Good afternoon. We will now start LG Chem's 2022 third quarter earnings conference call. This is Hyun-suk Yoon, Head of IR at LG Chem. Thank you for taking an interest in LG Chem and joining this call despite your busy schedules. We will begin with the brief introduction of 2022 Q3 earnings performance, followed by the CFO presentation highlighting the company's earnings results, then a Q&A session. The presentations will be interpreted simultaneously while the Q&A will be interpreted consecutively. The material presented during this conference call can be viewed by those with web access. It is also available for download from our corporate website. Let's begin today's call with the introduction of the management team. We have CFO Dong Seok Cha, Byung Suk Lee from Business Planning, Ki-dae Byun from Petrochemicals, Byung Suk Lee from Advanced Materials, and Hee-Soo Park from Life Sciences. Let's begin with the business performance. On page three, consolidated Q3 sales and P&L. Q3 sales grew by 34% YOY and 16% QOQ to KRW 14.178 trillion to record the highest ever quarterly sales for four consecutive quarters. Operating profit was KRW 901 billion and OP margin was 6.4%. Next page is a summary of our earnings performance, excluding LG Energy Solution. Sales was KRW 8.316 trillion, slight increase to the previous quarter, and operating profit was KRW 450 billion. Next, page five is our consolidated financial status. As of the end of the third quarter, 2022, assets were around KRW 69.6 trillion. Liabilities were around KRW 31 trillion, and capital was around KRW 30.7 trillion. Net asset value per share was KRW 416 thousand. Next, earnings by business division. Page six, Petrochemical division. 2022 Q3 sales was KRW 5.493 trillion. Operating profit was KRW 93 billion, and operating margin was 1.7%. With the supply increase in petrochemical industries coupled with recession from the global inflation, the rapid deterioration of the market environment led to a fall in sales and profitability on quarter. Particularly, a significant tightening in the spreads of downstream key products such as PVC and ABS, which have been posting solid profits. However, high value add premium products such as POE and SAP with relatively solid demand continued to generate robust profitability. Next is Advanced Materials. In Q3, Advanced Materials sales was KRW 2,582 billion, a 30% increase QOQ, and operating profit was KRW 416 billion. With the deterioration in the downstream IT market, sales and profits fell for the IT materials. However, for battery materials and cathodes in particular, increase in ASPs and shipment backed by the rising metal prices led to sales growing around 60% compared to the previous quarter. Next, Life Sciences. In Q3, sales was KRW 225 billion, operating profit was KRW 6 billion, and OP margin was 2.6%. Sales increased for key products such as the growth hormone. However, profitability fell due to the delay in the recovery of aesthetics business from the prolonged COVID lockdown in China and an increase in R&D investment for full-fledged clinical trials for global new drugs. Next, Farm Hannong. Q3 sales was KRW 157 billion and operating loss was KRW 3 billion. With the seasonality in the second half, the business has posted negative earnings. However, sales and profitability improved YOY with the increase in sales of crop protection products at home and abroad, including greater exports of Herado. Lastly, LG Energy Solution. On October twenty-sixth, LG Energy Solution presented their performance in detail during its earnings release call. However, we will briefly present their earnings here. In Q3, LG Energy Solution sales was KRW 7,648 billion. Operating profit was KRW 522 billion, and OP margin was 6.8%. The company recorded the highest quarterly sales backed by the increase in shipments, thanks to the greater demand from key OEM customers in Europe and North America. Consequently, with economies of scale and higher ASPs from rising metal prices, profitability also improved. On this note, we will conclude the Q2 earnings presentation and invite CFO Dong Seok Cha to present the highlights of the company's earnings performance. Good afternoon. This is Dong Seok Cha, CFO of LG Chem. I want to thank all of you for joining us today and taking a great interest in LG Chem earnings release despite your busy schedule. As stated regarding the Q3 earnings, just to summarize, profitability fell due to the full-fledged downside both in the petrochemical industry on the back of the global recession. However, we were able to raise the growth and profitability in advanced materials and energy solution, and on a consolidated basis, profits have slightly increased compared to the second quarter. This was possible because we built a more stable business portfolio through the rapid business expansion of the company's new growth drivers. In the fourth