets 300,368 331,440 333,244 +1,804 (Cash & Short-term Investments) (23,111) (26,658) (26,006) -652 Total Liabilities 194,300 219,590 205,473 -14,117 (Total Debt) (130,025) (152,917) (138,272) -14,645 (Net Debt) (106,914) (126,259) (112,266) -13,993 Total Shareholders’ Equity 106,068 111,850 127,771 +15,921 Total Liabilities/Equity 183% 196% 161% -35%p Net Debt/Equity 101% 113% 88% -25%p 2024 Total Assets 333,244 Asset Liabilities Equity Asset Liabilities Equity Asset Liabilities Equity Asset Liabilities Equity Asset Liabilities Equity Others Consolidated adj. Liabilities 205,473 / Equity 127,771 282,506 125,160 157,346 69,771 29,088 40,683 21,800 8,662 13,138 73,925 65,782 8,143 -114,758 -23,219 -91,539 Renewable Energy Chemicals Adv. Materials (KRW 100mn) (KRW 100mn)
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FINANCIALS > Performance by Segment – Renewable Energy Renewable Energy Performance by Segment 3Q26 Earnings Release 10 3Q Analysis • Despite the high base from one-off gains such as tariff refunds in 2Q, profitability was sustained by higher module sales volume to the U.S., improved profitability in the residential energy business, and stabilized production at the Cartersville cell plant 4Q Outlook • Module prices expected to keep rising on U.S. trade measures such as Section 232, though time lags in price pass-through and EPC project schedule and cost changes may cause short-term earnings volatility 796 -212 51 140 812 187 -1,684 81 82 -576 0.5% -19.4% 2.9% 6.7% 4.9% 3Q25 4Q25 1Q26 2Q26 3Q26 OPM 1,66462279 -3,960 1,051 Operating Profit (KRW 100mn) EPC/Development Asset Sales Module & Others Residential Energy Business QoQ -37% 5,006 3,404 2,617 2,718 4,519 8,186 14,219 12,256 16,517 9,931 3Q25 4Q25 1Q26 2Q26 3Q26 17,515 Sales (KRW 100mn) EPC/Development Asset Sales Module & Others Residential Energy Business QoQ -13% 20,410 21,109 24,823 21,632
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FINANCIALS > Performance by Segment – Chemicals3Q26 Earnings Release Performance by Segment Chemicals 11 3Q Analysis • Turned to a loss as the geopolitical risk premium faded and falling oil prices resulted in negative lagging effects 4Q Outlook • Losses expected to continue, as rebounding oil prices add to cost pressure amid weak demand -0.8% -8.9% 2.5% 5.9% -3.3% 3Q25 4Q25 1Q26 2Q26 3Q26 OP OPM Operating Profit (KRW 100mn) 871341-90 -1,021 -447 QoQ Turned to loss 3Q25 4Q25 1Q26 2Q26 3Q26 HNC CA/PVC/TDI LDPE/LLDPE/EVA/W&C Sales (KRW 100mn) QoQ -8% 14,65013,40111,603 11,512 13,426 61% 57% 36% 52% 42% 58% 35% 57% 37%32%
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FINANCIALS > Performance by Segment – Adv. Materials Adv. Materials Performance by Segment 3Q26 Earnings Release 12 3Q Analysis • Operating profit increased, driven by higher 2H production volumes from U.S. customers in the automotive lightweight composite business and continued stable sales in the U.S. solar materials business 4Q Outlook • Steady revenue growth expected in both automotive lightweight composite and solar materials, with profitability similar to the previous quarter 3Q25 4Q25 1Q26 2Q26 3Q26 Sales (KRW 100mn) QoQ -3% 2,8562,7132,579 3,003 2,919 1.4% -2.0% 4.3% 9.6% 13.3% 3Q25 4Q25 1Q26 2Q26 3Q26 OP OPM Operating Profit (KRW 100mn) 28812236 -54 389 QoQ +35%
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Performance by Segment FINANCIALS > Performance by Segment – Equity Method Income3Q26 Earnings Release 13 Equity Method Income 3Q Analysis • Equity method income declined as prior-quarter one-off gains faded and higher-cost raw materials were put into production 4Q Outlook • Uncertainty expected to persist, as oil and key product prices are likely to remain volatile depending on developments in the Middle East -145 -497 -263 -292 -242 549 253 896 2,512 -743 587 -1,780 -1 -730 105 3Q25 4Q25 1Q26 2Q26 3Q26 Others Hanwha Impact/Total YNCC (KRW 100mn) 1,490632991 -2,024 -880 QoQ Turned to loss
