Good morning. I am Jill Lee, IR project leader at SK Innovation. Thank you for taking the time to join us today on this fourth quarter earnings call. Today's presentation has yet to be reviewed by our external auditor, so the results may be subject to change based on such review. With that, let me hand it over to the CFO, Mr. Yang-seob Kim, for the presentation. Good morning. I am Yang-seob Kim, CFO at SK Innovation. Let me first start by thanking our shareholders and investors for your continued interest in the company. On the call with me today are executives from SK Innovation and its major subsidiaries to answer your questions during the Q&A. Now let me start the presentation on SK Innovation's fourth quarter performance. I will start with the full company performance, including sales and operating profit. On the top line, fourth quarter crude and refinery product prices increased together with a rise in EV battery utilization and sales volume. As a result, sales grew by KRW 1,256.9 billion quarter-on-quarter to KRW 13,721.3 billion. Although refining margins improved, operating profit decreased KRW 720 billion versus the third quarter to record a loss of KRW 47.4 billion due to continued weak PX spread in the petrochemical market, initial costs related to new overseas capacity for the battery business, and one-off expenses such as special bonuses for employees. For your information, as disclosed on January 4, 2022, the sales agreement for the Peru Blocks 88 and 56 block has been terminated. The Peru operations, which were regarded as a discontinued business, has been reclassified as a going concern operation, and the operating profit from the business for each quarter has been retroactively recognized, resulting in an increase of KRW 148.5 billion for 2020 and KRW 287.8 billion for 2021. On the non-operating profit, though derivative losses decreased along with FX-related losses on the won weakening lessened, a decrease in equity method gains due to the base effect from the SK Seorin HQ fund liquidation and absence of disposal gains from the securitization of SK Energy's gas station led to a decrease of KRW 110.8 billion QOQ to end-of-period operating losses of KRW 47.3 billion. In detail, the non-operating losses can be broken down into FX-related losses of KRW 3 billion, derivative losses of KRW 21.6 billion, net interest expenses of KRW 85 billion and equity method gains of KRW 38.3 billion and others, KRW 24 billion. Next, let me go over the balance sheet. Total assets of 2021 end increased KRW 11,436.5 billion year-over-year to KRW 49,934.6 billion. The main drivers were an increase in inventory assets, trade receivables, and also tangible and intangible assets from investments made. Liabilities increased KRW 7,412.8 billion YOY to KRW 30,452.4 billion, and the debt-to-equity ratio is 156%. The main drivers are an increase in trade payables driven by higher crude prices and an increase in debt. On the other hand, net debt decreased KRW 312.5 billion year-over-year to KRW 8,412.9 billion due to the cash flow generation from SK IE Technology IPO, the minority stake sale in SK Lubricants, and the securitization of the SK Seorin HQ. Now let me dive into the fourth quarter market and performance of each business line. First, let me start with the refinery business market backdrop. Even with the emergence of the Omicron variant, fourth quarter crude oil prices rose, driven by an increase in energy prices, including natural gas and coal, and expectations that demand will recover with post-COVID normalization. Fourth quarter product crack was strong as the blackout of U.S. refineries amid low inventory and the delay in China's announcement on export quotas caused tight supply. Gasoline crack strengthened due to strong demand from the U.S. and also a recovery in demand in Southeast Asia and the Middle East. Diesel crack also rose thanks to demand recovering in Asia and strong natural gas prices, though the spread of Omicron slowed mobility in Europe. Kero crack increased quarter-on-quarter due to improving demand in Asia, driven by jet demand and the influence of stronger diesel crack levels. Now let me move on to discuss the refinery performance for this quarter. Although crude prices increased and middle distillate cracks such as diesel and kerosene improved, operating profit decreased KRW 68.8 billion quarter-over-quarter to record KRW 221.8 billion due to an increase in one-off expenses such as stock grants for employees and a decrease in inventory gains on the back of softer year-end crude prices. Fourth quarter inventory-related gains, including the lower of cost or market for the refining business, is KRW 220.9 billion. Refining margins in 2022 are expected to remain stable since demand is expected to normalize with less impact from COVID, but refineries will also match this with more supply. Next, the petrochemical market. Fourth quarter polymer spreads remained flat quarter-over-quarter as supply was tight in some areas because of lower utilization of coal-based PE/PP capacity in