quarter, which is going to be increasingly difficult to forecast, we will be facing a challenging business environment, and in particular, difficult cycle continues in the Petrochem business. However, recently, ASPs of key products are stabilizing. Likewise for feedstock prices, and thus additional weakening of the market conditions is likely to be limited. Therefore, we forecast that Petrochem's market conditions will bottom out in the fourth quarter. In case of cathodes, which is the foundation for advanced materials, we forecast that ASPs will fall due to a more downward stabilization of metal prices, and thus for the next one-two quarters, maintaining such very high margin that we experienced previously may be somewhat difficult. However, when we look at shipments, they continue to increase, led by the electric vehicle market, and thus we will further increase the business profits through continued business expansion. Dear investors, as mentioned earlier, uncertain macroeconomic environment at home and abroad continues to persist. The company will continue to maintain competitiveness through creating more differentiated and increased customer value and through thorough supply chain management, and also thoroughly manage cash flow through more prudent investment execution and working capital management. On the other hand, for the continued growth of LG Chem, we will also proceed on track in investing and fostering the top three growth engines for the company. Through the recently announced acquisition of AVEO, we believe we can secure a strong foundation and capabilities in the global new drug business. We are in the final stages of completing the North America cathode capacity expansion plan to expand the battery material business, and we will be able to communicate the plan shortly to you. Dear investors, under continued adversities, everyone here at LG Chem will endeavor to identify opportunities and create bigger growth. I would like to ask for your strong and continued support. Thank you. Next, we will begin the Q&A session. To give more opportunities to ask questions, we will limit two questions per person. If you have a question, please press star and one. To cancel your question, press star and two. The first question is from the line of Young-Suk Lee from Morgan Stanley. Please go ahead. Yes. Thank you for the opportunity to ask questions. There are two questions that I would like to ask you. First is about your overall petrochemicals business. I do believe that the CFO just now has talked about the market backdrop and saying that the market is challenging. However, there was mention that there should be a gradual improvement in place. The question that I would like to ask is how much of an improvement do you think that it would be possible? And in addition to that, in terms of the market actually showing a rebound in full, when do we expect that would be able to take place? The second question that I would like to ask you is, I guess, about news that the overall market has been waiting for, and that would be on the cathode side of your business. When would we able to know about your updated capacity expansion plans or maybe, expansion into, the U.S.? 석유화학 부문 먼저 말씀드리겠습니다. 석유화학의 시황 관련해서는 가동률로 먼저 설명을 드릴 수 있을 것 같습니다. 석유화학 시황의 대표 지표인 에틸렌에 대한 가동률은 올해 이미 약 80% 수준으로 업계의 가동 조정이 있었습니다. 내년에도 수급과 시황을 고려할 때 올해와 유사한 수준의 진행이 예상되고 있습니다. 반면 다운스트림에 있어서는 제품별 수급과 업체 간 경쟁력 수준에 따라 가동률의 차이가 있을 것으로 전망하고 있으며, 당사의 경우도 PO나 MBS를 제외한 나머지 다운스트림은 약 90% 이상의 정상 가동률을 예상하고 있습니다. 이런 점을 볼 때 현재 글로벌 사업 환경의 불확실성이 매우 높아 좀 조심스럽긴 하나, 현재 유가 상황 그리고 현재의 수요 수준을 고려할 때 올해 하반기 대비 추가적인 악화 가능성은 제한적일 것으로 보고 있어, 2024년 상반기를 지나면서 회복을 기대하고 있습니다. Yes, maybe I can take your first question, which would be about the overall petrochemical market outlook. I do believe that this is a question I can address by talking about the overall utilization rate. If we look at one of the main indicators, which would be the utilization for ethylene products, right now it is running at around 80%. It is true that within the market as a whole, there has been some adjustment in the overall utilization. If we take into consideration the supply and demand dynamics within the overall market and the market backdrop, we actually believe that this is a trend that will continue into next year at a similar level. On the downstream side, due to the overall supply-demand dynamics and also, the difference in competitiveness by each of the different companies, we do think that there could be some differences in the experience that each company has. In the case of our overall situation, if we were to look at the situation, so for the more common PO products and for some other, with the exception of those areas, we do believe that the overall utilization would be at around 90%, which would be more at the normal levels. However, because of the global nature of our overall business and the uncertainties that we see within the overall economic backdrop, we are a bit cautious about next year. Taking into consideration the overall oil price levels and also the demand that we see within the market, we do think that the possibility of there being a further deterioration from the current situation would be a bit limited. As we pass through the first half of 2023, we do think that we will be able to experience an overall improvement within the market. 