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FINANCIALS > Performance by Segment – Total Performance by Segment― Total 14 (KRW 100mn) * Due to the suspension of operations at the Qidong plant in China as of June 30, 2024, the entity's profit and loss have been classified as discontinued operations from 2023 onward, excluded from operating profit and included in net income as ‘gain or loss from discontinued operations’. * From 2023 onward, figures reflect the retrospective application of the change in accounting policy for investment property. * From 2023 onward, Hanwha Savings Bank's profit and loss have been classified as discontinued operations — excluded from operating profit and included in net income as 'profit/loss from discontinued operations,' following the sale of shares pursuant to the board resolution on October 14, 2024. * The revenue and operating profit by segment reflect allocated consolidation adjustments. Figures for 3Q 2026 are subject to change pending external audit review. 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 2023 2024 2025 Sales 23,534 26,518 27,459 46,429 30,945 31,172 33,644 37,570 38,820 45,826 39,486 130,785 123,940 133,331 Renewable Energy 7,641 9,802 11,525 28,690 15,992 14,464 17,515 20,410 21,109 24,823 21,632 65,255 57,658 68,381 Chemicals 12,223 12,224 11,886 11,839 10,736 12,390 11,603 11,512 13,401 14,650 13,426 50,974 48,172 46,241 Adv. Materials 2,496 2,659 2,546 2,675 2,738 3,079 2,579 2,713 2,856 3,003 2,919 9,889 10,376 11,109 Others 1,174 1,833 1,502 3,225 1,479 1,239 1,947 2,935 1,454 3,350 1,509 4,667 7,734 7,600 Operating Profit -2,146 -1,123 -803 1,070 303 1,021 -74 -4,898 926 3,065 905 5,792 -3,002 -3,648 Renewable Energy -1,853 -918 -410 606 1,362 1,562 79 -3,960 622 1,664 1,051 5,398 -2,575 -957 Chemicals -187 -174 -310 -542 -912 -468 -90 -1,021 341 871 -447 607 -1,213 -2,491 Adv. Materials 106 90 61 -22 -18 98 36 -54 122 288 389 643 235 62 Others -212 -121 -144 1,028 -129 -171 -99 137 -159 242 -88 -856 551 -262 Financial G/L -1,130 -1,317 -1,329 -674 -1,083 -1,086 -1,071 -1,195 -1,312 -1,454 -1,507 -3,231 -4,450 -4,435 Other G/L -6 -222 -558 -2,732 -1,247 -1,451 -243 2,299 -670 -519 1,716 -2,075 -3,518 -642 Equity Method Income -507 -504 -1,013 -1,243 1,346 32 991 -2,024 632 1,490 -880 835 -3,267 345 Pre-tax Profit -3,789 -3,166 -3,703 -3,579 -681 -1,484 -397 -5,818 -424 2,582 234 1,321 -14,237 -8,380 Net Profit -4,471 -3,306 -3,877 -2,036 -302 -1,784 45 -4,112 -382 2,929 685 -882 -13,690 -6,153 3Q26 Earnings Release
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APPENDIX 3Q26 Earnings Release 16 17 18 19 20 Financial Index Price Data Capacity & Maintenance Plan Energy – Business Strategy Materials – Business Strategy
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Financial Index APPENDIX > Financial Data 16 141 167 183 196 161 73 101 123 137 108 45 78 101 113 88 2022 2023 2024 2025 3Q26 (%)Leverage Ratio Total Liabilitiesto Equity Debt to Equity Net Debt to Equity 8.8 4.4 -1.0 -12.9 -5.4 2021 2022 2023 2024 2025 ROE (%) 4,409 7,266 10,691 12,626 11,227 2,800 2,084 2,311 2,666 2,601 2022 2023 2024 2025 3Q26 Debt (KRW bn) Net Debt Cash, Cash Equivalents& ST Investments 834 942 2,411 3,419 2,018 2021 2022 2023 2024 2025 CAPEX (KRW bn) 3Q26 Earnings Release