China, but an increase in others due to new capacity additions. As a result, if we look at other side, which would be PE spreads, it improved slightly quarter-over-quarter, thanks to higher year-end demand. On aromatics, influenced by Chinese energy consumption policy, downstream utilization dropped, and as demand continued to decline, aromatic spreads weakened quarter-over-quarter. Let me move on to the business performance. In the fourth quarter, operating profit fell because of margins decreasing on the back of weaker aromatic spreads and utilities cost increasing with higher crude prices. As a result, operating profit dropped KRW 293.4 billion quarter-over-quarter to record an operating loss of KRW 209 billion. Looking at the market outlook for 2022, PE demand may be increasing as the global economic backdrop improves and Omicron fears subside. Oversupply will continue due to new capacity in the region, leading to weak spreads. For PP, as coal and methanol prices stabilize in China, propylene prices may decline, improving PP margins somewhat. As new capacity added in 2021 ramps up and auto-related demand decreases due to chip shortages, spreads are expected to remain flat to weak. With aromatics, the outlook for PX includes an increase in demand since there are expectations of a polyester recovery and 6 million tons of new PTA capacity emerging in the region. However, there is also the possibility of an increase in supply from new PX facilities, which may limit spread improvements. Next, I will move on to the lubricants business. Lubricant sales volume increased, but operating profit declined KRW 61.3 billion quarter-over-quarter to KRW 268 billion, driven by a decline in margins on the back of a rise in costs and drop in sales price. Base oil spreads in 2022 are expected to soften as the market tightness eases with BO supply normalizing upon refining product market improvements. Next, on the next page, let me talk about the E&P business. Fourth quarter E&P operating profit increased KRW 41.4 billion quarter-over-quarter to KRW 111.9 billion, thanks to an increase in crude and gas prices, but also an increase in sales volume. As mentioned before, with determination of the Peru Blocks 88 and 56 block sales agreement, Peru has been reclassified from discontinued operations to going concern operation, and its operating profit contribution in the fourth quarter was KRW 102.4 billion. Now let me move on to the battery business. For the battery business, as the China Yancheng and Huizhou factories, which started commercial operations in the first quarter, saw better utilization, battery sales increased KRW 249.7 billion quarter-over-quarter to KRW 1,066.5 billion. Due to fixed costs incurred because of the initial run of the U.S. number one factory and Hungary number two factory, which just started commercial operations, and also an increase in SG&A, including R&D and one-off costs, operating losses increased KRW 211.1 billion quarter-over-quarter to KRW 309.8 billion. With the full ramp-up of our U.S. number one and Hungary number two factories in the first quarter, we will start supplying to new customers like Ford and Volkswagen. In addition to satisfy the significant increases in customer demands, we have increased our 2022 year-end capacity target from 60 GW hours to 77 GW hours. Please refer to the appendix for the details of the capacity expansion by region. Though there will be some impact from the recent chip shortage-related uncertainties, battery sales in 2022 are expected to reach the mid- KRW 6 trillion level, mainly due to the robust demand from our customers. Finally, let me move on to the I&E Materials business. The consolidated operating profit of the I&E Materials business in the fourth quarter declined from KRW 72.3 billion quarter-over-quarter to record a loss of KRW 32.2 billion, as the downstream industry contracted due to the semiconductor supply issue, and companies' one-off expenses, including initial cost for new capacity, increased. For the LIBS capacity expansion plans, again, please refer to the appendix. Finally, let me address the company's dividend policy for the fiscal year of 2021. The company was able to turn back into the black in 2021, even amid a continuously challenging business environment presented by the unprecedented global pandemic. Nevertheless, when taking into consideration the large CapEx required for growth businesses in 2022 and the impact on our financial position, the company had decided that funding future investments was more urgent than dividends and thus presented a proposal of no dividends for the FY 2021 to the BOD. The board had a heated debate and came to the conclusion that the company should recognize the unwavering trust shown by its shareholders, that it should consider the dividend level of competitors and the need to enhance shareholder value through shareholder returns. Therefore, the BOD voted down the proposal, citing the need to reconsider the no dividend stance. Accepting the opinion and decision of the BOD, the company is