북미 양극재 Capa 관련 답변 드리도록 하겠습니다. 북미 양극재 투자에 대한 검토가 진행 중에 있으며, 부지, Capa, 투자비, 물량 보증, 평가 등에 대해서 고객 및 관련 기관과 최종 협의 중에 있습니다. 이십오 년 내 가동을 목표로 세부 일정을 수립 중에 있으나 북미 건설 환경, 설비 업체의 setup 일정 등에 따라서 일부 변수가 있습니다. IRA 발효로 북미 소재 현지화 니즈가 커지고 있으며, 북미에서 사업을 영위하거나 계획하고 있는 다수의 OEM 셀 업체와 현지화 규모 일정을 조율 중에 있어 북미 현지화 규모는 현재 계획 대비 다소 커질 수도 있습니다. Maybe I can talk about your second question, which would be the overall capacity expansion plans that we would see in North America. If we look at North America, you know, it is true that we are looking at the possibility of expanding our capacity and take into consideration the overall metal sourcing, also the lack of availability of land and also the sales pricing and the metal sourcing possibilities. Also the overall situation at our customer sites. We do need to take a wide variety of elements into consideration before we are able to come up with our final conclusion. Right now we are in the final stages of discussions with our customers about the overall situation. Targeting the year 2025 in terms of the overall capacity expansion. As of now, we are looking into the environmental related areas in terms of what would be the overall construction environment, what the setup is required and what other elements we need to have in place. At the same time, because the Inflation Reduction Act has been announced within the U.S., we do believe that there's an increase in overall need for localization of the various materials. Right now we have been approached by a multiple number of OEMs and cell manufacturers about what our schedule would be going forward and what type of capacity or size we would be able to produce. As a result of that, versus the initial plans that we had for our capacity expansion, we do believe that there could be possible to be an upside in terms of the overall plans. 네, 다음 질문 받도록 하겠습니다. 다음 질문은 삼성증권의 조현열 님입니다. 질문 부탁드립니다. The next question is from the line of Hyunyul Cho from Samsung Securities. Please go ahead. 네, 안녕하세요. 삼성증권 조현열입니다. 질문해 주셔서 감사드립니다. 크게 두 가지 질문드리려고 하는데요. 첫 번째로 이 양극재 쪽의 메탈 가격 하향 안정화로 인해서 수익성이나 판가가 좀 빠질 거라고 보셨는데 이 일의 방향성이 어느 정도까지 낮춰봐야 될지를 주로 질문드리고요. 그리고 사실 저희가 여타 경쟁업체와 달리 메탈을 직접 소싱하기 때문에 수익성에 어느 정도 개선을 볼 수 있을 것 같은데 이 규모도 좀 궁금합니다. 그리고 두 번째는 그 IRA 발효 이후에 양극재 사업의 전략의 방향성에 중장기적으로 변화가 발생했는지 조금 질문드리고 싶습니다. 이상입니다. Yes, thank you for the opportunity to ask questions. There are two questions that I would like to ask you. First on the cathode side, you did discuss that in general overall the metal prices have been stabilizing at a lower level. So as a result of that you did think that the overall profitability and also sales prices in this area may follow suit. However, if we were to look at the overall direction of profits going forward, what type of expectations should we have on that side? In addition to that, if you look at your position versus where your competitors sit, I do believe that one of the benefits that you enjoy is that you're able to directly source your metals. As a result of that, how much increase in profitability or what level do you think you would be able to enjoy because of this overall advantage? The second question that I would like to ask you is that since the IRA has been announced in terms of your overall strategy for your business over the mid to long term, has there been any changes in that direction? Maybe I can talk about the first question. With regards to the overall profitability trends that we have seen, it is true that in terms of the recent trends for metal prices we have seen some moderation. Going into the fourth quarter, because of the overall situation, we do think that a lot of the inventory has been depleted, and we will not see a significant increase in the overall performance. In addition to that, at the customer level, we do see that for inventory, that they are moderating and somewhat managing the overall customer inventory for the end of the year. We do think that there is possibility that the overall shipment volume will decrease as a result of that. As a result of that, on the fourth quarter basis, on a QOQ basis, we do see that there will be a slight softening in the overall situation. For metal sourcing, of course we are interested in making equity investments into the metal side. However, how much that would actually represent in terms of improvement is difficult to specify in terms of an absolute number. That having been said, within the overall cost that goes into the cathode, the metal does account for a large