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APPENDIX > Price Data 17 Price Data 1,031 1,088 1,111 1,130 1,125 1,036 1,030 967 1,031 1,347 1,110 940 955 950 946 931 863 853 811 845 1,115 1,100 400 600 800 1,000 1,200 1,400 1,600 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 LDPE LLDPE (USD/MT) 770 793 782 752 719 705 708 674 773 931 810 361 384 391 453 475 415 396 374 371 385 331 0 200 400 600 800 1,000 1,200 1,400 0 200 400 600 800 1,000 1,200 1,400 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 PVC Caustic Soda (USD/MT) 1,990 2,013 1,910 1,745 1,780 1,555 1,694 1,681 1,981 2,358 2,149 1,400 1,600 1,800 2,000 2,200 2,400 2,600 2,800 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 TDI (USD/MT) 24 16 14 13 15 13 15 17 16 13 14 13 12 11 10 9 9 9 9 10 12 11 0 5 10 15 20 25 30 0 5 10 15 20 25 30 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 N-Type Wafer(FOB China) N-Type Module(FOB China) (USD cents/W)(USD cents/pc) Source:Infolink 3Q26 Earnings Release
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APPENDIX > Capacity & Maintenance Plan Capacity & Maintenance Plan 18 Renewable Energy Cell 11.0 - Module 11.4 - Maintenance Plan in 2026 Chemicals LDPE/EVA 457 Mar~Apr, 10 days, 80 KMT / Mar~Apr, 34 days, 112 KMT / May, 10 days, 133 KMT / May~Jun, 6 days, 120 KMT / Oct~Nov, 6 days, 120 KMT / Oct~Nov, 15 days, 133 KMT LLDPE 425 Mar, 5 days, 163 KMT / Apr, 3.5 days, 112 KMT PVC 780 Aug~Sep, 27 days, 200 KMT / Sep, 15 days, 170 KMT Caustic Soda 1,120 Feb~Mar, 25 days, 372 KMT / Feb~Mar, 21 days, 143 KMT / Oct~Nov, 24 days, 267 KMT TDI 150 Jun~Jul, 38 days, 150 KMT PVC (Ningbo) 350 Dec, 15 days, 400 KMT EVA (H&G) 300 - YNCC Ethylene 2,285 - Propylene 1,289 - Butadiene 378 - BTX 943 - *As of end-2025 CAPA(KMT)* (End-2026) CAPA(KMT)* CAPA(GW) Maintenance Plan in 2026 Hanwha Impact PTA 2,000 Apr, 10 days, 400 KMT / May, 15 days, 450 KMT / Nov, 18 days, 450 KMT 1,525 1,064 150 1,041 2,000 1,135 1,117 CAPA(KMT)*Hanwha TotalEnergies Ethylene Butadiene SM PX PE PP Propylene - - - -CAPA(KMT)* - - - 3Q26 Earnings Release
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PlatformProvider PowerMarketPlayer Module HW + SW Developer Installer APPENDIX > Energy –Business Strategy Energy Business Strategy 3Q26 Earnings Release Total Energy Solution Provider Building on differentiated product competitivenessto drive growth as a Total Energy Solution provider 19 Advanced Module TechnologyTechnology Leadership • Maximizing module leadership advantage based on high-efficiency TOPCon modules and next- generation Perovskite-based Tandem modules • Building a vertically integrated Value Chain anchored by North America's largest solar manufacturing complex, the "Solar Hub" Smart Energy SystemsSystem HW & SW Integration From Residential to UtilityMarket-Tailored Downstream Solutions Beyond DownstreamFinancing & Energy Services • Delivering Smart Energy Systems that integrate core energy hardware — including MLPE, inverters, and ESS —energy management software • Offering market-optimized Downstream solutions for each segment based on differentiated product competitiveness • Providing integrated distributed energy solutions spanning from asset development to construction and operations and executing large-scale PV and BESS Turnkey EPC projects. • Providing solar financing and energy management solutions that extend beyond manufacturing and installation, positioning as a full-spectrum energy solutions provider across the entire power market
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Building a sustainable growth platform by bolstering the competitive edge of existing business Reinforcement of Business Competitiveness Achieve Global Top in W&C High-content EVA expansion Business Improvement at Ningbo PVC Expansion of technology -based high-value /eco-friendly business Expand eco-friendly plasticizers Bio-based products Recycled material-based products Discover new growth engines for the future APPENDIX > Materials –Business Strategy Materials Business Strategy 3Q26 Earnings Release 20 Bio-ENG Development of water electrolysis system Silicon Anode Material