revisiting 2021 dividends from square one, and we look forward to your understanding on this point. Once the dividend plan has been confirmed, we will make sure to communicate it to the market, including a disclosure. This is the end of our presentation and we will now start the Q&A session. Before asking your question, we ask that you state your name and affiliation. In addition, please remember that the Q&A will be conducted with consecutive interpretation. Now Q&A session will begin. Please press star one, that is star and one, if you have any questions. Questions will be taken according to the order you have pressed star and number one. For cancellation please press star two, that is star and two on your phone. The first question will be presented by Hyun-Yul Jo from Samsung Securities. Please go ahead with your question. Thank you. I would like to ask three questions and they all relate to your battery business. First question relates to the raw material cost. We've seen raw material cost rise, which is impacting your bottom line. I understand that there are some metals where you pass through the cost to the OEMs. I would like to understand, you know, for how long would you be able to do that, and also what are some of the raw materials that you are passing through and that you are not? Relating to your performance. Your performance this quarter is not good, and you're also having plans to increase your target capacity by the year-end by 40 GW hours, which means that you will need to make investments for capital addition. Does that mean that you will not be able to keep to your initial commitment of reaching break-even point in terms of operating profit in 2022? Could you provide some more color as to what your profitability guidance will be for 2022 and 2023? With regards to potential impact of rise in raw material prices and its impact on our bottom line, I can tell you that most of our cathode related metals are, and the costs are passed through to the OEMs. Most of the factors in terms of cost rise is hedged. Now, having said that, some metals, including copper and aluminum, is not passed through, so there may be some impact. The rise in raw material prices after the end of the Olympics, where the China-related, energy-related issues will be removed, we expect certain extent of this issue will be resolved. From the mid- to long-term perspective, in order for the overall demand and supply dynamics to actually improve, there needs to be additional supply that is secured, and we expect that as we enter into the second half of this year, there will be additional supply. Overall, supply dynamic will start to improve as we go into second half of this year or the first half of next year. With regards to the rise in the raw material prices, we expect this issue to be more or less resolved once again come second half or of this year or first half of next year. Yes, I am Jin Seon-mi, Head of Battery Strategy and Planning Office. I will respond to your question relating to our revenue and PNL guidance for year 2022. Basically, at SK On, we are underpinned by very robust demand coming in from our OEM customers. 2022, we expect our revenue to grow by two-fold as against 2021 as we enter into commercial production from our No. one U.S. plant and No. two Hungary plant, reaching mid-KRW 6 trillion. Relating to the EV business, with the current issues relating to the auto semiconductors as well as rise in raw material prices, we do see that this unfavorable environment with the backdrop will continue for the time being. Also as we continue to focus on adding capacity, there will be initial ramp-up investment that will be incurred. As mentioned before, we expect all these external factors to start to normalize as we go into the second half of this year. We will try to capitalize on the experiences that we have built from our global production sites and apply them to this newly built production site so that we could quickly stabilize the run rate as well as yield, so that we could limit as much as possible losses that are being made. To respond specifically to the question that you posed. On a quarterly basis, we're currently projecting to reach break-even point in terms of operating profit by Q4 of 2022. On top of that, as we enter into mass production for our U.S. site, Hungary site and the Chinese Yancheng plant, as all of these production sites become more stabilized, we expect to see continuous upward improvement in our operating profit margin starting 2023. This is Ryu Jinsuk again. Just to provide you with a summary of that answer, with the increases in the raw material prices and the ramp-up costs that are required, all of these factors are already well reflected in the business plan that we have set and is reflected in the BEP guidance. There may be some changes. There is always that possibility, but I would like to assure you that we have fully considered all of these potential factors. The next question will be presented by Woo-je Chun from Hana Investment & Securities. Please go ahead with your