portion. As a result of that, whether it be on the lithium side or whether it be on the metal side, through various joint venture arrangements and also partnerships, this is something that we are interested in putting in place, so that in terms of the sourcing, we can enjoy a more stable sourcing base. This is something that we do want to expand going forward. Maybe I can address your second question about, after the IRA has been introduced, whether there is a difference in our overall strategy. If we look at the overall details for the IRA in itself, we do think that it will take a bit more time, so we would have to be close to the end of the year for us to know what the details will incur with regards to the requirements. It is true that with regards to the overall demand, we have seen an increase in demand. As a result of that, for our overall strategy, we do want to continue on the road that we have for building out a global production base. In addition to that, on the IRA side, because this is newly in place, for metal sourcing, we do want to ensure that we can localize metal sourcing more. As a result of that, we are trying to increase our overall relationships and volumes with suppliers from North America and also Australia, which would be FTA countries that are also countries that have an FTA with the U.S. In addition to that, to ensure that on the consumer side that they would be eligible for the subsidies that are provided, we are going to continue to source our overall cathodes from FTA countries again. At the same time, continue with the overall cooperations that we have with other partners to ensure that we can meet all of the requirements that we have for local content. However, once again, for the more detailed discussions about what we need to do, we would have to have more details about the final details related to the IRA regulations and what the requirements would be. Once that is in place, of course, we will do as much as possible to try to satisfy those conditions. Therefore, we want to confirm. 네, 다음 질문 받도록 하겠습니다. 다음으로 질문해 주실 분은 미래에셋증권의 이진호 님입니다. 질문 부탁드립니다. The next question is from the line of Jinho Lee from Mirae Asset Securities. Please go ahead. 안녕하십니까? 미래에셋증권 이진호입니다. 질문 기회 주셔서 감사합니다. 석유화학 쪽 질문 두 가지 드리도록 하겠습니다. 먼저 첫 번째는 정기 보수에 관한 내용입니다. 최근 3분기에도 보수 작업과 가동률 조정이 좀 많았는데요. 4분기에도 여수 공장에 대한 정기 보수가 예정된 것으로 알고 있는데, 이에 대한 내용과 손익 효과에 대해서 말씀 부탁드립니다. 그리고 두 번째 질문은 석유화학에 대한 중장기 Capa 투자 계획입니다. 단기적으로는 많은 계획이 없으신 거는 알지만 향후 개선될 시황에 따라서 중장기적으로는 좀 어떤 계획들을 가지고 계신지 업데이트 부탁드리겠습니다. Yes. Thank you for the opportunity to ask questions. There are two questions that I would like to ask about your petrochemicals business. The first is about the turnarounds that have been taking place. I do understand that recently within the third quarter there has been some maintenance activity and as a result of that also some adjustments in the overall utilization have been taking place. If we were to go into the fourth quarter, I understand that there is a TA slated for your Yeosu plant. So if you could talk about what that actually would be and what impact that would have on your P&L, that would be appreciated. The second question that I would like to ask you is about your mid to long term capacity plans or investment plans and capacity for your petrochemicals business. I do understand that for the short term, there is no plans to invest. However, as the market does improve and the backdrop would improve, what would be your mid to long term capacity investment plans? If you could update that for us, that would be appreciated. 정기 보수 관련해서는 질문하신 바와 같이 지난 9월 말부터 12월 초까지 여수 콤플렉스의 정기 보수가 진행되고 있으며, 이와 연관된 downstream도 순차적으로 정기 보수를 실행하고 있습니다. 이 외에도 단위 공장별 정비가 4분기에 집중되어 있는데, 이로 인한 손익 감소 효과는 약 1,300억 원으로 예상되고 있으며, 3분기에 일부 반영된 부분까지를 포함하면 총 1,800억 원 정도의 손익 감소 효과가 예상이 되고 있습니다. Yes. To address your question about the overall turnarounds and the impact of that. As you have mentioned during your question, from the end of September to the beginning of December, we are going through a turnaround of our overall Yeosu complex. In addition to that, on the downstream side, as we complete that maintenance one by one, we will also do maintenance for the downstream facilities that we have. In addition to that, on a unit factory basis, there is also a concentration of maintenance that is scheduled for the fourth quarter. As a result of that, in terms of the overall profit impact, we do think that in the fourth quarter it would represent KRW 130 billion. If we take into consideration some of the impact that was recognized into the third quarter from the turnarounds as a whole, the overall impact would be KRW 180 billion. 다음 투자 관련해서는 먼저 전반적인 투자의 방향성부터 말씀을 드리면, 현재의 시장 악화 상황에서도 미래 준비를 위한 투자, 즉 신성장 동력인 sustainability에 관련된 투자와 지역 제품 포트폴리오를 강화하기 위한 전략적인 자원 투입 속도를 줄이지는 않을 계획입니다. 단기적으로는 현재 진행 중인 태양광용 POE, 전지용 CNT, 반도체용 IPA 등 수요 성장이 높고 cash return이 빠른 고부가 제품 투자를 차질 없이 진행하는 것이고, 중장기로는 기술, 원유 확보에 맞춰 bio, recycle 등 sustainability 제품에 대한 투자 비중을 높여 나가는 전략입니다. Next, maybe I can talk about our mid to long term investment directions. Even though the overall market backdrop right now is not in a good situation, that does not mean that for the future and investments that we require, for example, for our new growth drivers and also in the areas of sustainability, that we would be slowing down the investment plans that we have. In addition to that, the resources that are required to be inputted to build out our portfolio on a regional level and also in a product level is also something that we are not planning to curb down. If we look at the overall direction of our investments going forward, you know, over the short, shorter term period, we do believe that for the higher growth areas and also areas in which we would be able to generate a higher cash return. For example, for the solar PV POEs, and also for, on the battery side CNTs, and also on the semiconductor side, the IPA, these are areas that we want to continue to grow and also invest into. Over the mid to longer term, I think that the overall stance would be that we would focus on the technology that is available and also the various raw materials that are available and look into the areas of bio and also recycling because we do believe that these are areas that would represent the growth for the future. 네, 다음 질문 받도록 하겠습니다. 다음 질문해 주실 분은 메리츠증권의 노우호 님입니다. 질문 부탁드립니다. The next question is from the line of Wooho Rho from Meritz Securities. Please go ahead. 안녕하세요. 저 Meritz Securities의 Wooho Rho입니다. 질문 기회 주셔서 감사합니다. 두 가지 질문을 좀 드리려고 하는데요. 첫 번째는 작년 이맘때쯤 저희가 Toray Industries와 유럽에서 분리막 JV 사업을 공시를 하신 걸로 저희가 기억을 합니다. 일 년 정도 지났는데 결국 저희 captive 고객사인 LG Energy Solution이 미국 쪽으로 투자에 대한 그 시장에 대한 선점 우선순위가 정해진 것 같은데, 기존에 저희가 이 사업을 진행하시면서 생각하셨던 그런 전략에 혹시 변화가, 투자 지역이라든지 그런 생산 capa 등에서 좀 변화가 있으신지 공유를 좀 부탁드리고요. 그리고 최근에 분리막 관련된 회사들의 수익성이 상대적으로 부진한 것 같습니다, 다른 소재 기업들 대비해서. 이에 대해서 수익성에 대한 전략이 좀 어떠하신지 궁금합니다. 그리고 두 번째는 최근에 인수를 확정했었던 AVEO Oncology사 관련해서 생명과학 부분과의 시너지 효과 좀 언급을 부탁드리고요. 그리고 인수, 최종 인수까지 향후 남은 절차 등에 대해서도 좀 업데이트를 좀 부탁드립니다. 이상입니다. Yes, thank you for the opportunity to ask questions. There are two questions that I would like to ask you. The first question is that if I remember correctly, last year around this time, you did announce your joint venture with Toray and also the intention to build out production capabilities in Europe with regards to the separators. I think that a year has passed or so. If you look at your captive customer, LG Energy Solutions, I do believe that in light of the recent developments, that it is more interested in putting priority on the U.S. market and trying to get an early foothold within that overall region. In terms of your overall business strategy for the separator business, has there been any change in that strategy, whether it be in the capacity that you would be looking to build and also in terms of the production region, where you want to be hosted or placed? In addition to that, on a relative basis, if you look at separators versus the other material that goes into batteries, it does seem to be that separator companies have been experiencing more lackluster profitability situations. As a result of that, what would be your strategy to deal with that situation? The second question that I would like to ask you is about your acquisition of AVEO. I would like to know what type of synergies you are looking forward to with your Life Sciences division. In terms of the processes that remain going forward for the closing of the deal, if you could update us about that situation, that would be appreciated. 예, 분리막 사업에 대한 답변드리도록 하겠습니다. 분리막 사업은 업의 특성상 매출 대비 투자비 규모가 굉장히 크고, 안정적인 수익성 확보를 위해서는 높은 가동률을 유지하는 것이 굉장히 중요합니다. 최근 분리막 업체의 수익성 하락은 증설 등에 따른 가동률 저하에 기인한 것으로 보고 있습니다. 당사는 헝가리 분리막 합작법인을 통해서 기존 계획대로 올 연말 또는 내년 초에 양산 계획이며, 현재까지 사업계획상 변경 사항은 없습니다. 단지 말씀하셨던 대로 엔솔 등이 북미 투자에 집중하고 있어 당사가 분리막 사업을 북미에 진출할 건지 여부를 검토 중에 있으며, 확정되는 대로 다시 업데이트로 드리도록 하겠습니다. 당사의 기본 전략은 증설 시에 고객과의 사전 협의를 통해 증설 공급 물량을 사전에 확정하는 방식으로 안정적인 가동률을 전제로 분리막 사업을 지속 확대할 계획입니다. Yes. Maybe I can address your question about our overall separators business. If you look at the nature of the separators business versus the revenue that you are able to generate in terms of the CapEx that is required, the CapEx is much larger. In addition to that, to be able to generate stable margins, it does require that you have a high utilization of your overall facilities. If we look at the market backdrop in terms of why the overall profitability has been weakening recently, it is due to more capacity additions that have taken place and the overall slowdown on the utilization side. For the Hungary JV that we have, this is an existing plan, and we are planning to go ahead according to our original plan. As a result of that, right now, we are planning and targeting to get commercial productions up and running by the end of this