question. [Non-English content] Battery Metal Recycle [Non-English content] 1,450[Non-English content] CDU [Non-English content] 68%. [Non-English content]. Hello. This is Woo-je Chun from Hana Investment & Securities. I understand that recently your executive vice chairman had taken a visit to U.S., China and certain other countries to look at potential candidates for your battery recycling plant. Could you provide us with more color with regards to your BMR, your battery metal recycling business and the outlook that you have for this business? Second question relates to your petrochemical business. In terms of your variable cost and other cost items, you have reported a negative KRW 145 billion in losses. Are all of these losses temporary or non-recurring, meaning one-off? Third question, your CDU utilization rate is still at 68%. When do you think that the run rate will normalize to pre-COVID levels? SK [Non-English content] BMR [Non-English content]. [Non-English content] BMR [Non-English content]. I am from SK Innovation. I'm Head of BMR Business Development Office. Kim Hyun-s uk responding to your first question. [Non-English content] R&D [Non-English content]. [Non-English content] 12[Non-English content], mechanical completion [Non-English content] commissioning, [Non-English content]. During the third quarter earnings call, we've mentioned that we are in the process of building up a demo plant in the Daejeon R&D Center, which we have done, and we have actually achieved mechanical completion as of December. We have also gone through a commissioning, basically making inspections and checks on major equipment and facilities. [Non-English content]. We expect that within the month of February, we will be able to take the wasted batteries and make them into black mass in order to run the plant. We will be testing many different parameters in terms of production and making validations of whether they are appropriate, so that once we finalize on building out our commercial facilities, these data points we will be able to use for an efficient operation of that commercial plant. [Non-English content]. To provide more color on market outlook, battery recycling market will definitely grow together with the battery market growth. [Non-English content] 2030 [Non-English content] 30% [Non-English content] 2030 [Non-English content] 300 [Non-English content] 400 gigawatt hours [Non-English content] 10 [Non-English content]. The projections differ depending on which institution's data you're looking at, but we are expecting a very high CAGR growth of 30% up to 2030. By 2030, basically the amount of wasted batteries will be the size for this waste battery recycling will be about 300 GW-400 GW hours. The metal value of the metals that's been collected back from these waste batteries will be above KRW 10 trillion. [Non-English content]. Now, at this point, the amount of waste batteries that's coming out into the market, the volume is relatively small. Aside from Chinese players, all of the players in this market are small scale. Because battery market itself is growing very rapidly and also the fact battery recycling has a very strategic importance, we believe that going forward, large players will start to enter this domain. [Non-English content]. Hence, we believe only the players that have a unique differentiation in terms of their competitiveness and the ones that have economies of scale will be the ones that will survive in this market. Thank you. [Non-English content]? SK Geo Centric [Non-English content]. Hello, I am Song Ha-s uk from SK Geo Centric. I'm Head of Corporate Planning Office. [Non-English content]. [Non-English content]. Looking back in the fourth quarter, the spread quite softened and on the back, and also there was increases in crude prices, which actually increased the input power cost of the company. There were stock grants that were provided to the employees. All of this leading to a significant margin of deficit. [Non-English content] However, if you look at paraxylene compared to Q4, spread has strengthened quite significantly. [Non-English content]. We expect such uptrend to continue into the first half of the year. [Non-English content] aromatics [Non-English content]. Hence we expect the overall PNL for aromatics would start to improve as well. Thank you. SK [Non-English content]. [Non-English content]. Hello, I am Lee Dong-Yeol from SK Energy, Head of Corporate Planning Office. I will respond to the question on utilization. [Non-English content] CDU [Non-English content]. [Non-English content] 2021 [Non-English content] crack [Non-English content] CDU capa [Non-English content] 68% [Non-English content] gasoline [Non-English content] RFCC [Non-English content]. The way we optimize our production lines are in consideration of the the follow on production economics, not the CDU itself. In light of the fact that in 2021, the product cracks were very soft, we ran our CDU facilities at 68% utilization. Considering that the fact that the gasoline market or the gasoline margins