year or maybe early next year. With regards to that overall business plan, there are no changes there. However, as you have mentioned, with the likes of LG Energy Solution and our other customers, they are investing into North America and more of their attention is in that market. As a separator provider, we are currently reviewing the possibility of also maybe entering into or having a presence in North America. Once any plans in that area become final, then, of course, we will make sure to update that and share that with you. However, the basic strategy that we use for our overall capacity addition plans would be that before we actually build out the capacity, we would have a discussion with the customer and try to finalize and determine what the overall volume that we would require to be supplied would be, so that that is fixed early on so that we can have a very stable operations in terms of the facilities, and that is how we will continue to expand our presence. 네, 생명과학 관련된 질문 답변드리도록 하겠습니다. 저희가 AVEO사를 매력적인 타겟으로 생각하게 된 것은 LG 화학 입장에서 보면 초반에 리서치와 디스커버리에 강점이 있고, AVEO사는 Yes, maybe I can address the second question that you asked about our life sciences business. The reason why we did believe that AVEO was a very attractive target was because from LG Chem's perspective, we did believe that, you know, the benefit that we have and that we bring to the table is that with regards to the initial research and also the overall exploration process in itself, this was something that we were very good at. On the AVEO side, they had the very strong capabilities in terms of commercialization and also getting the approval done for the various clinical development that was required for new drugs. As a result of that, the AVEO acquisition is a representation of, you know, an opportunity through which we did believe that we would be able to diversify further, the overall strategic options that we were faced with. We do believe that that is one of the biggest attractions, that this deal would represent. On the LG Chem side, we do think, that for the overall pipeline that we have, you know, by this acquisition on the clinical development that is required, we will be able to further accelerate, building out the network, that we would have, for the pipeline, of development. In addition to that, we also believe that through the approval process, we would be able to get a better foothold in the overall market. In addition, we do think that by having the experience of commercial success within the organization, that we would be able to accelerate the timing at which we would be able to reach the peak sales. From the AVEO side, the benefits that they would reap is that in addition to the current portfolio of products that they have, they would be able to enjoy the benefits of having additional pipelines for the future and also the expansion of the overall investment capabilities that the company would be able to experience. Commonly across the two companies, we do think that this is a very good opportunity for us to become and also grow into a global company within the cancer treatment market. If we look at the processes that are required for the future, it would be of course the BOD approval. After that, for the processes that are required until the closing, we do need to get the overall business merger approval in place. There needs to be, at the AVEO side, a general shareholders meeting for the deal, and we also need to have the Committee on Foreign Investment in the United States or CFIUS filing take place. All in all, we do think that this process will take around three-six months in total. During that overall period of time at the company level here, we will continue with setting forth our overall strategy and plans for the post-merger integration, so that we can be prepared for the future. The next question is from the line of Jaesung Yoon from Hana Financial Investment. Please go ahead. Yes, thank you for the opportunity to ask questions. There are two questions that I would like to ask you related to your overall cathodes business. The first question is that if we were to look at your overall utilization for the cathodes capacity that you have and compare the third quarter to the fourth quarter, what would that overall level be? The reason why I'm asking this question is that with the current capacity that you have, whether there is room to further increase volume in terms of your cathodes production. In addition to that, if we were to look at next year, for the overall utilization expectations there, and also take into consideration, the capacity expansion that will be taking place in Chungju, how much of additional capacity for cathodes do you think that would represent as a whole? The second question that I would like to ask you is that in Wuxi, as you look at your, cathode entity there, I do think that there are various benefits that you're