were quite robust, our RFCC utilization was at a normal level. {Non-English content] one [Non-English content] CDU [Non-English content] 85% [Non-English content] LSFO bunkering mix [Non-English content]. [Non-English content] gasoline [Non-English content]. In light of recent pickup in demand and overall market backdrop improvement, we expect that in Q1 our CDU run rate will increase to 85%. Also in consideration for the winter time demand as well as the sale of the LSFO bunkering lesser portions, we are going to run our RFCC facility at the maximum level. [Non-English content] JP Morgan [Non-English content] Parsley Ong [Non-English content]. The next question will be presented by Parsley Ong from JP Morgan. Please go ahead with your question. Hi, thanks for the presentation. You mentioned earlier that there were a lot of one-offs across all your different divisions. Could you give us a detailed breakdown by division regarding these one-offs? For example, how much would be the year-end bonus payment for that division, initial fixed costs, et cetera, so we can figure out how much of these are going to recur in future. The second question is with regards to your longer term battery plans. You mentioned just now that you have raised your revenue guidance for 2022 and also your capacity guidance, but you have delayed your OP margin breakeven target. Could you let us get a sense of 2025, what would be your revenue and OP margin expectation? For your SK On IPO, potential SK On IPO plans, are there any changes to your plans, any potential changes you anticipate in Korea regarding the legislation on subsidiary IPOs and your overall plans to narrow the holdco discount? Thank you. [Non-English content] 2022 [Non-English content] capa [Non-English content]. [Non-English content] OP [Non-English content] OP [Non-English content] BEP. [Non-English content]. [Non-English content] SK On [Non-English content] IPO [Non-English content] IPO [Non-English content] discount. [Non-English content] SK Innovation [Non-English content]. Ine [Non-English content]. This is Dong- Hoon Lee, the Head of Finance Office, from SKI, and maybe I can address your first question. [Non-English content] 10 [Non-English content] SK Innovation [Non-English content] four [Non-English content] 1,700 [Non-English content]. As we already disclosed in October, to the employees of the company, SK Innovation's treasury stock was granted as bonuses. As a result of that, if you look at the accounting treatment in the fourth quarter, the related cost was approximately KRW 170 billion. [Non-English content] 800 [Non-English content] SK On [Non-English content] two [Non-English content] SK IE Technology [Non-English content] 600. [Non-English content]. In addition to that, from the refinery business, due to the petroleum tax and also the increase in SG&A, that effect was around KRW 80 billion. In addition to that, if we look at the overall initial cost that went into the new capacity on the SK On site for the U.S. one factory and the Hungary two factory, and also with regards to the new capacity on SK IE Technology, that cost in total would represent approximately KRW 60 billion. Thank you. [Non-English content] This is Jin Sun Mi, the Head of the Battery Strategy and Planning Office at SK On, and maybe I can address your second question about our long-term revenue and also profitability expectations. [Non-English content] SK On. [Non-English content]. As mentioned during the answer for the previous question asked, from SK On's perspective, we do believe that there will continue to be a strong customer demand upon which we will continue to build out our capacity. Thus as a result of that, if you look at the overall top line and also the production volume, we do believe that that will continue to grow accordingly. [Non-English content] In addition to that, as we build out our footprint across the three continents of Asia, also Europe and, North America, we do believe that we will be able to achieve meaningful performance. [Non-English content], 25 [Non-English content] Ford [Non-English content]. In addition, if we look at our revenue, of course, as our revenue grows, we do believe that the operating profit margin will also continue to improve. In 2025, with the opening of the JV plant with Ford, we do believe that that will also contribute to increasing our profitability and also the size of that operation. 25 [Non-English content] mid-single digit. [Non-English content] We do believe that in 2025, a mid-single digit OP margin level would be achievable. [Non-English content] SK [Non-English content] IPO. [Non-English content]. Yes, this is Yang-s eob Kim, the Head of the Finance Division, and maybe I can address the question about SK On's IPO. [Non-English content] 10 [Non-English content] one [Non-English content] SK [Non-English content] IPO [Non-English content] SK [Non-English content] IPO [Non-English content]. I would just like to start by saying that when we actually did the split off of our battery business in October 1st of last year, we did create a new entity which was SK On. However, if you look at the backdrop behind this decision making, it was not in contemplation of an IPO. As of the current time, I would just like to reiterate that an SK On IPO is not something that the company is considering at all. [Non-English content] IPO [Non-English content] SK On, [Non-English content]. With regards to an IPO, from the company's perspective, we do want to continue to look at and monitor the growth that we see at SK On and also the improvements and the speed of that, in terms of our overall profitability. We have no intention to hurry this process. Once we have any thoughts about a timing or if there's any details, behind a possible IPO, then we will make sure to communicate that to you. [Non-English content] We do understand that, basically around the political circles in Korea recently, there are conflicting views about a company split off and also the listings taking place at the mother company and then subsidiary level. How this will actually play out and be institutionalized as of now is something that is very difficult to foresee. As a result of that, I would have to say that for any IPO plans, if any, that the company would have, it would have an influence on our indications or on our plans. The next question will be presented by Yong Seok Shin from Morgan Stanley. Please go ahead with your question. I just have one single question. What do you think is going to be your CapEx and free cash flow for 2022 and for next year? The reason why I ask this question is that if you look at your presentation, your Q4 debt-to-equity ratio was 156%, and you have also decided to withdraw your plans to sell the Peruvian asset. What plans do you have to improve your balance sheet? I'm Kim Yong Seok, Head of Finance Division. I will respond to that question. For this year's CapEx, we are looking at around KRW 6 trilliom-KRW 6.5 trillion on per annum basis. Regarding the free cash flow, I do not have that data with me at this point. We will come back to you on that. In regards to our debt management, we will make sure that we stay within the KRW 10 trillion level as we've done during last year. In terms of managing our balance sheet, of course, we will focus on the cash flow generated from our business operations and also we'll look at multiple ways for us to improve our financial standing as we also require quite a bit of investment. Thank you. The next question will be presented by Nikhil Bhandari from Goldman Sachs. Please go ahead with your question. Yeah. Hi, thank you so much for the opportunity. I just had a similar question around the free cash flow and CapEx. Now, you said the CapEx is gonna be KRW 6 trillion-KRW 6.5 trillion. If you look at last year, your EBITDA is about KRW 3.3 trillion. You're guiding for a tougher setup for the petrochemical business this year, flattish environment for refining. There's also some raw material related headwinds in the battery business which is delaying the profitability. In that context, how should we think about funding this gap of, say, KRW 3 trillion-KRW 4 trillion EBITDA to about KRW 6 trillion-KRW 6.5 trillion kind of CapEx level, right? There's a tax element with EBITDA as well. Just trying to understand better, are you comfortable with your net gearing, net debt going up by KRW 2 trillion, KRW 3 trillion or KRW 4 trillion this year? Or does it create any kind of concerns from your covenants and all perspective on the balance sheet side? That's the first question. The second question is on the raw material costs for the battery business. You mentioned cathode metal is a pass through, but things like copper and aluminum is not. What about electrolyte? Electrolyte prices have really gone up in the last few months. Is that a pass through or not? And what's the time lag in reflecting some of these cost increase to your P&L cost? Are we seeing all that impact already or all the impact of lithium and some of the electrolyte prices going up will be reflecting in your ASP in 2022 as well as cost in the upcoming quarters in the PNL. The last question is, I think just on, you mentioned about EBIT breakeven fourth quarter this year. When are you expecting the EBITDA breakeven for the battery business? Thank you. [Non-English content] follow-up [Non-English content] free cash flow [Non-English content] CapEx [Non-English content] CapEx [Non-English content] six [Non-English content] 6.5 [Non-English content] EBITDA [Non-English content] EBITDA [Non-English content] 3.3 [Non-English content] BEP [Non-English content] EBITDA [Non-English content] three [Non-English content] four [Non-English content] three [Non-English content] four [Non-English content] CapEx six [Non-English content] 6.5 [Non-English content]. [Non-English content] net debt, [Non-English content] two [Non-English content], three [Non-English content] four. [Non-English content]. [Non-English content] ASP [Non-English content] EBIT [Non-English content] 2022 [Non-English content] four [Non-English content] BEP [Non-English