able to enjoy. In addition to that, I understand with Huayou Cobalt that you do have a local production plant that you will be building in Korea. If we look at, you know, the Wuxi cathode plant and also whether the benefits of that plant would be able to be something that can be realized in your Gumi factory, what would be the overall situation related to that and what is your view about that? Yes, thank you for the opportunity. To answer your overall questions. The first question, and the reason if we talk about the overall utilization, I think I can say that for our cathodes right now, the overall utilization would be 70%. You did mention the Wuxi facility. If you look at that situation, there is an arrangement that we have with an upstream nickel mining facility or mine. As a result of that, because of that relationship, we're able to source at a discount. As a result of that enables us to enjoy higher profitability for that overall facility. With the Gumi factory, we do think that we will have a similar nickel cooperation arrangement in place. As a result of that, we do believe that the overall profitability profile of Gumi would be similar to that of what we see in China. If we talk about the overall volume expectations for next year, over the mid to long term on a YOY basis, the overall volume growth that we are expecting would be around 30%. If we specifically talk about next year, because Ultium, which would be the JV between LGES and also GM, will be taking place, and also because we do see more significant orders coming outside of our captive customer, we do think that the overall growth rate, as a whole, will be able to increase to a larger extent than the mid to long term levels that we are expecting. In addition to that, if the metal price does not have a negative impact on our overall operations, we do think that in terms of profitability, that a double-digit level would be something that we would be able to achieve. The last question is from the line of Oscar Yee from Citi. Please go ahead. Thank you very much for the chance to ask question. My first question is on cathode. Recently, we do hear some of your peers is having issue securing the Korean government approval to go overseas to build the high nickel sort of a cathode. I mean, do you see a sort of similar situation also facing given you're also planning to build, you know, this U.S. plant, as well? Would there be any sort of delay in terms of the commercial startup timing if there's any issue with the government approval side? Second question is on separator. I have noticed that, Yunnan Energy actually say they plan to start construction of their U.S. plant early next year. Given Yunnan already have the offtake agreement with Ultium Cells, which they announced, if Yunnan become more aggressive to expand into the US, do you think that, you know, you probably will be delaying or maybe scaling down, you know, your sort of potential US investment on the separator side and probably focus on buying probably cheaper from Yunnan? Thank you. [Foreign Language] Maybe I can address your question. If we look at the overall situation with regards to the competitor that you have mentioned and their intentions to try to enter into the North American market, we understand that they're trying to create a joint venture. As a result of that, at the Ministry of Trade, Industry and Energy level, there is a committee that talks about the core technology that has been designated by the country. I do believe that they are concerned about the security-related situations because it is a JV format. In the case of our plans for North America, we would be going independently. In addition to that, we do have plans on how to ensure the security of our overall technology. We don't believe that the current situation would have an impact on our overall plans. The second question about the separator capacity. As of now, we don't have any definitive plans about what our plans would be with regards to the U.S., whether we would actually conduct capacity additions in the Hungary site and try to deal with the global demand that we see or whether we would directly invest into the U.S. to try to deal with the overall market demand is something that we have not decided as of yet. However, that have been said, from Yunnan Energy alone, I don't believe that the overall requirements that our customers have would be able to be fully fulfilled. As a result of that, even if they were to build out their capacity further, I do think that there would be still opportunities that we would be able to address. With this, we would like to wrap up the third quarter earnings call, conference call for LG Chem. For those of you who have any additional questions, please do not hesitate to contact our IR team. Once again, we would like to thank everyone for taking time to participate on the call today. Thank you very much.