content] EBITDA {Non-English content] BEP [Non-English content]. [Non-English content] Yes, this is the CFO, Yang-s eob Kim. Maybe I can address your first question. [Non-English content] As you have mentioned, it is true that significant investments for the battery business are required. As a result of that, in terms of the way that we would fund that CapEx, there is a possibility that our debt would increase significantly. [Non-English content] In light of such a concern, rather than increasing the overall borrowings that we have, we're trying to explore other avenues, and other options that are available to us. For example, having a JV partner to actually invest with us. It could be possible that we would look for a financial or strategic investor that would be able to provide resources. We are exploring various avenues to try to minimize the deterioration on our financial position as much as possible. [Non-English content] 2020년 [Non-English content] 8.4 [Non-English content], 2022 [Non-English content] 10 [Non-English content]. If we are able to fund through the options that we have just mentioned and utilize those options, then we do actually believe that as of the end of 2020, the overall net debt that we had stood at KRW 8.4 trillion, and we think that we would be able to manage it at a level at which at the end of this year we would be at around KRW 10 trillion. [Non-English content] If we were able to do that, then we don't think that the increase in our net debt would have an impact on our overall financial position, and it would not have any issue with regards to the covenants of the company. Maybe I can address your second question. This is Jin Sun Mi, Head of the Battery Business Strategy Office. You talked about what the impact would be in the case of electrolytes and the price increase that has been seen recently. As you have mentioned, recently electrolyte prices have been increasing. As a result of that, if you look at our 2021 performance, it has been impacted. If you look at where this actually cost increase has been driven from within the ingredients that go into the electrolyte, that is something called LiPF6, which is a lithium component. That has been driving the overall price levels higher and that has been impacting our P&L. However, this is an issue that we are trying to address. For example, the overall price increases due to a restriction or the limitation of supply available, and we do think that this is a temporary or transitory in terms of nature. As a result of that, we are talking with our suppliers to try to diversify the overall sources through which we have and also to encourage them to increase their capacity. For this year, we actually believe that the overall situation will improve. As mentioned before, the elements that we have just discussed right now are already reflected into the business plan that we have. This is Jin Sun Mi, Head of the Battery Strategy and Planning Office. Maybe I can address this question, the next question. We do believe that if you look at the semiconductor chip shortage for the auto industry that started in 2021, and also the rise in raw material prices that we mentioned before, that this overall situation will continue into the first quarter of this year. As a result of that, if you look at the BEP, the break-even point that we would see on an EBITDA level, it would be the second quarter of 2022. The next question will be presented by Oscar Yee from Citi. Please go ahead with your question. Yeah. Thank you. Thank you so much. Actually, most of the question has already been asked, but I just want to clarify. First, in terms of your fourth quarter for your battery division, I mean, can you disclose your gross margin? Because I remember you said, last quarter was around 6%, right? Is this quarter going back to sort of gross margin loss? Also in terms of your sort of waterfall chart on batteries, for this one-off expense, KRW 104 billion, could you give out more details about that one-off? How much is the startup cost and how much is the employee and all the other sort of breakdown? In terms of your CapEx guidance of KRW 6 trillion-KRW 6.5 trillion, could you give us a rough breakdown about how much is the battery versus the LiBS? Does this KRW 6 trillion-KRW 6.5 trillion include the settlement payment into LG Chem or I mean, LGES as well? Thank you. This is Jin Sun Mi from the battery planning office. Responding to your first question on our gross margin for battery business, I do not have this data with me at this point. I will double check and come back to you with that information. Regarding the second question on the breakdown of the one-offs, because of the semiconductor chip related issues, the production schedules, some of the production schedules were pushed back, and hence there were inventories whose shelf life had elapsed and we had to deal with those inventories, and that had an impact. We had to write that off. Also the one-off expense includes the treasury shares, as well as the use for the compensation to our employees.